Aug 13, 2026 earnings call — Lower middle market lending and legacy cannabis resolution
Company reports active pipeline of $1.3 billion and net investment income of $0.15 per share for the quarter.
Revenue $0.0B (est $0.0B) · EPS $0.15 (est $0.19)
Key quotes
"As a result, we continue to believe the lower middle market offers 1 of the most compelling risk adjusted return investment opportunities in private credit today."
"Subsequent to quarter end, Devi earned a $2 million nonrefundable deposit on the purchase, we expect the transaction to close this year."
"We ended the quarter with $106.5 million of cash and cash equivalents. This provides substantial liquidity for new investments and other capital allocation opportunities."
Analyst Q&A 2
new loan deals and cash available
Q (Aaron Thomas Grey · Alliance Global Partners): He asked how to think about new-borrower activity and why originations slowed. He also asked how comfortable the firm is with liquidity to take larger opportunities, and asked for clarification on SEC-related asset sales.
A: Management said they have a very active pipeline of $1.3 billion but originations will be lumpy and episodic; they did about $80 million in Q1 and less in Q2. They said they have over $70 million in liquidity available to deploy and can also co-invest with affiliates under a co investment relief order or syndicate deals to handle larger opportunities. On the legal matter they pointed to the extensive SEC filings and said they cannot comment because the litigation is active.
"As stated in my remarks, at the end of the quarter, in our investment presentation, we have over $70 million in liquidity available to deploy." — Brandon Hetzel (CFO)
cannabis lending and specific asset updates
Q (Pablo Zuanic · Zuanic & Associates): He asked if they remain cautious on cannabis lending despite better regulation. He also asked for details on Devi and DMA sales, the new loan amount and borrower, Sunburn status, and what net debt-to-equity they are comfortable with.
A: Robyn said access to equity capital in the cannabis industry was challenged and remains problematic, so they remain cautious about lending there. Daniel said Devi has a binding term sheet to sell for $12.5 million with a $2 million hard deposit and noted AFCG's participation is 70%, 78% or somewhere around 80%; he said two DMA dispensary sales received regulatory approval in June and closed in July. They said the new behavioral-health roll-up in the Northeast has 10 locations, they committed $7 million and funded $3.1 million on closing, Sunburn met forbearance conditions and the loan is in good standing, and they view around 1.0x net debt-to-equity as a reasonable intermediate target.
"And, Pablo, the size of that deal was we committed $7 million and funded $3.1 million on closing." — Brandon Hetzel (CFO)