Franklin BSP Capital Corp

Franklin BSP Capital Corp

Franklin BSP Capital Corp was formed in 2018 through the consolidation of two non-traded BDCs — Franklin Square Investment Corp and Business Development Corporation of America — under the Franklin Templeton umbrella. Richard Byrne, who previously led Benefit Street Partners, serves as Chairman. The firm's origin as Franklin Legacy dates to 2007 when its predecessor entities began raising capital from retail investors. The firm's strategy centers on direct lending to middle-market companies across the capital structure. It targets senior secured loans, second-lien debt, mezzanine financing, and minority equity investments. Sector exposures include healthcare services (such as portfolio company Healogics), technology equipment leasing (via InfraTechnology), and specialty finance (through CBAM Partners). Its portfolio mixes floating-rate loans and fixed-rate CLO positions. Franklin BSP Capital Corp primarily invests in North American companies with EBITDA between $10 million and $100 million. The firm maintains a diversified portfolio of over 100 positions. In 2023, the BDC reported net investment income of $74 million (per SEC filings, 2023). The company is externally managed by Franklin Resources, the global asset manager with over $1.5 trillion in AUM. A structural differentiator is Franklin BSP's status as a publicly traded BDC, providing transparency and liquidity to investors while maintaining exposure to private credit markets. Its organizational structure — a BDC controlled by a large asset manager — allows it to deploy capital through a regulated vehicle with mandated distribution requirements, unlike most private credit funds.