CSLF II is a joint venture between Capitala Finance and a leading insurance company, with a longstanding relationship with Capitala, and invests in senior secured loans to lower middle market companies.
The partnership, with $50 million of junior capital invested by both Capitala Finance Corp. and the insurance company, continues to scale, allowing CSLF II to provide additional price-competitive capital to lower middle-market companies in North America. CSLF II began investing during the fourth quarter of 2018 and continues to invest in first-out positions of senior secured loans, allowing Capitala Finance and certain other unaffiliated Capitala Group-managed accounts to invest in the same loans, at yields that satisfy those funds’ return profiles.
“We have proudly partnered with KeyBank in expanding the capitalization and competitive position of CSLF II,” stated Joe Alala, III, chairman and CEO of Capitala Group. “CSLF II and Capitala Group are in a better position to competitively finance the dynamic and critical U.S. lower middle market as a result of this partnership.”
Capitala Group is a $3 billion asset management firm that has been providing capital to lower middle market companies throughout North America for 20 years.