Our portfolio will generally consist of privately owned businesses with a demonstrated track record, strong management, a differentiated business model, and high quality earnings.
Middle market companies are significant contributors to our country’s growth. However, many of these companies lack access to capital. In particular, the inefficiencies present in the lower middle market allow experienced investors the opportunity to generate attractive risk adjusted returns. By focusing on established lower middle market private companies, we manage a balanced portfolio comprised of debt and equity securities that together balance yield with enhanced returns through direct equity or equity-like participation.
Private equity has long been the domain of large institutional and high net worth investors that use the asset class to diversify their portfolios and create an avenue for potential out performance relative to their annual return targets. In 1980, Congress created the BDC under the Investment Company Act of 1940 that allows average investors direct access to private equity through a professionally managed and regulated entity. Historically, BDCs invested almost exclusively in debt securities. Triton Pacific Investment Corporation seeks to offer investors an opportunity to invest in core private equity by carefully constructing a portfolio of private debt, equity, and structured securities that can reduce risk while retaining upside potential.
OUR INVESTMENT TEAM
Beginning more than 15 years ago, the principals of Triton Pacific Capital Partners, LLC (“Triton Pacific”) were early pioneers in the offering of core private equity investments to individual investors through independent financial advisors. Having successfully raised and deployed several private equity funds over the past decade, the principals of TPIC’s adviser have deep domain knowledge and expertise in lower middle market private equity investing. As a public reporting Business Development Company, we seek to further democratize access to private equity for individual investors.
Our adviser and its affiliates have made investments in private companies with an enterprise value in excess of $500 million at time investment. TPIC is externally managed by Triton Pacific Adviser who maintains a broad network of relationships and has deep expertise in originating, structuring, executing, and managing private equity investments. TPIC’s adviser and sub-adviser manage more than $5 billion of debt and private equity investments.
TPIC's strategy of investing in both
debt & equity allows it to create a diversified portfolio that targets
Growth & Income.
TPIC takes a unique, hybrid approach to Private Equity investing, with a strategy that includes Buyouts, Structured Equity/Debt, and Mezzanine Debt Investments in lower middle market private companies. With flexibility to invest in debt and equity securities, TPIC is able to better match the risk/return profile of each investment. The following represent the types of investments we may make as part of a diversified Private Equity portfolio.
Investments in the purchase of all or a portion of the equity of a private company. This may be done in conjunction with management, operating partners, or other middle market private equity firms.
This unique security is structured as preferred equity or debt to reduce risk while also participating in meaningful upside opportunity.
Debt investments that typically provide a high cash interest rate, accrued interest, and typically some equity participation through warrants or other equity-like features.
TPIC intends to generate the majority of its current income by investing in diversified portfolio of senior secured loans, second lien secured loans, and, to a lesser extent, subordinated loans of private U.S. companies through its adviser and sub-adviser relationships. These loans are purchased through secondary market transactions or directly originated from target companies. In connection with our debt investments, we may on occasion receive equity interests such as warrants or options as additional consideration. The following represent the types of loans we may invest in as part of our corporate debt portfolio:
Senior Secured & Second
Lien Secured Loans
Secured loans to private companies that generally have stated terms of three to seven years. Because these loans have priority in payment among an issuer’s security holders (i.e., they are due to receive payment before bondholders and equity holders), they carry the least potential risk among investments in the issuer’s capital structure. Further, these investments are secured by the issuer’s assets, and generally carry restrictive covenants aimed at ensuring repayment before unsecured creditors. In addition, most senior secured debt issues carry variable interest rate structures, meaning the securities are generally less susceptible to declines in value experienced by fixed-rate securities in a rising interest rate environment.
Subordinated debt investments usually rank junior in priority of payment to senior secured loans and second lien secured loans and are often unsecured, but are situated above preferred equity and common stock in the capital structure. In return for their junior status compared to first lien and second lien secured loans, subordinated debt investments typically offer higher returns generated through higher interest rates and often a warrant issuance that is exercisable into equity ownership.
Triton Pacific Investment Corporation
10800 Midlothian Tpke, Suite 128
Richmond, VA 23235
TOD BENEFICIARY FORM
CHANGE OF REPRESENTATIVE
CHANGE OF CUSTODIAL FIRM
Triton Pacific Investment Corporation
6701 Center Drive | 14th Floor | Los Angeles | CA | 90045 | Tel: 310.943.4990
32451 Golden Lantern | Suite 304 | Laguna Niguel | CA | 92677 | Tel: 949.429.8500
10800 Midlothian Turnpike | Suite 128 | Richmond | VA | 23235 | Tel: 804.893.3712