KeyBank and Beach Point Capital Management, a credit focused investment manager, announced that they have established a new joint venture middle market direct lending program with $1.5 billion in lending capacity for U.S. middle market clients.

The KeyBank Beach Point Direct Lending Program offers loans with flexibility in structure to middle market borrowers. This approach expedites closing and certainty of execution, and KeyBank Beach Point Direct Lending borrowers will benefit from a single lending entity. The direct lending program will span industries where KeyBank and Beach Point have deep expertise and relationships, including the industrial, healthcare, consumer, and technology sectors.

"This product will provide a competitive financing solution with a seamless, streamlined execution for our middle market clients," said KeyBank Beach Point Direct Lending Program Fund Manager Bob Scelza. "We are excited to partner with Beach Point to add a middle market direct lending program to our platform."

"We have long respected the industry lending teams at KeyBank and are thrilled to work with them to bring a differentiated and compelling direct lending solution to the middle market," said Co-Head of Private Credit at Beach Point Capital Management Michael Haynes.

Brian Himot, Co-Head of Private Credit at Beach Point Management, added: "The joint venture compliments Beach Point's larger private credit platform and is a natural extension of our success across credit markets. We are confident this initiative will deliver attractive returns for our clients and value for middle market borrowers and other stakeholders."

By offering a competitive direct lending solution, the KeyBank Beach Point Direct Lending Program will be able to deploy capital efficiently for KeyBank's middle market clients and private equity sponsors while providing attractive potential risk adjusted returns to Beach Point's investors.