UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2025

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

COMMISSION FILE NUMBER: 814-01054

INVESTCORP CREDIT MANAGEMENT BDC, INC.

(Exact Name of Registrant as Specified in Its Charter)

Maryland	46-2883380
(State or other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)

280 Park Avenue

39th Floor

New York, NY 10017

(Address of Principal Executive Offices) (Zip Code)

(212) 599-4700

(Registrant’s Telephone Number, Including Area Code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.001 per share	ICMB	The NASDAQ Global Select Market

The number of shares of the issuer’s Common Stock, $0.001 par value per share, outstanding as of May 13, 2025 was 14,414,033.

		Page
PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements
	Consolidated Statements of Assets and Liabilities as of March 31, 2025 (unaudited) and December 31, 2024	1
	Consolidated Statements of Operations for the three months ended March 31, 2025 (unaudited) and March 31, 2024 (unaudited)	2
	Consolidated Statements of Changes in Net Assets for the three months ended March 31, 2025 (unaudited) and March 31, 2024 (unaudited)	3
	Consolidated Statements of Cash Flows for the three months ended March 31, 2025 (unaudited) and March 31, 2024 (unaudited)	4
	Consolidated Schedule of Investments as of March 31, 2025 (unaudited)	5
	Consolidated Schedule of Investments as of December 31, 2024	10
	Notes to Unaudited Consolidated Financial Statements	15
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	35
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	46
Item 4.	Controls and Procedures	47
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	48
Item 1A.	Risk Factors	48
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	48
Item 3.	Defaults Upon Senior Securities	48
Item 4.	Mine Safety Disclosures	48
Item 5.	Other Information	48
Item 6.	Exhibits	49
SIGNATURES		50

Investcorp Credit Management BDC, Inc. and Subsidiaries

Consolidated Statements of Assets and Liabilities

	March 31, 2025
	(Unaudited)	December 31, 2024
Assets
Non-controlled, non-affiliated investments, at fair value (amortized cost of    $181,732,130 and $184,154,029, respectively)	$189,559,979	$188,602,029
Affiliated investments, at fair value (amortized cost of $16,374,641 and    $16,351,878, respectively)	2,887,891	3,014,929
Total investments, at fair value (amortized cost of $198,106,771 and $200,505,907,respectively)	192,447,870	191,616,958
Cash	2,333,328	771,483
Cash, restricted	10,656,778	11,333,064
Principal receivable	—	720,855
Interest receivable	1,067,588	1,576,381
Payment-in-kind interest receivable	82,197	85,399
Long-term receivable	—	489,365
Short-term receivable	528,462	160,901
Prepaid expenses and other assets	490,407	97,324
Total Assets	$207,606,630	$206,851,730
Liabilities
Debt:
Revolving credit facility	$56,000,000	$58,500,000
2026 Notes payable	65,000,000	65,000,000
Deferred debt issuance costs	(1,215,592)	(1,369,415)
Unamortized discount	(71,110)	(88,888)
Debt, net	119,713,298	122,041,697
Payable for investments purchased	1,474,677	1,474,677
Dividend payable	1,729,684	1,728,749
Income-based incentive fees payable	501,955	501,955
Base management fees payable	1,543,069	769,176
Interest payable	2,624,154	1,894,921
Deferred income liability	674,011	—
Directors' fees payable	76,500	81,323
Accrued expenses and other liabilities	1,167,829	757,102
Total Liabilities	129,505,177	129,249,600
Commitments and Contingencies (see Note 6)
Net Assets
Common stock, par value $0.001 per share (100,000,000 shares authorized and 14,414,033      and 14,406,244 shares issued and outstanding, respectively)	14,414	14,406
Additional paid-in capital	203,528,187	203,505,480
Distributable earnings (loss)	(125,441,148)	(125,917,756)
Total Net Assets	78,101,453	77,602,130
Total Liabilities and Net Assets	$207,606,630	$206,851,730
Net Asset Value Per Share	$5.42	$5.39

See notes to unaudited consolidated financial statements.

1

Investcorp Credit Management BDC, Inc. and Subsidiaries

Consolidated Statements of Operations (Unaudited)

	For the three months ended March 31,
	2025	2024
Investment Income:
Interest income
Non-controlled, non-affiliated investments	$3,488,202	$5,561,333
Non-controlled, affiliated investments	14,978	28,830
Total interest income	3,503,180	5,590,163
Payment in-kind interest income
Non-controlled, non-affiliated investments	419,888	613,765
Non-controlled, affiliated investments	21,380	19,553
Total payment-in-kind interest income	441,268	633,318
Dividend income
Non-controlled, non-affiliated investments	81,607	54,138
Non-controlled, affiliated investments	—	—
Total dividend income	81,607	54,138
Payment in-kind dividend income
Non-controlled, non-affiliated investments	221,685	198,123
Non-controlled, affiliated investments	—	—
Total payment-in-kind dividend income	221,685	198,123
Other fee income
Non-controlled, non-affiliated investments	121,024	142,347
Non-controlled, affiliated investments	—	—
Total other fee income	121,024	142,347
Total investment income	4,368,764	6,618,089
Expenses:
Interest expense	1,831,967	2,174,195
Base management fees	848,036	951,799
Income-based incentive fees	—	—
Professional fees	341,283	354,934
Allocation of administrative costs from Adviser	254,023	225,856
Amortization of deferred debt issuance costs	153,824	152,591
Amortization of original issue discount - 2026 Notes	17,777	17,777
Insurance expense	120,502	125,766
Directors' fees	76,500	75,157
Custodian and administrator fees	74,237	68,031
Other expenses	40,173	379,406
Total expenses	3,758,322	4,525,512
Waiver of base management fees	(74,143)	(97,431)
Waiver of income-based incentive fees	—	—
Net expenses	3,684,179	4,428,081
Net investment income before taxes	684,585	2,190,008
Income tax expense, including excise tax expense	81,059	111,646
Net investment income after taxes	$603,526	$2,078,362
Net realized and unrealized gain/(loss) on investments:
Net realized gain (loss) from investments
Non-controlled, non-affiliated investments	$(1,627,282)	$(31,984)
Non-controlled, affiliated investments	—	(6,239,984)
Net realized gain (loss) from investments	(1,627,282)	(6,271,968)
Net change in unrealized appreciation (depreciation) in value of investments
Non-controlled, non-affiliated investments	3,379,849	1,089,608
Non-controlled, affiliated investments	(149,801)	5,515,738
Net change in unrealized appreciation (depreciation) on investments	3,230,048	6,605,346
Total realized gain (loss) and change in unrealized appreciation (depreciation) on investments	1,602,766	333,378
Net increase (decrease) in net assets resulting from operations	$2,206,292	$2,411,740
Basic and diluted:
Earnings per share	$0.15	$0.17
Weighted average shares of common stock outstanding	14,412,994	14,396,951
Distributions paid per common share	$0.12	$0.15

See notes to unaudited consolidated financial statements.

2

Investcorp Credit Management BDC, Inc. and Subsidiaries

Consolidated Statements of Changes in Net Assets (Unaudited)

	For the three months ended March 31,
	2025	2024
Net assets at beginning of period	$77,602,130	$78,840,983
Net increase (decrease) in net assets resulting from operations:
Net investment income after taxes	603,526	2,078,362
Net realized gain (loss) from investments	(1,627,282)	(6,271,968)
Net change in unrealized appreciation (depreciation) on investments	3,230,048	6,605,346
Net increase (decrease) in net assets resulting from operations	2,206,292	2,411,740
Stockholder distributions:
Distributions from net investment income	(1,729,684)	(2,159,568)
Distributions from capital gains	—	—
Net decrease in net assets resulting from stockholder distributions	(1,729,684)	(2,159,568)
Capital transactions:
Issuance of common shares (0 and 0, respectively)	—	—
Reinvestments of stockholder distributions	22,715	7,810
Net increase (decrease) in net assets resulting from capital transactions	22,715	7,810
Net increase (decrease) in net assets	499,323	259,982
Net assets at end of period	$78,101,453	$79,100,965

See notes to unaudited consolidated financial statements.

3

Investcorp Credit Management BDC, Inc. and Subsidiaries

Consolidated Statements of Cash Flows (Unaudited)

	For the three months ended March 31,
	2025	2024
Cash Flows from Operating Activities
Net increase (decrease) in net assets resulting from operations	$2,206,292	$2,411,740
Adjustments to reconcile net increase (decrease) in net assets resulting from    operations to net cash provided by (used in) operating activities:
Origination and purchase of investments	(5,612,192)	(9,299,480)
Payment in-kind interest and dividends	(666,155)	(924,681)
Sales and repayments of investments	7,340,189	26,658,550
Net realized (gain) loss on investments	1,627,282	6,271,968
Net change in unrealized appreciation/depreciation on investments	(3,230,048)	(6,605,346)
Amortization of discount/premium on investments	(289,989)	(922,739)
Amortization of deferred debt issuance costs	153,824	164,790
Amortization of original issue discount	17,778	17,778
Net (increase) decrease in operating assets:
Interest receivable	508,793	41,819
Payment-in-kind interest receivable	3,202	93,240
Receivable for investments sold	—	(1,972,100)
Principal receivable	720,855	41,532
Due from affiliate	—	339,445
Long-term receivable	489,365	(618,772)
Escrow receivable	—	(95,190)
Short-term receivable	(367,561)	—
Prepaid expenses and other assets	(393,083)	(443,459)
Net increase (decrease) in operating liabilities:
Payable for investments purchased	—	(2,012,467)
Interest payable	729,233	704,743
Deferred income liability	674,011	—
Directors fees payable	(4,823)	(4,343)
Accrued expenses and other liabilities	410,727	57,961
Base management fees payable	773,893	(17,627)
Income-based incentive fees payable	—	—
Net cash (used in) provided by operating activities	5,091,593	13,887,362
Cash Flows from Financing Activities:
Payments for deferred financing costs	—	(1,010,788)
Issuance of common shares	—	—
Distributions to stockholders	(1,706,034)	(2,151,427)
Proceeds from borrowing on revolving financing facility	500,000	4,000,000
Repayments of borrowing on revolving financing facility	(3,000,000)	(16,500,000)
Net cash (used in) provided by financing activities	(4,206,034)	(15,662,215)
Net change in cash	885,559	(1,774,853)
Cash:
Cash and restricted cash at beginning of year	12,104,547	14,664,362
Cash and restricted cash at end of period	$12,990,106	$12,889,509
Supplemental and non-cash financing cash flow information:
Cash paid for interest	$1,102,733	$1,481,936
Cash paid for taxes	$6,059	$265,000
Issuance of shares pursuant to Dividend Reinvestment Plan	$22,715	$7,810
Non-cash purchase of investments	$(10,453,723)	$—
Non-cash sale of investments	$10,453,723	$—
	March 31, 2025	March 31, 2024
Cash	$2,333,328	$2,728,347
Cash, restricted	10,656,778	10,161,162
Cash and restricted cash	$12,990,106	$12,889,509

See notes to unaudited consolidated financial statements.

4

Investcorp Credit Management BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments

(Unaudited)

March 31, 2025

Investments*(1)(2)	Interest Rate	Initial Acquisition Date	Maturity Date	Principal Amount/ Shares	Amortized Cost	Fair Value	% of Net Assets
Non-Controlled/Non-Affiliated Investments
Senior Secured First Lien Debt Investments
Commercial Services & Supplies
Arborworks Acquisition LLC - Reinstated Take Back Term Loan	1M S + 6.50% PIK (1.00% Floor)		11/6/2028	2,183,272	$2,183,272	$2,134,148	2.73%	(4)(8)
Arborworks Acquisition LLC - Revolver	15.00% PIK		11/6/2028	549,854	549,854	549,854	0.70%	(4)(5)
Northstar Group Services, Inc. Term Loan	3M S + 4.75% (0.50% Floor)		5/31/2030	5,458,750	5,434,308	5,445,103	6.97%	(8)
Total Commercial Services & Supplies					8,167,434	8,129,105
Containers & Packaging
Bioplan USA, Inc. - Priority Term Loan	3M S + 10.00% (4.00% Floor)		3/8/2027	1,898,473	1,921,018	1,983,904	2.54%	(8)
Bioplan USA, Inc. - Take Back Term Loan	3M S + 7.75% (4.00% Floor)		3/8/2028	6,000,500	5,794,387	6,000,500	7.68%	(4)(8)
LABL, Inc. Term Loan B	1M S + 5.00% (0.50% Floor)		10/30/2028	4,926,240	4,890,470	4,039,517	5.17%	(3)(8)
Total Containers & Packaging					12,605,875	12,023,921
Consumer Staples Distribution & Retail
American Nuts Holdings, LLC Term Loan A	3M S + 8.50% PIK (1.00% Floor)		3/28/2028	1,884,410	1,884,410	1,884,410	2.41%	(4)(8)(12)
American Nuts Holdings, LLC Term Loan B	3M S + 8.50% PIK (1.00% Floor)		3/28/2028	1,884,410	1,884,410	1,818,456	2.33%	(4)(8)(12)
Total Consumer Staples Distribution & Retail					3,768,820	3,702,866
Construction & Engineering
Congruex Group LLC Term Loan B	3M S + 1.50% + 5.00% PIK (1.50% Floor)		5/3/2029	4,068,305	4,025,458	3,814,036	4.88%	(4)(8)
Total Construction & Engineering					4,025,458	3,814,036
Diversified Consumer Services
Axiom Global Inc. Term Loan	3M S + 4.75% (0.75% Floor)		10/2/2028	4,911,075	4,863,611	4,898,797	6.27%	(8)
KNS MidCo Corp. / Wellfull Inc. Term Loan A	1M S + 5.00% (1.00% Floor)		4/19/2030	1,474,678	1,474,678	1,470,991	1.88%	(8)
LaserAway Intermediate Holdings II, LLC Term Loan	3M S + 5.75% (0.75% Floor)		10/14/2027	7,139,364	7,087,687	6,978,729	8.94%	(8)
Total Diversified Consumer Services					13,425,976	13,348,517
Electronic Equipment, Instruments & Components
4L Technologies, Inc. Term Loan	3M S + 7.50% + 2.00% PIK		6/30/2025	1,169,417	1,169,417	1,274,664	1.63%	(4)
Total Electronic Equipment, Instruments & Components					1,169,417	1,274,664
Entertainment
Crafty Apes, LLC Term Loan - Second Out	1M S + 6.50% PIK (1.00% Floor)		6/1/2027	2,044,334	1,925,234	1,947,228	2.49%	(4)(5)(8)(11)
Total Entertainment					1,925,234	1,947,228
Food Products
INW Manufacturing, LLC Term Loan	3M S + 5.75% (0.75% Floor)		3/25/2027	4,125,000	4,074,823	4,011,563	5.14%	(8)
Max US Bidco Inc. Term Loan B	3M S + 5.00% (0.50% Floor)		10/2/2030	4,950,000	4,739,543	4,851,000	6.21%	(8)
Total Food Products					8,814,366	8,862,563

See notes to unaudited consolidated financial statements.

5

Investcorp Credit Management BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments - (continued)

(Unaudited)

March 31, 2025

Investments*(1)(2)	Interest Rate	Initial Acquisition Date	Maturity Date	Principal Amount/ Shares	Amortized Cost	Fair Value	% of Net Assets
Senior Secured First Lien Debt Investments, continued
Hotels, Restaurants & Leisure
AMCP Clean Acquisition Company, LLC Term Loan	3M S + 4.75% (0.50% Floor)		6/15/2028	2,970,000	$2,935,359	$2,962,575	3.79%	(8)
Total Hotels, Restaurants & Leisure					2,935,359	2,962,575
Household Durables
Easy Way Leisure Corporation Term Loan	3M S + 7.50% (1.00% Floor)		1/15/2026	7,644,398	7,621,180	7,587,065	9.71%	(8)
Total Household Durables					7,621,180	7,587,065
Insurance
Asurion, LLC Term Loan	1M S + 4.00%		8/21/2028	7,423,858	7,360,301	7,349,619	9.42%	(3)(8)
Integrity Marketing Acquisition, LLC Term Loan	3M S + 5.00% (0.75% Floor)		8/25/2028	3,841,747	3,824,381	3,841,747	4.92%	(8)
Likewize Corporation Term Loan	3M S + 5.75% (0.50% Floor)		8/15/2029	3,620,833	3,521,615	3,557,469	4.55%	(8)
Total Insurance					14,706,297	14,748,835
Interactive Media & Services
Uniguest Holdings Term Loan	1M S + 5.00% (1.00% Floor)		11/27/2030	5,541,667	5,449,468	5,444,688	6.98%	(5)(8)
Total Interactive Media & Services					5,449,468	5,444,688
IT Services
Argano, LLC Term Loan	1M S + 5.75% (1.00% Floor)		8/23/2029	3,965,580	3,882,742	3,935,838	5.04%	(5)(8)
Accelevation, LLC Term Loan	1M S + 5.00% (0.75% Floor)		1/2/2031	3,384,615	3,326,234	3,333,846	4.27%	(5)(8)
Accelevation, LLC - Revolver	1M S + 5.00% (0.75% Floor)		1/2/2031	104,923	92,656	104,923	0.13%	(5)
Total IT Services					7,301,632	7,374,607
Professional Services
CareerBuilder, LLC Term Loan B3	1M S + 2.50% + 4.25% PIK (1.00% Floor)		7/31/2026	6,120,200	4,843,471	3,185,636	4.08%	(4)(7)(8)
Crisis Prevention Institute, Inc. Term Loan	3M S + 4.00% (0.50% Floor)		4/9/2031	2,992,500	2,979,025	2,977,538	3.81%	(8)
Klein Hersh, LLC Term Loan - Last Out	3M S + 3.75% (0.50% Floor)		4/27/2028	11,625,361	7,680,355	9,765,303	12.50%	(8)(9)
Work Genius Holdings, Inc. Term Loan	3M S + 7.00% (1.00% Floor)		6/7/2027	9,726,923	9,677,137	9,726,923	12.46%	(8)
Work Genius Holdings, Inc. Term Loan - Add On	3M S + 7.00% (1.00% Floor)		6/7/2027	1,084,244	1,084,244	1,084,244	1.39%	(8)
Work Genius Holdings, Inc - Revolver	3M S + 7.00% (1.00% Floor)		6/7/2027	750,000	750,000	748,125	0.96%
Total Professional Services					27,014,232	27,487,769
Specialty Retail
ALCV Purchaser, Inc. Term Loan	1M S + 6.75% (1.00% Floor)		4/15/2026	4,850,000	4,831,481	4,692,375	6.01%	(8)
American Auto Auction Group, LLC Term Loan	3M S + 4.50% (0.75% Floor)		12/30/2027	5,649,382	5,409,235	5,635,258	7.22%	(8)
Total Specialty Retail					10,240,716	10,327,633
Software
AppLogic Networks Parent LLC - Sandvine Exit TL	6M S + 1.00% + 5.00% PIK (0.00% Floor)		3/4/2030	5,012,149	1,735,713	1,735,713	2.22%	(4)(5)(8)
Total Software					1,735,713	1,735,713
Trading Companies & Distributors
Fleetpride Inc. Term Loan B	1M S + 4.50% (0.50% Floor)		9/29/2028	2,955,000	2,931,059	2,733,375	3.50%	(3)(8)
PVI Holdings, Inc. Term Loan - Last Out	3M S + 4.94% (1.00% Floor)		1/18/2028	3,900,000	3,877,532	3,861,000	4.95%	(8)(10)
Xenon Arc, Inc. - Term Loan	3M S + 5.25% (0.75% Floor)		12/20/2028	8,737,500	8,737,500	8,737,500	11.19%	(8)
Total Trading Companies & Distributors					15,546,091	15,331,875
Total Senior Secured First Lien Debt Investments					146,453,268	146,103,660	187.07%

See notes to unaudited consolidated financial statements.

6

Investcorp Credit Management BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments - (continued)

(Unaudited)

March 31, 2025

Investments*(1)(2)	Interest Rate	Initial Acquisition Date	Maturity Date	Principal Amount/ Shares	Amortized Cost	Fair Value	% of Net Assets
Unsecured Debt Investments
Professional Services
Klein Hersh, LLC Senior Subordinated Note			4/27/2032	2,184,078	$—	$—	—%	(7)(8)
Total Professional Services					—	—	—%
Total Unsecured Debt Investments					—	—	—%
Equity, Warrants and Other Investments(13)
Commercial Services & Supplies
ArborWorks, LLC A-1 - Common Units		11/24/2021		1,035	—	—	—%	(6)
ArborWorks, LLC A-1 - Preferred Units		11/24/2021		8,633	4,362,023	4,661,550	5.97%	(6)
ArborWorks, LLC B-1 - Preferred Units		11/24/2021		8,633	—	—	—%	(6)
Investcorp Transformer Aggregator LP - Equity Interest		12/15/2021		520,710	528,249	2,593,137	3.32%	(6)(14)
Total Commercial Services & Supplies					4,890,272	7,254,687
Consumer Staples Distribution & Retail
American Nuts Holdings, LLC Class A Units		3/28/2025		6,784	2,204,980	1,183,787	1.52%	(4)(8)
Total Consumer Staples Distribution & Retail					2,204,980	1,183,787
Containers & Packaging
Bioplan USA, Inc. - Common Stock		3/8/2023		292,150	1,708,942	5,588,829	7.15%	(6)
Total Containers & Packaging					1,708,942	5,588,829
Electronic Equipment, Instruments & Components
4L Technologies, Inc. - Common Stock		2/4/2020		149,918	2,171,581	22,488	0.03%	(6)
4L Technologies, Inc. - Preferred Stock		5/28/2020		2,289	209,004	503,602	0.64%	(6)
Total Electronic Equipment, Instruments & Components					2,380,585	526,090
Entertainment
Crafty Apes LLC - Common Stock		11/20/2024		810	4,968,408	5,846,556	7.49%	(6)(8)
Total Entertainment					4,968,408	5,846,556
Health Care Providers & Services
Discovery Behavioral Health, LLC - Preferred Equity	+ 13.50% PIK	10/10/2023		4,000	4,000,000	6,000,000	7.68%	(4)(6)
Total Health Care Providers & Services					4,000,000	6,000,000
IT Services
Fusion Connect, Inc. - Backstop Warrants		1/12/2022		8,904,634	—	156,364	0.20%	(6)
Fusion Connect, Inc. - Common Stock		1/18/2022		230,191	1,184,606	407,438	0.52%	(6)
Fusion Connect, Inc - Equity Investor Warrants		1/18/2022		1,345,747	—	—	—%	(6)
Fusion Connect, Inc. - Investor Warrants		1/12/2022		8,904,634	—	156,364	0.20%	(6)
Fusion Connect, Inc. - Series A Preferred	+ 12.50% PIK	1/12/2022		500	7,414,132	7,016,197	8.98%	(4)
FWS Parent Holding, LLC - Equity Interest		10/3/2022		4,405	100,000	78,811	0.10%	(6)
Total IT Services					8,698,738	7,815,174
Professional Services
CareerBuilder, LLC - Warrant		1/2/2025		4,586	—	—	—%	(6)
CF Arch Holdings LLC - Equity Interest		8/11/2022		200,000	200,000	498,000	0.64%	(6)
Victors CCC Aggregator LP - Equity Interest		5/27/2022		500,000	500,000	755,000	0.97%	(6)(14)
Work Genius, LLC - Equity Interest		6/6/2022		500	500,000	365,390	0.47%	(6)
Work Genius, LLC - A-1 Equity Units		3/31/2025		922	674,011	674,011	0.86%	(6)
Total Professional Services					1,874,011	2,292,401
Software
Advanced Solutions International - Preferred Stock		9/1/2020		888,170	1,000,000	2,744,445	3.51%	(6)
AppLogic Networks Parent LLC - Equity Interest		3/3/2025		130,074	2,744,209	3,081,453	3.95%	(6)
Total Software					3,744,209	5,825,898

See notes to unaudited consolidated financial statements.

7

Investcorp Credit Management BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments - (continued)

(Unaudited)

March 31, 2025

Investments*(1)(2)	Interest Rate	Initial Acquisition Date	Maturity Date	Principal Amount/ Shares	Amortized Cost	Fair Value	% of Net Assets
Equity, Warrants and Other Investments(13), continued
Trading Companies & Distributors
Pegasus Aggregator Holdings LP - Equity Interest		2/28/2022		9	$808,717	$1,122,897	1.44%	(6)(14)
Total Trading Companies & Distributors					808,717	1,122,897
Total Equity, Warrants and Other Investments					35,278,862	43,456,319	55.64%
Total Non-Controlled/Non-Affiliated Investments					$181,732,130	$189,559,979	242.71%
Non-Controlled/Affiliated Investments (18)
Senior Secured First Lien Debt Investments
Automobile Components
Techniplas Foreign Holdco LP Exit Term Loan	+ 10.00% PIK		6/18/2027	876,340	876,340	907,012	1.16%	(4)
Techniplas Foreign Holdco Term Loan	3M S + 17.00% PIK		12/19/2026	1,159,774	1,115,341	1,258,355	1.61%	(4)
Total Automobile Components					1,991,681	2,165,367
Total Senior Secured First Lien Debt Investments					1,991,681	2,165,367	2.77%
Equity, Warrants and Other Investments(13)
Automobile Components
Techniplas Foreign Holdco LP - Equity Interest		6/19/2020		879,559	14,336,791	92,354	0.12%	(6)
Techniplas Foreign Holdco - Class C Preferred Units		12/5/2024		2,636,890	46,169	630,170	0.81%	(6)
Total Automobile Components					14,382,960	722,524
Total Equity, Warrants and Other Investments					14,382,960	722,524	0.93%
Total Non-Controlled/Affiliated Investments					$16,374,641	$2,887,891	3.70%
Total Investments					$198,106,771	$192,447,870	246.41%

* All investments of the Company are in entities which are organized under the laws of the United States and have a principal place of business in the United States, unless otherwise noted.

(1)Certain portfolio company investments are subject to contractual restrictions on sales. Refer to footnote 13 of the Consolidated Schedule of Investments as of March 31, 2025 for additional information on our restricted securities.

(2)Unless indicated otherwise, all investments were valued at fair value using Level 3 significant unobservable inputs as determined in good faith by the Company’s board of directors (see Note 4).

(3)This investment represents a Level 2 investment (see Note 4).

(4)Principal amount includes capitalized PIK interest unless otherwise noted.

(5)Refer to Note 6 for more detail on the unfunded commitments.

(6)Securities are non-income producing.

(7)Classified as non-accrual asset.

(8)A portion or all is held by the Company indirectly through Investcorp Credit Management BDC SPV, LLC and pledged as collateral for the revolving credit facility held through Capital One, N.A. (“Capital One”).

(9)The Company has entered into an Agreement Among Lenders that entitles the Company to the “last out” tranche of the first lien secured loans, whereby the “first out” tranche will receive priority relative to the “last out” tranche with respect to payments of principal, interest, and any other amounts due thereunder in certain circumstances. The obligor under the first lien secured loans has a contractual obligation to pay a fixed annual amount of interest ratably each month. This payment is first applied to the first out tranche on the basis of SOFR plus 3.75% and the remaining amount (if any) is applied to the last out tranche. Therefore, the Company will receive variable interest income depending on the principal amount of the first out tranche and changes in the SOFR rate. The effective rate cannot be estimated in advance of the start of the SOFR accrual period for the first out tranche.

(10)The Company has entered into an Agreement Among Lenders that entitles the Company to the “last out” tranche of the first lien secured loans, whereby the “first out” tranche will receive priority ahead of the “last out” tranche with respect to payments of principal, interest, and any other amounts due thereunder in certain circumstances. Therefore, the Company receives a higher interest rate than the contractually stated interest rate of SOFR plus 4.50% subject to a grid (Floor 1.00%) per the credit agreement and the Consolidated Schedule of Investments above reflects such higher rate.

(11)The Company has entered into an Agreement Among Lenders that entitles the Company to the “second out” tranche of the first lien secured loans, whereby the “first out” tranche will receive priority as to the “second out” and “third out” tranches with respect to payments of principal, interest, and any other amounts due thereunder.

(12)The Company has entered into an Agreement Among Lenders that entitles the Company's investment in the Term Loan A to receive priority over its investment in the Term Loan B, whereby the Term Loan A is considered a “first out” tranche that will receive priority ahead of the Term Loan B as a “last out” tranche with respect to payments of principal, interest, and any other amounts due thereunder in certain circumstances.

See notes to unaudited consolidated financial statements.

8

Investcorp Credit Management BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments - (continued)

(Unaudited)

March 31, 2025

(13)These securities were acquired in transactions exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”) and may be deemed to be “restricted securities” under the Securities Act. As of March 31, 2025, the Company’s portfolio company investments that were subject to restrictions on sales totaled $44,178,843 at fair value and represented 56.57% of the Company’s net assets.

(14)Represents co-investment made with the Company’s affiliates in accordance with the terms of the exemptive relief that the Company received from the U.S. Securities and Exchange Commission.

(15)As defined in the 1940 Act, the Company is deemed to be an “Affiliated Person” of this portfolio company because it owns 5% or more, up to 25% (inclusive), of the portfolio company’s outstanding voting securities (“non-controlled affiliate”). As defined in the 1940 Act, the Company is deemed to be both an “affiliated person” and “control” a portfolio company if it owns more than 25% of the portfolio company’s outstanding voting securities or has the power to exercise control over the management or policies of such portfolio company (including through a management agreement). As of March 31, 2025, the Company had no “Control Investments.”

Transactions related to investments in non-controlled “Affiliated Investments” for the three months ended March 31, 2025 were as follows:

Portfolio Company	Type of Investment(a)	December 31, 2024 Value	Gross Additions (b)	Gross Reductions (c)	Net Realized Gains (Losses)	Net Unrealized Gains (Losses)	March 31, 2025 Value	Amount of Interest or Dividends Credited to Income(d)
Techniplas Foreign Holdco LP	Senior Secured First Lien Debt Investment (10.00% PIK)	$889,164	$21,374	$—	$—	$(3,526)	$907,012	$21,380
	Senior Secured First Lien Debt Investment (17.00% PIK)	1,304,746	1,389	—	—	(47,780)	1,258,355	14,978
	Class C Preferred Units(e)	705,973	—	—	—	(75,803)	630,170	—
	Common Stock(e)	115,046	—	—	—	(22,692)	92,354	—
		$3,014,929	$22,763	$—	$—	$(149,801)	$2,887,891	$36,358

(a)The fair value of all investments was determined using significant unobservable inputs.

(b)Gross additions include increases in the cost basis of investments resulting from new investments, PIK and follow-on investments.

(c)Gross reductions include decreases in the total cost basis of investment repayments from principal repayments or sales.

(d)Represents the total amount of interest, fees or dividends credited to income for the portion of the period an investment was included in the Affiliate category.

(e)Investment is non-income producing.

P — Prime Rate (7.50% as of March 31, 2025)

PIK — Payment-In-Kind

1M S — 1-month SOFR (4.32% as of March 31, 2025)

3M S — 3-month SOFR (4.29% as of March 31, 2025)

6M S — 6-month SOFR (4.19% as of March 31, 2025)

See notes to unaudited consolidated financial statements.

9

Investcorp Credit Management BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments

December 31, 2024

Investments*(1)(2)	Interest Rate	Initial Acquisition Date	Maturity Date	Principal Amount/ Shares	Amortized Cost	Fair Value	% of Net Assets
Non-Controlled/Non-Affiliated Investments
Senior Secured First Lien Debt Investments
Commercial Services & Supplies
Arborworks Acquisition LLC - Reinstated Take Back Term Loan	1M S + 6.50% PIK (1.00% Floor)		11/6/2028	2,123,863	$2,123,863	$2,081,386	2.68%	(4)(11)
Arborworks Acquisition LLC - Revolver	15.00% PIK		11/6/2028	529,740	529,740	529,740	0.68%	(4)(5)
Northstar Group Services, Inc. Term Loan	3M S + 4.75% (0.50% Floor)		5/31/2030	5,472,500	5,447,097	5,472,500	7.05%	(11)
Total Commercial Services & Supplies					8,100,700	8,083,626
Consumer Staples Distribution & Retail
American Nuts Holdings, LLC Term Loan A	3M S + 9.75% PIK (1.00% Floor)		4/10/2026	4,849,251	4,849,251	4,849,251	6.25%	(4)(11)(15)
American Nuts Holdings, LLC Term Loan B	3M S + 11.75% PIK (1.00% Floor)		4/10/2026	5,012,146	1,427,117	944,940	1.22%	(4)(10)(11)(15)
Total Consumer Staples Distribution & Retail					6,276,368	5,794,191
Construction & Engineering
Congruex Group LLC Term Loan B	3M S + 1.50% + 5.00% PIK (1.50% Floor)		5/3/2029	4,019,794	3,974,677	3,698,210	4.77%	(4)(11)
Total Construction & Engineering					3,974,677	3,698,210
Containers & Packaging
Bioplan USA, Inc. - Priority Term Loan	3M S + 10.00% (4.00% Floor)		3/8/2027	3,000,075	3,039,635	3,135,078	4.04%	(11)
Bioplan USA, Inc. - Take Back Term Loan	3M S + 4.75% + 3.50% PIK (4.00% Floor)		3/8/2028	5,948,942	5,728,360	5,829,963	7.51%	(4)(11)
LABL, Inc. Term Loan B	1M S + 5.00% (0.50% Floor)		10/30/2028	4,938,969	4,901,092	4,784,627	6.17%	(3)(11)
Total Containers & Packaging					13,669,087	13,749,668
Diversified Consumer Services
Axiom Global Inc. Term Loan	3M S + 4.75% (0.75% Floor)		10/2/2028	4,923,446	4,873,088	4,923,446	6.34%	(11)
KNS MidCo Corp. / Wellfull Inc. Term Loan A	1M S + 5.00% (1.00% Floor)		4/19/2030	1,474,677	1,474,677	1,474,677	1.90%	(11)
LaserAway Intermediate Holdings II, LLC Term Loan	3M S + 5.75% (0.75% Floor)		10/14/2027	7,157,812	7,101,703	7,157,812	9.22%	(11)
Total Diversified Consumer Services					13,449,468	13,555,935
Electronic Equipment, Instruments & Components
4L Technologies, Inc. Term Loan	3M S + 7.50% + 2.00% PIK		6/30/2025	1,163,599	1,163,599	1,253,778	1.62%	(4)
Total Electronic Equipment, Instruments & Components					1,163,599	1,253,778
Entertainment
Crafty Apes, LLC Term Loan - Second Out	1M S + 6.50% PIK (1.00% Floor)		6/1/2027	1,989,111	1,858,313	1,851,862	2.39%	(4)(5)(11)(14)
Total Entertainment					1,858,313	1,851,862

See notes to unaudited consolidated financial statements.

10

Investcorp Credit Management BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments - (continued)

December 31, 2024

Investments*(1)(2)	Interest Rate	Initial Acquisition Date	Maturity Date	Principal Amount/ Shares	Amortized Cost	Fair Value	% of Net Assets
Senior Secured First Lien Debt Investments, continued
Food Products
INW Manufacturing, LLC Term Loan	3M S + 5.75% (0.75% Floor)		3/25/2027	4,187,500	$4,130,991	$4,072,344	5.25%	(11)
Max US Bidco Inc. Term Loan B	1M S + 5.00% (0.50% Floor)		10/2/2030	4,962,500	4,744,622	4,875,656	6.28%	(11)
Total Food Products					8,875,613	8,948,000
Hotels, Restaurants & Leisure
AMCP Clean Acquisition Company, LLC Term Loan	3M S + 4.75% (0.50% Floor)		6/15/2028	2,977,500	2,940,523	2,977,500	3.84%	(11)
Total Hotels, Restaurants & Leisure					2,940,523	2,977,500
Household Durables
Easy Way Leisure Corporation Term Loan	3M S + 7.50% + 2.00% PIK (1.00% Floor)		1/15/2026	7,664,219	7,634,180	7,664,219	9.87%	(4)(11)
Total Household Durables					7,634,180	7,664,219
Insurance
Asurion, LLC Term Loan	1M S + 4.00%		8/21/2028	7,442,893	7,375,251	7,442,893	9.59%	(3)(11)
Integrity Marketing Acquisition, LLC Term Loan	3M S + 5.00% (0.75% Floor)		8/25/2028	3,851,399	3,832,941	3,851,399	4.96%	(11)
Likewize Corporation Term Loan	3M S + 5.75% (0.50% Floor)		8/15/2029	3,643,750	3,539,939	3,589,094	4.62%	(11)
Total Insurance					14,748,131	14,883,386
Interactive Media & Services
Uniguest Holdings Term Loan	3M S + 5.00% (1.00% Floor)		11/27/2030	5,555,556	5,460,071	5,472,222	7.05%	(5)(11)
Total Interactive Media & Services					5,460,071	5,472,222
IT Services
Argano, LLC Term Loan	1M S + 5.75% (1.00% Floor)		8/23/2029	3,975,543	3,888,812	3,955,666	5.10%	(5)(11)
Flatworld Intermediate Corporation Term Loan	3M S + 6.75% (1.00% Floor)		10/1/2027	2,221,622	2,193,533	2,221,622	2.86%	(5)(11)
Total IT Services					6,082,345	6,177,288
Professional Services
CareerBuilder, LLC Term Loan B3	1M S + 2.50% + 4.25% PIK (1.00% Floor)		7/31/2026	6,055,631	4,947,137	2,941,738	3.79%	(4)(10)(11)
Crisis Prevention Institute, Inc. Term Loan	3M S + 4.50% (0.50% Floor)		4/9/2031	3,000,000	2,986,074	3,000,000	3.87%	(11)
Klein Hersh, LLC Term Loan - Last Out	3M S + -1.13% (0.50% Floor)		4/27/2028	11,645,948	7,616,667	9,258,529	11.93%	(11)(12)
Work Genius Holdings, Inc. Term Loan	3M S + 7.00% (1.00% Floor)		6/7/2027	9,751,923	9,697,154	9,849,442	12.69%	(11)
Work Genius Holdings, Inc - Revolver	3M S + 7.00% (1.00% Floor)		6/7/2027	750,000	750,000	757,500	0.98%
Total Professional Services					25,997,032	25,807,209
Software
American Teleconferencing Services, Ltd. (d/b/a Premiere Global Services, Inc.) - Revolver	P + 5.50%		4/7/2023	1,736,618	1,736,618	260,201	0.34%	(7)(10)
Sandvine Corporation Term Loan	0.02		6/28/2027	4,288,503	2,791,891	2,819,691	3.63%	(5)(6)(8)(10)(11)
Sandvine Corporation Tranche B Super Senior Term Loan	6M S + 9.00% (0.00% Floor)		11/7/2025	1,261,776	880,706	1,261,776	1.63%	(5)(6)(8)(11)
Total Software					5,409,215	4,341,668
Specialty Retail
ALCV Purchaser, Inc. Term Loan	3M S + 6.75% (1.00% Floor)		4/15/2026	4,900,000	4,877,188	4,716,250	6.08%	(11)
American Auto Auction Group, LLC Term Loan	3M S + 4.50% (0.75% Floor)		12/30/2027	5,663,576	5,404,695	5,663,576	7.30%	(11)
Victra Holdings, LLC Term Loan B	3M S + 5.25% (0.75% Floor)		3/30/2029	3,217,105	3,215,978	3,265,361	4.21%	(3)(11)
Total Specialty Retail					13,497,861	13,645,187

See notes to unaudited consolidated financial statements.

11

Investcorp Credit Management BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments - (continued)

December 31, 2024

Investments*(1)(2)	Interest Rate	Initial Acquisition Date	Maturity Date	Principal Amount/ Shares	Amortized Cost	Fair Value	% of Net Assets
Senior Secured First Lien Debt Investments, continued
Trading Companies & Distributors
Fleetpride Inc. Term Loan B	1M S + 4.50% (0.50% Floor)		9/29/2028	2,962,500	$2,937,086	$2,762,531	3.56%	(3)(11)
PVI Holdings, Inc. Term Loan - Last Out	3M S + 4.94% (1.00% Floor)		1/18/2028	3,910,000	3,885,783	3,910,000	5.04%	(11)(13)
Xenon Arc, Inc. - Term Loan	3M S + 5.25% (0.75% Floor)		12/20/2028	8,760,000	8,760,000	8,760,000	11.28%	(11)
Total Trading Companies & Distributors					15,582,869	15,432,531
Total Senior Secured First Lien Debt Investments					154,720,052	153,336,480	197.59%
Unsecured Debt Investments
Professional Services
Klein Hersh, LLC Senior Subordinated Note			4/27/2032	2,184,078	—	—	—%	(10)(11)
Total Professional Services					—	—	—%
Total Unsecured Debt Investments					—	—	—%
Equity, Warrants and Other Investments(16)
Commercial Services & Supplies
ArborWorks, LLC A-1 - Common Units		11/24/2021		1,035	—	—	—	(9)
ArborWorks, LLC A-1 - Preferred Units		11/24/2021		8,633	4,362,023	2,591,131	3.34%	(9)
ArborWorks, LLC B-1 - Preferred Units		11/24/2021		8,633	—	—	—	(9)
Investcorp Transformer Aggregator LP - Equity Interest		11/24/2021		520,710	528,249	2,103,669	2.71%	(9)(17)
Total Commercial Services & Supplies					4,890,272	4,694,800
Containers & Packaging
Bioplan USA, Inc. - Common Stock		3/8/2023		292,150	1,708,942	6,409,771	8.26%	(9)
Total Containers & Packaging					1,708,942	6,409,771
Electronic Equipment, Instruments & Components
4L Technologies, Inc. - Common Stock		2/4/2020		149,918	2,171,581	22,488	0.03%	(9)
4L Technologies, Inc. - Preferred Stock		5/28/2020		2,289	209,004	492,157	0.63%	(9)
Total Electronic Equipment, Instruments & Components					2,380,585	514,645
Entertainment
Crafty Apes LLC - Common Stock		11/20/2024		810	4,968,408	4,504,410	5.80%	(5)(9)(11)
Total Entertainment					4,968,408	4,504,410
Health Care Providers & Services
Discovery Behavioral Health, LLC - Preferred Equity	+ 13.50% PIK	10/10/2023		4,000	4,000,000	6,000,000	7.73%	(4)(9)
Total Health Care Providers & Services					4,000,000	6,000,000
IT Services
Fusion Connect, Inc. - Backstop Warrants		1/12/2022		8,904,634	—	160,283	0.21%	(9)
Fusion Connect, Inc. - Common Stock		1/18/2022		230,191	1,184,606	416,646	0.54%	(9)
Fusion Connect, Inc - Equity Investor Warrants		1/18/2022		1,345,747	—	—	—	(9)
Fusion Connect, Inc. - Investor Warrants		1/12/2022		8,904,634	—	160,283	0.21%	(9)
Fusion Connect, Inc. - Series A Preferred	+ 12.50% PIK	1/12/2022		500	7,192,447	6,666,775	8.59%	(4)
FWS Parent Holding, LLC - Equity Interest		10/3/2022		4,405	100,000	96,211	0.12%	(9)
Total IT Services					8,477,053	7,500,198
Professional Services
CF Arch Holdings LLC - Equity Interest		8/11/2022		200,000	200,000	436,000	0.56%	(9)
Victors CCC Aggregator LP - Equity Interest		5/27/2022		500,000	500,000	735,000	0.95%	(9)(17)
Work Genius Holdings, Inc. - Equity Interest		6/6/2022		500	500,000	564,040	0.73%	(9)
Total Professional Services					1,200,000	1,735,040

See notes to unaudited consolidated financial statements.

12

Investcorp Credit Management BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments - (continued)

December 31, 2024

Investments*(1)(2)	Interest Rate	Initial Acquisition Date	Maturity Date	Principal Amount/ Shares(3)	Amortized Cost	Fair Value	% of Net Assets
Equity, Warrants and Other Investments, continued
Software
Advanced Solutions International - Preferred Stock		9/1/2020		888,170	$1,000,000	$2,788,854	3.59%	(9)
Sandvine Corporation - Equity Interest		6/28/2024		107,202	—	—	—	(6)(8)(9)(11)
Total Software					1,000,000	2,788,854
Trading Companies & Distributors
Pegasus Aggregator Holdings LP - Equity Interest		2/28/2022		9	808,717	1,117,831	1.44%	(9)(17)
Total Trading Companies & Distributors					808,717	1,117,831
Total Equity, Warrants and Other Investments					29,433,977	35,265,549	45.44%
Total Non-Controlled/Non-Affiliated Investments					$184,154,029	$188,602,029	243.02%
Non-Controlled/Affiliated Investments(18)
Senior Secured First Lien Debt Investments
Automobile Components
Techniplas Foreign Holdco LP Term Loan	+ 10.00% PIK		6/18/2027	$854,966	854,966	889,164	1.15%	(4)
Techniplas Foreign Holdco Term Loan	+ 17.00% PIK		12/19/2026	$1,159,774	1,113,952	1,304,746	1.68%	(4)
Total Automobile Components					1,968,918	2,193,910
Total Senior Secured First Lien Debt Investments					1,968,918	2,193,910	2.83%
Equity, Warrants and Other Investments(16)
Automobile Components
Techniplas Foreign Holdco LP - Equity Interest		6/19/2020		879,559	14,336,791	115,046	0.15%	(9)
Techniplas Foreign Holdco - Class C Preferred Units		12/5/2024		2,530,804	46,169	705,973	0.91%	(9)
Total Automobile Components					14,382,960	821,019
Total Equity, Warrants and Other Investments					14,382,960	821,019	1.06%
Total Affiliated Investments					$16,351,878	$3,014,929	3.89%
Total Investments					$200,505,907	$191,616,958	246.92%

* All investments of the Company are in entities which are organized under the laws of the United States and have a principal place of business in the United States, unless otherwise noted.

(1)Certain portfolio company investments are subject to contractual restrictions on sales. Refer to footnote 16 of the Consolidated Schedule of Investments as of December 31, 2024 for additional information on our restricted securities.

(2)Unless indicated otherwise, all investments were valued at fair value using Level 3 significant unobservable inputs as determined in good faith by the Company’s board of directors (see Note 4).

(3)This investment represents a Level 2 investment (see Note 4).

(4)Principal amount includes capitalized PIK interest unless otherwise noted.

(5)Refer to Note 6 for more detail on the unfunded commitments.

(6)The investment is not a qualifying asset under Section 55(a) of the Investment Company Act of 1940, as amended (the “1940 Act”). The Company may not acquire any non-qualifying asset unless, at the time of acquisition, qualifying assets represent at least 70% of the Company’s total assets. As of December 31, 2024, non-qualifying assets represented 1.93% of the Company’s total assets, at fair value.

(7)Security in default.

(8)A portfolio company domiciled in Canada. The jurisdiction of the security issuer may be a different country than the domicile of the portfolio company.

(9)Securities are non-income producing.

(10)Classified as non-accrual asset.

(11)A portion or all is held by the Company indirectly through Investcorp Credit Management BDC SPV, LLC and pledged as collateral for the revolving credit facility held through Capital One, N.A. (“Capital One”).

(12)The Company has entered into an Agreement Among Lenders that entitles the Company to the “last out” tranche of the first lien secured loans, whereby the “first out” tranche will receive priority relative to the “last out” tranche with respect to payments of principal, interest, and any other amounts due thereunder in certain circumstances. The obligor under the first lien secured loans has a contractual obligation to pay a fixed annual amount of interest ratably each month. This payment is first applied to the first out tranche on the basis of SOFR plus 3.75% and the remaining amount (if any) is applied to the last out tranche. Therefore, the Company will receive variable interest income depending on the principal amount of the first out tranche and changes in the SOFR rate. The effective rate cannot be estimated in advance of the start of the SOFR accrual period for the first out tranche.

(13)The Company has entered into an Agreement Among Lenders that entitles the Company to the “last out” tranche of the first lien secured loans, whereby the “first out” tranche will receive priority ahead of the “last out” tranche with respect to payments of principal, interest, and any other amounts due thereunder in certain circumstances. Therefore, the Company receives a higher interest rate than the contractually stated interest rate of SOFR plus 4.50% subject to a grid (Floor 1.00%) per the credit agreement and the Consolidated Schedule of Investments above reflects such higher rate.

See notes to unaudited consolidated financial statements.

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Investcorp Credit Management BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments - (continued)

December 31, 2024

(14)The Company has entered into an Agreement Among Lenders that entitles the Company to the “second out” tranche of the first lien secured loans, whereby the “first out” tranche will receive priority as to the “second out” and “third out” tranches with respect to payments of principal, interest, and any other amounts due thereunder.

(15)The Company has entered into an Agreement Among Lenders that entitles the Company's investment in the Term Loan A to receive priority over its investment in the Term Loan B, whereby the Term Loan A is considered a “first out” tranche that will receive priority ahead of the Term Loan B as a “last out” tranche with respect to payments of principal, interest, and any other amounts due thereunder in certain circumstances.

(16)Securities acquired in transactions exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”) and may be deemed to be “restricted securities” under the Securities Act. As of December 31, 2024, the Company’s portfolio company investments that were subject to restrictions on sales totaled $36,086,568 at fair value and represented 46.50% of the Company’s net assets.

(17)Represents co-investment made with the Company’s affiliates in accordance with the terms of the exemptive relief that the Company received from the U.S. Securities and Exchange Commission.

(18)As defined in the 1940 Act, the Company is deemed to be an “Affiliated Person” of this portfolio company because it owns 5% or more, up to 25% (inclusive), of the portfolio company’s outstanding voting securities (“non-controlled affiliate”). As defined in the 1940 Act, the Company is deemed to be both an “affiliated person” and “control” a portfolio company if it owns more than 25% of the portfolio company’s outstanding voting securities or has the power to exercise control over the management or policies of such portfolio company (including through a management agreement). As of December 31, 2024, the Company had no “Control Investments.”

Transactions related to investment in non-controlled “Affiliated Investments” for the six months ended December 31, 2024 were as follows:

Portfolio Company	Type of Investment(a)	June 30, 2024 Value	Gross Additions (b)	Gross Reductions (c)	Net Realized Gains (Losses)	Net Unrealized Gains (Losses)	December 31, 2024 Value	Amount of Interest or Dividends Credited to Income(d)
Techniplas Foreign Holdco LP	Senior Secured First Lien Debt Investment (10.00% PIK)	$509,811	$42,519	$—	$—	$336,834	$889,164	$42,079
	Senior Secured First Lien Debt Investment (17.00% PIK)	—	1,113,952	—	—	190,794	1,304,746	3,660
	Class C Preferred Units	—	46,169	—	—	659,804	705,973	—
	Common Stock(e)	2,111,343	—	—	—	(1,996,297)	115,046	—
		$2,621,154	$1,202,640	$—	$—	$(808,865)	$3,014,929	$45,739

(a)The fair value of all investments were determined using significant unobservable inputs.

(b)Gross additions include increases in the cost basis of investments resulting from new investments and follow-on investments.

(c)Gross reductions include decreases in the total cost basis of investments resulting from principal repayments or sales.

(d)Represents the total amount of interest, fees or dividends credited to income for the portion of the period an investment was included in the Affiliate category.

(e)Investment is non-income producing.

P — Prime Rate (7.50% as of December 31, 2024)

PIK — Payment-In-Kind

1M S — 1-month SOFR (4.33% as of December 31, 2024)

3M S — 3-month SOFR (4.31% as of December 31, 2024)

6M S — 6-month SOFR (4.25 % as of December 31, 2024)

See notes to unaudited consolidated financial statements.

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Investcorp Credit Management BDC, Inc. and subsidiaries

Notes to Consolidated Financial Statements (unaudited)

March 31, 2025

Note 1. Organization

Investcorp Credit Management BDC, Inc. (“ICMB” or the “Company”), a Maryland corporation formed in May 2013, is a closed-end, externally managed, non-diversified management investment company that has elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”), and has elected to be treated as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code (the “Code”) for U.S. federal income tax purposes. The Company is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification Topic 946 Financial Services – Investment Companies ("ASC 946").

On February 11, 2014, the Company completed its initial public offering (the “Offering”), selling 7,666,666 shares of its common stock, par value $0.001, including the underwriters’ over-allotment, at a price of $15.00 per share with net proceeds of approximately $111.5 million.

CM Finance LLC, a Maryland limited liability company, commenced operations in March 2012. Immediately prior to the Offering, CM Finance LLC was merged with and into the Company (the “Merger”). In connection with the Merger, the Company issued 6,000,000 shares of common stock and $39.8 million in debt to the pre-existing CM Finance LLC investors, consisting of funds managed by Cyrus Capital Partners, L.P. (the “Original Investors” or the “Cyrus Funds”). The Company had no assets or operations prior to completion of the Merger and, as a result, the books and records of CM Finance LLC became the books and records of the Company, as the surviving entity. Immediately after the Merger, the Company issued 2,181,818 shares of its common stock to Stifel Venture Corp. (“Stifel”) in exchange for $32.7 million in cash. The Company used all of the proceeds of the sale of shares to Stifel to repurchase 2,181,818 shares of common stock from the Original Investors. Immediately after the completion of the Offering, the Company had 13,666,666 shares outstanding. The Company used a portion of the net proceeds of the Offering to repay 100% of the debt issued to the Original Investors in connection with the Merger.

CM Investment Partners LLC (the “Adviser”) serves as the Company’s investment adviser. On August 30, 2019, Investcorp Credit Management US LLC (“Investcorp”), a subsidiary of Investcorp Bank Holdings B.S.C., acquired the interests in the Adviser, which were previously held by the Cyrus Funds and Stifel and paid off certain debt owed by the Adviser, resulting in Investcorp having a majority ownership interest in the Adviser (the “Investcorp Transaction”). On August 30, 2019, CM Finance, Inc. changed its name to Investcorp Credit Management BDC, Inc. On August 31, 2023, Investcorp acquired approximately an additional 7% ownership interest in the Adviser. On December 12, 2024, Investcorp assigned its ownership of the Adviser to IVC Credit Management Financing, LLC, its parent entity, and the entity that manages Investcorp’s US credit management regulated entities.

In connection with the Investcorp Transaction, on June 26, 2019, the Company entered into a definitive stock purchase and transaction agreement with Investcorp BDC Holdings Limited (“Investcorp BDC”), an affiliate of Investcorp (the “Stock Purchase Agreement”). Under the Stock Purchase Agreement, Investcorp BDC was required by August 30, 2021 to purchase (i) 680,985 newly issued shares of the Company’s common stock, par value $0.001 per share, at the most recently determined net asset value per share of the Company’s common stock at the time of such purchase, as adjusted as necessary to comply with Section 23 of the 1940 Act, and (ii) 680,985 shares of the Company’s common stock in open-market or secondary transactions. Investcorp BDC has completed all required purchases under the Stock Purchase Agreement.

In connection with the Investcorp Transaction, on June 26, 2019, the Company’s board of directors, including all of the directors who are not “interested persons” of the Company, as defined in Section 2(a)(19) of the 1940 Act (each, an “Independent Director”), unanimously approved a new investment advisory agreement (the “Advisory Agreement”) which was subsequently approved by the Company’s stockholders at a special meeting of stockholders held on August 28, 2019. In connection with the closing of the Investcorp Transaction, on August 30, 2019, the Company entered into the Advisory Agreement and a new administration agreement (the “Administration Agreement”) with the Adviser as its investment adviser and administrator, respectively. The Advisory Agreement and the Administration Agreement are substantially similar to the Company’s prior investment advisory agreement between the Company and the Adviser and the Company’s prior administration agreement, respectively.

The Company’s primary investment objective is to maximize total return to stockholders in the form of current income and capital appreciation by investing directly in debt and related equity of privately held middle-market companies to help these companies fund acquisitions, growth or refinancing. The Company invests primarily in middle-market companies in the form of standalone first and second lien loans, unitranche loans and mezzanine loans. The Company may also invest in unsecured debt, bonds and in the equity of portfolio companies through warrants and other instruments.

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As a BDC, the Company is required to comply with certain regulatory requirements. For instance, as a BDC, the Company must not acquire any assets other than “qualifying assets,” as defined in Section 55(a) of the 1940 Act unless, at the time the acquisition is made, at least 70% of total assets are qualifying assets. Qualifying assets generally include investments in “eligible portfolio companies,” which, under the 1940 Act, are generally defined as any issuer that (1) is organized under the laws of, and has its principal place of business, in the United States; (2) is not an investment company (other than a small business investment company wholly-owned by the BDC) or a company that would be an investment company but for certain exclusions under the 1940 Act; and (3) either does not have any class of securities listed on a national securities exchange or has any class of securities listed on a national securities exchange and have a market capitalization of less than $250 million, in each case organized and with their principal of business in the United States. As of March 31, 2025, the Company did not hold any non-qualifying assets in its portfolio.

From time-to-time, the Company may form taxable subsidiaries that are taxed as corporations for U.S. federal income tax purposes (the “Taxable Subsidiaries”). At March 31, 2025 and December 31, 2024, the Company had no Taxable Subsidiaries. The Taxable Subsidiaries, if any, allow the Company to hold equity securities of portfolio companies organized as pass-through entities while continuing to satisfy the requirements applicable to a RIC under the Code.

From inception through June 30, 2024, the Company reported on a June 30 fiscal year-end. On September 18, 2024, the Company changed its fiscal year end from June 30 to December 31. See Note 3 in the Company's Form 10-KT for the six-month period from July 1, 2024 through December 31, 2024 (the "Transition Period") for more information.

Note 2. Significant Accounting Policies

The following is a summary of significant accounting policies followed by the Company.

a. Basis of Presentation

The accompanying consolidated financial statements are prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Articles 6, 10 and 12 of Regulation S-X. Accordingly, certain disclosures accompanying annual financial statements prepared in accordance with U.S. GAAP are omitted. The unaudited financial statements and notes should be read in conjunction with the audited financial statements and notes thereto for the Transition Period ended December 31, 2024. All values are stated in U.S. dollars, unless noted otherwise. The financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the periods included herein as required by U.S. GAAP. These adjustments are normal and recurring in nature.

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the fair value of investments and other amounts reported in the consolidated financial statements and accompanying notes. Management believes that the estimates utilized in preparing the Company’s consolidated financial statements are reasonable and prudent. Actual results could differ materially from these estimates. All material inter-company balances and transactions have been eliminated.

As permitted under Regulation S-X and ASC 946, the Company will generally not consolidate its investment in a portfolio company other than an investment company subsidiary or a controlled operating company whose business consists of providing all or substantially all of its services to the Company. Accordingly, the Company consolidated the results of the Company’s wholly-owned subsidiaries, CM Finance SPV Ltd. (“SPV”) and Investcorp Credit Management BDC SPV, LLC (“SPV LLC”), which are special purpose vehicles used to finance certain investments in its consolidated financial statements. The effects of all material intercompany balances and transactions have been eliminated in consolidation.

The Company reclassified prior period affiliate and other information in the accompanying Consolidated Statements of Assets and Liabilities and Consolidated Statements of Operations to conform to its current period presentation. These reclassifications had no effect on the Company’s consolidated financial position or the consolidated results of operations as previously reported.

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b. Revenue Recognition, Security Transactions, and Realized/Unrealized Gains or Losses

Interest income, adjusted for amortization of premium and accretion of discount, is recorded on an accrual basis. Origination, closing, commitment, and amendment fees, and purchase and original issue discounts (“OID”) associated with loans to portfolio companies are accreted into interest income over the respective terms of the applicable loans. Accretion of discounts or premiums is calculated by the effective interest or straight-line method, as applicable, as of the purchase date and adjusted only for material amendments or prepayments. Upon the prepayment of a loan or debt security, any prepayment penalties are included in other fee income and unamortized fees and discounts are recorded as interest income and are non-recurring in nature. During the three months ended March 31, 2025, $25,600 of prepayment penalties and unamortized discounts upon prepayment were recorded as investment income. During the three months ended March 31, 2024, $626,352 of prepayment penalties and unamortized discounts upon prepayment were recorded as interest income.

Structuring fees and similar fees are recognized as income as earned, usually when received. Structuring fees, excess deal deposits, net profits interests and overriding royalty interests are included in other fee income.

Management reviews all loans that become 90 days or more past due on principal or interest or when there is reasonable doubt that principal or interest will be collected for possible placement on non-accrual status. Accrued and unpaid interest is generally reversed when a loan is placed on non-accrual status. However, capitalized PIK interest will not be reversed when a loan is placed on non-accrual status. Interest payments received on non-accrual loans may be recognized as income or applied to principal depending upon management’s judgment regarding collectability. Non-accrual loans are restored to accrual status when past due principal and interest is paid and, in management’s judgment, are likely to remain current, although management may make exceptions to this general rule if the loan has sufficient collateral value and is in the process of collection. As of March 31, 2025, the Company had two loans on non-accrual status comprised of CareerBuilder, LLC - Term Loan B3 and Klein Hersh, LLC - Senior Subordinated Note, which collectively represented 1.66% of the Company’s portfolio at fair value. As of December 31, 2024, the Company had five loans on non-accrual status comprised of American Nuts Holdings, LLC Term Loan B, American Teleconferencing Services, Ltd. (d/b/a Premiere Global Services, Inc.) - Revolver, CareerBuilder, LLC Term Loan B3, Klein Hersh, LLC Senior Subordinated Note and Sandvine Corporation Term Loan, which collectively represented 3.64% of the Company’s portfolio at fair value.

Dividend income is recorded on the ex-dividend date.

Investment transactions are accounted for on a trade-date basis. Realized gains or losses on investments are determined by calculating the difference between the net proceeds from the disposition and the amortized cost basis of the investments, without regard to unrealized gains or losses previously recognized. Realized gains or losses on the sale of investments are calculated using the specific identification method. The Company reports changes in fair value of investments as a component of the net change in unrealized appreciation (depreciation) on investments in the Unaudited Consolidated Statements of Operations.

The Company holds debt investments in its portfolio that contain a payment-in-kind (“PIK”) interest provision. PIK interest, which represents contractually deferred interest added to the investment balance that is generally due at maturity, is recorded on an accrual basis to the extent that such amounts are expected to be collected. PIK interest is not accrued if the Company does not expect the issuer to be able to pay all principal and interest when due. The Company earned PIK interest of $441,268 during the three months ended March 31, 2025. The Company earned PIK interest of $633,318 during the three months ended March 31, 2024.

The Company may hold equity investments in its portfolio that contain a PIK dividend provision. PIK dividends, which represent contractual dividend payments added to the investment balance, are recorded on an accrual basis to the extent that such amounts are expected to be collected. The Company earned PIK dividends of $221,685 during the three months ended March 31, 2025. The Company earned PIK dividends of $198,123 during the three months ended March 31, 2024.

c. Paid In Capital

The Company records the proceeds from the sale of its common stock to common stock and additional paid-in capital, net of commissions and marketing support fees.

d. Net Increase (Decrease) in Net Assets Resulting from Operations per Share

The net increase (decrease) in net assets resulting from operations per share is calculated based upon the weighted average number of shares of common stock outstanding during the reporting period.

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e. Distributions

Dividends and distributions to common stockholders are recorded on the declaration date. The amount to be paid out as a dividend or distribution is determined by the Company’s board of directors each quarter and is generally based upon the earnings estimated by management. Net realized capital gains, if any, are generally distributed annually, although the Company may decide to retain such capital gains for investment.

The Company has adopted a dividend reinvestment plan that provides for reinvestment of any distributions the Company declares in cash on behalf of the Company’s stockholders, unless a stockholder elects to receive cash. As a result, if the Company’s board of directors authorizes, and the Company declares, a cash distribution, then the Company’s stockholders who have not “opted out” of the Company’s dividend reinvestment plan will have their cash distributions automatically reinvested in additional shares of the Company’s common stock, rather than receiving the cash distribution.

f. Cash and Restricted Cash

Cash and restricted cash consist of bank demand deposits. The Company deposits its cash in financial institutions and, at times, such balance may be in excess of the Federal Deposit Insurance Corporation insurance limits. All of the Company’s cash deposits are held at what management believes to be large established high credit quality financial institutions and management believes that the risk of loss associated with any uninsured balances is remote. The Company has restrictions on the uses of the cash held by SPV, LLC based on the terms of the relevant financing arrangement. For more information on the Company’s financing arrangements and borrowings, see Note 5.

g. Due from the Sale of 1888 Industrial Services, LLC

During the year ended June 30, 2024, the Company completed the sale of its investments in 1888 Industrial Services, LLC resulting in $2.5 million in proceeds. As of March 31, 2025, a portion is Short-term receivable in the amount of $528,462 on the Consolidated Statements of Assets and Liabilities. Long-term receivable and Escrow receivable balances are $0. The escrow is held as recourse for indemnity claims that may arise under the sale agreement.

h. Deferred Offering Costs

Deferred offering costs consist of fees and expenses incurred in connection with the offer and sale of the Company’s common stock and bonds, including legal, accounting, printing fees, and other related expenses, as well as costs incurred in connection with the filing of a shelf registration statement. These costs are capitalized when incurred and recognized as a reduction of offering proceeds when the offering is completed.

i. Investment Transactions and Expenses

The Company records its investment transactions on a trade date basis, which is the date when the Company assumes the risks for gains and losses related to that instrument. Purchases of loans, including delayed draw term loans and revolving credit facilities, are recorded on a fully committed basis.

Expenses are accrued as incurred.

Deferred debt issuance costs and deferred financing costs, incurred in connection with the Company’s financing arrangements and borrowings, are amortized using the straight-line method which approximates the effective interest method over the life of the debt.

j. Investment Valuation

The Company applies fair value accounting to all of its financial instruments in accordance with the 1940 Act and ASC Topic 820 — Fair Value Measurements and Disclosures (“ASC 820”). ASC 820 defines fair value, establishes a framework used to measure fair value and requires disclosures for fair value measurements. In accordance with ASC 820, the Company has categorized its investments and financial instruments carried at fair value, based on the priority of the valuation technique, into a three-level fair value hierarchy as discussed in Note 4. Fair value is a market-based measure considered from the perspective of the market participant who holds the financial instrument rather than an entity specific measure. Therefore, when market assumptions are not readily available, the Company’s

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own assumptions are set to reflect those that management believes market participants would use in pricing the financial instrument at the measurement date.

Fair value is defined as the price that would be received upon a sale of an asset in an orderly transaction between market participants at the measurement date. Market participants are buyers and sellers in the principal (or most advantageous) market for the asset that (a) are independent of us, (b) are knowledgeable, having a reasonable understanding about the asset based on all available information (including information that might be obtained through due diligence efforts that are usual and customary), (c) are able to transact for the asset, and (d) are willing to transact for the asset or liability (that is, they are motivated but not forced or otherwise compelled to do so).

Securities that are traded on securities exchanges (including such securities traded in the afterhours market) are valued on the basis of the closing price on the valuation date (if such prices are available). Securities that are traded on more than one securities exchange are valued at the closing price on the primary securities exchange on which such securities are traded on the valuation date (or if reported on the consolidated tape, then their last sales price on the consolidated tape). Listed options for which the last sales price falls between the last “bid” and “ask” prices for such options are valued at their last sales price on the date of the valuation on the primary securities exchange on which such options are traded. Options for which the last sales price on the valuation date does not fall between the last “bid” and “ask” prices are valued at the average of the last “bid” and “ask” prices for such options on that date. To the extent these securities are actively traded, and valuation adjustments are not applied, they are categorized in Level 1 of the fair value hierarchy. The Company held no Level 1 investments as of March 31, 2025 or December 31, 2024.

Investments that are not traded on securities exchanges but are traded on the over-the-counter markets (such as term loans, notes and warrants) are valued using various techniques, which may consider recently executed transactions in securities of the issuer or comparable issuers, market price quotations (when observable) and fundamental data relating to the issuer. These investments are categorized in Level 2 of the fair value hierarchy, or in instances when lower relative weight is placed on transaction prices, quotations, or similar observable inputs, they are categorized in Level 3.

Investments for which market quotations are not readily available or may be considered unreliable are fair valued, in good faith, using a method determined to be appropriate in the given circumstances. The valuation methods used include the Cost Approach, the Market Approach and the Income Approach. Inputs used in these approaches may include, but are not limited to, interest rate yield curves, credit spreads, recovery rates, comparable company transactions, trading multiples, and volatilities. The valuation method the Company uses may change as changes in the underlying portfolio company dictates, such as moving from the Cost Approach to Market Approach when underlying conditions change at the company. Because of the inherent uncertainty of valuation in these circumstances, the fair values for the aforementioned investments may differ significantly from values that would have been used had a ready and liquid market for such investments existed or from the amounts that might ultimately be realized, and such differences could be material.

The Adviser seeks to ensure that the Company’s valuation policies and procedures, as approved by the Company’s board of directors, are consistently applied across all investments of the Company. The valuations are continuously monitored and the valuation process for Level 3 investments is completed on a quarterly basis and is designed to subject the valuation of Level 3 investments to an appropriate level of consistency, oversight and review. The quarterly valuation process begins with each portfolio company or investment being initially valued by the Adviser, with such valuation taking into account information received from any approved third-party valuation firm that the Company may retain with respect to certain investments. The Adviser’s investment professionals will prepare portfolio company valuations using sources and/or proprietary models depending on the availability of information on the Company’s assets and the type of asset being valued.

Valuation models are typically calibrated upon initial funding and are re-calibrated as necessary upon subsequent material events (including, but not limited to additional financing activity, changes in comparable companies, and recent trades). The preliminary valuation conclusions are then documented and discussed with senior management of the Adviser. On a periodic basis and at least once annually, one or more third-party independent valuation firm(s) engaged by the Company conduct independent appraisals and review the Adviser’s preliminary valuations and make their own independent assessment. The Valuation Committee of the Company’s board of directors then reviews the preliminary valuations of the Adviser and, as applicable, that of any independent valuation firms. The Valuation Committee discusses the valuations and makes a recommendation to the Company’s board of directors regarding the fair value of each investment in good faith based on the input of the Adviser and the independent valuation firm(s). Upon recommendation by the Valuation Committee and a review of the valuation materials of the Adviser and the third-party independent valuation firm(s), the board of directors of the Company determines, in good faith, the fair value of each investment.

For more information on the classification of the Company’s investments by major categories, see Note 4.

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The fair value of the Company’s assets and liabilities that qualify as financial instruments under U.S. GAAP approximates the carrying amounts presented in the Unaudited Consolidated Statements of Assets and Liabilities.

k. Income Taxes

The Company has elected to be treated, for U.S. federal income tax purposes, as a RIC under Subchapter M of the Code. To maintain qualification as a RIC, the Company must, among other things, meet certain source of income and asset diversification requirements and distribute to stockholders, for each taxable year, at least 90% of the Company’s “investment company taxable income,” which is generally the Company’s net ordinary income plus the excess, if any, of realized net short-term capital gains over realized net long-term capital losses. If the Company continues to qualify as a RIC and continues to satisfy the annual distribution requirement, the Company will not have to pay corporate level U.S. federal income taxes on any income that the Company distributes to its stockholders. The Company intends to make distributions in an amount sufficient to maintain RIC status each year and to avoid any federal income taxes on income. The Company will also be subject to nondeductible U.S. federal excise taxes if the Company does not distribute to its stockholders at least 98% of net ordinary income, 98.2% of capital gains, if any, and any recognized and undistributed income from prior years for which it paid no U.S. federal income taxes. Additionally, certain of the Company’s consolidated subsidiaries are subject to U.S. federal and state income taxes. At March 31, 2025 and March 31, 2024, the Company had no Taxable Subsidiaries. The Company incurred excise tax expenses, which are included in the provision for tax expense of $81,059 for the three months ended March 31, 2025, and $111,646 for the three months ended March 31, 2024.

Book and tax basis differences that are permanent differences are reclassified among the Company’s capital accounts, as appropriate at year-end. Additionally, the tax character of distributions is determined in accordance with the Code, which differs from U.S. GAAP. During the three months ended March 31, 2025, the Company recorded distributions of $1.7 million. During the three months ended March 31, 2024, the Company recorded distributions of $2.2 million. For certain periods, the tax character of a portion of distributions may be return of capital.

U.S. GAAP requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Company’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet a more-likely-than-not threshold would be recorded as a tax expense in the current year. The Company’s policy is to recognize accrued interest and penalties associated with uncertain tax positions as part of the tax provision.

The Company has analyzed such tax positions and has concluded that no unrecognized tax benefits should be recorded for uncertain tax positions. The tax years ended June 30, 2021 and June 30, 2022 through present remain subject to examinations by taxing authorities. This conclusion may be subject to review and adjustment at a later date based on factors, including but not limited to, ongoing analysis and changes to laws, regulations, and interpretations thereof.

l. Segment Reporting

In accordance with ASC Topic 280, Segment Reporting (“ASC 280”), the Company has determined that it has a single operating and reporting segment. As a result, the Company’s segment accounting policies are the same as described herein and the Company does not have any intra-segment sales and transfers of assets.

Note 3. Recent Accounting Pronouncements

From time to time, new accounting pronouncements are issued by the FASB or other standards setting bodies that are adopted by the Company as of the specified effective date. The Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial statements upon adoption.

In December 2023, FASB issued ASU 2023-09, Income Taxes (Topic 740) - Improvements to income tax disclosures, which requires more detailed income tax disclosures, chiefly by providing disaggregated information about the effective tax rate reconciliation and expanded information on income taxes paid by jurisdiction. The new guidance is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company does not anticipate the new standard will have a material impact to the consolidated financial statements. From time to time, new accounting pronouncements are issued by the FASB or other standards setting bodies that are adopted by the Company as of the specified effective date. The Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial statements upon adoption.

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Note 4. Investments

The Company’s investments, at any time, may include securities and other financial instruments, including, without limitation, corporate and government bonds, convertible securities, collateralized loan obligations, term loans, revolvers and delayed draw facilities, trade claims, equity securities, privately negotiated securities, direct placements, working interests, warrants and investment derivatives (such as credit default swaps, recovery swaps, total return swaps, options, forward contracts, and futures) (all of the foregoing collectively referred to in these financial statements as “investments”).

a. Certain Risk Factors

In the ordinary course of business, the Company manages a variety of risks including market risk, liquidity risk and credit risk. The Company identifies, measures and monitors risk through various control mechanisms, including trading limits and diversifying exposures and activities across a variety of instruments, markets and counterparties.

Market risk is the risk of potential adverse changes to the value of financial instruments because of changes in market conditions, including as a result of changes in the credit quality of a particular issuer, credit spreads, interest rates, and other movements and volatility in security prices or commodities. In particular, the Company may invest in issuers that are experiencing or have experienced financial or business difficulties (including difficulties resulting from the initiation or prospect of significant litigation or bankruptcy proceedings), which involves significant risks. The Company manages its exposure to market risk through the use of risk management strategies and various analytical monitoring techniques.

With respect to liquidity risk, the Company’s assets may, at any time, include securities and other financial instruments or obligations that are illiquid or thinly traded, making the purchase or sale of such securities and financial instruments at desired prices or in desired quantities difficult. Furthermore, the sale of any such investments may be possible only at substantial discounts, and it may be extremely difficult to value any such investments accurately.

Credit risk is the potential loss the Company may incur from a failure of an issuer to make payments according to the terms of a contract. The Company is subject to credit risk because of its strategy of investing in the debt of leveraged companies and its involvement in derivative instruments. The Company’s exposure to credit risk on its investments is limited to the fair value of the investments. With regard to derivatives, the Company attempts to limit its credit risk by considering its counterparty’s (or its guarantor’s) credit rating.

b. Investments

The composition of the Company’s investments as of March 31, 2025, by investment type, as a percentage of the total portfolio, at amortized cost and fair value, are as follows:

Investment Type	Investments at Amortized Cost	Percentage of Total Portfolio	Investments at Fair Value	Percentage of Total Portfolio
Senior Secured First Lien Debt Investments	$148,444,949	74.93%	$148,269,027	77.04%
Unsecured Debt Investments	—	—%	—	—%
Equity, Warrants and Other Investments	49,661,822	25.07%	44,178,843	22.96%
Total	$198,106,771	100.00%	$192,447,870	100.00%

The composition of the Company’s investments as of December 31, 2024, by investment type, as a percentage of the total portfolio, at amortized cost and fair value, are as follows:

Investment Type	Investments at Amortized Cost	Percentage of Total Portfolio	Investments at Fair Value	Percentage of Total Portfolio
Senior Secured First Lien Debt Investments	$156,688,970	78.15%	$155,530,390	81.17%
Unsecured Debt Investments	—	—%	—	—%
Equity, Warrants and Other Investments	43,816,937	21.85%	36,086,568	18.83%
Total	$200,505,907	100.00%	$191,616,958	100.00%

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The Company uses Global Industry Classification Standard (“GICS”) codes to identify the industry groupings in its portfolio. The following table shows the portfolio composition by industry grouping at fair value at March 31, 2025 and December 31, 2024:

	March 31, 2025		December 31, 2024
Industry Classification	Investments at Fair Value	Percentage of Total Portfolio	Investments at Fair Value	Percentage of Total Portfolio
Professional Services	$29,780,170	15.47%	$27,542,249	14.37%
Containers & Packaging	17,612,750	9.15%	20,159,439	10.52%
Trading Companies & Distributors	16,454,772	8.55%	16,550,362	8.64%
Commercial Services & Supplies	15,383,792	7.99%	12,778,427	6.67%
IT Services	15,189,781	7.89%	13,677,485	7.14%
Insurance	14,748,835	7.66%	14,883,386	7.77%
Diversified Consumer Services	13,348,517	6.94%	13,555,936	7.07%
Specialty Retail	10,327,633	5.37%	13,645,186	7.12%
Food Products	8,862,563	4.61%	8,948,000	4.67%
Entertainment	7,793,784	4.05%	6,356,272	3.32%
Household Durables	7,587,065	3.94%	7,664,219	4.00%
Software	7,561,611	3.93%	7,130,522	3.72%
Health Care Providers & Services	6,000,000	3.12%	6,000,000	3.13%
Interactive Media & Services	5,444,688	2.83%	5,472,222	2.86%
Consumer Staples Distribution & Retail	4,886,653	2.54%	5,794,191	3.02%
Construction & Engineering	3,814,036	1.98%	3,698,210	1.93%
Hotels, Restaurants & Leisure	2,962,575	1.54%	2,977,500	1.56%
Automobile Components	2,887,891	1.50%	3,014,929	1.57%
Electronic Equipment, Instruments & Components	1,800,754	0.94%	1,768,423	0.92%
Total	$192,447,870	100.00%	$191,616,958	100.00%

The following table shows the portfolio composition by geographic grouping at fair value at March 31, 2025 and December 31, 2024:

	March 31, 2025		December 31, 2024
Geographic Region	Investments at Fair Value	Percentage of Total Portfolio	Investments at Fair Value	Percentage of Total Portfolio
U.S. Northeast	$56,115,872	29.16%	$57,924,569	30.23%
U.S. West	53,369,830	27.73%	50,821,899	26.52%
U.S. Southeast	28,895,264	15.02%	32,190,267	16.80%
U.S. Midwest	27,040,067	14.05%	24,291,767	12.68%
U.S. Southwest	19,383,594	10.07%	7,712,299	4.02%
U.S. Mid-Atlantic	7,643,243	3.97%	14,594,690	7.62%
International	—	—%	4,081,467	2.13%
Total	$192,447,870	100.00%	$191,616,958	100.00%

The Company’s primary investment objective is to maximize total return to stockholders in the form of current income and capital appreciation by investing directly in debt and related equity of privately held middle-market companies to help these companies fund acquisitions, growth or refinancing. During the three months ended March 31, 2025, the Company made investments in new and existing portfolio companies of approximately $5.1 million, to which it was not previously contractually committed to provide financial support. During the three months ended March 31, 2024, the Company made investments in new and existing portfolio companies of approximately $8.9 million, to which it was not previously contractually committed to provide financial support. During the three months ended March 31, 2025, the Company made investments of $0.5 million in companies to which it was committed to provide financial support through the terms of the revolvers and delayed draw term loans. During the three months ended March 31, 2024, the Company made investments of $0.5 million in companies to which it was committed to provide financial support through the terms of the revolvers and delayed draw term loans. The details of the Company’s investments have been disclosed on the Unaudited Consolidated Schedule of Investments.

c. Derivatives

Derivative contracts include total return swaps and embedded derivatives in the Company’s borrowings. The Company may enter into derivative contracts as part of its investment strategies. On October 28, 2020, the SEC adopted a rule that modifies the conditions by which BDCs can enter into, or “cover” open positions pursuant to, certain derivatives contracts that involve potential future payment obligations (the “Derivatives Rule”). The Derivatives Rule requires a BDC entering into a derivatives contract to develop and implement a derivatives risk management program, to comply with an outer limit on asset coverage ratio based on the VaR (“value-at-risk”) test, and to report its derivative activity to its board of directors on a regular basis. The Derivatives Rule also contains exceptions to these conditions for any fund that limits its exposure to derivatives positions to 10 percent of its net assets. At March 31, 2025 and December 31, 2024, the Company held no derivative contracts.

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d. Fair Value Measurements

ASC 820 defines fair value as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. ASC 820 also establishes a framework for measuring fair value and a valuation hierarchy that prioritizes the inputs used in the valuation of an asset or liability based upon their transparency. The valuation hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). Classification within the hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The Company’s assets and liabilities measured at fair value have been classified in the following three categories:

Level 1 – valuation is based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.

Level 2 – valuation is based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, such as (a) quoted prices for similar assets or liabilities in active markets; (b) quoted prices for identical or similar assets or liabilities in markets that are not active, that is, markets in which there are few transactions for the asset or liability, the prices are not current, or price quotations vary substantially either over time or among market makers, or in which little information is released publicly; (c) inputs other than quoted prices that are observable for the asset or liability; or (d) inputs that are derived principally from or corroborated by observable market data by correlation or other means.

Level 3 – valuation is based on unobservable inputs for the asset or liability. Unobservable inputs are used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. However, the fair value measurement objective remains the same, that is, an exit price from the perspective of a market participant that holds the asset or owes the liability. Therefore, unobservable inputs reflect the Company’s own assumptions about the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. Unobservable inputs are developed based on the best information available under the circumstances, which might include the Company’s own data. The Company’s own data used to develop unobservable inputs is adjusted if information is reasonably available without undue cost and effort that indicates that market participants would use different assumptions.

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of the market and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.

Estimates of fair value for cash and restricted cash are measured using observable, quoted market prices, or Level 1 inputs. All other fair value significant estimates are measured using unobservable inputs, or Level 3 inputs.

The following table summarizes the classifications within the fair value hierarchy of the Company’s assets and liabilities measured at fair value as of March 31, 2025:

	Level 1	Level 2	Level 3	Total
Assets
Investments
Senior Secured First Lien Debt Investments	$—	$14,122,511	$134,146,516	$148,269,027
Unsecured Debt Investments	—	—	—	—
Equity, Warrants and Other Investments	—	—	44,178,843	44,178,843
Total Investments	$—	$14,122,511	$178,325,359	$192,447,870

The following table summarizes the classifications within the fair value hierarchy of the Company’s assets and liabilities measured at fair value as of December 31, 2024:

	Level 1	Level 2	Level 3	Total
Assets
Investments
Senior Secured First Lien Debt Investments	$—	$18,255,412	$137,274,978	$155,530,390
Unsecured Debt Investments	—	—	—	—
Equity, Warrants and Other Investments	—	—	36,086,568	36,086,568
Total Investments	$—	$18,255,412	$173,361,546	$191,616,958

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The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the three months ended March 31, 2025:

	Senior Secured First Lien Debt Investments	Equity, Warrants and Other Investments	Total Investments
Fair value at December 31, 2024	$137,274,978	$36,086,568	$173,361,546
Purchases (including PIK interest)	5,382,651	895,696	6,278,347
Sales and repayments	(4,083,820)	—	(4,083,820)
Amortization	281,197	—	281,197
Net realized gains (losses)	(1,627,282)	—	(1,627,282)
Transfers in	—	4,949,189	4,949,189
Transfers out	(4,949,189)	—	(4,949,189)
Net change in unrealized (depreciation) appreciation	1,867,981	2,247,390	4,115,371
Fair value at March 31, 2025	$134,146,516	$44,178,843	$178,325,359
Change in unrealized appreciation (depreciation) relating to assets still held as of March 31, 2025	$346,345	$2,247,391	$2,593,736

The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the three months ended March 31, 2024:

	Senior Secured First Lien Debt Investments	Equity, Warrants and Other Investments	Total Investments
Fair value at December 31, 2023	$176,208,787	$31,172,766	$207,381,553
Purchases (including PIK interest)	10,026,039	198,122	10,224,161
Sales and repayments	(26,658,550)	—	(26,658,550)
Amortization	922,739	—	922,739
Net realized gains (losses)	(6,271,968)	—	(6,271,968)
Transfers in	—	—	—
Transfers out	—	—	—
Net change in unrealized (depreciation) appreciation	6,871,111	(265,765)	6,605,346
Fair value at March 31, 2024	$161,098,158	$31,105,123	$192,203,281
Change in unrealized appreciation (depreciation) relating to assets still held as of March 31, 2024	$(2,413,463)	$(1,606,082)	$(4,019,545)

Transfers into Level 3 during or at the end of the reporting period are reported under Level 1 or Level 2 as of the beginning of the period. Transfers out of Level 3 during or at the end of the reporting period are reported under Level 3 as of the beginning of the period. During the three months ended March 31, 2025 and March 31, 2024, the Company did not transfer any investments among Levels 1, 2 and 3. Changes in unrealized gains (losses) relating to Level 3 instruments are included in net change in unrealized (depreciation) appreciation on investments on the Unaudited Consolidated Statements of Operations.

During the three months ended March 31, 2025, $4,949,189 transferred from Senior Secured First Lien Debt Investments Level 3 to Equity, Warrants and Other Investments Level 3 due to restructurings. During the three months ended March 31, 2024, there were no transfers between Senior Secured First Lien Debt Investments Level 3 and Equity, Warrants and Other Investments Level 3.

The following tables provide quantitative information regarding the Company’s Level 3 fair value measurements as of March 31, 2025 and December 31, 2024. This information presents the significant unobservable inputs that were used in the valuation of each type of investment. These inputs are not representative of the inputs that could have been used in the valuation of any one investment. For example, the highest market yield presented in the table for senior secured debt is appropriate for valuing a specific investment but may not be appropriate for valuing any other investment. Accordingly, the ranges of inputs presented below do not represent uncertainty in, or possible ranges of, fair value measurements of the Company’s Level 3 investments. In addition to the techniques and inputs noted in the tables below, according to our valuation policy we may also use other valuation techniques and methodologies when determining our fair value measurements. The below tables are not intended to be all-inclusive, but rather provide information on the significant unobservable inputs as they relate to the Company’s determination of fair values.

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	Fair Value as of March 31, 2025	Valuation Methodology	Unobservable Input(s)	Weighted Average (2)	Range
Senior Secured First Lien Debt Investments	$118,833,921	Income Approach	Market Yields	11.2%	7.8%-18.1%
Senior Secured First Lien Debt Investments	5,351,003	Market Comparable Approach	EBITDA Multiple	5.6x	2.1x - 7.9x
Senior Secured First Lien Debt Investments	9,961,592	Recent Transaction	Recent Transaction	N/A	N/A
Unsecured Debt Investments	—	Recovery Analysis	Recovery Amount (1)	N/A	N/A
Equity, Warrants and Other Investments	7,016,197	Income Approach	Market Yields	21.4%	21.4%
Equity, Warrants and Other Investments	32,223,395	Market Comparable Approach	EBITDA multiple	14.1x	4.5x - 30.3x
Equity, Warrants and Other Investments	4,939,251	Recent Transaction	Recent Transaction	N/A	N/A
	$178,325,359

(1) Recovery amounts involve various unobservable inputs including probabilities of different recovery scenarios, valuation multiples under such scenarios, and the timing to realize the associated recovery values.

(2) Weighted by fair value.

	Fair Value as of December 31, 2024	Valuation Methodology	Unobservable Input(s)	Weighted Average (2)	Range
Senior Secured First Lien Debt Investments	$102,502,885	Income Approach	Market Yields	11.8%	8.7%-18.0%
Senior Secured First Lien Debt Investments	6,080,589	Market Comparable Approach	EBITDA Multiple	18.4x	11.5x - 28.4x
Senior Secured First Lien Debt Investments	—	Market Comparable Approach	Revenue Multiple	N/A	N/A
Senior Secured First Lien Debt Investments	25,611,612	Recent Transaction	Recent Transaction	N/A	N/A
Senior Secured First Lien Debt Investments	3,079,892	Recovery Analysis	Recovery Amount (1)	N/A	N/A
Unsecured Debt Investments	—	Recovery Analysis	Recovery Amount (1)	N/A	N/A
Equity, Warrants and Other Investments	6,666,774	Income Approach	Market Yields	17.4%	17.4%
Equity, Warrants and Other Investments	24,915,384	Market Comparable Approach	EBITDA multiple	12.6x	4.7x - 28.4x
Equity, Warrants and Other Investments	4,504,410	Recent Transaction	Recent Transaction	N/A	N/A
	$173,361,546

(1) Recovery amounts involve various unobservable inputs including probabilities of different recovery scenarios, valuation multiples under such scenarios, and the timing to realize the associated recovery values.

(2) Weighted by fair value.

Fair value measurements categorized within Level 3 are sensitive to changes in the assumptions or methodology used to determine fair value and such changes could result in a significant increase or decrease in the fair value. Significant increases in illiquidity discounts, PIK discounts and market yields would result in significantly lower fair value measurements. Significant increases in EBITDA multiples or recent transaction values would result in significantly higher fair value measurements.

Note 5. Borrowings

On August 23, 2021, the Company, through SPV LLC entered into a five-year, $115 million senior secured revolving credit facility (the “Capital One Revolving Financing”) with Capital One, which is secured by collateral consisting primarily of loans in the Company’s investment portfolio. On June 14, 2023, we amended the Capital One Revolving Financing to decrease the facility size from $115 million to $100 million. On January 17, 2024, we amended the Capital One Revolving Financing to (i) extend the maturity date to January 17, 2029, (ii) increase of the applicable interest spreads under the Capital One Revolving Financing and (iii) extend the Scheduled Revolving Period End Date (as defined in Capital One Revolving Financing) to January 17, 2027. The Capital One Revolving Financing, which will expire on January 17, 2029 (the “Maturity Date”), features a three-year reinvestment period and a two-year amortization period.

Effective January 17, 2024, borrowings under the Capital One Revolving Financing generally bear interest at a rate per annum equal to the Secured Overnight Financing Rate (“SOFR”) plus 3.10%. The default interest rate will be equal to the interest rate then in effect plus 2.00%. The Capital One Revolving Financing required the payment of an upfront fee of 1.125% ($1.3 million) of the available borrowings under the Capital One Revolving Financing at the closing, and requires the payment of an unused fee of (i) 0.75% annually for any undrawn amounts below 50% of the Capital One Revolving Financing, (ii) 0.50% annually for any undrawn amounts between 50% and 75% of the Capital One Revolving Financing, and (iii) 0.25% annually for any undrawn amounts above 75% of the Capital One Revolving Financing. Borrowings under the Capital One Revolving Financing are based on a borrowing base. The Capital One

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Revolving Financing generally requires payment of interest and fees on a quarterly basis. All outstanding principal is due on the Maturity Date. The Capital One Revolving Financing also requires mandatory prepayment of interest and principal upon certain events.

On November 19, 2024, we amended the Capital One Revolving Financing to provide for, among other things, a decrease of the applicable interest spreads under the Capital One Revolving Financing from SOFR plus 3.10% to SOFR plus 2.50%, and to make amendments to the concentration limits and other fees, and certain other amendments.

As of March 31, 2025 and December 31, 2024, there were $56.0 million and $58.5 million in borrowings outstanding under the Capital One Revolving Financing, respectively.

Restricted cash (as shown on the Unaudited Consolidated Statements of Assets and Liabilities) is held by the trustee of the Capital One Revolving Financing and is restricted to purchases of investments by SPV LLC that must meet certain eligibility criteria identified by the loan, security and investment management agreement governing the Capital One Revolving Financing. As of March 31, 2025, SPV LLC had a notional amount of $162.1 million, which included $150.5 million of the Company’s portfolio investments at fair value, $1.0 million in accrued interest receivable and $10.7 million in cash held by the trustees of the Capital One Revolving Financing. As of December 31, 2024, SPV had a notional amount of $167.7 million, which included $154.7 million of the Company's portfolio investments at fair value, $1.6 million in accrued interest receivable and $11.3 million in cash held by the trustees of the Capital One Revolving Financing. For the three months ended March 31, 2025, the weighted average outstanding debt balance and the weighted average stated interest rate under the Capital One Revolving Financing was $56.9 million and 6.93%, respectively. For the three months ended March 31, 2024, the weighted average outstanding debt balance and the weighted average stated interest rate under the Capital One Revolving Financing was $63.6 million and 8.34%, respectively.

The fair value of the Company’s borrowings is estimated based on the rate at which similar credit facilities or debentures would be priced. At March 31, 2025 and December 31, 2024, the fair value of the Company’s total borrowings under the Capital One Revolving Financing, was estimated at $56.0 million and $58.5 million respectively, which the Company concluded was a Level 3 fair value.

As of March 31, 2025, the carrying amount of the Capital One Revolving Financing was approximately $55.0 million, aggregate principal balance of $56.0 million net of deferred debt issuance costs of approximately $1.0 million.

On March 31, 2021, the Company closed the public offering of $65 million in aggregate principal amount of 4.875% notes due 2026 (the “2026 Notes”). The total net proceeds to the Company from the sale of the 2026 Notes, after deducting the underwriting discounts and commissions of approximately $1.3 million and estimated offering expenses of approximately $215,000, were approximately $63.1 million.

The 2026 Notes will mature on April 1, 2026, unless previously redeemed or repurchased in accordance with their terms, and bear interest at a rate of 4.875%. The 2026 Notes are direct unsecured obligations and rank pari passu, which means equal in right of payment, with all outstanding and future unsecured, unsubordinated indebtedness issued by the Company. Because the 2026 Notes are not secured by any of the Company’s assets, they are effectively subordinated to all of the Company’s existing and future secured unsubordinated indebtedness (or any indebtedness that is initially unsecured as to which the Company subsequently grants a security interest), to the extent of the value of the assets securing such indebtedness. The 2026 Notes are structurally subordinated to all existing and future indebtedness and other obligations of any of the Company’s subsidiaries and financing vehicles, including, without limitation, borrowings under the Capital One Revolving Financing. The 2026 Notes are obligations exclusively of the Company and not of any of the Company’s subsidiaries. None of the Company’s subsidiaries is a guarantor of the 2026 Notes and the 2026 Notes will not be required to be guaranteed by any subsidiary the Company may acquire or create in the future.

The 2026 Notes may be redeemed in whole or in part at any time or from time to time at the Company’s option, upon not less than 30 days nor more than 60 days written notice by mail prior to the date fixed for redemption thereof, at a redemption price (as determined by the Company) equal to the greater of the following amounts, plus, in each case, accrued and unpaid interest to, but excluding, the redemption date: (1) 100% of the principal amount of the 2026 Notes to be redeemed or (2) the sum of the present values of the remaining scheduled payments of principal and interest (exclusive of accrued and unpaid interest to the date of redemption) on the 2026 Notes to be redeemed, discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) using the applicable Treasury Rate plus 50 basis points; provided, however, that if the Company redeems any 2026 Notes on or after January 1, 2026 (the date falling three months prior to the maturity date of the 2026 Notes), the redemption price for the 2026 Notes will be equal to 100% of the principal amount of the 2026 Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the date of redemption; provided, further, that no such partial redemption shall reduce the portion of the principal amount of a 2026 Note not redeemed to less than $2,000. Interest on the 2026 Notes is payable semi-annually on April 1 and October 1 of each

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year, commencing October 1, 2021. The Company may from time to time repurchase 2026 Notes in accordance with the 1940 Act and the rules promulgated thereunder.

As of March 31, 2025, the carrying amount of the 2026 Notes was approximately $64.7 million, aggregate principal balance of $65.0 million net of deferred debt issuance costs of $260,000 and unamortized discount of $71,110, at a current yield of 5.05%. As of December 31, 2024, the carrying amount of the 2026 Notes was $64.6 million, aggregate principal balance of $65.0 million net with deferred debt issuance costs of $325,000 and unamortized discount of $88,888, at a current yield of 5.02%. As of March 31, 2025 and December 31, 2024, the fair value of the 2026 Notes was $62.8 million and $63.2 million, respectively. The Company concluded that this was Level 3 fair value under ASC 820.

For the three months ended March 31, 2025, the weighted average outstanding debt balance and the weighted average stated interest rate for overall debt outstanding, in aggregate was $121.9 million and 5.90%, respectively. For the three months ended March 31, 2024, the weighted average outstanding debt balance and the weighted average stated interest rate for overall debt outstanding, in aggregate was $128.6 million and 6.61%, respectively.

Long-Term Debt Maturities

Set forth below is the aggregate principal amount of our long-term debt as of March 31, 2025 and December 31, 2024 (excluding unamortized premiums, net, unamortized debt issuance costs and note payable) maturing during the following years:

	March 31, 2025	December 31, 2024
2024	$—	$—
2025	—	—
2026 and beyond	121,000,000	123,500,000
Total long-term debt	$121,000,000	$123,500,000

Note 6. Indemnification, Guarantees, Commitments and Contingencies

In the normal course of business, the Company enters into contracts that provide a variety of representations and warranties and general indemnifications. Such contracts include those with certain service providers, brokers and trading counterparties. Any exposure to the Company under these arrangements is unknown as it would involve future claims that may be made against the Company; however, based on the Company’s experience, the risk of loss is remote and no such claims are expected to occur. As such, the Company has not accrued any liability in connection with such indemnifications.

The Company’s board of directors declared the following quarterly distributions during the three months ended March 31, 2025:

Declared Date	Ex-Date	Record Date	Pay Date	Amount per Share	Fiscal Quarter
March 20, 2025	April 24, 2025	April 25, 2025	May 16, 2025	$0.12	1st 2025

Loans purchased by the Company may include revolving credit agreements or other financing commitments obligating the Company to advance additional amounts on demand. The Company generally sets aside sufficient liquid assets to cover its unfunded commitments, if any.

The following table details the Company’s unfunded commitments to portfolio companies as of March 31, 2025:

Investments	Unfunded Commitment	Fair Value	Annual Non-use Fee	Expiration Date
Accelevation, LLC - DDTL	$1,269,231	$—	1.00%	1/2/2031
Uniguest Holdings - DDTL	1,111,111	—	1.00%	11/27/2030
Argano, LLC - DDTL	869,565	—	1.00%	8/23/2029
Accelevation, LLC – Revolver	741,232	—	0.50%	1/2/2031
Arborworks Acquisition LLC – Revolver	692,381	—	—	11/6/2028
Crafty Apes LLC - DDTL - Second Out	492,735	—	—	6/1/2027
Uniguest Holdings - Revolver	333,333	—	0.50%	11/27/2030
Argano, LLC - Revolver	144,928	—	0.50%	8/23/2029
Total Unfunded Commitments	$5,654,516	$—

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The following table details the Company’s unfunded commitments to portfolio companies as of December 31, 2024:

Investments	Unfunded Commitment	Fair Value	Annual Non-use Fee	Expiration Date
Uniguest Holdings - DDTL	$1,111,111	$—	—	11/27/2030
Argano, LLC - DDTL	869,565	—	—	8/23/2029
Arborworks Acquisition LLC – Revolver	712,496	—	—	11/6/2028
Flatworld Intermediate Corporation – Revolver	567,568	—	0.50%	10/1/2027
Crafty Apes LLC - DDTL - Second Out	492,735	—	—	6/1/2027
Sandvine Corporation - DDTL	398,456	—	—	10/3/2025
Uniguest Holdings - Revolver	333,333	—	—	11/27/2030
Argano, LLC - Revolver	144,928	—	—	8/23/2029
Total Unfunded Commitments	$4,630,192	$—

Note 7. Agreements and Related Party Transactions

The following table provides a summary of related party transactions under the Advisory and Administration Agreements with the Adviser for the three months ended March 31, 2025 and 2024:

	For the three months ended March 31,
	2025	2024
Base management fees	$848,036	$951,799
Waiver of base management fees	(74,143)	(97,431)
Income-based incentive fees	—	—
Waiver of income-based incentive fees	—	—
Capital gains fee	—	—
Allocation of administrative costs from Adviser	254,023	225,856
Total net expense to affiliates	$1,027,916	$1,080,224

The following table provides a summary of related party transactions under the Advisory and Administration Agreements with the Adviser as of March 31, 2025 and December 31, 2024:

	March 31, 2025	December 31, 2024
Due from affiliate	$—	$—
Total amount due from affiliate	$—	$—
Base management fees payable	$1,543,069	$769,176
Income-based incentive fees payable	501,955	501,955
Capital gains fee payable	—	—
Allocation of administrative costs from Adviser payable(1)	281,895	27,868
Total amount due to affiliates	$2,326,919	$1,298,999

(1)Balances are reported within Accrued Expenses and Other Liabilities on the Consolidated Statements of Assets and Liabilities.

Advisory Agreement

The Company is party to the Advisory Agreement with the Adviser. Under the Advisory Agreement, the Company has agreed to pay the Adviser a fee for investment advisory and management services consisting of two components: a base management fee (the “Base Management Fee”) and an incentive fee (the “Incentive Fee”). The Incentive Fee has two components: one based on the Company’s pre-Incentive Fee net investment income (the “Income-Based Fee”) and one based on capital gains (the “Capital Gains Fee”).

Under the Advisory Agreement, the Base Management Fee is calculated at an annual rate of 1.75% of the Company’s gross assets, including assets purchased with borrowed funds or other forms of leverage and excluding cash and cash equivalents (such amount, “Gross Assets”).

For the three months ended March 31, 2025, $848,036 in Base Management Fees were earned by the Adviser, of which $74,143 was voluntarily waived. As of March 31, 2025, $1,543,069 of such fees were payable. For the three months ended March 31, 2024, $951,799 in Base Management Fees were earned by the Adviser, of which $97,431 was voluntarily waived. As of December 31, 2024, $769,176 of such fees were payable. There is no guarantee that the Adviser will waive Base Management Fees in the future. Any portion of the Base Management Fee waived is not subject to recapture.

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The Base Management Fee is calculated based on the average value of the Company’s Gross Assets at the end of the two most recently completed fiscal quarters prior to the quarter for which such fees are being calculated. The Base Management Fee is payable quarterly in arrears and the Base Management Fees for any partial month or quarter will be appropriately pro-rated.

Under the Advisory Agreement, the Income-Based Fee is calculated and payable quarterly in arrears based on the Company’s Pre-Incentive Fee Net Investment Income (as defined below) for the immediately preceding fiscal quarter, subject to a total return requirement (the “Total Return Requirement”) and deferral of non-cash amounts, and is 20.0% of the amount, if any, by which the Company’s Pre-Incentive Fee Net Investment Income, expressed as a rate of return on the value of our net assets attributable to its common stock, for the immediately preceding fiscal quarter, exceeds a 2.0% (which is 8.0% annualized) hurdle rate and a “catch-up” provision measured as of the end of each fiscal quarter. Under this provision, in any fiscal quarter, the Adviser receives no Income-Based Fee until the Company’s Pre-Incentive Fee Net Investment Income exceeds the hurdle rate of 2.0%, but then receives, as a “catch-up,” 100% of the Company’s Pre-Incentive Fee Net Investment Income with respect to that portion of such Pre-Incentive Fee Net Investment Income, if any, that exceeds the hurdle rate but is less than 2.5% (which is 10.0% annualized). The effect of the “catch-up” provision is that, subject to the Total Return Requirement and deferral provisions discussed below, if Pre-Incentive Fee Net Investment Income exceeds 2.5% in any fiscal quarter, the Adviser receives 20.0% of our Pre-Incentive Fee Net Investment Income as if a hurdle rate did not apply.

“Pre-Incentive Fee Net Investment Income” means interest income, dividend income and any other income (including any other fees, such as commitment, origination, structuring, diligence, managerial assistance and consulting fees or other fees that we receive from portfolio companies) accrued during the fiscal quarter, minus the Company’s operating expenses for the quarter (including the Base Management Fee, expenses payable under the Administration Agreement and any interest expense and any distributions paid on any issued and outstanding preferred stock, but excluding the Incentive Fee). Pre-incentive fee net investment income includes, in the case of investments with a deferred interest feature (such as OID, debt instruments with PIK interest and zero coupon securities), accrued income that we have not yet received in cash.

Pre-Incentive Fee Net Investment Income does not include any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation.

No Income-Based Fee is payable under the Advisory Agreement except to the extent 20.0% of the cumulative net increase in net assets resulting from operations over the fiscal quarter for which fees are being calculated and the Lookback Period (as defined below) exceeds the cumulative Incentive Fees accrued and/or paid for the Lookback Period. The “cumulative net increase in net assets resulting from operations” is the amount, if positive, of the sum of Pre-Incentive Fee Net Investment Income, realized gains and losses and unrealized appreciation and depreciation of the Company for the then current fiscal quarter and the Lookback Period. The “Lookback Period” means (1) through December 31, 2024, the period that commences on the last day of the fiscal quarter in which the Advisory Agreement became effective and ends on the last day of the fiscal quarter immediately preceding the fiscal quarter for which the Income-Based Fee is being calculated, and (2) after December 31, 2024, the eleven fiscal quarters immediately preceding the fiscal quarter for which the Income-Based Fee is being calculated.

For the three months ended March 31, 2025, the Company incurred no Income-Based Fees. As of March 31, 2025, $501,955 in incentive fees related to Income-Based Fees incurred by the Company were payable to the Adviser, of which fees of $- are payable and fees of $501,955 generated from deferred interest (i.e., PIK and certain discount accretion) are not payable until such amounts are received in cash. For the three months ended March 31, 2024, the Company incurred no Income-Based Fees. As of December 31, 2024, $501,955 in incentive fees related to Income-Based Fees incurred by the Company are currently payable to the Adviser, of which fees of $- are payable and fees of $501,955 generated from deferred interest (i.e., PIK and certain discount accretion) are not payable until such amounts are received in cash. Any voluntary waivers of the incentive fee in no way implies that the Adviser will agree to waive any incentive fee in any future period. Any portion of the incentive fees waived are not subject to recapture.

Under the Advisory Agreement, the Capital Gains Fee is determined and payable in arrears as of the end of each fiscal year (or upon termination of the Advisory Agreement, as of the termination date), commencing with the fiscal year ended June 30, 2021, and is equal to 20.0% of our cumulative aggregate realized capital gains from the Commencement Date through the end of that fiscal year, computed net of the Company’s aggregate cumulative realized capital losses and our aggregate cumulative unrealized capital depreciation through the end of such year, less the aggregate amount of any previously paid Capital Gains Fees. If such amount is negative, then no Capital Gains Fee will be payable for such year. Additionally, if the Advisory Agreement is terminated as of a date that is not a fiscal year end, the termination date will be treated as though it were a fiscal year end for purposes of calculating and paying the Capital Gains Fee.

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As required by U.S. GAAP, we accrue the Capital Gains Fee on unrealized gains. This accrual reflects the Incentive Fees that would be payable to the Adviser if our entire investment portfolio was liquidated at its fair value as of the balance sheet date even though the Adviser is not entitled to an Incentive Fee with respect to unrealized gains unless and until such gains are actually realized. There can be no assurance that such unrealized capital appreciation will be realized in the future. Accordingly, the amount of the accrued Capital Gains Fee at a reporting date may vary from the Capital Gains Fee that is ultimately realized, and the differences could be material.

As of March 31, 2025 and December 31, 2024, there was no Capital Gains Fee accrued, earned or payable to the Adviser under the Advisory Agreement.

The Advisory Agreement provides that, absent willful misfeasance, bad faith or gross negligence in the performance of the Adviser’s duties or by reason of the reckless disregard of its duties and obligations under the Advisory Agreement, the Adviser and its officers, managers, partners, agents, employees, controlling persons and members, and any other person or entity affiliated with it, are entitled to indemnification from the Company for any damages, liabilities, costs and expenses (including reasonable attorneys’ fees and amounts reasonably paid in settlement) arising from the rendering of the Adviser’s services under the Advisory Agreement or otherwise as the Adviser.

Mr. Mauer holds an approximate 17% interest in the Adviser. Investcorp holds an approximate 83% ownership interest in the Adviser. Pursuant to the Advisory Agreement, the Company has agreed to pay to the Adviser a Base Management Fee and an Incentive Fee. Mr. Mauer, an interested member of the Board, has a direct or indirect pecuniary interest in the Adviser. The Incentive Fee will be computed and paid on income that we may not have yet received in cash at the time of payment. This fee structure may create an incentive for the Adviser to invest in certain types of speculative securities. Additionally, the Company will rely on investment professionals from the Adviser to assist the Board with the valuation of the Company’s portfolio investments. The Adviser’s Base Management Fee and Incentive Fee is based on the value of our investments and, therefore, there may be a conflict of interest when personnel of the Adviser are involved in the valuation process for the Company’s portfolio investments.

Administration Agreement

Pursuant to the Administration Agreement, the Adviser furnishes the Company with office facilities and equipment and provides it with the clerical, bookkeeping, recordkeeping and other administrative services necessary to conduct day-to-day operations. Under the Administration Agreement, the Adviser performs, or oversees the performance of the Company’s required administrative services, which includes, among other things, being responsible for the financial records which it is required to maintain and preparing reports to its stockholders and reports filed with the SEC. In addition, the Adviser assists the Company in determining and publishing its net asset value, oversees the preparation and filing of its tax returns and the printing and dissemination of reports and other materials to its stockholders, and generally oversees the payment of its expenses and the performance of administrative and professional services rendered to it by others. Under the Administration Agreement, the Adviser also provides managerial assistance on the Company’s behalf to those portfolio companies that have accepted its offer to provide such assistance. In addition, the Adviser may satisfy certain of its obligations to the Company under the Administration Agreement through the services agreement with Investcorp International Inc., an affiliate of Investcorp, including supplying the Company with accounting and back-office professionals upon the request of the Adviser.

The Company reimburses the Administrator or its affiliates for amounts paid or costs borne that properly constitute Company expenses as set forth in the Administration Agreement. Payments under the Administration Agreement equal an amount based upon the Company’s allocable portion (subject to the review of the Company’s board of directors) of the Adviser’s overhead in performing its obligations under the Administration Agreement, including rent and the allocable portion of the cost of the Company’s chief financial officer and chief compliance officer and their respective staffs. The Company incurred costs of $254,023 under the Administration Agreement for the three months ended March 31, 2025. The Company incurred costs of $225,856 under the Administration Agreement for the three months ended March 31, 2024. As of March 31, 2025 and December 31, 2024, the Company recorded an Allocation of Administrative Costs from Adviser Payable of $281,895 and $27,868, respectively, reported within Accrued Expenses and Other Liabilities on the Consolidated Statements of Assets and Liabilities for reimbursement of expenses owed to the Adviser under the Administration Agreement.

Co-investment Exemptive Relief

On July 20, 2021, the SEC issued an order, which superseded a prior order issued on March 19, 2019, granting the Company’s application for exemptive relief to co-invest, subject to the satisfaction of certain conditions, in certain private placement transactions with other funds managed by the Adviser or its affiliates and any future funds that are advised by the Adviser or its affiliated investment advisers (the “Exemptive Relief”). Under the terms of the Exemptive Relief, in order for the Company to participate in a co-investment transaction a “required majority” (as defined in Section 57(o) of the 1940 Act) of the directors who are not “interested persons” of the Company, as defined in Section 2(a)(19) of the 1940 Act (each, an “Independent Director”) must conclude that (i) the terms of the proposed transaction, including the consideration to be paid, are reasonable and fair to the Company and its stockholders and do not

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involve overreaching in respect of the Company or its stockholders on the part of any person concerned, and (ii) the proposed transaction is consistent with the interests of the Company’s stockholders and is consistent with the Company’s investment objectives and strategies.

License Agreement

The Company has entered into a license agreement with the Adviser under which the Adviser has agreed to grant the Company a non-exclusive, royalty-free license to use the name “Investcorp.” Under this agreement, the Company has a right to use the “Investcorp” name for so long as the Adviser or one of its affiliates remains the Company’s investment adviser. Other than with respect to this limited license, the Company has no legal right to the “Investcorp” name. This license agreement will remain in effect for so long as the Advisory Agreement with the Adviser is in effect and Investcorp is the majority owner of the Adviser.

Note 8. Directors’ Fees

Each Independent Director receives (i) an annual fee of $75,000, and (ii) $2,500 plus reimbursement of reasonable out-of-pocket expenses incurred in connection with attending in person or telephonically each regular board of directors meeting and each special telephonic meeting. Each Independent Director also receives $1,000 plus reimbursement of reasonable out-of-pocket expenses incurred in connection with each committee meeting attended in person and each telephonic committee meeting. The chairperson of the audit committee receives an additional annual fee of $7,500. The chairperson(s) of the valuation committee, the nominating and corporate governance committee and the compensation committee receives an additional annual fee of $2,500, $2,500 and $2,500, respectively. The Company has obtained directors’ and officers’ liability insurance on behalf of the Company’s directors and officers. For the three months ended March 31, 2025, the Company recorded directors’ fees of $76,500, of which $76,500 was payable at March 31, 2025. For the three months ended March 31, 2024, the Company recorded directors’ fees of $75,157, of which $81,323 was payable at December 31, 2024.

Note 9. Net Change in Net Assets Resulting from Operations Per Share

Basic earnings per share is computed by dividing earnings available to common stockholders by the weighted average number of shares outstanding during the period. Other potentially dilutive common shares, and the related impact to earnings, are considered when calculating earnings per share on a diluted basis.

The following table sets forth the computation of the weighted average basic and diluted net increase in net assets per share from operations:

	For the three months ended March 31,
Basic and Diluted Net Increase (Decrease) in Net Assets Per Share:	2025	2024
Net increase (decrease) in net assets resulting from operations	$2,206,292	$2,411,740
Weighted average shares of common stock outstanding	14,412,994	14,396,951
Basic/diluted net increase (decrease) in net assets from operations per share	$0.15	$0.17

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Note 10. Distributions

The following table reflects the distributions declared on shares of the Company’s common stock since July 1, 2022. Stockholders of record as of each respective record date were entitled to receive the distribution:

Declaration Date	Record Date	Payment Date	Amount per Share
August 25, 2021	September 24, 2021	October 14, 2021	$0.15
November 3, 2021	December 10, 2021	January 4, 2022	$0.15
February 3, 2022	March 11, 2022	March 31, 2022	$0.15
May 5, 2022	June 17, 2022	July 8, 2022	$0.15
August 25, 2022	September 23, 2022	October 14, 2022	$0.15
November 11, 2022	December 16, 2022	January 10, 2023	$0.13
November 11, 2022*	December 16, 2022	January 10, 2023	$0.02
February 2, 2023	March 10, 2023	March 30, 2023	$0.13
February 2, 2023*	March 10, 2023	March 30, 2023	$0.02
May 4, 2023	June 16, 2023	July 7, 2023	$0.13
May 4, 2023*	June 16, 2023	July 7, 2023	$0.05
September 14, 2023	October 12, 2023	November 2, 2023	$0.13
September 14, 2023*	October 12, 2023	November 2, 2023	$0.02
November 9, 2023	December 14, 2023	January 8, 2024	$0.12
November 9, 2023*	December 14, 2023	January 8, 2024	$0.03
February 8, 2024	March 15, 2024	April 5, 2024	$0.12
February 8, 2024*	March 15, 2024	April 5, 2024	$0.03
April 12, 2024	May 26, 2024	June 14, 2024	$0.12
April 12, 2024*	May 26, 2024	June 14, 2024	$0.03
September 18, 2024	October 16, 2024	November 6, 2024	$0.12
November 6, 2024	December 20, 2024	January 8, 2025	$0.12
March 20, 2025	April 25, 2025	May 16, 2025	$0.12

* Supplemental distribution

The following table reflects, for U.S. federal income tax purposes, the sources of the cash dividend distributions that the Company has paid on its common stock during the three months ended March 31, 2025 and March 31, 2024:

	Three months ended March 31,
	2025			2024
		Distribution Amount	Percentage		Distribution Amount	Percentage
Ordinary income and short-term capital gains	$	1,729,684	100%	$	2,159,568	100%
Long-term capital gains		—	—		—	—
Total	$	1,729,684	100%	$	2,159,568	100%

The figures in the above table are estimates based on the Company’s year-to-date activity. The tax status of distributions for a tax year depends on the Company’s total amount of taxable income for the entire year, therefore, the tax status cannot be confirmed until after the end of the tax year. Accordingly, the Company’s distributions for the tax year may be re-characterized later based upon subsequent events. As applicable, the Company reports the actual tax character of its distributions for U.S. federal income tax purposes annually to stockholders on Internal Revenue Service Form 1099-DIV issued after the end of the year. The Company’s Form 10-KT for the Transition Period ended December 31, 2024 will also include information regarding the actual components and tax treatment of all the Company’s distributions for the fiscal year 2024. Because each stockholder’s tax status is unique, stockholders should consult their tax advisor regarding this distribution notice.

Note 11. Share Transactions

The following table summarizes the total shares issued and repurchased for the three months ended March 31, 2025 and March 31, 2024.

	Three months ended March 31,
	2025			2024
	Shares	Amount		Shares	Amount
Balance at beginning of period	14,406,244	$	205,859,495	14,394,916	$	205,823,153
Issuance of common shares	—		—	—		—
Reinvestments of stockholder distributions	7,789		22,715	2,205		7,810
Share repurchases	—		—	—		—
Balance at end of period	14,414,033	$	205,882,210	14,397,121	$	205,830,963

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Note 12. Financial Highlights

The following represents the per share data and the ratios to average net assets for the Company:

	For the three months ended March 31,
	2025	2024
Per Share Data:(1)
Net asset value, beginning of period	$5.39	$5.48
Net investment income	0.04	0.14
Net realized and unrealized gains (losses)	0.11	0.02
Net increase (decrease) in net assets resulting from operations	0.15	0.16
Capital transactions(2)
Dividends from net investment income	(0.12)	(0.15)
Distributions from net realized gains	—	—
Net decrease in net assets resulting from capital transactions	(0.12)	(0.15)
Net asset value, end of period	$5.42	$5.49
Market value per share, end of period	$3.21	$3.11
Total return based on market value(3)	5.94%	(2.06)%
Shares outstanding at end of period	14,414,033	14,397,121
Ratio/Supplemental Data:
Net assets, at end of year	$78,101,453	$79,100,965
Ratio of total expenses to average net assets(5)	20.00%	23.62%
Ratio of net expenses to average net assets(5)	19.61%	23.12%
Ratio of interest expense and fees and amortization of deferred debt issuance costs to average net assets(5)	10.34%	11.85%
Ratio of net investment income before fee waiver to average net assets(5)	2.76%	10.09%
Ratio of net investment income after fee waiver to average net assets(5)	3.14%	10.59%
Total Borrowings	$121,000,000	$122,500,000
Asset Coverage Ratio(6)	1.65	1.65
Portfolio Turnover Rate(4)	3%	21%

(1)All per share data activity is calculated based on the weighted average shares outstanding for the relevant period, except net increase (decrease) in net assets from capital share transactions, which is based on the common shares outstanding as of the relevant balance sheet date.

(2)The per share data for dividends and distributions declared reflects the actual amount of the dividends and distributions declared per share during the period.

(3)Total returns are historical and are calculated by determining the percentage change in the market value with all dividends and distributions, if any, reinvested. Dividends and distributions are assumed to be reinvested at prices obtained under the company’s dividend reinvestment plan. Total investment return does not reflect sales load.

(4)Portfolio turnover rate is calculated using the lesser of year-to-date sales or year-to-date purchases over the average of the invested assets at fair value. Portfolio turnover rates that cover less than a full period are not annualized.

(5)Annualized.

(6)Asset coverage ratio is equal to (i) the sum of (A) net assets at the end of the period and (B) debt outstanding at the end of the period, divided by (ii) total debt outstanding at the end of the period.

Total return is calculated based on a time-weighted rate of return methodology for the stockholders and is not annualized. Total return is reflected after all investment-related and operating expenses. An individual stockholder’s return may vary from these returns based on the timing of capital transactions. The ratios to average stockholders’ capital are calculated based on the monthly average stockholders’ capital during the period. Credit facility related expenses include interest expense and amortization of deferred debt issuance costs.

Note 13. Other Fee Income

The other fee income consists of structuring fee income, amendment fee income and royalty income. The following tables summarize the Company’s other fee income for the three months ended March 31, 2025 and March 31, 2024:

	For the three months ended March 31,
	2025	2024
Amendment Fee	$—	$16,271
Prepayment Fee Income	77,112	38,095
Other Fees	43,912	87,981
Other Fee Income	$121,024	$142,347

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Note 14. Tax Information

As of March 31, 2025 and December 31, 2024, the Company’s aggregate investment unrealized appreciation and depreciation based on cost for U.S. federal income tax purposes were as follows:

	March 31, 2025	December 31, 2024
Tax cost	$198,001,531	$200,405,331
Gross unrealized appreciation	16,690,121	15,986,982
Gross unrealized depreciation	(22,243,782)	(24,775,355)
Net unrealized investment depreciation	$(5,553,661)	$(8,788,373)

Note 15. Segment Reporting

An operating segment is defined by ASC 280 as a component of a public entity that engages in business activities from which it may recognize revenues and incur expenses, has operating results that are regularly reviewed by the public entity’s CODM to make decisions about resources to be allocated to the segment and assess its performance, and has discrete financial information available. The Company’s president and chief executive officer, and the chief financial officer act as the Company’s CODM. The Company represents a single operating segment, as the CODM monitors the operating results of the Company as a whole and the Company’s long-term strategic asset allocation is pre-determined in accordance with the terms of its offering memorandum, based on a defined investment strategy which is executed by the Company’s portfolio managers as a team. The financial information in the form of changes in net assets (i.e. net increase in net assets resulting from operations), which is used by the CODM to make resource allocation decisions for the fund’s single segment and as a key metric in determining the amount of dividends to be distributed to the Company's shareholders, is consistent with that presented within the Company’s consolidated financial statements. Segment assets are reflected on the accompanying Consolidated Statements of Assets and Liabilities as “total assets” and significant segment expenses are listed on the accompanying Consolidated Statements of Operations.

Note 16. Subsequent Events

The Company has evaluated the need for disclosures and/or adjustments resulting from subsequent events through the date the consolidated financial statements were issued.

Subsequent to March 31, 2025 and through May 13, 2025, the Company invested a total of $2.0 million, at cost, which included investments in two existing portfolio companies. As of May 13, 2025, the Company had investments in 43 portfolio companies.

The Company’s dividend framework provides a quarterly base dividend and may be supplemented, at the discretion of the Company’s board of directors, by additional dividends as determined to be available by the Company’s net investment income and performance during the quarter.

On April 15, 2025, the Company’s board of directors declared a distribution for the quarter ended June 30, 2025 of $0.12 per share payable on June 14, 2025 to stockholders of record as of May 24, 2025.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Some of the statements in this quarterly report on Form 10-Q constitute forward-looking statements, which relate to future events or our future performance or financial condition. These statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including without limitation the risks, uncertainties and other factors we identify in “Risk Factors” in this Quarterly Report on Form 10-Q, in our most recent Transition Report on Form 10-KT under Part I, Item 1A, and in our other filings with the SEC that we make from time to time. The forward-looking statements contained in this quarterly report on Form 10-Q involve risks and uncertainties, and include statements regarding the following, without limitation:

•our, or our portfolio companies’, future business, operations, operating results or prospects;

•our business prospects and the prospects of our portfolio companies;

•the return or impact of current and future investments;

•the impact of global health pandemics, such as the coronavirus pandemic or other large scale events, on our portfolio companies’ business and the global economy;

•our contractual arrangements and relationships with Investcorp and its affiliates;

•our contractual arrangements and relationships with lenders and other third parties;

•actual and potential conflicts of interest with the Adviser (as defined below);

•the dependence of our future success on the general economy, interest rates and the effects of each on the industries in which we invest;

•the impact of fluctuations in interest rates on our business;

•the elevating levels of inflation and its impact on our investment activities and the industries in which we invest;

•the ability of our portfolio companies to achieve their objectives or service their debt obligations to us;

•the use of borrowed money to finance a portion of our investments;

•the adequacy of our financing sources and working capital;

•the timing of cash flows, if any, from the operations of our portfolio companies;

•the ability of the Adviser to locate suitable investments for us and to monitor and administer our investments;

•the ability of the Adviser to attract and retain highly talented professionals;

•our ability to qualify and maintain our qualification as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code (the “Code”) and as a business development company (“BDC");

•our ability to obtain exemptive relief from the U.S. Securities and Exchange Commission (“SEC”);

•the effect of changes to tax legislation and our tax position and other legislative and regulatory changes; and

•the effect of new or modified laws or regulations governing our operations.

Such forward-looking statements may include statements preceded by, followed by or that otherwise include the words “may,” “might,” “will,” “intend,” “should,” “could,” “can,” “would,” “expect,” “believe,” “estimate,” “anticipate,” “predict,” “potential,” “plan” or similar words.

We have based the forward-looking statements included in this quarterly report on Form 10-Q on information available to us on the date of filing of this report. Although we believe that the assumptions on which these forward-looking statements are based are reasonable, any of those assumptions could prove to be inaccurate, and as a result, actual results and/or events could differ materially from those anticipated in our forward-looking statements, and future results could differ materially from historical performance. Important assumptions include, without limitation, our ability to originate new loans and investments, borrowing costs and levels of profitability and the availability of additional capital. In light of these and other uncertainties, the inclusion of a projection or forward-looking statement in this Quarterly Report on Form 10-Q should not be regarded as a representation by us that our plans and objectives will be achieved. You should not place undue reliance on these forward-looking statements, which apply only as of the date of this Quarterly Report on Form 10-Q.

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We undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by law or U.S. Securities and Exchange Commission (“SEC”) rules or regulations. You are advised to consult any additional disclosures that we may make directly to you or through reports that we file from time to time with the SEC, including our annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.

Overview

Investcorp Credit Management BDC, Inc. (“ICMB,” the “Company”, “us”, “we” or “our”), a Maryland corporation formed in May 2013, is a closed-end, externally managed, non-diversified management investment company that has elected to be regulated as a BDC under the 1940 Act. In addition, for U.S. federal income tax purposes, we have elected to be treated and intend to continue to qualify as a RIC under Subchapter M of the Code. On August 30, 2019, we changed our name from CM Finance Inc. to Investcorp Credit Management BDC, Inc. On September 18, 2024, the Company changed its fiscal year end from June 30 to December 31.

Our primary investment objective is to maximize total return to stockholders in the form of current income and capital appreciation by investing directly in debt and related equity of privately held middle market companies to help these companies fund acquisitions, growth or refinancing. We invest primarily in middle-market companies in the form of standalone first and second lien loans, unitranche loans and mezzanine loans. We may also invest in unsecured debt, bonds and in the equity of portfolio companies through warrants and other instruments.

CM Investment Partners LLC (the “Adviser”) serves as our investment adviser. On August 30, 2019, Investcorp Credit Management US LLC (“Investcorp”) acquired an approximate 76% ownership interest in the Adviser through the acquisition of the interests held by Stifel Venture Corp. (“Stifel”) and certain funds managed by Cyrus Capital and through a direct purchase of equity from the Adviser. On August 31, 2023, Investcorp acquired approximately an additional 7% ownership interest in the Adviser. On December 12, 2024, Investcorp assigned its ownership of the Adviser to IVC Credit Management Financing, LLC its parent entity and the entity that manages Investcorp’s US credit management regulated entities. Investcorp and its credit advisory affiliates are a leading global credit investment platform with assets under management of $21.2 billion as of March 31, 2025. Investcorp and its credit advisory affiliates manage funds which invest primarily in senior secured corporate debt issued by mid and large-cap corporations in Western Europe and the United States. The business has a strong track record of consistent performance and growth, employing approximately 50 investment professionals in London and New York. Investcorp is a subsidiary of Investcorp Holdings B.S.C. (“Investcorp Holdings”). Investcorp Holdings and its consolidated subsidiaries, including Investcorp, are referred to as “Investcorp Group”. Investcorp Group is a global provider and manager of alternative investments, offering such investments to its high-net-worth private and institutional clients on a global basis.

In connection with the Investcorp Transaction, on June 26, 2019, our board of directors, including all of the directors who are not “interested persons” of the Company, as defined in Section 2(a)(19) of the 1940 Act (each, an “Independent Director”), unanimously approved the Advisory Agreement and recommended that the Advisory Agreement be submitted to our stockholders for approval, which our stockholders approved at the Special Meeting of Stockholders held on August 28, 2019.

In addition, on June 26, 2019, we entered into a definitive stock purchase and transaction agreement with Investcorp BDC Holdings Limited (“Investcorp BDC”), an affiliate of Investcorp (the “Stock Purchase Agreement”), pursuant to which, following the initial closing under the Stock Purchase Agreement on August 30, 2019 (the “Closing”) and prior to the second anniversary of the date of the Closing, Investcorp BDC was required to purchase (i) 680,985 newly issued shares of our common stock, par value $0.001 per share, at the most recently determined net asset value per share of our common stock at the time of such purchase, as adjusted as necessary to comply with Section 23 of the 1940 Act, and (ii) 680,985 shares of our common stock in open-market or secondary transactions. Investcorp BDC has completed all required purchases under the Stock Purchase Agreement.

At the Closing, we entered into the Advisory Agreement with the Adviser, pursuant to which we have agreed to pay the Adviser a fee for investment advisory and management services consisting of two components — the Base Management Fee and the Incentive Fee. The Base Management Fee is equal to 1.75% of our gross assets, payable in arrears on a quarterly basis. The Incentive Fee, which provides the Adviser with a share of the income that it generates for the Company, has two components: the Income-Based Fee and the Capital Gains Fee. The Income-Based Fee is equal to 20.0% of pre-incentive fee net investment income, subject to an annualized hurdle rate of 8.0% with a “catch up” fee for returns between the 8.0% hurdle and 10.0%. The Capital Gains Fee is determined and payable in arrears as of the end of each fiscal year (or upon termination of the Advisory Agreement, as of the termination date), commencing with the fiscal year ended June 30, 2021, and is equal to 20.0% of the Company’s cumulative aggregate realized capital gains from the Commencement Date through the end of each fiscal year, computed net of the Company’s aggregate cumulative realized capital losses and the Company’s aggregate cumulative unrealized capital depreciation through the end of such year, less the aggregate amount of any previously paid Capital Gains Fees.

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We have entered into the Advisory Agreement and the Administration Agreement with the Adviser, pursuant to which the Adviser provides us with investment advisory and the administrative services necessary for our operations. See “Note 7. Agreements and Related Party Transactions” in the notes to our consolidated financial statements in this Quarterly Report on Form 10-Q for more information regarding the Advisory Agreement and Administration Agreement and the fees and expenses paid or reimbursed by us thereunder.

From time to time, we may form Taxable Subsidiaries to allow the Company to hold equity securities of portfolio companies organized as pass-through entities while continuing to satisfy the requirements applicable to a RIC under the Code. As of each of March 31, 2025 and December 31, 2024, we had no Taxable Subsidiaries.

We are generally permitted, under specified conditions, to issue multiple classes of indebtedness and one class of stock senior to our common stock if our asset coverage, as defined in the 1940 Act, is at least equal to 150% immediately after each such issuance.

On July 20, 2021, the SEC issued an order, which superseded a prior order issued on March 19, 2019, granting our application for exemptive relief to co-invest, subject to the satisfaction of certain conditions, in certain private placement transactions with other funds managed by the Adviser or its affiliates and any future funds that are advised by the Adviser or its affiliated investment advisers (the “Exemptive Relief”). Under the terms of the Exemptive Relief, in order for us to participate in a co-investment transaction a “required majority” (as defined in Section 57(o) of the 1940 Act) of our independent directors must conclude that (i) the terms of the proposed transaction, including the consideration to be paid, are reasonable and fair to us and our shareholders and do not involve overreaching in respect of us or our shareholders on the part of any person concerned, and (ii) the proposed transaction is consistent with the interests of our shareholders and is consistent with our investment objectives and strategies.

Market Developments

The current inflationary environment and uncertainty as to the probability of, and length and depth of a global recession could affect our portfolio companies. Government spending, government policies, including recent increases in certain interest rates by the U.S. Federal Reserve and other global central banks, the failures of certain regional banks earlier this year and the potential for disruptions in the availability of credit in the United States and elsewhere, in conjunction with other factors, including those described elsewhere in this Quarterly Report and in other filings we have made with the SEC, could affect our portfolio companies, our financial condition and our results of operations. We will continue to monitor the evolving market environment. In these circumstances, developments outside our control could require us to adjust our plan of operations and could impact our financial condition, results of operations or cash flows in the future. Despite these factors, we believe we and our portfolio are well positioned to manage the current environment. For additional information, see Part I, Item 1A. Risk Factors in our most recently filed Transition Report on Form 10-KT, as well as the risk factors listed in our subsequently filed Quarterly Reports on Form 10-Q.

Critical accounting estimates

Our discussion and analysis of our financial condition and results of operations are based upon our financial statements, which have been prepared in accordance with U.S. GAAP. The preparation of these consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Changes in the economic environment, financial markets and any other parameters used in determining such estimates could cause actual results to differ.

Understanding our accounting policies and the extent to which we use management’s judgment and estimates in applying these policies is integral to understanding our financial statements. We describe our most significant accounting policies in “Note 2. Significant Accounting Policies” in our consolidated financial statements included in our Transition Report on Form 10-KT for the fiscal period ended December 31, 2024 and in this Quarterly Report on Form 10-Q. Critical accounting policies are those that require the application of management’s most difficult, subjective or complex judgments, often because of the need to make estimates about the effect of matters that are inherently uncertain and that may change in subsequent periods. Management has utilized available information, including our past history, industry standards and the current economic environment, among other factors, in forming the estimates and judgments, giving due consideration to materiality. We have identified the valuation of our portfolio investments, including our investment valuation policy (which has been approved by our board of directors), as our critical accounting policy and estimates. The critical accounting policies should be read in conjunction with our risk factors in our Transition Report on Form 10-KT for the fiscal period ended December 31, 2024 and our subsequently filed Quarterly Reports on Form 10-Q. In addition to the discussion below, our critical accounting policies are further described in the notes to our consolidated financial statements.

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Valuation of portfolio investments

We value our portfolio investments at fair value based upon the principles and methods of valuation set forth in policies adopted by our board of directors. Fair value is defined as the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. Market participants are buyers and sellers in the principal (or most advantageous) market for the asset that (a) are independent of us, (b) are knowledgeable, having a reasonable understanding about the asset based on all available information (including information that might be obtained through due diligence efforts that are usual and customary), (c) are able to transact for the asset, and (d) are willing to transact for the asset or liability (that is, they are motivated but not forced or otherwise compelled to do so).

Investments for which market quotations are readily available are valued at such market quotations unless the quotations are deemed not to represent fair value. We generally obtain market quotations from recognized exchanges, market quotation systems, independent pricing services or one or more broker dealers or market makers.

Debt and equity securities for which market quotations are not readily available or for which market quotations are deemed not to represent fair value are valued at fair value as determined in good faith by our board of directors. Because a readily available market value for many of the investments in our portfolio is often not available, we value many of our portfolio investments at fair value as determined in good faith by our board of directors using a consistently applied valuation process in accordance with a documented valuation policy that has been reviewed and approved by our board of directors. Due to the inherent uncertainty and subjectivity of determining the fair value of investments that do not have a readily available market value, the fair value of our investments may differ significantly from the values that would have been used had a readily available market value existed for such investments and may differ materially from the values that we may ultimately realize. In addition, changes in the market environment and other events may have differing impacts on the market quotations used to value some of our investments than on the fair values of our investments for which market quotations are not readily available. Market quotations may also be deemed not to represent fair value in certain circumstances where we believe that facts and circumstances applicable to an issuer, a seller or purchaser, or the market for a particular security causes current market quotations not to reflect the fair value of the security. Examples of these events could include cases where a security trades infrequently, causing a quoted purchase or sale price to become stale, where there is a “forced” sale by a distressed seller, where market quotations vary substantially among market makers, or where there is a wide bid-ask spread or significant increase in the bid ask spread.

Those investments for which market quotations are not readily available or for which market quotations are deemed not to represent fair value are valued utilizing a market approach, an income approach, or both approaches, as appropriate. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities (including a business). The income approach uses valuation techniques to convert future amounts (for example, cash flows or earnings) to a single present amount (discounted). The measurement is based on the value indicated by current market expectations about those future amounts. In following these approaches, the types of factors that we may take into account in determining the fair value of our investments include, as relevant and among other factors: available current market data, including relevant and applicable market trading and transaction comparables, applicable market yields and multiples, security covenants, call protection provisions, information rights, the nature and realizable value of any collateral, the portfolio company’s ability to make payments, its earnings and discounted cash flows, the markets in which the portfolio company does business, comparisons of financial ratios of peer companies that are public, merger and acquisition comparables, our principal market (as the reporting entity) and enterprise values.

With respect to investments for which market quotations are not readily available, our board of directors undertakes a multi-step valuation process each quarter, as described below:

•our quarterly valuation process begins with each portfolio company or investment being initially valued by the members of the Adviser’s investment team responsible for the portfolio investment;

•preliminary valuation conclusions are then documented and discussed by senior management and the Adviser;

•on a periodic basis, at least once annually, the valuation for each portfolio investment is reviewed by an independent valuation firm engaged by our board of directors;

•the valuation committee of our board of directors then reviews these preliminary valuations and makes a recommendation to our board of directors regarding the fair value of each investment; and

•the board of directors then reviews and discusses these preliminary valuations and determines the fair value of each investment in our portfolio in good faith, based on the input of the Adviser, the independent valuation firm and the valuation committee.

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When valuing all of our investments, we strive to maximize the use of observable inputs and minimize the use of unobservable inputs. Inputs refer broadly to the assumptions that market participants would use in pricing an asset, including assumptions about risk. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of us. Unobservable inputs are inputs that reflect our assumptions about the assumptions market participants would use in pricing an asset or liability developed based on the best information available under the circumstances. The availability of observable inputs can vary depending on the financial instrument and is affected by a variety of factors. To the extent the valuation is based on models or inputs that are less observable, the determination of fair value requires more judgment. As markets change, new types of investments are made, or pricing for certain investments becomes more or less observable, management, with oversight from our board of directors, may refine our valuation methodologies to best reflect the fair value of our investments appropriately.

As of March 31, 2025, our investment portfolio, valued at fair value in accordance with our Board-approved valuation policy, represented 92.7% of our total assets, as compared to 92.6% of our total assets as of December 31, 2024.

See Note 2.j “Significant Accounting Policies – Investment Valuation” and Note 4. “Investments” in the notes to the consolidated financial statements included in our most recent Transition Report on Form 10-KT and in this Quarterly Report on Form 10-Q for more information on our valuation process.

Financing Facility

On August 23, 2021, we, through Investcorp Credit Management BDC SPV, LLC, our wholly-owned subsidiary, entered into a five-year, $115 million senior secured revolving credit facility (the “Capital One Revolving Financing”) with Capital One, N.A. (“Capital One”), which is secured by collateral consisting primarily of loans in our investment portfolio. On June 14, 2023, we amended the Capital One Revolving Financing to decrease the facility size from $115 million to $100 million. On January 17, 2024, we amended the Capital One Revolving Financing to (i) extend the maturity date to January 17, 2029, (ii) increase the applicable interest spreads under the Capital One Revolving Financing and (iii) extend the Scheduled Revolving Period End Date (as defined in the Capital One Revolving Financing) to January 17, 2027. The Capital One Revolving Financing, which will expire on January 17, 2029 (the “Maturity Date”), features a three-year reinvestment period and a two-year amortization period.

Effective January 17, 2024, borrowings under the Capital One Revolving Financing generally bear interest at a rate per annum equal to SOFR plus 3.10%. The default interest rate will be equal to the interest rate then in effect plus 2.00%. The Capital One Revolving Financing required the payment of an upfront fee of 1.125% ($1.3 million) of the available borrowings under the Capital One Revolving Financing at the closing, and requires the payment of an unused fee of (i) 0.75% annually for any undrawn amounts below 50% of the Capital One Revolving Financing, (ii) 0.50% annually for any undrawn amounts between 50% and 75% of the Capital One Revolving Financing, and (iii) 0.25% annually for any undrawn amounts above 75% of the Capital One Revolving Financing. Borrowings under the Capital One Revolving Financing are based on a borrowing base. The Capital One Revolving Financing generally requires payment of interest and fees on a quarterly basis. All outstanding principal is due on the Maturity Date. The Capital One Revolving Financing also requires mandatory prepayment of interest and principal upon certain events.

On November 19, 2024, we amended the Capital One Revolving Financing to provide for, among other things, a decrease of the applicable interest spreads under the Capital One Revolving Financing from SOFR plus 3.10% to SOFR plus 2.50%, and to make amendments to the concentration limits and other fees, and certain other amendments.

As of March 31, 2025 and December 31, 2024, there were $56.0 million and $58.5 million in borrowings outstanding under the Capital One Revolving Financing, respectively.

Notes due 2026

On March 31, 2021, we closed the public offering of $65.0 million in aggregate principal amount of 4.875% notes due 2026 (the “2026 Notes”). The total net proceeds to us from the 2026 Notes after deducting underwriting discounts and commissions of approximately $1.3 million and offering expenses of approximately $215,000, were approximately $63.1 million.

The 2026 Notes will mature on April 1, 2026, unless previously redeemed or repurchased in accordance with their terms, and bear interest at a rate of 4.875%. The 2026 Notes are our direct unsecured obligations and rank pari passu, which means equal in right of payment, with all of our outstanding and future unsecured, unsubordinated indebtedness. Because the 2026 Notes are not secured by any of our assets, they are effectively subordinated to all of our existing and future secured indebtedness (including indebtedness that is initially unsecured as to which we subsequently grant a security interest), to the extent of the value of the assets securing such indebtedness. The 2026 Notes are structurally subordinated to all existing and future indebtedness and other obligations of any of our existing or future subsidiaries and financing vehicles, including, without limitation, borrowings under the Capital One Revolving

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Financing. The 2026 Notes are exclusively our obligations and not of any of our subsidiaries. None of our subsidiaries is a guarantor of the 2026 Notes and the 2026 Notes will not be required to be guaranteed by any subsidiary we may acquire or create in the future.

The 2026 Notes may be redeemed in whole or in part at any time or from time to time at our option, upon not less than 30 days nor more than 60 days written notice by mail prior to the date fixed for redemption thereof, at a redemption price (as determined by us) equal to the greater of the following amounts, plus, in each case, accrued and unpaid interest to, but excluding, the redemption date: (1) 100% of the principal amount of the 2026 Notes to be redeemed or (2) the sum of the present values of the remaining scheduled payments of principal and interest (exclusive of accrued and unpaid interest to the date of redemption) on the 2026 Notes to be redeemed, discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) using the applicable Treasury Rate (as defined in the 2026 Notes Indenture (as defined below)) plus 50 basis points; provided, however, that if we redeem any 2026 Notes on or after January 1, 2026 (the date falling three months prior to the maturity date of the 2026 Notes), the redemption price for the 2026 Notes will be equal to 100% of the principal amount of the 2026 Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the date of redemption; provided, further, that no such partial redemption shall reduce the portion of the principal amount of a 2026 Note not redeemed to less than $2,000. Interest on the 2026 Notes is payable semi-annually on April 1 and October 1 of each year, commencing October 1, 2021. We may from time to time repurchase 2026 Notes in accordance with the 1940 Act and the rules promulgated thereunder. As of March 31, 2025 and December 31, 2024, the outstanding principal balance of the 2026 Notes was approximately $65.0 million.

The indenture under which the 2026 Notes are issued (the “2026 Notes Indenture”) contains certain covenants, including covenants requiring us to comply with Section 18(a)(1)(A) as modified by Section 61(a)(2) of 1940 Act, or any successor provisions, to comply with Section 18(a)(1)(B) as modified by Section 61(a)(2) of the 1940 Act, or any successor provisions but giving effect to any no-action relief granted by the SEC to another BDC and upon which we may reasonably rely (or to us if we determine to seek such similar no-action or other relief), and to provide financial information to the holders of the 2026 Notes and the trustee if we should no longer be subject to the reporting requirements under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) These covenants are subject to important limitations and exceptions that are set forth in the 2026 Notes Indenture.

Investments

Our level of investment activity can and does vary substantially from period to period depending on many factors, including the amount we have available to invest as well as the amount of debt and equity capital available to middle-market companies, the level of merger and acquisition activity, the general economic environment and the competitive environment for the types of investments we make.

As a BDC, we are required to comply with certain regulatory requirements. For instance, as a BDC, we may not acquire any assets other than “qualifying assets” specified in the 1940 Act unless, at the time the acquisition is made, at least 70% of our total assets are qualifying assets (with certain limited exceptions). Qualifying assets include investments in “eligible portfolio companies.” Under the relevant SEC rules, the term “eligible portfolio company” includes all private companies, companies whose securities are not listed on a national securities exchange, and certain public companies that have listed their securities on a national securities exchange and have a market capitalization of less than $250 million. In each case, the company must be organized in the United States. As of March 31, 2025, the Company did not hold any non-qualifying assets in its portfolio.

To qualify as a RIC, we must, among other things, meet certain source-of-income and asset diversification requirements. As a RIC, we generally will not have to pay corporate-level U.S. federal income taxes on any income we distribute to our stockholders.

Revenues

We generate revenues primarily in the form of interest on the debt we hold. We also generate revenue from royalty income, dividends on our equity interests and capital gains on the sale of warrants and other debt or equity interests that we acquire. Our investments in fixed income instruments generally have an expected maturity of three to five years, although we have no lower or upper constraint on maturity. Interest on our debt investments is generally payable quarterly or semi-annually. Payments of principal of our debt investments may be amortized over the stated term of the investment, deferred for several years or due entirely at maturity. In some cases, our debt investments and preferred stock investments may defer payments of cash interest or dividends or PIK interest. Any outstanding principal amount of our debt investments and any accrued but unpaid interest will generally become due at the maturity date. In addition, we may generate revenue in the form of prepayment fees, commitment, origination, structuring or due diligence fees, fees for providing significant managerial assistance, consulting fees and other investment related income.

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Expenses

Our primary operating expenses include the payment of the Base Management Fee and, depending on our operating results, the Incentive Fee under the Advisory Agreement, as well as the payment of reimbursable expenses to the Adviser for the costs and expenses incurred by the Adviser in performing its obligations and providing personnel and facilities under the Administration Agreement, such as our allocable portion of overhead expenses, including rent and the allocable portion of the cost of our chief financial officer and chief compliance officer and their respective staffs. The Base Management Fee and Incentive Fee compensation under the Advisory Agreement remunerates the Adviser for work in identifying, evaluating, negotiating, closing and monitoring our investments. We bear all other out-of-pocket costs and expenses of our operations and transactions, including, without limitation, those relating to:

•our organization and our offering;

•valuing our assets and calculating our net asset value per share (including the cost and expenses of any independent valuation firm(s));

•fees and expenses incurred by the Adviser or payable to third parties, including agents, consultants or other advisors, in monitoring financial and legal affairs for us and in monitoring our investments and performing due diligence on our prospective portfolio companies or otherwise relating to, or associated with, evaluating and making investments;

•interest payable on debt, if any, incurred to finance our investments and expenses related to unsuccessful portfolio acquisition efforts;

•offerings of our common stock and other securities;

•administration fees and expenses, if any, payable under the Administration Agreement (including our allocable portion of the Adviser’s overhead in performing its obligations under the Administration Agreement, including rent, equipment and the allocable portion of the cost of our chief compliance officer, chief financial officer and his staffs’ compensation and compensation-related expenses);

•transfer agent and custody fees and expenses;

•federal and state registration fees;

•costs of registration and listing our shares on any securities exchange;

•federal, state and local taxes;

•independent directors’ fees and expenses;

•costs of preparing and filing reports or other documents required by the SEC or other regulators;

•costs of any reports, proxy statements or other notices to stockholders including printing costs;

•costs associated with individual or group stockholders;

•our allocable portion of the costs and fees associated with any fidelity bond, directors and officers/errors and omissions liability insurance, and any other insurance premiums;

•direct costs and expenses of administration and operation, including printing, mailing, long distance telephone, copying, secretarial and other staff, independent auditors and outside legal costs; and

•all other non-investment advisory expenses incurred by us or the Adviser in connection with administering our business.

Portfolio and Investment Activity

Portfolio composition

We invest primarily in middle-market companies in the form of standalone first and second lien loans, unitranche loans and mezzanine loans. We may also invest in unsecured debt, bonds and in the equity of portfolio companies through warrants and other instruments.

As of March 31, 2025, our investment portfolio of $192.4 million (at fair value) consisted of debt and equity investments in 43 portfolio companies, of which 77.04% were first lien investments and 22.96% were equities, warrants and other positions. At March 31, 2025, our average and largest portfolio company investment at fair value was $4.5 million and $13.6 million, respectively.

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As of December 31, 2024, our investment portfolio of $191.6 million (at fair value) consisted of debt and equity investments in 43 portfolio companies, of which 81.17% were first lien investments and 18.83% were in equities, warrants and other positions. At December 31, 2024, our average and largest portfolio company investment at fair value was $4.5 million and $15.4 million, respectively.

As of March 31, 2025 and December 31, 2024, our average total yield of debt and income producing securities weighted by amortized cost (which includes interest income and amortization of fees and discounts) was 11.02% and 10.60% respectively. As of March 31, 2025 and December 31, 2024, our average total yield on the total portfolio weighted by amortized cost (which includes interest income and amortization of fees and discounts) was 8.73% and 8.72%, respectively. The weighted average total yield was computed using an internal rate of return calculation of our debt investments based on contractual cash flows, including interest and amortization payments, and, for floating rate investments, the spot SOFR, as applicable, as of March 31, 2025, of all of our debt investments. The weighted average total yield of our debt investments is not the same as a return on investment for our stockholders but, rather, relates to a portion of our investment portfolio and is calculated before payment of all of our fees and expenses, including any sales load paid in connection with an offering of our securities. There can be no assurance that the weighted average total yield will remain at its current level.

We use GICS codes to identify the industry groupings of our portfolio companies. At March 31, 2025 and December 31, 2024, respectively, the industry composition of our portfolio in accordance with the GICS codes at fair value, as a percentage of our total portfolio, was as follows:

	Percentage of Total Portfolio at March 31, 2025	Percentage of Total Portfolio at December 31, 2024
Professional Services	15.47%	14.37%
Containers & Packaging	9.15%	10.52%
Trading Companies & Distributors	8.55%	8.64%
Commercial Services & Supplies	7.99%	6.67%
IT Services	7.89%	7.14%
Insurance	7.66%	7.77%
Diversified Consumer Services	6.94%	7.07%
Specialty Retail	5.37%	7.12%
Food Products	4.61%	4.67%
Entertainment	4.05%	3.32%
Household Durables	3.94%	4.00%
Software	3.93%	3.72%
Health Care Providers & Services	3.12%	3.13%
Interactive Media & Services	2.83%	2.86%
Consumer Staples Distribution & Retail	2.54%	3.02%
Construction & Engineering	1.98%	1.93%
Hotels, Restaurants & Leisure	1.54%	1.56%
Automobile Components	1.50%	1.57%
Electronic Equipment, Instruments & Components	0.94%	0.92%
Total	100.00%	100.00%

During the three months ended March 31, 2025, we made investments in one new portfolio company and two existing portfolio companies. These investments totaled approximately $5.1 million. Of the new investments, 86.71% consisted of first lien investments and 13.29% were in equity, warrants, and other investments.

During the six months ended December 31, 2024, we made investments in five new portfolio companies and five existing portfolio companies. These investments totaled approximately $23.0 million. Of these new investments, 99.80% consisted of first lien investments and 0.20% were in equity, warrants, and other investments.

At March 31, 2025, 98.2% of our debt investments bore interest based on floating rates based on indices such as SOFR, the Euro Interbank Offered Rate, the Federal Funds Rate of the Prime Rate (in certain cases, subject to interest rate floors), and 1.8% bore interest at fixed rates. At December 31, 2024, 96.4% of our debt investments bore interest based on floating rates based on indices such as SOFR, the Euro Interbank Offered Rate, the Federal Funds Rate or the Prime Rate (in certain cases, subject to interest rate floors), and 3.6% bore interest at fixed rates.

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Our investment portfolio may contain loans that are in the form of lines of credit or revolving credit facilities, which require us to provide funding when requested by portfolio companies in accordance with the terms of the underlying loan agreements. As of March 31, 2025, we had eight investments with aggregate unfunded commitments of $5.7 million, and as of December 31, 2024, we had eight investments with aggregate unfunded commitments of $4.6 million. As of March 31, 2025, we had sufficient liquidity (through cash on hand and available borrowings under our Capital One Revolving Financing) to fund such unfunded loan commitments should the need arise.

Asset Quality

In addition to various risk management and monitoring tools, we use the Adviser’s investment rating system to characterize and monitor the credit profile and expected level of returns on each investment in our portfolio. This investment rating system uses a five-level numeric rating scale. The following is a description of the conditions associated with each investment rating:

Investment Rating 1	Investments that are performing above expectations, and whose risks remain favorable compared to the expected risk at the time of the original investment.
Investment Rating 2	Investments that are performing within expectations and whose risks remain neutral compared to the expected risk at the time of the original investment. Generally, all new loans are initially rated 2.
Investment Rating 3	Investments that are performing below expectations and that require closer monitoring, but where no loss of return or principal is expected. Portfolio companies with a rating of 3 may be out of compliance with their financial covenants.
Investment Rating 4	Investments that are performing substantially below expectations and whose risks have increased substantially since the original investment. These investments are often in workout. Investments with a rating of 4 will be those for which some loss of return but no loss of principal is expected.
Investment Rating 5	Investments that are performing substantially below expectations and whose risks have increased substantially since the original investment. These investments are almost always in workout. Investments with a rating of 5 will be those for which some loss of return and principal is expected.

If the Adviser determines that an investment is underperforming, or circumstances suggest that the risk associated with a particular investment has significantly increased, the Adviser will increase its monitoring intensity and prepare regular updates for the investment committee, summarizing current operating results and material impending events and suggesting recommended actions. While the investment rating system identifies the relative risk for each investment, the rating alone does not dictate the scope and/or frequency of any monitoring that will be performed. The frequency of the Adviser’s monitoring of an investment will be determined by a number of factors, including, but not limited to, the trends in the financial performance of the portfolio company, the investment structure and the type of collateral securing the investment.

The following table shows the investment rankings of the investments in our portfolio, according to the Adviser’s investment rating system:

	As of March 31, 2025			As of December 31, 2024
Investment Rating	Fair Value	% of Portfolio	Number of Investments	Fair Value	% of Portfolio	Number of Investments
1	$14,075,083	7.3%	3	$13,652,523	7.1%	3
2	147,031,812	76.4%	51	143,015,256	74.6%	47
3	27,655,548	14.4%	11	27,867,563	14.6%	11
4	—	—	—	—	—	—
5	3,685,427	1.9%	7	7,081,616	3.7%	10
Total	$192,447,870	100.0%	72	$191,616,958	100.0%	71

Results of Operations

Comparison of the three months ended March 31, 2025 and March 31, 2024

Investment income

Investment income, attributable primarily to interest and fees on our debt investments, for the three months ended March 31, 2025 decreased to $4.4 million from $6.6 million for the three months ended March 31, 2024 primarily related to a decrease in interest income due to lower index and interest rates and a decrease in PIK interest income primarily related to lower PIK rates and principal balances on our investments in Crafty Apes, LLC subsequent to the restructuring in November 2024, partially offset by increased Dividend income related to the CF Arch Holdings LLC - Equity Interest and increased PIK dividend income related to Fusion Connect Series A Preferred Stock.

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Expenses

Expenses for the three months ended March 31, 2025 decreased to $3.7 million compared to $4.4 million for the three months ended March 31, 2024, primarily due to a decrease in interest expense due to lower index rates in 2025 compared to 2024, a decrease in base management fees, and a decrease in other expenses due to the sale and write off of our investments in 1888 Industrial Services, LLC in March 2024.

Net investment income

Net investment income before taxes decreased to $0.7 million for the three months ended March 31, 2025 from $2.2 million for the three months ended March 31, 2024 primarily due to a decrease in interest income due to lower index and interest rates in 2025 compares to 2024 and a decrease in PIK interest income primarily related to lower PIK rates and principal balances on our investments in Crafty Apes, LLC subsequent to the restructuring in November 2024, partially offset by a decrease in interest expense due to lower index rates in 2025 compared to 2024, a decrease in base management fees, a decrease in other expenses due to the sale and write off of our investments in 1888 Industrial Services, LLC in March 2024, increased Dividend income related to the CF Arch Holdings LLC - Equity Interest and increased PIK dividend income related to Fusion Connect Series A Preferred Stock.

Net realized gain or loss

There was a net realized loss on investments of $1.6 million for the three months ended March 31, 2025 primarily due to the realization of losses associated with the restructuring of our investments in American Nuts Holdings, LLC and a write off of our investment in American Teleconferencing Services, Ltd, partially offset by a realization of gains associated with the restructuring of our investments in Sandvine Corporation.

There was a net realized loss on investments of $6.3 million for the three months ended March 31, 2024, primarily due to the realization of losses from restructurings and loan modifications of our investments in American Nuts Holdings, LLC, Arborworks Acquisition LLC, ArborWorks, LLC, Crafty Apes, LLC, and Xenon Arc, Inc. and the realization of losses associated with the sale and write off of our investments in 1888 Industrial Services, LLC.

Net change in unrealized (depreciation) appreciation on investments

We recorded a net change in unrealized appreciation of $3.2 million for the three months ended March 31, 2025, primarily due to changes in marks for ArborWorks, LLC A-1 - Preferred Units, Crafty Apes LLC - Common Stock, Klein Hersh, LLC Term Loan - Last Out, Bioplan USA, Inc. - Common Stock and LABL, Inc. Term Loan B and due to the realization of previously unrealized losses resulting from the restructuring of our investments in American Nuts Holdings, LLC and a write off of our investment in American Teleconferencing Services, Ltd.

During the three months ended March 31, 2024, we recorded a net change in unrealized appreciation of $6.6 million, primarily due to the decrease in fair value of our investments in ArborWorks, LLC A-1 Preferred, Klein Hersh, LLC, and Techniplas Foreign Holdco LP, partially offset by the increase in fair value of our investments in Bioplan USA, Inc. and Discovery Behavioral Health and due to the realization of previously unrealized losses resulting from the sale and write off of our investments in 1888 Industrial Services, LLC..

Liquidity and Capital Resources

Our primary liquidity needs include interest and principal repayments under the Capital One Revolving Financing, interest payments on the 2026 Notes, our unfunded loan commitments (if any), investments in portfolio companies, dividend distributions to our stockholders and operating expenses. We believe that our current cash on hand and our anticipated cash flows from operations, including from contractual monthly portfolio company payments and prepayments, will be adequate to meet our cash needs for our daily operations. This “Liquidity and Capital Resources” section should be read in conjunction with “Market Developments” above and the risk factors referenced in our most recent Transition Report on Form 10-KT.

Cash flows

For the three months ended March 31, 2025, our cash balance increased by $0.9 million. During that period, $5.1 million in net cash was provided by operating activities, primarily due to investments of $5.6 million in portfolio companies, offset by proceeds from repayment and sale of investments in portfolio companies of $7.3 million. During that same period, $4.2 million in net cash was used in financing activities, resulting primarily from proceeds of $0.5 million from borrowings under the Capital One Revolving Financing, repayments of $3.0 million under the Capital One Revolving Financing, distributions of $1.7 million to our stockholders, and payments of $0 for deferred financing costs.

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Capital resources

As of March 31, 2025, we had $2.3 million of cash as well as $10.7 million in restricted cash and $44.0 million of capacity under the Capital One Revolving Financing. As of March 31, 2025, we had approximately $121.0 million of senior securities outstanding at par value and our asset coverage ratio based on par value was 164.5%. We intend to generate additional cash primarily from future offerings of equity and/or debt securities, future borrowings or debt issuances, as well as cash flows from operations, including income earned from investments in our portfolio companies and, to a lesser extent, from the temporary investment of cash in U.S. government securities and other high-quality debt investments that mature in one year or less.

As discussed below in further detail, we have elected to be treated as a RIC under the Code. To maintain our RIC status, we generally must distribute substantially all of our net taxable income to stockholders in the form of dividends. Our net taxable income does not necessarily equal our net income as calculated in accordance with U.S. GAAP.

Asset Coverage Requirements

On May 2, 2018, our board of directors, including a “required majority” (as such term is defined in Section 57(o) of the 1940 Act) of the board of directors, approved the modified asset coverage requirements set forth in Section 61(a)(2) of the 1940 Act. As a result, effective May 2, 2019, our applicable minimum asset coverage ratio under the 1940 Act was decreased to 150% from 200%. Thus, we are permitted under the 1940 Act, under specified conditions, to issue multiple classes of debt and one class of stock senior to our common stock if our asset coverage, as defined in the 1940 Act, is at least equal to 150% immediately after each such issuance. As of March 31, 2025, our asset coverage for borrowed amounts was 164.5%.

Regulated Investment Company Status and Distributions

We have elected to be treated as a RIC under Subchapter M of the Code. If we continue to qualify as a RIC for a taxable year, we will not be subject to corporate-level U.S. federal income tax on our investment company taxable income or realized net capital gains, to the extent that such taxable income or gains are distributed, or deemed to be distributed, to stockholders on a timely basis.

Taxable income generally differs from net income for financial reporting purposes due to temporary and permanent differences in the recognition of income and expenses, and generally excludes net unrealized appreciation or depreciation until realized. Dividends declared and paid by us in a year may differ from taxable income for that year as such dividends may include the distribution of current year taxable income or the distribution of prior year taxable income carried forward into and distributed in the current year. Distributions also may include returns of capital.

To continue to qualify for RIC tax treatment, we must, among other things, distribute to our stockholders, with respect to each taxable year, at least 90% of our investment company net taxable income (i.e., our net ordinary income and our realized net short-term capital gains in excess of realized net long-term capital losses, if any). We will also be subject to a federal excise tax, based on distributive requirements of our taxable income on a calendar year basis.

We intend to distribute to our stockholders between 90% and 100% of our annual taxable income (which includes our taxable interest and fee income). However, the covenants contained in the Capital One Revolving Financing and any other borrowing or financing arrangement we or our subsidiaries may have may prohibit us from making distributions to our stockholders, and, as a result, could hinder our ability to satisfy the distribution requirement. In addition, we may retain for investment some or all of our net taxable capital gains (i.e., realized net long-term capital gains in excess of realized net short-term capital losses) and treat such amounts as deemed distributions to our stockholders. If we do this, our stockholders will be treated as if they received actual distributions of the capital gains we retained and then reinvested the net after-tax proceeds in our common stock. Our stockholders also may be eligible to claim tax credits (or, in certain circumstances, tax refunds) equal to their allocable share of the tax we paid on the capital gains deemed distributed to them. To the extent our taxable earnings for a fiscal taxable year fall below the total amount of our dividends for that fiscal year, a portion of those dividend distributions may be deemed a return of capital to our stockholders.

We may not be able to achieve operating results that will allow us to make distributions at a specific level or to increase the amount of these distributions from time to time. In addition, we may be limited in our ability to make distributions due to the asset coverage test for borrowings applicable to us as a BDC under the 1940 Act and due to provisions in the agreements governing our borrowing or financial arrangements. We cannot assure stockholders that they will receive any distributions or distributions at a particular level.

In accordance with certain applicable U.S. Department of Treasury (“Treasury”) regulations and a revenue procedure issued by the Internal Revenue Service, a RIC may treat a distribution of its own stock as fulfilling its RIC distribution requirements if each stockholder elects to receive his or her entire distribution in either cash or stock of the RIC, subject to a limitation that the aggregate amount of cash to be distributed to all stockholders must be at least 20% of the aggregate declared distribution. If too many stockholders

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elect to receive cash, each stockholder electing to receive cash must receive a pro rata amount of cash (with the balance of the distribution paid in stock). In no event will any stockholder, electing to receive cash, receive less than 20% of his or her entire distribution in cash. If these and certain other requirements are met, for U.S. federal income tax purposes, the amount of the dividend paid in stock will be equal to the amount of cash that could have been received instead of stock. We have no current intention of paying dividends in shares of our stock in accordance with these Treasury regulations or private letter rulings.

Off-Balance Sheet Arrangements

We may be a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financial needs of our portfolio companies. As of March 31, 2025, our off-balance sheet arrangements consisted of $5.7 million in unfunded commitments to five of our portfolio companies. As of December 31, 2024, our off-balance arrangements consisted of $4.6 million in unfunded commitments to six of our portfolio companies. We maintain sufficient liquidity (through cash on hand and available borrowings under our Capital One Revolving Financing) to fund such unfunded loan commitments should the need arise.

Recent Developments

The Company has evaluated the need for disclosures and/or adjustments resulting from subsequent events through the date the consolidated financial statements were issued.

Subsequent to March 31, 2025 and through May 13, 2025, the Company invested a total of $2.0 million, at cost, which included investments in two existing portfolio companies. As of May 13, 2025, the Company had investments in 43 portfolio companies.

On April 15, 2025, the Company's board of directors declared a distribution for the quarter ended June 30, 2025 of $0.12 per share payable on June 14, 2025 to stockholders of record as of May 24, 2025.

Item 3. Quantitative and Qualitative Disclosure About Market Risk

We are subject to financial market risks, including changes in interest rates. Because we fund a portion of our investments with borrowings, our net investment income is affected by the difference between the rate at which we invest and the rate at which we borrow. As a result, there can be no assurance that a change in market interest rates will not have a material adverse effect on our net investment income.

Generally, we believe higher yielding assets such as those in our investment portfolio do not necessarily follow a linear interest rate relationship and are less sensitive in price-to-interest rate changes than many other debt investments. Our investments in fixed-rate assets are generally exposed to changes in value due to interest rate fluctuations, and our floating-rate assets are generally exposed to cash-flow variability from fluctuation in rates. At March 31, 2025, 98.2% of our debt investments bore interest based on floating rates, such as SOFR, the Euro Interbank Offered Rate, the Federal Funds Rate or the Prime Rate. The interest rates on such investments generally reset by reference to the current market index after one to three months.

Consequently, our net interest income (interest income less interest expense) is exposed to risks related to interest-rate fluctuations. Variable-rate instruments subject to a floor generally reset periodically to the applicable floor and, in the case of investments in our portfolio, quarterly to a floor based on SOFR, only if the index exceeds the floor. As of March 31, 2025, 100.0% of our floating-rate portfolio was subject to interest-rate floors set at or below the current applicable rate. Under these loans, we do not benefit from increases in interest rates until such rates exceed the floor and thereafter benefit from market rates above any such floor. In addition, our interest expense will be affected by changes in the published interest rates in connection with the Capital One Revolving Financing to the extent it goes above the floor; however, our 2026 Notes bear interest at a fixed rate. As of March 31, 2025, our floating rate borrowings totaled $56.0 million in principal amount, which represented 46.3% of our outstanding debt.

Based on our investment portfolio as of March 31, 2025, with certain interest rate floors and our financing arrangements at March 31, 2025, a 1.00% increase in interest rates would increase our net interest income by approximately 5.30% and a 2.00% increase in interest rates would increase our net interest income by approximately 15.82%.

Although management believes that this analysis is indicative of our existing sensitivity as of March 31, 2025 to interest rate changes, it does not adjust for changes in the credit markets, the size, credit quality or composition of the assets in our portfolio and other business developments, including borrowing, that could affect the net increase in net assets resulting from operations or net income. It also does not adjust for the effect of the time lag between a change in the relevant interest rate index and the rate adjustment under the applicable loans or borrowings. Accordingly, we can offer no assurances that actual results would not differ materially from the analysis included herein.

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Because it is our intention to hold loans to maturity, the fluctuating relative value of these loans that may occur due to changes in interest rates may have an impact on unrealized gains and losses during quarterly reporting periods. Based on our assessment of the interest rate risk, as of March 31, 2025, we had no hedging transactions in place as we deemed the risk acceptable, and we did not believe it was necessary to mitigate this risk at that time.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

As of March 31, 2025 (the end of the period covered by this report), our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act). Our management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives, and our management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures. The design of disclosure controls and procedures and internal control over financial reporting must reflect the fact that there are resource constraints and that management is required to apply judgment in evaluating the benefits of possible controls and procedures relative to their costs.

Based on such evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that, as of March 31, 2025, our disclosure controls and procedures were designed at a reasonable assurance level and were effective to provide reasonable assurance that information required to be disclosed in our periodic SEC filings is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

Changes in Internal Control Over Financial Reporting

Management did not identify any change in the Company’s internal control over financial reporting that occurred during the quarter ended March 31, 2025 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

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PART II—OTHER INFORMATION

Item 1. Legal Proceedings

Neither we, the Adviser, nor our subsidiaries, nor any of our respective property, are currently subject to any material legal proceedings, other than ordinary routine litigation incidental to our businesses. We, the Adviser, and our subsidiaries may from time to time, however, be involved in litigation arising out of our operations in the normal course of business or otherwise, including proceedings relating to the enforcement of our rights under contracts with our portfolio companies. Furthermore, third parties may seek to impose liability on us in connection with the activities of our portfolio companies. While the outcome of these legal proceedings cannot be predicted with certainty, we do not expect that these matters will materially affect our financial condition or results of operations. There can be no assurance whether any current or future legal proceedings will have a material adverse effect on our financial condition or results of operations in any future reporting period.

Item 1A. Risk Factors

You should carefully consider the risks referenced below and all other information contained in this Quarterly Report on Form 10-Q, including our interim financial statements and the related notes thereto, before making a decision to purchase our securities. Any such risks and uncertainties are not the only ones facing us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may have a material adverse effect on our business, financial condition and/or operating results, as well as the market price of our securities.

There have been no material changes during the three months ended March 31, 2025 to the risk factors previously disclosed in our Transition Report on Form 10-KT for the Transition Period ended December 31, 2024 (filed with the SEC on March 25, 2025). If any of such changes or risks actually occur, our business, financial condition or results of operations could be materially adversely affected. If that happens, the value of our securities could decline, and you may lose all or part of your investment.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Unregistered Sales of Equity Securities

During the three months ended March 31, 2025, we issued 7,789 shares of common stock under our dividend reinvestment plan. These issuances were not subject to the registration requirements under the Securities Act. The cash paid for shares of common stock issued under our dividend reinvestment plan during the three months ended March 31, 2025 was $22,715.

Issuer Purchases of Equity Securities

None.

Item 3. Defaults Upon Senior Securities

Not applicable.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

Rule 10b5-1 Trading Plans

During the fiscal quarter ended March 31, 2025, none of our directors or officers adopted or terminated any contract, instruction or written plan for the purchase or sale of our securities to satisfy the affirmative defense conditions of Exchange Act Rule 10b5-1(c) or any “non Rule 10b5-1 trading arrangement.”

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Item 6. Exhibits

The following exhibits are filed as part of this report or hereby incorporated by reference to exhibits previously filed with the SEC:

3.1	Articles of Amendment and Restatement(1)
3.1.1	Articles of Amendment(2)
3.2	Bylaws(3)
10.1	Fourth Amendment, dated January 17, 2024, to Loan, Security and Collateral Management Agreement by and among Investcorp Credit Management BDC SPV, LLC, as borrower, each of the lenders party thereto, Capital One, National Association, as administrative agent, swingline lender and as arranger, Wells Fargo Bank, National Association, as collateral custodian, and CM Investment Partners, LLC, as collateral manager(4).
31.1	Chief Executive Officer Certification Pursuant to Exchange Act Rule 13a-14 (a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*
31.2	Chief Financial Officer Certification Pursuant to Exchange Act Rule 13a-14 (a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*
32.1	Chief Executive Officer Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002**
32.2	Chief Financial Officer Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002**
101.INS	Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document.
101.SCH	Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

* Filed herewith

** The certifications attached as Exhibit 32.1 and 32.2 that accompany this Quarterly Report on Form 10-Q, are deemed furnished and not filed with the SEC and are not to be incorporated by reference into any filing of the Registrant under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date of this Quarterly Report on Form 10-Q, irrespective of any general incorporation language contained in such filing.

(1)Incorporated by reference to Exhibit (a)(1) to the Registrant’s Registration Statement on Form N-2 (File No. 333-192370), filed with the SEC on November 15, 2013.

(2)Incorporated by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K (File No. 814-01054), filed on September 3, 2019.

(3)Incorporated by reference to Exhibit (b)(1) to the Registrant’s Registration Statement on Form N-2 (File No. 333-192370), filed with the SEC on November 15, 2013.

(4)Incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (File No. 814-01054), filed on January 23, 2024.

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Dated: May 13, 2025

INVESTCORP CREDIT MANAGEMENT BDC, INC.
By:	/s/ Suhail A. Shaikh
	Suhail A. Shaikh
	Chief Executive Officer
By:	/s/ Walter Tsin
	Walter Tsin
	Chief Financial Officer

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