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CION Investment Corporation Announces Formation of CION/EagleTree Partners, LLC
Rhea-AI Impact
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Rhea-AI Sentiment
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Rhea-AI Summary
CION Investment Corporation has established a joint venture with EagleTree Capital named CION/EagleTree Partners, LLC. This off-balance sheet partnership allows EagleTree to invest alongside CION, focusing on debt and junior capital investment opportunities. The initial combined holdings are approximately $97 million in second lien debt and $15 million in cash. CION retains 85% ownership, while EagleTree and Bullingham Capital hold 15%. The partnership aims to leverage the strengths of both firms to enhance returns for shareholders.
Positive
Formation of a joint venture with EagleTree Capital to enhance investment opportunities.
Initial holdings include a diversified portfolio worth approximately $97 million.
CION maintains 85% ownership, ensuring significant control over the JV.
Negative
None.
Joint Investment Partnership with EagleTree Capital
NEW YORK--(BUSINESS WIRE)--
CION Investment Corporation (NYSE: CION) (“CION” or the “Company”) today announced that it has formed CION/EagleTree Partners, LLC (the “JV”), an off-balance sheet joint investment entity with an affiliate of EagleTree Capital, LP (“EagleTree”) through which EagleTree has made a Firm-level investment. Bullingham Capital, a New York-based private investment firm, will invest alongside EagleTree. The JV will jointly pursue debt opportunities and special situation, crossover, subordinated and other junior capital investments that leverage the combined sourcing and portfolio management capabilities of CION’s and EagleTree’s respective credit and private equity platforms. The initial holdings of the JV consist of a diversified portfolio of approximately $97 million of second lien debt and equity investments that was held by CION immediately prior to closing and approximately $15 million of cash contributed by EagleTree and Bullingham Capital.
The initial equity ownership of the JV will be 85% by CION and 15% by a Firm-level investment entity jointly owned by EagleTree and Bullingham Capital. Each of CION and EagleTree will have equal voting rights on the Board. Principals of CION and EagleTree have a longstanding relationship of working and partnering together on transactions that spans more than 25 years.
“Partnering with EagleTree, a leading middle-market private equity firm, will greatly benefit the management of the JV and its investment portfolio,” stated Mark Gatto, co-Chief Executive Officer of CION. “EagleTree’s strong track record and proven capabilities in private equity investing will support our objective to deliver attractive risk-adjusted returns on these investments for our shareholders.”
“The creation of this JV provides CION the opportunity to expand our investment focus to capitalize on special situation loan and other junior capital investment opportunities through the increased depth and breadth of our sourcing, execution, and portfolio management capabilities,” stated Michael A. Reisner, co-Chief Executive Officer of CION.
Anup Bagaria and George L. Majoros, Jr., EagleTree’s Co-Managing Partners commented that, “Consistent with our desire to pursue complementary growth opportunities, we are excited about this new partnership with CION, a leading direct lender with whom we have worked together for many years. We are pleased to be invested alongside CION and look forward to collaborating with them on this new joint venture.”
ABOUT CION INVESTMENT CORPORATION
CION Investment Corporation is a leading publicly listed business development company that had approximately $1.8 billion in assets as of September 30, 2021. CION seeks to generate current income and, to a lesser extent, capital appreciation for investors by focusing primarily on senior secured loans to U.S. middle-market companies. CION is advised by CION Investment Management, LLC, a registered investment adviser and an affiliate of CION. For more information, please visit www.cionbdc.com.
ABOUT EAGLETREE CAPITAL
EagleTree Capital, LP is a leading New York-based middle-market private equity firm with assets under management of $4.8 billion as of December 31, 2020. The firm has completed over 35 private equity investments and over 75 add-on transactions over the past 20+ years. EagleTree primarily invests in North America in the following sectors: media and business services, consumer, and water and specialty industrial. For more information, visit www.eagletree.com or find EagleTree on LinkedIn.
FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements that involve substantial risks and uncertainties. You can identify these statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expect,” “anticipate,” “project,” “target,” “estimate,” “intend,” “continue,” or “believe” or the negatives thereof or other variations thereon or comparable terminology. You should read statements that contain these words carefully because they discuss CION’s plans, strategies, prospects and expectations concerning its business, operating results, financial condition and other similar matters. These statements represent CION’s belief regarding future events that, by their nature, are uncertain and outside of CION’s control. There are likely to be events in the future, however, that CION is not able to predict accurately or control. Any forward-looking statement made by CION in this press release speaks only as of the date on which it is made. Factors or events that could cause CION’s actual results to differ, possibly materially from its expectations, include, but are not limited to, the risks, uncertainties and other factors CION identifies in the sections entitled “Risk Factors” and “Forward-Looking Statements” in filings CION makes with the SEC, and it is not possible for CION to predict or identify all of them. CION undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
OTHER INFORMATION
The information in this press release is summary information only and should be read in conjunction with CION’s Current Reports on Form 8-K, which CION filed with the SEC on December 23, 2021 and December 28, 2021, as well as CION’s other reports filed with the SEC. A copy of CION’s Current Reports on Form 8-K and CION’s other reports filed with the SEC can be found on CION’s website at www.cionbdc.com and the SEC’s website at www.sec.gov.
Analysts and Institutional Investors Jeehae Linford The Equity Group
jlinford@equityny.com
212-836-9615
Source: CION Investment Corporation
FAQ
What is the CION and EagleTree joint venture about?
CION has formed the CION/EagleTree Partners, LLC joint venture to pursue debt and junior capital investment opportunities, enhancing portfolio management capabilities.
What are the initial investments in the CION joint venture with EagleTree?
The joint venture consists of approximately $97 million in second lien debt and $15 million in cash contributed by EagleTree and Bullingham Capital.
What percentage of the joint venture does CION own?
CION retains an 85% ownership stake in the CION/EagleTree joint venture.
What benefits does the joint venture provide to CION Investment Corporation?
The partnership with EagleTree aims to expand CION's investment focus and leverage shared sourcing and management capabilities for improved returns.
