Portman Ridge Finance Corporation (PTMN): Business Model Canvas [Dec-2025 Updated]

You're trying to map out exactly how Portman Ridge Finance Corporation (PTMN) generates returns after integrating Logan Ridge, and honestly, it boils down to being a specialized debt provider for the US middle market. After the merger, they now manage assets exceeding $600 million as of July 2025, focusing on secured, floating-rate loans to keep portfolio stability high while aiming for that high current income you expect-evidenced by their $4.6 million Net Investment Income in Q2 2025. This Business Model Canvas distills their entire operation, from the deal flow provided by their external adviser to the capital structure keeping the lights on, so dive in below to see the nine core components driving their strategy.

Portman Ridge Finance Corporation (PTMN) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that power Portman Ridge Finance Corporation's (PTMN) operations, especially following the major combination with Logan Ridge Finance Corporation (LRFC) in mid-2025. These partnerships are critical for deal flow, management expertise, and financing capacity.

External Investment Adviser: Sierra Crest Investment Management LLC

Sierra Crest Investment Management LLC serves as the external investment adviser, managing the day-to-day investment activities, which includes sourcing, diligence, structuring, and monitoring portfolio companies. This relationship is central to the investment strategy. Following the merger with Logan Ridge Finance Corporation, Sierra Crest Investment Management LLC, an affiliate of BC Partners Advisors L.P., continued as the external manager for the combined entity, which is slated to rebrand as BCP Investment Corporation (BCIC). To support the merger, Sierra Crest agreed to a significant concession: waiving up to $1.5 million of incentive fees over eight consecutive quarters post-closing. Post-merger, the fee structure evolved, with a new revenue stream arising from a profit-sharing agreement with the owner of Sierra Crest Investment Management, which partially offset the loss of the Logan Ridge fee stream.

Deal Sourcing and Scale: BC Partners Advisors L.P. (BC Partners Credit Platform)

The affiliation with BC Partners Advisors L.P. is key for deal sourcing and achieving necessary scale. Sierra Crest Investment Management is an affiliate of BC Partners Advisors L.P.. The merger was designed to leverage the enhanced scale provided by the BC Partners Credit Platform. Based on July 11, 2025 financial data, the combined company achieved total assets in excess of $600 million. This platform connection was already deep; prior to the merger, more than 70% of Logan Ridge Finance Corporation's portfolio at fair value was expected to be comprised of BC Partners-originated assets. The combined entity aims to use this scale for improved stock trading liquidity and potentially greater access to financing sources.

Financing Partner: JPMorgan Chase (JPM Credit Facility)

Access to committed credit facilities from major financial institutions is a vital resource. JPMorgan Chase Bank, National Association (JPM) serves as the administrative agent for the Senior Secured Revolving Credit Facility. This facility was recently amended and extended in July 2024, resulting in an upsize of commitments to a total of $200.0 million from $115.0 million. As of March 31, 2025, Portman Ridge Finance Corporation reported $52.6 million of available borrowing capacity under this facility. By June 30, 2025, the floating rate portion of the outstanding borrowings under the JPM Credit Facility stood at $147.4 million, out of total outstanding borrowings of $255.4 million. Approximately 86.9% of the debt securities portfolio at par value as of June 30, 2025, were floating rate tied to an index like SOFR or the PRIME rate, making the JPM facility's terms directly relevant to interest rate risk management.

M&A Transaction Advisors for the Logan Ridge Merger

The merger with Logan Ridge Finance Corporation, which closed on July 15, 2025, required several specialized external advisors to navigate the transaction for both parties' Special Committees and the companies themselves. Here's a breakdown of the key firms involved in that significant 2025 event:

• Financial Advisor to PTMN Special Committee: Keefe, Bruyette & Woods, A Stifel Company.
• Legal Counsel to PTMN Special Committee: Stradley Ronon Stevens & Young, LLP.
• Financial Advisor to LRFC Special Committee: Houlihan Lokey.
• Legal Counsel to LRFC Special Committee: Skadden, Arps, Slate, Meagher & Flom LLP.
• General Legal Counsel (PTMN and LRFC): Simpson Thacher & Bartlett LLP and Dechert LLP.

The transaction itself involved LRFC shareholders receiving 1.50 newly issued shares of PTMN common stock for each LRFC common share.

The structure of these key partnerships is evident in the post-merger metrics:

Metric	Value / Detail	As of Date	Source Reference
Combined Total Assets	In excess of $600 million	July 11, 2025
Sierra Crest Incentive Fee Waiver	Up to $1.5 million	Over eight consecutive quarters post-closing
JPM Credit Facility Total Commitment	$200.0 million	As of July 2024 amendment
Available Borrowing Capacity (JPM Facility)	$52.6 million	March 31, 2025
Outstanding Borrowings (Floating Rate on JPM Facility)	$147.4 million	June 30, 2025
Expected BC Partners Originated Assets (LRFC Portfolio Pre-Merger)	More than 70% at fair value	Expected at closing

Portman Ridge Finance Corporation (PTMN) - Canvas Business Model: Key Activities

You're looking at the core engine of Portman Ridge Finance Corporation-the activities that drive its business as it transitions to BCP Investment Corporation following the July 15, 2025, merger with Logan Ridge Finance Corporation. This is about putting capital to work and managing that capital base effectively.

The primary activity is originating and structuring term loans and mezzanine debt for middle market companies. This is the deal flow engine. For the second quarter of 2025, the company executed deployments of approximately $10.9 million. This deployment activity contrasts with sales and repayments of approximately $17.0 million during the same period, resulting in net repayments and sales of approximately $6.1 million for the quarter ended June 30, 2025.

Managing the resulting portfolio is a constant, detailed task. As of June 30, 2025, Portman Ridge Finance Corporation managed a diversified portfolio across 25 different industries. The overall investment portfolio at fair value stood at $395.1 million, comprised of 96 different portfolio companies. The core debt investment portfolio, which excludes CLO Funds, equities, and Joint Ventures, totaled $323.1 million at fair value, spread across 69 different portfolio companies.

Here's a quick look at the portfolio structure as of the end of Q2 2025:

Metric	Value as of June 30, 2025
Total Investment Portfolio (Fair Value)	$395.1 million
Total Portfolio Companies	96
Debt Portfolio (Excl. CLO/Equity/JV) (Fair Value)	$323.1 million
Debt Portfolio Companies	69
Debt Portfolio Industries	25
Average Par Balance per Debt Entity	Approximately $2.6 million

Raising and managing capital is another critical function. While specific public equity offerings aren't detailed here, the debt side shows significant activity. As of June 30, 2025, the company had approximately $255.4 million (par value) of outstanding borrowings. This debt carried a current weighted average interest rate of 6.0%. The structure included $108.0 million par value at a fixed rate of 4.875% (Notes due 2026) and $147.4 million par value at a floating rate under the JPM Credit Facility. Post-merger, the combined entity reported total assets in excess of $600 million as of July 11, 2025. Furthermore, approximately 86.9% of the Debt Securities Portfolio at par value was floating rate as of that date.

Value creation initiatives are actively being executed to support shareholders. The Board authorized an open market stock repurchase program of up to $10 million, set to run from March 12, 2025, to March 31, 2026. This is part of broader initiatives, which also include the intention by the Company, management, and adviser to acquire up to 20% of outstanding common stock if shares trade below 80% of Net Asset Value (NAV).

Key elements of the capital management and value creation focus include:

• Authorized stock repurchase program up to $10 million.
• Repurchase authorization period runs through March 31, 2026.
• Intention to acquire up to 20% of common stock under specific pricing conditions.
• Total assets exceeding $600 million post-merger (as of July 11, 2025).
• Outstanding borrowings of $255.4 million (par value) as of June 30, 2025.

Finance: draft the Q3 2025 leverage forecast incorporating the post-merger asset base by next Tuesday.

Portman Ridge Finance Corporation (PTMN) - Canvas Business Model: Key Resources

You're looking at the core assets that power Portman Ridge Finance Corporation-now operating as BCP Investment Corporation-as of late 2025. These aren't just line items; they are the engines driving the business model forward, especially after the July 2025 merger.

The most immediate, tangible resource is the scale achieved through the merger with Logan Ridge Finance Corporation, which closed on July 15, 2025. Based on July 11, 2025 financial data, the combined entity immediately commanded total assets exceeding $600 million. This enhanced scale is a critical resource for improved trading liquidity and potentially better access to financing.

The relationship with the management and sourcing engine is paramount. You're leaning on the investment expertise and deal flow from the BC Partners Credit Platform. This platform, launched in February 2017, provides a deep infrastructure. To give you a concrete example of this resource in action, more than 70% of Logan Ridge's portfolio at fair value was expected to be BC Partners-originated assets at the time of the merger closing. This alignment is so central that the company is rebranding to BCP Investment Corporation to reflect this affiliation.

Here's a quick look at the capital structure as of June 30, 2025, which shows the debt resources available to fund the investment portfolio:

Debt Component	Par Value as of 6/30/2025	Interest Rate Detail
Total Outstanding Borrowings	$255.4 million	Weighted Average Interest Rate: 6.0%
Fixed-Rate Notes (Due 2026)	$108.0 million	Fixed Rate: 4.875%
JPM Credit Facility (Floating Rate)	$147.4 million	Floating Rate (under the facility)

The JPM Credit Facility itself is a key resource, providing operational flexibility. As of June 30, 2025, the company had $52.6 million of available borrowing capacity under this facility. Honestly, having a mix of fixed and floating debt helps manage interest rate exposure, though the majority of the debt portfolio was floating rate.

Finally, the legal and structural status is a foundational resource. Portman Ridge Finance Corporation operates under the regulated status of a Business Development Company (BDC) under the 1940 Act. This status is what allows the company to operate as it does, focusing on middle-market debt investments, and it's a necessary component for its entire investment thesis.

You should note these operational advantages:

• Affiliation with BC Partners' $40 billion platform.
• Exemptive relief allowing for co-investments across the platform.
• The planned transition to paying the base distribution on a monthly basis beginning in 2026.

Finance: draft 13-week cash view by Friday.

Portman Ridge Finance Corporation (PTMN) - Canvas Business Model: Value Propositions

You're looking at the core benefits Portman Ridge Finance Corporation, soon to be BCP Investment Corporation, offers to its stakeholders as of late 2025. The value proposition centers on providing capital to the middle market, delivering consistent income, and managing risk through portfolio structure, all enhanced by the recent combination with Logan Ridge Finance Corporation.

Access to capital for middle market companies that traditional banks may overlook.

Portman Ridge Finance Corporation provides debt financing to middle-market businesses. As of June 30, 2025, the debt investment portfolio, excluding CLO Funds, equities, and Joint Ventures, was spread across 69 different portfolio companies with an average par balance per entity of approximately $2.6 million. The total investment portfolio at fair value as of June 30, 2025, was $395.1 million, comprised of 96 different portfolio companies.

High current income for investors via quarterly distributions, like the Q3 2025 base distribution of $0.47 per share.

Investors receive returns through distributions. The Board of Directors approved a regular quarterly base distribution for the third quarter of 2025 of $0.47 per share. This was announced alongside a supplemental distribution of $0.02 per share. For context on earnings coverage, the Net Investment Income (NII) for the third quarter of 2025 was $8.8 million, or $0.71 per share. The core NII per share for Q3 2025 was $0.42 per share. The distribution of $0.47 per share for Q4 2025, when annualized based on the November 6, 2025 closing price of $12.13 per share, represents a yield of 15.5%.

Here's a look at the recent distribution and earnings comparison:

Metric	Q2 2025	Q3 2025
Net Investment Income (NII) per Share	$0.50	$0.71
Core NII per Share	$0.50	$0.42
Declared Base Distribution per Share	$0.47	$0.47

The company has a history of returning capital:

• Portman Ridge Finance Corp has paid dividends since 2021.
• The company increased its dividends for 3 successive years.
• The Q2 2025 base distribution was $0.47 per share.

Portfolio stability through a focus on secured debt, with 86.9% floating rate as of June 30, 2025.

A key risk mitigation strategy is the portfolio's structure, which heavily favors floating-rate debt, protecting against rising interest rates. As of June 30, 2025, approximately 86.9% of the Debt Securities Portfolio at par value was floating rate, tied to an index like SOFR or PRIME. Furthermore, 86.5% of these floating rate loans include interest rate floors, ranging between 0.50% and 5.25%. The weighted average annualized yield on interest-earning debt securities, excluding non-accruals and CLOs, was approximately 10.7% as of June 30, 2025.

Credit quality metrics as of June 30, 2025, show:

• Debt investments on non-accrual were six investments.
• Non-accruals represented 2.1% of the portfolio at fair value.
• Non-accruals represented 4.8% of the portfolio at amortized cost.

Enhanced scale and diversified portfolio following the Logan Ridge merger.

The merger with Logan Ridge Finance Corporation, which closed on July 15, 2025, immediately increased the platform's size. Based on July 11, 2025 data, the combined company had total assets in excess of $600 million. This combination was expected to be immediately accretive to Net Asset Value (NAV) by 1.3% upon closing, based on September 30, 2024 figures. The merger also contributed to a significant increase in reported NAV; the combined company's NAV was $231.3 million as of September 30, 2025, up from $164.7 million as of June 30, 2025. The combined company is expected to realize an expected $2.8 million of annual operating expense efficiencies.

The post-merger scale is reflected in the balance sheet as of September 30, 2025:

• Total borrowings stood at $324.6 million at a 6.1% average rate.
• Gross leverage was 1.4x and net leverage was 1.3x.
• The company plans to transition to monthly base distributions beginning in 2026.

Finance: draft the next quarter's projected expense efficiencies by next Tuesday.

Portman Ridge Finance Corporation (PTMN) - Canvas Business Model: Customer Relationships

You're managing a Business Development Company (BDC) like Portman Ridge Finance Corporation, and your customer relationships fall into two distinct buckets: the management teams of the companies you finance, and your public shareholders. The nature of the relationship with the portfolio companies is inherently long-term because you are structuring and financing their debt and equity, not running their day-to-day operations.

Direct, long-term relationships with portfolio company management teams.

The relationship here is about capital provision and oversight, not operational interference. Portman Ridge Finance Corporation originates, structures, finances, and manages a portfolio of term loans, mezzanine investments, and selected equity securities in middle market companies. The depth of this relationship is reflected in the portfolio's structure and size as of mid-2025.

Here are the key metrics defining the scale of these relationships as of June 30, 2025:

Relationship Metric	Value (as of 6/30/2025)	Context
Total Portfolio Companies	96 different companies	Total count across all investment types.
Debt Portfolio Fair Value (Excl. CLOs/Equity/JVs)	$323.1 million	Fair value of core debt investments.
Debt Portfolio Companies (Core)	69 different companies	Count for the core debt portfolio.
Average Par Balance Per Debt Entity	Approximately $2.6 million	Indicates the typical size of an individual loan relationship.

The structure is designed for ongoing engagement, as evidenced by the fact that approximately 86.9% of the Debt Securities Portfolio at par value as of June 30, 2025, consisted of floating rate instruments. This floating rate exposure means the management teams of these portfolio companies are in regular contact regarding interest rate benchmarks like SOFR or the PRIME rate.

Investor relations team for communication with public shareholders.

For your public shareholders, the relationship is managed through formal, scheduled communications, which ramped up following the transformational merger with Logan Ridge Finance Corporation (LRFC) completed on July 15, 2025. The Investor Relations function ensures transparency regarding performance and corporate actions.

Key communication events and financial outcomes from mid-2025 include:

• Second Quarter 2025 Earnings Release Date: Thursday, August 7, 2025.
• Second Quarter 2025 Earnings Conference Call Time: Friday, August 8, 2025, at 10:00 a.m. ET.
• Net Investment Income (NII) for Q2 2025: $4.6 million, or $0.50 per share.
• Regular Quarterly Base Distribution Declared (August 7, 2025): $0.47 per share.
• Supplemental Cash Distribution Declared (August 7, 2025): $0.02 per share.

The combined entity, post-merger, aimed to leverage its scale, with total assets in excess of $600 million based on July 11, 2025 financial data, to deliver compelling risk-adjusted returns for these shareholders.

External management structure means the relationship is advisory-focused, not operational.

Portman Ridge Finance Corporation is an externally managed closed-end investment company. This means the day-to-day investment decisions and portfolio management are delegated to an external adviser, which is a key structural element defining the relationship with the board and shareholders. The investment activities are managed by Sierra Crest Investment Management LLC, an affiliate of BC Partners Advisors L.P. Ted Goldthorpe serves as President and CEO of Portman Ridge Finance Corporation and also as the Head of the BC Partners Credit Platform.

This structure separates the capital provider (Portman Ridge Finance Corporation) from the capital deployer (the management company), which is common in private equity fund structures. The management company employs the investment professionals who evaluate opportunities and manage the portfolio, while the BDC itself remains the publicly-traded entity.

The post-merger entity structure highlights this relationship:

Entity Role	Name/Affiliation	Key Responsibility/Link
Publicly Traded Entity	Portman Ridge Finance Corporation (PTMN)	Regulated as a Business Development Company (BDC).
Investment Adviser	Sierra Crest Investment Management LLC	Manages investment activities under an advisory agreement.
Adviser Affiliate	BC Partners Advisors L.P.	Parent/Affiliate of the investment adviser.

The management company, Sierra Crest, is responsible for deploying capital and managing the portfolio, which is an advisory function, not an operational one within the portfolio companies themselves. The company also authorized an open market stock repurchase program of up to $10 million for the period from March 12, 2025, to March 31, 2026, as a direct value-creation initiative for shareholders.

Portman Ridge Finance Corporation (PTMN) - Canvas Business Model: Channels

Direct origination efforts by the investment adviser's credit team.

The origination channel is driven by the investment adviser, Sierra Crest Investment Management LLC, an affiliate of BC Partners Advisors L.P. This team structures, finances, and manages term loans, mezzanine investments, and selected equity securities in middle market companies.

Metric	Amount/Count	Date/Period
Originations	$10.9 million	Second Quarter 2025
Sales and Repayments	$17.0 million	Second Quarter 2025
Investment Portfolio at Fair Value	$395.1 million	June 30, 2025
Total Portfolio Companies	96	June 30, 2025
Debt Investment Portfolio (Fair Value)	$323.1 million	June 30, 2025
Average Par Balance per Debt Entity	Approximately $2.6 million	June 30, 2025

For the first quarter ended March 31, 2025, net deployment was approximately $1.8 million, resulting from $17.5 million in deployment against $15.7 million in sales and repayments.

Public stock exchange (Nasdaq: PTMN, transitioning to BCIC) for shareholder access.

Shareholder access to the company's equity is provided through the public stock exchange, which underwent a symbol change following a merger.

Entity/Symbol	Exchange	Effective Date
Portman Ridge Finance Corporation (PTMN)	Nasdaq	Prior to August 25, 2025
BCP Investment Corporation (BCIC)	Nasdaq	August 25, 2025
Total Assets (Pro Forma Post-Merger)	In excess of $600 million	July 11, 2025 Financial Data

The merger with Logan Ridge Finance Corporation closed on July 15, 2025.

Investor Relations section on the company website and SEC filings for disclosures.

Disclosures and financial performance metrics are channeled to investors via the company website and mandatory SEC filings.

• Website for filings and press releases: www.portmanridge.com.
• Net Asset Value (NAV) as of June 30, 2025: $164.7 million ($17.89 per share).
• Net Investment Income (NII) for Q2 2025: $4.6 million ($0.50 per share).
• Announced Third Quarter 2025 Quarterly Base Distribution: $0.47 Per Share.
• The company, management, adviser, and affiliates intend to acquire up to 20% of common shares over the next 24 months if the stock trades below 80% of NAV.

Portman Ridge Finance Corporation (PTMN) - Canvas Business Model: Customer Segments

You're looking at the core clientele for Portman Ridge Finance Corporation, which now operates as BCP Investment Corporation following its July 15, 2025 merger with Logan Ridge Finance Corporation. This entity focuses on two distinct, yet interconnected, customer groups: the companies it lends to and the investors who provide the capital.

US middle market companies seeking financing for growth, acquisitions, or recapitalizations represent the primary borrowers. These are the businesses that need capital structures tailored to their specific needs, which Portman Ridge Finance Corporation, managed by Sierra Crest Investment Management LLC, provides through term loans, mezzanine investments, and selected equity securities. The scale of this segment, post-merger, shows a significant footprint in the market.

Metric	Value as of September 30, 2025
Total Portfolio Companies (Debt Investments)	79 different portfolio companies
Average Par Balance Per Entity	$3.2 million
Total Assets (Combined Entity, July 11, 2025)	In excess of $600 million

The focus is on providing debt financing to these middle-market players. The average size of these individual debt investments, at an average par balance of $3.2 million per entity, gives you a clear picture of the typical transaction size Portman Ridge Finance Corporation targets.

Public shareholders (retail and institutional investors) seeking high-yield, dividend-paying investments form the second critical segment. These investors are drawn to the structure of a Business Development Company (BDC) for its pass-through income structure, which typically translates into regular distributions. The commitment to shareholder returns is evident in the declared distributions for the third quarter of 2025.

• Regular Quarterly Base Distribution (Q3 2025): $0.47 per share
• Supplemental Cash Distribution (Q3 2025): $0.02 per share
• Net Investment Income (NII) per Share (Q3 2025): $0.71 per share
• Core Net Investment Income (Core NII) per Share (Q3 2025): $0.42 per share
• Net Asset Value (NAV) per Share (September 30, 2025): $17.55 per share

The total declared distribution for the quarter was $0.49 per share, which you can compare against the reported NII of $0.71 per share for that same period. This income stream is what attracts the public investor base.

Companies across 28 diverse industries, minimizing sector-specific risk, are the underlying assets supporting the shareholder returns. Diversification is a key feature of the portfolio management strategy, which is important when underwriting risk in the middle market.

• Number of Diverse Industries (as of September 30, 2025): 28 different industries

This diversification across 28 industries helps to smooth out performance, even when specific sectors face headwinds. For instance, as of September 30, 2025, 10 investments were on non-accrual status, representing 3.8% of the portfolio at fair value, which is a metric shareholders watch closely.

Portman Ridge Finance Corporation (PTMN) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive Portman Ridge Finance Corporation's operations, especially after the transformative merger with Logan Ridge Finance Corporation (LRFC) which closed on July 15, 2025, leading to a rebranding to BCP Investment Corporation. The cost structure is heavily influenced by its structure as an externally managed Business Development Company (BDC).

The most significant recurring cost, outside of investment-related expenses, is the interest paid on its leverage. As of June 30, 2025, Portman Ridge Finance Corporation had approximately $255.4 million (par value) of outstanding borrowings. This debt carried a current weighted average interest rate of 6.0%. Of that total borrowing, $108.0 million had a fixed rate of 4.875% (Notes due 2026), and the remaining $147.4 million was floating rate under the JPM Credit Facility.

The costs related to its external management by Sierra Crest Investment Management LLC are direct and material:

• Management fees and incentive fees payable as of June 30, 2025, totaled $2,412.
• To support the merger, Sierra Crest agreed to waive up to $1.5 million of incentive fees over eight consecutive quarters following the closing.

General and administrative (G&A) expenses reflect the overhead of being a publicly traded entity. For the quarter ended June 30, 2025, total expenses were $8.1 million. This represented a $0.3 million increase compared to the $7.8 million reported for the first quarter of 2025.

Costs associated with the Logan Ridge Finance Corporation merger also factor into the overall structure, though some are one-time or offset by expected savings. The transaction was expected to result in annual operating expense efficiencies of approximately $2.8 million for the combined entity. Specific cash costs related to the merger consideration included a payment of $0.47 per share to LRFC shareholders funded by LRFC's investment adviser, plus an estimated Tax Distribution from LRFC expected to be between $1.0 million and $1.5 million.

Here's a quick look at the key cost-related figures as of mid-2025:

Cost Component	Financial Metric/Amount	As Of/Period
Outstanding Borrowings (Par Value)	$255.4 million	June 30, 2025
Weighted Average Interest Rate on Borrowings	6.0%	June 30, 2025
Total Expenses	$8.1 million	Quarter Ended June 30, 2025
Management and Incentive Fees Payable	$2,412	June 30, 2025
Logan Ridge Merger Incentive Fee Waiver (Max)	$1.5 million	Over eight quarters post-close
Estimated Annual Operating Expense Efficiencies (Post-Merger)	$2.8 million	Projected

Portman Ridge Finance Corporation (PTMN) - Canvas Business Model: Revenue Streams

You're looking at the core ways Portman Ridge Finance Corporation (PTMN), which is transitioning to BCP Investment Corporation (BCIC) following its July 2025 merger with Logan Ridge Finance Corporation, generates income as of late 2025. The revenue streams are heavily weighted toward debt investments, which is typical for a Business Development Company (BDC).

The primary driver is interest income from the debt securities portfolio. For the first quarter of 2025, this specific component, inclusive of payment-in-kind income, was reported at $10.3 million. This is a significant portion of the total investment income for that period.

The overall health of the income-generating engine is best tracked by Net Investment Income (NII). You saw NII rise sequentially from Q1 2025 to Q2 2025. Here's a quick look at the key income metrics for those two quarters:

Metric	Q1 2025 (Ended March 31)	Q2 2025 (Ended June 30)
Total Investment Income	$12.1 million	$12.6 million
Interest Income from Debt Securities Portfolio (Q1 only)	$10.3 million	N/A
Net Investment Income (NII)	$4.3 million	$4.6 million

The second required revenue stream, dividend and fee income from equity and joint venture investments, is embedded within the Total Investment Income figures above, alongside the debt interest income. For instance, in Q1 2025, the total investment income was $12.1 million, with $10.3 million attributed to the debt securities portfolio interest income. This implies that the remaining income components, which would include equity dividends and fees, amounted to approximately $1.8 million in Q1 2025.

The final component relates to capital gains, which are realized when investments are sold. This is not a stable, recurring revenue stream like interest, but it impacts overall profitability. For Q2 2025, the results were pressured by significant investment losses. Specifically, the company recorded realized losses of $15.84 million, which included impacts from ProAir and Anthem restructurings, partially offset by unrealized gains of $6.63 million. While you asked for realized gains, the latest concrete figure available for realized events in that quarter was a substantial loss, which is a critical counterpoint to the recurring interest income.

The management signaled a shift in capital allocation post-merger, indicating that cash generated might be used for share buybacks rather than immediately redeployed into new loans at tighter spreads. This suggests a focus on optimizing shareholder returns from existing cash flow, which is a strategic element tied directly to how the revenue streams are managed.