Healthcare Asset-based Lending: Gemino Healthcare Finance

Business Overview

  • Gemino Senior Secured Healthcare LLC (“Gemino”) is a commercial finance company that specializes in making primarily secured, asset-based loans for small and mid-sized companies operating in the healthcare industry

  • Typically provides senior debt financing starting at $2mm primarily in the form of revolving lines of credit secured by accounts receivable

  • Core team averages 15 years of healthcare finance experience and has originated ~$1.6bn of financing commitments

  • Headquartered in Philadelphia, operates satellite business development offices in Atlanta, GA and Chicago, IL and employs ~20 professionals

Borrower Profile Characteristics

  • Small and mid-sized healthcare service providers across a wide range of industries including Hospitals, Skilled Nursing Facilities, Home Medical Equipment, Medical Laboratories, Surgery/Outpatient Care

  • 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, receivables-based underwriting

  • Collateral includes Medicare, Medicaid and private insurance accounts receivable

  • Floating rate

  • Fees, including upfront, unused, monitoring and float

  • Meaningful maintenance covenants

Financial & Portfolio Snapshot

As of June 30, 2018
Structure: Portfolio Company
(Pass-thru Entity)
Investment Portfolio: $111 million
# of Issuers: 29 Issuers
Average Position Size:  $3.8 million
% of Investments Secured: 100%
% of Investments Floating Rate Coupon: 100%
% Healthcare Exposure: 100%
Weighted Average Asset-level Yield:  10.7%