The transaction will double Benefit Street Partners' assets under management to $77 billion and increase Franklin Templeton's alternative assets under management to $257 billion
BNY Mellon and Alcentra will continue their asset and services distribution relationship
SAN MATEO, CA and NEW YORK, NY – May 31, 2022 – Franklin Resources, Inc. [NYSE:BEN], a global investment management organization trading as Franklin Templeton, and Bank of New York Mellon Corporation [NYSE:BK] ("BNY Mellon") today announced that Franklin Templeton has entered into a definitive agreement to acquire BNY Alcentra take Group Holdings, Inc. (together with its subsidiaries, "Alcentra") of BNY Mellon. As one of Europe's largest retail credit and debt managers, Alcentra has $38 billion in assets under management ("AUM") with global expertise in subprime loans, high yield bonds, retail credit, structured credit, special situations and strategies .
Through this acquisition, Benefit Street Partners ("BSP"), Franklin Templeton's US investment manager specializing in alternative credit, will expand its alternative credit capabilities and presence in Europe, doubling its global assets under management to $77 billion. The transaction will also continue to enhance the breadth and scale of Franklin Templeton's alternative asset strategies, bringing alternative assets under management to $257 billion after the transaction closes.
"We are pleased to announce the acquisition of Alcentra and look forward to welcoming Alcentra's talented team to our firm," said Jenny Johnson, president and CEO of Franklin Templeton. “We have worked deliberately to develop our alternative asset management capabilities over the past few years and the acquisition of Alcentra is an important aspect of our alternative asset strategy – expanding into alternative European credit. Alternative investments are an important diversification tool for our clients and an area of increasing importance for individual and institutional investors. This acquisition extends our long-standing relationship with BNY Mellon, and we are pleased that the transaction structure meets the objectives for both Franklin Templeton and BNY Mellon in the context of current market conditions."
The transaction is expected to close in early Q1 2023, subject to customary closing conditions, including certain regulatory approvals. The acquisition will be funded from existing capital on Franklin Templeton's balance sheet and is expected to be immediately accretive to adjusted earnings per share. Franklin Templeton will pay $350 million in cash at closing and up to an additional $350 million in contingent consideration, subject to certain performance milestones being met over the next four years. In addition, Franklin Templeton has committed to purchase all of BNY Mellon's initial equity investments related to Alcentra, which are valued at approximately $305 million as of March 31, 2022. The initial equity investments will be valued at closing to determine the final amount of the original share purchase. An investor presentation regarding the transaction is available atinvestidores.franklintempleton.com.
Following completion, BNY Mellon Investment Management will continue to offer Alcentra funds to BNY Mellon sub-advised funds and in select territories through its global distribution platform, and BNY Mellon will provide Alcentra with ongoing service support. In closing, BNY Mellon expects the transaction to increase BNY Mellon's Common Equity Tier 1 capital by approximately $0.5 billion.
Founded in 2002, Alcentra takes a disciplined, value-driven approach to evaluating individual investments and constructing portfolios in its investment strategies on behalf of more than 500 institutional investors. Alcentra's dedicated and highly experienced team of approximately 180 professionals is based in its headquarters in London, as well as in New York and Boston.
Tom Gahan, CEO of BSP and head of Franklin Templeton Alternatives, added: “We believe the addition of Alcentra will elevate Franklin Templeton and BSP to a leadership position in global alternative credit. Alcentra is highly complementary to our existing US capabilities with no overlap in Europe. This partnership opens up new opportunities to provide broader global credit solutions to our clients who are increasingly allocating capital to this growing asset class. We look forward to working closely with the Alcentra team.”
Hanneke Smits, CEO of BNY Mellon Investment Management, said: “We are excited to strengthen our partnership with Franklin Templeton and continue to offer Alcentra's lending capabilities as part of the broad range of alternatives we already offer today. We look forward to continuing to work with the combined institution through the distribution and further development of BNY Mellon's existing asset servicing agreement.”
Jon DeSimone, CEO of Alcentra, added: “Today's announcement marks the start of an exciting new chapter for Alcentra as a dynamic lending partner to our investors. BNY Mellon has provided strong support over the years and has contributed significantly to our growth, doubling assets under management since 2014. The global combination of the highly complementary capabilities of Franklin Templeton and BSP enables us to jointly provide solutions to customers and to offer credits across the spectrum. "
Morgan Stanley & Co. LLC and UBS Investment Bank acted as financial advisors to Franklin Templeton and Willkie Farr & Gallagher LLP acted as legal advisors. Ardea Partners acted as financial advisor to BNY Mellon and Sullivan & Cromwell LLP acted as legal advisor.
Over Franklin Templeton
Franklin Resources Inc. [NYSE:BEN] is a global investment management organization with subsidiaries operating as Franklin Templeton serving clients in more than 155 countries. Franklin Templeton's mission is to help clients achieve better results through investment management expertise, wealth management and technology solutions. Through its specialist asset managers, the firm offers boutique expertise on a global scale, with broad capabilities in fixed income, equities, alternatives and multi-asset solutions. With offices in more than 30 countries and approximately 1,300 investment professionals, the California-based firm has 75 years of investment experience and approximately $1.5 trillion in assets under management as of April 30, 2022. For more information, visitfranklinsources. com.
Sobre a Benefit Street Partners
Benefit Street Partners L.L.C. is a leading credit-focused alternative asset management firm with approximately $39 billion in assets under management as of March 31, 2022. BSP manages assets across a broad range of complementary credit strategies, including retail/opportunistic debt, structured credit, high yield, special situations, long term net credit and commercial real estate debt. Based in New York, BSP Platform was founded in 2008. BSP is a wholly owned subsidiary of Franklin Resources, Inc. For more information visitwww.benefitstreetpartners.com.
Above BNY Mellon
BNY Mellon is a global investment firm dedicated to helping clients manage and preserve their financial assets throughout the investment lifecycle. Whether providing financial services to institutions, companies or individual investors, BNY Mellon provides up-to-date investment and wealth management and investment services in 35 countries. As of March 31, 2022, BNY Mellon had $45.5 trillion in assets under custody and/or administration and $2.3 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, own, manage, service, distribute or restructure investments. BNY Mellon is the corporate name of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available atwww.bnymellon.com. Follow us on Twitter @BNYMellon or visit our newsroom atwww.bnymellon.com/newsroomfor the latest company news.
On the way to Alkendra
Founded in 2002, Alcentra is one of Europe's oldest and largest private debt managers, with $38 billion in assets under management as of April 30, 2022 (including accounts managed by Alcentra NY, LLC, Alcentra Limited and assets data managed by Alcentra staff in subsidiaries two director contracts). Strategies include high yield loans, high yield bonds, private placements, structured loans, special situations and multi-strategy loans. Alcentra is a subsidiary of The Bank of New York Mellon Corporation and is headquartered in London with offices in New York and Boston.
Statements in this press release that are not historical facts are "forward-looking statements" within the meaning of the United States Private Securities Jurisprudence Act of 1995. When used in this press release, words or phrases are generally written in the future tense. time and/or or or are preceded by words such as "will", "could", "could", "expect", "believe", "anticipate", "intend", "plan", "seek", "estimate" , "provisional" or other similar words are forward-looking statements.
Several forward-looking statements in this press release relate to the acquisition by Franklin Resources, Inc. ("Franklin") of BNY Mellon's Alcentra, including expected scale capabilities, operating efficiencies and results, growth, customer and shareholder benefits, key assumptions, transaction closing time, revenue realization, cost synergies and finance costs; benefits or income, addition and completion costs, increase in BNY Mellon Tier 1 principal and release of initial capital.
These forward-looking statements are based on current beliefs and expectations and are subject to a number of known and unknown risks, uncertainties and other important factors, some of which are listed below, which could cause actual results and outcomes to differ materially from those expressed. . on future results or results or implied by such forward-looking statements. Significant transaction-related and other risk factors that could cause such differences include, but are not limited to, the following: (i) the occurrence of an event, change or other circumstance that may cause the purchase agreement to be terminated; (ii) the closing conditions of the transaction may not be satisfied in a timely manner or at all, including due to failure to obtain regulatory approval and Alcentra's customers; (iii) the announcement and impending acquisition could disrupt Alcentra's business (including the threatened or actual loss of employees, customers or suppliers); (iv) Alcentra may experience financial or other setbacks if the transaction encounters unforeseen difficulties. (v) expected benefits of the transaction, including realization of sales, accretions, financial benefits or returns, expected increase in BNY Mellon Common Equity Tier 1 capital and release of initial capital; may not be fully implemented or may take longer than expected to be implemented. (vi) performance thresholds for contingent consideration may not be met in whole or in part; and (vii) Franklin may not be able to successfully integrate Alcentra's businesses with Franklin or integrate the businesses within the time frame.
Other important factors that could affect Franklin's business or the future operating results of the combined companies include, but are not limited to, the following: (i) volatility and disruption in capital and credit markets and adverse changes in the global economy could materially affect the results of Franklin's business and could jeopardize Franklin's financial results. (ii) the amount and mix of AUM is subject to significant fluctuations; (iii) the significant risk of asset volatility due to changes in global financial, equity, debt and commodity markets; (iv) damage to the reputation of Franklin or Alcentra would could adversely affect revenues and earnings; (v) Franklin may review and pursue other strategic transactions that may pose risks to Franklin's business. (vi) strong competition from multiple and sometimes larger companies with competing offerings and products could limit or reduce sales of Franklin's products, potentially reducing its market share, revenues and profits; (vii) ) the ability to successfully manage and expand the businesses of Franklin and the combined companies may be hindered by systems and other technological limitations; (viii) reliance on key personnel may adversely affect financial performance. (ix) the company is subject to extensive, complex and frequently changing rules, regulations, policies and legal interpretations; (x) Franklin's contractual obligations may subject it to third-party liability and indemnity costs. (xi) any material limitation, failure or breach of information security and cybersecurity infrastructure, software applications, technology or other business-critical systems could disrupt business operations and harm business operations and reputation; and (xii) regulatory and governmental inquiries and/or investigations, litigation and legal risks related to business activity could adversely affect AUM, increase costs and adversely affect Franklin's future profitability and/or financial results.
For a detailed discussion of other risk factors related to Franklin and BNY Mellon, see the risks, uncertainties and factors described in Franklin's and BNY Mellon's recent filings with the US Securities and Exchange Commission, including, without limitation, the most recent Franklin and BNY Mellon. BNY Mellon BNY Mellon BNY Mellon Annual Report on Form 10-K, Quarterly Report on Form 10-Q and subsequent periodic and current reports.
Any forward-looking statements contained in this press release speak only as of the date such statement is made. Factors or events that could cause actual results to differ may occur from time to time, and it is not possible for us to predict all of these factors. BNY Mellon, Franklin and Alcentra undertake no obligation to update any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by law.
Franklin Resources, Inc.
Investor Relations:Selena O, +1 650 312 4091
Contact the company:Folinda Barclay, +1 212 632 3204;
Doreen Johnson, +44 20 7073 8538
Bank of New York Mellon Corporation
Investor Relations:Marios Merz, +1 212 298 1480
Contact the company:Stan's name, +1 212 635 7314;
Vivi McCann, +44 798 502 9826
Alcentra was founded in 2002 and has been a subsidiary of BNY Mellon since 2006 as one of its eight investment firms, currently working with more than 500 institutional investors.Who bought Alcentra? ›
Franklin Templeton Completes Acquisition of Alcentra, One of the Largest European Alternative Credit Managers.Who did Franklin Templeton acquire? ›
Franklin Templeton will purchase Putnam primarily with $825 million in equity up-front at closing and $100 million in cash 180 days after closing, the firms announced. The deal also includes as much as $375 million in contingent payments tied to revenue growth from the partnership.What is BNY Mellon known for? ›
BNY Mellon is a provider of investment management and investment services and we are a world-renowned leader in each. When combined, the power of our extensive capabilities can help drive your success in markets around the world.Who is BNY competitor? ›
BNY Mellon's competitors include Bank of America, Aviva, HSBC, Schroders.Who are Alcentra competitors? ›
|Competitor Name||Revenue||Number of Employees|
|#1 Omega Advisors||$5.8M||30|
|#2 Siguler Guff an...||$36.4M||142|
|#3 BBR Partners||$55.4M||206|
|#4 747 Capital||$2.6M||18|
Jonathan DeSimone "Jon" Chairman/CEO/Interim CIO:PVT Credit, Alcentra Group Ltd.Who is the vice president of Alcentra? ›
|Ke Xin Chen||Vice President||New York|
About. Jonathan (Jon) DeSimone joined Alcentra in September 2020 and is the Chief Executive Officer. He chairs Alcentra's Executive Management Committee and is a member of the various Alcentra Investment Committees and other internal governance bodies.Why Franklin Templeton closed? ›
It was the decision of the AMC (asset management company) / MF Trust to close down the funds. There have been precedents earlier that a debt fund faces redemptions, and sells in an illiquid secondary market, thus resulting in losses.
- Franklin Mutual European Fund Class A (TEMIX) Assets under management (AUM): $842.47 million as of Jan. ...
- Franklin Federal Tax-Free Income Fund (FRFTX) AUM: $11.96 billion as of Jan. ...
- Franklin Utilities Fund Class A (FKUQX) AUM: $6.55 billion as of Jan. ...
- Templeton Global Bond Fund Class A (TPINX)
Franklin Templeton's Performance in 2020
Technology Select Sector SPDR (XLK) has climbed 37.2% over the past one year and turned up as the best-performing sector among the 11 S&P 500 sectors. Meanwhile, on 02 February 2021, two of Franklin Templeton's mutual funds were awarded the 2020 Raging Bull Certificate.
It is the world's largest custodian bank and securities services company, with $1.8 trillion in assets under management and $44.3 trillion in assets under custody at the end of 2022 fiscal. It is considered a systemically important bank by the Financial Stability Board. BNY Mellon is incorporated in Delaware.Is BNY Mellon the largest bank in the world? ›
BNY Mellon is currently the world's largest custodian bank with over $43 trillion in assets under custody.Is BNY Mellon too big to fail? ›
Companies Considered Too Big to Fail
Bank of America Corp. The Bank of New York Mellon Corp. Citigroup Inc. The Goldman Sachs Group Inc.
Additionally, BNY Mellon ranked #91 (out of 1,000) on JUST Capital's “Most Just Companies” list, also placing #2 on their Capital Markets list and #1 and #3 in the categories of 'Workers' and 'Environment' within Capital Markets, respectively.Does BNY Mellon have a good reputation? ›
BNY Mellon Reviews FAQs
Is BNY Mellon a good company to work for? BNY Mellon has an overall rating of 3.6 out of 5, based on over 10,841 reviews left anonymously by employees. 70% of employees would recommend working at BNY Mellon to a friend and 63% have a positive outlook for the business.
Marathon Asset Management's competitors and similar companies include SCS, Exclusive Capital, Uhlmann Price Securities and MINT Partners.Who is the assistant vice president of Alcentra? ›
Kate Ennis - Assistant Vice President - Alcentra | LinkedIn.
Alcentra new majority owner of Equiom
This new ownership will accelerate Equiom's delivery of its strategic plans, focused on investment in its people and the transformation of its technology and operating capabilities to enhance its client service platform and support future growth and success.
Kevin McCarthy is a Senior Executive Vice President and General Counsel of BNY Mellon.Who founded Alcentra? ›
David Forbes-Nixon is the Co-Founder,Chairman & CEO at Alcentra Group .Is Franklin Templeton in trouble? ›
In April 2020, Franklin Templeton India Mutual Fund shocked investors when it abruptly wound up six debt funds. COVID-19 had been declared a pandemic in March. As the viral disease spread across the world, equity markets had fallen by 37 percent in 40 days and debt markets froze.Does Franklin Templeton pay well? ›
The highest-paying job at Franklin Templeton Investments is a Director with a salary of ₹68.8 Lakhs per year. The top 10% of employees earn more than ₹24 lakhs per year. The top 1% earn more than a whopping ₹54.75 lakhs per year.Is Franklin Templeton a reputable company? ›
Franklin Templeton Investments has an overall rating of 3.9 out of 5, based on over 1,942 reviews left anonymously by employees. 73% of employees would recommend working at Franklin Templeton Investments to a friend and 60% have a positive outlook for the business. This rating has been stable over the past 12 months.Who did Mellon Bank merge with? ›
BNY Mellon was formed from the merger of The Bank of New York and the Mellon Financial Corporation in 2007. It is the world's largest custodian bank and securities services company, with $1.8 trillion in assets under management and $44.3 trillion in assets under custody at the end of 2022 fiscal.Who is the head of ETFS at BNY Mellon? ›
Ben Slavin | BNY Mellon.Who is the head of lending at BNY Mellon? ›
Rick Calero is the Head of Banking and Lending for BNY Mellon Wealth Management.Are BNY Mellon and Pershing the same company? ›
Part of the BNY Mellon Family
In 2003, Pershing was acquired by The Bank of New York, the longest-lasting financial institution in the United States. Alexander Hamilton had founded the bank in 1784, had written its constitution and guided the organization through its early stages.