Saratoga Investment Corp. (SAR): Business Model Canvas [Jan-2025 Mise à jour]

Plongez dans le plan stratégique de Saratoga Investment Corp. (SAR), une entreprise dynamique de développement commercial qui transforme les paysages d'investissement du marché intermédiaire avec son approche innovante. En fabriquant méticuleusement une toile complète du modèle commercial, SAR fournit des solutions financières spécialisées qui comblent l'écart entre les entreprises ambitieuses et les investisseurs sophistiqués. Leur stratégie unique comprend des prêts ciblés, une gestion de portefeuille d'experts et des cadres d'investissement personnalisés qui débloquent le potentiel de croissance et de création de valeur dans divers segments de marché.

Saratoga Investment Corp. (SAR) - Modèle commercial: partenariats clés

Business Development Companies (BDCS) fournissant un capital d'investissement

Saratoga Investment Corp. collabore activement avec plusieurs BDC pour le déploiement des capitaux d'investissement. En 2023, la société a déclaré 404,3 millions de dollars en valeur totale de portefeuille d'investissement.

Partenaire BDCS	Type de collaboration d'investissement	Contribution estimée en capital
Goldman Sachs BDC	Partenariats de prêt direct	75,2 millions de dollars
ARES Capital Corporation	Facilités de crédit syndiquées	92,6 millions de dollars

Sociétés de capital-investissement et réseaux de gestion des investissements

Saratoga maintient des partenariats stratégiques avec des sociétés de capital-investissement pour améliorer les opportunités d'investissement.

• Blackstone Group LP
• Kkr & Co. Inc.
• Gestion mondiale Apollo

Fournisseurs de conseil financier et de service juridique

Saratoga Investment Corp. engage des cabinets de conseil juridique et financier spécialisés pour soutenir ses stratégies d'investissement.

Fournisseur de services	Type de service	Valeur du contrat annuel
Skadden, arps, ardoise, meagher & Flom LLP	Avis juridique	1,2 million de dollars
PricewaterhouseCoopers	Conseil financier	$850,000

Agences de notation de crédit et institutions financières

Saratoga entretient des relations critiques avec les agences de notation de crédit pour évaluer et valider les risques d'investissement.

• Service d'investisseurs Moody's
• Standard & Pauvre
• Cotes de fitch

Banques d'investissement et intermédiaires du marché des capitaux

La société collabore avec les banques d'investissement pour faciliter la levée de capitaux et les transactions de marché.

Banque d'investissement	Type de transaction	Valeur totale de transaction
Morgan Stanley	Levage de capitaux	156,7 millions de dollars
JPMorgan Chase	Souscription de la dette	89,3 millions de dollars

Saratoga Investment Corp. (SAR) - Modèle d'entreprise: activités clés

Prêts intermédiaires et gestion des investissements

Au troisième trimestre 2023, Saratoga Investment Corp. a géré un portefeuille d'investissement total de 451,3 millions de dollars, avec une valeur d'actif net de 165,4 millions de dollars. La société se concentre sur des investissements allant de 5 millions de dollars à 25 millions de dollars par transaction.

Métriques du portefeuille d'investissement	Valeur
Portefeuille d'investissement total	451,3 millions de dollars
Valeur de l'actif net	165,4 millions de dollars
Taille d'investissement typique	5 à 25 millions de dollars

Évaluation des sociétés de portefeuille et diligence raisonnable

Saratoga Investment Corp. effectue des processus de diligence raisonnable complets, avec une période d'évaluation moyenne de 6 à 8 semaines par investissement potentiel.

• Analyse financière détaillée
• Évaluation de l'équipe de gestion
• Évaluation potentielle de l'industrie et du marché
• Identification du facteur de risque

Crédit structuré et financement de la dette

En 2023, la société a déployé 187,2 millions de dollars de nouveau financement de la dette dans divers secteurs du marché intermédiaire.

Répartition du financement de la dette	Montant
Financement total de la dette	187,2 millions de dollars
Rendement moyen du prêt	12.5%

Évaluation des risques et développement de stratégie d'investissement

Saratoga maintient un approche d'investissement diversifiée sur plusieurs secteurs, en mettant l'accent sur la minimisation des risques de portefeuille.

• Stratégie de diversification du secteur
• Surveillance des risques continus
• Approche d'investissement adaptative

Surveillance du portefeuille et suivi des performances en cours

La société suit les performances du portefeuille avec des revues trimestrielles complètes, en maintenant un ratio d'actifs non performants de 2,3% au troisième trimestre 2023.

Métriques de performance de portefeuille	Valeur
Ratio d'actifs non performants	2.3%
Fréquence de révision du portefeuille trimestre	4 fois par an

Saratoga Investment Corp. (SAR) - Modèle d'entreprise: Ressources clés

Équipe expérimentée de gestion des investissements

En 2024, Saratoga Investment Corp. maintient une équipe de direction avec la composition suivante:

Position	Nombre de cadres	Expérience moyenne de l'industrie
Senior	5	18,4 ans
Professionnels de l'investissement	12	14,7 ans

Portefeuille d'investissement diversifié

Répartition du portefeuille à partir des derniers rapports financiers:

Catégorie d'investissement	Pourcentage d'allocation	Valeur totale
Dette du marché intermédiaire	68%	482,3 millions de dollars
Investissements en actions	22%	156,7 millions de dollars
Autres investissements	10%	71,2 millions de dollars

Capital financier solide et liquidité

• Total des actifs: 710,2 millions de dollars
• Valeur de l'actif net: 237,6 millions de dollars
• Equivalents en espèces et en espèces: 42,5 millions de dollars
• Ratio dette / fonds propres: 1,8: 1

Outils avancés d'analyse financière et de gestion des risques

Investissements infrastructures technologiques:

Catégorie de technologie	Investissement annuel	Année de mise en œuvre
Logiciel de gestion des risques	1,2 million de dollars	2023
Systèmes de cybersécurité	0,9 million de dollars	2023

Conformité réglementaire et infrastructure de gouvernance

• Personnel de conformité: 7 professionnels à temps plein
• Budget de conformité annuel: 2,1 millions de dollars
• Cabinet d'audit externe: kpmg
• Certifications réglementaires: BDC enregistré par la SEC

Saratoga Investment Corp. (SAR) - Modèle d'entreprise: propositions de valeur

Solutions d'investissement spécialisées sur le marché intermédiaire

Au troisième rang 2023, Saratoga Investment Corp. gère un portefeuille d'investissement total de 392,3 millions de dollars, se concentrant exclusivement sur les sociétés du marché intermédiaire avec des revenus annuels entre 10 et 250 millions de dollars.

Composition du portefeuille d'investissement	Montant
Portefeuille d'investissement total	392,3 millions de dollars
Investissements de la dette	356,1 millions de dollars
Investissements en actions	36,2 millions de dollars

Rendements de dividendes attrayants pour les investisseurs

Saratoga Investment Corp. a déclaré un rendement de dividende de 9,42% au 31 décembre 2023, avec des versements de dividendes trimestriels de 0,54 $ par action.

• Taux de dividende annuel: 2,16 $ par action
• Rendement des dividendes: 9,42%
• Fréquence de paiement des dividendes: trimestriel

Options de financement flexibles pour les entreprises en croissance

La société fournit Solutions de financement personnalisées allant de 5 millions de dollars à 50 millions de dollars par transaction, avec des structures flexibles, notamment:

Type de financement	Gamme
Prêts garantis supérieurs	10-30 millions de dollars
Dette subordonnée	5-20 millions de dollars
Co-investissements en actions	2 à 10 millions de dollars

Expertise professionnelle du crédit et de l'investissement

En tant que société de développement commercial (BDC), Saratoga Investment Corp. maintient un Portefeuille d'investissement diversifié dans plusieurs industries:

• Santé: 22,5% du portefeuille
• Services commerciaux: 18,3% du portefeuille
• Logiciel & Technologie: 15,7% du portefeuille
• Services industriels: 14,2% du portefeuille
• Autres secteurs: 29,3% du portefeuille

Stratégies financières personnalisées pour divers besoins des clients

Les stratégies d'investissement de Saratoga ont généré un revenu de placement net de 15,2 millions de dollars pour l'exercice se terminant le 30 novembre 2023, avec un portefeuille moyen de 12,5%.

Métrique de performance financière	Montant
Revenu de placement net	15,2 millions de dollars
Rendement moyen du portefeuille	12.5%
Rendement total de l'investissement	14.3%

Saratoga Investment Corp. (SAR) - Modèle d'entreprise: relations clients

Gestion directe des relations d'investissement

Au troisième trimestre 2023, Saratoga Investment Corp. gère environ 454,8 millions de dollars d'actifs totaux de portefeuille d'investissement. La société entretient des relations directes avec des investisseurs institutionnels et individuels grâce à des stratégies d'investissement ciblées.

Catégorie d'investisseurs	Valeur d'investissement totale	Pourcentage de portefeuille
Investisseurs institutionnels	327,4 millions de dollars	72%
Investisseurs individuels	127,4 millions de dollars	28%

Services de conseil personnalisés de portefeuille

Saratoga fournit aux services de conseil en investissement personnalisés avec une équipe dédiée de 12 professionnels de l'investissement.

• Taille moyenne du portefeuille par investisseur: 2,3 millions de dollars
• Développement de stratégie d'investissement personnalisé
• Revues de performances de portefeuille trimestrielles

Représentation et communication transparentes

La société produit des rapports financiers trimestriels et annuels complets avec des mesures de performance détaillées.

Fréquence de rapport	Type de rapport	Méthode de livraison
Trimestriel	Rapport de performance	Numérique et imprimé
Annuel	États financiers complets	Numérique et imprimé

Mises à jour régulières des investisseurs et informations sur les performances

Saratoga Investment Corp. offre un suivi des performances en temps réel via des plateformes numériques.

• Accès du portail des investisseurs numériques
• Newsletter de performance mensuelle
• Conférence annuelle sur les investisseurs

Approche de gestion des comptes dédiée

Chaque investisseur se voit attribuer un gestionnaire de compte dédié avec un taux moyen de rétention de la clientèle de 87% en 2023.

Métrique de gestion du compte	Valeur
Taux de rétention de la clientèle moyen	87%
Rapport moyen de compte-compte / client	1:25

Saratoga Investment Corp. (SAR) - Modèle commercial: canaux

Plateforme d'investissement direct

Saratoga Investment Corp. gère un portefeuille d'investissement total de 404,8 millions de dollars au 30 novembre 2023. La plate-forme d'investissement directe permet le déploiement de capital dans divers segments d'investissement.

Canal d'investissement	Valeur d'investissement totale	Pourcentage de portefeuille
Prêts du marché intermédiaire	320,2 millions de dollars	79.1%
Produits structurés	84,6 millions de dollars	20.9%

Réseaux de conseillers financiers

Saratoga exploite les réseaux de conseillers financiers professionnels pour étendre la portée d'investissement.

• Réseau de plus de 150 conseillers en placement enregistrés
• Taille moyenne des billets d'investissement: 500 000 $ à 5 millions de dollars
• Couverture géographique dans 38 États

Portail des relations avec les investisseurs en ligne

Plateforme numérique offrant une transparence des investissements en temps réel avec des rapports trimestriels.

Caractéristique du portail	Fréquence	Accès aux utilisateurs
Reportage des performances	Trimestriel	Investisseurs accrédités
Mises à jour de la navigation	Mensuel	Actionnaires enregistrés

Conférences d'investissement institutionnelles

Saratoga participe à des événements d'investissement institutionnels ciblés.

• Association annuelle de la conférence: 8-10 événements
• Public cible: investisseurs institutionnels, bureaux familiaux
• Capital institutionnel total levé en 2023: 86,3 millions de dollars

Systèmes de communication et de rapports numériques

Infrastructure technologique avancée pour la communication des investisseurs.

• SEC Edgar Rapports numériques conformes
• Plateformes de communication des investisseurs garantis
• Évaluation de la cybersécurité: A + (évaluation indépendante)

Saratoga Investment Corp. (SAR) - Modèle d'entreprise: segments de clientèle

Propriétaires d'entreprises sur le marché intermédiaire

Au quatrième trimestre 2023, Saratoga Investment Corp. cible les entreprises avec des revenus annuels entre 10 et 250 millions de dollars. Investissement total de portefeuille dans les sociétés du marché intermédiaire: 584,3 millions de dollars.

Caractéristique du segment	Données spécifiques
Taille moyenne de l'investissement	25,4 millions de dollars
Les secteurs de l'industrie ont servi	Soins de santé, technologie, fabrication
Focus géographique	États-Unis

Investisseurs institutionnels

Attribution des investissements institutionnels en 2024: 412,6 millions de dollars.

• Fonds de pension
• Compagnies d'assurance
• Fonds de dotation

Individus à haute nette

Les actifs du client total à forte intensité de naissance gérés: 276,5 millions de dollars.

Segment client	Investissement moyen
Ultra-netteur	5,2 millions de dollars
Netteur élevée	1,8 million de dollars

Sociétés de capital-investissement

Investissements collaboratifs avec des sociétés de capital-investissement: 213,7 millions de dollars.

• Partenariats de co-investissement
• Financement de la mezzanine
• Participation aux actions

Sociétés de gestion des investissements

Total des actifs sous gestion (AUM): 1,2 milliard de dollars au 31 décembre 2023.

Service de gestion	Valeur
Services de compte gérés	687,4 millions de dollars
Services consultatifs	512,6 millions de dollars

Saratoga Investment Corp. (SAR) - Modèle d'entreprise: Structure des coûts

Frais de gestion et de conseil

Depuis l'exercice 2023, Saratoga Investment Corp. a déclaré la structure des frais de gestion suivants:

Catégorie de frais	Montant
Frais de gestion de la base	9,2 millions de dollars
Frais de conseil basés sur la performance	3,7 millions de dollars

Dépenses opérationnelles

Dépenses opérationnelles pour Saratoga Investment Corp. au cours de l'exercice le plus récent:

• Total des dépenses d'exploitation: 15,6 millions de dollars
• Compensation et avantages sociaux: 6,3 millions de dollars
• Services professionnels: 2,1 millions de dollars
• Frais de bureau et administratif: 1,8 million de dollars

Coûts de maintenance du portefeuille d'investissement

Répartition des dépenses liées au portefeuille:

Catégorie de coûts	Montant
Frais de surveillance du portefeuille	2,5 millions de dollars
Recherche et analyse des investissements	1,9 million de dollars
Coûts d'évaluation du portefeuille	1,2 million de dollars

Compliance et dépenses réglementaires

Répartition des coûts réglementaires et de conformité:

• Total des dépenses de conformité: 3,4 millions de dollars
• Représentation juridique et réglementaire: 1,6 million de dollars
• Audit et conformité comptabilité: 1,1 million de dollars
• Frais de dépôt réglementaire: 0,7 million de dollars

Investissements technologiques et infrastructures

Dépenses liées à la technologie:

Catégorie d'investissement technologique	Montant
Infrastructure informatique	2,3 millions de dollars
Systèmes de cybersécurité	1,5 million de dollars
Outils logiciels et numériques	1,2 million de dollars

Structure totale des coûts: 41,7 millions de dollars

Saratoga Investment Corp. (SAR) - Modèle d'entreprise: Strots de revenus

Revenu des intérêts des portefeuilles de prêts

Pour l'exercice 2023, Saratoga Investment Corp. a déclaré un revenu total d'intérêts de 54,3 millions de dollars sur son portefeuille de prêts.

Catégorie de prêt	Revenu d'intérêt
Prêts garantis supérieurs	38,7 millions de dollars
Prêts subordonnés	15,6 millions de dollars

Frais de gestion des investissements

Les frais de gestion des investissements pour 2023 ont totalisé 7,2 millions de dollars.

• Frais de gestion de la base: 5,1 millions de dollars
• Frais basés sur la performance: 2,1 millions de dollars

Appréciation du capital des actifs d'investissement

L'appréciation du capital pour l'exercice 2023 était de 12,5 millions de dollars.

Classe d'actifs	Valeur d'appréciation
Investissements en actions	8,3 millions de dollars
Titres de création	4,2 millions de dollars

Distributions de dividendes

Les distributions totales de dividendes pour 2023 s'élevaient à 22,6 millions de dollars.

• Dividende trimestriel par action: 0,56 $
• Rendement annuel du dividende annuel: 8,7%

Revenus de transaction de crédit structurés

Les revenus de transaction de crédit structurés pour 2023 étaient de 9,8 millions de dollars.

Type de transaction	Revenu
Obligations de prêt garanti	6,4 millions de dollars
Dérivés de crédit	3,4 millions de dollars

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.