Monroe Capital Corporation reported its financial results for the first quarter of 2025, revealing a total investment income of $11.6 million, a decrease from $15.2 million in the same period last year. The decline in income was primarily attributed to lower interest and payment-in-kind (PIK) interest income, which fell to $8.0 million and $1.1 million, respectively, compared to $10.8 million and $2.1 million in the prior year. The company's net investment income before taxes was $4.2 million, down from $5.5 million, resulting in a net investment income of $4.1 million, or $0.19 per share, compared to $5.5 million, or $0.25 per share, in the previous year.
Total assets as of March 31, 2025, were reported at $461.5 million, a decrease from $490.7 million at the end of 2024. This decline was primarily due to a reduction in the fair value of investments, which decreased to $430.6 million from $457.0 million. The company’s total liabilities also decreased to $274.6 million from $298.9 million, largely due to a reduction in debt, which fell to $271.2 million from $293.9 million. The net asset value per share decreased to $8.63 from $8.85, reflecting the overall decline in net assets, which totaled $186.9 million, down from $191.8 million.
In terms of operational developments, Monroe Capital's investment portfolio composition remained stable, with approximately 76.8% in senior secured loans, 0.5% in unitranche secured loans, 7.5% in junior secured loans, and 15.2% in equity investments. The company invested $7.6 million in one new portfolio company and $8.8 million in 25 existing portfolio companies during the quarter, while experiencing $42.0 million in aggregate sales and principal repayments, resulting in a net decrease in investments of $25.6 million for the period.
Looking ahead, Monroe Capital's management expressed cautious optimism regarding the market environment for middle-market investments, noting that the current economic conditions may present opportunities for attractive risk-adjusted returns. However, they acknowledged potential challenges, including rising interest rates and inflation, which could impact the credit quality of their portfolio companies. The company continues to focus on maximizing total returns for its stockholders through strategic investments in senior secured and unitranche secured debt, while maintaining a disciplined approach to risk management.
About MONROE CAPITAL Corp
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