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Here are 1-3 brief analogies for Investcorp Credit Management BDC (ICMB):

1. Like a publicly traded version of Blackstone's private credit division, specializing in loans to middle-market businesses.
2. The business loan department of a bank such as JPMorgan Chase, but instead of taking deposits, it's a publicly traded company that invests solely in private business loans.
3. Similar to the private credit funds managed by firms like Ares Management, but structured as a publicly traded investment company for income-focused investors.

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• Senior Secured Loans: Loans secured by a first priority lien on the borrower's assets.
• Unitranche Debt: A single debt facility combining both senior and subordinated debt into one instrument.
• Second Lien Secured Loans: Loans secured by a second priority lien on the borrower's assets.
• Subordinated Debt: Loans that rank below other debt in the event of borrower liquidation.

These products fall under the service category of Direct Lending / Private Debt Financing to middle-market companies.

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Investcorp Credit Management BDC (ICMB) operates as a Business Development Company (BDC), meaning its primary business is to invest in and lend to other companies. Therefore, it sells its capital (primarily debt and, to a lesser extent, equity investments) primarily to other companies.

ICMB focuses on providing financing to:

• Privately held, U.S. middle-market companies: These are generally established companies with enterprise values typically ranging from $50 million to $2 billion. ICMB serves these companies by providing capital for growth, acquisitions, recapitalizations, and other strategic initiatives.

As these "customer" companies are privately held, they do not have public stock symbols. Investcorp Credit Management BDC maintains a diversified portfolio across various industries, and while specific portfolio companies are listed in its SEC filings (such as the Schedule of Investments in its annual 10-K report), these are not public companies, and there are typically no single "major customers" in the traditional sense that would dominate the portfolio or be widely recognized public entities.

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• Investcorp Credit Management US LLC (Parent: Investcorp Holdings B.S.C. - Symbol: INVCORP)
• MUFG Union Bank, N.A. (Parent: Mitsubishi UFJ Financial Group, Inc. - Symbol: MUFG)
• U.S. Bank National Association (Parent: U.S. Bancorp - Symbol: USB)
• EQ Shareowner Services (Parent: Equiniti Group plc - Symbol: EQN.L)

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Suhail A. Shaikh, Chief Executive Officer, President, and Chief Investment Officer of the Adviser

Suhail A. Shaikh was appointed Chief Executive Officer of Investcorp Credit Management BDC, Inc. in May 2024. He joined Investcorp in January 2023, serving as President since February 2023 and as a member of the Board of Directors since September 2023. Previously, Mr. Shaikh served as Co-Chief Investment Officer of CM Investment Partners LLC (the company's investment adviser) since January 2023, before becoming the sole Chief Investment Officer. He has over a decade of experience in private credit investing.

Robert Andrew Muns, Chief Financial Officer and Chief Operating Officer

Robert Andrew Muns assumed the position of Chief Financial Officer of Investcorp Credit Management BDC, Inc. effective July 16, 2025. He joined Investcorp in 2019 as part of the acquisition of CM Investment Partners LLC, which serves as the company's investment manager. Before this, Mr. Muns was a Managing Director at CM Investment Partners LLC and co-founded and led the Credit Investments Group at Stifel. Prior to Stifel, he worked at Cantor Fitzgerald as a Managing Director on the Special Situations and Leveraged Loans Desk. Mr. Muns holds an M.B.A. from Columbia Business School.

Michael C. Mauer, Chairman of the Board and Vice Chairman of Private Credit at Investcorp

Michael C. Mauer co-founded CM Investment Partners LLC in 2012, which was later acquired by Investcorp in 2019. He served as the Chief Executive Officer of Investcorp Credit Management BDC, Inc. until May 2024, when he transitioned to Chairman of the Board and Vice Chairman of Private Credit at Investcorp. Prior to Investcorp, Mr. Mauer was a Senior Managing Director and head of leveraged loans at Cyrus Capital Partners LLC from 2011 to 2014. From 2009 to 2010, he worked for Icahn Capital as a Senior Managing Director, where he was involved in the investment team and in charge of Marketing and Investor Relations. He spent over eight years at Citigroup as a Managing Director, holding leadership roles such as Global Co-Head of Leverage Finance. Mr. Mauer also held several positions at JPMorgan from 1988 to 2001, including Head of North American Investment Grade and Leverage Loan Syndicate, Sales and Trading businesses. He began his career as a Senior Accountant at Price Waterhouse & Co., where he was a Certified Public Accountant.

Christopher E. Jansen, Co-Founder of CM Investment Partners LLC

Christopher E. Jansen co-founded CM Investment Partners LLC, the company's investment manager, in 2012 with Michael Mauer. Before that, he was a founding Managing Partner and Senior Portfolio Manager for Stanfield Capital Partners from its inception in 1998 until its sale in 2010. In this role, his responsibilities included investment oversight, administration of the investment process, and implementation of portfolio management procedures for the company's sub-investment grade/leveraged loan businesses. As a member of Stanfield's Management Committee, Mr. Jansen also contributed to the firm's strategic direction. From 1990 to 1998, he served as a Managing Director and Portfolio Manager at Chancellor Senior Secured Management. Earlier in his career, from 1983 to 1990, Mr. Jansen held various positions at Manufacturers Hanover Trust Company, including Vice President in the Acquisition Finance Group and LBO Management Group.

Paolo S. Cloma, Chief Compliance Officer

Paolo S. Cloma was appointed Chief Compliance Officer of Investcorp Credit Management BDC Inc. and CM Investment Partners, LLC in March 2024. He joined Investcorp in September 2022 and also serves as an Associate Vice President within Investcorp's Global Legal & Compliance team in New York. Prior to joining Investcorp, Mr. Cloma worked at Bardin Hill Investment Partners LP and has eight years of experience in compliance and operational functions.

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The key risks to Investcorp Credit Management BDC (ICMB) primarily revolve around its dividend sustainability, elevated leverage, and declining Net Asset Value (NAV) amidst potential economic headwinds.

1. Dividend Sustainability and High Payout Ratio: A significant risk for ICMB is the sustainability of its high dividend yield, as the company's payout ratio has exceeded 200%. This indicates that ICMB is distributing more in dividends than it generates from its net investment income, relying instead on "spillover income" derived from capital gains and refinancings. Should the pace of refinancings slow or market conditions deteriorate, ICMB's ability to maintain its dividend payments could be jeopardized.
2. Elevated Leverage: ICMB operates with aggressive leverage ratios, reaching 1.77x gross and 1.54x net in Q2 2025. Such high leverage, particularly in an environment of rising interest rates, is considered concerning for business development companies (BDCs). Elevated leverage increases the company's sensitivity to interest rate fluctuations, potentially leading to higher interest expenses that could diminish net investment income and amplify losses during an economic downturn.
3. Declining Net Asset Value (NAV) and Vulnerability to Economic Slowdown: The company has experienced a decline in its Net Asset Value (NAV), with a 2.7% drop in Q2 2025 and a 2.71% decrease year-over-year. The broader BDC sector, including ICMB, remains susceptible to economic slowdowns. A downturn could exacerbate the decline in NAV and, coupled with the company's high leverage, could lead to amplified losses.

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Increased Competition in the Private Credit Market: The private credit market has seen a significant influx of capital and new entrants, including large institutional investors and alternative asset managers. This intensifying competition can lead to yield compression, higher leverage multiples on new deals, and potentially looser underwriting standards across the middle market, threatening ICMB's ability to source high-quality, attractively priced investments and maintain its investment spreads.

Deterioration of Credit Quality in the Middle Market: A prolonged period of higher interest rates, coupled with persistent inflation and general economic uncertainty, is increasingly straining the financial health of many middle-market companies. This creates a clear emerging threat of higher default rates, increased non-accruals, and potential loan losses within ICMB's investment portfolio, impacting its income and asset value.

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Private Credit Market

U.S. Middle Market Lending

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Investcorp Credit Management BDC (ICMB) is expected to drive future revenue growth over the next 2-3 years through several key strategies:

1. Increased Investment Activity and Capital Deployment: ICMB consistently focuses on deploying capital into new and existing portfolio companies. Recent earnings reports indicate significant investment activity, such as deploying $13.1 million across six portfolio companies in Q1 2025. The company maintains a robust investment pipeline, suggesting continued origination volumes and capital deployment into various debt instruments like first lien, second lien, and unitranche loans.
2. Focus on Middle Market Private Credit Transactions: The company emphasizes financing middle-market companies for organic growth, acquisitions, market/product expansion, refinancings, and recapitalizations. By participating in these types of transactions, ICMB aims to generate interest and fee income from a diversified portfolio of established businesses with positive cash flow.
3. Improved Credit Quality and Reduced Non-Accruals: A key driver of net investment income is the performance of its loan portfolio. ICMB has demonstrated a focus on improving credit quality, evidenced by a reduction in non-accrual rates. For instance, non-accruals as a percentage of total fair market value improved to 4.8% in Q1 2025, and the number of non-accruals decreased from five to two in Q3 2025, lowering their proportion of the total portfolio to 1.7% in fair value. This improvement directly contributes to a more stable and growing interest income stream.
4. Strategic Management of Capital Structure and Lower Borrowing Costs: While not a direct revenue driver, efficient management of the company's capital structure significantly impacts net investment income. ICMB actively manages its leverage levels and revolving credit facilities. For example, in Q2 2025, the company repriced its Capital One revolving credit facility, which reduced borrowing cost spreads. This optimization of financing costs can enhance overall profitability and the net investment income available to shareholders.
5. Platform Expansion: ICMB has explicitly indicated a strategy to target net investment income (NII) growth through platform expansion in the second half of 2025. This suggests an intent to broaden the scope and scale of its lending operations, potentially through new initiatives, partnerships, or an increased volume of investment opportunities, to drive overall revenue growth.

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Share Repurchases

• On August 7, 2025, Investcorp Credit Management BDC's Board of Directors authorized a new share repurchase program, allowing for the repurchase of up to $5 million worth of its shares.
• This program is effective for a one-year period, terminating on August 7, 2026.
• The company plans to selectively pursue share repurchase opportunities that are accretive to net asset value per share.

Share Issuance

• The issuance of common stock by Investcorp Credit Management BDC peaked in June 2022, with 3.142 million shares.
• As of May 9, 2022, the company had 14,385,809 shares of common stock outstanding.

Outbound Investments

• For the quarter ended June 30, 2025, ICMB made investments totaling $19.0 million at cost in one new and four existing portfolio companies.
• During the quarter ended March 31, 2025, the company invested $5.13 million at cost in one new and two existing portfolio companies.
• ICMB primarily focuses on investing in U.S. middle-market companies with annual revenues of at least $50 million and EBITDA of at least $15 million, with individual investments typically ranging from $5 million to $25 million.