MidCap Financial Investment Corporation Reports 15.2% Increase in Investment Income for Q1 2025

MidCap Financial Investment Corporation (MFIC) reported its financial results for the first quarter of 2025, revealing a total investment income of $78.7 million, a 15.2% increase from $68.3 million in the same period last year. This growth was primarily driven by a rise in interest income, which reached $74.6 million, up from $64.6 million in the prior year. The company also noted an increase in net investment income, which amounted to $34.3 million, compared to $28.5 million in the first quarter of 2024. However, earnings per share decreased to $0.32 from $0.39 year-over-year, reflecting a higher number of shares outstanding following recent mergers.

The company's total assets as of March 31, 2025, stood at $3.36 billion, up from $3.19 billion at the end of 2024. This increase was attributed to the assets acquired through the mergers with Apollo Senior Floating Rate Fund Inc. (AFT) and Apollo Tactical Income Fund Inc. (AIF), which were completed on July 22, 2024. The mergers resulted in the issuance of approximately 28.5 million shares, significantly increasing the total shares outstanding to 93.3 million. The net assets at the end of the quarter were reported at $1.39 billion, slightly down from $1.40 billion at the end of the previous fiscal year.

Operationally, MFIC's portfolio saw a notable increase in the number of investments, with 240 portfolio companies as of March 31, 2025, compared to 154 a year earlier. The company made investments totaling $391.9 million during the quarter, a significant rise from $152.8 million in the same period last year. The average debt outstanding also increased to $1.8 billion, up from $1.4 billion, reflecting the company's strategy to leverage its capital for growth. The annualized ratio of net investment income to average net assets was reported at 9.94%, down from 11.42% in the previous year.

Looking ahead, MFIC's management expressed optimism about the company's growth trajectory, supported by its diversified investment strategy focused on middle-market companies. The company plans to continue leveraging its capital structure to enhance returns while managing risks associated with interest rates and market conditions. The board has declared a distribution of $0.38 per share, payable on June 26, 2025, indicating a commitment to returning value to shareholders while maintaining compliance with regulatory requirements as a business development company.