Key facts
- BCP agreed to buy Investcorp Credit Management BDC at 90% of adjusted net asset value at closing, Reuters reported.
- The consideration was worth an estimated $1.38 per share using BCP's November 9 share price, a 126% premium to Investcorp's 61-cent close that day.
- BCP's third-quarter net investment income fell to $4.6 million, or 37 cents a share, from $5.5 million, or 45 cents.
- BCP's net asset value per share dropped 9.4% to $13.13 at the end of September from $14.49 three months earlier.
- BCP recorded $17.5 million in net realised and unrealised investment losses in the quarter.
- Bain Capital Specialty Finance's quarterly net investment income slipped to 43 cents a share from 44 cents, with NAV at $16.49 from $16.65.
BCP Investment Corporation, a BC Partners affiliate, agreed to acquire Investcorp Credit Management BDC in a transaction valuing the target at 90% of its adjusted net asset value, according to a Reuters report published on November 13, 2026. The agreement was announced on Wednesday, November 11. Investcorp shares rose about 71% by Thursday's close, while BCP shares fell about 15.5%.
The consideration was worth an estimated $1.38 per share using BCP's November 9 share price, a 126% premium to Investcorp's 61-cent closing price that day. Investcorp Chief Executive Suhail Shaikh said the lender's small size had become difficult to manage in current market conditions. "ICMB's size and scale have been challenging to navigate," Shaikh said.
The deal came just over two weeks after Ares Capital, the largest publicly traded BDC, agreed to acquire Apollo-affiliated MidCap Financial Investment Corporation in a stock-and-cash deal with an enterprise value of about $2.6 billion. The transactions point to growing consolidation among listed BDCs, which lend mainly to middle-market private companies and give public-market investors exposure to private credit. Several trade at steep discounts to reported net asset value, reflecting concerns about credit quality, earnings and the valuation of loans that rarely change hands.
BCP's third-quarter results illustrate the pressure on smaller lenders. Net investment income fell to $4.6 million, or 37 cents a share, from $5.5 million, or 45 cents, in the preceding quarter. Total investment income fell to $13.9 million from $15.2 million as loan repayments continued to outpace new lending. Net asset value per share dropped 9.4% to $13.13 at the end of September from $14.49 three months earlier, and BCP recorded $17.5 million in net realised and unrealised investment losses during the quarter.
Credit metrics were mixed. Non-accrual investments, where lenders stop booking regular interest income, fell to 2.8% of the portfolio at fair value from 3.1% in June, but rose to 6.0% from 5.7% on an amortised-cost basis. Bain Capital Specialty Finance reported a milder decline: quarterly net investment income slipped to 43 cents a share from 44 cents, while NAV fell to $16.49 from $16.65. Its quarterly dividend was unchanged at 42 cents a share, leaving it narrowly covered by income.