Chicago Atlantic Bdc, Inc. · NASDAQ:LIEN
Chicago Atlantic Bdc — Q4 2024 Earnings Presentation
18 slides from Chicago Atlantic Bdc's earnings presentation, Mar 31, 2025
Slide 1: Fourth Quarter and Full Year 2024 Earnings Presentation
Fourth Quarter and Full Year 2024 Earnings Presentation March 31, 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 March 31, 2025, and the Company’s Annual Report on Form 10-K for the year e
Slide 3: Chicago Atlantic BDC, Inc.
Chicago Atlantic BDC, Inc. Chicago Atlantic BDC, Inc. (NASDAQ: LIEN) (the “Company”) is $2.6B+ 140+ externally managed by Chicago Atlantic BDC Advisers, LLC (the in loans closed since loans closed across “Adviser”) platform inception(1) platform(1) The Company acquired a portfolio of loans (the
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 80% of the portfolio are floating rate loans, and almost all have floors Recently closed $100 million senior secured revolvin
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 Year Ended Year ended December 31, December 31, December 31, December 31, 2024 2023 2024 2023 GROSS INVESTMENT INCOME $12.7 million $3.6 million $21.7 million $11.9 million EXPENSES EXCLUDING LOAN PORTFOLIO $4.4 million $1.2 millio
Slide 10: Differentiated Investment Portfolio
A ProDifferentiated Forma Portfolio Investment Portfolio Chicago Atlantic BDC Inc. Portfolio as of 12/31/24 (Audited) NET ASSET VALUE (INCLUDING CASH) $301mm Portfolio Diversification5 INVESTMENTS AT FAIR VALUE $275mm NUMBER OF PORTFOLIO COMPANIES 28 23% Cannabis GROSS WEIGHTED AVERAGE YIELD OF DEBT
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 2024 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
The Cannabis Industry Size of Opportunity and Growth The U.S. cannabis industry is estimated to be $32B in top-line retail revenue in 2024 and is projected to grow to $58B by 20301: $58.0B $51.0B $54.2B Assuming the cannabis market enterprise value at 1x revenue, and a $40.8B $45.5B $13.7 $14.4 35
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: Loan Origination Pipeline
Loan Origination Pipeline Driven by proprietary deal sourcing Continued cannabis legalization at the Over 1,000 Qualified Deals state level creates a new influx of Sourced and Reviewed opportunities Increase in M&A activity in both cannabis and non-cannabis verticals Total current active pipelin
Slide 17: Appendix: Schedule of Investments
Appendix Schedule of Investments
Slide 18: Schedule of Investments (as of December 31, 2024)
Schedule of Investments (as of December 31, 2024) Fixed Floating Reference Portfolio Company Security Type Maturity Date vs. Prime/SOFR Floor Cash Spread/Coupon PIK Rate Investment Value % of Investment Value Rate Floating Portfolio Company 1 Delayed Draw Term Loan 6/30/2025 Floating Prime 7.00% P +