Strategy Overview
Divit Finance focuses on directly originated loans to sponsor‑backed and founder‑owned businesses in defensible sectors such as healthcare, business services, and niche manufacturing. We emphasize structures with strong collateral, conservative leverage, and clear deleveraging paths.
- Target company EBITDA typically between $15–75 million.
- First‑lien, unitranche, and select second‑lien structures.
- Floating‑rate coupons with call protection where appropriate.
- Robust financial reporting and information rights for active monitoring.
Typical Uses of Capital
Our capital supports a range of event‑driven situations where speed, certainty, and structuring expertise are critical.
- Leveraged buyouts and recapitalizations.
- Add‑on acquisitions and roll‑up strategies.
- Growth capital with contractual downside protection.
- Refinancing of legacy capital structures.
Risk Management
We underwrite to stressed cases, not just base‑case projections, with a focus on capital preservation.
- Maintenance covenants calibrated to realistic performance scenarios.
- First‑lien security packages and robust documentation.
- Close coordination with sponsors and management teams.
- Scenario analysis and downside modeling for every transaction.
Role in Portfolios
Direct lending is designed as a core income allocation within private markets portfolios, offering floating‑rate cash yields, contractual amortization, and equity‑like upside via fees and warrants in select situations.
For many clients, this strategy complements more opportunistic credit and equity exposures, helping to stabilize overall returns across cycles.