Benefit Street Partners L.L.C. entered into a definitive agreement to acquire BNY Alcentra Group Holdings, Inc from The Bank of New York Mellon Corporation (NYSE:BK) for $700 million on May 31, 2022. Franklin, parent of Benefit Street Partners L.L.C. will pay $350 million in cash at close and up to a further $350 million in contingent consideration dependent on the achievement of certain performance thresholds over the next four years. In addition, Franklin has committed to purchase all seed capital investments from the Company related to Alcentra which, as of March 31, 2022, were valued at approximately $305 million.

The seed capital investments will be valued at the time of close to determine the final seed capital purchase amount. Transaction to be funded from existing cash on balance sheet. At close, the Company expects the transaction to increase its Common Equity Tier 1 capital by approximately $0.5 billion.

The transaction is expected to be completed early in the first calendar quarter of 2023, subject to customary closing conditions, including certain regulatory approvals. Morgan Stanley & Co. LLC and UBS Investment Bank served as financial advisors to Franklin and David Boston and Danielle Scalzo of Willkie Farr & Gallagher LLP served as legal counsel.

Ardea Partners served as financial advisor to BNY Mellon and Mitchell S. Eitel, Eric M. Diamond, S. Eric Wang, Andrew Thomson, Marc Treviño, Tiffany D. Wooley, Benjamin H. Weiner, Eric H. Queen and Juan Rodriguez of Sullivan & Cromwell LLP served as legal counsel.