Henri Steenkamp dives into the total assets and key stats for Saratoga Investment Corp. (SAR) as of January 2016.

1. China’s leading provider of advanced testing technologies and related services
Ticker NYSE: SAR Fiscal Year End February 28
IPO 2007 Recent Stock Price $14.71 (as of 1/14/2016)
Diluted S/O 5.69 million (as of 1/14/2016) Market Cap $82.91 million (as of 1/14/2016)
INVESTMENT PROCESS
 Debt: investment size $5-20MM
 Equity co-investment: size $1-3MM
 Typical coupon: 9%-14%
 Average maturity of 5 years
 Conservative capital structure
 Unitranche target IRR: 9%-14%
 Mezzanine target IRR: 13%-17%
 Equity target IRR: >25%
 Use of proceeds - acquisitions, MBOs, LBOs, recaps
and growth strategies (no turnaround situations)
 Later stage, small and middle market companies ($8-
150MM in revenue, $3-20MM in EBITDA)
 Strong margins and free cash flow
 Exceptional management team with a meaningful stake
in the business
 Leading market position or niche with sustainable
competitive advantages
 Recurring or repeSARble revenue with loyal customers
and attractive margins
 Modest capital expenditures and working capital
requirements
 Established, well defined industries with solid
growth characteristics in healthy end markets
 Business services, light manufacturing, franchise
businesses, consumer and healthcare services
industries
 High barriers to entry
 No high R&D, early stage technology, or pure
commodity industries
 Ability to withstand business cycles
Types of Deals
Company
Characteristics
Industry Profile
• Headquartered in New York, Saratoga Investment Corporation is a publicly
traded Business Development Company.
• Total assets under management for BDC and SBIC combined has grown
from $95M in 2010 to $241M - CLO has additional $300M AUM invested
• Available Fund investment capacity of $143M ($86M in SBIC) with ability
to grow Fund total assets by additional 60% (excluding CLO assets)
without new external financings.
• Fund currently trading at 65% of NAV, ability to increase value
significantly as benefits of scale are realized and the impact of new
quarterly dividend takes effect
• Business Development Company (“BDC”)
• Small Business Investment Company (“SBIC”)
• Collateralized Loan Obligation fund (“CLO”)
WHY ARE WE DIFFERENT?
• ►Growing dividend
Paying at current dividend yield of approx. 10.7%, more than doubled quarterly dividend over past
12 months
• ►
Industry-leading return on
equity
Year-to-date return on equity of 12.9% factors into both investment income and net gains/losses
• ►
Ample low-cost, liquidity
available
Large borrowing capacity still at hand through both credit facility and SBA debentures relative to
competitors – can grow current asset base by 60%
• ►
Strong earnings per share and
NII Yield
Attractive NII per share and high teens ROE generated from strong risk-adjusted portfolio returns
and SBIC 2-to-1 leverage
• ►
Commitment to AUM
expansion
Assets under management has steadily grown 153% since FY 2012 with strong originations despite
significant redemptions
• ►No realized write-downs
High quality portfolio a result of careful and disciplined capital deployment. Numerous BDCs now
suffering significant value adjustments
• ►Limited oil and gas exposure
Will not be facing significant write-downs as a result of major direct exposure to energy/oil/gas
investments
$1.00
DIVIDENDS CONTINUE TO RISE
FUND OVERVIEW THREE DISTINCT BUSINESS OFFERINGS
• Grown Fund from $95M assets under management (“AUM”) in 2010 to
$241M today (excluding CLO assets) - CLO has additional $300M AUM
invested
• Management agreement pays out 1.75% base management fee, as well as
20% incentive fee on Net Investment Income (“NII”) exceeding 7.5% and
20% on “incentive fee capital gains”
FUND MANAGER OVERVIEW
0.18
0.22
0.27
0.33
0.36
0.40
0.46
Q2
2015
Q3
2015
Q4
2015
Q1
2016
Q2
2016
Q3
2016
Average
NII/share per
quarter for FY
2016

2. FOR ADDITIONAL INFORMATION:
At SAR Investment Corporation
Henri Steenkamp, Chief Financial Officer
hsteenkamp@saratogapartners.com
Investor Relations
The Equity Group Inc.
Jeremy Hellman, Senior Associate Adam Prior, Senior Vice President
(212) 836-9626 (212) 836-9606
jhellman@equityny.com aprior@equityny.com
This may contain statements about future events and expectations that constitute forward-
looking statements. Forward-looking statements are based on SAR managements’ beliefs,
assumptions and expectations of future events and economic performance, considering
information currently available to management. These statements are not statements of
historical fact. Forward-looking statements involve risks and uncertainties that may cause
actual results, performance or financial condition to differ materially from the expectations
expressed or implied in any forward-looking statement. SAR does not assume any obligation
to update or revise forward-looking statements, whether as a result of new information,
future events or otherwise. Anyone receiving this is encouraged to review all filings made by
the Company with the Securities and Exchange Commission. The information contained
herein is being provided for informational purposes only and does not constitute a
solicitation to buy or sell any securities. The Equity Group provides investor relations
services for SAR and other clients. The Equity Group, its officers or employees may have a
position in the securities of these companies or may have received options to acquire such
securities.
SIGNIFICANT DRY POWDER AVAILABLE
PORTFOLIO COMPOSITION AND YIELD
Portfolio Composition – $241m
(Based on Fair Values
as of November 30, 2015)
Portfolio Yield – 11.2%
(Weighted Average
Current Yield of Existing Portfolio)
DIVERSIFICATION ACROSS INDUSTRY AND GEOGRAPHY
Investments diversified geographically Investments across 12 distinct industries
* Ability to grow AUM by over 60% without any new external financing
Syndicated
6.6%
First Lien
60.4%
Second
Lien
18.1%
Structured
Finance
Securities
6.6%
Common
Equity
8.9% Syndicated
7.2%
First Lien
10.9%
Second
Lien
10.6%
CLO
18.9%
Common
Equity
N/A
Southeast
Midwest
Northeast
West
Other
International Business
Services
Consumer
Services
Software
as a
Service
Healthcare
Services
Media Structured
Finance
Metals
Automotive
Aftermarket
Consumer
Products
Food and
Beverage
Building
Products
Education