STRATEGY OVERVIEW

We provide short-term, senior-secured, collateralized loans to small and mid-sized, non-sponsored businesses in the U.S. Our borrowers are going through a period of growth or transition and require flexible capital in order to achieve scale or growth milestones, but do not have access to efficient capital sources.

  • Originate collateralized loans of $10 to $30 million with low loan-to-values: primarily first-lien, short-duration and self-amortizing assets that are less correlated to macro events.
  • Loans are typically repaid in 12 to 36 months and can provide our borrowers speed and certainty of closing.
  • Favor complex deals and special situations that require expertise in a deeply underserved and less competitive lower middle market.
  • Private equity-style, deep fundamental analysis and due diligence that equally weighs downside protection with profit opportunity.
  • Evaluate borrowing companies through an operational prism and view opportunities and challenges through the eyes of the company CEO and senior management.
  • Take the time to fully understand the fundamentals of the business and identify value that other lenders fail to recognize.
  • Ensure each company is fundamentally strong before partnering with them—we must understand and believe in the sector and story for each investment.
  • In times of borrower underperformance, we work closely with management on turnaround, recovery or exit options.
  • By delivering growth financing to companies, borrowers are more willing to participate in unique deal structures that preserve their equity, while maximizing our returns.

TARGET PORTFOLIO COMPANY ATTRIBUTES

  • U.S.-based companies with annual revenues of less than $100 million and no controlling institutional investors
  • Asset-rich businesses with significant hard assets or recurring/contractual revenues
  • Strong management teams with conviction
  • Businesses with a specific growth event or inflection point
  • Niche focus and compelling value propositions
  • Companies looking for a capital partner than can execute effectively within a tight deadline