Morningstar DBRS Affirms BBB (low) Rating for Lafayette Square

As of March 31, 2026, the company’s portfolio reached a fair value of $822.1 million, spanning 57 companies. The underlying assets show a weighted average yield of 10.7% and a net leverage ratio of 3.9x. The firm’s financing strategy includes senior unsecured notes maturing in 2030 and a revolving credit facility linked to Goal2030™ performance targets, which provide incentives to reduce borrowing costs.

Beyond financial metrics, the credit profile is supported by the firm's managerial assistance model and its proprietary Worker Solutions® platform. By facilitating employee benefit services and workplace policy adjustments, the company aims to insulate its portfolio from broader macroeconomic volatility. Damien Dwin, Founder and CEO of Lafayette Square, described the confirmation as institutional validation that the firm's government licensing structure and underwriting standards meet investment-grade benchmarks.