Lafayette square

We Invest in Middle Market Companies.

Lafayette Square’s Investment Platform typically focuses on lending to profitable middle market companies in historically overlooked areas.

What we invest in

Annual EBITDA Range

$5M – $100M+

Our Check Size

$15M – $75M+

Industries

Industry-agnostic; no commodities or consumer discretionary

Security Exposure

First lien, senior secured preferred, with some flexibility for subordinated debt and preferred and common equity investments

The Problem

Capital flows are skewed toward high-income places and just a few states – 80% of private credit funding flows to businesses headquartered in high income places. Additionally, more than 50% of private credit funding is concentrated in just 5 states.

Source(s): Advantage Data (information collected from public filing BDCs)

50%
California, Florida, Massachusetts, New York, Texas
Alabama, Alaska, Arizona, Arkansas, Colorado, Connecticut, Delaware, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming
64%

American Workers living paycheck-to-paycheck

3x

Low-income workers are less likely to participate in employer retirement and healthy plans than higher-income employees

Traditional benefits don’t meet the needs of working-class people, particularly for workers outside of high-income places – 64% of American workers are living paycheck-to-paycheck, Low-income workers are 3x less likely to participate in employer retirement and healthcare plans than higher-income employees. Employee financial stress can have significant, damaging effects on the financial outcomes of operating companies.

Source(s): PYMNTS & Lending Club, January 2023, Bureau of Labor Statistics, September 2022.

The Opportunity

However, the data shows there are ample investment opportunities in low-income places.

Credit Funding Deployment

Source(s): Advantage Data (information collected from public filing BDC's)

The Solution

We believe leveraged finance and private markets can be a delivery mechanism, both for capital to overlooked places and benefits to underserved workers. For investors, we believe the combination drives better risk-adjusted returns.

Learn more about Lafayette Square and how we can help you scale your business.