Fund Manager Finder

Brook Taube

Fund Manager: Brook Taube

Classification: Debt/Bond

Company: Medley Management Inc.

Company Profile

Medley Management Inc. (NYSE: MDLY) is an asset management firm offering yield solutions to retail and institutional investors. Medley’s national direct origination franchise, with over 80 people, is a premier provider of capital to the middle market in the U.S.? As of June 30, 2015, Medley had in excess of $4.0 billion of assets under management in two business development companies, Medley Capital Corporation (NYSE: MCC) and the Sierra Income Corporation, as well as private investment vehicles.? Over the past 13 years, Medley has invested in excess of $5.7 billion to help over 300 companies grow across 35 industries in North America.

Strategy

Medley focuses on credit-related investment strategies, primarily originating senior secured floating rate loans ($25M-$150M) to private middle market companies in the United States that have revenues between $50 million to $1 billion. Medley focuses on lending directly to companies that are underserved by the traditional banking system and generally seeks to avoid broadly marketed investment opportunities. Medley sources investment opportunities through direct relationships with companies, financial intermediaries such as national, regional and local bankers, accountants, lawyers and consultants, as well as through financial sponsors. As a leading provider of private debt, Medley is often sought out as a preferred financing partner. Historically, the majority of Medley’s annual origination volume has been derived from direct loan origination. Medley performs thorough due diligence and focuses on several key criteria in the underwriting process, including strong underlying business fundamentals, a meaningful equity cushion, experienced management, conservative valuation and the ability to deleverage through cash flows. Medley is often the agent for the loans it originates and accordingly controls the loan documentation and negotiation of covenants, which promotes consistent maintenance of underwriting standards. Medley’s disciplined underwriting process also involves engagement of industry experts and third party consultants. This disciplined underwriting process is important as Medley has historically invested in privately held companies, for which public financial information is generally unavailable. Medley employs active credit management. Medley’s process includes frequent interaction with management, monthly or quarterly review of financial information and attendance at board of directors’ meetings as observers. Investment professionals with deep restructuring and workout experience support the Firm’s credit management effort.

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