Chicago Atlantic BDC is a specialty finance company structured as a Business Development Company (BDC) that makes direct loans to privately held businesses in markets underserved by traditional lenders. Its primary focus is lending to cannabis companies operating in U.S. state-licensed markets — a space that conventional banks largely avoid due to federal illegality, giving Chicago Atlantic significant pricing power and favorable deal terms. Cannabis borrowers use these loans to fund growth, acquisitions, refinancings, and recapitalizations. Chicago Atlantic lends primarily through first lien senior secured loans with two-to-four year terms, targeting lower middle-market operators with low leverage and strong collateral. Beyond cannabis, Chicago Atlantic also lends to non-cannabis lower middle-market companies across three sub-strategies: growth and technology lending, esoteric and asset-based lending, and liquidity solutions for event-driven transactions. Roughly 75–80% of the portfolio is cannabis and 20–25% is non-cannabis. Chicago Atlantic earns income primarily from interest on its loan portfolio, which is mostly floating rate and carried a weighted average yield of approximately 15.8% as of September 30, 2025. As a BDC organized as a Regulated Investment Company, Chicago Atlantic must distribute at least 90% of taxable income to shareholders annually, so nearly all net investment income flows out as dividends. Chicago Atlantic is externally managed by Chicago Atlantic BDC Advisers, part of a broader alternative investment platform managing approximately $2.3B in capital.