0001193125-26-115112
SEC filingChicago Atlantic BDC, Inc. (LIEN) reported strong FY 2025 performance, driven by portfolio expansion post Loan Portfolio Acquisition. Total investment income reached $54.3M, up significantly from $21.7M in 2024, fueled by $49.3M interest income and $5.0M fee income. Net investment income was $33.1M, boosted by net expenses of $21.2M after waivers. Net increase in net assets from operations hit $33.3M, compared to $9.6M in 2024. Investments grew to $333.3M (non-control/non-affiliate at fair value), from $275.2M prior year, with total assets at $342.0M and net assets $303.4M (NAV per share $13). Cash from operations was -$20.5M amid $156.2M purchases offset by $103.6M repayments. Leverage included $25.0M revolving line. This growth underscores successful scaling in cannabis-focused lending, positioning for sustained income generation amid floating-rate portfolio (71.8% of debt).
Chicago Atlantic BDC, Inc. delivered robust FY 2025 results with net increase in net assets from operations at $33.3M, up 246% from $9.6M in 2024. Total investment income surged to $54.3M (from $21.7M), driven by interest income $49.3M and fees $5.0M. Net investment income $33.1M followed net expenses $21.2M after $658K waiver and $1.3M limitation. Per share, NII $1 and operations $1 on 22.8M weighted shares. Balance sheet strengthened: investments $333.3M (up from $275.2M), total assets $342.0M, net assets $303.4M (NAV $13 vs $13.20 prior). No realized losses; unrealized gains $208K.
Investment income dominated at $54.3M, primarily non-control/non-affiliate: interest $49.3M, fees $5.0M. Portfolio emphasized first lien senior secured US debt ($333.3M total), with cannabis heaviest ($333.3M). Geographic: Midwest/Northeast/West key. Growth from Loan Portfolio Acquisition expanded scale; floating-rate debt 71.8% (SOFR/Prime), 63% at floors. No segment revenue breakdown beyond investment types.
Net investment margin implicit at ~61% ($33.1M/$54.3M income). Expenses $23.2M (incentive $8.3M, management $5.5M, G&A $4.6M, interest $1.2M), reduced to $21.2M net via waivers. Per share NII $1 stable YoY despite share growth. No traditional gross/operating margins; focus on NII yield.
Operating cash -$20.5M: ops $33.3M offset by $156.2M purchases, $103.6M repayments, PIK -$2.6M. Financing -$520K: distributions $23.3M, borrowings net $25.0M. Cash end $2.9M (down $21.0M). Leverage: revolver $25.0M (total liabilities $38.6M). Strong liquidity via $100M facility.
Management highlights cannabis focus, floating rates for income. Risks: interest rate volatility (sensitivity: +100bps nets +$1.1M NII), cannabis regulation, non-qualifying assets 4.2%. Pipeline $732M; targets 70% qualifying assets. No specific guidance; emphasizes compliant lending.