PIMCO has formed a joint venture with Solar Capital Partners as the firm continues to develop and expand its private credit platform.
Solar Capital Partners is an investor in private corporate credit with a 10-year track record of making private loans to corporate borrowers. The firm also has a network of relationships with middle market borrowers and private equity sponsors.
PIMCO is an alternatives manager with more than USD27 billion in alternative assets with a significant presence in private corporate credit across a range of strategies.
The joint venture is the result of collaboration between PIMCO and Solar Capital Partners that began in 2014.
Emmanuel Roman, PIMCO's chief executive officer, says: "This joint venture is a continuation of the disciplined expansion of PIMCO's alternatives' strategies since 2004, where we have sought to capitalise on targeted market opportunities by leveraging PIMCO's broad investment expertise and long-term performance focus."
Dan Ivascyn, group chief investment officer of PIMCO, adds: "We believe the combination of Solar Capital Partners' proven credit underwriting and relationships matched with PIMCO's global credit investment experience creates a superior ability in sourcing, evaluating, and underwriting private investments. We believe that private credit is an attractive super-secular opportunity."
Michael Gross, co-founder of Solar Capital Partners, says: "We are excited about expanding our partnership with PIMCO and the depth of resources they can bring to our investment process. We believe that a well-managed, private direct corporate lending strategy has the potential to provide an attractive risk-adjusted yield premium relative to public credit investments."
"Together with the two publicly-traded business development companies that we manage, Solar Capital and Solar Senior Capital, our joint venture with PIMCO can provide us with significant scale to deliver full solutions to our clients," says Bruce Spohler, co-founder of Solar Capital Partners.
