Public, non-traded business development company (BDC) Sierra Income Corporation (Sierra) recently announced a new joint venture (JV) with Great American Life Insurance Company (Great American) that will invest in middle market and other corporate debt securities.
“We are pleased to build this strategic partnership with a leader in the U.S. insurance industry with deep expertise in credit investing,” commented Seth Taube, Sierra’s Chief Executive Officer and Chairman of the Board of Directors.
Sierra committed $87.5 million to the joint venture known as Sierra Senior Loan Strategy JV I LLC, while Great American will provide $12.5 million. The JV is also in talks with third party financers to secure a credit facility.
“We expect that this joint venture will be additive to Sierra’s return on equity as well as net investment income per share,” added Taube.
Sierra also announced receipt of $37.1 million in capital during the month of March, which brings its total capital raised to $615 million.
The BDC invests in first lien senior secured debt, second lien secured debt, and occasionally, subordinated debt of middle market companies across many industries.