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Hines BDC and ORIX Affiliate Form Joint Venture

HMS Income Fund Inc., a non-traded business development company sponsored by Hines, entered into a joint venture agreement with ORIX Funds Corp. to co-manage a limited liability company called HMS-ORIX SLF LLC. The joint venture plans to invest primarily in broadly-syndicated loans.

HMS Income Fund and ORIX committed a total of $50 million to the joint venture, with HMS providing $30 million and ORIX providing $20 million.

HMS will own a 60 percent stake in the joint venture, while ORIX will own the remaining 40 percent. Each company will have equal representation on the board of managers. HMS named Alejandro Palomo and Nick Meserve as managers, while ORIX named Allan Toole and Marc Kutik.

Toole is senior managing director and head of asset management for ORIX USA, and Kutik is senior managing director and chief risk officer for ORIX USA.

Palomo is a managing director – investment management at Hines and a director for the HMS Income Fund. Meserve is a managing director at a publicly-traded BDC Main Street Capital (NYSE:MAIN), the sub-advisor of HMS Income Fund.

Additionally, the joint venture has entered into a $100 million credit facility with Bank of America, N.A. to utilize for investment purposes.

ORIX USA is the U.S. subsidiary of ORIX Corporation (NYSE: IX), a publicly owned Tokyo-based international financial services company founded in 1964. Operating in 36 countries and regions worldwide, ORIX Corporation is a diversified financial conglomerate with more than $90 billion in assets and more than $300 billion of assets under management.

HMS Income Fund makes debt and equity investments in middle market companies, with annual revenues generally between $10 million and $3 billion, and in lower middle market companies, with annual revenues between $10 million and $150 million. The company went effective in June 2012 and had raised a total of $714 million in its primary and secondary offerings, as of December 31, 2016. The company’s portfolio had a total value of approximately $1.1 billion, according to Summit Investment Research.

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