New York, NY — Deerpath Capital Management, LP today announced it acted as sole lead arranger and administrative agent on the funding of a senior credit facility to support four acquisitions by Togetherwork Holdings LLC, a portfolio company managed by Aquiline Capital Partners, LLC.

Togetherwork is an emerging leader in payment processing software for groups and organizations of all kinds. Building on the foundation of Omega Financial, LLC, Togetherwork aims to acquire software companies in adjacent verticals, creating a family of companies that provide similar technology and services to broader organizations such as sports leagues, summer camps and cultural and educational institutions.

New York, NY — Deerpath Capital Management, LP acted as lead arranger and administrative agent on the funding of a senior credit facility to support the growth acquisition plan for Southern Dental Alliance ("SDA"), a portfolio company of Source Capital, LLC. Deerpath has helped finance five of SDA's most recent add-on acquisitions since August 2016.

Southern Dental Alliance is a multi-specialty dental service organization in the Southeast catering to pediatric and adult patients. Headquartered in Atlanta, Georgia, the Company operates 32 clinics across seven primary brands in Georgia, South Carolina and Tennessee.

New York, NY — Deerpath Capital Management, LP today announced it acted as sole lead arranger and administrative agent on the funding of a senior credit facility to support the refinancing and growth plan for The Shade Store, a portfolio company of Great Hill Partners.

The Shade Store is a leading direct-to-consumer provider of custom window treatments, offering shades, blinds, drapery, and other window treatment products and services online and through its 47 branded showrooms. Since its founding, The Shade Store has developed a national brand synonymous with quality, value and service.

Chicago, Illinois — Deerpath Capital Management, LP today announced it acted as sole lead arranger and administrative agent on the funding of a senior credit facility to support the recapitalization of Castlewood Treatment Centers by The Riverside Company.

Castlewood is a leading provider of inpatient and outpatient treatment services for patients suffering from eating disorders and other co-occurring disorders such as anxiety, trauma, chemical dependency, and depression. The Company provides residential treatment, partial hospitalization, and intensive outpatient treatment.

Chicago, Illinois — Deerpath Capital Management, LP today announced it acted as sole lead arranger and administrative agent on the funding of a senior credit facility to support the recapitalization of Insurance Technologies, LLC, a portfolio company of Moelis Capital Partners, which is co-advised by NexPhase Capital.

Insurance Technologies provides sales and regulatory automation solutions to the insurance and financial services industries. The Company's products, ForeSight® (sales illustration) and FireLight® (electronic applications), supply carriers and distributors with sales tools needed to streamline and accelerate the sales process.

Why does Deerpath Capital focus on lower-middle-market-sized borrowers?

In comparison to larger size loans, we believe the lower middle market offers a more attractive supply/demand balance for lenders. At Deerpath we see more than 1,200 lending opportunities in our size range in a typical year. This is a target-rich segment of the market from which to select deals. On the other hand, the level of competition among lenders is less intense for the smaller size loans. In general, we see lower leverage levels, stronger covenant packages and higher yields in the lower-middle-market segment versus larger loans. Investors sometimes ask us if smaller companies are too risky to be safe borrowers. The key factor for us is that we do not have to lend to every small company that knocks on our door. There are many poor-quality businesses in the lower-middle-market size range, but there are also many good-quality businesses in this same size range. We are able to select the small companies to whom we lend. With the large volume of new opportunities that we see annually, we can be highly selective in choosing good-quality businesses that we can lend to on attractive terms. Our typical borrower has an enterprise value of about $50mn. There are many good quality businesses of this size seeking financing.

The senior debt markets feel overheated today. How has Deerpath responded to this?

One thing we do is to try to focus on deal sizes that are just a bit smaller than where the heavy competition is. In today's environment we believe we are finding a lot of lending opportunities on attractive terms to good-quality businesses where the loan size is in the range of $20-30mn for all of the senior debt. We face competition for these deals, but there is less competition here than we see with larger size loans. A second thing we do is to try to stay constant on our risk metrics and use pricing as the dial we modulate to adjust to changing market environments. There is a certain band where we are comfortable on the key risk factors (quality of the underlying business, owner, position in the capital structure, leverage levels, covenants etc.) and we try to stay inside this band no matter where we are in the credit cycle. We use pricing as the tool to adapt to changes in the environment. We have taken down our pricing today versus what we could capture back in 2008/2009 when it was a more lender-friendly environment than it is today. Nevertheless, we think our yields today are quite attractive compared to what is available in the broader loan market.

What steps can you take to try to avoid credit losses?

Our investment philosophy has always been "safety first." We are not the type of lender that will compromise on risk levels in order to stretch for a higher yield. The most important factor in avoiding losses is to lend to only good-quality businesses. We believe one cannot start with a poor-quality business and make a good cash flow loan out of it because the interest rate is high or the leverage ratio is low. We also care a lot about who the owner of the business is. We want to see an owner with access to additional capital and the economic incentive to provide more capital to support the borrower should an unexpected problem arise. We like our borrower to have many years of operating history. Our typical borrower has 15-20 years or more of operating history, so we can evaluate based on actual historical performance how we think this borrower will fare during a recession. We want to see an experienced management team in place with the proper financial incentives. We structure our loans to maintain a conservative loan size relative to the cash flow and the enterprise value of the business. We have quarterly financial covenants that are set at the time that we make the loan based on the borrower's financing plan. We watch the performance of our portfolio companies closely and move swiftly to address problems. We know it often is easier to fix problems early on, before they grow to become big problems. The quarterly financial covenants are important in this regard.



About Deerpath Capital

Deerpath Capital Management, LP is a leading provider of senior debt financing to US lower-middle-market companies. Since inception, Deerpath has completed 300+ investments, deploying $2.2bn across a broad range of investment products and transaction types. Visit www.deerpathcapital.com to learn more.

New York, NY — We are pleased to announce that Deerpath Capital Management, LP has become a signatory of the United Nations' Principles for Responsible Investment (PRI). The PRI is recognized as the leading global network for investors who are committed to integrating environmental, social and corporate governance (ESG) considerations into their investment practices and ownership policies.

"Responsible investing has always been central to Deerpath's investment process, from origination to exit," said James H. Kirby, Deerpath's President. "The PRI provides a framework to further our approach and overall commitment to responsible investing. We are excited to be welcomed by the PRI and have the opportunity to work with other signatories to enhance the effectiveness of our ESG policies and procedures."

By becoming a signatory, Deerpath is publicly committed to investing its funds in accordance with PRI's six core principles. Deerpath has joined the community of signatories who share the firm's concerns about the alignment of investment activity with the broader interests of driving positive impact within our society and the global economy.

About the PRI

The six Principles for Responsible Investment are a voluntary and aspirational set of investment principles that offer a menu of possible actions for incorporating ESG issues into investment practice. The Principles were developed by investors, for investors. In implementing them, signatories contribute to developing a more sustainable global financial system. There are over 1,700 signatories, from over 50 countries, representing US$62 trillion.

About Deerpath Capital

Deerpath Capital Management, LP is a leading provider of senior debt financing to lower middle market companies across diverse industries. Deerpath views each investment as an opportunity to establish long term relationships with private equity sponsors, management teams and entrepreneurs.

Deerpath leverages its extensive investment experience to offer flexible financing solutions with competitive terms and structures to fit the needs of each company. From its five regional offices in New York, Chicago, Los Angeles, Houston and Fort Lauderdale, Deerpath typically seeks to invest between $5 and $40 million per transaction.

Since inception in 2007, the firm has completed nearly 200 investments, deploying over $1.4 billion of invested capital across a broad range of investment products and transaction types. Visit www.deerpathcapital.com to learn more.

New York, NY — Deerpath Capital Management, LP, a provider of senior debt financing to lower middle market companies, is proud to announce that one of its managed funds has been selected as the 2017 Small Business Investment Company ("SBIC") of the Year by the U.S. Small Business Administration.

The SBIC of the Year award recognizes Deerpath's success in supporting the growth and expansion of lower middle market businesses.

James H. Kirby, President of Deerpath Capital Management, LP, commented: "We at Deerpath Capital feel very honored to be recognized as SBIC of the Year for 2017. We appreciate the chance to participate in the SBIC program and believe participation in this program has brought important benefits to the businesses we have financed and to the investors in our funds. We look forward to continuing to participate in the SBIC program."

About the Small Business Investment Company Program

The U.S. Small Business Administration Office of Investment and Innovation SBIC Program is a multi-billion dollar, government-sponsored investment fund created in 1958 to bridge the gap between entrepreneurs' need for capital and traditional sources of financing. Today the SBIC program has 313 licensees managing over $28 billion in assets. For every $1 an SBIC raises from a private investor, the SBA will typically provide $2 of debt capital, subject to a cap of $150 million. For additional information, contact the SBA at www.asksbic.gov.

About Deerpath Capital

Deerpath Capital Management, LP is a leading provider of senior debt financing to lower middle market companies across diverse industries. Deerpath views each investment as an opportunity to establish long term relationships with private equity sponsors, management teams and entrepreneurs.

Deerpath leverages its extensive investment experience to offer flexible financing solutions with competitive terms and structures to fit the needs of each company. From its five regional offices in New York, Chicago, Los Angeles, Houston and Fort Lauderdale, Deerpath typically seeks to invest between $5 and $40 million per transaction.

Since inception in 2007, the firm has completed nearly 200 investments, deploying over $1.4 billion of invested capital across a broad range of investment products and transaction types. Visit www.deerpathcapital.com to learn more.