MFIC 10-Q Quarterly Report Sept. 30, 2022

MIDCAP FINANCIAL INVESTMENT CORP

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10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2022

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 814-00646

MIDCAP FINANCIAL INVESTMENT CORPORATION

(Exact name of Registrant as specified in its charter)


Maryland	52-2439556
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
9 West 57 th Street 37th Floor New York , New York	10019
(Address of principal executive offices)	(Zip Code)

( 212 ) 515-3450

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock, $0.001 par value	MFIC	NASDAQ Global Select Market

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No ¨

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	x	Accelerated filer	¨	Non-accelerated filer	¨	Smaller reporting company	¨

(Do not check if a smaller reporting company)

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x

The number of shares of the registrant’s common stock, $0.001 par value per share, outstanding as of November 2, 2022 was 65,451,359 .

MIDCAP FINANCIAL INVESTMENT CORPORATION

Table of Contents


		Page
	PART I. FINANCIAL INFORMATION

Item 1.	Financial Statements	1

	Statements of Assets and Liabilities September 30, 2022 and March 31, 2022	1

	Statements of Operations Three and six months ended September 30, 2022 and September 30, 2021	2

	Statements of Changes in Net Assets Three and six months ended September 30, 2022 and September 30, 2021	3

	Statements of Cash Flows Six months ended September 30, 2022 and September 30, 2021	4

	Schedule of Investments September 30, 2022	5

	Schedule of Investments March 31, 2022	31

	Notes to Financial Statements	56

	Reports of Independent Registered Public Accounting Firm	90

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	92

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	107

Item 4.	Controls and Procedures	109

	PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	110

Item 1A.	Risk Factors	110

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	111

Item 3.	Defaults Upon Senior Securities	114

Item 4.	Mine Safety Disclosures	114

Item 5.	Other Information	114

Item 6.	Exhibits	115

	Signatures	116

Table of Contents

PART I. FINANCIAL INFORMATION

In this report, the terms the “Company,” “MFIC,” “we,” “us,” and “our” refer to MidCap Financial Investment Corporation unless the context specifically states otherwise.

Item 1. Financial Statements

MIDCAP FINANCIAL INVESTMENT CORPORATION

STATEMENTS OF ASSETS AND LIABILITIES

(In thousands, except share and per share data)


	September 30, 2022			March 31, 2022
	(Unaudited)
Assets
Investments at fair value:
Non-controlled/non-affiliated investments (cost — $ 2,032,159 and $ 2,001,907 , respectively)	$	1,986,374		$		1,977,647
Non-controlled/affiliated investments (cost — $ 131,024 and $ 130,866 , respectively)		58,829				63,709
Controlled investments (cost — $ 555,643 and $ 613,056 , respectively)		418,342				481,817
Cash and cash equivalents		60,281				30,033
Foreign currencies (cost — $ 1,633 and $ 601 , respectively)		1,455				565
Receivable for investments sold		7,745				7,989
Interest receivable		13,198				15,554
Dividends receivable		4,649				5,083
Deferred financing costs		14,604				17,005
Prepaid expenses and other assets		553				719
Total Assets	$	2,566,030		$		2,600,121

Liabilities
Debt	$	1,504,400		$		1,550,608
Payable for investments purchased		—			—
Distributions payable		20,944				22,913
Management and performance-based incentive fees payable		12,803				9,912
Interest payable		7,803				3,335
Accrued administrative services expense		1,583				897
Other liabilities and accrued expenses		7,461				7,624
Total Liabilities	$	1,554,994		$		1,595,289
Commitments and contingencies (Note 8)
Net Assets	$	1,011,036		$		1,004,832

Net Assets
Common stock, $ 0.001 par value ( 130,000,000 shares authorized; 65,451,359 and 63,647,240 shares issued and outstanding, respectively)	$	62		$		62
Capital in excess of par value		2,107,124				2,078,760
Accumulated under-distributed (over-distributed) earnings		( 1,096,150	)			( 1,073,990	)
Net Assets	$	1,011,036		$		1,004,832

Net Asset Value Per Share	$	15.45		$		15.79

See notes to financial statements.

Table of Contents

MIDCAP FINANCIAL INVESTMENT CORPORATION

STATEMENTS OF OPERATIONS (Unaudited)

(In thousands, except per share data)


	Three Months Ended September 30,						Six Months Ended September 30,
	2022			2021			2022			2021
Investment Income
Non-controlled/non-affiliated investments:
Interest income (excluding Payment-in-kind (“PIK”) interest income)	$	46,762		$	38,850		$	89,210		$	79,096
Dividend income		31			325			56			397
PIK interest income		371			592			785			1,792
Other income		1,223			994			1,499			2,181
Non-controlled/affiliated investments:
Interest income (excluding PIK interest income)		58			48			106			93
Dividend income		220			338			531			649
PIK interest income		20			18			39			34
Other income		—			—			—			—
Controlled investments:
Interest income (excluding PIK interest income)		9,498			9,342			18,600			16,499
Dividend income		—			2,059			—			2,059
PIK interest income		465			323			987			642
Other income		237			—			477			—
Total Investment Income	$	58,885		$	52,889		$	112,290		$	103,442
Expenses
Management fees	$	8,914		$	9,158		$	17,863		$	17,972
Performance-based incentive fees		3,976			5,271			5,373			5,271
Interest and other debt expenses		20,226			13,944			36,603			26,608
Administrative services expense		1,301			1,715			2,587			2,985
Other general and administrative expenses		2,177			1,793			4,382			4,331
Total expenses		36,594			31,881			66,808			57,167
Management and performance-based incentive fees waived		—			—			—			—
Performance-based incentive fee offset		( 87	)		( 147	)		( 162	)		( 147	)
Expense reimbursements		( 259	)		( 76	)		( 488	)		( 152	)
Net Expenses	$	36,248		$	31,658		$	66,158		$	56,868
Net Investment Income	$	22,637		$	21,231		$	46,132		$	46,574
Net Realized and Change in Unrealized Gains (Losses)
Net realized gains (losses):
Non-controlled/non-affiliated investments	$	( 462	)	$	2,523		$	( 148	)	$	2,803
Non-controlled/affiliated investments		—			541			—			541
Controlled investments		—			( 65,300	)		—			( 65,300	)
Foreign currency transactions		294			( 2,565	)		272			( 2,749	)
Net realized gains (losses)		( 168	)		( 64,801	)		124			( 64,705	)
Net change in unrealized gains (losses):
Non-controlled/non-affiliated investments		( 10,210	)		( 1,215	)		( 21,525	)		5,610
Non-controlled/affiliated investments		( 1,548	)		7,434			( 5,038	)		17,433
Controlled investments		1,513			57,821			( 6,062	)		47,795
Foreign currency translations		3,769			4,971			8,022			4,877
Net change in unrealized gains (losses)		( 6,476	)		69,011			( 24,603	)		75,715
Net Realized and Change in Unrealized Gains (Losses)	$	( 6,644	)	$	4,210		$	( 24,479	)	$	11,010
Net Increase (Decrease) in Net Assets Resulting from Operations	$	15,993		$	25,441		$	21,653		$	57,584
Earnings (Loss) Per Share — Basic		0.25			0.39			0.34			0.88

See notes to financial statements.

Table of Contents

MIDCAP FINANCIAL INVESTMENT CORPORATION

STATEMENTS OF CHANGES IN NET ASSETS (Unaudited)

(In thousands, except share data)


	Three Months Ended September 30,						Six Months Ended September 30,
	2022			2021			2022			2021
Operations
Net investment income	$	22,637		$	21,231		$	46,132		$	46,574
Net realized gains (losses)		( 168	)		( 64,801	)		124			( 64,705	)
Net change in unrealized gains (losses)		( 6,476	)		69,011			( 24,603	)		75,715
Net Increase (Decrease) in Net Assets Resulting from Operations	$	15,993		$	25,441		$	21,653		$	57,584

Distributions to Stockholders
Distribution of net investment income	$	( 20,944	)	$	( 23,408	)	$	( 43,811	)	$	( 46,850	)
Distribution of return of capital		—			—			—			—
Net Decrease in Net Assets Resulting from Distributions to Stockholders	$	( 20,944	)	$	( 23,408	)	$	( 43,811	)	$	( 46,850	)

Capital Share Transactions
Net proceeds from the issuance of common stock	$	30,000		$	—		$	30,000		$	—
Repurchase of common stock	$	—		$	( 5,905	)	$	( 1,638	)	$	( 7,931	)
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions	$	30,000		$	( 5,905	)	$	28,362		$	( 7,931	)

Net Assets
Net increase (decrease) in net assets during the period	$	25,049		$	( 3,872	)	$	6,204		$	2,803
Net assets at beginning of period		985,987			1,043,005			1,004,832			1,036,330
Net Assets at End of Period	$	1,011,036		$	1,039,133		$	1,011,036		$	1,039,133

Capital Share Activity
Shares issued during the period		1,932,641			—			1,932,641			—
Shares repurchased during the period		—			( 450,953	)		( 128,522	)		( 596,525	)
Shares issued and outstanding at beginning of period		63,518,718			65,113,604			63,647,240			65,259,176
Shares Issued and Outstanding at End of Period		65,451,359			64,662,651			65,451,359			64,662,651

See notes to financial statements.

Table of Contents

MIDCAP FINANCIAL INVESTMENT CORPORATION

STATEMENTS OF CASH FLOWS (Unaudited)

(In thousands)


	Six Months Ended September 30,
	2022			2021
Operating Activities
Net increase (decrease) in net assets resulting from operations	$	21,653		$		57,584
Net realized (gains) losses		( 124	)			64,705
Net change in unrealized (gains) losses		24,603				( 75,715	)
Net amortization of premiums and accretion of discounts on investments		( 4,249	)			( 4,623	)
Accretion of discount on notes		302				382
Amortization of deferred financing costs		2,599				2,598
Increase in gains/(losses) from foreign currency transactions		272				( 2,743	)
PIK interest and dividends capitalized		( 1,405	)			( 2,727	)
Changes in operating assets and liabilities:
Purchases of investments		( 340,739	)			( 583,325	)
Proceeds from sales and repayments of investments		373,490				428,658
Decrease (increase) in interest receivable		2,356				439
Decrease (increase) in dividends receivable		434				( 2,707	)
Decrease (increase) in prepaid expenses and other assets		166				( 425	)
Increase (decrease) in management and performance-based incentive fees payable		2,891				5,616
Increase (decrease) in interest payable		4,468				1,340
Increase (decrease) in accrued administrative services expense		686				1,485
Increase (decrease) in other liabilities and accrued expenses		( 162	)			493
Net Cash Used in/Provided by Operating Activities	$	87,241		$		( 108,965	)
Financing Activities
Issuances of debt	$	148,000		$		378,005
Payments of debt		( 186,543	)			( 241,178	)
Financing costs paid and deferred		—			—
Net proceeds from the issuance of common stock		30,000			—
Repurchase of common stock		( 1,638	)			( 7,931	)
Distributions paid		( 45,780	)			( 46,934	)
Net Cash Used in/Provided by Financing Activities	$	( 55,961	)	$		81,962

Cash, Cash Equivalents and Foreign Currencies
Net increase (decrease) in cash, cash equivalents and foreign currencies during the period	$	31,280		$		( 27,003	)
Effect of foreign exchange rate changes on cash and cash equivalents		( 142	)			( 103	)
Cash, cash equivalents and foreign currencies at beginning of period		30,598				54,624
Cash, Cash Equivalents and Foreign Currencies at the End of Period	$	61,736		$		27,518

Supplemental Disclosure of Cash Flow Information
Cash interest paid	$	29,090		$		22,288

Non-Cash Activity
PIK income	$	1,811		$		2,468

See notes to financial statements.

Table of Contents

MIDCAP FINANCIAL INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2022

(In thousands, except share data)


Industry/Company	Investment Type	Interest Rate	Maturity Date	Par/Shares (12)			Cost (34)			Fair Value (1)(35)
Advertising, Printing & Publishing
FingerPaint Marketing
KL Charlie Acquisition Company	First Lien Secured Debt	L+ 625 , 1.00 % Floor	12/30/26	$		30,702	$	23,175		$	23,119		(9)(21)(23) (28)
	First Lien Secured Debt - Revolver	L+ 675 , 1.00 % Floor	12/30/26			1,962		( 27	)		( 29	)	(8)(9)(21) (23)
KL Charlie Co-Invest, L.P.	Common Equity - Common Stock	N/A	N/A		218,978 Shares			219			298		(9)(13)
								23,367			23,388
Hero Digital
HRO (Hero Digital) Holdings, LLC	First Lien Secured Debt	L+ 600 , 1.00 % Floor	11/18/28			27,087		19,021			18,900		(9)(21)(23) (28)
	First Lien Secured Debt - Revolver	L+ 600 , 1.00 % Floor	11/18/26			2,298		1,408			1,402		(9)(20)(21) (23)(26)
	First Lien Secured Debt - Revolver	P+ 500	11/18/26			255		251			250		(9)(23)(25)
HRO Holdings I LP	Common Equity - Common Stock	N/A	N/A		213 Shares			213			173		(9)(13)(24)
								20,893			20,725
		Total Advertising, Printing & Publishing					$	44,260		$	44,113
Aerospace & Defense
Erickson Inc
Erickson Inc	First Lien Secured Debt - Revolver	SOFR+ 800 , 1.00 % Floor	05/20/24	$		32,250	$	24,354		$	24,069		(9)(20)(21) (23)(31)
		Total Aerospace & Defense					$	24,354		$	24,069
Automotive
Club Car Wash
Club Car Wash Operating, LLC	First Lien Secured Debt	SOFR+ 650 , 1.00 % Floor	06/16/27	$		29,808	$	27,115		$	26,676		(9)(21)(23) (32)
	First Lien Secured Debt - Revolver	SOFR+ 650 , 1.00 % Floor	06/16/27			2,438		( 34	)		( 71	)	(8)(9)(21) (23)
								27,081			26,605
Crowne Automotive
Vari-Form Group, LLC	First Lien Secured Debt	11.00 % ( 7.00 % Cash plus 4.00 % PIK)	02/02/23			5,860		893			264		(9)(14)(28)
Vari-Form Inc.	First Lien Secured Debt	11.00 % ( 7.00 % Cash plus 4.00 % PIK)	02/02/23			2,110		391			95		(9)(14)(28)
								1,284			359
K&N Parent, Inc.
K&N Parent, Inc.	Second Lien Secured Debt	8.75 %	10/21/24			23,765		23,621			14,235		(14)(28)
Truck-Lite Co., LLC
TL Lighting Holdings, LLC	Common Equity - Equity	N/A	N/A		350 Shares			350			379		(9)(13)
Truck-Lite Co., LLC	First Lien Secured Debt	SOFR+ 625 , 1.00 % Floor	12/14/26			31,816		31,333			31,114		(9)(33)
	First Lien Secured Debt - Revolver	SOFR+ 625 , 1.00 % Floor	12/13/24			3,052		217			181		(9)(20)(21) (23)(31)
								31,900			31,674
		Total Automotive					$	83,886		$	72,873
Aviation and Consumer Transport
Merx Aviation Finance, LLC
Merx Aviation Finance, LLC (5)	First Lien Secured Debt - Revolver	10.00 %	10/31/23	$		204,677	$	150,000		$	150,000		(20)(23)
	Common Equity - Membership Interests	N/A	N/A					146,500			115,609		(24)
								296,500			265,609

See notes to financial statements.

Table of Contents

MIDCAP FINANCIAL INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2022

(In thousands, except share data)


Industry/Company	Investment Type	Interest Rate	Maturity Date	Par/Shares (12)			Cost (34)			Fair Value (1)(35)
Primeflight
PrimeFlight Aviation Services, Inc.	First Lien Secured Debt	L+ 625 , 1.00 % Floor	05/09/24			17,290		17,147			17,204		(9)(28)
		Total Aviation and Consumer Transport					$	313,647		$	282,813
Beverage, Food & Tobacco
Berner Foods
Berner Food & Beverage, LLC	First Lien Secured Debt	L+ 550 , 1.00 % Floor	07/30/27	$		30,807	$	30,228		$	30,653		(9)(28)
	First Lien Secured Debt - Revolver	P+ 450	07/30/26			1,008		990			1,003		(9)(21)(23) (25)
	First Lien Secured Debt - Revolver	L+ 550 , 1.00 % Floor	07/30/26			1,873		544			567		(9)(21)(23) (28)
								31,762			32,223
Bolthouse Farms
Wm. Bolthouse Farms, Inc.	Common Equity - Equity Interests	N/A	N/A		1,086,122 Shares			1,147			1,292		(13)(24)
Hive
FCP-Hive Holdings, LLC	Preferred Equity - Preferred Equity	N/A	N/A		589 Shares			448			339		(9)(13)
	Common Equity - Common Stock	N/A	N/A		589 Shares			3			—		(9)(13)
Hive Intermediate, LLC	First Lien Secured Debt	L+ 600 , 1.00 % Floor	09/22/27			17,037		16,759			16,356		(9)(26)
	First Lien Secured Debt - Revolver	L+ 600 , 1.00 % Floor	09/22/27			2,326		( 37	)		( 93	)	(8)(9)(21) (23)
								17,173			16,602
Orgain, Inc.
Butterfly Fighter Co-Invest, L.P.	Common Equity - Membership Interests	N/A	N/A		490,000 Shares			90			902
Rise Baking
Ultimate Baked Goods Midco LLC	First Lien Secured Debt	L+ 650 , 1.00 % Floor	08/13/27			26,556		26,001			25,600		(9)(28)
	First Lien Secured Debt - Revolver	L+ 650 , 1.00 % Floor	08/13/27			3,243		2,203			2,153		(9)(20)(21) (23)(28)
								28,204			27,753
Turkey Hill
IC Holdings LLC	Common Equity - Series A Units	N/A	N/A		169 Shares			169			133		(9)(13)
THLP CO. LLC	First Lien Secured Debt	L+ 600 Cash plus 2.00 % PIK, 1.00 % Floor	05/31/25			25,343		25,093			24,836		(9)(28)
	First Lien Secured Debt - Revolver	L+ 600 Cash plus 2.00 % PIK, 1.00 % Floor	05/31/24			4,494		1,903			1,841		(9)(20)(21) (23)(28)
								27,165			26,810
		Total Beverage, Food & Tobacco					$	105,541		$	105,582
Business Services
Access Information
Access CIG, LLC	Second Lien Secured Debt	L+ 775 , 0.00 % Floor	02/27/26	$		15,900	$	15,834		$	15,662		(28)
AlpineX
Alpinex Opco, LLC	First Lien Secured Debt	SOFR+ 575 , 1.00 % Floor	12/27/27			16,353		16,058			15,825		(9)(32)
	First Lien Secured Debt	SOFR+ 600 , 1.00 % Floor	12/27/27			5,213		5,069			5,082		(9)(32)
	First Lien Secured Debt - Revolver	SOFR+ 600 , 1.00 % Floor	12/27/27			1,489		563			573		(9)(21)(23) (32)
								21,690			21,480
Ambrosia Buyer Corp.
Ambrosia Buyer Corp.	Second Lien Secured Debt	8.00 %	08/28/25			21,429		17,722			7,048		(14)

See notes to financial statements.

Table of Contents

MIDCAP FINANCIAL INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2022

(In thousands, except share data)


Industry/Company	Investment Type	Interest Rate	Maturity Date	Par/Shares (12)			Cost (34)			Fair Value (1)(35)
AML Rightsource
Gabriel Partners, LLC	First Lien Secured Debt	L+ 600 , 1.00 % Floor	09/21/26			31,293		30,791			30,504		(9)(26)
	First Lien Secured Debt - Revolver	P+ 500	09/21/26			665		121			113		(9)(21)(23) (25)
								30,912			30,617
Continuum
Continuum Global Solutions, LLC	Preferred Equity - Preferred Equity	N/A	N/A		775 Shares			78			78		(9)(13)
Electro Rent Corporation
Electro Rent Corporation	Second Lien Secured Debt	L+ 900 , 1.00 % Floor	01/31/25			34,235		33,869			34,064		(9)(28)
Elo Touch
TGG TS Acquisition Company	First Lien Secured Debt - Revolver	L+ 650 , 0.00 % Floor	12/14/23			1,750		—			( 26	)	(8)(21)(23)
Ensemble Health
EHL Merger Sub, LLC	First Lien Secured Debt - Revolver	L+ 325 , 0.00 % Floor	08/01/24			4,155		( 142	)		( 187	)	(8)(21)(23)
IRP
Precision Refrigeration & Air Conditioning LLC	First Lien Secured Debt	SOFR+ 600 , 1.00 % Floor	03/08/28			8,141		7,990			7,937		(9)(32)
	First Lien Secured Debt - Revolver	SOFR+ 600 , 1.00 % Floor	03/08/27			1,705		( 30	)		( 43	)	(8)(9)(21) (23)
SMC IR Holdings, LLC	Common Equity - Common Stock	N/A	N/A		114 Shares			114			130		(9)(13)(24)
								8,074			8,024
Jacent
Jacent Strategic Merchandising	First Lien Secured Debt	L+ 675 , 1.00 % Floor	04/23/24			22,115		22,005			21,036		(9)(28)
	First Lien Secured Debt - Revolver	L+ 675 , 1.00 % Floor	04/23/24			3,500		3,476			3,326		(9)(21)(23) (28)
	Common Equity - Common Stock	N/A	N/A		5,000 Shares			500			—		(9)(13)
JSM Equity Investors, L.P.	Preferred Equity - Class P Partnership Units	N/A	N/A		114 Shares			11			11		(9)(13)
								25,992			24,373
Jones & Frank
JF Acquisition, LLC	First Lien Secured Debt	L+ 600 , 1.00 % Floor	07/31/26			13,133		13,007			12,792		(9)(26)
	First Lien Secured Debt - Revolver	L+ 600 , 1.00 % Floor	07/31/26			1,569		738			712		(9)(21)(23) (26)
								13,745			13,504
Naviga
Naviga Inc. (fka Newscycle Solutions, Inc.)	First Lien Secured Debt	L+ 700 , 1.00 % Floor	12/29/22			13,329		13,294			13,329		(9)(28)
	First Lien Secured Debt - Revolver	L+ 700 , 1.00 % Floor	12/29/22			336		279			280		(9)(21)(23) (26)
	First Lien Secured Debt - Revolver	P+ 700	12/29/22			164		164			164		(9)(23)(25)
								13,737			13,773
PSE
Graffiti Buyer, Inc.	First Lien Secured Debt	L+ 550 , 1.00 % Floor	08/10/27			5,778		5,678			5,662		(9)(28)
	First Lien Secured Debt	L+ 575 , 1.00 % Floor	08/10/27			2,613		( 16	)		( 52	)	(8)(9)(21) (23)
	First Lien Secured Debt - Revolver	L+ 550 , 1.00 % Floor	08/10/27			1,133		439			435		(9)(21)(23) (28)
	First Lien Secured Debt - Revolver	P+ 450	08/10/27			174		171			170		(9)(23)(25)
Graffiti Parent, LP	Common Equity - Common Stock	N/A	N/A		2,439 Shares			244			216		(9)(13)
								6,516			6,431

See notes to financial statements.

Table of Contents

MIDCAP FINANCIAL INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2022

(In thousands, except share data)


Industry/Company	Investment Type	Interest Rate	Maturity Date	Par/Shares (12)			Cost (34)		Fair Value (1)(35)
PSI Services, LLC
Lifelong Learner Holdings, LLC	First Lien Secured Debt	L+ 575 , 1.00 % Floor	10/19/26			33,801		33,397		32,034	(9)(28)
	First Lien Secured Debt - Revolver	L+ 575 , 1.00 % Floor	10/20/25			2,985		2,951		2,853	(9)(21)(23) (28)
								36,348		34,887
Soliant
Soliant Health, Inc.	Common Equity - Membership Interests	N/A	N/A		300 Shares			300		1,226	(9)
Trench Plate
Trench Plate Rental Co.	First Lien Secured Debt	SOFR+ 550 , 1.00 % Floor	12/03/26			18,136		17,883		17,864	(9)(32)
	First Lien Secured Debt - Revolver	SOFR+ 550 , 1.00 % Floor	12/03/26			1,818		566		564	(9)(20)(21) (23)(32)
Trench Safety Solutions Holdings, LLC	Common Equity - Common Stock	N/A	N/A		331 Shares			50		44	(9)(24)
								18,499		18,472
US Legal Support
US Legal Support Investment Holdings, LLC	Common Equity - Series A-1 Units	N/A	N/A		631,972 Shares			632		872	(9)(13)
USLS Acquisition, Inc.	First Lien Secured Debt	SOFR+ 575 , 1.00 % Floor	12/02/24			23,879		23,690		23,514	(9)(32)
	First Lien Secured Debt - Revolver	SOFR+ 575 , 1.00 % Floor	12/02/24			1,608		536		538	(9)(20)(21) (23)(32)
								24,858		24,924
Wilson Language Training
Owl Acquisition, LLC	First Lien Secured Debt	SOFR+ 525 , 1.00 % Floor	02/04/28			9,875		9,690		9,678	(9)(33)
Owl Parent Holdings, LLC	Common Equity - Common Stock	N/A	N/A		100 Shares			100		138	(9)(13)(24)
								9,790		9,816
		Total Business Services					$	277,822	$	264,166
Chemicals, Plastics & Rubber
Carbonfree Chemicals SPE I LLC (f/k/a Maxus Capital Carbon SPE I LLC)
Carbonfree Chemicals Holdings LLC (4)	Common Equity - Common Equity / Interest	N/A	N/A		2,491 Shares		$	78,729	$	40,979	(13)(24)
Westfall Technik, Inc.
Westfall Technik, Inc.	First Lien Secured Debt	SOFR+ 625 , 1.00 % Floor	09/13/24			21,357		21,187		20,712	(9)(32)
	First Lien Secured Debt - Revolver	SOFR+ 625 , 1.00 % Floor	09/13/24			2,039		2,025		1,977	(9)(23)(32)
								23,212		22,689
		Total Chemicals, Plastics & Rubber					$	101,941	$	63,668
Construction & Building
Englert
Gutter Buyer, Inc.	First Lien Secured Debt	L+ 625 , 1.00 % Floor	03/06/25	$		29,044	$	28,777	$	28,520	(9)(26)
	First Lien Secured Debt - Revolver	P+ 525	03/06/24			2,727		1,344		1,319	(9)(20)(21) (23)(25)
Gutter Holdings, LP	Common Equity - Common Stock	N/A	N/A		500 Shares			500		908	(9)
		Total Construction & Building					$	30,621	$	30,747
Consumer Goods - Durable
A&V
A&V Holdings Midco, LLC	First Lien Secured Debt - Revolver	L+ 450 , 1.00 % Floor	03/10/25	$		1,505	$	384	$	404	(21)(23) (26)

See notes to financial statements.

Table of Contents

MIDCAP FINANCIAL INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2022

(In thousands, except share data)


Industry/Company	Investment Type	Interest Rate	Maturity Date	Par/Shares (12)			Cost (34)			Fair Value (1)(35)
KDC
KDC US Holdings	First Lien Secured Debt - Revolver	L+ 325 , 0.00 % Floor	12/21/23			6,020		900			730		(20)(21)(23) (26)
KLO Holdings, LLC
1244311 B.C. Ltd. (4)	First Lien Secured Debt	L+ 500 , 1.00 % Floor	09/30/25			2,978		2,978			2,781		(17)(26)
	First Lien Secured Debt	L+ 500 Cash plus 6.00 % PIK, 1.00 % Floor	09/30/25			1,112		1,112			1,030		(17)(28)
	Common Equity - Common Stock	N/A	N/A		1,000,032 Shares			1,000			419		(2)(13)(17) (24)
GSC Technologies Inc. (4)	First Lien Secured Debt	L+ 500 Cash plus 5.00 % PIK, 1.00 % Floor	09/30/25			196		196			182		(17)(26)
								5,286			4,412
Liqui-Box
Liqui-Box Holdings, Inc.	First Lien Secured Debt - Revolver	L+ 450 , 1.00 % Floor	02/26/25			2,578		1,830			1,802		(21)(23)(28)
	First Lien Secured Debt - Revolver	P+ 350	02/26/25			982		976			968		(21)(23)(25)
								2,806			2,770
NSi Industries
Wildcat BuyerCo, Inc.	First Lien Secured Debt	SOFR+ 575 , 1.00 % Floor	02/27/26			17,074		16,618			16,796		(32)
	First Lien Secured Debt - Revolver	SOFR+ 575 , 1.00 % Floor	02/27/26			725		( 9	)		( 12	)	(8)(20)(21) (23)
Wildcat Parent LP	Common Equity - Common Stock	N/A	N/A		1,070 Shares			107			181		(13)
								16,716			16,965
Sorenson Holdings, LLC
Sorenson Holdings, LLC	Common Equity - Membership Interests	N/A	N/A		587 Shares			—			323		(10)(13)
		Total Consumer Goods – Durable					$	26,092		$	25,604
Consumer Goods - Non-durable
3D Protein
Protein For Pets Opco, LLC	First Lien Secured Debt - Revolver	L+ 450 , 1.00 % Floor	05/31/24	$		2,219	$	( 19	)	$	—		(9)(21)(23)
Dan Dee
Project Comfort Buyer, Inc.	First Lien Secured Debt	L+ 700 , 1.00 % Floor	02/01/25			24,203		23,914			23,402		(9)(26)
	First Lien Secured Debt - Revolver	L+ 700 , 1.00 % Floor	02/01/25			3,462		( 36	)		( 117	)	(8)(9)(21) (23)
	Preferred Equity - Preferred Equity	N/A	N/A		491,405 Shares			492			24		(9)(13)(24)
								24,370			23,309
LashCo
Lash OpCo, LLC	First Lien Secured Debt	L+ 700 , 1.00 % Floor	03/18/26			43,249		42,490			42,666		(9)(29)
	First Lien Secured Debt - Revolver	L+ 700 , 1.00 % Floor	09/18/25			1,612		555			576		(9)(21)(23) (29)
								43,045			43,242
Paladone
Paladone Group Bidco Limited	First Lien Secured Debt	L+ 575 , 1.00 % Floor	11/12/27			7,957		5,954			5,955		(9)(17)(21) (23)(28)
	First Lien Secured Debt - Revolver	L+ 575 , 1.00 % Floor	11/12/27			1,412		352			355		(9)(17)(21) (23)(28)
	First Lien Secured Debt - Revolver	SON+ 575 , 1.00 % Floor	11/12/27	£		353		( 8	)		( 6	)	(8)(9)(17) (21)(23)
Paladone Group Holdings Limited	Common Equity - Common Stock	N/A	N/A		94,151 Shares			94			91		(9)(13)(17) (24)
								6,392			6,395

See notes to financial statements.

Table of Contents

MIDCAP FINANCIAL INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2022

(In thousands, except share data)


Industry/Company	Investment Type	Interest Rate	Maturity Date	Par/Shares (12)			Cost (34)			Fair Value (1)(35)
Sequential Brands Group, Inc.
Gainline Galaxy Holdings LLC	Common Equity - Common Stock	N/A	N/A		10,854 Shares			2,041			1,420		(13)(16)(17) (24)
Sequential Avia Holdings LLC	First Lien Secured Debt	L+ 500 , 1.00 % Floor	11/12/26			1,437		1,436			1,436		(17)(28)
Sequential Brands Group, Inc.	Second Lien Secured Debt	8.75 %	02/07/24			1,293		—			239		(14)(17)
Swisstech IP CO, LLC	First Lien Secured Debt	6 % PIK	11/29/24			272		11			272		(17)
								3,488			3,367
		Total Consumer Goods – Non-durable					$	77,276		$	76,313
Consumer Services
Activ
Activ Software Holdings, LLC	First Lien Secured Debt	L+ 625 , 1.00 % Floor	05/04/27	$		29,716	$	29,254		$	29,419		(9)(30)
	First Lien Secured Debt - Revolver	L+ 650 , 1.00 % Floor	05/04/27			2,407		( 37	)		( 60	)	(8)(9)(21) (23)
								29,217			29,359
Bird
Bird US Opco, LLC	First Lien Secured Debt	SOFR+ 750 , 1.00 % Floor	10/12/24			33,715		30,097			30,648		(9)(23)(31)
Clarus Commerce
Marlin DTC-LS Midco 2, LLC	First Lien Secured Debt	L+ 650 , 1.00 % Floor	07/01/25			21,632		21,366			21,438		(26)(28)
	First Lien Secured Debt - Revolver	L+ 600 , 1.00 % Floor	07/01/25			685		—			( 6	)	(8)(21)(23)
								21,366			21,432
Go Car Wash
Go Car Wash Management Corp.	First Lien Secured Debt	SOFR+ 575 , 1.00 % Floor	12/31/26			26,392		10,876			10,710		(9)(21)(23) (31)
	First Lien Secured Debt - Revolver	SOFR+ 575 , 1.00 % Floor	12/31/26			417		( 2	)		( 7	)	(8)(9)(21) (23)
								10,874			10,703
Lending Point
LendingPoint LLC	First Lien Secured Debt	SOFR+ 1050 , 1.00 % Floor	12/30/25			32,500		29,289			29,416		(9)(21)(23) (32)
	First Lien Secured Debt	SOFR+ 575 , 1.00 % Floor	12/30/25			4,167		3,092			3,098		(9)(21)(23) (32)
	First Lien Secured Debt - Revolver	SOFR+ 575 , 1.00 % Floor	12/30/25			8,333		8,271			8,280		(9)(23)(32)
								40,652			40,794
Renovo
HomeRenew Buyer, Inc.	First Lien Secured Debt	SOFR+ 650 , 1.00 % Floor	11/23/27			18,000		15,075			15,022		(9)(21)(23) (32)
	First Lien Secured Debt - Revolver	SOFR+ 660 , 1.00 % Floor	11/23/27			1,958		192			189		(9)(21)(23) (31)
								15,267			15,211
The Club Company
Eldrickco Limited	First Lien Secured Debt	SON+ 625 , 0.50 % Floor	11/26/25	£		14,970		13,900			12,042		(9)(17)(21) (23)(27)
	First Lien Secured Debt - Revolver	SON+ 625 , 0.50 % Floor	11/26/25	£		356		411			391		(9)(17)(23) (27)
	First Lien Secured Debt - Revolver	SON+ 575 , 0.50 % Floor	05/26/25	£		345		—			( 6	)	(8)(9)(17) (21)(23)
								14,311			12,427

See notes to financial statements.

Table of Contents

MIDCAP FINANCIAL INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2022

(In thousands, except share data)


Industry/Company	Investment Type	Interest Rate	Maturity Date	Par/Shares (12)			Cost (34)			Fair Value (1)(35)
US Auto
U.S. Auto Finance, Inc.	First Lien Secured Debt	SOFR+ 525 , 1.00 % Floor	04/17/24			20,000		5,023			4,400		(9)(21)(23) (31)
	First Lien Secured Debt	SOFR+ 900 , 1.00 % Floor	04/17/25			4,000		3,945			3,998		(9)(31)
	First Lien Secured Debt - Revolver	SOFR+ 600 , 1.00 % Floor	04/17/24			13,333		8,098			7,918		(9)(21)(23) (31)
								17,066			16,316
		Total Consumer Services					$	178,850		$	176,890
Diversified Investment Vehicles, Banking, Finance, Real Estate
Celink
Compu-Link Corporation	First Lien Secured Debt - Revolver	L+ 550 , 1.00 % Floor	06/11/24	$		2,273	$	( 17	)	$	( 32	)	(8)(9)(21) (23)
Peer Advisors, LLC	First Lien Secured Debt	L+ 550 , 1.00 % Floor	06/11/24			17,386		17,247			17,143		(9)(26)
								17,230			17,111
Golden Bear
Golden Bear 2016-R, LLC (4)	Structured Products and Other - Membership Interests	N/A	09/20/42		N/A			16,998			8,748		(3)(17)
Purchasing Power, LLC
Purchasing Power Funding I, LLC	First Lien Secured Debt - Revolver	L+ 650 , 0.00 % Floor	02/24/25			9,113		—			—		(9)(21)(23)
Spectrum Automotive
Shelby 2021 Holdings Corp.	First Lien Secured Debt	L+ 575 , 0.75 % Floor	06/29/28			14,424		12,689			12,647		(9)(21)(23) (28)
	First Lien Secured Debt - Revolver	L+ 575 , 0.75 % Floor	06/29/27			420		( 5	)		( 6	)	(8)(9)(21) (23)
								12,684			12,641
	Total Diversified Investment Vehicles, Banking, Finance, Real Estate						$	46,912		$	38,500

Education
NFA Group
SSCP Spring Bidco Limited	First Lien Secured Debt	SON+ 575 , 0.50 % Floor	07/30/25	£		30,000	$	36,326		$	33,181		(9)(17)(27)
		Total Education					$	36,326		$	33,181
Energy - Electricity
Renew Financial LLC (f/k/a Renewable Funding, LLC)
AIC SPV Holdings II, LLC (4)	Preferred Equity - Preferred Stock	N/A	N/A	$	534,375 Shares		$	534		$	—		(15)(17)(24)
Renew Financial LLC (f/k/a Renewable Funding, LLC) (4)	Preferred Equity - Series E Preferred Stock	N/A	N/A		441,576 Shares			1,902			2,050		(13)(17)(24)
	Preferred Equity - Preferred Stock	N/A	N/A		1,000,000 Shares			1,000			2,000		(13)(17)(24)
	Preferred Equity - Series B Preferred Stock	N/A	N/A		1,505,868 Shares			8,343			—		(13)(17)(24)
	Preferred Equity - Series D Preferred Stock	N/A	N/A		436,689 Shares			5,568			—		(13)(17)(24)
Renew JV LLC (4)	Common Equity - Membership Interests	N/A	N/A		393,242 Shares			393			445		(13)(17)(24)
								17,740			4,495
Solarplicity Group Limited (f/k/a AMP Solar UK)
Solarplicity UK Holdings Limited	First Lien Secured Debt	4.00 %	03/08/23	£		5,562		7,231			1,712		(14)(17)
	Preferred Equity - Preferred Stock	N/A	N/A		4,286 Shares			5,623			—		(2)(13)(17)
	Common Equity - Ordinary Shares	N/A	N/A		2,825 Shares			4			—		(2)(13)(17)
								12,858			1,712
		Total Energy – Electricity					$	30,598		$	6,207

See notes to financial statements.

Table of Contents

MIDCAP FINANCIAL INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2022

(In thousands, except share data)


Industry/Company	Investment Type	Interest Rate	Maturity Date	Par/Shares (12)			Cost (34)		Fair Value (1)(35)
Energy - Oil & Gas
Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.)
Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.) (5)	Second Lien Secured Debt	10.00 % PIK	03/31/23	$		40	$	41	$	40
	Common Equity - Common Stock	N/A	N/A		10,000,000 Shares			30,078		5,796	(13)(24)
								30,119		5,836
Pelican
Pelican Energy, LLC (4)	Common Equity - Membership Interests	N/A	N/A		1,444 Shares			12,271		195	(13)(16)(17) (24)
Spotted Hawk
SHD Oil & Gas, LLC (5)	First Lien Secured Debt	12.00 %	03/31/23			17,838		17,838		18,374
	Common Equity - Series C Units	N/A	N/A		50,952,525 Shares			44,065		1,196	(13)(16)(24)
	Common Equity - Series A Units	N/A	N/A		7,600,000 Shares			1,411		—	(13)(16)(24)
								63,314		19,570
		Total Energy – Oil & Gas					$	105,704	$	25,601
Healthcare & Pharmaceuticals
83bar
83Bar, Inc.	First Lien Secured Debt	SOFR+ 575 , 1.50 % Floor	07/02/26	$		3,646	$	3,631	$	3,582	(9)(31)
Akoya
Akoya Biosciences, Inc.	First Lien Secured Debt	SOFR+ 635 , 1.61 % Floor	10/27/25			15,750		15,752		15,750	(9)(31)
Analogic
Analogic Corporation	First Lien Secured Debt	L+ 525 , 1.00 % Floor	06/22/24			17,759		17,616		17,404	(9)(28)
	First Lien Secured Debt - Revolver	L+ 525 , 1.00 % Floor	06/22/23			1,826		1,505		1,481	(9)(21)(23) (28)
								19,121		18,885
Carbon6
Carbon6 Technologies, Inc.	First Lien Secured Debt	SOFR+ 675 , 1.00 % Floor	08/01/27			12,500		2,488		2,488	(9)(23)(31)
	Preferred Equity - Preferred Equity	N/A	N/A		280,899 Shares			250		250	(9)(13)(24)
								2,738		2,738
Cato Research
LS Clinical Services Holdings, Inc.	First Lien Secured Debt	L+ 675 , 1.00 % Floor	12/16/27			13,027		12,736		12,715	(9)(28)
	First Lien Secured Debt - Revolver	L+ 675 , 1.00 % Floor	12/16/26			1,875		523		518	(9)(21)(23) (28)
								13,259		13,233
Cerus
Cerus Corporation	First Lien Secured Debt	L+ 545 , 1.80 % Floor	03/01/24			16,500		16,474		16,500	(9)(17)(26)
	First Lien Secured Debt - Revolver	L+ 375 , 1.80 % Floor	03/01/24			1,500		29		30	(9)(17)(21) (23)(26)
								16,503		16,530
Compass Health
Roscoe Medical, Inc	First Lien Secured Debt	SOFR+ 625 , 1.00 % Floor	09/30/24			7,563		7,291		7,260	(9)(31)
	First Lien Secured Debt - Revolver	SOFR+ 625 , 1.00 % Floor	09/30/24			1,393		1,341		1,337	(9)(23)(31)
								8,632		8,597
Emmes Corporation
Emmes Blocker, Inc.	Common Equity - Common Stock	N/A	N/A		306 Shares			306		2,426	(9)(13)

See notes to financial statements.

Table of Contents

MIDCAP FINANCIAL INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2022

(In thousands, except share data)


Industry/Company	Investment Type	Interest Rate	Maturity Date	Par/Shares (12)			Cost (34)			Fair Value (1)(35)
EmpiRx
EmpiRx Health LLC	First Lien Secured Debt	L+ 500 , 1.00 % Floor	08/05/27			9,023		8,872			8,932		(9)(29)
	First Lien Secured Debt - Revolver	L+ 550 , 1.00 % Floor	08/05/27			909		( 15	)		( 9	)	(8)(9)(20) (21)(23)
								8,857			8,923
Forge Biologics
Forge Biologics, Inc.	First Lien Secured Debt	SOFR+ 675 , 0.50 % Floor	12/03/26			26,667		13,221			13,282		(8)(9)(23)(31)
	First Lien Secured Debt	SOFR+ 675 , 0.50 % Floor	12/03/26			13,333		( 56	)		( 26	)	(8)(9)(23)
								13,221			13,282
Gateway Services
Gateway US Holdings, Inc.	First Lien Secured Debt	SOFR+ 550 , 0.75 % Floor	09/22/26			7,533		7,469			7,420		(9)(33)
	First Lien Secured Debt	SOFR+ 575 , 0.75 % Floor	09/22/26			2,123		1,713			1,699		(9)(21)(23) (32)(33)
	First Lien Secured Debt - Revolver	SOFR+ 575 , 0.75 % Floor	09/22/26			304		164			162		(9)(21)(23) (32)
								9,346			9,281
Gossamer
GB001, Inc.	First Lien Secured Debt	L+ 700 , 2.00 % Floor	01/01/25			29,419		5,327			5,425		(9)(17)(23) (26)
Health & Safety Institute
HSI HALO Acquisition, Inc.	First Lien Secured Debt	SOFR+ 575 , 1.00 % Floor	08/31/26			16,308		16,102			15,972		(9)(33)
	First Lien Secured Debt	SOFR+ 625 , 1.00 % Floor	08/31/26			2,466		2,410			2,410		(9)(33)
	First Lien Secured Debt - Revolver	SOFR+ 575 , 1.00 % Floor	09/02/25			813		132			122		(9)(21)(23) (33)
	Common Equity - Common Stock	N/A	N/A		500 Shares			500			718		(9)(13)
								19,144			19,222
IMA Group
IMA Group Management Company, LLC	First Lien Secured Debt	L+ 550 , 1.00 % Floor	05/30/24			12,632		10,016			10,027		(21)(23)(28)
	First Lien Secured Debt - Revolver	L+ 550 , 1.00 % Floor	05/30/24			289		202			200		(21)(23)(26)
								10,218			10,227
Kepro
Keystone Acquisition Corp.	First Lien Secured Debt	L+ 575 , 0.75 % Floor	01/26/29			13,961		11,769			12,005		(9)(21)(23) (28)
	First Lien Secured Debt - Revolver	L+ 575 , 0.75 % Floor	01/26/28			978		( 17	)		—		(9)(21)(23)
								11,752			12,005
Kindeva
Kindeva Drug Delivery L.P.	First Lien Secured Debt	L+ 600 , 1.00 % Floor	05/01/26			9,362		9,221			9,131		(9)(28)
	First Lien Secured Debt - Revolver	L+ 600 , 1.00 % Floor	05/01/25			167		141			140		(9)(21)(23) (26)
								9,362			9,271
KureSmart
Clearway Corporation (f/k/a NP/Clearway Holdings, Inc.)	Common Equity - Common Stock	N/A	N/A		133 Shares			133			200		(9)(13)
Kure Pain Holdings, Inc.	First Lien Secured Debt	L+ 500 , 1.00 % Floor	08/27/24			21,547		21,413			21,323		(9)(28)
	First Lien Secured Debt - Revolver	L+ 500 , 1.00 % Floor	08/27/24			2,654		( 20	)		( 28	)	(8)(9)(21) (23)
								21,526			21,495

See notes to financial statements.

Table of Contents

MIDCAP FINANCIAL INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2022

(In thousands, except share data)


Industry/Company	Investment Type	Interest Rate	Maturity Date	Par/Shares (12)			Cost (34)			Fair Value (1)(35)
LucidHealth
Premier Imaging, LLC	First Lien Secured Debt	L+ 575 , 1.00 % Floor	01/02/25			12,439		7,990			7,947		(9)(21)(23) (26)
Mannkind Corporation
Mannkind Corporation	First Lien Secured Debt	SOFR+ 625 , 1.00 % Floor	08/01/25			13,867		13,802			13,875		(9)(31)
	Common Equity - Common Stock	N/A	N/A		334,226 Shares			76			1,033		(9)(10)(13) (17)(24)
								13,878			14,908
Maxor National Pharmacy Services, LLC
Maxor National Pharmacy Services, LLC	First Lien Secured Debt	L+ 550 , 1.00 % Floor	12/06/27			23,238		23,026			23,239		(9)(28)
	First Lien Secured Debt - Revolver	L+ 550 , 1.00 % Floor	12/06/26			1,558		( 38	)		( 8	)	(8)(9)(21) (23)
								22,988			23,231
Medical Guardian
Medical Guardian, LLC	First Lien Secured Debt	L+ 650 , 1.00 % Floor	10/26/26			35,955		30,775			30,611		(9)(21)(23) (26)
	First Lien Secured Debt - Revolver	L+ 650 , 1.00 % Floor	10/26/26			3,810		887			904		(9)(21)(23) (26)
								31,662			31,515
Midwest Vision
Midwest Vision Partners Management, LLC	First Lien Secured Debt	L+ 650 , 1.00 % Floor	01/12/27			24,151		21,355			21,130		(9)(21)(23) (28)
	First Lien Secured Debt - Revolver	L+ 650 , 1.00 % Floor	01/12/27			612		603			596		(9)(23)(28)
								21,958			21,726
Orchard
Orchard Therapeutics PLC	First Lien Secured Debt	L+ 595 , 1.00 % Floor	05/28/26			33,333		10,919			10,833		(9)(17)(23) (26)
Ovation Fertility
FPG Services, LLC	First Lien Secured Debt	L+ 550 , 1.00 % Floor	06/13/25			18,956		14,784			14,937		(9)(21)(23) (26)
	First Lien Secured Debt - Revolver	L+ 550 , 1.00 % Floor	06/13/24			2,105		( 14	)		( 3	)	(8)(9)(21) (23)
								14,770			14,934
Paragon 28
Paragon 28, Inc.	First Lien Secured Debt	L+ 600 , 1.00 % Floor	05/01/26			10,000		7,475			7,450		(9)(23)(26)
	First Lien Secured Debt - Revolver	L+ 300 , 1.00 % Floor	05/01/26			2,000		( 7	)		( 10	)	(8)(9)(21) (23)
								7,468			7,440
Partner Therapeutics, Inc
Partner Therapeutics, Inc	First Lien Secured Debt	SOFR+ 665 , 1.00 % Floor	04/01/26			10,000		9,953			9,950		(9)(31)
	First Lien Secured Debt	SOFR+ 665 , 1.00 % Floor	10/01/22			3,333		3,333			3,333		(9)(31)
	First Lien Secured Debt - Revolver	SOFR+ 375 , 1.00 % Floor	04/01/26			1,000		( 2	)		( 7	)	(8)(9)(21) (23)
	Preferred Equity - Preferred Equity	N/A	N/A		55,556 Shares			333			333		(9)(13)
	Warrants - Warrants				33,333 Shares			135			80		(9)(13)
								13,752			13,689
PHS
PHS Buyer, Inc.	First Lien Secured Debt	L+ 600 , 1.00 % Floor	01/31/27			24,988		24,621			24,239		(9)(26)
	First Lien Secured Debt - Revolver	L+ 600 , 1.00 % Floor	01/31/27			2,000		955			940		(9)(21)(23) (26)
								25,576			25,179

See notes to financial statements.

Table of Contents

MIDCAP FINANCIAL INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2022

(In thousands, except share data)


Industry/Company	Investment Type	Interest Rate	Maturity Date	Par/Shares (12)		Cost (34)			Fair Value (1)(35)
RHA Health Services
Pace Health Companies, LLC	First Lien Secured Debt	L+ 450 , 1.00 % Floor	08/02/24		3,767		3,736			3,739		(9)(28)
	First Lien Secured Debt - Revolver	L+ 450 , 1.00 % Floor	08/02/24		500		—			( 4	)	(8)(9)(20) (21)(23)
							3,736			3,735
Rigel Pharmaceuticals
Rigel Pharmaceuticals, Inc.	First Lien Secured Debt	SOFR+ 565 , 1.50 % Floor	09/01/26		9,000		9,010			8,934		(9)(31)
	First Lien Secured Debt	SOFR+ 565 , 1.50 % Floor	09/01/26		3,000		3,000			2,978		(9)(31)
							12,010			11,912
TELA Bio, Inc.
TELA Bio, Inc.	First Lien Secured Debt	SOFR+ 625 , 1.00 % Floor	05/01/27		16,667		13,270			13,250		(9)(23)(31)
TissueTech
TissueTech, Inc.	First Lien Secured Debt	SOFR+ 575 , 1.00 % Floor	04/01/27		17,500		12,193			12,119		(9)(23)(31)
	First Lien Secured Debt - Revolver	SOFR+ 400 , 1.00 % Floor	04/01/27		1,000		( 5	)		( 7	)	(8)(9)(21) (23)
							12,188			12,112
Treace
Treace Medical Concepts, Inc.	First Lien Secured Debt	SOFR+ 600 , 1.00 % Floor	04/01/27		35,000		14,515			14,235		(9)(17)(23) (31)
	First Lien Secured Debt - Revolver	SOFR+ 400 , 1.00 % Floor	04/01/27		3,000		386			355		(9)(17)(21) (23)(31)
							14,901			14,590
Unchained Labs
Unchained Labs, LLC	First Lien Secured Debt	L+ 550 , 1.00 % Floor	08/09/27		6,739		4,088			4,107		(9)(21)(23) (26)
	First Lien Secured Debt - Revolver	L+ 550 , 1.00 % Floor	08/09/27		726		( 12	)		( 7	)	(8)(9)(21) (23)
							4,076			4,100
WellDyneRx, LLC
WelldyneRX, LLC	First Lien Secured Debt	SOFR+ 675 , 0.75 % Floor	03/09/27		17,987		17,642			17,537		(9)(32)
	First Lien Secured Debt - Revolver	SOFR+ 675 , 0.75 % Floor	03/09/26		1,923		( 33	)		( 48	)	(8)(9)(21) (23)
							17,609			17,489
		Total Healthcare & Pharmaceuticals				$	437,446		$	439,462
High Tech Industries
Acronis AG
ACRONIS AG	First Lien Secured Debt	L+ 585 , 1.00 % Floor	04/01/27	$	21,000	$	20,936		$	20,895		(9)(17)(26)
American Megatrends
AMI US Holdings Inc.	First Lien Secured Debt	L+ 525 , 1.00 % Floor	04/01/25		21,320		21,134			21,107		(9)(26)
	First Lien Secured Debt - Revolver	L+ 525 , 0.00 % Floor	04/01/24		2,907		( 18	)		( 29	)	(8)(9)(21) (23)
							21,116			21,078
Calero Holdings, Inc.
Telesoft Holdings, LLC	First Lien Secured Debt	L+ 575 , 1.00 % Floor	12/16/25		22,159		21,882			21,878		(28)
	First Lien Secured Debt - Revolver	L+ 575 , 1.00 % Floor	12/16/25		2,273		( 28	)		( 29	)	(8)(21)(23)
							21,854			21,849

See notes to financial statements.

Table of Contents

MIDCAP FINANCIAL INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2022

(In thousands, except share data)


Industry/Company	Investment Type	Interest Rate	Maturity Date	Par/Shares (12)			Cost (34)			Fair Value (1)(35)
ChyronHego Corporation
ChyronHego Corporation (5)	First Lien Secured Debt	L+ 350 Cash plus 1.50 % PIK, 1.00 % Floor	12/31/24			85,928		85,492			85,283		(28)
	First Lien Secured Debt	L+ 1025 PIK, 1.00 % Floor	12/31/24			2,698		2,623			2,677		(28)
	First Lien Secured Debt	L+ 650 Cash plus 1.50 % PIK, 1.00 % Floor	12/31/24			2,004		1,884			1,989		(28)
	First Lien Secured Debt - Revolver	L+ 500 , 1.00 % Floor	12/31/24			10,000		8,945			8,880		(21)(23) (28)
	Preferred Equity - Preferred Equity	N/A	N/A		7,800 Shares			6,000			24,054		(13)(24)
								104,944			122,883
Dairy.com
Momentx Corporation	First Lien Secured Debt	SOFR+ 575 , 1.00 % Floor	06/24/27			15,239		14,988			14,874		(9)(32)
	First Lien Secured Debt - Revolver	SOFR+ 575 , 1.00 % Floor	06/24/27			1,257		( 20	)		( 30	)	(8)(9)(21) (23)
								14,968			14,844
Digital.ai
Digital.ai Software Holdings, Inc.	First Lien Secured Debt	L+ 700 , 1.00 % Floor	02/10/27			22,242		21,751			21,797		(9)(28)
	First Lien Secured Debt - Revolver	L+ 650 , 1.00 % Floor	02/10/27			2,419		512			468		(9)(21)(23) (28)
								22,263			22,265
GoHealth
Norvax, LLC	First Lien Secured Debt - Revolver	L+ 650 , 1.00 % Floor	09/13/24			3,182		2,435			2,466		(9)(21)(23) (26)(28)
International Cruise & Excursion Gallery, Inc.
International Cruise & Excursion Gallery, Inc.	First Lien Secured Debt	SOFR+ 535 , 1.00 % Floor	06/06/25			14,363		14,249			13,689		(31)
Modern Campus
Destiny Solutions U.S., Inc.	First Lien Secured Debt	L+ 575 , 1.00 % Floor	06/08/26			25,573		25,077			25,062		(26)
RMCF IV CIV XXXV, L.P.	Common Equity - Common Stock	N/A	N/A		482 Shares			1,000			1,217		(13)
								26,077			26,279
MYCOM
Magnate Holding Corp.	First Lien Secured Debt	L+ 625 , 0.50 % Floor	12/16/24			19,081		18,987			19,028		(9)(17)(28)
	First Lien Secured Debt - Revolver	L+ 625 , 0.50 % Floor	12/14/23			3,150		3,136			3,143		(9)(17)(23) (28)
								22,123			22,171
New Era Technology, Inc.
New Era Technology, Inc.	First Lien Secured Debt	L+ 625 , 1.00 % Floor	10/31/26			33,033		30,981			30,762		(9)(21)(23) (28)
	First Lien Secured Debt - Revolver	L+ 625 , 1.00 % Floor	10/30/26			1,732		751			740		(9)(21)(23) (28)
								31,732			31,502
Pro Vigil
Pro-Vigil Holding Company, LLC	First Lien Secured Debt	SOFR+ 850 , 1.00 % Floor	01/11/25			15,176		13,469			13,556		(9)(21)(23) (32)
Schlesinger Group
Schlesinger Global, LLC	First Lien Secured Debt	SOFR+ 600 Cash plus 0.50 % PIK, 1.00 % Floor	07/12/25			10,309		10,175			10,118		(9)(32)
	First Lien Secured Debt	SOFR+ 775 , 1.00 % Floor	07/12/25			956		945			955		(9)(32)
								11,120			11,073

See notes to financial statements.

Table of Contents

MIDCAP FINANCIAL INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2022

(In thousands, except share data)


Industry/Company	Investment Type	Interest Rate	Maturity Date	Par/Shares (12)		Cost (34)			Fair Value (1)(35)
Simeio
Simeio Group Holdings, Inc.	First Lien Secured Debt	L+ 550 , 1.00 % Floor	02/02/26		8,178		8,107			7,933		(9)(26)
	First Lien Secured Debt - Revolver	L+ 525 , 1.00 % Floor	02/02/26		1,731		( 14	)		( 52	)	(8)(9)(21) (23)
							8,093			7,881
Sirsi Corporation
Sirsi Corporation	First Lien Secured Debt	L+ 450 , 1.00 % Floor	03/15/24		5,156		5,132			5,131		(9)(26)
	First Lien Secured Debt - Revolver	L+ 450 , 1.00 % Floor	03/15/24		429		( 2	)		( 2	)	(8)(9)(21) (23)
							5,130			5,129
Springbrook
Springbrook Holding Company, LLC	First Lien Secured Debt	L+ 550 , 1.00 % Floor	12/23/26		15,849		15,659			15,646		(26)
	First Lien Secured Debt - Revolver	L+ 575 , 1.00 % Floor	12/23/26		1,463		( 16	)		( 19	)	(8)(21)(23)
							15,643			15,627
Tax Slayer
MEP-TS Midco, LLC	First Lien Secured Debt	L+ 600 , 1.00 % Floor	12/31/26		13,311		13,090			12,845		(9)(29)
	First Lien Secured Debt - Revolver	L+ 600 , 1.00 % Floor	12/31/26		1,452		—			( 51	)	(8)(9)(21) (23)
							13,090			12,794
UpStack
Upstack Holdco Inc.	First Lien Secured Debt	L+ 550 , 1.00 % Floor	08/20/27		31,772		27,495			27,457		(9)(21)(23) (29)
	First Lien Secured Debt - Revolver	L+ 550 , 1.00 % Floor	08/20/27		3,000		( 68	)		( 67	)	(8)(9)(20) (21)(23)
							27,427			27,390
		Total High Tech Industries				$	396,669		$	413,371
Hotel, Gaming, Leisure, Restaurants
Guernsey
Guernsey Holdings SDI LA LLC	First Lien Secured Debt	6.95 %	11/18/26	$	9,620	$	9,538		$	9,572		(9)
	First Lien Secured Debt	L+ 595 , 1.00 % Floor	11/18/26		1,167		—			( 76	)	(8)(9)(23)
							9,538			9,496
Taco Cabana
YTC Enterprises, LLC	First Lien Secured Debt	L+ 625 , 1.00 % Floor	08/16/26		9,879		9,779			9,780		(9)(26)
		Total Hotel, Gaming, Leisure, Restaurants				$	19,317		$	19,276
Insurance
High Street Insurance
High Street Buyer, Inc.	First Lien Secured Debt	L+ 600 , 0.75 % Floor	04/14/28	$	29,961	$	29,492		$	29,287		(9)(28)
	First Lien Secured Debt - Revolver	L+ 600 , 0.75 % Floor	04/16/27		2,203		( 34	)		( 50	)	(8)(9)(21) (23)
							29,458			29,237
PGM Holdings Corporation
Turbo Buyer, Inc.	First Lien Secured Debt	L+ 600 , 1.00 % Floor	12/02/25		19,132		18,868			18,558		(9)(28)(29)
	First Lien Secured Debt - Revolver	L+ 575 , 1.00 % Floor	12/02/25		923		( 12	)		( 28	)	(8)(9)(21) (23)
							18,856			18,530
Relation Insurance
AQ Sunshine, Inc.	First Lien Secured Debt	L+ 625 , 1.00 % Floor	04/15/25		34,683		33,873			34,157		(9)(21)(23) (28)(29)
	First Lien Secured Debt - Revolver	SOFR+ 625 , 1.00 % Floor	04/15/24		1,785		743			751		(9)(20)(21) (23)(31)
							34,616			34,908
		Total Insurance				$	82,930		$	82,675

See notes to financial statements.

Table of Contents

MIDCAP FINANCIAL INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2022

(In thousands, except share data)


Industry/Company	Investment Type	Interest Rate	Maturity Date	Par/Shares (12)			Cost (34)			Fair Value (1)(35)
Manufacturing, Capital Equipment
AVAD, LLC
Surf Opco, LLC	First Lien Secured Debt - Revolver	L+ 400 , 1.00 % Floor	03/17/26	$		16,667	$	13,534		$	13,360		(9)(20)(21) (23)(26)
	Preferred Equity - Class P-1 Preferred	N/A	N/A		33,333 Shares			3,333			6,667		(9)(13)(16)
	Preferred Equity - Class P-2 Preferred	N/A	N/A		85,164 Shares			8,517			2,959		(9)(13)(16)
	Common Equity - Class A-1 Common	N/A	N/A		3,333 Shares			—			50		(9)(13)(16)
								25,384			23,036
Kauffman
Kauffman Holdco, LLC	Common Equity - Common Stock	N/A	N/A		250,000 Shares			249			132		(9)(13)
Kauffman Intermediate, LLC	First Lien Secured Debt	L+ 600 , 1.00 % Floor	05/08/25			16,193		16,050			15,724		(9)(30)
	First Lien Secured Debt - Revolver	L+ 600 , 1.00 % Floor	05/08/25			1,243		214			197		(9)(21)(23) (28)
								16,513			16,053
MedPlast Holdings Inc.
Viant Medical Holdings, Inc. (fka MedPlast Holdings, Inc.)	Second Lien Secured Debt	L+ 775 , 0.00 % Floor	07/02/26			8,000		7,963			7,533		(26)
		Total Manufacturing, Capital Equipment					$	49,860		$	46,622
Media - Diversified & Production
New Wave Entertainment
NW Entertainment, Inc.	First Lien Secured Debt	L+ 750 Cash plus 2.00 % PIK, 1.00 % Floor	08/16/24	$		29,764	$	29,538		$	29,764		(9)(28)
	First Lien Secured Debt - Revolver	L+ 750 , 1.00 % Floor	08/16/24			3,078		3,054			3,078		(9)(23)(28)
								32,592			32,842
Sonar Entertainment
Sonar Entertainment, Inc.	First Lien Secured Debt	L+ 760 , 1.25 % Floor	11/15/21			1,798		1,797			1,498		(9)(11)(26)
	First Lien Secured Debt - Revolver	L+ 760 , 1.25 % Floor	11/15/21			1,604		1,252			1,026		(9)(11)(21) (23)(26)
								3,049			2,524
		Total Media – Diversified & Production					$	35,641		$	35,366
Retail
IPS
SI Holdings, Inc.	First Lien Secured Debt	L+ 600 , 1.00 % Floor	07/25/25	$		30,847	$	30,538		$	30,524		(9)(26)
	First Lien Secured Debt - Revolver	L+ 600 , 1.00 % Floor	07/25/24			3,413		743			740		(9)(21)(23) (26)
		Total Retail					$	31,281		$	31,264
Telecommunications
Securus Technologies Holdings, Inc.
Securus Technologies Holdings, Inc.	Second Lien Secured Debt	L+ 825 , 1.00 % Floor	11/01/25	$		7,128	$	7,095		$	6,629		(28)
		Total Telecommunications					$	7,095		$	6,629
Transportation - Cargo, Distribution
Beacon Mobility
Beacon Mobility Corp.	First Lien Secured Debt	L+ 550 , 1.00 % Floor	05/22/24	$		28,179	$	20,350		$	20,421		(9)(21)(23) (26)
	First Lien Secured Debt - Revolver	4.00 %	02/04/23			50,000		—			—		(9)(20)(22) (23)
	First Lien Secured Debt - Revolver	L+ 550 , 1.00 % Floor	05/22/24			4,145		( 60	)		( 43	)	(8)(9)(20) (21)(23)
								20,290			20,378

See notes to financial statements.

Table of Contents

MIDCAP FINANCIAL INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2022

(In thousands, except share data)


Industry/Company	Investment Type	Interest Rate	Maturity Date	Par/Shares (12)			Cost (34)			Fair Value (1)(35)
Dynamic Product Tankers (Prime), LLC
Dynamic Product Tankers, LLC (5)	Common Equity - Class A Units	N/A	N/A		N/A			41,369			—		(13)(17)(19) (24)
Heniff and Superior
Heniff Holdco, LLC	First Lien Secured Debt	L+ 575 , 1.00 % Floor	12/03/26			30,298		29,898			29,843		(9)(26)
	First Lien Secured Debt - Revolver	L+ 575 , 1.00 % Floor	12/03/24			3,925		1,404			1,400		(9)(21)(23) (26)
								31,302			31,243
MSEA Tankers LLC
MSEA Tankers LLC (5)	Common Equity - Class A Units	N/A	N/A		N/A			19,397			4,444		(17)(18)(24)
		Total Transportation – Cargo, Distribution					$	112,358		$	56,065
Utilities - Electric
Congruex
Congruex Group LLC	First Lien Secured Debt	SOFR+ 575 , 0.75 % Floor	05/03/29	$		14,963	$	14,606		$	14,588		(9)(32)
		Total Utilities – Electric					$	14,606		$	14,588
Wholesale
Banner Solutions
Banner Buyer, LLC	First Lien Secured Debt	L+ 575 , 1.00 % Floor	10/31/25	$		17,672	$	15,056		$	15,001		(9)(21)(23) (26)
	First Lien Secured Debt - Revolver	L+ 575 , 1.00 % Floor	10/31/25			1,935		884			879		(9)(21)(23) (26)
Banner Parent Holdings, Inc.	Common Equity - Common Stock	N/A	N/A		6,125 Shares			613			530		(9)(13)
								16,553			16,410
Thomas Scientific
BSP-TS, LP	Common Equity - Common Stock	N/A	N/A		185 Shares			185			187		(9)(13)(24)
Thomas Scientific, LLC	First Lien Secured Debt	L+ 600 , 1.00 % Floor	12/14/27			31,652		31,107			31,333		(9)(28)
	First Lien Secured Debt - Revolver	L+ 550 , 1.00 % Floor	12/14/27			2,963		( 52	)		( 30	)	(8)(9)(21) (23)
								31,240			31,490
		Total Wholesale					$	47,793		$	47,900
Total Investments							$	2,718,826		$	2,463,545		(6)(7)

(1)

Fair value is determined in good faith subjct to the oversight of the Board of Directors of the Company (See Note 2 to the financial statements).

(2)

Preferred and ordinary shares in Solarplicity UK Holdings Limited are GBP denominated equity investments. Common shares in 1244311 B.C. Ltd. are CAD denominated equity investments.

(3)

Denotes investments in which the Company owns greater than 25 % of the equity, where the governing documents of each entity preclude the Company from exercising a controlling influence over the management or policies of such entity. The Company does not have the right to elect or appoint more than 25 % of the directors or another party has the right to elect or appoint more directors than the Company and has the right to appoint certain members of senior management. Therefore, the Company has determined that these entities are not controlled affiliates. As of September 30, 2022, we had a 100 % equity ownership interest in Golden Bear 2016-R, LLC, a collateralized loan obligation.

See notes to financial statements.

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MIDCAP FINANCIAL INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2022

(In thousands, except share data)

(4)

Denotes investments in which we are an “Affiliated Person,” as defined in the 1940 Act, due to holding the power to vote or owning 5 % or more of the outstanding voting securities of the investment but not controlling the company. Fair value as of March 31, 2022 and September 30, 2022 along with transactions during the six months ended September 30, 2022 in these affiliated investments are as follows:


Name of Issuer	Fair Value at March 31, 2022			Gross Additions ●			Gross Reductions ■				Net Change in Unrealized Gains (Losses)				Fair Value at September 30, 2022			Net Realized Gains (Losses)			Interest/ Dividend/ Other Income
1244311 B.C. Ltd., Common Stock	$	976	$		—	$		—		$		( 557	)	$		419	$		—	$		—
1244311 B.C. Ltd., Term Loan		3,800			32			—				( 21	)			3,811			—			135
AIC SPV Holdings II, LLC, Preferred Equity		355			—			—				( 355	)			—			—			52
Carbonfree Chemicals Holdings LLC, Common Stock		42,117			25,075			—				( 26,213	)			40,979			—			—
Carbonfree Chemicals SA LLC, Class B Units		—			—			( 25,074	)			25,074				—			—			—
Golden Bear 2016-R, LLC, Membership Interests		10,038			—			—				( 1,290	)			8,748			—			480
GSC Technologies Inc., Term Loan		192			5			( 15	)			—				182			—			9
Pelican Energy, LLC, Common Stock		630			—			( 792	)			357				195			—			—
Renew Financial LLC (f/k/a Renewable Funding, LLC), Series B Preferred Stock		—			—			—				—				—			—			—
Renew Financial LLC (f/k/a Renewable Funding, LLC), Series D Preferred Stock		—			—			—				—				—			—			—
Renew Financial LLC (f/k/a Renewable Funding, LLC), Series E Preferred Stock		4,988			—			—				( 2,938	)			2,050			—			—
Renew Financial LLC (f/k/a Renewable Funding, LLC), Preferred Equity		—			1,000			—				1,000				2,000
Renew JV LLC, Membership Interests		613			—			( 73	)			( 95	)			445			—			—
	$	63,709	$		26,112	$		( 25,954	)	$		( 5,038	)	$		58,829	$		—	$		676

____________________

● Gross additions includes increases in the basis of investments resulting from new portfolio investments, payment-in-kind interest or dividends, the accretion of discounts, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio company into this category from a different category.

■ Gross reductions include decreases in the basis of investments resulting from principal collections related to investment repayments or sales, the amortization of premiums, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio company out of this category into a different category.

See notes to financial statements.

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MIDCAP FINANCIAL INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2022

(In thousands, except share data)

(5)

Denotes investments in which we are deemed to exercise a controlling influence over the management or policies of a company, as defined in the 1940 Act, due to beneficially owning, either directly or through one or more controlled companies, more than 25 % of the outstanding voting securities of the investment. Fair value as of March 31, 2022 and September 30, 2022 along with transactions during the six months ended September 30, 2022 in these controlled investments are as follows:


Name of Issuer	Fair Value at March 31, 2022			Gross Additions ●			Gross Reductions ■				Net Change in Unrealized Gains (Losses)				Fair Value at September 30, 2022			Net Realized Gains (Losses)			Interest/ Dividend/ Other Income
Majority Owned Company
ChyronHego Corporation, Preferred Equity	$	15,553	$		—	$		—		$		8,501		$		24,054	$		—	$		—
ChyronHego Corporation, Revolver		7,076			1,789			—				15				8,880			—			701
ChyronHego Corporation, Term Loan		86,969			3,357			( 27	)			( 350	)			89,949			—			3,768
Dynamic Product Tankers, LLC, Common Stock		3,110			—			( 3,063	)			( 47	)			—			—			—
Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.), Common Stock		—			—			—				5,796				5,796			—			—
Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.), Term Loan		6,204			203			( 7,620	)			1,253				40			—			1,067
Merx Aviation Finance, LLC, Membership Interests		23,509			110,700			—				( 18,600	)			115,609			—			—
Merx Aviation Finance, LLC, Revolver		275,000			—			( 125,000	)			—				150,000			—			12,815
MSEA Tankers LLC, Class A Units		34,274			—			( 30,862	)			1,032				4,444			—			—
Controlled Company
SHD Oil & Gas, LLC, Series C Units		4,652			—			—				( 3,456	)			1,196			—			—
SHD Oil & Gas, LLC, Series A Units		—			—			—				—				—			—			—
SHD Oil & Gas, LLC, Tranche C Note		25,470			—			( 6,890	)			( 206	)			18,374			—			1,713
	$	481,817	$		116,049	$		( 173,462	)	$		( 6,062	)	$		418,342	$		—	$		20,064

____________________

As of September 30, 2022, the Company had a 87 %, 85 %, 96 %, 100 %, 98 % and 38 % equity ownership interest in ChyronHego Corporation; Dynamic Product Tankers, LLC; Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.); Merx Aviation Finance, LLC; MSEA Tankers, LLC; and SHD Oil & Gas, LLC ( f/k/a Spotted Hawk Development LLC), respectively.

(6)

Aggregate gross unrealized gain and loss for federal income tax purposes is $ 58,130 and $ 336,156 , respectively. Net unrealized loss is $ 278,026 based on a tax cost of $ 2,801,852 .

(7)

Substantially all securities are pledged as collateral to our multi-currency revolving credit facility (the “Senior Secured Facility” as defined in Note 6 to the financial statements). As such, these securities are not available as collateral to our general creditors.

(8)

The negative fair value is the result of the commitment being valued below par.

See notes to financial statements.

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MIDCAP FINANCIAL INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2022

(In thousands, except share data)

(9)

These are co-investments made with the Company’s affiliates in accordance with the terms of the exemptive order the Company received from the Securities and Exchange Commission (the “SEC”) permitting us to do so. (See Note 3 to the financial statements for discussion of the exemptive order from the SEC.)

(10)

Other than the investments noted by this footnote, the fair value of the Company’s investments is determined using unobservable inputs that are significant to the overall fair value measurement. See Note 2 to the financial statements for more information regarding ASC 820, Fair Value Measurements (“ASC 820”).

(11)

The maturity date for this investment was November 15, 2021 . The investment is expected to be paid down in a series of payments subsequent to the stated maturity date.

(12)

Par amount is denominated in USD unless otherwise noted, Euro (“€”), British Pound (“£”), Canadian Dollar (“C$”), Australian Dollar (“A$”).

(13)

Non-income producing security.

(14)

Non-accrual status (See Note 2 to the financial statements).

(15)

The underlying investments of AIC SPV Holdings II, LLC is a securitization in which the Company owns preferred shares representing 14.25 % economic interest.

(16)

AIC Spotted Hawk Holdings, LLC, AIC SHD Holdings, LLC, AIC Pelican Holdings, LLC, AIC SB Holdings LLC and AP Surf Investments, LLC are wholly-owned special purpose vehicles which only hold investments of the underlying portfolio companies and have no other significant assets or liabilities. AIC Spotted Hawk Holdings, LLC holds equity and debt investments in SHD Oil & Gas, LLC. AIC SHD Holdings LLC holds equity investments in SHD Oil & Gas, LLC. and equity investments in both Carbonfree Chemicals Holdings, LLC and Carbonfree Chemicals SA, LLC. AIC Pelican Holdings, LLC holds an equity investment in Pelican Energy, LLC. AP Surf Investments, LLC holds equity investments in Surf Opco, LLC. AIC SB Holdings LLC holds equity investments in Gainline Galaxy Holdngs LLC.

(17)

Investments that the Company has determined are not “qualifying assets” under Section 55(a) of the 1940 Act. Under the 1940 Act, we may not acquire any non-qualifying asset unless, at the time such acquisition is made, qualifying assets represent at least 70 % of our total assets. The status of these assets under the 1940 Act is subject to change. The Company monitors the status of these assets on an ongoing basis. As of September 30, 2022, non-qualifying assets represented approximately 6.70 % of the total assets of the Company.

(18)

As of September 30, 2022, MSEA Tankers, LLC had various classes of limited liability interests outstanding of which the Company holds Class A-1 and Class A-2 units which are identical except that Class A-1 unit is voting and Class A-2 unit is non-voting. The units entitle the Company to appoint two out of three managers to the board of managers.

(19)

As of September 30, 2022, Dynamic Product Tankers, LLC had various classes of limited liability interests outstanding of which the Company holds Class A-1 and Class A-3 units which are identical except that Class A-1 unit is voting and Class A-3 unit is non-voting. The units entitle the Company to appoint three out of five managers to the board of managers.

(20)

As of September 30, 2022, there were letters of credit issued and outstanding through the Company under this first lien senior secured revolving loan.

(21)

The undrawn portion of these committed revolvers and delayed draw term loans includes a commitment and unused fee rate.

(22)

A letter of credit associated with this investment has been issued through the Company’s Senior Secured Facility. In the event of draw of funds the related funding would be pro-rated for all existing lenders in the investment.

See notes to financial statements.

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MIDCAP FINANCIAL INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2022

(In thousands, except share data)

(23)

As of September 30, 2022, the Company had the following commitments to fund various revolving and delayed draw senior secured and subordinated loans, including commitments to issue letters of credit through a financial intermediary on behalf of certain portfolio companies. Such commitments are subject to the satisfaction of certain conditions set forth in the documents governing these loans and letters of credit and there can be no assurance that such conditions will be satisfied. See Note 8 to the financial statements for further information on revolving and delayed draw loan commitments, including commitments to issue letters of credit, related to certain portfolio companies.


Name of Issuer	Total Commitment			Drawn Commitment			Letters of Credit **			Undrawn Commitment
A&V Holdings Midco, LLC	$	1,505	$		452	$		—	$		1,053
AMI US Holdings Inc.		2,907			—			—			2,907
AQ Sunshine, Inc.		2,144			757			23			1,364
Activ Software Holdings, LLC		2,407			—			—			2,407
Alpinex Opco, LLC		1,489			595			—			894
Analogic Corporation		1,826			1,513			—			313
Banner Buyer, LLC		4,387			903			—			3,484
Beacon Mobility Corp.		61,608			—			31,577			30,031
Berner Food & Beverage, LLC		2,881			1,585			—			1,296
Bird US Opco, LLC		3,013			—			—			3,013
Carbon6 Technologies, Inc.		10,000			—			—			10,000
Cerus Corporation		1,500			30			—			1,470
ChyronHego Corporation		10,000			8,956			—			1,044
Club Car Wash Operating, LLC		4,696			—			—			4,696
Compu-Link Corporation		2,273			—			—			2,273
Digital.ai Software Holdings, Inc.		2,419			565			—			1,854
EHL Merger Sub, LLC		4,155			—			—			4,155
Eldrickco Limited*		5,177			397			—			4,780
EmpiRx Health LLC		909			—			227			682
Erickson Inc		32,250			24,391			843			7,016
FPG Services, LLC		6,093			—			—			6,093
Forge Biologics, Inc.		13,333			—			—			13,333
GB001, Inc.		24,000			—			—			24,000
Gabriel Partners, LLC		665			133			—			532
Gateway US Holdings, Inc.		696			167			—			529
Go Car Wash Management Corp.		15,637			—			—			15,637
Graffiti Buyer, Inc.		3,920			632			—			3,288
Guernsey Holdings SDI LA LLC		1,167			—			—			1,167
Gutter Buyer, Inc.		2,727			1,364			143			1,220
HRO (Hero Digital) Holdings, LLC		10,213			1,702			31			8,480
HSI HALO Acquisition, Inc.		813			135			—			678
Heniff Holdco, LLC		3,925			1,439			—			2,486
High Street Buyer, Inc.		2,203			—			—			2,203
Hive Intermediate, LLC		2,326			—			—			2,326
HomeRenew Buyer, Inc.		4,576			228			—			4,348
IMA Group Management Company, LLC		2,799			202			—			2,597
JF Acquisition, LLC		1,569			753			—			816
Jacent Strategic Merchandising		3,500			3,494			—			6
KDC US Holdings		6,020			810			33			5,177
KL Charlie Acquisition Company		9,085			—			—			9,085
Kauffman Intermediate, LLC		1,243			233			—			1,010
Keystone Acquisition Corp.		2,935			—			—			2,935
Kindeva Drug Delivery L.P.		167			143			—			24
Kure Pain Holdings, Inc.		2,654			—			—			2,654
LS Clinical Services Holdings, Inc.		1,875			563			—			1,312
Lash OpCo, LLC		1,612			599			—			1,013
LendingPoint LLC		12,235			8,333			—			3,902
Lifelong Learner Holdings, LLC		2,985			2,982			—			3
Liqui-Box Holdings, Inc.		3,560			2,824			—			736
MEP-TS Midco, LLC		1,452			—			—			1,452
Magnate Holding Corp.		3,150			3,150			—			—
Marlin DTC-LS Midco 2, LLC		685			—			—			685
Maxor National Pharmacy Services, LLC		1,558			—			—			1,558
Medical Guardian, LLC		8,571			933			—			7,638

See notes to financial statements.

Table of Contents

MIDCAP FINANCIAL INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2022

(In thousands, except share data)


Name of Issuer	Total Commitment			Drawn Commitment			Letters of Credit **			Undrawn Commitment
Merx Aviation Finance, LLC		154,677			150,000			4,677			—
Midwest Vision Partners Management, LLC		3,029			612			—			2,417
Momentx Corporation		1,257			—			—			1,257
NW Entertainment, Inc.		3,078			3,078			—			—
Naviga Inc. (fka Newscycle Solutions, Inc.)		500			444			—			56
New Era Technology, Inc.		3,259			779			—			2,480
Norvax, LLC		3,182			2,466			—			716
Orchard Therapeutics PLC		22,333			—			—			22,333
PHS Buyer, Inc.		2,000			1,000			—			1,000
Pace Health Companies, LLC		500			—			105			395
Paladone Group Bidco Limited		3,295			377			—			2,918
Paladone Group Bidco Limited*		394			—			—			394
Paragon 28, Inc.		4,500			—			—			4,500
Partner Therapeutics, Inc		1,000			—			—			1,000
Precision Refrigeration & Air Conditioning LLC		1,705			—			—			1,705
Premier Imaging, LLC		4,305			—			—			4,305
Pro-Vigil Holding Company, LLC		1,467			—			—			1,467
Project Comfort Buyer, Inc.		3,462			—			—			3,462
Protein For Pets Opco, LLC		2,219			—			—			2,219
Purchasing Power Funding I, LLC		9,113			—			—			9,113
Roscoe Medical, Inc		1,393			1,393			—			—
SI Holdings, Inc.		3,413			768			—			2,645
Shelby 2021 Holdings Corp.		1,980			—			—			1,980
Simeio Group Holdings, Inc.		1,731			—			—			1,731
Sirsi Corporation		429			—			—			429
Sonar Entertainment, Inc.		1,604			1,294			—			310
Springbrook Holding Company, LLC		1,463			—			—			1,463
Surf Opco, LLC		16,667			13,534			1,000			2,133
TELA Bio, Inc.		3,333			—			—			3,333
TGG TS Acquisition Company		1,750			—			—			1,750
THLP CO. LLC		4,494			1,931			79			2,484
Telesoft Holdings, LLC		2,273			—			—			2,273
Thomas Scientific, LLC		2,963			—			—			2,963
TissueTech, Inc.		6,250			—			—			6,250
Treace Medical Concepts, Inc.		23,417			400			—			23,017
Trench Plate Rental Co.		1,818			591			106			1,121
Truck-Lite Co., LLC		3,052			218			99			2,735
Turbo Buyer, Inc.		923			—			—			923
U.S. Auto Finance, Inc.		28,334			8,093			—			20,241
USLS Acquisition, Inc.		1,608			563			75			970
Ultimate Baked Goods Midco LLC		3,243			2,270			365			608
Unchained Labs, LLC		3,290			—			—			3,290
Upstack Holdco Inc.		6,600			—			110			6,490
WelldyneRX, LLC		1,923			—			—			1,923
Westfall Technik, Inc.		2,039			2,039			—			—
Wildcat BuyerCo, Inc.		725			—			30			695
Total Commitments	$	669,485	$		262,813	$		39,523	$		367,149

____________________

* These investments are in a foreign currency and the total commitment has been converted to USD using the September 30, 2022 exchange rate.

** For all letters of credit issued and outstanding on September 30, 2022, $ 1,473 will expire in 2022 , $ 37,966 will expire in 2023 and $ 84 will expire in 2024 .

See notes to financial statements.

Table of Contents

MIDCAP FINANCIAL INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2022

(In thousands, except share data)

(24)

Securities that are exempt from registration under the Securities Act of 1933 (the “Securities Act”), and may be deemed to be “restricted securities” under the Securities Act. As of September 30, 2022, the aggregate fair value of these securities is $ 200,756 or 20 % of the Company's net assets. The acquisition dates of the restricted securities are as follows:


Issuer	Investment Type	Acquisition Date
1244311 B.C. Ltd.	Common Equity - Common Stock	9/30/2020
AIC SPV Holdings II, LLC	Preferred Equity - Preferred Stock	6/1/2017
BSP-TS, LP	Common Equity - Common Stock	12/14/2021
Carbon6 Technologies, Inc.	Preferred Equity - Preferred Equity	8/22/2022
Carbonfree Chemicals Holdings LLC	Common Equity - Common Equity / Interest	11/19/2019
ChyronHego Corporation	Preferred Equity - Preferred Equity	12/29/2020
Dynamic Product Tankers, LLC	Common Equity - Class A Units	4/8/2015
Gainline Galaxy Holdings LLC	Common Equity - Common Stock	11/12/2021
Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.)	Common Equity - Common Stock	3/29/2016
HRO Holdings I LP	Common Equity - Common Stock	11/18/2021
Mannkind Corporation	Common Equity - Common Stock	10/26/2021
Merx Aviation Finance, LLC	Common Equity - Membership Interests	7/1/2021
MSEA Tankers LLC	Common Equity - Class A Units	12/12/2014
Owl Parent Holdings, LLC	Common Equity - Common Stock	2/4/2022
Paladone Group Holdings Limited	Common Equity - Common Stock	11/12/2021
Pelican Energy, LLC	Common Equity - Membership Interests	3/28/2012
Project Comfort Buyer, Inc.	Preferred Equity - Preferred Equity	5/16/2022
Renew Financial LLC (f/k/a Renewable Funding, LLC)	Preferred Equity - Series E Preferred Stock	12/23/2020
Renew Financial LLC (f/k/a Renewable Funding, LLC)	Preferred Equity - Series D Preferred Stock	10/1/2015
Renew Financial LLC (f/k/a Renewable Funding, LLC)	Preferred Equity - Series B Preferred Stock	4/9/2014
Renew Financial LLC (f/k/a Renewable Funding, LLC)	Preferred Equity - Preferred Equity	7/12/2022
Renew JV LLC	Common Equity - Membership Interests	9/5/2019
SHD Oil & Gas, LLC	Common Equity - Series C Units	12/27/2012
SHD Oil & Gas, LLC	Common Equity - Series A Units	11/18/2016
SMC IR Holdings, LLC	Common Equity - Common Stock	3/8/2022
Trench Safety Solutions Holdings, LLC	Common Equity - Series A-1 Units	4/29/2022
Wm. Bolthouse Farms, Inc.	Common Equity - Equity Interests	7/28/2022

(25)

The interest rate on these loans is subject to Prime, which as of September 30, 2022 was 6.25 %

(26)

The interest rate on these loans is subject to 1 month LIBOR, which as of September 30, 2022 was 3.14 %

(27)

The interest rate on these loans is subject to SONIA, which as of September 30, 2022 was 2.19 %

(28)

The interest rate on these loans is subject to 3 months LIBOR, which as of September 30, 2022 was 3.75 %

(29)

The interest rate on these loans is subject to 6 months LIBOR, which as of September 30, 2022 was 4.23 %

(30)

The interest rate on these loans is subject to 12 months LIBOR, which as of September 30, 2022 was 4.78 %

(31)

The interest rate on these loans is subject to 1 month SOFR, which as of September 30, 2022 was 3.04 %

(32)

The interest rate on these loans is subject to 3 months SOFR, which as of September 30, 2022 was 3.59 %

(33)

The interest rate on these loans is subject to 6 months SOFR, which as of September 30, 2022 was 3.99 %

See notes to financial statements.

Table of Contents

MIDCAP FINANCIAL INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2022

(In thousands, except share data)

(34)

The following shows the composition of the Company’s portfolio at cost by control designation, investment type and industry as of September 30, 2022:


Industry	First Lien - Secured Debt		Second Lien - Secured Debt		Unsecured Debt		Structured Products and Other		Preferred Equity		Common Equity/Interests		Warrants		Total
Non-Controlled / Non-Affiliated Investments
Advertising, Printing & Publishing	$	43,828	$	—	$	—	$	—	$	—	$	432	$	—	$	44,260
Aerospace & Defense		24,354		—		—		—		—		—		—		24,354
Automotive		59,915		23,621		—		—		—		350		—		83,886
Aviation and Consumer Transport		17,147		—		—		—		—		—		—		17,147
Beverage, Food & Tobacco		103,684		—		—		—		448		1,409		—		105,541
Business Services		208,368		67,425		—		—		89		1,940		—		277,822
Chemicals, Plastics & Rubber		23,212		—		—		—		—		—		—		23,212
Construction & Building		30,121		—		—		—		—		500		—		30,621
Consumer Goods – Durable		20,699		—		—		—		—		107		—		20,806
Consumer Goods – Non-durable		74,649		—		—		—		492		2,135		—		77,276
Consumer Services		178,850		—		—		—		—		—		—		178,850
Diversified Investment Vehicles, Banking, Finance, Real Estate		29,914		—		—		—		—		—		—		29,914
Education		36,326		—		—		—		—		—		—		36,326
Energy – Electricity		7,231		—		—		—		5,623		4		—		12,858
Healthcare & Pharmaceuticals		435,713		—		—		—		583		1,015		135		437,446
High Tech Industries		290,725		—		—		—		—		1,000		—		291,725
Hotel, Gaming, Leisure, Restaurants		19,317		—		—		—		—		—		—		19,317
Insurance		82,930		—		—		—		—		—		—		82,930
Manufacturing, Capital Equipment		29,798		7,963		—		—		11,850		249		—		49,860
Media – Diversified & Production		35,641		—		—		—		—		—		—		35,641
Retail		31,281		—		—		—		—		—		—		31,281
Telecommunications		—		7,095		—		—		—		—		—		7,095
Transportation – Cargo, Distribution		51,592		—		—		—		—		—		—		51,592
Utilities – Electric		14,606		—		—		—		—		—		—		14,606
Wholesale		46,995		—		—		—		—		798		—		47,793
Total Non-Controlled / Non-Affiliated Investments	$	1,896,896	$	106,104	$	—	$	—	$	19,085	$	9,939	$	135	$	2,032,159
Non-Controlled / Affiliated Investments
Chemicals, Plastics & Rubber	$	—	$	—	$	—	$	—	$	—	$	78,729	$	—	$	78,729
Consumer Goods - Durable		4,286		—		—		—		—		1,000		—		5,286
Diversified Investment Vehicles, Banking, Finance, Real Estate		—		—		—		16,998		—		—		—		16,998
Energy – Electricity		—		—		—		—		17,347		393		—		17,740
Energy – Oil & Gas		—		—		—		—		—		12,271		—		12,271
Total Non-Controlled / Affiliated Investments	$	4,286	$	—	$	—	$	16,998	$	17,347	$	92,393	$	—	$	131,024

See notes to financial statements.

Table of Contents

MIDCAP FINANCIAL INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2022

(In thousands, except share data)


Industry	First Lien - Secured Debt		Second Lien - Secured Debt		Unsecured Debt		Structured Products and Other		Preferred Equity		Common Equity/Interests		Warrants		Total
Controlled Investments
Aviation and Consumer Transport	$	150,000	$	—	$	—	$	—	$	—	$	146,500	$	—	$	296,500
Energy – Oil & Gas		17,838		41		—		—		—		75,554		—		93,433
High Tech Industries		98,944		—		—		—		6,000		—		—		104,944
Transportation – Cargo, Distribution		—		—		—		—		—		60,766		—		60,766
Total Controlled Investments	$	266,782	$	41	$	—	$	—	$	6,000	$	282,820	$	—	$	555,643
Total	$	2,167,964	$	106,145	$	—	$	16,998	$	42,432	$	385,152	$	135	$	2,718,826

See notes to financial statements.

Table of Contents

MIDCAP FINANCIAL INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2022

(In thousands, except share data)

(35) The following shows the composition of the Company’s portfolio at fair value by control designation, investment type and industry as of September 30, 2022:


Industry	First Lien - Secured Debt			Second Lien - Secured Debt			Unsecured Debt			Structured Products and Other			Preferred Equity			Common Equity/Interests			Warrants			Total			% of Net Assets
Non-Controlled / Non-Affiliated Investments
Advertising, Printing & Publishing	$	43,642		$	—		$	—		$	—		$	—		$	471		$	—		$	44,113			4.36	%
Aerospace & Defense		24,069			—			—			—			—			—			—			24,069			2.38	%
Automotive		58,259			14,235			—			—			—			379			—			72,873			7.21	%
Aviation and Consumer Transport		17,204			—			—			—			—			—			—			17,204			1.70	%
Beverage, Food & Tobacco		102,916			—			—			—			339			2,327			—			105,582			10.44	%
Business Services		204,677			56,774			—			—			89			2,626			—			264,166			26.13	%
Chemicals, Plastics & Rubber		22,689			—			—			—			—			—			—			22,689			2.24	%
Construction & Building		29,839			—			—			—			—			908			—			30,747			3.04	%
Consumer Goods – Durable		20,688			—			—			—			—			504			—			21,192			2.10	%
Consumer Goods – Non-durable		74,539			239			—			—			24			1,511			—			76,313			7.55	%
Consumer Services		176,890			—			—			—			—			—			—			176,890			17.50	%
Diversified Investment Vehicles, Banking, Finance, Real Estate		29,752			—			—			—			—			—			—			29,752			2.94	%
Education		33,181			—			—			—			—			—			—			33,181			3.28	%
Energy – Electricity		1,712			—			—			—			—			—			—			1,712			0.17	%
Healthcare & Pharmaceuticals		434,422			—			—			—			583			4,377			80			439,462			43.47	%
High Tech Industries		289,271			—			—			—			—			1,217			—			290,488			28.73	%
Hotel, Gaming, Leisure, Restaurants		19,276			—			—			—			—			—			—			19,276			1.91	%
Insurance		82,675			—			—			—			—			—			—			82,675			8.18	%
Manufacturing, Capital Equipment		29,281			7,533			—			—			9,626			182			—			46,622			4.61	%
Media – Diversified & Production		35,366			—			—			—			—			—			—			35,366			3.50	%
Retail		31,264			—			—			—			—			—			—			31,264			3.09	%
Telecommunications		—			6,629			—			—			—			—			—			6,629			0.66	%
Transportation – Cargo, Distribution		51,621			—			—			—			—			—			—			51,621			5.11	%
Utilities – Electric		14,588			—			—			—			—			—			—			14,588			1.44	%
Wholesale		47,183			—			—			—			—			717			—			47,900			4.74	%
Total Non-Controlled / Non-Affiliated Investments	$	1,875,004		$	85,410		$	—		$	—		$	10,661		$	15,219		$	80		$	1,986,374			196.47	%
% of Net Assets		185.45	%		8.45	%		0.00	%		0.00	%		1.05	%		1.51	%		0.01	%		196.47	%
Non-Controlled / Affiliated Investments
Chemicals, Plastics & Rubber	$	—		$	—		$	—		$	—		$	—		$	40,979		$	—		$	40,979			4.05	%
Consumer Goods – Durable		3,993			—			—			—			—			419			—			4,412			0.44	%
Diversified Investment Vehicles, Banking, Finance, Real Estate		—			—			—			8,748			—			—			—			8,748			0.87	%
Energy – Electricity		—			—			—			—			4,050			445			—			4,495			0.44	%
Energy – Oil & Gas		—			—			—			—			—			195			—			195			0.02	%
Total Non-Controlled / Affiliated Investments	$	3,993		$	—		$	—		$	8,748		$	4,050		$	42,038		$	—		$	58,829			5.82	%
% of Net Assets		0.39	%		0.00	%		0.00	%		0.87	%		0.40	%		4.16	%		0.00	%		5.82	%

See notes to financial statements.

Table of Contents

MIDCAP FINANCIAL INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2022

(In thousands, except share data)


Controlled Investments
Aviation and Consumer Transport	$	150,000		$	—		$	—		$	—		$	—		$	115,609		$	—		$	265,609		26.27	%
Energy – Oil & Gas		18,374			40			—			—			—			6,992			—			25,406		2.51	%
High Tech Industries		98,829			—			—			—			24,054			—			—			122,883		12.15	%
Transportation – Cargo, Distribution		—			—			—			—			—			4,444			—			4,444		0.44	%
Total Controlled Investments	$	267,203		$	40		$	—		$	—		$	24,054		$	127,045		$	—		$	418,342		41.38	%
% of Net Assets		26.43	%		0.00	%		0.00	%		0.00	%		2.38	%		12.57	%		0.00	%		41.38	%
Total	$	2,146,200		$	85,450		$	—		$	8,748		$	38,765		$	184,302		$	80		$	2,463,545		243.67	%
% of Net Assets		212.28	%		8.45	%		0.00	%		0.87	%		3.83	%		18.23	%		0.01	%		243.67	%

See notes to financial statements.

Table of Contents

MIDCAP FINANCIAL INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2022

(In thousands, except share data)


Industry Classification		Percentage of Total Investments (at Fair Value) as of September 30, 2022
Healthcare & Pharmaceuticals		17.8 %
High Tech Industries		16.8 %
Aviation and Consumer Transport		11.5 %
Business Services		10.7 %
Consumer Services		7.2 %
Beverage, Food & Tobacco		4.3 %
Insurance		3.4 %
Consumer Goods – Non-durable		3.1 %
Automotive		3.0 %
Chemicals, Plastics & Rubber		2.6 %
Transportation – Cargo, Distribution		2.3 %
Wholesale		1.9 %
Manufacturing, Capital Equipment		1.9 %
Advertising, Printing & Publishing		1.8 %
Diversified Investment Vehicles, Banking, Finance, Real Estate		1.6 %
Media – Diversified & Production		1.4 %
Education		1.3 %
Retail		1.3 %
Construction & Building		1.2 %
Consumer Goods – Durable		1.0 %
Energy – Oil & Gas		1.0 %
Aerospace & Defense		1.0 %
Hotel, Gaming, Leisure, Restaurants		0.8 %
Utilities – Electric		0.6 %
Telecommunications		0.3 %
Energy – Electricity		0.2 %
Total Investments		100.0 %

See notes to financial statements.

Table of Contents

MIDCAP FINANCIAL INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS

March 31, 2022

(In thousands, except share data)


In dustry / Company	Investment Type	Interest Rate	Maturity Date	Par/Shares (12)		Cost (33)			Fair Value (1)(34)
Advertising, Printing & Publishing
FingerPaint Marketing
KL Charlie Acquisition Company	First Lien Secured Debt	L+ 625 , 1.00 % Floor	12/30/26	$	30,818	$	22,373		$	22,510		(9)(21)(23) (28)
	First Lien Secured Debt - Revolver	L+ 625 , 1.00 % Floor	12/30/26		1,962		( 31	)		( 20	)	(8)(9)(21) (23)
KL Charlie Co-Invest, L.P.	Common Equity - Common Stock	N/A	N/A	218,978 Shares			219			353		(9)(13)
							22,561			22,843
Hero Digital
HRO (Hero Digital) Holdings, LLC	First Lien Secured Debt	L+ 600 , 1.00 % Floor	11/18/28		27,186		19,084			19,253		(9)(21)(23) (29)
	First Lien Secured Debt - Revolver	L+ 600 , 1.00 % Floor	11/18/26		2,553		( 47	)		( 26	)	(8)(9)(20) (21)(23)
HRO Holdings I LP	Common Equity - Common Stock	N/A	N/A	213 Shares			213			212		(9)(13)(24)
							19,250			19,439
		Total Advertising, Printing & Publishing				$	41,811		$	42,282
Aerospace & Defense
Erickson Inc
Erickson Inc	First Lien Secured Debt - Revolver	L+ 750 , 1.50 % Floor	04/28/22	$	32,250	$	23,628		$	23,315		(9)(20)(21) (23)(28)
	First Lien Secured Debt - Revolver	13.50 %	04/28/22		3,750		3,750			3,712		(9)(23)
		Total Aerospace & Defense				$	27,378		$	27,027
Automotive
Club Car Wash
Club Car Wash Operating, LLC	First Lien Secured Debt	L+ 650 , 1.00 % Floor	06/16/27	$	29,931	$	22,934		$	23,018		(9)(21)(23) (29)
	First Lien Secured Debt - Revolver	L+ 650 , 1.00 % Floor	06/16/27		2,438		( 37	)		( 30	)	(8)(9)(21) (23)
							22,897			22,988
Crowne Automotive
Vari-Form Group, LLC	First Lien Secured Debt	11.00 % ( 7.00 % Cash plus 4.00 % PIK)	02/02/23		5,860		893			410		(9)(14)
Vari-Form Inc.	First Lien Secured Debt	11.00 % ( 7.00 % Cash plus 4.00 % PIK)	02/02/23		2,110		391			148		(9)(14)
							1,284			558
K&N Parent, Inc.
K&N Parent, Inc.	Second Lien Secured Debt	L+ 875 , 1.00 % Floor	10/21/24		23,765		23,605			19,724		(28)
Truck-Lite Co., LLC
TL Lighting Holdings, LLC	Common Equity - Equity	N/A	N/A	350 Shares			350			420		(9)(13)
Truck-Lite Co., LLC	First Lien Secured Debt	L+ 625 , 1.00 % Floor	12/14/26		31,287		29,655			29,533		(9)(21)(23) (28)
	First Lien Secured Debt - Revolver	L+ 625 , 1.00 % Floor	12/13/24		3,052		241			226		(9)(20)(21) (23)(26)
							30,246			30,179
		Total Automotive				$	78,032		$	73,449
Aviation and Consumer Transport
Merx Aviation Finance, LLC
Merx Aviation Finance, LLC (5)	First Lien Secured Debt - Revolver	10.00 %	10/31/23	$	275,177	$	275,000		$	275,000		(20)(23)
	Common Equity - Membership Interests	N/A	N/A	N/A			35,800			23,509		(24)
							310,800			298,509
Primeflight
PrimeFlight Aviation Services, Inc.	First Lien Secured Debt	L+ 625 , 1.00 % Floor	05/09/24		17,353		17,179			17,271		(9)(26)
		Total Aviation and Consumer Transport				$	327,979		$	315,780

See notes to financial statements.

Table of Contents

MIDCAP FINANCIAL INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS

March 31, 2022

(In thousands, except share data)


Industry / Company	Investment Type	Interest Rate	Maturity Date	Par/Shares (12)		Cost (33)			Fair Value (1)(34)
Beverage, Food & Tobacco
Berner Foods
Berner Food & Beverage, LLC	First Lien Secured Debt	L+ 650 , 1.00 % Floor	07/30/27	$	30,963	$	30,334		$	30,653		(9)(29)
	First Lien Secured Debt - Revolver	L+ 650 , 1.00 % Floor	07/30/26		2,132		535			555		(9)(21)(23) (29)
	First Lien Secured Debt - Revolver	P+ 550	07/30/26		749		734			742		(9)(23)(25)
							31,603			31,950
Bolthouse Farms
Wm. Bolthouse Farms, Inc.	Common Equity - Equity Interest	N/A	N/A	1,000,000 Shares			1,001			1,080		(13)
Hive
FCP-Hive Holdings, LLC	Preferred Equity - Preferred Equity	N/A	N/A	589 Shares			448			484		(9)(13)(24)
	Common Equity - Common Stock	N/A	N/A	589 Shares			3			20		(9)(13)(24)
Hive Intermediate, LLC	First Lien Secured Debt	L+ 600 , 1.00 % Floor	09/22/27		17,123		16,822			16,952		(9)(26)
	First Lien Secured Debt - Revolver	L+ 600 , 1.00 % Floor	09/22/27		2,326		( 41	)		( 23	)	(8)(9)(21) (23)
							17,232			17,433
Orgain, Inc.
Butterfly Fighter Co-Invest, L.P.	Common Equity - Membership Interests	N/A	N/A	1,000,000 Shares			1,005			1,648
Rise Baking
Ultimate Baked Goods Midco LLC	First Lien Secured Debt	L+ 625 , 1.00 % Floor	08/13/27		26,690		26,086			25,935		(9)(28)
	First Lien Secured Debt - Revolver	L+ 625 , 1.00 % Floor	08/13/27		3,243		1,954			1,936		(9)(20)(21) (23)(28)(29)
							28,040			27,871
TNT Crust LLC
TNT Crust LLC	First Lien Secured Debt	L+ 675 Cash plus 1.00 % PIK, 1.00 % Floor	11/06/23		21,706		21,512			21,272		(9)(28)
	First Lien Secured Debt - Revolver	L+ 675 Cash plus 1.00 % PIK, 1.00 % Floor	11/06/23		3,252		3,085			3,036		(9)(21)(23) (29)
	Common Equity - Series A Units	N/A	N/A	244 Shares			30			172		(9)(13)
							24,627			24,480
Turkey Hill
IC Holdings LLC	Common Equity - Series A Units	N/A	N/A	169 Shares			169			160		(9)(13)
THLP CO. LLC	First Lien Secured Debt	L+ 600 , 1.00 % Floor	05/31/25		25,110		24,824			24,608		(9)(28)
	First Lien Secured Debt - Revolver	P+ 500	05/31/24		4,494		1,165			1,112		(9)(20)(21) (23)(25)
							26,158			25,880
		Total Beverage, Food & Tobacco				$	129,666		$	130,342
Business Services
Access Information
Access CIG, LLC	Second Lien Secured Debt	L+ 775 , 0.00 % Floor	02/27/26	$	15,900	$	15,829		$	15,787		(26)
AlpineX
Alpinex Opco, LLC	First Lien Secured Debt	L+ 600 , 1.00 % Floor	12/27/27		16,383		11,644			11,605		(9)(21)(23) (28)
	First Lien Secured Debt - Revolver	L+ 600 , 1.00 % Floor	12/27/27		1,117		( 21	)		( 21	)	(8)(9)(21) (23)
							11,623			11,584

See notes to financial statements.

Table of Contents

MIDCAP FINANCIAL INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS

March 31, 2022

(In thousands, except share data)


Industry / Company	Investment Type	Interest Rate	Maturity Date	Par/Shares (12)		Cost (33)			Fair Value (1)(34)
Ambrosia Buyer Corp.
Ambrosia Buyer Corp.	Second Lien Secured Debt	8.00 %	08/28/25		21,429		18,582			5,657		(14)
AML Rightsource
Gabriel Partners, LLC	First Lien Secured Debt	L+ 600 , 1.00 % Floor	09/21/26		31,451		30,898			31,203		(9)(29)
	First Lien Secured Debt - Revolver	P+ 500	09/21/26		665		120			128		(9)(21)(23) (25)
							31,018			31,331
Continuum
Continuum Global Solutions, LLC	Preferred Equity - Preferred Equity	N/A	N/A	775 Shares			78			78		(9)(13)
Electro Rent Corporation
Electro Rent Corporation	Second Lien Secured Debt	L+ 900 , 1.00 % Floor	01/31/25		34,235		33,806			34,064		(9)(28)
Elo Touch
TGG TS Acquisition Company	First Lien Secured Debt - Revolver	L+ 650 , 0.00 % Floor	12/14/23		1,750		750			721		(21)(23)(26)
Ensemble Health
EHL Merger Sub, LLC	First Lien Secured Debt - Revolver	L+ 325 , 0.00 % Floor	08/01/24		4,155		( 179	)		( 111	)	(8)(21)(23)
IRP
Precision Refrigeration & Air Conditioning LLC	First Lien Secured Debt	SOFR+ 600 , 1.00 % Floor	03/08/28		8,182		8,020			8,018		(9)(27)
	First Lien Secured Debt - Revolver		03/08/27		1,705		( 34	)		( 34	)	(8)(9)(21) (23)
SMC IR Holdings, LLC	Common Equity - Common Stock	N/A	N/A	114 Shares			114			114		(9)(13)(24)
							8,100			8,098
Jacent
Jacent Strategic Merchandising	First Lien Secured Debt	L+ 675 , 1.00 % Floor	04/23/24		22,116		21,977			21,508		(9)(28)
	First Lien Secured Debt - Revolver	L+ 675 , 1.00 % Floor	04/23/24		3,500		3,472			3,400		(9)(21)(23) (28)(29)
	Common Equity - Common Stock	N/A	N/A	5,000 Shares			500			169		(9)(13)
JSM Equity Investors, L.P.	Preferred Equity - Class P Partnership Units	N/A	N/A	114 Shares			11			11		(9)(13)
							25,960			25,088
Jones & Frank
JF Acquisition, LLC	First Lien Secured Debt	L+ 550 , 1.00 % Floor	07/31/26		13,201		13,058			13,008		(9)(28)(30)
	First Lien Secured Debt - Revolver	L+ 550 , 1.00 % Floor	07/31/26		1,569		( 17	)		( 23	)	(8)(9)(21) (23)
							13,041			12,985
MAKS
Trident Bidco Limited	First Lien Secured Debt	L+ 550 , 1.00 % Floor	11/08/25		33,688		33,066			33,670		(9)(17)(29)
Naviga
Naviga Inc. (fka Newscycle Solutions, Inc.)	First Lien Secured Debt	L+ 700 , 1.00 % Floor	12/29/22		13,397		13,318			13,430		(9)(26)(28)
	First Lien Secured Debt - Revolver	L+ 700 , 1.00 % Floor	12/29/22		500		278			280		(9)(21)(23) (26)
							13,596			13,710
PSE
Graffiti Buyer, Inc.	First Lien Secured Debt	L+ 575 , 1.00 % Floor	08/10/27		8,420		5,679			5,639		(9)(21)(23) (28)
	First Lien Secured Debt - Revolver	L+ 575 , 1.00 % Floor	08/10/27		1,307		390			388		(9)(21)(23) (28)
Graffiti Parent, LP	Common Equity - Common Stock	N/A	N/A	2,439 Shares			244			200		(9)(13)(24)
							6,313			6,227

See notes to financial statements.

Table of Contents

MIDCAP FINANCIAL INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS

March 31, 2022

(In thousands, except share data)


Industry / Company	Investment Type	Interest Rate	Maturity Date	Par/Shares (12)		Cost (33)			Fair Value (1)(34)
PSI Services, LLC
Lifelong Learner Holdings, LLC	First Lien Secured Debt	L+ 575 , 1.00 % Floor	10/19/26		33,975		33,527			32,411		(9)(28)(29)
	First Lien Secured Debt - Revolver	L+ 575 , 1.00 % Floor	10/20/25		2,985		2,947			2,865		(9)(21)(23) (28)
							36,474			35,276
Soliant
Soliant Health, Inc.	Common Equity - Membership Interests	N/A	N/A	300 Shares			300			871		(9)
US Legal Support
US Legal Support Investment Holdings, LLC	Common Equity - Series A-1 Units	N/A	N/A	631,972 Shares			632			1,030		(9)(13)
USLS Acquisition, Inc.	First Lien Secured Debt	L+ 575 , 1.00 % Floor	12/02/24		24,003		23,781			23,643		(9)(28)
	First Lien Secured Debt - Revolver	L+ 525 , 1.00 % Floor	12/02/24		1,286		417			409		(9)(20)(21) (23)(28)
	First Lien Secured Debt - Revolver	P+ 425	12/02/24		322		319			317		(9)(23)(25)
							25,149			25,399
Wilson Language Training
Owl Acquisition, LLC	First Lien Secured Debt	SOFR+ 575 , 1.00 % Floor	02/04/28		9,900		9,707			9,702		(9)(27)
Owl Parent Holdings, LLC	Common Equity - Common Stock	N/A	N/A	100 Shares			100			100		(9)(13)(24)
							9,807			9,802
		Total Business Services				$	283,313		$	270,237
Chemicals, Plastics & Rubber
Carbonfree Chemicals SPE I LLC (f/k/a Maxus Capital Carbon SPE I LLC)
Carbonfree Chemicals Holdings LLC (4)	Common Equity - Common Equity / Interest	N/A	N/A	2,354 Shares		$	46,295		$	42,117		(3)(13)(16) (24)
Carbonfree Chemicals SA LLC (4)	Common Equity - Class B Units	N/A	N/A	3,152 Shares			32,434			—		(3)(13)(16) (24)
							78,729			42,117
Westfall Technik, Inc.
Westfall Technik, Inc.	First Lien Secured Debt	L+ 575 , 1.00 % Floor	09/13/24		15,616		15,482			15,269		(9)(28)
	First Lien Secured Debt	L+ 625 , 1.00 % Floor	09/13/24		5,638		5,557			5,542		(9)(28)
	First Lien Secured Debt - Revolver	L+ 575 , 1.00 % Floor	09/13/24		2,019		2,002			1,975		(9)(23)(28)
							23,041			22,786
		Total Chemicals, Plastics & Rubber				$	101,770		$	64,903
Construction & Building
Englert
Gutter Buyer, Inc.	First Lien Secured Debt	L+ 575 , 1.00 % Floor	03/06/25	$	28,393	$	28,097		$	28,169		(9)(26)
	First Lien Secured Debt - Revolver	P+ 475	03/06/24		2,727		2,019			2,013		(9)(20)(21) (23)(25)
Gutter Holdings, LP	Common Equity - Common Stock	N/A	N/A	500 Shares			500			1,226		(9)
		Total Construction & Building				$	30,616		$	31,408
Consumer Goods – Durable
A&V
A&V Holdings Midco, LLC	First Lien Secured Debt - Revolver	L+ 450 , 1.00 % Floor	03/10/25	$	1,505	$	( 80	)	$	( 52	)	(8)(21)(23)
KDC
KDC US Holdings	First Lien Secured Debt - Revolver	L+ 325 , 0.00 % Floor	12/21/23		6,020		692			620		(20)(21)(23) (26)

See notes to financial statements.

Table of Contents

MIDCAP FINANCIAL INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS

March 31, 2022

(In thousands, except share data)


Industry / Company	Investment Type	Interest Rate	Maturity Date	Par/Shares (12)		Cost (33)			Fair Value (1)(34)
KLO Holdings, LLC
1244311 B.C. Ltd. (4)	First Lien Secured Debt	L+ 500 , 1.00 % Floor	09/30/25		2,978		2,978			2,794		(17)(28)
	First Lien Secured Debt	L+ 500 PIK, 1.00 % Floor	09/30/25		1,079		1,079			1,006		(17)(28)
	Common Equity - Common Stock	N/A	N/A	1,000,032 Shares			1,000			976		(2)(13)(17) (24)
GSC Technologies Inc. (4)	First Lien Secured Debt	L+ 500 Cash plus 5.00 % PIK, 1.00 % Floor	09/30/25		206		206			192		(17)(28)
							5,263			4,968
Liqui-Box
Liqui-Box Holdings, Inc.	First Lien Secured Debt - Revolver	L+ 450 , 1.00 % Floor	02/26/25		2,416		878			889		(20)(21)(23) (28)
	First Lien Secured Debt - Revolver	P+ 350	02/26/25		1,144		1,137			1,143		(23)(25)
							2,015			2,032
NSi Industries
Wildcat BuyerCo, Inc.	First Lien Secured Debt	L+ 575 , 1.00 % Floor	02/27/26		14,660		13,096			13,271		(21)(23)(28)
	First Lien Secured Debt - Revolver	L+ 575 , 1.00 % Floor	02/27/26		725		( 11	)		( 13	)	(8)(21)(23)
Wildcat Parent LP	Common Equity - Common Stock	N/A	N/A	1,070 Shares			107			180		(13)
							13,192			13,438
Sorenson Holdings, LLC
Sorenson Holdings, LLC	Common Equity - Membership Interests	N/A	N/A	587 Shares			—			325		(10)(13)
		Total Consumer Goods – Durable				$	21,082		$	21,331
Consumer Goods – Non-durable
3D Protein
Protein For Pets Opco, LLC	First Lien Secured Debt - Revolver	L+ 500 , 1.00 % Floor	05/31/24	$	2,219	$	( 25	)	$	—		(9)(21)(23)
Dan Dee
Project Comfort Buyer, Inc.	First Lien Secured Debt	L+ 700 , 1.00 % Floor	02/01/25		24,897		24,548			23,936		(9)(28)
	First Lien Secured Debt - Revolver	L+ 700 , 1.00 % Floor	02/01/24		3,462		( 38	)		( 139	)	(8)(9)(21) (23)
	Preferred Equity - Preferred Equity	N/A	N/A	461,538 Shares			462			37		(9)(13)
							24,972			23,834
LashCo
Lash OpCo, LLC	First Lien Secured Debt	L+ 700 , 1.00 % Floor	03/18/26		44,992		42,582			42,819		(9)(21)(23) (26)
	First Lien Secured Debt - Revolver	L+ 700 , 1.00 % Floor	09/18/25		1,612		( 48	)		( 25	)	(8)(9)(21) (23)
							42,534			42,794
Paladone
Paladone Group Bidco Limited	First Lien Secured Debt	L+ 575 , 1.00 % Floor	11/12/27		7,988		5,974			6,035		(9)(17)(21) (23)(28)
	First Lien Secured Debt - Revolver	L+ 575 , 1.00 % Floor	11/12/27		353		( 9	)		( 4	)	(8)(9)(17) (21)(23)
	First Lien Secured Debt - Revolver	L+ 575 , 1.00 % Floor	11/12/27		1,412		( 27	)		( 12	)	(8)(9)(17) (21)(23)
Paladone Group Holdings Limited	Common Equity - Common Stock	N/A	N/A	94,151 Shares			94			119		(9)(13)(17) (24)
							6,032			6,138

See notes to financial statements.

Table of Contents

MIDCAP FINANCIAL INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS

March 31, 2022

(In thousands, except share data)


Industry / Company	Investment Type	Interest Rate	Maturity Date	Par/Shares (12)		Cost (33)			Fair Value (1)(34)
Sequential Brands Group, Inc.
Gainline Galaxy Holdings LLC	Common Equity - Common Stock	N/A	N/A	10,854 Shares			2,041			1,900		(13)(16)(17) (24)
Sequential Avia Holdings LLC	Second Lien Secured Debt	L+ 500 , 1.00 % Floor	11/12/26		1,717		1,716			1,717		(17)(29)
Sequential Brands Group, Inc.	Second Lien Secured Debt	8.75 %	02/07/24		1,293		—			239		(14)(17)
Swisstech IP CO, LLC	First Lien Secured Debt	6.00 % PIK	11/29/24		264		1			264		(17)
							3,758			4,120
		Total Consumer Goods – Non-durable				$	77,271		$	76,886
Consumer Services
Activ
Activ Software Holdings, LLC	First Lien Secured Debt	L+ 650 , 1.00 % Floor	05/04/27	$	29,869	$	29,359		$	29,418		(9)(30)
	First Lien Secured Debt - Revolver	L+ 625 , 1.00 % Floor	05/04/27		2,407		( 41	)		( 36	)	(8)(9)(21) (23)
							29,318			29,382
Bird
Bird US Opco, LLC	First Lien Secured Debt	L+ 750 , 1.00 % Floor	10/12/24		48,549		22,076			22,821		(9)(23)(26)
Clarus Commerce
Marlin DTC-LS Midco 2, LLC	First Lien Secured Debt	L+ 650 , 1.00 % Floor	07/01/25		21,632		21,330			21,529		(28)
	First Lien Secured Debt - Revolver	L+ 600 , 1.00 % Floor	07/01/25		685		8			( 3	)	(8)(21)(23)
							21,338			21,526
First Heritage
First Heritage Credit, LLC	First Lien Secured Debt	L+ 475 , 0.00 % Floor	08/31/22		26,250		20,992			21,099		(9)(21)(23) (26)
	First Lien Secured Debt - Revolver	L+ 550 , 0.00 % Floor	08/31/22		3,750		1,160			1,160		(9)(21)(23) (26)
							22,152			22,259
Go Car Wash
Go Car Wash Management Corp.	First Lien Secured Debt	L+ 575 , 1.00 % Floor	12/31/26		11,443		9,269			9,255		(9)(21)(23) (26)
	First Lien Secured Debt - Revolver	L+ 575 , 1.00 % Floor	12/31/26		417		( 3	)		( 6	)	(8)(9)(21) (23)
							9,266			9,249
Lending Point
LendingPoint LLC	First Lien Secured Debt	L+ 1050 , 1.00 % Floor	12/30/25		17,500		13,422			13,515		(9)(21)(23) (28)
	First Lien Secured Debt	L+ 575 , 1.00 % Floor	12/30/25		4,167		3,158			3,186		(9)(21)(23) (28)
	First Lien Secured Debt - Revolver	L+ 575 , 1.00 % Floor	12/30/25		8,333		8,262			8,318		(9)(23)(28)
							24,842			25,019
Only About Children
Nemo (BC) Bidco Pty Ltd	First Lien Secured Debt	BBSW+ 675 , 1.00 % Floor	04/06/24	A$ 7,000			4,953			4,907		(17)(21)(23) (32)
Paper Source
Papershop Holdco Inc.	First Lien Secured Debt	L+ 700 , 1.00 % Floor	05/27/26		10,607		10,515			10,395		(9)(28)
	First Lien Secured Debt - Revolver	L+ 700 , 1.00 % Floor	05/27/26		3,082		1,498			1,463		(9)(21)(23) (28)
							12,013			11,858

See notes to financial statements.

Table of Contents

MIDCAP FINANCIAL INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS

March 31, 2022

(In thousands, except share data)


Industry / Company	Investment Type	Interest Rate	Maturity Date	Par/Shares (12)		Cost (33)			Fair Value (1)(34)
The Club Company
Eldrickco Limited	First Lien Secured Debt	SON+ 625 , 0.50 % Floor	11/26/25	£ 15,027			13,965			14,157		(9)(17)(21) (23)(31)
	First Lien Secured Debt - Revolver	SON+ 625 , 0.50 % Floor	11/26/25	£ 356			411			457		(9)(17)(23) (31)
	First Lien Secured Debt - Revolver	SON+ 625 , 0.50 % Floor	05/26/25	£ 345			1			( 5	)	(8)(9)(17) (21)(23)
							14,377			14,609
US Auto
U.S. Auto Finance, Inc.	First Lien Secured Debt	L+ 525 , 1.00 % Floor	04/17/24		20,000		9,343			9,202		(9)(21)(23) (28)
	First Lien Secured Debt	L+ 525 , 1.00 % Floor	03/31/23		1,000		975			995		(9)(28)
	First Lien Secured Debt - Revolver	L+ 600 , 1.00 % Floor	04/17/24		13,333		2,412			2,418		(9)(21)(23) (28)
							12,730			12,615
		Total Consumer Services				$	173,065		$	174,245
Diversified Investment Vehicles, Banking, Finance, Real Estate
Celink
Compu-Link Corporation	First Lien Secured Debt - Revolver	L+ 550 , 1.00 % Floor	06/11/24	$	2,273	$	( 22	)	$	( 3	)	(8)(9)(21) (23)
Peer Advisors, LLC	First Lien Secured Debt	L+ 550 , 1.00 % Floor	06/11/24		17,386		17,210			17,366		(9)(26)
							17,188			17,363
Flock Financial, LLC
Flock SPV I, LLC	First Lien Secured Debt	L+ 650 , 1.00 % Floor	12/31/22		14,667		12,011			11,985		(9)(17)(21) (23)(26)
	First Lien Secured Debt - Revolver	L+ 650 , 1.00 % Floor	12/31/22		5,333		1,847			1,861		(9)(17)(21) (23)(26)
							13,858			13,846
Golden Bear
Golden Bear 2016-R, LLC (4)	Structured Products and Other - Membership Interests	N/A	09/20/42	N/A			16,998			10,038		(3)(17)
Purchasing Power, LLC
Purchasing Power Funding I, LLC	First Lien Secured Debt - Revolver	L+ 650 , 0.00 % Floor	01/24/24		9,113		1,142			1,142		(9)(21)(23) (26)
Spectrum Automotive
Shelby 2021 Holdings Corp.	First Lien Secured Debt	L+ 575 , 0.75 % Floor	06/29/28		14,490		12,288			12,329		(9)(21)(23) (28)
	First Lien Secured Debt - Revolver	L+ 575 , 0.75 % Floor	06/29/27		420		( 6	)		( 4	)	(8)(9)(21) (23)
							12,282			12,325
Ten-X, LLC
Ten-X, LLC	First Lien Secured Debt - Revolver	L+ 325 , 0.00 % Floor	09/29/22		4,680		( 43	)		( 73	)	(8)(21)(23)
	Total Diversified Investment Vehicles, Banking, Finance, Real Estate					$	61,425		$	54,641
Education
NFA Group
SSCP Spring Bidco Limited	First Lien Secured Debt	SON+ 600 , 0.50 % Floor	07/30/25	£ 30,000		$	36,322		$	39,059		(9)(17)(31)
		Total Education				$	36,322		$	39,059

See notes to financial statements.

Table of Contents

MIDCAP FINANCIAL INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS

March 31, 2022

(In thousands, except share data)


Industry / Company	Investment Type	Interest Rate	Maturity Date	Par/Shares (12)		Cost (33)			Fair Value (1)(34)
Energy – Electricity
Renew Financial LLC (f/k/a Renewable Funding, LLC)
AIC SPV Holdings II, LLC (4)	Preferred Equity - Preferred Stock	N/A	N/A	142 Shares		$	534		$	355		(15)(17)(24)
Renew Financial LLC (f/k/a Renewable Funding, LLC) (4)	Preferred Equity - Series E Preferred Stock	N/A	N/A	441,576 Shares			1,902			4,988		(13)(17)(24)
	Preferred Equity - Series B Preferred Stock	N/A	N/A	1,505,868 Shares			8,343			—		(13)(24)
	Preferred Equity - Series D Preferred Stock	N/A	N/A	436,689 Shares			5,568			—		(13)(24)
Renew JV LLC (4)	Common Equity - Membership Interests	N/A	N/A	465,750 Shares			466			613		(13)(17)(24)
							16,813			5,956
Solarplicity Group Limited (f/k/a AMP Solar UK)
Solarplicity UK Holdings Limited	First Lien Secured Debt	4.00 %	03/08/23	£ 5,562			7,230			1,874		(14)(17)
	Preferred Equity - Preferred Stock	N/A	N/A	4,286 Shares			5,623			—		(2)(13)(17)
	Common Equity - Ordinary Shares	N/A	N/A	2,825 Shares			4			—		(2)(13)(17)
							12,857			1,874
		Total Energy – Electricity				$	29,670		$	7,830
Energy – Oil & Gas
Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.)
Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.) (5)	Second Lien Secured Debt	10.00 % PIK	03/31/23	$	8,323	$	7,458		$	6,204		(14)
	Common Equity - Common Stock	N/A	N/A	10,000,000 Shares			30,078			—		(13)(24)
							37,536			6,204
Pelican
Pelican Energy, LLC (4)	Common Equity - Membership Interests	N/A	N/A	1,444 Shares			13,063			630		(13)(16)(17) (24)
Spotted Hawk
SHD Oil & Gas, LLC (5)	First Lien Secured Debt - Tranche C Note	12.00 %	06/30/22		24,728		24,728			25,470
	Common Equity - Series C Units	N/A	N/A	50,952,525 Shares			44,067			4,652		(13)(16)(24)
	Common Equity - Series A Units	N/A	N/A	7,600,000 Shares			1,411			—		(13)(16)(24)
							70,206			30,122
		Total Energy – Oil & Gas				$	120,805		$	36,956
Environmental Industries
Ortega National Parks
Ortega National Parks, LLC	First Lien Secured Debt	L+ 500 , 1.00 % Floor	10/31/26	$	14,497	$	8,156		$	8,235		(9)(21)(23) (29)
	First Lien Secured Debt - Revolver	L+ 500 , 1.00 % Floor	10/31/26		2,049		( 27	)		( 9	)	(8)(9)(21) (23)
		Total Environmental Industries				$	8,129		$	8,226
Healthcare & Pharmaceuticals
83bar
83Bar, Inc.	First Lien Secured Debt	L+ 575 , 1.50 % Floor	07/02/26	$	5,000	$	4,978		$	4,975		(9)(26)
Akoya
Akoya Biosciences, Inc.	First Lien Secured Debt	L+ 635 , 1.50 % Floor	10/27/25		9,750		9,772			9,771		(9)(26)

See notes to financial statements.

Table of Contents

MIDCAP FINANCIAL INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS

March 31, 2022

(In thousands, except share data)


Industry / Company	Investment Type	Interest Rate	Maturity Date	Par/Shares (12)		Cost (33)			Fair Value (1)(34)
Analogic
Analogic Corporation	First Lien Secured Debt	L+ 525 , 1.00 % Floor	06/22/24		17,850		17,675			17,582		(9)(28)
	First Lien Secured Debt - Revolver	L+ 525 , 1.00 % Floor	06/22/23		1,826		1,293			1,277		(9)(21)(23) (28)
							18,968			18,859
Cato Research
LS Clinical Services Holdings, Inc.	First Lien Secured Debt	L+ 675 , 1.00 % Floor	12/16/27		13,092		12,778			12,787		(9)(26)
	First Lien Secured Debt - Revolver	L+ 675 , 1.00 % Floor	12/16/26		1,875		237			237		(9)(21)(23) (28)
							13,015			13,024
Cerus
Cerus Corporation	First Lien Secured Debt	L+ 545 , 1.80 % Floor	03/01/24		16,500		16,467			16,665		(9)(17)(26)
	First Lien Secured Debt - Revolver	L+ 375 , 1.80 % Floor	03/01/24		1,500		670			672		(9)(17)(21) (23)(26)
							17,137			17,337
Compass Health
Roscoe Medical, Inc	First Lien Secured Debt	SOFR+ 625 , 1.00 % Floor	09/30/24		7,601		7,328			7,316		(9)(27)
	First Lien Secured Debt - Revolver	SOFR+ 625 , 1.00 % Floor	09/30/24		1,393		767			767		(9)(21)(23) (27)
							8,095			8,083
Emmes Corporation
Emmes Blocker, Inc.	Common Equity - Common Stock	N/A	N/A	306 Shares			306			879		(9)(13)
The Emmes Company, LLC	First Lien Secured Debt	L+ 500 , 1.00 % Floor	03/03/25		15,886		15,755			15,646		(9)(29)
	First Lien Secured Debt - Revolver	L+ 500 , 1.00 % Floor	03/03/25		2,449		2,431			2,412		(9)(23)(26)
							18,492			18,937
EmpiRx
EmpiRx Health LLC	First Lien Secured Debt	L+ 550 , 1.00 % Floor	08/05/27		9,068		8,906			8,977		(9)(28)
	First Lien Secured Debt - Revolver	L+ 550 , 1.00 % Floor	08/05/27		909		( 16	)		( 9	)	(8)(9)(21) (23)
							8,890			8,968
Forge Biologics
Forge Biologics, Inc.	First Lien Secured Debt	L+ 675 , 0.50 % Floor	12/03/26		26,667		3,209			3,245		(9)(23)(26)
Gossamer
GB001, Inc.	First Lien Secured Debt	L+ 700 , 2.00 % Floor	01/01/25		30,000		5,886			6,056		(9)(17)(23) (26)
Health & Safety Institute
HSI HALO Acquisition, Inc.	First Lien Secured Debt	L+ 575 , 1.00 % Floor	08/31/26		16,378		13,500			13,335		(9)(21)(23) (28)
	First Lien Secured Debt - Revolver	L+ 575 , 1.00 % Floor	09/02/25		813		131			121		(9)(21)(23) (26)
	Common Equity - Common Stock	N/A	N/A	500 Shares			500			679		(9)(13)
							14,131			14,135
IMA Group
IMA Group Management Company, LLC	First Lien Secured Debt	L+ 600 , 1.00 % Floor	05/30/24		12,680		8,560			8,566		(21)(23)(29)
	First Lien Secured Debt - Revolver	L+ 600 , 1.00 % Floor	05/30/24		289		259			257		(21)(23)(28)
							8,819			8,823

See notes to financial statements.

Table of Contents

MIDCAP FINANCIAL INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS

March 31, 2022

(In thousands, except share data)


Industry / Company	Investment Type	Interest Rate	Maturity Date	Par/Shares (12)		Cost (33)			Fair Value (1)(34)
Kepro
Keystone Acquisition Corp.	First Lien Secured Debt	L+ 575 , 0.75 % Floor	01/26/29		14,022		11,812			11,925		(9)(21)(23) (28)
	First Lien Secured Debt - Revolver	L+ 575 , 0.75 % Floor	01/26/28		978		( 19	)		( 10	)	(8)(9)(21) (23)
							11,793			11,915
Kindeva
Kindeva Drug Delivery L.P.	First Lien Secured Debt	L+ 600 , 1.00 % Floor	05/01/26		9,410		9,254			9,311		(9)(28)
	First Lien Secured Debt - Revolver	L+ 600 , 1.00 % Floor	05/01/25		167		147			147		(9)(21)(23) (26)
							9,401			9,458
KureSmart
Clearway Corporation (f/k/a NP/Clearway Holdings, Inc.)	Common Equity - Common Stock	N/A	N/A	133 Shares			133			217		(9)(13)
Kure Pain Holdings, Inc.	First Lien Secured Debt	L+ 500 , 1.00 % Floor	08/27/24		21,658		21,497			21,398		(9)(26)
	First Lien Secured Debt - Revolver	L+ 500 , 1.00 % Floor	08/27/24		2,654		( 24	)		( 33	)	(8)(9)(21) (23)
							21,606			21,582
LucidHealth
Premier Imaging, LLC	First Lien Secured Debt	L+ 600 , 1.00 % Floor	01/02/25		12,480		7,628			7,614		(9)(21)(23) (26)
Mannkind Corporation
Mannkind Corporation	First Lien Secured Debt	L+ 675 , 1.00 % Floor	08/01/25		13,866		13,793			14,058		(9)(26)
	First Lien Secured Debt	L+ 625 , 1.00 % Floor	08/01/25		30,000		( 23	)		—		(9)(23)
	Common Equity - Common Stock	N/A	N/A	334,226 Shares			76			1,230		(9)(10)(13) (17)
							13,846			15,288
Maxor National Pharmacy Services, LLC
Maxor National Pharmacy Services, LLC	First Lien Secured Debt	L+ 550 , 1.00 % Floor	12/06/27		23,436		23,206			23,145		(9)(28)
	First Lien Secured Debt - Revolver	L+ 550 , 1.00 % Floor	12/06/26		1,558		( 11	)		( 20	)	(8)(9)(21) (23)
							23,195			23,125
Medical Guardian
Medical Guardian, LLC	First Lien Secured Debt	L+ 650 , 1.00 % Floor	10/26/26		36,112		30,882			30,966		(9)(21)(23) (26)
	First Lien Secured Debt - Revolver	L+ 650 , 1.00 % Floor	10/26/26		3,810		( 52	)		( 41	)	(8)(9)(21) (23)
							30,830			30,925
Midwest Vision
Midwest Vision Partners Management, LLC	First Lien Secured Debt	L+ 650 , 1.00 % Floor	01/12/27		24,261		21,431			21,601		(9)(21)(23) (28)(29)
	First Lien Secured Debt - Revolver	L+ 650 , 1.00 % Floor	01/12/27		612		602			606		(9)(23)(28)
							22,033			22,207
Orchard
Orchard Therapeutics PLC	First Lien Secured Debt	L+ 595 , 1.00 % Floor	05/28/26		33,333		10,906			10,776		(9)(17)(23) (26)
Ovation Fertility
FPG Services, LLC	First Lien Secured Debt	L+ 550 , 1.00 % Floor	06/13/25		19,031		14,119			14,276		(9)(21)(23) (28)
	First Lien Secured Debt - Revolver	L+ 550 , 1.00 % Floor	06/13/24		2,105		( 19	)		( 5	)	(8)(9)(21) (23)
							14,100			14,271

See notes to financial statements.

Table of Contents

MIDCAP FINANCIAL INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS

March 31, 2022

(In thousands, except share data)


Industry / Company	Investment Type	Interest Rate	Maturity Date	Par/Shares (12)		Cost (33)			Fair Value (1)(34)
Paragon 28
Paragon 28, Inc.	First Lien Secured Debt	L+ 600 , 1.00 % Floor	05/01/26		10,000		7,472			7,475		(9)(23)(26)
	First Lien Secured Debt - Revolver	L+ 300 , 1.00 % Floor	05/01/26		2,000		( 8	)		( 5	)	(8)(9)(21) (23)
							7,464			7,470
Partner Therapeutics, Inc
Partner Therapeutics, Inc	First Lien Secured Debt	L+ 665 , 1.00 % Floor	01/01/23		10,000		9,976			9,950		(9)(26)
	First Lien Secured Debt	L+ 665 , 1.00 % Floor	08/01/22		3,333		3,333			3,333		(9)(26)
	First Lien Secured Debt - Revolver	L+ 375 , 1.00 % Floor	04/01/26		1,000		( 2	)		—		(9)(21)(23)
	Preferred Equity - Preferred Equity	N/A	N/A	55,556 Shares			333			343		(9)(13)
	Warrants	N/A	N/A	33,333 Shares			135			99		(9)(13)
							13,775			13,725
PHS
PHS Buyer, Inc.	First Lien Secured Debt	L+ 600 , 1.00 % Floor	01/31/27		25,115		24,711			24,612		(9)(28)
	First Lien Secured Debt - Revolver	L+ 600 , 1.00 % Floor	01/31/27		2,000		351			360		(9)(21)(23) (28)
							25,062			24,972
Radius Health
Radius Health, Inc.	First Lien Secured Debt	L+ 575 , 2.00 % Floor	06/01/24		33,833		28,736			28,459		(9)(17)(23) (26)
	First Lien Secured Debt - Revolver	L+ 350 , 2.00 % Floor	06/01/24		1,000		( 1	)		( 10	)	(8)(9)(17) (21)(23)
							28,735			28,449
RHA Health Services
Pace Health Companies, LLC	First Lien Secured Debt	L+ 450 , 1.00 % Floor	08/02/24		3,768		3,729			3,736		(9)(28)
	First Lien Secured Debt - Revolver	L+ 450 , 1.00 % Floor	08/02/24		500		18			( 4	)	(8)(9)(20) (21)(23)
							3,747			3,732
Rigel Pharmaceuticals
Rigel Pharmaceuticals, Inc.	First Lien Secured Debt	L+ 565 , 1.50 % Floor	09/01/24		9,000		9,011			9,051		(9)(26)
Unchained Labs
Unchained Labs, LLC	First Lien Secured Debt	L+ 550 , 1.00 % Floor	08/09/27		6,760		1,848			1,854		(9)(21)(23) (26)
	First Lien Secured Debt - Revolver	L+ 550 , 1.00 % Floor	08/09/27		726		( 13	)		( 7	)	(8)(9)(21) (23)
							1,835			1,847
WellDyneRx, LLC
WelldyneRX, LLC	First Lien Secured Debt	SOFR+ 675 , 0.75 % Floor	03/09/27		18,077		17,720			17,715		(9)(27)
	First Lien Secured Debt - Revolver	SOFR+ 675 , 0.75 % Floor	03/09/26		1,923		( 38	)		( 38	)	(8)(9)(21) (23)
							17,682			17,677
		Total Healthcare & Pharmaceuticals				$	404,041		$	406,297
High Tech Industries
Acronis AG
ACRONIS AG	First Lien Secured Debt	L+ 535 , 1.50 % Floor	12/18/24	$	21,000	$	20,941		$	20,962		(9)(17)(26)
American Megatrends
AMI US Holdings Inc.	First Lien Secured Debt	L+ 525 , 1.00 % Floor	04/01/25		21,430		21,211			21,430		(9)(26)
	First Lien Secured Debt - Revolver	L+ 525 , 0.00 % Floor	04/01/24		2,907		1,139			1,163		(9)(21)(23) (26)
							22,350			22,593

See notes to financial statements.

Table of Contents

MIDCAP FINANCIAL INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS

March 31, 2022

(In thousands, except share data)


Industry / Company	Investment Type	Interest Rate	Maturity Date	Par/Shares (12)		Cost (33)			Fair Value (1)(34)
Calero Holdings, Inc.
Telesoft Holdings, LLC	First Lien Secured Debt	L+ 575 , 1.00 % Floor	12/16/25		22,273		21,952			22,141		(28)
	First Lien Secured Debt - Revolver	L+ 575 , 1.00 % Floor	12/16/25		2,273		( 32	)		( 13	)	(8)(21)(23)
							21,920			22,128
ChyronHego Corporation
ChyronHego Corporation (5)	First Lien Secured Debt	L+ 350 Cash plus 1.50 % PIK, 1.00 % Floor	12/31/22		85,277		84,170			84,424		(28)
	First Lien Secured Debt	L+ 800 PIK, 1.00 % Floor	12/31/22		2,570		2,500			2,545		(28)
	First Lien Secured Debt - Revolver	L+ 500 , 1.00 % Floor	12/31/22		8,000		7,156			7,076		(21)(23)(28)
	Preferred Equity - Preferred Equity	N/A	N/A	7,800 Shares			6,000			15,553		(13)(24)
							99,826			109,598
Dairy.com
Momentx Corporation	First Lien Secured Debt	L+ 575 , 1.00 % Floor	06/24/27		13,640		13,395			13,265		(9)(28)
	First Lien Secured Debt - Revolver	L+ 575 , 1.00 % Floor	06/24/27		1,257		( 22	)		( 35	)	(8)(9)(21) (23)
							13,373			13,230
Digital.ai
Digital.ai Software Holdings, Inc.	First Lien Secured Debt	L+ 700 , 1.00 % Floor	02/10/27		22,355		21,810			22,080		(9)(28)
	First Lien Secured Debt - Revolver	L+ 650 , 1.00 % Floor	02/10/27		2,419		748			777		(9)(21)(23) (28)
							22,558			22,857
GoHealth
Norvax, LLC	First Lien Secured Debt - Revolver	L+ 650 , 1.00 % Floor	09/13/24		3,182		2,428			2,461		(9)(21)(23) (26)(28)
International Cruise & Excursion Gallery, Inc.
International Cruise & Excursion Gallery, Inc.	First Lien Secured Debt	L+ 535 , 1.00 % Floor	06/06/25		14,438		14,305			13,642		(26)
Modern Campus
Destiny Solutions U.S., Inc.	First Lien Secured Debt	L+ 600 , 1.00 % Floor	06/08/26		25,573		25,024			25,126		(26)
RMCF IV CIV XXXV, L.P.	Common Equity - Common Stock	N/A	N/A	482 Shares			1,000			1,430		(13)(24)
							26,024			26,556
MYCOM
Magnate Holding Corp.	First Lien Secured Debt	L+ 625 , 0.50 % Floor	12/16/24		19,164		19,050			18,817		(9)(17)(28)
	First Lien Secured Debt - Revolver	L+ 625 , 0.50 % Floor	12/14/23		3,150		3,133			3,105		(9)(17)(23) (28)
							22,183			21,922
New Era Technology, Inc.
New Era Technology, Inc.	First Lien Secured Debt	L+ 625 , 1.00 % Floor	10/31/26		23,794		21,315			21,221		(9)(21)(23) (28)
	First Lien Secured Debt - Revolver	L+ 625 , 1.00 % Floor	10/30/26		1,049		594			591		(9)(21)(23) (28)
Pro Vigil
Pro-Vigil Holding Company, LLC	First Lien Secured Debt	L+ 850 , 1.00 % Floor	01/11/25		9,910		9,724			9,808		(9)(28)
	First Lien Secured Debt	SOFR+ 850 , 1.00 % Floor	01/11/25		5,329		1,493			1,542		(9)(21)(23) (27)
							11,217			11,350

See notes to financial statements.

Table of Contents

MIDCAP FINANCIAL INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS

March 31, 2022

(In thousands, except share data)


Industry / Company	Investment Type	Interest Rate	Maturity Date	Par/Shares (12)		Cost (33)			Fair Value (1)(34)
Schlesinger Group
Schlesinger Global, LLC	First Lien Secured Debt	L+ 600 Cash plus 1.00 % PIK, 1.00 % Floor	07/12/25		9,882		9,730			9,747		(9)(28)
	First Lien Secured Debt	L+ 775 , 1.00 % Floor	07/12/25		963		950			964		(9)(28)
							10,680			10,711
Simeio
Simeio Group Holdings, Inc.	First Lien Secured Debt	L+ 550 , 1.00 % Floor	02/02/26		8,178		8,099			8,076		(9)(26)
	First Lien Secured Debt - Revolver	L+ 525 , 1.00 % Floor	02/02/26		1,731		( 17	)		( 21	)	(8)(9)(21) (23)
							8,082			8,055
Sirsi Corporation
Sirsi Corporation	First Lien Secured Debt	L+ 450 , 1.00 % Floor	03/15/24		5,456		5,423			5,440		(9)(26)
	First Lien Secured Debt - Revolver	L+ 450 , 1.00 % Floor	03/15/24		429		( 3	)		( 1	)	(8)(9)(21) (23)
							5,420			5,439
Springbrook
Springbrook Holding Company, LLC	First Lien Secured Debt	L+ 550 , 1.00 % Floor	12/23/26		15,933		15,724			15,786		(28)
	First Lien Secured Debt - Revolver	L+ 575 , 1.00 % Floor	12/23/26		1,463		( 17	)		( 13	)	(8)(21)(23)
							15,707			15,773
Tax Slayer
MEP-TS Midco, LLC	First Lien Secured Debt	L+ 600 , 1.00 % Floor	12/31/26		13,379		13,139			13,245		(9)(29)
	First Lien Secured Debt - Revolver	L+ 600 , 1.00 % Floor	12/31/26		1,452		( 1	)		( 15	)	(8)(9)(21) (23)
							13,138			13,230
Telnyx
Telnyx LLC	First Lien Secured Debt	L+ 625 , 1.50 % Floor	10/21/25		5,250		5,230			5,277		(9)(26)
UpStack
Upstack Holdco Inc.	First Lien Secured Debt	L+ 550 , 1.00 % Floor	08/20/27		31,914		27,581			27,995		(9)(21)(23) (29)
	First Lien Secured Debt - Revolver	L+ 550 , 1.00 % Floor	08/20/27		3,000		( 74	)		( 30	)	(8)(9)(20) (21)(23)
							27,507			27,965
		Total High Tech Industries				$	384,798		$	395,561
Hotel, Gaming, Leisure, Restaurants
Guernsey
Guernsey Holdings SDI LA LLC	First Lien Secured Debt	6.95 %	11/18/26	$	9,904	$	9,812		$	9,811		(9)
	First Lien Secured Debt	L+ 595 , 1.00 % Floor	11/18/26		1,167		1			( 11	)	(8)(9)(23)
							9,813			9,800
Taco Cabana
YTC Enterprises, LLC	First Lien Secured Debt	L+ 625 , 1.00 % Floor	08/16/26		9,942		9,835			9,843		(9)(26)
		Total Hotel, Gaming, Leisure, Restaurants				$	19,648		$	19,643
Insurance
High Street Insurance
High Street Buyer, Inc.	First Lien Secured Debt	L+ 600 , 0.75 % Floor	04/14/28	$	30,113	$	29,607		$	29,586		(9)(26)
	First Lien Secured Debt - Revolver	L+ 600 , 0.75 % Floor	04/16/27		2,203		( 37	)		( 39	)	(8)(9)(21) (23)
							29,570			29,547
PGM Holdings Corporation
Turbo Buyer, Inc.	First Lien Secured Debt	L+ 600 , 1.00 % Floor	12/02/25		19,230		18,930			18,889		(9)(29)
	First Lien Secured Debt - Revolver	L+ 575 , 1.00 % Floor	12/02/25		923		( 14	)		( 16	)	(8)(9)(21) (23)
							18,916			18,873

See notes to financial statements.

Table of Contents

MIDCAP FINANCIAL INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS

March 31, 2022

(In thousands, except share data)


Industry / Company	Investment Type	Interest Rate	Maturity Date	Par/Shares (12)		Cost (33)		Fair Value (1)(34)
Relation Insurance
AQ Sunshine, Inc.	First Lien Secured Debt	L+ 600 , 1.00 % Floor	04/15/25		34,858		31,093		31,447	(9)(21)(23) (26)(28)(29)
	First Lien Secured Debt - Revolver	L+ 600 , 1.00 % Floor	04/15/24		1,785		263		280	(9)(20)(21) (23)(29)
							31,356		31,727
		Total Insurance				$	79,842	$	80,147
Manufacturing, Capital Equipment
AVAD, LLC
Surf Opco, LLC	First Lien Secured Debt - Revolver	L+ 400 , 1.00 % Floor	03/17/26	$	16,667	$	11,564	$	11,419	(9)(20)(21) (23)(26)
	Preferred Equity - Class P-1 Preferred	N/A	N/A	33,333 Shares			3,333		6,342	(9)(13)(16)
	Preferred Equity - Class P-2 Preferred	N/A	N/A	85,164 Shares			8,516		1,970	(9)(13)(16)
	Common Equity - Class A-1 Common	N/A	N/A	3,333 Shares			—		85	(9)(13)(16)
							23,413		19,816
Kauffman
Kauffman Holdco, LLC	Common Equity - Common Stock	N/A	N/A	250,000 Shares			250		98	(9)(13)
Kauffman Intermediate, LLC	First Lien Secured Debt	L+ 650 , 1.00 % Floor	05/08/25		16,281		16,114		15,843	(9)(30)
	First Lien Secured Debt - Revolver	L+ 575 , 1.00 % Floor	05/08/25		1,243		277		277	(9)(21)(23) (28)
							16,641		16,218
MedPlast Holdings Inc.
Viant Medical Holdings, Inc. (fka MedPlast Holdings, Inc.)	Second Lien Secured Debt	L+ 775 , 0.00 % Floor	07/02/26		8,000		7,959		7,607	(26)
		Total Manufacturing, Capital Equipment				$	48,013	$	43,641
Media – Diversified & Production
New Wave Entertainment
NW Entertainment, Inc.	First Lien Secured Debt	L+ 750 Cash plus 2.00 % PIK, 1.00 % Floor	08/16/24	$	29,195	$	28,940	$	29,186	(9)(28)
	First Lien Secured Debt - Revolver	L+ 750 , 1.00 % Floor	08/16/24		3,078		3,050		3,061	(9)(23)(28)
							31,990		32,247
Nitro World Entertainment
NWE OPCO LP	First Lien Secured Debt	L+ 650 , 2.00 % Floor	12/19/22		4,579		4,573		4,572	(9)(26)
Sonar Entertainment
Sonar Entertainment, Inc.	First Lien Secured Debt	L+ 760 , 1.25 % Floor	11/15/21		2,475		2,474		2,019	(9)(11)(26)
	First Lien Secured Debt - Revolver	L+ 760 , 1.25 % Floor	11/15/21		1,604		1,561		1,308	(9)(11)(23) (26)
							4,035		3,327
		Total Media – Diversified & Production				$	40,598	$	40,146

See notes to financial statements.

Table of Contents

MIDCAP FINANCIAL INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS

March 31, 2022

(In thousands, except share data)


Industry / Company	Investment Type	Interest Rate	Maturity Date	Par/Shares (12)		Cost (33)			Fair Value (1)(34)
Retail
IPS
SI Holdings, Inc.	First Lien Secured Debt	L+ 600 , 1.00 % Floor	07/25/25	$	31,005	$	30,645		$	30,780		(9)(26)
	First Lien Secured Debt - Revolver	L+ 600 , 1.00 % Floor	07/25/24		3,413		395			404		(9)(21)(23) (26)
		Total Retail				$	31,040		$	31,184
Telecommunications
Securus Technologies Holdings, Inc.
Securus Technologies Holdings, Inc.	Second Lien Secured Debt	L+ 825 , 1.00 % Floor	11/01/25	$	7,128	$	7,119		$	6,843		(28)
		Total Telecommunications				$	7,119		$	6,843
Transportation – Cargo, Distribution
Beacon Mobility
Beacon Mobility Corp.	First Lien Secured Debt	L+ 550 , 1.00 % Floor	05/22/24	$	28,266	$	13,227		$	13,429		(9)(21)(23) (28)
	First Lien Secured Debt - Revolver	P+ 450	05/22/24		4,145		597			635		(9)(20)(21) (23)(25)
	First Lien Secured Debt - Revolver	L+ 400 , 0.00 % Floor	05/22/24		50,000		—			—		(9)(22)(23)
							13,824			14,064
Dynamic Product Tankers (Prime), LLC
Dynamic Product Tankers, LLC (5)	Common Equity - Class A Units	N/A	N/A	N/A			44,432			3,110		(13)(17)(19) (24)
Heniff and Superior
Heniff Holdco, LLC	First Lien Secured Debt	L+ 575 , 1.00 % Floor	12/03/26		30,453		30,019			29,582		(9)(26)
	First Lien Secured Debt - Revolver	L+ 575 , 1.00 % Floor	12/03/24		3,925		1,331			1,295		(9)(20)(21) (23)(26)
							31,350			30,877
MSEA Tankers LLC
MSEA Tankers LLC (5)	Common Equity - Class A Units	N/A	N/A	N/A			50,258			34,274		(17)(18)(24)
		Total Transportation – Cargo, Distribution				$	139,864		$	82,325
Wholesale
Banner Solutions
Banner Buyer, LLC	First Lien Secured Debt	L+ 575 , 1.00 % Floor	10/31/25	$	17,751	$	15,111		$	15,171		(9)(21)(23) (26)
	First Lien Secured Debt - Revolver	L+ 575 , 1.00 % Floor	10/31/25		1,935		623			631		(9)(21)(23) (26)
Banner Parent Holdings, Inc.	Common Equity - Common Stock	N/A	N/A	6,125 Shares			613			539		(9)(13)
							16,347			16,341
Thomas Scientific
BSP-TS, LP	Common Equity - Common Stock	N/A	N/A	185 Shares			185			190		(9)(13)(24)
Thomas Scientific, LLC	First Lien Secured Debt	L+ 625 , 1.00 % Floor	12/14/27		31,785		26,056			26,283		(9)(21)(23) (29)
	First Lien Secured Debt - Revolver	L+ 625 , 1.00 % Floor	12/14/27		2,963		( 56	)		( 30	)	(8)(9)(21) (23)
							26,185			26,443
		Total Wholesale				$	42,532		$	42,784
Total Investments						$	2,745,829		$	2,523,173		(6)(7)

(1)

Fair value is determined in good faith by or under the direction of the Board of Directors of the Company (See Note 2 to the financial statements).

(2)

Preferred and ordinary shares in Solarplicity UK Holdings Limited are GBP denominated equity investments. Common shares in 1244311 B.C. Ltd. are CAD denominated equity investments.

See notes to financial statements.

Table of Contents

MIDCAP FINANCIAL INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS

March 31, 2022

(In thousands, except share data)

(3)

Denotes investments in which the Company owns greater than 25 % of the equity, where the governing documents of each entity preclude the Company from exercising a controlling influence over the management or policies of such entity. The Company does not have the right to elect or appoint more than 25 % of the directors or another party has the right to elect or appoint more directors than the Company and has the right to appoint certain members of senior management. Therefore, the Company has determined that these entities are not controlled affiliates. As of March 31, 2022, we had a 100 % equity ownership interest in Golden Bear 2016-R, LLC, a collateralized loan obligation, and 26 % equity ownership interest in Carbonfree Chemicals SA LLC.

(4)

Denotes investments in which we are an “Affiliated Person,” as defined in the 1940 Act, due to holding the power to vote or owning 5 % or more of the outstanding voting securities of the investment but not controlling the company. Fair value as of March 31, 2021 and March 31, 2022 along with transactions during the year ended March 31, 2022 in these affiliated investments are as follows:


Name of Issuer	Fair Value at March 31, 2021			Gross Additions ●			Gross Reductions ■				Net Change in Unrealized Gains (Losses)				Fair Value at March 31, 2022			Net Realized Gains (Losses)			Interest/ Dividend/ Other Income
1244311 B.C. Ltd., Common Stock	$	1,719	$		—	$		—		$		( 743	)	$		976	$		—	$		—
1244311 B.C. Ltd., Term Loan		3,822			63			( 15	)			( 70	)			3,800			—			245
9357-5991 Quebec Inc., Term Loan		—			—			( 215	)			—				—			215			—
AIC SPV Holdings II, LLC, Preferred Equity		498			—			—				( 143	)			355			—			109
Carbonfree Chemicals Holdings LLC, Common Stock		25,424			904			—				15,789				42,117			—			—
Carbonfree Chemicals SA LLC, Class B Units		—			—			—				—				—			—			—
Golden Bear 2016-R, LLC, Membership Interests		11,289			186			—				( 1,437	)			10,038			—			1,181
GSC Technologies Inc., Term Loan		—			221			( 15	)			( 14	)			192			—			16
KLO Acquisition LLC, Term Loan		—			—			( 327	)			1				—			326			—
Pelican Energy, LLC, Common Stock		2,170			—			( 3,701	)			2,161				630			—			—
Renew Financial LLC (f/k/a Renewable Funding, LLC), Series B Preferred Stock		42			—			—				( 42	)			—			—			—
Renew Financial LLC (f/k/a Renewable Funding, LLC), Series D Preferred Stock		28			—			—				( 28	)			—			—			—
Renew Financial LLC (f/k/a Renewable Funding, LLC), Series E Preferred Stock		5,106			—			—				( 118	)			4,988			—			—
Renew JV LLC, Membership Interests		776			—			( 205	)			42				613			—			—
	$	50,874	$		1,374	$		( 4,478	)	$		15,398		$		63,709	$		541	$		1,551

____________________

See notes to financial statements.

Table of Contents

MIDCAP FINANCIAL INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS

March 31, 2022

(In thousands, except share data)

(5)

Denotes investments in which we are deemed to exercise a controlling influence over the management or policies of a company, as defined in the 1940 Act, due to beneficially owning, either directly or through one or more controlled companies, more than 25 % of the outstanding voting securities of the investment. Fair value as of March 31, 2021 and March 31, 2022 along with transactions during the year ended March 31, 2022 in these controlled investments are as follows:


Name of Issuer	Fair Value at March 31, 2021			Gross Additions ●			Gross Reductions ■				Net Change in Unrealized Gains (Losses)				Fair Value at March 31, 2022			Net Realized Gains (Losses)				Interest/ Dividend/ Other Income
Majority Owned Company
ChyronHego Corporation, Preferred Equity	$	6,151	$		—	$		—		$		9,402		$		15,553	$		—		$		—
ChyronHego Corporation, Revolver		2,226			4,750			—				100				7,076			—				316
ChyronHego Corporation, Term Loan		81,676			5,230			( 205	)			268				86,969			—				6,692
Dynamic Product Tankers, LLC, Common Stock		25,528			—			( 5,374	)			( 17,044	)			3,110			—				—
Dynamic Product Tankers, LLC, Unsecured Term Loan		22,000			—			( 22,000	)			—				—			—				959
Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.), Common Stock		—			—			—				—				—			—				—
Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.), Term Loan		8,111			—			( 8,542	)			27,561				6,204			( 20,926	)			—
Merx Aviation Finance, LLC, Letter of Credit		—			—			—				—				—			—				—
Merx Aviation Finance, LLC, Membership Interests		125,061			—			( 84,500	)			( 17,052	)			23,509			—				—
Merx Aviation Finance, LLC, Revolver		190,500			89,500			( 5,000	)			—				275,000			—				25,419
MSEA Tankers LLC, Class A Units		57,028			—			( 7,403	)			( 15,351	)			34,274							2,059
Controlled Company												—
SHD Oil & Gas, LLC, Series C Units		—			44,065			—				( 39,413	)			4,652			—				—
SHD Oil & Gas, LLC, Series A Units		—			—			—				—				—			—				—
SHD Oil & Gas, LLC, Tranche A Note		9,899			—			( 44,065	)			34,159				—			7
SHD Oil & Gas, LLC, Tranche B Note		—			—			—				44,380				—			( 44,380	)			—
SHD Oil & Gas, LLC, Tranche C Note		25,470			—			—				—				25,470			—				3,009
	$	553,650	$		143,545	$		( 177,089	)	$		27,010		$		481,817	$		( 65,299	)	$		38,454

____________________

As of March 31, 2022, the Company had a 87 %, 85 %, 96 %, 100 %, 98 % and 38 % equity ownership interest in ChyronHego Corporation; Dynamic Product Tankers, LLC; Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.); Merx Aviation Finance, LLC; MSEA Tankers, LLC; and SHD Oil & Gas, LLC ( f/k/a Spotted Hawk Development LLC), respectively.

See notes to financial statements.

Table of Contents

MIDCAP FINANCIAL INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS

March 31, 2022

(In thousands, except share data)

(6)

Aggregate gross unrealized gain and loss for federal income tax purposes is $ 58,579 and $ 303,980 , respectively. Net unrealized loss is $ 245,401 based on a tax cost of $ 2,798,608 .

(7)

(8)

The negative fair value is the result of the commitment being valued below par.

(9)

(10)

(11)

The maturity date for this investment was November 15, 2021 . The investment is expected to be paid down in a series of payments subsequent to the stated maturity date.

(12)

Par amount is denominated in USD unless otherwise noted, Euro (“€”), British Pound (“£”), Canadian Dollar (“C$”), and Australian Dollar (“A$”) .

(13)

Non-income producing security.

(14)

Non-accrual status (See Note 2 to the financial statements).

(15)

The underlying investments of AIC SPV Holdings II, LLC is a securitization in which the Company owns preferred shares representing 14.25 % economic interest.

(16)

AIC Spotted Hawk Holdings, LLC, AIC SHD Holdings, LLC, AIC Pelican Holdings, LLC, AP Surf Investments, LLC and AIC SB Holdings LLC are wholly-owned special purpose vehicles which only hold investments of the underlying portfolio companies and have no other significant assets or liabilities. AIC Spotted Hawk Holdings, LLC holds equity and debt investments in SHD Oil & Gas, LLC. AIC SHD Holdings LLC holds equity investments in SHD Oil & Gas, LLC. and equity investments in both Carbonfree Chemicals Holdings, LLC and Carbonfree Chemicals SA, LLC. AIC Pelican Holdings, LLC holds an equity investment in Pelican Energy, LLC. AP Surf Investments, LLC holds equity investments in Surf Opco, LLC. AIC SB Holdings LLC holds equity investments in Gainline Galaxy Holdngs LLC.

(17)

Investments that the Company has determined are not “qualifying assets” under Section 55(a) of the 1940 Act. Under the 1940 Act, we may not acquire any non-qualifying asset unless, at the time such acquisition is made, qualifying assets represent at least 70% of our total assets. The status of these assets under the 1940 Act is subject to change. The Company monitors the status of these assets on an ongoing basis. As of March 31, 2022, non-qualifying assets represented approximately 11.00 % of the total assets of the Company.

(18)

As of March 31, 2022, MSEA Tankers, LLC had various classes of limited liability interests outstanding of which the Company holds Class A-1 and Class A-2 units which are identical except that Class A-1 unit is voting and Class A-2 unit is non-voting. The units entitle the Company to appoint two out of three managers to the board of managers.

(19)

As of March 31, 2022, Dynamic Product Tankers, LLC had various classes of limited liability interests outstanding of which the Company holds Class A-1 and Class A-3 units which are identical except that Class A-1 unit is voting and Class A-3 unit is non-voting. The units entitle the Company to appoint three out of five managers to the board of managers.

(20)

As of March 31, 2022, there were letters of credit issued and outstanding through the Company under this first lien senior secured revolving loan.

(21)

The undrawn portion of these committed revolvers and delayed draw term loans includes a commitment and unused fee rate.

(22)

See notes to financial statements.

Table of Contents

MIDCAP FINANCIAL INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS

March 31, 2022

(In thousands, except share data)

(23)

As of March 31, 2022, the Company had the following commitments to fund various revolving and delayed draw senior secured and subordinated loans, including commitments to issue letters of credit through a financial intermediary on behalf of certain portfolio companies. Such commitments are subject to the satisfaction of certain conditions set forth in the documents governing these loans and letters of credit and there can be no assurance that such conditions will be satisfied. See Note 8 to the financial statements for further information on revolving and delayed draw loan commitments, including commitments to issue letters of credit, related to certain portfolio companies.


Name of Issuer	Total Commitment			Drawn Commitment			Letters of Credit **			Undrawn Commitment
A&V Holdings Midco, LLC	$	1,505	$		—	$		—	$		1,505
Activ Software Holdings, LLC		2,407		—			—				2,407
Alpinex Opco, LLC		5,585		—			—				5,585
AMI US Holdings Inc.		2,907			1,163		—				1,744
Analogic Corporation		1,826			1,304		—				522
AQ Sunshine, Inc.		5,039			286			23			4,730
Banner Buyer, LLC		4,387			645		—				3,742
Beacon Mobility Corp.		68,713			674			28,335			39,704
Berner Food & Beverage, LLC		2,881			1,325		—				1,556
Bird US Opco, LLC		25,680		—			—				25,680
Cerus Corporation		1,500			672		—				828
ChyronHego Corporation		8,000			7,156		—				844
Club Car Wash Operating, LLC		8,971		—			—				8,971
Compu-Link Corporation		2,273		—			—				2,273
Digital.ai Software Holdings, Inc.		2,419			806		—				1,613
EHL Merger Sub, LLC		4,155		—			—				4,155
Eldrickco Limited*		6,088			467		—				5,621
EmpiRx Health LLC		909		—			—				909
Erickson Inc		36,000			27,388			960			7,652
First Heritage Credit, LLC		9,000			1,160		—				7,840
Flock SPV I, LLC		8,000			1,867		—				6,133
Forge Biologics, Inc.		23,334		—			—				23,334
FPG Services, LLC		6,810		—			—				6,810
Gabriel Partners, LLC		665			133		—				532
GB001, Inc.		24,000		—			—				24,000
Go Car Wash Management Corp.		2,439		—			—				2,439
Graffiti Buyer, Inc.		3,920			414		—				3,506
Guernsey Holdings SDI LA LLC		1,167		—			—				1,167
Gutter Buyer, Inc.		2,727			2,045			94			588
Heniff Holdco, LLC		3,925			1,374			281			2,270
High Street Buyer, Inc.		2,203		—			—				2,203
Hive Intermediate, LLC		2,326		—			—				2,326
HRO (Hero Digital) Holdings, LLC		10,213		—				31			10,182
HSI HALO Acquisition, Inc.		3,492			136		—				3,356
IMA Group Management Company, LLC		4,277			260		—				4,017
Jacent Strategic Merchandising		3,500			3,494		—				6
JF Acquisition, LLC		1,569		—			—				1,569
Kauffman Intermediate, LLC		1,243			311		—				932
KDC US Holdings		6,020			692			40			5,288
Keystone Acquisition Corp.		2,935		—			—				2,935
Kindeva Drug Delivery L.P.		167			150		—				17
KL Charlie Acquisition Company		9,962		—			—				9,962
Kure Pain Holdings, Inc.		2,654		—			—				2,654
Lash OpCo, LLC		3,136		—			—				3,136
LendingPoint LLC		13,244			8,333		—				4,911
Lifelong Learner Holdings, LLC		2,985			2,982		—				3
Liqui-Box Holdings, Inc.		3,560			2,036			79			1,445
LS Clinical Services Holdings, Inc.		1,875			281		—				1,594
Magnate Holding Corp.		3,150			3,150		—			—
Mannkind Corporation		30,000		—			—				30,000
Marlin DTC-LS Midco 2, LLC		685		—			—				685
Maxor National Pharmacy Services, LLC		1,558		—			—				1,558
Medical Guardian, LLC		8,572		—			—				8,572

See notes to financial statements.

Table of Contents

MIDCAP FINANCIAL INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS

March 31, 2022

(In thousands, except share data)


Name of Issuer	Total Commitment			Drawn Commitment			Letters of Credit **			Undrawn Commitment
MEP-TS Midco, LLC		1,452		—			—				1,452
Merx Aviation Finance, LLC		275,177			275,000			177		—
Midwest Vision Partners Management, LLC		3,029			612		—				2,417
Momentx Corporation		1,257		—			—				1,257
Naviga Inc. (fka Newscycle Solutions, Inc.)		500			280		—				220
Nemo (BC) Bidco Pty Ltd*		174		—			—				174
New Era Technology, Inc.		3,147			612		—				2,535
Norvax, LLC		3,182			2,466		—				716
NW Entertainment, Inc.		3,078			3,078		—			—
Orchard Therapeutics PLC		22,333		—			—				22,333
Ortega National Parks, LLC		8,251		—			—				8,251
Pace Health Companies, LLC		500		—				105			395
Paladone Group Bidco Limited		3,295		—			—				3,295
Paladone Group Bidco Limited*		464		—			—				464
Papershop Holdco Inc.		3,082			1,524		—				1,558
Paragon 28, Inc.		4,500		—			—				4,500
Partner Therapeutics, Inc		1,000		—			—				1,000
PHS Buyer, Inc.		2,000			400		—				1,600
Precision Refrigeration & Air Conditioning LLC		1,705		—			—				1,705
Premier Imaging, LLC		4,680		—			—				4,680
Project Comfort Buyer, Inc.		3,462		—			—				3,462
Protein For Pets Opco, LLC		2,219		—			—				2,219
Pro-Vigil Holding Company, LLC		3,733		—			—				3,733
Purchasing Power Funding I, LLC		9,113			1,142		—				7,971
Radius Health, Inc.		5,833		—			—				5,833
Roscoe Medical, Inc		1,393			819		—				574
Shelby 2021 Holdings Corp.		2,436		—			—				2,436
SI Holdings, Inc.		3,413			427		—				2,986
Simeio Group Holdings, Inc.		1,731		—			—				1,731
Sirsi Corporation		429		—			—				429
Sonar Entertainment, Inc.		1,604			1,604		—			—
Springbrook Holding Company, LLC		1,463		—			—				1,463
Surf Opco, LLC		16,667			11,564			334			4,769
Telesoft Holdings, LLC		2,273		—			—				2,273
Ten-X, LLC		4,680		—			—				4,680
TGG TS Acquisition Company		1,750			750		—				1,000
The Emmes Company, LLC		2,449			2,449		—			—
THLP CO. LLC		4,494			1,202			79			3,213
Thomas Scientific, LLC		8,148		—			—				8,148
TNT Crust LLC		3,252			3,101		—				151
Truck-Lite Co., LLC		4,175			262			81			3,832
Turbo Buyer, Inc.		923		—			—				923
U.S. Auto Finance, Inc.		24,013			2,417		—				21,596
Ultimate Baked Goods Midco LLC		3,243			2,027			365			851
Unchained Labs, LLC		5,565		—			—				5,565
Upstack Holdco Inc.		6,600		—				110			6,490
USLS Acquisition, Inc.		1,608			750			94			764
WelldyneRX, LLC		1,923		—			—				1,923
Westfall Technik, Inc.		2,019			2,019		—			—
Wildcat BuyerCo, Inc.		1,854		—			—				1,854
Total Commitments	$	871,829	$		385,209	$		31,188	$		455,432

____________________

* These investments are in a foreign currency and the total commitment has been converted to USD using the March 31, 2022 exchange rate.

** For all letters of credit issued and outstanding on March 31, 2022, $ 1,910 will expire in 2022 , $ 29,263 will expire in 2023 and $ 15 will expire in 2024 .

See notes to financial statements.

Table of Contents

MIDCAP FINANCIAL INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS

March 31, 2022

(In thousands, except share data)

(24)

Securities that are exempt from registration under the Securities Act of 1933 (the “Securities Act”), and may be deemed to be “restricted securities” under the Securities Act. As of March 31, 2022, the aggregate fair value of these securities is $ 135,545 or 13.50 % of the Company's net assets. The acquisition dates of the restricted securities are as follows:


Issuer	Investment Type	Acquisition Date
1244311 B.C. Ltd.	Common Equity - Common Stock	9/30/2020
AIC SPV Holdings II, LLC	Preferred Equity - Preferred Stock	6/1/2017
BSP-TS, LP	Common Equity - Common Stock	12/14/2021
Carbonfree Chemicals Holdings LLC	Common Equity - Common Equity / Interest	11/19/2019
Carbonfree Chemicals SA LLC	Common Equity - Class B Units	11/1/2019
ChyronHego Corporation	Preferred Equity - Preferred Equity	12/29/2020
Dynamic Product Tankers, LLC	Common Equity - Class A Units	4/8/2015
FCP-Hive Holdings, LLC	Common Equity - Common Stock	9/22/2021
FCP-Hive Holdings, LLC	Preferred Equity - Preferred Equity	9/22/2021
Gainline Galaxy Holdings LLC	Common Equity - Common Stock	11/12/2021
Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.)	Common Equity - Common Stock	3/29/2016
Graffiti Parent, LP	Common Equity - Common Stock	8/10/2021
HRO Holdings I LP	Common Equity - Common Stock	11/18/2021
Merx Aviation Finance, LLC	Common Equity - Membership Interests	7/1/2021
MSEA Tankers LLC	Common Equity - Class A Units	12/12/2014
Owl Parent Holdings, LLC	Common Equity - Common Stock	2/4/2022
Paladone Group Holdings Limited	Common Equity - Common Stock	11/12/2021
Pelican Energy, LLC	Common Equity - Membership Interests	3/28/2012
Renew Financial LLC (f/k/a Renewable Funding, LLC)	Preferred Equity - Series E Preferred Stock	12/23/2020
Renew Financial LLC (f/k/a Renewable Funding, LLC)	Preferred Equity - Series D Preferred Stock	10/1/2015
Renew Financial LLC (f/k/a Renewable Funding, LLC)	Preferred Equity - Series B Preferred Stock	4/9/2014
Renew JV LLC	Common Equity - Membership Interests	9/5/2019
RMCF IV CIV XXXV, L.P.	Common Equity - Common Stock	6/8/2021
SHD Oil & Gas, LLC	Common Equity - Series C Units	12/27/2012
SHD Oil & Gas, LLC	Common Equity - Series A Units	11/18/2016
SMC IR Holdings, LLC	Common Equity - Common Stock	3/8/2022

(25)

The interest rate on these loans is subject to Prime, which as of March 31, 2022 was 3.50 %

(26)

The interest rate on these loans is subject to 1 month LIBOR, which as of March 31, 2022 was 0.45 %

(27)

The interest rate on these loans is subject to SOFR, which as of March 31, 2022 was 0.29 %

(28)

The interest rate on these loans is subject to 3 months LIBOR, which as of March 31, 2022 was 0.96 %

(29)

The interest rate on these loans is subject to 6 months LIBOR, which as of March 31, 2022 was 1.47 %

(30)

The interest rate on these loans is subject to 12 months LIBOR, which as of March 31, 2022 was 2.10 %

(31)

The interest rate on these loans is subject to SONIA, which as of March 31, 2022 was 0.69 %

(32)

The interest rate on these loans is subject to 6 months BBSW, which as of March 31, 2022 was 0.71 %

See notes to financial statements.

Table of Contents

MIDCAP FINANCIAL INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS

March 31, 2022

(In thousands, except share data)

(33)

The following shows the composition of the Company’s portfolio at cost by control designation, investment type and industry as of March 31, 2022:


Industry	First Lien - Secured Debt		Second Lien - Secured Debt		Unsecured Debt		Structured Products and Other		Preferred Equity		Common Equity/Interests		Warrants		Total
Non-Controlled / Non-Affiliated Investments
Advertising, Printing & Publishing	$	41,379	$	—	$	—	$	—	$	—	$	432	$	—	$	41,811
Aerospace & Defense		27,378		—		—		—		—		—		—		27,378
Automotive		54,077		23,605		—		—		—		350		—		78,032
Aviation and Consumer Transport		17,179		—		—		—		—		—		—		17,179
Beverage, Food & Tobacco		127,010		—		—		—		448		2,208				129,666
Business Services		213,118		68,216		—		—		89		1,890		—		283,313
Chemicals, Plastics & Rubber		23,041		—		—		—		—		—		—		23,041
Construction & Building		30,116		—		—		—		—		500		—		30,616
Consumer Goods – Durable		15,712		—		—		—		—		107		—		15,819
Consumer Goods – Non-Durable		72,959		1,716		—		—		462		2,134		—		77,271
Consumer Services		173,065		—		—		—		—		—		—		173,065
Diversified Investment Vehicles, Banking, Finance, Real Estate		44,427		—		—		—		—		—		—		44,427
Education		36,322		—		—		—		—		—		—		36,322
Energy – Electricity		7,231		—		—		—		5,623		4		—		12,858
Environmental Industries		8,129		—		—		—		—		—		—		8,129
Healthcare & Pharmaceuticals		402,558		—		—		—		333		1,015		135		404,041
High Tech Industries		283,974		—		—		—		—		1,000		—		284,974
Hotel, Gaming, Leisure, Restaurants		19,648		—		—		—		—		—		—		19,648
Insurance		79,842		—		—		—		—		—		—		79,842
Manufacturing, Capital Equipment		27,954		7,959		—		—		11,850		250		—		48,013
Media – Diversified & Production		40,598		—		—		—		—		—		—		40,598
Retail		31,040		—		—		—		—		—		—		31,040
Telecommunications		—		7,119		—		—		—		—		—		7,119
Transportation – Cargo, Distribution		45,174		—		—		—		—		—		—		45,174
Wholesale		41,735		—		—		—		—		797		—		42,532
Total Non-Controlled / Non-Affiliated Investments	$	1,863,666	$	108,615	$	—	$	—	$	18,805	$	10,687	$	135	$	2,001,908
Non-Controlled / Affiliated Investments
Chemicals, Plastics & Rubber	$	—	$	—	$	—	$	—	$	—	$	78,729	$	—	$	78,729
Consumer Goods – Durable		4,263		—		—		—		—		1,000		—		5,263
Diversified Investment Vehicles, Banking, Finance, Real Estate		—		—		—		16,998		—		—		—		16,998
Energy – Electricity		—		—		—		—		16,347		467		—		16,814
Energy – Oil & Gas		—		—		—		—		—		13,062		—		13,062
Total Non-Controlled / Affiliated Investments	$	4,263	$	—	$	—	$	16,998	$	16,347	$	93,258	$	—	$	130,866
Controlled Investments
Aviation and Consumer Transport	$	275,000	$	—	$	—	$	—	$	—	$	35,800	$	—	$	310,800
Energy – Oil & Gas		24,728		7,458		—		—		—		75,555		—		107,741
High Tech Industries		93,824		—		—		—		6,000		—		—		99,824
Transportation – Cargo, Distribution		—		—		—		—		—		94,690		—		94,690
Total Controlled Investments	$	393,552	$	7,458	$	—	$	—	$	6,000	$	206,045	$	—	$	613,055
Total	$	2,261,481	$	116,073	$	—	$	16,998	$	41,152	$	309,990	$	135	$	2,745,829

See notes to financial statements.

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MIDCAP FINANCIAL INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS

March 31, 2022

(In thousands, except share data)

(34)

The following shows the composition of the Company’s portfolio at fair value by control designation, investment type and industry as of March 31, 2022:


Industry	First Lien - Secured Debt			Second Lien - Secured Debt			Unsecured Debt			Structured Products and Other			Preferred Equity			Common Equity/Interests			Warrants			Total			% of Net Assets
Non-Controlled / Non-Affiliated Investments
Advertising, Printing & Publishing	$	41,717		$	—		$	—		$	—		$	—		$	565		$	—		$	42,282			4.2	%
Aerospace & Defense		27,027			—			—			—			—			—			—			27,027			2.7	%
Automotive		53,304			19,725			—			—			—			420			—			73,449			7.3	%
Aviation and Consumer Transport		17,271			—			—			—			—			—			—			17,271			1.7	%
Beverage, Food & Tobacco		126,777			—			—			—			484			3,081			—			130,342			13.0	%
Business Services		212,157			55,508			—			—			89			2,483			—			270,237			26.9	%
Chemicals, Plastics & Rubber		22,786			—			—			—			—			—			—			22,786			2.3	%
Construction & Building		30,182			—			—			—			—			1,226			—			31,408			3.1	%
Consumer Goods – Durable		15,858			—			—			—			—			505			—			16,363			1.6	%
Consumer Goods – Non-durable		72,874			1,957			—			—			37			2,018			—			76,886			7.7	%
Consumer Services		174,245			—			—			—			—			—			—			174,245			17.3	%
Diversified Investment Vehicles, Banking, Finance, Real Estate		44,603			—			—			—			—			—			—			44,603			4.4	%
Education		39,059			—			—			—			—			—			—			39,059			3.9	%
Energy – Electricity		1,874			—			—			—			—			—			—			1,874			0.2	%
Environmental Industries		8,226			—			—			—			—			—			—			8,226			0.8	%
Healthcare & Pharmaceuticals		402,851			—			—			—			343			3,004			99			406,297			40.4	%
High Tech Industries		284,533			—			—			—			—			1,430			—			285,963			28.4	%
Hotel, Gaming, Leisure, Restaurants		19,643			—			—			—			—			—			—			19,643			2.0	%
Insurance		80,147			—			—			—			—			—			—			80,147			8.0	%
Manufacturing, Capital Equipment		27,539			7,607			—			—			8,313			182			—			43,641			4.3	%
Media – Diversified & Production		40,146			—			—			—			—			—			—			40,146			4.0	%
Retail		31,184			—			—			—			—			—			—			31,184			3.1	%
Telecommunications		—			6,843			—			—			—			—			—			6,843			0.7	%
Transportation – Cargo, Distribution		44,941			—			—			—			—			—			—			44,941			4.5	%
Wholesale		42,055			—			—			—			—			729			—			42,784			4.3	%
Total Non-Controlled / Non-Affiliated Investments	$	1,860,999		$	91,640		$	—		$	—		$	9,266		$	15,643		$	99		$	1,977,647			196.8	%
% of Net Assets		185.2	%		9.1	%		—	%		—	%		0.9	%		1.6	%		—	%		196.8	%
Non-Controlled / Affiliated Investments
Chemicals, Plastics & Rubber	$	—		$	—		$	—		$	—		$	—		$	42,117		$	—		$	42,117			4.1	%
Consumer Goods – Durable		3,992			—			—			—			—			976			—			4,968			0.5	%
Diversified Investment Vehicles, Banking, Finance, Real Estate		—			—			—			10,038			—			—			—			10,038			1.0	%
Energy – Electricity		—			—			—			—			5,343			613			—			5,956			0.6	%
Energy – Oil & Gas		—			—			—			—			—			630			—			630			0.1	%
Total Non-Controlled / Affiliated Investments	$	3,992		$	—		$	—		$	10,038		$	5,343		$	44,336		$	—		$	63,709			6.3	%
% of Net Assets		0.4	%		—	%		—	%		1.0	%		0.5	%		4.4	%		—	%		6.3	%
Controlled Investments

See notes to financial statements.

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MIDCAP FINANCIAL INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS

March 31, 2022

(In thousands, except share data)


Industry	First Lien - Secured Debt			Second Lien - Secured Debt			Unsecured Debt			Structured Products and Other			Preferred Equity			Common Equity/Interests			Warrants			Total			% of Net Assets
Aviation and Consumer Transport	$	275,000		$	—		$	—		$	—		$	—		$	23,509		$	—		$	298,509			29.7	%
Energy – Oil & Gas		25,470			6,204			—			—			—			4,652			—			36,326			3.6	%
High Tech Industries		94,045			—			—			—			15,553			—			—			109,598			10.9	%
Transportation – Cargo, Distribution		—			—			—			—			—			37,384			—			37,384			3.7	%
Total Controlled Investments	$	394,515		$	6,204		$	—		$	—		$	15,553		$	65,545		$	—		$	481,817			47.9	%
% of Net Assets		39.3	%		0.6	%		—	%		—	%		1.5	%		6.5	%		—	%		47.9	%
Total	$	2,259,506		$	97,844		$	—		$	10,038		$	30,162		$	125,524		$	99		$	2,523,173			251.0	%
% of Net Assets		224.9	%		9.7	%		—	%		1.0	%		2.9	%		12.5	%		0.0	%		251.0	%

See notes to financial statements.

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MIDCAP FINANCIAL INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS

March 31, 2022

(In thousands, except share data)


Industry Classification		Percentage of Total Investments (at Fair Value) as of March 31, 2022
Healthcare & Pharmaceuticals		16.1 %
High Tech Industries		15.7 %
Aviation and Consumer Transport		12.5 %
Business Services		10.7 %
Consumer Services		6.9 %
Beverage, Food & Tobacco		5.2 %
Transportation – Cargo, Distribution		3.3 %
Insurance		3.2 %
Consumer Goods – Non-durable		3.0 %
Automotive		2.9 %
Chemicals, Plastics & Rubber		2.6 %
Diversified Investment Vehicles, Banking, Finance, Real Estate		2.2 %
Manufacturing, Capital Equipment		1.7 %
Wholesale		1.7 %
Advertising, Printing & Publishing		1.7 %
Media – Diversified & Production		1.6 %
Education		1.5 %
Energy – Oil & Gas		1.5 %
Construction & Building		1.2 %
Retail		1.2 %
Aerospace & Defense		1.1 %
Consumer Goods – Durable		0.8 %
Hotel, Gaming, Leisure, Restaurants		0.8 %
Environmental Industries		0.3 %
Energy – Electricity		0.3 %
Telecommunications		0.3 %
Total Investments		100.0 %

See notes to financial statements.

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MIDCAP FINANCIAL INVESTMENT CORPORATION

NOTES TO FINANCIAL STATEMENTS (Unaudited)

(In thousands, except share and per share data)

Note 1. Organization

MidCap Financial Investment Corporation (the “Company,” “MFIC,” “we,” “us,” or “our”), a Maryland corporation incorporated on February 2, 2004, is a closed-end, externally managed, non-diversified management investment company that has elected to be treated as a business development company (“BDC”) under the Investment Company Act of 1940 (the “1940 Act”). In addition, for tax purposes we have elected to be treated as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). We commenced operations on April 8, 2004 receiving net proceeds of $ 870,000 from our initial public offering by selling 62 million shares of common stock at a price of $ 15.00 per share ( 20.7 million shares at a price of $ 45.00 per share adjusted for the one-for- three reverse stock split). Since then, and through September 30, 2022, we have raised approximately $ 2,240,067 in net proceeds from additional offerings of common stock and repurchased common stock for $ 245,810 .

On August 1, 2022, the Company changed its name from "Apollo Investment Corporation" to "MidCap Financial Investment Corporation". Our common stock began to trade under the ticker “MFIC” on the NASDAQ Global Stock Market on August 12, 2022.

Apollo Investment Administration, LLC (the “Administrator” or “AIA”), an affiliate of AGM, provides, among other things, administrative services and facilities for the Company. Furthermore, AIA provides on our behalf managerial assistance to those portfolio companies to which we are required to provide such assistance.

Our investment objective is to generate current income and capital appreciation. We invest primarily in various forms of debt investments, including secured and unsecured debt, loan investments, and/or equity in private middle-market companies. We may also invest in the securities of public companies and in structured products and other investments such as collateralized loan obligations (“CLOs”) and credit-linked notes (“CLNs”). Our portfolio is comprised primarily of investments in debt, including secured and unsecured debt of private middle-market companies that, in the case of senior secured loans, generally are not broadly syndicated and whose aggregate tranche size is typically less than $ 250 million. Our portfolio may include equity interests such as common stock, preferred stock, warrants and/or options.

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MIDCAP FINANCIAL INVESTMENT CORPORATION

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

Note 2. Significant Accounting Policies

The following is a summary of the significant accounting and reporting policies used in preparing the financial statements.

Basis of Presentation

The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) pursuant to the requirements on Form 10-Q, ASC 946, Financial Services — Investment Companies (“ASC 946”), and Articles 6, 10 and 12 of Regulation S-X. In the opinion of management, all adjustments, which are of a normal recurring nature, considered necessary for the fair presentation of the financial statements for the periods presented, have been included.

Under the 1940 Act, ASC 946, and the regulations pursuant to Article 6 of Regulation S-X, we are precluded from consolidating any entity other than another investment company or an operating company which provides substantially all of its services to benefit us.

These financial statements should be read in conjunction with the audited financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended March 31, 2022.

Use of Estimates

The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities at the date of the financial statements and the reported amounts of income, expenses, gains and losses during the reported periods. Changes in the economic environment, financial markets, credit worthiness of our portfolio companies, the global outbreak of a novel coronavirus (COVID-19) which began in 2020 and still persists and any other parameters used in determining these estimates could cause actual results to differ materially.

Cash and Cash Equivalents

The Company defines cash equivalents as securities that are readily convertible into known amounts of cash and near maturity that they present insignificant risk of changes in value because of changes in interest rates. Generally, only securities with a maturity of three months or less from the date of purchase would qualify, with limited exceptions. The Company deems that certain money market funds, U.S. Treasury bills, repurchase agreements, and other high-quality, short-term debt securities would qualify as cash equivalents.

Cash and cash equivalents are carried at cost which approximates fair value. Cash equivalents held as of September 30, 2022 was $ 60,281 . Cash equivalents held as of March 31, 2022 was $ 30,033 .

Collateral on Option Contracts

Collateral on option contracts represents restricted cash held by our counterparty as collateral against our derivative instruments until such contracts mature or are settled upon per agreement of buyer and seller of the contract. In accordance with ASC 230, S tatement of Cash Flows , the Statements of Cash Flows outline the changes in cash, including both restricted and unrestricted cash, cash equivalents and foreign currencies. As of September 30, 2022 and March 31, 2022 the Company did no t hold any derivative contracts.

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MIDCAP FINANCIAL INVESTMENT CORPORATION

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

Investment Transactions

Investments are recognized when we assume an obligation to acquire a financial instrument and assume the risks for gains and losses related to that instrument. Investments are derecognized when we assume an obligation to sell a financial instrument and forego the risks for gains or losses related to that instrument. Specifically, we record all security transactions on a trade date basis. Amounts for investments recognized or derecognized but not yet settled are reported as a receivable for investments sold and a payable for investments purchased, respectively, in the Statements of Assets and Liabilities.

Fair Value Measurements

The Company follows guidance in ASC 820, Fair Value Measurement (“ASC 820”), where fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are determined within a framework that establishes a three-tier hierarchy which maximizes the use of observable market data and minimizes the use of unobservable inputs to establish a classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, such as the risk inherent in a particular valuation technique used to measure fair value using a pricing model and/or the risk inherent in the inputs for the valuation technique. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability based on the information available. The inputs or methodology used for valuing assets or liabilities may not be an indication of the risks associated with investing in those assets or liabilities.

ASC 820 classifies the inputs used to measure these fair values into the following hierarchy:

Level 1: Quoted prices in active markets for identical assets or liabilities, accessible by us at the measurement date.

Level 2: Quoted prices for similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not active, or other observable inputs other than quoted prices.

Level 3: Unobservable inputs for the asset or liability.

In all cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to each investment. The level assigned to the investment valuations may not be indicative of the risk or liquidity associated with investing in such investments. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may differ materially from the values that would be received upon an actual disposition of such investments.

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MIDCAP FINANCIAL INVESTMENT CORPORATION

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

Investment Valuation Process

The Board has designated the Investment Adviser as its "valuation designee" pursuant to Rule 2a-5 under the 1940 Act, and in that role the Investment Adviser is responsible for performing fair value determinations relating to all of the Company's investments, including periodically assessing and managing any material valuation risks and establishing and applying fair value methodologies, in accordance with valuation policies and procedures that have been approved by the Company's Board of Directors (the "Board"). Even though the Company's Board of Directors designated the Company's Investment Adviser as "valuation designee," the Company's Board of Directors continues to be responsible for overseeing the processes for determining fair valuation.

Under the fund's valuation policies and procedures, the Investment Adviser values investments, including certain secured debt, unsecured debt and other debt securities with maturities greater than 60 days, for which market quotations are readily available, at such market quotations (unless they are deemed not to represent fair value). We attempt to obtain market quotations from at least two brokers or dealers (if available, otherwise from a principal market maker, primary market dealer or other independent pricing service). We utilize mid-market pricing as a practical expedient for fair value unless a different point within the range is more representative. If and when market quotations are unavailable or are deemed not to represent fair value, we typically utilize independent third party valuation firms to assist us in determining fair value. Accordingly, such investments go through our multi-step valuation process as described below. In each case, our independent third party valuation firms consider observable market inputs together with significant unobservable inputs in arriving at their valuation recommendations for such investments. Investments purchased within the quarter before the valuation date and debt investments with remaining maturities of 60 days or less may each be valued at cost with interest accrued or discount accreted/premium amortized to the date of maturity (although they are typically valued at available market quotations), unless such valuation, in the judgment of our Investment Adviser, does not represent fair value. In this case such investments shall be valued at fair value as determined in good faith by or under the direction of the Investment Adviser including using market quotations where available. Investments that are not publicly traded or whose market quotations are not readily available are valued at fair value as determined in good faith by or under the direction of the Investment Adviser. Such determination of fair values may involve subjective judgments and estimates.

With respect to investments for which market quotations are not readily available or when such market quotations are deemed not to represent fair value, our Investment Adviser undertakes a multi-step valuation process each quarter, as described below:

Our quarterly valuation process begins with each portfolio company or investment being initially valued by using certain inputs provided, among others, the investment professionals of our Investment Adviser who are responsible for the portfolio investment.

Preliminary valuation conclusions are then documented and discussed with senior management of our Investment Adviser.

Independent valuation firms are engaged by our Board of Directors to conduct independent appraisals by reviewing our Investment Adviser’s preliminary valuations and then making their own independent assessment.

The Investment Adviser discusses valuations and determines in good faith the fair value of each investment in our portfolio based on the input of the applicable independent valuation firm.

For Level 3 investments entered into within the current quarter, the cost (purchase price adjusted for accreted original issue discount/amortized premium) or any recent comparable trade activity on the security investment shall be considered to reasonably approximate the fair value of the investment, provided that no material change has since occurred in the issuer’s business, significant inputs or the relevant environment.

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MIDCAP FINANCIAL INVESTMENT CORPORATION

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

Investments determined by these valuation procedures which have a fair value of less than $ 1 million during the prior fiscal quarter may be valued based on inputs identified by the Investment Adviser without the necessity of obtaining valuation from an independent valuation firm, if once annually an independent valuation firm using the procedures described herein provides an independent assessment of value. Investments in all asset classes are valued utilizing a market approach, an income approach, or both approaches, as appropriate. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities (including a business). The income approach uses valuation techniques to convert future amounts (for example, cash flows or earnings) to a single present amount (discounted). The measurement is based on the value indicated by current market expectations about those future amounts. In following these approaches, the types of factors that we may take into account in fair value pricing our investments include, as relevant: available current market data, including relevant and applicable market trading and transaction comparables, applicable market yields and multiples, security covenants, seniority of investment in the investee company’s capital structure, call protection provisions, information rights, the nature and realizable value of any collateral, the portfolio company’s ability to make payments, its earnings and discounted cash flows, the markets in which the portfolio company does business, comparisons of financial ratios of peer companies that are public, M&A comparables, our principal market (as the reporting entity) and enterprise values, among other factors. When readily available, broker quotations and/or quotations provided by pricing services are considered as an input in the valuation process. During the three months ended September 30, 2022, there were no significant changes to the Company’s valuation techniques and related inputs considered in the valuation process.

Derivative Instruments

The Company recognizes all derivative instruments as assets or liabilities at fair value in its financial statements. Derivative contracts entered into by the Company are not designated as hedging instruments, and as a result the Company presents changes in fair value and realized gains or losses through current period earnings.

Derivative instruments are measured in terms of the notional contract amount and derive their value based upon one or more underlying instruments. Derivative instruments are subject to various risks similar to non-derivative instruments including market, credit, liquidity, and operational risks. The Company manages these risks on an aggregate basis as part of its risk management process. The derivatives may require the Company to pay or receive an upfront fee or premium. These upfront fees or premiums are carried forward as cost or proceeds to the derivatives.

Exchange-traded derivatives which include put and call options are valued based on the last reported sales price on the date of valuation. Over-the-counter (“OTC”) derivatives, including credit default swaps, are valued by the Investment Adviser using quotations from counterparties. In instances where models are used, the value of the OTC derivative is derived from the contractual terms of, and specific risks inherent in, the instrument as well as the availability and reliability of observable inputs, such as credit spreads.

As of September 30, 2022 and March 31, 2022, the Company did no t hold any derivative contracts.

Offsetting Assets and Liabilities

The Company has elected not to offset cash collateral against the fair value of derivative contracts. The fair values of these derivatives are presented on a gross basis, even when derivatives are subject to master netting agreements.

As of September 30, 2022 and March 31, 2022, the Company did no t hold any derivative contracts.

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MIDCAP FINANCIAL INVESTMENT CORPORATION

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

Valuation of Other Financial Assets and Financial Liabilities

ASC 825, Financial Instruments , permits an entity to choose, at specified election dates, to measure certain assets and liabilities at fair value (the “Fair Value Option”). We have not elected the Fair Value Option to report selected financial assets and financial liabilities. Debt issued by the Company is reported at amortized cost (see Note 6 to the financial statements). The carrying value of all other financial assets and liabilities approximates fair value due to their short maturities or their close proximity of the originations to the measurement date.

Realized Gains or Losses

Security transactions are accounted for on a trade date basis. Realized gains or losses on investments are calculated by using the specific identification method. Securities that have been called by the issuer are recorded at the call price on the call effective date.

Investment Income Recognition

The Company records interest and dividend income, adjusted for amortization of premium and accretion of discount, on an accrual basis. Some of our loans and other investments, including certain preferred equity investments, may have contractual payment-in-kind (“PIK”) interest or dividends. PIK income computed at the contractual rate is accrued into income and reflected as receivable up to the capitalization date. PIK investments offer issuers the option at each payment date of making payments in cash or in additional securities. When additional securities are received, they typically have the same terms, including maturity dates and interest rates as the original securities issued. On these payment dates, the Company capitalizes the accrued interest or dividends receivable (reflecting such amounts as the basis in the additional securities received). PIK generally becomes due at maturity of the investment or upon the investment being called by the issuer. At the point the Company believes PIK is not fully expected to be realized, the PIK investment will be placed on non-accrual status. When a PIK investment is placed on non-accrual status, the accrued, uncapitalized interest or dividends are reversed from the related receivable through interest or dividend income, respectively. The Company does not reverse previously capitalized PIK interest or dividends. Upon capitalization, PIK is subject to the fair value estimates associated with their related investments. PIK investments on non-accrual status are restored to accrual status if the Company believes that PIK is expected to be realized.

Investments that are expected to pay regularly scheduled interest and/or dividends in cash are generally placed on non-accrual status when principal or interest/dividend cash payments are past due 30 days or more and/or when it is no longer probable that principal or interest/dividend cash payments will be collected. Such non-accrual investments are restored to accrual status if past due principal and interest or dividends are paid in cash, and in management’s judgment, are likely to continue timely payment of their remaining interest or dividend obligations. Interest or dividend cash payments received on non-accrual designated investments may be recognized as income or applied to principal depending upon management’s judgment.

Loan origination fees, original issue discount (“OID”), and market discounts are capitalized and accreted into interest income over the respective terms of the applicable loans using the effective interest method or straight-line, as applicable. Upon the prepayment of a loan, prepayment premiums, any unamortized loan origination fees, OID, or market discounts are recorded as interest income. Other income generally includes amendment fees, bridge fees, and structuring fees which are recorded when earned.

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MIDCAP FINANCIAL INVESTMENT CORPORATION

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

The Company records as dividend income the accretable yield from its beneficial interests in structured products such as CLOs based upon a number of cash flow assumptions that are subject to uncertainties and contingencies. Such assumptions include the rate and timing of principal and interest receipts (which may be subject to prepayments and defaults) of the underlying pool of assets. These assumptions are updated on at least a quarterly basis to reflect changes related to a particular security, actual historical data, and market changes. A structured product investment typically has an underlying pool of assets. Payments on structured product investments are and will be payable solely from the cash flows from such assets. As such, any unforeseen event in these underlying pools of assets might impact the expected recovery of principal and future accrual of income.

Expenses

Expenses include management fees, performance-based incentive fees, interest expense, insurance expenses, administrative service fees, legal fees, directors’ fees, audit and tax service expenses, third-party valuation fees and other general and administrative expenses. Expenses are recognized on an accrual basis.

Financing Costs

The Company records expenses related to shelf filings and applicable offering costs as deferred financing costs in the Statements of Assets and Liabilities. To the extent such expenses relate to equity offerings, these expenses are charged as a reduction of capital upon utilization, in accordance with ASC 946-20-25, or charged to expense if no offering is completed.

The Company records origination and other expenses related to its debt obligations as deferred financing costs. The deferred financing cost for all outstanding debt is presented as a direct deduction from the carrying amount of the related debt liability, except that incurred under the Senior Secured Facility (as defined in Note 6 to the financial statements), which the Company presents as an asset on the Statements of Assets and Liabilities. These expenses are deferred and amortized as part of interest expense using the straight-line method over the stated life of the obligation which approximates the effective yield method. In the event that we modify or extinguish our debt before maturity, the Company follows the guidance in ASC 470-50, Modification and Extinguishments (“ASC 470-50”). For modifications to or exchanges of our Senior Secured Facility (as defined in Note 6 to the financial statements), any unamortized deferred financing costs relating to lenders who are not part of the new lending group are expensed. For extinguishments of our senior secured notes and senior unsecured notes, any unamortized deferred financing costs are deducted from the carrying amount of the debt in determining the gain or loss from the extinguishment.

Foreign Currency Translations

The accounting records of the Company are maintained in U.S. dollars. All assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the foreign exchange rate on the date of valuation. The Company does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. The Company’s investments in foreign securities may involve certain risks, including without limitation: foreign exchange restrictions, expropriation, taxation or other political, social or economic risks, all of which could affect the market and/or credit risk of the investment. In addition, changes in the relationship of foreign currencies to the U.S. dollar can significantly affect the value of these investments and therefore the earnings of the Company.

Dividends and Distributions

Dividends and distributions to common stockholders are recorded as of the ex-dividend date. The amount to be paid out as a distribution is determined by the Board of Directors each quarter. Net realized capital gains, if any, are generally distributed or deemed distributed at least annually. Dividend income on common equity securities is recorded on the record date for private portfolio companies or on the ex-dividend date for publicly traded portfolio companies.

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MIDCAP FINANCIAL INVESTMENT CORPORATION

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

Share Repurchases

In connection with the Company’s share repurchase program, the cost of shares repurchased is charged to net assets on the trade date.

Federal and State Income Taxes

We have elected to be treated as a RIC under the Code and operate in a manner so as to qualify for the tax treatment applicable to RICs. To qualify as a RIC, the Company must (among other requirements) meet certain source-of-income and asset diversification requirements and timely distribute to its stockholders at least 90 % of its investment company taxable income as defined by the Code, for each year. The Company (among other requirements) has made and intends to continue to make the requisite distributions to its stockholders, which will generally relieve the Company from corporate-level income taxes. For income tax purposes, distributions made to stockholders are reported as ordinary income, capital gains, non-taxable return of capital, or a combination thereof. The tax character of distributions paid to stockholders through September 30, 2022 may include return of capital, however, the exact amount cannot be determined at this point. The final determination of the tax character of distributions will not be made until we file our tax return for the tax year ending March 31, 2023. The character of income and gains that we will distribute is determined in accordance with income tax regulations that may differ from GAAP. Book and tax basis differences relating to stockholder dividend and distributions and other permanent book and tax difference are reclassified to paid-in capital.

If we do not distribute (or are not deemed to have distributed) at least 98 % of our annual ordinary income and 98.2 % of our capital gains in the calendar year earned, we will generally be required to pay excise tax equal to 4 % of the amount by which 98 % of our annual ordinary income and 98.2 % of our capital gains exceed the distributions from such taxable income for the year. To the extent that we determine that our estimated current year annual taxable income will be in excess of estimated current year dividend distributions from such taxable income, we accrue excise taxes, if any, on estimated undistributed taxable income.

If we fail to satisfy the annual distribution requirement or otherwise fail to qualify as a RIC in any taxable year, we would be subject to tax on all of our taxable income at regular corporate rates. Distribution would generally be taxable to our individual and other non-corporate taxable stockholders as ordinary dividend income eligible for the reduced maximum rate applicable to qualified dividend income to the extent of our current and accumulated earnings and profits provided certain holding period and other requirements are met. Subject to certain limitation under the Code, corporate distributions would be eligible for the dividend-received deduction. To qualify again to be taxed as a RIC in a subsequent year, we would be required to distribute to our stockholders our accumulated earnings and profits attributable to non RIC years. In addition, if we failed to qualify as a RIC for a period greater than two taxable years, then, in order to qualify as a RIC in a subsequent year, we would be required to elect to recognize and pay tax on any net built-in gain (the excess of aggregate gain, including items of income, over aggregate loss that would have been realized if we had been liquidated) or, alternatively, be subject to taxation on such built-in gain recognized for a period of five years.

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NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

We follow ASC 740, Income Taxes (“ASC 740”). ASC 740 provides guidance for how uncertain tax positions should be recognized, measured, presented, and disclosed in the financial statements. ASC 740 requires the evaluation of tax positions taken or expected to be taken in the course of preparing our tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold are recorded as a tax benefit or expense in the current year. Penalties or interest, if applicable, that may be assessed relating to income taxes would be classified as other operating expenses in the financial statements. As of September 30, 2022, there were no uncertain tax positions and no amounts accrued for interest or penalties. Management’s determinations regarding ASC 740 may be subject to review and adjustment at a later date based upon factors including, but not limited to, an on-going analysis of tax laws, regulations and interpretations thereof. Although we file both federal and state income tax returns, our major tax jurisdiction is federal.

Retroactive Adjustments for Common Stock Reverse Split

The Company’s Board of Directors approved a one-for- three reverse stock split of the Company’s common stock on October 30, 2018, which was effective as of close of business as of November 30, 2018 (the “Reverse Stock Split”). All common share and common per share amounts in the financial statements and notes thereto have been retroactively adjusted for all periods presented to give effect to this reverse stock split as disclosed in Note 7 .

Recent Accounting Pronouncements

In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848),” which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts, hedging relationships, and other transactions that reference London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform. In January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848), which expanded the scope of Topic 848 to include derivative instruments impacted by discounting transition. ASU 2020-04 and ASU 2021-01 are effective for all entities through December 31, 2022. The expedients and exceptions provided by the amendments do not apply to contract modifications and hedging relationships entered into or evaluated after December 31, 2022, except for hedging transactions as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The Company is currently evaluating the impact of the adoption of ASU 2020-04 and 2021-01 on its consolidated financial statements.

Note 3. Related Party Agreements and Transactions

Investment Advisory Agreement with AIM

The Company has an investment advisory management agreement with the Investment Adviser (the “Investment Advisory Agreement”) under which AIM receives a fee from the Company, consisting of two components — a base management fee and a performance-based incentive fee.

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NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

Base Management Fee

For the period from April 1, 2018 to December 31, 2022, the base management fee is calculated initially at an annual rate of 1.50 % ( 0.375 % per quarter) of the lesser of (i) the average of the value of the Company’s gross assets, net of average of any payable for investments (excluding cash or cash equivalents but including other assets purchased with borrowed amounts) at the end of each of the two most recently completed calendar quarters and (ii) the average monthly value (measured as of the last day of each month) of the Company’s gross assets (excluding cash or cash equivalents but including other assets purchased with borrowed amounts) during the most recently completed calendar quarter; provided, however, in each case, the base management fee is calculated at an annual rate of 1.00 % ( 0.250 % per quarter) of the average of the value of the Company’s gross assets (excluding cash or cash equivalents but including other assets purchased with borrowed amounts) that exceeds the product of (A) 200 % and (B) the value of the Company’s net asset value at the end of the prior calendar quarter. The base management fee will be payable quarterly in arrears. The value of the Company’s gross assets shall be calculated in accordance with the Company's valuation policies.

Beginning on January 1, 2023, the base management fee will be calculated at an annual rate of 1.75 % ( 0.4375 % per quarter) of the Company's net asset value as of the final business day of the prior calendar quarter; provided, however, that the base management fee shall not be greater than 1.50 % ( 0.375 % per quarter) of the lesser of (i) the average of the value of the Company's gross assets (excluding cash or cash equivalents but including other assets purchased with borrowed amounts) at the end of each of the two most recently completed calendar quarters and (ii) the average monthly value (measured as of the last day of each month) of the Company's gross assets (excluding cash or cash equivalents but including other assets purchased with borrowed amounts) during the most recently completed calendar quarter. The base management fee will be payable quarterly in arrears. The value of the Company's gross assets shall be calculated in accordance with the Company's valuation policies.

Performance-based Incentive Fee

The incentive fee (the “Incentive Fee”) consists of two components that are determined independent of each other, with the result that one component may be payable even if the other is not. A portion of the Incentive Fee is based on income and a portion is based on capital gains, each as described below:

A. Incentive Fee based on Income

(i) Incentive Fee on Pre-Incentive Fee Net Income - (January 1, 2019 - December 31, 2022)

For the period from January 1, 2019 to December 31, 2022, the incentive fee on pre-incentive fee net investment income will be determined and paid quarterly in arrears by calculating the amount by which (x) the aggregate amount of the pre-incentive fee net investment income with respect of the current calendar quarter and each of the eleven preceding calendar quarters beginning with the calendar quarter that commences on or after April 1, 2018 (the “trailing twelve quarters”) exceeds (y) the preferred return amount in respect of the trailing twelve quarters.

The preferred return amount will be determined on a quarterly basis, and will be calculated by summing the amounts obtained by multiplying 1.75 % by the Company’s net asset value at the beginning of each applicable calendar quarter comprising the relevant trailing twelve quarters. The preferred return amount will be calculated after making appropriate adjustments to the Company’s net asset value at the beginning of each applicable calendar quarter for Company capital issuances and distributions during the applicable calendar quarter.

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NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

The amount of the Incentive Fee on Income that will be paid to the Investment Adviser for a particular quarter will equal the excess of the incentive fee on pre-incentive fee net investment income, so calculated less the aggregate incentive fee on pre-incentive fee net investment income that were paid to the Investment Adviser (excluding waivers, if any) in the preceding eleven calendar quarters comprising the relevant trailing twelve quarters.

The Company will pay the Investment Adviser an incentive fee with respect to our pre-incentive fee net investment income in each calendar quarter as follows:

(1) no incentive fee in any calendar quarter in which our pre-incentive fee net investment income for the trailing twelve quarters does not exceed the preferred return amount.

(2) 100 % of our pre-incentive fee net investment income for the trailing twelve quarters, if any, that exceeds the preferred return amount but is less than or equal to an amount (the “catch-up amount”) determined by multiplying 2.1875 % by the Company’s net asset value at the beginning of each applicable calendar quarter comprising the relevant trailing twelve quarters.

(3) for any quarter in which the Company’s pre-incentive fee net investment income for the trailing twelve quarters exceeds the catch-up amount, the incentive fee shall equal 20 % of the amount of the Company’s pre-incentive fee net investment income for such trailing twelve quarters.

The Incentive Fee on Income as calculated is subject to a cap (the “Incentive Fee Cap”). The Incentive Fee Cap in any quarter is an amount equal to (a) 20 % of the Cumulative Pre-Incentive Fee Net Return (as defined below) during the relevant trailing twelve quarters less (b) the aggregate Incentive Fees on Income that were paid to the Investment Adviser (excluding waivers, if any) in the preceding eleven calendar quarters (or portion thereof) comprising the relevant trailing twelve quarters.

(ii) Incentive Fee on Pre-Incentive Fee Net Income - effective January 1, 2023

Beginning on January 1, 2023, the Incentive Fee on pre-incentive fee net investment income will be determined and paid quarterly in arrears by calculating the amount by which (x) the aggregate amount of the pre-incentive fee net investment income with respect of the current calendar quarter and each of the eleven preceding calendar quarters (in either case, the “Trailing Twelve Quarters”) exceeds (y) the preferred return amount in respect of the Trailing Twelve Quarters; provided, however, that the pre-incentive fee net investment income in respect of the current calendar quarter exceeds the multiple of (A) 1.75 % and (B) the Company's net asset value at the beginning of such calendar quarter. For the purposes of the Incentive Fee calculations, each calendar quarter comprising the relevant Trailing Twelve Quarters that commenced prior to January 1, 2023 shall be known as a “Legacy Fee Quarter” while a calendar quarter that commenced on or after January 1, 2023 shall be known as a “Current Fee Quarter.”

The preferred return amount will be determined on a quarterly basis, and will be calculated by summing the amounts obtained by multiplying 1.75 % by the Company’s net asset value at the beginning of each applicable calendar quarter comprising the relevant Trailing Twelve Quarters. The preferred return amount will be calculated after making appropriate adjustments to the Company’s net asset value at the beginning of each applicable calendar quarter for Company capital issuances and distributions during the applicable calendar quarter.

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NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

The Company will pay the Investment Adviser an incentive fee with respect to our pre-incentive fee net investment income in each calendar quarter as follows:

(1) no incentive fee in any calendar quarter in which our pre-incentive fee net investment income for the Trailing Twelve Quarters does not exceed the preferred return amount.

(2) 100 % of our pre-incentive fee net investment income for the Trailing Twelve Quarters, if any, that exceeds the preferred return amount but is less than or equal to the catch-up amount, which shall be the sum of (i) the product of 2.1875 % multiplied by the Company's net asset value at the beginning of each applicable Legacy Fee Quarter included in the relevant Trailing Twelve Quarters and (ii) the product of 2.1212 % multiplied by the Company's net asset value at the beginning of each applicable Current Fee Quarter included in the relevant Trailing Twelve Quarters.

(3) for any quarter in which the Company’s pre-incentive fee net investment income for the Trailing Twelve Quarters exceeds the catch-up amount, the incentive fee shall equal 17.50 % of the amount of the Company’s pre-incentive fee net investment income for such Trailing Twelve Quarters, provided, however, that the incentive fee on income for any quarter shall not be greater than 17.50 % of the amount of the Company's current quarter’s pre-incentive fee net investment income.

The Incentive Fee on Income as calculated is subject to the Incentive Fee Cap. The Incentive Fee Cap in any quarter is an amount equal to (a) 20 % of the Cumulative Pre-Incentive Fee Net Return (as defined below) during the relevant Legacy Fee Quarters included in the relevant Trailing Twelve Quarters and 17.50 % of the Cumulative Pre-Incentive Fee Net Return during the relevant Current Fee Quarters included in the relevant Trailing Twelve Quarters less (b) the aggregate Incentive Fees on Income that were paid to the Investment Adviser (excluding waivers, if any) in the preceding eleven calendar quarters (or portion thereof) comprising the relevant Trailing Twelve Quarters.

For this purpose, “Cumulative Pre-Incentive Fee Net Return” during the relevant trailing twelve quarters means (x) Pre-Incentive Fee Net Investment Income in respect of the trailing twelve quarters less (y) any Net Capital Loss, since April 1, 2018, in respect of the trailing twelve quarters. If, in any quarter, the Incentive Fee Cap is zero or a negative value, the Company shall pay no Incentive Fee on Income to the Investment Adviser in that quarter. If, in any quarter, the Incentive Fee Cap is a positive value but is less than the Incentive Fee on Income calculated in accordance with the calculation described above, the Company shall pay the Investment Adviser the Incentive Fee Cap for such quarter. If, in any quarter, the Incentive Fee Cap is equal to or greater than the Incentive Fee on Income calculated in accordance with the calculation described above, the Company shall pay the Investment Adviser the Incentive Fee on Income for such quarter.

“Net Capital Loss” in respect of a particular period means the difference, if positive, between (i) aggregate capital losses, whether realized or unrealized, in such period and (ii) aggregate capital gains, whether realized or unrealized, in such period.

B. Incentive Fee Based on Cumulative Net Realized Gains

Prior to January 1, 2023, the Incentive Fee on Capital Gains is determined and payable in arrears as of the end of each calendar year (or upon termination of the investment advisory management agreement). This fee shall equal 20.0 % of the sum of the Company’s realized capital gains on a cumulative basis, calculated as of the end of each calendar year (or upon termination of investment advisory management agreement), computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any Incentive Fees on Capital Gains previously paid to the Investment Adviser. The aggregate unrealized capital depreciation of the Company shall be calculated as the sum of the differences, if negative, between (a) the valuation of each investment in the Company’s portfolio as of the applicable calculation date and (b) the accreted or amortized cost basis of such investment.

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NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

Beginning on January 1, 2023, the Incentive Fee on Capital Gains is determined and payable in arrears as of the end of each calendar year (or upon termination of the investment advisory management agreement). This fee shall equal 17.50 % of the sum of the Company’s realized capital gains on a cumulative basis, calculated as of the end of each calendar year (or upon termination of investment advisory management agreement), computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any Incentive Fees on Capital Gains previously paid to the Investment Adviser. The aggregate unrealized capital depreciation of the Company shall be calculated as the sum of the differences, if negative, between (a) the valuation of each investment in the Company’s portfolio as of the applicable calculation date and (b) the accreted or amortized cost basis of such investment.

For accounting purposes only, we are required under GAAP to accrue a theoretical capital gains incentive fee based upon net realized capital gains and unrealized capital gain and loss on investments held at the end of each period. The accrual of this theoretical capital gains incentive fee assumes all unrealized capital gain and loss is realized in order to reflect a theoretical capital gains incentive fee that would be payable to the Investment Adviser at each measurement date. There was no accrual for theoretical capital gains incentive fee for the three and six months ended September 30, 2022 and 2021. It should be noted that a fee so calculated and accrued would not be payable under the Investment Advisers Act of 1940 (the “Advisers Act”) or the investment advisory management agreement, and would not be paid based upon such computation of capital gains incentive fees in subsequent periods. Amounts actually paid to the Investment Adviser will be consistent with the Advisers Act and formula reflected in the investment advisory management agreement which specifically excludes consideration of unrealized capital gain.

For the three and six months en ded September 30, 2022, the Company recognized $ 8,914 and $ 17,863 , respectively, of management fees, and $ 3,976 and $ 5,373 , respectively, of incentive fees before impact of waived fees. For the three and six months ended September 30, 2021, the Company recognized $ 9,158 and $ 17,972 respectively, of management fees, and $ 5,271 and $ 5,271 , respectively of incentive fees before impact of waived fees. For the three and six months ended September 30, 2022 and 2021, no management fees and no incentive fees were waived.

As of September 30, 2022 and March 31, 2022, management and performance-based incentive fees payable were $ 12,803 and $ 9,912 , respectively.

Fee Offset

On January 16, 2019, the Company and AIM entered into a fee offset agreement in connection with revenue realized by AIM and its affiliates for the management of certain aircraft assets. The Company will receive an offsetting credit against total incentive fees otherwise due to AIM under the investment advisory management agreement. The amount offset will initially be 20 % of the management fee revenue earned and incentive fee revenue realized by AIM and its affiliates in connection with managing aircraft assets on related insurance balance sheets (“New Balance Sheet Investments”), new aircraft managed account capital (“New Managed Accounts”) and new dedicated aircraft funds (“New Aircraft Funds”). Once the aggregate capital raised by the New Aircraft Funds or New Managed Accounts and capital invested by the New Balance Sheet Investments exceeds $ 3 billion cumulatively, the fee offset will step down to 10 % of the amount of incremental management fee revenue earned and incentive fee revenue realized by AIM and its affiliates. The fee offset will be in place for seven years, however the incentive fees realized by AIM and its affiliates after this seven-year period from applicable investments that were raised or made within the seven-year period will also be used to offset incentive fees payable to AIM by the Company. The offset will be limited to the amount of incentive fee payable by the Company to AIM and any unapplied fee offset which exceeds the incentive fees payable in a given quarter will carry forward to be credited against the incentive fees payable by the Company in subsequent quarters.

For the three and six months ended September 30, 2022, management fee offset was $ 87 and $ 162 , respectively. For the three and six months ended September 30, 2021, the performance-based incentive fee offset was $ 147 & $ 147 .

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NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

Administration Agreement with AIA

The Company has also entered into an administration agreement with the Administrator (the “Administration Agreement”) under which AIA provides administrative services for the Company. For providing these services, facilities and personnel, the Company reimburses the Administrator for the allocable portion of overhead and other expenses incurred by the Administrator and requested to be reimbursed by the Administrator in performing its obligations under the Administration Agreement. The expenses include rent and the Company’s allocable portion of compensation and other related expenses for its Chief Financial Officer, Chief Legal Officer and Chief Compliance Officer and their respective staffs. For the three and six months ended September 30, 2022, the Company recognized administrative services expense under the Administration Agreement o f $ 1,301 and $ 2,587 , respectively. For the three and six months ended September 30, 2021, the Company recognized administrative services expense under the Administration Agreement of $ 1,715 and $ 2,985 , respectively. There was no payable to AIA and its affiliates for expenses paid on our behalf as of September 30, 2022 and March 31, 2022.

Administrative Service Expense Reimbursement

Merx Aviation Finance, LLC (“Merx”), a wholly-owned portfolio company of the Company, has entered into an administration agreement with the Administrator (the “Merx Administration Agreement”) under which AIA provides administrative services to Merx and several Merx managed entities. For the three and six months ended September 30, 2022, the Company recognized administrative service expense reimbursements of $ 75 and $ 150 , respectively, under the Merx Administration Agreement. For the three and six months ended September 30, 2021, the Company recognized administrative service expense reimbursements of $ 75 and $ 150 , respectively.

Debt Expense Reimbursements

The Company has also entered into debt expense reimbursement agreements with Merx and several other portfolio companies, which will reimburse the Company for reasonable out-of-pocket expenses incurred, including any interest, fees or other amounts incurred by the Company in connection with letters of credit issued on their behalf. For the three and six months ended September 30, 2022, the Company recognized debt expense reimbursements of $ 184 and $ 338 , respectively, under the debt expense reimbursement agreements. For the three and six months ended September 30, 2021, the Company recognized debt expense reimbursements of $ 1 and $ 2 , respectively, under the debt expense reimbursement agreements.

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NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

Co-Investment Activity

We may co-invest on a concurrent basis with affiliates of ours, subject to compliance with applicable regulations and our allocation procedures. Certain types of negotiated co-investments may be made only in accordance with the terms of the exemptive order we received from the SEC permitting us to do so. On March 29, 2016, we received an exemptive order from the SEC, which was amended on December 29, 2021 (the “Order”) permitting us greater flexibility to negotiate the terms of co-investment transactions with certain of our affiliates, including investment funds managed by AIM or its affiliates and Apollo proprietary accounts, subject to the conditions included therein. Under the terms of the Order, a “required majority” (as defined in Section 57(o) of the 1940 Act) of our independent directors must be able to reach certain conclusions in connection with a co-investment transaction, including that (1) the terms of the proposed transaction are reasonable and fair to us and our stockholders and do not involve overreaching of us or our stockholders on the part of any person concerned, and (2) the transaction is consistent with the interests of our stockholders and is consistent with our Board of Directors’ approved criteria. In certain situations where co-investment with one or more funds managed by AIM or its affiliates is not covered by the Order, the personnel of AIM or its affiliates will need to decide which fund will proceed with the investment. Such personnel will make these determinations based on allocation policies and procedures, which are designed to reasonably ensure that investment opportunities are allocated fairly and equitably among affiliated funds over time and in a manner that is consistent with applicable laws, rules and regulations. The Order is subject to certain terms and conditions so there can be no assurance that we will be permitted to co-invest with certain of our affiliates other than in the circumstances currently permitted by regulatory guidance and the Order.

As of September 30, 2022, the Company’s co-investment holdings w ere 73 % of the portfolio or $ 1,804,569 , measured at fair value. On a cost basis, 67 % of the portfolio or $ 1,819,401 were co-investments. As of March 31, 2022, the Company’s co-investment holdings were 71 % of the portfolio or $ 1,783,052 , measured at fair value. On a cost basis, 65 % of the portfolio or $ 1,780,779 were co-investments.

Merx Aviation

Effective January 16, 2019, Mr. Gary Rothschild, President and Chief Executive Officer of Merx, became an employee of Apollo Management Holdings, L.P. ("AMH"), an affiliate of the Company’s investment adviser. Mr. Rothschild also retained his role as the President and Chief Executive Officer of Merx.

Effective January 16, 2019, Merx entered into a series of service arrangements with affiliates of AGM. Under a servicing agreement with Apollo Capital Management, L.P. (“ACM”), Merx serves as technical servicer to aircraft clients of ACM and its affiliates. Under a research support agreement with ACM, Merx employees assist ACM with technical due-diligence and underwriting of new aircraft-related investment opportunities. Under a technical support agreement, Merx and AMH share the services of Mr. Gary Rothschild, who is the President and Chief Executive Officer of Merx and an employee of AMH.

On April 1, 2020, $ 105,300 of the Merx first lien secured revolver held by the Company was converted into common equity. In addition, the interest rate on the revolver was lowered from 12 % to 10 %.

On July 1, 2021, $ 84,500 of the Merx common equity held by the Company was converted into the Merx first lien secured revolver.

On September 1, 2022, $ 110,700 of the Merx first lien secured revolver held by the Company was converted into common equity. The balance of the Merx revolver as of September 30, 2022 was $ 150,000 .

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NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

Note 4. Earnings Per Share

The following table sets forth the computation of earnings (loss) per share (“EPS”), pursuant to ASC 260-10, for the three and six months ended September 30, 2022 and 2021:


	Three Months Ended September 30,						Six Months Ended September 30,
		2022			2021			2022			2021
Basic Earnings Per Share
Net increase (decrease) in net assets resulting from operations	$		15,993	$		25,441	$		21,653	$		57,584
Weighted average shares outstanding			64,737,122			65,031,131			64,150,905			65,115,530
Basic earnings (loss) per share	$		0.25	$		0.39	$		0.34	$		0.88

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NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

Note 5. Investments

Fair Value Measurement and Disclosures

The following table shows the composition of our investment portfolio as of September 30, 2022, with the fair value disaggregated into the three levels of the fair value hierarchy in accordance with ASC 820:


					Fair Value Hierarchy
	Cost		Fair Value		Level 1		Level 2		Level 3
First Lien Secured Debt	$	2,167,964	$	2,146,200	$	—	$	—	$	2,146,200
Second Lien Secured Debt		106,145		85,450		—		—		85,450
Structured Products and Other		16,998		8,748		—		—		8,748
Preferred Equity		42,432		38,765		—		—		38,765
Common Equity/Interests		385,152		184,302		1,033		323		182,946
Warrants		135		80		—		—		80
Total Investments	$	2,718,826	$	2,463,545	$	1,033	$	323	$	2,462,189

The following table shows the composition of our investments portfolio as of March 31, 2022, with the fair value disaggregated into the three levels of the fair value hierarchy in accordance with ASC 820:


					Fair Value Hierarchy
	Cost		Fair Value		Level 1		Level 2		Level 3
First Lien Secured Debt	$	2,261,481	$	2,259,506	$	—	$	—	$	2,259,506
Second Lien Secured Debt		116,073		97,844		—		—		97,844
Structured Products and Other		16,998		10,038		—		—		10,038
Preferred Equity		41,152		30,162		—		—		30,162
Common Equity/Interests		309,990		125,524		1,230		—		124,294
Warrants		135		99		—		—		99
Total Investments	$	2,745,829	$	2,523,173	$	1,230	$	—	$	2,521,943

The following table shows changes in the fair value of our Level 3 investments during the three months ended September 30, 2022:


	First Lien Secured Debt (2)			Second Lien Secured Debt (2)			Unsecured Debt		Structured Products and Other			Preferred Equity		Common Equity/ Interests			Warrants			Total
Fair value as of June 30, 2022	$	2,297,105		$	93,910		$	—	$	8,957		$	30,953	$	102,186		$	98		$	2,533,209
Net realized gains (losses)		( 462	)		—			—		—			—		—			—			( 462	)
Net change in unrealized gains (losses)		( 7,670	)		( 5,070	)		—		( 209	)		6,562		( 3,569	)		( 18	)		( 9,974	)
Net amortization on investments		3,244			2,775			—		—			—		—			—			6,019
Purchases, including capitalized PIK (3)		113,223			62			—		—			1,250		110,846			—			225,381
Sales (3)		( 273,908	)		( 6,227	)		—		—			—		( 26,517	)		—			( 306,652	)
Transfers out of Level 3 (1)		—			—			—		—			—		—			—			—
Transfers into Level 3 (1)		14,668			—			—		—			—		—			—			14,668
Fair value as of September 30, 2022	$	2,146,200		$	85,450		$	—	$	8,748		$	38,765	$	182,946		$	80		$	2,462,189

Net change in unrealized gains (losses) on Level 3 investments still held as of September 30,2022	$	( 7,816	)	$	( 4,214	)	$	—	$	( 208	)	$	6,561	$	( 3,569	)	$	( 18	)	$	( 9,264	)

Table of Contents

MIDCAP FINANCIAL INVESTMENT CORPORATION

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

The following table shows changes in the fair value of our Level 3 investments during the six months ended September 30, 2022:


	First Lien Secured Debt (2)			Second Lien Secured Debt (2)			Unsecured Debt		Structured Products and Other			Preferred Equity		Common Equity/ Interests			Warrants			Total
Fair value as of March 31, 2022	$	2,259,506		$	97,844		$	—	$	10,038		$	30,162	$	124,294		$	99		$	2,521,943
Net realized gains (losses)		( 624	)		( 27	)		—		—			—		503			—			( 148	)
Net change in unrealized gains (losses)		( 19,485	)		( 2,464	)		—		( 1,290	)		7,323		( 16,157	)		( 19	)		( 32,092	)
Net amortization on investments		7,249			2,832			—		—			—		—			—			10,081
Purchases, including capitalized PIK (3)		328,031			203			—		—			1,280		135,971			—			465,485
Sales (3)		( 444,519	)		( 11,221	)		—		—			—		( 61,313	)		—			( 517,053	)
Transfers out of Level 3 (1)		( 344	)		( 1,717	)		—		—			—		( 352	)		—			( 2,413	)
Transfers into Level 3 (1)		16,386			—			—		—			—		—			—			16,386
Fair value as of September 30, 2022	$	2,146,200		$	85,450		$	—	$	8,748		$	38,765	$	182,946		$	80		$	2,462,189

Net change in unrealized gains (losses) on Level 3 investments still held as of September,30,2022	$	( 19,913	)	$	( 3,705	)	$	—	$	( 1,290	)	$	7,323	$	( 16,043	)	$	( 19	)	$	( 33,647	)

(1)

Transfers out (if any) of Level 3 are due to an increase in the quantity and reliability of broker quotes obtained and transfers into (if any) Level 3 are due to a decrease in the quantity and reliability of broker quotes obtained as assessed by the Investment Adviser. Transfers are assumed to have occurred at the end of the period. There were no transfers between Level 1 and Level 2 fair value measurements during the period shown.

(2)

Includes unfunded commitments measured at fair value of $( 4,563 ).

(3)

Includes reorganizations and restructuring of investments.

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MIDCAP FINANCIAL INVESTMENT CORPORATION

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

The following table shows changes in the fair value of our Level 3 investments during the three months ended September 30, 2021:


	First Lien Secured Debt (2)			Second Lien Secured Debt (2)			Unsecured Debt		Structured Products and Other			Preferred Equity		Common Equity/ Interests			Warrants			Total
Fair value as of June 30, 2021	$	2,000,093		$	175,938		$	22,000	$	11,675		$	22,279	$	247,787		$	1,851		$	2,481,623
Net realized gains (losses)		( 42,724	)		( 19,805	)		—		—			—		—			—			( 62,529	)
Net change in unrealized gains (losses)		76,199			23,643			—		( 906	)		175		( 34,602	)		( 94	)		64,415
Net amortization on investments		2,592			334			—		—			—		—			—			2,926
Purchases, including capitalized PIK (3)		374,815			—			—		25			449		44,312			—			419,601
Sales (3)		( 174,594	)		( 34,959	)		—		—			—		( 84,586	)		—			( 294,139	)
Transfers out of Level 3 (1)		—			—			—		—			—		—			—			—
Transfers into Level 3 (1)		—			—			—		—			—		—			—			—
Fair value as of September 30, 2021	$	2,236,381		$	145,151		$	22,000	$	10,794		$	22,903	$	172,911		$	1,757		$	2,611,897

Net change in unrealized gains (losses) on Level 3 investments still held as of September,30,2021	$	2,025		$	5,155		$	—	$	( 898	)	$	175	$	( 1,336	)	$	( 94	)	$	5,027

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MIDCAP FINANCIAL INVESTMENT CORPORATION

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

The following table shows changes in the fair value of our Level 3 investments during the six months ended September 30, 2021:


	First Lien Secured Debt (2)			Second Lien Secured Debt (2)			Unsecured Debt		Structured Products and Other			Preferred Equity			Common Equity/ Interests			Warrants		Total
Fair value as of March 31, 2021	$	1,907,807		$	237,609		$	22,000	$	11,289		$	22,537		$	245,830		$	1,595	$	2,448,667
Net realized gains (losses)		( 42,444	)		( 19,805	)		—		—			—			—			—		( 62,249	)
Net change in unrealized gains (losses)		84,476			17,891			—		( 520	)		( 82	)		( 30,685	)		162		71,242
Net amortization on investments		6,949			1,645			—		—			—			—			—		8,594
Purchases, including capitalized PIK (3)		669,328			487			—		25			448			46,312			—		716,600
Sales (3)		( 379,017	)		( 92,676	)		—		—			—			( 88,546	)		—		( 560,239	)
Transfers out of Level 3 (1)		( 10,718	)		—			—		—			—			—			—		( 10,718	)
Transfers into Level 3 (1)		—			—			—		—			—			—			—		—
Fair value as of September 30, 2021	$	2,236,381		$	145,151		$	22,000	$	10,794		$	22,903		$	172,911		$	1,757	$	2,611,897

Net change in unrealized gains (losses) on Level 3 investments still held as of September,30,2021	$	5,046		$	1,352		$	—	$	( 512	)	$	( 82	)	$	3,699		$	162	$	9,665

(1)

(2)

Includes unfunded commitments measured at fair value of $( 4,933 ).

(3)

Includes reorganizations and restructuring of investments.

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MIDCAP FINANCIAL INVESTMENT CORPORATION

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

The following tables summarize the significant unobservable inputs the Company used to value its investments categorized within Level 3 as of September 30, 2022 and March 31, 2022. In addition to the techniques and inputs noted in the tables below, according to our valuation policy we may also use other valuation techniques and methodologies when determining our fair value measurements. The below tables are not intended to be all-inclusive, but rather provide information on the significant unobservable inputs as they relate to the Company’s determination of fair values.

The unobservable inputs used in the fair value measurement of our Level 3 investments as of September 30, 2022 were as follows:


				Quantitative Information about Level 3 Fair Value Measurements
Asset Category		Fair Value		Valuation Techniques/Methodologies	Unobservable Input	Range		Weighted Average (1)
First Lien Secured Debt	$		150,000	Discounted Cash Flow	Discount Rate	11.0 %	12.0 %	12.0 %
				Residual Value	Residual Value	N/A	N/A	N/A
			24,194	Recent Transaction	Recent Transaction	N/A	N/A	N/A
			2,883	Recovery Analysis	Recoverable Amount	N/A	N/A	N/A
			1,969,123	Yield Analysis	Discount Rate	6.3 %	53.8 %	11.1 %
Second Lien Secured Debt			7,048	Market Comparable Technique	Comparable Multiple	11.0 x	11.0 x	11.0 x
			40	Recovery Analysis	Recoverable Amount	N/A	N/A	N/A
			63,888	Yield Analysis	Discount Rate	12.6 %	15.7 %	13.9 %
			239	Sale Proceeds	Sale Proceeds	N/A	N/A	N/A
			14,235	Broker Quoted	Broker Quote	N/A	N/A	N/A
Structured Products and Other			8,748	Yield Analysis	Discount Rate	12.5 %	12.5 %	12.5 %
Preferred Equity			34,376	Market Comparable Technique	Comparable Multiple	2.3 x	18.8 x	12.2 x
			2,050	Option Pricing Model	Expected Volatility	100.0 %	100.0 %	100.0 %
			2,250	Recent Transaction	Recent Transaction	N/A	N/A	N/A
			11	Recovery Analysis	Recoverable Amount	N/A	N/A	N/A
			78	Residual Value	Residual Value	N/A	N/A	N/A
			—	Yield Analysis	Discount Rate	12.5 %	12.5 %	0.0 %
Common Equity/Interests			115,609	Discounted Cash Flow	Discount Rate	11.0 %	11.0 %	11.0 %
				Residual Value	Residual Value	N/A	N/A	N/A
			13,361	Market Comparable Technique	Comparable Multiple	6.0 x	30.5 x	13.1 x
			46,813	Recent Transaction	Recent Transaction	N/A	N/A	N/A
			5,796	Recovery Analysis	Recoverable Amount	N/A	N/A	N/A
			445	Yield Analysis	Discount Rate	12.5 %	12.5 %	12.5 %
			50	Market Comparable Technique	Comparable Multiple	22.5 x	22.5 x	22.5 x
				Option Pricing Model	Expected Volatility	30.0 %	30.0 %	30.0 %
			872	Yield Analysis	Discount Rate	6.7 %	6.7 %	6.7 %
				Market Comparable Technique	Comparable Multiple	11.5 x	11.5 x	11.5 x
Warrants			80	Option Pricing Model	Expected Volatility	50.0 %	50.0 %	50.0 %
Total Level 3 Investments	$		2,462,189

_________________

(1)

The weighted average information is generally derived by assigning each disclosed unobservable input a proportionate weight based on the fair value of the related investment. For the commodity price unobservable input, the weighted average price is an undiscounted price based upon the estimated production level from the underlying reserves.

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MIDCAP FINANCIAL INVESTMENT CORPORATION

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

The unobservable inputs used in the fair value measurement of our Level 3 investments as of March 31, 2022 were as follows:


				Quantitative Information about Level 3 Fair Value Measurements
Asset Category		Fair Value		Valuation Techniques/Methodologies	Unobservable Input	Range		Weighted Average (1)
First Lien Secured Debt	$		275,000	Discounted Cash Flow	Discount Rate	12.0 %	12.0 %	12.0 %
				Residual Value	Residual Value	N/A	N/A	N/A
			62,975	Recent Transaction	Recent Transaction	N/A	N/A	N/A
			558	Recovery Analysis	Recoverable Amount	N/A	N/A	N/A
			28,798	Recovery Analysis	Sale Proceeds	N/A	N/A	N/A
			1,892,175	Yield Analysis	Discount Rate	5.1 %	52.3 %	8.9 %
Second Lien Secured Debt			5,657	Market Comparable Technique	Comparable Multiple	12.3 x	12.3 x	12.3 x
			6,444	Recovery Analysis	Recoverable Amount	N/A	N/A	N/A
			85,743	Yield Analysis	Discount Rate	6.9 %	19.1 %	13.0 %
Structured Products and Other			10,038	Discounted Cash Flow	Discount Rate	9.8 %	9.8 %	9.8 %
Preferred Equity			355	Discounted Cash Flow	Discount Rate	10.0 %	10.0 %	10.0 %
			24,741	Market Comparable Technique	Comparable Multiple	0.1 x	22.8 x	14.4 x
			4,988	Option Pricing Model	Expected Volatility	80.0 %	80.0 %	80.0 %
			78	Residual Value	Residual Value	N/A	N/A	N/A
			—	Yield Analysis	Discount Rate	52.3 %	52.3 %	52.3 %
Common Equity/Interests			613	Discounted Cash Flow	Discount Rate	10.0 %	52.3 %	10.0 %
			57,782	Discounted Cash Flow	Discount Rate	10.1 %	11.0 %	10.6 %
				Residual Value	Residual Value	N/A	N/A	N/A
			14,766	Market Comparable Technique	Comparable Multiple	0.1 x	20.9 x	10.9 x
			42,331	Recent Transaction	Recent Transaction	N/A	N/A	N/A
			—	Recovery Analysis	Recoverable Amount	N/A	N/A	N/A
			7,762	Recovery Analysis	Sale Proceeds	N/A	N/A	N/A
			85	Market Comparable Technique	Comparable Multiple	22.8 x	22.8 x	22.8 x
				Option Pricing Model	Expected Volatility	30.0 %	30.0 %	30.0 %
			325	N/A - Public	N/A - Public	N/A	N/A	N/A
			630	Sale Proceeds	Sale Proceeds	N/A	N/A	N/A
Warrants			99	Option Pricing Model	Expected Volatility	60.0 %	60.0 %	60.0 %
Total Level 3 Investments	$		2,521,943

____________________

(1)

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MIDCAP FINANCIAL INVESTMENT CORPORATION

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

The significant unobservable inputs used in the fair value measurement of the Company’s debt and equity securities are primarily earnings before interest, taxes, depreciation and amortization (“EBITDA”) comparable multiples and market discount rates. The Company typically uses EBITDA comparable multiples on its equity securities to determine the fair value of investments. The Company uses market discount rates for debt securities to determine if the effective yield on a debt security is commensurate with the market yields for that type of debt security. If a debt security’s effective yield is significantly less than the market yield for a similar debt security with a similar credit profile, the resulting fair value of the debt security may be lower. For certain investments where fair value is derived based on a recovery analysis, the Company uses underlying commodity prices from third party market pricing services to determine the fair value and/or recoverable amount, which represents the proceeds expected to be collected through asset sales or liquidation. Further, for certain investments, the Company also considered the probability of future events which are not in management’s control. Significant increases or decreases in any of these inputs in isolation would result in a significantly lower or higher fair value measurement. The significant unobservable inputs used in the fair value measurement of the structured products include the discount rate applied in the valuation models in addition to default and recovery rates applied to projected cash flows in the valuation models. Specifically, when a discounted cash flow model is used to determine fair value, the significant input used in the valuation model is the discount rate applied to present value the projected cash flows. Increases in the discount rate can significantly lower the fair value of an investment; conversely decreases in the discount rate can significantly increase the fair value of an investment. The discount rate is determined based on the market rates an investor would expect for a similar investment with similar risks. For certain investments such as warrants, the Company may use an option pricing technique, of which the applicable method is the Black-Scholes Option Pricing Method (“BSM”), to perform valuations. The BSM is a model of price variation over time of financial instruments, such as equity, that is used to determine the price of call or put options. Various inputs are required but the primary unobservable input into the BSM model is the underlying asset volatility.

Investment Transactions

For the three and six months ended September 30, 2022, purchases of investments on a trade date basis were $ 113,314 and $ 340,736 , respectively. F or the three and six months ended September 30, 2021, purchases of investments on a trade date basis were $ 290,095 and $ 585,308 , respectively.

For the three and six mont hs ended September 30, 2022, sales and repayments (including prepayments and unamortized fees) of investments on a trade date basis were $ 195,952 and $ 379,955 , res pectively. For the three and six months ended September 30, 2021, sales and repayments (including prepayments and unamortized fees) of investments on a trade date basis were $ 176,280 and $ 442,387 , respectively.

PIK Income

The Company holds loans and other investments, including certain preferred equity investments, that have contractual PIK income. PIK income computed at the contractual rate is accrued into income and reflected as receivable up to the capitalization date. During the three and six months ended September 30, 2022, PIK income ear ned was $ 856 and $ 1,811 , r espectively. During the three and six months ended September 30, 2021, PIK income earned was $ 933 and $ 2,468 , respectively.

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MIDCAP FINANCIAL INVESTMENT CORPORATION

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

The following table shows the change in capitalized PIK balance for the three and six months ended September 30, 2022 and 2021:


	Three Months Ended September 30,						Six Months Ended September 30,
	2022			2021				2022				2021
PIK balance at beginning of period	$	39,835		$	43,733		$		39,228		$		41,947
PIK income capitalized		674			941				1,405				2,727
Adjustments due to investments exited or written off		( 12,095	)		( 7,037	)			( 12,219	)			( 7,037	)
PIK income received in cash		—			—				—				—
PIK balance at end of period	$	28,414		$	37,637		$		28,414		$		37,637

Dividend Income on CLOs

The Company holds structured products and other investments. The CLO equity investments are entitled to recurring distributions which are generally equal to the excess cash flow generated from the underlying investments after payment of the contractual payments to debt holders and fund expenses. The Company records as dividend income the accretable yield from its beneficial interests in structured products such as CLOs based upon a number of cash flow assumptions that are subject to uncertainties and contingencies. During the three and six months ended September 30, 2022, dividend income from structured products wa s $ 220 and $ 531 , respectively. During the three and six months ended September 30, 2021, dividend income from structured products was $ 338 and $ 649 , respectively.

Investments on Non-Accrual Status

As of September 30, 2022, 1.8 % of total investments at amortized cost, or 1.0 % of total investments at fair value, were on non-accrual status. As of March 31, 2022, 1.3 % of total investments at amortized cost, or 0.6 % of total investments at fair value, were on non-accrual status.

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MIDCAP FINANCIAL INVESTMENT CORPORATION

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

Unconsolidated Significant Subsidiaries

The following unconsolidated subsidiaries are considered significant subsidiaries under SEC Regulation S-X Rule 10-01(b)(1) as of September 30, 2022. Accordingly, summarized, unaudited, comparative financial information is presented below for the unconsolidated significant subsidiary.

Merx Aviation Finance, LLC

Merx Aviation Finance, LLC and its subsidiaries are principally engaged in acquiring and leasing commercial aircraft to airlines. Its focus is on current generation aircraft, held either domestically or internationally. Merx may acquire fleets of aircraft primarily through securitized, non-recourse debt or individual aircraft. Merx may outsource its aircraft servicing requirements to third parties that have the global staff and expertise necessary to complete such tasks. The following table shows unaudited summarized financial information for Merx:


	Six Months Ended September 30,
		2022				2021
Net revenue	$		72,950		$		109,141
Net operating income			8,007				37,412
Earnings (loss) before taxes			1,592				5,438
Net profit (loss)			1,567				6,995
Net profit (loss) after taxes attributable to non-controlling interests			( 193	)			( 2,470	)
Net profit (loss) after taxes attributable to Merx Aviation			1,760				9,465

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MIDCAP FINANCIAL INVESTMENT CORPORATION

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

Note 6. Debt and Foreign Currency Transactions and Translations

On April 4, 2018, the Company’s Board of Directors, including a “required majority” (as defined in Section 57(o) of the Investment Company Act of 1940, as amended) of the Board, approved the application of the modified asset coverage requirements set forth in Section 61(a)(2) of the Investment Company Act of 1940. As a result, effective on April 4, 2019, our asset coverage requirement applicable to senior securities was reduced from 200 % to 150 % (i.e., the revised regulatory leverage limitation permits BDCs to double the amount of borrowings, such that we would be able to borrow up to two dollars for every dollar we have in assets less all liabilities and indebtedness not represented by senior securities issued by us).

The Company’s outstanding debt obligations as of September 30, 2022 were as follows:


	Date Issued/ Amended	Total Aggregate Principal Amount Committed			Principal Amount Outstanding				Fair Value				Final Maturity Date
Senior Secured Facility	12/22/2020	$	1,810,000	**	$	1,033,760		*	$	1,033,683	(1	)	12/22/2025
2025 Notes	3/3/2015		350,000			350,000				328,333	(2	)	3/3/2025
2026 Notes	7/16/2021		125,000			125,000				107,820	(2	)	7/16/2026
Total Debt Obligations		$	2,285,000		$	1,508,760			$	1,469,836.00
Deferred Financing Costs and Debt Discount						( 4,360	)
Total Debt Obligations, net of Deferred Financing Cost and Debt Discount					$	1,504,400

____________________

* Includes foreign currency debt obligations as outlined in Foreign Currency Transactions and Translations within this note to the financial statements.

** Lender commitments will remain $ 1,810,000 through November 19, 2022 and will then decrease to $ 1,705,000 thereafter.

(1)

The fair value of these debt obligations would be categorized as Level 3 under ASC 820 as of September 30, 2022. The valuation is based on a yield analysis and discount rate commensurate with the market yields for similar types of debt.

(2)

The fair value of these debt obligations would be categorized as Level 2 under ASC 820 as of September 30, 2022. The valuation is based on broker quoted prices.

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MIDCAP FINANCIAL INVESTMENT CORPORATION

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

The Company’s outstanding debt obligations as of March 31, 2022 were as follows:


	Date Issued/ Amended	Total Aggregate Principal Amount Committed			Principal Amount Outstanding				Fair Value				Final Maturity Date
Senior Secured Facility	12/22/2020	$	1,810,000	**	$	1,080,468		*	$	1,080,468	(1	)	12/22/2025
2025 Notes	3/3/2015		350,000			350,000				350,399	(2	)	3/3/2025
2026 Notes	7/16/2021		125,000			125,000				117,687	(2	)	7/16/2026
Total Debt Obligations		$	2,285,000		$	1,555,468			$	1,548,554
Deferred Financing Costs and Debt Discount					$	( 4,860	)
Total Debt Obligations, net of Deferred Financing Cost and Debt Discount					$	1,550,608

___________________

* Includes foreign currency debt obligations as outlined in Foreign Currency Transactions and Translations within this note to the financial statements.

** Lender commitments will remain $ 1,810,000 through November 19, 2022 and will then decrease to $ 1,705,000 thereafter.

(1)

The fair value of these debt obligations would be categorized as Level 3 under ASC 820 as of March 31, 2022. The valuation is based on a yield analysis and discount rate commensurate with the market yields for similar types of debt.

(2)

The fair value of these debt obligations would be categorized as Level 2 under ASC 820 as of March 31, 2022. The valuation is based on broker quoted prices.

Senior Secured Facility

On December 22, 2020, the Company amended and restated its senior secured, multi-currency, revolving credit facility (the “Senior Secured Facility”), previously amended and restated as of November 19, 2018. Lender commitments in the amended and restated agreement will remain $ 1,810,000 through November 19, 2022 and will decrease to $ 1,705,000 thereafter. The amended and restated agreement extended the final maturity date through December 22, 2025 , and includes an accordion provision which allows the Company to increase the total commitments under the existing revolving facility up to an aggregate principal amount of $ 2,715,000 from new or existing lenders on the same terms and conditions as the existing commitments. The Senior Secured Facility is secured by substantially all of the assets in the Company’s portfolio, including cash and cash equivalents. Commencing December 22, 2024 , the Company is required to repay, in twelve consecutive monthly installments of equal size, the outstanding amount under the Senior Secured Facility as of December 22, 2024. In addition, the stated interest rate on the facility remains as a formula-based calculation based on a minimum borrowing base, resulting in a stated interest rate, depending on the type of borrowing, of (a) either LIBOR plus 1.75 % per annum or LIBOR plus 2.00 % per annum, or (b) either Alternate Base Rate plus 0.75 % per annum or Alternate Base Rate plus 1 % per annum. As of September 30, 2022, the stated interest rate on the facility was LIBOR plus 2.00 % or the Sterling Overnight Index Average (“SONIA”) plus 2.00 %. The Company is required to pay a commitment fee of 0.375 % per annum on any unused portion of the Senior Secured Facility and participation fees and fronting fees of up to 2.25 % per annum on the letters of credit issued.

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MIDCAP FINANCIAL INVESTMENT CORPORATION

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

The Senior Secured Facility contains affirmative and restrictive covenants, events of default and other customary provisions for similar debt facilities, including: (a) periodic financial reporting requirements, (b) maintaining minimum stockholders’ equity of the greater of (i) 30 % of the total assets of the Company and its consolidated subsidiaries as of the last day of any fiscal quarter and (ii) the sum of (A) $ 705,000 plus (B) 25 % of the net proceeds from the sale of equity interests in the Company after the closing date of the Senior Secured Facility, (c) maintaining a ratio of total assets, less total liabilities (other than indebtedness) to total indebtedness, in each case of the Company and its consolidated subsidiaries, of not less than 1.5 :1.0, (d) limitations on the incurrence of additional indebtedness, including a requirement to meet a certain minimum liquidity threshold before the Company can incur such additional debt, (e) limitations on liens, (f) limitations on investments (other than in the ordinary course of the Company’s business), (g) limitations on mergers and disposition of assets (other than in the normal course of the Company’s business activities), (h) limitations on the creation or existence of agreements that permit liens on properties of the Company’s consolidated subsidiaries and (i) limitations on the repurchase or redemption of certain unsecured debt and debt securities. In addition to the asset coverage ratio described in clause (c) of the preceding sentence, borrowings under the Senior Secured Facility (and the incurrence of certain other permitted debt) are subject to compliance with a borrowing base that applies different advance rates to different types of assets in the Company’s portfolio. The advance rate applicable to any specific type of asset in the Company’s portfolio will also depend on the relevant asset coverage ratio as of the date of determination. Borrowings under the Senior Secured Facility will also continue to be subject to the leverage restrictions contained in the Investment Company Act of 1940, as amended.

The Senior Secured Facility also provides for the issuance of letters of credit up to an aggregate amount of $ 150,000 . As of September 30, 2022 and March 31, 2022, the Company had $ 34,487 and $ 26,877 , respectively, in standby letters of credit issued through the Senior Secured Facility. The amount available for borrowing under the Senior Secured Facility is reduced by any standby letters of credit issued through the Senior Secured Facility. Under GAAP, these letters of credit are considered commitments because no funding has been made and as such are not considered a liability. These letters of credit are not senior securities because they are not in the form of a typical financial guarantee and the portfolio companies are obligated to refund any drawn amounts. The available remaining capacity under the Senior Secured Facility was $ 741,753 a nd $ 702,655 as of September 30, 2022 and March 31, 2022, respectively. Terms used in this disclosure have the meanings set forth in the Senior Secured Facility agreement.

Senior Unsecured Notes

2025 Notes

On March 3, 2015, the Company issued $ 350,000 aggregate principal amount of senior unsecured notes for net proceeds of $ 343,650 (the “2025 Notes”). The 2025 Notes will mature on March 3, 2025 . Interest on the 2025 Notes is due semi-annually on March 3 and September 3, at an annual rate of 5.25 %, commencing on September 3, 2015 . The 2025 Notes are general, unsecured obligations and rank equal in right of payment with all of our existing and future senior unsecured indebtedness

2026 Notes

On July 16, 2021, the Company issued $ 125,000 aggregate principal amount of general unsecured notes for net proceeds of $ 122,965 (the “2026 Notes”). The 2026 Notes will mature on July 16, 2026 . Interest on the 2026 Notes is due semi-annually on January 16 and July 16, at an annual rate of 4.50 %, commencing on January 16, 2022 . The 2026 Notes are general, unsecured obligations and rank equal in right of payment with all of our existing and future senior unsecured indebtedness.

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MIDCAP FINANCIAL INVESTMENT CORPORATION

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

The following table summarizes the average and maximum debt outstanding, and the interest and debt issuance cost for the three and six months ended September 30, 2022 and 2021:


	Three Months Ended September 30,								Six Months Ended September 30,
		2022				2021				2022				2021
Average debt outstanding	$		1,539,332		$		1,539,062		$		1,579,696		$		1,499,635
Maximum amount of debt outstanding			1,597,794				1,608,285				1,669,385				1,608,285

Weighted average annualized interest cost (1)			4.79	%			3.20	%			4.21	%			3.14	%
Annualized amortized debt issuance cost			0.38	%			0.40	%			0.37	%			0.40	%
Total annualized interest cost			5.17	%			3.60	%			4.58	%			3.54	%

____________________

(1)

Includes the stated interest expense and commitment fees on the unused portion of the Senior Secured Facility. Commitment fees for the three and six months ended September 30, 202 2 were $ 677 and $ 1,276 , respectively. Commitment fees for the three and six months ended September 30, 2021 were $ 689 and $ 1,349 respectively.

Foreign Currency Transactions and Translations

The Company had the following foreign-denominated debt outstanding on the Senior Secured Facility as of September 30, 2022:


	Original Principal Amount (Local)		Original Principal Amount (USD)		Principal Amount Outstanding		Unrealized Gain/(Loss)			Reset Date
British Pound	£	41,000	$	51,037	$	45,797	$	( 5,240	)		11/30/2022

Total			$	51,037	$	45,797	$	( 5,240	)

The Company had the following foreign-denominated debt outstanding on the Senior Secured Facility as of March 31, 2022:


	Original Principal Amount (Local)		Original Principal Amount (USD)		Principal Amount Outstanding		Unrealized Gain/(Loss)			Reset Date
British Pound	£	41,000	$	51,037	$	53,866	$	( 2,829	)		4/29/2022
Australian Dollar	A$	6,200		4,543		4,639		( 96	)		4/29/2022
Total			$	55,580	$	58,505	$	( 2,925	)

As of September 30, 2022 and March 31, 2022, the Company was in compliance with all debt covenants for all outstanding debt obligations.

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MIDCAP FINANCIAL INVESTMENT CORPORATION

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

Note 7. Stockholders’ Equity

As described in more detail below, the Fund issued approximately $ 30,000 of common stock during the three months ended September 30, 2022 and did no t conduct any equity offerings during the fiscal year ended March 31, 2022.

The Company adopted the following plans, approved by the Board of Directors, for the purpose of repurchasing its common stock in accordance with applicable rules specified in the Securities Exchange Act of 1934 (the “1934 Act”) (the “Repurchase Plans”):


Date of Agreement/Amendment	Maximum Cost of Shares That May Be Repurchased		Cost of Shares Repurchased		Remaining Cost of Shares That May Be Repurchased
August 5, 2015	$	50,000	$	50,000	$	—
December 14, 2015		50,000		50,000		—
September 14, 2016		50,000		50,000		—
October 30, 2018		50,000		50,000		—
February 6, 2019		50,000		45,809		4,191
February 3, 2022		25,000		—		25,000
Total as of September 30, 2022	$	275,000	$	245,809	$	29,191

The Repurchase Plans were designed to allow the Company to repurchase its shares both during its open window periods and at times when it otherwise might be prevented from doing so under applicable insider trading laws or because of self-imposed trading blackout periods. A broker selected by the Company will have the authority under the terms and limitations specified in an agreement with the Company to repurchase shares on the Company’s behalf in accordance with the terms of the Repurchase Plans. Repurchases are subject to SEC regulations as well as certain price, market volume and timing constraints specified in the Repurchase Plans. Pursuant to the Repurchase Plans, the Company may from time to time repurchase a portion of its shares of common stock and the Company is hereby notifying stockholders of its intention as required by applicable securities laws.

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MIDCAP FINANCIAL INVESTMENT CORPORATION

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

Under the Repurchase Plans described above, the Company allocated the following amounts to be repurchased in accordance with SEC Rule 10b5-1 (the “10b5-1 Repurchase Plans”):


Effective Date	Termination Date	Amount Allocated to 10b5-1 Repurchase Plans
September 15, 2015	November 5, 2015	$	5,000
January 1, 2016	February 5, 2016		10,000
April 1, 2016	May 19, 2016		5,000
July 1, 2016	August 5, 2016		15,000
September 30, 2016	November 8, 2016		20,000
January 4, 2017	February 6, 2017		10,000
March 31, 2017	May 19, 2017		10,000
June 30, 2017	August 7, 2017		10,000
October 2, 2017	November 6, 2017		10,000
January 3, 2018	February 8, 2018		10,000
June 18, 2018	August 9, 2018		10,000
September 17, 2018	October 31, 2018		10,000
December 12, 2018	February 7, 2019		10,000
February 25, 2019	May 17, 2019		25,000
March 18, 2019	May 17, 2019		10,000
June 4, 2019	August 7, 2019		25,000
June 17, 2019	August 7, 2019		20,000
September 16, 2019	November 6, 2019		20,000
December 6, 2019	February 5, 2020		25,000
December 16, 2019	February 5, 2020		15,000
March 12, 2020	March 19, 2020		20,000
March 30, 2021	May 21, 2021		10,000
June 16, 2021	November 5, 2021		10,000
December 16, 2021	August 3, 2022		5,000

During the six months ended September 30, 2022, the Company repurchased 128,522 shares at a weighted average price per share of $ 12.74 , inclusive of commissions, for a total cost of $ 1,638 . This represents a discount of approximately 18.24 % of the average net asset value per share for the six months ended September 30, 2022.

During the six months ended September 30, 2021, the Company repurchased 596,525 shares at a weighted average price per share of $ 13.30 , inclusive of commissions, for a total cost of $ 7,931 . This represents a discount of approximately 16.85 % of the average net asset value per share for the six months ended September 30, 2021.

Since the inception of the Repurchase Plans through September 30, 2022, the Company repurchased 15,395,036 shares at a weighted average price per share of $ 15.97 , inclusive of commissions, for a total cost of $ 245,809 . Including fractional shares, the Company has repurchased 15,395,066 shares at a weighted average price per share of $ 15.97 , inclusive of commissions for a total cost of $ 245,810 .

On October 30, 2018, the Company’s Board of Directors approved a one-for- three reverse stock split of the Company’s common stock which was effective as of the close of business on November 30, 2018. The Company's common stock began trading on a split-adjusted basis on December 3, 2018. The fractional shares that resulted from the Reverse Stock Split were approximately 29 shares and they were canceled by paying cash in lieu of the fair value.

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MIDCAP FINANCIAL INVESTMENT CORPORATION

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

On July 22, 2019, the Board of Directors approved Articles of Amendment which amended the Company’s charter to reduce the amount of authorized capital stock from 400,000,000 shares, par value $ 0.001 per share, to 130,000,000 shares, par value $ 0.001 per share. The Articles of Amendment were accepted for record by the Department of Assessments and Taxation of the State of Maryland on July 22, 2019 and immediately became effective.

On August 2, 2022, the Company entered into a share subscription agreement (“Purchase Agreement”) with MFIC Holdings, LP, a subsidiary of MidCap FinCo Designated Activity Company (together with its subsidiaries, “MidCap Financial”), a middle-market specialty finance firm discretionarily managed by an affiliate of the Company's investment adviser, in connection with the issuance and sale of the Company's common stock, par value $ 0.001 per share (the “Offering”). Pursuant to the Purchase Agreement, the Company issued 1,932,641 shares of its common stock at a purchase price of $ 15.52 per share, the net asset value per share of the Company's common stock as of June 30, 2022. The total proceeds of the offering excluding expenses was approximately $ 30,000,000 . The shares will be subject to a two-year lock-up period. MidCap Financial agreed to bear any expenses that the Company may incur in connection with the offering of its shares of common stock in connection with the Offering greater than $ 300,000 .

Note 8. Commitments and Contingencies

The Company has various commitments to fund various revolving and delayed draw senior secured and subordinated loans, including commitments to issue letters of credit through a financial intermediary on behalf of certain portfolio companies. As of September 30, 2022 and March 31, 2022, the Company had the following unfunded commitments to its portfolio companies:


	September 30, 2022		March 31, 2022
Unfunded revolver obligations and bridge loan commitments (1)	$	157,807	$	182,645
Standby letters of credit issued and outstanding (2)		39,523		31,188
Unfunded delayed draw loan commitments (including commitments with performance thresholds not met) (3)		209,342		272,787
Total Unfunded Commitments (4)	$	406,672	$	486,620

____________________

(1)

The unfunded revolver obligations may or may not be funded to the borrowing party in the future. The amounts relate to loans with various maturity dates, but the entire amount was eligible for funding to the borrowers as of September 30, 2022 and March 31, 2022, subject to the terms of each loan’s respective credit agreements which includes borrowing covenants that need to be met prior to funding. As of September 30, 2022 and March 31, 2022, the bridge loan commitments included in the balances were $ 0 and $ 0 , respectiv ely.

(2)

For all these letters of credit issued and outstanding, the Company would be required to make payments to third parties if the portfolio companies were to default on their related payment obligations. None of the letters of credit issued and outstanding are recorded as a liability on the Company’s Statements of Assets and Liabilities as such letters of credit are considered in the valuation of the investments in the portfolio company.

(3)

The Company’s commitment to fund delayed draw loans is triggered upon the satisfaction of certain pre-negotiated terms and conditions which can include covenants to maintain specified leverage levels and other related borrowing base covenants. For commitments to fund delayed draw loans with performance thresholds, borrowers are required to meet certain performance requirements before the Company is obligated to fulfill these commitments.

(4)

The Company also had an unfunded revolver commitment to its fully controlled affiliate Merx Aviation Finance, LLC of $ 50,000 and $ 25,000 as of September 30, 2022 and March 31, 2022, respectively. Given the Company’s controlling interest, the timing and the amount of the funding has not been determined.

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MIDCAP FINANCIAL INVESTMENT CORPORATION

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

Note 9. Financial Highlights

The following is a schedule of financial highlights for the six months ended September 30, 2022 and 2021 .


		Six Months Ended September 30, 2022				Six Months Ended September 30, 2021
		(Unaudited)				(Unaudited)
Per Share Data*
Net asset value at beginning of period	$		15.79		$		15.88
Net investment income (1)			0.72				0.72
Net realized and change in unrealized gains (losses) (1)			( 0.38	)			0.17
Net increase in net assets resulting from operations			0.34				0.88
Distribution of net investment income (2)			( 0.68	)			( 0.72	)
Distribution of return of capital (2)			—				—
Accretion due to share repurchases			0.01				0.02
Net asset value at end of period	$		15.45		$		16.07

Per share market value at end of period	$		10.22		$		12.97
Total return (3)		( 17.79 )%				( 0.37 )%
Shares outstanding at end of period			65,451,359				64,662,651
Weighted average shares outstanding			64,150,905				65,115,530

Ratio/Supplemental Data
Net assets at end of period (in millions)	$		1,011.0		$		1,039.1
Annualized ratio of operating expenses to average net assets (4)(5)			5.96	%			5.81	%
Annualized ratio of interest and other debt expenses to average net assets (5)			7.23	%			5.10	%
Annualized ratio of total expenses to average net assets (4)(5)			13.19	%			10.91	%
Annualized ratio of net investment income to average net assets (5)			9.20	%			8.94	%
Average debt outstanding (in millions)	$		1,580.0		$		1,499.6
Average debt per share	$		24.63		$		23.03
Annualized portfolio turnover rate (5)			27.05	%			35.04	%
Asset coverage per unit (6)	$		1,655		$		1,648

____________________

* Totals may not foot due to rounding.

(1)

Financial highlights are based on the weighted average number of shares outstanding for the period presented.

(2)

The tax character of distributions are determined based on taxable income calculated in accordance with income tax regulations which may differ from amounts determined under GAAP. Although the tax character of distributions paid to stockholders through September 30, 2022 may include return of capital, the exact amount cannot be determined at this point. Per share amounts are based on actual rate per share.

(3)

Total return is based on the change in market price per share during the respective periods. Total return also takes into account distributions, if any, reinvested in accordance with the Company’s dividend reinvestment plan. Total return does not reflect sales load.

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MIDCAP FINANCIAL INVESTMENT CORPORATION

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

(In thousands, except share and per share data)

(4)

The ratio of operating expenses to average net assets and the ratio of total expenses to average net assets are shown inclusive of all voluntary management and incentive fee waivers (See Note 3 to the financial statements). For the six months ended September 30, 2022, the annualized ratio of operating expenses to average net assets and the annualized ratio of total expenses to average net assets would be 6.02 % and 13.32 %, respecti vely, without the voluntary fee waivers. For the six months ended September 30, 2021, the annualized ratio of operating expenses to average net assets and the annualized ratio of total expenses to average net assets would be 5.86 % and 10.97 %, respectively, without the voluntary fee waivers.

(5)

Annualized for the six months ended September 30, 2022 and 2021.

(6)

The asset coverage ratio for a class of senior securities representing indebtedness is calculated as our total assets, less all liabilities and indebtedness not represented by senior securities, divided by senior securities representing indebtedness. This asset coverage ratio is multiplied by one thousand to determine the asset coverage per unit.

Note 10. Subsequent Events

Management has evaluated subsequent events through the date of issuance of these financial statements and has determined that there are no subsequent events outside the ordinary scope of business that require adjustment to, or disclosure in, the financial statements other than those disclosed below.

On November 3, 2022, the Company's Board changed the Company’s fiscal year end from March 31 to December 31, effective December 31, 2022. Accordingly, the Company will file its next Annual Report on Form 10-K for the fiscal year ended December 31, 2022 with the SEC. The Company will include the necessary financial information for the transition period from March 31, 2022 to December 31, 2022 in its Annual Report.

On November 3, 2022 , the Company’s Board of Directors declared a base distribution of $ 0.37 per share, payable on January 5, 2023 to stockholders of record as of December 19, 2022 . There can be no assurances that the Board will continue to declare a base distribution of $ 0.37 per share.

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Report of Independent Registered Public Accounting Firm

To the stockholders and Board of Directors of MidCap Financial Investment Corporation

Results of Review of Interim Financial Information

We have reviewed the accompanying statement of assets and liabilities, including the schedule of investments, of MidCap Financial Investment Corporation (the “Company”) as of September 30, 2022, the related statements of operations and changes in net assets for the three-month and six-month periods ended September 30, 2022, the statement of cash flows and financial highlights for the six-month period ended September 30, 2022, and the related notes (collectively referred to as the "interim financial information"). Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial information for it to be in conformity with accounting principles generally accepted in the United States of America.

Basis for Review Results

This interim financial information is the responsibility of the Company's management. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our reviews in accordance with standards of the PCAOB. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

/s/ Deloitte & Touche LLP

New York, New York

November 3, 2022

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Report of Independent Registered Public Accounting Firm

To the Board of Directors and Stockholders of MidCap Financial Investment Corporation

Results of Review of Interim Financial Statements

We have reviewed the accompanying statements of operations and of changes in net assets of MidCap Financial Investment Corporation (the “Company”) for the three-month and six-month periods ended September 30, 2021, and the statement of cash flows for the six-month period ended September 30, 2021, including the related notes (collectively referred to as the “interim financial statements”). Based on our review, we are not aware of any material modifications that should be made to the accompanying interim financial statements for them to be in conformity with accounting principles generally accepted in the United States of America.

Basis for Review Results

These interim financial statements are the responsibility of the Company’s management. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our review in accordance with the standards of the PCAOB. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

/s/ PricewaterhouseCoopers LLP

New York, New York

November 4, 2021

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following analysis of our financial condition and results of operations should be read in conjunction with our financial statements and the notes thereto contained elsewhere in this report. Some of the statements in this report constitute forward-looking statements, which relate to future events or our future performance or financial condition. The forward-looking statements contained herein involve risks and uncertainties, including statements as to:

•

our future operating results;

•

our business prospects and the prospects of our portfolio companies;

•

the impact of investments that we expect to make;

•

our contractual arrangements and relationships with third parties;

•

the dependence of our future success on the general economy and its impact on the industries in which we invest;

•

the ability of our portfolio companies to achieve their objectives;

•

our expected financings and investments;

•

the adequacy of our cash resources and working capital;

•

the current and future effects of the COVID-19 pandemic on us and our portfolio companies; and

•

the timing of cash flows, if any, from the operations of our portfolio companies.

We generally use words such as “anticipates,” “believes,” “expects,” “intends” and similar expressions to identify forward-looking statements. Our actual results could differ materially from those projected in the forward-looking statements for any reason, including any factors set forth in “Risk Factors” and elsewhere in this report.

We have based the forward-looking statements included in this report on information available to us on the date of this report, and we assume no obligation to update any such forward-looking statements. Although we undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that we may make directly to you or through reports that we in the future may file with the Securities and Exchange Commission (“SEC”), including any annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.

Overview

MidCap Financial Investment Corporation (the “Company,” “MFIC,” “we,” “us,” or “our”) was incorporated under the Maryland General Corporation Law in February 2004. We have elected to be treated as a business development company (“BDC”) under the Investment Company Act of 1940 (the “1940 Act”). As such, we are required to comply with certain regulatory requirements. For instance, we generally have to invest at least 70% of our total assets in “qualifying assets,” including securities of private or thinly traded public U.S. companies, cash equivalents, U.S. government securities and high-quality debt investments that mature in one year or less. In addition, for federal income tax purposes we have elected to be treated as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). Pursuant to this election and assuming we qualify as a RIC, we generally do not have to pay corporate-level federal income taxes on any income we distribute to our stockholders. We commenced operations on April 8, 2004 upon completion of our initial public offering that raised $870 million in net proceeds from selling 62 million shares of common stock at a price of $15.00 per share (20.7 million shares at a price of $45.00 per share adjusted for the one-for-three reverse stock split). Since then, and through September 30, 2022, we have raised approximately $2.24 billion in net proceeds from additional offerings of common stock and we have repurchased common stock for $245.8 million.

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On August 1, 2022, the Company changed its name from "Apollo Investment Corporation" to "MidCap Financial Investment Corporation." Our common stock began to trade under the ticker “MFIC” on the NASDAQ Global Stock Market on August 12, 2022.

Apollo Investment Management, L.P. (the “Investment Adviser” or “AIM”) is our investment adviser and an affiliate of Apollo Global Management, Inc. and its consolidated subsidiaries (“AGM”). The Investment Adviser, subject to the overall supervision of our Board of Directors, manages the day-to-day operations of, and provides investment advisory services to the Company. AGM and other affiliates manage other funds that may have investment mandates that are similar, in whole or in part, with ours. AIM and its affiliates may determine that an investment is appropriate both for us and for one or more of those other funds. In such event, depending on the availability of such investment and other appropriate factors, AIM may determine that we should invest on a side-by-side basis with one or more other funds. We make all such investments subject to compliance with applicable regulations and interpretations, and our allocation procedures. Certain types of negotiated co-investments may be made only in accordance with the terms of the exemptive order (the “Order”) we received from the SEC permitting us to do so. Under the terms of the Order, a “required majority” (as defined in Section 57(o) of the 1940 Act) of our independent directors must be able to reach certain conclusions in connection with a co-investment transaction, including that (1) the terms of the proposed transaction are reasonable and fair to us and our stockholders and do not involve overreaching of us or our stockholders on the part of any person concerned, and (2) the transaction is consistent with the interests of our stockholders and is consistent with our Board of Directors’ approved criteria. In certain situations where co-investment with one or more funds managed by AIM or its affiliates is not covered by the Order, the personnel of AIM or its affiliates will need to decide which fund will proceed with the investment. Such personnel will make these determinations based on allocation policies and procedures, which are designed to reasonably ensure that investment opportunities are allocated fairly and equitably among affiliated funds over time and in a manner that is consistent with applicable laws, rules and regulations. The Order is subject to certain terms and conditions so there can be no assurance that we will be permitted to co-invest with certain of our affiliates other than in the circumstances currently permitted by regulatory guidance and the Order.

Apollo Investment Administration, LLC (the “Administrator” or “AIA”), an affiliate of AGM, provides, among other things, administrative services and facilities for the Company. In addition to furnishing us with office facilities, equipment, and clerical, bookkeeping and recordkeeping services, AIA also oversees our financial records as well as prepares our reports to stockholders and reports filed with the SEC. AIA also performs the calculation and publication of our net asset value, the payment of our expenses and oversees the performance of various third-party service providers and the preparation and filing of our tax returns. Furthermore, AIA provides on our behalf managerial assistance to those portfolio companies to which we are required to provide such assistance.

Investments

Our investment objective is to generate current income and capital appreciation. We invest primarily in various forms of debt investments, including secured and unsecured debt, loan investments, and/or equity in private middle-market companies. We may also invest in the securities of public companies and in structured products and other investments such as collateralized loan obligations (“CLOs”) and credit-linked notes (“CLNs”). Our portfolio is comprised primarily of investments in debt, including secured and unsecured debt of private middle-market companies that, in the case of senior secured loans, generally are not broadly syndicated and whose aggregate tranche size is typically less than $250 million. Our portfolio also includes equity interests such as common stock, preferred stock, warrants or options.

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Our level of investment activity can and does vary substantially from period to period depending on many factors, including the amount of debt and equity capital available to middle-market companies, the level of merger and acquisition activity for such companies, the general economic environment, the competitive environment for the types of investments we make and, more recently, market disruptions due to COVID-19. As a BDC, we must not acquire any assets other than “qualifying assets” specified in the 1940 Act unless, at the time the acquisition is made, at least 70% of our total assets are qualifying assets (with certain limited exceptions). As of September 30, 2022, non-qualifying assets represented approximately 6.7% of the total assets of the Company.

Revenue

We generate revenue primarily in the form of interest and dividend income from the securities we hold and capital gains, if any, on investment securities that we may acquire in portfolio companies. Our debt investments, whether in the form of mezzanine or senior secured loans, generally have a stated term of five to ten years and bear interest at a fixed rate or a floating rate usually determined on the basis of a benchmark, such as the London Interbank Offered Rate (“LIBOR”), the Euro Interbank Offered Rate (“EURIBOR”), the federal funds rate, or the prime rate. Interest on debt securities is generally payable quarterly or semiannually and while U.S. subordinated debt and corporate notes typically accrue interest at fixed rates, some of our investments may include zero coupon and/or step-up bonds that accrue income on a constant yield to call or maturity basis. In addition, some of our investments provide for payment-in-kind (“PIK”) interest or dividends. Such amounts of accrued PIK interest or dividends are added to the cost of the investment on the respective capitalization dates and generally become due at maturity of the investment or upon the investment being called by the issuer. We may also generate revenue in the form of commitment, origination, structuring fees, fees for providing managerial assistance and, if applicable, consulting fees, etc.

Expenses

For all investment professionals of AIM and their staff, when and to the extent engaged in providing investment advisory and management services to us, the compensation and routine overhead expenses of that personnel which is allocable to those services are provided and paid for by AIM. We bear all other costs and expenses of our operations and transactions, including those relating to:

•

investment advisory and management fees;

•

expenses incurred by AIM payable to third parties, including agents, consultants or other advisors, in monitoring our financial and legal affairs and in monitoring our investments and performing due diligence on our prospective portfolio companies;

•

calculation of our net asset value (including the cost and expenses of any independent valuation firm);

•

direct costs and expenses of administration, including independent registered public accounting and legal costs;

•

costs of preparing and filing reports or other documents with the SEC;

•

interest payable on debt, if any, incurred to finance our investments;

•

offerings of our common stock and other securities;

•

registration and listing fees;

•

fees payable to third parties, including agents, consultants or other advisors, relating to, or associated with, evaluating and making investments;

•

transfer agent and custodial fees;

•

taxes;

•

independent directors’ fees and expenses;

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•

marketing and distribution-related expenses;

•

the costs of any reports, proxy statements or other notices to stockholders, including printing and postage costs;

•

our allocable portion of the fidelity bond, directors and officers/errors and omissions liability insurance, and any other insurance premiums;

•

organizational costs; and

•

all other expenses incurred by us or the Administrator in connection with administering our business, such as our allocable portion of overhead under the administration agreement, including rent and our allocable portion of the cost of our Chief Financial Officer, Chief Legal Officer and Chief Compliance Officer and their respective staffs.

We expect our general and administrative operating expenses related to our ongoing operations to increase moderately in dollar terms. During periods of asset growth, we generally expect our general and administrative operating expenses to decline as a percentage of our total assets and increase during periods of asset declines. Incentive fees, interest expense and costs relating to future offerings of securities, among others, may also increase or reduce overall operating expenses based on portfolio performance, interest rate benchmarks, and offerings of our securities relative to comparative periods, among other factors.

Portfolio and Investment Activity

Our portfolio and investment activity during the three and six months ended September 30, 2022 and 2021 was as follows:


	Three Months Ended September 30,						Six Months Ended September 30,
(in millions)*	2022			2021			2022			2021
Investments made in portfolio companies	$	113.0			290.1		$	341.0		$	585.3
Investments sold		—			(10.7	)		—			(10.7	)
Net activity before repaid investments		113.0			279.4			341.0			574.6
Investments repaid		(196.0	)		(165.6	)		(380.0	)		(431.7	)
Net investment activity	$	(83.0	)		113.8		$	(39.0	)	$	142.9

Portfolio companies, at beginning of period		140			140			139			135
Number of investments in new portfolio companies		1			9			8			20
Number of exited companies		(5	)		(5	)		(11	)		(11	)
Portfolio companies at end of period		136			144			136			144

Number of investments in existing portfolio companies		51			48			70			59

____________________

* Totals may not foot due to rounding.

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Our portfolio composition and weighted average yields as of September 30, 2022 and March 31, 2022 were as follows:


	September 30, 2022		March 31, 2022
Portfolio composition, at fair value:
First lien secured debt		87 %		90 %
Second lien secured debt		4 %		4 %
Total secured debt		91 %		94 %
Structured products and other		0 %		0 %
Preferred equity		2 %		1 %
Common equity/interests and warrants		7 %		5 %
Weighted average yields, at amortized cost (1):
First lien secured debt (2)		9.6 %		8.0 %
Second lien secured debt (2)		11.8 %		9.6 %
Secured debt portfolio (2)		9.6 %		8.1 %
Total debt portfolio (2)		9.6 %		8.1 %
Total portfolio (3)		8.0 %		7.1 %
Interest rate type, at fair value (4):
Fixed rate amount	$	0.0 billion	$	0.0 billion
Floating rate amount	$	2.0 billion	$	2.0 billion
Fixed rate, as percentage of total		1 %		1 %
Floating rate, as percentage of total		99 %		99 %
Interest rate type, at amortized cost (4):
Fixed rate amount	$	0.0 billion	$	0.0 billion
Floating rate amount	$	2.0 billion	$	2.0 billion
Fixed rate, as percentage of total		1 %		1 %
Floating rate, as percentage of total		99 %		99 %

____________________

(1)

An investor’s yield may be lower than the portfolio yield due to sales loads and other expenses.

(2)

Exclusive of investments on non-accrual status.

(3)

Inclusive of all income generating investments, non-income generating investments and investments on non-accrual status.

(4)

The interest rate type information is calculated using the Company’s corporate debt portfolio and excludes aviation, oil and gas, structured credit, renewables, shipping, commodities and investments on non-accrual status.

Since the initial public offering of MidCap Financial Investment Corporation in April 2004 and through September 30, 2022, invested capital totaled $23.3 billion in 593 portfolio companies. Over the same period, the Company completed transactions with more than 100 different financial sponsors.

Critical Accounting Policies

Our discussion and analysis of our financial condition and results of operations are based upon our financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, gains and losses. Changes in the economic environment, financial markets, credit worthiness of portfolio companies and any other parameters used in determining such estimates could cause actual results to differ materially. In addition to the discussion below, our critical accounting policies are further described in the notes to the financial statements.

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Fair Value Measurements

ASC 820 classifies the inputs used to measure these fair values into the following hierarchy:

Level 1: Quoted prices in active markets for identical assets or liabilities, accessible by us at the measurement date.

Level 3: Unobservable inputs for the asset or liability.

As of September 30, 2022, $2.46 billion or 99.9% of the Company’s investments were classified as Level 3. The high proportion of Level 3 investments relative to our total investments is directly related to our investment philosophy and target portfolio, which consists primarily of long-term secured debt, as well as unsecured and mezzanine positions of private middle-market companies. A fundamental difference exists between our investments and those of comparable publicly traded fixed income investments, namely high-yield bonds, and this difference affects the valuation of our private investments relative to comparable publicly traded instruments.

Senior secured loans, or senior loans, are higher in the capital structure than high-yield bonds, and are typically secured by assets of the borrowing company. This improves their recovery prospects in the event of default and affords senior loans a structural advantage over high-yield bonds. Many of the Company’s investments are also privately negotiated and contain covenant protections that limit the issuer to take actions that could harm us as a creditor. High-yield bonds typically do not contain such covenants.

Given the structural advantages of capital seniority and covenant protection, the valuation of our private debt portfolio is driven more by investment specific credit factors than movements in the broader debt capital markets. Each security is evaluated individually and as indicated below, we value our private investments based upon a multi-step valuation process, including valuation recommendations from independent valuation firms.

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Investment Valuation Process

The Board has designated the Investment Adviser as its "valuation designee" pursuant to Rule 2a-5 under the 1940 Act, and in that role the Investment Adviser is responsible for performing fair value determinations relating to all of the Company's investments, including periodically assessing and managing any material valuation risks and establishing and applying fair value methodologies, in accordance with valuation policies and procedures that have been approved by the Company's Board of Directors. Even though the Company's Board of Directors designated the Company's Investment Adviser as "valuation designee," the Company's Board of Directors continues to be responsible for overseeing the process for determining fair valuation.

Under the fund's valuation policies and procedures, the Investment Adviser values investments, including certain secured debt, unsecured debt, and other debt securities with maturities greater than 60 days, for which market quotations are readily available, at such market quotations (unless they are deemed not to represent fair value). We attempt to obtain market quotations from at least two brokers or dealers (if available, otherwise from a principal market maker, primary market dealer or other independent pricing service). We utilize mid-market pricing as a practical expedient for fair value unless a different point within the range is more representative. If and when market quotations are unavailable or are deemed not to represent fair value, we typically utilize independent third party valuation firms to assist us in determining fair value. Accordingly, such investments go through our multi-step valuation process as described below. In each case, our independent third party valuation firms consider observable market inputs together with significant unobservable inputs in arriving at their valuation recommendations for such investments. Investments purchased within the quarter before the valuation date and debt investments with remaining maturities of 60 days or less may each be valued at cost with interest accrued or discount accreted/premium amortized to the date of maturity (although they are typically valued at available market quotations), unless such valuation, in the judgment of our Investment Adviser, does not represent fair value. In this case, such investments shall be valued at fair value as determined in good faith by or under the direction of the Investment Adviser, including using market quotations where available. Investments that are not publicly traded or whose market quotations are not readily available are valued at fair value as determined in good faith by or under the direction of the Investment Adviser. Such determination of fair values may involve subjective judgments and estimates.

Our quarterly valuation process begins with each portfolio company or investment being initially valued by using certain inputs provided, among others, by the investment professionals of our Investment Adviser who are responsible for the portfolio investment.

Preliminary valuation conclusions are then documented and discussed with senior management of our Investment Adviser.

The Investment Adviser discusses valuations and determines in good faith the fair value of each investment in our portfolio based on the input of the applicable independent valuation firm.

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Investments determined by these valuation procedures which have a fair value of less than $1 million during the prior fiscal quarter may be valued based on inputs identified by the Investment Adviser without the necessity of obtaining valuation from an independent valuation firm, if once annually an independent valuation firm using the procedures described herein provides an independent assessment of value. Investments in all asset classes are valued utilizing a market approach, an income approach, or both approaches, as appropriate. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities (including a business). The income approach uses valuation techniques to convert future amounts (for example, cash flows or earnings) to a single present amount (discounted). The measurement is based on the value indicated by current market expectations about those future amounts. In following these approaches, the types of factors that we may take into account in fair value pricing our investments include, as relevant: available current market data, including relevant and applicable market trading and transaction comparables, applicable market yields and multiples, security covenants, seniority of investment in the investee company’s capital structure, call protection provisions, information rights, the nature and realizable value of any collateral, the portfolio company’s ability to make payments, its earnings and discounted cash flows, the markets in which the portfolio company does business, comparisons of financial ratios of peer companies that are public, M&A comparables, our principal market (as the reporting entity) and enterprise values, among other factors. When readily available, broker quotations and/or quotations provided by pricing services are considered as an input in the valuation process. During the three months ended September 30, 2022, there were no significant changes to the Company’s valuation techniques and related inputs considered in the valuation process.

Investment Income Recognition

The Company records interest and dividend income, adjusted for amortization of premium and accretion of discount, on an accrual basis. Some of our loans and other investments, including certain preferred equity investments, may have contractual PIK interest or dividends. PIK income computed at the contractual rate is accrued into income and reflected as receivable up to the capitalization date. Certain PIK investments offer issuers the option at each payment date of making payments in cash or in additional securities. When additional securities are received, they typically have the same terms, including maturity dates and interest rates as the original securities issued. On these payment dates, the Company capitalizes the accrued interest or dividends receivable (reflecting such amounts as the basis in the additional securities received). PIK generally becomes due at maturity of the investment or upon the investment being called by the issuer. At the point the Company believes PIK is not expected to be realized, the PIK investment will be placed on non-accrual status. When a PIK investment is placed on non-accrual status, the accrued, uncapitalized interest or dividends are reversed from the related receivable through interest or dividend income, respectively. The Company does not reverse previously capitalized PIK interest or dividends. Upon capitalization, PIK is subject to the fair value estimates associated with their related investments. PIK investments on non-accrual status are restored to accrual status if the Company believes that PIK is expected to be realized.

Loan origination fees, original issue discount (“OID”), and market discounts are capitalized and accreted into interest income over the respective terms of the applicable loans using the effective interest method or straight-line, as applicable. Upon the prepayment of a loan, prepayment premiums, any unamortized loan origination fees, OID, or market discounts are recorded as interest income. Other income generally includes amendment fees, administrative fees, management fees, bridge fees, and structuring fees which are recorded when earned.

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The Company records as dividend income the accretable yield from its beneficial interests in structured products such as CLOs based upon a number of cash flow assumptions that are subject to uncertainties and contingencies. Such assumptions include the rate and timing of principal and interest receipts (which may be subject to prepayments and defaults) of the underlying pools of assets. These assumptions are updated on at least a quarterly basis to reflect changes related to a particular security, actual historical data, and market changes. A structured product investment typically has an underlying pool of assets. Payments on structured product investments are payable solely from the cash flows from such assets. As such any unforeseen event in these underlying pools of assets might impact the expected recovery and future accrual of income.

Expenses

Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses)

We measure realized gains or losses by the difference between the net proceeds from the repayment or sale and the amortized cost basis of the investment, without regard to unrealized gains or losses previously recognized, but considering unamortized upfront fees and prepayment penalties. Net change in unrealized gain (loss) reflects the net change in portfolio investment values during the reporting period, including the reversal of previously recorded unrealized gains or losses.

Within the context of these critical accounting policies, we are not currently aware of any reasonably likely events or circumstances that would result in materially different amounts being reported.

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Results of Operations

Operating results for the three and six months ended September 30, 2022 and 2021 were as follows:


	Three Months Ended September 30,						Six Months Ended September 30,
(in millions)*	2022			2021			2022			2021
Investment Income
Interest income (excluding Payment-in-kind (“PIK”) interest income)	$	56.3		$	48.2		$	107.9		$	95.7
Dividend income		0.3			2.7			0.6			3.1
PIK interest income		0.9			0.9			1.8			2.5
Other income		1.5			1.0			2.0			2.2
Total investment income	$	58.9		$	52.9		$	112.3		$	103.4
Expenses
Management and performance-based incentive fees, net of amounts waived	$	12.8		$	14.3		$	23.1		$	23.1
Interest and other debt expenses, net of reimbursements		20.0			13.9			36.3			26.6
Administrative services expense, net of reimbursements		1.2			1.6			2.4			2.8
Other general and administrative expenses		2.2			1.8			4.4			4.3
Net Expenses	$	36.2		$	31.7		$	66.2		$	56.9
Net Investment Income	$	22.6		$	21.2		$	46.1		$	46.6
Net Realized and Change in Unrealized Gains (Losses)
Net realized gains (losses)	$	(0.2	)	$	(64.8	)	$	0.1		$	(64.7	)
Net change in unrealized gains (losses)		(6.5	)		69.0			(24.6	)		75.7
Net Realized and Change in Unrealized Gains (Losses)	$	(6.6	)	$	4.2			(24.5	)		11.0
Net Increase in Net Assets Resulting from Operations	$	16.0		$	25.4		$	21.7		$	57.6

Net Investment Income on Per Average Share Basis (1)	$	0.35		$	0.33		$	0.72		$	0.72
Earnings per share — basic (1)	$	0.25		$	0.39		$	0.34		$	0.88

____________________

* Totals may not foot due to rounding.

(1)

Based on the weighted average number of shares outstanding for the period presented.

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Total Investment Income

For the three months ended September 30, 2022 as compared to the three months ended September 30, 2021

The increase in total investment income for the three months ended September 30, 2022 compared to the three months ended September 30, 2021 was primarily driven by the increase in total interest income (including PIK) of $8.1 million. The increase in total interest income (including PIK) was due to an increase in the average yield for the total debt portfolio, from 7.9% for the three months ended September 30, 2021 to 9.1% for the three months ended September 30, 2022. Additionally, there was an increase in prepayment fees and income recognized from the acceleration of discount, premium, or deferred fees on repaid investments, which totaled $0.7 million for the three months ended September 30, 2021 and $3.0 million for the three months ended September 30, 2022. This was partially offset by a lower income-bearing investment portfolio. The $2.5 million decrease in dividend income was primarily due to a decrease in dividends received from MSEA Tankers LLC. Furthermore, there was also an increase in other income of $0.5 million due to higher amendment fees.

For the six months ended September 30, 2022 as compared to the six months ended September 30, 2021

The increase in total investment income for the six months ended September 30, 2022 compared to the six months ended September 30, 2021 was primarily driven by the increase in total interest income (including PIK) of $11.6 million. The increase in total interest income (including PIK) was due to an increase in the average yield for the total debt portfolio, from 7.9% for the six months ended September 30, 2021 to 8.8% for the six months ended September 30, 2022. Furthermore, the $2.5 million decrease in dividend income was primarily due to a decrease in dividends received from MSEA Tankers LLC.

Net Expenses

For the three months ended September 30, 2022 as compared to the three months ended September 30, 2021

The increase in net expenses for the three months ended September 30, 2022 compared to the three months ended September 30, 2021 was primarily driven by the increase in interest and other debt expenses of $6.1 million. The increase in interest and other debt expenses was attributed to an increase in total annualized cost of debt, from 3.60% for the three months ended September 30, 2021 to 5.17% for the three months ended September 30, 2022. Further, the decrease of $1.5 million in management and performance-based incentive fees (net of amounts waived) was due to a decrease in performance based incentive fees.

For the six months ended September 30, 2022 as compared to the six months ended September 30, 2021

The increase in net expenses for the six months ended September 30, 2022 compared to the six months ended September 30, 2021 was primarily due to the increase in interest and other debt expenses The increase of $9.7 million in interest and other debt expenses was attributed to an increase in total annualized cost of debt, from 3.54% for the six months ended September 30, 2021 to 4.58% for the six months ended September 30, 2022. Furthermore there was a increase in the average debt outstanding, from $1.50 billion during the six months ended September 30, 2021 to $1.58 billion during the six months ended September 30, 2022.

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Net Realized Gains (Losses)

For the three months ended September 30, 2022 as compared to the three months ended September 30, 2021

During the three months ended September 30, 2022, we recognized gross realized gains of $0.3 million and gross realized losses of $0.5 million, resulting in net realized losses of $0.2 million.

During the three months ended September 30, 2021, we recognized gross realized gains of $3.1 million and gross realized losses of $67.9 million, resulting in net realized losses of $64.8 million. Significant realized gains (losses) for the three months ended September 30, 2021 are summarized below:


(in millions)	Net Realized Gain (Loss)
Niacet Corporation	$	1.1
Spotted Hawk		(44.4	)
Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.)		(20.9	)

For the six months ended September 30, 2022 as compared to the six months ended September 30, 2021

During the six months ended September 30, 2022, we recognized gross realized gains of $0.8 million and gross realized losses of $0.7 million, resulting in net realized gains of $0.1 million.

During the six months ended September 30, 2021, we recognized gross realized gains of $3.4 million and gross realized losses of $68.1 million, resulting in net realized losses of $64.7 million. Significant realized gains (losses) for the six months ended September 30, 2021 are summarized below:


(in millions)	Net Realized Gain (Loss)
Niacet Corporation	$	1.1
Spotted Hawk		(44.4	)
Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.)		(20.9	)

Net Change in Unrealized Gains (Losses)

For the three months ended September 30, 2022 as compared to the three months ended September 30, 2021

During the three months ended September 30, 2022, we recognized gross unrealized gains of $25.4 million and gross unrealized losses of $31.9 million, including the impact of transferring unrealized to realized gains (losses), resulting in net change in unrealized losses of $6.5 million. Significant changes in unrealized gains (losses) for the three months ended September 30, 2022 are summarized below:


(in millions)	Net Change in Unrealized Gain (Loss)
ChyronHego Corporation	$	7.1
Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.)		4.2
MSEA Tankers LLC		1.5
AVAD, LLC		1.3
Ambrosia Buyer Corp.		1.3
Spotted Hawk		(7.0	)
K&N Parent, Inc.		(5.3	)
Merx Aviation Finance, LLC		(4.5	)
NFA Group		(3.0	)
Renew Financial LLC (f/k/a Renewable Funding, LLC)		(1.7	)
The Club Company		(1.1	)

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During the three months ended September 30, 2021, we recognized gross unrealized gains of $81.8 million and gross unrealized losses of $12.8 million, including the impact of transferring unrealized to realized gains (losses), resulting in net change in unrealized gains of $69.0 million. Significant changes in unrealized gains (losses) for the three months ended September 30, 2021 are summarized below:


(in millions)	Net Change in Unrealized Gain (Loss)
Spotted Hawk	$	40.1
Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.)		22.7
Carbonfree Chemicals SPE I LLC (f/k/a Maxus Capital Carbon SPE I LLC)		9.1
Sequential Brands Group, Inc.		1.2
Dynamic Product Tankers (Prime), LLC		(4.0	)
MSEA Tankers LLC		(2.3	)
Niacet Corporation		(1.3	)
NFA Group		(1.1	)

For the six months ended September 30, 2022 as compared to the six months ended September 30, 2021

During the six months ended September 30, 2022, we recognized gross unrealized gains of $33.1 million and gross unrealized losses of $57.7 million, including the impact of transferring unrealized to realized gains (losses), resulting in net change in unrealized losses of $24.6 million. Significant changes in unrealized gains (losses) for the six months ended September 30, 2022 are summarized below:


(in millions)	Net Change in Unrealized Gain (Loss)
ChyronHego Corporation	$	8.2
Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.)		7.0
Ambrosia Buyer Corp.		2.3
Emmes Corporation		1.7
AVAD, LLC		1.3
MSEA Tankers LLC		1.0
Merx Aviation Finance, LLC		(18.6	)
NFA Group		(5.9	)
K&N Parent, Inc.		(5.5	)
Spotted Hawk		(3.7	)
Renew Financial LLC (f/k/a Renewable Funding, LLC)		(2.4	)
The Club Company		(2.1	)
Golden Bear		(1.3	)
Carbonfree Chemicals SPE I LLC (f/k/a Maxus Capital Carbon SPE I LLC)		(1.1	)

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During the six months ended September 30, 2021, we recognized gross unrealized gains of $97.3 million and gross unrealized losses of $21.6 million, including the impact of transferring unrealized to realized gains (losses), resulting in net change in unrealized gains of $75.7 million. Significant changes in unrealized gains (losses) for the six months ended September 30, 2021 are summarized below:


(in millions)	Net Change in Unrealized Gain (Loss)
Spotted Hawk	$	41.2
Carbonfree Chemicals SPE I LLC (f/k/a Maxus Capital Carbon SPE I LLC)		18.9
Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.)		18.7
Paper Source		3.0
Sequential Brands Group, Inc.		1.2
US Legal Support		1.1
Dynamic Product Tankers (Prime), LLC		(9.4	)
Ambrosia Buyer Corp.		(2.5	)
MSEA Tankers LLC		(2.5	)
Niacet Corporation		(1.1	)
NFA Group		(1.0	)

Liquidity and Capital Resources

The Company’s liquidity and capital resources are generated and generally available through periodic follow-on equity and debt offerings, our Senior Secured Facility (as defined in Note 6 to the financial statements), our senior secured notes, our senior unsecured notes, investments in special purpose entities in which we hold and finance particular investments on a non-recourse basis, as well as from cash flows from operations, investment sales of liquid assets and repayments of senior and subordinated loans and income earned from investments.

We believe that our current cash and cash equivalents on hand, our short-term investments, proceeds from the sale of our 2025 Notes and 2026 Notes, our available borrowing capacity under our Senior Secured Facility and our anticipated cash flows from operations will be adequate to meet our cash needs for our daily operations for at least the next twelve months. This "Liquidity and Capital Resources" section should be read in conjunction with "COVID-19 Developments" above.

Cash Equivalents

The Company defines cash equivalents as securities that are readily convertible into known amounts of cash and near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Generally, only securities with a maturity of three months or less from the date of purchase would qualify, with limited exceptions. The Company deems that certain money market funds, U.S. Treasury bills, repurchase agreements and other high-quality, short-term debt securities would qualify as cash equivalents (See Note 2 to the financial statements) At the end of each fiscal quarter, we consider taking proactive steps utilizing cash equivalents with the objective of enhancing our investment flexibility during the following quarter, pursuant to Section 55 of the 1940 Act. More specifically, we may purchase U.S. Treasury bills from time-to-time on the last business day of the quarter and typically close out that position on the following business day, settling the sale transaction on a net cash basis with the purchase, subsequent to quarter end. The Company may also utilize repurchase agreements or other balance sheet transactions, including drawing down on our Senior Secured Facility, as we deem appropriate. The amount of these transactions or such drawn cash for this purpose is excluded from total assets for purposes of computing the asset base upon which the management fee is determined.

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Debt

See Note 6 to the financial statements for information on the Company’s debt.

The following table shows the contractual maturities of our debt obligations as of September 30, 2022:


		Payments Due by Period
(in millions)	Total			Less than 1 Year		1 to 3 Years		3 to 5 Years			More than 5 Years
Senior Secured Facility (1)	$		1,034.0	$	—	$	—	$		1,034.0	$	—
2025 Notes			350.0		—		350.0		—			—
2026 Notes			125.0		—		—			125.0		—
Total Debt Obligations	$		1,509.0	$	—	$	350.0	$		1,159.0	$	—

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(1)

As of September 30, 2022, aggregate lender commitments under the Senior Secured Facility totaled $1.81 billion and $741.8 million of unused capacity. As of September 30, 2022, there were $34.5 million of letters of credit issued under the Senior Secured Facility as shown as part of total commitments in Note 8 to the financial statements.

Stockholders’ Equity

See Note 7 to the financial statements for information on the Company’s public offerings and share repurchase plans.

Distributions

Distributions paid to stockholders during the three and six months ended September 30, 2022 totaled $22.8 million ($0.36 per share) and $45.8 million ($0.72 per share), respectively. Distributions paid to stockholders during the three and six months ended September 30, 2021 totaled $23.4 million ($0.36 per share) and $46.9 million ($0.72 per share), respectively. For income tax purposes, distributions made to stockholders are reported as ordinary income, capital gains, non-taxable return of capital, or a combination thereof. Although the tax character of distributions paid to stockholders through September 30, 2022 may include return of capital, the exact amount cannot be determined at this point. The final determination of the tax character of distributions will not be made until we file our tax return for the tax year ended March 31, 2023. Tax characteristics of all distributions will be reported to stockholders on Form 1099 after the end of the calendar year. Our quarterly distributions, if any, will be determined by our Board of Directors.

To maintain our RIC status, we must distribute at least 90% of our ordinary income and realized net short-term capital gains in excess of realized net long-term capital losses, if any, out of the assets legally available for distribution. Although we currently intend to distribute realized net capital gains (i.e., net long-term capital gains in excess of short-term capital losses), if any, at least annually, out of the assets legally available for such distributions, we may in the future decide to retain such capital gains for investment. Currently, we have substantial net capital loss carryforwards and consequently do not expect to generate cumulative net capital gains in the foreseeable future.

We maintain an “opt out” dividend reinvestment plan for our common stockholders. As a result, if we declare a dividend, then stockholders’ cash dividends will be automatically reinvested in additional shares of our common stock, unless they specifically “opt out” of the dividend reinvestment plan so as to receive cash dividends.

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We may not be able to achieve operating results that will allow us to make distributions at a specific level or to increase the amount of these distributions from time to time. In addition, due to the asset coverage test applicable to us as a BDC, we may in the future be limited in our ability to make distributions. Also, our revolving credit facility may limit our ability to declare dividends if we default under certain provisions or fail to satisfy certain other conditions. If we do not distribute a certain percentage of our income annually, we may suffer adverse tax consequences, including possible loss of the tax benefits available to us as a RIC. In addition, in accordance with GAAP and tax regulations, we include in income certain amounts that we have not yet received in cash, such as contractual PIK, which represents contractual interest added to the loan balance that becomes due at the end of the loan term, or the accrual of original issue or market discount. Since we may recognize income before or without receiving cash representing such income, we may not be able to meet the requirement to distribute at least 90% of our investment company taxable income to obtain tax benefits as a RIC.

With respect to the distributions to stockholders, income from origination, structuring, closing, commitment and other upfront fees associated with investments in portfolio companies is treated as taxable income and accordingly, distributed to stockholders.

PIK Income

For the three and six months ended September 30, 2022, PIK income totaled $0.9 million and $1.8 million on total investment income of $58.9 million and $112.3 million, respectively. For the three and six months ended September 30, 2021, PIK income totaled $0.9 million and $2.5 million on total investment income of $52.9 million and $103.4 million respectively. In order to maintain the Company’s status as a RIC, this non-cash source of income must be paid out to stockholders annually in the form of distributions, even though the Company has not yet collected the cash. See Note 5 to the financial statements for more information on the Company’s PIK income.

Related Party Transactions

See Note 3 to the financial statements for information on the Company’s related party transactions.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

We are subject to financial market risks, including changes in interest rates and the valuations of our investment portfolio. Uncertainty with respect to the economic effects of rising interest rates in response to inflation, the war in Russia and Ukraine and the ongoing COVID-19 pandemic introduced significant volatility in the financial markets, and the effects of this volatility has materially impacted and could continue to materially impact our market risks, including those listed below. For additional information concerning these risks and their potential impact on our business and our operating results, see Part II - Other information, Item 1A. Risk Factors.

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Investment valuation risk

Because there is not a readily available market value for most of the investments in our portfolio, we value all of our portfolio investments at fair value as determined in good faith by our board of directors based on, among other things, the input of our management and audit committee and independent valuation firms that have been engaged at the direction of our board of directors to assist in the valuation of each portfolio investment without a readily available market quotation (with certain de minimis exceptions). Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of our investments may fluctuate from period to period. Additionally, the fair value of our investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values that we may ultimately realize. Further, such investments are generally subject to legal and other restrictions on resale or otherwise are less liquid than publicly traded securities. If we were required to liquidate a portfolio investment in a forced or liquidation sale, we could realize significantly less than the value at which we have recorded it. In addition, changes in the market environment and other events that may occur over the life of the investments may cause the gains or losses ultimately realized on these investments to be different than the unrealized gains or losses reflected in the valuations currently assigned. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies” and “—Fair Value Measurements” as well as Notes 2 and 5 to our financial statements for the three and six months ended September 30, 2022 for more information relating to our investment valuation .

Interest Rate Risk

Interest rate sensitivity refers to the change in our earnings that may result from changes in the level of interest rates. Because we fund a portion of our investments with borrowings, our net investment income is affected by the difference between the rate at which we invest and the rate at which we borrow. As a result, there can be no assurance that a significant change in market interest rates will not have a material adverse effect on our net investment income.

As of September 30, 2022 , all of our debt portfolio investments bore interest at variable rates, which generally are SOFR-based (or based on an equivalent applicable currency rate such as SOFR) and typically have durations of one to six months after which they reset to current market interest rates, and many of which are subject to certain floors. Further, our Senior Secured Facility bears interest at LIBOR rates with no interest rate floors, while our 2025 Notes and 2026 Notes bears interest at a fixed rate. Some of our investments are LIBOR-based. As of December 31, 2021, all non-U.S. dollar LIBOR publications have been phased out. The phase out of a majority of the U.S. dollar publications is delayed until June 30, 2023. Potential changes, or uncertainty related to such potential changes, may adversely affect the market for LIBOR-based securities, including our portfolio of LIBOR-indexed, floating-rate debt securities, or the cost of our borrowings. SOFR appears to be the preferred alternative replacement rate for U.S. dollar LIBOR, but there is no guarantee SOFR will become the dominant alternative. Please see Part 1 of our annual report on Form 10-K for the year ended March 31, 2022, “Item 1A. Risk Factors—Risks Relating to the Current Environment—Uncertainty relating to the LIBOR calculation process may adversely affect the value of our portfolio of the LIBOR-indexed, floating-rate debt securities in our portfolio or the cost of our borrowings.”

We regularly measure our exposure to interest rate risk. We assess interest rate risk and manage our interest rate exposure on an ongoing basis by comparing our interest rate sensitive assets to our interest rate sensitive liabilities. Based on that review, we determine whether or not any hedging transactions are necessary to mitigate exposure to changes in interest rates.

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The following table shows the estimated annual impact on net investment income of base rate changes in interest rates (considering interest rate flows for variable rate instruments) to our loan portfolio and outstanding debt as of September 30, 2022, assuming no changes in our investment and borrowing structure:


Basis Point Change	Net Investment Income		Net Investment Income Per Share
Up 200 basis points	$	16.5 million	$	0.260
Up 100 basis points		8.2 million		0.130
Up 50 basis points		4.1 million		0.065
Down 50 basis points		(4.0) million		(0.063	)
Down 100 basis points		(8.0) million		(0.126	)

We may hedge against interest rate fluctuations from time-to-time by using standard hedging instruments such as futures, options and forward contracts subject to the requirements of the 1940 Act and applicable commodities laws. While hedging activities may insulate us against adverse changes in interest rates, they may also limit our ability to participate in the benefits of lower interest rates with respect to our portfolio of investments.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

As of September 30, 2022 (the end of the period covered by this report), we, including our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) of the 1934 Act). Based on that evaluation, our management, including the Chief Executive Officer and Chief Financial Officer, concluded that our disclosure controls and procedures were effective and provided reasonable assurance that information required to be disclosed in our periodic SEC filings is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. However, in evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of such possible controls and procedures.

Changes in Internal Control Over Financial Reporting

Management has not identified any change in the Company’s internal control over financial reporting that occurred during the second fiscal quarter of 2023 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings

We are not currently subject to any material legal proceedings, nor, to our knowledge are any material legal proceedings threatened against us. From time to time, we may become involved in various investigations, claims and legal proceedings that arise in the ordinary course of our business. Furthermore, third parties may try to seek to impose liability on us in connection with the activities of our portfolio companies. While we do not expect that the resolution of these matters if they arise would materially affect our business, financial condition or results of operations, resolution will be subject to various uncertainties and could result in the expenditure of significant financial and managerial resources.

Item 1A. Risk Factors

In addition to the risk factor below and other information set forth in this report, you should carefully consider the factors discussed in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended March 31, 2022 and those in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2022, which could materially affect our business, financial condition and/or operating results. These risks are not the only risks facing our Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially and adversely affect our business, financial condition and/or operating results.

The Russian invasion of Ukraine may have a material adverse impact on us and our portfolio companies.

On February 24, 2022, the President of Russia, Vladimir Putin, announced a military invasion of Ukraine. In response, countries worldwide, including the United States, have imposed sanctions against Russia on certain businesses and individuals, including, but not limited to, those in the banking, import and export sectors. This invasion has led, is currently leading, and for an unknown period of time will continue to lead to disruptions in local, regional, national, and global markets and economies affected thereby. These disruptions caused by the invasion have included, and may continue to include, political, social, and economic disruptions and uncertainties and material increases in certain commodity prices that may affect our business operations or the business operations of our portfolio companies.

We are exposed to risks associated with changes in interest rates, including the current rising interest rate environment.

General interest rate fluctuations may have a substantial negative impact on our investments and our investment returns and, accordingly, may have a material adverse effect on our investment objective and our net investment income.

Because we borrow money and may issue debt securities or preferred stock to make investments, our net investment income is dependent upon the difference between the rate at which we borrow funds or pay interest or dividends on such debt securities or preferred stock and the rate at which we invest these funds. In this period of rising interest rates, our interest income will increase as the majority of our portfolio bears interest at variable rates while our cost of funds will also increase, to a lesser extent, given the majority of our indebtedness bears interest at fixed rates, with the net impact being an increase to our net investment income. Conversely, if interest rates decrease we may earn less interest income from investments and our cost of funds will also decrease, to a lesser extent, resulting in lower net investment income. There can be no assurance that a significant change in market interest rates will not have a material adverse effect on our net investment income.

Our portfolio primarily consists of fixed and floating rate investments. Market prices tend to fluctuate more for fixed-rate securities that have longer maturities. Although we have no policy governing the maturities of our investments, under current market conditions we expect that we will invest in a portfolio of debt generally having maturities of up to 10 years. Market prices for debt that pays a fixed rate of return tend to decline as interest rates rise. This means that we are subject to greater risk (other things being equal) than a fund invested solely in shorter-term, fixed-rate securities. Market prices for floating rate investments

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may also fluctuate in rising rate environments with prices tending to decline when credit spreads widen. A decline in the prices of the debt we own could adversely affect our net assets resulting from operations and the market price of our common stock.

Rising interest rates may also increase the cost of debt for our underlying portfolio companies, which could adversely impact their financial performance and ability to meet ongoing obligations to us. Also, an increase in interest rates available to investors could make an investment in our common stock less attractive if we are not able to pay dividends at a level that provides a similar return, which could reduce the value of our common stock.

Inflation has adversely affected and may continue to adversely affect the business, results of operations and financial condition of our portfolio companies.

Certain of our portfolio companies are in industries that have been impacted by inflation. Recent inflationary pressures have increased the costs of labor, energy and raw materials and have adversely affected consumer spending, economic growth and our portfolio companies’ operations. If such portfolio companies are unable to pass any increases in their costs of operations along to their customers, it could adversely affect their operating results and impact their ability to pay interest and principal on our loans, particularly if interest rates rise in response to inflation. In addition, any projected future decreases in our portfolio companies’ operating results due to inflation could adversely impact the fair value of those investments. Any decreases in the fair value of our investments could result in future realized or unrealized losses and therefore reduce our net assets resulting from operations. Additionally, the Federal Reserve has raised, and has indicated its intent to continue raising, certain benchmark interest rates in an effort to combat inflation. See “—We are exposed to risks associated with changes in interest rates, including the current rising interest rate environment.”

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Unregistered Sales of Equity Securities

None.

Issuer Purchases of Equity Securities


Date of Agreement/Amendment	Maximum Cost of Shares That May Be Repurchased		Cost of Shares Repurchased		Remaining Cost of Shares That May Be Repurchased
August 5, 2015	$	50.0 million	$	50.0 million	$	—
December 14, 2015		50.0 million		50.0 million		—
September 14, 2016		50.0 million		50.0 million		—
October 30, 2018		50.0 million		50.0 million		—
February 6, 2019		50.0 million		45.8 million		4.2 million
February 3, 2022		25.0 million		— million		25.0 million
Total as of September 30, 2022	$	275.0 million	$	245.8 million	$	29.2 million

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Under the Repurchase Plans described above, the Company allocated the following amounts to be repurchased in accordance with SEC Rule 10b5-1 (the “10b5-1 Repurchase Plans”):


Effective Date	Termination Date	Amount Allocated to 10b5-1 Repurchase Plans
September 15, 2015	November 5, 2015	$	5.0 million
January 1, 2016	February 5, 2016		10.0 million
April 1, 2016	May 19, 2016		5.0 million
July 1, 2016	August 5, 2016		15.0 million
September 30, 2016	November 8, 2016		20.0 million
January 4, 2017	February 6, 2017		10.0 million
March 31, 2017	May 19, 2017		10.0 million
June 30, 2017	August 7, 2017		10.0 million
October 2, 2017	November 6, 2017		10.0 million
January 3, 2018	February 8, 2018		10.0 million
June 18, 2018	August 9, 2018		10.0 million
September 17, 2018	October 31, 2018		10.0 million
December 12, 2018	February 7, 2019		10.0 million
February 25, 2019	May 17, 2019		25.0 million
March 18, 2019	May 17, 2019		10.0 million
June 4, 2019	August 7, 2019		25.0 million
June 17, 2019	August 7, 2019		20.0 million
September 16, 2019	November 6, 2019		20.0 million
December 6, 2019	February 5, 2020		25.0 million
December 16, 2019	February 5, 2020		15.0 million
March 12, 2020	March 19, 2020		20.0 million
March 30, 2021	May 21, 2021		10.0 million
June 16, 2021	November 5, 2021		10.0 million
December 16, 2021	August 3, 2022*		5.0 million

____________________

* The amount allocated to the plan had been fully utilized on May 3, 2022.

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The following table presents information with respect to the Company’s purchases of its common stock since adoption of the Repurchase Plans through September 30, 2022:


Month	Total Number of Shares Purchased		Average Price Paid Per Share*			Total Number of Shares Purchased as Part of Publicly Announced Plans		Maximum Dollar Value of Shares That May Yet Be Purchased Under Publicly Announced Plans
August 2015		510,000	$	19.71			510,000	$	$ 40.0 million
September 2015		603,466		18.46			603,466		28.8 million
November 2015		1,116,666		18.1			1,116,666		8.6 million
December 2015		627,443		17.58			627,443		47.6 million
January 2016		670,708		14.91			670,708		37.6 million
June 2016		362,933		16.73			362,933		31.5 million
July 2016		16,491		16.53			16,491		31.2 million
August 2016		596,294		17.67			596,294		20.7 million
September 2016		411,523		18.13			411,523		63.2 million
October 2016		527,417		17.82			527,417		53.8 million
November 2016		239,289		17.45			239,289		49.6 million
August 2017		33,333		17.96			33,333		49.0 million
September 2017		186,767		17.98			186,767		45.7 million
October 2017		144,867		17.96			144,867		43.1 million
November 2017		64,500		17.79			64,500		41.9 million
December 2017		50,100		17.89			50,100		41.0 million
January 2018		577,386		17.32			577,386		31.0 million
February 2018		70,567		16.23			70,567		29.9 million
May 2018		263,667		17.12			263,667		25.4 million
June 2018		198,601		16.94			198,601		22.0 million
July 2018		8,867		16.75			8,867		21.9 million
August 2018		502,767		17.11			502,767		13.3 million
September 2018		444,467		16.54			444,467		5.9 million
October 2018		160,800		16.46			160,800		53.3 million
November 2018		595,672		15.81			595,672		43.9 million
December 2018		741,389		13.49			741,359		33.9 million
February 2019		19,392		15.16			19,392		83.6 million
March 2019		291,426		15.4			291,426		79.1 million
April 2019		44,534		15.23			44,534		78.4 million
May 2019		298,026		15.93			298,026		73.6 million
June 2019		607,073		15.97			607,073		63.9 million
July 2019		89,610		16.1			89,610		62.5 million
August 2019		758,020		16.15			758,020		50.3 million
September 2019		32,371		16.26			32,371		49.7 million
October 2019		495,464		15.65			495,464		42.0 million
November 2019		6,147		15.91			6,147		41.9 million
March 2020		1,286,565		11.62			1,286,565		26.9 million
May 2021		145,572		13.92			145,572		24.9 million
July 2021		44,418		13.46			44,418		24.3 million
August 2021		45,675		13.32			45,675		23.7 million
September 2021		360,860		13.02			360,860		19.0 million
October 2021		308,005		13.3			308,005		14.9 million
November 2021		419,372		13.05			419,372		9.4 million
December 2021		227,429		12.44			227,429		6.6 million
January 2022		60,605		12.7			60,605		30.8 million
April 2022		88,478		12.82			88,478		29.7 million
May 2022		40,044		12.57			40,044		29.2 million
Total		15,395,066	$		15.97		15,395,036

____________________

* The average price per share is inclusive of commissions.

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Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

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Item 6. Exhibits

(a)

Exhibits


3.1(a)	Articles of Amendment (1)
3.1(b)	Articles of Amendment and Restatement (2)
3.1(c)	Articles of Amendment and Restatement (5)
3.1(d)	Articles of Amendment (3)
3.1(e)	Articles of Amendment (4)
3.1(f)	Articles of Amendment (6)
3.2	Sixth Amended and Restated Bylaws (7)
10.1	Fourth Amended and Restated Investment Advisory Agreement, dated August 1, 2022 (8)
10.2	Trademark License Agreement, dated August 2, 2022 (9)
15.1	Awareness Letter From PricewaterhouseCoopers LLP*
31.1	Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934*
31.2	Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934*
32.1	Certification of Chief Executive Officer and Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350)*
101.INS	Inline XBRL Instance Document*
101.SHC	Inline XBRL Taxonomy Extension Schema Document*
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document*
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document*
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document*
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document*
104	Cover Page Interactive Data File (Formatted as Inline XBRL and contained in Exhibit 101)*

_________________________

* Filed herewith.

(1)

Incorporated by reference from the Registrant’s pre-effective Amendment No. 1 to the Registration Statement under the Securities Act of 1933, as amended, as Form N-2, filed on June 20, 2005.

(2)

Incorporated by reference from the Registrant’s post-effective Amendment No. 1 to the Registration Statement under the Securities Act of 1933, as amended, on Form N-2, filed on August 14, 2006.

(3)

Incorporated by reference to Exhibit 3.1 to the Registrant’s Form 8-K, filed on December 3, 2018.

(4)

Incorporated by reference to Exhibit 3.1 to the Registrant’s Form 8-K, filed on July 22, 2019.

(5)

Incorporated by reference to Exhibit 3.2 to the Registrant's Form 8-K, filed on August 12, 2022.

(6)

Incorporated by reference to Exhibit 3.1 to the Registrant's Form 8-K, filed on August 12, 2022.

(7)

Incorporated by reference to Exhibit 3.3 to the Registrant's Form 8-K, filed on August 12, 2022.

(8)

Incorporated by reference to Exhibit 1.1 to the Registrant's Form 8-K, filed on August 2, 2022.

(9)

Incorporated by reference to Exhibit 1.3 to the Registrant's Form 8-K, filed on August 2, 2022.

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on November 3, 2022.


	MIDCAP FINANCIAL INVESTMENT CORPORATION

	By:	/s/ TANNER POWELL
	Tanner Powell
	Chief Executive Officer

	By:	/s/ GREGORY W. HUNT
	Gregory W. Hunt
	Chief Financial Officer and Treasurer

	By:	/s/ AMIT JOSHI
	Amit Joshi
	Chief Accounting Officer and Assistant Treasurer

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Part I. Financial Information Item 1. Financial Statements Note 1. Organization Note 2. Significant Accounting Policies Note 3. Related Party Agreements and Transactions Note 4. Earnings Per Share Note 5. Investments Note 6. Debt and Foreign Currency Transactions and Translations Note 7. Stockholders Equity Note 8. Commitments and Contingencies Note 9. Financial Highlights Note 10. Subsequent Events Item 2. Management S Discussion and Analysis Of Financial Condition and Results Of Operations Item 3. Quantitative and Qualitative Disclosures About Market Risk Item 4. Controls and Procedures Part II. Other Information Item 1. Legal Proceedings Item 1A. Risk Factors Item 2. Unregistered Sales Of Equity Securities and Use Of Proceeds Item 3. Defaults Upon Senior Securities Item 4. Mine Safety Disclosures Item 5. Other Information Item 6. Exhibits

Exhibits

3.1(a) Articles of Amendment (1) 3.1(b) Articles of Amendment and Restatement (2) 3.1(c) Articles of Amendment and Restatement (5) 3.1(d) Articles of Amendment (3) 3.1(e) Articles of Amendment (4) 3.1(f) Articles of Amendment (6) 3.2 Sixth Amended and Restated Bylaws (7) 10.1 Fourth Amended and Restated Investment Advisory Agreement, dated August 1, 2022 (8) 10.2 Trademark License Agreement, dated August 2, 2022 (9) 15.1 Awareness Letter From PricewaterhouseCoopers LLP* 31.1 Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934* 31.2 Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934* 32.1 Certification of Chief Executive Officer and Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350)*

MFIC 10-Q Quarter ended Sept. 30, 2022

Exhibits