PHILOSOPHY
Seniority and structure are paid better than reach
We hold senior secured, floating-rate positions and enforce documentation rather than stretch for yield. Cash flow, coverage, and collateral are underwritten before growth. Base-rate durability supports coupon income; seniority and covenants protect principal. Where the downside is not clear, we decline early.
HOW CAPITAL IS PUT TO WORK
The Underwriting Framework
01
Origination
Sector-led sourcing across consumer products, industrials, and technology, both direct and sponsor-backed
02
Screening
Fit against seniority, structure, and sector conviction. Early decline where the downside case is not evident
03
Diligence and Underwriting
Traditional credit analysis combined with proprietary ML and AI models that synthesize financial, operational, and market data
04
Structuring
First lien, unitranche, or structured co-investment, sized to coverage and secured by enforceable documentation
05
Investment Committee
Approval against a stated conviction threshold. Speed follows conviction; it does not precede it
06
Monitoring
Active covenant and coverage surveillance across the hold, informed by the same research that guides origination
Target Investment Profile
FACILITY SIZE
$10 million to $50 million, ability to syndicate $100 million+
STRUCTURE
First lien, unitranche, structured co-investment
LENDING PRODUCTS
Asset-backed, cash flow, recurring revenue
USE OF PROCEEDS
Acquisition financing, change of control, dividend recapitalizations, growth capital, refinancings
COMPANY SCALE
EBITDA above $5 million. Recurring revenue above $10 million for enterprise software
GEOGRAPHY
North America
Sector Coverage
Consumer Products
Apparel
Food & Beverage
Wellness
Industrials
Distribution
Manufacturing
Professional Services
Technology
Enterprise Software
Hardware as a Service
Technology-Enabled Services
TECHNOLOGY-ENABLED UNDERWRITING
Tellaro integrates proprietary analytical tools into every stage of the underwriting process to enhance consistency, accelerate diligence, and strengthen risk assessment. Quantitative analysis supports, but never replaces, fundamental credit judgment by evaluating operating performance, collateral quality, cash flow resilience, and prevailing market conditions.
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The underwriting framework continuously incorporates portfolio observations and market intelligence to refine credit selection, structure transactions, and support disciplined investment decisions across changing market environments.
RESEARCH-DRIVEN INVESTING
The research we publish governs how we position. The Weekly Market Monitor, the Quarterly CIO Perspective, and the Monthly Investment Committee Insights are the same analysis that informs origination and pacing.
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The Middle Market Credit Conditions Index translates rates, spreads, leverage, and default activity into one directional signal, currently reading 64, favorable. Selectivity, not availability, sets the pace.