Chicago Atlantic BDC Reports Significant Financial Growth with $11.9M Investment Income

Chicago Atlantic BDC, Inc. reported significant financial growth in its latest quarterly filing, with total investment income reaching approximately $11.9 million for the three months ended March 31, 2025, compared to $2.8 million for the same period in 2024. This increase was primarily driven by a substantial rise in interest income, which surged to $11.3 million from $2.7 million year-over-year. The company also recorded net investment income of approximately $7.6 million, a notable recovery from a loss of $79,809 in the previous year. The net asset value per share slightly decreased to $13.19 from $13.20 at the end of the previous fiscal period.

The company’s total assets increased to $313.7 million as of March 31, 2025, up from $309.6 million at the end of 2024. This growth was largely attributed to the acquisition of a loan portfolio valued at $219.6 million, completed on October 1, 2024, which involved issuing 16.6 million shares of common stock. The acquisition has expanded the company’s investment portfolio, which now includes a diverse range of companies, primarily in the cannabis sector, representing 79.2% of the total investments.

Operationally, Chicago Atlantic BDC has seen a significant increase in its investment portfolio, which grew to approximately $289.3 million, up from $275.2 million at the end of 2024. The company’s portfolio now consists of 31 companies, with a focus on first lien, senior secured loans. The firm has also expanded its geographic reach, with investments spread across various regions in the United States and Canada. As of March 31, 2025, the company had no loans in non-accrual status, indicating a stable performance in its investment portfolio.

In terms of strategic developments, the company has made key organizational changes, including the appointment of Martin Rodgers as Chief Financial Officer and Peter Sack as Chief Executive Officer following the resignations of their predecessors. These leadership changes are expected to enhance the company's operational efficiency and strategic direction. Additionally, the company has entered into a senior secured revolving credit agreement, providing it with up to $100 million in credit, which will support its investment activities and operational needs.

Looking ahead, Chicago Atlantic BDC anticipates continued growth driven by its strategic focus on the cannabis industry and other underserved sectors. The company remains committed to maximizing risk-adjusted returns for its shareholders while navigating the complexities of the regulatory landscape surrounding its investments. The management has expressed confidence in its ability to leverage its expanded portfolio and new credit facilities to enhance its financial performance in the coming quarters.