Saratoga Investment Corp (NYSE: SAR) is a business development company (BDC) that provides debt and equity financing to middle-market companies in the United States. It makes money primarily through interest income on floating-rate first lien term loans extended to portfolio companies, supplemented by income from equity co-investments and structured finance securities. As of February 28, 2026, the total investment portfolio had a fair value of approximately $1.109 billion across a diversified set of industries including Healthcare Services (8.4% of portfolio), Structured Finance Securities (6.6%), Consumer Services (6.0%), Restaurant (5.0%), Real Estate Services (4.7%), and HVAC Services and Sales (4.7%), among others. The company is externally managed by Saratoga Investment Advisors and also operates Saratoga Investment Corp. CLO 2013-1, Ltd., a collateralized loan obligation vehicle. Total long-term debt obligations stood at $739.375 million as of the filing date, spanning SBA debentures, multiple series of publicly traded notes, and two credit facilities.

Revenue model

Interest income from floating-rate first lien term loans (priced at spreads over 1M or 3M USD Term SOFR), payment-in-kind interest on select loans, and investment income from equity interests and structured finance securities held in the portfolio.

Products and services

First lien term loans, delayed draw term loans, revolving credit facilities, equity co-investments (common units, preferred units, class A units), and investments in structured finance securities including CLO debt tranches (BB and BBB rated) and subordinated CLO notes.

Customers and end markets

Middle-market companies across Healthcare Services, Consumer Services, Restaurant, Real Estate Services, HVAC Services and Sales, Healthcare Software, Custom Millwork Software, Research Software, Education Services, Employee Collaboration Software, Surgical Benefits Management, Municipal Government Software, Dental Practice Management, Financial Services, Education Software, Fire Inspection Business Software, Health/Fitness Franchisors, and Direct Selling Software, among others.

Value-chain role

Direct lender and equity co-investor to middle-market businesses; external investment manager (Saratoga Investment Advisors) sources, underwrites, and monitors portfolio investments; board members or observers placed at portfolio companies where appropriate.

Geographic exposure

United States middle-market companies; no international geographic breakdown disclosed in the filing excerpts.

Source: SEC 10-K, filed 2026-05-05

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