Healthcare companies are forever growing, and can be expected to grow that much more in the years ahead, to meet the needs of an aging U.S. population. It is expected that by 2025, the sector will account for an astounding 19.9 percent of the U.S. GDP, as national health spending has risen by an average of 5.6 percent per year since 2016.
Saratoga Investment Corp. has developed a distinguished reputation as one of the top healthcare lending companies to meet that need. While some traditional lenders may balk at the risk factors and complex reimbursement models of healthcare lending, Saratoga has been active in this sector for decades, providing the sort of flexible lending options that banks simply cannot.
Saratoga Investment Corp. is a publicly traded (NYSE: SAR) business development
company (BDC). We provide customized financing solutions for middle market companies located in the United States. Our investment professionals have a combined 80+ years of experience investing over $4 billion in middle market businesses.
Financing we offer:
- Leveraged & Management Buyouts
- Recapitalizations
- Growth Financings
- Acquisition Financings
- Transitional Financings
We work with healthcare businesses in the following sectors:
- SaaS
- Media
- Operational Support & Services
- Practice Management
- Medical Equipment and Sales
- Home Care
- Dental Care
The key quantitative parameters we consider when engaging in healthcare lending are free cash flow and EBITDA. We typically work with companies with revenues of between $8 million and $250 million and EBITDAs of $2 million or more.
Strong leadership is one of the primary qualitative parameters we take into account. We also gravitate toward those enterprises that hold a leading marketing position or a niche with a sustainable competitive advantage. And finally, we seek out those companies that exhibit strong growth potential, and those that can weather the fluctuations of business cycles.
For more information about our healthcare lending opportunities, contact Rich Petrocelli or Marissa Mann.
Why healthcare lending is necessary
Healthcare is a growing industry, in large part because the demand for healthcare is on the rise. The Baby Boomers, one of the largest, most influential generations in U.S. history, are not getting any younger. That will present untold challenges to this sector in the years ahead.
It is expected, in fact, that the number of Americans 65 and older, which stood at 52 million in 2018, will reach 95 million by 2060. To keep pace, healthcare companies will need the kind of capital a leading healthcare lender like Saratoga can provide.
Saratoga offers healthcare companies such solutions as subordinated debt, first and second lien loans, one‐stop and unitranche structures and equity co‐investments.
To see if you qualify for a healthcare loan, contact Rich Petrocelli or Marissa Mann.