We advised Silver Spike Investment Corp., now named Chicago Atlantic BDC, Inc., on the transaction

Davis Polk advised Silver Spike Investment Corp., a specialty finance company that has elected to be regulated as a business development company (BDC), in connection with its acquisition from Chicago Atlantic Loan Portfolio, LLC, a Chicago Atlantic-managed fund, of a portfolio of loans in exchange for newly issued shares of the BDC’s common stock. As a result of the loan portfolio acquisition, the BDC has net assets of approximately $300 million and investments in 28 portfolio companies.

In connection with the loan portfolio acquisition, the BDC was renamed Chicago Atlantic BDC, Inc., and its ticker symbol was changed to LIEN.

Chicago Atlantic BDC, Inc.’s investment objective is to maximize risk-adjusted returns on equity for its stockholders by investing primarily in direct loans to privately held middle-market companies, with a focus on cannabis companies. Chicago Atlantic BDC, Inc. is managed by Chicago Atlantic BDC Advisers, LLC, an investment manager focused on the cannabis and other niche or underfollowed sectors.

The Davis Polk investment management team included partner Gregory S. Rowland, counsel Leon E. Salkin and associate Victoria Glass. The M&A team included partner Lee Hochbaum, and associates F. Adam Abulawi and Rahul Srivastava. Partner Derek Dostal provided capital markets advice. Partner William A. Curran and associate Danielle Rapaccioli provided tax advice. All members of the Davis Polk team are based in the New York office.

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