we discuss ideas like this as they happen in more detail. All active investors are welcome to join on a free trial and ask any question in our chat room full of sophisticated traders and investors.In 2025, we consistently invested in BDC baby bonds and locked yields above 8% on many decent names in the sector. The logic at the time was that bonds were undervalued and common stock valuations were extremely overvalued. 1Arbitrage Trader, aka Denislav Iliev has been day trading for 15+ years and leads a team o ...

Core Viewpoint - The article discusses Hercules Capital, Inc. (HTGC) and its Q2 2025 earnings report, emphasizing the importance of seeking not just yield but also strategic financial management [1]. Group 1: Company Overview - Hercules Capital, Inc. is a Business Development Company (BDC) that focuses on providing financing to growth-stage companies [1]. - The company has a strong emphasis on financial strategies and large-scale financings, which are critical for its operational success [1]. Group 2: Analyst Background - The analyst, Roberts Berzins, has over a decade of experience in financial management, aiding top-tier corporates in shaping financial strategies [1]. - Berzins has contributed to institutionalizing the REIT framework in Latvia, aiming to enhance the liquidity of pan-Baltic capital markets [1]. - His experience includes developing national SOE financing guidelines and frameworks for channeling private capital into affordable housing [1]. Group 3: Market Context - The article highlights the significance of thought leadership in supporting the development of capital markets in the Baltic region [1].

分组1 - Capital Southwest (CSWC) is positioned to outperform most of the Business Development Company (BDC) sector due to its internally-managed structure and strong portfolio [1] - The focus of the analysis includes sectors such as technology, real estate, software, finance, and consumer staples, which are also part of the core investment portfolio [1] - The article emphasizes the importance of dividend investing as a straightforward path to achieving financial freedom, aiming to share insights and experiences to help others in their investment journey [1] 分组2 - The author has a beneficial long position in the shares of CSWC, MAIN, and MSDL, indicating a vested interest in these companies [2] - The article expresses personal opinions and does not constitute investment advice or recommendations [3]

Summary of Chicago Atlantic BDC Fireside Chat (January 13, 2026) Company Overview - **Company**: Chicago Atlantic BDC (NasdaqGM: LIEN) - **Industry**: Cannabis finance sector, specifically focusing on mortgage REITs and BDCs Key Points and Arguments Business Model and Strategy - Chicago Atlantic operates three verticals to provide diverse funding solutions, including real estate-backed loans and cash flow lending, allowing for larger fundings and diversified portfolios for investors [1][2] - The BDC has a blend of 20% to 30% non-cannabis direct loans, leveraging its expertise in the cannabis industry while also exploring broader investment opportunities [3] Market Sentiment and Performance - The mortgage REIT and BDC sectors experienced negative performance in 2025 due to declining interest rates and concerns over private credit market saturation, leading to decreased stock prices [9][10] - Chicago Atlantic's portfolio is less exposed to interest rate declines due to high interest rate floors in its floating-rate loan portfolio, which mitigates downside risk compared to broader market trends [11][13] Risk and Reward Profile - Chicago Atlantic lends to cannabis operators at lower leverage ratios (1-2 times EBITDA) compared to the broader private credit industry (4-6 times EBITDA), indicating a more conservative risk profile [23][24] - The company emphasizes the importance of real covenants in its loans, which enhances the reliability of its portfolio compared to competitors [23] Competitive Landscape - The entry of AFC Gamma as a competitor in the cannabis BDC space is acknowledged, but Chicago Atlantic believes its unique positioning and focus on smaller operators provide a competitive advantage [72] - The company maintains that its origination platform and underwriting capabilities are superior, allowing for better control and flexibility in loan structuring [39][40] Regulatory Environment and Future Outlook - Anticipation of cannabis rescheduling in 2026 is expected to increase demand for credit among operators, although the fundamental issues preventing capital flow into the industry remain [44][46] - The potential for cannabis companies to list on U.S. exchanges is viewed as a transformative opportunity for access to capital, more significant than rescheduling alone [46] Financial Performance - In Q3, Chicago Atlantic deployed over $60 million, but faced significant early repayments, which impacted net deployments [66] - The company expects 2026 to be a strong year for investment, despite challenges in predicting repayment schedules [67] Non-Accruals and Risk Management - The company reported approximately $25 million in non-accruals, with expectations for resolution and return to accrual status in the near future [79] Relationship with Vireo Growth - Chicago Atlantic's relationship with Vireo Growth is highlighted as a positive example of supporting borrower growth initiatives, enhancing trust and collaboration within the industry [90][91] Additional Important Insights - The company emphasizes the need for a broader ecosystem of credit providers to support the cannabis industry, including banks, credit rating agencies, and insurance companies [62][63] - Chicago Atlantic's focus on building relationships and trust within the cannabis sector is seen as a critical factor for success in a capital-constrained environment [91]

Market Overview - The BDC (Business Development Company) sector has experienced significant volatility recently, with notable ups and downs, yet it has advanced on a year-to-date basis, generally aligning with the overall stock market performance [1] Key Personnel - Roberts Berzins has over a decade of experience in financial management, assisting top-tier corporates in shaping financial strategies and executing large-scale financings. He has contributed to institutionalizing the REIT framework in Latvia to enhance liquidity in pan-Baltic capital markets. His policy-level work includes developing national SOE financing guidelines and frameworks for channeling private capital into affordable housing [2] Analyst Background - The analyst has no stock, option, or similar derivative positions in any of the companies mentioned and has no plans to initiate any such positions within the next 72 hours. The article reflects the analyst's own opinions and is not compensated beyond Seeking Alpha [3] Disclosure Information - Seeking Alpha emphasizes that past performance does not guarantee future results and does not provide recommendations or advice regarding investment suitability for particular investors. The views expressed may not reflect those of Seeking Alpha as a whole [4]

Market Overview - The BDC (Business Development Company) sector has experienced significant volatility recently, with notable ups and downs, yet it has managed to advance on a year-to-date (YTD) basis, generally aligning with the overall stock market performance [1] Key Individual Profile - Roberts Berzins has over a decade of experience in financial management, assisting top-tier corporates in shaping financial strategies and executing large-scale financings. He has contributed to institutionalizing the REIT (Real Estate Investment Trust) framework in Latvia to enhance liquidity in pan-Baltic capital markets. His policy-level work includes developing national SOE (State-Owned Enterprises) financing guidelines and frameworks for channeling private capital into affordable housing [2] Analyst's Position - The analyst has disclosed no stock, option, or similar derivative positions in any of the companies mentioned, nor plans to initiate any such positions within the next 72 hours. The article reflects the analyst's own opinions and is not compensated beyond Seeking Alpha [3] Seeking Alpha's Position - Seeking Alpha emphasizes that past performance does not guarantee future results and does not provide recommendations or advice regarding investment suitability for particular investors. The views expressed may not reflect those of Seeking Alpha as a whole, and its analysts are third-party authors, including both professional and individual investors [4]

Group 1 - The article emphasizes that it is an opportune time for income investors, particularly in the Business Development Company (BDC) sector, where many stocks are trading at attractive valuations [2] - The focus is on selecting investments with well-covered dividends and a margin of safety to ensure sustainable income [2] - The investment group iREIT®+HOYA Capital specializes in high-yield, dividend growth investment ideas, targeting dividend yields up to 10% across various asset classes including REITs, ETFs, and closed-end funds [2] Group 2 - The service aims to provide dependable monthly income, portfolio diversification, and inflation hedging for investors [2] - The investment research offered includes insights into income-producing asset classes that can enhance portfolio performance [2]

Company Overview - Hercules Capital is a leading Business Development Company (BDC) focused on venture capital debt and equity [1] - The company provides first and second lien debt, indicating a strong position in the capital structure of its portfolio companies [1] Investment Focus - Hercules Capital specializes in providing financing solutions to growth-oriented companies, particularly in the technology sector [1] - The company is positioned to benefit from the increasing demand for venture capital financing as more startups seek funding [1] Market Trends - The venture capital landscape is evolving, with a growing emphasis on technology-driven companies, particularly in artificial intelligence [1] - The coming decade is expected to present significant investment opportunities in AI and related technologies, which aligns with Hercules Capital's focus [1]

Group 1 - Hercules Capital is a leading Business Development Company (BDC) focused on venture capital debt and equity, providing first and second lien debt [1] - The company is positioned to capitalize on the growing demand for venture capital financing, particularly in technology sectors [1] Group 2 - The article emphasizes the transformative impact of artificial intelligence (AI) on the global economy, highlighting its potential to reshape industries and create new investment opportunities [1] - There is a belief that the upcoming decade will present significant opportunities for both retail and institutional investors in AI-driven companies [1]

分组1 - Ares Capital (ARCC) is identified as the largest Business Development Company (BDC) in the portfolio, with a current rating of "hold" based on its latest financials and valuation compared to other BDCs [1] - The author emphasizes the importance of dividend investing as a pathway to financial freedom, highlighting its accessibility and potential for long-term wealth building [1] - The author's professional background includes extensive experience in mergers and acquisitions (M&A), business valuation, and financial modeling across various sectors such as tech, real estate, software, finance, and consumer staples [1] 分组2 - The article aims to share insights and experiences related to dividend investing, with the goal of demystifying the process for others seeking financial independence [1] - The author expresses a commitment to facilitating a collective journey towards financial freedom through shared knowledge and investment strategies [1]