SCHEDULE: Franklin Resources Affiliates Solidify Majority Stake in BSP Private Credit Fund

Franklin Resources, through its subsidiaries BSP Fund HoldCo and Franklin Advisers, Inc., has disclosed a combined beneficial ownership of 62.2% in Franklin BSP Private Credit Fund's Advisor Class Shares.

Summary

• Franklin Resources, Inc. and its affiliates, including BSP Fund HoldCo (Debt Strategy) L.P. and Franklin Advisers, Inc., collectively beneficially own 7,739,178 Advisor Class Shares of Franklin BSP Private Credit Fund.
• This represents a 62.2% stake in the fund, based on 12,444,001 Advisor Class Shares outstanding as of July 29, 2025.
• BSP Fund HoldCo (Debt Strategy) L.P. holds 4,955,483 shares (39.8%), acquired for an aggregate purchase price of $49,900,000.
• Franklin Advisers, Inc., through Franklin Global Allocation Fund, holds 2,783,694 shares (22.4%), acquired for an aggregate purchase price of $28,951,188.
• The acquisitions by HoldCo occurred on August 18, 2021 (90,000 shares), October 3, 2022 (2,400,000 shares), and April 28, 2023 (2,465,483 shares).
• HoldCo also acquired 10,000 Class A Shares for $100,000 on August 18, 2021.
• The purpose of these investments is for general investment and to support the Issuer's investment strategy.

Sentiment

Score: 7

Explanation: The filing indicates a strong, long-term commitment by Franklin Resources and its affiliates to the Franklin BSP Private Credit Fund through a significant majority ownership stake, suggesting confidence in the fund's strategy and the private credit market. This is generally positive for the fund's stability and perceived backing.

Positives

• Significant ownership stake by Franklin Resources and its affiliates demonstrates strong commitment and alignment with the Franklin BSP Private Credit Fund's investment strategy.
• The substantial investment by Franklin Global Allocation Fund indicates confidence in the private credit sector and the specific fund.

Future Outlook

The reporting persons currently have no present plans or intentions to acquire or dispose of any additional securities of the Issuer, beyond their stated investment purposes to support the Issuer's investment strategy.

Management Comments

• HoldCo acquired the Shares for investment and to support the Issuer in its investment strategy.
• Franklin Global Allocation Fund acquired the Shares for investment purposes.
• FRI, HoldCo, FAV, and the Principal Shareholders believe that they are not a 'group' within the meaning of Rule 13d-5 under the Act and that they are not otherwise required to attribute to each other the beneficial ownership of the Shares held by any of them.

Industry Context

This filing highlights the continued strategic investment by large asset managers like Franklin Resources into specialized investment vehicles such as private credit funds. The substantial majority stake indicates a long-term commitment to the private credit sector, which has seen increasing interest from institutional investors seeking alternative income streams and diversification.

Comparison to Industry Standards

• The 62.2% beneficial ownership by Franklin Resources and its affiliates represents a significant controlling stake, which is common for a fund's sponsor or its related entities, especially in private credit or alternative investment structures where the sponsor often seeds or maintains a substantial interest to align with investors and support the fund's operations.
• While direct comparable public data for specific fund seed investments is limited, this level of ownership is consistent with a sponsor's deep involvement, similar to how BlackRock or Vanguard might hold significant stakes in their own sponsored ETFs or mutual funds, albeit in a different asset class.

Corporate Governance

Related Party Transactions

• BSP Fund HoldCo (Debt Strategy) L.P. entered into subscription agreements with the Issuer on August 18, 2021, October 3, 2022, and April 28, 2023.
• Franklin Advisers, Inc. (FAV) is the investment adviser for Franklin Global Allocation Fund, which holds a significant stake in the Issuer.
• Benefit Street Partners L.L.C. ("BSP"), a direct wholly-owned subsidiary of FRI, serves as investment Adviser to the Issuer.

Stakeholder Impact

• Shareholders: The significant ownership by Franklin Resources and its affiliates provides stability and strong institutional backing for the fund, potentially increasing investor confidence.
• Management: The investment supports the Issuer's investment strategy, aligning the interests of the fund's management with its primary investors.

Next Steps

• No specific future actions or milestones are mentioned beyond the ongoing investment strategy.

Key Dates

Recommendation

The filing is a Schedule 13D, primarily disclosing beneficial ownership by Franklin Resources and its affiliates in the Franklin BSP Private Credit Fund. The substantial 62.2% stake indicates strong institutional backing and alignment with the fund's strategy, which is a positive signal for long-term stability. However, this filing does not provide new financial performance data or strategic shifts that would warrant a 'buy' or 'sell' recommendation. It confirms a significant, existing relationship. For investors already holding or considering the fund, this reinforces the institutional commitment, suggesting a 'hold' as the current information does not present a compelling reason for immediate action beyond maintaining existing positions.

Keywords

Franklin Resources, Franklin BSP Private Credit Fund, Schedule 13D, Beneficial Ownership, Investment Management, Private Credit, Asset Management, Institutional Investment, SEC Filing, Advisor Class Shares