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1. Company Snapshot

1.a. Company Description

Investcorp Credit Management BDC, Inc.is a business development company specializing in loan, mezzanine, middle market, growth capital, acquisitions, market/product expansion, organic growth, refinancings and recapitalization investments.It also selectively invests in mezzanine loans/structured equity and in the equity of portfolio companies through warrants and other instruments, in most cases taking such upside participation interests as part of a broader investment relationship.


The fund typically invests in United States and Europe.Within United States, the fund seeks to invest in Midatlantic, Midwest, Northeast, Southeast, and West Coast regions.The fund primarily invests in cable and satellites; consumer services; healthcare equipment and services; industrials; information technology; telecommunication services; and utilities sectors.


The fund seeks to invest between $5 million to $25 million in companies that have annual revenues of at least $50 million with EBITDA at least $15 million.

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1.b. Last Insights on ICMB

Investcorp Credit Management BDC, Inc.'s recent performance has been driven by its attractive yield of around 9.5%, making it an attractive option for income-seeking investors. Additionally, the company's ability to tap into the small and uninvestable BDC universe has rendered it susceptible to emotional and unsubstantiated flows, creating potential dislocations. With a solid track record and no recent earnings release, the company's focus on delivering strong returns to investors has likely contributed to its recent momentum. Furthermore, the company's ability to maintain a stable and growing income stream has likely alleviated concerns among investors.

1.c. Company Highlights

2. Investcorp Credit Management BDC's Q3 Earnings: A Closer Look at Performance

Investcorp Credit Management BDC reported net investment income before taxes of $0.6 million or $0.03 per share for the quarter ended September 30, 2025, missing analyst estimates of $0.05 per share. The decline in earnings per share was primarily driven by a decrease in income-earning assets due to the loss of PIK dividend income from Fusion's preferred equity position, which was placed on non-accrual status, as well as portfolio repayments. The company's net assets declined by approximately 4% to $72.7 million, with a net asset value per share of $5.04, down from $5.27 last quarter.

Publication Date: Nov -30

📋 Highlights
  • Portfolio Composition and Cash Position:: 78% in first-lien debt, 22% in equity; $11.6M cash ($7.8M restricted) and $36.5M credit facility capacity.
  • Investments and Realizations:: $25K in preferred equity of 4L Technologies; realized $6.5M from two investments with 12.7% IRR.
  • Distributions and Parent Backstop:: Declared $0.12 + $0.02/share; parent committed to refinance $65M notes at SOFR+550.
  • Net Investment Income Decline:: Fell to $0.6M ($0.04/share) vs. $0.06/share prior, driven by non-accruals and portfolio repayments.
  • Net Assets and Non-Accruals:: Net assets dropped 4% to $72.7M; non-accruals rose to 4.4% of portfolio (vs. 1.6% prior).
  • Portfolio Strength Metrics:: Weighted average interest coverage improved to 2.3x (vs. 2.0x prior), with LTV at 41% and leverage at 4.6x.
  • Investments and Realizations:: Invested $25K in 4L Technologies’ preferred equity; realized $6.5M from two investments (12.7% IRR).
  • Distributions and Parent Backstop:: Declared $0.14/share distribution ($0.12 + $0.02 supplemental); parent committed to refinance $65M notes at SOFR+550.

Portfolio Performance and Credit Quality

The portfolio remains relatively healthy, with approximately 82% of assets rated in the top two risk rating categories. However, non-accruals accounted for 4.4% of the portfolio's fair value, up from 1.6% last quarter. The weighted average interest coverage ratio improved to 2.3x compared to 2x a year ago, reflecting enhanced portfolio strength. The weighted average loan-to-value (LTV) remains approximately 41%, while weighted average leverage declined to 4.6x.

Investment Activity and Liquidity

The company invested approximately $25,000 in the preferred equity of 4L Technologies, an existing portfolio company, and fully realized two portfolio company investments, generating total proceeds of $6.5 million with an IRR of approximately 12.7%. The company had approximately $11.6 million of cash, with $7.8 million restricted, and $36.5 million of capacity under its revolving credit facility.

Valuation and Outlook

With a P/B Ratio of 0.58 and a Dividend Yield of 16.39%, Investcorp Credit Management BDC appears to be offering an attractive income stream relative to its book value. Analysts estimate next year's revenue growth at -74.1%, indicating a potential decline in the company's financial performance. The company's Board of Directors declared a distribution for the quarter ended December 31, 2025, of $0.12 per share and a supplemental distribution of $0.02 per share.

Refinancing and Capital Structure

Investcorp Capital, the company's parent affiliate, has provided a backstop commitment to refinance the $65 million notes due April 1, 2026, with a new coupon of SOFR plus 550, providing a measure of comfort regarding the company's near-term debt obligations.

3. NewsRoom

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Investcorp Credit Management BDC, Inc. (ICMB) Q2 2026 Earnings Call Transcript

Nov -13

Source: seekingalpha.com

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Investcorp Credit Management BDC, Inc. Announces Financial Results for the Quarter Ended September 30, 2025, and Quarterly and Supplemental Distribution

Nov -13

Source: businesswire.com

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Investcorp Credit Management BDC, Inc. Schedules Earnings Release for the Third Quarter Ended September 30, 2025

Nov -12

Source: businesswire.com

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Investcorp Credit Management BDC, Inc. Schedules Earnings Release for the Second Quarter Ended September 30, 2025

Nov -11

Source: businesswire.com

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Nuveen Churchill Direct Lending (NYSE:NCDL) and Investcorp Credit Management BDC (NASDAQ:ICMB) Head-To-Head Contrast

Oct -31

Source: defenseworld.net

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Investcorp Credit Management BDC, Inc. (ICMB) Q4 2025 Earnings Call Transcript

Aug -20

Source: seekingalpha.com

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Investcorp Credit Management BDC, Inc. Announces Financial Results for the Quarter Ended June 30, 2025, and Quarterly and Supplemental Distribution

Aug -12

Source: businesswire.com

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Investcorp Credit Management BDC, Inc. Schedules Earnings Release for the Second Quarter Ended June 30, 2025

Aug -11

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (0.00%)

6. Segments

Investment and Related Activities

Expected Growth: 8.5%

Growing demand for middle-market corporate loans, increasing investments in debt securities, and expanding presence in the US market drive growth for Investcorp Credit Management BDC, Inc.

7. Detailed Products

Senior Secured Loans

Investcorp Credit Management BDC, Inc. provides senior secured loans to middle-market companies, offering a flexible and customized financing solution to meet their capital needs.

Unitranche Loans

Investcorp Credit Management BDC, Inc. offers unitranche loans, a single loan that combines the benefits of senior and subordinated debt, providing a simplified and efficient financing solution.

Second Lien Loans

Investcorp Credit Management BDC, Inc. provides second lien loans, offering a flexible and patient source of capital for middle-market companies.

Equity Co-Investments

Investcorp Credit Management BDC, Inc. makes equity co-investments alongside its debt investments, providing a comprehensive financing solution for middle-market companies.

Special Situations Financing

Investcorp Credit Management BDC, Inc. provides special situations financing, offering a flexible and customized financing solution for companies facing unique challenges or opportunities.

8. Investcorp Credit Management BDC, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Investcorp Credit Management BDC, Inc. is medium due to the presence of alternative investment options for investors, but the company's diversified portfolio and strong management team mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is low for Investcorp Credit Management BDC, Inc. as the company's investment products are diversified and cater to a wide range of investors, reducing the dependence on individual customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium for Investcorp Credit Management BDC, Inc. as the company relies on a diverse range of suppliers for its investment products, but has some flexibility to negotiate prices and terms.

Threat Of New Entrants

The threat of new entrants is high for Investcorp Credit Management BDC, Inc. as the investment management industry is highly competitive and new entrants can easily enter the market, posing a threat to the company's market share.

Intensity Of Rivalry

The intensity of rivalry is high for Investcorp Credit Management BDC, Inc. as the investment management industry is highly competitive, and the company faces intense competition from established players and new entrants.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 79.30%
Debt Cost 6.77%
Equity Weight 20.70%
Equity Cost 12.33%
WACC 7.92%
Leverage 383.09%

11. Quality Control: Investcorp Credit Management BDC, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Investcorp Credit Management BDC

A-Score: 6.5/10

Value: 7.8

Growth: 3.8

Quality: 7.3

Yield: 10.0

Momentum: 3.0

Volatility: 7.0

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Newtek Business Services

A-Score: 6.3/10

Value: 8.2

Growth: 4.2

Quality: 6.1

Yield: 10.0

Momentum: 3.0

Volatility: 6.0

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SWK Holdings

A-Score: 6.2/10

Value: 6.6

Growth: 3.6

Quality: 8.3

Yield: 10.0

Momentum: 1.5

Volatility: 7.0

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Silvercrest Asset Management Group

A-Score: 5.8/10

Value: 6.5

Growth: 3.0

Quality: 6.4

Yield: 8.0

Momentum: 3.0

Volatility: 7.7

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Bridge Investment Group Holdings

A-Score: 4.7/10

Value: 5.3

Growth: 2.0

Quality: 3.6

Yield: 8.0

Momentum: 4.0

Volatility: 5.3

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Stock-Card
Equus Total Return

A-Score: 4.7/10

Value: 8.2

Growth: 3.1

Quality: 4.9

Yield: 0.0

Momentum: 9.5

Volatility: 2.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2.85$

Current Price

2.85$

Potential

-0.00%

Expected Cash-Flows