Chicago Atlantic BDC Shares Rise on 1Q Growth Despite Private-Credit Pressure

Dow Jones
05/15
 

By Katherine Hamilton

 

Chicago Atlantic BDC shares rose after the company recorded first-quarter growth despite pressure in the private credit industry.

The stock rose 8% to $9.81 on Thursday. Shares are still down 5% this year.

The provider of senior secured loans said net investment income increased 30% to $9.96 million in the first quarter, which ended March 31.

"While the broader private credit markets have experienced pressure regarding portfolio performance, dividend coverage concerns and interest rate uncertainty, Chicago Atlantic BDC has become stronger this quarter," Chief Executive Peter Sack said.

The company, which is focused on the cannabis industry, said it funded a record level of investments and grew its portfolio to its biggest size yet.

Sack also said the federal government's recent policy change to reschedule medical cannabis represents "the most significant federal policy shift in decades," which it says could be an inflection point to enhance borrower credit quality and industry fundamentals.

 

Write to Katherine Hamilton at katherine.hamilton@wsj.com

 

(END) Dow Jones Newswires

May 14, 2026 13:45 ET (17:45 GMT)

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