Investcorp BDC NAV Falls to $4.25 While Nonaccruals Hit 6.9%
Investcorp Credit Management BDC reported Q4 net investment income dropped to $0.3 million ($0.02 per share) and NAV fell to $4.25 from $5.04, while nonaccruals rose to 6.9% of the portfolio. The BDC held $15 million cash, $41.1 million unused revolver and realized $8.2 million at a 10.6% IRR.
1. Q4 Financial Performance
Net investment income before taxes declined to $0.3 million ($0.02 per share), down from $0.02 per share last quarter. NAV per share fell to $4.25 from $5.04 and nonaccruals increased to 6.9% of the portfolio from 4.4%, reflecting credit quality challenges.
2. Liquidity Position and Realizations
The company maintained $15 million in cash and $41.1 million of unused commitment under its revolving credit facility. It realized three portfolio exits generating $8.2 million in proceeds with an internal rate of return of 10.6%, demonstrating successful portfolio management.
3. Manager Alignment and Fee Strategy
An affiliate of the manager provided $65 million to refinance notes and holds about 25% of shares, underscoring strong alignment with shareholders. Fee waivers remain available and the company emphasizes disciplined underwriting and active portfolio management during economic challenges.