Direct Corporate Lending

Transaction Types: Primarily junior debt (second lien and mezzanine) and one-stop debt financings, with a limited appetite for preferred stock and non-control common equity investments, with proceeds used to facilitate: (i) growth, (ii) change of control transactions, (iii) strategic acquisitions and (iv) recapitalizations.

Investment Size: Typical investment size of $10 million to $40 million, with the ability to underwrite larger financings.

Typical Borrower Characteristics:

• Minimum annual EBITDA of $5 million
• Strong and financially aligned management and/or financial sponsor
• Strong market position / defensible niche position
• Defined barriers to entry
• Defined growth opportunities

Target Industries: We invest across a broad range of industries, seeking attractive risk adjusted investment opportunities while avoiding blanket prohibitions on any industries or investment types. Experience has shown us that some of the best opportunities arise from industry segments others avoid.

Geographic Focus: North America and, in some cases, Western Europe.

Transaction Process Our process is designed to achieve quick turnaround, early and honest feedback and maximum flexibility in developing creative structuring solutions. Our streamlined process allows us to be responsive to our borrowers' needs in terms of transaction timing. In addition, our permanent capital allows us to approach our lending relationships as partners, meaning we take a long-term and patient view.

DFR's Competitive Advantages:

• Experienced team of leveraged finance professionals augmented by significant in-house expertise in nearly all industry sectors provides us the ability to originate, structure and analyze attractive investment opportunities, including middle market bank loans, mezzanine debt and private equity co-investments in a timely manner.
• Proven ability to provide novel and creative financing solutions to meet the needs of our clients.
• Permanent capital allows us to approach lending relationships from the perspective of partnering with our clients.
• Flexibility in the management of our liabilities means we are not bound by minimum return on asset hurdles.