• Traditional Asset-Based Lending: North Mill Capital

    Business Overview

    • Strategic portfolio acquisition by Solar Senior Capital in 2017

    • North Mill Capital LLC (“NMC” or “North Mill”) is a leading asset-based lending commercial finance company that specializes in making senior secured asset-backed loans to small and medium-sized companies 

    • NMC was founded in 2010 by its senior management team who originally launched the strategy in 1995 and have worked together for more than 20 years across multiple organizations

    • Based in Princeton, NJ and currently has ~30 employees with BDO offices in Minneapolis, MN, Milwaukee, WI, Atlanta, GA, Chicago, IL, Newtown, CT and Needham, MA

    • Diversified portfolio with over 90 portfolio companies

    • 100% collateralized investment portfolio

    Borrower Profile Characteristics

    • Privately-owned, small to medium-sized businesses who have limited access to bank financing

    • Primarily US-based companies operating in the manufacturing, services and distribution industries

    • Borrowers typically have limited access to bank financing

    • NMC is typically the agent and sole lender to its borrowers

    Typical Transaction Profile

    • Size ranges from $500,000 to $10,000,000

    • Loan tenor is 1-to-3 years; average life of ~2.5 years

    • Financing structures primarily include asset-based loans (revolving) and factoring agreements (revolving)

    • Loans are collateralized on a first lien basis in all cases primarily by accounts receivable

    Financial & Portfolio Snapshot

    As of September 30, 2018
    Structure: Portfolio Company
    (Pass-thru Entity)
    Portfolio Size:  $146 million
    Number of Issuers: 89
    Average Position Size:  $1.6 million
    % of Investments Secured: 100%
    % of Investments Floating Rate Coupon: 76%
    Weighted Average Asset-level Yield: 12.7%
  • Portfolio Highlights
    Portfolio Composition
    Investment Strategies
         Cash Flow Lending
         Asset-Based Lending
              Healthcare Specialized ABL
              Traditional ABL