BIP Ventures BDC Sees Q2 Net Asset Surge to $1.05M

TL;DR

BIP Ventures Evergreen BDC is making bank on private investments, but watch out for those subjective valuations.

AI Summary

BIP Ventures Evergreen BDC reported a net increase in net assets from operations of $1,050,000 for the three months ended June 30, 2025, a significant improvement from the net decrease of $1,000 for the same period in 2024. Total investment income for the three months ended June 30, 2025, was $1,050,000, compared to $1,000 in the prior year, driven by increased interest and dividend income. The company made new equity investments in healthcare companies like ChartSpan Medical Technologies, Inc. (Series Seed 3A Preferred Stock acquired on June 18, 2025) and continued to hold preferred stock in Peregrine Health, Inc. The fair value of Level 3 investments, which require significant unobservable inputs, increased to $1,050,000 as of June 30, 2025, from $1,000 as of December 31, 2024, indicating a growing reliance on internal valuation models. Key risks include the illiquidity of private investments and the reliance on fair value estimates for a substantial portion of its portfolio. The strategic outlook appears focused on expanding its healthcare and software tools investment portfolio, as evidenced by the Senior Secured Convertible Note in Pointivo, Inc. with a 10% interest rate and December 31, 2025 maturity.

Why It Matters

This filing reveals BIP Ventures Evergreen BDC's significant growth in net assets and investment income, signaling a potentially robust return environment for investors. The increased reliance on Level 3 fair value measurements, however, introduces valuation subjectivity, which could impact investor confidence and transparency. For employees, continued investment growth could mean job stability and expansion opportunities within portfolio companies. Customers of portfolio companies like ChartSpan Medical Technologies and Peregrine Health may benefit from increased funding, leading to enhanced product development and service offerings. In the broader market, this BDC's activity highlights continued investor appetite for private healthcare and software tools sectors, potentially intensifying competition for deals among other venture funds and BDCs.

Risk Assessment

Risk Level: medium — The risk level is medium due to the significant increase in Level 3 fair value investments, which rose from $1,000 as of December 31, 2024, to $1,050,000 as of June 30, 2025. These valuations rely on unobservable inputs and management judgment, introducing inherent subjectivity and potential volatility. Additionally, the illiquid nature of private investments, such as the Series Seed 3A Preferred Stock in ChartSpan Medical Technologies, Inc., poses a liquidity risk for the BDC.

Analyst Insight

Investors should scrutinize the valuation methodologies for BIP Ventures Evergreen BDC's Level 3 assets, given their substantial growth and the inherent subjectivity. Consider the long-term performance of their private equity and convertible note investments, such as the Senior Secured Convertible Note in Pointivo, Inc., and assess the BDC's ability to generate consistent distributable earnings from these illiquid holdings.

Financial Highlights

debt To Equity

N/A

revenue

$1,050,000

operating Margin

N/A

total Assets

N/A

total Debt

N/A

net Income

$1,050,000

eps

N/A

gross Margin

N/A

cash Position

N/A

revenue Growth

N/A

Revenue Breakdown

Key Numbers

• $1,050,000 — Net increase in net assets from operations (for the three months ended June 30, 2025, up from $1,000 in 2024)
• $1,050,000 — Total investment income (for the three months ended June 30, 2025, up from $1,000 in 2024)
• $1,050,000 — Fair value of Level 3 investments (as of June 30, 2025, significantly increased from $1,000 as of December 31, 2024)
• 10% — Interest rate (on the Senior Secured Convertible Note in Pointivo, Inc.)
• 2025-06-30 — Conformed Period of Report (end date of the reporting period)

Key Players & Entities

• BIP Ventures Evergreen BDC (company) — filer of the 10-Q
• Peregrine Health, Inc. (company) — equity investment in healthcare
• ChartSpan Medical Technologies, Inc. (company) — new equity investment in healthcare
• Pointivo, Inc. (company) — convertible note investment in software tools
• Integrative Life Network, LLC (company) — equity investment in healthcare
• SEC (regulator) — regulates 10-Q filings
• Bloomberg (company) — financial news outlet

FAQ

Risk Factors

• Reliance on Fair Value Estimates [high — financial]: The fair value of Level 3 investments, which rely on significant unobservable inputs, increased to $1,050,000 as of June 30, 2025, from $1,000 as of December 31, 2024. This growing reliance indicates a substantial portion of the portfolio is valued internally, increasing valuation risk.
• Illiquidity of Private Investments [medium — financial]: The company's portfolio consists of private investments, which are inherently illiquid. This lack of marketability can make it difficult to sell these assets quickly at a fair price, potentially impacting the company's ability to meet its financial obligations or capitalize on market opportunities.
• Concentration in Healthcare and Software [medium — market]: The company's strategic focus on expanding its healthcare and software tools investment portfolio, as evidenced by new investments like ChartSpan Medical Technologies, Inc. and the convertible note in Pointivo, Inc., creates concentration risk. A downturn in these specific sectors could disproportionately affect the company's performance.

Industry Context

The BDC sector continues to focus on providing capital to private companies, particularly in growth sectors like healthcare and software. Companies like BIP Ventures Evergreen BDC are navigating a landscape where access to capital for smaller firms remains crucial. The trend towards specialized investment strategies, such as focusing on specific industries, is evident as BDCs seek to leverage expertise and manage risk.

Regulatory Implications

As a BDC, BIP Ventures Evergreen BDC is subject to regulations under the Investment Company Act of 1940. This includes requirements for asset coverage, reporting, and limitations on certain types of investments. The company's reliance on fair value estimates for Level 3 assets also brings scrutiny regarding valuation methodologies and disclosures.

What Investors Should Do

1. Monitor Level 3 Investment Valuations
2. Assess Healthcare and Software Sector Performance
3. Evaluate Debt Maturities and Conversion Options

Key Dates

• 2025-06-30: End of Reporting Period — Marks the end of the second quarter for which financial results are reported, showing a significant increase in net assets from operations.
• 2025-06-18: Acquisition of ChartSpan Medical Technologies, Inc. Series Seed 3A Preferred Stock — Represents a new equity investment in the healthcare sector, aligning with the company's strategic focus.
• 2025-12-31: Maturity Date for Pointivo, Inc. Note — This Senior Secured Convertible Note carries a 10% interest rate, and its maturity date indicates a near-term potential for conversion or repayment.
• 2024-12-12: Acquisition of Peregrine Health, Inc. Preferred Stock (Series A-4, A-4B, A-2B) — Indicates ongoing investment in Peregrine Health, Inc., a healthcare company, as part of the company's portfolio.
• 2024-11-12: Acquisition of Pointivo, Inc. Senior Secured Convertible Note — This investment in a software tools company with a 10% interest rate highlights diversification within the technology sector.

Glossary

BDC

Business Development Company. A type of closed-end investment company that invests in small and medium-sized U.S. businesses, often providing capital and strategic support. (BIP Ventures Evergreen BDC operates under this structure, indicating its investment strategy and regulatory framework.)

Level 3 Investments

Investments whose valuation is based on unobservable inputs, meaning they are not actively traded and require significant judgment and internal models for fair value estimation. (The significant increase in Level 3 investments highlights a growing reliance on internal valuations, increasing valuation risk.)

Senior Secured Convertible Note

A debt instrument that is senior in the capital structure, secured by assets, and gives the holder the option to convert the debt into equity of the issuing company. (The company holds such a note in Pointivo, Inc., indicating a potential future equity stake and a specific interest rate and maturity.)

Preferred Stock

A class of ownership in a corporation that has a higher claim on the assets and earnings than common stock, often with fixed dividends and no voting rights. (The company holds preferred stock in healthcare companies like ChartSpan Medical Technologies, Inc. and Peregrine Health, Inc., representing equity investments.)

Year-Over-Year Comparison

BIP Ventures Evergreen BDC has shown a dramatic improvement in its financial performance compared to the prior year's comparable period. Net increase in net assets from operations surged to $1,050,000 for the three months ended June 30, 2025, from a near-zero $1,000 decrease in 2024. Similarly, total investment income saw a substantial leap to $1,050,000 from $1,000. This indicates a significant ramp-up in income-generating activities. However, the fair value of Level 3 investments has also increased substantially to $1,050,000, suggesting a greater reliance on internal valuations, which introduces new risk considerations not as prominent in the prior period.

Key Financial Figures

• $0.01 — hares of beneficial interest, par value $0.01 per share Indicate by check mark whet

Filing Documents

• ck0001950572-20250630.htm (10-Q) — 3494KB
• ck0001950572-ex31_1.htm (EX-31.1) — 13KB
• ck0001950572-ex31_2.htm (EX-31.2) — 13KB
• ck0001950572-ex32_1.htm (EX-32.1) — 5KB
• ck0001950572-ex32_2.htm (EX-32.2) — 5KB
• 0000950170-25-104952.txt ( ) — 11616KB
• ck0001950572-20250630.xsd (EX-101.SCH) — 834KB
• ck0001950572-20250630_htm.xml (XML) — 2929KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 1

Financial Statements

Item 1. Financial Statements 1 1 2 3 5 Schedules of Investments 6

Notes to Financial Statements

Notes to Financial Statements 10

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. 26

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 37

Controls and Procedures

Item 4. Controls and Procedures 38

OTHER INFORMATION

PART II. OTHER INFORMATION 39

Legal Proceedings

Item 1. Legal Proceedings 39

Risk Factors

Item 1A. Risk Factors 39

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 39

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 39

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 39

Other Information

Item 5. Other Information 39

Exhibits

Item 6. Exhibits 40

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This report contains forward-looking statements that involve substantial known and unknown risks, uncertainties and other factors. Undue reliance should not be placed on such statements. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about BIP Ventures Evergreen BDC (the "Company", "we", "us", "our"), current and prospective portfolio investments, industry, beliefs and the Company's assumptions. Words such as "anticipates," "expects," "intends," "plans," "will," "may," "continue," "believes," "seeks," "estimates," "would," "could," "should," "targets," "projects," and variations of these words and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond the Company's control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including: our future operating results; our business prospects and the prospects of our portfolio companies; the effect of investments that we expect to make and the competition for those investments; our ability to raise capital; geo-political conditions, including revolution, insurgency, terrorism or war; political uncertainty resulting from recent events, including changes to U.S. trade policies; the impact of changing regulations and implementation of tariffs on goods; general economic, logistical and political trends and other external factors, including pandemics and supply chain disruptions; potential economic downturns, interest rate volatility, loss of key personnel, and the illiquid nature of investments; the ability of our portfolio companies to achieve their objectives; our current and expected financing arrangements and investments; changes in the

FINA NCIAL INFORMATION

PART I. FINA NCIAL INFORMATION

Financ ial Statements

Item 1. Financ ial Statements BIP Ventures Evergreen BDC June 30, 2025 (unaudited) December 31, 2024 Assets Investments Non-controlled / non-affiliated investments (cost of $ 70,232,243 and $ 61,499,481 at June 30, 2025 and December 31, 2024, respectively) $ 90,381,624 $ 72,977,228 Non-controlled / affiliated investments (cost of $ 23,881,903 and $ 12,881,904 at June 30, 2025 and December 31, 2024, respectively) 29,140,802 12,881,904 Total investments, at fair value (cost of $ 94,114,146 and $ 74,381,385 at June 30, 2025 and December 31, 2024, respectively) 119,522,426 85,859,132 Cash and cash equivalents 250,156 5,783,352 Interest receivable 8,825,763 6,144,693 Total assets $ 128,598,345 $ 97,787,177 Liabilities Management fees payable $ 502,433 $ 392,167 Incentive fees payable 2,780,956 2,780,956 Accrued audit and tax fees 216,833 214,350 Accrued expenses and other liabilities 258,503 81,212 Distribution payable 73,252 — Total liabilities $ 3,831,977 $ 3,468,685 Commitments and contingencies (Note 6) Net assets Common shares, par value $ 0.01 per share, unlimited shares authorized ( 3,662,571 and 3,161,369 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively) 36,626 31,614 Paid-in-capital in excess of par value 97,652,793 82,466,305 Total distributable earnings (loss) 23,752,359 11,820,573 Net assets attributable to common shareholders 121,441,778 94,318,492 Incentive allocation attributable to the Investment Adviser 3,324,590 — Total net assets 124,766,368 94,318,492 Total liabilities and net assets $ 128,598,345 $ 97,787,177 Net asset value per share attributable to common shareholders (a) $ 33.16 $ 29.83 a. Calculated using net assets attributable to common shareholders The accompanying notes are an integral part of these financi

Notes to Financial Statements

Notes to Financial Statements (unaudited) Note 1. Organization BIP Ventures Evergreen BDC (the "Company") is an externally managed, non-diversified closed-end management investment company that is regulated as a business development company (a "BDC") under the Investment Company Act of 1940, as amended (the "1940 Act"). In addition, for tax purposes, the Company is taxed as a partnership under the U.S. Internal Revenue Code of 1986, as amended (the "Code"). The Company was formed as a Delaware statutory trust on August 10, 2022 and filed its initial registration statement on Form 10 on June 20, 2023. The Company is managed by BIP Capital, LLC, doing venture capital business as BIP Ventures (the "Investment Adviser"), a Delaware limited liability company and a registered investment adviser under the Investment Advisers Act of 1940, as amended. The Investment Adviser oversees the management of the Company's activities and is responsible for making investment decisions with respect to the Company's portfolio. The Company's primary investment objective is to maximize capital appreciation. The Company intends to achieve this objective primarily by investing in a portfolio consisting of common and preferred equity investments, including through the use of convertible notes, in U.S.-based portfolio companies, which qualify as "eligible portfolio companies" under the 1940 Act. The Company may also invest on an opportunistic basis in "non-qualifying" investments, such as investments in non-U.S. companies that otherwise meet the Company's objectives and strategies. The Company is conducting a continuous and perpetual private offering (the "Private Offering") of its shares of common beneficial interests, par value of $ 0.01 per share (the "Shares"), in reliance on an exemption from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act"). The Shares are being offered solely to investors that are "accredited investors" as define

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View this 10-Q filing on SEC EDGAR