CION and Apollo Form Joint Venture
CION Investment Group LLC and Apollo Investment Management LP, the sponsor and sub-adviser of non-traded business development company CION Investment Corporation, are creating a joint venture where both companies will own a 50 percent interest in CION Investment Management LLC, the BDC’s adviser.
Apollo Investment Management was issued a newly-created class of membership interests in CION Investment Management and will share in the adviser’s profits, losses, distributions and expenses, the filing said.
Although the independent directors of CĪON Investment Corporation unanimously approved the termination of the sub-advisory agreement, Apollo will continue to perform identical services for the adviser and the BDC, including identifying investment opportunities and making investment recommendations. Apollo will not be paid a separate fee in exchange for their services.
As part of the agreement, Howard Widra and Richard Kilcoyne will serve as Apollo’s appointee to the board of directors and the investment committee of CION Investment Management, respectively. Wildra is the president of Apollo Investment Corporation, and Kilcoyne is a member of the investment management team at Apollo Global Management.
In addition, CION Investment Corporation increased the size of its board from six to seven directors, and appointed Joseph Glatt as an interested director. Glatt serves as general counsel, secretary and vice president for Apollo Capital Management, and chief legal officer, secretary and vice president of Apollo Investment Corporation.
CION Investment Corporation invests primarily in the senior-secured debt of private U.S. middle market companies, and since commencing its initial continuous public offering in July 2012, has raised $1.1 billion in investor equity since inception.
