Christopher Nolan's questions to Investcorp Credit Management BDC (ICMB) leadership • Q4 2025
Question
The analyst asked about the quarter's spillover income, the strategy to improve returns given high leverage and low profitability, whether to expect portfolio contraction to lower leverage, and if the company has considered liquidating the BDC due to its stock trading significantly below NAV.
Answer
The company confirmed spillover income drove the supplemental distribution. The strategy to improve returns is to grow assets under management to better absorb the expense base. They expect natural deleveraging from portfolio repayments in the second half of the year and will manage new deployments carefully. Regarding liquidation, management's primary focus is on stabilizing the portfolio to improve shareholder value, but they will look into the specific transaction mentioned by the analyst.