Bain Capital Specialty Finance, Inc. Forms Strategic Partnership with Pantheon
February 11, 2021 at 07:00 am EST
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Bain Capital Specialty Finance, Inc. announced the formation of a joint venture with the private credit business of Pantheon, to provide private direct lending solutions to middle market borrowers primarily across Europe and Australia. The joint venture will invest through the International Senior Loan Program, LLC (“ISLP”). BCSF and Pantheon have agreed to contribute capital, subject to the terms of their agreement, to purchase equity interests in ISLP. The equity ownership of ISLP is expected to be approximately 70.5% for BCSF and approximately 29.5% for Pantheon, with investment decisions requiring approval by representatives of both BCSF and Pantheon. ISLP’s investment portfolio is expected initially to consist of approximately $320 million in investment principal of senior secured loans contributed by BCSF. The strategic partnership is expected to provide BCSF with enhanced balance sheet flexibility to expand its global capabilities and greater capacity to continue to invest in new senior secured loan investments to middle market companies. Giving effect to BCSF’s expected transfer of the Initial Portfolio to ISLP, BCSF’s pro forma ending debt-to-equity (net of cash) ratio is expected to be approximately 1.1x, down from approximately 1.3x as of December 31, 2020. Bain Capital Credit has a global team dedicated to providing complete financing solutions to middle market companies across North America, Europe, and Australia. The team has been an active investor across Europe since 2007 and has been investing in Australia for nearly a decade. In total, the team has deployed over $13 billion in over 300 companies across its global direct lending strategy since 1999.
Bain Capital Specialty Finance, Inc. is an externally managed specialty finance company focused on lending to middle market companies. The Company's investment objective is to generate current income and, to a lesser extent, capital appreciation through direct originations of secured debt, including first lien, first lien/last out, unitranche and second lien debt, investments in strategic joint ventures, equity investments and, to a lesser extent, corporate bonds. Its primary focus is capitalizing on opportunities within Bain Capital Creditâs Senior Direct Lending Strategy, which seeks to provide risk-adjusted returns and current income to investors by investing in middle-market companies with between $10 million and $150 million in annual earnings before interest, taxes, depreciation and amortization. It is focused on senior investments with a first or second lien on collateral and strong structures and documentation intended to protect the lender. It is managed by BCSF Advisors, LP.
BAIN CAPITAL SPECIALTY FINANCE, INC. 
