Investcorp Credit Management BDC, Inc. Announces Financial Results for the Quarter Ended September 30, 2026

Fee waivers offset some expenses, while investment income and net asset value declined.

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NEW YORK--(BUSINESS WIRE)-- Investcorp Credit Management BDC, Inc. (NASDAQ: ICMB) (“ICMB” or the “Company”) announced its financial results today for its fiscal quarter ended September 30, 2026.

HIGHLIGHTS

• During the quarter, the Company had net advances of $0.7 million on delayed draw and revolving credit commitments to portfolio companies.
• The weighted average yield on debt investments, at fair market value, as of September 30, 2026, was 9.53% compared to 10.51% as of June 30, 2026.
• Net asset value decreased $0.42 per share to $3.02, compared to $3.44 as of June 30, 2026. Net assets decreased by $6.0 million, or 12.16%, during the quarter ended September 30, 2026 compared to June 30, 2026.
• ICMB's investment adviser waived all management fees earned for the quarter and waived the remaining $0.2 million of previously accrued income-based incentive fees payable.
• Company maintains portfolio flexibility amid market volatility through sizable exposures to first-lien and floating rate instruments.

Portfolio results, as of and for the three months ended September 30, 2026:

Total assets	$152.7 million
Investment portfolio, at fair value	$132.7 million
Net assets(1)	$43.6 million
Weighted average yield on debt investments, at fair market value (2)	9.53%
Net asset value per share(1)	$3.02
Portfolio activity in the current quarter:
Number of investments in new portfolio companies during the period	0
Number of portfolio companies invested in, end of period	31
Total capital invested in existing portfolio companies (3)	$1.0 million
Total proceeds from repayments and amortization (4)	$1.9 million
Net investment loss before taxes (NII)	($1.8) million
Net investment loss before taxes per share	($0.13)
Net decrease in net assets from operations	($4.8) million
Net decrease in net assets from operations per share	$(0.33)
Distributions paid per common share	$0.00
(1) See 'Adjusted Net Asset Value' section below for explanation and calculation of Adjusted Net Asset Value and Adjusted Net Asset Value per Share.
(2) Represents average yield on total debt investments weighted by fair market value as of September 30, 2026. The weighted average yield on total debt investments reflected above does not represent actual investment returns to the Company’s stockholders.
(3) Includes gross advances for delayed draw and revolving credit commitments and PIK interest to existing portfolio companies.
(4) Includes gross repayments on existing delayed draw and revolving credit commitments to portfolio companies.

Mr. Suhail A. Shaikh, chief executive officer of ICMB, said “Our focus this quarter was to maintain asset quality as we evaluated strategic alternatives to enhance shareholder value”.

Mr. Andrew Muns, chief financial officer of ICMB, noted: “Liquidity remained a high priority for us during the quarter.”

Portfolio and Investment Activities

The Company received proceeds of $1.9 million from repayments and amortization during the quarter.

During the quarter, the Company had net advances of $0.7 million on delayed draw and revolving credit commitments to portfolio companies.

The Company’s net unrealized gains and losses accounted for a decrease in the Company’s net investments of approximately $3.0 million, or $0.20 per share. The total net decrease in net assets resulting from operations for the quarter was $4.8 million, or $0.33 per share.

As of September 30, 2026, the Company’s investment portfolio consisted of investments in 31 portfolio companies, of which 85.56% were first lien investments, 14.32% were equity, warrants, and other investments, and 0.12% was unsecured debt. The Company’s debt portfolio consisted of 97.3% floating rate investments and 2.7% fixed rate investments.

Capital Resources

As of September 30, 2026, the Company had $18.8 million in cash, of which $9.2 million was restricted cash, and $10.1 million of unused commitment under its revolving credit facility with Capital One, N.A. (the “Capital One Revolving Facility”).

As of September 30, 2026, the Company had availability to borrow $5.5 million from the revolving credit facility based on the borrowing base.

Prior Period Corrections

In the Form 10-Q for the quarter ended June 30, 2026, the Company identified and corrected errors related to the assessment of gross income for purposes of the gross income test under Subchapter M of the Code for the tax years ended December 31, 2025 and 2024 resulting in tax adjustments of approximately $0.9 million and $1.1 million, respectively. After filing its June 30, 2026 Form 10-Q, the Company identified additional information that increased the tax adjustments by approximately $1.2 million for 2025 and $0.1 million for 2024, which have been corrected in the September 30, 2026 Form 10-Q.

Net Asset Value to Adjusted Net Asset Value

In the quarter ended June 30, 2026, the Company recorded a Tax Liability under Section 851(i) associated with the tax periods ending December 31, 2024 and December 31, 2025 totaling $2.0 million, which was partially offset by a related reduction in incentive fee payable of $0.1 million. Also in the quarter ended June 30, 2026, the Adviser waived $0.6 million of management fees earned and agreed to waive $0.2 million of previously earned incentive fees as well as $1.1 million of future management and incentive fees (the "Waiver of Future Management and Incentive Fees") to the extent such fees are earned.

In the quarter ended September 30, 2026 the Adviser waived the previously earned incentive fees of $0.2 million, as announced, as well as an additional $0.6 million of management fees earned in the quarter. The Adviser plans to waive future management and incentive fees up to the remaining $0.6 million to the extent earned. The Waiver of Future Management and Incentive Fees are not reflected in the Company's reported net asset value ("NAV") as of September 30, 2026. If the Company were able to recognize the Waiver of Future Management and Incentive Fees as of September 30, 2026, NAV would have increased by $0.6 million.

The following table shows a Reconciliation of Net Asset Value to Adjusted Net Asset Value:

Net Asset Value at September 30, 2026		$	43,648,682
Waiver of Future Management and Incentive Fees			585,469
Adjusted Net Asset Value at September 30, 2026		$	44,234,151
Adjusted Net Asset Value per Share at September 30, 2026		$	3.06

Adjusted NAV represents the Company’s reported NAV, as determined in accordance with U.S. Generally Accepted Accounting Principles (“U.S. GAAP”), plus the impact of the Waiver of Future Management and Incentive Fees, which are not reflected in the Company’s reported NAV as of September 30, 2026 as they relate to fees earned subsequent to September 30, 2026. The Company believes presenting Adjusted NAV is a useful and appropriate supplemental disclosure for analyzing the Company’s financial performance due to the unique circumstances giving rise to the Section 851(i) Tax Liability. However, this measure is a non-U.S. GAAP measure and should not be considered as a replacement for NAV or other measures presented in accordance with U.S. GAAP. Instead, this measure should be reviewed only in connection with such U.S. GAAP measures in analyzing the Company’s financial performance. A reconciliation of NAV, determined in accordance with U.S. GAAP, to Adjusted NAV, which includes the impact of the Waiver of Future Management and Incentive Fees, is detailed in the table above.

Subsequent Events

Subsequent to September 30, 2026 and through November 11, 2026, the Company received approximately $11.5 million from the repayment of five positions, including two full repayments. As of November 11, 2026, the Company had investments in 29 portfolio companies.

On October 13, 2026, the Company paid in full the additional tax (i.e., the Section 851(i) Tax Liability) based on the excess amount of nonqualifying income for the taxable years ended December 31, 2024 and December 31, 2025 in the amounts of approximately $1.2 million and $2.1 million, respectively.

On November 4, 2026, the Company repaid $10.0 million of outstanding borrowings under its Capital One Revolving Financing.

Investcorp Credit Management BDC, Inc. and Subsidiaries Consolidated Statements of Assets and Liabilities
		September 30, 2026				December 31, 2025
		(Unaudited)
Assets
Non-controlled, non-affiliated investments, at fair value (amortized cost of $146,871,938 and $177,110,265, respectively)		$	124,330,108			$	159,985,717
Affiliated investments, at fair value (amortized cost of $14,033,671 and $13,340,494, respectively)			8,399,491				12,673,145
Total investments, at fair value (amortized cost of $160,905,609 and $190,450,759, respectively)			132,729,599				172,658,862
Cash and cash equivalents			9,535,278				4,582,403
Restricted cash and cash equivalents			9,224,004				10,416,042
Principal receivable			6,242				55,377
Interest receivable			719,485				808,703
Payment-in-kind interest receivable			154,998				190,790
Prepaid expenses and other assets			315,527				124,928
Total Assets		$	152,685,133			$	188,837,105
Liabilities
Debt:
Revolving credit facility		$	39,900,000			$	58,900,000
2029 Notes payable			65,000,000				—
2026 Notes payable			—				65,000,000
Deferred debt issuance costs			(526,425	)			(754,121	)
Unamortized discount			(1,014,576	)			(17,778	)
Debt, net			103,358,999				123,128,101
Interest payable			2,003,052				1,887,457
Base management fees payable			—				786,986
Income-based incentive fees payable			—				232,541
Deferred income liability			—				440,084
Directors' fees payable			129,363				—
Accrued expenses and other liabilities			3,545,037				4,211,016
Total Liabilities			109,036,451				130,686,185
Commitments and Contingencies (see Note 6)
Net Assets
Common stock, par value $0.001 per share (100,000,000 shares authorized and 14,432,472 and 14,432,472 shares issued and outstanding, respectively)			14,432				14,432
Additional paid-in capital			203,128,982				203,128,982
Distributable earnings (loss)			(159,494,732	)			(144,992,494	)
Total Net Assets			43,648,682				58,150,920
Total Liabilities and Net Assets		$	152,685,133			$	188,837,105
Net Asset Value Per Share		$	3.02			$	4.03

Investcorp Credit Management BDC, Inc. and Subsidiaries Consolidated Statements of Operations (unaudited)
		For The Three Months Ended September 30,								For The Nine Months Ended September 30,
		2026				2025				2026				2025
Investment Income:
Interest income
Non-controlled, non-affiliated investments		$	2,779,327			$	3,888,504			$	8,603,462			$	11,155,389
Non-controlled, affiliated investments			14,182				—				41,104				(1,934	)
Total interest income			2,793,509				3,888,504				8,644,566				11,153,455
Payment-in-kind interest income
Non-controlled, non-affiliated investments			106,804				340,359				393,908				1,102,374
Non-controlled, affiliated investments			204,057				—				585,620				21,137
Total payment-in-kind interest income			310,861				340,359				979,528				1,123,511
Dividend income
Non-controlled, non-affiliated investments			—				—				61,659				81,607
Non-controlled, affiliated investments			—				—				—				—
Total dividend income			—				—				61,659				81,607
Payment-in-kind dividend income
Non-controlled, non-affiliated investments			—				—				—				452,742
Non-controlled, affiliated investments			—				—				—				—
Total payment-in-kind dividend income			—				—				—				452,742
Other fee income
Non-controlled, non-affiliated investments			25,304				127,621				128,666				459,132
Non-controlled, affiliated investments			—				—				—				—
Total other fee income			25,304				127,621				128,666				459,132
Other income			10,050				—				10,625				—
Total investment income			3,139,724				4,356,484				9,825,044				13,270,447
Expenses:
Interest expense			3,522,736				2,029,835				7,445,305				5,717,997
Base management fees			642,098				877,923				2,172,622				2,577,693
Income-based incentive fees			—				(18,802	)			(944	)			(137,550	)
Professional fees			945,726				246,313				1,945,542				864,883
Allocation of administrative costs from Adviser			198,486				225,390				468,145				707,287
Amortization of deferred debt issuance costs			54,384				153,823				483,877				461,471
Amortization of original issue discount			50,337				17,778				117,904				53,333
Insurance expense			97,361				125,612				296,259				372,123
Directors' fees			129,363				76,500				342,311				226,500
Custodian and administrator fees			69,802				70,791				204,730				219,028
Other expenses			117,433				84,848				393,943				368,735
Total expenses			5,827,726				3,890,011				13,869,694				11,431,500
Waiver of base management fees			(642,098	)			(102,658	)			(1,812,814	)			(248,827	)
Waiver of income-based incentive fees			(231,597	)			—				(231,597	)			—
Net expenses			4,954,031				3,787,353				11,825,283				11,182,673
Net investment income (loss) before taxes			(1,814,307	)			569,131				(2,000,239	)			2,087,774
Income tax expense (benefit), including excise tax expense			840				586,622				840				1,949,504
Net investment income (loss) after taxes			(1,815,147	)			(17,491	)			(2,001,079	)			138,270
Net realized and unrealized gain/(loss) on investments:
Net realized gain (loss) from investments
Non-controlled, non-affiliated investments			—				—				(2,117,046	)			581,343
Non-controlled, affiliated investments			—				—				—				—
Net realized gain (loss) from investments			—				—				(2,117,046	)			581,343
Net change in unrealized appreciation (depreciation) in value of investments
Non-controlled, non-affiliated investments			(1,622,748	)			(1,307,380	)			(5,417,282	)			(779,718	)
Non-controlled, affiliated investments			(1,326,060	)			(461,615	)			(4,966,831	)			(1,006,300	)
Net change in unrealized appreciation (depreciation) on investments			(2,948,808	)			(1,768,995	)			(10,384,113	)			(1,786,018	)
Total realized gain (loss) and change in unrealized appreciation (depreciation) on investments			(2,948,808	)			(1,768,995	)			(12,501,159	)			(1,204,675	)
Net increase (decrease) in net assets resulting from operations		$	(4,763,955	)		$	(1,786,486	)		$	(14,502,238	)		$	(1,066,405	)
Basic and diluted:
Earnings per share		$	(0.33	)		$	(0.12	)		$	(1.00	)		$	(0.07	)
Weighted average shares of common stock outstanding			14,432,472				14,431,202				14,432,472				14,421,267
Distributions paid per common share		$	—			$	0.14			$	—			$	0.38

About Investcorp Credit Management BDC, Inc.

The Company is an externally managed, closed-end, non-diversified management investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940. The Company’s investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation through debt and related equity investments by targeting investment opportunities with favorable risk-adjusted returns. The Company seeks to invest primarily in middle-market companies that have annual revenues of at least $50 million and earnings before interest, taxes, depreciation, and amortization of at least $15 million. The Company’s investment activities are managed by its investment adviser, CM Investment Partners LLC. To learn more about Investcorp Credit Management BDC, Inc., please visit www.icmbdc.com.

Forward-Looking Statements

Statements included in this press release for the quarter ended September 30, 2026, may contain “forward-looking statements,” which relate to future performance, operating results, events and/or financial condition. Words such as “anticipates,” “expects,” “intends,” “plans,” “will,” “may,” “continue,” “believes,” “seeks,” “estimates,” “would,” “could,” “should,” “targets,” “projects,” and variations of these words and similar expressions are intended to identify forward-looking statements. Any forward-looking statements, including statements other than statements of historical facts, included in this press release are based upon current expectations, are inherently uncertain, and involve a number of assumptions and substantial risks and uncertainties, many of which are difficult to predict and are generally beyond the Company’s control.

Investors are cautioned not to place undue reliance on these forward-looking statements. Any such statements are likely to be affected by other unknowable future events and conditions, which the Company may or may not have considered, including, without limitation, changes in base interest rates and the effects of significant market volatility on our business, our portfolio companies, our industry and the global economy. Accordingly, such statements cannot be guarantees or assurances of any aspect of future performance or events. Actual results may differ materially from those anticipated in any forward-looking statements as a result of a number of factors and risks. More information on these risks and other potential factors that could affect actual events and the Company’s performance and financial results, including important factors that could cause actual results to differ materially from plans, estimates or expectations included herein, is or will be included in the Company’s filings with the Securities and Exchange Commission, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. All forward-looking statements speak only as of the date they are made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20261111258248/en/

Investcorp Credit Management BDC, Inc.
Investor Relations
Email: icmbinfo@investcorp.com
Phone: (212) 703-1154

Source: Investcorp Credit Management BDC, Inc.

Key Terms

payment-in-kind interest financial

Payment-in-kind interest is interest that a borrower pays not with cash but by increasing the loan balance or issuing additional securities, like receiving more IOUs instead of money. For investors this matters because it reduces immediate cash receipts, can dilute ownership or increase a company’s debt load over time, and signals how comfortably a borrower can meet cash obligations — all factors that affect valuation and credit risk.

first lien investments financial

Debt or other credit instruments that are secured by a first-priority lien on specified collateral, meaning the lender has the primary legal claim to those assets ahead of other creditors if the borrower defaults or enters bankruptcy. First-lien status is created by a security agreement and perfected by complying with property-specific filing requirements (for example, UCC filings for most business assets or title registration for real property); the lender’s recovery is limited to the pledged collateral and any proceeds from it. The protection applies only to the assets expressly subject to the lien and can be affected by later liens, imperfect perfection, or intercreditor agreements that alter priority.

floating rate investments financial

Debt securities or loans whose interest payments reset periodically based on a published short-term reference rate (such as LIBOR, SOFR, or a central bank rate) plus a fixed spread; the holder receives variable coupon payments that change at each reset date. Reset frequency (e.g., daily, monthly, quarterly) and any contractual caps, floors or minimums determine how quickly and how much cash flows adjust, and the instrument still carries credit and liquidity risk even though its sensitivity to general interest-rate movements is lower than a comparable fixed-rate instrument.

u.s. gaap financial

U.S. GAAP is a set of rules and standards that companies in the United States follow to prepare their financial reports. It helps ensure that financial information is consistent and clear, so investors and others can compare and understand a company's financial health easily.

subchapter m regulatory

Subchapter M is a set of U.S. Coast Guard rules that requires commercial towing vessels to meet defined safety, inspection and maintenance standards and to document a safety-management program. For investors, it matters because complying can raise operating costs, affect vessel availability, insurance and resale value, and reduce accident risk—similar to how regular vehicle inspections and maintenance affect a delivery company's costs and reliability.