MidCap Financial Investment Corporation (MFIC) reported significant growth in its financial performance for the three and nine months ended September 30, 2024, compared to the same periods in 2023. Investments at fair value increased to $2,623.1 million, up from $1,936.3 million as of December 31, 2023. Total assets rose to $3,216.0 million from $2,501.3 million, while net assets increased to $1,416.2 million from $1,005.3 million.

Investment income for the three months ended September 30, 2024, reached $82.1 million, a notable increase from $68.2 million in the prior year. For the nine-month period, investment income totaled $219.6 million, compared to $204.6 million in 2023. Net investment income also saw an increase, rising to $38.1 million for the third quarter and $96.2 million for the nine months, up from $27.9 million and $86.2 million, respectively.

Despite these gains, the net increase in net assets resulting from operations decreased to $26.7 million for the third quarter, down from $30.0 million in 2023, and to $74.8 million for the nine months, compared to $85.5 million in the previous year. Earnings per share (EPS) for the third quarter were $0.31, down from $0.46, and for the nine months, EPS was $1.03, compared to $1.31.

The company’s debt obligations increased to $1,772.8 million as of September 30, 2024, from $1,462.3 million at the end of 2023. The total annualized cost of debt rose from 7.02% to 7.47% for the nine months ended September 30, 2024, reflecting an increase in interest expenses.

Strategically, MFIC completed mergers with Apollo Senior Floating Rate Fund Inc. (AFT) and Apollo Tactical Income Fund Inc. (AIF) on July 22, 2024, issuing approximately $440.1 million in common stock. This merger resulted in the acquisition of significant assets, including $595.9 million in investments at fair value. The company also reported a substantial increase in investment activity, with purchases of $911.9 million in Q3 2024 compared to $30.3 million in Q3 2023.

Distributions to stockholders increased significantly, totaling $54.4 million for the third quarter and $104.0 million for the nine months, compared to $24.8 million and $74.5 million in the prior year. The nine-month distributions included a special distribution of $18.8 million.

Overall, MidCap Financial Investment Corporation demonstrated robust growth in investment income and asset values, alongside strategic mergers and increased distributions, despite facing challenges in net asset increases and rising debt costs.