Benefit Street Partners employs a multi-strategy approach to take advantage of opportunities which we believe will result in attractive risk-adjusted returns for our investors.
Our team has robust capabilities across the full credit spectrum – from subordinated and mezzanine debt to senior secured debt including all instrument types, loans, bonds, credit default swaps, options, etc. – and have experience investing through multiple business cycles on both the long and short side. We pride ourselves on identifying the most compelling opportunities within various market cycles in an effort to generate attractive risk-adjusted returns with downside protection.
BSP’s Chief Executive Officer Thomas J. Gahan has three decades of credit experience. Prior to establishing BSP in 2008 with Providence, Mr. Gahan held a number of prominent roles at Deutsche Bank, including chief executive officer of Deutsche Bank Securities, global head of credit, and head of corporate and investment banking in the Americas. All of BSP’s senior managing directors previously worked together at Deutsche Bank for over a decade and each has well over 20 years of experience. They are supported by a strong team of investment professionals and staff as well as a high-quality institutional infrastructure.
We are focused on four complementary credit strategies: private / opportunistic debt, long-short liquid credit, long-only credit and commercial real estate debt. BSP also offers tailored strategies that may combine one or more of its principal strategies.
We invest across a broad spectrum of credit instruments, including high yield bonds, senior secured debt, private debt, liquid corporate credit, credit default swaps and structured credit vehicles.
We are disciplined and rigorous in everything we do, applying deep fundamental research, comprehensive risk management and active monitoring post-investment to all of our investments and strategies.
Private / Opportunistic Debt
We believe the combination of regulatory and structural changes has led banks to reduce their lending activities to companies of below a certain size threshold, resulting in a significant funding gap for small and mid-sized businesses. BSP seeks to fill this funding gap by providing capital to corporate issuers through flexible financing solutions. BSP focuses primarily on non-broadly syndicated private debt opportunities where we can be both a provider of capital and a strategic partner to the companies to which we are lending. BSP employs a wide range of customized investment structures across the capital structure, which may include senior secured loans, unitranche loans, unsecured loans and convertible / preferred equity instruments.
Long-Short Liquid Credit
The long-short liquid credit strategy is a market neutral, uncorrelated, absolute return strategy focused primarily on sub-investment grade credit. BSP’s investment approach combines deep fundamental research with sophisticated trade structuring and dynamic portfolio management. The long-short liquid credit strategy is highly diversified with trades expressed through a combination of: fundamental longs / shorts, capital structure arbitrage trades and relative value pair trades. We perform private equity style due diligence and actively trade positions. The long-short liquid credit strategy is designed to produce low volatility returns, using minimal leverage and very little directional exposure.
Our long-only credit strategy consists primarily of the active management of levered loans and high yield bonds. We seek to generate outperformance by focusing on deep fundamental credit analysis, careful consideration of relative value and comprehensive risk management. BSP has excellent relationships with key leaders on both the sell-side and buy-side that lead to numerous competitive advantages. Additionally, our cross-capital structure analytical approach and co-existence of this strategy with a long-short strategy leads to systematic, repeatable alpha-generation.
Commercial Real Estate (CRE) Debt
We believe that the reduction in traditional bank lending capacity coupled with an unprecedented volume of CRE loan maturities over the next several years will create many attractive opportunities to invest in CRE debt. We believe that our team is uniquely qualified to exploit these opportunities given our deep set of industry relationships, strength in fundamental credit analysis and fixed income trading, and our extensive experience investing in CRE through multiple market cycles. We intend to utilize this skillset to identify investment opportunities with attractive risk-return profiles across the spectrum of CRE debt products.
Separately Managed Accounts
Recognizing that some investors have unique specifications, BSP tailors strategies to meet the individualized investment and return objectives of our clients. Our tailored strategies include middle market private debt / direct lending, long-short liquid credit, long-only liquid credit (secured debt / loans) and commercial real estate debt.