Investcorp Credit Management BDC (ICMB) 13 Nov 242025 Q1 Earnings call transcript

Good afternoon, and thank you for joining today's Investcorp Credit Management BDC, Inc. scheduled earnings release for the quarter ended September 30, 2024. It is now my pleasure to turn the floor over to Walter Tsin, CFO.

Thank you, operator. Welcome, everyone, to Investcorp Credit Management BDC Quarter ended September 30, 2024 Earnings Call. Suhail and by of Executive joined company. the am Shaikh, Chief President Officer I to that property remind being like would I everyone that Management call Credit recorded today's this is Investcorp the of BDC. and is call unauthorized is prohibited. form in strictly of call Any broadcast any this Relations of will Investor replay our website by visiting be Audio on available at this our call page icmbdc.com.

call call release may safe harbor everyone our press regarding I projections. information may the that forward-looking Actual would disclosure differ these include to today's also statements and materially your attention like projections. remind forward-looking to and results in from

We portfolio call will SEC To filings, statements as will is The page required latest obtain our visit by website. Investor would Relations Suhail. follows: Suhail over not law. update overall followed forward-looking please the on summarizing our today's summary, copies I our for will overview of At our to financials unless I call like format an turn an business to this and then of provide provide time, results, Q&A. by a and the

Walt, and in environment. our everyone economic on us consistently a to uncertainties, portfolio are shareholders. to I'm pleased to our selective on delivered for that market quarter, maintaining thank to we Thanks, today. announce focus a value positioned well navigate resilient joining a strong you challenging opportunities deliver capitalizing and reflecting and we Despite challenges

of $X.XX and net across on primarily value gain asset quarter was credit investment mark-to-market as from net rose June Our portfolio. the from adjustments, unrealized up XX, share by investments income, per higher our The performance $X.XX, ended $X.XX by driven increase solid XXXX. to

of share, a we increase the $X reflecting $X.XX or quarter. quarter, approximately million generated $X.X For prior net million over investment income the per

remains of proactive in successful were million focus strategy X and an in portfolio reflect on conditions credit which recent our marking even These achievements companies, shift. uptick as compared we unwavering economic to selection quarters. deploying the management, our across activity and durability Additionally, portfolio continued $XX.X

Turning broader market to the environment.

subdued. flow, particularly deal remain LBO activity New in M&A and

achieved this we refinancing origination volumes deposits. driven quarter, higher by mainly However,

attractive further We our at with investments also made portfolio X allowing terms. secondary favorable diversify us prices, to

Although optimal strategically, between X.Xx. high-quality leverage and scarce, X.XXx deploy our maintaining intense competition we opportunities capital portfolio to and continue remains are

investment and are ahead. We building about flows. Our in the within sponsors optimistic defensible pipeline with robust, strong industries and demonstrate remains we high-quality that opportunities companies prioritize relationships investing cash

focus middle We the rotate and portfolio on towards within stable to continue secured market. larger, core the investments more credits senior

of last positions. the Our the remainder quarter quality, and proactive leverage of net X% Non-accruals performing same to X.Xx forward challenged as look a total portfolio percentage companies quarter. strong as value are only the X.X% durability while EBITDA of approximately we fair improved to period. to X.Xx strategy, million market our from our $XX focus portfolio declined The our this the to These portfolio our from outcomes of reinforce a this of year. on credit management median well rose $XX average small number from weighted quarter a with quarter, million over last

I to turn will quarter. the our during of now details activity portfolio

interest term of the Argano we In We company of capital invested XX, mentioned, totaled investments as totaling on received while we new debt approximately structure. yield cost, X loan LLC, the X company's refinancing The of investments $XX.X same to million million approximately was Hersh quarter of reinstatement nonaccrual investments portfolio XX.X%. $XX.X an it the Fundings period, at invested the the Klein recorded realized weighted September X existing lien previously first fully for which IRR paydowns portfolio in During proceeds was from companies ended the I average companies. new quarter made portfolio in the represents in of with $X.X support XX.X%. approximately status. million and in of for

digital Argano a Hunt Partners a Argano corporations. to portfolio Trinity leading company. is mission-critical transformation services provider of is

Our yielded cost is approximately XX.X%.

delayed from loan term and support Capital. of support. Likewize refinancing to provides We term the also of made the purchase lien investment an Genstar first Brightstar device and Capital's Corporation loan the draw in technology, protection and company Likewize

Our yielded cost is approximately XX.X%.

investment first that insurance an Integrity made distributes is we and health Finally, markets solutions. delayed lien acquisition. in insurance loan products and wealth term loan management term and broker Integrity Marketing life of the draw and an

is secondary XX%. the cost We Yield market. purchased approximately Integrity in at

also follow-on loan secondary of And We Crafty lien yield Victra of the investment made Crafty LLC. visual LSFX Apes. market works cost and another the Victra, with investment Apes Holdings, is known in across for first a effects X.X%. a that a made we term studios studio in purchased at in Atlantis full-service finally, We studio also the as globe. approximately

is Our yield at cost approximately XX.X%.

provide to to with management continue We with company's work them the financial flexibility.

South Lastly, our of Coast Terminals, quarter. we both WIS and lien the in during refinanced which loan realized Services first were Corporation Retail term positions

We've companies been these since December XXXX, and both of respectively. in May invested of

IRR Coast Our approximately on realized our realized was on XX.X%. and was XX.X% IRR South approximately WIS

at market specialty at and September at followed at containers services by trading of and packaging largest XX.X%, were X.X%, at X.X% our industry As and retail XX, XX.X%, at services XX.X%, supplies X.X%. value concentrations by insurance fair companies and commercial professional distributors

quarter industries which end, companies positions, in warrant XX are equity previous decrease a the including industries from of is quarter. and of our portfolio the Our as GICS X

to discuss turn I our to results. over financial call like Walt the to now would

Thanks, Suhail.

XX, ended portfolio value the June XXXX, was our For the $XXX.X of $XXX.X to September million compared XX. fair on quarter million

of increase $XX.X prior were assets quarter. net from Our an $X.X million million,

Our was by the average largely XX.X%, operations from decrease our new debt weighted portfolio's a approximately this of from previous XX.X% tighter net portfolio The investments. spreads increase quarter June ended and in million. was declining XX, assets SOFR on $X.X quarter in net driven

in XX equity, other XX.X% invested of September were warrants lien of positions. consisted the our of portfolio remaining in our investments first Approximately and As XX.X% XX, borrowers. and debt were

and instruments. previous X.X%, The rate of decline a average X%. of to weighted fixed and X% rate spread debt average compared weighted which portfolio XX% X% spread weighted a on had of quarter, weighted in floor slight average and X.X% was debt our the a investments was in invested average our floor floating instruments the was

Our $X.X was basis largest at BioPlan average million, and market portfolio basis company fair is market position approximately million. -- our on company fair on portfolio position a investments a $XX.X

had Gross XXXX, as December We distribution XX, payable per declared on December Board X, are leverage $XX.X to our in of $X.XX XXXX X.XXx for quarter million of that credit net X.XXx share, record million stockholders to ] revolving Directors was cash X.XXx facility to and our cash, [ (sic) as of compared capacity of ended XXXX, on of XX for $X.X with the of million announce X, of pleased Capital November XX, net, approximately respect a quarter. X, One. on X.XXx approximately was With September September as with respectively, XXXX, gross, January the the we leverage which in was to under previous XXXX. restricted $XX.X liquidity, cash

was the our portfolio Additional regarding information earlier which composition in of filed is Form week. this included XX-Q,

over turn the like I to Suhail. back would that, to call With

ability closing, In to quarter this encouraged you, Thank our are we performance in environment. confident and Walt. current of by the navigate our the complexities are

forward you prepared focus relationships questions. on and Q&A. Luke, foundation our approach, all line we portfolio your look taking the solid please strong That provide to support, companies disciplined success. resilient for for concludes open up a sponsor your Our Thank for remarks. and continued

from [Operator Our Mr. Thalmann. Instructions] Ladenburg question comes Nolan, first Christopher

was calls. it Congratulations What I didn't good I the driver for Can income please? PIK hear quarter. on had as the a you overlapping -- of the clarify quarter,

you. thank Chris, Yes.

of the continues accrual Klein was to well. So The Hersh. reversal a of nonaccrual driver big to perform company

you quarters, had on previous the quarter, nonaccrual. And at so that least was, as X it recall, we've last

accrual, coupon put is was on portion and that PIK. big that back the So of

there else? Was anything

That was driver, biggest Chris. the

the tend be over didn't Okay. which spilled play quarter actually timing was the or whether Last results a just And not lower I bit at if then whether or would quarter to a I closed recall, any last not And issues this normally there quarter? have know are here. -- were on to little quarter's side. little curious deals, in

Yes. And know, for were on been of into quarter. absolutely right. you did working lumpy spill this Look, over is a while. them that There couple a the business. you're a as this deals We've

whether of by we smooth to What we're close. have and now because some it's every to that So in trend the to to out when we leveraging interim something then positions in to tried to plan portfolio, some hard attractive of that of market, some that those going do that sort it's trying the the secondary on we'll or on add expertise transactions you've names. are our we've those noted as know of existing is, some loans well, find in purchasing activity

for the open Nolan I'll Instructions] [Operator line up again. Mr.

of detail the I'm the gain? true-up, Also, little just unrealized a detail realized loss you but back. presume a could of give mean, helpful. little some gain a terms the and was be I would unrealized in I

Sure.

the was was I a that unrealized So have so was markup, the couple names. mean, of BioPlan really function of a markup well. those Klein of Hersh function both a was loss And -- so realized performed and of easy.

Crafty There's and we've the on those a name of realized period. in to names more realized the had on come that And marked on we to Apes, happens So piece. to was up. loss both nonaccrual, be take that which subsequent

the up to with more talk we smaller portfolio those about. the trades, And So then are some in some big did clean will but we the portfolio. movers have

CEO given a the might bit market guess question, there's where and new strategy ICMB vision Suhail, -- my competitive could I source if are final you your articulate you want of you that a of And and/or you spot, to in deals advantage in what have? terms little particular into the

a great Christopher. it's question, Yes,

trying we club as in EBITDA are market. end. large low million build deals investing core actually the $XX on sort to that middle end deals. look of So describe and those at million a to with that's portion $XX what is end to million of we to companies around really of up are the we are we $XX million what And upper A what $XX do on business

more I'd transactions So sponsors, in tends sponsor-backed XX% are, portfolio why heavily of weighted towards from deals. coming the say, is are to our directly sourced which these than be

less analysis investments, market of times liquid but trying are secondary the names leveraging rest our various to fit sponsor-backed then we're in for names, be sort the bogeys. what opportunistic could our and them, do. team's That's are And which liquid credit on yield at

we continue for as benefits for to ICMB. vehicles continue Given checks check raise be grow we to have relevant their That manage actually have X can us to actually solutions. write we will checks besides ultimately that we size which decent-sized -- meaningful to and ICMB, other money, number of sponsors

decreasing portfolio, the you steadily can increasing were to increasing XX as deals over average last from the of tell, ability And leverage, been more sourced the we've directly months, sponsors. the the do XX EBITDA to

So strategy. that's really our

We of expect to in have core portfolio we market. middle ICMB marketplace opportunities benefit that wider in a from that the seek

Final question.

bit expenses heavy efficiencies? a revenues. in to be Any terms Your That's in me. it of a percentage terms for tend of little of operating improving plan as

question. Great

our of into mean come the down over expenses. obviously our across very and we dive ways We business specifically portfolio grows. manage a ICMB deep efficiently the just That are number business time taking is as I ICMB, of across our for and portfolios strategy. that our rest portion to one and is can our going

base. but should expense ways use to we looking down technology organically, also more So at inorganic that are come on efficiently lower to an manner, our number

questions. very much. you And no further Thank are there

Great. Thank few you, talking and months. forward a again we you. everyone, Thank look to in

today's Thank call. for you, attending. And everyone, conference this concludes