Chicago Atlantic BDC, Inc. (LIEN) reported a net increase in net assets resulting from operations of $33.3 million for the year ended December 31, 2025, compared to $9.6 million for the year ended December 31, 2024. This translates to a net investment income of $1.45 per share for 2025, up from $0.91 per share in 2024. The increase was primarily driven by a significant growth in the average fair value of the investment portfolio, which rose from approximately $109.8 million in 2024 to $310.4 million in 2025, following the Loan Portfolio Acquisition and subsequent originations. Total investment income for 2025 reached $54.3 million, a substantial increase from $21.7 million in the previous year.
Operating expenses also increased, totaling $23.2 million in 2025 compared to $12.2 million in 2024. This rise was mainly due to higher income-based incentive fees, which increased by $6.0 million, and a $3.9 million increase in management fees, both driven by the growth in the asset base. General and administrative expenses also saw a significant increase of $3.9 million. However, these increases were partially offset by a $1.3 million reduction in expenses due to the expense limitation agreement, which expired on September 30, 2025, and was not renewed.
A key strategic development was the completion of the Loan Portfolio Acquisition on October 1, 2024, where LIEN issued 16,605,372 shares of its common stock in exchange for a loan portfolio valued at $219.6 million. This acquisition significantly expanded the company's investment portfolio. Additionally, the Adviser and Chicago Atlantic BDC Holdings, LLC consummated a joint venture to combine their investment management businesses. As of December 31, 2025, Chicago Atlantic managed approximately $2.3 billion in capital.
As of December 31, 2025, LIEN's investment portfolio, with a fair value of $333.3 million, consisted primarily of first lien senior secured loans (87.8%), senior secured notes (11.2%), and smaller allocations to second lien senior secured loans (0.4%) and equity securities (0.6%). The portfolio was geographically diversified across the United States, with significant concentrations in the Midwest (41.7%), Northeast (20.2%), and West (19.6%). The majority of investments were in the cannabis industry (74.7%), followed by finance and insurance (7.7%) and information (6.0%). As of December 31, 2025, the Company had $25 million in outstanding borrowings and $75 million available under its revolving line of credit, with an asset coverage ratio of 1314%. The company's dividend reinvestment plan was terminated with an effective date of December 31, 2025.
About Chicago Atlantic BDC, Inc.
Chicago Atlantic BDC, Inc. is a specialty finance company investing primarily in debt and equity in highly regulated, complex industries, notably the cannabis sector. It provides secured and unsecured loans, equity, and warrants to private companies, focusing on lower middle-market businesses needing growth, refinancing, or strategic liquidity solutions. The firm leverages industry expertise, strong origination networks, and conservative capital structures to generate risk-adjusted returns.
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