•  Cash Flow Lending

    Business Overview

    • Value-oriented fundamental credit underwriting approach to debt investments in private middle market companies with the objective to generate current income and preserve capital
    • Active coverage and deep relationships with the middle market financial sponsor community to generate proprietary investment opportunities
    • Customized financing solutions in collaboration with the sponsor and its issuer clients
    • Current focus on senior secured 1st lien, stretch 1st lien solutions to companies which generate significant cash flow, across a wide range of primarily non-cyclical industries
    • Platform scale with the ability to speak for loan sizes of $100M to $200M

    Borrower Profile Characteristics

    • Focus on high credit quality borrowers in the upper middle market
    • Revenues between $50M and $1.0B
    • EBITDA of $15M to $100M
    • Resilient cash flows through economic cycles
    • Ability to do direct “private equity-style” due diligence
    • Owned and supported by private equity sponsors
    • Primarily U.S. issuers

    Typical Transaction Profile

    • Leveraged buyouts, acquisitions, recapitalizations, general refinancing and growth capital

    • Solutions focus primarily on Senior secured, floating rate loans

    • Maintenance covenants

    • Meaningful equity cushion

    • Amortization and attractive cash flow sweeps


    Portfolio Snapshot

    As of September 30, 2020
    Investment Portfolio: ~$295 million
    # of Issuers:
    16 issuers
    Average Position Size: $18 million 
    % of Investments Secured:
    % of Investments Floating
    Weighted Average Asset-level Yield:
    Cash Flow Portfolio as a % of ~$1.5 billion Comprehensive Investment Portfolio  20%
    (1) Represents the weighted average of each individual loan's yield to maturity based on fair market value at 9/30/2020.