Saratoga Investment Corp. is a specialty finance company and business development company focused on senior and unitranche loans, mezzanine debt, and some equity in U.S. middle-market companies with EBITDA of $2–$50 million. As of February 28, 2026, it reported total assets of $1,139.3 million and investments in 49 portfolio companies, plus structured finance and joint venture positions.
The portfolio was 82.1% first lien term loans, 3.9% second lien, 1.5% unsecured loans, 4.9% structured finance securities and 7.6% equity interests, with a weighted average investment yield of about 9.6%. Total return based on market value was 1.54% versus 27.17% a year earlier, while total return based on NAV per share was 7.50% versus 10.11%.
The company is externally managed by Saratoga Investment Advisors, operates as a regulated investment company for tax purposes, uses SBA-licensed SBIC subsidiaries and a senior loan joint venture, and pays a base management fee of 1.75% of gross assets plus incentive fees, while distributing taxable income through quarterly dividends and a dividend reinvestment plan.
Saratoga Investment Corp. issued $25,000,000 of 7.25% Notes due 2029 in a private placement to an institutional investor. The notes pay 7.25% annual interest quarterly and mature on April 10, 2029, with an option for the company to extend maturity to October 10, 2029.
The company received approximately $24,275,000 in net proceeds, based on a 98.00% purchase price and about $225,000 of expenses, and plans to use the funds for general corporate purposes. The notes are unsecured, rank pari passu with other unsecured debt, are callable at par plus interest on or after April 10, 2027, and may be increased in additional private offerings up to an aggregate $50,000,000 by July 10, 2026.
The indenture includes asset coverage and dividend covenants tied to the Investment Company Act of 1940 and provides noteholders with a repayment option if specified management changes occur or if certain regulatory asset coverage requirements are breached.