CION Investment Corporation (CION): Business Model Canvas [Dec-2025 Updated]

You're digging into the mechanics of CION Investment Corporation, trying to see past the ticker symbol to the actual engine driving shareholder returns. Honestly, for a Business Development Company like CION, the model is direct: they raise capital, lend it out to middle-market firms-currently managing a $1.74 billion portfolio as of Q3 2025-and funnel the resulting interest income back to you. What's key here is their defensive posture, with 85.1% of assets in senior secured loans, which is why they are making that notable shift to monthly base distributions starting in January 2026. Let's break down exactly how CION connects its capital sources to those middle-market borrowers and what that means for your yield expectations.

CION Investment Corporation (CION) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that help CION Investment Corporation (CION) source deals and manage its capital structure as of late 2025. These external entities are critical to CION's externally managed structure and its investment strategy.

CION Investment Management, LLC (CIM) as external adviser

CION is managed by its registered investment adviser and affiliate, CION Investment Management, LLC (CIM). CIM oversees the management of CION's activities and makes the investment decisions for the portfolio. Operating expenses for the three months ended September 30, 2025, were $40.1 million, which included advisory fees that increased due to higher total investment income during that quarter compared to the prior quarter.

Private equity sponsors for deal sourcing and co-investing

Sourcing quality middle-market deals relies heavily on a network of partners. As of September 30, 2024, 99.7% of CION's portfolio companies had private equity or financial institution sponsorship. CION's investment process includes steps like pre-screening potential investments and engaging legal counsel, often in conjunction with these sponsors.

EagleTree Capital affiliate for strategic joint venture (JV) investments

CION formed CION/EagleTree Partners, LLC, an off-balance sheet joint venture, with an affiliate of EagleTree Capital, LP, in December 2021. This JV jointly pursues debt opportunities, special situations, crossover, subordinated, and other junior capital investments. The initial equity ownership structure was 85% by CION and 15% by a Firm-level investment entity jointly owned by EagleTree and Bullingham Capital.

Ares Management and GCM Grosvenor for other alternative fund products

CION leverages its platform to sponsor other investment vehicles, which involves partnerships with firms like Ares Management and GCM Grosvenor. CION sponsors the CION Ares Diversified Credit Fund (CADC), an interval fund, and the CION Grosvenor Infrastructure Fund (CGIF). The CGIF specifically provides access to GCM Grosvenor's institutional private infrastructure platform.

Senior secured lenders for revolving credit facilities and debt capital

Debt capital is secured through facilities with senior lenders. As of September 30, 2025, CION had $1.09 billion of total principal amount of debt outstanding. This debt was comprised of 37% senior secured bank debt and 63% unsecured debt. A key facility is the 2025 UBS Credit Facility, entered into on February 13, 2025, with UBS as the administrative agent.

Here's a quick look at the financial terms associated with CION's primary senior secured facility as of late 2025:

The structure of these lending relationships dictates capital availability and cost. For instance, the 2025 UBS Credit Facility includes a non-usage fee of 0.75% per year on the amount available but not borrowed above a minimum utilization of $100,000 (in thousands).

The reliance on external partners for sourcing and capital is substantial, as shown by the following breakdown of CION's debt structure:

• Senior Secured Bank Debt: 37% of total debt outstanding as of September 30, 2025.
• Unsecured Debt (Notes and Term Loans): 63% of total debt outstanding as of September 30, 2025.
• CIM's Role: Manages portfolio and is the collateral manager under the 2025 UBS Credit Facility.
• JV Ownership: CION held an initial 85% equity stake in the CION/EagleTree JV.

CION Investment Corporation (CION) - Canvas Business Model: Key Activities

You're looking at the core engine of CION Investment Corporation, the day-to-day work that drives its returns. This isn't about vision statements; it's about the hard numbers of lending and managing capital as of late 2025.

Originate and underwrite senior secured loans to middle-market companies

CION Investment Corporation focuses on originating and underwriting senior secured loans. During the third quarter ended September 30, 2025, the company funded new investment commitments of $65 million across 1 new and 12 existing portfolio companies. Also funded were $17 million of previously unfunded commitments. The total investment income for that quarter hit $78.7 million. The portfolio structure reflects this focus, with 80.0% of investments being senior secured first lien investments as of September 30, 2025. The weighted average yield on debt and other income-producing investments at amortized cost was 10.9% at that same date.

Actively manage and monitor the $1.74 billion investment portfolio

Active management centers on the size and health of the assets under management. As of September 30, 2025, CION Investment Corporation had total investments at fair value of $1.74 billion spread across 91 portfolio companies. The management activity included sales and repayments totaling $151 million during Q3 2025, resulting in a net decrease to the funded portfolio of $69 million for the quarter. The company's net debt-to-equity ratio stood at 1.28x on September 30, 2025. The weighted average cost of its debt capital was about 7.5%.

Here's a quick look at the portfolio metrics as of September 30, 2025:

The health of the portfolio is tracked by non-accruals, which were 1.75% of the total investment portfolio at fair value as of September 30, 2025.

Raise debt and equity capital to fund new investments

Funding new investments requires managing the liability side of the balance sheet. As of September 30, 2025, CION Investment Corporation had total debt outstanding of about $1.09 billion. This debt was comprised of 37% senior secured bank debt and 63% unsecured debt. The company held $106 million in cash and short-term investments, plus $100 million available under its financing arrangements to support the investment pipeline.

Manage regulatory compliance as a Business Development Company (BDC)

Operating as a BDC means adhering to specific leverage and asset coverage rules. CION Investment Corporation is required to maintain an asset coverage for its senior securities of 150%, which allows for up to $2 of debt outstanding for each $1 of equity, a change from the prior 200% requirement. The total shareholders' equity was $772,506 thousand as of September 30, 2025. Net asset value per share of common stock at the end of that period was $14.86.

Execute accretive share repurchases (e.g., 330,324 shares in Q3 2025)

Share repurchases are an active tool to manage capital structure and enhance net asset value per share. You saw this activity in the third quarter.

• Shares repurchased in Q3 2025: 330,324 shares.
• Average price per share for Q3 2025 repurchases: $9.86.
• Total repurchase amount in Q3 2025: $3.3 million.
• Total shares repurchased through September 30, 2025: 4,984,922 shares.
• Total repurchase amount through September 30, 2025: $50.3 million.

Also, on August 5, 2025, the board increased the total authorized share repurchase amount by $20 million to an aggregate of up to $80 million.

Finance: draft 13-week cash view by Friday.

CION Investment Corporation (CION) - Canvas Business Model: Key Resources

You're looking at the core assets that CION Investment Corporation uses to deliver its value proposition in the private credit space. These aren't just line items; they are the engine room of the business, built up over time.

The scale of the operation, as of the end of the third quarter of 2025, is substantial, giving CION Investment Corporation the necessary heft to compete for and service middle-market deals. Here's a look at the hard numbers underpinning those capabilities.

The structure of the debt itself is a key resource, offering flexibility. As of September 30, 2025, CION Investment Corporation's debt mix was about 63% unsecured debt and 37% senior secured bank debt. This mix helps maximize balance sheet flexibility.

The required financing capacity mentioned in your outline, $106 million, aligns closely with the reported cash and short-term investments of $106 million as of September 30, 2025, which contributes to their solid liquidity position.

Beyond the balance sheet figures, the operational and structural resources are critical differentiators. You need the right people and the right structure to deploy that capital effectively. Here are the key non-financial resources:

• CION Investment Management, LLC, serving as the external investment adviser, provides the intellectual capital.
• The team's experience in private credit, with CION Investment Corporation focused on this area since 2012.
• The Regulated Investment Company (RIC) tax status, which allows CION Investment Corporation to pass corporate income directly to shareholders, avoiding corporate-level taxation.

Honestly, having that experienced investment team is what turns a pile of cash into performing assets. Finance: draft 13-week cash view by Friday.

CION Investment Corporation (CION) - Canvas Business Model: Value Propositions

You're looking at CION Investment Corporation (CION) as of late 2025, and the core value it offers is a direct line to high-yield debt investments, packaged for the public market.

High current income generation for investors via debt investments is the primary draw. CION Investment Corporation is a publicly-listed business development company that focuses on providing senior secured loans to U.S. middle-market companies. This strategy is designed to generate consistent income for you, the investor. For the three months ended September 30, 2025, CION Investment Corporation reported total investment income of $78.7 million. Net investment income for that same quarter was $0.74 per share. The yield on debt and other income producing investments at amortized cost as of September 30, 2025, stood at 10.85%.

The structure of CION Investment Corporation provides access for retail investors to institutional-style private credit assets. By being publicly listed on the NYSE, CION Investment Corporation democratizes access to what was traditionally an institutional asset class-senior secured loans to middle-market businesses. This structure is supported by a focus on credit quality; as of September 30, 2025, investments on non-accrual status represented only 1.75% of the total investment portfolio at fair value.

The portfolio strategy is positioned as defensive. CION Investment Corporation primarily invests in senior secured debt, including first lien loans. As of September 30, 2025, 80.0% of the portfolio was in senior secured assets. Furthermore, 73.0% of the performing loans bore a floating rate as of that date. This focus on senior positions and floating rates is a key part of the defensive posture, aiming for downside protection while capitalizing on interest rate movements. The company maintained 91 portfolio companies as of September 30, 2025, with total assets around $1.9 billion.

You gain liquidity as a publicly listed stock on the NYSE. Unlike direct private credit funds, CION Investment Corporation shares trade on an exchange, offering a level of marketability. As of September 30, 2025, the net asset value per share was $14.86, and the earnings per share for the third quarter of 2025 were $0.69 per share. The distribution yield, calculated using trailing twelve-month paid distributions against the market price as of November 28, 2025, was 14.5%.

A significant change in the investor experience is the shift to monthly base distributions starting in January 2026. CION Investment Corporation announced this change to better align recurring base distributions with shareholder preferences. The last quarterly base distribution declared was $0.36 per share for the fourth quarter of 2025, payable on December 15, 2025. This implies an annualized base distribution rate of $1.44 per share based on the Q4 2025 rate.

Here are the key financial metrics underpinning these value propositions as of the third quarter of 2025:

The shift in payout frequency is a direct response to investor preference, which you can see reflected in the distribution policy:

• Base distribution cadence moving from quarterly to monthly beginning January 2026.
• Monthly amounts will be declared quarterly in advance.
• The Q4 2025 base distribution was $0.36 per share.
• The implied annualized base distribution rate is $1.44 per share.
• The company has increased its dividend 7 times in the past 5 years.

CION Investment Corporation (CION) - Canvas Business Model: Customer Relationships

You're managing capital for public shareholders while simultaneously underwriting complex, long-term debt for middle-market businesses. That dual focus defines CION Investment Corporation's customer relationships.

Transactional relationship with public shareholders (NYSE listing)

The relationship with public shareholders is fundamentally transactional, centered on liquidity, consistent distributions, and transparent reporting via the NYSE listing. CION Investment Corporation manages this by providing regular cash distributions, though the structure is evolving to better suit investor preference for frequency.

For the quarter ended September 30, 2025, CION Investment Corporation paid a quarterly base distribution of $0.36 per share on September 16, 2025. The company declared the same amount, $0.36 per share, for the fourth quarter of 2025, payable on December 15, 2025. To enhance this transactional cadence, CION Investment Corporation announced a shift from quarterly to monthly base distributions, commencing in January 2026.

The market values this income stream highly. As of the third quarter of 2025, the trailing 12-month distribution yield based on the quarter-end market price was approximately 15.7%. The yield based on the average Net Asset Value (NAV) for the same period was about 10%. The Net Asset Value per share stood at $14.86 as of September 30, 2025. CION Investment Corporation actively manages the share count, repurchasing approximately 330,000 shares in the third quarter of 2025 at an average price of $9.86 per share, which is accretive to NAV.

Dedicated relationship management with private equity sponsors

CION Investment Corporation cultivates dedicated relationships with private equity sponsors to secure proprietary deal flow. This is formalized through strategic joint ventures and a focus on established partnerships within the credit and asset management ecosystems. The advisory affiliate, CION Investment Management, LLC (CIM), leverages these connections.

Key relationship structures include:

• Joint venture with Ares Management for the CION Ares Diversified Credit Fund.
• Partnerships with select middle-market private equity sponsors for deal sourcing.
• Relationships with public and private lenders and investment banking/advisory firms.

CIM seeks to drive returns from direct and opportunistic first-lien investments, often targeting companies with annual EBITDA between $25-$75 million, where sponsors are active. The target initial hold size for these direct investments is around $20 million.

Investor relations for clear, consistent communication and filings

Clear communication is managed through rigorous regulatory filings and proactive investor outreach, ensuring consistency for the public shareholder base. The primary mechanism involves timely filing of required documents with the Securities and Exchange Commission (SEC).

For instance, the first quarter 2025 results were reported via a Form 10-Q filed on May 8, 2025, and the third quarter 2025 results were reported on November 6, 2025, following a Form 8-K filing on October 1, 2025. Investor Relations is managed by Charlie Arestia, whose contact number is (646) 253-8259. Supplemental earnings presentations are made available on the company's website at www.cionbdc.com in the Investor Resources section.

Direct, long-term lending relationships with portfolio companies

The core of CION Investment Corporation's business is the direct, long-term lending relationship established with its portfolio companies. CION Investment Corporation focuses primarily on senior secured loans to U.S. middle-market companies, aiming for current income generation.

The portfolio composition as of late 2025 reflects this focus on senior, high-quality credit:

The weighted average yield on debt and other income-producing investments at amortized cost was 10.9% at September 30, 2025. During the second quarter of 2025, the weighted average yield for total funded first lien debt investments, based on investment costs, was SOFR plus 6.96%. CION Investment Corporation has made over $8 billion in total investments since its inception in 2012.

Finance: draft 13-week cash view by Friday.

CION Investment Corporation (CION) - Canvas Business Model: Channels

The channels CION Investment Corporation uses to reach and serve its customer segments involve public markets, direct deal sourcing, and a network of financial intermediaries.

New York Stock Exchange (NYSE) for common stock trading

CION Investment Corporation common stock trades publicly on the New York Stock Exchange under the ticker CION. This is a primary channel for retail and institutional investors to acquire and trade shares.

Key market data points for this channel as of late 2025 include:

• The share price as of November 28, 2025, was $10.16 / share.
• The number of shares of common stock outstanding as of October 29, 2025, was 51,670,947.
• The Net Asset Value (NAV) per share of common stock at the end of the period ending September 30, 2025, was $14.86.
• The base distribution declared for the third quarter of 2025 was $0.36 per share.

Direct origination efforts for new loan investments

The investment sourcing channel relies on internal direct origination efforts and strong relationships to access the middle market debt space. This is how CION Investment Corporation builds its asset base.

The scale and activity in this channel are reflected in the following figures:

CION Investment Corporation targets US middle-market companies with annual EBITDA between $25 million and $75 million. The portfolio is heavily weighted toward senior secured loans, with 85.1% in senior secured loans as of June 30, 2025.

Financial professionals and advisors for retail distribution

Distribution to the retail investor base is channeled through financial professionals, advisors, and broker-dealers. CION Securities is noted for its expertise in scaling products across these retail advisor channels.

Historical distribution metrics show the reach of this channel:

• 90k+ individual investors served as of the data reference date.
• Advisors in CION's network numbered over 100k+.
• Total Capital Raised through these channels was over $6.5B+ since inception.

Investor relations website and SEC filings for shareholder data

This channel serves existing shareholders and prospective investors by providing mandatory disclosures and current operational updates. It is the source for official financial data.

Key documents and data points related to this channel include:

• The Form 10-Q for the third quarter of 2025 was filed on November 6, 2025.
• Total shareholders' equity reported in the Q3 2025 10-Q was $772,506 thousand.
• Total debt outstanding as of September 30, 2025, was about $1.1 billion.

Shareholder activity is also visible through open-market repurchases; for instance, during the third quarter of 2025, CION repurchased approximately 330,000 shares at an average price of $9.86 per share.

CION Investment Corporation (CION) - Canvas Business Model: Customer Segments

Public and institutional investors seeking high-yield income

CION Investment Corporation is a publicly listed business development company, trading on the NYSE under CION. As of the first quarter of 2025, 38.39% of CION's stock was held by institutions. The company seeks to generate current income for investors by focusing primarily on senior secured loans to U.S. middle-market companies. CION announced a shift to monthly base distributions starting in January 2026, aiming to better align with shareholder preferences. The quarterly base distribution for the third quarter of 2025 was $0.36 per share. The Net Asset Value per share as of September 30, 2025, was $14.86.

• The company had approximately $1.9 billion in total assets as of September 30, 2025.
• The Distribution Yield, calculated as trailing 12 months quarterly distributions declared as of March 31, 2025, divided by market share price as of March 31, 2025, is a key metric for this segment.

U.S. middle-market companies with EBITDA of $25-$75 million

CION Investment Corporation specifically targets U.S. middle-market companies. The firm positions itself as one of the few BDCs investing in this true middle market niche. The investment focus is on companies with annual EBITDA between $25 million and $75 million. The typical size of the loan investment sought is between $5 million and $50 million, with an average targeted hold of $30 million. The investment portfolio as of September 30, 2025, was valued at $1.74 billion at fair value and was spread across 91 companies. The primary investment type sought is senior secured loans, with first lien investments making up a significant portion of the portfolio.

Private equity firms sponsoring middle-market portfolio companies

CION Investment Corporation sources its investment pipeline across a plethora of private equity sponsors. This broad sourcing strategy helps CION avoid being beholden to a small set of partners that might push for off-market or sub-quality investments. The firm actively engages with sponsors, as evidenced by funding new investment commitments across 1 new and 12 existing portfolio companies during the third quarter of 2025. The firm purchases minority interests, such as common or preferred equity, often in conjunction with its debt investments or through a co-investment with a financial sponsor.

Debt investors who purchase CION's unsecured notes

Debt investors provide capital through CION's various financing arrangements, including unsecured notes. As of September 30, 2025, CION had $1.09 billion of total principal amount of debt outstanding. Of this total, 63% was comprised of unsecured notes and term loans, amounting to $692 million. This compares to $692 million in unsecured notes and term loans out of $1.12 billion total debt outstanding as of March 31, 2025. The combined weighted average interest rate on all debt outstanding for the quarter ended September 30, 2025, was 7.5%.

• Total Debt Outstanding (Sept 30, 2025): $1.09 billion.
• Unsecured Notes and Term Loans (Sept 30, 2025): $692 million.
• Percentage of Debt that is Unsecured (Sept 30, 2025): 63%.

CION Investment Corporation (CION) - Canvas Business Model: Cost Structure

You're looking at the expenses CION Investment Corporation incurs to run its business, which is heavily weighted toward financing costs and fees paid to its external manager, CIM. These costs are the direct drain on the investment income before shareholder distributions.

The cost structure is dominated by the expense of its leverage, which is typical for a Business Development Company (BDC). For instance, the significant interest expense on debt capital was reported at $22,637 thousand in Q2 2025, though it slightly increased to $22,652 thousand in Q3 2025 due to higher average borrowings, even with lower SOFR rates.

Management and incentive fees paid to CIM are the next major components. The base management fees paid to CIM were $6,497 thousand in Q2 2025, rising to $6,532 thousand in Q3 2025. The subordinated incentive fees on income showed more volatility, recorded at $3,589 thousand in Q2 2025, but jumping significantly to $8,181 thousand in Q3 2025, directly reflecting the higher investment income earned that quarter. That's a big jump, showing how performance fees scale with deal activity.

Overall, the operating expenses totaled $40.1 million (or $40,144 thousand) in Q3 2025, up from $35.3 million in Q2 2025. This increase was primarily driven by those higher advisory fees tied to increased investment income.

Here's a breakdown of the key cost elements for the latest reported quarter, Q3 2025, in thousands:

The General and administrative expenses category itself is detailed, showing where the day-to-day overhead lands. For the three months ended September 30, 2025, the components of G&A were:

• Professional fees: $557 thousand.
• Valuation expense: $204 thousand.
• Insurance expense: $180 thousand.
• Dues and subscriptions: $177 thousand.
• Director fees and expenses: $175 thousand.
• Transfer agent expense: $116 thousand.

If onboarding takes 14+ days, churn risk rises, but for CION Investment Corporation, the risk here is the cost of capital. The total operating expenses, before considering realized losses, are the primary drag on net investment income. Finance: draft 13-week cash view by Friday.

CION Investment Corporation (CION) - Canvas Business Model: Revenue Streams

You're looking at the core engine that drives CION Investment Corporation's returns, which, as of late 2025, is heavily weighted toward debt instruments. The primary revenue streams are all about the interest CION earns on the capital it lends out to middle-market companies.

Interest income from senior secured loans (primary source) represents the bedrock of CION Investment Corporation's earnings power. This is the regular, contractual interest payment CION receives from its debt portfolio. The focus on senior secured loans means CION is lending to companies with the highest priority claim on assets in case of default, which is central to its risk-managed income strategy. As of September 30, 2025, the investment portfolio was comprised of 80.0% senior secured first lien investments. This high concentration directly supports the dominance of interest income as the main revenue component.

Fee income from loan origination, amendment, and prepayment activity provides a significant, albeit less predictable, boost to the top line. These are non-recurring fees generated when CION structures new deals, modifies existing ones, or when borrowers pay off loans early. For the third quarter ended September 30, 2025, the increase in total investment income was explicitly driven by higher transaction fees earned from origination and amendment activity compared to the prior quarter.

Paid-in-kind (PIK) interest income from certain debt investments is another crucial element, representing interest that is added to the principal balance of the loan rather than paid in cash during the period. For the third quarter of 2025, the PIK income was notably impacted by an amended loan facility, with the amount capitalized being about $5 million for the quarter. Excluding this specific transaction, PIK as a percentage of total income for Q3 would have been lower, in the mid-teens level.

The overall result of these activities is clearly visible in the latest reported figures. Here's a quick look at the top-line performance for the third quarter:

Dividends and capital gains from equity investments (lesser extent) contribute to total returns, though CION Investment Corporation's mandate prioritizes debt income. While the primary focus is on current income from loans, appreciation in the value of equity holdings does flow through to the Net Asset Value (NAV), which ultimately supports shareholder value. The increase in NAV per share from $14.50 as of June 30, 2025, to $14.86 as of September 30, 2025, was partially due to mark-to-market price increases in the portfolio, including those from the equity book.

You can see how the revenue components stack up based on the drivers cited for the Q3 growth:

• Interest Income: Primary driver, boosted by investment restructurings.
• Fee Income: Significant contributor, driven by origination and amendment activity.
• PIK Interest: A material component, with $5 million capitalized in Q3.
• Equity Gains: Contributes to NAV appreciation, but is secondary to debt income.

Finance: draft the Q4 2025 projected income statement based on Q3 run-rate and expected fee seasonality by next Tuesday.