Barings Capital Investment Corporation 10-Q: NAV $21.88 at Sep 30, 2026, Down $0.53 Since December 31

What the vehicle is, and which Barings fund it is not

The company was formed on February 20, 2020 as a Maryland limited liability company and converted to a Maryland corporation on April 28, 2020, started investing on July 13, 2020, and is externally managed by Barings LLC, a subsidiary of Massachusetts Mutual Life Insurance Company. Shares were sold in a private placement under subscription agreements with capital commitments. It has elected to be taxed as a regulated investment company (RIC), so it generally passes income through to holders.

Three other Barings names get mixed up with it. The numbers below are from each fund’s own 10-Q for September 30, 2026.

For the listed company see our page on BBDC’s dividend, NAV and the credit support; for the non-traded fund with the tender offers, see Barings Private Credit Corp’s tender offers. A fourth name sometimes quoted with them, “Barings Credit Income Fund”, returned no filing in EDGAR full-text search on November 9, 2026. One more trap: the ticker BCIC on exchange quote pages belongs to a different company, BCP Investment Corporation, as in our list of BDC stocks. This fund has no ticker.

NAV per share, eight quarter-ends

Net assets grew 7.3% from December 2024 while shares grew 10.7% (our arithmetic), because new shares come only from the DRIP and are issued at NAV: 1,479,429 shares in nine months, 4.5% of the shares at the start of 2026. When NAV is falling, more shares share a slower-growing pool. Total return on NAV for the nine months was 6.24%, not annualized, against 8.26% a year earlier. In the third quarter NAV fell $0.09 (from $21.97), on NII of $21,113 thousand less $4,786 thousand of net realized losses, plus $1,069 thousand of net unrealized gains, less $20,785 thousand of dividends of which $10,868 thousand was reinvested in new shares (our arithmetic from the statement of changes in net assets).

Realized losses in 2026 are named in the 10-Q: Bariacum S.A ($2,772 thousand), Biolam Group ($2,186 thousand) and EMI Porta Holdco LLC, a restructuring ($1,879 thousand), against gains in other names, for a net realized loss on investments of $4,981 thousand. Unrealized depreciation on investments was $16,350 thousand for the nine months, with Policy Services Company, LLC the largest single markdown at $3,239 thousand.

Distributions against what the fund earns

At the September 30 NAV, four payments of $0.62 are $2.48 a year, or 11.3% of NAV (our arithmetic); that is a rate, not a promise, and the 10-Q says “We can offer no assurance that we will achieve results that will permit the payment of any level of cash distributions.” Total investment income fell to $34,199 thousand in the third quarter from $37,344 thousand a year earlier (down 8.4%) and to $101,163 thousand for nine months from $108,507 thousand (down 6.8%), on a smaller debt book, with debt investments outstanding at $1,119.1 million against $1,166.9 million a year earlier. Interest and financing costs fell faster, from $34,135 thousand to $27,419 thousand (down 19.7%), which is why NII held up. Payment-in-kind (PIK) income, which is interest added to the loan rather than paid in cash, was 9.7% of investment income for nine months against 12.5% a year earlier.

On the DRIP: shares are issued at the NAV at the last day of the quarter before the declaration. The December 9 payment was declared on November 5, so it reinvests at $21.88. Holders who do not opt out are taxed on the dividend as if it were cash, according to the 10-K. See our guides to estimated tax payments on REIT, BDC and K-1 income and 1099-DIV timing.

The portfolio: 329 companies, a quarter of it in a few affiliates

By industry heading, the five largest are the following (our tally of the subtotals in the schedule of investments, including affiliates and the small royalty holding; share of $1,308,431 thousand of fair value).

The five add to $814,468 thousand, 62.2% of the portfolio (our arithmetic). The finance line is large because of affiliates, not because of a pile of lenders’ loans. Affiliate investments are $210,983 thousand, 28.3% of net assets and 16.1% of the portfolio (our arithmetic). The largest are LLC units in Eclipse Business Capital, LLC ($68,948 thousand, 9.3% of net assets), preferred units in Rocade Holdings LLC ($63,971 thousand, 8.6%) and a first lien term loan to Policy Services Company, LLC ($20,499 thousand fair value on $26,114 thousand of principal, at 14.3% PIK). Together Eclipse and Rocade are 17.9% of net assets (our arithmetic). These are private holdings valued by the Adviser, which the board has designated as valuation designee, not by a market price.

Credit: non-accruals and risk ratings

In the third quarter the 10-Q records new non-accruals at BPG Holdings IV Corp. ($10.0 million cost, $6.4 million fair value), REP SEKO Merger Sub, LLC ($2.8 million cost, $1.4 million fair value) and, for a second loan, GPNZ II GmbH (cost $1.0 million, fair value nil). A separate PIK-only non-accrual, A.T. Holdings II LTD, has $7.1 million of cost (0.5% of the portfolio) and $5.5 million of fair value. In the Adviser’s own five-point scale, the 4 and 5 categories (performing materially or substantially below expectations) hold $61,167 thousand and $19,769 thousand, or 6.2% together against 6.0% at December 31, 2025 (our arithmetic); categories 1, 2 and 3 are 8%, 75% and 11%. The scale is the Adviser’s own, and the 10-Q says “Risk assessment is not standardized in our industry and our risk ratings may not be comparable to ones used by other companies.”

Leverage: Section 61(a)(2), the credit facility and the note swap

A BDC’s debt limit is set by the 1940 Act’s asset coverage test. Section 61(a)(2) lets a BDC use a 150% minimum rather than 200% once approved, and the 10-Q says this fund’s sole stockholder approved it on June 24, 2020. Reported coverage has risen as debt was repaid.

At September 30, 2026 the balance sheet carries $511,427 thousand of borrowings under the ING Capital credit facility and $99,980 thousand of notes net of fees, against $562,286 thousand and $99,943 thousand at December 31, 2025. That is 0.82 times net assets (our arithmetic). The ING borrowings are $371.5 million in dollars at a weighted 5.898%, plus pound, euro and Canadian-dollar loans (the euro loans are €103.5 million at 4.438%). Average ING borrowings fell to $531,569 thousand in nine months from $615,485 thousand a year earlier, and the weighted rate to 5.4% from 6.2%. The facility’s revolving period ends June 30, 2027 and its final maturity is June 30, 2028, or one year after the commitment period ends in connection with a liquidity event.

On October 22, 2026 the company issued $100.0 million of senior unsecured notes due February 22, 2028 at a fixed 6.79% (plus 0.75% a year if investment grade rating conditions are not met) and used the proceeds, with cash, to repay the 4.75% notes due February 22, 2027. On $100 million, the 2.04 points of extra coupon is $2.04 million a year, or about $0.06 a share (our arithmetic), a cost that starts in the fourth quarter.

Worked example (our arithmetic, illustrative). The book is 175.8% of net assets. A 1% fall in the fair value of the portfolio, $13.1 million, is $0.38 a share, or 1.8% of NAV at $21.88. Nine months of net realized and unrealized losses were $0.48 a share (2.1% of the starting NAV).

Fees and who is paid first

The 10-Q explains the drop in the income fee this way: “cumulative net capital losses within the trailing twelve-quarter lookback period reduced our Cumulative Pre-Incentive Fee Net Return, thereby limiting the amount of Income-Based Fee payable during 2026.” In our arithmetic the third-quarter fee of $1,881 thousand is 8.1% of pre-incentive NII of $23,344 thousand, against the 12.5% standard rate (which would be about $2,918 thousand); for nine months it is 10.3%. Together the two Barings fees took $8,648 thousand, 8.5% of nine-month investment income, while interest and financing took $27,419 thousand, 27.1%. Total expenses ran at 7.18% of average net assets, annualized, against 9.01% a year earlier.

Liquidity: what the 10-K says, and what no filing says

The terms are in the 10-K. The commitment period ends on the earlier of a liquidity event and “the seven-year anniversary of the initial closing of shares of common stock, which occurred on July 13, 2020”, which is July 13, 2027 (our arithmetic), about eight months from today. Before a liquidity event no investor can sell or transfer shares or commitment “unless we provide our prior written consent”. A liquidity event is a corporate control transaction, “which may include a transaction with an affiliated entity, including an affiliated BDC”, such as a sale or a merger for cash or listed securities. The 10-K adds that the board decides whether to pursue one, with stockholder approval as Maryland law requires.

If no liquidity event happens by then, the 10-K says the board “will use its best efforts to wind down and/or liquidate and dissolve the Company.” What no filing we read says: whether a merger with BBDC or any other Barings fund is planned, what price it would use, or whether the board would extend the term. The 10-Q for September 30, 2026 repeats the liquidity-event definition in its description of the credit facility but announces no transaction. A reader with shares should watch Form 8-K and the 10-K for 2026, due in early 2027.

Other items in the 10-Q: one of the fund’s two co-CEOs resigned on November 4, 2026 (the filing says not because of any disagreement) and the other became sole CEO on November 5; after quarter-end the fund made $29.6 million of new commitments, $21.1 million of which closed and funded at a weighted 12.5% yield on the debt.

What a reader can do with this

• Check your statement. Compare the NAV on it with $21.88 at September 30, 2026, and with $22.41 at December 31, 2025. Your drawdowns are done (all $568.7 million is funded), so what matters now is the NAV, the DRIP election and the tax reporting.
• Decide on the DRIP. About half of the distributions are reinvested, and reinvestment keeps adding to a position you may not be able to sell. The opt-out has to reach the plan administrator at least 10 business days before the distribution date, according to the 10-K.
• Know the clock. July 13, 2027 is in the 10-K, not in a newsletter. Ask the fund’s investor relations what the board intends to do before then, and ask what a merger price would be based on.
• Compare with the other Barings vehicles. BPCC runs tender offers, covered on our page; BBDC trades on the NYSE and had a NAV of $10.92. See our non-traded BDC list, the private credit funds comparison and, for another private BDC read the same way, the MidCap Apollo Institutional Private Lending 10-Q. New to the structure? Start with what a BDC is.
• Worked example (our arithmetic, illustrative). A holder with $500,000 at the December 31, 2025 NAV had 22,311 shares. Over nine months $1.90 a share is $42,391 of dividends; NAV down $0.53 is $11,825; the net is about $30,566, or 6.1% before reinvestment effects (the fund reports 6.24%).

If a large share of your savings sits in a private BDC that has no way to sell on a schedule and a stated end date, a conversation with a qualified adviser about the tax and liquidity side may be worth having.

FAQ

All figures are from SEC EDGAR filings of Barings Capital Investment Corporation (CIK 1811972) read on November 9, 2026: the Forms 10-Q for September 30, 2026 (accession 0001811972-26-000026), June 30, 2026 (0001811972-26-000018), March 31, 2026 (0001811972-26-000014) and September 30, 2025 (0001811972-25-000032), the Form 10-K for 2025 (0001811972-26-000004) and the Form 8-K of October 27, 2026 (0001811972-26-000020); and, for comparison, the Forms 10-Q for September 30, 2026 of Barings BDC, Inc. (0001379785-26-000040) and Barings Private Credit Corporation (0001859919-26-000099). The last filing on this CIK was the Form 10-Q of November 5, 2026. Ratios, sums, percentages, the industry tally, the worked examples and the July 13, 2027 date are our arithmetic. This is analysis of public documents, not investment, legal or tax advice.