Saratoga Investment Corp. · NYSE:SAR
Saratoga Investment — Q2 FY2027 Earnings Presentation
47 slides from Saratoga Investment's earnings presentation, October 2026
Slide 1: Saratoga Investment Corp. October 2026 Q2 FY2027
Saratoga Investment Corp. (NYSE: SAR) October 2026 Q2 FY2027
Slide 2: Forward Looking Statement / Overview
Forward Looking Statement / Overview This presentation contains “forward looking statements” that are subject to risks and Saratoga Investment Corp (“SIC” or the “Fund”) uncertainties. Actual outcomes and results could differ materially from those suggested by this presentation due to the impact of
Slide 3: Basic Premise of the Saratoga Opportunity
Basic Premise of the Saratoga Opportunity * As of September 16, 2026 3
Slide 4: Investment Highlights
Investment Highlights Outperforming BDC sector Long- Term including ROE and Total Returns Best positioned Strong track record of company in sector for NAV/NAV per share and future growth with high-quality asset low cost-of capital growth since capacity, fixed rate management’s and strong debt acquis
Slide 5: Investment Highlights / Contents
Investment Highlights / Contents Significant Management Ownership of 11.5% • Ability to grow assets by 18% without new external financing Slides 6-10 Slides 11-13 as of August 31, 2026 including SBIC III upsize • Average last twelve years ROE of 9.2% v • Existing capital structure fixed rate, mostly
Slide 6: Outperforming BDC sector Long-Term including ROE and Total Returns
Outperforming BDC sector Long-Term including ROE and Total Returns 6
Slide 7: Saratoga Long-Term ROE Substantially Ahead of the BDC Industry
Sratoga Long-Term ROE Substantially Ahead of the BDC Industry Return on Equity Three-Year Total Return (%) ( September 2023 to September 2026) SAR +3% v BDC Index +14% 25.0% 23.6% 40.0% 30.0% 20.0% 20.0% 10.0% 14.8% 0.0% 15.0% 13.9% 13.2% -10.0% 11.5% 10.1% -20.0% 10.0% 9.3% 9.4% 9.0% 8.9% 9.1% 9.2%
Slide 8: Solid Long-Term and LTM Performance
0 10 20 30 40 -60 -50 -40 -30 -20 -10 0 15 40 65 90 25 50 75 115 140 100 -60 -35 -10 -50 -25 TRIN-US TRIN-US TRIN-US GAIN-US GAIN-US MAIN-US CSWC-US MAIN-US FDUS-US BBDC-US CSWC-US GAIN-US FDUS-US FDUS-US HTGC-US OCSL-US HTGC-US CSWC-US HTGC-US BBDC-US ARCC-US BXSL-US ARCC-US CGBD-US GSBD-US PFX-US
Slide 9: Performance as Compared to the Industry
Performance as Compared to the Industry Interest % on Portfolio LTM NII Yield LTM ROE Regulatory Debt/Equity 11.0% 11% 5% 4.1% 200% 10.7% 10.1% 10.0% 10.6% 10.5% 10% 10.5% 2.2% 173.1% 9% 8.5% 3% 170% 10.0% 8% 9.5% 7% 1% 140% 9.0% 122.4% 121.7% 6% 8.5% 5% -2% -1.1% 110% SAR BDC Mean BDC Median SAR BD
Slide 10: KPIs - SAR Net Interest Margin
KPIs - SAR Net Interest Margin SAR LTM Net Interest Margin down 4% year-over-year following spread compression, base rate reductions and capital structure refinancings, but up over five times since taking over management Net Interest Margin $78,605 $78,963 $58,518 $58,286 $52,456 $38,964 $38,127 $33
Slide 11: Best Positioned Company in Sector for Future Growth
Best Positioned Company in Sector for Future Growth with Low Cost-of Capital Capacity, Fixed Rate and Strong Debt Structure 11
Slide 12: Dry Powder Remains Available
Dry Powder Remains Available Total Borrowing Available Remaining Fixed / (As of August 31, 2026) Outstanding Call Period Capacity Liquidity Maturity Period Floating Rate Valley National Bank Credit Facility $85.0 million $32.5 million $52.5 million 2 Years - Floating Live Oak Credit Facility $75.0 m
Slide 13: Long-Term Consistent Dividend Growth
Long-Term Consistent Dividend Growth • Q3 FY27 dividend declared at Dividends Per Share* $0.75 per share; to be paid in $0.25 per share monthly increments $0.75 $0.75 $0.75 $0.75 $0.75 $0.75 $0.75 $0.74 $0.74 $0.74 $0.74 $0.73 $0.72 Dividend stable at $0.75 per $0.71 • $0.70 $0.69 $0.68 share from p
Slide 14: Strong Track Record of NAV/NAV Per Share and High-Quality Asset Growth
Strong Track Record of NAV/NAV Per Share and High-Quality Asset Growth since Management’s Acquisition in 2010 14
Slide 15: Long-Term NAV and NAV Per Share Growth With LTM Discrete Decline
Long-Term NAV and NAV Per Share Growth With LTM Discrete Decline Net Asset Value and NAV per Share (FY11 to Q2 FY27) NAV: 7% decrease this quarter, including $8m share repurchases. 310% increase since Saratoga took over management. NAV/Share: 5% decrease this quarter. 1% increase since FY17 with inc
Slide 16: Consistent Long-Term Asset Growth and Solid Credit Quality
Consistent Long-Term Asset Growth and Solid Credit Quality Asset Base Expansion Trend Overall Credit Quality Remains Strong $1,400 100% $1,200 $1,150 $1,139 $1,109 $1,000 $973 $978 $800 $818 80% 98.3% 98.6% 99.0% 98.5% 98.1% 99.7% 96.8% 96.8% 96.0% $600 94.2% 94.1% 93.3% 95.9% 90.5% $554 $486 82.4%
Slide 17: SAR Non-Accruals Significantly Lower than BDC Industry
SAR Non-Accruals Significantly Lower than BDC Industry SAR investments on non-accrual status remains low at 1.3% of cost, well below the BDC industry average of 3.4% of cost (more than 2.5x higher than Saratoga) Non-Accruals at Cost 4.0% 3.4% 3.5% 3.1% 3.0% 2.5% 2.0% 1.5% 1.3% 1.0% 0.5% 0.0% SAR BDC
Slide 18: Demonstrated Strong Track Record
Demonstrated Strong Track Record (1)(2)(3) (1)(2)(3)(4) Realized Investments Unrealized Investments (Gross Unlevered IRR%) (Gross Unlevered IRR%) 16% 20% $363.9m $561.8m $1,412.6m $492.1m 16.9% 12.3% $155.3m 12% 11.5% 16% $209.1m 14.9% $1,249.1m 13.9% $486.3m 13.4% 9.7% 12.9% 12% 8% $393.0m 8% 5.2%
Slide 19: Net Realized Gains Help Protect Shareholder Capital
Net Realized Gains Help Protect Shareholder Capital Cumulative net realized gains reflect portfolio credit quality Net Realized Gains $ in thousands (all investments) $60,000 $50,000 $47,569 $42,877 $40,000 $30,000 $20,000 $12,368 $13,398 $8,495 $10,000 $4,874 $5,746 $3,276 $2,207 $562 $1,271 $226 $
Slide 20: Portfolio Composition and Yield
Portfolio Composition and Yield Portfolio Composition – $1,150.2m Portfolio Yield – 9.9% (Based on Fair Values (Weighted Average as of August 31, 2026) Current Yield of Total Existing Portfolio) Other / Structured Finance Second Lien Securities Other / Structured Finance 3.9% 6.1% Second Lien Securi
Slide 21: Yield of BDC Rising Slightly Reflecting Market Changes
Yield of BDC Rising Slightly Reflecting Market Changes Weighted Average Current Yields Annual 13.4% 14.0% 11.8% 11.8% 11.1% 10.8% 11.1% 10.7% 9.3% 9.1% 7.7% 10.7% 11.4% 10.8% 9.6% 9.9% Totals1 8.0% 10.9% $1,000 11.6% 16.4% 7.4% $800 8.9% $ Millions $600 11.6% 12.6% 10.6% 11.4% 10.4% $400 11.5% 5.9%
Slide 22: Exercising Disciplined Investment Judgment
Exercising Disciplined Investment Judgment SAR Debt Multiples/Deals Closed (2020-2026)(1) Portfolio leverage with non-recurring revenue underwriting is 4.72x(2)(3) Average Middle Market 3/31/2025 6/30/2026 All Senior 3.75x 3.78x 1st Lien/Mezz 5.48x 6.06x 1st Lien/2nd Lien 5.30x (5) Unitranche 5.48x
Slide 23: SBIC II Debenture Repayments Commenced - SBIC III Availability
SBIC II Debenture Repayments Commenced- SBIC III Availability(1)(2) $450 $400 $121.0m $350 debentures undrawn $300 $ Millions $250 $200 $150 $276.9 $100 $167.1 $50 15% 24% $0 SBIC II SBIC III 1) SBIC III cash available for new originations and follow-ons in existing license, with SBIC II cash only a
Slide 24: Diversified Across Geography
Diversified Across Geography Investments Diversified Geographically Other International 9.2% 1.6% Southeast West 24.4% 12.4% Southwest 10.2% Midwest 25.7% Northeast 16.5% United Kingdom 24
Slide 25: Investments Across 44 Distinct Industries
Investments Across 44 Distinct Industries Alternative Inv. Management Architecture & Engineering Association Management Consumer Services Corporate Education Software Software Software Education Software, 2.8% Revenue Cycle Management & Related Services, 2.5% Financial Services, 2.8% Talent Acquisit
Slide 26: Saratoga Market Position – Competitive Landscape
Saratoga Market Position – Competitive Landscape Target SAR occupies a very advantageous niche in the market Gross Yield Lower middle market stretch 15% Private senior lenders have SBICs increasingly become a source of competition for Saratoga SAR and other 10% small BDCs w/ Large BDCs, Mezz Funds a
Slide 27: Filtering our Relationships to Find High Quality Deal Flow
Filtering our Relationships to Find High Quality Deal Flow Middle Market Company Referral Sources Approximately 100,000 firms Likely Sources of Quality Referrals Approximately 1,850 Goal for 2027 is to broaden our relationship The investment team has base of funded and Saratoga Focus List significan
Slide 28: Business Development Philosophy
Business Development Philosophy The main goal of business Increase Saratoga’s business development development is to increase the Relationships strategy relies on constant number and quality of & Brand focus and improvement actionable investment Awareness opportunities Saratoga Business Development
Slide 29: Business Development Activities
Business Development Activities • Saratoga has an active business development organization covering the lower middle market including: • Senior professionals focused on private equity sponsor coverage and loan origination • Manage communications with over 3,100 firms and over 8,000 contacts, with em
Slide 30: Pipeline Remains Healthy and Growing Reflecting Business Development Initiatives
Pipeline Remains Healthy and Growing Reflecting Business Development Initiatives New business opportunities remain healthy and robust reflecting the result of recent business development initiatives LTM 2021 ∆ 2022 ∆ 2023 ∆ 2024 ∆ 2025 Q3 Calendar(1) 2026 • ~49% of deal flow from private equity spon
Slide 31: Tier 1 Sponsor Relationships Increased from 8 to 215
Tier 1 Sponsor Relationships Increased from 8 to 215 in Thirteen Years – Helps Drive Strong Originations and Pipeline Tier 1 Sponsor Relationships • Investment in business 250 development expands and deepens our relationships base 215 o In the past year, six of our last ten 199 201^ new portfolio co
Slide 32: Successfully Retained and Attracted Investment Management and Business Development Talent
Successfully Retained and Attracted Investment Management and Business Development Talent 32
Slide 33: Saratoga Team Continues to Grow to Meet Opportunity
Saratoga Team Continues to Grow to Meet Opportunity ~ Saratoga’s Established Management Team Combined have over 225 Years with the Company. ~ Chris Tim Wong Alexander Saratoga took Matt Doane Catherine Gao Nelson- Sanderson Managing over BDC Andrew Kirby Vice President Groocock Vice President Senior
Slide 34: Introductions: Best in Class Team
Introductions: Best in Class Team Professional Team Tenure at Saratoga Background Christian Oberbeck, CEO 30 years BS/BA - Brown University, MBA - Columbia University, Dillon Read, Castle Harlan Michael Grisius, CIO 14 years at firm, 16 years at prior firm BS - Georgetown University, MBA - Cornell,
Slide 35: Conclusion
Conclusion SARATOGA INVESTMENT CORP.
Slide 36: Objectives for the Future
Objectives for the Future Expand our asset base without sacrificing credit quality while benefitting from scale Increase our capacity to source, analyze, close and manage our investments by adding to our management team and processes Utilize benefits of fully deploying diverse and available fi
Slide 37: Conclusion: Defined Growth Strategy and Unique Niche Focus
Conclusion: Defined Growth Strategy and Unique Niche Focus Best-in-Class Team Outperforming BDC sector Exceptional Track Record of Strong Remaining Long-Term in ROE and NAV/NAV Per Share and Available Liquidity Room for Growth Total Return High-Quality Asset Growth Since Management’s Acquisition in
Slide 38: Appendix
Appendix: Saratoga: Basics from Inception Investment Process Long-term Market Dynamics Case Studies
Slide 39: Saratoga: The Basics From Inception to Today
Saratoga: The Basics From Inception to Today Saratoga Investment Advisors, LLC (“SIA” or the “Fund Manager”) Fund Manager since July 2010 after Saratoga Partners recapitalized the Fund Grown Fund from $80M assets under management (“AUM”) in 2010 to $1.150B at Q2 FY2027 (excluding CLO AUM) Succ
Slide 40: Q2 FY27: Strong Asset Growth with NII Pressure
Q2 FY27: Strong Asset Growth with NII Pressure Key Performance Metrics for the Fiscal Quarter For the quarter ended and as of August 31, 2025 May 31, 2026 August 31, 2026 ($ in millions except per share) $10,000 Net investment income $9.1 $7.6 $7.3 $8,000 $6,000 $10,500 Adjusted net investment incom
Slide 41: Investment Approach: How We've Focused
Investment Approach: How We’ve Focused Focused on middle market companies in the United States $3 Million to $85 Million Investments in: Leveraged & Management Buyouts Recapitalizations Growth Financings Acquisition Financings Transitional Financings Diverse Investment Strategy: No potential write-d
Slide 42: Investment Process
Investment Process • Debt: investment size $3-40MM (plus follow-ons) • Unitranche target IRR: 7%-13% • Equity co-investment: size $0.5-5MM • Mezzanine target IRR: 9%-14% • Typical coupon: 6%-15% • Equity target IRR: >20% Types of Deals • Average maturity of 5 years • Use of proceeds – organic growth
Slide 43: Investment Selection and Portfolio Management Process
Investment Selection and Portfolio Management Process Initial Investment Partners’ Due Investment Final Due Final Committee Funding Summary Meeting Diligence Committee Diligence Approval Summary Propose Terms Conduct Due Diligence Final Due Ongoing Analysis and and Structure Meet management and Di
Slide 44: Long-Term Market Dynamics Are Positive
Long-Term Market Dynamics Are Positive Powerful Secular Trends Banks continue to shift toward large borrowers Regulatory environment is a headwind for banks in the middle-market Consistent Decline in Small Business Bank Lending Due to Large Market of Small Businesses Underserved by Consolidation
Slide 45: Market Dynamics – Regulatory Changes Benefit BDCs
Market Dynamics – Regulatory Changes Benefit BDCs Proposed Regulatory Changes …. BDCs poised to fill void left by banks Effects on Effect on Proposed Regulation Key Dates Detail Banks BDCs New capital requirements require banks to reserve more equity capital against Basel III Phased-in 2015-2019 lev
Slide 46: Investment Case Studies
Investment Case Studies Ice-as-a service business model, provider of ice machine service contracts to small businesses. Point of care media company with over 9,500 digital screens and wallboards in medical Investment Thesis offices and healthcare facilities • Strong Value Proposition Customers avo
Slide 47: Contacts
Contacts Board of Directors Senior Management Research Coverage Independent: Christian L. Oberbeck B. Riley Lucid Capital Markets Steven M. Looney Director (Chairman), Chief Executive Officer, Sean-Paul Adams Erik Zwick Charles S. Whitman III President G. Cabell Williams Compass Point Maxim Group Sc
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