Saratoga Investment Corp. (NYSE:SAR) Q2 2024 Earnings Call Transcript

And so that plus all of the efforts that we’ve made on the business development side have kept our pipeline pretty full. So there’s not really anything that I could point to that would say, oh, thematically, we’re seeing X in the marketplace, and we’re not comfortable with that. We’re taking the same approach to underwriting that we have historically.

Erik Zwick: Thanks. That’s helpful. And then the only other question I had, a little bit kind of going back to the debt service coverage ratio discussion from a couple of questions ago. Curious kind of looking at it from the other perspective or kind of other side of the coin. Curious if you could just give any color or characteristics in terms of recent EBITDA growth for your portfolio companies or average or other kind of KPIs that you look at that have helped these companies maybe offset higher interest burden as well as inflationary pressures?

Michael Grisius: If there’s one theme I would say that is common across our portfolio is that we look for businesses that have differentiated business models and often benefit from secular growth trends, i.e., they have a better mousetrap and they’re performing well. And therefore, even if the macro environment is a bit challenged, now this isn’t 100% the case across every portfolio of the company, but thematically, in general, those businesses that we gravitate toward are ones that are going to perform pretty well even in a challenging environment, and that’s what we’re seeing in our portfolio.

Erik Zwick: And so safe to assume that you are seeing kind of growth across the portfolio in terms of EBITDA and other metrics?

Michael Grisius: Yeah. I think as I’ve said, the vast majority of our portfolio is up at or above where they were in prior periods.

Erik Zwick: Okay. Great. Thanks for taking my questions today.

Michael Grisius: Thank you.

Operator: Thank you. And I’m showing no further questions in the queue at this time. I would now like to turn the call back over to Mr. Oberbeck for any closing remarks.

Christian Oberbeck: Well, we want to thank everyone for joining us today, and we look forward to speaking with you next quarter. Thank you.

Operator: Ladies and gentlemen, that does conclude our conference for today. Thank you for your participation. You may now disconnect.