BCP Investment Corporation

Hello and welcome to BCP Investment Corporation's fourth quarter and full year ended December 31st, 2025 earnings conference call. An earnings press release was distributed yesterday, March 5th after market close. A copy of the release along with an earnings presentation is available on the company's website at www.bcpinvestmentcorporation.com and the investor relations section and should be reviewed in conjunction with the company's Form 10-K filed yesterday with the SEC. As a reminder, this conference call is being recorded for replay purposes. Please note that today's conference call may contain forward-looking statements which are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described in the company's filing with the SEC. BCP Investment Corporation assumes no obligation to update any such forward-looking statements unless required by law. Speaking on today's call will be Ted Goldthorpe, Chief Executive Officer, President and Director of BCP Investment Corporation, Brandon Saturn, Chief Financial Officer, and Patrick Schaefer. Chief Investment Officer. With that, I would now like to turn the call over to Ted Goldthorpe, Chief Executive Officer of BCP Investment Corp. Please go ahead, Ted.

Good morning. Welcome to our fourth quarter and full year 2025 earnings call. I'm joined today by our Chief Financial Officer, Brandon Satoran, our Chief Investment Officer, Patrick Schaefer, and the rest of the team. Following my open remarks on the company's performance and activities during the fourth quarter and full year, Patrick will provide commentary on our investment portfolio and our markets, and Brandon will discuss our operating results and financial condition in greater detail. I'd like to start by discussing some highlights, as 2025 was a transformational year for the company. In July, we completed our merger with Logan Ridge, and in August, we successfully completed a rebranding and name change. The merger meaningfully strengthened our platform, expanded our scale, and broadened our portfolio diversification. At the same time, our rebranding better reflects our affiliation with the broader BC Partners credit platform and is a representation of our long-term vision as we position the company for its next phase of growth. In December, we completed our tender offer by purchasing roughly 558,000 shares at an aggregate cost of approximately $7.6 million dollars which was accretive to NAV by 18 cents a share. Consistent with our diligent capital market management strategy, during the year, we also proactively extended and laddered our unsecured debt maturities, issuing $75 million of seven and three quarters notes due October 2030, and 35 million of seven and a half percent notes due October 2028, while also redeeming our four and seven eighths notes due 2026. These actions further diversified our funding base and provide us with enhanced financial flexibility. As a result of this year's performance and the successful execution of multiple strategic initiatives, the Board of Directors approved a quarterly base distribution of 32 cents a share for the quarter headed March 31st, 2026. Additionally, the Board also approved the transition of the company's base dividend payment schedule from quarterly to monthly beginning in the month of April 2026 while retaining the potential for quarterly supplemental distributions. We believe this change better aligns our distribution schedule with shareholder interests. The Board approved a regular monthly-based distribution of $0.09 per share for each of the months of April, May, and June, 2026. Also consistent with previous years, on March 4th, 2026, the Board authorized a renewed stock purchase program of up to $10 million for approximately a one-year period. All these initiatives I've discussed are designed to enhance shareholder value and reaffirm our commitment to shareholders. During the quarter, we generated net investment income of $7.4 million, or 57 cents a share, compared to $8.8 million, or 71 cents per share, in the prior quarter. For the year, we generated $25.1 million, or $2.28 per share, compared to $24 million, or $2.59 per share, for 2024. remain focused on executing our strategic initiatives, managing expenses, optimizing portfolio positioning for earnings and distribution coverage over time. Before handing the call over, I'd like to take a moment to address recent developments in the broader credit markets, specifically regarding the software segment. Over the last several weeks, we've seen a notable risk-off move in public software valuations, driven largely by uncertainty and speculation around how quickly AI adoption might change competitive dynamics rather than broad-based fundamental deterioration across the sector. As a reminder, BCIC remains broadly diversified with investments across 34 industries and software representing approximately 12.5% of the portfolio's fair market value. We've been proactive in evaluating our software-related exposure through AI disruption lens. Based on our internal review, the overwhelming majority of software exposure we track is assessed as low to medium AI impact and only a small portion is viewed as high impact. We also believe the market will increasingly differentiate between companies that are mission critical and embedded in customer workflows, often supported by proprietary data, higher switching costs, and customers operating in regulated industries, versus simpler point solutions that may be more vulnerable if they fail to incorporate AI into their products and operations. As a result, our focus remains on selectivity in credit quality, structure, with underwriting and monitoring that emphasizes revenue durability, retention, pricing power, and downside protection. Looking ahead, while macroeconomic headwinds persist, we believe current market dynamics continue to create compelling opportunities for our discipline strategy. We anticipate that 2026 will bring increased activity in the M&A market and expect to capitalize on opportunities in our portfolio. With a larger, more diversified platform and a stronger balance sheet heading into the year, we believe we are well positioned to drive continued earnings growth and long-term value creation. With that, I will turn over the call to Patrick Schaefer, our Chief Investment Officer, for a review of our investment activity.

Thanks, Ted. During the fourth quarter, we were intentionally prudent in new investment deployment as we executed on several key capital initiatives, including our debt refinancing and tender offer. We view this as disciplined capital management, and we are looking to deploy into attractive opportunities as conditions warrant. Competition remains elevated across sponsored backtrack lending, particularly for higher quality assets, and we continue to see lenders competing not only on spreads, but also on terms and certainty of execution. In environments like these, we continue to stay disciplined, prioritizing transactions where we can achieve appropriate economics alongside strong documentation and downside protection. where pricing returns aren't compelling, we're comfortable stepping back and continuing to be selective from a credit quality perspective to focus on maximizing risk-adjusted returns for our shareholders. Turn to slide 10. Originations for the fourth quarter were $9.6 million, and repayments and sales were $40.4 million, resulting in net repayments and sales of approximately $30.8 million. Overall yield on par value of new debt investments during the quarter was 11.8%. This compares to a 12.9 percent weighted average annualized yield, excluding income from non-accruals and collateralized loan obligations, as of December 31, 2025. Our investment portfolio at year-end remained highly diversified. We ended the year with a debt investment portfolio, when excluding our investments in CELA funds, equities, and joint ventures, spread across 74 different portfolio companies and 34 different industries, with an average par balance of $3.5 million per investment. Turning to slide 11, At the end of 2025, we had 13 investments on non-accrual status, which were attributable to 10 portfolio companies, representing 4.0% and 7.1% of the portfolio at fair value and cost, respectively. This compares to 10 investments attributable to eight portfolio companies on non-accrual status as of September 30, 2025, representing 3.8% and 6.3% of the portfolio at fair value and cost, respectively. On slide 12, excluding our non-accrual investments, we have an aggregate debt investment portfolio of $391.7 million at fair value, which represents a blended price of 92.7% of par value and is 81.5% comprised of first-ling loans at par value. Assuming a par recovery, our December 31, 2025 fair values reflect a potential of $30.9 million of incremental NAV value or a 14.8% increase to NAV. When applying an illustrative 10% default rate and 70% recovery rate, our debt portfolio would generate an incremental $1.46 per share of NAB, or an 8.7% increase as it rotates. I'll now turn the call over to Brandon to further discuss our financial results for the period.