BCP Investment Corporation — Second Quarter 2026 Earnings Summary

Financial Performance

• Total investment income for the quarter ended June 30, 2026, was $15.2 million, compared to $12.6 million for the quarter ended June 30, 2025.
• Core investment income (excluding purchase price accounting impact) for the quarter was $12.9 million, compared to $12.6 million for the same period in 2025.
• Net investment income (NII) for the quarter was $5.5 million ($0.45 per share), compared to $4.6 million ($0.50 per share) for the quarter ended June 30, 2025.
• Net increase (decrease) in net assets resulting from operations for the quarter was $(9.9) million ($(0.80) per share), compared to $(4.5) million ($(0.49) per share) for the quarter ended June 30, 2025.
• Net investment income per share for the six months ended June 30, 2026, was $1.00, compared to $0.97 for the six months ended June 30, 2025.
• Net assets as of June 30, 2026, were $179.5 million ($14.49 per share), down from $193.0 million ($15.60 per share) as of March 31, 2026.
• Investment portfolio at fair value was $452.7 million as of June 30, 2026, compared to $476.9 million as of March 31, 2026.
• Par value of outstanding borrowings was $286.1 million as of June 30, 2026, down from $342.2 million as of March 31, 2026.
• Asset coverage ratio was 162% as of June 30, 2026, compared to 156% as of March 31, 2026.
• Gross leverage was 1.6x and net leverage was 1.6x as of June 30, 2026, compared to 1.8x and 1.5x, respectively, as of March 31, 2026.
• Weighted average annualized yield was approximately 12.0% as of June 30, 2026.
• Non-accrual investments decreased to 11 across 7 portfolio companies (3.1% of fair value portfolio) as of June 30, 2026, from 12 across 9 portfolio companies (2.6% of fair value portfolio) as of March 31, 2026.

Guidance and Future Outlook

• Management stated they remain focused on disciplined portfolio management, selective deployment, prudent capital allocation, and maintaining financial flexibility.
• Management believes the company is better positioned to navigate the current environment and pursue long-term value creation following recent balance sheet strengthening and portfolio repositioning.
• The Board approved regular monthly base distributions totaling $0.27 per share for the fourth quarter of 2026.

Business Segments and Product Lines

• The debt investment portfolio, excluding CLO Funds, equities, and Joint Ventures, totaled $349.7 million at fair value as of June 30, 2026, spread across 33 industries and 71 portfolio companies.
• Approximately 34% of the quarter's unrealized markdowns were attributable to investments classified as "Software," and approximately 47% when including software-exposed names.
• The portfolio includes First Lien Debt ($287.1 million fair value), Second Lien Debt ($38.1 million), Subordinated Debt ($24.6 million), Collateralized Loan Obligations ($15.5 million), Joint Ventures ($44.8 million), and Equity ($42.4 million).
• Approximately 87.8% of the Debt Securities Portfolio at par value were floating rate, with 93.4% of these loans containing interest rate floors between 0.50% and 5.25%.

Market and Competitive Landscape

• Management attributed unrealized markdowns to broader market dynamics and sector-specific dislocation rather than widespread deterioration in underlying credit fundamentals.
• The company operates in the middle market, originating, structuring, financing, and managing term loans, mezzanine investments, and selected equity securities.

Risks and Challenges

• Investment income is affected by fluctuations in interest rates, including SOFR and prime rates.
• Risks include uncertainty of expected financial performance, ability to maintain debt-to-asset ratios, changes in economic conditions, and competition.
• Non-accrual investments remain a concern, with a subset of the population recognized on a cash basis only.

Management Commentary and Tone

• CEO Ted Goldthorpe stated the company continued to execute on its strategy of strengthening the balance sheet and actively repositioning the portfolio.
• Management noted results reflected elevated repayments, lower non-recurring fee income, and a smaller earning asset base.
• Despite headwinds, core net investment income covered regular base distributions.
• Management expressed confidence that the actions taken to strengthen the balance sheet and reposition the portfolio leave the company better positioned for long-term value creation.

Other Key Points

• On July 31, 2026, the Company paid a regular monthly base distribution of $0.09 per share.
• On August 6, 2026, the Company declared regular monthly base distributions of $0.09 per share for October, November, and December 2026.
• Subsequent to quarter end, the Company amended its KeyBank Credit Facility, increasing committed capacity from $75.0 million to $150.0 million, extending the reinvestment period to August 2029 and maturity to August 2031, and reducing borrowing spreads by 30 basis points.
• Proceeds from the amended KeyBank facility were used to repay in full and terminate the Revolving Credit Facility with JPMorgan Chase, consolidating secured revolving borrowings into a single facility.
• The Company redeemed $40.0 million of its 2026 Notes during the quarter.
• Deployment of approximately $20.9 million and repayments/sales of approximately $34.9 million resulted in net repayments and sales of approximately $14.0 million during the quarter.
• The Sixth Amendment to the KeyBank Credit Facility includes an uncommitted accordion feature permitting an increase to up to $200.0 million.