Investcorp Credit Management BDC, Inc.

Good afternoon, and thank you for joining today's InvestCorp Credit Management BDC Incorporated Schedules Earnings Release for the quarter-ended September 30, 2024. It's now my pleasure to turn the floor over to Walter Chin, CFO.

Thank you, Operator. Welcome, everyone, to InvestCorp Credit Management BDC quarter-ended September 30, 2024 Earnings Calls. I am joined by Sohail Shaikh, President and Chief Executive Officer of the company. I would like to remind everyone that today's call is being recorded and that this call is the property of Invesco Credit Management, BDC. Any unauthorized broadcast of this call in any form is strictly prohibited. Audio replay of this call will be available by visiting our investor relations page on our website at icmvdc.com. I would also like to call your attention to the safe harbor disclosure in our press release regarding forward-looking information and remind everyone that today's call may include forward-looking statements and projections. Actual results may differ materially from these projections. We will not update forward-looking statements unless required by law. To obtain copies of our latest SEC filings, please visit our investor relations page on our website. The format for today's call is as follows. Suhail will provide an overall business and portfolio summary, and I will then provide an overview of our results, summarizing the financials, followed by a Q&A. At this time, I would like to turn the call over to Suhail.

Thanks, Walt, and thank you to everyone for joining us today. I'm pleased to announce that we delivered a strong quarter, reflecting our focus on maintaining a resilient portfolio and capitalizing on selective opportunities in a challenging market environment. Despite economic uncertainties, we are well-positioned to navigate challenges and consistently deliver value to our shareholders. Our net asset value rose by $0.34 per share to $5.55, up from $5.21 as of the quarter ended June 30, 2024. The increase was primarily driven by higher net investment income, unrealized gain on investments from up-to-market adjustments, and solid credit performance across our portfolio. For the quarter, we generated net investment income of $2.3 million or approximately 16 cents per share, reflecting a $1 million increase over the prior quarter. Additionally, we were successful in deploying $13.1 million across six portfolio companies, marking an uptick in activity compared to recent quarters. These achievements reflect the durability of our strategy and our continued focus on credit selection and proactive portfolio management, which remains unwavering even as economic conditions shift. Turning to the broader market environment, new deal flow, particularly in M&A and LBO activity, remains subdued. However, we achieved high origination volumes this quarter, driven mainly by refinancing deposits. We also made two secondary investments at attractive prices, allowing us to further diversify our portfolio with favorable terms. Although competition remains intense and high-quality opportunities are scarce, we continue to deploy capital strategically, maintaining our optimal portfolio leverage between one and a quarter times and one and a half times. Our investment pipeline remains robust and we are optimistic about the opportunities ahead. We prioritize building relationships with high-quality sponsors, investing in companies within defensible industries that demonstrate strong cash flows. We continue to rotate the portfolio toward larger, more stable credits and focus on senior secured investments within the core middle market. Our portfolio companies are performing well with only a small number of challenged positions. The median EBITDA of our portfolio rose from approximately $55 million last quarter to $61 million this quarter, while the weighted average net leverage declined from 5.1 times to 4.7 times over the same period. Non-accruals as a percentage of total fair market value improved to 4.8% this quarter from 5% last quarter. These outcomes reinforce the durability of our strategy, our focus on credit quality, and our proactive portfolio management as we look forward to a strong remainder of the year. I will now turn to details of our portfolio activity during the quarter. During the quarter, and in September 30th, We invested in three new portfolio companies and three existing portfolio companies. Fundings for new investments total approximately $13.1 million in costs, as I mentioned, of which half a million dollars represents the reinstatement of previously recorded paydowns for interest received from client Hirsch LLC while it was on non-accrual status. The weighted average yield of debt investments made in the quarter was approximately 10.7%. In the same period, we fully realized two portfolio company investments totaling $13.4 million in proceeds with an IRR of approximately 11.8%. We invested in the first lean term loan of Argonaut to support the refinancing of the company's capital structure. Argonaut is... a leading provider of mission-critical digital transformation services to corporations. iFino is a Trinity Partners portfolio company. Our yielded cost is approximately 11.5%. We also made an investment in the first lien term loan and delayed draw term loan of Likewise Corporation to support the refinancing and GenStar Capital's purchase of the company from BrightStar Capital. Likewise provides technology, device protection, and support Our yielded cost is approximately 11.5%. Finally, we made an investment in the first lien term loan and delayed draw term loan of Integrity Marketing Acquisition. Integrity is an insurance broker that distributes and markets life and health insurance products and wealth management solutions. We purchased Integrity in the secondary market. Yielded cost is approximately 10%. We also made a follow-on investment in the first lean term loan of Victra, also known as LSF9 Atlantis Holdings LLC. We purchased Victra in the secondary market for a yielded cost of approximately 9.8%. And finally, we made another investment in Crafty Apes. Crafty Apes is a full-service visual effects studio that works with studios across the globe. Our yielded cost is approximately 14.9%. We continue to work with the company's management to provide them with financial flexibility. Lastly, we realized our first lean terminal positions in retail services, WIS Corporation, and South Coast Terminals, both of which were refinanced during the quarter. We've been invested in both of these companies since May and December of 2021, respectively. Our realized IRR on WYS was approximately 12.9%, and our realized IRR on South Coast was approximately 10.7%. As of September 30th, our largest industry concentrations by fair market value were professional services at 14.6%, containers and packaging at 11.7%, Commercial services and supplies at 10.3%, trading companies and distributors at 8.8%, followed by insurance at 7.6%, and specialty retail at 7.2%. Our portfolio companies and 20 GICS industries as of the quarter end, including our equity and warrant positions, which is a decrease of three industries from the previous quarter. I would now like to turn the call over to Walt to discuss our financial results.