HMS Income Fund Inc. and ORIX Funds Corp. have formed a joint venture that is expected to invest primarily in broadly syndicated loans.
The two companies entered into a limited liability company agreement to co-manage HMS-ORIX SLF LLC. HMS Income Fund committed to provide $30 million of equity and will initially own 60% of HMS-ORIX SLF. ORIX Funds will provide $20 million of equity and will own 40% of the joint venture.
The two companies will have equal representation on the joint venture's board of managers.
In addition, HMS-ORIX SLF entered into a $100 million credit facility with Bank of America NA to help achieve its investment objectives.