Key Highlights

• BCIC declared monthly base distributions of $0.09 per share for October, November and December 2026, a $0.27 quarterly-equivalent base rate.

• Second-quarter NAV fell to $179.5 million, or $14.49 per share, from $193.0 million, or $15.60 per share, at March 31.

• Net Investment income was $5.5 million, or $0.45 per share, down from $6.9 million, or $0.55 per share, in the first quarter.

• The company amended its KeyBank Credit Facility after quarter-end, increasing committed capacity to $150 million and extending the reinvestment period to August 2029.

BCP Investment Corporation's (NASDAQ:BCIC) monthly base distribution of $0.09 per share, a $0.27 quarterly-equivalent rate, is payable in October, November and December 2026. Management said approximately 40% of the quarter's unrealized markdowns were attributable to investments classified as software in the company's schedule of investments, rising to approximately 70% when including software-exposed names, alongside "market-driven valuation pressure rather than fundamental credit deterioration," with the company noting 94% of its software exposure sits in what it describes as mission-critical, structurally protected portfolio companies.

Dividend Program and Shareholder Returns

BCP Investment Corporation declared monthly base distributions of $0.09 per share for October, November and December 2026, an aggregate fourth-quarter base distribution of $0.27 per share, continuing the same $0.09 monthly rate paid for July, August and September. The company transitioned its distribution schedule from quarterly to monthly beginning in 2026, while retaining the ability to declare supplemental distributions when supported by earnings; no supplemental distribution accompanied this declaration. During the six months ended June 30, the company also repurchased 172,159 shares for approximately $2.1 million at an average price of $11.97, which it said was accretive to NAV by $0.07 per share.

About the Company

BCP Investment Corporation is a Business Development Company specializing in unitranche loans, first-lien loans, second-lien loans, subordinated debt, mezzanine and Equity co-investments in middle-market companies.

Financial Performance Behind the Payout

BCP Investment Corporation reported second-quarter total investment income of $15.2 million, down from $17.6 million in the first quarter. Core investment income, excluding purchase-price accounting impacts, was $12.9 million, down from $14.8 million. Net investment income was $5.5 million, or $0.45 per share, compared with $6.9 million, or $0.55 per share, in the first quarter. Net asset value was $179.5 million, or $14.49 per share, at June 30, down from $193.0 million, or $15.60 per share, at March 31. The company recorded $10.5 million of net realized losses on investments during the quarter, alongside deployment of approximately $20.9 million and repayments and sales of approximately $34.9 million.

Credit Quality and Balance Sheet Actions

Debt investments on non-accrual as of June 30 numbered 11, attributable to 7 portfolio companies, representing 3.1% and 5.7% of the investment portfolio at Fair Value and amortized cost respectively, compared with 12 investments across 9 portfolio companies representing 2.6% and 6.2% at March 31. Subsequent to quarter-end, the company amended its KeyBank credit facility, reducing the borrowing spread by 30 basis points during both the reinvestment and amortization periods, extending the reinvestment period to August 2029 and the Maturity date to August 2031, and increasing committed capacity from $75.0 million to $150.0 million. Proceeds from the amended facility were used to repay all outstanding advances under the company's separate JPMorgan revolving credit facility, which was then terminated.

Outlook

The NAV decline was concentrated in software and software-exposed names, which the company frames as valuation-driven rather than credit-driven; non-accruals, while up slightly in dollar terms, actually declined as a percentage of the portfolio at fair value. The reduced Q4 monthly base distribution of $0.09, matching Q3's rate rather than tracking the higher Q1 NII level, aligns the payout closer to the current quarter's $0.45 NII than the prior quarter's $0.55, a recalibration worth watching if NII stabilizes or declines further.