MidCap Financial Investment Corp. Files 2023 Annual Report

TL;DR

<b>MidCap Financial Investment Corp. has filed its 2023 10-K report, detailing its financial position and investment activities.</b>

AI Summary

MidCap Financial Investment Corp (MFICL) filed a Annual Report (10-K) with the SEC on February 26, 2024. MidCap Financial Investment Corp. filed its 10-K report for the fiscal year ending December 31, 2023. The company's business address is 9 W. 57th Street, New York, NY 10019. MidCap Financial Investment Corp. was formerly known as Apollo Investment Corp. and Apollo Capital Corp. The filing includes details on various investments and commitments, such as First Lien Secured Debt for Forge Biologics, Inc. with a maturity date of 06/24/27. The report also mentions Undrawn Commitments for entities like Club Car Wash Operating, LLC and Banner Buyer, LLC as of December 31, 2023.

Why It Matters

For investors and stakeholders tracking MidCap Financial Investment Corp, this filing contains several important signals. This 10-K filing provides a comprehensive overview of MidCap Financial Investment Corp.'s financial performance and strategic investments throughout the 2023 fiscal year. Investors and stakeholders can use this report to assess the company's financial health, risk exposure, and future outlook based on disclosed investment details and debt structures.

Risk Assessment

Risk Level: medium — MidCap Financial Investment Corp shows moderate risk based on this filing. The company's financial stability is subject to market and credit risks inherent in its investment portfolio, as indicated by the various debt instruments and commitments detailed in the filing.

Analyst Insight

Review the detailed breakdown of investment assets and liabilities in the 10-K to understand MidCap Financial's risk exposure and potential for future returns.

Key Numbers

• 20231231 — Fiscal Year End (Report period)
• 20240226 — Filing Date (Date of submission)
• 0000950170-24-020118 — Accession Number (Unique identifier for the filing)
• MD — State of Incorporation (State where the company is incorporated)

Key Players & Entities

• MidCap Financial Investment Corp. (company) — Filer name
• Apollo Investment Corp. (company) — Former company name
• Apollo Capital Corp. (company) — Former company name
• Forge Biologics, Inc. (company) — Investment details
• Club Car Wash Operating, LLC (company) — Undrawn Commitment details
• Banner Buyer, LLC (company) — Undrawn Commitment details
• 9 W. 57TH STREET (address) — Business address
• 20231231 (date) — Fiscal year end

FAQ

Risk Factors

• Credit Risk [high — financial]: The company is exposed to credit risk from its investments in debt instruments, which could lead to losses if borrowers default.
• Market Volatility [medium — market]: Fluctuations in market conditions, interest rates, and economic factors can adversely affect the value of the company's investment portfolio.
• Operational Risks [medium — operational]: The company faces operational risks related to its business processes, systems, and personnel, which could disrupt operations or lead to financial losses.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K filing.
• 2024-02-26: Filing Date — Date the 10-K report was officially submitted to the SEC.

Key Financial Figures

• $0.001 — nge on which registered Common Stock, $0.001 par value MFIC NASDAQ Global Select
• $870 million — our initial public offering that raised $870 million in net proceeds from selling 62 million
• $15.00 — on shares of common stock at a price of $15.00 per share (20.7 million shares at a pri
• $45.00 — hare (20.7 million shares at a price of $45.00 per share adjusted for the one-for-thre
• $2.24 billion — 31, 2023, we have raised approximately $2.24 billion in net proceeds from additional offerin
• $248.1 million — nd we have repurchased common stock for $248.1 million. On August 1, 2022, the Company chang
• $75 million — ally define as companies with less than $75 million in EBITDA, as may be adjusted for marke
• $300 million — ate tranche size is typically less than $300 million. Our portfolio may also include equity
• $0.4 billion — ar ended December 31, 2023, we invested $0.4 billion across 32 new and 84 existing portfolio
• $0.5 billion — dary debt investments. This compares to $0.5 billion across 12 new and 78 existing portfolio
• $0.6 billion — er 31, 2023 totaled $0.5 billion versus $0.6 billion during the nine months ended December 3
• $23.9 billion — mber 31, 2023, invested capital totaled $23.9 billion in 627 portfolio companies. Over the sa

Filing Documents

• mfic-20231231.htm (10-K) — 20123KB
• mfic-ex31_1.htm (EX-31.1) — 12KB
• mfic-ex31_2.htm (EX-31.2) — 12KB
• mfic-ex32_1.htm (EX-32.1) — 8KB
• mfic-ex97_1.htm (EX-97.1) — 37KB
• mfic-ex99_2.htm (EX-99.2) — 2KB
• mfic-ex99_3.htm (EX-99.3) — 2KB
• img103490008_0.jpg (GRAPHIC) — 576KB
• 0000950170-24-020118.txt (&nbsp;) — 84961KB
• mfic-20231231.xsd (EX-101.SCH) — 2332KB
• mfic-20231231_htm.xml (XML) — 16486KB

Business

Business 5 Item 1A.

Risk Factors

Risk Factors 22 Item 1B. Unresolved Staff Comments 68 Item 1C. Cybersecurity 68 Item 2.

Properties

Properties 70 Item 3.

Legal Proceedings

Legal Proceedings 70 Item 4. Mine Safety Disclosures 70 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 71 Item 6. Reserved 85 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 86 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 106 Item 8. Consolidated Financial Statements and Supplementary Data 108 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 211 Item 9A.

Controls and Procedures

Controls and Procedures 211 Item 9B. Other Information 211 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 211 PART III Item 10. Directors, Executive Officers and Corporate Governance 212 Item 11.

Executive Compensation

Executive Compensation 212 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 212 Item 13. Certain Relationships and Related Transactions, and Director Independence 212 Item 14. Principal Accounting Fees and Services 212 PART IV Item 15. Exhibits and Financial Statement Schedules 213 Item 16.

Signatures

Signatures 217 Risk Factor Summary The following is only a summary of the principal risks that may materially adversely affect our business, financial condition, results of operations and cash flows. The following should be read in conjunction with the more complete discussion of the risk factors we face, which are set forth in the section titled "Item 1A. Risk Factors" in this report. Risk Relating to the Current Environment Capital markets may experience periods of disruption and instability. Such market conditions may materially and adversely affect the debt and equity capital markets in the United States and abroad, which may have a negative impact on our business and operations. Cybersecurity risks and cyber incidents may adversely affect our business by causing a disruption to our operations, a compromise or corruption of our confidential information, a misappropriation of funds, and/or damage to our business relationships, all of which could negatively impact our financial results. We are exposed to risks associated with changes in interest rates, including the current rising interest rate environment. Inflation has adversely affected and may continue to adversely affect the business, results of operations and financial condition of our portfolio companies. The ongoing armed conflicts as a result of the Russian invasion of Ukraine and the war between Israel and Hamas may have a material adverse impact on us and our portfolio companies. Price declines and illiquidity in the corporate debt markets have adversely affected, and may in the future adversely affect, the fair value of our portfolio investments, reducing our net asset value through increased net unrealized depreciation. The current state of the economy and volatility in the global financial markets could have a material adverse effect on our business, financial condition and results of operations. Uncertainty with respect to the financial stability of the United States and seve

Business

Item 1. Business In this report, the terms the "Company", "MidCap Investment", "MFIC", "we", "us", and "our" refer to MidCap Financial Investment Corporation unless the context specifically states otherwise. General MidCap Financial Investment Corporation, a Maryland corporation organized on February 2, 2004, is a closed-end, externally managed, 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 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 December 31, 2023, we have raised approximately $2.24 billion in net proceeds from additional offerings of common stock and we have repurchased common stock for $248.1 million. 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. Prior to August 12, 2022, the Company's common stock traded on the NASDAQ Global Select Market under the ticker "AINV". On November 7, 2023, the Company entered into (i) an Agreement and Plan of Merger (the "AFT Merger Agreement") with Apollo Senior Floating Rate Fund Inc., a Maryland corporation ("AFT"), AFT Merger Sub, Inc., a Maryland corporation and a direct wholly-owned subsidiary of the Company ("AFT Merger Sub"), and, solely for the limited purposes set forth therein, the Adviser, and (ii) an Agreement and Plan of Mer

View Full Filing

View this 10-K filing on SEC EDGAR