INVESTCORP CREDIT MANAGEMENT BDC, INC. Investcorp Credit Management BDC, Inc.
Investor Presentation
December 31, 2023
NEW YORK LONDON
BAHRAIN ABU DHABI RIYADH DOHA MUMBAI SINGAPORE
Forward-looking Statements and Disclosures
Statements included in this presentation may contain "forward-looking statements," which relate to future performance or financial condition of Investcorp Credit Management BDC, Inc. (the "ICMB"). Forward-looking statements are based on estimates, projections, beliefs and assumptions of ICMB's management at the time of such statements, which change over time, and are not guarantees of future performance or results. Actual results may differ materially from those anticipated in any forward-looking statements as a result of a number of factors, including those described from time to time in filings by ICMB with the Securities and Exchange Commission. Forward-looking statements are made as of the date of this presentation, or as of the prior date referenced in this presentation and are subject to change without notice. ICMB undertakes no duty to update any forward-looking statement made herein except as required by law.
This presentation is neither an offer to sell nor a solicitation of an offer to buy ICMB's securities. An offering is made only by an applicable prospectus. This presentation must be read in conjunction with a prospectus in order to fully understand all of the implications and risks of the offering of securities to which the prospectus relates. A copy of such a prospectus must be made available to you in connection with any offering.
The summary descriptions and other information included herein are intended only for informational purposes and convenient reference. The information contained herein is not intended to provide, and should not be relied upon for, accounting, legal or tax advice or investment recommendations. Before making an investment decision with respect to ICMB, investors are advised to carefully review an applicable prospectus to review the risk factors described therein, and to consult with their tax, financial, investment and legal advisors. These materials do not purport to be complete and are qualified in their entirety by reference to the more detailed disclosures contained in an applicable prospectus and ICMB's related documentation. No representation or warranty, express or implied, is made as to the accuracy or completeness of the information contained herein, and nothing shall be relied upon as a promise or representation as to the future performance of ICMB.
2
Investcorp Credit Management BDC, Inc. - Investment Team
INVESTMENT PROFESSIONALS
Michael C. Mauer
Managing Director
Investment Committee Member
Co-Chief Investment Officer
Suhail A. Shaikh
Managing Director
Investment Committee Member
Co-Chief Investment Officer
Andrew Muns
Director
Investment Committee Member
Emily Mason
Associate Director
Branko Krmpotic
Managing Director
Investment Committee Member
Seth D. Thomas
Associate Director
Timothy Waller
Director
Investment Committee Member
Vladimir Munoz
Associate
Rocco DelGuercio
Chief Financial Officer, Chief Compliance Officer
FINANCE PROFESSIONALS
Destinie Mack | Therese Dyman | |
Vice President | Consultant | |
Aamer Jooma
Associate
Investcorp Credit Management BDC, Inc. - Investment Criteria
Use of Proceeds
- Organic Growth
- Acquisitions
- Market / Product Expansion
- Refinancings and Recapitalizations
Borrower Focus
- Established companies with a history of positive operating cash flow
- Defensible and sustainable business
- Seasoned management team with meaningful equity ownership
- Significant Invested Capital
- Investment Partnerships
- Ability to exert meaningful influence
- Exit strategy
General Investment Parameters
- Revenues: $50MM+1
- EBITDA: $15MM+1
- Investment Size: $5MM -- $25MM
Investment Structures
- First and Second Lien Loans
- Unitranche Loans
- Mezzanine Loans/Structured Equity
- Unsecured Loans
- Equity Components
1 ICMB may invest in smaller or larger companies if there is an attractive opportunity, especially when there are dislocations in the capital markets, including the high yield and large | 4 |
syndicated loan markets. | |
Investcorp Credit Management BDC, Inc. - Overview as of December 31, 2023
Issuer
Investment Manager
Formation
Market Capitalization
Investment Portfolio(1)
Leverage
Distribution Yield(2)
Investcorp Credit Management BDC, Inc. (NASDAQ: ICMB)
CM Investment Partners LLC ("CMIP")
Formed as CM Finance LLC in 2012; IPO in February 2014
$51.3 million
$207.4 million
Debt-Equity of 1.70x
16.85% annualized distribution yield (based on quarterly distribution of $0.15 per share and price of $3.56 per share as of December 29, 2023)
- A
1At Fair Value. Please see form 10-K filed with the SEC for details. | 5 |
2 Not a guarantee of future distribution amounts or yield. |
Investcorp Credit Management BDC, Inc. - 12/31/2023 Portfolio Profile
By S&P Sector
16.00% | ||||||||||||||||||||
14.00% | ||||||||||||||||||||
12.00% | ||||||||||||||||||||
10.00% | ||||||||||||||||||||
8.00% | ||||||||||||||||||||
6.00% | ||||||||||||||||||||
4.00% | ||||||||||||||||||||
2.00% | ||||||||||||||||||||
0.00% | Professional Services | Containers & Packaging | IT Services | Broadline Retail | Machinery | Entertainment | Household Durables | Chemicals | Hotels, Restaurants, and Leisure Diversified Consumer Services | Software | Specialty Retail | Automobile Components | Consumer Staples Distribution & Retail | Building Products | Automotive Retail | Health Care Providers & Services Construction & Engineering | Electronic Equipment, Instruments &… Energy Equipment & Services | |||
Trading Companies & Distributors Commercial Services & Supplies | Food Products | Consumer Services | Paper Packaing | |||||||||||||||||
By Coupon Type | Other KPI's |
Other /
Warrants,Senior Secured First Lien Debt84.97%
15.03%
Senior Secured Second Lien / Unitranche Debt | 0.0% | |
Fixed, | Equity / Warrants / Other | 15.03% |
0.34% |
Floating,
84.63%
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Investcorp Credit Management BDC, Inc. - Portfolio as of December 31, 2023
Quarterly Highlights
- ICMB made investments in five new portfolio companies and one existing portfolio company. These investments totaled $18.1 million, at cost. The weighted average yield (at origination) of debt investments made in the quarter was 12.13%.
- ICMB fully realized four portfolio companies during the quarter, totaling $29.15 million in proceeds. The internal rate of return on these investments was 13.76%.
- During the quarter, the Company had net advances of $0.3 million on its existing delayed draw and revolving credit commitments to portfolio companies.
- The weighted average yield on debt investments, at cost, for the quarter ended December 31, 2023, was 11.44%, compared to 11.01% for the quarter ended September 30, 2023.
- Net asset value decreased $0.35 per share to $5.48, compared to $5.83 as of September 30, 2023. Net assets decreased by $5.0 million, or 6.0%, during the quarter ended December 31, 2023, compared to September 30, 2023.
Portfolio Results (as of 12/31/23)
| Total assets | $224.3mm |
Investment portfolio, at fair value | $207.4mm | |
| Net assets | $78.8mm |
Portfolio Activity (9/30/23-12/31/23)
Total capital invested | $18.1mm |
- Proceeds from repayments, sales,
and amortization | $31.1mm |
- Number of portfolio companies,
end of period | 44 |
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Investcorp Credit Management BDC, Inc.
Selected Financial Highlights
Quarter Ended | Quarter Ended | Quarter Ended | Quarter Ended | Quarter Ended | ||||||
December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | ||||||
Investment Portfolio at | $ | 228,593,658 | $ | 221,315,429 | $ | 220,111,329 | $ | 223,404,283 | $ | 207,381,553 |
Fair Value | ||||||||||
Debt at Cost | $ | 141,601,670 | $ | 145,292,781 | $ | 135,483,891 | $ | 132,775,003 | $ | 133,878,241 |
Net Assets | $ | 91,477,635 | $ | 88,226,547 | $ | 87,700,308 | $ | 83,860,817 | $ | 78,840,983 |
Ending Debt to Equity | 1.55x | 1.65x | 1.54x | 1.58x | 1.70x | |||||
Ratio | ||||||||||
Per Share Data | Quarter Ended | Quarter Ended | Quarter Ended | Quarter Ended | Quarter Ended | |||||
December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | ||||||
Net Asset Value | $ | 6.36 | $ | 6.13 | $ | 6.09 | $ | 5.83 | $ | 5.48 |
per Share | ||||||||||
Net Investment Income | $ | 0.16 | $ | 0.18 | $ | 0.15 | $ | 0.11 | $ | 0.11 |
per Share | ||||||||||
Net Increase in Net | ||||||||||
Assets Resulting from | $ | 0.04 | $ | (0.08) | $ | (0.14) | $ | (0.12) | $ | (0.20) |
Operations per Share | ||||||||||
Dividends Declared | $ | 0.15(1) | $ | 0.18(2) | $ | 0.18(2) | $ | 0.15(3) | $ | 0.15(3) |
per Share | ||||||||||
1Includes a quarterly distribution of $0.13 per share and a supplemental distribution of $0.02 per share
2Includes a quarterly distribution of $0.13 per share and a supplemental distribution of $0.05 per share8 3Includes a quarterly distribution of $0.12 per share and a supplemental distribution of $0.03 per share
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Disclaimer
Investcorp Credit Management BDC Inc. published this content on 14 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 March 2024 19:04:03 UTC.
