Carlyle and Sixth Street BDCs Launch $600M Joint Venture for CLO Investments

Several business development companies managed by The Carlyle Group and Sixth Street have announced the formation of Structured Credit Partners JV, LLC, or SCP, a joint venture focused on investing in broadly syndicated first lien senior secured loans. The venture will be financed with long-term, non-mark-to-market collateralized loan obligation debt that is predominantly investment-grade rated.

SCP is initially capitalized with $600 million in equity commitments from four participating entities:

• Sixth Street Specialty Lending Inc. (NYSE: TSLX): $200 million commitment;
• Carlyle Secured Lending Inc. (Nasdaq: CGBD): $150 million commitment;
• Carlyle Credit Solutions Inc.: $150 million commitment; and
• Sixth Street Lending Partners: $100 million commitment.

SCP intends to provide shareholders in the respective BDCs with diversified exposure to actively managed corporate credit and the ability to generate enhanced risk-adjusted returns.

A key driver of the partnership is its fee-free structure. SCP will not be charged management or incentive fees on its underlying CLOs or at the joint venture level, a move expected to make the venture accretive to the return on equity for BDC shareholders.

Governance of SCP is shared equally between the two firms, with material decisions requiring unanimous approval from both Carlyle and Sixth Street representatives. Approximately half of the CLOs issued by SCP will be managed by Carlyle affiliates, while the other half will be managed by Sixth Street affiliates.

According to the companies, the venture draws upon a collective 35 years of CLO management experience. Together, the two platforms manage more than $60 billion in current CLO assets across more than 130 vehicles.

Robert Stanley, chief executive officer of Sixth Street, noted during a recent earnings call that the partnership “enhances diversification and expands investment flexibility” for its BDC shareholders while targeting mid-teens equity returns.

In December 2025, AltsWire reported that Carlyle Credit Solutions, a non-traded perpetual life BDC, overhauled its capital structure and expanded its share capacity. The company increased its total authorized common stock from 200 million to 300 million shares and renamed and redesignated its existing common stock as Class I common stock.

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