Benefit Street closes largest RE debt fund to date at $10bn

Benefit Street Partners (BSP) has raised $10bn (£7.5bn) at the final close of its second real estate opportunistic debt fund – the largest amount raised in the firm’s history for the asset class.

The alternative credit manager said the final close of the Real Estate Opportunistic Debt Fund II capped a “historic” year of deployment, during which it originated nearly $9bn of real estate investments in 2025.

BSP, which is a wholly owned subsidiary of Franklin Templeton, said the $10bn figure is inclusive of related vehicles and anticipated leverage, across around $3bn of equity commitments.

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“The continued shift toward private credit solutions in U.S. commercial real estate lending is creating an opportunity set we believe is both compelling and enduring,” said David Manlowe, chief executive of BSP. “With our scale, experience, and disciplined approach to credit, BSP is well positioned to capitalize on today’s market environment.”

The fund focuses on originating senior and junior commercial real estate debt investments across the US, with a particular emphasis on the multifamily sector.

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“With traditional lenders pulling back and a significant wave of maturities ahead, we see a favourable backdrop for well-capitalized private lenders,” said Michael Comparato, senior managing director and head of real estate at BSP.

According to the firm, BSP’s real estate platform has originated around $30bn of investments, while its assets under management, alongside sister companies Alcentra and Apera, stood at $92bn as of December 2025.

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