About Us
We partner with customers who have complex, time-sensitive needs to provide customized and efficient capital solutions from a reliable partner.
The Chicago Atlantic Advantage
A Differentiated BDC
- The first public BDC that is primarily focused on the cannabis industry
- Strong credit metrics
- All debt investments are senior secured
- Part of a leading cannabis focused investment platform
Focused on Underserved Sectors
- Focus on highly complex and highly regulated industries often overlooked by other capital providers
- Direct lending to the cannabis industry and the lower middle market, secured by a diverse collateral base
- Investing in underserved market niches creates pricing power, enhanced downside protections and a durable competitive moat
Seeking to deliver a Diversified Source of Credit Alpha
- Cannabis and the lower-middle market present an uncorrelated, idiosyncratic credit opportunity
- Limited exposure to sponsor-backed, middle-market transactions, a crowded space where BDCs and private credit funds tend to focus
- Investing where few capital providers with requisite expertise are present
Strategies & Differentiators
Core Strategy
- Chicago Atlantic focuses on senior-secured lending in the top of the capital structure to the lower middle-market and middle-market. The platform’s primary investment verticals include cannabis, growth and technology finance, loans to esoteric industries / asset-based loans, and liquidity solutions.
Investment Strategy
- Seek above market returns and the preservation of capital
- Capitalize on opportunities across industries that are created by complexity or the lack of investor focus
- Focus on smaller deal sizes with less competition and potentially better relative risk/reward compared to other direct lenders that typically target larger transactions with higher leverage and less covenants
Differentiators
- Top of the capital structure lending is risk mitigating
- Floating-rate loans with high-interest rate floors
- Prioritize preservation of capital
- Low correlation to the other asset classes and other private credit more broadly
- No other public BDCs are invested in our portfolio companies
A Differentiated Investment Portfolio
We Strive to Deliver a Significant Yield Premium to Public BDCs and Traditional Leveraged Finance
- Investing in market niches underserved by traditional lenders drives pricing power, enables structural protections that enhance downside protection, and provides a competitive moat against potential competition.
- Pursuing attractive, risk-adjusted returns driven by disciplined underwriting and a focus on senior secured lending.
- Complex regulatory and/or legal barriers deter traditional capital providers, creating compelling opportunities for experienced lenders.
- Uncorrelated, idiosyncratic credit opportunities that typically have higher returns with lower leverage profiles present potential for credit alpha compared to most traditional BDCs.