Investcorp Credit Management BDC, Inc.

Previous wording

CM Investment Partners LLC (the “Adviser”) serves as our investment adviser. On August 30, 2019, Investcorp Credit Management US LLC (“Investcorp”) acquired an approximate 76% ownership interest in the Adviser through the acquisition of the interests held by Stifel Venture Corp. (“Stifel”) and certain funds managed by Cyrus Capital and through a direct purchase of equity from the Adviser. On August 31, 2023, Investcorp acquired approximately an additional 7% ownership interest in the Adviser. On December 12, 2024, Investcorp assigned its ownership of the Adviser to IVC Credit Management Financing, LLC its parent entity and the entity that manages Investcorp’s US credit management regulated entities. Investcorp and its credit advisory affiliates are a leading global credit investment platform with assets under management of $21.2 billion as of March 31, 2025. Investcorp and its credit advisory affiliates manage funds which invest primarily in senior secured corporate debt issued by mid and large-cap corporations in Western Europe and the United States. The business has a strong track record of consistent performance and growth, employing approximately 50 investment professionals in London and New York. Investcorp is a subsidiary of Investcorp Holdings B.S.C. (“Investcorp Holdings”). Investcorp Holdings and its consolidated subsidiaries, including Investcorp, are referred to as “Investcorp Group”. Investcorp Group is a global provider and manager of alternative investments, offering such investments to its high-net-worth private and institutional clients on a global basis.

Current wording

CM Investment Partners LLC (the “Adviser”) serves as our investment adviser. On August 30, 2019, Investcorp Credit Management US LLC (“Investcorp”) acquired an approximate 76% ownership interest in the Adviser through the acquisition of the interests held by Stifel Venture Corp. (“Stifel”) and certain funds managed by Cyrus Capital and through a direct purchase of equity from the Adviser. On August 31, 2023, Investcorp acquired approximately an additional 7% ownership interest in the Adviser. On December 12, 2024, Investcorp assigned its ownership of the Adviser to IVC Credit Management Financing, LLC its parent entity and the entity that manages Investcorp’s US credit management regulated entities. Investcorp and its credit advisory affiliates are a leading global credit investment platform with assets under management of $21.5 billion as of June 30, 2025. Investcorp and its credit advisory affiliates manage funds which invest primarily in senior secured corporate debt issued by mid and large-cap corporations in Western Europe and the United States. The business has a strong track record of consistent performance and growth, employing approximately 50 investment professionals in London and New York. Investcorp is a subsidiary of Investcorp Holdings B.S.C. (“Investcorp Holdings”). Investcorp Holdings and its consolidated subsidiaries, including Investcorp, are referred to as “Investcorp Group”. Investcorp Group is a global provider and manager of alternative investments, offering such investments to its high-net-worth private and institutional clients on a global basis.

Previous wording

As of March 31, 2025, our investment portfolio, valued at fair value in accordance with our Board-approved valuation policy, represented 92.7% of our total assets, as compared to 92.6% of our total assets as of December 31, 2024.

Current wording

As of June 30, 2025, our investment portfolio, valued at fair value in accordance with our board of directors-approved valuation policy, represented 91.1% of our total assets, as compared to 92.6% of our total assets as of December 31, 2024.

Previous wording

As of March 31, 2025 and December 31, 2024, there were $56.0 million and $58.5 million in borrowings outstanding under the Capital One Revolving Financing, respectively.

Current wording

As of June 30, 2025 and December 31, 2024, there were $70.5 million and $58.5 million in borrowings outstanding under the Capital One Revolving Financing, respectively.

Previous wording

As of March 31, 2025, our investment portfolio of $192.4 million (at fair value) consisted of debt and equity investments in 43 portfolio companies, of which 77.04% were first lien investments and 22.96% were equities, warrants and other positions. At March 31, 2025, our average and largest portfolio company investment at fair value was $4.5 million and $13.6 million, respectively.

Current wording

As of June 30, 2025, our investment portfolio of $204.1 million (at fair value) consisted of debt and equity investments in 43 portfolio companies, of which 79.23% were first lien investments and 20.77% were equities, warrants and other positions. At June 30, 2025, our average and largest portfolio company investment at fair value was $4.7 million and $13.6 million, respectively.

Previous wording

As of March 31, 2025 and December 31, 2024, our average total yield of debt and income producing securities weighted by amortized cost (which includes interest income and amortization of fees and discounts) was 11.02% and 10.60% respectively. As of March 31, 2025 and December 31, 2024, our average total yield on the total portfolio weighted by amortized cost (which includes interest income and amortization of fees and discounts) was 8.73% and 8.72%, respectively. The weighted average total yield was computed using an internal rate of return calculation of our debt investments based on contractual cash flows, including interest and amortization payments, and, for floating rate investments, the spot SOFR, as applicable, as of March 31, 2025, of all of our debt investments. The weighted average total yield of our debt investments is not the same as a return on investment for our stockholders but, rather, relates to a portion of our investment portfolio and is calculated before payment of all of our fees and expenses, including any sales load paid in connection with an offering of our securities. There can be no assurance that the weighted average total yield will remain at its current level.

Current wording

As of June 30, 2025 and December 31, 2024, our average total yield of debt and income producing securities weighted by amortized cost (which includes interest income and amortization of fees and discounts) was 10.63% and 10.60% respectively. As of June 30, 2025 and December 31, 2024, our average total yield on the total portfolio weighted by amortized cost (which includes interest income and amortization of fees and discounts) was 8.60% and 8.72%, respectively. The weighted average total yield was computed using an internal rate of return calculation of our debt investments based on contractual cash flows, including interest and amortization payments, and, for floating rate investments, the spot SOFR, as applicable, as of June 30, 2025, of all of our debt investments. The weighted average total yield of our debt investments is not the same as a return on investment for our stockholders but, rather, relates to a portion of our investment portfolio and is calculated before payment of all of our fees and expenses, including any sales load paid in connection with an offering of our securities. There can be no assurance that the weighted average total yield will remain at its current level.

Previous wording

During the three months ended March 31, 2025, we made investments in one new portfolio company and two existing portfolio companies. These investments totaled approximately $5.1 million. Of the new investments, 86.71% consisted of first lien investments and 13.29% were in equity, warrants, and other investments.

Current wording

During the six months ended June 30, 2025, we made investments in two new portfolio companies and six existing portfolio companies. Investments in new and existing portfolio companies, to which we were not previously contractually committed to provide financial support, totaled approximately $24.1 million. Of these investments, 97.20% consisted of first lien investments and 2.80% were in equity, warrants, and other investments.

Previous wording

During the six months ended December 31, 2024, we made investments in five new portfolio companies and five existing portfolio companies. These investments totaled approximately $23.0 million. Of these new investments, 99.80% consisted of first lien investments and 0.20% were in equity, warrants, and other investments.

Current wording

During the six months ended December 31, 2024, we made investments in five new portfolio companies and five existing portfolio companies. Investments in new and existing portfolio companies, to which we were not previously contractually committed to provide financial support, totaled approximately $23.0 million. Of these investments, 99.80% consisted of first lien investments and 0.20% were in equity, warrants, and other investments.

Previous wording

At March 31, 2025, 98.2% of our debt investments bore interest based on floating rates based on indices such as SOFR, the Euro Interbank Offered Rate, the Federal Funds Rate of the Prime Rate (in certain cases, subject to interest rate floors), and 1.8% bore interest at fixed rates. At December 31, 2024, 96.4% of our debt investments bore interest based on floating rates based on indices such as SOFR, the Euro Interbank Offered Rate, the Federal Funds Rate or the Prime Rate (in certain cases, subject to interest rate floors), and 3.6% bore interest at fixed rates.

Current wording

At June 30, 2025, 98.5% of our debt investments bore interest based on floating rates based on indices such as SOFR, the Euro Interbank Offered Rate, the Federal Funds Rate of the Prime Rate (in certain cases, subject to interest rate floors), and 1.5% bore interest at fixed rates. At December 31, 2024, 96.4% of our debt investments bore interest based on floating rates based on indices such as SOFR, the Euro Interbank Offered Rate, the Federal Funds Rate or the Prime Rate (in certain cases, subject to interest rate floors), and 3.6% bore interest at fixed rates.

Previous wording

Our investment portfolio may contain loans that are in the form of lines of credit or revolving credit facilities, which require us to provide funding when requested by portfolio companies in accordance with the terms of the underlying loan agreements. As of March 31, 2025, we had eight investments with aggregate unfunded commitments of $5.7 million, and as of December 31, 2024, we had eight investments with aggregate unfunded commitments of $4.6 million. As of March 31, 2025, we had sufficient liquidity (through cash on hand and available borrowings under our Capital One Revolving Financing) to fund such unfunded loan commitments should the need arise.

Current wording

Our investment portfolio may contain loans that are in the form of lines of credit or revolving credit facilities, which require us to provide funding when requested by portfolio companies in accordance with the terms of the underlying loan agreements. As of June 30, 2025, we had ten investments with aggregate unfunded commitments of $5.6 million, and as of December 31, 2024, we had eight investments with aggregate unfunded commitments of $4.6 million. As of June 30, 2025, we had sufficient liquidity (through cash on hand and available borrowings under our Capital One Revolving Financing) to fund such unfunded loan commitments should the need arise.

Previous wording

Investment income, attributable primarily to interest and fees on our debt investments, for the three months ended March 31, 2025 decreased to $4.4 million from $6.6 million for the three months ended March 31, 2024 primarily related to a decrease in interest income due to lower index and interest rates and a decrease in PIK interest income primarily related to lower PIK rates and principal balances on our investments in Crafty Apes, LLC subsequent to the restructuring in November 2024, partially offset by increased Dividend income related to the CF Arch Holdings LLC - Equity Interest and increased PIK dividend income related to Fusion Connect Series A Preferred Stock.

Current wording

Investment income, attributable primarily to interest and fees on our debt investments, for the three months ended June 30, 2025 decreased to $4.5 million from $5.1 million for the three months ended June 30, 2024 primarily related to a decrease in interest income due to lower index and interest rates and a decrease in PIK interest income primarily related to lower PIK rates and principal balances on our investments in Crafty Apes, LLC subsequent to the restructuring in November 2024, partially offset by increased PIK dividend income related to Fusion Connect Series A Preferred Stock and increased other fee income primarily related to prepayment fees on our investments in 4L Technologies, Inc.

Previous wording

Net investment income before taxes decreased to $0.7 million for the three months ended March 31, 2025 from $2.2 million for the three months ended March 31, 2024 primarily due to a decrease in interest income due to lower index and interest rates in 2025 compares to 2024 and a decrease in PIK interest income primarily related to lower PIK rates and principal balances on our investments in Crafty Apes, LLC subsequent to the restructuring in November 2024, partially offset by a decrease in interest expense due to lower index rates in 2025 compared to 2024, a decrease in base management fees, a decrease in other expenses due to the sale and write off of our investments in 1888 Industrial Services, LLC in March 2024, increased Dividend income related to the CF Arch Holdings LLC - Equity Interest and increased PIK dividend income related to Fusion Connect Series A Preferred Stock.

Current wording

Net investment income before taxes decreased to $0.8 million for the three months ended June 30, 2025 from $1.3 million for the three months ended June 30, 2024 primarily due to a decrease in interest income due to lower index and interest rates in 2025 compared to 2024, a decrease in PIK interest income primarily related to lower PIK rates and principal balances on our investments in Crafty Apes, LLC subsequent to the restructuring in November 2024, partially offset by a decrease in interest expense due to lower index rates in 2025 compared to 2024, a decrease in base management fees, increased PIK dividend income related to Fusion Connect Series A Preferred Stock, and increased other fee income related to prepayment fee income on our investments in 4L Technologies, Inc.

Previous wording

Expenses for the three months ended March 31, 2025 decreased to $3.7 million compared to $4.4 million for the three months ended March 31, 2024, primarily due to a decrease in interest expense due to lower index rates in 2025 compared to 2024, a decrease in base management fees, and a decrease in other expenses due to the sale and write off of our investments in 1888 Industrial Services, LLC in March 2024.

Current wording

Expenses for the six months ended June 30, 2025 decreased to $7.4 million compared to $8.3 million for the six months ended June 30, 2024 primarily due to a decrease in interest expense due to lower index rates in 2025 compared to 2024, a decrease in base management fees, a decrease in other expenses due to the sale and write off of our investments in 1888 Industrial Services, LLC in March 2024 and write offs of deferred incentive fees in 2025 as a result of restructurings related to our investments in Crafty Apes, American Nuts and Procera Networks/Sandvine.

Previous wording

There was a net realized loss on investments of $1.6 million for the three months ended March 31, 2025 primarily due to the realization of losses associated with the restructuring of our investments in American Nuts Holdings, LLC and a write off of our investment in American Teleconferencing Services, Ltd, partially offset by a realization of gains associated with the restructuring of our investments in Sandvine Corporation.

Current wording

There was a net realized gain on investments of $0.6 million for the six months ended June 30, 2025 primarily due to the realization of a gain associated with the sale of our investment in Investcorp Transformer Aggregator LP - Equity Interest, partially offset by the realization of losses associated with the restructuring of our investments in American Nuts Holdings, LLC and a write off of our investment in American Teleconferencing Services, Ltd.

Previous wording

There was a net realized loss on investments of $6.3 million for the three months ended March 31, 2024, primarily due to the realization of losses from restructurings and loan modifications of our investments in American Nuts Holdings, LLC, Arborworks Acquisition LLC, ArborWorks, LLC, Crafty Apes, LLC, and Xenon Arc, Inc. and the realization of losses associated with the sale and write off of our investments in 1888 Industrial Services, LLC.

Current wording

There was a net realized loss on investments of $8.1 million for the six months ended June 30, 2024 primarily due to the realization of losses from the restructuring of our investments in Sandvine Corporation and the realization of losses associated with the sale and write off of our investments in 1888 Industrial Services, LLC.

Previous wording

We recorded a net change in unrealized appreciation of $3.2 million for the three months ended March 31, 2025, primarily due to changes in marks for ArborWorks, LLC A-1 - Preferred Units, Crafty Apes LLC - Common Stock, Klein Hersh, LLC Term Loan - Last Out, Bioplan USA, Inc. - Common Stock and LABL, Inc. Term Loan B and due to the realization of previously unrealized losses resulting from the restructuring of our investments in American Nuts Holdings, LLC and a write off of our investment in American Teleconferencing Services, Ltd.

Current wording

We recorded a net change in unrealized depreciation of $17,023 for the six months ended June 30, 2025 primarily due to changes in marks for ArborWorks, LLC A-1 - Preferred Units, Crafty Apes LLC - Common Stock, Klein Hersh, LLC Term Loan - Last Out, Bioplan USA, Inc. - Common Stock, and CareerBuilder, LLC Term Loan B3, the realization of previously unrealized gains resulting from the sale of our investment in Investcorp Transformer Aggregator LP - Equity Interest and the realization of previously unrealized losses resulting from the restructuring of our investments in American Nuts Holdings, LLC and a write off of our investment in American Teleconferencing Services, Ltd.

Previous wording

During the three months ended March 31, 2024, we recorded a net change in unrealized appreciation of $6.6 million, primarily due to the decrease in fair value of our investments in ArborWorks, LLC A-1 Preferred, Klein Hersh, LLC, and Techniplas Foreign Holdco LP, partially offset by the increase in fair value of our investments in Bioplan USA, Inc. and Discovery Behavioral Health and due to the realization of previously unrealized losses resulting from the sale and write off of our investments in 1888 Industrial Services, LLC..

Current wording

During the six months ended June 30, 2024, we recorded a net change in unrealized appreciation of $5.2 million primarily due to changes in marks for ArborWorks, LLC A-1 Preferred, Klein Hersh, LLC Term Loan, Techniplas Foreign Holdco LP - Equity Interest, Bioplan USA, Inc. - Common Stock, CareerBuilder, LLC Term Loan B3, INW Manufacturing, LLC Term Loan, and Discovery Behavioral Health, LLC - Preferred Equity and due to the realization of previously unrealized losses resulting from the sale and write off of our investments in 1888 Industrial Services, LLC and the restructuring of our investments in Sandvine Corporation.

Previous wording

For the three months ended March 31, 2025, our cash balance increased by $0.9 million. During that period, $5.1 million in net cash was provided by operating activities, primarily due to investments of $5.6 million in portfolio companies, offset by proceeds from repayment and sale of investments in portfolio companies of $7.3 million. During that same period, $4.2 million in net cash was used in financing activities, resulting primarily from proceeds of $0.5 million from borrowings under the Capital One Revolving Financing, repayments of $3.0 million under the Capital One Revolving Financing, distributions of $1.7 million to our stockholders, and payments of $0 for deferred financing costs.

Current wording

For the six months ended June 30, 2025, our cash balance increased by $5.2 million. During that period, $1.6 million in net cash was used in operating activities, primarily due to investments of $27.7 million in portfolio companies, offset by proceeds from repayment and sale of investments in portfolio companies of $17.5 million. During that same period, $6.9 million in net cash was provided by financing activities, resulting primarily from proceeds of $18.5 million from borrowings under the Capital One Revolving Financing, repayments of $6.5 million under the Capital One Revolving Financing, distributions of $5.1 million to our stockholders, and payments of $0 for deferred financing costs.

Previous wording

As of March 31, 2025, we had $2.3 million of cash as well as $10.7 million in restricted cash and $44.0 million of capacity under the Capital One Revolving Financing. As of March 31, 2025, we had approximately $121.0 million of senior securities outstanding at par value and our asset coverage ratio based on par value was 164.5%. We intend to generate additional cash primarily from future offerings of equity and/or debt securities, future borrowings or debt issuances, as well as cash flows from operations, including income earned from investments in our portfolio companies and, to a lesser extent, from the temporary investment of cash in U.S. government securities and other high-quality debt investments that mature in one year or less.

Current wording

As of June 30, 2025, we had $2.9 million of cash as well as $14.4 million in restricted cash and $29.5 million of capacity under the Capital One Revolving Financing. As of June 30, 2025, we had approximately $135.5 million of senior securities outstanding at par value and our asset coverage ratio based on par value was 156.1%. We intend to generate additional cash primarily from future offerings of equity and/or debt securities, future borrowings or debt issuances, as well as cash flows from operations, including income earned from investments in our portfolio companies and, to a lesser extent, from the temporary investment of cash in U.S. government securities and other high-quality debt investments that mature in one year or less.

Previous wording

On May 2, 2018, our board of directors, including a “required majority” (as such term is defined in Section 57(o) of the 1940 Act) of the board of directors, approved the modified asset coverage requirements set forth in Section 61(a)(2) of the 1940 Act. As a result, effective May 2, 2019, our applicable minimum asset coverage ratio under the 1940 Act was decreased to 150% from 200%. Thus, we are permitted under the 1940 Act, under specified conditions, to issue multiple classes of debt and one class of stock senior to our common stock if our asset coverage, as defined in the 1940 Act, is at least equal to 150% immediately after each such issuance. As of March 31, 2025, our asset coverage for borrowed amounts was 164.5%.

Current wording

On May 2, 2018, our board of directors, including a “required majority” (as such term is defined in Section 57(o) of the 1940 Act) of the board of directors, approved the modified asset coverage requirements set forth in Section 61(a)(2) of the 1940 Act. As a result, effective May 2, 2019, our applicable minimum asset coverage ratio under the 1940 Act was decreased to 150% from 200%. Thus, we are permitted under the 1940 Act, under specified conditions, to issue multiple classes of debt and one class of stock senior to our common stock if our asset coverage, as defined in the 1940 Act, is at least equal to 150% immediately after each such issuance. As of June 30, 2025, our asset coverage for borrowed amounts was 156.1%.

Previous wording

We may be a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financial needs of our portfolio companies. As of March 31, 2025, our off-balance sheet arrangements consisted of $5.7 million in unfunded commitments to five of our portfolio companies. As of December 31, 2024, our off-balance arrangements consisted of $4.6 million in unfunded commitments to six of our portfolio companies. We maintain sufficient liquidity (through cash on hand and available borrowings under our Capital One Revolving Financing) to fund such unfunded loan commitments should the need arise.

Current wording

We may be a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financial needs of our portfolio companies. As of June 30, 2025, our off-balance sheet arrangements consisted of $5.6 million in unfunded commitments to six of our portfolio companies. As of December 31, 2024, our off-balance arrangements consisted of $4.6 million in unfunded commitments to six of our portfolio companies. We maintain sufficient liquidity (through cash on hand and available borrowings under our Capital One Revolving Financing) to fund such unfunded loan commitments should the need arise.

Previous wording

Subsequent to March 31, 2025 and through May 13, 2025, the Company invested a total of $2.0 million, at cost, which included investments in two existing portfolio companies. As of May 13, 2025, the Company had investments in 43 portfolio companies.

Current wording

Subsequent to June 30, 2025 and through August 12, 2025, the Company invested a total of $0.2 million, at cost, which included investments in two existing portfolio companies. As of August 12, 2025, the Company had investments in 43 portfolio companies.

Previous wording

On April 15, 2025, the Company's board of directors declared a distribution for the quarter ended June 30, 2025 of $0.12 per share payable on June 14, 2025 to stockholders of record as of May 24, 2025.

Current wording

On August 7, 2025, the Company’s Board of Directors (the “Board”) declared a distribution of $0.12 per share for the quarter ending September 30, 2025, payable in cash on October 9, 2025, to stockholders of record as of September 18, 2025 and a supplemental distribution of $0.02 per share, payable on October 9, 2025, to stockholders of record as of September 18, 2025.