Monroe Capital Corporation

Monroe Capital Corporation (MRCC), a BDC focused on lower middle-market lending, reported a net decrease in net assets from operations of -$5.1M for FY 2025 ending December 31, 2025, compared to $9.7M in FY 2024 and $0.4M in FY 2023. Total investment income fell 37% YoY to $37.9M from $60.5M, driven by lower interest income ($27.6M vs $44.3M) and PIK interest ($7.7M vs $9.2M) due to a $122M portfolio contraction to $334.9M amid SLF wind-down and repayments. Net investment income dropped to $11.4M from $24.5M, with expenses declining 26% to $26.2M on reduced debt ($190.8M net) and zero incentive fees. Realized losses of -$16.7M and minimal unrealized gains ($0.1M) yielded the net loss. Balance sheet shows total assets $373.0M, liabilities $206.5M, net assets $166.5M. Pending asset sale to MCIP and merger with HRZN signal portfolio liquidation, with $62.0M revolver debt and $130.0M notes due 2026. Distributions totaled $20.1M ($0.93/share), fully from earnings. Forward liquidity tied to Transactions closing Q1/Q2 2026.

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