Chicago Atlantic Bdc, Inc. · NASDAQ:LIEN
Chicago Atlantic Bdc — Q2 2025 Earnings Presentation
19 slides from Chicago Atlantic Bdc's earnings presentation, Aug 14, 2025
Slide 1: Second Quarter 2025 Earnings Presentation
Second Quarter 2025 Earnings Presentation Chicago Atlantic BDC, Inc. (NASDAQ: LIEN) August 14, 2025 CONFIDENTIAL | Chicago Atlantic BDC, Inc.
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 August 14, 2025, and the Company’s Quarterly Report on Form 10-Q for the qu
Slide 3: Chicago Atlantic BDC, Inc: Company Overview
Chicago Atlantic BDC, Inc: Company Overview Chicago Atlantic BDC, Inc. (NASDAQ: LIEN) (the “Company” or “Us”) is externally managed by Chicago Atlantic BDC Advisers, LLC (the “Adviser”) The Adviser, a majority-owned subsidiary of Chicago Atlantic Group, LP (together $2.8B+ 100+ with its affiliat
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 46% are at their respective floor Closed $100 million senior secured r
Slide 5: Experienced Credit & Cannabis Leadership Team
Experienced Credit & Cannabis Leadership Team Peter Sack Scott Gordon Umesh Mahajan Dino Colonna, CFA CEO Executive Chairman Co-CIO & President & Co-CIO Secretary Former Principal at BC Partners Credit, Over 30 years of investing and asset 28-year career in various middle-market, 23-year car
Slide 6: About Chicago Atlantic
About CHICAGOATLANTIC INCEPTION A private credit-focused investment firm founded in 2018 SIZE Capital under management: over $1.9B1 TEAM 95+ professionals, including over 35 investment professionals Seeking attractive risk-adjusted returns, preservation of capital and INVESTMENT PRINCIPLES income ge
Slide 7: Advantage: Established Relationships with Deal Sources
CHICAGOATLANTIC Advantage: Established Relationships with Deal Sources Intermediaries Over the past years, Chicago Direct outreach Atlantic has expanded existing and developed new Limited Partners deal sources, providing for a robust opportunity set. Club deals/other lenders Attorneys Accountants CO
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 Capitalize on opport
Slide 9: Financial Highlights
Financial Highlights Pro Forma Portfolio Quarter Ended Quarter Ended June 30, 2025 March 31, 2025 GROSS INVESTMENT INCOME $13.1 million $11.9 million NET EXPENSES $5.4 million $4.3 million NET INVESTMENT INCOME $7.7 million $7.6 million NET ASSETS AT END OF PERIOD $301.8 million $301.1 million WEIGH
Slide 10: Investment Portfolio Highlights
Investment Portfolio Highlights Pro Forma Portfolio CHICAGO ATLANTIC BDC INC. PORTFOLIO AS OF 6/30/25 (UNAUDITED) NET ASSET VALUE (INCLUDING CASH) $301.8mm INVESTMENTS AT FAIR VALUE $307.5mm NUMBER OF PORTFOLIO COMPANIES 33 GROSS WEIGHTED AVERAGE YIELD OF DEBT INVESTMENTS1 16.1% FLOATING R ATE DEBT
Slide 11: Portfolio Composition
Portfolio Composition PORTFOLIO DIVERSIFICATION1 NON-CANNABIS BY INDUSTRY 4% 22% 17% 43% 18% 78% 18% Finance and Insurance Information Cannabis Non-Cannabis Public Administration Retail Trade Real Estate and Rental and Leasing 1. Calculated as a percentage of the total fair value of the Company’s in
Slide 12: A Differentiated Investment Portfolio
A Differentiated Investment Portfolio Chicago Atlantic BDC, Inc. Offers a Significant Premium to Public BDCs and Traditional Leveraged Finance Chicago Atlantic BDC (Nasdaq: LIEN) generated a 16.1% weighted average portfolio yield on debt investments: LIEN Wtd. Average Portfolio Yield on Debt 16.1%
Slide 13: Target Borrowers
Target Borrowers Investment Sub-Strategies Although our primary investment focus has been 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 liquid
Slide 14: The Cannabis Landscape in the U.S.
The Cannabis Landscape in the U.S. Where We See Opportunities LACK OF TRADITIONAL FINANCING Banks generally don’t lend to firms in this industry, allowing higher interest rates, attractive collateral, and lender-friendly covenants. HIGH BARRIERS TO ENTRY Each state has unique investment characterist
Slide 15: The Cannabis Landscape in the U.S.
The Cannabis Landscape in the U.S. A significant amount of positive change over the past 6 years 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 Medica
Slide 16: The Cannabis Industry
The Cannabis Industry Size of Opportunity and Growth Projections The U.S. cannabis industry is estimated to be $35B in top-line Assuming the cannabis market enterprise value at 1x retail revenue in 2025 and is projected to grow to $69B by revenue, and a 35% debt to 65% equity capital structure2, 203
Slide 17: Appendix: Schedule of Investments
Appendix: Schedule of Investments
Slide 18: Schedule of Investments (as of June 30, 2025)
Schedule of Investments (as of June 30, 2025) Fixed Floating % of Investment Portfolio Company Security Type Maturity Date vs. Prime/SOFR Floor Cash Spread/Coupon PIK Rate Investment Value Reference Rate Value Floating Portfolio Company 1 First Lien Senior Secured Loans 6/30/2028 Floating Prime n/a
Slide 19: Investment Portfolio Highlights: Footnote Legend
Investment Portfolio Highlights: Footnote Legend Pro Forma Portfolio Based on data as of 6/30/25, unless otherwise noted. Weighted average amounts are weighted by the fair market value of each respective investment. 1. Weighted Average Portfolio Yield on Debt Investments (“Portfolio Yield”) is the w