Core Viewpoint - Chicago Atlantic BDC's strategy is positioned to withstand current pressures in private credit markets, emphasizing its differentiated exposure and underwriting approach, which limits risks associated with software, receivables factoring, and recent fraud cases in syndicated facilities [1] Financial Performance - The company announced a quarterly dividend of $0.34 per share, maintaining this rate for six consecutive quarters, with total dividends for 2025 amounting to $1.36 per share [2] - Net investment income (NII) for Q4 2025 was reported at $0.36 per share, with a full-year NII of $1.45 per share, showcasing the company's ability to generate attractive returns while focusing on downside protection through senior secured lending [5] - Net expenses increased to $5.9 million from $5.6 million in the prior quarter, leading to a decrease in NII from $9.5 million ($0.42 per share) in Q3 to $8.3 million ($0.36 per share) in Q4 [3] Investment Metrics - Gross investment income for Q4 totaled $14.2 million, down from $15.1 million in Q3, primarily due to one-time fees recognized in the previous quarter [4] - The weighted average yield on debt investments was 15.8%, significantly higher than the average public BDC yield of 10.8% [8] - 99.5% of the portfolio is senior secured, contrasting with an average of 24.9% exposure to subordinated debt and equity among other BDCs [8] Portfolio and Investment Strategy - As of December 31, 2025, the company had 39 portfolio company investments, with 25% allocated to non-cannabis sectors [6] - The average credit investment size was approximately 2.4% of the debt portfolio at fair value, with a third-party valuation provider used for quarterly valuations [6] - The company funded $31.7 million in new debt investments during Q4 across seven portfolio companies, with 100% being senior secured [9] Market Outlook and Opportunities - Management noted improving momentum in cannabis policy and deal activity, which could enhance lending opportunities, particularly with the administration's commitment to reclassifying cannabis [13] - The pipeline for potential debt transactions totaled approximately $732 million, with $616 million in cannabis opportunities and $116 million in non-cannabis opportunities [14] - Consolidation activity is increasing in various states, reflecting a more favorable environment for mergers and acquisitions in the cannabis sector [15]

Company Overview - Investcorp Credit Management BDC, Inc (ICMB) was formed as CM Finance LLC in 2012 and had its IPO in February 2014[12] - As of March 31, 2025, ICMB's market capitalization was $46.3 million[12] - The investment portfolio's fair value was $192.4 million[12] Portfolio Composition - As of March 31, 2025, 77.04% of the portfolio was in Senior Secured First Lien Debt[18] - 22.96% of the portfolio was in Equity / Warrants / Other[18] - The largest regional exposure is in the Northeast, accounting for 29.16% of the portfolio[18] Financial Performance - Total assets were $207.6 million as of March 31, 2025[21] - Net assets were $78.1 million as of March 31, 2025[21] - Net asset value increased by $0.03 per share to $5.42 as of March 31, 2025[23] Investment Activity - ICMB made investments totaling $5.13 million in one new and two existing portfolio companies during the quarter ended March 31, 2025[23] - ICMB fully realized investments in three portfolio companies during the quarter, totaling $5.7 million in proceeds[23] - The weighted average yield on debt investments, at fair value, for the quarter ended March 31, 2025, was 10.78%[23]