Investment Objective and Strategy
Saratoga's objective is to achieve superior returns through private equity investments in middle market manufacturing , media and telecommunications, and business services companies which exhibit outstanding management, significant growth prospects, leading market positions, proprietary competitive advantages and an identifiable exit strategy.
Saratoga invests in partnership with management, either existing or with talented executives associated with Saratoga through its Executive Program. In all cases, portfolio companies are run by strong managers who are fully supported by Saratoga and motivated by a substantial personal investment in the company.
Historically, Saratoga has been the lead investor in all of its acquisitions, either with sole voting control or in partnership with like-minded investors and in all cases with board representation. More recently, Saratoga has expanded its criteria to include strategic minority interests in publicly held companies. One of Saratoga's distinguishing feature has been its success across a wide range of industries and transactions, including corporate buy-outs, build-ups, and consolidations which reflects its broad and diverse relationships and its comprehensive investment experience. The majority of Saratoga's investments to date have been negotiated transactions sourced through a propriety network of corporate, institutional and individual relationships. Saratoga will only participate in auction processes when it possesses a clear competitive advantage.
Saratoga minimizes risk and optimizes return through a careful analysis of a company's business plan and an expert tailoring of the capital structure to meet the operating needs and growth strategy of the acquired business. Saratoga transactions generally involve 25% or more equity in the capital structure, with certain investments initially involving as much as 100% equity capitalization.
Historically, gains have been realized over a three to seven year investment horizon. Exit strategies are developed cooperatively with management and may include public offerings, recapitalizations, or outright sales.
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