Bain Capital Specialty Finance and Pantheon's private credit business have formed a private direct-lending joint venture.
The new venture, the International Senior Loan Program, will provide direct-lending solutions to middle-market borrowers, primarily in Europe and Australia. BCSF is expected to own about 70.5% of the venture, with the remaining 29.5% owned by Pantheon, a news release said. The investment portfolio is set to consist of about $320 million of senior secured loans contributed by BCSF, a subsidiary of Bain Capital Credit.
BCSF has agreed to contribute capital of up to about $180 million for the joint venture, while Pantheon has agreed to contribute up to $75 million.
Bain Capital Credit's direct lending assets under management as of Dec. 31 were more than $7 billion, a spokesman said. Pantheon's direct lending AUM as of Sept. 30 was $2.6 billion, a spokeswoman said.
"Bain Capital Credit has had a global lending presence for over 15 years," said Michael A. Ewald, CEO of BCSF, in the news release. "Our partnership with Pantheon is a natural extension of our middle-market lending expertise and scale and will allow us to further expand BCSF's reach and capabilities into Europe and Australia — markets where we continue to see attractive growth opportunities — while driving long-term value to our shareholders."
Rakesh Jain, partner and global head of private credit at Pantheon, said in the release that the international reach of the partnership further strengthens the firm's credit coverage.
The transfer of the initial portfolio to the joint venture is expected to occur by the end of this month, subject to conditions and final approval by BCSF and Pantheon.