Investcorp Credit Management BDC, Inc. (ICMB): Business Model Canvas [Dec-2025 Updated]

You're looking past the noise to understand the core engine of Investcorp Credit Management BDC, Inc. (ICMB), and frankly, it's a classic middle-market credit play powered by a big name. They use their advisor's scale to originate and manage debt for U.S. companies, aiming to deliver that high yield you seek, backed by a defensive portfolio where 78.32% is first lien debt as of Q3 2025. This structure supports a consistent base distribution of $0.12 per share quarterly off an investment portfolio valued at $196.1 million. See the full mechanics of how they balance risk, fees, and shareholder returns by reviewing the detailed canvas below.

Investcorp Credit Management BDC, Inc. (ICMB) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that keep Investcorp Credit Management BDC, Inc. (ICMB) running and funded as of late 2025. These aren't just names on a page; they represent committed capital and operational support that directly impacts liquidity and investment strategy.

Investcorp Credit Management US LLC as the Investment Advisor

The relationship with the Investment Advisor, Investcorp Credit Management US LLC, is critical for sourcing and managing the portfolio. While the core advisory function is ongoing, a key financial aspect noted for the nine months ending September 30, 2025, involved expense management.

• Expenses were reduced due to waivers on base management fees for the nine months ending September 30, 2025.

Investcorp Capital plc providing a backstop for the $65 million note refinancing

The support from Investcorp Capital plc, an affiliate of the parent company, is a significant partnership for balance sheet strength, especially concerning upcoming debt maturities. This commitment acts as a crucial safety net.

The Board of Directors approved Investcorp Capital plc to provide a backstop commitment to refinance the 4.875% notes due April 1, 2026. This backstop is to buy up the full refinance amount for the maturing notes in the event ICMB has not refinanced them prior to maturity. Furthermore, Investcorp Capital holds approximately 3.6 million shares of ICMB, aligning interests.

Capital One, N.A. for the revolving credit facility

The facility with Capital One, N.A. is the primary source of immediate, flexible leverage. The original facility was a five-year, $115 million senior secured revolving credit facility, which expires on August 22, 2026. This facility is secured by collateral consisting primarily of loans in the investment portfolio.

As of September 30, 2025, the available liquidity from this partnership was substantial, though slightly lower than prior quarters. The repricing of this facility during late 2024 set the borrowing cost spread base rate at 250 bps.

Financial institutions providing debt capital for leverage

Beyond the primary Capital One facility, the structure relies on a network of financial institutions to provide debt capital, though specific details on other general leverage providers beyond the main facility are not explicitly detailed in the latest reports. The portfolio itself reflects a heavy reliance on floating-rate instruments.

• Debt portfolio consisted of 98.49% floating rate investments as of September 30, 2025.
• Debt portfolio consisted of 1.51% fixed rate investments as of September 30, 2025.

Private equity sponsors driving deal flow and M&A activity

Deal flow is heavily influenced by the activity of private equity sponsors, who often look to middle-market BDCs like ICMB for financing their transactions. The investment activity in the first quarter of 2025 provided a concrete example of this partnership in action.

• ICMB participated in the LBO transaction of Accelevation by Olympus Partners for the quarter ending March 31, 2025.
• The average size per portfolio company on a fair market value basis was approximately $4.7 million as of September 30, 2025.

Investcorp Credit Management BDC, Inc. (ICMB) - Canvas Business Model: Key Activities

Originating and underwriting new middle-market debt investments

Investcorp Credit Management BDC, Inc. (ICMB) actively deploys capital into middle-market debt, though deal flow has been subject to market conditions. For the quarter ended September 30, 2025, ICMB made an investment of $0.02 million, at cost, in one existing portfolio company. This contrasts with the quarter ended March 31, 2025, where fundings for new investments totaled $5.1 million at cost, which included an investment in one new portfolio company and two existing ones. The weighted average yield on debt investments made in the quarter ending March 31, 2025, was approximately 10.2%. The weighted average yield on debt investments, at fair market value, as of September 30, 2025, stood at 10.87%.

The activity of realizing investments is also key to portfolio rotation. During the quarter ended September 30, 2025, ICMB fully realized investments in two portfolio companies, generating $6.5 million in proceeds with an internal rate of return (IRR) of 12.67%. For the quarter ended June 30, 2025, the company fully realized investments in three portfolio companies, totaling $9.5 million in proceeds, with an IRR of 32.82%.

Disciplined portfolio management and credit quality monitoring

Monitoring credit quality involves tracking asset performance and managing nonaccruals. As of September 30, 2025, nonaccruals accounted for 4.4% of the portfolio at fair value, which was an increase from 1.6% the prior quarter. However, for the quarter ending March 31, 2025, there was a reduction in nonaccruals from 5 to 2, representing a decrease in their proportion of total portfolio fair value from 3.6% to 1.7%. The portfolio composition as of September 30, 2025, showed that 78.32% of investments were first lien debt, with 21.68% in equity, warrants, and other investments. Furthermore, approximately 82% of assets at fair value were rated in the top 2 risk rating categories as of the quarter ended September 30, 2025.

Portfolio metrics as of late 2025 include:

Securing capital through debt and equity markets

Maintaining liquidity and access to credit facilities is vital for ongoing operations and investment. As of September 30, 2025, Investcorp Credit Management BDC, Inc. had $11.6 million in cash, of which $7.8 million was restricted cash. Unused and available capacity under its revolving credit facility with Capital One, N.A. was $36.5 million. To enhance financial flexibility, Investcorp Capital provided a backstop commitment to refinance the company's notes due April 1, 2026, with a coupon of SOFR plus 550 basis points on a floating rate basis.

Distributing income to shareholders to maintain BDC status

Distributions are a core requirement for a Business Development Company. For the quarter ended December 31, 2025, the Board declared a distribution of $0.12 per share and a supplemental distribution of $0.02 per share, both payable on December 12, 2025, to stockholders of record as of December 1, 2025. This represents a total declared distribution of $0.14 per share for that period. In the first quarter of 2025, the dividend declared was $0.12 per-share base distribution.

Reducing the expense base using technology, a newly emphasized goal

Expense management is a continuous activity, with recent efforts showing some success. For the nine months ending September 30, 2025, total expenses were reduced to $11.4 million, down from $12.8 million in the same period in 2024. This reduction was explicitly aided by waivers on base management fees. The company's net investment income after taxes for the nine months ending September 30, 2025, was $1.7 million.

Key expense-related figures include:

• Total investment income for the nine months ending September 30, 2025: $13.3 million.
• Total expenses for the nine months ending September 30, 2025: $11.4 million.
• Net investment income before taxes for Q3 2025: $0.7 million or $0.05 per share.
• Net investment income (NII) for Q3 2025: $0.6 million or $0.04 per share.

The focus on cost control is evident in the fee structure management, even if technology specifics aren't detailed in the latest reports. Finance: draft 13-week cash view by Friday.

Investcorp Credit Management BDC, Inc. (ICMB) - Canvas Business Model: Key Resources

You're looking at the core assets that power Investcorp Credit Management BDC, Inc.'s operations as of late 2025. These aren't just line items; they are the actual capital and structural advantages you need to consider for valuation.

The primary tangible asset, the investment portfolio, stood at a Fair Value of $196.1 million as of the quarter ended September 30, 2025. That's the book value of the debt and equity stakes the company holds in its middle-market borrowers.

Here's a quick look at the immediate capital position and portfolio structure from that same period:

The structure of the debt portfolio is definitely a key resource, especially in a fluctuating rate environment. As of September 30, 2025, the debt portfolio was overwhelmingly structured with 98.49% in floating rate investments. This means the income generated adjusts upward when benchmark rates rise, helping to protect the yield Investcorp Credit Management BDC, Inc. generates.

Beyond the balance sheet numbers, the connection to the broader Investcorp platform is critical. This resource provides access to Investcorp's global sourcing platform and proprietary deal flow. This is how they find the investment opportunities in the first place, often before they hit the broader market.

You also have the specialized credit and investment management team expertise. This isn't a number you can easily put in a spreadsheet, but it's the human capital that underwrites the risk and manages the assets. Their experience in unitranche loans and first/second lien debt, as they intend to continue investing, is central to their strategy.

The liquidity profile is quite strong, giving them flexibility. You have $11.6 million in cash on hand, plus another $36.5 million available under the revolving credit facility with Capital One, N.A. That's a total immediate liquidity pool of $48.1 million to deploy or use for operational needs.

Investcorp Credit Management BDC, Inc. (ICMB) - Canvas Business Model: Value Propositions

You're looking at what Investcorp Credit Management BDC, Inc. offers to its customers-the public investors and the middle-market companies it lends to. For investors, the value is clearly centered on generating high income while trying to keep the principal safe.

High-yield investment vehicle for income-focused public investors

The appeal here is the current income stream. For the quarter ending December 31, 2025, the Board declared a base distribution of $0.12 per share, which you can expect to receive on December 12, 2025. To sweeten that, they also declared a supplemental distribution of $0.02 per share for the same period. Honestly, this consistent payout is a major draw for income seekers. Looking at the September 30, 2025, period, that declared distribution represented a yield of about 20.14% based on the stock price of $2.78 at that time. The weighted average yield on the debt portfolio as of that date was 10.87% at fair market value, or the weighted average portfolio yield was 10.9% for the quarter.

Capital preservation via a focus on senior secured debt (78.32% first lien)

To back up that income promise, Investcorp Credit Management BDC, Inc. structures its portfolio defensively. As of September 30, 2025, a significant portion, specifically 78.32%, of its investment portfolio was in first lien investments. This means the majority of their capital is in the most senior secured debt positions, which generally have the first claim on a borrower's assets if things go south. You can see how the portfolio is structured right here:

Also, the debt portion is heavily weighted toward floating rates, which is a key defensive move when interest rates are volatile. As of September 30, 2025, 98.49% of the debt portfolio was invested in floating rate instruments. That's a clear structural benefit if rates stay elevated.

Flexible, customized credit solutions for U.S. middle-market companies

For the companies they lend to, the value is access to capital from an experienced manager. Investcorp Credit Management BDC, Inc. focuses on the middle market, targeting established companies with specific financial profiles. They expect their target borrowers to have annual revenues of at least $50 million and EBITDA of at least $15 million. The typical investment size they aim for ranges from $5 million to $25 million. The capital is used for things like organic growth, acquisitions, or refinancings.

Defensive portfolio structure that benefits from rising interest rates

This ties back to capital preservation, but it's also an income driver. The structure is designed to capture higher yields as rates move up. The heavy allocation to floating rate debt is the mechanism for this. As of the end of the September 30, 2025 quarter, the portfolio had 98.49% in floating rate debt. This contrasts with only 1.51% in fixed rate investments. This floating-rate exposure helps the weighted average yield on debt investments move up when benchmark rates increase, which is exactly what you want in this environment.

Consistent base distribution of $0.12 per share per quarter

You can count on the base payment. The Board declared a base distribution of $0.12 per share for the quarter ending December 31, 2025. This consistency, supplemented by the variable special dividend, is a core part of the offering. Here are some key portfolio metrics as of September 30, 2025, to give you context on the underlying assets:

• Number of portfolio companies: 41.
• Investment portfolio fair value: $196.1 million.
• Total assets: $210.6 million.
• Net asset value per share: $5.04.

Finance: draft 13-week cash view by Friday.

Investcorp Credit Management BDC, Inc. (ICMB) - Canvas Business Model: Customer Relationships

You're managing relationships with two distinct, yet equally critical, customer groups: your investors and the management teams of the companies you lend to. For Investcorp Credit Management BDC, Inc. (ICMB), these connections are cemented through transparency and consistent payouts.

Investor relations and communication via quarterly earnings calls and filings

We keep our investors informed through required disclosures and direct dialogue. For instance, the financial results for the third quarter ended September 30, 2025, were released on Wednesday, November 12, 2025, followed by the earnings conference call on Thursday, November 13, 2025. This cadence establishes a predictable communication rhythm. You can review the details in filings available on the SEC's EDGAR platform or the Investor Relations page on the ICMB website.

Key communication points center on portfolio health and shareholder returns. Here's a snapshot of the Q3 2025 figures shared:

Proactive credit monitoring to manage nonaccruals

Managing credit risk is a core relationship function; when a loan sours, it directly impacts investor returns. We actively monitor the portfolio to keep nonaccruals in check. As of Q3 2025, nonaccruals accounted for 4.4% of the portfolio at fair value. That's up from 1.6% in the prior quarter, so it's definitely an area management is focused on resolving. We maintain a disciplined approach, with approximately 82% of assets at fair value rated in the top two risk rating categories.

The portfolio structure itself is designed to mitigate concentration risk with investors:

• Investments in 37 portfolio companies as of November 12, 2025.
• Average exposure to any single company is less than 3% of the portfolio's fair value.
• Portfolio diversified across 18 industries.

Long-term, direct relationships with portfolio company management teams

Our investment adviser, CM Investment Partners LLC, builds these relationships by focusing on middle-market companies that generally have annual revenues of at least $50 million and EBITDA of at least $15 million. These are not passive investments; they require direct engagement. We look for structural protections, noting that approximately 73% of our investments are in covenanted deals. This level of involvement suggests a hands-on relationship with the management teams to ensure covenant compliance and operational stability.

Shareholder distributions, which are definitely a key relationship element

Distributions are how we deliver on our primary objective: maximizing total return for stockholders. The Board declared a regular distribution of $0.12 per share and a supplemental distribution of $0.02 per share for the quarter ending December 31, 2025, payable on December 12, 2025. This total distribution of $0.14 per share was significant, as the portfolio's net decrease in net assets from operations was approximately $1.3 million, with an additional $2 million due to cash dividends distribution in Q3 2025. This distribution represented a 20.14% yield on the Company's $2.78 share price as of market close on September 30, 2025. We expect the declared dividend to be comprised of net investment income and realized capital gains, not a return of capital for the quarter ended September 30, 2025.

The commitment from the parent organization also strengthens this relationship, as Investcorp Capital, an affiliate of Investcorp Group, provided a backstop commitment to refinance the company's notes due April 1, 2026.

Finance: draft next quarter's distribution projection based on current NII run-rate by end of January.

Investcorp Credit Management BDC, Inc. (ICMB) - Canvas Business Model: Channels

You're looking at how Investcorp Credit Management BDC, Inc. (ICMB) gets its capital and deploys its investment opportunities to you, the investor, and its portfolio companies. It's a mix of public markets, private arrangements, and leveraging the broader Investcorp ecosystem.

NASDAQ Stock Exchange for Raising Equity Capital from Public Investors

The primary public channel for raising equity capital is the listing on the NASDAQ-GS exchange under the ticker ICMB. This allows for the continuous sale of shares to the public market, though recent activity suggests a focus on capital preservation over aggressive issuance. As of late 2025, the reported Market Cap stood at approximately $41,240,519. The company has a stated Annualized Dividend of $0.56, translating to a Current Yield of around 19.72% based on recent trading prices. This public float is also subject to institutional interest; filings show 19 institutional owners and funds holding a total of 1,310,295 shares.

Key metrics related to the public equity channel as of late 2025 reporting periods include:

• Exchange Listing: NASDAQ-GS
• Market Capitalization: $41,240,519
• Current Yield (Annualized): 19.72%
• Institutional Shareholders (SEC Filers): 19
• Total Shares Held by Institutions: 1,310,295

Direct Origination and Sourcing Network from the Investcorp Platform

The direct origination channel relies heavily on the infrastructure of its investment adviser, CM Investment Partners LLC, which is part of the global Investcorp organization. This relationship is crucial for sourcing proprietary, non-auctioned deal flow, which is often the lifeblood of a successful BDC. Investcorp's Private Equity North America team has historically completed approximately 70 transactions in North America, deploying over $22 billion in transaction value since inception. This deep bench of experience in the middle market-targeting companies with at least $50 million in annual revenues and $15 million in EBITDA-informs the sourcing strategy for Investcorp Credit Management BDC, Inc. However, management commentary in Q3 2025 noted that deal flow and sponsor-led M&A remained slow, compressing spreads and limiting compelling new originations. The portfolio as of September 30, 2025, reflected a focus on senior risk, with 78.32% in first lien investments.

Debt Capital Markets for Issuing Notes and Securing Credit Facilities

Investcorp Credit Management BDC, Inc. uses the debt capital markets to secure leverage, which magnifies returns on its equity base. As of September 30, 2025, the balance sheet showed Total Assets of $210.64 million against Total Liabilities of $137.9 million, resulting in Net Assets of $72.70 million. A key component of this leverage is the revolving credit facility, which provided $36.5 million of unused and available capacity as of that date. Furthermore, the company has specific notes outstanding; an affiliate provided a crucial $65 million backstop commitment to refinance the 4.875% Notes due in April 2026, effectively removing near-term maturity risk. The portfolio's structure is heavily weighted toward floating rates, with 98.49% of debt investments being floating rate, capitalizing on the rate environment with a Weighted Average Yield on debt investments of 10.87% as of the end of Q3 2025.

A snapshot of the capital structure as of the third quarter of 2025:

Investment Banking and Broker-Dealer Networks for New Debt Placement

While specific, named broker-dealer relationships for ICMB's new debt placements in late 2025 aren't explicitly detailed in recent reports, the BDC's investment focus-unitranche loans, first lien, and second lien debt-requires active engagement with established debt capital markets and investment banking networks. These networks, which include firms specializing in structuring, underwriting, and marketing syndicated loans and private credit, are essential for placing the debt instruments that form the core of ICMB's portfolio. The firm's investment strategy involves structuring transactions that range from $5 million to $25 million, often for organic growth or acquisitions, which necessitates relationships with lenders, specialty finance firms, and fixed income funds that participate in these private credit markets.

The utilization of these networks is implied through the need to structure and place the debt, which includes:

• Structuring advice for senior/subordinated debt and private placements.
• Access to institutional investor bases for debt distribution.
• Negotiating terms for unitranche and first/second lien loans.
• Assistance in debt refinancing and recapitalization strategies.

Investcorp Credit Management BDC, Inc. (ICMB) - Canvas Business Model: Customer Segments

You're looking at the core groups Investcorp Credit Management BDC, Inc. (ICMB) serves, which are primarily focused on generating current income from private debt investments in the U.S. middle market.

Income-focused Public Shareholders seeking high distribution yields are a primary segment. These investors are attracted by the current income stream the Business Development Company (BDC) structure is designed to provide. For instance, as of early December 2025, ICMB offered a compelling dividend yield of 18.36%. The declared distribution for the quarter ended September 30, 2025, was $0.12 per share plus a supplemental distribution of $0.02 per share, both payable on December 12, 2025. This total distribution of $0.14 represented a 20.14% yield on the $2.78 share price as of September 30, 2025. The forward annual payout estimate is $0.48.

The borrowers, which form the other side of the customer equation, are U.S. Middle-Market Companies. ICMB specifically seeks to finance middle-market companies that meet certain financial thresholds. The target profile is companies that have annual revenues of at least $50 million and an EBITDA of at least $15 million. The typical size of an individual investment ranges from $5 million to $25 million. These companies utilize the capital for purposes like organic growth, acquisitions, market or product expansion, refinancings, and/or recapitalizations.

ICMB maintains a strategy of investing across diversified industries to manage idiosyncratic risk. As of the first quarter of 2025, the portfolio showed specific concentrations in several sectors, which you can see detailed below:

The portfolio companies spanned 19 GICS industries as of the end of Q1 2025.

Finally, the ownership base includes Institutional investors and funds holding ICMB common stock. The level of institutional involvement has varied across reporting periods. As of September 2025, 14 filers were identified as institutional owners, collectively holding 6.5% of the company's total shares outstanding. Separately, other filings indicate institutional ownership at 33.49% holding 4.83M shares, or another report suggests 19 institutional owners holding a total of 1,310,295 shares. The top institutional stake as of September 30, 2025, belonged to Bulldog Investors, LLP, owning 3.62% of the company.

You should note the key investment profile characteristics:

• Weighted average yield on debt investments as of September 30, 2025, was 10.87%.
• 78.32% of the investment portfolio was in first lien investments as of September 30, 2025.
• 98.49% of the debt portfolio consisted of floating rate investments.
• The Net Asset Value (NAV) per share as of September 30, 2025, was $5.04.

Investcorp Credit Management BDC, Inc. (ICMB) - Canvas Business Model: Cost Structure

The Cost Structure for Investcorp Credit Management BDC, Inc. (ICMB) is heavily influenced by the cost of its financial leverage and the fees paid to its external Investment Advisor. You need to watch these closely, as they directly impact net investment income available for shareholder distributions.

Interest expense on debt, including the 4.875% notes due April 1, 2026

Interest expense is a primary cost driver, directly tied to the debt used to finance portfolio investments. The 4.875% notes due April 1, 2026, represent a significant tranche of this cost, with an aggregate principal amount of $\text{\$65 million}$ issued in March 2021. While the exact total interest expense for the nine months ended September 30, 2025, was not explicitly isolated in the latest reports, this cost is substantial and subject to the current interest rate environment, especially as the company has a refinancing backstop in place for these notes.

Base management fees and incentive fees paid to the Investment Advisor

The fees paid to CM Investment Partners LLC, the Investment Advisor, are a direct operating cost. The fee structure involves a base fee and an income-based incentive fee. The data for the nine months ended September 30, 2025, shows the following components:

The negative figure for the Income-Based Incentive Fees suggests that, for the nine-month period, fee waivers or the Total Return Requirement threshold were not met, which is a positive sign for the expense line item.

Operating expenses, which totaled $\text{\$11.4 million}$ for the nine months ended Sep 30, 2025

The total general and administrative expenses, excluding interest expense, were reported at $\text{\$11.4 million}$ for the nine months ending September 30, 2025. This figure was an improvement, down from $\text{\$12.8 million}$ in the comparable prior-year period, partly due to the aforementioned waivers on base management fees.

Professional fees for legal, accounting, and valuation services

These costs are embedded within the total operating expenses. Specific line-item figures for professional fees related to legal, accounting, and valuation services for the nine months ended September 30, 2025, were not separately itemized in the readily available summary data, but they form part of the overall cost base required to operate as a BDC.

Costs associated with maintaining BDC compliance and public listing

Maintaining the status as a regulated Business Development Company (BDC) and remaining listed on NASDAQ involves ongoing compliance and administrative expenditures. These costs, which include regulatory filings, director fees, and general corporate governance expenses, are included in the overall operating expense base. You should expect these costs to be relatively fixed year-over-year, barring any major regulatory changes.

• Costs for maintaining BDC compliance and public listing are part of the $\text{\$11.4 million}$ in operating expenses.
• The company is an externally-managed entity, which means many of these overheads are passed through via the advisory agreement.

Investcorp Credit Management BDC, Inc. (ICMB) - Canvas Business Model: Revenue Streams

Investcorp Credit Management BDC, Inc. (ICMB) generates its revenue primarily from its portfolio of debt and equity investments in middle-market companies. The core of the revenue generation is the interest earned on these debt holdings.

Interest income from debt investments is the largest component. For the nine months ended September 30, 2025, Total investment income was $13.3 million. As of September 30, 2025, the weighted average yield on debt investments, at fair market value, stood at 10.87%.

The revenue streams also include income recognized from specific contractual arrangements within the portfolio. These streams are integral to the total investment income figure reported.

Realized gains from the sale or repayment of investments provide lumpy but significant contributions to revenue when positions are exited successfully. For the quarter ended September 30, 2025, ICMB fully realized its investments in two portfolio companies, generating total proceeds of $6.5 million, with an internal rate of return on those specific investments reaching 12.67%. This contrasts with the quarter ended June 30, 2025, where realized proceeds totaled $9.5 million from three portfolio companies, yielding an internal rate of return of 32.82%.

The business model inherently includes PIK (Payment-in-Kind) interest income from certain portfolio companies, which accrues to the principal balance of the loan, and Fee income from origination, structuring, and prepayment penalties, which are recognized as earned. While specific dollar amounts for these two components for the nine-month period are embedded within the total investment income, the overall revenue expectation for the full year 2025 was estimated around $17.49M. The revenue reported for the quarter ended September 30, 2025, was $4.36 million, and the revenue for Q4 2025 was reported as $4.55 million.

Here is a look at the key components contributing to the revenue generation, using the most granular data available for the periods ending in 2025:

The structure of the income is heavily weighted toward interest accruals, supplemented by realized gains upon successful exits. You can see the quarterly revenue fluctuations:

• Revenue for 2024/Q4 was $5.119M.
• Revenue Estimate for 2025/Q3 was $4.410M.
• Revenue for 2025/Q2 was $4.545M.
• Revenue Estimate for 2025 is $17.49M.