Financial Performance - Total assets as of March 31, 2025, were $207.6 million, with a net asset value per share of $5.42, reflecting an increase of $0.03 from the previous quarter[3][4][15] - Net investment income before taxes for the quarter was $0.7 million, or $0.05 per share, a decrease from $2.19 million in the same quarter last year[10][17] - The net increase in net assets from operations for the quarter was $2.2 million, or $0.15 per share, compared to $2.41 million in the same quarter last year[10][17] - The company declared a distribution of $0.12 per share for the quarter, representing a yield of 14.95% based on a share price of $3.21 as of March 31, 2025[4][7] Investment Activities - The company made investments totaling $5.1 million in one new portfolio company and two existing portfolio companies during the quarter, achieving a weighted average yield of 10.22% on these debt investments[4][8] - Total proceeds from repayments, sales, and amortization during the quarter amounted to $7.3 million, primarily from the realization of specific term loans[9] - The internal rate of return on fully realized investments during the quarter was 9.55%, with total net realized and unrealized gains contributing to a net increase in net assets[4][10] - Subsequent to March 31, 2025, the company invested an additional $2.0 million in two existing portfolio companies[13] Portfolio Composition - As of March 31, 2025, the investment portfolio consisted of 43 portfolio companies, with 77.04% in first lien investments and 98.18% of the debt portfolio in floating rate investments[11][15] - The company targets middle-market companies with annual revenues of at least $50 million and EBITDA of at least $15 million[18] Regulatory and Forward-Looking Statements - The company is regulated as a business development company under the Investment Company Act of 1940[18] - Forward-looking statements made during the earnings call are based on current expectations and involve substantial risks and uncertainties[19] - Investors are cautioned against placing undue reliance on forward-looking statements due to potential market volatility and other factors[20] - Actual results may differ materially from anticipated results due to various risks and uncertainties[20] - The company has no obligation to publicly update or revise forward-looking statements except as required by law[20] Cash and Liquidity - The company had $13.0 million in cash, with $10.7 million classified as restricted cash, and $44.0 million of unused capacity under its revolving credit facility[12]

Investor Update Presentation March 31, 2025 LOS ANGELES NEW YORK LONDON BAHRAIN ABU DHABI RIYADH DOHA MUMBAI DELHI BEIJING SINGAPORE TOKYO Investcorp Credit Management BDC, Inc. Forward-looking Statements and Disclosures Statements included in this presentation may contain "forward-looking statements," which relate to future performance or financial condition of Investcorp Credit Management BDC, Inc. ("ICMB"). Forward-looking statements are based on estimates, projections, beliefs and assumptions of ICMB's ...

Investcorp Credit Management BDC (ICMB) Q3 2025 Earnings Call May 14, 2025 10:00 AM ET Company Participants Walter Tsin - Principal & CFOSuhail Shaikh - President & CEOAndrew Muns - COOPaul Johnson - Vice PresidentChristopher Nolan - SVP - Equity Research Operator Good morning, ladies and gentlemen, and welcome to today's Investcorp Credit Management BDC's quarter ended 03/31/2025 earnings call. It is now my pleasure to turn the floor over to Walter Tin, CFO. Walter Tsin Thank you, operator. Welcome everyon ...

Investcorp Credit Management BDC (ICMB) Q3 2025 Earnings Call May 14, 2025 10:00 AM ET Speaker0 Good morning, ladies and gentlemen, and welcome to today's Investcorp Credit Management BDC's quarter ended 03/31/2025 earnings call. It is now my pleasure to turn the Speaker1 floor over to Walter Tin, CFO. Speaker0 Thank you, operator. Welcome everyone to Investcorp Credit Management, BEC's quarter ended 03/31/2025 earnings call. I am joined by Suhail Chape, President, Executive Chief Executive Officer of the c ...

Investment Objectives and Portfolio - Investcorp Credit Management BDC, Inc. has a primary investment objective to maximize total return to stockholders through investments in debt and equity of privately held middle-market companies [182]. - As of March 31, 2025, the investment portfolio was valued at $192.4 million, representing 92.7% of total assets, compared to 92.6% as of December 31, 2024 [200]. - The investment portfolio consisted of 43 portfolio companies, with 77.04% in first lien investments and 22.96% in equities, warrants, and other positions [216]. - The average investment per portfolio company was $4.5 million, while the largest investment was $13.6 million as of March 31, 2025 [216]. - The primary revenue source is interest on debt investments, supplemented by royalty income, dividends, and capital gains [213]. - The investment portfolio's industry composition showed an increase in Professional Services to 15.47% from 14.37% and a decrease in Containers & Packaging to 9.15% from 10.52% [220]. - During the three months ended March 31, 2025, the company made investments totaling approximately $5.1 million, with 86.71% in first lien investments [220]. - The company invested a total of $2.0 million in two existing portfolio companies between March 31, 2025, and May 13, 2025 [246]. Financial Performance - Investment income for the three months ended March 31, 2025, decreased to $4.4 million from $6.6 million for the same period in 2024 [226]. - Expenses decreased to $3.7 million for the three months ended March 31, 2025, compared to $4.4 million for the same period in 2024 [227]. - Net investment income before taxes decreased to $0.7 million for the three months ended March 31, 2025, from $2.2 million for the same period in 2024 [228]. - The company recorded a net realized loss on investments of $1.6 million for the three months ended March 31, 2025 [229]. - As of March 31, 2025, the average total yield of debt and income-producing securities was 11.02%, up from 10.60% as of December 31, 2024 [219]. Debt and Financing - As of March 31, 2025, there were $56.0 million in borrowings outstanding under the Capital One Revolving Financing, down from $58.5 million as of December 31, 2024 [204]. - The Capital One Revolving Financing was amended to decrease the applicable interest spread from SOFR plus 3.10% to SOFR plus 2.50% [204]. - The company closed a public offering of $65.0 million in aggregate principal amount of 4.875% notes due 2026, with net proceeds of approximately $63.1 million after expenses [205]. - The 2026 Notes will mature on April 1, 2026, and bear interest at a rate of 4.875% [206]. - As of March 31, 2025, the company's floating rate borrowings totaled $56.0 million, representing 46.3% of its outstanding debt [250]. - A 1.00% increase in interest rates would increase the company's net interest income by approximately 5.30%, while a 2.00% increase would increase it by approximately 15.82% [251]. - The company had no hedging transactions in place as of March 31, 2025, as it deemed the interest rate risk acceptable [253]. Regulatory and Compliance - The Company has no Taxable Subsidiaries as of March 31, 2025, and December 31, 2024 [188]. - The company did not hold any non-qualifying assets in its portfolio as of March 31, 2025, complying with regulatory requirements [211]. - The Adviser has been granted exemptive relief by the SEC to co-invest in certain private placement transactions, subject to conditions [190]. - The company intends to distribute between 90% and 100% of its annual taxable income to stockholders, which includes taxable interest and fee income [241]. - As of March 31, 2025, the company had off-balance sheet arrangements consisting of $5.7 million in unfunded commitments to five portfolio companies, up from $4.6 million to six companies as of December 31, 2024 [245]. Market Conditions and Risks - The current inflationary environment and potential global recession may impact the portfolio companies, necessitating adjustments to operational plans [191]. - The company is subject to financial market risks, including changes in interest rates, which could materially affect its net investment income [248]. - As of March 31, 2025, 98.2% of debt investments bore interest based on floating rates, an increase from 96.4% as of December 31, 2024 [222]. - The asset coverage ratio based on par value was 164.5% as of March 31, 2025 [235]. Ownership and Management Changes - The Company has undergone significant ownership changes, with Investcorp acquiring approximately 83% of the Adviser as of August 31, 2023 [183]. - The Company’s fiscal year end was changed from June 30 to December 31, effective September 18, 2024 [181]. - The board of directors declared a distribution of $0.12 per share for the quarter ended June 30, 2025, payable on June 14, 2025 [247].

Financial Performance - Net investment income for the quarter was $0.8 million, resulting in a net investment income per share of $0.06[3][10] - The net decrease in net assets from operations was $0.6 million, or $0.04 per share, reflecting a decrease of 2.86% in net assets during the quarter[5][10] - Total investment income for the six months ended December 31, 2024, was $11,622,757, a decrease of 51.3% compared to $23,878,302 for the same period in 2023[16] - Net investment income after taxes for the six months ended December 31, 2024, was $3,146,239, down 66.7% from $9,428,066 in the same period of 2023[16] - Total expenses for the six months ended December 31, 2024, were $8,293,178, a slight increase from $17,349,068 in the same period of 2023[16] - The company reported a net increase in net assets resulting from operations of $6,042,089 for the six months ended December 31, 2024, compared to a net decrease of $4,092,470 in the same period of 2023[16] - Earnings per share for the six months ended December 31, 2024, was $0.42, compared to a loss of $0.28 in the same period of 2023[16] Investments - The company made investments totaling $9.9 million during the quarter, with a weighted average yield of 11.81% on new debt investments[5][9] - As of December 31, 2024, the investment portfolio consisted of 43 companies, with 81.17% in first lien investments[11] - The internal rate of return on fully realized investments during the quarter was 17.20%, with total proceeds of $7.6 million[5][9] - The weighted average yield on debt investments at fair value decreased to 10.36% from 10.51% in the previous quarter[5] Company Assets and Liabilities - Total assets as of December 31, 2024, were $206.9 million, with a net asset value per share of $5.39[3][15] - The company had $12.1 million in cash, of which $11.3 million was restricted cash, and $41.5 million of unused capacity under its revolving credit facility[12] Corporate Governance - The company appointed Andrew Muns as the new Chief Operating Officer, effective March 24, 2025[4][14] Shareholder Returns - The company declared a distribution of $0.12 per share for the quarter ending March 31, 2025, representing a yield of 15.84% based on a share price of $3.03[5][8] - The weighted average shares of common stock outstanding increased slightly to 14,404,510 from 14,396,201 in the previous year[16] - The company aims to maximize total return to stockholders through debt and related equity investments in middle-market companies with annual revenues of at least $50 million[17] Forward-Looking Statements - Forward-looking statements indicate that actual results may differ materially from anticipated results due to various risks and uncertainties[18] - The company has no obligation to publicly update or revise any forward-looking statements unless required by law[19] Investor Relations - Investor relations contact information includes an email address and phone number for inquiries[20]

Financial Data and Key Metrics Changes - For the quarter ending December 31, 2024, the company reported net investment income of $0.8 million or $0.06 per share, down from $0.16 per share in the prior quarter [4] - The net asset value per share decreased by $0.16 to $5.39 compared to $5.55 as of September 30, 2024 [4] - The fair value of the portfolio was $191.6 million, an increase from $190.1 million at September 30 [17] - Net assets declined by $2.3 million from the prior quarter to $77.6 million [17] - The weighted average yield of the debt portfolio decreased slightly from 10.5% to 10.4% [17] Business Line Data and Key Metrics Changes - The median EBITDA of the portfolio remained flat at approximately $61.76 million, while the weighted average net leverage increased from 4.8 times to 5 times [9] - The percentage of covenant appeals increased from 70% to 77% [9] - The weighted average yield of debt investments made in the quarter was approximately 11.8% [11] Market Data and Key Metrics Changes - Approximately 30% of the portfolio may experience moderate effects from tariffs, with strategies in place to mitigate these risks [7] - The company is strategically targeting investments in critical sectors and defensive industries, including a recent investment in the data center sector [8] Company Strategy and Development Direction - The company remains focused on capital preservation and NAV stability, with a disciplined investment approach [22] - The management is adapting to market volatility and heightened competition among lenders, with a focus on quality assets [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating economic uncertainties and delivering value to shareholders [6] - The potential impact of tariffs on the portfolio and M&A market is being closely monitored [36] Other Important Information - The company appointed Andrew Muns as Chief Operating Officer, enhancing the executive team [3] - The company declared a distribution of $0.12 per share for the quarter ending March 31, 2025, payable in cash [19] Q&A Session Summary Question: What was the cause for the drop in PIK income quarter-over-quarter? - The drop in PIK income was due to a reversal of non-accrual for one portfolio company in the previous quarter, which inflated PIK income [25] Question: What are the comments on the sustainability of the dividend given lower yields and higher leverage? - The company is constantly evaluating the sustainability of the dividend and will monitor the portfolio's performance [26][27] Question: Is the company changing to a calendar fiscal year? - Yes, the company has changed its fiscal year from June to December [28][30] Question: What is the trend for investment yield over the next quarter or two? - The investment yield is expected to remain similar, around 10.5% plus or minus, unless there is a significant economic shock [34][36]

Financial Data and Key Metrics Changes - For the quarter ending December 31, 2024, the company reported net investment income of $0.8 million or $0.06 per share, down from $0.16 per share in the prior quarter [4] - The net asset value per share decreased by $0.16 to $5.39 compared to $5.55 as of September 30, 2024 [4] - The fair value of the portfolio was $191.6 million compared to $190.1 million at September 30 [17] - Net assets were $77.6 million, a decline of $2.3 million from the prior quarter [17] - The weighted average yield of the debt portfolio decreased slightly from 10.5% to 10.4% [17] Business Line Data and Key Metrics Changes - The median EBITDA of the portfolio remained flat at approximately $61.76 million, while the weighted average net leverage increased from 4.8 times to 5 times [9] - The percentage of covenant appeals increased from 70% to 77% [9] - The weighted average yield of debt investments made in the quarter was approximately 11.8% [11] Market Data and Key Metrics Changes - Approximately 30% of the portfolio may experience moderate effects from tariffs, with strategies in place to mitigate these risks [7] - The company is strategically targeting investments in critical sectors and defensive industries, including a recent investment in the data center sector [8] Company Strategy and Development Direction - The company remains focused on capital preservation and NAV stability, with a disciplined investment approach [22] - The management is adapting to economic uncertainties and believes the portfolio is well-positioned for the shifting economic environment [6][7] Management's Comments on Operating Environment and Future Outlook - Management noted that heightened market volatility has created a tightening spread environment, impacting investment yields [5] - There is optimism for a resurgence in M&A activity post-election, although risks from tariff wars and fiscal policy changes create uncertainty [5][6] - The company does not foresee significant changes in investment yields in the near term, expecting them to remain around 10.5% [34] Other Important Information - The company appointed Andrew Muns as Chief Operating Officer, enhancing the executive team [3] - The company has approximately $12.1 million in cash, with $11.3 million being restricted cash [20] - A distribution of $0.12 per share was declared for the quarter ending March 31, 2025, payable in cash [19] Q&A Session Summary Question: What was the cause for the drop in PIK income quarter-over-quarter? - The drop was due to a reversal of non-accrual for one portfolio company in the previous quarter, which inflated PIK income [25] Question: What are the comments on the sustainability of the dividend given lower yields and higher leverage? - The company is constantly evaluating the dividend sustainability and will monitor the portfolio's performance [26][27] Question: Is the company changing to a calendar fiscal year? - Yes, the company has changed its fiscal year from June to December [28][30] Question: Where does the company see the trend for investment yield over the next quarter or two? - The investment yield is expected to remain stable around 10.5%, barring any economic shocks [34][36]

Financial Performance - The Company reported net investment income of $2.3 million, or $0.16 per share, for the quarter[3]. - Total investment income for the three months ended September 30, 2024, was $6,846,775, an increase from $5,897,706 in the same period last year, representing a growth of approximately 16.1%[13]. - Net investment income for the quarter was $2,325,943, compared to $1,627,667 in the prior year, reflecting an increase of about 42.8%[13]. - The net increase in net assets resulting from operations was $6,606,629, a significant recovery from a net decrease of $1,684,362 in the previous year[13]. - Basic and diluted earnings per share for the quarter were $0.46, compared to a loss of $(0.12) per share in the same quarter last year[13]. - Total expenses for the quarter were $4,590,410, up from $4,356,669 in the prior year, marking an increase of approximately 5.4%[13]. Investment Activity - Total investments made during the quarter amounted to $13.1 million, with a weighted average yield of 10.73%[2][7]. - The Company realized investments totaling $13.4 million during the quarter, achieving an internal rate of return of 11.75%[2]. - The company reported a net realized loss from investments of $(4,056,505) for the quarter, while the net change in unrealized appreciation was $8,337,191, indicating a strong recovery in investment values[13]. - Interest income from non-controlled, non-affiliated investments was $4,674,329, down from $5,465,288, a decrease of about 14.4%[13]. Asset Management - Net asset value increased by $0.34 per share to $5.55, reflecting a 6.50% increase in net assets, totaling $4.9 million[2]. - Total assets as of September 30, 2024, were $203.0 million, with net assets of $79.89 million[3][12]. - Cash resources included $10.1 million, with $8.3 million classified as restricted cash[11]. - The weighted average yield on debt investments at cost for the quarter was 10.51%, down from 12.33% in the previous quarter[2]. - The Company had net repayments of $7,500 on existing credit commitments during the quarter[2][8]. - As of September 30, 2024, the investment portfolio consisted of 45 portfolio companies, with 82.47% in first lien investments[10]. Shareholder Returns - The Company declared a distribution of $0.12 per share for the quarter ending December 31, 2024, with a yield of 15.34% based on a share price of $3.13 as of September 30, 2024[2][6]. - The weighted average shares of common stock outstanding increased slightly to 14,403,752 from 14,392,714 year-over-year[13]. Strategic Outlook - The company has a strategy focused on investing in middle-market companies with annual revenues of at least $50 million and EBITDA of at least $15 million[14]. - Forward-looking statements indicate that the company anticipates potential market volatility and interest rate changes may impact future performance[15].

Financial Data and Key Metrics Changes - The net asset value increased by $0.34 per share to $5.55 from $5.21 as of June 30, 2024, driven by higher net investment income and unrealized gains on investments [6][21] - Net investment income for the quarter was $2.3 million or approximately $0.16 per share, reflecting a $1 million increase over the prior quarter [7] - The fair value of the portfolio rose to $190.1 million from $184.6 million, with net assets increasing by $4.9 million to $79.7 million [21][25] - The weighted average of the debt portfolio decreased to 10.5% from 12.3% in the previous quarter, influenced by declining SOFR and tighter spreads [22] Business Line Data and Key Metrics Changes - The median EBITDA of the portfolio increased from approximately $55 million to $61 million, while the weighted average net leverage declined from 5.1 times to 4.7 times [11] - Non-accruals as a percentage of total fair market value improved to 4.8% from 5% in the previous quarter [11] Market Data and Key Metrics Changes - New deal flow in M&A and LBO activity remained subdued, but origination volumes increased due to refinancing deposits [8] - The investment pipeline is described as robust, with a focus on high-quality sponsors and companies in defensible industries [10] Company Strategy and Development Direction - The company aims to build a business around core middle market companies, focusing on those with $15 million to $75 million in EBITDA [35][38] - The strategy includes increasing the average EBITDA of the portfolio, decreasing leverage, and sourcing more directly from sponsors [38] - The company is also looking to improve operating efficiencies and reduce expenses over time [40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating economic uncertainties and delivering value to shareholders [5] - The company is optimistic about future opportunities despite intense competition and a challenging market environment [10][27] Other Important Information - The Board of Directors declared a distribution of $0.12 per share for the quarter ended December 1, 2024, payable on January 8, 2025 [24] - As of September 30, the company had approximately $10.1 million in cash, with $52.5 million of capacity under its revolving credit facility [25] Q&A Session Summary Question: What was the driver of the PIK income for the quarter? - The primary driver was the reversal of non-accrual to accrual of Klein Hersh, which had been on non-accrual for the previous three quarters [28] Question: Were there any timing issues affecting the quarter's results? - Yes, some deals that were expected to close last quarter spilled over into this quarter, which is common in this business [29] Question: Can you provide details on realized loss and unrealized gain? - The realized loss was due to Crafty Apes, while unrealized gains were attributed to the markups of Klein Hersh and Bioplan [33] Question: What is the vision for sourcing deals in the market? - The focus is on core middle market companies, with a significant portion of transactions sourced directly from sponsors [35][36] Question: Are there plans to improve operating efficiencies? - The company is conducting a deep dive into managing expenses efficiently, with expectations that the expense ratio will decrease as the business grows [40]