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  • Traditional Asset-Based Lending - General Industry

    Business Overview

    • Strategic portfolio acquisition by Solar Senior Capital in 2017

    • North Mill Capital LLC (“NMC” or “North Mill”) is a leading asset-based lending commercial finance company that specializes in making senior secured asset-backed loans to small and medium-sized companies 

    • NMC was founded in 2010 by its senior management team who originally launched the strategy in 1995 and have worked together for more than 20 years across multiple organizations

    • Based in Princeton, NJ and currently has ~30 employees with BDO offices in Minneapolis, MN, Milwaukee, WI, Atlanta, GA, Chicago, IL, Newtown, CT and Needham, MA

    • Diversified portfolio with over 90 portfolio companies

    • 100% collateralized investment portfolio

    Borrower Profile Characteristics

    • Privately-owned, small to medium-sized businesses who have limited access to bank financing

    • Primarily US-based companies operating in the manufacturing, services and distribution industries

    • Borrowers typically have limited access to bank financing

    • NMC is typically the agent and sole lender to its borrowers

    Typical Transaction Profile

    • Size ranges from $500,000 to $10,000,000

    • Loan tenor is 1-to-3 years; average life of ~2.5 years

    • Financing structures primarily include asset-based loans (revolving) and factoring agreements (revolving)

    • Loans are collateralized on a first lien basis in all cases primarily by accounts receivable

            

    Portfolio Snapshot

    As of March 31, 2019
    Structure: Portfolio Company
    (Pass-thru Entity)
    Portfolio Size: ~$118 million
    Number of Issuers: 80
    Average Position Size:  $1.4 million
    % of Investments Secured: 100%
    % of Investments Floating Rate Coupon: ~78%
    Weighted Average Asset-level Yield: 13.1%(1)
    (1) Represents total interest and fee income for the three month period ending on March 31, 2019 against the average portfolio over the same fiscal period, annualized. 
    Portfolio Highlights
    Portfolio Composition
    Investment Strategies
         Cash Flow Lending
         Asset-Based Lending
              Healthcare Specialized ABL
              Traditional ABL