BCP Investment : Q3 2025 Earnings Presentation (b88dfc)

About this update from Bcp Investment Corporation

BCP Investment Corporation Important Information Cautionary Stotement Bepordinp forward-Looking Stotements BCP Investment Corporation This presentation contains forward-looking statements. The matters discussed in this presentation, as well as in future oral and written statements by management of BCP Investment Corporation ("BCIC" or the "Company"), that are forward-looking statements are based on current management expectations that involve substantial risks and uncertainties which could cause actual results to differ materially from the results expressed in, or implied by, these forward-looking statements. Forward-looking statements relate to future events or our future financial performance and include, but are not limited to, projected financial performance, expected development of the business, plans and expectations about future investments, our contractual arrangements and relationships with third parties, the ability of our portfolio companies to achieve their objectives, the ability of the Company's investment adviser to attract and retain highly talented professionals, our ability to maintain our qualification as a regulated investment company and as a business development company, our compliance with covenants under our borrowing arrangements, and the future liquidity of the Company. We generally identify forward-looking statements by terminology such as "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "target," "projects," "outlook", "contemplates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of these terms or other similar words. Forward-looking statements are based upon current plans, estimates and expectations that are subject to risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove to be incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. Forward-looking statements are subject to change at any time based upon economic, market or other conditions. More information on these risks and other potential factors that could affect the Company's financial results, including important factors that could cause actual results to differ materially from plans, estimates or expectations included herein, is included in the Company's filings with the Securities and Exchange Commission (the "SEC"}, including in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of the Company's most recently filed quarterly report on Form 10-Q and annual report on Form 10-K, as well as in subsequent filings. In light of these and other uncertainties, the inclusion of a projection or forward-looking statement in this presentation should not be regarded as a representation by us that our plans and objectives will be achieved. We do not undertake to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required to be reported under the rules and regulations of the SEC. Quarterly Highlights Third Quarter 2025 BCP Investment Corporation • • - Core investment income* 1 of $15.3 million for the quarter, as compared to $12.6 million for the quarter ended 6/30/25 and $15.2 million for the quarter ended 9/30/24. Net investment income of $8.8 million ($0.71 per share) for the quarter, compared to $4.6 million ($0.50 per share) for the quarter ended 6/30/25 and $5.8 million ($0.63 per share) for the quarter ended 9/30/24. Net asset value (NAV) was $231.3 million ($17.55 per share), compared to $164.7 million ($17.89 per share) as of 6/30/25. Declared a regular quarterly base distribution of $0.47 per share of common stock. The distribution is payable on November 25, 2025, to shareholders of record at the close of business on November 17, 2025. Portfolio & Investment Activity Investment portfolio at fair value as of 9/30/25, was $539.7 million, comprised of 116 portfolio companies. Our debt investment portfolio totaled $450.2 million at fair value as of 9/30/25, spread across 28 industries and 79 portfolio companies with an average par balance per entity of approximately $3.2 million. This compares to a total investment portfolio at fair value as of 6/30/25, of $395.1 million, across 96 portfolio companies. Our debt investment portfolio totaled $323.1 million at fair value as of 6/30/25, spread across 25 industries and 69 portfolio companies, with an average par balance per entity of approximately $2.6 million. Deployments of approximately $14.2 million and repayments and sales of approximately $43.8 million, resulting in net repayments and sales of approximately $29.6 million. Weighted average annualized yield, excluding income from non-accruals and CLOs, was approximately 13.8% as of 9/30/25. Debt investments on non-accrual as of 9/30/25, were ten, representing 3.8% and 6.3% of the Company's investment portfolio at fair value and amortized cost, respectively. This compares to six debt investments representing 2.1% and 4.8% of the portfolio at fair value and amortized cost, respectively, as of 6/30/25. Liquidity & Capital Resources Par value of outstanding borrowings, as of 9/30/25, was $324.6 million, which compares to $255.4 million as of 6/30/25, with an asset coverage ratio of total assets to total borrowings of 171% as compared to 165% as of 6/30/25. On a net basis, leverage as of 9/30/25, was 1.3x* 2 ) compared to 1.4x* 2 ) as of 6/30/25. income reported total income in U.S. or U.S. the of price discount accounting in connection the Inc. Corporation Logan ("LRF mergers. the is useful disclosure for its financial to the giving to core is non-U.S. GAAP should not for earnings in U.S. GAAP. income should on in such U.S. GAAP in BCP financial is calculated excluding debt costs, less cash cash cash (B) NAV. BCP Corp. net is useful it reflects the financial condition of $17.4 million, million $23.5 million of cash of September 30, 30, and March 31, the net is non-U. S. GAAP and should not a for the other in U.S. GAAP. Instead, net should on in connection such U.S. GAAP in BCP financial condition. (2) Quarterly Highlights Recent JMilestones 6 Upcoming fnitinfives BCP Investment Corporation Merger and Rebranding: On July 15, 2025, the Company closed its merger with Logan Ridge Finance Corporation ("LRFC Acquisition") and, following a rebrand in August, began operating as BCP Investment Corporation, continuing to trade on Nasdaq under the ticker "BCIC," marking a major milestone in scale, diversification, and operational efficiency. Note Offering: On October 10, 2025, the Company entered into a note purchase agreement in connection with the issuance and sale of $35.0 million aggregate principal amount of its 7.50% notes due 2028 (the "2028 Notes") and $75.0 million aggregate principal amount of its 7.75% notes due 2030 ( the "2030 Notes", together with the 2028 Notes, the "Notes"), under an effective shelf registration statement. The offering closed and the Notes were issued on October 15, 2025. Recently Completed Milestones Upcoming Initiatives Share Repurchase Program: As previously announced, BCIC's Board of Directors has authorized an open market stock repurchase program of up to $10 million for the period from March 12, 2025, to March 31, 2026. Between October 1, 2025 and November 4, 2025, the Company repurchased 103,690 shares of its common stock for an aggregate cost of approximately $1.2 million at an average price of $11.62 per share. The Company, its management, the Adviser, and the Company's affiliates intend to commence a modified "Dutch Auction" tender offer (the "Tender Offer") to purchase up to $9.0 million of the Company's common stock. The Company is expected to offer to repurchase at least $7.5 million, with its management, the Adviser, and the Company's affiliates repurchasing any remaining shares tendered up to $9.0 million. The Tender Offer is expected to commence on or after November 10, 2025 and expire at 11:59 p.m. Eastern time, on or after December 10, 2025, unless extended. Based on the number of shares tendered and the prices specified by the tendering stockholders, the Company will determine the lowest per-share price that will enable it, its management, the Adviser, and the Company's affiliates to acquire up to $9.0 million of its common stock. All shares accepted in the Tender Offer will be purchased at the same price even if tendered at a lower price. Beginning in 2026: The Company will transition to paying its currently quarterly base distribution on a monthly basis, while retaining the potential for quarterly supplemental distributions. Fot the Three Months Ended (Dollar amounts in thousands) September 30, 2024 December 31, 2024 March 31, 2025 June 30, 2025 September 30, 2025 Total Investment Income $15,177 $14,392 $12,118 $12,630 $18,940 Less: Purchase discount accretion (25) (25) (16) - (3,618) Core investment income (1) 15,152 14,367 12,102 12,630 15,322 Total Expenses 9,375 8,853 7,778 8,073 10,280 Incentive fee waiver - - - - (188) Total Net Expenses 9,375 8,853 7,778 8,073 10,092 Net Investment Income 5,802 5,539 4,340 4,557 8,848 Less: Purchase discount accretion (25) (25) (16) - (3,618) Incentive fee addback 4 4 3 0 0 Core net investment income (2) 5,781 5,518 4,327 4,557 5,230 Net realized gain (loss) on investments (11,419) (10,785) (173) (15,840) (2,678) Net change in unrealized appreciation (depreciation) on investments 4,511 2,390 (3,903) 6,628 15,525 Tax (provision) benefit on realized and unrealized gains (loss) on investments - 316 (346) 137 1,935 Net realized gain (loss) on extinguishment of debt (403) - - - - Net increase/(decrease) in Core net assets resulting from operations (3) ($1,530) ($2,561) ($95) ($4,518) $23,630 Per Share Core Net Investment Income $0.63 $0.60 $0.47 $0.50 $0.42 Net Realized and Unrealized Gain / (Loss) on Investments ($0.75) ($0.90) ($0.44) ($1.01) $1.02 Net Core Earnings ($0.17) ($0.28) ($0.01) ($0.49) $1.88 Distributions declared $0.69 $0.69 $0.54 $0.47 $0.47 Net Asset Value $20.36 $19.41 $18.85 $17.89 $17.55 For the Three Months Ended (Dollar amounts in thousands) September 30, 2024 December 31, 2024 March 31, 2025 June 30, 2025 September 30, 2025 Interest Income: Non-controlled/non-affiliated investments $11,357 $9,145 $7,300 $8,463 $13,295 Non-controlled affiliated investments 356 1,096 316 324 1,434 Total interest income 11,713 10,241 7,616 8,787 14,729 Payment-in-kind income: Non-controlled/non-affiliated investments 1,343 2,217 2,853 2,354 2,507 Non-controlled affiliated investments 209 210 208 95 198 Total payment-in-kind income 1,552 2,427 3,061 2,449 2,705 Dividend income: Non-controlled affiliated investments 1,669 1,454 1,417 1,213 1,500 Total dividend income 1,669 1,454 1,417 1,213 1,500 Fees and other income: Non-controlled/non-affiliated investments 243 270 24 98 6 Non-controlled affiliated investments - - - 83 - Total fees and other income 243 270 24 181 6 Reported Investment Income $15,177 $14,392 $12,118 $12,630 $18,940 Less: Purchase discount accounting (25) (25) (16) - (3,618) Core Investment Income (1) $15,152 $14,367 $12,102 $12,630 $15,322 Reported Net Investment Income $5,802 $5,539 $4,340 $4,557 $8,848 NII Per Share $0.63 $0.59 $0.47 $0.50 $0.71 Core Net Investment Income (2) $5,777 $5,514 $4,324 $4,557 $5,230 NII Per Share $0.63 $0.60 $0.47 $0.50 $0.42 For the Three Months Ended (Dollar amounts in thousands) September 30, 2024 December 31, 2024 March 31, 2025 June 30, 2025 September 30, 2025 NAV, Beginning of Period $196,429 $187,982 $178,493 $173,511 $164,729 Net Investment Income 5,802 5,539 4,340 4,557 8,848 Net realized gain (loss) on investments (11,419) (10,785) (173) (15,840) (2,678) Net change in unrealized appreciation (depreciation) on investments 4,511 2,390 (3,903) 6,628 15,525 Tax (provision) benefit on realized and unrealized gains (losses) on investments - 316 (346) 137 1,935 Net realized gain (loss) from extinguishment of debt (403) - - - - Net decrease in net assets resulting from stockholder distribution (6,382) (6,345) (4,967) (4,325) (6,464) Stock repurchases (638) (688) - - (250) Stock issued under dividend reinvestment plan 82 84 67 61 63 Issuance of common shares (1) - - - - 49,596 NAV, End of Period $187,982 $178,493 $173,511 $164,729 $231,304 Leverage and Asset Coverage Gross Leverage 1.4x 1.5x 1.5x 1.6x 1.4x Net Leverage (2) 1.3x 1.3x 1.3x 1.4x 1.3x Asset Coverage 170% 167% 168% 165% 171% As of (Dollar amounts in thousands) September 30, 2024 December 31, 2024 March 31, 2025 June 30, 2025 September 30, 2025 Portfolio Sourcing (at Fair Value): BC Partners $339,747 $317,588 $326,614 $322,989 $388,832 Legacy KCAP $20,788 $20,291 $18,917 $16,814 $14,028 Legacy OHAI $0 $0 $0 $0 $0 Legacy GARS $57,683 $58,123 $52,744 $48,831 $50,484 Legacy HCAP (3) $10,760 $9,019 $8,148 $6,475 $6,680 Legacy LRFC (4) - - - - $43,279 Portfolio Summary: Total portfolio, at fair value $428,978 $405,021 $406,423 $329,464 $503,302 Total number of debt portfolio companies / Total number of investments (5) 72 / 194 71 / 180 72 / 180 69 / 185 79 / 213 Weighted Avg EBITDA of debt portfolio companies $111,503 $112,400 $129,902 $134,507 137956 Average size of debt portfolio company investment, at fair value $2,662 $2,508 $2,648 $2,646 $3,186 Weighted avg first lien / total leverage ratio (net) of debt portfolio 5.0x / 5.8x 5.0x / 5.8x 5.1x / 5.8x 5.1x / 5.9x 5.2x / 5.8x Portfolio Yields and Spreads: Weighted average yield on debt investments at par value (6) 11.9% 11.3% 11.0% 10.7% 13.8% Average Spread to SOFR 718 bps 739 bps 735 bps 714 bps 673 bps Portfolio Activity: Beginning balance $444,370 $428,978 $405,021 $406,423 $395,109 Purchases / draws (7) 4,543 26,764 20,361 14,191 170,949 Exits / repayments -14,670 -43,489 -15,660 -17,049 -43,828 Gains / (losses) / accretion -5,265 -7,232 -3,299 -8,456 17,471 Ending Balance $428,978 $405,021 $406,423 $395,109 $539,701

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