Chicago Atlantic Bdc, Inc. · NASDAQ:LIEN
Chicago Atlantic Bdc — Q1 2025 Earnings Presentation
17 slides from Chicago Atlantic Bdc's earnings presentation, May 14, 2025
Slide 1: First Quarter 2025 Earnings Presentation
First Quarter 2025 Earnings Presentation May 14, 2025
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 Chicago Atlantic BDC, Inc. (the “Company”) (Nasdaq: LIEN) held on May 14, 2025, and the Company’s Quarterly Report on Form 10-Q for the quart
Slide 3: Chicago Atlantic BDC, Inc.
Chicago Atlantic BDC, Inc. Chicago Atlantic BDC, Inc. (NASDAQ: LIEN) (the “Company” or “Us”) $2.7B+ 150+ is externally managed by Chicago Atlantic BDC Advisers, LLC (the in loans closed since loans closed across “Adviser”) platform inception(1) platform(1) The Adviser, a majority-owned subsidiar
Slide 4: Investment Highlights
Investment Highlights Strong credit metrics Only BDC that is primarily focused on the cannabis industry All debt investments are senior secured A DIFFERENTIATED BDC 76% of the portfolio are floating rate loans, of which 99% have floors Recently closed $100 million senior secured revolving
Slide 5: Experienced Credit and Cannabis Leadership Team
Experienced Credit and Cannabis Leadership Team SCOTT GORDON PETER SACK DINO COLONNA MARTIN RODGERS UMESH MAHAJAN Executive Chairman & CEO President CFO Co-CIO and Secretary Co-CIO Former Founding Partner, CEO Former Principal at BC Partners Former Partner, Co-Head Senior Managing Director o
Slide 6: About Chicago Atlantic
About CHICAGOATLANTIC INCEPTION A private credit-focused investment firm founded in 2019 SIZE Capital under management: $1.9B1 TEAM 85+ professionals, including over 30 investment professionals Seeking attractive returns, preservation of capital and income generation INVESTMENT PRINCIPLES predominan
Slide 7: Chicago Atlantic Advantage: Established Relationships with Deal Sources
CHICAGOATLANTIC Advantage: Established Relationships with Deal Sources Direct Outreach Over the past years, Chicago Atlantic has expanded existing and developed new deal sources, providing for Attorneys, Accountants a robust opportunity set. Limited Partners Deal Sources Intermediaries Club Deals/Ot
Slide 8: Core Strategy
Core Strategy Chicago Atlantic focuses on INVESTMENT STRATEGY DIFFERENTIATORS senior-secured lending in the Seek above market returns and the Ability to underwrite highly complex top of the capital structure to preservation of capital industries the lower middle-market and Take advantage of op
Slide 9: Financial Highlights
Financial Highlights Pro Forma Portfolio Quarter Ended Quarter Ended March 31, 2025 December 31, 2024 GROSS INVESTMENT INCOME $11.9 million $12.7 million EXPENSES EXCLUDING LOAN PORTFOLIO ACQUISITION EXPENSES $4.3 million $4.4 million NET INVESTMENT INCOME EXCLUDING LOAN PORTFOLIO ACQUISITION $7.6 M
Slide 10: Differentiated Investment Portfolio
A ProDifferentiated Forma Portfolio Investment Portfolio Chicago Atlantic BDC Inc. Portfolio as of 3/31/25 (Unaudited) NET ASSET VALUE (INCLUDING CASH) $301mm Portfolio Diversification5 INVESTMENTS AT FAIR VALUE $289mm NUMBER OF PORTFOLIO COMPANIES 31 21% Cannabis GROSS WEIGHTED AVERAGE YIELD OF DEB
Slide 11: $100 Million Secured Credit Facility a Catalyst for Growth
$100 Million Secured Credit Facility a Catalyst for Growth OVERVIEW BENEFITS Facility Amount: $100,000,000 Capital Growth: Commitment Period: 2 years • The Credit Facility provides us with additional capital, allowing us to expand our portfolio and invest in promising opportunities Final Mat
Slide 12: The Cannabis Landscape in the U.S.
The Cannabis Landscape in the U.S. Where Chicago Atlantic Sees Timely Opportunities LACK OF TRADITIONAL FINANCING Banks generally don’t lend to companies in the cannabis industry, allowing higher interest rates, attractive collateral, and lender-friendly covenants. HIGH BARRIERS TO ENTRY THE CANNABI
Slide 13: The Cannabis Landscape in the U.S.
The Cannabis Landscape in the U.S. 2019 2025 Legalized recreational and medical use Legalized medical use only No regulated use Legal in 35 states and the District of Columbia1 Legal in 41 states and the District of Columbia1 Medical use only: 25 states Medical use only: 17 states Recreati
Slide 14: The Cannabis Industry: Size of Opportunity and Growth
The Cannabis Industry Size of Opportunity and Growth The U.S. cannabis industry is estimated to be $35B in top-line retail revenue in 2025 and is projected to grow to $69B by 20311: $69.1B $62.8B $55.6B Assuming the cannabis market enterprise value at 1x revenue, and a $49.2B 35% debt to 65% equit
Slide 15: Target Borrowers
Target Borrowers Investment Sub-Strategies Although we focus on investments in the cannabis industry, sub-strategies of our principal investment strategy may also consist of growth and technology companies, esoteric and asset-based lending opportunities, and companies in need of liquidity solutions.
Slide 16: Appendix: Schedule of Investments
Appendix Schedule of Investments
Slide 17: Schedule of Investments (as of March 31, 2025)
Schedule of Investments (as of March 31, 2025) Fixed Floating Reference % of Investment Portfolio Company Security Type Maturity Date vs. Prime/SOFR Floor Cash Spread/Coupon PIK Rate Investment Value Rate Value Floating Portfolio Company 1 Delayed Draw Term Loan 6/30/2025 Floating Prime 7.00% P + 6.