Capitala Finance has formed a joint venture with  CĪON Investment Corporation to create  CĪON/Capitala Senior Loan Fund I.

CĪON is a non-traded BDC with approximately $1.1 billion of assets under management as of March 31.  CĪON is sub-advised by an affiliate of Apollo Global Management. The joint venture is expected to invest primarily in senior secured loans to broadly syndicated and larger middle-market companies.

Capitala and  CĪON have committed to initially provide up to $50 million of equity to the joint venture, with Capitala providing up to $10 million and  CĪON providing up to $40 million. In addition, the joint venture is in negotiations to obtain third party asset-level financing. Capitala and  CĪON expect to begin funding the portfolio with new investments during the third quarter of 2015.

“The joint venture with  CĪON marks another key step in the growth of Capitala’s liquid credit strategies and provides an opportunity to strengthen our relationship with  CĪON, Apollo and the leveraged finance desks who have all been great partners to date,” said Joseph B. Alala, III, chairman and CEO of Capitala.