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Portfolio | Investment Strategies | Non-Traditional ABL

  • Non-Traditional Asset-based Lending

    Business Overview

    • Acquired by Solar Capital in 2012, Crystal Financial LLC (“Crystal”) specializes in making secured loans to companies who typically cannot access traditional ABL and cash flow capital providers

    • The core team has been together since 1993 and has originated, underwritten and managed in excess of $20bn of new secured debt for its clients

    • Headquartered in Boston, Crystal operates a satellite BDO office in Atlanta, GA. The company employs ~20 individuals.

    Borrower Profile Characteristics

    • U.S. middle market companies across a diverse set of industries

    • Typically, companies are facing some form of stress or lack of available capital from traditional banks due to recent regulation

    Typical Transaction Profile

    • Senior secured, collateral-based underwriting

    • Lend at a discount to liquidation value of collateral

    • Floating rate

    • Meaningful upfront fees and prepayment penalties

    • Meaningful maintenance covenants

    Portfolio Snapshot(1)

    As of September 30, 2018
    Structure: Portfolio Company
    (Pass-thru Entity)
    Investment Portfolio: ~$588 million
    # of Issuers:  34
    Average Position Size:   ~$17 million
    % of Investments Secured: 100%
    % of Investments Floating: ~95% 
    Weighted Average Asset-level Yield:
    		 12.3%(2)
    Non-Traditional ABL Portfolio as % of ~$1.7 billion Comprehensive Investment Portfolio  34.6%
    (1) Includes Crystal Financial's full portfolio (and its ownership of its SBIC) and asset-based loans on the Company's balance sheet.
    (2) Represents the weighted average of each individual loan's underwritten yield to expected repayment date, which is based on a historical average realized investment duration.


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