Financial Framework:

at Garrison Capital custodianship supersedes speculation

At Garrison Capital, our self-imposed covenant standards far exceed typical lender requirements by 20-30%, creating substantial margin of safety.

Debt Service Coverage:

Minimum: >1.6x (vs. 1.25-1.5x industry standard)

Target: >2.0x actual performance

Provides 20-30% cushion above lender requirements

Leverage Limits:

Maximum: <1.0x debt-to-equity

Ensures positive net equity position maintained

Typical Year 5: 0.25-0.35x, creating additional debt capacity

Cash Conversion:

Target: >1.5x (EBITDA to free cash flow)

Industry benchmark: 0.8-1.2x

Steady-state achievement: >2.0x

Close-up of small, irregularly shaped black stones or gravel.

Disciplined Strategy, Measurable Outcomes

Our investment framework delivers clarity in capital deployment, execution, and returns.

Portfolio

Debt-First Strategy

Garrison Capital employs debt as primary capital, reserving equity for specific growth opportunities. This structure provides clarity, flexibility, and alignment with our asset profile.

Two large Caterpillar construction vehicles in a dirt field with cloudy sky overhead.

A yellow Caterpillar excavator working on a construction site with dark cloudy skies overhead.

Deployment Clarity

Debt provides crystalline visibility: predetermined interest payments, defined amortization schedules, and unambiguous covenant thresholds. Management teams understand precisely what performance is required. Lenders receive predictable returns independent of exit timing.

Execution Speed

Established lending relationships and pre-approved structures enable 3-4 month acquisition timelines versus 6-9 months for equity-funded transactions—critical when competing against strategic buyers for quality assets.

Two large yellow and gray Volvo articulated dump trucks working on a dirt and rock quarry with large exposed rock faces and dirt piles.

Equity Ownership

Zero equity dilution means Garrison captures 100% of operational value creation. Conservative debt service coverage ratios and robust cash flows mitigate default risk while preserving upside.

Three construction excavators working on a rocky, dirt-covered site. Two are on a pile of rocks, and one is clearing dirt with a bucket.

Asset Alignment

Predictable cash flows, tangible collateral, consistent EBITDA margins, and linear growth make our target assets ideally suited for debt financing. Infrastructure and utilities sectors with similar profiles routinely operate with 60:40 to 70:30 debt-to-equity ratios.

Close-up of dark, textured rocks forming a narrow crevice or cliff face.

“Once the weekly upliftment schedule on site covers the quarterly debt service of the yellow - we’re winning.”

— Regional Mine Manager.

Limpopo Quarries

View Frameworks