Investment strategies engineered
for stability and performance.
Retail and institutional investors seek a trusted investment manager/advisor who can match their resources and risk appetite with the needs of the business community. Saratoga Partners offers a suite of credit and equity products built on disciplined underwriting and active portfolio stewardship.
Rich Petrocelli, Managing Director
Investment Philosophy
Retail and institutional investors find a trusted investment manager/advisor who matches their resources and risk appetite with the needs of the business community.
Our investment objective is to create attractive risk-adjusted returns by generating current income and long-term capital appreciation. We achieve this through the benefits of a disciplined approach to identifying high quality credits, superior underwriting, and a proven track record of exceeding investment benchmarks for performance.
Investment Vehicles
Saratoga furnishes investors with varied and dependable sources of return. We design our investment options to meet varied objectives, from current income to long-term capital appreciation. Each strategy leverages our rigorous credit process and deep experience in the middle market.
We design our investment options to meet varied objectives, from current income to long-term capital appreciation. Each strategy leverages our rigorous credit process and deep experience in the middle market.
Saratoga Investment Corp. (the BDC) has over 1.2 billion dollars of assets under management.
This significant permanent capital base enables Saratoga to offer a broad range of financing solutions, including subordinated debt, first and second lien loans, and unitranche structures and equity co-investments.
Saratoga seeks to partner with business owners (equity sponsors, independent sponsors, family-owned businesses) and management teams to craft capital structures that enable them to pursue their business plans.
Saratoga focuses on the lower end of the middle market, targeting US-based cash flow positive companies with annual revenues between $20 and $250 million and EBITDA in excess of $2 million.
Our portfolio is thoughtfully constructed, emphasizing senior secured loans and structured capital solutions with proven underwriting rigor. Transparent, high-performing, and SEC-regulated, the Saratoga BDC is not just an opportunity, it’s an invitation to partner with a team that puts capital to work with clarity, conviction, and care.
Publicly traded Business Development Company (Ticker: SAR)
Strong track record of consistent yield generation and NAV growth
Managed by a disciplined credit investment team with deep industry expertise
Invest For a Reason
From structured equity and rescue capital to transitional financing and other customized solutions, we leverage our flexible investment approach and disciplined underwriting to structure capital that aligns with each company’s objectives while creating long-term value for all stakeholders.
Complexity As Consideration
Saratoga acts as a problem-solving investor/partner where the solution is more important than just paying the highest price. Whether the issue is managing historical liabilities, supporting a founder or closing in a compressed time frame, complex transactions translate into lower initial purchase prices. Our proven history of tailoring such solutions tends to make us the partner of choice for management.
Build a Better Business Plan
Saratoga focuses on opportunities that present a new level of potential growth; we then work with management to realize it. This support can range from strategic guidance through acquisitions and capital raises to using Saratoga’s extensive network to provide value-added executives at the board level to complement operating management.
Have Multiple Exit Options
Any investment must have multiple paths to potential success; because building businesses is a dynamic process, the path may change during the journey. Saratoga identifies several realization outcomes when making an investment, ranging from recapitalizations to IPOs. Most of Saratoga’s exits have been initiated by an approach from a larger competitor that has noted the success of our portfolio investment.
Saratoga's CLO investment strategy is primarily focused on the junior debt tranches of collateralized loan obligations ("CLOs"), with a particular focus on tranches initially rated "BB."
We believe that the junior debt tranches of CLOs represent an attractive opportunity to achieve compelling risk-adjusted investment returns for the following reasons
Diversification and Structural Protection
CLO junior debt tranches provide exposure to a broadly diversified pool of Senior Secured Loans, with the equity tranche serving as a “first loss” buffer that absorbs initial credit losses
Historical Performance
According to Moody’s Analytics, from 1993 to 2022, the U.S. CLO cumulative impairment rate for BB-rated CLO securities was 1.8%, compared to the cumulative default rate of 5.8% for BB-rated U.S. corporate loans and bonds over the same period.
