Middle Market Lending

Middle Market Lending

OFS Capital Management’s Middle Market Lending business provides capital solutions to middle-market U.S. companies that are underserved by traditional lenders. Our strategy is focused on partnering with proven management teams and owners to structure flexible financing solutions.

 

We offer senior secured loans, sometimes with minority equity co-investments, to accommodate an array of corporate initiatives, including:

  • Buyouts
  • Acquisitions
  • Liquidity Events
  • Growth Capital

Our Direct Lending Investment Process

Our skilled team handles all aspects of the direct lending process:

  • Sourcing / Origination

    A hands-on origination team across the U.S.

  • Screening / Initial Review

    Initial financial performance evaluations (historical and projected).

  • Due Diligence

    Detailed review of financials, management projections and modeling of OFS scenarios.

  • Transaction Approval

    Our experienced investment committee reviews and approves recommendations.

  • Servicing / Risk Management

    Loans are assigned internal credit ratings and trend indicators while we remain in close communication with management and sponsors.

Investment Guidelines

LOAN TYPES

Senior secured

FACILITY SIZE

$20 - $150 million

HOLD SIZE

$5 - $35 million

RATE

Generally floating rate

TERM

Typically 5 - 6 years

COVENANTS

Typically include, but not limited to, leverage and fixed charge coverage.

TRANSACTION TYPES:
  • Recapitalizations & Refinancings
  • Management Buyouts, LBOs
  • Acquisition Financings
  • Shareholder Liquidity Events
  • Growth Capital Investments
  • ESOPs
INDUSTRY FOCUS:

We invest in a broad array of industries, including, but not limited to:

Business Services
Durable Goods
Healthcare & Pharmaceutical
Capital Equipment
Transportation Cargo
Automotive
Construction & Building
Consumer Services