Private credit, as Coromandel endeavors with its asset-based lending solutions, can serve as a portfolio diversifier and stabilizer from the public markets through bespoke direct lending into early-stage companies, which in Coromandel’s case is lending to financial technology (“FinTech”) companies, specialty finance companies, tech-enabled businesses, or companies with hard assets. As a private credit manager, Coromandel provides credit solutions that aim to deliver equity-like returns with credit-like risk profiles.

Some of the characteristics that we believe are reflective of our ideal borrower partners are:

• Balance-sheet intensive businesses (i.e., originating or buying an asset whether tangible or intangible) that is otherwise being financed by equity, which allows us to optimize their balance sheet by replacing higher cost equity with our debt so the equity can be used for operations.
• Equity raised from Seed to Series B (or similar stages in their lifecycle) that have adequate capitalization to support operational expenses and equity contribution (otherwise known as “haircut capital”, “first loss capital”, or “overcollateralization”) for our credit facility.
• Subject matter experts and/or executives blazing their own trail with deep roots in an industry, a solid track record, and a proven business model.
• Companies participating in sizable markets and doing so in a differentiated manner at attractive customer acquisition costs, as well as firms that may have found an untapped, “greenfield” opportunity to address an underserved (or even unserved) market.