As of September 30, 2024, Monroe Capital Corporation reported total investments at fair value of $474.3 million, a decrease from $488.4 million at the end of 2023. Total assets also declined to $501.9 million from $513.2 million, while total net assets fell to $198.9 million from $203.7 million. The net asset value per share decreased to $9.18 from $9.40.

In terms of performance, the company generated investment income of $15.7 million for the third quarter of 2024, slightly up from $15.6 million in the same period of 2023. For the nine months ended September 30, 2024, total investment income was $46.5 million, down from $48.8 million year-over-year. The decline in investment income was primarily attributed to lower interest income and a decrease in average invested assets, compounded by an increase in portfolio companies placed on non-accrual status.

Operating expenses for the third quarter decreased to $9.1 million from $10.1 million in the prior year, contributing to a net investment income of $6.5 million, compared to $5.4 million in Q3 2023. For the nine-month period, net investment income rose to $18.5 million from $18.0 million. Notably, the company reported a net realized gain of $638,000 in Q3 2024, a significant increase from $30,000 in Q3 2023, and a net increase in net assets resulting from operations of $5.0 million, contrasting with a loss of $236,000 in the previous year.

The company’s investment portfolio remains heavily weighted towards senior secured loans, which constituted 79.2% of total investments as of September 30, 2024. The fair value of these loans decreased from $388.9 million at the end of 2023 to $375.4 million. The company also reported a rise in junior secured loans, which increased to $30.2 million from $26.6 million, while equity securities rose to $32.0 million from $25.9 million.

Monroe Capital's strategic developments include a definitive agreement with Wendel Group for a strategic investment, expected to close in early 2025, and plans to seek approval for a new investment advisory agreement with MC Advisors. The company continues to focus on providing financing solutions to lower middle-market companies, capitalizing on opportunities in a competitive lending environment.

As of September 30, 2024, the company had total debt outstanding of $169.0 million, with an asset coverage ratio of 167%, consistent with the previous reporting period. The company’s cash and cash equivalents stood at $4.1 million, reflecting a decrease in cash flow from financing activities compared to the prior year.