Chicago Atlantic BDC: Merger Upside Remains Intact After Q2

Mare Evidence Lab 6.15K Followers Follow Summary Chicago Atlantic BDC's Q2 credit quality remained strong, with 0% non-accruals, 100% senior-secured exposure, and a 16% weighted-average gross portfolio yield. The $1.1 billion pipeline and $25 million post-quarter deployment suggest weaker Q2 originations were timing-related rather than structural. Chicago Atlantic Real Estate Finance's Koach transaction adds a 12% yielding asset and should be modestly NAV accretive because new shares were issued above book value. Both companies still trade at meaningful NAV discounts, while the merger adds scale, diversification, and potential support from a post-closing buyback. Nutthaseth Vanchaichana/iStock via Getty Images Today, we are back to comment on Chicago Atlantic BDC ( LIEN ) and Chicago Atlantic Real Estate Finance ( REFI ). These companies are correlated and are managed by the same credit platform, i.e., Chicago Atlantic. In This article was written by Mare Evidence Lab 6.15K Followers Follow Buy-side hedge professionals conducting fundamental, income oriented, long term analysis across sectors globally in developed markets. Please shoot us a message or leave a comment to discuss ideas.DISCLOSURE: All of our articles are a matter of opinion, informed as they might be, and must be treated as such. We take no responsibility for your investments but wish you best of luck. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.