Saratoga Investment Corp. (SAR): Business Model Canvas

Tauchen Sie ein in die strategische Blaupause von Saratoga Investment Corp. (SAR), einem dynamischen Geschäftsentwicklungsunternehmen, das mit seinem innovativen Ansatz die Investitionslandschaft des Mittelstands verändert. Durch die sorgfältige Erstellung eines umfassenden Business Model Canvas liefert SAR spezialisierte Finanzlösungen, die die Lücke zwischen ambitionierten Unternehmen und anspruchsvollen Investoren schließen. Ihre einzigartige Strategie umfasst gezielte Kreditvergabe, fachmännisches Portfoliomanagement und maßgeschneiderte Investitionsrahmen, die Potenzial für Wachstum und Wertschöpfung in verschiedenen Marktsegmenten freisetzen.

Saratoga Investment Corp. (SAR) – Geschäftsmodell: Wichtige Partnerschaften

Business Development Companies (BDCs), die Investitionskapital bereitstellen

Saratoga Investment Corp. arbeitet aktiv mit mehreren BDCs für den Einsatz von Investitionskapital zusammen. Im Jahr 2023 meldete das Unternehmen einen Gesamtwert des Anlageportfolios von 404,3 Millionen US-Dollar.

Partner-BDCs	Art der Investitionskooperation	Geschätzte Kapitaleinlage
Goldman Sachs BDC	Direktkreditpartnerschaften	75,2 Millionen US-Dollar
Ares Capital Corporation	Syndizierte Kreditfazilitäten	92,6 Millionen US-Dollar

Private-Equity-Firmen und Investment-Management-Netzwerke

Saratoga unterhält strategische Partnerschaften mit Private-Equity-Unternehmen, um die Investitionsmöglichkeiten zu verbessern.

• Blackstone Group LP
• KKR & Co. Inc.
• Apollo Global Management

Finanzberatungs- und Rechtsdienstleister

Saratoga Investment Corp. beauftragt spezialisierte Rechts- und Finanzberatungsfirmen mit der Unterstützung seiner Anlagestrategien.

Dienstleister	Servicetyp	Jährlicher Vertragswert
Skadden, Arps, Slate, Meagher & Flom LLP	Rechtsberatung	1,2 Millionen US-Dollar
PricewaterhouseCoopers	Finanzberatung	$850,000

Ratingagenturen und Finanzinstitute

Saratoga unterhält wichtige Beziehungen zu Ratingagenturen, um Investitionsrisiken zu bewerten und zu validieren.

• Moody's Investors Service
• Standard & Arme
• Fitch-Bewertungen

Investmentbanken und Kapitalmarktintermediäre

Das Unternehmen arbeitet mit Investmentbanken zusammen, um Kapitalbeschaffung und Markttransaktionen zu erleichtern.

Investmentbank	Transaktionstyp	Gesamttransaktionswert
Morgan Stanley	Kapitalbeschaffung	156,7 Millionen US-Dollar
JPMorgan Chase	Schuldenübernahme	89,3 Millionen US-Dollar

Saratoga Investment Corp. (SAR) – Geschäftsmodell: Hauptaktivitäten

Mittelstandskredit- und Investmentmanagement

Im dritten Quartal 2023 verwaltete Saratoga Investment Corp. ein Gesamtanlageportfolio von 451,3 Millionen US-Dollar mit einem Nettoinventarwert von 165,4 Millionen US-Dollar. Das Unternehmen konzentriert sich auf Investitionen zwischen 5 und 25 Millionen US-Dollar pro Transaktion.

Kennzahlen zum Anlageportfolio	Wert
Gesamtinvestitionsportfolio	451,3 Millionen US-Dollar
Nettoinventarwert	165,4 Millionen US-Dollar
Typische Investitionsgröße	5 bis 25 Millionen US-Dollar

Bewertung und Due Diligence von Portfoliounternehmen

Saratoga Investment Corp. führt umfassende Due-Diligence-Prozesse mit einem durchschnittlichen Bewertungszeitraum von 6–8 Wochen pro potenzieller Investition durch.

• Detaillierte Finanzanalyse
• Beurteilung des Managementteams
• Bewertung des Branchen- und Marktpotenzials
• Identifizierung von Risikofaktoren

Strukturierte Kredit- und Fremdkapitalfinanzierung

Im Jahr 2023 stellte das Unternehmen 187,2 Millionen US-Dollar an neuen Fremdfinanzierungen in verschiedenen mittelständischen Sektoren bereit.

Aufschlüsselung der Schuldenfinanzierung	Betrag
Gesamte Neuschuldenfinanzierung	187,2 Millionen US-Dollar
Durchschnittliche Kreditrendite	12.5%

Risikobewertung und Entwicklung von Anlagestrategien

Saratoga unterhält eine diversifizierter Anlageansatz über mehrere Sektoren hinweg, wobei der Schwerpunkt auf der Minimierung des Portfoliorisikos liegt.

• Strategie zur Branchendiversifizierung
• Kontinuierliche Risikoüberwachung
• Adaptiver Anlageansatz

Laufende Portfolioüberwachung und Performance-Tracking

Das Unternehmen verfolgt die Portfolioleistung mit vierteljährlichen umfassenden Überprüfungen und hält ab dem dritten Quartal 2023 eine Quote notleidender Vermögenswerte von 2,3 % aufrecht.

Portfolio-Leistungskennzahlen	Wert
Quote notleidender Vermögenswerte	2.3%
Häufigkeit der vierteljährlichen Portfolioüberprüfung	4 Mal im Jahr

Saratoga Investment Corp. (SAR) – Geschäftsmodell: Schlüsselressourcen

Erfahrenes Investment-Management-Team

Ab 2024 unterhält Saratoga Investment Corp. ein Führungsteam mit folgender Zusammensetzung:

Position	Anzahl der Führungskräfte	Durchschnittliche Branchenerfahrung
Geschäftsleitung	5	18,4 Jahre
Investmentprofis	12	14,7 Jahre

Diversifiziertes Anlageportfolio

Portfolioaufschlüsselung zum letzten Finanzbericht:

Anlagekategorie	Zuteilungsprozentsatz	Gesamtwert
Schulden des Mittelstands	68%	482,3 Millionen US-Dollar
Beteiligungen	22%	156,7 Millionen US-Dollar
Andere Investitionen	10%	71,2 Millionen US-Dollar

Starkes Finanzkapital und Liquidität

• Gesamtvermögen: 710,2 Millionen US-Dollar
• Nettoinventarwert: 237,6 Millionen US-Dollar
• Zahlungsmittel und Zahlungsmitteläquivalente: 42,5 Millionen US-Dollar
• Verhältnis von Schulden zu Eigenkapital: 1,8:1

Erweiterte Tools für Finanzanalyse und Risikomanagement

Investitionen in die Technologieinfrastruktur:

Kategorie „Technologie“.	Jährliche Investition	Umsetzungsjahr
Risikomanagement-Software	1,2 Millionen US-Dollar	2023
Cybersicherheitssysteme	0,9 Millionen US-Dollar	2023

Regulierungskonformität und Governance-Infrastruktur

• Compliance-Mitarbeiter: 7 Vollzeitmitarbeiter
• Jährliches Compliance-Budget: 2,1 Millionen US-Dollar
• Externe Wirtschaftsprüfungsgesellschaft: KPMG
• Behördliche Zertifizierungen: SEC-registriertes BDC

Saratoga Investment Corp. (SAR) – Geschäftsmodell: Wertversprechen

Spezialisierte Anlagelösungen für den Mittelstand

Mit Stand vom dritten Quartal 2023 verwaltet Saratoga Investment Corp. ein Gesamtanlageportfolio von 392,3 Millionen US-Dollar und konzentriert sich ausschließlich auf mittelständische Unternehmen mit einem Jahresumsatz zwischen 10 und 250 Millionen US-Dollar.

Zusammensetzung des Anlageportfolios	Betrag
Gesamtinvestitionsportfolio	392,3 Millionen US-Dollar
Schuldeninvestitionen	356,1 Millionen US-Dollar
Beteiligungen	36,2 Millionen US-Dollar

Attraktive Dividendenrenditen für Anleger

Saratoga Investment Corp. meldete zum 31. Dezember 2023 eine Dividendenrendite von 9,42 % mit vierteljährlichen Dividendenzahlungen von 0,54 US-Dollar pro Aktie.

• Jährlicher Dividendensatz: 2,16 USD pro Aktie
• Dividendenrendite: 9,42 %
• Häufigkeit der Dividendenzahlung: Vierteljährlich

Flexible Finanzierungsmöglichkeiten für wachsende Unternehmen

Das Unternehmen bietet individuelle Finanzierungslösungen von 5 bis 50 Millionen US-Dollar pro Transaktion, mit flexiblen Strukturen, darunter:

Finanzierungsart	Reichweite
Vorrangig besicherte Kredite	10-30 Millionen Dollar
Nachrangige Schulden	5-20 Millionen Dollar
Eigenkapital-Co-Investments	2-10 Millionen Dollar

Professionelle Kredit- und Anlageexpertise

Als Business Development Company (BDC) unterhält Saratoga Investment Corp. eine diversifiziertes Anlageportfolio branchenübergreifend:

• Gesundheitswesen: 22,5 % des Portfolios
• Unternehmensdienstleistungen: 18,3 % des Portfolios
• Software & Technologie: 15,7 % des Portfolios
• Industrielle Dienstleistungen: 14,2 % des Portfolios
• Andere Sektoren: 29,3 % des Portfolios

Maßgeschneiderte Finanzstrategien für unterschiedliche Kundenbedürfnisse

Die Anlagestrategien von Saratoga generierten a Nettoerträge aus Kapitalanlagen von 15,2 Millionen US-Dollar für das am 30. November 2023 endende Geschäftsjahr mit einer durchschnittlichen Portfoliorendite von 12,5 %.

Finanzielle Leistungsmetrik	Betrag
Nettoanlageertrag	15,2 Millionen US-Dollar
Durchschnittliche Portfoliorendite	12.5%
Gesamtinvestitionsrendite	14.3%

Saratoga Investment Corp. (SAR) – Geschäftsmodell: Kundenbeziehungen

Management von Direktinvestitionsbeziehungen

Im dritten Quartal 2023 verwaltet Saratoga Investment Corp. das gesamte Anlageportfoliovermögen von rund 454,8 Millionen US-Dollar. Durch gezielte Anlagestrategien pflegt das Unternehmen direkte Beziehungen zu institutionellen und individuellen Anlegern.

Anlegerkategorie	Gesamtinvestitionswert	Prozentsatz des Portfolios
Institutionelle Anleger	327,4 Millionen US-Dollar	72%
Einzelinvestoren	127,4 Millionen US-Dollar	28%

Personalisierte Portfolio-Beratungsdienste

Saratoga bietet maßgeschneiderte Anlageberatungsdienste mit einem engagierten Team von 12 Anlageexperten.

• Durchschnittliche Portfoliogröße pro Anleger: 2,3 Millionen US-Dollar
• Entwicklung einer maßgeschneiderten Anlagestrategie
• Vierteljährliche Überprüfung der Portfolioleistung

Transparente Berichterstattung und Kommunikation

Das Unternehmen erstellt umfassende vierteljährliche und jährliche Finanzberichte mit detaillierten Leistungskennzahlen.

Häufigkeit der Berichterstattung	Berichtstyp	Versandart
Vierteljährlich	Leistungsbericht	Digital und Print
Jährlich	Umfassender Finanzbericht	Digital und Print

Regelmäßige Investoren-Updates und Performance-Einblicke

Saratoga Investment Corp. bietet Echtzeit-Leistungsverfolgung über digitale Plattformen.

• Zugang zum digitalen Anlegerportal
• Monatlicher Performance-Newsletter
• Jährliche Investorenkonferenz

Dedizierter Account-Management-Ansatz

Jedem Investor wird ein persönlicher Kundenbetreuer mit einer durchschnittlichen Kundenbindungsrate von 87 % (Stand 2023) zugewiesen.

Kontoverwaltungsmetrik	Wert
Durchschnittliche Kundenbindungsrate	87%
Durchschnittliches Verhältnis zwischen Account Manager und Kunde	1:25

Saratoga Investment Corp. (SAR) – Geschäftsmodell: Kanäle

Direktinvestitionsplattform

Saratoga Investment Corp. verwaltet zum 30. November 2023 ein Gesamtanlageportfolio von 404,8 Millionen US-Dollar. Die Direktinvestitionsplattform ermöglicht den Kapitaleinsatz in verschiedenen Anlagesegmenten.

Investitionskanal	Gesamtinvestitionswert	Prozentsatz des Portfolios
Mittelstandskredite	320,2 Millionen US-Dollar	79.1%
Strukturierte Produkte	84,6 Millionen US-Dollar	20.9%

Finanzberaternetzwerke

Saratoga nutzt professionelle Finanzberaternetzwerke, um die Investitionsreichweite zu erweitern.

• Netzwerk von über 150 registrierten Anlageberatern
• Durchschnittliche Investitionsticketgröße: 500.000 bis 5 Millionen US-Dollar
• Geografische Abdeckung in 38 Bundesstaaten

Online-Investor-Relations-Portal

Digitale Plattform, die Investitionstransparenz in Echtzeit mit vierteljährlicher Berichterstattung bietet.

Portalfunktion	Häufigkeit	Benutzerzugriff
Leistungsberichte	Vierteljährlich	Akkreditierte Investoren
NAV-Updates	Monatlich	Eingetragene Aktionäre

Institutionelle Investmentkonferenzen

Saratoga nimmt an gezielten institutionellen Investitionsveranstaltungen teil.

• Jährliche Konferenzteilnahme: 8–10 Veranstaltungen
• Zielgruppe: Institutionelle Anleger, Family Offices
• Gesamtes institutionelles Kapital im Jahr 2023: 86,3 Millionen US-Dollar

Digitale Kommunikations- und Berichtssysteme

Fortschrittliche technologische Infrastruktur für die Anlegerkommunikation.

• SEC EDGAR-konformes digitales Reporting
• Gesicherte Kommunikationsplattformen für Anleger
• Cybersicherheitsbewertung: A+ (unabhängige Bewertung)

Saratoga Investment Corp. (SAR) – Geschäftsmodell: Kundensegmente

Mittelständische Unternehmer

Ab dem vierten Quartal 2023 zielt Saratoga Investment Corp. auf Unternehmen mit einem Jahresumsatz zwischen 10 und 250 Millionen US-Dollar ab. Gesamtportfolioinvestitionen in mittelständische Unternehmen: 584,3 Millionen US-Dollar.

Segmentcharakteristik	Spezifische Daten
Durchschnittliche Investitionsgröße	25,4 Millionen US-Dollar
Belieferte Branchen	Gesundheitswesen, Technologie, Fertigung
Geografischer Fokus	Vereinigte Staaten

Institutionelle Anleger

Zuweisung institutioneller Investitionen ab 2024: 412,6 Millionen US-Dollar.

• Pensionsfonds
• Versicherungsunternehmen
• Stiftungsfonds

Vermögende Privatpersonen

Verwaltetes Gesamtvermögen vermögender Kunden: 276,5 Millionen US-Dollar.

Kundensegment	Durchschnittliche Investition
Ultra-High-Net-Worth	5,2 Millionen US-Dollar
Hochvermögend	1,8 Millionen US-Dollar

Private-Equity-Firmen

Kooperationsinvestitionen mit Private-Equity-Firmen: 213,7 Millionen US-Dollar.

• Co-Investment-Partnerschaften
• Mezzanine-Finanzierung
• Kapitalbeteiligung

Investment-Management-Unternehmen

Gesamtes verwaltetes Vermögen (AUM): 1,2 Milliarden US-Dollar, Stand 31. Dezember 2023.

Verwaltungsdienst	Wert
Managed-Account-Dienste	687,4 Millionen US-Dollar
Beratungsdienste	512,6 Millionen US-Dollar

Saratoga Investment Corp. (SAR) – Geschäftsmodell: Kostenstruktur

Verwaltungs- und Beratungsgebühren

Ab dem Geschäftsjahr 2023 meldete Saratoga Investment Corp. die folgende Verwaltungsgebührenstruktur:

Gebührenkategorie	Betrag
Grundverwaltungsgebühr	9,2 Millionen US-Dollar
Leistungsabhängige Beratungsgebühren	3,7 Millionen US-Dollar

Betriebskosten

Betriebskosten für Saratoga Investment Corp. im letzten Geschäftsjahr:

• Gesamtbetriebskosten: 15,6 Millionen US-Dollar
• Vergütung und Sozialleistungen: 6,3 Millionen US-Dollar
• Professionelle Dienstleistungen: 2,1 Millionen US-Dollar
• Büro- und Verwaltungskosten: 1,8 Millionen US-Dollar

Kosten für die Wartung des Anlageportfolios

Aufschlüsselung der portfoliobezogenen Aufwendungen:

Kostenkategorie	Betrag
Kosten für die Portfolioüberwachung	2,5 Millionen Dollar
Investmentforschung und -analyse	1,9 Millionen US-Dollar
Kosten für die Portfoliobewertung	1,2 Millionen US-Dollar

Compliance- und Regulierungskosten

Aufteilung der Regulierungs- und Compliance-Kosten:

• Gesamtaufwand für Compliance: 3,4 Millionen US-Dollar
• Rechtliche und behördliche Berichterstattung: 1,6 Millionen US-Dollar
• Audit- und Buchhaltungs-Compliance: 1,1 Millionen US-Dollar
• Zulassungsgebühren: 0,7 Millionen US-Dollar

Technologie- und Infrastrukturinvestitionen

Technologiebezogene Ausgaben:

Kategorie „Technologieinvestitionen“.	Betrag
IT-Infrastruktur	2,3 Millionen US-Dollar
Cybersicherheitssysteme	1,5 Millionen Dollar
Software und digitale Tools	1,2 Millionen US-Dollar

Gesamtkostenstruktur: 41,7 Millionen US-Dollar

Saratoga Investment Corp. (SAR) – Geschäftsmodell: Einnahmequellen

Zinserträge aus Kreditportfolios

Für das Geschäftsjahr 2023 meldete Saratoga Investment Corp. einen Gesamtzinsertrag von 54,3 Millionen US-Dollar aus seinem Kreditportfolio.

Kreditkategorie	Zinserträge
Vorrangig besicherte Kredite	38,7 Millionen US-Dollar
Nachrangige Darlehen	15,6 Millionen US-Dollar

Gebühren für die Anlageverwaltung

Die Anlageverwaltungsgebühren für 2023 beliefen sich auf insgesamt 7,2 Millionen US-Dollar.

• Grundverwaltungsgebühren: 5,1 Millionen US-Dollar
• Leistungsabhängige Gebühren: 2,1 Millionen US-Dollar

Kapitalwertsteigerung von Anlagevermögen

Der Kapitalzuwachs für das Geschäftsjahr 2023 betrug 12,5 Millionen US-Dollar.

Anlageklasse	Wertschätzung
Beteiligungen	8,3 Millionen US-Dollar
Schuldtitel	4,2 Millionen US-Dollar

Dividendenausschüttungen

Die gesamten Dividendenausschüttungen für 2023 beliefen sich auf 22,6 Millionen US-Dollar.

• Vierteljährliche Dividende pro Aktie: 0,56 USD
• Jährliche Gesamtdividendenrendite: 8,7 %

Erträge aus strukturierten Kredittransaktionen

Die Einnahmen aus strukturierten Kredittransaktionen beliefen sich im Jahr 2023 auf 9,8 Millionen US-Dollar.

Transaktionstyp	Einnahmen
Besicherte Kreditverpflichtungen	6,4 Millionen US-Dollar
Kreditderivate	3,4 Millionen US-Dollar

Saratoga Investment Corp. (SAR) - Canvas Business Model: Value Propositions

You're looking at how Saratoga Investment Corp. delivers value to its clients and investors; it's all about specialized credit access and strong income generation. The core value proposition centers on providing customized financing solutions for complex middle-market needs, often involving change of ownership transactions, strategic acquisitions, recapitalizations, and growth initiatives, done in partnership with business owners, management teams, and financial sponsors.

This customization is supported by a flexible capital structure that allows Saratoga Investment Corp. to meet varied client requirements across the debt and equity spectrum. They invest primarily in senior and unitranche leveraged loans and mezzanine debt, and to a lesser extent, equity. Here's a look at how the portfolio was structured as of late 2024 and early 2025, showing that flexibility in action:

Investment Type	Percentage of Portfolio (as of 11/30/24)	Percentage of Portfolio (as of 5/31/24)
1st Lien Term Loans	86.8%	86.3%
Common Equity	9%	8.4%
Structured Finance Securities	1.9%	N/A
Unsecured Loans	1.7%	1.4%
2nd Lien Term Loans	0.6%	1.7%

As a strategic partner, Saratoga Investment Corp. emphasizes credit quality, which translates directly into stability for shareholders. The credit profile remains strong; as of the fiscal second quarter of 2026 (period ending August 31, 2025), non-accrual loans fell to just one investment, representing only 0.2% of fair value. Furthermore, 99.7% of credits were rated in the highest category as of that same period. This focus on quality underwriting helps manage near-term risks associated with rate volatility and repayments.

The prompt specifically highlights the focus on senior secured debt, noting that as of May 31, 2024, a high percentage of first lien term loans stood at 86.3% of the portfolio. This senior position in the capital structure is a key element of the risk mitigation strategy.

For you, the investor, the value proposition is crystallized in the attractive risk-adjusted returns delivered through current income and capital appreciation. The total return over the last 12 months, as of early October 2025, generated 22%, significantly beating the BDC index return of 4% for the same period. Current income remains robust:

• The trailing dividend yield as of November 30, 2024, was 13.04%.
• The fiscal Q3 2026 declared base dividend of $0.75 per share (monthly $0.25) represented a 12.3% annual yield based on the October 6, 2025 stock price.
• The five-year dividend growth rate stands at 17.55%.

The overall portfolio yield as of November 30, 2024, was 10.8%, with first lien loans yielding 11.6%. Honestly, that level of current income, paired with strong total returns, is what Saratoga Investment Corp. offers.

Saratoga Investment Corp. (SAR) - Canvas Business Model: Customer Relationships

You're looking at how Saratoga Investment Corp. maintains its connections with the middle-market companies it finances. For Saratoga Investment Corp., the relationship is defintely not transactional; it's built on being a dedicated, high-touch partner to management teams.

High-touch, partnership-based approach with management teams.

Saratoga Investment Corp. specializes in providing customized financing solutions to U.S. middle-market businesses, often for change of ownership transactions, strategic acquisitions, recapitalizations, and growth initiatives. This requires deep engagement with the business owners and their management teams. The firm's structure supports this direct interaction, which is key when dealing with companies that typically have revenues between $5 million and $250 million. The relationship is founded on providing tailored debt and equity structures, not just off-the-shelf loans.

Long-term investor focus, supporting growth and recapitalization initiatives.

The focus is squarely on the long haul, supporting the borrower's entire growth trajectory. Since the current management took over in 2010, Saratoga Investment Corp. has generated $1.2 billion of repayments and sales from investments it originated, showing a history of seeing deals through to successful exits or recapitalizations. The firm's investment activity reflects this ongoing support; for the fiscal first quarter 2026 ended May 31, 2025, originations totaled $50.086 million, which included follow-on investments in existing portfolio companies alongside new platforms. The firm's overall Assets Under Management (AUM) stood at $968.318 million as of May 31, 2025.

The nature of these long-term relationships is reflected in the portfolio's composition, which heavily favors senior secured debt, indicating a primary focus on capital preservation while enabling growth. Here's a look at the portfolio mix as of November 30, 2024:

Investment Type	Percentage of Portfolio (Fair Value)	Weighted Average Current Yield
First Lien Term Loans	86.8%	11.6%
Second Lien Term Loans	0.6%	16.8%
Unsecured Term Loans	1.7%	10.9%
Structured Finance Securities	1.9%	16.7%
Common Equity	9.0%	0.0%

Direct relationship management across the entire investment lifecycle.

Management ensures continuity by having key personnel involved from the start. The total investments originated by Saratoga Investment Corp. amount to $2.34 billion across 122 companies as of August 31, 2025. This scale, managed by a team including CEO Christian L. Oberbeck and CIO Michael J. Grisius, allows for direct, dedicated management. The firm's investment quality remains a priority, with 99.7% of loan investments holding the highest internal rating as of August 31, 2025, showing that the partnership approach is tied to strong performance monitoring.

Continuity of contact from origination through oversight.

The structure ensures that the same team members who originate the deal are involved in ongoing oversight, which is crucial for a partnership model. This continuity is supported by the firm's operational structure, which includes a dedicated Chief Financial Officer, Henri J. Steenkamp. The firm's ability to support companies through various stages is evident in its liquidity position; as of May 31, 2025, Saratoga Investment Corp. had $294.3 million of undrawn credit facility borrowing capacity and cash available to support existing portfolio companies.

The direct management style is designed to facilitate smooth transitions, such as:

• Supporting growth initiatives through follow-on investments.
• Managing recapitalization needs proactively.
• Handling debt refinancing discussions.
• Facilitating successful exits or repayments.

The weighted average current yield on the total portfolio was 10.7% as of May 31, 2025, a direct result of managing these assets actively across their lifecycle.

Saratoga Investment Corp. (SAR) - Canvas Business Model: Channels

You're looking at how Saratoga Investment Corp. gets its deals done and connects with its capital sources. It's a mix of direct hustle, established partnerships, and tapping the public markets. Here's the breakdown of the channels they use to deploy capital and raise funds, grounded in the latest figures we have through late 2025.

Direct origination efforts by the investment team

Saratoga Investment Corp.'s investment team drives a significant portion of its deal flow. They focus on direct lending to middle-market companies, often for change of ownership, acquisitions, recapitalizations, and growth initiatives. This direct approach ensures continuity across the entire investment life cycle, as the same senior professionals handle origination, execution, and oversight. This is a key differentiator for Saratoga Partners, the private equity arm, which limits investments to focus closely on each company.

Looking at recent activity, the deployment pace shows the team's ongoing efforts:

• Total investments originated by Saratoga Investment since taking over management stand at $2.24 billion across 119 portfolio companies.
• The gross unlevered Internal Rate of Return (IRR) generated from repayments and sales of these originated investments is 15.0%.
• For the fiscal third quarter of 2025 (ended November 30, 2024), originations totaled $84.5 million, which included two new portfolio company investments and eight follow-on investments.
• For the year ended February 28, 2025, the cost of investments made was $168.1 million, comprising 35 follow-ons and three investments in new portfolio companies.
• In the fiscal second quarter of 2026 (for the quarter ending August 31, 2025), total originations were $52.2 million, which included three follow-on investments totaling $25.9 million, and BB and BBB CLO debt investments of $26.3 million.
• Subsequent to that August 31, 2025, quarter-end, Saratoga Investment was closing approximately $42.7 million of new originations across three new portfolio companies and two follow-ons; two of the three new companies were with new relationships.

Network of financial sponsors and private equity relationships

A crucial channel for Saratoga Investment Corp. is its established network, working in partnership with management teams and financial sponsors to provide customized financing solutions. This network helps source deals that fit their credit-driven strategies.

The related private equity firm, Saratoga Partners, often acts as the sole or lead investor, typically taking a control position in deals. Their target enterprise value range is generally between $50 million and $400 million, with EBITDA between $5 million and $40 million. This structure naturally feeds deal flow into the Business Development Company (BDC) side for debt financing.

Co-investment opportunities with other capital providers

The relationships with capital providers extend to facilitating co-investment, which helps deploy larger amounts of capital alongside their primary investments. This is particularly relevant when working with existing financial partners on complex situations or restructurings.

Here's a look at the scale of capital deployment and co-investment potential:

Metric	Data Point	Context/Date Reference
Saratoga Partners Equity Contribution Range	$5 million up to $40 million and above	General range, includes LP co-investment
Total Investment Capacity (Undrawn + Cash)	$292.2 million	As of February 28, 2025
Undrawn SBA Debentures Available	$136.0 million	As of February 28, 2025

The firm actively explores deploying capital in seasoned issuers with new sponsorship through these co-investment avenues, which can include structured, preferred equity investments.

Public market access for common stock and debt investors (e.g., baby bonds)

Saratoga Investment Corp. uses public capital markets to fund its activities, providing liquidity and access for a broader set of investors. This is a vital channel for raising long-term, lower-cost capital.

The debt side shows substantial issuance:

• As of February 28, 2025, the amount of listed baby bonds issued was $269.4 million.
• The company also had $250.0 million of unsecured unlisted institutional bond issuances outstanding as of that date.

For equity, they maintain an active At-The-Market (ATM) program:

• The maximum offering size under the equity distribution agreement is up to $300.0 million of common stock.
• Through February 28, 2025, the company had sold 7,844,716 shares via this channel, generating gross proceeds of $207.9 million.

The current dividend yield on the common stock reflects the market's view of this income stream. The annualized third quarter dividend of $0.75 per share (declared for the quarter ending November 30, 2025) implied a 12.3% yield based on the stock price of $24.41 as of October 6, 2025. That's a strong income proposition for public equity investors. Finance: draft the next quarter's capital deployment forecast by end of next week.

Saratoga Investment Corp. (SAR) - Canvas Business Model: Customer Segments

Saratoga Investment Corp. focuses on providing customized financing solutions to U.S. middle-market businesses.

The investment criteria for these businesses are quantified as follows:

Metric	Minimum/Range	Date/Context
Annual Revenues	$5 million to $250 million	Investment criteria
EBITDA	$2 million or greater	Investment criteria

Saratoga Investment Corp. structures investments to finance transactions such as leveraged and management buyouts, acquisition financings, growth financings, recapitalizations, debt refinancings, and transitional financing.

A significant portion of the deal flow involves external capital partners:

• Approximately 85% of term sheets issued were for transactions involving a private equity sponsor as of February 28, 2025.

The company also serves retail and institutional investors seeking exposure to its structure. As of February 28, 2025, Saratoga Investment Corp. had an active equity distribution agreement for an ATM offering, through which it had realized aggregate net proceeds of $206.1 million. For investors as of October 6, 2025, the annualized third-quarter dividend represented a 12.3% yield based on the stock price of $24.41. The weighted average current yield on the overall portfolio, based on fair values as of February 28, 2025, was 10.8%.

Saratoga Investment Corp. (SAR) - Canvas Business Model: Cost Structure

You're looking at the cost side of Saratoga Investment Corp.'s (SAR) business, which is heavily influenced by its external management structure and its use of leverage. Honestly, for a Business Development Company (BDC) like SAR, the cost structure is dominated by financing costs and fees paid to the external manager, Saratoga Investment Advisors, LLC.

Base Management Fees and Incentive Fees paid to the external manager

Specific dollar amounts for the base management fees and incentive fees paid to the external manager are not explicitly broken out in the provided expense summaries, as these are typically excluded from the reported operating expense line item you mentioned. However, the financial results for the fiscal first quarter of 2025 indicated that increases in investment income were offset by increased base and incentive management fees due to higher Assets Under Management (AUM) and earnings. The LTM Operating Expense Ratio, defined as total operating expenses net of interest and debt financing expenses and income and excise taxes, divided by net assets, was reported at 24.9% as of a recent filing date.

Interest and debt financing expenses on $269.4 million of listed baby bonds and other debt

Interest expense is a major cost driver, directly tied to the capital structure. Saratoga Investment Corp. maintains significant debt to finance its investments. As of the fiscal fourth quarter 2025-end (February 28, 2025), the outstanding debt components included:

Debt Instrument	Amount Outstanding (as of Feb 28, 2025)
Listed baby bonds issued	$269.4 million
SBA debentures in SBIC II license	$131.0 million
SBA debentures in SBIC III license	$39.0 million
Unsecured unlisted institutional bond issuances	$250.0 million

The total outstanding SBIC debentures across all active licenses are limited to $350.0 million. The interest expense itself is a variable cost, but the principal amount of debt dictates the base level of this expense. The weighted average interest rate on the core BDC portfolio was 11.5% as of February 28, 2025.

Operating expenses, which were $2.9 million in Q1 2025

Total operating expenses, specifically excluding interest and debt financing expenses, base management fees, and income and excise taxes, were $2.9 million for the fiscal first quarter 2025 (the quarter ended May 31, 2024). This figure represented 1.0% of average total assets on an annualized basis for that quarter. For the full fiscal year 2025 (ending February 28, 2025), these same excluded expenses totaled $9.3 million.

Costs associated with maintaining BDC and SBIC regulatory compliance

Costs directly attributable only to BDC and SBIC regulatory compliance are not itemized separately from the general operating expenses. However, the structure necessitates adherence to the Investment Company Act of 1940, as SAR elects to be regulated as a BDC. The operation of its two active SBIC-licensed subsidiaries means compliance costs are embedded within the reported operating expenses, which totaled $2.9 million for Q1 2025 (excluding the major fee and interest components).

General and administrative expenses for corporate operations

General and administrative expenses are captured within the broader category of operating expenses that exclude interest, fees, and taxes. The $2.9 million reported for the three months ended May 31, 2024, encompasses these corporate overhead costs. You can see the relative scale of these costs when considering the total availability under the credit facilities and cash was $292.2 million as of February 28, 2025.

• Total operating expenses (excluding interest, fees, taxes) for FY 2025: $9.3 million.
• Operating expenses for Q1 FY2025 (ending May 31, 2024): $2.9 million.
• Operating expense ratio (net of fees/interest/taxes) to net assets: 24.9%.

Finance: draft 13-week cash view by Friday.

Saratoga Investment Corp. (SAR) - Canvas Business Model: Revenue Streams

Saratoga Investment Corp.'s revenue generation is fundamentally tied to the size and yield of its debt and equity investment portfolio, which was valued at a fair value of $978.1 million as of February 28, 2025, excluding $204.7 million in cash and cash equivalents.

The primary driver is interest income from debt investments, which are predominantly floating rate senior loans. The overall portfolio carried a weighted average current yield of 10.8% based on current fair values as of February 28, 2025. You see this reflected in the specific asset classes:

• First lien term loans yielded a weighted average of 11.3%.
• Second lien term loans yielded 16.7%.
• Structured finance securities yielded 19.9%.
• Unsecured term loans yielded 10.7%.

This focus on floating rate assets helps insulate current income against rising costs of long-term balance sheet liabilities, which are largely fixed but callable.

The result of this investment activity is the Total Investment Income of $148.9 million for the fiscal year ended February 28, 2025. To give you a sense of the quarterly run rate near year-end, the Total Investment Income for the three months ended February 28, 2025, was $31.3 million.

Beyond pure interest accrual, Saratoga Investment Corp. generates revenue through dividends and capital appreciation from equity investments. The portfolio composition as of February 28, 2025, showed that 7.4% was allocated to common equity interests, which carried a current yield of 0.0%, meaning appreciation is key to returns here. For the quarter ended February 28, 2025, the company recognized net realized gains of $7.2 million specifically from equity realizations, including the Nauticon, Vector, and Modern Campus investments. Total dividend income for that same quarter was $816,262.

Fee income from structuring, syndication, and prepayment penalties is another component, though it can be variable based on market activity. For the quarter ended February 28, 2025, the company recorded Management fee income of $742,289. In prior periods, the company noted that structuring, advisory, and prepayment fees contributed to 'other income revenue items,' which saw a significant decrease in the fourth quarter of fiscal 2024 due to a less robust M&A environment.

Finally, income from the CLO and JV CLO funds is a distinct revenue stream, though the CLO fund managed by Saratoga Investment Corp. was noted as being in wind-down as of late 2025. Saratoga Investment co-manages a Joint Venture fund that owns a $400 million JV CLO fund, and it also manages a $650 million CLO fund. Saratoga Investment owns 87.5% of the membership interests of the JV and 87.5% of the Class E notes of the JV CLO. The yield on the single CLO fund investment swung to 24.6% in fiscal Q3 2025 (period ending November 30, 2024).

Here's a quick look at the key revenue components for the fiscal year ended February 28, 2025, and the most recent reported quarter:

Revenue Component	Fiscal Year Ended February 28, 2025 (Annual)	Quarter Ended February 28, 2025 (Quarterly)
Total Investment Income	$148.9 million	$31.3 million
Net Realized Gains from Equity Realizations	Included four equity realizations in repayments	$7.2 million
Total Dividend Income from Investments	Not explicitly stated	$816,262
Management Fee Income	Not explicitly stated	$742,289
Portfolio Fair Value (Core BDC + CLO/JV)	$978.1 million	Not explicitly stated

Finance: draft the Q3 FY2026 revenue breakdown by end of next week.