MidCap Financial Investment Corporation Reports Financial Results for the Quarter Ended September 30, 2026

Quarterly portfolio losses widened to $44.0 million from $7.9 million a year earlier, while net leverage declined from June.

Rhea-AI Summary

MidCap Financial Investment Corporation (NASDAQ: MFIC) reported quarterly net investment income of $0.34 per share, down from the preceding quarter. For the quarter ended September 30, 2026, that compares with $0.40 in June and $0.38 a year earlier. Net asset value per share fell 3.8% to $12.86 from June, reflecting credit-related weakness in a limited number of positions. The quarterly net loss was $0.20 per share, versus earnings of $0.29 a year earlier.

Debt outstanding declined to $1.58 billion from $1.74 billion in June. Ares Capital agreed to acquire MFIC for $10.88 per common share, comprising $9.67 in ARCC stock and $1.21 cash. MFIC suspended share repurchases in connection with the transaction and plans to suspend dividend reinvestment. The board declared a $0.31 quarterly dividend, payable December 22, 2026, to holders of record December 8.

9 points · 1 major

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0 major · 17 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major pointAres Capital agreed to acquire MFIC for $10.88 per common share: $9.67 in ARCC stock and $1.21 cash.
• Moderate pointDebt outstanding fell to $1.58 billion at September 30, 2026, from $1.74 billion in June.
• Moderate pointRemaining credit facility capacity was $962 million at September 30, 2026.
• Minor pointNet leverage declined to 1.43x at September 30, 2026, from 1.54x in June.
• Minor pointDebt-to-equity declined to 1.49x at September 30, 2026, from 1.58x in June.

4 minor points

• Minor pointMerx repaid $28.0 million, reducing its position to 1.7% of the portfolio at quarter-end.
• Minor pointNew direct-origination commitments totaled $0.9 million to existing borrowers during the quarter.
• Minor pointDebt portfolio yield at amortized cost rose to 9.6% from 9.5% in June, excluding non-accrual investments.
• Minor point. Forward-looking: it has not happened yet and may not happen.MFIC will declare one or more distributions before closing to distribute previously undistributed taxable income and net capital gain.

Negative

• Moderate pointQuarterly net investment income fell to $27.6 million from $35.3 million a year earlier.
• Moderate pointNet asset value per share declined 3.8% to $12.86 from June amid concentrated credit-related weakness.
• Moderate pointQuarterly realized and unrealized portfolio losses widened to $44.0 million from $7.9 million a year earlier.
• Moderate pointPortfolio fair value declined to $2.55 billion at September 30, 2026, from $2.77 billion in June.
• Moderate pointQuarterly investments made fell to $36.5 million from $400.4 million a year earlier.

12 minor points

• Minor pointQuarterly investment income per share fell to $0.34, versus $0.40 in June and $0.38 a year earlier.
• Minor pointQuarterly earnings fell to a $0.20 per-share loss from $0.29 earnings a year earlier.
• Minor pointNine-month net investment income declined to $94.6 million from $106.0 million a year earlier.
• Minor pointNine-month investment income per share declined to $1.11 from $1.13 a year earlier.
• Minor pointNine-month realized and unrealized portfolio losses widened to $155.4 million from $30.1 million a year earlier.
• Minor pointNine-month earnings fell to a $0.71 per-share loss from $0.81 earnings a year earlier.
• Minor pointNine-month investments made fell to $186.2 million from $1,081.0 million a year earlier.
• Minor pointTotal portfolio yield at amortized cost declined to 7.9% from 8.1% in June.
• Minor pointCash and cash equivalents fell to $57,379 thousand from $98,184 thousand at December 31, 2025.
• Minor point. Forward-looking: it has not happened yet and may not happen.Share repurchases are suspended in connection with the acquisition; dividend reinvestment will be suspended in the near term.
• Minor pointAvailable facility borrowing remains subject to borrowing-base compliance and statutory leverage restrictions.
• Minor point. Forward-looking: it has not happened yet and may not happen.The acquisition remains unclosed; MFIC expects its credit facility to be repaid and terminated upon closing.

News Explained

The release adds a pre-closing distribution commitment; the facility payoff and possible note-redemption notices depend on completion.

MFIC says Ares has agreed to acquire it; if the transaction closes, MFIC expects to repay and terminate its revolving credit facility, while ARCC may request optional-redemption notices for MFIC’s senior unsecured notes.

Before closing, MFIC says it will declare one or more distributions covering its previously undistributed investment company taxable income, any prior-year shortfall and net capital gain, to maintain its regulated investment company qualification.

Key Figures

Net investment income per share: $0.34 vs. $0.40 NAV per share: $12.86 vs. $13.37 Earnings per share: $(0.20) vs. $0.29 +3 more

Net investment income per share

$0.34 vs. $0.40

Quarter ended September 30, 2026 vs. quarter ended June 30, 2026

NAV per share

$12.86 vs. $13.37

September 30, 2026 vs. June 30, 2026

Earnings per share

$(0.20) vs. $0.29

Three months ended September 30, 2026 vs. September 30, 2025

Net realized and change in unrealized gain (loss) per share

$(0.54)

Three months ended September 30, 2026

Quarterly dividend

$0.31 per share

Declared November 4, 2026; payable December 22, 2026

Transaction value per MFIC share

$10.88

$9.67 in ARCC stock and $1.21 in cash

Key Terms

net asset value, regulated investment company, revolving credit facility, payment-in-kind

4 terms

net asset value financial

"The Company’s NAV was $12.86 per share as of September 30, 2026"

Net asset value is the total value of an investment fund's assets minus any liabilities, divided by the number of shares or units outstanding. It represents the per-share worth of the fund, similar to how the value of a house is determined by its total worth after debts are subtracted. Investors use it to gauge the true value of their holdings and to compare different investment options.

View in glossary

regulated investment company regulatory

"maintain its qualification as a “regulated investment company”"

A regulated investment company is a type of pooled investment (like a mutual fund or ETF) that meets specific tax-law rules allowing it to pass most income, gains and losses directly to shareholders instead of being taxed at the company level. For investors this matters because it affects how distributions are taxed, how often income is paid, and the overall net return—think of it like a collective account that funnels earnings straight to owners rather than keeping profits inside a separate corporate layer.

revolving credit facility financial

"under the Company's senior secured, multi-currency, revolving credit facility"

A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.

payment-in-kind financial

"Payment-in-kind (“PIK”) interest income"

Payment-in-kind is when a borrower or issuer settles interest, dividends, or other obligations by giving more of the same asset—extra shares, additional bond principal, or goods—instead of paying cash. It matters to investors because it changes who owns what and when cash is actually received: it can preserve a company’s short-term cash but may dilute equity or increase future claims, altering risk and potential returns much like taking goods instead of a paycheck.

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Results for the Quarter Ended September 30, 2026, and Other Recent Highlights:

• Net investment income per share for the quarter was $0.34, compared to $0.40 for the quarter ended June 30, 2026
• Net asset value (“NAV”) per share as of the end of the quarter was $12.86, compared to $13.37 as of June 30, 2026, representing a 3.8% decrease. The decline was driven by a net loss on the portfolio; this loss can be attributed to credit-related weakness concentrated in a limited number of positions partially offset by net investment income in excess of the dividend
• New investment commitments made during the quarter totaled $0.9 million to existing borrowers⁽¹⁾
• Gross fundings, excluding revolver fundings,⁽²⁾ totaled $11 million for the quarter
• Net repayments, including revolvers⁽²⁾ totaled $189 million for the quarter, including a $28.0 million repayment from Merx reducing the position to 1.7% of the total portfolio, as of quarter-end
• Net leverage⁽³⁾ was 1.43x as of September 30, 2026
• On November 4, 2026, the Company's Board of Directors (the “Board”) declared a dividend of $0.31 per share payable on December 22, 2026, to stockholders of record as of December 8, 2026⁽⁴⁾
• On October 27, 2026, Ares Capital Corporation (NASDAQ: ARCC) announced that it has agreed to acquire MFIC in a stock-and-cash transaction (the “Transaction”) valued at $10.88 per MFIC common share, consisting of $9.67 in ARCC stock and $1.21 in cash⁽⁵⁾
  
  

NEW YORK, Nov. 05, 2026 (GLOBE NEWSWIRE) -- MidCap Financial Investment Corporation (NASDAQ: MFIC) (“MFIC” or the “Company”) today announced financial results for the quarter ended September 30, 2026. The Company’s net investment income was $0.34 per share for the quarter ended September 30, 2026, compared to $0.40 per share for the quarter ended June 30, 2026. The Company’s NAV was $12.86 per share as of September 30, 2026, compared to $13.37 as of June 30, 2026.

On November 4, 2026, the Board declared a quarterly dividend of $0.31 per share payable on December 22, 2026, to stockholders of record as of December 8, 2026.

___________________

(1) Commitments made for the direct origination portfolio.
(2) During the quarter ended September 30, 2026, direct origination revolver fundings totaled $26 million, direct origination revolver repayments totaled $25 million and Merx Aviation Finance, LLC repaid $28.0 million.
(3) The Company’s net leverage ratio is defined as debt outstanding plus payable for investments purchased, less receivable for investments sold, less cash and cash equivalents, less foreign currencies, divided by net assets.
(4) There can be no assurances that the Board will continue to declare a base dividend of $0.31 per share. Prior to the closing of the Transaction, the Company will declare one or more distributions in order to distribute all of its previously undistributed investment company taxable income, any prior year shortfall and net capital gain and to maintain its qualification as a “regulated investment company” under the Internal Revenue Code of 1986, as amended (the “Code”).
(5) Additional information is available in MFIC’s Current Report on Form 8-K filed with the SEC on October 27, 2026.

FINANCIAL HIGHLIGHTS

($ in billions, except per share data)	September 30, 2026				June 30, 2026				March 31, 2026				December 31, 2025				September 30, 2025
Total assets	$	2.65			$	2.86			$	3.07			$	3.32			$	3.31
Investment portfolio (fair value)	$	2.55			$	2.77			$	2.97			$	3.17			$	3.18
Debt outstanding	$	1.58			$	1.74			$	1.87			$	2.00			$	1.92
Net assets	$	1.06			$	1.10			$	1.18			$	1.31			$	1.37
Net asset value per share	$	12.86			$	13.37			$	13.82			$	14.18			$	14.66
Debt-to-equity ratio		1.49 x				1.58 x				1.59 x				1.53 x				1.40 x
Net leverage ratio (1)		1.43 x				1.54 x				1.55 x				1.45 x				1.35 x

____________________

(1) The Company’s net leverage ratio is defined as debt outstanding plus payable for investments purchased, less receivable for investments sold, less cash and cash equivalents, less foreign currencies, divided by net assets.

PORTFOLIO AND INVESTMENT ACTIVITY

	Three Months Ended September 30,								Nine Months Ended September 30,
(in millions)*	2026				2025				2026				2025
Investments made in portfolio companies	$	36.5			$	400.4			$	186.2			$	1,081.0
Investments sold		(5.0	)			(37.5	)			(108.1	)			(96.4	)
Net activity before repaid investments		31.6				362.8				78.1				984.6
Investments repaid		(220.3	)			(510.9	)			(568.7	)			(818.3	)
Net investment activity	$	(188.7	)		$	(148.0	)		$	(490.6	)		$	166.3
Portfolio companies, at beginning of period		229				249				247				233
Number of investments in new portfolio companies		1				9				3				43
Number of exited companies		(9	)			(12	)			(29	)			(30	)
Portfolio companies at end of period		221				246				221				246
Number of investments in existing portfolio companies		69				83				117				241

____________________

^* Totals may not foot due to rounding.

OPERATING RESULTS

	Three Months Ended September 30,								Nine Months Ended September 30,
(in millions)*	2026				2025				2026				2025
Net investment income	$	27.6			$	35.3			$	94.6			$	106.0
Net realized and change in unrealized gains (losses)		(44.0	)			(7.9	)			(155.4	)			(30.1	)
Net increase (decrease) in net assets resulting from operations	$	(16.4	)		$	27.5			$	(60.8	)		$	75.9
(per share)* (1)
Net investment income on per average share basis	$	0.34			$	0.38			$	1.11			$	1.13
Net realized and change in unrealized gain (loss) per share		(0.54	)			(0.09	)			(1.82	)			(0.32	)
Earnings per share — basic	$	(0.20	)		$	0.29			$	(0.71	)		$	0.81

____________________

* Totals may not foot due to rounding.

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

SHARE REPURCHASE PROGRAM*

During the three months ended September 30, 2026, the Company did not repurchase any shares.

Since the inception of the share repurchase program in August 2015 and through November 4, 2026, the Company has approved seven stock repurchase plans, and repurchased 27.0 million shares of common stock for a total cost of $375.0 million, inclusive of commissions.

In connection with the Transaction, the Company has suspended its share repurchase program and will suspend its dividend reinvestment plan in the near term.

* Share figures have been adjusted for the 1-for-3 reverse stock split which was completed after market close on November 30, 2018.

LIQUIDITY

As of September 30, 2026, the Company’s outstanding debt obligations, excluding deferred financing cost and debt discount of $5.3 million, totaled $1.6 billion, which was comprised of $80 million of Senior Unsecured Notes, which will mature on December 15, 2028, $456 million outstanding secured debt in MFIC Bethesda CLO 1 LLC, $399 million outstanding secured debt in MFIC Bethesda CLO 2 LLC, and $648 million outstanding under the Company's senior secured, multi-currency, revolving credit facility (the “Facility” and as amended, the “Amended Senior Secured Facility”). As of September 30, 2026, no standby letters of credit were issued through the Facility. The available remaining capacity under the Facility was $962 million as of September 30, 2026, which is subject to compliance with a borrowing base that applies different advance rates to different types of assets in the Company’s portfolio.

Borrowings under the Amended Senior Secured Facility (and the incurrence of certain other permitted debt) continue to be 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 depends on the relevant asset coverage ratio as of the date of determination. Borrowings under the Amended Senior Secured Facility continue to be subject to the leverage restrictions contained in the Investment Company Act of 1940, as amended (the “1940 Act”). Terms used in this disclosure have the meanings set forth in the Amended Senior Secured Facility.

In connection with the Transaction, the Facility is expected to be repaid in full and terminated upon the closing of the Transaction. In addition, ARCC may request that the Company issue one or more notices of optional redemption for the Senior Unsecured Notes, conditioned on the closing of the Transaction.

As previously announced, in light of the Transaction, MFIC will not hold a conference call.

SUPPLEMENTAL INFORMATION

The Company provides a supplemental information package to offer more transparency into its financial results and make its reporting more informative and easier to follow. The supplemental package is available in the Shareholders section of the Company’s website under Presentations at www.midcapfinancialic.com.

Our portfolio composition and weighted average yields as of September 30, 2026, June 30, 2026, March 31, 2026, December 31, 2025 and September 30, 2025 were as follows:

	September 30, 2026				June 30, 2026				March 31, 2026				December 31, 2025				September 30, 2025
Portfolio composition, at fair value:
First lien secured debt		95%				94%				95%				95%				95%
Second lien secured debt		0%				0%				0%				0%				0%
Total secured debt		95%				94%				95%				95%				95%
Unsecured debt		0%				0%				0%				0%				0%
Structured products and other		0%				1%				0%				0%				1%
Preferred equity		2%				2%				1%				1%				1%
Common equity/interests and warrants		3%				3%				4%				4%				3%
Weighted average yields, at amortized cost (1):
First lien secured debt (2)		9.6%				9.5%				9.5%				9.7%				10.2%
Second lien secured debt (2)		0.0%				0.0%				0.0%				13.0%				13.5%
Total secured debt (2)		9.6%				9.5%				9.5%				9.7%				10.2%
Unsecured debt portfolio (2)		0.0%				11.1%				11.1%				11.1%				11.1%
Total debt portfolio (2)		9.6%				9.5%				9.5%				9.7%				10.2%
Total portfolio (3)		7.9%				8.1%				8.3%				8.6%				9.0%
Interest rate type, at fair value (4):
Fixed rate amount	$	0.0 billion			$	0.0 billion			$	0.0 billion			$	0.0 billion			$	0.0 billion
Floating rate amount	$	2.3 billion			$	2.5 billion			$	2.7 billion			$	2.9 billion			$	2.9 billion
Fixed rate, as percentage of total		0%				0%				0%				0%				0%
Floating rate, as percentage of total		100%				100%				100%				100%				100%
Interest rate type, at amortized cost (4):
Fixed rate amount	$	0.0 billion			$	0.0 billion			$	0.0 billion			$	0.0 billion			$	0.0 billion
Floating rate amount	$	2.3 billion			$	2.6 billion			$	2.8 billion			$	2.9 billion			$	2.9 billion
Fixed rate, as percentage of total		0%				0%				0%				0%				0%
Floating rate, as percentage of total		100%				100%				100%				100%				100%

(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 and investments on non-accrual status.

MIDCAP FINANCIAL INVESTMENT CORPORATION CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (In thousands, except share and per share data)
	September 30, 2026				December 31, 2025
		(Unaudited)
Assets
Investments at fair value:
Non-controlled/non-affiliated investments (cost — $2,457,040 and $2,955,173, respectively)	$	2,271,232			$	2,819,511
Non-controlled/affiliated investments (cost — $228,518 and $176,978, respectively)		131,913				107,111
Controlled investments (cost — $166,475 and $224,619, respectively)		142,000				241,216
Cash and cash equivalents		57,379				98,184
Foreign currencies (cost — $311 and $1,286, respectively)		270				1,264
Receivable for investments sold		6,738				6,253
Interest receivable		22,243				23,678
Dividends receivable		—				630
Deferred financing costs		20,637				23,626
Unrealized appreciation on foreign currency forward contracts		1,256				—
Prepaid expenses and other assets		1,053				2,171
Total Assets	$	2,654,721			$	3,323,644
Liabilities
Debt (net of deferred financing costs and unamortized original discount of $5,281 and $5,838, respectively)	$	1,577,719			$	1,995,210
Payable for investments purchased		41				558
Management fees payable		4,858				6,034
Interest payable		10,036				12,867
Accrued administrative services expense		1,052				228
Other liabilities and accrued expenses		1,666				1,486
Total Liabilities	$	1,595,372			$	2,016,383
Commitments and contingencies (Note 8)
Net Assets	$	1,059,349			$	1,307,261
Net Assets
Common stock, $0.001 par value (130,000,000 shares authorized; 82,372,628 and 92,211,869 shares issued and outstanding, respectively)	$	82			$	92
Capital in excess of par value		2,545,065				2,652,891
Accumulated under-distributed (over-distributed) earnings		(1,485,798	)			(1,345,722	)
Net Assets	$	1,059,349			$	1,307,261
Net Asset Value Per Share	$	12.86			$	14.18

MIDCAP FINANCIAL INVESTMENT CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share data)
	Three Months Ended September 30,								Nine Months Ended September 30,
	2026				2025				2026				2025
Investment Income
Non-controlled/non-affiliated investments:
Interest income (excluding Payment-in-kind (“PIK”) interest income)	$	56,253			$	72,964			$	179,422			$	212,495
Dividend income		—				—				88				—
PIK interest income		2,607				3,785				10,717				11,724
Other income		444				458				1,600				1,003
Non-controlled/affiliated investments:
Interest income (excluding PIK interest income)		877				1,548				2,816				4,293
Dividend income		201				200				654				640
PIK interest income		275				407				445				1,162
Other income		17				—				17				—
Controlled investments:
Interest income (excluding PIK interest income)		1,308				3,214				6,276				11,193
Other income		—				—				—				10
Total Investment Income	$	61,982			$	82,576			$	202,035			$	242,520
Expenses
Management fees	$	4,858			$	6,069			$	15,631			$	18,209
Performance-based incentive fees		—				5,818				—				16,100
Interest and other debt expenses		26,046				33,038				81,598				96,083
Administrative services expense		1,357				1,029				3,908				3,055
Other general and administrative expenses		2,188				1,599				6,451				4,457
Total expenses		34,449				47,553				107,588				137,904
Expense reimbursements		(63	)			(284	)			(187	)			(1,370	)
Net Expenses	$	34,386			$	47,269			$	107,401			$	136,534
Net Investment Income	$	27,596			$	35,307			$	94,634			$	105,986
Net Realized and Change in Unrealized Gains (Losses)
Net realized gains (losses):
Non-controlled/non-affiliated investments	$	(28,719	)		$	(18,988	)		$	(38,410	)		$	(32,187	)
Non-controlled/affiliated investments		(82	)			(19	)			(213	)			(324	)
Controlled investments		(6	)			—				(8	)			—
Foreign currency forward contracts		(287	)			—				951				(610	)
Foreign currency transactions		2				(160	)			(4,325	)			(196	)
Net realized gains (losses)		(29,092	)			(19,167	)			(42,005	)			(33,317	)
Net change in unrealized gains (losses):
Non-controlled/non-affiliated investments		6,500				(3,688	)			(50,150	)			(12,300	)
Non-controlled/affiliated investments		(8,247	)			(1,173	)			(26,738	)			(3,565	)
Controlled investments		(13,674	)			15,316				(41,072	)			21,610
Foreign currency forward contracts		485				—				1,256				(9	)
Foreign currency translations		(3	)			859				3,264				(2,505	)
Net change in unrealized gains (losses)		(14,939	)			11,314				(113,440	)			3,231
Net Realized and Change in Unrealized Gains (Losses)	$	(44,031	)		$	(7,853	)		$	(155,445	)		$	(30,086	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	(16,435	)		$	27,454			$	(60,811	)		$	75,900
Earnings (Loss) Per Share — Basic	$	(0.20	)		$	0.29			$	(0.71	)		$	0.81

Important Information

Investors are advised to carefully consider the investment objective, risks, charges and expenses of the Company before investing. The Company's filings with the Securities and Exchange Commission (“SEC”), including annual reports on Form 10-K and quarterly reports on Form 10-Q, contain this and other information about the Company and should be read carefully before investing. You may obtain these documents for free by visiting EDGAR on the SEC website at www.sec.gov.

The information in this announcement is not complete and may be changed. This communication shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

Past performance is not indicative of, or a guarantee of, future performance. The performance and certain other portfolio information quoted herein represents information as of dates noted herein. Nothing herein shall be relied upon as a representation as to the future performance or portfolio holdings of the Company. Investment return and principal value of an investment will fluctuate, and shares, when sold, may be worth more or less than their original cost. The Company’s performance is subject to change since the end of the period noted in this report and may be lower or higher than the performance data shown herein.

About MidCap Financial Investment Corporation

MidCap Financial Investment Corporation (NASDAQ: MFIC) is a closed-end, externally managed, diversified management investment company that has elected to be treated as a business development company under the 1940 Act. For tax purposes, the Company has elected to be treated as a regulated investment company under Subchapter M of the Code. The Company is externally managed by Apollo Investment Management, L.P., an affiliate of Apollo Global Management, Inc. and its consolidated subsidiaries, a high-growth global alternative asset manager. The Company’s investment objective is to generate current income and, to a lesser extent, long-term capital appreciation. The Company primarily invests in directly originated and privately negotiated first lien senior secured loans to privately held U.S. middle-market companies, which the Company generally defines as companies with less than $75 million in earnings before interest, taxes, depreciation and amortization, as may be adjusted for market disruptions, mergers and acquisitions-related charges and synergies, and other items. To a lesser extent, the Company may invest in other types of securities including, first lien unitranche, second lien senior secured, unsecured, subordinated, and mezzanine loans, and equities in both private and public middle market companies. For more information, please visit www.midcapfinancialic.com.

About Ares Capital Corporation

Founded in 2004, ARCC is a leading specialty finance company focused on providing direct loans and other investments in private middle-market companies in the United States. ARCC’s objective is to source and invest in high-quality borrowers that need capital to achieve their business goals, which oftentimes can lead to economic growth and employment. ARCC believes its loans and other investments in these companies can help generate attractive levels of current income and potential capital appreciation for investors. ARCC, through its investment manager, utilizes its extensive, direct origination capabilities and incumbent borrower relationships to source and underwrite predominantly senior secured loans but also subordinated debt and equity investments. ARCC has elected to be regulated as a BDC and was the largest publicly traded BDC by market capitalization as of September 30, 2026. ARCC is externally managed by a subsidiary of Ares Management Corporation (NYSE: ARES), a publicly traded, leading global alternative investment manager. For more information about Ares Capital, visit www.arescapitalcorp.com.

Forward-Looking Statements

Some of the statements in this press release constitute forward-looking statements because they relate to future events, future performance or financial condition, including statements regarding the Transaction pursuant to a definitive merger agreement (the “Merger Agreement”) under which ARCC will acquire the Company. The forward-looking statements may include statements as to: the consummation of the Transaction, the future operating results of ARCC, the Company and, following the closing of the Transaction, the combined company, and distribution projections; business prospects of ARCC, the Company and the combined company, and the prospects of their portfolio companies; and the impact of the investments that ARCC, the Company and the combined company expect to make. In addition, words such as “anticipate,” “believe,” “expect,” “seek,” “plan,” “should,” “could,” “estimate,” “overestimate,” “underestimate,” “project,” “intend,” “may,” “will,” “endeavor,” “potential,” “predict,” “continue,” “target” and “would” indicate forward-looking statements, although not all forward-looking statements include these words. The forward-looking statements contained in this press release involve risks and uncertainties. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. The inclusion of such statements should not be regarded as a representation that such plans, estimates or expectations will be achieved. Certain factors could cause actual results and conditions to differ materially from those planned, projected, or estimated, including the uncertainties associated with (i) the ability of the parties to consummate the Transaction on the expected timeline, or at all; (ii) the failure of the Company’s stockholders to approve the Transaction and the other Proposals (as defined below); (iii) the possibility that any or all of the various conditions to the consummation of the Transaction, including the receipt of any required regulatory approvals, may not be satisfied or waived on a timely basis or at all, and including the possibility that a governmental entity may prohibit, delay or refuse to grant approval for the consummation of the Transaction or may require conditions, limitations or restrictions in connection with such approvals; (iv) the occurrence of any event, change or other circumstance that could give rise to the termination of the Merger Agreement, including circumstances requiring the Company to pay a termination fee; (v) the possibility that competing offers or acquisition proposals for the Company will be made; (vi) ARCC’s ability to realize the anticipated benefits of the Transaction, including the expected accretion to ARCC’s core earnings and the expected elimination of certain expenses and costs, including as a result of delay in completing the Transaction or integrating the businesses of the Company and ARCC; (vii) the amount of the special distribution from the Company’s undistributed taxable income, the NAV per share of ARCC and the trading price of ARCC common stock, each of which will affect the number of shares of ARCC common stock issued in the Transaction; (viii) risks related to diverting management’s attention from ongoing business operations and the effect of the announcement or pendency of the Transaction on the business relationships, operating results and business generally of ARCC and the Company; (ix) the combined company’s plans, expectations, objectives and intentions as a result of the Transaction, including the integration of the Company’s portfolio; (x) the future operating results and net investment income projections of ARCC, the Company or, following the closing of the Transaction, the combined company; (xi) the ability of Ares Management to implement its future plans with respect to the combined company and to attract and retain highly talented professionals; (xii) the business prospects of ARCC, the Company or the combined company and the ability of their portfolio companies to achieve their objectives; (xiii) the expected financings and investments and additional leverage that ARCC, the Company or the combined company may seek to incur in the future; (xiv) the adequacy of the cash resources and working capital of ARCC, the Company or the combined company; (xv) the timing of cash flows, if any, from the operations of the portfolio companies of ARCC, the Company or the combined company; (xvi) the ability of ARCC and the combined company to maintain their qualification as a business development company under the 1940 Act, and as a regulated investment company under Subchapter M of the Code; (xvii) general economic, political and market conditions, including changes in interest rates and credit spreads; (xviii) future changes in laws or regulations (including the interpretation of these laws and regulations by regulatory authorities); (xix) the risk that stockholder litigation in connection with the Transaction may result in significant costs of defense and liability; (xx) unexpected costs, charges or expenses resulting from the Transaction, and (xxi) such other factors as are described under the heading “Risk Factors” in ARCC’s and the Company’s respective annual reports on Form 10-K, quarterly reports on Form 10-Q and other filings with the SEC. Any forward-looking statements speak only as of the date of this press release. ARCC and the Company have based the forward-looking statements included in this press release on information available to them on the date hereof, and they assume no obligation to update any such forward-looking statements. Although ARCC and the Company 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 they may make directly to you or through reports that ARCC and/or the Company in the future may file with the SEC, including the Proxy Statement/Prospectus and the Registration Statement (in each case, as defined below), annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. Readers are cautioned not to place undue reliance on any of these forward-looking statements.

No Offer or Solicitation

This press release is not, and under no circumstances is it to be construed as, a prospectus or an advertisement and the communication of this press release is not, and under no circumstances is it to be construed as, an offer to sell or a solicitation of an offer to purchase any securities in ARCC, the Company or in any fund or other investment vehicle managed by Ares Management, Apollo Management or any of their respective affiliates.

Additional Information and Where to Find It

This press release relates to the proposed Transaction and certain related matters (the “Proposals”). In connection with the Proposals, ARCC will file with the SEC a registration statement on Form N-14 (the “Registration Statement”) that will include a proxy statement of the Company and a prospectus of ARCC (the “Proxy Statement/Prospectus”), and the Company will mail the Proxy Statement/Prospectus to its stockholders. The Proxy Statement/Prospectus and the Registration Statement will each contain important information about ARCC, the Company, the Transaction and the Proposals. This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended. INVESTORS IN ARCC AND STOCKHOLDERS OF THE COMPANY ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS AND REGISTRATION STATEMENT, AND OTHER DOCUMENTS THAT ARE FILED OR WILL BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT ARCC, THE COMPANY, THE TRANSACTION AND THE PROPOSALS. Investors and security holders will be able to obtain the documents filed with the SEC free of charge at the SEC’s website, http://www.sec.gov or, for documents filed by ARCC, from ARCC’s website at www.arescapitalcorp.com, and, for documents filed by the Company, from the Company’s website at https://www.midcapfinancialic.com.

Participants in the Solicitation

ARCC, its directors, certain of its executive officers and certain employees and officers of Ares Management and its affiliates may be deemed to be participants in the solicitation of proxies in connection with the Proposals. Information about the directors and executive officers of ARCC is set forth in its proxy statement for its 2026 Annual Meeting of Stockholders, which was filed with the SEC on March 5, 2026. The Company, its directors, certain of its executive officers and certain employees and officers of Apollo Management and its affiliates may be deemed to be participants in the solicitation of proxies in connection with the Proposals. Information about the directors and executive officers of the Company is set forth in its proxy statement for its 2026 Annual Meeting of Stockholders, which was filed with the SEC on April 30, 2026. Information regarding the persons who may, under the rules of the SEC, be considered participants in the solicitation of the Company’s stockholders in connection with the Proposals, including a description of their direct or indirect interests, by security holdings or otherwise, will be contained in the Proxy Statement/Prospectus when it becomes available. These documents may be obtained free of charge from the sources indicated above.

Contact

Elizabeth Besen
Investor Relations Manager
MidCap Financial Investment Corporation
212.822.0625
ebesen@apollo.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were MFIC's earnings for the quarter ended September 30, 2026?

MFIC reported net investment income of $0.34 per share and a net loss of $0.20 per share. Net investment income was $27.6 million, while realized and unrealized portfolio losses totaled $44.0 million.

How much will MFIC shareholders receive in the Ares Capital acquisition?

The agreed acquisition values each MFIC common share at $10.88, consisting of $9.67 in ARCC stock and $1.21 in cash. Ares Capital announced the stock-and-cash transaction on October 27, 2026.

What could happen to MFIC's unsecured notes in the Ares Capital acquisition?

Ares Capital may request that MFIC issue optional redemption notices for its Senior Unsecured Notes, conditioned on the acquisition closing. MFIC had $80 million of these notes outstanding at September 30, 2026, with maturity on December 15, 2028.