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  • Healthcare Asset-based Lending: Gemino Healthcare Finance

    Business Overview

    • Strategic portfolio acquisition by Solar Senior Capital in 2013

    • Gemino Senior Secured Healthcare LLC (“Gemino”) is a commercial finance company that specializes in making primarily secured, asset-based loans for small and mid-sized companies operating in the healthcare industry

    • Typically provides senior debt financing starting at $2mm primarily in the form of revolving lines of credit secured by accounts receivable

    • Core team averages 15 years of healthcare finance experience and has originated ~$1.6bn of financing commitments

    • Headquartered in Philadelphia, operates satellite business development offices in Atlanta, GA and Chicago, IL and employs ~20 professionals

    Borrower Profile Characteristics

    • Small and mid-sized healthcare service providers across a wide range of industries including Hospitals, Skilled Nursing Facilities, Home Medical Equipment, Medical Laboratories, Surgery/Outpatient Care

    • Typically, companies are facing some form of stress or lack of available capital from traditional banks due to recent regulation

    Typical Transaction Profile

    • Senior secured, receivables-based underwriting

    • Collateral includes Medicare, Medicaid and private insurance accounts receivable

    • Floating rate

    • Fees, including upfront, unused, monitoring and float

    • Meaningful maintenance covenants

    Financial & Portfolio Snapshot

    As of September 30, 2018
    Structure: Portfolio Company
    (Pass-thru Entity)
    Investment Portfolio: ~$108 million
    # of Issuers: 33 Issuers
    Average Position Size:  $3.3 million
    % of Investments Secured: 100%
    % of Investments Floating Rate Coupon: 100%
    % Healthcare Exposure: 100%
    Weighted Average Asset-level Yield:   ~11.4%(1)
    (1)Represents total interest and fee income for the month of September 2018 against the average portfolio for the fiscal month, annualized.
  • Portfolio Highlights
    Portfolio Composition
    Investment Strategies
         Cash Flow Lending
         Asset-Based Lending
              Healthcare Specialized ABL
              Traditional ABL