No recent public news developments impacting MFIC’s business model or operations were identified.

MFIC benefits from its focused investment strategy in middle-market senior secured loans, which typically offer higher yields relative to broadly syndicated loans. Its affiliation with Apollo Investment Management provides access to experienced investment professionals and deal flow. The company’s diversified portfolio across debt and equity instruments and its floating rate exposure may provide income opportunities in varying interest rate environments. The completed mergers with Apollo-affiliated funds have expanded its asset base and potential investment opportunities.

The portfolio’s concentration in below investment grade and unrated debt instruments introduces credit risk and potential valuation challenges. The speculative nature of many investments may lead to volatility in income and capital values. The company’s reliance on Apollo Investment Management for investment decisions and operational management concentrates risk in a single adviser. Regulatory constraints on leverage and BDC-specific requirements may limit operational flexibility. Cybersecurity threats pose operational risks despite governance measures. Market disruptions or adverse credit events in the middle-market segment could negatively impact portfolio performance.

MFIC’s moat is supported by its affiliation with Apollo Investment Management, which provides access to extensive capital markets expertise, research capabilities, and deal sourcing in the middle-market lending space. The company’s status as a BDC with a specialized focus on middle-market senior secured loans and its established relationships with over 100 financial sponsors contribute to its competitive positioning. The scale of invested capital and diversified portfolio across numerous companies also provide operational resilience. Regulatory compliance and robust governance, including cybersecurity oversight, further support its operational moat.

• Credit Risk: Investments are primarily in below investment grade or unrated debt with speculative characteristics, which may affect the borrower’s ability to pay interest and principal and pose valuation and liquidity challenges.
• Regulatory Constraints: As a BDC, MFIC is subject to regulatory limits on leverage and operational requirements that may restrict its investment and financing flexibility.
• Adviser Concentration Risk: The company relies on Apollo Investment Management for investment advisory services, concentrating operational and investment decision risks in one entity.
• Cybersecurity Risk: Despite robust governance and oversight, cybersecurity threats could disrupt operations, compromise confidential information, or damage business relationships.
• Market and Economic Risks: Adverse economic conditions or market disruptions in the middle-market lending sector could negatively impact portfolio valuations and income generation.

• MidCap Financial Investment Corporation (MFIC) is a Maryland corporation organized in 2004 and operates as a closed-end, externally managed, diversified management investment company.
• MFIC has elected to be treated as a Business Development Company (BDC) under the 1940 Act and as a Regulated Investment Company (RIC) for tax purposes.
• The company’s investment objective is to generate current income and, to a lesser extent, long-term capital appreciation.
• MFIC primarily invests in directly originated and privately negotiated first lien senior secured loans to privately held U.S. middle-market companies, generally defined as companies with less than $75 million in EBITDA.
• The portfolio also includes other types of securities such as first lien unitranche, second lien senior secured, unsecured, subordinated, mezzanine loans, and equity interests in private and public middle market companies.
• As of December 31, 2025, the portfolio consisted of 247 companies with 95% invested in secured debt, 1% in preferred equity, and 4% in common equity/interests and warrants measured at fair value.
• Most debt instruments are unrated or rated below investment grade, indicating speculative characteristics and potential illiquidity.
• During 2025, MFIC invested $1.3 billion across 54 new and 156 existing portfolio companies, and sold or had repaid $1.1 billion of investments.
• The weighted average yields on the secured debt portfolio and total portfolio as of December 31, 2025 were 9.7% and 8.6%, respectively, compared to 10.8% and 9.5% as of December 31, 2024.
• Since its IPO in 2004 through December 31, 2025, MFIC has invested $26.8 billion in 848 portfolio companies and completed transactions with over 100 financial sponsors.
• 100% of the direct origination portfolio is floating rate debt as of December 31, 2025.
• Apollo Investment Management, L.P. (AIM), an affiliate of Apollo Global Management, Inc., serves as MFIC’s investment adviser and manages day-to-day operations.
• MFIC’s investment activities are supervised by a majority independent Board of Directors and managed by AIM under an investment advisory agreement that includes base and incentive fees.
• The company completed mergers with Apollo Senior Floating Rate Fund Inc. (AFT) and Apollo Tactical Income Fund Inc. (AIF) in July 2024, consolidating these entities into MFIC.
• MFIC’s cybersecurity risk management is overseen by AGM’s Board and audit committee, with dedicated cybersecurity teams and regular reporting on cyber risks and incidents.
• The company is not currently subject to any material legal proceedings and does not anticipate material impacts from ordinary course investigations or claims.