67 WALL STREET, New York - December 17, 2013 - The Wall Street Transcript has just published its Business Development Companies Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: BDC Risk/Reward Profile - Business Development Companies Historical Overview - Yield Compression Issues - Internally and Externally Managed BDCs - BDC Dividend Growth
Companies include: Saratoga Investments Corp. (SAR) and many more.
In the following excerpt from the Business Development Companies Report, the Chairman and CEO of Saratoga Investments Corp. (SAR) discusses company strategy and the outlook for this vital industry:
TWST: Let's begin with a brief historical sketch of the Saratoga Investment Corporation, and then give us overview of what things are like at the present time.
Mr. Oberbeck: Saratoga Investment Corp. is a business development company, a BDC, traded on the New York Stock Exchange under the symbol SAR. We took over the management of Saratoga Investment Corp., in July of 2010, and since that time, we have improved the net asset value from approximately $74 million to $112 million today, plus we paid out $8 million in cash dividends. So it has really gone from $74 million to $120 million.
We have made some significant improvements in terms of building the management team, adding members to our management team. Mike Grisius, our President, joined us with a very distinguished career and tremendous experience at Allied Capital. He was very successful investing there. Tom Inglesby had been with the prior company, and he manages our CLO business. And we have other members of our existing team who are involved, like Charles Phillips and Rich Petrocelli. We brought on an individual named Joe Burkhart in Business Development. So we've significantly expanded our management team, reach, and expertise, and we have also added significant strategic dimensions to the company in that we got our SBIC license approved, so we have an SBIC subsidiary now of our BDC. We've invested about $65 million in that entity, and we have access to $150 million of financing there.
We also have a CLO that we manage, which we just refinanced, and so we have a $300 million CLO, which has been a very profitable part of our business and will continue to be going forward. In May we completed a $48 million baby bond offering to raise additional capital for our business. So we've done significant things to expand our management team, expand our reach and sources of capital, and we've been developing a very significant healthy pipeline of directly originated investments.
TWST: How has Saratoga's investing shifted or evolved this year as a result of the 2012 tumultuous market performance?
For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.