Saratoga Investment Corp. (SAR): History, Ownership, Mission, How It Works & Makes Money

Ever wondered how Saratoga Investment Corp. (SAR), a publicly traded specialty finance company, navigates the U.S. middle market? This article dives into the company's history, ownership structure, and mission, and explains how it operates and generates revenue. With assets under management of $960.1 million as of November 30, 2024, and a focus on customized financing solutions, Saratoga Investment aims to generate attractive risk-adjusted returns through current income and long-term capital appreciation. Intrigued to learn more about this business development company and its strategies for investing in change of ownership transactions, strategic acquisitions, and recapitalizations? Keep reading to uncover the details.

Saratoga Investment Corp. (SAR) History

Founding Timeline

Year established

The company was established in 2006.

Original location

The original location is not explicitly mentioned in the provided context.

Founding team members

While the specific names of the founding team members are not detailed in the provided context, it is known that Christian Oberbeck played a significant role as Chairman and CEO. He has been with the company since its inception in 2006.

Initial capital/funding

Details regarding the initial capital or funding at the company's establishment are not available in the provided context.

Evolution Milestones

Transformative Moments

• Strategic Shift to Lower Middle-Market: A significant transformative moment was the strategic decision to focus on lower middle-market companies. This shift allowed the company to specialize and cater to a specific segment, enhancing its expertise and market position.
• Emphasis on SBIC Investments: The increased focus on Small Business Investment Company (SBIC) investments marked another transformative moment. This emphasis allowed the company to leverage government-backed funding to support small businesses, enhancing its role in fostering economic growth.
• Leadership and Management Changes: The implementation of a new management team brought fresh perspectives and strategies, influencing the company's operational and investment decisions. The leadership of Christian Oberbeck as Chairman and CEO since inception has also provided stability and strategic direction.

For more insights into the company's guiding principles, explore: Mission Statement, Vision, & Core Values of Saratoga Investment Corp. (SAR).

Saratoga Investment Corp. (SAR) Ownership Structure

Saratoga Investment Corp. features a mix of institutional, retail, and insider ownership, influencing its governance and strategic direction.

Saratoga Investment Corp.'s Current Status

Saratoga Investment Corp. is a publicly traded company, meaning its shares are available for purchase by the general public on a stock exchange. As a business development company (BDC), it is subject to specific regulations and reporting requirements.

Saratoga Investment Corp.'s Ownership Breakdown

As of the latest available data from Saratoga Investment Corp.'s filings and financial news sources, the ownership structure is as follows:

Understanding the ownership composition of Saratoga Investment Corp. provides insights into the balance of power and potential influences on company policy. Institutional investors, with their significant holdings, often play a key role in shaping corporate decisions through voting rights and engagement with management. Retail investors collectively hold a substantial portion, and their sentiment can impact stock performance. Insider ownership aligns the interests of management with those of shareholders, fostering a focus on long-term value creation.

Saratoga Investment Corp.'s Leadership

The leadership team at Saratoga Investment Corp. is responsible for the strategic direction and day-to-day operations of the company. Key individuals include:

• Michael J. Grisius: President and Chief Executive Officer
• Thomas N. Saladino: Chairman of the Board
• Henri Steenkamp: Chief Financial Officer

These individuals, along with other members of the executive team, bring a wealth of experience in finance, investment management, and operations. Their leadership is crucial to Saratoga Investment Corp.'s ability to navigate the competitive landscape and deliver value to its shareholders.

For more in-depth information on Saratoga Investment Corp. and its investors, check out: Exploring Saratoga Investment Corp. (SAR) Investor Profile: Who’s Buying and Why?

Saratoga Investment Corp. (SAR) Mission and Values

Saratoga Investment Corp. is committed to providing flexible financing solutions to lower middle market companies, fostering growth, and delivering attractive returns to its shareholders. The company operates with a focus on integrity, transparency, and building long-term relationships with its portfolio companies.

Saratoga Investment Corp.'s Core Purpose

Official mission statement

Saratoga Investment Corp.'s mission is to:

• Invest in and grow lower middle market companies.
• Generate attractive returns for our shareholders by providing flexible financing solutions.
• Operate with integrity and transparency in all our dealings.

Vision statement

While a specific vision statement is not explicitly available, Saratoga Investment Corp.'s approach indicates a vision to:

• Be a leading provider of capital to the lower middle market.
• Create lasting partnerships with portfolio companies, supporting their long-term success.
• Deliver consistent and reliable returns to investors through disciplined investment strategies.

Company slogan/tagline

Saratoga Investment Corp. does not have a widely publicized official slogan or tagline. However, considering their investment approach, an unofficial tagline could be:

• 'Investing in Growth, Delivering Returns.'

To gain more insight into the financial health of Saratoga Investment Corp., explore Breaking Down Saratoga Investment Corp. (SAR) Financial Health: Key Insights for Investors.

Saratoga Investment Corp. (SAR) How It Works

Saratoga Investment Corp. operates as a specialty finance company, providing financing to middle-market companies, primarily through senior and unitranche debt, along with equity co-investments.

Saratoga Investment Corp.'s Product/Service Portfolio

Saratoga Investment Corp.'s Operational Framework

Saratoga Investment Corp. generates revenue primarily from interest income on its debt investments and capital gains from its equity investments. Their investment approach focuses on:

• Origination: Sourcing investment opportunities through a network of intermediaries, private equity sponsors, and directly with companies.
• Underwriting: Conducting due diligence to assess the creditworthiness and growth prospects of potential investments.
• Investment Structuring: Customizing financing solutions to meet the specific needs of each portfolio company.
• Portfolio Management: Actively monitoring investments and working with portfolio companies to enhance their value.

Additionally, Saratoga Investment Corp. manages CLOs, generating management fees and incentive income based on the performance of the CLO portfolios. As of the fiscal year 2024, Saratoga Investment Corp. had approximately $1.1 billion in assets under management.

Saratoga Investment Corp.'s Strategic Advantages

Saratoga Investment Corp.'s competitive advantages include:

• Experienced Management Team: A team with extensive experience in credit analysis, private equity, and operations.
• Disciplined Investment Approach: A focus on in-depth due diligence and conservative underwriting.
• Flexible Capital Base: The ability to provide a range of financing solutions, including debt and equity.
• CLO Management Platform: A platform that generates recurring fee income and enhances overall returns.

For further insights into Saratoga Investment Corp.'s financial performance, you might find this resource helpful: Breaking Down Saratoga Investment Corp. (SAR) Financial Health: Key Insights for Investors.

Saratoga Investment Corp. (SAR) How It Makes Money

Saratoga Investment Corp. primarily generates revenue by providing financing to middle-market companies, focusing on senior and unitranche debt, as well as equity investments.

Saratoga Investment Corp.'s Revenue Breakdown

As the latest data for the fiscal year 2024 is not fully available, the following table provides a general overview of Saratoga Investment Corp.'s revenue streams based on available information and typical operations of business development companies.

Saratoga Investment Corp.'s Business Economics

Saratoga Investment Corp.'s business economics are driven by:

• Interest Rate Spread: Earning a spread between the interest received from investments and the cost of borrowing.
• Investment Selection: Identifying and investing in middle-market companies with strong growth potential and stable cash flows.
• Active Management: Providing active support and guidance to portfolio companies to enhance their value.
• Capital Recycling: Reinvesting returns from successful exits into new opportunities.

Saratoga Investment Corp.'s Financial Performance

Key aspects of Saratoga Investment Corp.'s financial performance include:

• Net Investment Income (NII): A critical metric reflecting the company's profitability from its investment activities.
• Asset Quality: The credit quality and performance of its investment portfolio, influencing overall returns.
• Operating Efficiency: Managing operating expenses to maximize returns to shareholders.
• Leverage Ratio: Utilizing leverage to enhance returns while carefully managing associated risks.
• Distributions: Regular distributions to shareholders, reflecting the company's income generation and financial health.

Further insights into Saratoga Investment Corp.'s financial performance can be found here: Breaking Down Saratoga Investment Corp. (SAR) Financial Health: Key Insights for Investors

Saratoga Investment Corp. (SAR) Market Position & Future Outlook

Saratoga Investment Corp. is strategically positioned to capitalize on opportunities within the lower middle market, focusing on providing financing solutions to companies that often lack access to traditional capital markets. The company's future outlook appears stable, underpinned by its disciplined investment approach and proactive portfolio management.

Competitive Landscape

Opportunities & Challenges

Industry Position

Saratoga Investment Corp. operates as a business development company (BDC), a segment within the broader financial services industry. As of the fiscal year 2024, the company focuses primarily on:

• Providing senior and unitranche debt, as well as equity, to lower middle market companies.
• Generating current income and capital appreciation through its investments.
• Maintaining a diversified portfolio across various industries to mitigate risk.

For more insights into Saratoga Investment Corp.'s financial standing, explore: Breaking Down Saratoga Investment Corp. (SAR) Financial Health: Key Insights for Investors