Fifth Street and Kemper Launch Senior Loan Fund JV I
Fifth Street Finance announced it has formed a joint venture with Trinity Universal Insurance, a subsidiary of Kemper, to create Senior Loan Fund JV I. The joint venture is expected to invest primarily in middle market and other corporate debt securities, consistent with FSC’s core origination and underwriting strategy.
FSC and Trinity have committed to provide $100 million of subordinated notes and equity to the joint venture, with FSC providing $87.5 million and Trinity providing $12.5 million. In addition, SLF JV I intends to seek up to $200 million in third party financing. FSC and Trinity anticipate beginning to fund the joint venture’s portfolio with existing assets contributed from FSC.
“SLF JV I further deepens our longstanding relationship with the investment team at Kemper, demonstrates the value of our affiliation with Fifth Street’s leading middle market origination platform and expands the types of financing solutions available to our private equity clients,” said FSC’s CEO Leonard M. Tannenbaum.
Fifth Street Finance is a specialty finance company that provides custom-tailored financing solutions to small- and mid-sized companies, primarily in connection with investments by private equity sponsors.
Kemper Corporation, with $8 billion in assets, specializes in property and casualty insurance and life and health insurance for individuals, families and small businesses.