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Portfolio | Investment Strategies | Cash Flow Lending

  • 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
    • Customized financing solutions in collaboration with the sponsor and its issuer clients

    • Current focus on senior secured 1st lien loans 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 Characteristic

    • 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: $268 million
    # of Issuers:
    		 30 issuers
     Average Position Size: $8.6 million
    % of Investments
    Secured:     		100%
    % of Investments
    Floating:     		100%
    Weighted Average
    Asset-level Yield:     		6.6%(1)
    (1) Represents the weighted average of each individual loan's yield to maturity based on fair market value at 9/30/2020. 
    • Portfolio Highlights
    Portfolio Composition
    Investment Strategies
         Cash Flow Lending
         Asset-Based Lending
              Healthcare Specialized ABL
              Traditional ABL

     

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