Capitala Finance Corp. (the "Company" or "Capitala") (Nasdaq:CPTA) announced today that it has formed a joint venture with CĪON Investment Corporation ("CĪON") to create CĪON /Capitala Senior Loan Fund I, LLC. CĪON is a non-traded BDC with approximately $1.1 billion of assets under management as of March 31, 2015. CĪON is sub-advised by an affiliate of Apollo Global Management, LLC ("Apollo"). The joint venture is expected to invest primarily in senior secured loans to broadly syndicated and larger middle-market companies.
Capitala and CĪON have committed to initially provide up to $50 million of equity to the joint venture, with Capitala providing up to $10 million and CĪON providing up to $40 million. In addition, the joint venture is in negotiations to obtain third party asset-level financing. Capitala and CĪON expect to begin funding the portfolio with new investments during the third quarter of 2015.
"The joint venture with CĪON marks another key step in the growth of Capitala's liquid credit strategies and provides an opportunity to strengthen our relationship with CĪON, Apollo, and the leveraged finance desks who have all been great partners to date," stated Joseph B. Alala, III, Chairman and CEO of Capitala.
About Capitala Finance Corp.
Capitala Finance Corp. is a business development company that invests primarily in traditional mezzanine, senior subordinated and unitranche debt, as well as senior and second-lien loans and, to lesser extent, equity securities issued by lower and traditional middle-market companies. The Company is managed by Capitala Investment Advisors, LLC. For more information about the Company, please visit www.CapitalaGroup.com.
About CĪON Investment Corporation
CĪON is a middle-market loan fund that is structured as a publicly registered, non-traded business development company. CĪON offers individual investors the opportunity to invest primarily in the senior-secured debt of private U.S. middle market companies. CĪON leverages the experience of its adviser - CĪON Investment Management, LLC, an ICON Investments company - and its sub-adviser - Apollo Investment Management, L.P., a subsidiary of Apollo - to meet its investment objective of generating current income and, to a lesser extent, long-term capital appreciation for its investors. For more information, please visit www.cioninvestmentcorp.com.