Investcorp Credit Management BDC, Inc. reported its financial results for the third quarter of 2025, revealing a decline in both revenue and net investment income compared to the same period in the previous year. For the three months ended September 30, 2025, the company generated total investment income of $4.4 million, down from $6.8 million in the same quarter of 2024. This decrease was primarily attributed to lower interest income and a reduction in payment-in-kind (PIK) interest and dividend income. The net investment income after taxes for the quarter was $508,465, a significant drop from $2.3 million reported in the prior year, resulting in a loss of $0.09 per share compared to earnings of $0.46 per share in the same quarter of 2024.
In terms of overall financial health, Investcorp's total assets increased to $210.6 million as of September 30, 2025, compared to $206.9 million at the end of 2024. However, total net assets decreased to $72.7 million from $77.6 million, reflecting a decline in net asset value per share from $5.39 to $5.04. The company’s liabilities also rose, with total liabilities reaching $137.9 million, up from $129.2 million at the end of the previous fiscal year. The increase in liabilities was driven by higher borrowings under the revolving credit facility, which amounted to $63.5 million, up from $58.5 million.
Strategically, Investcorp has continued to focus on its investment in middle-market companies, with a portfolio valued at $196.1 million as of September 30, 2025. The company made new investments totaling approximately $24.1 million during the nine months ended September 30, 2025, primarily in first lien debt. The portfolio composition remains heavily weighted towards senior secured first lien debt investments, which constituted 78.32% of the total portfolio. The company also reported a slight increase in its unfunded commitments to portfolio companies, totaling $5.6 million as of September 30, 2025, compared to $4.6 million at the end of 2024.
Looking ahead, Investcorp's management expressed cautious optimism regarding its ability to navigate the current economic environment, which includes inflationary pressures and potential recession risks. The company has sufficient liquidity, with $3.9 million in cash and $7.8 million in restricted cash, alongside $36.5 million of available capacity under its revolving credit facility. The board of directors declared a distribution of $0.12 per share for the quarter ending December 31, 2025, indicating a commitment to returning capital to shareholders despite the recent financial challenges. The company remains focused on maximizing total returns through its investment strategies while managing the risks associated with its portfolio.
About Investcorp Credit Management BDC, Inc.
Investcorp Credit Management BDC, Inc. is a Maryland-based, externally managed business development company specializing in debt investments in U.S. middle-market companies with revenues over $50 million. It focuses on senior secured loans, unitranche, and subordinated debt, targeting companies with strong cash flow and market positions. The firm emphasizes disciplined underwriting, active portfolio management, and structuring creative financing solutions to generate attractive risk-adjusted returns.
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