BCP Investment Corporation

Overview

• External, non‑diversified closed‑end investment company regulated as a business development company (BDC) under the Investment Company Act of 1940.
• Adviser: Sierra Crest Investment Management LLC, an affiliate of BC Partners. The Adviser manages investments and portfolio monitoring under the Advisory Agreement.
• The Company has no employees; day‑to‑day management and investment activities are conducted by the Adviser and its investment professionals.
• Name and ticker: On August 22, 2025 the company changed its name from Portman Ridge Finance Corporation to BCP Investment Corporation and began trading on NASDAQ under the symbol BCIC (trading began August 25, 2025). Closing price as of March 2, 2026: $11.58 per share.
• Stockholders: Approximately 58 holders of record as of March 2, 2026.
• Dividend policy: Distributions are implemented to maintain RIC status. A dividend reinvestment plan is available (cash reinvestment by default unless stockholders elect cash).

Core business

• Investment focus: Originate, structure and invest in:
  • Secured term loans (first and second lien), bonds or notes
  • Mezzanine debt
  • Equity investments and warrants tied to debt investments
  • Investments in collateralized loan obligation funds (CLO Funds) and, from time to time, CLO Fund securities (subordinated securities and preferred stock)
  • Joint ventures (examples include KCAP Freedom 3 LLC and Great Lakes II Joint Venture)
• Target companies: Privately‑held middle‑market companies, typically with EBITDA of $10–50 million and/or total debt of $25–150 million.
• Portfolio composition: Primarily debt securities (senior secured and subordinated) with occasional equity positions, warrants, CLO Funds and Joint Venture investments.
• Investment approach: Fundamental credit analysis focused on cash flow after capital expenditures, with risk management through diversification and collateral where applicable. Uses a credit committee process and ongoing monitoring (quarterly financial reviews, covenant tracking and watchlist management).

Portfolio and investment activity (as of December 31, 2025)

• Total investment portfolio fair value: $501.0 million, across 41 industries and 108 entities (excluding CLO Funds and Joint Ventures).
• Debt Securities Portfolio (excluding CLO Funds and Joint Ventures):
  • Fair value: $411.6 million
  • Representation: 82.2% of the total investment portfolio at fair value
  • Coverage: Across 34 industries and roughly 34–74 portfolio companies depending on subcategories
  • Average par per investment: near $3.5 million
  • Non‑accrual investments: 13 investments across 10 portfolio companies (some continue to accrue interest on a cash basis in certain cases)
  • Target yields: Weighted average annualized yield on the interest‑earning Debt Securities Portfolio (excluding non‑accruals and CLO income) approximately 12.9%
• CLO Fund Securities: Fair value $1.8 million (about 0.4% of the total portfolio); these are subordinated or preferred securities of CLO Funds.
• Joint Ventures:
  • KCAP Freedom 3 LLC: Fair value as of 12/31/2025: $10.7 million; Company holds a 62.8% economic interest; not consolidated under ASC 946 due to lack of controlling interest.
  • Great Lakes Funding II LLC: Series A rolled into Series B in August 2025; Company’s investment fair value as of 12/31/2025: $37.5 million; aggregate undrawn commitments at year‑end: $12.6 million (Series B) and $8.2 million (prior Series A).
• Asset‑manager affiliates: Equity investments totaling $17.8 million recorded as part of the portfolio.
• Cash and equivalents: $3.7 million; Restricted cash: $8.8 million.
• Total assets and NAV (as of 12/31/2025):
  • Investments at fair value: $523.6 million (net of other liabilities)
  • Liabilities (debt facilities and other liabilities): $314.5 million
  • Net asset value (NAV): $209.2 million
  • NAV per share: $16.68 (12/31/2025; $19.41 at 12/31/2024)

Key debt and capital structure

• BDC asset coverage requirement: May incur indebtedness or issue senior securities only if asset coverage is at least 150% immediately after such issuance or incurrence.
• Outstanding debt and facilities (amounts net of deferred financing costs and original issue discount, as of 12/31/2025):
  • Great Lakes Portman Ridge Funding LLC Revolving Credit Facility: $106.8 million
  • 2026 Notes: $49.7 million
  • 2028 Notes: $34.1 million
  • 2030 Notes: $72.6 million
  • 2032 Convertible Notes: $1.9 million
  • KeyBank Credit Facility: $41.8 million
  • Other liabilities: $7.6 million
• Portfolio yield and leverage context: The weighted average cost of debt and asset mix support distributions; a 2025 weighted average interest rate was noted around 6.9%.

Revenue and income (year ended December 31, 2025)

• Total investment income: $61.152 million
  • Interest income (debt securities): $45.808 million
  • Payment‑in‑kind (PIK) income: $10.523 million
  • Dividend income: $4.327 million
  • Fees and other income: $0.494 million
• Purchase discount amortization related to merger accounting (GARS, HCAP, LRFC): $(6.895) million
• Core investment income (excluding merger‑based purchase discount amortization): $54.257 million
• CLO Fund Securities investment income: approximately $0.370 million in 2025
• The company may recognize income related to original issue discounts and PIK instruments prior to cash receipts; this treatment can affect distributions and RIC status considerations.

Recent corporate and strategic activity

• LRFC acquisition completed July 15, 2025: LRFC assets were acquired via merger and conversion to the Company; total purchase consideration about $52.8 million, with a day‑one purchase discount of $20.9 million allocated to identifiable assets under ASC 805‑50 and reflected as unrealized appreciation.
• Great Lakes II Joint Venture activity included a rollover from Series A to Series B in 2025, with ongoing unfunded commitments.
• Governance and contracts:
  • Advisory Agreement and Administration Agreement were re‑approved by the Board (most recently March 4, 2026).
  • The Board provides oversight, including independent directors, valuation designee arrangements under Rule 2a‑5 for fair value, and regular valuation oversight by independent firms.

Operations and service providers

• Employees: The Company has no employees since externalization; all personnel and staffing are provided by the Adviser and its affiliates.
• Service providers: The Adviser and Administrator provide investment advisory and administration services; the Company reimburses these services under the Administration and Advisory Agreements.

Additional information

• Portfolio liquidity and valuation: The portfolio includes illiquid investments (private debt, private equity positions and CLO‑related securities). Fair value is determined under ASC 820 and Rule 2a‑5 valuation procedures, with third‑party valuation input where appropriate.
• Regulatory considerations: The Company operates as a BDC under the 1940 Act, with applicable diversification and asset coverage requirements, and maintains RIC tax status with distributions designed to meet the 90% gross income distribution rule.

Summary

BCP Investment Corporation is an externally managed BDC focused on middle‑market lending and credit strategies, including senior secured loans, mezzanine debt and selective equity investments, with exposure to CLO Funds and Joint Ventures. As of December 31, 2025 the portfolio fair value was roughly $501 million, the Debt Securities Portfolio represented about 82% of the portfolio, NAV per share was $16.68 (NAV $209.2 million), and 2025 investment income totaled approximately $61.2 million (core investment income of about $54.3 million excluding merger‑related amortization). The Adviser manages sourcing, diligence and monitoring, with governance and valuation oversight provided by the Board.