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Avala BDC - Target Portfolio Companies
Who We Work With
Middle Market Companies
Our investment objective is to provide our shareholders with current income and, to a lesser extent, capital appreciation, primarily through debt investments and, to a lesser extent, equity investments. Our investment strategy will focus primarily on investments in middle-market companies in the United States. We use the term “middle-market” to generally refer to companies which may exhibit one or more of the following characteristics: number of employees between 10 and 2,000; revenues between $10 million and $300 million; annual earnings before interest, taxes, depreciation and amortization (“EBITDA”) between $1 million and $50 million; generally, private companies owned by private equity firms or founders; and enterprise value between $10 million and $500 million. We are not necessarily constrained to rigid application of these criteria and may seek investments in companies that may fall outside these parameters.
Qualified and Non-Qualified Investments
While we expect our primary focus to be on middle-market companies in the United States, including senior secured loans, which includes first-lien, second-lien and unitranche loans as well as subordinated loans and, to a lesser extent, warrants and other minority equity securities. We may invest up to 30% of our portfolio in opportunistic investments of non-eligible portfolio companies (e.g., assets that are not “qualified assets”). Specifically, as part of this 30% basket, we may consider investments in debt of companies located outside of the United States and debt and equity of public companies that do not meet the definition of eligible portfolio companies because their market capitalization of publicly traded equity securities exceeds the levels provided for in the 1940 Act.