Chicago Atlantic BDC, Inc. · NASDAQ:LIEN
Chicago Atlantic BDC — Silver Spike Investment — FY2023 Earnings Presentation
14 slides from Chicago Atlantic BDC's earnings presentation, Mar 28, 2024
Slide 1: Fiscal Year End 2023 Earnings Presentation
Fiscal Year End 2023 Earnings Presentation March 28, 2024
Slide 2: Disclaimers and Forward-Looking Statements
DISCLAIMERS AND FORWARD-LOOKING STATEMENTS The information contained in this presentation should be viewed in conjunction with the earnings conference call of Silver Spike Investment Corp. (“SSIC” or the “Company”) (NASDAQ: SSIC) held on March 28, 2024 and the Company’s Annual Report on Form 10- K f
Slide 3: Financial Highlights for Quarter Ended 12/31/23
Financial Highlights for Quarter Ended 12/31/23 QUARTER ENDED QUARTER ENDED QUARTER ENDED QUARTER ENDED 12/31/23 9/30/23 6/30/23 3/31/23 GROSS INVESTMENT INCOME $3.6 million $2.9 million $2.9 million $2.5 million EXPENSES EXCLUDING LOAN PORTFOLIO $1.2 million $1.3 million $1.0 million $1.1 million A
Slide 4: Financial Highlights for Fiscal Year Ended 12/31/23
Financial Highlights for Fiscal Year Ended 12/31/23 FOR THE PERIOD FROM FOR THE PERIOD FROM 1/1/23 TO 12/31/23 4/1/22 TO 12/31/221 GROSS INVESTMENT INCOME $11.9 million $4.0 million EXPENSES EXCLUDING LOAN PORTFOLIO ACQUISITION EXPENSES $4.6 million $1.8 million LOAN PORTFOLIO ACQUISITION EXPENSES $
Slide 5: Silver Spike Capital, LLC Overview
Silver Spike Capital, LLC Overview $600m+ ~31yrs Silver Spike Investment Corp. (NASDAQ: SSIC) is externally managed by Public and Private Capital Average Partner’s Silver Spike Capital, LLC (“SSC”) Raised Experience SSC is an SEC-registered investment adviser that works with its clients to origi
Slide 6: Experienced Management Team
Experienced Management Team Scott Gordon Bill Healy Founding Partner, CEO & CIO Partner, Head of Capital Formation 36-year investment career in global special 36-year career in asset management, corporate situations, distressed, and emerging markets banking, and sales & trading Holds board pos
Slide 7: Competitive Advantages
Competitive Advantages BDC STRUCTURE VS REIT MANAGEMENT TEAM First mover in the cannabis BDC landscape— Deep background, experience, and skills across currently the only public BDC focused on direct- credit and special situations, in both developed lending to the cannabis sector and emerging mar
Slide 8: Market Opportunity
Market Opportunity Why Now? U.S. Legal Cannabis Legal Cannabis Sales as a % of Retail Sales ($BN)1 Alcohol Sales2 Cannabis is an emerging market secular growth story with an attractive lending opportunity. The U.S. industry is sizeable, growing $68 13.6% rapidly, and estimated to reach ~$68bn by 203
Slide 9: SSIC's Investment and Underwriting Process
SSIC’s Investment and Underwriting Process I II III IV V VI VII VIII LOAN INITIAL FINAL CREDIT EXECUTE CONDUCT BRING-DOWN SOURCING INITIAL CREDIT INVESTMENT INVESTMENT MONITORING INDICATIVE DETAILED DUE DILIGENCE AND REVIEW COMMITTEE COMMITTEE & PORTFOLIO TERM SHEET DILIGENCE AND CLOSING ORIGINATION
Slide 10: Pipeline of Investment Opportunities
Sourcing and Origination SILVER SPIKE HAS A SIGNIFICANT PIPELINE OF POTENTIAL DEBT INVESTMENTS Highlights of Silver Spike’s Sourcing & Origination Funnel Deals Reviewed1 Active Debt Pipeline1 Our preference is to directly originate deals via our networks. Direct deal sourcing is enhanced by cannabis
Slide 11: Portfolio Composition & Diversity
Portfolio Composition & Diversity Number of States by Company Company Strategy1 Supply Chain Focus1,2 (As of December 31, 2023) 20 18 8% 16 14 46% 12 54% 10 8 6 92% 4 2 0 Company A Company B Company C Company D Company E Brand Focus Multi-State Focus Non-Vertically Integrated Vertically Integrated 1
Slide 12: SSIC Portfolio Summary
SSIC Portfolio Summary WEIGHTED AVERAGE YIELD TOTAL INVESTMENT VALUE: % OF NET ASSETS INVESTED: TO MATURITY OF LOANS $54.12MM 63.26% (GROSS): 18.00%1 % OF NET ASSETS PORTFOLIO COMPANY INVESTMENT DATE MATURITY DATE INTEREST RATE INVESTMENT VALUE2 INVESTED3 Prime Rate + 8.50% Cash, Company A 5/26/2022
Slide 13: Proposed Loan Portfolio Acquisition
Proposed Loan Portfolio Acquisition SSIC announced on February 20, 2024, that it entered into a definitive agreement to purchase from Chicago Atlantic Loan Portfolio, LLC (“CALP”) a portfolio of loans (the “CALP Loan Portfolio”) in exchange for newly issued shares of SSIC’s common stock (the “Loan
Slide 14: Contact
CONTACT: BILL HEALY – PARTNER BILL@SILVERSPIKECAP.COM SSIC.SILVERSPIKECAP.COM
Silver Spike Investment — FY2023 Earnings Presentation on 6ix