BSP holds first close on two funds – exclusive

The firm's special situations fund is seeking $500 million.

Market sources indicate that Benefit Street Partners has held first closes of around $1 billion on Benefit Street Partners Debt Fund IV (BSP IV), and around $500 million on its Benefit Street Partners Special Situations Fund (BSP SS).

Private Debt Investor exclusively reported the New York-based firm began raising its fourth fund with a $1.75 billion target in the fall. Benefit Street is seeking $500 million for its BSP SS vehicle, documents from the New Jersey Division of Investment (DoI), which made a $150 million commitment showed.

Benefit Street declined to comment.

BSP SS will invest in companies with capital structures less than $1.5 billion, the DoI documents showed. BSP IV’s predecessor, Providence Debt Fund III, raised $1.75 billion, above its $1 billion goal, according to a statement from the firm at the time.

New York-based Benefit Street is the private credit subsidiary of Providence Equity Partners. Benefit Street got its start in 2008 when several high-ranking Deutsche Bank executives were hired by Providence to launch a debt business. They started out with technology, media and telecommunications funds, as it was their specialty at Deutsche Bank.