Chicago Atlantic BDC Funds Two New Loans

The Tip Desk · November 12, 2026 · 3 min read

The cannabis-focused BDC booked $72.0 million of new loans, lifting investments to $399.6 million and net investment income to $8.3 million, or $0.36 a share.

Chicago Atlantic BDC, Inc. (LIEN), a specialty finance company that has elected to be regulated as a business development company, funded two new debt investments totaling $72.0 million in the third quarter ended September 30, 2026, reversing a quarter of net repayments and lifting the portfolio to a company-record size.

Loan principal outstanding rose $64.6 million to $402.6 million, after a $28.1 million decline in the prior quarter. Total investments at fair value increased to $399.6 million across 39 portfolio companies from $334.8 million across 37 companies at June 30. Scheduled and unscheduled principal repayments totaled $5.1 million, and the company sold a loan position for $3.0 million.

Chief Executive Officer Peter Sack said the year to date had been a record for gross originations, with $167.4 million deployed, including the $72.0 million to the two new borrowers in the third quarter. He said the company is one of the only publicly traded BDCs primarily focused on lending to cannabis operators and lower-middle-market companies.

Total investment income was $15.4 million, or $0.68 a share, up from $14.0 million, or $0.61 a share, in the second quarter. Net investment income was $8.3 million, or $0.36 a share. Net expenses were $7.1 million, or $0.32 a share. The net increase in net assets resulting from operations was $8.0 million, or $0.35 a share.

The net change in unrealized appreciation (depreciation) was a $0.2 million loss, or $0.01 a share, compared with a $1.6 million loss, or $0.07 a share, in the second quarter. There was a $0.1 million net realized loss on investments.

Weighted average yield on debt investments was 15.5%, down from 16.0% at June 30. An 84.1% aggregate loan portfolio bore a variable interest rate, versus 81.0% three months earlier. Sack said the portfolio remained 100% senior secured, with no investments on non-accrual.

Outstanding borrowings increased to $91.0 million and the debt-to-equity ratio to 0.30x from $27.0 million and 0.09x. Liquidity fell to $10.2 million, including $1.2 million of cash and $9.0 million available on a $100.0 million senior credit facility, from $73.9 million at June 30. As of November 11, 2026, the company had $94.5 million outstanding on the facility and approximately $6.7 million of liquidity.

Net asset value per share was $13.27, essentially unchanged from $13.26 at June 30. On November 9, 2026, the board declared a fourth-quarter dividend of $0.34 a share, payable January 15, 2027. The third-quarter dividend at that rate had been the eighth consecutive at $0.34 a share.

A $500 million shelf registration on Form N-2 was declared effective on September 30, 2026. On June 17, 2026, the company agreed to a merger with affiliated Chicago Atlantic Real Estate Finance, Inc. (REFI), expected to close in 2027 if conditions are met. Based on March 31, 2026 NAVs, former REFI stockholders would be expected to own approximately 50.5% of the company after the merger.