Investcorp Credit Management BDC, Inc. (ICMB) reported significant financial developments for the quarter ending September 30, 2024, reflecting a positive shift in its performance compared to the same period in 2023. The company’s total investments at fair value increased to $190.1 million, up from $184.6 million as of June 30, 2024. This growth was accompanied by a notable rise in cash and restricted cash, which reached $10.1 million, compared to $14.3 million a year earlier.

Total investment income for the quarter was $6.8 million, an increase from $5.9 million in the prior year, primarily driven by higher PIK interest income from the Klein Hersh, LLC Term Loan. Net investment income also rose to $2.3 million, up from $1.6 million, reflecting improved operational efficiency and lower interest expenses. The net change in unrealized appreciation on investments was $8.3 million, contrasting sharply with a depreciation of $3.3 million in the previous year.

The company reported a net increase in net assets resulting from operations of $6.6 million, a significant turnaround from a net decrease of $1.7 million in the same quarter of 2023. Earnings per share for the quarter were $0.46, compared to a loss of $0.12 per share in the prior year. The net asset value per share increased to $5.55 from $5.21, indicating a strengthening financial position.

Total liabilities rose to $123.1 million from $117.2 million, while total net assets increased to $79.9 million from $75.0 million. The asset coverage ratio for borrowed amounts improved to 172.0%, up from 162.6% a year earlier, reflecting a more robust capital structure.

Strategically, the company has shifted its fiscal year-end from June 30 to December 31, effective September 18, 2024. This change is expected to align its reporting with industry standards and enhance operational flexibility. Additionally, the company has maintained a focus on floating-rate debt investments, with 96.9% of its debt portfolio linked to floating rates, which positions it favorably in a rising interest rate environment.

Investcorp continues to monitor the impact of inflation and potential economic downturns on its portfolio companies, ensuring that it remains proactive in managing its investments and financial health. The company declared a quarterly distribution of $0.12 per share, payable on January 8, 2025, reflecting its commitment to returning value to shareholders.