CION Investment Corporation (NYSE: CION) (“CION” or the “Company”) today announced that it has formed CION/EagleTree Partners, LLC (the “JV”), an off-balance sheet joint investment entity with an affiliate of EagleTree Capital, LP (“EagleTree”) through which EagleTree has made a Firm-level investment. Bullingham Capital, a New York-based private investment firm, will invest alongside EagleTree. The JV will jointly pursue debt opportunities and special situation, crossover, subordinated and other junior capital investments that leverage the combined sourcing and portfolio management capabilities of CION’s and EagleTree’s respective credit and private equity platforms. The initial holdings of the JV consist of a diversified portfolio of approximately $97 million of second lien debt and equity investments that was held by CION immediately prior to closing and approximately $15 million of cash contributed by EagleTree and Bullingham Capital.
The initial equity ownership of the JV will be 85% by CION and 15% by a Firm-level investment entity jointly owned by EagleTree and Bullingham Capital. Each of CION and EagleTree will have equal voting rights on the Board. Principals of CION and EagleTree have a longstanding relationship of working and partnering together on transactions that spans more than 25 years.
“Partnering with EagleTree, a leading middle-market private equity firm, will greatly benefit the management of the JV and its investment portfolio,” stated Mark Gatto, co-Chief Executive Officer of CION. “EagleTree’s strong track record and proven capabilities in private equity investing will support our objective to deliver attractive risk-adjusted returns on these investments for our shareholders.”
“The creation of this JV provides CION the opportunity to expand our investment focus to capitalize on special situation loan and other junior capital investment opportunities through the increased depth and breadth of our sourcing, execution, and portfolio management capabilities,” stated Michael A. Reisner, co-Chief Executive Officer of CION.
Anup Bagaria and George L. Majoros, Jr., EagleTree’s Co-Managing Partners commented that, “Consistent with our desire to pursue complementary growth opportunities, we are excited about this new partnership with CION, a leading direct lender with whom we have worked together for many years. We are pleased to be invested alongside CION and look forward to collaborating with them on this new joint venture.”
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