Our borrowers range from pre-revenue (tax credit financing only) to $20+ million revenue companies. Our sweet spot is companies with $1 to $10 million in ARR.
Our credit facilities are up to $15 million.
Espresso provides venture debt financing to early and growth stage technology companies.
Venture debt is an attractive and underserved niche characterized by low leverage levels, typically less than 20% loan to enterprise value.
Additionally, many of Espresso’s loans are sponsor backed, providing additional security. Secondly, SaaS companies have higher margins, faster growth rates and stickier customers. SaaS is also growing very rapidly, providing a greater buffer against revenue compression in market downturns. Finally, SaaS companies are relatively easy to sell or liquidate in order to force a loan recovery.
Espresso Fund V LP is our master fund. Investors seeking to invest via registered plans can invest in Espresso Income Trust which is a limited partner Espresso Fund V LP.
Since inception in 2009, Espresso has delivered investors annual returns in excess of 9% after fees (assuming class F fee structure).
We target 8%+ annual net income after fees and have exceeded this target every year since inception in 2009.
Investors who redeem prior to the first anniversary will be charged a 5% early redemption penalty. Investors can redeem monthly with 30 days notice.
The Trust and LP offer closings on the last day of each month.