Bain Capital, Pantheon Ventures form JV for direct lending

Boston-based Bain Capital Specialty Finance Inc. and San Francisco-based Pantheon Ventures (US) LP’s private credit business formed a joint venture called the International Senior Loan Program LLC.

The tie-up will offer private direct lending solutions to middle-market borrowers primarily across Europe and Australia.

Bain Capital will hold a 70.5% equity stake in the venture, while Pantheon Ventures will own the remaining 29.5% stake.

Bain Capital will contribute approximately $320 million in principal amount of senior secured loans, which will serve as the initial capital for the International Senior Loan Program. As a result of the expected transfer of the loans, Bain Capital expects its pro forma ending debt-to-equity ratio will go down to 1.1x from 1.3x as of Dec. 31, 2020.

The transfer of the loans to the joint venture is expected to occur by the end of February.

Source: S&P Global