Investcorp Credit Management BDC, Inc. Q2 FY2025 earnings call

• Appointed Andrew Muns as Chief Operating Officer. - Net investment income drop due to lower yields and mark-to-market fluctuations. - Portfolio well-positioned despite economic uncertainties; ~30% may face tariff effects, with mitigation strategies. - Targeted critical sectors like data center; credit quality improved with lower non-accrual rate. - Invested in 2 new and 2 existing portfolio companies; realized $7.6 million from 2 investments with IRR 17.2%. - Declared $0.12 per share dividend for Q1 2025, payable May 16, 2025.

For the quarter ending December 31, 2024, net investment income was $0.8 million or $0.06 per share, down from $0.16 per share in prior quarter. Net asset value per share decreased to $5.39 from $5.55. Fair value of portfolio was $191.6 million vs $190.1 million prior. Weighted average yield of debt portfolio was 10.4%, down slightly from 10.5% prior. 81.2% of investments were in first lien debt, 18.8% in equity/warrants. Largest industry concentrations by fair market value: professional services 14.4%, containers and packaging 10.5%, etc.

• Focus on 2025: capital preservation and NAV stability. - Disciplined investment approach and strategic focus on critical sectors to navigate market landscape.

• Market volatility and spread compression. - Uncertainty from tariff wars and fiscal policy changes affecting M&A activity. - Impact of tariffs on ~30% of portfolio.

Q: How was the cause for the drop in PIK income quarter-over-quarter?

A: The increase in PIK income in the September quarter was from reversing non-accrual for Klein Hersh, making the December quarter seem lower but consistent.

Q: Sustainability of the dividend?

A: Monitoring portfolio, 18% in non-income generating assets, will evaluate with board.

Q: Fiscal year change?

A: Changed from June to December, so 10-KT filed instead of 10-Q.

Q: Trend in investment yield?

A: Likely similar, spreads not expected to widen unless economic shock, watching tariff impact.