Solar Capital: Voya invests $25 million in middle market loan program

By Lisa Kerner

Charlotte, N.C., Oct. 16 – Solar Capital Ltd. announced that Voya Investment Management agreed to invest in its Senior Secured Unitranche Loan Program LLC (SSLP) with an initial equity commitment of $25 million, with the ability to upsize.

The joint venture is expected to invest primarily in middle market senior secured unitranche loans sourced by Solar Capital’s origination platform, according to a news release.

Voya plans to allocate additional capital from its insurance company affiliates and third-party clients to co-invest in unitranche loans alongside SSLP, the release stated.

Solar Capital said its existing strategic partner may co-invest up to $300 million of equity in unitranche loans alongside SSLP.

Voya’s addition brings total equity commitments to Solar Capital’s enhanced unitranche initiative to $625 million. Investable capital, including anticipated leverage, should total more than $1.5 billion.

“The middle market credit investing experience and capital that Voya brings to the table enhances our origination platform’s ability to provide complete financing solutions to our clients,” said Solar chairman and chief executive officer Michael Gross in a news release.

“Given the compelling risk-reward profile of senior secured unitranche loans, we expect to make significant investments alongside this joint venture to further diversify our private credit high-yield portfolio,” said Greg Addicks, head of private high yield at Voya.

Voya acts as the investment advisor for several wholly owned insurance subsidiaries of Voya Financial, Inc.

Solar Capital is a closed-end, externally managed investment company based in New York. It invests primarily in leveraged, middle-market companies in the form of senior secured loans, mezzanine loans and equity securities.

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