Mohammed Hossain's questions to Chicago Atlantic Real Estate Finance Inc (REFI) leadership • Q2 2025
Question
On behalf of Pablo Zuanic, Mohammed Hossain of Zuanic & Associates LLC asked about the general BDC sector sentiment, potential regulatory changes, the evolution of the deal pipeline since the company's transition, and whether cannabis rescheduling news was causing clients to pause funding decisions.
Answer
CEO Peter Sack explained that while the BDC sector faces macro uncertainty, Chicago Atlantic's niche strategy provides insulation. He noted it is too early to speculate on regulatory changes but highlighted that the pipeline has expanded with non-cannabis deals and new cannabis opportunities like restructuring-driven asset sales and ESOP transactions. Both Sack and President Dino Colonna stated that rescheduling news has actually spurred capital demand, as operators are optimistic about growth and wary of past "head fakes" on federal reform.