Investcorp Credit Management BDC (ICMB) Q2 2026 earnings summary

Executive summary

• Net asset value (NAV) declined to $49.7 million ($3.44 per share) as of June 30, 2026, down from $59.4 million ($4.12 per share) at December 31, 2025, reflecting realized losses and unrealized depreciation.

• Investment portfolio at fair value decreased to $135.9 million across 30 companies, compared to $172.7 million across 37 companies at year-end 2025.

• Fully realized investments in five portfolio companies generated $13.9 million in proceeds and a 7.73% IRR for the quarter ended June 30, 2026.

• No quarterly distributions were declared for the six months ended June 30, 2026.

• Board-appointed strategic review continues, focusing on enhancing shareholder value.

Financial highlights

• Total investment income for the six months ended June 30, 2026 was $6.7 million, down from $8.9 million for the same period in 2025, mainly due to lower average assets and lower interest rates.

• Net investment loss before taxes was ($0.2) million for the six months ended June 30, 2026, compared to net investment income of $1.5 million in the prior year period.

• Net realized loss on investments was $2.1 million for the six months ended June 30, 2026, versus a net realized gain of $0.6 million in the prior year.

• Weighted average yield on debt investments at fair value was 10.51%, down from 11.95% in the prior quarter.

• Adviser waived $0.7 million in management fees for the quarter.

Outlook and guidance

• Management believes the portfolio is well positioned to manage the current inflationary and uncertain economic environment.

• Adviser agreed to waive $0.2 million of previously earned incentive fees and $1.1 million of future management and incentive fees to offset tax liabilities, which would increase NAV by $1.4 million if recognized.

• The company intends to maintain RIC status and continue distributing substantially all net taxable income to stockholders.

• Management remains focused on portfolio management and expense vigilance during the ongoing strategic review.

• Portfolio flexibility is maintained through significant exposure to first-lien and floating rate instruments amid market volatility.