Investcorp Credit Management BDC, Inc. (NASDAQ: ICMB) (“ICMB” or the “Company”) announced its financial results today for its fiscal quarter ended September 30, 2026.
HIGHLIGHTS
- During the quarter, the Company had net advances of $0.7 million on delayed draw and revolving credit commitments to portfolio companies.
- The weighted average yield on debt investments, at fair market value, as of September 30, 2026, was 9.53% compared to 10.51% as of June 30, 2026.
- Net asset value decreased $0.42 per share to $3.02, compared to $3.44 as of June 30, 2026. Net assets decreased by $6.0 million, or 12.16%, during the quarter ended September 30, 2026 compared to June 30, 2026.
- ICMB's investment adviser waived all management fees earned for the quarter and waived the remaining $0.2 million of previously accrued income-based incentive fees payable.
- Company maintains portfolio flexibility amid market volatility through sizable exposures to first-lien and floating rate instruments.
Portfolio results, as of and for the three months ended September 30, 2026:
Total assets |
$152.7 million |
Investment portfolio, at fair value |
$132.7 million |
Net assets(1) |
$43.6 million |
Weighted average yield on debt investments, at fair market value (2) |
9.53% |
Net asset value per share(1) |
$3.02 |
Portfolio activity in the current quarter: |
|
Number of investments in new portfolio companies during the period |
0 |
Number of portfolio companies invested in, end of period |
31 |
Total capital invested in existing portfolio companies (3) |
$1.0 million |
Total proceeds from repayments and amortization (4) |
$1.9 million |
Net investment loss before taxes (NII) |
($1.8) million |
Net investment loss before taxes per share |
($0.13) |
Net decrease in net assets from operations |
($4.8) million |
Net decrease in net assets from operations per share |
$(0.33) |
Distributions paid per common share |
$0.00 |
| (1) See 'Adjusted Net Asset Value' section below for explanation and calculation of Adjusted Net Asset Value and Adjusted Net Asset Value per Share. | |
| (2) Represents average yield on total debt investments weighted by fair market value as of September 30, 2026. The weighted average yield on total debt investments reflected above does not represent actual investment returns to the Company’s stockholders. | |
| (3) Includes gross advances for delayed draw and revolving credit commitments and PIK interest to existing portfolio companies. | |
| (4) Includes gross repayments on existing delayed draw and revolving credit commitments to portfolio companies. | |
Mr. Suhail A. Shaikh, chief executive officer of ICMB, said “Our focus this quarter was to maintain asset quality as we evaluated strategic alternatives to enhance shareholder value”.
Mr. Andrew Muns, chief financial officer of ICMB, noted: “Liquidity remained a high priority for us during the quarter.”
Portfolio and Investment Activities
The Company received proceeds of $1.9 million from repayments and amortization during the quarter.
During the quarter, the Company had net advances of $0.7 million on delayed draw and revolving credit commitments to portfolio companies.
The Company’s net unrealized gains and losses accounted for a decrease in the Company’s net investments of approximately $3.0 million, or $0.20 per share. The total net decrease in net assets resulting from operations for the quarter was $4.8 million, or $0.33 per share.
As of September 30, 2026, the Company’s investment portfolio consisted of investments in 31 portfolio companies, of which 85.56% were first lien investments, 14.32% were equity, warrants, and other investments, and 0.12% was unsecured debt. The Company’s debt portfolio consisted of 97.3% floating rate investments and 2.7% fixed rate investments.
Capital Resources
As of September 30, 2026, the Company had $18.8 million in cash, of which $9.2 million was restricted cash, and $10.1 million of unused commitment under its revolving credit facility with Capital One, N.A. (the “Capital One Revolving Facility”).
As of September 30, 2026, the Company had availability to borrow $5.5 million from the revolving credit facility based on the borrowing base.
Prior Period Corrections
In the Form 10-Q for the quarter ended June 30, 2026, the Company identified and corrected errors related to the assessment of gross income for purposes of the gross income test under Subchapter M of the Code for the tax years ended December 31, 2025 and 2024 resulting in tax adjustments of approximately $0.9 million and $1.1 million, respectively. After filing its June 30, 2026 Form 10-Q, the Company identified additional information that increased the tax adjustments by approximately $1.2 million for 2025 and $0.1 million for 2024, which have been corrected in the September 30, 2026 Form 10-Q.
Net Asset Value to Adjusted Net Asset Value
In the quarter ended June 30, 2026, the Company recorded a Tax Liability under Section 851(i) associated with the tax periods ending December 31, 2024 and December 31, 2025 totaling $2.0 million, which was partially offset by a related reduction in incentive fee payable of $0.1 million. Also in the quarter ended June 30, 2026, the Adviser waived $0.6 million of management fees earned and agreed to waive $0.2 million of previously earned incentive fees as well as $1.1 million of future management and incentive fees (the "Waiver of Future Management and Incentive Fees") to the extent such fees are earned.
In the quarter ended September 30, 2026 the Adviser waived the previously earned incentive fees of $0.2 million, as announced, as well as an additional $0.6 million of management fees earned in the quarter. The Adviser plans to waive future management and incentive fees up to the remaining $0.6 million to the extent earned. The Waiver of Future Management and Incentive Fees are not reflected in the Company's reported net asset value ("NAV") as of September 30, 2026. If the Company were able to recognize the Waiver of Future Management and Incentive Fees as of September 30, 2026, NAV would have increased by $0.6 million.
The following table shows a Reconciliation of Net Asset Value to Adjusted Net Asset Value:
Net Asset Value at September 30, 2026 |
|
$ |
43,648,682 |
|
|
|
|
|
|
Waiver of Future Management and Incentive Fees |
|
|
585,469 |
|
|
|
|
|
|
Adjusted Net Asset Value at September 30, 2026 |
|
$ |
44,234,151 |
|
|
|
|
|
|
Adjusted Net Asset Value per Share at September 30, 2026 |
|
$ |
3.06 |
|
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 Future Management and Incentive Fees, which are not reflected in the Company’s reported NAV as of September 30, 2026 as they relate to fees earned subsequent to September 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 Future Management and Incentive Fees, is detailed in the table above.
Subsequent Events
Subsequent to September 30, 2026 and through November 11, 2026, the Company received approximately $11.5 million from the repayment of five positions, including two full repayments. As of November 11, 2026, the Company had investments in 29 portfolio companies.
On October 13, 2026, the Company paid in full the additional tax (i.e., the Section 851(i) Tax Liability) based on the excess amount of nonqualifying income for the taxable years ended December 31, 2024 and December 31, 2025 in the amounts of approximately $1.2 million and $2.1 million, respectively.
On November 4, 2026, the Company repaid $10.0 million of outstanding borrowings under its Capital One Revolving Financing.
| Investcorp Credit Management BDC, Inc. and Subsidiaries
Consolidated Statements of Assets and Liabilities |
||||||||
|
|
September 30, 2026 |
|
|
December 31, 2025 |
|
||
|
|
(Unaudited) |
|
|
|
|
||
Assets |
|
|
|
|
|
|
||
Non-controlled, non-affiliated investments, at fair value (amortized cost of $146,871,938 and $177,110,265, respectively) |
|
$ |
124,330,108 |
|
|
$ |
159,985,717 |
|
Affiliated investments, at fair value (amortized cost of $14,033,671 and $13,340,494, respectively) |
|
|
8,399,491 |
|
|
|
12,673,145 |
|
Total investments, at fair value (amortized cost of $160,905,609 and $190,450,759, respectively) |
|
|
132,729,599 |
|
|
|
172,658,862 |
|
Cash and cash equivalents |
|
|
9,535,278 |
|
|
|
4,582,403 |
|
Restricted cash and cash equivalents |
|
|
9,224,004 |
|
|
|
10,416,042 |
|
Principal receivable |
|
|
6,242 |
|
|
|
55,377 |
|
Interest receivable |
|
|
719,485 |
|
|
|
808,703 |
|
Payment-in-kind interest receivable |
|
|
154,998 |
|
|
|
190,790 |
|
Prepaid expenses and other assets |
|
|
315,527 |
|
|
|
124,928 |
|
Total Assets |
|
$ |
152,685,133 |
|
|
$ |
188,837,105 |
|
Liabilities |
|
|
|
|
|
|
||
Debt: |
|
|
|
|
|
|
||
Revolving credit facility |
|
$ |
39,900,000 |
|
|
$ |
58,900,000 |
|
2029 Notes payable |
|
|
65,000,000 |
|
|
|
— |
|
2026 Notes payable |
|
|
— |
|
|
|
65,000,000 |
|
Deferred debt issuance costs |
|
|
(526,425 |
) |
|
|
(754,121 |
) |
Unamortized discount |
|
|
(1,014,576 |
) |
|
|
(17,778 |
) |
Debt, net |
|
|
103,358,999 |
|
|
|
123,128,101 |
|
Interest payable |
|
|
2,003,052 |
|
|
|
1,887,457 |
|
Base management fees payable |
|
|
— |
|
|
|
786,986 |
|
Income-based incentive fees payable |
|
|
— |
|
|
|
232,541 |
|
Deferred income liability |
|
|
— |
|
|
|
440,084 |
|
Directors' fees payable |
|
|
129,363 |
|
|
|
— |
|
Accrued expenses and other liabilities |
|
|
3,545,037 |
|
|
|
4,211,016 |
|
Total Liabilities |
|
|
109,036,451 |
|
|
|
130,686,185 |
|
Commitments and Contingencies (see Note 6) |
|
|
|
|
|
|
||
Net Assets |
|
|
|
|
|
|
||
Common stock, par value $0.001 per share (100,000,000 shares authorized and 14,432,472 and 14,432,472 shares issued and outstanding, respectively) |
|
|
14,432 |
|
|
|
14,432 |
|
Additional paid-in capital |
|
|
203,128,982 |
|
|
|
203,128,982 |
|
Distributable earnings (loss) |
|
|
(159,494,732 |
) |
|
|
(144,992,494 |
) |
Total Net Assets |
|
|
43,648,682 |
|
|
|
58,150,920 |
|
Total Liabilities and Net Assets |
|
$ |
152,685,133 |
|
|
$ |
188,837,105 |
|
Net Asset Value Per Share |
|
$ |
3.02 |
|
|
$ |
4.03 |
|
Investcorp Credit Management BDC, Inc. and Subsidiaries Consolidated Statements of Operations (unaudited) |
||||||||||||||||
|
|
For The Three Months Ended September 30, |
|
|
For The Nine Months Ended September 30, |
|
||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Investment Income: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-controlled, non-affiliated investments |
|
$ |
2,779,327 |
|
|
$ |
3,888,504 |
|
|
$ |
8,603,462 |
|
|
$ |
11,155,389 |
|
Non-controlled, affiliated investments |
|
|
14,182 |
|
|
|
— |
|
|
|
41,104 |
|
|
|
(1,934 |
) |
Total interest income |
|
|
2,793,509 |
|
|
|
3,888,504 |
|
|
|
8,644,566 |
|
|
|
11,153,455 |
|
Payment-in-kind interest income |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-controlled, non-affiliated investments |
|
|
106,804 |
|
|
|
340,359 |
|
|
|
393,908 |
|
|
|
1,102,374 |
|
Non-controlled, affiliated investments |
|
|
204,057 |
|
|
|
— |
|
|
|
585,620 |
|
|
|
21,137 |
|
Total payment-in-kind interest income |
|
|
310,861 |
|
|
|
340,359 |
|
|
|
979,528 |
|
|
|
1,123,511 |
|
Dividend income |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-controlled, non-affiliated investments |
|
|
— |
|
|
|
— |
|
|
|
61,659 |
|
|
|
81,607 |
|
Non-controlled, affiliated investments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total dividend income |
|
|
— |
|
|
|
— |
|
|
|
61,659 |
|
|
|
81,607 |
|
Payment-in-kind dividend income |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-controlled, non-affiliated investments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
452,742 |
|
Non-controlled, affiliated investments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total payment-in-kind dividend income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
452,742 |
|
Other fee income |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-controlled, non-affiliated investments |
|
|
25,304 |
|
|
|
127,621 |
|
|
|
128,666 |
|
|
|
459,132 |
|
Non-controlled, affiliated investments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total other fee income |
|
|
25,304 |
|
|
|
127,621 |
|
|
|
128,666 |
|
|
|
459,132 |
|
Other income |
|
|
10,050 |
|
|
|
— |
|
|
|
10,625 |
|
|
|
— |
|
Total investment income |
|
|
3,139,724 |
|
|
|
4,356,484 |
|
|
|
9,825,044 |
|
|
|
13,270,447 |
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense |
|
|
3,522,736 |
|
|
|
2,029,835 |
|
|
|
7,445,305 |
|
|
|
5,717,997 |
|
Base management fees |
|
|
642,098 |
|
|
|
877,923 |
|
|
|
2,172,622 |
|
|
|
2,577,693 |
|
Income-based incentive fees |
|
|
— |
|
|
|
(18,802 |
) |
|
|
(944 |
) |
|
|
(137,550 |
) |
Professional fees |
|
|
945,726 |
|
|
|
246,313 |
|
|
|
1,945,542 |
|
|
|
864,883 |
|
Allocation of administrative costs from Adviser |
|
|
198,486 |
|
|
|
225,390 |
|
|
|
468,145 |
|
|
|
707,287 |
|
Amortization of deferred debt issuance costs |
|
|
54,384 |
|
|
|
153,823 |
|
|
|
483,877 |
|
|
|
461,471 |
|
Amortization of original issue discount |
|
|
50,337 |
|
|
|
17,778 |
|
|
|
117,904 |
|
|
|
53,333 |
|
Insurance expense |
|
|
97,361 |
|
|
|
125,612 |
|
|
|
296,259 |
|
|
|
372,123 |
|
Directors' fees |
|
|
129,363 |
|
|
|
76,500 |
|
|
|
342,311 |
|
|
|
226,500 |
|
Custodian and administrator fees |
|
|
69,802 |
|
|
|
70,791 |
|
|
|
204,730 |
|
|
|
219,028 |
|
Other expenses |
|
|
117,433 |
|
|
|
84,848 |
|
|
|
393,943 |
|
|
|
368,735 |
|
Total expenses |
|
|
5,827,726 |
|
|
|
3,890,011 |
|
|
|
13,869,694 |
|
|
|
11,431,500 |
|
Waiver of base management fees |
|
|
(642,098 |
) |
|
|
(102,658 |
) |
|
|
(1,812,814 |
) |
|
|
(248,827 |
) |
Waiver of income-based incentive fees |
|
|
(231,597 |
) |
|
|
— |
|
|
|
(231,597 |
) |
|
|
— |
|
Net expenses |
|
|
4,954,031 |
|
|
|
3,787,353 |
|
|
|
11,825,283 |
|
|
|
11,182,673 |
|
Net investment income (loss) before taxes |
|
|
(1,814,307 |
) |
|
|
569,131 |
|
|
|
(2,000,239 |
) |
|
|
2,087,774 |
|
Income tax expense (benefit), including excise tax expense |
|
|
840 |
|
|
|
586,622 |
|
|
|
840 |
|
|
|
1,949,504 |
|
Net investment income (loss) after taxes |
|
|
(1,815,147 |
) |
|
|
(17,491 |
) |
|
|
(2,001,079 |
) |
|
|
138,270 |
|
Net realized and unrealized gain/(loss) on investments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net realized gain (loss) from investments |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-controlled, non-affiliated investments |
|
|
— |
|
|
|
— |
|
|
|
(2,117,046 |
) |
|
|
581,343 |
|
Non-controlled, affiliated investments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net realized gain (loss) from investments |
|
|
— |
|
|
|
— |
|
|
|
(2,117,046 |
) |
|
|
581,343 |
|
Net change in unrealized appreciation (depreciation) in value of investments |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-controlled, non-affiliated investments |
|
|
(1,622,748 |
) |
|
|
(1,307,380 |
) |
|
|
(5,417,282 |
) |
|
|
(779,718 |
) |
Non-controlled, affiliated investments |
|
|
(1,326,060 |
) |
|
|
(461,615 |
) |
|
|
(4,966,831 |
) |
|
|
(1,006,300 |
) |
Net change in unrealized appreciation (depreciation) on investments |
|
|
(2,948,808 |
) |
|
|
(1,768,995 |
) |
|
|
(10,384,113 |
) |
|
|
(1,786,018 |
) |
Total realized gain (loss) and change in unrealized appreciation (depreciation) on investments |
|
|
(2,948,808 |
) |
|
|
(1,768,995 |
) |
|
|
(12,501,159 |
) |
|
|
(1,204,675 |
) |
Net increase (decrease) in net assets resulting from operations |
|
$ |
(4,763,955 |
) |
|
$ |
(1,786,486 |
) |
|
$ |
(14,502,238 |
) |
|
$ |
(1,066,405 |
) |
Basic and diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings per share |
|
$ |
(0.33 |
) |
|
$ |
(0.12 |
) |
|
$ |
(1.00 |
) |
|
$ |
(0.07 |
) |
Weighted average shares of common stock outstanding |
|
|
14,432,472 |
|
|
|
14,431,202 |
|
|
|
14,432,472 |
|
|
|
14,421,267 |
|
Distributions paid per common share |
|
$ |
— |
|
|
$ |
0.14 |
|
|
$ |
— |
|
|
$ |
0.38 |
|
About Investcorp Credit Management BDC, Inc.
The Company is an externally managed, closed-end, non-diversified management investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940. The Company’s investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation through debt and related equity investments by targeting investment opportunities with favorable risk-adjusted returns. The Company seeks to invest primarily in middle-market companies that have annual revenues of at least $50 million and earnings before interest, taxes, depreciation, and amortization of at least $15 million. The Company’s investment activities are managed by its investment adviser, CM Investment Partners LLC. To learn more about Investcorp Credit Management BDC, Inc., please visit www.icmbdc.com.
Forward-Looking Statements
Statements included in this press release for the quarter ended September 30, 2026, may contain “forward-looking statements,” which relate to future performance, operating results, events and/or financial condition. Words such as “anticipates,” “expects,” “intends,” “plans,” “will,” “may,” “continue,” “believes,” “seeks,” “estimates,” “would,” “could,” “should,” “targets,” “projects,” and variations of these words and similar expressions are intended to identify forward-looking statements. Any forward-looking statements, including statements other than statements of historical facts, included in this press release are based upon current expectations, are inherently uncertain, and involve a number of assumptions and substantial risks and uncertainties, many of which are difficult to predict and are generally beyond the Company’s control.
Investors are cautioned not to place undue reliance on these forward-looking statements. Any such statements are likely to be affected by other unknowable future events and conditions, which the Company may or may not have considered, including, without limitation, changes in base interest rates and the effects of significant market volatility on our business, our portfolio companies, our industry and the global economy. Accordingly, such statements cannot be guarantees or assurances of any aspect of future performance or events. Actual results may differ materially from those anticipated in any forward-looking statements as a result of a number of factors and risks. More information on these risks and other potential factors that could affect actual events and the Company’s performance and financial results, including important factors that could cause actual results to differ materially from plans, estimates or expectations included herein, is or will be included in the Company’s filings with the Securities and Exchange Commission, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. All forward-looking statements speak only as of the date they are made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.
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Contacts
Investcorp Credit Management BDC, Inc.
Investor Relations
Email: icmbinfo@investcorp.com
Phone: (212) 703-1154
