Capital Southwest, a capital solutions provider, and Trinity Capital, an alternative asset manager, have launched a $100 million joint venture that will invest in senior secured debt opportunities in the lower middle market. 

The JV will be owned equally, with each firm pledging $50 million and holding a 50% equity interest.  

Additionally, investment and operational recommendations will be overseen by the joint venture’s board of managers, Capital Southwest said. 

The joint venture is expected to gain leverage through a senior-secured credit facility, with borrowings used to fund various portfolio investments. 

“We are excited to partner with a highly credible firm like Capital Southwest,” Kyle Brown, CEO of Trinity Capital, said. “We believe this JV positions both firms to be very competitive across a broader opportunity set in the lower middle market by combining disciplined credit underwriting with flexible capital solutions.” 

This month, Trinity Capital committed $90 million in growth capital across three MedTech companies, including Emboline, Neuros Medical, and Monteris Medical. 

Dallas-based Capital Southwest manages $2 billion in investments as of December 31, and focuses on supporting M&A activities of middle market businesses with $5 million to $50 millioninvestments across the capital structure.  

Phoenix-based Trinity Capital provides investments to companies across the sponsor finance, equipment finance, tech lending, asset-based lending, and life sciences sectors.