Why did LIEN's Q3 earnings exceed forecasts so significantly?

LIEN's Q3 earnings exceeded forecasts due to **Strategic Growth and Diversification**.

1. **Loan Portfolio Acquisition**: The company's acquisition of a loan portfolio from Chicago Atlantic Loan Portfolio, LLC, on October 1, 2024, was a significant strategic move. This acquisition allowed LIEN to expand its investment portfolio and increase its total investment income.
2. **Focus on Cannabis Sector**: As the only publicly traded BDC focused on lending to cannabis companies, LIEN has positioned itself to capitalize on the growth potential in this sector. The company's investments in cannabis-related companies have contributed to its robust investment income.
3. **Balanced Risk Profile**: LIEN's diversified investment portfolio, with 23% of investments outside of cannabis, has provided a balanced risk profile. This diversification has helped the company to manage risks and generate stable returns.
4. **New Credit Facility**: The company's securing of a new $100 million senior secured revolving credit facility in February 2025 has enhanced its liquidity profile and growth capacity. This increased financial flexibility has allowed LIEN to fund more investments and grow its business.

In conclusion, LIEN's significant earnings beat can be attributed to its strategic growth initiatives, diversified investment portfolio, and new credit facility. These factors have collectively contributed to the company's robust investment income and strong financial performance.