We believe the leveraged loan market presents an attractive asset class for investors who are seeking superior risk-adjusted returns. Our long-standing relationships with agent banks and equity sponsors provide us with broad market access to the leveraged loan market. Additionally, our long-term experience in both the middle market and broadly syndicated loan market enables us to maintain a disciplined approach to credit while building an attractive and diversified portfolio.

When evaluating new investment opportunities our primary focus is on analyzing the sustainability of free cash flow and related business value.

We prefer the following issuer characteristics:

• Experienced management team

• Stable industry dynamics

• Strong, defensible market position

• Sound financial performance

• Avoid cyclical industries, turnarounds, and rapid growth

• Diverse customers, products, suppliers and geographic markets

• Viable exit strategy and/or capital market alternatives

• Equity sponsorship, especially for middle-market companies