Saratoga Investment Corp.

Saratoga Investment Corp. is a specialty finance company that offers tailored financing solutions to U.S. middle-market businesses. The company aims to achieve attractive risk-adjusted returns through current income and long-term capital appreciation from its investments. It primarily invests in senior and unitranche leveraged loans and mezzanine debt, and to a lesser extent, equity, issued by private U.S. middle-market companies. These are defined as companies with annual earnings before interest, taxes, depreciation, and amortization (EBITDA) between $2 million and $50 million. Investments are made through direct lending and participation in loan syndicates. Saratoga Investment Corp.'s financing typically supports change of ownership transactions, strategic acquisitions, recapitalizations, and growth initiatives, in collaboration with business owners, management teams, and financial sponsors. Saratoga Investment Advisors, LLC, a New York-based investment firm affiliated with Saratoga Partners, an investment firm focused on middle-market private equity, externally manages and advises the company's investment activities. The portfolio mainly consists of investments in leveraged loans issued by middle-market companies. Leveraged loans are generally senior debt instruments that rank ahead of subordinated debt, typically with below investment grade or "junk" ratings, or would be rated similarly if unrated. These loans carry a higher risk of default but benefit from security interests on the portfolio company's assets. The company also invests in mezzanine debt, which is typically unsecured and subordinated to senior debt, and makes equity investments in middle-market companies. While the primary focus is on generating current income and capital appreciation from debt and equity investments in middle-market companies, up to 30.0% of the portfolio may be allocated to opportunistic investments to enhance stockholder returns.