California-based investment holding company Franklin Resources announced that it agreed to acquire alternative credit manager Benefit Street Partners from private equity firm Providence Equity Partners.
Franklin will pay $683 million in cash for the deal, of which $130 million will be used to retire Benefit Street debt.
The acquisition of Benefit Street, with $26 billion in assets under management, will increase Franklin's overall alternatives assets under management to $40 billion upon the deal's closing, expected in the second quarter of 2019.
The deal, expected bolster Franklin Templeton's alternative offerings, is the latest acquisition for the company, which closed on its purchase of UK-based fund management company Edinburgh Partners earlier this year.