Chicago Atlantic BDC, Inc. and Chicago Atlantic Real Estate Finance, Inc.

Chicago Atlantic is an investment firm founded in 2018, specializing in opportunistic and niche credit investments. It operates through distinct publicly traded entities: Chicago Atlantic BDC, Inc. (LIEN) and Chicago Atlantic Real Estate Finance, Inc. (REFI). Chicago Atlantic BDC, Inc. is a specialty finance company regulated as a Business Development Company (BDC), primarily focused on direct loans to privately held middle-market companies, particularly within the cannabis sector and other underserved industries. Chicago Atlantic Real Estate Finance, Inc. is a commercial mortgage Real Estate Investment Trust (REIT) that originates and invests in first mortgage loans and other structured financings secured by commercial real estate, primarily for state-licensed cannabis operators. While the broader Chicago Atlantic firm is headquartered in Illinois, REFI lists its principal executive offices in Chicago, IL, and LIEN lists an office location in New York, NY in its SEC filings.

Both Chicago Atlantic BDC, Inc. and Chicago Atlantic Real Estate Finance, Inc. specialize in providing capital to the U.S. cannabis industry, a market segment often overlooked by traditional financial institutions due to federal regulations. Chicago Atlantic BDC, Inc. primarily offers first-lien, senior-secured debt to middle-market cannabis companies and other niche businesses, focusing on complex or dislocated sectors where risk is mispriced. Chicago Atlantic Real Estate Finance, Inc. provides senior secured, real-estate-backed loans to state-licensed cannabis operators, including cultivation, processing, and retail businesses, with a strategy centered on capital preservation and generating consistent income. Both entities emphasize senior-secured lending and aim to deliver attractive risk-adjusted returns.

A major development for both entities is the proposed all-stock merger between Chicago Atlantic BDC, Inc. and Chicago Atlantic Real Estate Finance, Inc., anticipated to finalize in the fourth quarter of 2026, subject to stockholder and regulatory approvals. This strategic consolidation is expected to result in a larger, more diversified Business Development Company with over $600 million in book equity, offering enhanced scale and liquidity. In recent financial reporting, Chicago Atlantic BDC, Inc. announced a stable $0.34 per share dividend for Q3 2026, maintaining a strong 16.0% weighted average yield on its fully senior secured debt portfolio with no non-accrual loans. Chicago Atlantic Real Estate Finance, Inc. reported Q2 2026 distributable earnings of $0.44 per share, slightly below its $0.47 dividend, with management attributing the difference to the timing of capital redeployment following loan prepayments. Peter Sack serves as CEO of Chicago Atlantic BDC, Inc., while Tony Cappell is Co-CEO and Director of Chicago Atlantic REIT Manager, LLC, which manages REFI.