Saratoga Investment Corp.

Frequently Asked Questions About SAR

What does SAR invest in?

Saratoga Investment Corp. is a business development company specializing in leveraged and management buyouts, acquisition financings, growth financings, recapitalization, debt refinancing, and transitional financing transactions at the lower end of middle market companies. The fund structures its investments as debt and equity by investing through first and second lien loans, mezzanine debt, co-investments, select high yield bonds, senior secured bonds, unsecured bonds, and preferred and common equity. The fund prefers to invest in 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. The fund seeks to invest in the United States. The fund primarily invests between $60 million and $75 million in companies having EBITDA of $2 million or greater and revenues between $10 million and $150 million. It targets annual revenues between $8 and $250 million. The fund prefers to take a majority stake. The fund invests through direct lending as well as participation in loan syndicates.

What is the expense ratio of SAR?

An expense ratio for Saratoga Investment Corp. (SAR) is not available from our data sources — neither our market-data feed nor the SEC's structured prospectus and annual-report datasets report one for this share class. The fund's prospectus on the issuer's site carries the authoritative fee.

What is SAR's dividend yield?

SAR's trailing-twelve-month yield is 18.81%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of SAR?

Effective duration measures SAR's sensitivity to interest-rate changes — a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. SAR's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of SAR?

SAR's credit quality breakdown — the share of holdings rated AAA through CCC and below — is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.

What is the yield to maturity of SAR?

Yield to maturity (YTM) is the total return you'd earn from SAR if every bond in the portfolio is held to maturity at the current price. SAR's YTM is published on the fund's factsheet on the issuer's website — it differs from the trailing-12-month yield because YTM reflects current bond prices rather than historical income paid.