Recurring Revenue Lending
Investment Strategies

Characteristics of Potential Investments

Borrower: $8mm+ of Annual Recurring Revenue
80%+ Annual Gross Revenue Retention
50%+ Contribution Margin
Profitability: Not required, but path to profitability preferred
Covenants: Flexible covenants, typically based on recurring revenue and liquidity

Company Profile

  • Recurring revenue model (either SaaS or contractual)
  • Enterprise customer base with customer diversification
  • Mission critical solution with high retention rates
  • Highly profitable unit economics
  • Flexible cost structure
  • Institutional private equity ownership

Types of Investments

Elm Park is actively seeking the following types of debt investments:

  • Acquisition Financing
  • Growth Capital
  • Refinancing
  • Recapitalizations
  • Exit Loans
  • Leveraged Buyouts
  • Bridge Loans

Indicative Investment Parameters

Size: Investments of $10-50 million
Security: Typically secured, 1st - 2nd lien position
Interest: Primarily cash, partial deferred pay
Duration: 3-5 year maturity
Geography: Primarily U.S. and North America
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