Franklin Templeton, an investment management firm, has acquired BNY Alcentra Group Holdings from BNY Mellon.

Alcentra has $38 billion in assets under management with expertise in senior secured loans and high yield bonds.

“We have been deliberate in building our alternative asset management capabilities over recent years, and the acquisition of Alcentra is an important aspect of our alternative asset strategy – the expansion into alternative European credit,” said Jenny Johnson, CEO of Franklin Templeton. “This acquisition expands our long-standing relationship with BNY Mellon, and we are pleased that the transaction structure achieves objectives for both Franklin Templeton and BNY Mellon.”

Morgan Stanley & Co. LLC and UBS Investment Bank served as financial advisors to Franklin Templeton, and Willkie Farr & Gallagher LLP acted as legal counsel. Ardea Partners served as financial advisor to BNY Mellon, and Sullivan & Cromwell LLP acted as legal counsel.