BCIC · BCP Investment Corporation

BCP Investment Corporation reported first quarter 2026 results showing total investment income of $17.6 million, a slight increase from $17.5 million in the prior quarter driven by $16.0 million in interest income from the debt securities portfolio, including payment-in-kind income. Core investment income, excluding purchase discount accretion from prior mergers with Garrison Capital Inc., Harvest Capital Credit Corporation, and Logan Ridge Finance Corporation, rose to $14.8 million from $14.2 million, reflecting underlying portfolio yield strength at a weighted average annualized yield of 12.8% excluding non-accruals and CLOs. However, net investment income declined to $6.9 million or $0.55 per share from $7.4 million or $0.57 per share, primarily due to higher total expenses of $10.7 million versus $10.1 million previously, amid increased borrowings. NAV dropped to $193.0 million or $15.60 per share from $209.2 million or $16.68 per share, largely from $14.6 million in unrealized depreciation, with 40% tied to software investments and 70% including software-exposed names, attributed by management to sector dislocation rather than credit issues. The investment portfolio at fair value shrank to $476.9 million across 108 entities, reflecting net repayments of $15.0 million after $13.3 million deployments and $28.3 million inflows. Non-accruals improved to 2.6% at fair value (12 investments in 9 companies) from 4.0%, signaling stabilizing credit quality. Leverage rose with borrowings at $342.2 million par value (asset coverage 156%), though net leverage remained steady at 1.5x after accounting for $58.0 million in cash. CEO Ted Goldthorpe highlighted execution on shareholder initiatives post-2025 merger, including accretive share repurchases of 172,159 shares for $2.1 million adding $0.07 to NAV per share, and disciplined deployment in lower middle market. The board approved a Q3 base distribution of $0.27 per share monthly and Q2 supplemental of $0.03 per share, totaling $0.30 for Q2, affirming commitment to returns amid active portfolio management.