Chicago Atlantic BDC Reports Significant Growth in Investment Income and Assets for Q2 2025

Chicago Atlantic BDC, Inc. reported significant financial growth in its latest quarterly filing, with total investment income reaching approximately $13.1 million for the three months ended June 30, 2025, compared to $3.1 million for the same period in 2024. For the six months ending June 30, 2025, total investment income was approximately $25.0 million, up from $5.8 million in the prior year. The increase in revenue was primarily driven by a substantial rise in interest income, which amounted to $11.9 million for the second quarter of 2025, compared to $2.8 million in the same quarter of 2024. The company also reported net investment income of approximately $7.7 million for the second quarter, a significant increase from $1.5 million in the previous year.

The company’s total assets increased to approximately $331.8 million as of June 30, 2025, up from $309.6 million at the end of 2024. This growth was largely attributed to the acquisition of a loan portfolio from Chicago Atlantic Loan Portfolio, LLC, which was completed on October 1, 2024. The acquisition involved the issuance of 16.6 million shares of common stock in exchange for loans valued at approximately $219.6 million. As a result of this transaction, the company’s net assets rose to approximately $301.8 million, reflecting a net asset value per share of $13.23, slightly up from $13.20 at the end of 2024.

Operationally, Chicago Atlantic BDC has expanded its investment portfolio, which now includes 33 portfolio companies, with a fair value of approximately $307.5 million. The portfolio is heavily weighted towards the cannabis industry, which constitutes about 78.4% of the total investments. The company has also maintained a strong focus on first lien, senior secured loans, which represent 87% of its total investments. The geographic distribution of investments shows a diverse presence across the United States, with significant allocations in the Midwest and West regions.

The company’s expenses also saw a notable increase, with total operating expenses for the six months ended June 30, 2025, amounting to approximately $11.5 million, compared to $4.4 million in the same period of 2024. This rise in expenses was driven by higher management and incentive fees, reflecting the growth in the company’s asset base and operational complexity. Despite the increase in expenses, the company’s net increase in net assets resulting from operations was approximately $8.6 million for the second quarter of 2025, compared to $1.3 million in the same quarter of 2024.

Looking ahead, Chicago Atlantic BDC remains optimistic about its growth trajectory, particularly within the cannabis sector, which continues to show potential for expansion. The company plans to leverage its recent acquisitions and strategic partnerships to enhance its investment capabilities and drive shareholder value. However, it also acknowledges the inherent risks associated with the cannabis industry, including regulatory challenges and market volatility, which could impact future performance.