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Think of Saratoga Investment as a publicly-traded KKR for mid-sized American businesses. They're an investment firm that provides both debt and equity financing to help growing private companies with revenues up to $250 million.

They act like a specialized bank that also takes ownership stakes in private American companies. Unlike traditional banks, Saratoga provides flexible debt alongside equity investments to fund growth, buyouts, and other strategic needs for businesses generating $8 million to $250 million in revenue.

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• Secured Debt Financing: Providing capital through first and second lien loans and senior secured bonds, which are backed by collateral.
• Mezzanine Debt Financing: Offering subordinated debt instruments that often include an equity component, bridging the gap between senior debt and equity.
• Unsecured Debt Financing: Investing in unsecured bonds and select high yield bonds, which are not backed by specific collateral.
• Equity Investments: Taking ownership stakes in companies through preferred and common equity, sometimes as co-investments.

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Saratoga Investment Corp. (SAR) is a business development company (BDC) that provides debt and equity financing to lower-middle market companies. Therefore, its "customers" are the companies that seek and receive this financing or investment.

Saratoga Investment Corp. primarily sells its financing and investment services to other companies. However, these are generally not large, publicly traded companies. Instead, they are private, lower-middle market companies that typically do not have public stock symbols. The firm invests in companies with EBITDA of $2 million or greater and revenues of $8 million to $250 million, and it often prefers to take a majority stake.

Given the nature of its business as a direct lender and investor in private companies, individual customer company names and symbols are not publicly disclosed in the same way as for companies selling products or services to the end consumer or large corporations. Instead, Saratoga Investment Corp. serves a diverse range of companies across various industries. The categories of companies it serves are:

• Aerospace
• Automotive Aftermarket and Services
• Business Products and Services
• Consumer Products and Services
• Education
• Environmental Services
• Industrial Services
• Financial Services
• Food and Beverage
• Healthcare Products and Services
• Logistics, Distribution, Manufacturing
• Restaurants Services, Food Services
• Software Services, Technology Services
• Specialty Chemical
• Media and Telecommunications

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Chris Oberbeck, Chairman of the Board, Chief Executive Officer & President

Chris Oberbeck has over 25 years of experience in leveraged finance, encompassing distressed debt and private equity. He serves as the Managing Member of Saratoga Investment Advisors, LLC, the company’s investment adviser, and as the Chief Executive Officer and President of Saratoga Investment Corp. Mr. Oberbeck is also the Managing Partner of Saratoga Partners, a middle-market private equity investment firm, and has been a member of its investment committee since 1995, assuming management responsibility for the firm in 2008. He co-managed Saratoga Partners since 1995, joining from Castle Harlan, Inc., a corporate buyout firm, where he was a Managing Director and led successful investments in manufacturing and financial services companies after joining at its founding in 1987. Prior to Castle Harlan, he worked in the Corporate Development Group of Arthur Young and in corporate finance at Blyth Eastman Paine Webber. Mr. Oberbeck has served as a director for numerous middle-market companies during his tenures at Saratoga Partners and Castle Harlan.

Henri Steenkamp, Chief Financial Officer, Chief Compliance Officer, Treasurer & Secretary

Henri Steenkamp brings over 15 years of finance experience to his roles as Chief Financial Officer, Chief Compliance Officer, Treasurer, and Secretary of Saratoga Investment Corp. and Saratoga Investment Advisors, LLC. He is also a Director of the company. Before joining Saratoga, Mr. Steenkamp held the position of Chief Financial Officer at MF Global from April 2011 to January 2013, and prior to that, he served as Chief Accounting Officer and Global Controller for four years. During his time at MF Global, he provided critical leadership during the company’s bankruptcy. His earlier career included eight years at PricewaterhouseCoopers, with four years in Transaction Services in New York, where he managed various capital-raising transactions and SEC public company reporting processes globally. He began his career in the audit division of PricewaterhouseCoopers in South Africa.

Mike Grisius, Co-Managing Partner and Chief Investment Officer

Mike Grisius possesses over 25 years of experience in leveraged finance and private equity. He is the Co-Managing Partner and Chief Investment Officer of Saratoga Investment Advisors, LLC. Before joining Saratoga, Mr. Grisius spent over 16 years as a Managing Director at Allied Capital Corporation, where he held several senior roles, including co-head of Mezzanine Finance and a member of both the Management Committee and Investment Committee. At Allied Capital, he was responsible for investing over $2 billion across various asset classes, building and leading teams focused on mezzanine and senior debt, control equity, and real estate mortgage debt investments. He also oversaw the structuring and management of Unitranche Fund, LLC, a $3.6 billion joint venture between Allied and GE Capital. Mr. Grisius has served on the boards of numerous middle-market companies. Earlier in his career, he worked in leveraged finance at Chemical Bank and held Senior Accountant and Consultant positions with KPMG.

Tom Inglesby, Managing Director & Portfolio Manager

Tom Inglesby serves as a Managing Director, Portfolio Manager, and Investment Committee Member at Saratoga Investment Corp., a position he has held since August 2010. He is a Managing Director of Saratoga Investment Advisors, LLC, and is primarily responsible for the management of the company's CLO investment activities. Mr. Inglesby has more than 20 years of experience in leveraged finance and private equity. Previously, he was a Senior Managing Director at GSC Group, where he served in various roles including senior managing director in the Recovery Investment Group, Head of the U.S. Corporate Debt Group (during which GSC raised and managed $5.6 billion in capital across 12 corporate credit investment funds), and a Managing Director focused on middle-market buyouts. He also served as President and a Director of Saratoga Investment Corp. from its inception through September 2008. Prior to GSC, Mr. Inglesby was a Managing Director with Harbour Group, specializing in acquisitions of manufacturing companies in fragmented industries. He also served as a Managing Director at the South Street Funds and a Vice President in the Merchant Banking Department at PaineWebber.

Charles Phillips, Managing Director & Portfolio Manager

Charles Phillips is a Managing Director & Portfolio Manager and Investment Committee Member at Saratoga Investment Corp. He also holds the title of Managing Director at Saratoga Partners, a middle-market private equity investment firm. Mr. Phillips has extensive experience investing in the debt and equity of middle-market manufacturing and service companies, including in private and public financings. He is responsible for portfolio management and oversight at Saratoga Investment Advisors, LLC. Prior to joining Saratoga Partners in 1997, Mr. Phillips worked in the corporate finance department at Dillon Read, focusing on mergers and acquisitions, advisory, and capital markets assignments across various industries. His earlier experience includes working at McCown De Leeuw & Co., a corporate buyout firm, and as a Summer Associate at McCown, DeLeeuw & Co.

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Key Risks to Saratoga Investment Corp. (SAR)

1. Interest Rate Risk: Saratoga Investment Corp. (SAR), as a business development company (BDC), is highly sensitive to fluctuations in interest rates. While a significant portion of its loan portfolio features floating interest rates, its reliance on fixed-rate funding in a potentially declining interest rate environment could lead to a reduction in net interest income. Conversely, rising interest rates could increase the company's borrowing costs, thereby impacting profitability.
2. Credit Risk and Economic Downturns: The company specializes in providing debt and equity financing to lower-middle market companies, which often have fewer financial resources and may be more vulnerable to economic downturns or industry-specific challenges. This exposure to the credit quality of its portfolio companies means that loan defaults, impaired investments, and reduced returns are significant risks, as demonstrated by past non-accruals that impacted the company's stock price and Net Asset Value (NAV).
3. Dividend Sustainability: Saratoga Investment Corp. faces a risk to the sustainability of its dividend, primarily because its net investment income has not consistently covered its dividend payouts in recent periods. This high dividend payout ratio raises concerns about potential future dividend cuts and could lead to a decline in the company's Net Asset Value (NAV).

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Saratoga Investment Corp. (SAR) operates within the U.S. middle market, specifically targeting the lower end of this segment, by providing financing for leveraged and management buyouts, acquisition financings, growth financings, recapitalizations, debt refinancing, and transitional financing transactions. The company primarily invests in debt and equity instruments for companies with EBITDA of $2 million or greater and revenues of $8 million to $250 million in the United States.

The addressable market for Saratoga Investment's services can be understood through several key metrics within the U.S. region:

• The overall U.S. middle market comprises approximately 200,000 firms. These companies generate over $10 trillion in annual revenues and employ around 48 million people.
• The lower middle market, where Saratoga Investment focuses, accounts for roughly 90% of these middle market companies. Within this segment, companies typically have EBITDA ranging from $5 million to $50 million or $7.5 million to $30 million, and annual revenues between $10 million and $150 million.
• The U.S. direct lending market, a primary channel for Saratoga Investment's activities, has seen substantial growth. Assets under management by direct lenders in the U.S. increased to over $1.6 trillion by 2024. This market was projected to be $1.34 trillion in 2025. By Q2 2024, the U.S. private credit market, which includes direct lending, totaled $1.34 trillion. As of November 2025, the private corporate loans market reached $1.7 trillion.
• Business Development Companies (BDCs) like Saratoga Investment collectively held total assets reaching $438 billion by the end of 2024.
• Looking more broadly at the potential, the total addressable market for private credit in the United States alone is estimated at a significant $30 trillion, indicating substantial growth potential within this asset class.

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Expected Drivers of Future Revenue Growth for Saratoga Investment Corp. (SAR)

Saratoga Investment Corp. (SAR) is expected to drive future revenue growth over the next 2-3 years through several key strategies centered on its investment activities and capital management:

1. Deployment of Significant Investment Capacity: Saratoga Investment possesses substantial available liquidity, including cash and undrawn credit facilities, which it plans to deploy into new investments. This deployment is anticipated to be accretive to Net Investment Income (NII) and facilitate asset growth, directly contributing to increased revenue.
2. Increased Deal Flow and New Originations: The company has reported a robust pipeline and an increase in deal flow, attributed to expanded business development efforts. This has resulted in new originations and the addition of new portfolio companies, which are expected to improve run-rate earnings.
3. Strategic Expansion and Diversification of the Investment Portfolio: Saratoga Investment continues to focus on establishing and nurturing high-quality sponsor relationships to identify and pursue attractive investment opportunities. This ongoing effort to expand and diversify its portfolio by adding new companies is a key driver for future revenue.
4. Leveraging Floating Interest Rate Assets: With approximately 98.7% of its loan portfolio structured with floating interest rates, Saratoga Investment is well-positioned to benefit from a stable or potentially increasing interest rate environment. This structure, along with interest rates currently being higher than all floors, can positively impact its net interest margin.
5. Maintaining Strong Credit Quality and Portfolio Resilience: The company's emphasis on high-quality underwriting and the resilience of its diversified portfolio, evidenced by low non-accrual rates, are crucial for sustaining solid earnings power. This focus minimizes potential losses and ensures a consistent income stream from its existing and future investments.

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Share Repurchases

• Saratoga Investment Corp. has an authorized open market share repurchase plan, most recently increased to 1.7 million shares of common stock, which was extended to January 15, 2027.
• As of February 28, 2025, the company had repurchased 1,035,203 shares at an average price of $22.05 per share, totaling approximately $22.8 million under this plan.
• Annual common stock repurchases amounted to $2.2 million in fiscal year 2024, $10.8 million in fiscal year 2023, and $2.5 million in fiscal year 2022.

Share Issuance

• Saratoga Investment Corp. has an at-the-market (ATM) offering program that allows for the sale of up to $300 million in common stock.
• From July 30, 2021, to November 30, 2025, the company sold 8,591,915 shares under the ATM program, generating approximately $225.4 million in net proceeds.
• As of March 13, 2026, approximately $170.4 million remains available for sale under the ATM program.
• Annual common stock issuances were $35.4 million in fiscal year 2025, $49.0 million in fiscal year 2024, and $26.8 million in fiscal year 2022.

Outbound Investments

• As a business development company, Saratoga Investment Corp.'s primary activity involves making debt and equity investments in U.S. middle-market companies.
• During the fiscal year ended February 28, 2025, the cost of investments made totaled $168.1 million, which included three new portfolio companies and 35 follow-on investments.
• For the fiscal fourth quarter of 2025, net deployments were $25.9 million, supporting one new platform investment and six follow-on investments.

Capital Expenditures

• Saratoga Investment Corp. has reported minimal to no significant capital expenditures over the last 5 years, with its 5-year Capital Expenditures % CAGR standing at 0%.
• Annual cash flow statements show no reported capital expenditures for fiscal years 2022, 2023, 2024, and 2025.