PRIVATE EQUITY:
CREDIT
Our target portfolio companies exhibit some or all of the following characteristics at the time of the initial investment, although the majority but not all of our portfolio companies will meet these criteria:
• EBITDA of $15 – $200 million;
• Defensible, leading market positions;
• Unique or specialized strategy or other meaningful barriers to entry;
• Low technology or market risks;
• Diversified product offering, customer and supplier base;
• Stable cash flows;
• Low capital expenditure requirements;
• General avoidance of what we believe to be cyclical industry sectors;
• Operations predominantly based in the United States, Canada and Mexico;
• Typical loan-to-value of up to 60%; and
• Experienced management teams with successful track records.
Over the long term, our credit investments (in absolute dollar weight) will include:
• 70-80% first lien, senior secured loans
• 20-30% predominately in second lien senior secured term loans but also higher-yielding assets including mezzanine debt, unsecured debt and equity investments.
In addition, our investments in the aggregate are generally expected to comply with the following guidelines, (measured as a percentage of our credit asset class):
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• Each loan between 1% - 2% of total debt portfolio size;
• <20% in any industry/sector
• <10% portfolio companies outside North America
• Leverage of 1x-1.25x (as measured by debt-to-equity, subject to a cap of 2.0x), meaning that for every $1 of equity, we will target $1-$1.25 of debt and senior securities.
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Key themes of our investment strategy include:
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Maintaining an appropriate allocation of first lien senior secured and second lien senior secured debt to allow us to achieve attractive returns within the targeted risk profile, while investing prudently based on the market and economic environment;
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Performing thorough fundamental business and industry due diligence;
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Conducting in-depth due diligence on management teams and sponsors to bolster our position that we are investing in businesses led by experienced professionals;
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Structuring investments focused on providing us with security, covenant protection and current income while seeking to provide adequate liquidity and flexibility to operate;
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Active management of our portfolio companies through consistent dialogue with management and/or sponsor, review of financial reporting, monitoring of key performance indicators and evaluation of exit strategies.

ASSET CLASS:
INVESTMENT YEAR:
PORTFOLIO %
BLACKSTONE
PRIVATE CREDIT
2021 & 2023
57.2%

ASSET CLASS:
INVESTMENT YEAR:
PORTFOLIO %
FORTRESS INVESTMENTS
PRIVATE CREDIT
2020
7.2%

ASSET CLASS:
INVESTMENT YEAR:
PORTFOLIO %
FRANKLIN TEMPLETON
PRIVATE CREDIT
2021
14.2%

ASSET CLASS:
INVESTMENT YEAR:
PORTFOLIO %
MORGAN STANLEY
PRIVATE CREDIT
2022
21.4%