Real Estate Fund Raises $3B for Benefit Street

Benefit Street Partners (BSP) has closed its second opportunistic real estate debt fund with $3B in equity commitments and $10B in total investable capital.
The fund will focus on originating senior and junior commercial real estate debt across major US markets.
BSP’s raise comes as private credit continues to gain traction amid reduced CRE lending by traditional banks.
The firm has originated over $30B in real estate investments since launching its debt platform in 2013.

Key Takeaways

A Record Raise

Benefit Street Partners, the credit investment arm of Franklin Templeton, has raised $3B in equity for its latest fund—BSP Real Estate Opportunistic Debt Fund II—marking the largest fundraise in the firm’s history. Bisnow says that with leverage, the fund will have up to $10B in deployable capital for real estate debt investments.

Strategy and Scope

Launched in 2023, the fund targets both senior and junior debt opportunities in US commercial real estate, a sector where private lenders have increasingly stepped in as traditional banks pull back. This is BSP’s second fund under its opportunistic debt strategy, following a $518M debut fund in 2022.

Private Credit Boom

“The continued shift toward private credit solutions in US commercial real estate lending is creating an opportunity set we believe is both compelling and enduring,” said BSP CEO David Manlowe. The firm’s strategy aligns with broader market trends, as institutional lenders seek to offload debt and reduce balance sheet risk.

Market Momentum

Other major asset managers have been ramping up their private credit exposure. In the second half of 2025, BlackRock expanded its platform with acquisitions of ElmTree Funds and HPS Investment Partners, while Brookfield moved to consolidate its stake in Oaktree Capital Management.

Proven Track Record

Benefit Street has been active in the real estate credit space since 2013, originating more than $30B in real estate debt. In addition to its lending business, BSP also invests directly in multifamily assets through its Benefit Street Partners Multifamily Trust.

Why It Matters

As institutional banks scale back commercial real estate lending, private credit firms like BSP are stepping in to fill the gap—often with higher-yielding debt and more flexible terms. Other investors are also leaning into specialized strategies, with recent funding activity targeting resilient sectors like grocery-anchored retail, suggesting a broader shift toward stability-focused asset classes. This positions BSP to capitalize on growing borrower demand and distressed opportunities across the CRE market.

What’s Next

With ample dry powder and a shifting credit landscape, BSP’s latest fund signals continued momentum for private real estate debt investing in 2026 and beyond.