Investcorp Credit Management BDC, Inc.

Good morning, ladies and gentlemen, and welcome to today's InvestCorp Credit Management BDC's quarter-ended June 30, 2025 earnings call. It is now my pleasure to turn the call over to Andrew Muntz, Chief Financial Officer.

Thank you, Operator. Welcome, everyone, to InvestCorp Credit Management BDC's quarter-ended June 30, 2025 earnings I'm joined today by Sue Hale-Shake, 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 InvestCorp Credit Management, BDC. Any unauthorized broadcast of this call in any form is strictly prohibited. Audio replay of the call will be available by visiting our investor relations page on our website at itmbdc.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 the company's registration statement on the SEC's Edgar platform or our investor relations page on our website. The format for today's call is as follows. Sue Hale will provide an overall business and portfolio summary, and then I will provide an overview of our results, summarizing the financials, followed by a question and answer session. At this time, I would like to turn the call over to Sue Hale.

Good morning, everyone, and thank you for joining our second quarter 2025 earnings call. Firstly, I would like to say that the Board of Directors and I are very pleased that Andrew Muntz has accepted the role of CFO of the company, which became effective on July 16, 2025. Andrew was appointed as the COO of the company on March 24, 2025, which led us to expand his role as the CFO. This was a busy quarter for us on several fronts, and while some of the headline results were mixed, we remained focused on executing our strategy and positioning the portfolio for long-term value creation. Turning to our second quarter results, we reported net investment income before taxes of $0.8 million, or $0.06 per share, an increase of 1% from the previous quarter. This represents an annualized return on equity of 4.3% up approximately 80 basis points sequentially, reflecting stable income generation and continued discipline on both the investing and expense fronts. This trend continues to reflect our broader 2025 theme of steady execution amid an improving yet selective deployment environment. Net assets declined modestly during the quarter, and our net asset value per share decreased to $5.27 per share from $5.42 in the previous quarter, largely driven by fair value adjustments, including two positions being placed for non-accrual. Importantly, even though with these additions, our non-accruals as a percentage of the total portfolio of fair value remained stable at 1.6% in line with the previous quarter. Notably, this is down meaningfully from 5% in the same period last year, underscoring the continued progress we've made in credit resolution and the effectiveness of our disciplined investing approach. Additionally, the overall portfolio continues to demonstrate resilience, and we continue to benefit from the diversities industries we are invested in. Performance across our underlying borrowers remains largely in line with expectations. While the median EBITDA is relatively unchanged at approximately $55 million, the weighted average net leverage declined to approximately 4.8 times from 4.9 times, and the weighted average LCD remained relatively unchanged at approximately 46% from the quarter ended March 31st. One of the defining features of the quarter was a pickup and origination activity with $19 million in originations this quarter, up from $5.1 million last quarter. Most of this activity occurred in June and was concentrated in existing portfolio companies. This demonstrates both our condition in our longstanding sponsor relationships and the continued selectivity in the broader market. Renewal opportunities that meet our underwriting criteria remain limited. We continue to take a highly selective approach and maintain a rigorous diligence process to ensure that any additions to the portfolio meet our underwriting standards and long-term investment objectives. As we look ahead, we're seeing early signs of renewed momentum in the middle market. Our pipeline is beginning to rebuild in July, and we are cautiously optimistic that this momentum will carry into the second half of the year. Market spreads remain relatively stable throughout the quarter, and we continue to see disciplined pricing throughout the middle market. While volume has started to pick up, the quality of deal flow continues to vary, and we can remain focused on maintaining high underwriting standards. Our priorities remain centered on resolving legacy credit issues and repositioning the portfolio to support long-term performance. I will now turn to a summary of our investment activity for the quarter. During the quarter ended June, we invested in one new portfolio company and four existing portfolio companies. Funding for new investments totaled $19 million at cost, as I mentioned earlier. The weighted average yield of debt investments made in the quarter was approximately 9%. In the same period, we fully realized three portfolio companies invested investments totaling $9.5 million in proceeds with an IRR of approximately 32.8%. First, we invested in the first eight-term loan of OneCall Medical. OneCall is a tech-enabled provider of managed care solutions that serves workers' compensation and other health markets in the U.S. We are currently invested in the term loan across our other funds and our platform. A yielded cost is approximately 9.2%. We participated in the refinancing of American Auto Auction, also known as Accelerate. Accelerate is the second largest player in the used car whole auction market. We invested in the first lean term loan, and our yielded cost was approximately 9.1%. Lastly, as mentioned earlier, we made a number of incremental investments in existing portfolio companies that we were able to opportunity purchase in the secondary markets. These include an investment in integrity marketing, Asurion, and MaxUSBitco, also known as Altia. Our yield at cost is approximately 8.5%, 8.9%, and 9.2% respectively in these investments. Turning to our realizations, we realized our first main term loan position in Accelerate, as part of the refinancing that I mentioned, and 4L Technologies, both of which were refinancing the quarter. Our realized IRRs on Accelerate and 4L are 20.4% and 19.9% respectively. We also realized our equity position in Visa Power. We participated in the co-investment of Visa Power alongside Investors North American Private Equity team a few years ago. Our realized IRR is 64.1%. I would now like to turn the call over to Andrew to discuss our financial results.