Investment Approach
At THL Credit, we work to complete transactions and establish relationships that are mutually beneficial. Relationships are important to us and we approach our investment business with a long term perspective. We seek to invest in companies with a proven business model run by experienced management teams with a vested interest in the business that have demonstrated and ability to generate consistent, positive free cash flow.
Our strategy includes an intensive and proactive sourcing of transactions targeting investments in both sponsored and unsponsored middle-market companies. Unsponsored investments are sourced from a variety of national, regional and local intermediaries—including commercial banks, investment banking firms, business brokers, accountants and lawyers. Sponsored investments are sourced via long-standing relationships and ongoing development of new relationships with referral sources and equity sponsors who view us as a partner in the transaction, rather than simply a source of capital to leverage returns.
We have a preference for investments where our capital is used to support organic growth, acquisitions, market or product expansion, and where the shareholders’ capital stays in the company. However, we will also invest in recapitalization and change of control transactions, but we expect that a substantial portion of the shareholders’ net worth remain in the business and be subordinated to our investment. THL Credit seeks investment opportunities where we can be the lead or sole investor in a transaction.
The principals at THL Credit bring a unique investment perspective and skill-set by virtue of their complementary collective experience as both debt and equity investors. In addition, the principals at THL Credit bring an active equity ownership mentality and intend to focus on adding value to portfolio companies through board representation, active monitoring and direct dialogue with management.
