Trinity Capital has entered into a joint venture agreement with an unnamed specialist credit manager with more than $5 billion in assets to provide loans and equipment financing to growth-stage companies.
The joint venture, called i40, will be co-managed by Trinity and the credit manager, according to a release. Trinity Capital will commit $21.4 million, while the specialist credit manager will contribute $150 million to the fund’s total $171.4 million in commitments.
The new venture will invest in loans and equipment financing to growth-stage companies that have been originated by Trinity Capital. Looking ahead, the joint venture intends to secure a credit facility to increase its deployment capacity.
“As an internally managed [business development company], we are highly focused on return on equity for investors and growth that is accretive to our shareholders,” Trinity Capital President and Chief Investment Officer Kyle Brown said in a statement. “Joint venture partnering and similar arrangements are key to achieving that goal, and this joint venture is just the beginning.”
Phoenix-based Trinity Capital provides equipment and venture debt financing to growth-stage companies with CapEx requirements. As of Sept. 30, equipment finance accounted for 23.6% of its $1 billion portfolio, according to the company’s third-quarter earnings report.