Saratoga Investment Corp. (SAR): Lienzo del Modelo de Negocio [Actualizado en Ene-2025]

Sumérgete en el plan estratégico de Saratoga Investment Corp. (SAR), una compañía dinámica de desarrollo de negocios que transforma los paisajes de inversión del mercado medio con su enfoque innovador. Al crear meticulosamente un lienzo de modelo de negocio integral, SAR ofrece soluciones financieras especializadas que cerrarán la brecha entre las ambiciosas empresas y los inversores sofisticados. Su estrategia única abarca préstamos específicos, gestión de cartera de expertos y marcos de inversión personalizados que desbloquean el potencial de crecimiento y creación de valor en diversos segmentos de mercado.

Saratoga Investment Corp. (SAR) - Modelo de negocios: asociaciones clave

Empresas de desarrollo de negocios (BDC) que proporciona capital de inversión

Saratoga Investment Corp. colabora activamente con múltiples BDC para el despliegue de capital de inversión. A partir de 2023, la compañía reportó $ 404.3 millones en valor total de la cartera de inversiones.

Socio BDCS	Tipo de colaboración de inversión	Contribución de capital estimada
Goldman Sachs BDC	Asociaciones de préstamos directos	$ 75.2 millones
Ares Capital Corporation	Facilidades de crédito sindicadas	$ 92.6 millones

Empresas de capital privado y redes de gestión de inversiones

Saratoga mantiene asociaciones estratégicas con empresas de capital privado para mejorar las oportunidades de inversión.

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

Proveedores de asesoramiento financiero y servicios legales

Saratoga Investment Corp. involucra a empresas de asesoramiento legal y financiero especializados para apoyar sus estrategias de inversión.

Proveedor de servicios	Tipo de servicio	Valor anual del contrato
Skadden, Arps, Slate, Meagher & Flom LLP	Aviso legal	$ 1.2 millones
PricewaterhouseCoopers	Consultoría financiera	$850,000

Agencias de calificación crediticia e instituciones financieras

Saratoga mantiene relaciones críticas con agencias de calificación crediticia para evaluar y validar los riesgos de inversión.

• Servicio de inversores de Moody's
• Estándar & Pobre
• Calificaciones de fitch

Bancos de inversión e intermediarios del mercado de capitales

La compañía colabora con los bancos de inversión para facilitar el aumento de capital y las transacciones de mercado.

Banco de inversiones	Tipo de transacción	Valor de transacción total
Morgan Stanley	Recaudación de capital	$ 156.7 millones
JPMorgan Chase	Suscripción de deuda	$ 89.3 millones

Saratoga Investment Corp. (SAR) - Modelo de negocio: actividades clave

Gestión de préstamos e inversiones del mercado medio

A partir del tercer trimestre de 2023, Saratoga Investment Corp. manejó una cartera de inversión total de $ 451.3 millones, con un valor de activo neto de $ 165.4 millones. La compañía se centra en inversiones que van desde $ 5 millones a $ 25 millones por transacción.

Métricas de cartera de inversiones	Valor
Cartera de inversiones totales	$ 451.3 millones
Valor de activo neto	$ 165.4 millones
Tamaño de inversión típico	$ 5- $ 25 millones

Evaluación de la empresa de cartera y diligencia debida

Saratoga Investment Corp. lleva a cabo procesos integrales de diligencia debida, con un período de evaluación promedio de 6-8 semanas por inversión potencial.

• Análisis financiero detallado
• Evaluación del equipo de gestión
• Evaluación potencial de la industria y del mercado
• Identificación del factor de riesgo

Financiación estructurada de crédito y deuda

En 2023, la compañía desplegó $ 187.2 millones en financiamiento de nuevos deudas en varios sectores de mercado medio.

Desglose de financiamiento de la deuda	Cantidad
Total de financiamiento de la deuda nueva	$ 187.2 millones
Rendimiento promedio de préstamo	12.5%

Evaluación de riesgos y desarrollo de estrategias de inversión

Saratoga mantiene un Enfoque de inversión diversificado En múltiples sectores, con un enfoque en minimizar el riesgo de cartera.

• Estrategia de diversificación del sector
• Monitoreo de riesgos continuos
• Enfoque de inversión adaptativa

Monitoreo de cartera en curso y seguimiento de rendimiento

La compañía rastrea el rendimiento de la cartera con revisiones integrales trimestrales, manteniendo una relación activo no realizada de 2.3% a partir del tercer trimestre de 2023.

Métricas de rendimiento de la cartera	Valor
Relación de activos no realizado	2.3%
Frecuencia de revisión de cartera trimestral	4 veces al año

Saratoga Investment Corp. (SAR) - Modelo de negocio: recursos clave

Equipo experimentado de gestión de inversiones

A partir de 2024, Saratoga Investment Corp. mantiene un equipo de liderazgo con la siguiente composición:

Posición	Número de ejecutivos	Experiencia de la industria promedio
Alta gerencia	5	18.4 años
Profesionales de la inversión	12	14.7 años

Cartera de inversiones diversificada

Desglose de la cartera a partir de la última información financiera:

Categoría de inversión	Porcentaje de asignación	Valor total
Deuda del mercado medio	68%	$ 482.3 millones
Inversiones de renta variable	22%	$ 156.7 millones
Otras inversiones	10%	$ 71.2 millones

Fuerte capital financiero y liquidez

• Activos totales: $ 710.2 millones
• Valor de activos netos: $ 237.6 millones
• Equivalentes en efectivo y efectivo: $ 42.5 millones
• Relación de deuda / capital: 1.8: 1

Análisis financiero avanzado y herramientas de gestión de riesgos

Inversiones de infraestructura tecnológica:

Categoría de tecnología	Inversión anual	Año de implementación
Software de gestión de riesgos	$ 1.2 millones	2023
Sistemas de ciberseguridad	$ 0.9 millones	2023

Cumplimiento regulatorio e infraestructura de gobernanza

• Personal de cumplimiento: 7 profesionales a tiempo completo
• Presupuesto de cumplimiento anual: $ 2.1 millones
• Firma de auditoría externa: KPMG
• Certificaciones regulatorias: BDC registrado en la SEC

Saratoga Investment Corp. (SAR) - Modelo de negocio: propuestas de valor

Soluciones especializadas de inversión en el mercado medio

A partir del tercer trimestre de 2023, Saratoga Investment Corp. administra una cartera de inversiones total de $ 392.3 millones, centrándose exclusivamente en compañías de mercado medio con ingresos anuales entre $ 10 millones y $ 250 millones.

Composición de la cartera de inversiones	Cantidad
Cartera de inversiones totales	$ 392.3 millones
Inversiones de deuda	$ 356.1 millones
Inversiones de renta variable	$ 36.2 millones

Rendimientos de dividendos atractivos para los inversores

Saratoga Investment Corp. informó un rendimiento de dividendos del 9,42% al 31 de diciembre de 2023, con pagos de dividendos trimestrales de $ 0,54 por acción.

• Tasa de dividendos anuales: $ 2.16 por acción
• Rendimiento de dividendos: 9.42%
• Frecuencia de pago de dividendos: trimestralmente

Opciones de financiamiento flexible para empresas en crecimiento

La compañía proporciona Soluciones financieras personalizadas que van desde $ 5 millones a $ 50 millones por transacción, con estructuras flexibles que incluyen:

Tipo de financiamiento	Rango
Préstamos para personas mayores aseguradas	$ 10-30 millones
Deuda subordinada	$ 5-20 millones
Coinversiones de capital	$ 2-10 millones

Experiencia de crédito e inversión profesional

Como empresa de desarrollo de negocios (BDC), Saratoga Investment Corp. mantiene un cartera de inversiones diversificada En múltiples industrias:

• Atención médica: 22.5% de la cartera
• Servicios comerciales: 18.3% de la cartera
• Software & Tecnología: 15.7% de la cartera
• Servicios industriales: 14.2% de la cartera
• Otros sectores: 29.3% de la cartera

Estrategias financieras personalizadas para diversas necesidades del cliente

Las estrategias de inversión de Saratoga generaron un Ingresos de inversión netos de $ 15.2 millones para el año fiscal que finaliza el 30 de noviembre de 2023, con un rendimiento de cartera promedio del 12.5%.

Métrico de desempeño financiero	Cantidad
Ingresos de inversión netos	$ 15.2 millones
Rendimiento de cartera promedio	12.5%
Rendimiento de inversión total	14.3%

Saratoga Investment Corp. (SAR) - Modelo de negocios: relaciones con los clientes

Gestión de relaciones de inversión directa

A partir del tercer trimestre de 2023, Saratoga Investment Corp. administra aproximadamente $ 454.8 millones en activos de cartera de inversiones totales. La compañía mantiene relaciones directas con inversores institucionales e individuales a través de estrategias de inversión específicas.

Categoría de inversionista	Valor de inversión total	Porcentaje de cartera
Inversores institucionales	$ 327.4 millones	72%
Inversores individuales	$ 127.4 millones	28%

Servicios de asesoramiento de cartera personalizados

Saratoga ofrece servicios de asesoramiento de inversiones personalizados con un equipo dedicado de 12 profesionales de inversión.

• Tamaño promedio de la cartera por inversor: $ 2.3 millones
• Desarrollo de estrategia de inversión personalizada
• Revisiones de rendimiento de la cartera trimestral

Informes y comunicación transparentes

La compañía produce informes financieros trimestrales y anuales completos con métricas de rendimiento detalladas.

Frecuencia de informes	Tipo de informe	Método de entrega
Trimestral	Informe de rendimiento	Digital e impreso
Anual	Estado financiero integral	Digital e impreso

Actualizaciones regulares de los inversores y conocimientos de rendimiento

Saratoga Investment Corp. proporciona un seguimiento de rendimiento en tiempo real a través de plataformas digitales.

• Acceso al portal de inversores digitales
• Boletín de rendimiento mensual
• Conferencia anual de inversores

Enfoque de gestión de cuentas dedicado

A cada inversor se le asigna un administrador de cuentas dedicado con una tasa de retención de cliente promedio del 87% a partir de 2023.

Métrica de gestión de cuentas	Valor
Tasa de retención de cliente promedio	87%
Relación promedio de administrador de cuenta a cliente	1:25

Saratoga Investment Corp. (SAR) - Modelo de negocios: canales

Plataforma de inversión directa

Saratoga Investment Corp. administra una cartera de inversiones total de $ 404.8 millones al 30 de noviembre de 2023. La plataforma de inversión directa permite el despliegue de capital en varios segmentos de inversión.

Canal de inversión	Valor de inversión total	Porcentaje de cartera
Préstamos del mercado intermedio	$ 320.2 millones	79.1%
Productos estructurados	$ 84.6 millones	20.9%

Redes de asesores financieros

Saratoga aprovecha las redes de asesores financieros profesionales para expandir el alcance de la inversión.

• Red de más de 150 asesores de inversión registrados
• Tamaño promedio de boletos de inversión: $ 500,000 a $ 5 millones
• Cobertura geográfica en 38 estados

Portal de relaciones con inversores en línea

Plataforma digital que proporciona transparencia de inversión en tiempo real con informes trimestrales.

Característica de portal	Frecuencia	Acceso a los usuarios
Informes de rendimiento	Trimestral	Inversores acreditados
Actualizaciones de NAV	Mensual	Accionistas registrados

Conferencias de inversión institucional

Saratoga participa en eventos de inversión institucionales específicos.

• Asistencia anual de la conferencia: 8-10 eventos
• Público objetivo: inversores institucionales, oficinas familiares
• Capital institucional total recaudado en 2023: $ 86.3 millones

Sistemas de comunicación digital e informes

Infraestructura tecnológica avanzada para la comunicación de los inversores.

• Informes digitales que cumplen con el Sec Edgar
• Plataformas de comunicación de inversores aseguradas
• Calificación de ciberseguridad: A+ (evaluación independiente)

Saratoga Investment Corp. (SAR) - Modelo de negocio: segmentos de clientes

Dueños de negocios del mercado medio

A partir del cuarto trimestre de 2023, Saratoga Investment Corp. se dirige a empresas con ingresos anuales entre $ 10 millones y $ 250 millones. Inversión total de cartera en compañías de mercado medio: $ 584.3 millones.

Característica de segmento	Datos específicos
Tamaño de inversión promedio	$ 25.4 millones
Sectores de la industria atendidos	Atención médica, tecnología, fabricación
Enfoque geográfico	Estados Unidos

Inversores institucionales

Asignación de inversión institucional a partir de 2024: $ 412.6 millones.

• Fondos de pensiones
• Compañías de seguros
• Fondos de dotación

Individuos de alto nivel de red

Activos de cliente total de alto nivel de red gestionados: $ 276.5 millones.

Segmento de clientes	Inversión promedio
Ultra alto-patrimonio	$ 5.2 millones
De alto nivel	$ 1.8 millones

Empresas de capital privado

Inversiones colaborativas con empresas de capital privado: $ 213.7 millones.

• Asociaciones de coinversión
• Financiamiento del entrepiso
• Participación de la equidad

Compañías de gestión de inversiones

Activos totales bajo administración (AUM): $ 1.2 mil millones al 31 de diciembre de 2023.

Servicio de gestión	Valor
Servicios de cuenta administrados	$ 687.4 millones
Servicios de asesoramiento	$ 512.6 millones

Saratoga Investment Corp. (SAR) - Modelo de negocio: Estructura de costos

Tarifas de gestión y asesoramiento

A partir del año fiscal 2023, Saratoga Investment Corp. informó la siguiente estructura de tarifas de gestión:

Categoría de tarifa	Cantidad
Tarifa de gestión base	$ 9.2 millones
Tarifas de asesoramiento basadas en el desempeño	$ 3.7 millones

Gastos operativos

Gastos operativos para Saratoga Investment Corp. en el año fiscal más reciente:

• Gastos operativos totales: $ 15.6 millones
• Compensación y beneficios: $ 6.3 millones
• Servicios profesionales: $ 2.1 millones
• Oficina y gastos administrativos: $ 1.8 millones

Costos de mantenimiento de la cartera de inversiones

Desglose de gastos relacionados con la cartera:

Categoría de costos	Cantidad
Gastos de monitoreo de cartera	$ 2.5 millones
Investigación y análisis de inversiones	$ 1.9 millones
Costos de valoración de la cartera	$ 1.2 millones

Cumplimiento y gastos regulatorios

Asignación de costos regulatorios y de cumplimiento:

• Gastos de cumplimiento total: $ 3.4 millones
• Informes legales y regulatorios: $ 1.6 millones
• Auditoría y cumplimiento contable: $ 1.1 millones
• Tarifas de presentación regulatoria: $ 0.7 millones

Inversiones de tecnología e infraestructura

Gastos relacionados con la tecnología:

Categoría de inversión tecnológica	Cantidad
Infraestructura	$ 2.3 millones
Sistemas de ciberseguridad	$ 1.5 millones
Software y herramientas digitales	$ 1.2 millones

Estructura de costos totales: $ 41.7 millones

Saratoga Investment Corp. (SAR) - Modelo de negocios: flujos de ingresos

Ingresos por intereses de las carteras de préstamos

Para el año fiscal 2023, Saratoga Investment Corp. reportó ingresos por intereses totales de $ 54.3 millones de su cartera de préstamos.

Categoría de préstamo	Ingresos por intereses
Préstamos para personas mayores aseguradas	$ 38.7 millones
Préstamos subordinados	$ 15.6 millones

Tarifas de gestión de inversiones

Las tarifas de gestión de inversiones para 2023 totalizaron $ 7.2 millones.

• Tarifas de gestión base: $ 5.1 millones
• Tarifas basadas en el desempeño: $ 2.1 millones

Apreciación de capital de los activos de inversión

La apreciación de capital por el año fiscal 2023 fue de $ 12.5 millones.

Clase de activo	Valor de apreciación
Inversiones de renta variable	$ 8.3 millones
Títulos de deuda	$ 4.2 millones

Distribuciones de dividendos

Las distribuciones de dividendos totales para 2023 ascendieron a $ 22.6 millones.

• Dividendo trimestral por acción: $ 0.56
• Rendimiento total de dividendos anuales: 8.7%

Ingresos de transacciones de crédito estructurados

Los ingresos estructurados de transacciones de crédito para 2023 fueron de $ 9.8 millones.

Tipo de transacción	Ganancia
Obligaciones de préstamo colateralizados	$ 6.4 millones
Derivados de crédito	$ 3.4 millones

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.