Investcorp Credit Management BDC, Inc.
For the period ended Jun 30, 2026. Filed Aug 14, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 14, 2026
ICMB$0.61+0.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-13.
0001193125-26-220107
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-14.
0001193125-26-352658
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 149 previous paragraphs and 173 current paragraphs.
122 unchanged; 25 reworded; 25 added; 1 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 3 previous and 4 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (25)
Current report
Net investment income (loss) before taxes
Current report
Income tax expense (benefit), including excise tax expense
Current report
Income tax expense (benefit), including excise tax expense decreased to ($0.1) million for the three months ended June 30, 2026 compared to $0.5 million for the three months ended June 30, 2025 primarily due to the reversal of the accrual made during the three months ended March 31,2026 in connection with the allocation of 851(i) related tax expense for the prior year, and the reduction in excise tax for the current year due to reduced distributable earnings.
Current report
There was a net realized loss on investments of $2.1 million for the three months ended June 30, 2026 due to the realization of losses associated with the sale of FWS Parent Holding, LLC - Equity Interest, Likewize Corporation Term Loan, and the Term Loan and Revolver positions held in Work Genius Holdings, Inc. and the equity positions held in Work Genius, LLC.
Current report
We recorded a net change in unrealized appreciation of $1.4 million for the three months ended June 30, 2026 primarily due to changes in marks for AppLogic Networks Parent LLC - Equity Interest, ArborWorks, LLC A-1 - Preferred Units, Crafty Apes LLC - Common Stock, Easy Way Leisure Corporation Term Loan, Fusion Connect, Inc. - Series A Preferred, Klein Hersh, LLC Term Loan - Last Out, Max US Bidco Inc. Term Loan B, Work Genius, LLC - Equity Interest, Work Genius, LLC - A-1 Equity Units, Work Genius Holdings, Inc. Term Loan.
Current report
We recorded a net change in unrealized depreciation of $3.2 million for the three months ended June 30, 2025, primarily due to changes in marks for ArborWorks, LLC A-1 - Preferred Units, CareerBuilder, LLC Term Loan B3, Fusion Connect, Inc. - Common Stock, 4L Technologies, Inc. - Preferred Stock, Crafty Apes LLC - Common Stock, Klein Hersh, LLC Term Loan - Last Out, and LABL, Inc. Term Loan B and due to the realization of previously unrealized gains resulting from the sale of our investment in Investcorp Transformer Aggregator LP - Equity Interest.
Current report
Comparison of the six months ended June 30, 2026 and June 30, 2025
Current report
Investment income
Current report
Investment income, attributable primarily to interest and fees on our debt investments, for the six months ended June 30, 2026 decreased to $6.7 million from $8.9 million for the six months ended June 30, 2025 primarily due to a decrease in interest income due to lower average assets and lower index and interest rates in 2026 compared to 2025 and Easy Way Leisure Corporation Term Loan changing to non-accrual status in the fourth quarter of 2025, and a decrease in PIK dividend income related to Fusion Connect, Inc. - Series A Preferred, which is on non-accrual status in 2026 compared to 2025.
Current report
Expenses, net of waivers
Current report
Expenses, net of waivers for the six months ended June 30, 2026 decreased to $6.9 million compared to $7.4 million for the six months ended June 30, 2025 primarily due to lower unused fees in 2026 compared to 2025 due to the decrease of the facility size from $100 million to $50 million based on the Sixth Amendment entered into on May 6, 2026 and an increase in the waiver of base management fees.
Current report
Net investment income (loss) before taxes
Current report
Net investment income (loss) before taxes decreased to ($0.2) million for the six months ended June 30, 2026 from $1.5 million for the six months ended June 30, 2025 primarily due to a decrease in interest income due to lower average assets and lower index and interest rates in 2026 compared to 2025 and Easy Way Leisure Corporation Term Loan changing to non-accrual status in the fourth quarter of 2025, and a decrease in PIK dividend income related to Fusion Connect, Inc. - Series A Preferred, which is on non-accrual status in 2026 compared to 2025, partially offset by a decrease in interest expense resulting from lower borrowings under the Revolving Credit Facility in 2026 compared to 2025 and lower unused fees in 2026 compared to 2025 due to the decrease of the facility size from $100 million to $50 million based on the Sixth Amendment entered into on May 6, 2026, and an increase in the waiver of base management fees.
Current report
Income tax expense (benefit), including excise tax expense
Current report
Income tax expense (benefit), including excise tax expense decreased by $0.8 million resulting in no income tax expense for the six months ended June 30, 2026 compared to $0.8 million for the six months ended June 30, 2025 primarily due to the allocation of 851(i) related tax expense for the prior year, and the reduction in excise tax for the current year due to reduced distributable earnings.
Current report
Net realized gain or loss
Current report
There was a net realized loss on investments of $2.1 million for the six months ended June 30, 2026 due to the realization of losses associated with the sale of FWS Parent Holding, LLC - Equity Interest, Likewize Corporation Term Loan, and the Term Loan and Revolver positions held in Work Genius Holdings, Inc. and the equity positions held in Work Genius, LLC, offset by the realization of gains associated with the sale of Asurion, LLC Term Loan.
Current report
Net Asset Value to Adjusted Net Asset Value
Current report
To offset a portion of the Section 851(i) Tax Liability, after the quarter ended June 30, 2026, the Adviser agreed to waive $0.2 million of previously earned incentive fees (the "Waiver of Incentive Fee Payable") as well as future management and incentive fees (the
Current report
"Waiver of Future Management and Incentive Fees"), in each case until such waivers, together with the $0.6 million management fee waivers already recognized, fully offset the amount of the Section 851(i) Tax Liability. The Waiver of Incentive Fee Payable and the Waiver of Future Management and Incentive Fees were agreed upon after June 30, 2026 and as such are not reflected in the Company's reported net asset value ("NAV") as of June 30, 2026. If the Company were able to recognize the Waiver of Incentive Fee Payable and the Waiver of Future Management and Incentive Fees as of June 30, 2026, NAV would have increased by $1.4 million.
Current report
The following table shows a Reconciliation of Net Asset Value to Adjusted Net Asset Value:
Current report
Adjusted NAV represents the Company’s reported NAV, as determined in accordance with U.S. Generally Accepted Accounting Principles (“U.S. GAAP”), plus the impact of the Waiver of Incentive Fee Payable and the Waiver of Future Management and Incentive Fees, neither of which is reflected in the Company’s reported NAV as of June 30, 2026 as they were agreed to, and relate to fees earned, subsequent to June 30, 2026. The Company believes presenting Adjusted NAV is a useful and appropriate supplemental disclosure for analyzing the Company’s financial performance due to the unique circumstances giving rise to the Section 851(i) Tax Liability. However, this measure is a non-U.S. GAAP measure and should not be considered as a replacement for NAV or other measures presented in accordance with U.S. GAAP. Instead, this measure should be reviewed only in connection with such U.S. GAAP measures in analyzing the Company’s financial performance. A reconciliation of NAV, determined in accordance with U.S. GAAP, to Adjusted NAV, which includes the impact of the Waiver of Incentive Fee Payable and the Waiver of Future Management and Incentive Fees, is detailed in the table above.
Current report
In July 2026, the Company formed ICMB Blocker LLC, a wholly owned Taxable Subsidiary treated as a corporation for federal income tax purposes, to hold certain equity investments in portfolio companies treated as pass-through entities and facilitate the Company’s continued qualification as a RIC under the Code.
Current report
In August, in order to offset the impact of the Section 851(i) Tax Liabilities pertaining to the 2024 and 2025 tax years, the Adviser has agreed to waive certain current and future management and incentive fees. These include the waiver of an additional $0.6 million of management fees already recognized as of June 30, 2026, $0.2 million of previously earned incentive fees, and $1.1 million future management and incentive fees.
Current report
If the Company were able to recognize the waiver of incentive fee payable and future management and incentive fees agreed to as of June 30, 2026, NAV would have increased by $1.4 million. See above discussion, "Net Asset Value to Adjusted Net Asset Value".
Removed paragraphs (1)
Previous report
Net investment income
Reworded paragraphs (25)
Previous wording
We undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by law or U.S. Securities and Exchange Commission (“SEC”) rules or regulations. You are advised to consult any additional disclosures that we may make directly to you or through reports that we file from time to time with the SEC, including our annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.
Current wording
We undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by law or SEC rules or regulations. You are advised to consult any additional disclosures that we may make directly to you or through reports that we file from time to time with the SEC, including our annual reports on Form 10-K, Quarterly Reports on Form 10-Q and current reports on Form 8-K.
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 (the “Investcorp Transaction”). 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 March 31, 2026. 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 (the “Investcorp Transaction”). 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 $21.8 billion as of June 30, 2026. 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
From time to time, we may form taxable subsidiaries that are taxed as corporations for U.S. federal income tax purposes (the “Taxable Subsidiaries”) to allow the Company to hold equity securities of portfolio companies organized as pass-through entities while continuing to satisfy the requirements applicable to a RIC under the Code. As of March 31, 2026 and December 31, 2025, we had no Taxable Subsidiaries.
Current wording
From time to time, we may form taxable subsidiaries that are taxed as corporations for U.S. federal income tax purposes (the “Taxable Subsidiaries”) to allow the Company to hold equity securities of portfolio companies organized as pass-through entities while continuing to satisfy the requirements applicable to a RIC under the Code. As of June 30, 2026 and December 31, 2025, we had no Taxable Subsidiaries. See Note 16. “Subsequent Events” in this Quarterly Report on Form 10-Q for information on the Company's Taxable Subsidiaries.
Previous wording
As of March 31, 2026, our investment portfolio, valued at fair value in accordance with our board of directors-approved valuation policy, represented 92.0% of our total assets, as compared to 91.4% of our total assets as of December 31, 2025.
Current wording
As of June 30, 2026, our investment portfolio, valued at fair value in accordance with our board of directors-approved valuation policy, represented 84.2% of our total assets, as compared to 91.4% of our total assets as of December 31, 2025.
Previous wording
As of March 31, 2026 and December 31, 2025, there were $44,900,000 and $58,900,000 in borrowings outstanding under the Capital One Revolving Financing, respectively.
Current wording
As of June 30, 2026 and December 31, 2025, there were $44.9 million and $58.9 million in borrowings outstanding under the Capital One Revolving Financing, respectively.
Previous wording
The 2029 Notes mature on July 1, 2029, unless previously redeemed in accordance with their terms. The 2029 Notes bear interest at a floating rate equal to the 3-month Term SOFR plus 5.50% (9.18223% at March 31, 2026) per annum. Interest on the 2029 Notes is payable on the last business day of each calendar quarter, commencing June 30, 2026. The 2029 Notes are the Company’s direct unsecured obligations and rank pari passu with the Company’s existing and future unsecured, unsubordinated indebtedness.
Current wording
The 2029 Notes mature on July 1, 2029, unless previously redeemed in accordance with their terms. The 2029 Notes bear interest at a floating rate equal to the 3-month Term SOFR plus 5.50% (9.23372% at June 30, 2026) per annum. Interest on the 2029 Notes is payable on the last business day of each calendar quarter, commencing June 30, 2026. The 2029 Notes are the Company’s direct unsecured obligations and rank pari passu with the Company’s existing and future unsecured, unsubordinated indebtedness.
Previous wording
As of March 31, 2026, the carrying amount of the 2029 Notes was $63.8 million, aggregate principal balance of $65.0 million net with deferred debt issuance costs of approximately $0.3 million and unamortized discount of $0.9 million. As of March 31, 2026, the fair value of the 2029 Notes was $64.4 million. The Company concluded that this was Level 3 fair value under ASC 820.
Current wording
As of June 30, 2026, the carrying amount of the 2029 Notes was $63.7 million, aggregate principal balance of $65.0 million net with deferred debt issuance costs of approximately $0.2 million and unamortized discount of $1.1 million. As of June 30, 2026, the fair value of the 2029 Notes was $64.4 million. The Company concluded that this was Level 3 fair value under ASC 820.
Previous wording
As of March 31, 2026, our investment portfolio of $151.4 million (at fair value) consisted of debt and equity investments in 34 portfolio companies, of which 82.54% were first lien investments and 17.46% were equities, warrants and other positions. At March 31, 2026, our average and largest portfolio company investment at fair value was $4.5 million and $11.6 million, respectively.
Current wording
As of June 30, 2026, our investment portfolio of $135.9 million (at fair value) consisted of debt and equity investments in 30 portfolio companies, of which 81.85% were first lien investments, 0.09% were unsecured debt investments, and 18.06% were equities, warrants and other positions. At June 30, 2026, our average and largest portfolio company investment at fair value was $4.5 million and $13.2 million, respectively.
Previous wording
As of March 31, 2026 and December 31, 2025, 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 11.85% and 10.34%, respectively. As of March 31, 2026 and December 31, 2025, our average total yield on the total portfolio weighted by amortized cost (which includes interest income and amortization of fees and discounts) was 8.63% and 7.71%, 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, 2026, 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, 2026 and December 31, 2025, 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 9.68% and 10.34%, respectively. As of June 30, 2026 and December 31, 2025, our average total yield on the total portfolio weighted by amortized cost (which includes interest income and amortization of fees and discounts) was 7.31% and 7.71%, 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, 2026, 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, 2026, we made investments in one existing portfolio company, which totaled approximately $0.1 million. We made investments in one existing portfolio company, to which we were previously contractually committed to provide financial support through the terms of the revolvers and delayed draw term loans, which totaled approximately $0.7 million. Of these investments, 100.00% consisted of first lien investments.
Current wording
During the six months ended June 30, 2026, we made investments in two existing portfolio companies, which totaled approximately $2.4 million. We made investments in one existing portfolio company, to which we were previously contractually committed to provide financial support through the terms of the revolvers and delayed draw term loans, which totaled approximately $1.0 million. Of these investments, 100.00% consisted of first lien investments.
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 these 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
At March 31, 2026, 97.8% 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 2.2% bore interest at fixed rates. At December 31, 2025, 98.0% 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 2.0% bore interest at fixed rates.
Current wording
At June 30, 2026, 97.6% 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 2.4% bore interest at fixed rates. At December 31, 2025, 98.0% 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 2.0% 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, 2026, we had nine investments with aggregate unfunded commitments of $3.6 million, and as of December 31, 2025, we had nine investments with aggregate unfunded commitments of $3.7 million. As of March 31, 2026, 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, 2026, we had nine investments with aggregate unfunded commitments of $3.8 million, and as of December 31, 2025, we had nine investments with aggregate unfunded commitments of $3.7 million. As of June 30, 2026, 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, 2026 decreased to $3.6 million from $4.4 million for the three months ended March 31, 2025 primarily due to a decrease in interest income due to lower average assets and lower index and interest rates in 2026 compared to 2025, and a decrease in PIK dividend income related to Fusion Connect, Inc. - Series A Preferred, which is on non-accrual status in 2026 compared to 2025.
Current wording
Investment income, attributable primarily to interest and fees on our debt investments, for the three months ended June 30, 2026 decreased to $3.1 million from $4.5 million for the three months ended June 30, 2025 primarily due to a decrease in interest income due to lower average assets and lower index and interest rates in 2026 compared to 2025 and Easy Way Leisure Corporation Term Loan changing to non-accrual status in the fourth quarter of 2025, and a decrease in PIK dividend income related to Fusion Connect, Inc. - Series A Preferred, which is on non-accrual status in 2026 compared to 2025.
Previous wording
Expenses, net of waivers for the three months ended March 31, 2026 decreased to $3.2 million compared to $3.7 million for the three months ended March 31, 2025 primarily due to a decrease in interest expense resulting from reduced index rates and lower borrowings under the Revolving Credit Facility in 2026 compared to 2025, and an increase in the waiver of base management fees.
Current wording
Expenses, net of waivers for the three months ended June 30, 2026 decreased to $3.6 million compared to $3.7 million for the three months ended June 30, 2025 primarily due to lower unused fees in 2026 compared to 2025 due to the decrease of the facility size from $100 million to $50 million based on the Sixth Amendment entered into on May 6, 2026 and an increase in the waiver of base management fees.
Previous wording
Net investment income before taxes decreased to $0.3 million for the three months ended March 31, 2026 from $0.7 million for the three months ended March 31, 2025 primarily due to a decrease in interest income due to lower average assets and lower index and interest rates in 2026 compared to 2025, and the loss of PIK dividend income related to Fusion Connect, Inc. - Series A Preferred, which is on non-accrual status in 2026 compared to 2025, partially offset by a decrease in interest expense resulting from reduced index rates and lower borrowings under the Revolving Credit Facility in 2026 compared to 2025, and an increase in the waiver of base management fees.
Current wording
Net investment income (loss) before taxes decreased to ($0.5) million for the three months ended June 30, 2026 from $0.8 million for the three months ended June 30, 2025 primarily due to a decrease in interest income due to lower average assets and lower index and interest rates in 2026 compared to 2025 and Easy Way Leisure Corporation Term Loan changing to non-accrual status in the fourth quarter of 2025, and a decrease in PIK dividend income related to Fusion Connect, Inc. - Series A Preferred, which is on non-accrual status in 2026 compared to 2025, partially offset by a decrease in interest expense resulting from lower borrowings under the Revolving Credit Facility in 2026 compared to 2025 and lower unused fees in 2026 compared to 2025 due to the decrease of the facility size from $100 million to $50 million based on the Sixth Amendment entered into on May 6, 2026, and an increase in the waiver of base management fees.
Previous wording
There was a net realized gain on investments of $19.3 thousand for the three months ended March 31, 2026 due to the realization of gains associated with the sale of Asurion, LLC Term Loan.
Current wording
There was a net realized gain on investments of $2.2 million for the three 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.
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
We recorded a net change in unrealized depreciation of $8.8 million for the three months ended March 31, 2026 primarily due to changes in marks for ArborWorks, LLC A-1 - Preferred Units, Crafty Apes LLC - Common Stock, Discovery Behavioral Health, LLC - Preferred Equity, Easy Way Leisure Corporation Term Loan, Fusion Connect, Inc. - Series A Preferred, and Klein Hersh, LLC Term Loan - Last Out.
Current wording
We recorded a net change in unrealized depreciation of $7.4 million for the six months ended June 30, 2026 primarily due to changes in marks for AppLogic Networks Parent LLC - Equity Interest, ArborWorks, LLC A-1 - Preferred Units, Crafty Apes LLC - Common Stock, Discovery Behavioral Health, LLC - Preferred Equity, Easy Way Leisure Corporation Term Loan, Fusion Connect, Inc. - Series A Preferred, Klein Hersh, LLC Term Loan - Last Out, Max US Bidco Inc. Term Loan B, Work Genius, LLC - Equity Interest, Work Genius, LLC - A-1 Equity Units, Work Genius Holdings, Inc. Term Loan.
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 $17.0 thousand 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, to 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
For the three months ended March 31, 2026, our cash and cash equivalents and restricted cash and cash equivalents balance decreased by $3.4 million. During that period, $10.8 million in net cash was provided by operating activities, primarily from proceeds from sales and repayments of investments in portfolio companies of $14.0 million, offset by investments of $0.8 million in portfolio companies. During that same period, $14.2 million in net cash was used in financing activities, primarily for the repayment of $14.0 million under the Capital One Revolving Financing and a full repayment of $65.0 million for the 2026 Notes using the proceeds of $65.0 million from the issuance of the 2029 Notes.
Current wording
For the six months ended June 30, 2026, our cash and cash equivalents and restricted cash and cash equivalents balance increased by $5.9 million. During that period, $20.1 million in net cash was provided by operating activities, primarily from proceeds from sales and repayments of investments in portfolio companies of $32.1 million, offset by purchases of investments of $3.4 million in portfolio companies and receivable for investments sold of $3.3 million. During that same period, $14.3 million in net cash was used in financing activities, primarily for the repayment of $14.0 million under the Capital One Revolving Financing and a full repayment of $65.0 million for the 2026 Notes using the proceeds of $65.0 million from the issuance of the 2029 Notes.
Previous wording
As of March 31, 2026, we had $2.7 million of cash and cash equivalents as well as $8.8 million in restricted cash and cash equivalents and $55.1 million of capacity under the Capital One Revolving Financing. As of March 31, 2026, we had $109.9 million of senior securities outstanding at par value and our asset coverage ratio based on par value was 148.0%. 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, 2026, we had $10.9 million of cash and cash equivalents as well as $9.9 million in restricted cash and cash equivalents and $5.1 million of capacity under the Capital One Revolving Financing. As of June 30, 2026, we had $109.9 million of senior securities outstanding at par value and our asset coverage ratio based on par value was 145.2%. 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, 2026, our asset coverage for borrowed amounts was 148.0%.
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, 2026, our asset coverage for borrowed amounts was 145.2%.
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, 2026, our off-balance sheet arrangements consisted of $3.6 million in unfunded commitments to six of our portfolio companies. As of December 31, 2025, our off-balance sheet arrangements consisted of $3.7 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, 2026, our off-balance sheet arrangements consisted of $3.8 million in unfunded commitments to six of our portfolio companies. As of December 31, 2025, our off-balance sheet arrangements consisted of $3.7 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, 2026, and through May 12, 2026, the Company invested a total of $2.0 million, at cost, which included investments in one existing portfolio company. As of May 12, 2026, the Company had investments in 34 portfolio companies.
Current wording
Subsequent to June 30, 2026, and through August 14, 2026, the Company invested a total of $0.2 million, which included investments in two existing portfolio companies, and received approximately $0.7 million from the repayment of three positions. As of August 14, 2026, the Company had investments in 30 portfolio companies.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Net change in unrealized appreciation (depreciation) on investments
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations