The joint venture is the result of a partnership that began in 2014.

Investment manager PIMCO has entered into a joint venture with Solar Capital Partners, an investment advisor serving US-based middle market companies, in a bid to expand its private credit platform.

Solar Capital Partners is a highly-respected investor in the private corporate credit sector with a successful track record of making private loans to corporate borrowers, PIMCO said in a statement.

“This joint venture is a continuation of the disciplined expansion of PIMCO’s alternatives strategies since 2004, where we have sought to capitalize on targeted market opportunities by leveraging PIMCO’s broad investment expertise and long-term performance focus,” said Emmanuel Roman, PIMCO's chief executive.

Commenting on the joint venture, Michael Gross, co-founder of Solar Capital Partners, said: “We believe that a well-managed, private direct corporate lending strategy has the potential to provide an attractive risk-adjusted yield premium relative to public credit investments.”