Private Credit Portfolio Analysis | Chicago Atlantic BDC Reports Q1 2025 Results
- Editor
- May 13
- 2 min read
Whats New:
Chicago Atlantic BDC, Inc. reported its Q1 2025 financial results, showing significant growth in net income and investments compared to the same quarter in the previous year. The fund's net income increased to $7.6 million for Q1 2025, up from $519,811 in Q1 2024. Total investments owned at fair value grew to $11.98 billion, indicating substantial portfolio expansion.
Portfolio Dynamics:
Net income increased to $7,614,357 in Q1 2025, compared to $519,811 in Q1 2024.
Investments owned at fair value reached $11.98 billion, up from $9.87 billion at the end of 2024.
Cash and cash equivalents decreased to $14.92 million from $23.93 million at the end of 2024.
Investment Activity:
Payments for purchase of securities increased to $20.60 million in Q1 2025, compared to $0 in Q1 2024.
Proceeds from sale of investments and principal repayments rose to $7.64 million in Q1 2025 from $63,000 in Q1 2024.
Receivable from investment sales increased to $4.12 million in Q1 2025.
Capital Structure:
Long-term debt increased, as evidenced by the amortization of financing costs of $145,381 in Q1 2025.
Payments of financing costs amounted to $756,700 in Q1 2025, compared to $0 in Q1 2024.
The fund accrued $725,867 for deferred financing costs in Q1 2025.
Performance Profile:
Net income per share (implied) increased to $0.33 in Q1 2025 from $0.02 in Q1 2024.
Unrealized loss on investments was $34,064 in Q1 2025, compared to a gain of $599,620 in Q1 2024.
Income-based incentive fee payable increased by $123,920 in Q1 2025.
Risk & Quality:
Capital gains incentive fee payable decreased by $6,813 in Q1 2025.
Management fee payable increased by $580,888 in Q1 2025.
Professional fees payable increased by $297,793 in Q1 2025.
The Wrap:
Chicago Atlantic BDC demonstrated strong growth in Q1 2025, with a significant increase in net income and investments at fair value. The fund's investment activity intensified, with higher payments for securities purchases and increased proceeds from investment sales and repayments. While the fund's cash position decreased, it also saw an increase in long-term debt and financing activities. The performance profile shows improved earnings per share, but with some fluctuations in unrealized gains/losses on investments. The increase in various fee payables suggests higher costs associated with the fund's expanded operations and investment activities.
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