Are senior-secured-loan joint ventures the next big thing in financing? With private equity firms making closing certainty a priority, lenders often need to demonstrate significant hold sizes to win deals. And for some lenders, including CIT Group Inc. (NYSE: CIT) and Ares Capital Corp. (Nasdaq: ARCC), pairing up can provide that assurance.
CIT is making its first move in the space by teaming up with TPG Special Situations Partners to form Strategic Credit Partners, a joint venture that will provide senior secured financing to companies in the communications, health care, information services and technology, industrial and restaurant sectors. CIT Asset Management LLC is the administrative agent.