Bryce [Last Name Unknown]'s questions to Saratoga Investment Corp (SAR) leadership • Q1 2025
Question
Bryce from an unknown firm inquired about the current investment environment, specifically the potential for increased repayment activity and the factors needed to finalize new transactions, given the slow pace of new deal-making over the past year.
Answer
Chief Investment Officer Michael Grisius explained that low M&A volume and increased lender competition are causing spread tightening, which may lead to some payoffs. However, he affirmed that Saratoga's focus on the lower middle market provides ample long-term opportunities. Executive Henri Steenkamp noted that cash had increased post-quarter end due to a repayment but did not provide a pro forma balance. CEO Christian Oberbeck added that the strategy for managing undistributed income is still under review.