Several recent transactions indicate that investors continue to be drawn into the middle-market loan arena as they continue their never-ending searches for yield in a low-interest-rate environment. Capitala Finance Corp. (Nasdaq: CPTA), Mosaic Capital Partners and Fifth Street Senior Floating Rate Corp. (Nasdaq: FSFR) are among the groups exhibiting interest.

Capitala and Cion Investment Corp. (which is sub-advised by Apollo Investment LLC) created a joint venture in July to gain even more access to the space – Cion/Capitala Senior Loan Fund I LLC. Both partners are structured as business development companies (BDCs), which already gives them a way in to middle-market loans.

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