Franklin Templeton's (NYSE:BEN) U.S. and European alternative credits businesses, Benefit Street Partners and Alcentra, have merged under one brand, Benefit Street Partners (BSP)The firm plans to integrate BSP and Alcentra, two credit firms that Franklin Templeton acquired in 2019 and 2022, respectively, according to an announcement from the company. David Manlowe, CEO of Benefit Street Partners, said: "BSP and Alcentra are complementary pioneers in alternative credit with long track records of successfully ...

Core Insights - Goal Investment Management has formed a strategic joint venture with Ares Alternative Credit funds to enhance its investment strategies in consumer assets [1][2] Group 1: Joint Venture Details - The joint venture will utilize Goal's operational and underwriting expertise alongside Ares' capital to acquire and manage consumer loan portfolios [2] - Investment sectors for the joint venture include education finance, home improvement, solar loans, and consumer installment loans [2] Group 2: Management and Strategy - Goal will manage the joint venture's portfolio using its proprietary analytics platform and sourcing network to identify high-value opportunities in the secondary market [3] - Goal has been active in the consumer asset space since 2013 and has managed the Goal Investment Credit Fund since 2022 [3] Group 3: Leadership Comments - Peter Sadowski, CIO at Goal, emphasized the significance of the partnership with Ares, highlighting the potential for scaling acquisition capabilities while adhering to disciplined underwriting standards [4] - Vincent Salerno from Ares expressed enthusiasm for the collaboration, noting the strength of Ares' flexible capital in supporting Goal's investment expansion [4] Group 4: Company Background - Goal Investment Management specializes in the U.S. consumer finance sector and has completed over 60 transactions, acquiring assets valued at over $2 billion [5] - Ares Management Corporation is a leading global alternative investment manager with over $595 billion in assets under management as of September 30, 2025 [6]

Core Insights - XA Investments LLC plans to expand its XAI Interval Fund Index™ with the launch of the XAI Interval Fund Credit Index™ (INTVL-C) in Q1 2026, which will track the performance of credit interval and tender offer funds [1][5]. Company Overview - XA Investments LLC, based in Chicago and founded in 2016 by XMS Capital Partners, serves as the investment adviser for multiple closed-end funds and provides investment fund structuring and consulting services [6]. Index Details - The INTVL-C will enhance transparency for asset managers by providing comprehensive performance metrics for credit funds, enabling better investment decisions and risk assessments [2]. - The sub-index will include over 50 credit interval and tender offer funds, allowing fund managers to benchmark their performance against peers in the credit interval fund market [3][5]. - The XAI Interval Fund Index™ measures a broader universe of interval and tender offer funds with over $100 million in net assets, currently consisting of 93 constituents across seven asset classes [5]. Market Position - The constituents of INTVL-C represent leading funds in the interval fund marketplace, with top managers including Cliffwater, CION, Carlyle, PIMCO, and others [4].

Core Viewpoint - Blue Owl Capital Inc. has launched the Blue Owl Alternative Credit Fund (OWLCX), aimed at providing individual investors access to alternative credit assets traditionally available only to institutional investors [1][5]. Fund Launch and Capital - OWLCX secured $850 million in capital from a diverse client base, marking it as one of the largest interval fund launches in history [2]. - The fund targets the estimated $11.2 trillion asset-based finance market, focusing on generating current income and long-term capital appreciation [1]. Investment Strategy - OWLCX employs a flexible mandate that allocates across credit assets backed by contractual cash flows from financial and hard assets, aiming to mitigate risk through diversified pools of amortizing assets [3]. - The fund intends to provide monthly distributions and quarterly liquidity via repurchase offers, structured as a registered interval fund [3]. Management Team - The fund is managed by Blue Owl Alternative Credit Advisors II LLC, which has a team of over 65 professionals with extensive expertise and relationships in the industry [4]. - The management team utilizes a dedicated data science effort, leveraging decades of counterparty data and millions of data points to enhance analytical capabilities [4]. Market Opportunity - Blue Owl's leadership believes that asset-based finance represents a significant opportunity for investors in private credit, with OWLCX designed to support individual investors seeking differentiated exposure and resilient performance across market cycles [5]. Company Overview - As of June 30, 2025, Blue Owl manages over $284 billion in assets across three multi-strategy platforms: Credit, Real Assets, and GP Strategic Capital [6]. - The company aims to provide differentiated alternative investment opportunities that deliver strong performance and risk-adjusted returns [6].

Financial Data and Key Metrics Changes - The company reported fee-related earnings (FRE) of $0.23 per share and distributable earnings (DE) of $0.21 per share for the second quarter [4] - FRE revenues grew by 29%, FRE increased by 23%, and DE rose by 20% year over year on a last twelve months basis [7] - The company raised $14 billion of new capital during the quarter, totaling a record $55 billion over the last twelve months, representing 28% of assets under management a year ago [6][7] Business Line Data and Key Metrics Changes - In alternative credit, the company closed a private offering of $850 million for a new interval fund, reflecting strong investor confidence [8] - The digital infrastructure strategy saw a final close of its third flagship fund at a $7 billion hard cap, with over half the capital already soft circled for investment [9] - The real estate credit strategy deployed over $3 billion year to date, with significant activity in the insurance channel [9] Market Data and Key Metrics Changes - Capital raised from EMEA and APAC investors increased to 23% from 14% two years ago, indicating ongoing globalization of the business [12] - The company raised $5.8 billion of equity in credit during the second quarter, marking a record quarter for the credit platform [24] - The direct lending portfolio gross returns were 3% in the second quarter and 13.5% over the last twelve months, with strong credit quality maintained [26] Company Strategy and Development Direction - The company is focused on expanding its product offerings to meet varying investor needs across the risk-return spectrum, leveraging its scale and incumbency [7] - A new strategic partnership with Voya aims to deliver private market strategies tailored for defined contribution retirement plans, broadening access to alternative investments [20] - The company plans to grow FRE management fees to over $5 billion and FRE to over $3 billion, indicating a strong long-term growth trajectory [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of their investor base despite market disruptions, highlighting the secular demand for their strategies [12] - The company noted that the investments made over the past year are beginning to bear fruit, with a steady and predictable financial profile [33] - Management emphasized the importance of the current macro environment for direct lending, indicating optimism for future transaction volumes [84] Other Important Information - The company completed the listing of its technology-focused BDC, OTF, which is now the second largest publicly traded BDC by net assets [22] - The company has raised $3.5 billion of capital across strategies that did not exist two years ago, reflecting strong reception for new offerings [10] - The net lease pipeline continues to grow, with nearly $41 billion of transaction volume under letter of intent [28] Q&A Session Summary Question: Can you discuss the asset origination channel and the scaling opportunity in asset-backed finance? - Management highlighted the significant opportunity in asset-backed finance and the integration of their asset-backed business with direct lending, emphasizing their strong origination capabilities [36][40] Question: What are the thoughts on the build-out of a target date fund with Voya? - Management discussed the importance of democratizing access to alternative investments for 401(k) participants and the potential for innovation in this area [50][54] Question: What should be expected regarding the integration and scaling of recently acquired businesses? - Management indicated that integration benefits are already being realized, with strong fundraising numbers and a diversified business model [60][66] Question: Can you comment on the competitive environment in the triple net lease market? - Management stated that their leadership in the net lease market has accelerated, with a growing pipeline and strong trust built with partners [75] Question: How is the direct lending business performing, and what are the expectations for the third quarter? - Management noted strong credit quality and a positive macro environment for direct lending, with signs of increased activity in the market [84]

Core Insights - Blue Owl Capital Inc. has successfully closed a private offering of an alternative credit fund, raising $850 million in capital commitments from a diverse client base [1][3] - The fund aims to provide current income and capital appreciation through investments in alternative credit strategies, particularly focusing on asset-based finance [2][4] - This achievement highlights Blue Owl's capability to access a large and underpenetrated alternative credit market, catering to the increasing demand for institutional-grade private credit solutions among individual investors [3][4] Company Overview - Blue Owl Capital manages over $273 billion in assets as of March 31, 2025, and operates across three multi-strategy platforms: Credit, Real Assets, and GP Strategic Capital [5] - The firm emphasizes its strong permanent capital base, which allows it to offer private capital solutions aimed at long-term growth and strong performance [5] - With a global team of over 1,200 experienced professionals, Blue Owl is positioned to create exceptional investment opportunities [6]

Financial Performance - Total revenue for the third quarter grew 15% to $3.2 million, compared to $2.8 million for the prior-year period[6] - GECC base management fees grew over 40% year-over-year due to FPAUM growth[6] - Fiscal 3Q25 revenue grew 15% to $3.2 million, compared to $2.8 million in the prior-year period[26] - Fiscal 3Q25 Adjusted EBITDA was $0.5 million, compared to $1.2 million in Fiscal 3Q24[24] - Net loss from continuing operations was ($4.5) million for Fiscal 3Q25, compared to net loss of ($2.9) million in the prior-year period[26] Assets Under Management - Assets Under Management ("AUM") reached $768 million as of March 31, 2025, a 12% increase from March 31, 2024[29] - Fee-Paying AUM ("FPAUM") was $565 million as of March 31, 2025, up 15% from March 31, 2024[31] - Great Elm ended the quarter with approximately $32 million of cash to deploy across its growing alternative asset management platform[6] Strategic Initiatives - Great Elm launched Monomoy Construction Services, LLC ("MCS") in February 2025 through the acquisition of Greenfield CRE, LLC ("Greenfield")[6] - Great Elm Capital Corp ("GECC") launched a $100 million At-the-Market equity program in May 2025[6] - Through May 6, 2025, Great Elm repurchased approximately 4.8 million shares for approximately $8.7 million, at an average cost of $1.84 per share[6]