Medley has an established track record of constructing and managing portfolios of private debt investments. We believe that a well-structured portfolio of secured private debt investments in middle market borrowers provides attractive risk adjusted returns. Our private debt strategy aims to protect investor capital at all times, achieving predictable returns with low correlation to public debt and equity markets. We seek additional upside via warrants and equity participation.

We believe that our ability to target complex situations that are generally underserved by traditional bank lenders and to work directly with borrowers to create customized financing solutions enables us to deliver attractive risk-adjusted returns to investors.

Attractive Yield Opportunity

Returns to shareholders are generated through cash interest, accrued interest, fee income, as well as equity upside in the form of options, warrants, cash flow sharing, co-investment rights or other equity participation features.

Downside Protection

We generally structure transactions as secured loans supported by a security interest in the portfolio company’s assets as well as a pledge of the portfolio company’s equity. Our secured debt positions and corresponding covenant packages provides priority of return and also control over any asset sales, capital raises, dividend distributions, insurance proceeds and restructuring processes.

Predictability of Returns

Private debt transactions are structured to provide for periodic payments of principal and interest and repayment upon asset sales or restructuring. As such, private debt transactions are not dependent on the existence of robust M&A or public equity markets to achieve desired returns.