Solar Capital makes investments primarily in private U.S. middle market companies that are intended to generate interest and fee income from senior secured loans and subordinated debt. The income generated from these investments is passed through to shareholders in the form of quarterly distributions. In addition to its current yield, benefits to investing in SLRC include:
Access to an attractive, illiquid alternative investment strategy.
- While alternative investments have typically been geared towards institutions and high net worth individuals, Solar Capital’s liquid, publicly-traded stock enables a broader range of investors to gain exposure to the illiquid private direct lending asset class while also benefiting from increased diversification and the attributes of a closed-end publicly traded fund.
- Direct lending to middle market private companies provides an investment opportunity to capture an illiquidity premium and generate excess returns from a less efficient and illiquid private market as compared to the larger, more liquid syndicated high yield market.
- Commercial banking reforms and leveraged lending regulatory changes have created a long term attractive supply / demand dynamic that should continue to be viewed favorably by non-bank lenders, and in particular providers such as BDCs and private credit funds.
Experienced investment manager, aligned with investors through ~5.8% ownership of SLRC common stock.
- Solar Capital Partners has invested ~$9.4 billion in over 600 companies with over 200 financial sponsors for Solar Capital and Solar Senior Capital since inception.
- The investment professional team continues to be one of the largest shareholders through purchases of SLRC common stock alongside of our public shareholders.
- Solar Capital Partners is focused on capital preservation and long term value creation. The investment advisor is experienced in maximizing relative value through different economic and market cycles by managing, proactively, both Solar Capital's investment portfolio and its balance sheet in response to near term and long term investment opportunities.