Core Viewpoint - Chicago Atlantic BDC, Inc. reported its financial results for the second quarter ended June 30, 2025, highlighting significant investment activity and a slight increase in net asset value per share [1][2][5]. Financial Performance - Total investment income for the second quarter was approximately $13.1 million, with net investment income of about $7.7 million, translating to $0.34 per weighted average share [5][9]. - The company incurred net expenses of approximately $5.4 million during the same period, resulting in a net increase in net assets from operations of approximately $8.6 million, or $0.38 per weighted average share [5][19]. Investment Activity - The company deployed $56 million in gross fundings during the second quarter, with a growing originations pipeline of over $780 million across cannabis and non-cannabis opportunities [3][10]. - Nine portfolio companies were funded with an aggregate par value of $39.1 million during the second quarter, and an additional $17.2 million was funded across five borrowers subsequent to the quarter end [9][10]. Liquidity and Capital Resources - As of June 30, 2025, the company had $108.8 million in liquidity, including $13.8 million in cash and cash equivalents, and $5.0 million in borrowings outstanding on its $100 million senior credit facility [6][9]. - By August 14, 2025, the company had no outstanding borrowings on its senior credit facility and $125.4 million in liquidity [6]. Net Asset Value - The net asset value (NAV) per share increased to $13.23 as of June 30, 2025, compared to $13.19 as of March 31, 2025, driven by growth in net assets from operations [7][9]. - Total net assets as of June 30, 2025, were $301.8 million, up from $301.0 million as of March 31, 2025 [7][18]. Dividend Declaration - The company declared a cash dividend of $0.34 per share for the quarter ending September 30, 2025, payable on October 10, 2025, to shareholders of record as of September 29, 2025 [11][9].

Group 1 - Fidelis Insurance Holdings Limited (FIHL) has been added to the Zacks Rank 5 (Strong Sell) List due to a 42.9% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Flowco Holdings Inc. (FLOC) is also on the Zacks Rank 5 (Strong Sell) List, with a 3.4% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - WhiteHorse Finance, Inc. (WHF) has been included in the Zacks Rank 5 (Strong Sell) List, experiencing a 4.1% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2]

Core Viewpoint - Crescent Capital BDC, Inc. reported its financial results for the quarter ended June 30, 2025, highlighting a net investment income of $0.46 per share and a net income of $0.41 per share, with a net asset value (NAV) per share of $19.55 [1][4]. Financial Performance - Net investment income for the second quarter was impacted by a one-time accelerated amortization of $0.02 per share related to deferred financing costs [1]. - Investment income increased to $43.0 million from $42.1 million in the previous quarter, with interest income rising to $40.1 million [6]. - Total net expenses for the quarter were $26.1 million, compared to $25.5 million in the previous quarter [7]. Dividend Declarations - The Board declared a regular cash dividend of $0.42 per share for the third quarter of 2025, payable on October 15, 2025 [2]. - A special dividend of $0.05 per share will be paid on September 15, 2025 [2]. Share Repurchase Program - The Board authorized a stock repurchase program to buy back up to $20.0 million of common stock in the open market [3]. Investment Portfolio - As of June 30, 2025, the company had investments in 187 portfolio companies with a fair value of $1,600.7 million [5]. - The portfolio comprised various asset types, with the largest being unitranche first lien loans at $1,043.6 million, representing 65.2% of the total investments [5]. Liquidity and Capital Resources - As of June 30, 2025, the company had $26.1 million in cash and cash equivalents and $227.2 million of undrawn capacity on its credit facilities [8]. - The weighted average cost of debt was 6.09%, and the debt to equity ratio stood at 1.23x [8].

Core Insights - Crescent Capital BDC reported net investment income of $0.46 per share and net income of $0.41 per share for the quarter ended June 30, 2025, with a net asset value (NAV) per share of $19.55 [1][4] Financial Performance - Total investment income increased to $43.0 million for the quarter ended June 30, 2025, compared to $42.1 million for the previous quarter [6] - Net investment income for the quarter was $16.9 million, slightly up from $16.6 million in the prior quarter [4][6] - The company experienced net realized losses of $2.9 million and a net change in unrealized gains of $1.0 million for the quarter [4][6] Dividend Declarations - The Board declared a regular cash dividend of $0.42 per share for the third quarter of 2025, payable on October 15, 2025 [2] - A special dividend of $0.05 per share will be paid on September 15, 2025 [2] Share Repurchase Program - The Board authorized a stock repurchase program to buy back up to $20.0 million of common stock in the open market [3] Investment Portfolio - As of June 30, 2025, the company had investments in 187 portfolio companies with a fair value of $1,600.7 million [5] - The portfolio consisted primarily of unitranche first lien loans, making up 65.2% of the total investments [5] Liquidity and Capital Resources - The company had $26.1 million in cash and cash equivalents and $227.2 million of undrawn capacity on its credit facilities as of June 30, 2025 [8] - The weighted average cost of debt was 6.09%, with a debt to equity ratio of 1.23x [8] Upcoming Events - A conference call to discuss the financial results for the quarter ended June 30, 2025, is scheduled for August 14, 2025 [9]

Core Insights - The article emphasizes the importance of a hybrid investment strategy that combines classic dividend growth stocks with Business Development Companies, REITs, and Closed End Funds to enhance investment income while achieving total returns comparable to traditional index funds [1]. Investment Strategy - The investment approach focuses on high-quality dividend stocks and assets that provide long-term growth potential, which can significantly contribute to income generation [1]. - The strategy aims to create a balanced portfolio that captures total returns on par with the S&P index, demonstrating the effectiveness of blending growth and income investments [1].

Financial Data and Key Metrics Changes - For Q2 2025, the company reported net investment income before taxes of $800,000, or 6¢ per share, an increase of 1% from the previous quarter, representing an annualized return on equity of 4.3%, up approximately 80 basis points sequentially [5] - Net assets decreased modestly to $76,000,000, down $2,100,000 from the prior quarter, with net asset value per share decreasing to $5.27 from $5.42 [5][12] - The weighted average yield of the portfolio was 10.6%, a slight decrease from 11% in the previous quarter [13] Business Line Data and Key Metrics Changes - The portfolio consisted of 43 borrowers, with approximately 79% in first lien debt and 21% in equity warrants and other positions [13] - The weighted average net leverage declined to approximately 4.8 times from 4.9 times, while the weighted average loan-to-value (LTV) remained stable at approximately 46% [6] Market Data and Key Metrics Changes - Market spreads remained relatively stable throughout the quarter, with disciplined pricing across the middle market [8] - The company experienced a pickup in origination activity, with $19,000,000 in originations this quarter, up from $5,000,000 in the previous quarter [6] Company Strategy and Development Direction - The company remains focused on maintaining net asset value stability, delivering sustainable net investment income, and selectively deploying capital into high-quality opportunities with attractive risk-adjusted returns [18] - The board authorized a share repurchase program of up to $5,000,000, expected to be in effect until 08/07/2026 [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about renewed momentum in the middle market, with expectations for increased activity in the second half of the year [7][18] - The company is focused on resolving legacy credit issues and repositioning the portfolio to support long-term performance [8] Other Important Information - The company declared a distribution of 12¢ per share and a supplemental distribution of 2¢ per share payable in cash on 10/09/2025 [16] - As of June 30, the company had approximately $17,300,000 in cash, with $14,400,000 being restricted cash [17] Q&A Session Summary Question: What was the spillover income for the quarter? - The CFO indicated that the spillover income was a significant reason for the distribution to shareholders being in excess of the change in assets from operations, with net income before taxes at 6¢ a share [22] Question: What is the strategy to improve returns given high leverage and low profitability? - Management noted that improving profitability involves absorbing expenses across a broader asset base as the private credit business grows, while maintaining a cautious approach to leverage [24][27] Question: Should we expect portfolio contraction in coming quarters to reduce leverage? - Management expects repayments to increase in the second half of the year, which could lead to a deleveraging event if decent assets are not found to replace them [28] Question: Has the company considered wrapping up the BDC and converting to cash to improve returns? - Management emphasized that their primary focus is on improving shareholder value and stabilizing the portfolio before considering such actions [31]

Company Overview - Investcorp Credit Management BDC, Inc (ICMB) has a market capitalization of $403 million [15] - The investment portfolio stands at $2041 million at fair value [15] - The company's gross debt-to-equity ratio is 177x, while the net debt-to-equity ratio is 154x [15] - The annualized distribution yield is 2007%, based on declared distributions after June 30, 2025 [15] Portfolio Composition - Senior Secured First Lien Debt accounts for 7923% of the investment portfolio [21] - Equity/Warrants/Other investments represent 2077% of the portfolio [21] - The portfolio is diversified across various industries, including Professional Services, Insurance, and IT Services [17, 18] - Geographically, the portfolio is distributed across the West (2840%), Northeast (2743%), Southwest (1567%), Southeast (1300%), Midwest (1166%), and Mid-Atlantic (384%) regions [19, 20] Portfolio Activity & Financial Performance - Total capital invested in existing portfolio companies during the quarter was $190 million [23] - Total proceeds from repayments, sales, and amortization amounted to $102 million [23] - The weighted average yield on debt investments, at fair market value, was 1057% for the quarter ended June 30, 2025 [25]

Group 1 - The article discusses investment opportunities in two Business Development Companies (BDCs): Great Elm Capital Corporation (NASDAQ: GECC) and Capital Southwest [1] - The focus is on investments that can yield good profits in a short time frame [1] - The investing group Trade With Beta offers features such as frequent picks for mispriced preferred stocks and baby bonds, weekly reviews of over 1200 equities, IPO previews, and hedging strategies [1] Group 2 - The article emphasizes the importance of active investor participation and provides a platform for discussion among sophisticated traders and investors [1] - There is a mention of a beneficial long position in the shares of GECC, indicating a positive outlook on the stock [1]

Group 1 - Business Development Companies (BDCs) remain attractive for investors due to the higher interest rate environment, but many are beginning to experience pressure from these elevated rates [1] - Stellus Capital Investment Corporation is highlighted as a specific example within the BDC sector [1] - A hybrid investment strategy combining classic dividend growth stocks, BDCs, REITs, and Closed-End Funds can enhance investment income while achieving total returns comparable to traditional index funds like the S&P [1]

Group 1 - Morgan Stanley Direct Lending Fund (NYSE: MSDL) reported disappointing Q2 earnings, raising concerns despite the backing of a major firm like Morgan Stanley [1] - The fund's performance highlights the challenges faced by Business Development Companies in the current market environment [1] Group 2 - The article emphasizes the importance of a diversified investment strategy, combining dividend growth stocks with Business Development Companies, REITs, and Closed End Funds to enhance income and total return [1]