Investment Profile

Developing creative solutions to capital and business challenges is what makes Saratoga uniquely qualified to thrive in today’s distressed environment. Saratoga has deep and successful experience in a variety of transaction types, some past examples including:

Traditional distressed investing In the case of Advanced Lighting, we purchased the “fulcrum security” to build the foundation for a subsequently-acquired control position, which occurred through working with management to co-sponsor a successful reorganization;
Negotiated failed-financing/distressed investing Like Advanced Lighting, our investment in Koppers incorporated multiple-step, staged investments; in this case, after a failed financing, we negotiated upfront to acquire a minority position and subsequently executed a recapitalization to gain control;
Preferred, structured equity and minority investments, including PIPEs Our original investment in Emeritus (NYSE: ESC) was a balance sheet enhancing investment to provide fiscal year-end liquidity to a public company in partnership with the founding CEO, who was the largest shareholder. Further discounted purchases of company securities enhanced shareholder returns; and,
Bankruptcy reorganizations and auctions We acquired Data Return through a Section 363 bankruptcy sale; partnering with founding management enabled us to succeed under severe information and time constraints.

As we identify opportunities like the above, we find ourselves positioned to prevail and close the transaction as the sponsor of choice for many management teams. Our successful and long history of working with founders – combined with our merchant banking heritage of providing sound advice and active, “hands-on” post-investment involvement – has positioned Saratoga as an attractive, value-added partner to its prospective portfolio investments. There remain fundamentally sound businesses which now lack the resources to capitalize on the opportunities available to the well-positioned and strong amidst the general turmoil; we believe this plays to all of Saratoga’s strengths, from creating appropriate deal structures to partnering to support growth.