BCP Investment Corp. Q4 FY2025 earnings call

• 2025 was a transformational year: Completed merger with Logan Ridge in July, rebranded and changed name in August, completed tender offer in December (purchased ~558,000 shares at ~$7.6 million, accretive to NAV by 18 cents per share), proactively extended and laddered unsecured debt maturities, issued $75 million of seven and three quarters notes due October 2030 and $35 million of seven and a half percent notes due October 2028, redeemed 4 and seven eighths notes due 2026. - Board approved quarterly base distribution of 32 cents per share for the quarter ended March 31, 2026, and transition of base dividend payment schedule from quarterly to monthly starting April 2026, with regular monthly - based distribution of $0.09 per share for April, May, and June 2026. - Authorized renewed stock purchase program of up to $10 million for approximately one year. - In fourth quarter, generated net investment income of $7.4 million or $0.57 per share, compared to $8.8 million or 71 cents per share in prior quarter. - Proactive in evaluating software - related exposure through AI disruption lens, with majority of software exposure assessed as low to medium AI impact. - Intentionally prudent in new investment deployment in fourth quarter, looking to deploy into attractive opportunities as conditions warrant, staying disciplined in sponsored backtrack lending, prioritizing transactions with appropriate economics, strong documentation, and downside protection.

For the fourth quarter ended December 31, 2025, net investment income was $7.4 million or $0.57 per share, a $1.5 million decrease from the prior quarter. For the year, net investment income was $25.1 million or $2.28 per share compared to $24 million or $2.59 per share in 2024. Originations for the fourth quarter were $9.6 million, repayments and sales were $40.4 million, resulting in net repayments and sales of approximately $30.8 million. The investment portfolio at year-end was highly diversified, spread across 74 different portfolio companies and 34 different industries. There were 13 investments on non-accrual status at year-end, representing 4.0% and 7.1% of the portfolio at fair value and cost respectively. Excluding non-accrual investments, the aggregate debt investment portfolio was $391.7 million at fair value, with a blended price of 92.7% of par value and 81.5% first - lien loans at par value.

• Anticipate increased activity in M&A market in 2026 and expect to capitalize on opportunities in portfolio. - Board approved quarterly base distribution of 32 cents per share for the quarter ended March 31, 2026, and transition of base dividend payment schedule to monthly starting April 2026 with regular monthly - based distribution of $0.09 per share for April, May, and June 2026. - Authorized renewed stock purchase program of up to $10 million for approximately one year.

• Public software valuations have had a risk - off move due to uncertainty and speculation around AI adoption, although majority of software exposure in portfolio is assessed as low to medium AI impact. - Competition in sponsored backtrack lending is elevated, particularly for higher quality assets, with lenders competing on spreads, terms, and certainty of execution. - The non - recurring item in the Great Lakes Joint Venture distribution impacted dividend income in the fourth quarter. - There are risks related to the valuation of portfolio companies, such as holdup value issues in some sale processes and challenges in selling business units at desired valuations.

Q: Eric Zwick from Lucid Capital Markets asked about the mix of growth from organic and acquisition, pipeline for growth, and use of buyback as capital.

A: Ted said they don't see organic growth, consider buyback an attractive use of capital, M&A pipeline is big including public and unlisted entities.

Q: Eric Zwick also asked about dividend income in the quarter.

A: Brandon said the decrease was due to a non - recurring item in the Great Lakes Joint Ventures distribution.

Q: Christopher Nolan from Lederberg-Tolman asked about the declining dividend as a proxy for earnings run rate and realized loss driver.

A: Chris was told the declining dividend was due to a non - recurring item and Patrick provided color on the realized loss driver being a portfolio company.

Q: Christopher Nolan also asked about strategic growth drivers and potential BDC sellers.

A: Ted said there are a lot of permanent capital vehicles for sale and the pipeline is robust.

Q: Angelo Guarino from a private investor asked about NAV decline and when the turn will occur.

A: Ted said they are open to having a broad discussion offline.

Q: Paul Johnson from KBW asked about value provision for shareholders and other ways to stabilize the portfolio.

A: Ted said they should provide more disclosure about asset purchase and monetization and continue to lay out the roadmap.