Chicago Atlantic BDC, Inc.(LIEN) - 2024 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Gross investment income for the fourth quarter was $12.7 million, compared to $3.7 million in the same quarter last year, indicating a significant increase [4]. Business Line Data and Key Metrics Changes - The company funded seven investments in the fourth quarter with a par value of approximately $24.8 million, which included five investments to existing borrowers for about $18.9 million and two investments to new borrowers totaling approximately $5.9 million [5]. Market Data and Key Metrics Changes - The current pipeline across the Chicago Atlantic platform remains robust with approximately $644 million in potential debt transactions across 39 unique companies [5]. Company Strategy and Development Direction - The company aims to create a scaled, diversified portfolio of senior secured investments, focusing on generating attractive yields and leveraging expertise in cannabis and underserved lending markets [3]. Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of providing flexible capital solutions to borrowers, highlighting the strategic partnership aspect of the BDC model [9]. - The CEO noted the difficulty in forecasting deployment pacing due to the nature of credit facilities but expressed confidence in the ongoing focus on deploying existing resources [10][11]. Other Important Information - Subsequent to the quarter end, the company committed approximately $32.3 million in new debt investments and funded about $20.8 million of that [5]. Q&A Session Summary Question: Advantages of BDC for Borrowers - The CEO explained that borrowers prefer availability of capital and a strategic partner who understands their business rather than focusing on lender restrictions [9]. Question: Sustainability of New Debt Fundings - The CEO indicated that while it is difficult to forecast exact deployment pacing, a commitment of around $30 million in new debt funding per quarter is not unreasonable [10][13]. Question: Interest Rate Exposure - The CFO was asked about interest rate exposure, but the response was not included in the provided content [16].