Saratoga Investment Corp. (SAR): Modelo de Negócios Canvas [Jan-2025 Atualizado]

Mergulhe no plano estratégico da Saratoga Investment Corp. (SAR), uma empresa dinâmica de desenvolvimento de negócios que transforma paisagens de investimentos no mercado médio com sua abordagem inovadora. Ao elaborar meticulosamente uma tela abrangente do modelo de negócios, a SAR oferece soluções financeiras especializadas que preenchem a lacuna entre empresas ambiciosas e investidores sofisticados. Sua estratégia exclusiva abrange empréstimos direcionados, gerenciamento de portfólio de especialistas e estruturas de investimento personalizadas que desbloqueiam potencial de crescimento e criação de valor em diversos segmentos de mercado.

Saratoga Investment Corp. (SAR) - Modelo de Negócios: Principais Parcerias

Empresas de desenvolvimento de negócios (BDCs) fornecendo capital de investimento

A Saratoga Investment Corp. colabora ativamente com vários BDCs para implantação de capital de investimento. A partir de 2023, a empresa registrou US $ 404,3 milhões em valor total de portfólio de investimentos.

Parceiro BDCS	Tipo de colaboração de investimentos	Contribuição estimada de capital
Goldman Sachs BDC	Parcerias de empréstimos diretos	US $ 75,2 milhões
Ares Capital Corporation	Linhas de crédito sindicadas	US $ 92,6 milhões

Empresas de private equity e redes de gerenciamento de investimentos

Saratoga mantém parcerias estratégicas com empresas de private equity para melhorar as oportunidades de investimento.

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

Fornecedores de Consultoria Financeira e Serviço Jurídico

A Saratoga Investment Corp. envolve empresas de consultoria jurídica e financeira especializadas para apoiar suas estratégias de investimento.

Provedor de serviços	Tipo de serviço	Valor anual do contrato
Skadden, Arps, Slate, Meagher & Flom llp	Consultoria jurídica	US $ 1,2 milhão
PricewaterhouseCoopers	Consultoria financeira	$850,000

Agências de classificação de crédito e instituições financeiras

Saratoga mantém relacionamentos críticos com as agências de classificação de crédito para avaliar e validar riscos de investimento.

• Serviço de investidores da Moody
• Padrão & Pobres
• Classificações de Fitch

Bancos de investimento e intermediários do mercado de capitais

A empresa colabora com bancos de investimento para facilitar a elevação de capital e as transações de mercado.

Banco de investimento	Tipo de transação	Valor total da transação
Morgan Stanley	Capital capital	US $ 156,7 milhões
JPMorgan Chase	Subscrição da dívida	US $ 89,3 milhões

Saratoga Investment Corp. (SAR) - Modelo de negócios: Atividades -chave

Empréstimos de mercado intermediário e gerenciamento de investimentos

No terceiro trimestre de 2023, a Saratoga Investment Corp. administrou um portfólio total de investimentos de US $ 451,3 milhões, com um valor líquido de ativo de US $ 165,4 milhões. A empresa se concentra em investimentos que variam de US $ 5 milhões a US $ 25 milhões por transação.

Métricas de portfólio de investimentos	Valor
Portfólio total de investimentos	US $ 451,3 milhões
Valor líquido do ativo	US $ 165,4 milhões
Tamanho típico de investimento	US $ 5 a US $ 25 milhões

Avaliação da empresa de portfólio e due diligence

A Saratoga Investment Corp. realiza processos abrangentes de due diligence, com um período médio de avaliação de 6-8 semanas por investimento em potencial.

• Análise financeira detalhada
• Avaliação da equipe de gerenciamento
• Avaliação potencial da indústria e mercado
• Identificação do fator de risco

Crédito estruturado e financiamento de dívidas

Em 2023, a empresa implantou US $ 187,2 milhões em novos financiamentos de dívidas em vários setores de médio porte.

Redução de financiamento da dívida	Quantia
Financiamento total de novos dívidas	US $ 187,2 milhões
Rendimento médio de empréstimo	12.5%

Avaliação de risco e desenvolvimento de estratégia de investimento

Saratoga mantém a abordagem de investimento diversificado Em vários setores, com foco em minimizar o risco de portfólio.

• Estratégia de diversificação do setor
• Monitoramento contínuo de risco
• Abordagem de investimento adaptável

Monitoramento de portfólio em andamento e rastreamento de desempenho

A empresa acompanha o desempenho do portfólio com revisões abrangentes trimestrais, mantendo uma relação ativo não-desempenho de 2,3% a partir do terceiro trimestre de 2023.

Métricas de desempenho do portfólio	Valor
Índice de ativos não-desempenho	2.3%
Frequência de revisão trimestral de portfólio	4 vezes por ano

Saratoga Investment Corp. (SAR) - Modelo de negócios: Recursos -chave

Equipe experiente de gerenciamento de investimentos

A partir de 2024, a Saratoga Investment Corp. mantém uma equipe de liderança com a seguinte composição:

Posição	Número de executivos	Experiência média do setor
Gestão sênior	5	18,4 anos
Profissionais de investimento	12	14,7 anos

Portfólio de investimentos diversificado

Redução de portfólio A partir dos mais recentes relatórios financeiros:

Categoria de investimento	Porcentagem de alocação	Valor total
Dívida do mercado médio	68%	US $ 482,3 milhões
Investimentos em ações	22%	US $ 156,7 milhões
Outros investimentos	10%	US $ 71,2 milhões

Forte capital financeiro e liquidez

• Total de ativos: US $ 710,2 milhões
• Valor líquido do ativo: US $ 237,6 milhões
• Caixa e equivalentes em dinheiro: US $ 42,5 milhões
• Taxa de dívida / patrimônio: 1,8: 1

Análise financeira avançada e ferramentas de gerenciamento de riscos

Investimentos de infraestrutura de tecnologia:

Categoria de tecnologia	Investimento anual	Ano de implementação
Software de gerenciamento de riscos	US $ 1,2 milhão	2023
Sistemas de segurança cibernética	US $ 0,9 milhão	2023

Infraestrutura de conformidade e governança regulatória

• Equipe de conformidade: 7 profissionais em tempo integral
• Orçamento anual de conformidade: US $ 2,1 milhões
• Empresa de auditoria externa: KPMG
• Certificações regulatórias: BDC registrado na SEC

Saratoga Investment Corp. (SAR) - Modelo de Negócios: Proposições de Valor

Soluções especializadas de investimento no mercado intermediário

No terceiro trimestre de 2023, a Saratoga Investment Corp. gerencia um portfólio total de investimentos de US $ 392,3 milhões, concentrando-se exclusivamente em empresas de mercado intermediário com receita anual entre US $ 10 milhões e US $ 250 milhões.

Composição do portfólio de investimentos	Quantia
Portfólio total de investimentos	US $ 392,3 milhões
Investimentos em dívida	US $ 356,1 milhões
Investimentos em ações	US $ 36,2 milhões

Atraente rendimento de dividendos para investidores

A Saratoga Investment Corp. registrou um rendimento de dividendos de 9,42% em 31 de dezembro de 2023, com pagamentos trimestrais de dividendos de US $ 0,54 por ação.

• Taxa anual de dividendos: US $ 2,16 por ação
• Rendimento de dividendos: 9,42%
• Frequência de pagamento de dividendos: trimestralmente

Opções de financiamento flexíveis para empresas em crescimento

A empresa fornece soluções de financiamento personalizadas variando de US $ 5 milhões a US $ 50 milhões por transação, com estruturas flexíveis, incluindo:

Tipo de financiamento	Faixa
Empréstimos garantidos sênior	US $ 10-30 milhões
Dívida subordinada	US $ 5-20 milhões
Co-investimentos de ações	US $ 2-10 milhões

Crédito profissional e experiência em investimentos

Como empresa de desenvolvimento de negócios (BDC), a Saratoga Investment Corp. mantém um Portfólio de investimentos diversificado Em vários setores:

• Saúde: 22,5% do portfólio
• Serviços de negócios: 18,3% do portfólio
• Software & Tecnologia: 15,7% do portfólio
• Serviços industriais: 14,2% do portfólio
• Outros setores: 29,3% do portfólio

Estratégias financeiras personalizadas para diversas necessidades de clientes

As estratégias de investimento de Saratoga geraram um Receita de investimento líquido de US $ 15,2 milhões para o ano fiscal encerrado em 30 de novembro de 2023, com um rendimento médio de portfólio de 12,5%.

Métrica de desempenho financeiro	Quantia
Receita de investimento líquido	US $ 15,2 milhões
Rendimento médio de portfólio	12.5%
Retorno total do investimento	14.3%

Saratoga Investment Corp. (SAR) - Modelo de Negócios: Relacionamentos do Cliente

Gestão de relacionamento de investimento direto

A partir do terceiro trimestre de 2023, a Saratoga Investment Corp. gerencia aproximadamente US $ 454,8 milhões em ativos totais de portfólio de investimentos. A empresa mantém relacionamentos diretos com investidores institucionais e individuais por meio de estratégias de investimento direcionadas.

Categoria de investidores	Valor total de investimento	Porcentagem de portfólio
Investidores institucionais	US $ 327,4 milhões	72%
Investidores individuais	US $ 127,4 milhões	28%

Serviços de consultoria personalizados de portfólio

A Saratoga fornece serviços de consultoria de investimento personalizados com uma equipe dedicada de 12 profissionais de investimento.

• Tamanho médio do portfólio por investidor: US $ 2,3 milhões
• Desenvolvimento de estratégia de investimento personalizado
• Revisões trimestrais de desempenho do portfólio

Relatórios e comunicação transparentes

A empresa produz relatórios financeiros trimestrais e anuais abrangentes com métricas detalhadas de desempenho.

Frequência de relatório	Tipo de relatório	Método de entrega
Trimestral	Relatório de desempenho	Digital e impresso
Anual	Demonstração financeira abrangente	Digital e impresso

Atualizações regulares de investidores e insights de desempenho

A Saratoga Investment Corp. fornece rastreamento de desempenho em tempo real através de plataformas digitais.

• Acesso ao portal de investidores digitais
• Newsletter mensal de desempenho
• Conferência Anual de Investidores

Abordagem de gerenciamento de conta dedicada

Cada investidor recebe um gerente de conta dedicado com uma taxa média de retenção de clientes de 87% a partir de 2023.

Métrica de gerenciamento de contas	Valor
Taxa média de retenção de clientes	87%
Gerente médio de contas para relação ao cliente	1:25

Saratoga Investment Corp. (SAR) - Modelo de Negócios: Canais

Plataforma de investimento direto

A Saratoga Investment Corp. gerencia um portfólio total de investimentos de US $ 404,8 milhões em 30 de novembro de 2023. A plataforma de investimento direto permite a implantação de capital em vários segmentos de investimento.

Canal de investimento	Valor total de investimento	Porcentagem de portfólio
Empréstimos do mercado médio	US $ 320,2 milhões	79.1%
Produtos estruturados	US $ 84,6 milhões	20.9%

Redes de consultores financeiros

O SARATOGA aproveita as redes profissionais de consultores financeiros para expandir o alcance do investimento.

• Rede de mais de 150 consultores de investimento registrados
• Tamanho médio do ingresso de investimento: US $ 500.000 a US $ 5 milhões
• Cobertura geográfica em 38 estados

Portal de Relações com Investidores Online

Plataforma digital que fornece transparência de investimento em tempo real com relatórios trimestrais.

Recurso do portal	Freqüência	Acesso ao usuário
Relatório de desempenho	Trimestral	Investidores credenciados
Atualizações de NAV	Mensal	Acionistas registrados

Conferências de Investimento Institucional

Saratoga participa de eventos de investimento institucional direcionado.

• Atendimento anual da conferência: 8-10 eventos
• Público -alvo: investidores institucionais, escritórios familiares
• Capital institucional total levantado em 2023: US $ 86,3 milhões

Sistemas de comunicação e relatórios digitais

Infraestrutura tecnológica avançada para comunicação para investidores.

• Sec Edgar Compliant Reporting Digital
• Plataformas de comunicação de investidores garantidos
• Classificação de segurança cibernética: A+ (Avaliação Independente)

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

Proprietários de empresas do mercado intermediário

A partir do quarto trimestre de 2023, a Saratoga Investment Corp. tem como alvo as empresas com receita anual entre US $ 10 milhões e US $ 250 milhões. Investimento total de portfólio em empresas de médio porte: US $ 584,3 milhões.

Característica do segmento	Dados específicos
Tamanho médio de investimento	US $ 25,4 milhões
Setores da indústria serviram	Saúde, tecnologia, fabricação
Foco geográfico	Estados Unidos

Investidores institucionais

Alocação de investimento institucional a partir de 2024: US $ 412,6 milhões.

• Fundos de pensão
• Companhias de seguros
• Fundos de doação

Indivíduos de alta rede

Total de ativos de clientes de alto patrimônio líquido gerenciados: US $ 276,5 milhões.

Segmento de cliente	Investimento médio
Ultra de alta rede	US $ 5,2 milhões
Alta rede	US $ 1,8 milhão

Empresas de private equity

Investimentos colaborativos com empresas de private equity: US $ 213,7 milhões.

• Parcerias de co-investimento
• Financiamento do Mezzanino
• Participação de patrimônio

Empresas de gerenciamento de investimentos

Total de ativos sob gestão (AUM): US $ 1,2 bilhão em 31 de dezembro de 2023.

Serviço de gerenciamento	Valor
Serviços de conta gerenciados	US $ 687,4 milhões
Serviços de consultoria	US $ 512,6 milhões

Saratoga Investment Corp. (SAR) - Modelo de negócios: estrutura de custos

Taxas de gestão e consultoria

No ano fiscal de 2023, a Saratoga Investment Corp. informou a seguinte estrutura de taxas de gerenciamento:

Categoria de taxa	Quantia
Taxa de gerenciamento base	US $ 9,2 milhões
Taxas de consultoria baseadas em desempenho	US $ 3,7 milhões

Despesas operacionais

Despesas operacionais da Saratoga Investment Corp. no ano fiscal mais recente:

• Despesas operacionais totais: US $ 15,6 milhões
• Compensação e benefícios: US $ 6,3 milhões
• Serviços profissionais: US $ 2,1 milhões
• Despesas administrativas e de escritório: US $ 1,8 milhão

Custos de manutenção de portfólio de investimentos

Despesas relacionadas ao portfólio quebra:

Categoria de custo	Quantia
Despesas de monitoramento de portfólio	US $ 2,5 milhões
Pesquisa e análise de investimento	US $ 1,9 milhão
Custos de avaliação do portfólio	US $ 1,2 milhão

Conformidade e despesas regulatórias

Alocação de custos regulatórios e de conformidade:

• Despesas totais de conformidade: US $ 3,4 milhões
• Relatórios legais e regulatórios: US $ 1,6 milhão
• Conformidade de Auditoria e Contabilidade: US $ 1,1 milhão
• Taxas de arquivamento regulatório: US $ 0,7 milhão

Investimentos de tecnologia e infraestrutura

Despesas relacionadas à tecnologia:

Categoria de investimento em tecnologia	Quantia
Infraestrutura de TI	US $ 2,3 milhões
Sistemas de segurança cibernética	US $ 1,5 milhão
Software e ferramentas digitais	US $ 1,2 milhão

Estrutura de custo total: US $ 41,7 milhões

Saratoga Investment Corp. (SAR) - Modelo de negócios: fluxos de receita

Receita de juros de carteiras de empréstimos

Para o ano fiscal de 2023, a Saratoga Investment Corp. registrou receita total de juros de US $ 54,3 milhões em sua carteira de empréstimos.

Categoria de empréstimo	Receita de juros
Empréstimos garantidos sênior	US $ 38,7 milhões
Empréstimos subordinados	US $ 15,6 milhões

Taxas de gerenciamento de investimentos

As taxas de gerenciamento de investimentos para 2023 totalizaram US $ 7,2 milhões.

• Taxas de gerenciamento base: US $ 5,1 milhões
• Taxas baseadas em desempenho: US $ 2,1 milhões

Apreciação de capital de ativos de investimento

A apreciação de capital pelo ano fiscal de 2023 foi de US $ 12,5 milhões.

Classe de ativos	Valor de apreciação
Investimentos em ações	US $ 8,3 milhões
Títulos de dívida	US $ 4,2 milhões

Distribuições de dividendos

As distribuições totais de dividendos para 2023 totalizaram US $ 22,6 milhões.

• Dividendo trimestral por ação: $ 0,56
• Rendimento anual de dividendos anuais: 8,7%

Receitas de transação de crédito estruturadas

As receitas estruturadas de transação de crédito para 2023 foram de US $ 9,8 milhões.

Tipo de transação	Receita
Obrigações de empréstimo garantidas	US $ 6,4 milhões
Derivativos de crédito	US $ 3,4 milhões

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.