Saratoga Investment Corp. - Company Summary

Business Description

• Type: Specialty finance company, regulated as a Business Development Company (BDC).
• Location: Headquarters at 535 Madison Avenue, New York, NY.
• Management: Externally managed by Saratoga Investment Advisors, LLC, an affiliated investment advisory firm.
• Operations Start Date: March 23, 2007 (initially as GSC Investment Corp.).

Core Business Activities

• Investment Focus: Provides customized financing solutions to U.S. middle-market businesses.
• Investment Objective: Generate attractive risk-adjusted returns through current income and long-term capital appreciation.
• Primary Investment Types:
  • Senior and unitranche leveraged loans.
  • Mezzanine debt.
  • Equity securities (preferred or common).
• Target Companies: Private U.S. middle-market firms with EBITDA between $2 million and $50 million.

Investment Strategies

• Use of Leverage: Employs borrowings to finance investments, with total assets of approximately $1,191.5 million as of February 28, 2025.
• Portfolio Composition (as of Feb 28, 2025):
  • 88.7% in first lien term loans.
  • 0.7% in second lien term loans.
  • 1.7% unsecured loans.
  • 1.5% structured finance securities.
  • 7.4% in equity interests.
• Investment Vehicles:
  • Direct lending through senior loans and mezzanine debt.
  • Equity investments in portfolio companies (including preferred equity).
  • Opportunistic investments (distressed debt, private equity, non-traded securities, structured finance, international debt).
  • Investments via collateralized loan obligation (CLO) funds; e.g., Saratoga CLO, with a first-loss position.

Portfolio & Assets (as of Feb 28, 2025)

• Number of Portfolio Companies: 48 (excluding specific CLO and fund investments).
• Assets: $1,191.5 million.
• Investments include:
  • 88.7% in senior secured first lien loans.
  • Investments in structured finance and equity interests.
  • Investments in CLOs and joint ventures.

Financial Performance

• Weighted Average Yield: Approximately 10.8% on investments.
• Total returns:
  • 27.17% (market value basis) for fiscal ending Feb 28, 2025.
  • 10.11% (NAV basis) for fiscal ending Feb 28, 2025.
  • Previous year (ending Feb 29, 2024): Market return of -3.92%, NAV return of 4.20%.

Customers & Portfolio Companies

• Number of Portfolio Companies: 48 middle-market firms.
• Customer Base: U.S. middle-market businesses, primarily in industries such as banking, finance, insurance, real estate, and business services.

Employees & Management

• Number of Employees: None directly employed; all services provided by Saratoga Investment Advisors' staff.
• Management Team of Investment Adviser: Four principals with 28-38 years of leveraged finance experience.
• Ownership: Saratoga Investment Corp. is a non-diversified closed-end management investment company, primarily funded through equity and debt offerings.

Revenue & Income

• Interest Income: Approximately $1.8 million earned from investments in joint ventures like SLF JV for the year ended Feb 28, 2025.
• Distribution Policy: Pays quarterly dividends; also offers a dividend reinvestment plan (DRIP).
• Total Assets (as of Feb 28, 2025): $1,191.5 million.

Note: The data provided is based solely on the company's filing as of the fiscal year ending February 28, 2025, and includes specific figures on assets, investments, and performance; it does not include projected or hypothetical data.