What is the revenue profile of Espresso Capital’s borrowers?

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.

What are Espresso Capital’s typical loan sizes?

Our credit facilities are up to $15 million.

What is Espresso Capital’s investment mandate?

Espresso provides venture debt financing to early and growth stage technology companies.

How does venture debt compare to mid-market loans?

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.

How is Espresso structured? Does Espresso accept investments from registered plans?

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.

What are your historical returns?

Since inception in 2009, Espresso has delivered investors annual returns in excess of 9% after fees (assuming class F fee structure).

What are your projected returns?

We target 8%+ annual net income after fees and have exceeded this target every year since inception in 2009.

Is there a minimum investment period? What are the redemption provisions?

Investors who redeem prior to the first anniversary will be charged a 5% early redemption penalty. Investors can redeem monthly with 30 days notice.

How often are closings?

The Trust and LP offer closings on the last day of each month.