Investcorp Credit Management BDC (ICMB) Transition period summary

Executive summary

• Net asset value per share declined to $5.27 from $5.42 sequentially, with net assets at $76 million, mainly due to fair value adjustments and non-accruals, as the investment portfolio grew to $204.1 million across 43 companies.

• Net investment income before taxes was $0.8 million ($0.06 per share), with an annualized return on equity of 4.3%, reflecting stable income and disciplined expense management.

• $19 million was invested in one new and several existing portfolio companies, while three exits generated $9.5 million in proceeds and a 32.82% IRR.

• Board authorized a $5 million share repurchase program effective August 7, 2025, for one year.

• Quarterly distribution of $0.12 per share plus a $0.02 supplemental was declared, payable October 9, 2025.

Financial highlights

• Investment portfolio at fair value increased to $204.1 million from $192.4 million sequentially.

• Weighted average yield on debt investments at fair value was 10.57%, down from 10.95% in the prior quarter.

• Net decrease in net assets from operations was $0.4 million ($0.03 per share) for the quarter.

• Debt at cost rose to $134.4 million, with total borrowings at $135.5 million.

• Distributions represent a 20.07% yield on the $2.79 share price as of June 30, 2025.

Outlook and guidance

• Management is cautiously optimistic about renewed middle market momentum, with a rebuilding pipeline and expectations for increased repayments and refinancing in the second half of the year.

• Focus remains on maintaining net stability, delivering sustainable net investment income, and selectively deploying capital.

• Management expects to maintain quarterly base dividends, with potential supplemental dividends based on performance.

• Annualized distribution yield stood at 20.07% based on declared distributions and share price as of June 30, 2025.