Cion Investment Corporation

Company Overview

Business Model: CĪON Investment Corporation is an externally managed, non-diversified, closed-end management investment company regulated as a Business Development Company (BDC) under the 1940 Act and has elected to be treated as a Regulated Investment Company (RIC) for U.S. federal income tax purposes. Its investment objective is to generate current income and, to a lesser extent, capital appreciation. The Company primarily invests in senior secured debt (first lien, second lien, and unitranche loans) and, to a lesser extent, collateralized securities, structured products, unsecured debt, and equity of private and thinly-traded U.S. middle-market companies. Middle-market companies are generally defined as possessing annual EBITDA of $75 million or less, with investments typically ranging from $5 million to $50 million. Up to 30% of assets may be invested opportunistically in non-qualifying assets, including foreign securities. CION Investment Management, LLC (CIM), an affiliate, manages the Company's investment decisions and provides administrative services.

Market Position: The Company operates within the large and fragmented U.S. middle-market lending sector. This market comprises approximately 200,000 companies, employing 48 million people and generating over $10 trillion in annual revenue. The Company competes with other BDCs, investment funds (private equity, mezzanine, CLOs, hedge funds), commercial and investment banks, and commercial financing companies. Its competitive advantages are based on its reputation, investment platform, the seasoned investment professionals of CION Investment Management, LLC, experience and focus on middle-market companies, disciplined investment philosophy, industry focus and relationships, and flexible transaction structuring.

Recent Strategic Developments:

• Joint Venture Formation: On December 21, 2021, CĪON Investment Corporation formed CION/EagleTree Partners, LLC, an off-balance sheet joint venture with ET-BC Debt Opportunities, LP (an affiliate of EagleTree Capital, LP). CĪON Investment Corporation contributed a portfolio of second lien loans and equity investments, while ET-BC contributed proprietary Firm-level cash.
• Debt Issuance & Listing: The Company issued 7.50% Notes due 2031 on February 9, 2026, which began trading on the NYSE under "CICC" on February 12, 2026.
• Share Repurchase Program Expansion: The share repurchase policy was increased by $20 million to an aggregate of $80 million on August 5, 2025.
• Advisory Agreement Renewal: The investment advisory agreement with CION Investment Management, LLC was renewed on August 5, 2025, for twelve months commencing August 9, 2025.

Geographic Footprint: The Company's investment portfolio is primarily concentrated in the United States, representing 97.6% of the portfolio at fair value as of December 31, 2025. Other minor exposures include Canada (2.0%), Cayman Islands (0.3%), and Bermuda (0.1%). The Company's principal executive offices are located in New York, New York, with an additional office in Los Angeles.

Financial Performance

Revenue Analysis

Profitability Metrics:

• Net Investment Income Margin: 38.6% (2025)
• Net (Decrease) Increase in Net Assets Margin: -8.6% (2025)

Investment in Growth:

• Unfunded Commitments: $47,779,000 (as of December 31, 2025)
• Strategic Investments: CION/EagleTree Partners, LLC joint venture, where CĪON Investment Corporation contributed a portfolio of second lien loans and equity investments.

Business Segment Analysis

CĪON Investment Corporation operates through a single operating and reporting segment. The following details reflect the composition and characteristics of its investment portfolio.

Investment Portfolio

Financial Performance:

• Total Investments at Fair Value: $1,812,990,000 (2025) vs. $1,888,688,000 (2024) (-4.0% YoY)
• Gross Annual Portfolio Yield: 9.15% (2025) vs. 10.96% (2024)
• Weighted Average Price of Par: 95.89% (2025) vs. 96.17% (2024)
• Average Annual EBITDA of Portfolio Companies: $59.1 million (2025) vs. $53.6 million (2024)
• Median Annual EBITDA of Portfolio Companies: $35.9 million (2025) vs. $34.2 million (2024)
• Non-accrual status: 1.8% of the investment portfolio on a fair value basis (2025) vs. 1.4% (2024)

Product Portfolio:

• Senior Secured First Lien Debt: $1,370,325,000 (80.7% of portfolio) in 2025, down from $1,565,256,000 (86.0% of portfolio) in 2024.
• Equity: $314,788,000 (18.5% of portfolio) in 2025, up from $239,438,000 (13.2% of portfolio) in 2024.
• Unsecured Debt: $6,639,000 (0.4% of portfolio) in 2025, down from $11,814,000 (0.6% of portfolio) in 2024.
• Collateralized Securities and Structured Products: $5,028,000 (0.3% of portfolio) in 2025, up from $2,682,000 (0.1% of portfolio) in 2024.
• Senior Secured Second Lien Debt: $0 (0.0% of portfolio) in 2025, down from $2,680,000 (0.1% of portfolio) in 2024.
• Short Term Investments: $116,010,000 in 2025, up from $68,818,000 in 2024.

Market Dynamics:

• Interest Rate Allocation (Fair Value, excluding short term investments):
  • Floating interest rate investments: 73.5% (2025) vs. 81.1% (2024)
  • Non-income producing investments: 10.4% (2025) vs. 11.8% (2024)
  • Fixed interest rate investments: 8.2% (2025) vs. 6.6% (2024)
  • Other income producing investments: 7.9% (2025) vs. 0.5% (2024)
• Asset Quality (Fair Value, excluding short term investments):
  • Rating 1 (Least Risk): 8.2% (2025) vs. 8.2% (2024)
  • Rating 2: 77.9% (2025) vs. 85.8% (2024)
  • Rating 3: 11.5% (2025) vs. 10.6% (2024)
  • Rating 4: 1.9% (2025) vs. 1.3% (2024)
  • Rating 5 (Greatest Risk): 0.5% (2025) vs. 0.3% (2024)
• Industry Classification (Fair Value, Dec 31, 2025): Services: Business (14.7%), Healthcare & Pharmaceuticals (11.3%), Retail (11.0%), Energy: Oil & Gas (8.6%), Media: Diversified & Production (7.2%), Services: Consumer (6.8%), Beverage, Food & Tobacco (6.0%), Consumer Goods: Durable (5.3%), Banking, Finance, Insurance & Real Estate (4.1%), Construction & Building (3.9%), High Tech Industries (3.3%), Diversified Financials (3.2%), Media: Advertising, Printing & Publishing (2.8%), Capital Equipment (1.9%), Consumer Goods: Non-Durable (1.7%), Environmental Industries (1.6%), Automotive (1.6%), Hotel, Gaming & Leisure (1.3%), Containers, Packaging & Glass (1.1%), Metals & Mining (1.0%), Aerospace & Defense (0.9%), Transportation: Cargo (0.7%).
• Customer Concentration: David's Bridal, LLC represented 8.0% of the total portfolio at fair value and 5.8% of total investment income for the year ended December 31, 2025.

Capital Allocation Strategy

Shareholder Returns:

• Share Repurchases: $17,190,000 (1,771,403 shares at an average of $9.70 per share) in 2025. From January 1, 2026, to March 4, 2026, an additional 921,342 shares were repurchased for $8,245,000 (average $8.95 per share). As of March 4, 2026, 19,446,838 repurchased shares had been retired.
• Dividend Payments: $75,361,000 ($1.44 per share) in 2025, $81,308,000 ($1.52 per share) in 2024, and $87,867,000 ($1.61 per share) in 2023. All distributions were from net investment income for these years.
• Future Capital Return Commitments: Base distributions of $0.10 per share were declared for January, February, and March 2026, and for April, May, and June 2026. The share repurchase policy authorizes repurchases of up to $80 million of common stock.

Balance Sheet Position:

• Cash and Equivalents: $8,159,000 (as of December 31, 2025)
• Total Debt (Financing arrangements, net of unamortized debt issuance costs): $1,125,580,000 (as of December 31, 2025)
• Net Asset Value per share: $13.76 (as of December 31, 2025)
• Credit Rating: The 7.41% 2027 Notes, 7.70% 2029 Notes, Series A Notes, and Floating Rate 2027 Notes are rated investment grade by DBRS, Inc.
• Debt Maturity Profile (Outstanding amounts as of Dec 31, 2025):
  • JPM Credit Facility: $300,000,000 (3-month SOFR + 2.55%)
  • UBS Credit Facility: $100,000,000 (3-month SOFR + 2.75%)
  • 7.70% 2029 Notes: $125,000,000
  • 7.41% 2027 Notes: $47,500,000
  • 2022 Term Loan: $50,000,000 (3-month SOFR + 3.50%, 1.0% SOFR floor)
  • 2024 Term Loan: $30,000,000 (3-month SOFR + 3.80%, 4.0% SOFR floor)
  • Series A Notes: $114,844,000 (average overnight SOFR + 3.82%), due August 31, 2026
  • Floating Rate 2027 Notes: $200,000,000 (Tranche A: 3-month SOFR + 4.75%, 2.00% SOFR floor; Tranche B: 3-month SOFR + 3.90%, 2.00% SOFR floor)
  • 7.50% 2029 Notes: $172,500,000
  • 2031 Notes: $135,000,000 (7.50%), issued February 9, 2026, mature March 31, 2031.
• Asset Coverage Ratio: 162% (as of December 31, 2025) vs. 173% (as of December 31, 2024). The minimum asset coverage ratio is 150%.

Cash Flow Generation:

• Operating Cash Flow: $76,833,000 (2025) vs. $88,191,000 (2024)
• Cash paid for interest: $85,442,000 (2025) vs. $93,312,000 (2024)

Operational Excellence

Production & Service Model: CĪON Investment Corporation operates as an investment company and does not have any employees. All services necessary for its business are provided by officers of CION Investment Management, LLC (CIM) or by individuals contracted by CIM. This external management model centralizes operational functions within CIM.

Supply Chain Architecture: Not explicitly detailed in the filing beyond the external management structure.

Key Suppliers & Partners:

• Investment Manager & Administrator: CION Investment Management, LLC (CIM) - manages investment decisions and provides administrative services.
• Sub-Advisory/Support Services: Apollo Investment Management, L.P. (AIM) - performs certain services for CIM, including trade and settlement support, portfolio and cash reconciliation, market pipeline information, and monthly valuation reports.
• Joint Venture Partner: ET-BC Debt Opportunities, LP (an affiliate of EagleTree Capital, LP) - partner in the CION/EagleTree Partners, LLC off-balance sheet joint venture.
• Cybersecurity Consultant: PricewaterhouseCoopers Advisory Services LLC - provides continuous consulting and incident response services for CION Investment Group, LLC's cybersecurity program.

Facility Network:

• Executive Offices: 100 Park Avenue, 25th Floor, New York, New York 10017.
• Additional Office: Los Angeles.

Operational Metrics:

• Portfolio Turnover Rate: 14.92% (2025) vs. 25.85% (2024)

Market Access & Customer Relationships

Go-to-Market Strategy: Distribution Channels:

• Public Market Listings: Common stock trades on The New York Stock Exchange (NYSE) under the symbol CION. 7.50% Notes due 2029 trade on the NYSE under CICB, and 7.50% Notes due 2031 trade on the NYSE under CICC. Series A Notes are listed on the Tel Aviv Stock Exchange Ltd. (TASE) under CION B1.
• Affiliate Distribution: CION Securities, LLC, an affiliate, provides distribution services.

Customer Portfolio: Enterprise Customers:

• Middle-Market Companies: The Company primarily invests in private and thinly-traded U.S. middle-market companies, generally defined as those with annual EBITDA of $75 million or less.
• Customer Concentration: David's Bridal, LLC represented 8.0% of the total portfolio at fair value as of December 31, 2025.

Geographic Revenue Distribution:

• United States: 97.6% of total investment portfolio at fair value (as of December 31, 2025).
• Canada: 2.0% of total investment portfolio at fair value (as of December 31, 2025).
• Other International: Cayman Islands (0.3%) and Bermuda (0.1%) of total investment portfolio at fair value (as of December 31, 2025).

Competitive Intelligence

Market Structure & Dynamics

Industry Characteristics: The market for lending to private U.S. middle-market companies is large and fragmented. This segment is a significant contributor to the U.S. economy, with approximately 200,000 companies employing 48 million people and generating over $10 trillion in annual revenue. In 2025, 84% of middle-market companies reported revenue increases, with an average growth rate of 11.7%. The market benefits from substantial uninvested private equity capital, approximately $1.3 trillion raised since 2015, driving dealmaking. U.S. middle-market dealmaking value reached $106.7 billion across 897 deals in Q3 2025.

Competitive Positioning Matrix:

Direct Competitors

Primary Competitors:

• Other Business Development Companies (BDCs): Direct competitors in the regulated investment company space.
• Investment Funds: Includes private equity funds, mezzanine funds, collateralized loan obligations (CLOs), and hedge funds.
• Commercial and Investment Banks: Traditional financial institutions offering lending services.
• Commercial Financing Companies: Specialized lenders providing capital to businesses.

Competitive Response Strategy: CION Investment Management, LLC (CIM) employs an investment allocation policy to manage potential conflicts of interest and ensure equitable allocation of investment opportunities among its clients, including CĪON Investment Corporation. An SEC Order granted on August 30, 2022, permits co-investment with affiliates under certain conditions and independent director approval, enhancing flexibility in competitive deal environments.

Risk Assessment Framework

Strategic & Market Risks

Market Dynamics:

• Price declines in debt market: Deterioration in the U.S. corporate debt market could reduce Net Asset Value (NAV) through unrealized depreciation and realized losses.
• Interest rate risks: Changes in interest rates, including the current high interest rate environment, can increase the cost of funds, reduce net investment income, and affect portfolio company repayment ability. As of December 31, 2025, 73.5% of investments paid variable interest rates.
• Inflation: Ongoing inflationary pressures increase costs, affect consumer spending, and impact portfolio companies' operations and fair value.
• Economic recessions/downturns: Impair portfolio companies and adversely affect operating results.
• Competition for investment opportunities: Increasing competition could delay capital deployment, reduce returns, and lead to losses.
• Global economic, political, and market conditions: Uncertainty, volatility, wars, trade disputes, and Federal Reserve policy may adversely affect business.
• Technology Disruption: Artificial intelligence (AI) developments could disrupt markets, increase competition, and introduce legal, regulatory, and compliance risks.

Technology Disruption: Artificial intelligence (AI) developments could disrupt markets, increase competition, and introduce legal, regulatory, and compliance risks.

Customer Concentration: Failure of a significant investment (e.g., David's Bridal, LLC, which represented 8.0% of the portfolio at fair value in 2025) could materially affect financial condition.

Operational & Execution Risks

Supply Chain Vulnerabilities: Not explicitly detailed, but general operational risks include dependence on CION Investment Group, LLC's information systems and cybersecurity failures.

Capacity Constraints: Inability to make follow-on investments may negatively impact portfolio companies or reduce expected returns.

Financial & Regulatory Risks

Market & Financial Risks:

• Uncertainty of fair value: A significant portion of the portfolio is recorded at fair value determined in good faith by CION Investment Management, LLC, leading to uncertainty in valuations, especially for Level 3 investments ($1.677 billion as of December 31, 2025).
• Distribution risk: No assurance of receiving distributions or their growth; distributions may exceed earnings, representing a return of capital.
• Leverage risks: Magnifies potential for loss, reduces cash for distributions, and increases the risk of investing.
• Credit & Liquidity: Inability to obtain debt or equity financing on acceptable terms could adversely affect the ability to acquire investments and expand operations.
• Common stock market price fluctuations: Volatility due to various factors, including BDC sector performance, regulatory changes, and economic conditions.

Regulatory & Compliance Risks:

• Industry Regulation: Changes in laws or regulations (e.g., AI regulation, non-bank lending scrutiny, ESG) could adversely affect the business or require changes in strategy.
• BDC qualifying assets requirement: The requirement to invest at least 70% of total assets in qualifying assets could limit investment opportunities or force inopportune asset dispositions.
• BDC/RIC regulations: Affect the ability to raise capital or borrow for investment purposes, potentially limiting growth. The asset coverage ratio of 150% limits debt incurrence.
• Regulatory & Compliance Risks: Increasing public and regulatory scrutiny regarding ESG (e.g., EU CSRD, SEC rules, "anti-ESG" sentiment, DEI) may impose additional costs, expose to litigation, or impact reputation and investment opportunities.

Geopolitical & External Risks

Geopolitical Exposure: International investments (up to 30% of assets) expose the Company to political/economic instability, currency devaluations, adverse tax changes, and legal barriers.

Trade Relations: U.S. tariff and import/export regulations and trade disputes could harm portfolio companies.

Innovation & Technology Leadership

Research & Development Focus: Not explicitly stated as a core activity for CĪON Investment Corporation.

Intellectual Property Portfolio: Not explicitly stated.

Technology Partnerships: CION Investment Group, LLC (CIG) has an ongoing engagement with PricewaterhouseCoopers Advisory Services LLC for continuous consulting and incident response services related to its cybersecurity program.

Leadership & Governance

Executive Leadership Team

Company Overview

Business Model: CĪON Investment Corporation is an externally managed, non-diversified, closed-end management investment company regulated as a Business Development Company (BDC) under the 1940 Act and has elected to be treated as a Regulated Investment Company (RIC) for U.S. federal income tax purposes. Its investment objective is to generate current income and, to a lesser extent, capital appreciation. The Company primarily invests in senior secured debt (first lien, second lien, and unitranche loans) and, to a lesser extent, collateralized securities, structured products, unsecured debt, and equity of private and thinly-traded U.S. middle-market companies. Investments typically range from $5 million to $50 million. CION Investment Management, LLC (CIM), an affiliate, manages the Company's investment decisions and provides administrative services.

Market Position: The Company operates within the large and fragmented U.S. middle-market lending sector, which comprises approximately 200,000 companies generating over $10 trillion in annual revenue. It competes with other BDCs, investment funds (private equity, mezzanine, CLOs, hedge funds), commercial and investment banks, and commercial financing companies. The Company's competitive advantages are based on its reputation, investment platform, the seasoned investment professionals of CION Investment Management, LLC, experience and focus on middle-market companies, disciplined investment philosophy, industry focus and relationships, and flexible transaction structuring.

Recent Strategic Developments:

• Joint Venture Formation: On December 21, 2021, CĪON Investment Corporation formed CION/EagleTree Partners, LLC, an off-balance sheet joint venture with ET-BC Debt Opportunities, LP (an affiliate of EagleTree Capital, LP), contributing second lien loans and equity investments.
• Debt Issuance & Listing: The Company issued $135 million aggregate principal amount of 7.50% Notes due 2031 on February 9, 2026, which began trading on the NYSE under "CICC" on February 12, 2026.
• Share Repurchase Program Expansion: The share repurchase policy was increased by $20 million to an aggregate of $80 million on August 5, 2025.
• Advisory Agreement Renewal: The investment advisory agreement with CION Investment Management, LLC was renewed on August 5, 2025, for twelve months commencing August 9, 2025.

Geographic Footprint: The Company's investment portfolio is primarily concentrated in the United States, representing 97.6% of the portfolio at fair value as of December 31, 2025. Minor exposures include Canada (2.0%), Cayman Islands (0.3%), and Bermuda (0.1%). The Company's principal executive offices are located in New York, New York, with an additional office in Los Angeles.

Financial Performance

Revenue Analysis

Profitability Metrics:

• Net Investment Income Margin: 38.6% (2025)
• Net (Decrease) Increase in Net Assets Margin: -8.6% (2025)

Investment in Growth:

• Unfunded Commitments: $47,779,000 (as of December 31, 2025)
• Strategic Investments: Formation of CION/EagleTree Partners, LLC joint venture.

Business Segment Analysis

CĪON Investment Corporation operates through a single operating and reporting segment. The following details reflect the composition and characteristics of its investment portfolio.

Investment Portfolio

Financial Performance:

• Total Investments at Fair Value: $1,812,990,000 (2025) vs. $1,888,688,000 (2024) (-4.0% YoY)
• Gross Annual Portfolio Yield: 9.15% (2025) vs. 10.96% (2024)
• Operating Margin: Not directly applicable for a BDC's portfolio.
• Key Growth Drivers: Primarily driven by investments in senior secured debt and, to a lesser extent, equity of U.S. middle-market companies. Average annual EBITDA of portfolio companies increased to $59.1 million in 2025 from $53.6 million in 2024.

Product Portfolio:

• Senior Secured First Lien Debt: $1,370,325,000 (80.7% of portfolio)
• Equity: $314,788,000 (18.5% of portfolio)
• Unsecured Debt: $6,639,000 (0.4% of portfolio)
• Collateralized Securities and Structured Products: $5,028,000 (0.3% of portfolio)
• Senior Secured Second Lien Debt: $0 (0.0% of portfolio)
• Short Term Investments: $116,010,000

Market Dynamics:

• Competitive positioning within segment: The Company focuses on private U.S. middle-market companies, generally those with annual EBITDA of $75 million or less.
• Key customer types and market trends: Middle-market companies, with 84% reporting revenue increases in 2025, averaging 11.7% growth.
• Interest Rate Allocation (Fair Value, excluding short term investments): 73.5% in floating interest rate investments and 8.2% in fixed interest rate investments as of December 31, 2025.
• Asset Quality (Fair Value, excluding short term investments): 8.2% rated 1 (Least Risk), 77.9% rated 2, 11.5% rated 3, 1.9% rated 4, and 0.5% rated 5 (Greatest Risk) as of December 31, 2025.
• Industry Classification (Fair Value, Dec 31, 2025): Services: Business (14.7%), Healthcare & Pharmaceuticals (11.3%), Retail (11.0%), Energy: Oil & Gas (8.6%), Media: Diversified & Production (7.2%), Services: Consumer (6.8%), Beverage, Food & Tobacco (6.0%), Consumer Goods: Durable (5.3%), Banking, Finance, Insurance & Real Estate (4.1%), Construction & Building (3.9%), High Tech Industries (3.3%), Diversified Financials (3.2%), Media: Advertising, Printing & Publishing (2.8%), Capital Equipment (1.9%), Consumer Goods: Non-Durable (1.7%), Environmental Industries (1.6%), Automotive (1.6%), Hotel, Gaming & Leisure (1.3%), Containers, Packaging & Glass (1.1%), Metals & Mining (1.0%), Aerospace & Defense (0.9%), Transportation: Cargo (0.7%).

Capital Allocation Strategy

Shareholder Returns:

• Share Repurchases: $17,190,000 (1,771,403 shares) in 2025. From January 1, 2026, to March 4, 2026, 921,342 shares were repurchased for $8,245,000.
• Dividend Payments: $75,361,000 in 2025.
• Dividend Yield: Not explicitly stated, but distributions per share were $1.44 in 2025.
• Future Capital Return Commitments: Base distributions of $0.10 per share were declared for January, February, March, April, May, and June 2026. The share repurchase policy authorizes repurchases of up to $80 million of common stock.

Balance Sheet Position:

• Cash and Equivalents: $8,159,000 (as of December 31, 2025)
• Total Debt: $1,125,580,000 (financing arrangements, net of unamortized debt issuance costs, as of December 31, 2025)
• Net Cash Position: Not applicable due to the leveraged BDC model.
• Credit Rating: The 7.41% 2027 Notes, 7.70% 2029 Notes, Series A Notes, and Floating Rate 2027 Notes are rated investment grade by DBRS, Inc.
• Debt Maturity Profile: Total outstanding consolidated indebtedness at par value was approximately $1.14 billion as of December 31, 2025, with $400 million secured. Key maturities include Series A Notes due August 31, 2026, and various credit facilities and notes extending to 2031.

Cash Flow Generation:

• Operating Cash Flow: $76,833,000 (2025)
• Free Cash Flow: Not explicitly stated.

Operational Excellence

Production & Service Model: CĪON Investment Corporation operates as an investment company and does not have any employees. Services necessary for its business, including investment management and administration, are provided by officers of CION Investment Management, LLC (CIM) or by individuals contracted by CIM. This external management model centralizes operational functions within CIM.

Supply Chain Architecture: Not explicitly detailed in the filing.

Key Suppliers & Partners:

• Investment Manager & Administrator: CION Investment Management, LLC (CIM) - oversees investment decisions and provides administrative services.
• Support Services: Apollo Investment Management, L.P. (AIM) - performs certain services for CIM, including trade and settlement support, portfolio and cash reconciliation, market pipeline information, and monthly valuation reports.
• Joint Venture Partner: ET-BC Debt Opportunities, LP (an affiliate of EagleTree Capital, LP) - partner in the CION/EagleTree Partners, LLC joint venture.
• Cybersecurity Consultant: PricewaterhouseCoopers Advisory Services LLC - engaged by CION Investment Group, LLC for continuous cybersecurity consulting and incident response services.

Facility Network:

• Executive Offices: 100 Park Avenue, 25th Floor, New York, New York 10017.
• Additional Office: Los Angeles.

Operational Metrics:

• Portfolio Turnover Rate: 14.92% (2025)

Market Access & Customer Relationships

Go-to-Market Strategy: Distribution Channels:

• Direct Sales: Not explicitly stated, but the Company's investment manager, CION Investment Management, LLC, directly manages the investment portfolio.
• Channel Partners: CION Securities, LLC, an affiliate, provides distribution services.
• Digital Platforms: Not explicitly stated.

Customer Portfolio: Enterprise Customers:

• Tier 1 Clients: The Company primarily invests in private U.S. middle-market companies.
• Strategic Partnerships: The Company formed CION/EagleTree Partners, LLC, an off-balance sheet joint venture, with ET-BC Debt Opportunities, LP.
• Customer Concentration: David's Bridal, LLC represented 8.0% of the total portfolio at fair value as of December 31, 2025.

Geographic Revenue Distribution:

• United States: 97.6% of total investment portfolio at fair value (as of December 31, 2025).
• Growth Markets: Not explicitly detailed beyond minor international exposures.

Competitive Intelligence

Market Structure & Dynamics

Industry Characteristics: The market for lending to private U.S. middle-market companies is large and fragmented. This segment is a significant contributor to the U.S. economy, with approximately 200,000 companies employing 48 million people and generating over $10 trillion in annual revenue. In 2025, 84% of middle-market companies reported revenue increases, with an average growth rate of 11.7%. The market benefits from substantial uninvested private equity capital, approximately $1.3 trillion raised since 2015, driving dealmaking. U.S. middle-market dealmaking value reached $106.7 billion across 897 deals in Q3 2025.

Competitive Positioning Matrix:

Direct Competitors

Primary Competitors:

• Other Business Development Companies (BDCs): Compete for similar investment opportunities and capital.
• Investment Funds: Includes private equity funds, mezzanine funds, collateralized loan obligations (CLOs), and hedge funds.
• Commercial and Investment Banks: Traditional financial institutions offering lending services to middle-market companies.
• Commercial Financing Companies: Specialized lenders providing capital to businesses.

Emerging Competitive Threats: Not explicitly detailed beyond general competition.

Competitive Response Strategy: CION Investment Management, LLC (CIM) has an investment allocation policy to manage potential conflicts of interest and ensure equitable allocation of investment opportunities among clients. An SEC Order granted on August 30, 2022, permits co-investment with affiliates under certain conditions and independent director approval, enhancing the Company's ability to participate in competitive deals.

Risk Assessment Framework

Strategic & Market Risks

Market Dynamics:

• Price declines in debt market: Deterioration in the U.S. corporate debt market could reduce NAV through unrealized depreciation and realized losses.
• Economic recessions/downturns: Impair portfolio companies and adversely affect operating results.
• Competition for investment opportunities: Increasing competition could delay capital deployment, reduce returns, and lead to losses.
• Global economic, political, and market conditions: Uncertainty, volatility, wars, trade disputes, and Federal Reserve policy may adversely affect business.
• Interest rate risks: Changes in interest rates, including the current high interest rate environment, can increase the cost of funds, reduce net investment income, and affect portfolio company repayment ability.

Technology Disruption: Artificial intelligence (AI) developments could disrupt markets, increase competition, and introduce legal, regulatory, and compliance risks.

Customer Concentration: Failure of a significant investment (e.g., David's Bridal, LLC) could materially affect financial condition.

Operational & Execution Risks

Supply Chain Vulnerabilities: Not explicitly detailed, but general operational risks include dependence on CION Investment Group, LLC's information systems and cybersecurity failures.

Capacity Constraints: Inability to make follow-on investments may negatively impact portfolio companies or reduce expected returns.

Financial & Regulatory Risks

Market & Financial Risks:

• Uncertainty of fair value: A significant portion of the portfolio is recorded at fair value determined in good faith by CION Investment Management, LLC, leading to uncertainty in valuations, especially for Level 3 investments.
• Distribution risk: No assurance of receiving distributions or their growth; distributions may exceed earnings, representing a return of capital.
• Leverage risks: Magnifies potential for loss, reduces cash for distributions, and increases the risk of investing.
• Credit & Liquidity: Inability to obtain debt or equity financing on acceptable terms could adversely affect the ability to acquire investments and expand operations.
• Debt covenants: Failure to comply with covenants in financing arrangements could accelerate repayment.
• Common stock market price fluctuations: Volatility due to various factors, including BDC sector performance, regulatory changes, and economic conditions.

Regulatory & Compliance Risks:

• Industry Regulation: Changes in laws or regulations (e.g., AI regulation, non-bank lending scrutiny, ESG) could adversely affect the business or require changes in strategy.
• BDC qualifying assets requirement: The requirement to invest at least 70% of total assets in qualifying assets could limit investment opportunities or force inopportune asset dispositions.
• BDC/RIC regulations: Affect the ability to raise capital or borrow for investment purposes, potentially limiting growth. The asset coverage ratio of 150% limits debt incurrence.
• ESG scrutiny: Increasing public and regulatory scrutiny may impose additional costs, expose to litigation, or impact reputation and investment opportunities.

Geopolitical & External Risks

Geopolitical Exposure:

• Geographic Dependencies: Investments in non-U.S. securities (up to 30% of assets) expose the Company to political/economic instability, currency devaluations, adverse tax changes, and legal barriers.
• Trade Relations: U.S. tariff and import/export regulations and trade disputes could harm portfolio companies.

Innovation & Technology Leadership

Research & Development Focus: Not explicitly stated as a core activity for CĪON Investment Corporation.

Intellectual Property Portfolio: Not explicitly stated.

Technology Partnerships: CION Investment Group, LLC (CIG) has an ongoing engagement with PricewaterhouseCoopers Advisory Services LLC for continuous consulting and incident response services related to its cybersecurity program. CIG's enterprise-wide cybersecurity program is aligned to the National Institute of Standards and Technology Cybersecurity Framework.

Leadership & Governance

Executive Leadership Team

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------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- CION Investment Corporation (NYSE: CION) is an externally managed, non-diversified, closed-end management investment company regulated as a Business Development Company (BDC) under the 1940 Act and has elected to be treated as a Regulated Investment Company (RIC) for U.S. federal income tax purposes. The Company's primary investment objective is to generate current income and, to a lesser extent, capital appreciation, by investing primarily in senior secured debt and, to a lesser extent, collateralized securities, structured products, unsecured debt, and equity of private and thinly-traded U.S. middle-market companies.

Company Overview

Business Model: CĪON Investment Corporation generates current income and capital appreciation by providing financing to U.S. middle-market companies, generally defined as those with annual EBITDA of $75 million or less. The portfolio primarily consists of senior secured debt (first lien, second lien, and unitranche loans), with opportunistic investments in collateralized securities, structured products, unsecured debt, and equity. Investment decisions and administrative services are managed by CION Investment Management, LLC (CIM), an affiliate.

Market Position: The Company operates within the large and fragmented U.S. middle-market lending sector, which comprises approximately 200,000 companies. This market is characterized by significant private equity capital inflows, with $1.3 trillion raised since 2015, driving substantial dealmaking. CĪON Investment Corporation competes with other BDCs, investment funds, commercial banks, and commercial financing companies, leveraging its reputation, investment platform, and the expertise of CION Investment Management, LLC's professionals.

Recent Strategic Developments:

• Joint Venture: Formed CION/EagleTree Partners, LLC on December 21, 2021, an off-balance sheet joint venture with ET-BC Debt Opportunities, LP, contributing second lien loans and equity investments.
• Debt Issuance: Issued $135 million aggregate principal amount of 7.50% Notes due 2031 on February 9, 2026, which commenced trading on the NYSE under "CICC" on February 12, 2026.
• Share Repurchase Program: Increased the authorized share repurchase program by $20 million to an aggregate of $80 million on August 5, 2025.
• Advisory Agreement: Renewed the investment advisory agreement with CION Investment Management, LLC for twelve months, commencing August 9, 2025.

Geographic Footprint: The Company's investment portfolio is predominantly concentrated in the United States, accounting for 97.6% of the portfolio at fair value as of December 31, 2025. Minor international exposures include Canada (2.0%), Cayman Islands (0.3%), and Bermuda (0.1%). Executive offices are located in New York, New York, with an additional office in Los Angeles.

Financial Performance

Revenue Analysis

Profitability Metrics:

• Net Investment Income Margin: 38.6% (2025)
• Net (Decrease) Increase in Net Assets Margin: -8.6% (2025)

Investment in Growth:

• Unfunded Commitments: $47,779,000 (as of December 31, 2025)
• Strategic Investments: Formation of CION/EagleTree Partners, LLC joint venture.

Business Segment Analysis

CĪON Investment Corporation operates through a single operating and reporting segment, with its investment portfolio serving as the core business.

Investment Portfolio

Financial Performance:

• Revenue: Total Investments at Fair Value decreased by 4.0% year-over-year to $1,812,990,000 in 2025 from $1,888,688,000 in 2024.
• Key Growth Drivers: The average annual EBITDA of portfolio companies increased to $59.1 million in 2025 from $53.6 million in 2024. The gross annual portfolio yield was 9.15% in 2025.

Product Portfolio:

• Senior Secured First Lien Debt: $1,370,325,000 (80.7% of portfolio)
• Equity: $314,788,000 (18.5% of portfolio)
• Unsecured Debt: $6,639,000 (0.4% of portfolio)
• Collateralized Securities and Structured Products: $5,028,000 (0.3% of portfolio)
• Short Term Investments: $116,010,000

Market Dynamics:

• Competitive positioning within segment: The Company focuses on private U.S. middle-market companies, generally those with annual EBITDA of $75 million or less.
• Key customer types and market trends: Middle-market companies, with 84% reporting revenue increases in 2025, averaging 11.7% growth.
• Interest Rate Allocation: As of December 31, 2025, 73.5% of investments were in floating interest rate instruments, and 8.2% were in fixed interest rate instruments.
• Asset Quality: 8.2% of the portfolio was rated 1 (Least Risk) and 0.5% was rated 5 (Greatest Risk) as of December 31, 2025. Non-accrual status was 1.8% of the portfolio at fair value in 2025.
• Industry Classification (Fair Value, Dec 31, 2025): Services: Business (14.7%), Healthcare & Pharmaceuticals (11.3%), Retail (11.0%), Energy: Oil & Gas (8.6%), Media: Diversified & Production (7.2%), Services: Consumer (6.8%), Beverage, Food & Tobacco (6.0%), Consumer Goods: Durable (5.3%), Banking, Finance, Insurance & Real Estate (4.1%), Construction & Building (3.9%), High Tech Industries (3.3%), Diversified Financials (3.2%), Media: Advertising, Printing & Publishing (2.8%), Capital Equipment (1.9%), Consumer Goods: Non-Durable (1.7%), Environmental Industries (1.6%), Automotive (1.6%), Hotel, Gaming & Leisure (1.3%), Containers, Packaging & Glass (1.1%), Metals & Mining (1.0%), Aerospace & Defense (0.9%), Transportation: Cargo (0.7%).

Capital Allocation Strategy

Shareholder Returns:

• Share Repurchases: $17,190,000 was used to repurchase 1,771,403 shares in 2025. From January 1, 2026, to March 4, 2026, an additional 921,342 shares were repurchased for $8,245,000.
• Dividend Payments: Total distributions declared were $75,361,000 ($1.44 per share) in 2025.
• Future Capital Return Commitments: Base distributions of $0.10 per share were declared for January, February, March, April, May, and June 2026. The share repurchase policy authorizes repurchases of up to $80 million of common stock.

Balance Sheet Position:

• Cash and Equivalents: $8,159,000 (as of December 31, 2025)
• Total Debt: $1,125,580,000 (financing arrangements, net of unamortized debt issuance costs, as of December 31, 2025)
• Net Asset Value per share: $13.76 (as of December 31, 2025)
• Credit Rating: Several notes (7.41% 2027 Notes, 7.70% 2029 Notes, Series A Notes, Floating Rate 2027 Notes) are rated investment grade by DBRS, Inc.
• Debt Maturity Profile: Total outstanding consolidated indebtedness at par value was approximately $1.14 billion as of December 31, 2025, with $400 million secured. Maturities range from Series A Notes due August 31, 2026, to 7.50% 2031 Notes.
• Asset Coverage Ratio: 162% (as of December 31, 2025), above the minimum 150% requirement.

Cash Flow Generation:

• Operating Cash Flow: $76,833,000 (2025)

Operational Excellence

Production & Service Model: CĪON Investment Corporation operates as an investment company and does not have any employees. All necessary services, including investment management and administration, are provided by officers of CION Investment Management, LLC (CIM) or by individuals contracted by CIM.

Supply Chain Architecture: Not explicitly detailed in the filing.

Key Suppliers & Partners:

• Investment Manager & Administrator: CION Investment Management, LLC (CIM) - oversees investment decisions and provides administrative services.
• Support Services: Apollo Investment Management, L.P. (AIM) - provides trade and settlement support, portfolio and cash reconciliation, market pipeline information, and monthly valuation reports to CIM.
• Joint Venture Partner: ET-BC Debt Opportunities, LP (an affiliate of EagleTree Capital, LP) - partner in the CION/EagleTree Partners, LLC joint venture.
• Cybersecurity Consultant: PricewaterhouseCoopers Advisory Services LLC - engaged by CION Investment Group, LLC for continuous cybersecurity consulting and incident response services.

Facility Network:

• Executive Offices: 100 Park Avenue, 25th Floor, New York, New York 10017.
• Additional Office: Los Angeles.

Operational Metrics:

• Portfolio Turnover Rate: 14.92% (2025)

Market Access & Customer Relationships

Go-to-Market Strategy: Distribution Channels:

• Public Market Listings: Common stock trades on the NYSE under "CION." 7.50% Notes due 2029 trade on the NYSE under "CICB," and 7.50% Notes due 2031 trade on the NYSE under "CICC." Series A Notes are listed on the Tel Aviv Stock Exchange Ltd. (TASE) under "CION B1."
• Channel Partners: CION Securities, LLC, an affiliate, provides distribution services.

Customer Portfolio: Enterprise Customers:

• Middle-Market Clients: The Company's primary customer base consists of private U.S. middle-market companies.
• Strategic Partnerships: The Company has a joint venture, CION/EagleTree Partners, LLC, with ET-BC Debt Opportunities, LP.
• Customer Concentration: David's Bridal, LLC represented 8.0% of the total portfolio at fair value as of December 31, 2025.

Geographic Revenue Distribution:

• United States: 97.6% of total investment portfolio at fair value (as of December 31, 2025).
• Growth Markets: Not explicitly detailed beyond minor international exposures.

Competitive Intelligence

Market Structure & Dynamics

Industry Characteristics: The U.S. middle-market lending market is large and fragmented, characterized by approximately 200,000 companies. This sector is a significant economic driver, with 84% of middle-market companies reporting revenue increases in 2025, averaging 11.7% growth. The market benefits from substantial private equity capital, with approximately $1.3 trillion of uninvested capital raised since 2015, fueling dealmaking.

Competitive Positioning Matrix:

Direct Competitors

Primary Competitors:

• Other Business Development Companies (BDCs): Compete for similar investment opportunities and capital.
• Investment Funds: Includes private equity funds, mezzanine funds, collateralized loan obligations (CLOs), and hedge funds.
• Commercial and Investment Banks: Traditional financial institutions offering lending services.
• Commercial Financing Companies: Specialized lenders providing capital to businesses.

Emerging Competitive Threats: Not explicitly detailed beyond general competition.

Competitive Response Strategy: CION Investment Management, LLC (CIM) utilizes an investment allocation policy to manage potential conflicts of interest and ensure equitable allocation of investment opportunities among its clients. An SEC Order granted on August 30, 2022, permits co-investment with affiliates under certain conditions and independent director approval, enhancing the Company's ability to participate in competitive deals.

Risk Assessment Framework

Strategic & Market Risks

Market Dynamics:

• Price declines in debt market: Deterioration in the U.S. corporate debt market could reduce Net Asset Value (NAV) through unrealized depreciation and realized losses.
• Economic recessions/downturns: Impair portfolio companies and adversely affect operating results.
• Competition for investment opportunities: Increasing competition could delay capital deployment, reduce returns, and lead to losses.
• Interest rate risks: Changes in interest rates, including the current high interest rate environment, can increase the cost of funds, reduce net investment income, and affect portfolio company repayment ability.

Technology Disruption: Artificial intelligence (AI) developments could disrupt markets, increase competition, and introduce legal, regulatory, and compliance risks.

Customer Concentration: Failure of a significant investment (e.g., David's Bridal, LLC) could materially affect financial condition.

Operational & Execution Risks

Supply Chain Vulnerabilities: Not explicitly detailed, but general operational risks include dependence on CION Investment Group, LLC's information systems and cybersecurity failures.

Capacity Constraints: Inability to make follow-on investments may negatively impact portfolio companies or reduce expected returns.

Financial & Regulatory Risks

Market & Financial Risks:

• Uncertainty of fair value: A significant portion of the portfolio is recorded at fair value determined in good faith by CION Investment Management, LLC, leading to uncertainty in valuations, especially for Level 3 investments.
• Distribution risk: No assurance of receiving distributions or their growth; distributions may exceed earnings, representing a return of capital.
• Leverage risks: Magnifies potential for loss, reduces cash for distributions, and increases the risk of investing.
• Credit & Liquidity: Inability to obtain debt or equity financing on acceptable terms could adversely affect the ability to acquire investments and expand operations.
• Debt covenants: Failure to comply with covenants in financing arrangements could accelerate repayment.

Regulatory & Compliance Risks:

• Industry Regulation: Changes in laws or regulations (e.g., AI regulation, non-bank lending scrutiny, ESG) could adversely affect the business or require changes in strategy.
• BDC qualifying assets requirement: The requirement to invest at least 70% of total assets in qualifying assets could limit investment opportunities or force inopportune asset dispositions.
• BDC/RIC regulations: Affect the ability to raise capital or borrow for investment purposes, potentially limiting growth. The asset coverage ratio of 150% limits debt incurrence.
• ESG scrutiny: Increasing public and regulatory scrutiny regarding ESG may impose additional costs, expose to litigation, or impact reputation and investment opportunities.

Geopolitical & External Risks

Geopolitical Exposure:

• Geographic Dependencies: Investments in non-U.S. securities (up to 30% of assets) expose the Company to political/economic instability, currency devaluations, adverse tax changes, and legal barriers.
• Trade Relations: U.S. tariff and import/export regulations and trade disputes could harm portfolio companies.

Innovation & Technology Leadership

Research & Development Focus: Not explicitly stated as a core activity for CĪON Investment Corporation.

Intellectual Property Portfolio: Not explicitly stated.

Technology Partnerships: CION Investment Group, LLC (CIG) has an ongoing engagement with PricewaterhouseCoopers Advisory Services LLC for continuous consulting and incident response services related to its cybersecurity program. CIG's enterprise-wide cybersecurity program is aligned to the National Institute of Standards and Technology Cybersecurity Framework.

Leadership & Governance

Executive Leadership Team