Source Capital Inc. is an externally managed specialty finance company that provides flexible financing solutions to U.S. middle-market companies. Structured as a closed-end investment company, it focuses on investing in both debt and equity securities of businesses seeking growth capital, refinancing, acquisitions, recapitalizations and other strategic initiatives.
The company’s investment strategy encompasses senior secured loans, unitranche facilities, second-lien financings, mezzanine debt and equity co-investments. Source Capital leverages a network of industry relationships and proprietary origination channels to identify opportunities, and employs active portfolio management practices—such as ongoing credit monitoring and collaboration with management teams—to pursue attractive risk-adjusted returns.
Source Capital primarily serves U.S. companies with annual revenues typically between $20 million and $250 million, with a portfolio diversified across sectors including healthcare, business services, technology and manufacturing. By targeting the middle market, the firm seeks to fill a financing gap often underserved by traditional banking institutions.
The company was formed in 2016 and completed its initial public offering in April 2018, listing its shares on the New York Stock Exchange under the ticker SOR. It is externally managed by Alcentra Capital (US) Ltd., an affiliate of a global asset management organization, and its investment team is led by seasoned credit professionals with extensive experience in direct lending and private credit markets.
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