CION Investment Corporation Reports Strong 2024 Performance
CION Investment Corporation highlights steady financial performance, robust portfolio growth, and strategic expansion amid economic uncertainties.
March 13, 2025
CION Investment Corporation (NYSE: CION) has released its 2024 annual report, outlining portfolio performance, investment strategy, and market positioning. The company remains focused on generating income and capital appreciation through middle-market lending.
Portfolio Performance and Investment Breakdown
CION closed the year with $1.89 billion in investments. Senior secured first lien loans made up 86% of the portfolio, reinforcing the company’s strategy of prioritizing collateral-backed lending. Equity investments accounted for 13.2%, with the remainder spread across unsecured debt, second lien loans, and structured products.
CION reported a gross annual portfolio yield of 10.96%, reflecting strong execution in credit selection and risk management. Shareholders received $81.3 million in total distributions for the year, with a quarterly base distribution of $0.36 per share announced for Q1 2025.
Investment Strategy and Market Position
Middle-market companies continue to be CION’s core focus. The firm targets businesses with EBITDA of $75 million or less, structuring investments primarily in senior secured debt to mitigate risk while delivering competitive returns.
A pullback in traditional bank lending has created demand for alternative financing solutions. CION is positioned to fill this gap, sourcing deals through private equity partnerships and direct lending relationships. The company is also selectively pursuing special situation investments in the secondary loan market.
Leverage and Capital Structure
CION uses leverage to enhance returns, with total outstanding debt at $1.12 billion as of December 31, 2024. The company maintains an asset coverage ratio of 174%, exceeding the regulatory minimum for business development companies (BDCs).
A key development in early 2025 was the refinancing of a $125 million senior secured credit facility with UBS. The revised terms lowered borrowing costs, which could translate to higher net investment income going forward.
Regulatory and Risk Considerations
As a BDC, CION must allocate at least 70% of its assets to qualifying investments. The company also operates as a Regulated Investment Company (RIC), requiring it to distribute at least 90% of taxable income to shareholders.
Risk factors identified in the report include:
- Market competition
- Interest rate fluctuations
- Regulatory shifts
- Broader economic conditions
By maintaining a diversified portfolio, prioritizing senior secured debt, and leveraging strategic partnerships, CION aims to navigate these challenges while positioning itself for steady growth.
Outlook for 2025
CION expects continued demand for middle-market lending, driven by private equity activity and reduced bank participation in the space. The firm remains focused on delivering stable income, managing risk, and identifying new opportunities to drive long-term shareholder value.
By combining disciplined investment selection with proactive risk management, CION is prepared to adapt to shifting market conditions while maintaining its core investment strategy.
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