OFS Capital Corp. (Nasdaq: OFS) is buying Tamarix Capital Partners LP for an undisclosed price.

Tamarix Capital is a small business investment company (SBIC). The group will become a subsidiary of OFS Capital. The Small Business Administration has approved the transaction.

OFS is a business development company that invests in U.S. middle market businesses. The deal should give the group more financing capacity, which should allow it to increase direct lending activities. 

For more on SBICs, see “SBIC Lenders Grow in Small Bank Space” and “Fifth Street Takes New BDC Public.”