Saratoga Investment Corp. (NYSE: SAR) is a publicly traded business development company (BDC) that provides customized financing solutions for middle market companies located in the United States. Saratoga’s senior investment professionals have over 200 years of combined experience investing in more than $4 billion in middle market businesses.
Saratoga Investment Corp. (the BDC) has over 1.3 billion of assets under management. Within the BDC, Saratoga Investment Corp. owns three SBIC-licensed subsidiaries, manages a $650 million collateralized loan obligation (“CLO”) fund and co-manages a joint venture (“JV”) fund that owns a $400 million collateralized loan obligation (“JV CLO”) fund. It also owns 52% of the Class F and 100% of the subordinated notes of the CLO, 87.5% of both the unsecured loans and membership interests of the JV and 87.5% of the Class E notes of the JV CLO. These diverse funding sources, combined with a permanent capital base, enable Saratoga to offer a broad range of financing solutions, including subordinated debt, first and second lien loans, one-stop and unitranche structures and equity co-investments.
Saratoga seeks to partner with business owners (equity sponsors, fundless sponsors, family-owned businesses) and management teams to craft capital structures that enable them to pursue their business plans. Saratoga focuses on the lower end of the middle market, targeting US-based cash flow positive companies with annual revenues between $8 and $250 million and EBITDA in excess of $2 million.
The Company’s board is composed of the following independent directors.
Saratoga Investment Advisors, LLC is a New York-based investment management firm formed to focus on credit-driven strategies. It is the manager of Saratoga Investment Corp. and its $500 million Collateralized Loan Obligation (CLO) fund and is affiliated with Saratoga Partners, a middle-market private equity investment firm that has invested in 35 companies with an aggregate value of more than $3.7 billion. Saratoga Partners was founded in 1984 as a division of the New York investment firm Dillon, Read & Co., Inc. and has been an independent firm since its spinoff in 1998 after Dillon Read was acquired by Swiss Bank Corporation (a predecessor to UBS AG).
The professionals at Saratoga have spent their careers in the middle market, leading and managing all aspects of the capital investment process. The team is an experienced and entrepreneurial group that works together to find capital solutions for middle market businesses.
Saratoga’s name comes from the American Revolution. The battles waged at Saratoga are generally regarded as the turning point of the Revolutionary War. Saratoga seeks to be the “turning point” for its portfolio companies by marshalling its knowledge and capital to creatively and effectively close transactions.