INVESTMENT APPROACH

Target Investments

SCP seeks to generate consistent, current income by investing primarily in senior secured cash flow, specialty finance and asset-based loans to middle market companies. On a selective basis, we make control investments in specialty finance companies.

 

Sourcing

SCP’s investment professionals utilize their deep relationships with middle market financial sponsors, intermediaries, and management teams to generate proprietary investment opportunities. We collaborate with our borrowers to provide customized financing solutions. Our senior investment professionals are involved at each stage of the investment process from origination through repayment.

 

Comprehensive Due Diligence

We take a private equity approach to credit investing that incorporates extensive due diligence and draws upon the investment experience, industry expertise, and network of contacts of our senior investment professionals, who on average have over 20 years of experience. A critical component of our analysis is focused on downside protection and a borrower’s ability to meet its debt service requirements.

 

Holistic Approach

SCP seeks to identify the most attractive risk-adjusted return investment opportunity across a borrower’s capital structure. We take a holistic approach to potential transactions and evaluate the relative attractiveness of financing a borrower’s cash flow and/or its assets. We believe the flexibility to offer a range of financing solutions provides SCP with the best opportunity to protect capital and earn a return commensurate with the risk over multiple economic cycles.

 

Risk Management

SCP manages credit risk by applying a rigorous, hands-on underwriting process to each investment. Its comprehensive approach continues with a disciplined monitoring process, which includes ongoing dialogue with company management and financial sponsors.