Investcorp Credit Management BDC, Inc. (ICMB): BCG Matrix [Dec-2025 Updated]

You're digging into Investcorp Credit Management BDC, Inc. (ICMB) to see where its business units land on the BCG Matrix, and frankly, the picture for this small BDC as of late 2025 is complex, showing both bright spots and real trouble. While the portfolio's floating-rate debt is capturing a strong weighted average yield of 10.9% (Stars), the sharp drop in Net Investment Income to just $1.7$ million and non-accruals hitting 4.4% firmly place other areas in the Dog quadrant. We need to see if the $5$ million share repurchase program is a smart bet or just another Question Mark, so keep reading to see the full, unvarnished breakdown of where ICMB stands right now.

Background of Investcorp Credit Management BDC, Inc. (ICMB)

You're looking at the current state of Investcorp Credit Management BDC, Inc. (ICMB) as of its latest reported period, which is the quarter ending September 30, 2025. Honestly, the recent results show a company navigating a tough market, as evidenced by the Q1 2025 earnings miss where the actual Earnings Per Share (EPS) of $0.0326 fell significantly short of the expected $0.11.

Looking at the balance sheet as of September 30, 2025, the fair value of the investment portfolio stood at $196.1 million, which is down from $204.1 million at the end of March 2025. Net assets also saw a contraction, decreasing by $3.3 million from the prior quarter to reach $72.7 million. This pressure is reflected in the Net Asset Value (NAV) per share, which declined to $5.04 from $5.27 in the preceding quarter.

The portfolio itself is spread across 41 portfolio companies. Structurally, the bulk of the assets, specifically 78.32%, are in first lien investments, with the remaining 21.68% in equity, warrants, and other securities. It's worth noting that 98.49% of the debt portfolio is floating rate, which helps when interest rates are moving. The weighted average yield from debt investments was reported at 10.9% for the quarter.

Credit quality metrics present a mixed picture, which you'd expect in this environment. Nonaccruals rose to account for 4.4% of the portfolio at fair value, up from 1.6% the previous quarter, signaling some asset stress. Still, the management team points out that 82% of assets remain rated in the top two risk categories, and the weighted average interest coverage ratio actually improved to 2.3x from 2x a year ago. This suggests they are managing the existing book actively.

From a liquidity standpoint, ICMB held $11.6 million in cash, with $7.8 million of that being restricted. Plus, they have $36.5 million of unused capacity under their revolving credit facility with Capital One, N.A. To enhance financial flexibility, an affiliate of Investcorp Group provided a backstop commitment to refinance notes due on April 1, 2026. Anyway, deal flow has been slow, with fewer than 10% of deals entering deeper diligence, so the focus is definitely on credit quality over sheer growth right now.

Investcorp Credit Management BDC, Inc. (ICMB) - BCG Matrix: Stars

You're looking at the Stars quadrant for Investcorp Credit Management BDC, Inc. (ICMB), which represents the business units or investments with the best market share and generating the most cash flow potential, even if they consume significant capital to maintain that growth. For ICMB, this strength is clearly reflected in the income-generating capacity of its debt portfolio as of the third quarter of 2025. The weighted average yield on debt at cost rose to a strong 10.9% in Q3 2025. This high yield is a key indicator of a leading position in its market segment, demanding continued strategic investment to secure its future as a Cash Cow when market growth inevitably slows.

Here's a quick look at the core metrics supporting this high-performing segment:

The structure of the debt portfolio is designed to capture maximum benefit from the prevailing interest rate environment, a classic move for a market leader looking to maximize current returns. The portfolio is heavily positioned in floating-rate debt (98.49%), which directly benefits from higher benchmark rates. This aggressive positioning helps drive that high weighted average yield, showing management is actively capitalizing on current market dynamics to fuel growth.

Furthermore, the Star positioning isn't just about yield; it's about quality and defense, which helps ensure the high market share is sustainable. You see this in the defensive focus: 77% of the portfolio in first-lien debt is the historical benchmark, and as of September 30, 2025, that figure stood at 78.32% of investments being first lien. This means the majority of the capital is secured at the top of the capital structure, which is defintely a sign of a high-quality, resilient asset base, even if deal flow is currently slow.

The strategy also involves targeted sector selection to maintain leadership in high-growth areas. This includes strategic exposure to resilient niches like defense and data centers. For example, ICMB participated in the financing of Accelevation, a provider of services to the data center market. These targeted investments in sectors showing relative strength help solidify the high market share required for Star status, even as the broader middle-market M&A activity compresses spreads.

• Cash on hand as of September 30, 2025: $11.6 million
• Unused capacity under revolving credit facility: $36.5 million
• Portfolio diversification across 18 industries

Investcorp Credit Management BDC, Inc. (ICMB) - BCG Matrix: Cash Cows

Cash Cows for Investcorp Credit Management BDC, Inc. (ICMB) are represented by the core, stable income-generating engine of its middle-market debt portfolio. These assets possess high market share in the sense that they are the primary, established source of cash flow within a mature BDC structure, even if the overall BDC is small relative to the broader market.

The consistent base quarterly dividend of $0.12 per share provides a reliable cash flow to shareholders. For the quarter ending December 31, 2025, the Board declared this base distribution along with a supplemental distribution of $0.02 per share, both payable on December 12, 2025, to stockholders of record as of December 1, 2025. This total distribution of $0.14 per share for that quarter reflects the strategy of milking gains from established assets.

The stable, senior-secured loan portfolio generates predictable interest income. As of September 30, 2025, the portfolio was heavily weighted toward the most secure positions:

This structure, with nearly 78.32% in first lien positions and a weighted average yield of around 10.9%, is designed for consistent cash generation, which is the hallmark of a Cash Cow. The investment objective remains current income maximization by focusing on debt of U.S. middle-market companies with strong free cash flow.

While specific management fee waiver details aren't available for the nine months ended September 30, 2025, the operational results show the impact of managing costs against income. For the quarter ended September 30, 2025, the Net Investment Income (NII) was reported at $0.6 million, or $0.04 per share. The cash distributions declared, totaling $0.14 per share for that period, exceeded the NII per share, indicating the reliance on realized gains or retained earnings to support the full payout, a common feature when 'milking' a mature portfolio.

Investcorp Capital's backstop commitment provides critical balance sheet stability, especially concerning near-term obligations. The Board approved a commitment from Investcorp Capital plc to refinance the 4.875% notes due April 1, 2026. This commitment is a mechanism to ensure the Cash Cow keeps operating smoothly by addressing debt maturity proactively. The backstop requires Investcorp Capital to provide a loan up to the lesser of the remaining principal balance of the Notes outstanding on April 1, 2026, or $65,000,000.

You can see the stability in the debt structure:

• The commitment addresses the April 1, 2026 maturity.
• The backstop amount is capped at $65,000,000.
• The Capital One Revolving Financing, a secured facility, is set to expire on August 22, 2026, for $115 million.

This external support acts as an insurance policy, allowing the core portfolio to continue generating cash flow without the immediate pressure of refinancing risk.

Investcorp Credit Management BDC, Inc. (ICMB) - BCG Matrix: Dogs

You're looking at the segment of Investcorp Credit Management BDC, Inc. (ICMB) that's clearly struggling to generate meaningful returns, fitting the classic BCG Dog profile: low market share in a low-growth environment. The financial results for the nine months ending September 30, 2025, really drive this home. Net Investment Income (NII) after taxes dropped sharply to just $1.7 million, a significant step down from the $5.7 million reported in the same nine-month period last year. That's a tough trend to reverse, honestly.

The underlying asset quality is also showing strain, which is a major red flag for any unit you're considering holding. For the third quarter of 2025, non-accrual investments-those assets where the borrower has stopped making scheduled payments-climbed to 4.4% of the total portfolio at fair value. That's up substantially from the 1.6% seen in the prior quarter, signaling increasing credit stress within this part of the business. When you see non-accruals rising like that, it suggests the underlying market or specific borrowers aren't performing as expected.

To put this into perspective, here's a quick look at the scale and immediate revenue impact we're seeing in this area, which helps explain why these units often become cash traps:

The pressure on the top line is directly related to the slow pace of new business, which is typical for a Dog. Origination activity remains subdued, and deal flow is slow, meaning fewer new, higher-yielding assets are coming online to replace those that are paying off or being written down. This resulted in total investment income (revenue) for the third quarter of 2025 falling to $4.37 million. You can't grow when you're not putting new capital to work effectively, and repayments continue to drain the existing base. It's a cycle that requires serious capital commitment to break, and expensive turn-around plans rarely work out for these types of assets.

The indicators pointing toward divestiture or minimization are clear:

• NII after taxes fell to $1.7 million for 9M 2025.
• Non-accruals spiked to 4.4% of fair value in Q3 2025.
• Total investment income for Q3 2025 was only $4.37 million.
• Market capitalization is only $42.25 million, limiting competitive advantage.

If onboarding takes 14+ days, churn risk rises, and for these low-growth segments, any delay in realizing value just ties up capital that could be deployed elsewhere. Finance: draft 13-week cash view by Friday.

Investcorp Credit Management BDC, Inc. (ICMB) - BCG Matrix: Question Marks

You're looking at the parts of Investcorp Credit Management BDC, Inc. (ICMB) that are in high-growth areas but haven't captured significant market share yet. These are the cash consumers, the ones that need fuel to become Stars, but right now, they drain resources. Honestly, it's a bet on future performance, not current returns.

The High-Risk Share Repurchase Bet

The Board authorized a $\text{5$ million share repurchase program on August 7, 2025. This move is definitely a high-risk play, essentially betting that the market price is too low compared to the Net Asset Value (NAV). As of September 30, 2025, the NAV per share stood at $\text{$5.04$, while the closing share price on that date was $\text{$2.78$. That represents a discount of approximately $\text{44.84% based on those figures, which is near the $\text{49% discount level you mentioned as the target for this action.

Here's a quick look at the valuation context surrounding this decision:

Equity and Warrant Positions

The equity and warrant positions represent the speculative upside, the classic Question Mark component in a credit portfolio. As of the quarter ended September 30, 2025, these positions accounted for $\text{21.68% of the investment portfolio at fair value. This aligns closely with the $\text{23% figure often cited for these types of growth-oriented, lower-priority assets within the portfolio structure. For comparison, the allocation was $\text{21% as of June 30, 2025, and $\text{22% in the first quarter of 2025.

You should track these positions as they are the most volatile part of the portfolio:

• Portfolio percentage as of September 30, 2025: $\text{21.68%
• Portfolio percentage as of June 30, 2025: $\text{21%
• Portfolio percentage as of Q1 2025: $\text{22%
• The largest portfolio company investment by fair market value as of Q3 2025 was Bioplan at $\text{$13.4$ million.

Platform Scaling as a Future Catalyst

The potential for platform scaling to absorb overhead and improve the Net Investment Income (NII) run-rate is a future catalyst, not a current fact you can put a number to right now. The current NII performance reflects the present reality. For the quarter ended September 30, 2025, the NII was $\text{$0.6$ million, translating to $\text{$0.04$ per share. This was a decrease of $\text{$0.02$ per share from the previous quarter.

Volatile Supplemental Distributions

The supplemental distribution is a direct reflection of excess NII generation, making it inherently volatile, just as the BCG model suggests for Question Marks. For the quarter ending December 31, 2025, the Board declared a supplemental distribution of $\text{$0.02$ per share, payable on December 12, 2025. This followed a similar $\text{$0.02$ per share supplemental distribution declared in August 2025 for the quarter ended September 30, 2025.

Here are the recent distribution details:

• Regular Distribution (Q4 2025): $\text{$0.12$ per share.
• Supplemental Distribution (Q4 2025): $\text{$0.02$ per share.
• Total Distribution Declared (Q4 2025): $\text{$0.14$ per share.
• This total distribution represented a $\text{20.14% yield on the share price of $\text{$2.78$ as of September 30, 2025.

Finance: draft $\text{13$-week cash view by Friday.