Key Highlights

  • Net asset value was $14.49 per share at June 30, down from $15.60 at March 31 and $16.68 at year-end.
  • Net investment income was $0.45 per share, while the net decrease in net assets from operations was $0.80 per share.
  • Non-accruals covered 11 debt investments across seven companies, or 3.1% of fair value and 5.7% of amortized cost.
  • The KeyBank facility was increased to $150.0 million and the JPMorgan revolver was repaid and terminated on August 6.

BCP Investment (NASDAQ:BCIC) shares were trading near their 52-week low at USD 6.48 on October 19, 2026, down 2.78%. The business development company reported a second quarter net decrease in net assets from operations on August 6 and, the same day, restructured its bank financing. Its most recent official update, an October 8 notice, set the date for third quarter results.

Net asset value, income and portfolio marks

Net assets were $179.5 million, or $14.49 per share, at June 30, 2026, compared with $193.0 million, or $15.60, at March 31 and $209.2 million, or $16.68, at December 31, 2025. The company attributed the quarterly decline mainly to unrealized mark-to-market changes, with about 34% of the quarter's unrealized markdowns in software investments and about 47% including software-exposed names. Management described the software pressure as reflecting broader market dynamics and sector-specific dislocation rather than widespread credit deterioration.

Total investment income was $15.2 million, against $17.6 million in the first quarter and $12.6 million a year earlier. Net investment income was $5.5 million, or $0.45 per share, compared with $0.55 in the first quarter. Net realized losses on investments were $10.5 million, and net unrealized depreciation was $4.7 million. The net decrease in net assets from operations was $9.9 million, or $0.80 per share, and $20.0 million, or $1.62 per share, for six months. Non-GAAP core investment income, which excludes $2.2 million of purchase discount accretion from earlier mergers, was $12.9 million.

Portfolio mix and credit quality

The portfolio was valued at $452.7 million across 107 entities, against $476.9 million and 108 entities at March 31. First lien debt made up 63.4% of fair value, down from 68.7% at year-end 2025, with second lien at 8.4%, subordinated debt at 5.4%, CLOs at 3.4%, joint ventures at 9.9% and equity at 9.4%. The weighted average yield was about 12.0%, excluding non-accruals and CLOs.

Non-accruals comprised 11 debt investments across seven portfolio companies, representing 3.1% of fair value and 5.7% of amortized cost, compared with 2.6% and 6.2% at March 31. The company deployed about $20.9 million in the quarter against about $34.9 million of repayments and sales. Management fees were $1.6 million, and no performance-based incentive fee was recorded.

Borrowings, liquidity and the KeyBank amendment

Par value of borrowings was $286.1 million at June 30, with an asset coverage ratio of 162%, up from 156% at March 31, and a weighted average interest rate of 7.0%. The company redeemed $40.0 million of 2026 Notes during the quarter. Unrestricted cash fell to $2.5 million from $51.8 million at March 31, and available capacity was $58.5 million under the JPMorgan revolver and $27.5 million under the KeyBank facility.

On August 6, a sixth amendment raised the KeyBank facility from $75.0 million to $150.0 million, with an uncommitted accordion to $200.0 million. The spread fell to 2.50% from 2.80% during the reinvestment period, which now runs to August 6, 2029, and maturity was extended to August 6, 2031. Proceeds repaid and terminated the JPMorgan revolver, and some investments moved to the KeyBank collateral pool.

Outlook: distributions and next report

The company paid a $0.09 per share monthly distribution on July 31 and declared the same amount for October, November and December 2026, payable on October 30, December 4 and December 30. The chief executive said core net investment income, a non-GAAP measure, covered the regular base distributions.

Management said it is focused on strengthening the balance sheet and repositioning the portfolio, with disciplined portfolio management, selective deployment and financial flexibility. Third quarter results are scheduled for release after the market closes on Thursday, November 5, with a call on Friday, November 6, at 10:00 a.m. ET.