Benefit Street Partners Closes $10B Opportunistic Debt Fund for Multifamily Deals
The firm was active in 2025, having deployed $9 billion of capital
By Brian Pascus January 8, 2026 12:38 pm
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One of the bigger players in commercial real estate fundraising just announced the close of an enormous flagship opportunistic debt fund targeting middle-market multifamily investments.
Benefit Street Partners, a wholly owned subsidiary of the $91 billion investment powerhouse Franklin Templeton, announced Thursday that it secured $3 billion of equity commitments to close its second fund associated with its U.S. real estate debt strategy.
The fund — BSP Real Estate Opportunistic Debt Fund II, known as “ODF II” — ultimately secured $10 billion of commitments and is the largest fundraise closing in firm history for a fund that will invest in multifamily.
David Manlowe, CEO of Benefit Street Partners, noted in a statement there has been a continued and sustained shift in CRE capital markets toward private credit solutions in recent years, and that his firm believes current investment opportunities are “both compelling and enduring.
“With our scale, experience, and disciplined approach to credit, BSP is well positioned to capitalize on today’s market environment,” he added.
ODF II will mainly originate senior and junior loans into multifamily investments across the U.S., with a focus on middle-market opportunities along with some distressed deals.
The firm was busy in 2025 and deployed a company-record $9 billion in capital. All told, Benefit Street Partners has originated more than $30 billion in CRE loans since its founding in 2013.
Michael Comparato, senior managing director and head of real estate at Benefit Street Partners, noted in a statement that traditional lending sources such as regional and commercial banks have pulled back in this most recent cycle. This trend, together with a wave of maturities across asset class, has created “a favorable backdrop” for well-capitalized private lenders like his firm, Comparato said.
“Our experience across cycles and longstanding relationships position us to originate high-quality, well-structured loans in a market where private capital is increasingly essential,” he added.
Brian Pascus can be reached at bpascus@commmercialobserver.com.
