Investcorp Credit Management BDC, Inc.

For the quarter ended December 31, 2025, net investment income before taxes was $0.3 million, or $0.02 per share before taxes, down $0.02 per share sequentially. Portfolio fair value was $172.7 million versus $196.1 million at September 30, and net assets were $61.3 million, down $11.4 million sequentially. NAV per share declined to $4.25 from $5.04, and gross leverage was 2.02x versus 1.75x previously; net leverage was 1.78x versus 1.59x. The weighted average yield of the debt portfolio was 10.6%, and the weighted average spread on floating-rate debt was 4.5%. Liquidity at quarter-end was approximately $15 million in cash, including $10.4 million of restricted cash, plus $41.1 million of unused capacity under the revolving credit facility, with $8.7 million available under the borrowing base. For the quarter, ICMB invested $1.5 million in Axiom Global and fully realized three investments for $8.2 million in proceeds with an IRR of approximately 10.6%. Management did not provide next-quarter or full-year financial guidance on the call.

Suhail Shaikh framed the quarter around a difficult macro and market backdrop, with sponsor-driven transaction volume still below historical norms and credit markets open but not robust. He said the company’s priorities are preserving capital, maintaining disciplined underwriting, and actively managing nonaccruals. He also highlighted the strategic review, the refinancing that extended maturities, and the portfolio’s broad diversification and first-lien orientation as the main pillars of the near-term plan.

Andrew Muns focused on the quarter’s financial deterioration in NAV and leverage, noting net assets fell by $11.4 million, including a $9.4 million decrease from operations and a $2 million dividend shortfall relative to NII. He cited the 2.02x gross leverage and 1.78x net leverage, and said the February paydown of about $14 million improved asset coverage from 150% to 155%; on a pro forma basis, net leverage would have been closer to 1.8x had the paydown occurred at quarter-end. He also detailed liquidity of about $15 million in cash and $41.1 million of revolver availability, while portfolio yield was 10.6% and 98% of debt investments remained floating rate.

The main analyst question focused on fee alignment and whether management would reduce fees while the strategic review is underway, given the fund’s expenses and the new affiliate-provided financing. Suhail replied that fee reduction is a tool they have used before and could use again if needed, but emphasized alignment because the manager’s affiliate provided the $65 million refinancing and owns about 25% of the shares. The analyst also expressed concern that time is not on the company’s side and that adviser economics could affect motivation; management did not comment on strategic options beyond the stated review process.