Business development company that invests in middle-market companies through direct lending and other investments.
Portman Ridge Finance Corporation is a business development company that focuses on making strategic investments in various forms of debt and equity within middle market companies. The firm specializes in unitranche loans, first lien loans, second lien loans, subordinated debt, and equity co-investments, particularly in buyout scenarios. Its investment strategy spans a broad range of sectors, including healthcare, cargo transport, manufacturing, industrial services, logistics, media, real estate, education, automotive, agriculture, aerospace, packaging, electronics, finance, consumer products, business services, utilities, insurance, and food and beverage. Portman Ridge typically invests between $1 million and $20 million in its portfolio companies, aiming to support their growth and operational needs.
The company offers various loan products tailored to meet the specific requirements of its portfolio companies. These include senior secured term loans ranging from $2 million to $20 million with maturities of five to seven years, second lien term loans from $5 million to $15 million maturing in six to eight years, senior unsecured loans from $5 million to $23 million maturing in six to eight years, mezzanine loans from $5 million to $15 million with maturities of seven to ten years, and equity investments between $1 million and $5 million. Portman Ridge targets companies with EBITDA between $5 million and $25 million, while for debt securities, it looks at firms with EBITDA between $10 million and $50 million and/or total debt ranging from $25 million to $150 million. The company invests in both minority and majority equity positions, often in collaboration with private equity sponsor partners.
In the context of the rapidly evolving financial landscape, including the emergence of cryptocurrencies, Portman Ridge Finance Corporation maintains its focus on traditional middle market investments. While cryptocurrencies represent a burgeoning sector with significant potential for alternative investment opportunities, Portman Ridge continues to adhere to its established investment strategies. By concentrating on sectors and companies where it has considerable expertise, the firm aims to provide stable and consistent returns to its investors. This disciplined approach allows Portman Ridge to effectively manage risk and leverage its deep industry knowledge to identify and capitalize on lucrative investment opportunities within its target markets.