Monroe Capital Corporation (together with its subsidiaries, the “Company”) is an externally managed, non-diversified, closed-end management investment company and has elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). The Company’s investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation through investment in senior secured, junior secured and unitranche secured (a combination of senior secured and junior secured debt in the same facility in which the Company syndicates a “first out” portion of the loan to an investor and retains a “last out” portion of the loan) debt and, to a lesser extent, unsecured subordinated debt and equity ~~investments.~~co-investments in preferred and common stock and warrants. The Company is managed by Monroe Capital BDC Advisors, LLC (“MC Advisors”), a registered investment adviser under the Investment Advisers Act of 1940, as amended. In addition, for U.S. federal income tax purposes, the Company has elected to be treated as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”).

On February 28, 2014, the Company’s wholly-owned subsidiary, Monroe Capital Corporation SBIC, LP (“MRCC SBIC”), a Delaware limited partnership, received a license from the Small Business Administration (“SBA”) to operate as a Small Business Investment Company (“SBIC”) under Section 301(c) of the Small Business Investment Act of 1958, as amended. MRCC SBIC commenced operations on September 16, 2013. MRCC SBIC received approval from the SBA to surrender its SBIC license and on March 31, 2022, MRCC SBIC was dissolved. See Note 7 for additional information.

The accompanying consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”). The accompanying consolidated financial statements of the Company and related financial information have been prepared pursuant to the requirements for reporting on Form 10-Q and Articles 6 and 10 of Regulation S-X. The Company has determined it meets the definition of an investment company and follows the accounting and reporting guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946 – Financial Services – Investment Companies (“ASC Topic 946”). Certain prior period amounts have been reclassified to conform to the current period presentation.

The preparation of the consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

As permitted under ASC Topic 946, the Company will generally not consolidate its investment in a portfolio company other than an investment company subsidiary or a controlled operating company whose business consists of providing services to the Company. Accordingly, the Company consolidated the results of the Company’s wholly-owned subsidiaries, including MRCC SBIC (through its dissolution date) and its wholly-owned general partner MCC SBIC GP, LLC, and the Company’s wholly-owned taxable subsidiaries (the “Taxable Subsidies”) in its consolidated financial statements. The purpose of the Taxable Subsidiaries is to permit the Company to hold equity investments in portfolio companies that are taxed as partnerships for U.S. federal income tax purposes while complying with the “source of income” requirements contained in the RIC tax provisions. The Taxable Subsidiaries are not consolidated with the Company for U.S. federal corporate income tax purposes, and each Taxable Subsidiary is subject to U.S. federal corporate income tax on its taxable income. All intercompany balances and transactions have been eliminated. The Company does not consolidate its non-controlling interest in MRCC Senior Loan Fund I, LLC (“SLF”). See further description of the Company’s investment in SLF in Note 3.

The Company applies fair value to substantially all of its financial instruments in accordance with ASC Topic 820 –— Fair Value Measurements and Disclosures (“ASC Topic 820”). ASC Topic 820 defines fair value, establishes a framework used to measure fair value, and requires disclosures for fair value measurements, including the categorization of financial instruments into a three-level hierarchy based on the transparency of valuation inputs. See Note 4 for further discussion regarding the fair value measurements and hierarchy.

Investments and related investment income: Interest and dividend income is recorded on the accrual basis to the extent that the Company expects to collect such amounts. Interest income is accrued based upon the outstanding principal amount and contractual terms of debt and preferred equity investments. Interest is accrued on a daily basis. The Company records fees on loans based on the determination of whether the fee is considered a yield enhancement or payment for a service. If the fee is considered a yield enhancement associated with a funding of cash on a loan, the fee is generally deferred and recognized into interest income using the effective interest method if captured in the cost basis or using the straight-line method if the loan is unfunded and therefore there is no cost basis. If the fee is not considered a yield enhancement because a service was provided, and the fee is payment for that service, the fee is deemed earned and recognized as fee income in the period the service has been completed.

Dividend income on preferred equity securities is recorded as dividend income on an accrual basis to the extent that such amounts are payable by the portfolio company and are expected to be collected. Dividend income on common equity securities is recorded on the record date for private portfolio companies. Each distribution received from limited liability company (“LLC”) and limited partnership (“LP”) investments is evaluated to determine if the distribution should be recorded as dividend income or a return of capital. Generally, the Company will not record distributions from equity investments in LLCs and LPs as dividend income unless there are sufficient accumulated tax-basis earnings and profits in the LLC or LP prior to the applicable distribution. Distributions that are classified as a return of capital are recorded as a reduction in the cost basis of the investment. For the three months ended March 31, ~~2021~~2022 and ~~2020,~~2021, the Company received return of capital distributions from its equity investments and its investment in LLC equity ~~interest~~ in SLF of zero and $60, ~~and zero,~~ respectively.

The Company has certain investments in its portfolio that contain a payment-in-kind (“PIK”) provision, which represents contractual interest or dividends that are added to the principal balance and recorded as income. The Company stops accruing PIK interest or PIK dividends when it is determined that PIK interest or PIK dividends are no longer collectible. To maintain RIC tax treatment, and to avoid incurring corporate U.S. federal income tax, substantially all of this income must be paid out to stockholders in the form of distributions, even though the Company has not yet collected the cash.

Loan origination fees, original issue discount and market discount or premiums are capitalized, and the Company then amortizes such amounts using the effective interest method as interest income over the life of the investment. Unamortized discounts and loan origination fees totaled ~~$4,263~~$4,009 and ~~$4,844~~$4,370 as of March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, respectively. Upfront loan origination and closing fees received for the three months ended March 31, 2022 and 2021 totaled $289 and ~~2020, totaled~~ $465, ~~and $975,~~ respectively. Upon the prepayment of a loan or debt security, any unamortized premium or discount or loan origination fees are recorded as interest income.

Investment transactions are recorded on a trade-date basis. Realized gains or losses on portfolio investments are calculated based upon the difference between the net proceeds from the disposition and the amortized cost basis of the investment, without regard to unrealized gains or losses previously recognized. Realized gains and losses are recorded within net realized gain (loss) on investments on the consolidated statements of operations. Changes in the fair value of investments from the prior period, as determined by the Company’s board of directors (the “Board”) through the application of the Company’s valuation policy, are included within net change in unrealized gain (loss) on investments on the consolidated statements of operations.

Non-accrual: Loans or preferred equity securities are placed on non-accrual status when principal, interest or dividend payments become materially past due, or when there is reasonable doubt that principal, interest or dividends will be collected. Additionally, any original issue discount and market discount are no longer accreted to interest income as of the date the loan is placed on non-accrual status. Interest payments received on non-accrual loans may be recognized as income or applied to principal depending upon management’s judgment. Non-accrual loans are restored to accrual status when past due principal, interest, or dividends are paid, or are expected to be paid, and, in management’s judgment are likely to remain current. The fair value of the Company’s investments on non-accrual status totaled ~~$27,277~~$12,205 and ~~$22,273~~$14,693 at March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, respectively.

Distributions to common stockholders are recorded on the applicable record date. The amount, if any, to be distributed to common stockholders is determined by the Board each quarter and is generally based upon the Company’s earnings estimated by management. Net realized capital gains, if any, are generally distributed at least annually.

The determination of the tax attributes for the Company’s distributions is made annually, based upon its taxable income for the full year and distributions paid for the full year. Ordinary dividend distributions from a RIC do not qualify for the preferential tax rate on qualified dividend income from domestic corporations and qualified foreign corporations, except to the extent that the RIC received the income in the form of qualifying dividends from domestic corporations and qualified foreign corporations. The tax attributes for distributions will generally include both ordinary income and capital gains, but may also include qualified dividends or return of capital.

In October 2012, the Company adopted a dividend reinvestment plan (“DRIP”) that provides for the reinvestment of dividends on behalf of its stockholders, unless a stockholder has elected to receive dividends in cash. When the Company declares a cash dividend, the Company’s stockholders who have not “opted out” of the DRIP at least three days prior to the dividend payment date will have their cash dividend automatically reinvested into additional shares of the Company’s common stock. The Company has the option to satisfy the share requirements of the DRIP through the issuance of new shares of common stock or through open market purchases of common stock by the DRIP plan administrator. Newly issued shares are valued based upon the final closing price of the Company’s common stock on a date determined by the Board. Shares purchased in the open market to satisfy the DRIP requirements will be valued based upon the average price of the applicable shares purchased by the DRIP plan administrator, before any associated brokerage or other costs. See Note 9 for additional information on the Company’s distributions.

In accordance with ASC Topic 280 — – Segment Reporting, the Company has determined that it has a single reporting segment and operating unit structure.

The Company deposits its cash in a financial institution and, at times, such balances may be in excess of the Federal Deposit Insurance Corporation insurance limits.

Restricted cash ~~includes~~included amounts held within MRCC SBIC. Cash held within an SBIC is generally restricted to the originations of new loans from the SBIC and the payment of SBA debentures and related interest expense.

Deferred financing costs represent fees and other direct incremental costs incurred in connection with the Company’s borrowings. As of March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, the Company had unamortized deferred financing costs of ~~$7,715~~$4,154 and ~~$7,052~~$5,794 respectively, presented as a direct reduction of the carrying amount of debt on the consolidated statements of assets and liabilities. These amounts are amortized and included in interest and other debt financing expenses on the consolidated statements of operations over the estimated average life of the borrowings. Amortization of deferred financing costs for the three months ended March 31, ~~2021~~2022 and ~~2020~~2021 was $601 and ~~$484,~~$601, respectively.

Offering costs include, among other things, fees paid in relation to legal, accounting, regulatory and printing work completed in preparation of debt and equity offerings. Offering costs from equity offerings are charged against the proceeds from the offering within the consolidated statements of changes in net assets. Offering costs from debt offerings are reclassified to unamortized deferred financing costs on the consolidated statements of assets and liabilities as noted above. As of both March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, other assets on the consolidated statements of assets and liabilities included ~~$143 and $562, respectively,~~$123 of deferred offering costs which will be charged against the proceeds from future debt or equity offerings when completed.

As of March 31, 2022, the Company held investments in one portfolio company that was denominated in Australian dollars. As of December 31, 2021, the Company held investments in ~~two~~one portfolio ~~companies~~company that ~~were~~was denominated in Great Britain pounds and one portfolio company that was denominated in Australian dollars. ~~As of December 31, 2020, the Company held investments in two portfolio companies that were denominated in Great Britain pounds.~~

At each balance sheet date, portfolio company investments denominated in foreign currencies are translated into U.S. dollars using the spot exchange rate on the last business day of the period. Purchases and sales of foreign portfolio company investments, and any income from such investments, are translated into U.S. dollars using the rates of exchange prevailing on the respective dates of such transactions.

Although the fair values of foreign portfolio company investments and the fluctuation in such fair values are translated into U.S. dollars using the applicable foreign exchange rates described above, the Company does not isolate the portion of the change in fair value resulting from foreign currency exchange rates fluctuations from the change in fair value of the underlying investment. All fluctuations in fair value are included in net change in unrealized gain (loss) on investments on the Company’s consolidated statements of operations.

Investments denominated in foreign currencies and foreign currency transactions may involve certain consideration and risks not typically associated with those of domestic origin, including unanticipated movements in the value of the foreign currency relative to the U.S. dollar.

The Company may enter into foreign currency forward contracts to reduce the Company’s exposure to foreign currency exchange rate fluctuations. In a foreign currency forward contract, the Company agrees to receive or deliver a fixed quantity of one currency for another, at a pre-determined price at a future date. Foreign currency forward contracts are marked-to-market based on the difference between the forward rate and the exchange rate at the current period end. Unrealized gain (loss) on foreign currency forward contracts are recorded on the Company’s consolidated statements of assets and liabilities by counterparty on a net basis.

The Company does not utilize hedge accounting and as such values its foreign currency forward contracts at fair value with the change in unrealized gain or loss recorded in net change in unrealized gain (loss) on foreign currency forward contracts and the realized gain or loss recorded in net realized gain (loss) on foreign currency forward contracts on the Company’s consolidated statements of operations.

The Company has elected to be treated as a RIC under Subchapter M of the Code and operates in a manner so as to qualify for the tax treatment available to RICs. To maintain qualification as a RIC, the Company must, among other things, meet certain source-of-income and asset diversification requirements and distribute to stockholders, for each taxable year, at least 90% of the Company’s “investment company taxable income,” which is generally the Company’s net ordinary income plus the excess, if any, of realized net short-term capital gains over realized net long-term capital losses. If the Company qualifies as a RIC and satisfies the annual distribution requirement, the Company will not have to pay corporate-level federal income taxes on any income that the Company distributes to its stockholders. The Company intends to make distributions in an amount sufficient to maintain RIC status each year and to avoid any federal income taxes on income. The Company is also subject to nondeductible federal excise taxes if the Company does not distribute at least 98% of net ordinary income, 98.2% of any capital gain net income, if any, and any recognized and undistributed income from prior years for which it paid no federal income taxes. To the extent that the Company determines that its estimated current year annual taxable income may exceed estimated current year dividend distributions, the Company accrues excise tax, calculated as 4% of the estimated excess taxable income, if any, as taxable income is earned. For the three months ended March 31, ~~2021~~2022 and ~~2020,~~2021, the Company recorded a net expense on the consolidated statements of operations of ~~$30~~$19 and ~~$20,~~$30, respectively, for U.S. federal excise tax. As of March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, the Company had a receivable of ~~$64~~$74 and a payable of ~~$306~~$183 for excise taxes, respectively, which were included in accounts payable and accrued expenses on the Company’s consolidated statements of assets and liabilities.

The Company’s consolidated Taxable Subsidiaries may be subject to U.S. federal and state corporate-level income taxes. For both the three months ended March 31, ~~2021~~2022 and ~~2020,~~2021, the Company did not record a net tax expense on the consolidated statements of operations for these ~~Taxable Subsidiaries.~~subsidiaries. As of both March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, no payables for corporate-level income taxes were accrued.

The Company accounts for income taxes in conformity with ASC Topic 740 — Income Taxes (“ASC Topic 740”). ASC Topic 740 provides guidelines for how uncertain tax positions should be recognized, measured, presented and disclosed in the consolidated financial statements. ASC Topic 740 requires the evaluation of tax positions taken in the course of preparing the Company’s tax returns to determine whether the tax positions are “more-likely-than-not” to be sustained by the applicable tax authority. Tax benefits of positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax expense in the current year. It is the Company’s policy to recognize accrued interest and penalties related to uncertain tax benefits in income tax expense. The Company did not take any material uncertain income tax positions through March 31, ~~2021.~~2022. The ~~2017~~2018 through ~~2020~~2021 tax years remain subject to examination by U.S. federal and state tax authorities.

The Company has evaluated the need for disclosures and/or adjustments resulting from subsequent events through the date the consolidated financial statements were issued. There have been no subsequent events that occurred during such period that would require disclosure in this Form 10-Q or would be required to be recognized in the consolidated financial statements as of and for the three months ended March 31, ~~2021.~~2022.

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (“ASU 2020-04”). The amendments in ASU 2020-04 provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The standard is effective as of March 12, 2020 through December 31, 2022. ~~Management is currently evaluating the impact of the optional guidance on the Company’s consolidated financial statements and disclosures.~~ The Company did not utilize the optional expedients and exceptions provided by ASU 2020-04 during the three months ended March 31, ~~2021.~~2022.

The following tables show the composition of the Company’s investment portfolio, at amortized cost and fair value (with corresponding percentage of total portfolio investments):

The following tables show the composition of the Company’s investment portfolio by geographic region, at amortized cost and fair value (with corresponding percentage of total portfolio investments). The geographic composition is determined by the location of the corporate headquarters of the portfolio company, which may not be indicative of the primary source of the portfolio company’s business:

The following tables show the composition of the Company’s investment portfolio by industry, at amortized cost and fair value (with corresponding percentage of total portfolio investments):

The Company co-invests with Life Insurance Company of the Southwest (“LSW”) in senior secured loans through SLF, an unconsolidated Delaware LLC. SLF is capitalized as underlying investment transactions are completed, taking into account available debt and equity commitments available for funding these investments. All portfolio and investment decisions in respect to SLF must be approved by the SLF investment committee, consisting of one representative from the Company and one representative from LSW. SLF may cease making new investments upon notification of either member but operations will continue until all investments have been sold or paid-off in the normal course of business. Investments held by SLF are measured at fair value using the same valuation methodologies as described in Note 4. The Company’s investment is illiquid in nature as SLF does not allow for withdrawal from the LLC or the sale of a member’s interest unless approved by the board members of SLF. The full withdrawal of a member would result in an orderly wind-down of SLF.

SLF’s profits and losses are allocated to the Company and LSW in accordance with their respective ownership interests. As of both March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, the Company and LSW each owned 50.0% of the LLC equity interests of SLF. As of both March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, SLF had $100,000 in equity commitments from its members (in the aggregate), of which $84,300 was funded.

As of both March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, the Company had committed to fund $50,000 of LLC equity interest subscriptions to SLF. As of both March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, $42,150 of the Company’s LLC equity interest subscriptions to SLF had been called and contributed, net of return of capital distributions subject to recall.

For the three months ended March 31, ~~2021~~2022 and ~~2020,~~2021, the Company received ~~$1,200~~$900 and ~~$1,150~~$1,200 of dividend income from its LLC equity interest in SLF, respectively.

SLF has a senior secured revolving credit facility (as amended, the “SLF Credit Facility”) with Capital One, N.A., through its wholly-owned subsidiary MRCC Senior Loan Fund I Financing SPV, LLC (“SLF SPV”)~~, which as of March 31, 2021 allowed~~. The SLF Credit Facility allows SLF SPV to borrow up to ~~$170,000 at any one time,~~$175,000, subject to leverage and borrowing base restrictions. Borrowings ~~under~~on the SLF Credit Facility bear interest at an annual rate of LIBOR (three-month) plus ~~2.25%~~2.10%. ~~The maturity date on the SLF Credit Facility is March 22, 2023.~~

SLF does not pay any fees to MC Advisors or its affiliates; however, SLF has entered into an administration agreement with Monroe Capital Management Advisors, LLC (“MC Management”), pursuant to which certain loan servicing and administrative functions are delegated to MC Management. SLF may reimburse MC Management for its allocable share of overhead and other expenses incurred by MC Management. For the three months ended March 31, ~~2021~~2022 and ~~2020,~~2021, SLF incurred ~~$58~~$51 and ~~$56,~~$58, of allocable expenses, respectively. There are no agreements or understandings by which the Company guarantees any SLF obligations.

As of March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, SLF had total assets at fair value of ~~$202,560~~$202,062 and ~~$209,666,~~$194,623, respectively. As of both March 31, ~~2021~~2022 and December 31, 2021, SLF had one portfolio company investment on non-accrual status with a fair value of ~~$1,076~~$1,094 and ~~$1,031,~~$1,072, respectively. The portfolio companies in SLF are in industries and geographies similar to those in which the Company may invest directly. Additionally, as of March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, SLF had ~~$563~~$3,696 and ~~$839,~~$2,061, respectively, in outstanding commitments to fund investments under undrawn revolvers and delayed draw commitments.

Below is a summary of SLF’s portfolio, followed by a listing of the individual investments in SLF’s portfolio as of March 31, ~~2021~~2022 and December 31, ~~2020:~~2021:

Below is certain summarized financial information for SLF as of March 31, ~~2021~~2022 and December 31, ~~2020~~2021 and for the three months ended March 31, ~~2021~~2022 and ~~2020:~~2021:

The Company values all investments in accordance with ASC Topic 820. ASC Topic 820 requires enhanced disclosures about assets and liabilities that are measured and reported at fair value. As defined in ASC Topic 820, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Where available, fair value is based on observable market prices or parameters, or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models are applied. These valuation models involve some level of management estimation and judgment, the degree of which is dependent on the price transparency for the assets or liabilities or market and the assets’ or liabilities’ complexity.

ASC Topic 820 establishes a hierarchal disclosure framework which prioritizes and ranks the level of market price observability of inputs used in measuring investments at fair value. Market price observability is affected by a number of factors, including the type of investment and the characteristics specific to the investment. Investments with readily available active quoted prices or for which fair value can be measured from actively quoted prices generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.

Based on the observability of the inputs used in the valuation techniques, the Company is required to provide disclosures on fair value measurements according to the fair value hierarchy. The fair value hierarchy ranks the observability of the inputs used to determine fair values. Investments carried at fair value are classified and disclosed in one of the following three categories:

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an asset’s or liability’s categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. ~~All investments, with the exception of investments measured at fair value using net asset value (“NAV”), as of March 31, 2021 and December 31, 2020 were categorized as Level 3 investments.~~

With respect to investments for which market quotations are not readily available, the Company’s Board undertakes a multi-step valuation process each quarter, as described below:

The accompanying consolidated schedules of investments held by the Company consist primarily of private debt instruments (“Level 3 debt”). The Company generally uses the income approach to determine fair value for Level 3 debt where market quotations are not readily available, as long as it is appropriate. If there is deterioration in credit quality or a debt investment is in workout status, the Company may consider other factors in determining the fair value, including the value attributable to the debt investment from the enterprise value of the portfolio company or the proceeds that would be received in a liquidation analysis. This liquidation analysis may include probability weighting of alternative outcomes. The Company generally considers its Level 3 debt to be performing if the borrower is not in default, the borrower is remitting payments in a timely manner; the loan is in covenant compliance or is otherwise not deemed to be impaired. In determining the fair value of the performing Level 3 debt, the Company considers fluctuations in current interest rates, the trends in yields of debt instruments with similar credit ratings, financial condition of the borrower, economic conditions and other relevant factors, both qualitative and quantitative. In the event that a Level 3 debt instrument is not performing, as defined above, the Company will evaluate the value of the collateral utilizing the same framework described above for a performing loan to determine the value of the Level 3 debt instrument.

Under the income approach, discounted cash flow models are utilized to determine the present value of the future cash flow streams of its debt investments, based on future interest and principal payments as set forth in the associated loan agreements. In determining fair value under the income approach, the Company also considers the following factors: applicable market yields and leverage levels, credit quality, prepayment penalties, the nature and realizable value of any collateral, the portfolio company’s ability to make payments, and changes in the interest rate environment and the credit markets that generally may affect the price at which similar investments may be made.

Under the market approach, the enterprise value methodology is typically utilized to determine the fair value of an investment. There is no one methodology to estimate enterprise value and, in fact, for any one portfolio company, enterprise value is generally best expressed as a range of values, from which the Company derives a single estimate of enterprise value. In estimating the enterprise value of a portfolio company, the Company analyzes various factors consistent with industry practice, including but not limited to original transaction multiples, the portfolio company’s historical and projected financial results, applicable market trading and transaction comparables, applicable market yields and leverage levels, the nature and realizable value of any collateral, the markets in which the portfolio company does business, and comparisons of financial ratios of peer companies that are public. Typically, the enterprise values of private companies are based on multiples of earnings before interest, income taxes, depreciation and amortization (“EBITDA”), cash flows, net income, revenues, or in limited cases, book value.

In addition, for certain debt investments, the Company may base its valuation on indicative bid and ask prices provided by an independent third-party pricing service. Bid prices reflect the highest price that the Company and others may be willing to pay. Ask prices represent the lowest price that the Company and others may be willing to accept. The Company generally uses the midpoint of the bid/ask range as its best estimate of fair value of such investment.

As of March 31, ~~2021,~~2022, the Board determined, in good faith, the fair value of the Company’s portfolio investments in accordance with GAAP and the Company’s valuation procedures based on the facts and circumstances known by the Company at that time, or reasonably expected to be known at that time. Due to the overall volatility that the COVID-19 pandemic has caused, any valuations conducted in the future in conformity with GAAP could result in a lower fair value of the Company’s portfolio. The potential impact of COVID-19 on the Company’s results going forward will depend to a large extent on future developments or new information that may emerge regarding the full duration and severity of COVID-19, including the actions taken by governments and other entities to contain COVID-19 or treat its impact, all of which are beyond the Company’s control. Accordingly, the Company cannot predict the extent to which its financial condition and results of operations will be affected at this time.

The valuation for the Company’s foreign currency forward contracts is based on the difference between the exchange rate associated with the forward contract and the exchange rate at the current period end. Foreign currency forward contracts are categorized as Level 2 in the fair value hierarchy.

The following tables present fair value measurements of investments and foreign currency forward contracts, by major class according to the fair value hierarchy:

Senior secured loans, unitranche secured loans and junior secured loans are collateralized by tangible and intangible assets of the borrowers. These investments include loans to entities that have some level of challenge in obtaining financing from other, more conventional institutions, such as a bank. Interest rates on these loans are either fixed or floating, and are based on current market conditions and credit ratings of the borrower. Excluding loans on non-accrual, the contractual interest rates on the loans ranged from 6.00% to ~~18.00%~~16.00% at March 31, ~~2021~~2022 and 6.00% to ~~18.00%~~16.00% at December 31, ~~2020.~~2021. The maturity dates on the loans outstanding at March 31, ~~2021~~2022 range between ~~June 2021~~May 2022 and ~~February~~July 2028.

The following tables provide a reconciliation of the beginning and ending balances for investments at fair value that use Level 3 inputs for the three months ended March 31, ~~2021~~2022 and ~~2020:~~2021:

The total net change in unrealized gain (loss) on investments included on the consolidated statements of operations for the three months ended March 31, ~~2021~~2022 and ~~2020,~~2021, attributable to Level 3 investments still held at March 31, 2022 and 2021, was ($2,821) and ~~2020, was~~ $2,993, ~~and ($33,632),~~ respectively. Reclassifications impacting Level 3 of the fair value hierarchy are reported as transfers in or out of Level 3 as of the beginning of the period in which the reclassifications occur. There were no transfers among Levels 1, 2 and 3 during the three months ended March 31, ~~2021~~2022 and ~~2020.~~2021.

ASC Topic 820 requires disclosure of quantitative information about the significant unobservable inputs used in the valuation of assets and liabilities classified as Level 3 within the fair value hierarchy. Disclosure of this information is not required in circumstances where a valuation (unadjusted) is obtained from a third-party pricing service and the information regarding the unobservable inputs is not reasonably available to the Company and as such, the disclosures provided below exclude those investments valued in that manner. The tables below are not intended to be all-inclusive, but rather to provide information on significant unobservable inputs and valuation techniques used by the Company.

The valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements of assets and liabilities as of March 31, ~~2021~~2022 were as follows:

The valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements of assets and liabilities as of December 31, ~~2020~~2021 were as follows:

The significant unobservable input used in the income approach of fair value measurement of the Company’s investments is the discount rate used to discount the estimated future cash flows expected to be received from the underlying investment, which include both future principal and interest payments. Increases (decreases) in the discount rate would result in a decrease (increase) in the fair value estimate of the investment. Included in the consideration and selection of discount rates are the following factors: risk of default, rating of the investment and comparable investments, and call provisions.

The significant unobservable inputs used in the market approach of fair value measurement of the Company’s investments are the market multiples of EBITDA or revenue of the comparable guideline public companies. The Company selects a population of public companies for each investment with similar operations and attributes of the portfolio company. Using these guideline public companies’ data, a range of multiples of enterprise value to EBITDA or revenue is calculated. The Company selects percentages from the range of multiples for purposes of determining the portfolio company’s estimated enterprise value based on said multiple and generally the latest twelve months EBITDA or revenue of the portfolio company (or other meaningful measure). Increases (decreases) in the multiple will result in an increase (decrease) in enterprise value, resulting in an increase (decrease) in the fair value estimate of the investment.

ASC Topic 820 requires disclosure of the fair value of financial instruments for which it is practical to estimate such value. The Company believes that the carrying amounts of its other financial instruments such as cash, receivables and payables approximate the fair value of such items due to the short maturity of such instruments. Fair value of the Company’s revolving credit facility is estimated by discounting remaining payments using applicable market rates or market quotes for similar instruments at the measurement date, if applicable. As of both March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, the Company believes that the carrying value of its revolving credit facility approximates fair value. The senior unsecured notes (“2026 ~~Notes~~Notes”) are carried at cost and with their longer maturity dates, fair value is estimated by discounting remaining payments using current market rates for similar instruments and considering such factors as the legal maturity date and the ability of market participants to prepay the notes. As of March 31, 2022 and December 31, 2021, the Company believes that the carrying value of the 2026 Notes approximates fair value. SBA debentures ~~are~~were carried at cost and with their longer maturity dates, fair value iswas estimated by discounting remaining payments using current market rates for similar instruments and considering such factors as the legal maturity date and the ability of market participants to prepay the SBA debentures. As of ~~both March~~December 31, 2021, ~~and December 31, 2020,~~ the Company ~~believes~~believed that the carrying value of the SBA debentures ~~approximates~~approximated fair value.

An affiliated company is a company in which the Company has an ownership interest of 5% or more of its voting securities. A controlled affiliate company is a company in which the Company has an ownership interest of more than 25% of its voting securities. Please see the Company’s consolidated schedule of investments for the type of investment, principal amount, interest rate including the spread, and the maturity date. Transactions related to the Company’s investments with affiliates for the three months ended March 31, ~~2021~~2022 and ~~2020~~2021 were as follows:

Note 6. Transactions with Related Parties

The Company has entered into an investment advisory agreement with MC Advisors (the “Investment Advisory Agreement”), under which MC Advisors, subject to the overall supervision of the Board, provides investment advisory services to the Company. The Company pays MC Advisors a fee for its services under the Investment Advisory Agreement consisting of two components - a base management fee and an incentive fee. The cost of both the base management fee and the incentive fee are borne by the Company’s stockholders, unless such fees are waived by MC Advisors.

The base management fee is calculated initially at an annual rate equal to 1.75% of average invested assets (calculated as total assets excluding cash, which includes assets financed using leverage); provided, however, the base management fee is calculated at an annual rate equal to 1.00% of the Company’s average invested assets (calculated as total assets excluding cash, which includes assets financed using leverage) that exceeds the product of (i) 200% and (ii) the Company’s average net assets. For the avoidance of doubt, the 200% is calculated in accordance with the asset coverage limitation as defined in the 1940 Act to give effect to the Company’s exemptive relief with respect to MRCC SBIC’s SBA ~~debentures.~~debentures during the period they were outstanding. This has the effect of reducing the Company’s base management fee rate on assets in excess of regulatory leverage of 1:1 debt to equity to 1.00% per annum. The base management fee is payable quarterly in arrears.

Base management fees for the three months ended March 31, 2022 and 2021 were $2,343 and ~~2020 were~~ $2,334, respectively. MC Advisors elected to voluntarily waive $55 and ~~$2,551,~~zero of such base management fees for the three months ended March 31, 2022 and 2021, respectively.

The incentive fee consists of two parts. The first part is calculated and payable quarterly in arrears and equals 20% of “pre-incentive fee net investment income” for the immediately preceding quarter, subject to a 2% (8% annualized) preferred return, or “hurdle,” and a “catch up” feature. The foregoing incentive fee is subject to a total return requirement, which provides that no incentive fee in respect of pre-incentive fee net investment income will be payable except to the extent that 20% of the cumulative net increase in net assets resulting from operations over the then current and 11 preceding calendar quarters exceeds the cumulative incentive fees accrued and/or paid for the 11 preceding calendar quarters (the “Incentive Fee Limitation”). Therefore, any ordinary income incentive fee that is payable in a calendar quarter will be limited to the lesser of (1) 20% of the amount by which pre-incentive fee net investment income for such calendar quarter exceeds the 2% hurdle, subject to the “catch-up” provision, and (2) (x) 20% of the cumulative net increase in net assets resulting from operations for the then current and 11 preceding calendar quarters minus (y) the cumulative incentive fees accrued and/or paid for the 11 preceding calendar quarters. For the foregoing purpose, the “cumulative net increase in net assets resulting from operations” is the sum of pre-incentive fee net investment income, realized gains and losses and unrealized gains and losses for the then current and 11 preceding calendar quarters. The second part of the incentive fee is determined and payable in arrears as of the end of each fiscal year in an amount equal to 20% of realized capital gains, if any, on a cumulative basis from inception through the end of the year, computed net of all realized capital losses on a cumulative basis and unrealized depreciation, less the aggregate amount of any previously paid capital gain incentive fees.

The composition of the Company’s incentive fees was as follows:

	Three months ended March 31,						Three months ended March 31,
	2021			2020			2022			2021
Part one incentive fees ⁽¹⁾	$	830		$	1,356		$	408		$	830
Part two incentive fees ⁽²⁾		—			—			—			—
Incentive Fee Limitation		—			(1,356	)		—			—
Incentive fees, excluding the impact of the incentive fee waiver		830			—
Incentive fee waiver ⁽³⁾		(637	)		—
Total incentive fees, net of incentive fee waiver	$	193		$	—
Incentive fees, excluding the impact of the incentive fee waivers								408			830
Incentive fee waivers ⁽³⁾								(408	)		(637	)
Total incentive fees, net of incentive fee waivers							$	—		$	193

	⁽¹⁾	Based on pre-incentive fee net investment income.
	⁽²⁾	Based upon net realized and unrealized gains and losses, or capital gains. The Company accrues, but does not pay, a capital gains incentive fee in connection with any unrealized capital appreciation, as appropriate. If, on a cumulative basis, the sum of net realized gain (loss) plus net unrealized gain (loss) decreases during a period, the Company will reverse any excess capital gains incentive fee previously accrued such that the amount of capital gains incentive fee accrued is no more than 20% of the sum of net realized gain (loss) plus net unrealized gain (loss).
	⁽³⁾	Represents part one incentive fees waived by MC Advisors.

The Company has entered into an administration agreement with MC Management (the “Administration Agreement”), under which the Company reimburses MC Management, subject to the review and approval of the Board, for its allocable portion of overhead and other expenses, including the costs of furnishing the Company with office facilities and equipment and providing clerical, bookkeeping, record-keeping and other administrative services at such facilities, and the Company’s allocable portion of the cost of the chief financial officer and chief compliance officer and their respective staffs. To the extent that MC Management outsources any of its functions, the Company will pay the fees associated with such functions on a direct basis, without incremental profit to MC Management. For the three months ended March 31, ~~2021~~2022 and ~~2020,~~2021, the Company incurred ~~$842~~$829 and ~~$784,~~$842, respectively, in administrative expenses (included within Professional fees, Administrative service fees and General and administrative expenses on the consolidated statements of operations) under the Administration Agreement, of which ~~$356~~$330 and ~~$338,~~$356, respectively, was related to MC Management overhead and salary allocation and paid directly to MC Management. As of March 31, ~~2021~~2022 and December 31, ~~2020, $356~~2021, $330 and ~~$327,~~$337, respectively, of expenses were due to MC Management under this agreement and are included in accounts payable and accrued expenses on the consolidated statements of assets and liabilities.

The Company has entered into a license agreement with Monroe Capital LLC under which Monroe Capital LLC has agreed to grant the Company a non-exclusive, royalty-free license to use the name “Monroe Capital” for specified purposes in its business. Under this agreement, the Company has the right to use the “Monroe Capital” name at no cost, subject to certain conditions, for so long as MC Advisors or one of its affiliates remains its investment adviser. Other than with respect to this limited license, the Company has no legal right to the “Monroe Capital” name or logo.

As of March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, the Company had accounts payable to members of the Board of $35 and zero, respectively, representing accrued and unpaid fees for their services.

Note 7. Borrowings

In accordance with the 1940 Act, the Company is permitted to borrow amounts such that its asset coverage ratio, as defined in the 1940 Act, is at least 150% after such borrowing. The Company has been granted exemptive relief from the SEC for permission to exclude the debt of MRCC SBIC guaranteed by the SBA from the asset coverage test under the 1940 Act. As of March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, the Company’s asset coverage ratio based on aggregate borrowings outstanding was ~~206%~~177% and ~~200%~~189%, respectively.

Revolving Credit Facility: The Company has a $255,000 revolving credit facility with ING Capital LLC, as agent. The revolving credit facility has an accordion feature which permits the Company, under certain circumstances to increase the size of the facility up to $400,000 (subject to maintaining 150% asset coverage, as defined by the 1940 Act). The revolving credit facility is secured by a lien on all of the Company’s assets, including cash on hand, but excluding the assets of the Company’s wholly-owned subsidiary, MRCC ~~SBIC.~~SBIC, prior to its dissolution. The Company may make draws under the revolving credit facility to make or purchase additional investments through March 1, 2023 and for general working capital purposes until March 1, 2024, the maturity date of the revolving credit facility.

The Company’s ability to borrow under the revolving credit facility is subject to availability under the borrowing base, which permits the Company to borrow up to 72.5% of the fair market value of its portfolio company investments depending on the type of investment the Company holds and whether the investment is quoted. The Company’s ability to borrow is also subject to certain concentration limits, and continued compliance with the representations, warranties and covenants given by the Company under the facility. The revolving credit facility contains certain financial and restrictive covenants, including, but not limited to, the Company’s maintenance of: (1) minimum consolidated total net assets at least equal to $150,000 plus 65% of the net proceeds to the Company from sales of its equity securities after March 1, 2019; (2) a ratio of total assets (less total liabilities other than indebtedness) to total indebtedness of not less than 1.5 to 1; and (3) a senior debt coverage ratio of at least 2 to 1. The revolving credit facility also requires the Company to undertake customary indemnification obligations with respect to ING Capital LLC and other members of the lending group and to reimburse the lenders for expenses associated with entering into the credit facility. The revolving credit facility also has customary provisions regarding events of default, including events of default for nonpayment, change in control transactions at both Monroe Capital Corporation and MC Advisors, failure to comply with financial and negative covenants, and failure to maintain the Company’s relationship with MC Advisors. If the Company incurs an event of default under the revolving credit facility and fails to remedy such default under any applicable grace period, if any, then the entire revolving credit facility could become immediately due and payable, which would materially and adversely affect the Company’s liquidity, financial condition, results of operations and cash flows.

The Company’s revolving credit facility also imposes certain conditions that may limit the amount of the Company’s distributions to stockholders. Distributions payable in the Company’s common stock under the DRIP are not limited by the revolving credit facility. Distributions in cash or property other than common stock are generally limited to 115% of the amount of distributions required to maintain the Company’s status as a RIC.

As of March 31, 2022, the Company had U.S. dollar borrowings of $188,300. As of December 31, 2021, the Company had U.S. dollar borrowings of ~~$70,700~~$146,400 and non-U.S. dollar borrowings denominated in Great Britain pounds of ~~£16,100~~£3,433 ($~~22,191~~4,645 in U.S. dollars) under the revolving credit facility. ~~As of December 31, 2020, the Company had U.S. dollar borrowings of $104,550 and non-U.S. dollar~~Any borrowings denominated in ~~Great Britain pounds of £16,100 ($22,009 in U.S. dollars) under the revolving credit facility. The borrowings denominated in Great Britain pounds~~a foreign currency may be positively or negatively affected by movements in the rate of exchange between the U.S. dollar and the ~~Great Britain pound.~~respective foreign currency. These movements are beyond the control of the Company and cannot be predicted. ~~The borrowings~~Borrowings denominated in ~~Great Britain pounds~~a foreign currency are translated into U.S. dollars based on the spot rate at each balance sheet date. The impact resulting from changes in foreign currency borrowings is included in net change in unrealized gain (loss) on foreign currency and other transactions on the Company’s consolidated statements of operations and totaled $157 and ($182) ~~and $1,348~~ for the three months ended March 31, 2022 and 2021, respectively.

During the three months ended March 31, 2022, the Company repaid borrowings denominated in Great Britain pounds of £3,433. As a result of this repayment, the Company recognized a realized gain (loss) on foreign currency and ~~2020, respectively.~~other transactions on the Company’s consolidated statements of operations of ($11) for the three months ended March 31, 2022. There were no repayments of foreign currency borrowings for the three months ended March 31, 2021.

Borrowings under the revolving credit facility bear interest, at the Company’s election, at an annual rate of LIBOR (one-month, three-month or six-month at the Company’s discretion based on the term of the borrowing) plus 2.625% or at a daily rate equal to 1.625% per annum plus the greater of the prime interest rate, the federal funds rate plus 0.5% or LIBOR plus 1.0%, with a LIBOR floor of 0.5%. In addition to the stated interest rate on borrowings under the revolving credit facility, the Company is required to pay a commitment fee and certain conditional fees based on usage of the expanded borrowing base and usage of the asset coverage ratio flexibility. A commitment fee of 0.5% per annum on any unused portion of the revolving credit facility if the unused portion of the facility is less than 35% of the then available maximum borrowing or a commitment fee of 1.0% per annum on any unused portion of the revolving credit facility if the unused portion of the facility is greater than or equal to 35% of the then available maximum borrowing. As of both March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, the outstanding borrowings were accruing at a weighted average interest rate of ~~3.2% and 3.2%, respectively.~~3.1%.

~~2023~~2026 Notes: ~~On February 18,~~As of both March 31, 2022 and December 31, 2021, the Company ~~redeemed $109,000~~had $130,000 in aggregate principal amount of senior unsecured notes outstanding that mature on February 15, 2026. The 2026 Notes bear interest at an annual rate of 4.75% payable semi-annually on February 15 and August 15. The Company may redeem the ~~2023 Notes.~~2026 Notes in whole or in part at any time or from time to time at the Company’s option at par plus a “make-whole” premium, if applicable. The ~~redemption~~2026 Notes are general, unsecured obligations and rank equal in right of payment with all of the Company’s existing and future unsecured indebtedness.

SBA Debentures: On March 1, 2022, MRCC SBIC fully repaid its outstanding debentures utilizing a borrowing on the revolving credit facility and the restricted cash at MRCC SBIC. This repayment was accounted for as a debt extinguishment in accordance with ASC Subtopic 470-50, Debt – Modifications and Extinguishments (“ASC 470-50”), which resulted in a realized loss of $2,335 (primarily comprised of the unamortized deferred financing costs at the time of the redemption) recorded in net gain (loss) on extinguishment of debt on the Company’s consolidated statements of operations. The 2023 Notes were delisted from the Nasdaq Global Select Market in conjunction with the redemption.

~~2026 Notes:~~ On January 25, 2021, the Company closed a private offering of $130,000 in aggregate principal amount of senior unsecured notes (the “2026 Notes”). Aggregate underwriting commissions were $3,325 and other issuance costs were $683, resulting in net proceeds of approximately $125,992. The 2026 Notes will mature on February 15, 2026 and may be redeemed in whole or in part at any time or from time to time at the Company’s option at par plus a “make-whole” premium, if applicable. The 2026 Notes will bear interest at an annual rate of 4.75% payable semi-annually on February 15 and August 15 of each year, commencing on August 15, 2021. The 2026 Notes are general, unsecured obligations and rank equal in right of payment with all of the Company’s existing and future unsecured indebtedness.

~~SBA Debentures:~~ On February 28, 2014, the Company’s wholly-owned subsidiary, MRCC SBIC received a license from the SBA to operate as a SBIC under Section 301(c) of the Small Business Investment Act of 1958, as amended. MRCC SBIC commenced operations on September 16, 2013.

The SBIC license allows MRCC SBIC to obtain leverage by issuing SBA debentures, subject to the issuance of a leverage commitment by the SBA and other customary procedures. SBA debentures are non-recourse, interest only debentures with interest payable semi-annually and have a 10-year maturity. The principal amount of SBA debentures is not required to be paid prior to maturity but may be prepaid at any time without penalty. The interest rate of SBA debentures is fixed on a semi-annual basis (pooling date) at a market-driven spread over U.S. Treasury Notes with 10-year maturities. The SBA, as a creditor, has a superior claim to MRCC SBIC’s assets over the Company’s stockholders in the event the Company liquidates MRCC SBIC, or the SBA exercises its remedies upon an event of default.

On March 1, 2021, the Company repaid $28,100 in aggregate principal amount of the SBA debentures. The repayment was accounted for as a debt extinguishment in accordance with ASC 470-50 which resulted in a realized loss of $439$1,039 (primarily comprised of the unamortized deferred financing costs at the time of the repayment) recorded in net gain (loss) on extinguishment of debt on the Company’s consolidated statements of operations. ~~As of~~MRCC SBIC received approval from the SBA to surrender its SBIC license and on March 31, ~~2021,~~2022, MRCC SBIC ~~had $8,165 in cash and $120,642 in investments at fair value. As of December 31, 2020, MRCC SBIC had $25,657 in cash and $131,167 in investments at fair value.~~was dissolved.

As of March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, MRCC SBIC had zero and $57,624, respectively, in leverageable capital and the following ~~SBA-guaranteed~~SBA debentures outstanding:

Maturity Date	Interest Rate			March 31, 2021		December 31, 2020		Interest Rate			March 31, 2022		December 31, 2021
September 2024		3.4	%	$	12,920	$	12,920		3.4	%	$	—	$	2,920
March 2025		3.3	%		14,800		14,800		3.3	%		—		14,800
March 2025		2.9	%		7,080		7,080		2.9	%		—		7,080
September 2025		3.6	%		—		5,200
March 2027		3.5	%		20,000		20,000
September 2027		3.2	%		32,100		32,100		3.2	%		—		32,100
March 2028		3.9	%		—		18,520
September 2028		4.2	%		—		4,380
Total				$	86,900	$	115,000				$	—	$	56,900

SBA regulations currently limit the amount that an individual SBIC may borrow to a maximum of $175,000 when it has at least $87,500 in regulatory capital, receives a leverage commitment from the SBA and has been through an audit examination by the SBA subsequent to licensing. The SBA also limits a related group of SBICs (commonly referred to as a “family of funds”) to a maximum of $350,000 in total borrowings.

The Company has been granted exemptive relief from the SEC for permission to exclude the debt of MRCC SBIC guaranteed by the SBA from the asset coverage test under the 1940 Act. The receipt of this exemption for this SBA debt increases flexibility under the asset coverage test.

Components of interest expense: The components of the Company’s interest expense and other debt financing expenses, average outstanding balances and average stated interest rates (i.e. the rate in effect plus spread) were as follows:

	Three months ended March 31,						Three months ended March 31,
	2021			2020			2022			2021
Interest expense - revolving credit facility	$	1,005		$	1,798		$	1,474		$	1,005
Interest expense - 2023 Notes		837			1,567			—			837
Interest expense - 2026 Notes		1,132			—			1,555			1,132
Interest expense - SBA debentures		878			981			292			878
Amortization of deferred financing costs		601			484			601			601
Total interest and other debt financing expenses	$	4,453		$	4,830		$	3,922		$	4,453
Average debt outstanding	$	346,655		$	400,453		$	338,446		$	346,655
Average stated interest rate		4.5	%		4.4	%		3.9	%		4.5	%

Note 8. Derivative Instruments

The Company enters into foreign currency forward contracts from time to time to help mitigate the impact that an adverse change in foreign exchange rates would have on future interest cash flows from the Company’s investments denominated in foreign currencies. As of March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, the counterparty to these foreign currency forward contracts was Bannockburn Global Forex, LLC. Net unrealized gain or loss on foreign currency forward contracts are included in net change in unrealized gain (loss) on foreign currency forward contracts and net realized gain or loss on forward currency forward contracts are included in net realized gain (loss) on foreign currency forward contracts on the accompanying consolidated statements of operations.

Certain information related to the Company’s foreign currency forward contracts is presented below as of March 31, ~~2021~~2022 and December 31, ~~2020.~~ 2021.

	As of March 31, 2021									As of March 31, 2022
	Notional Amount to be Sold		Settlement Date	Gross Amount of Unrealized Gain		Gross Amount of Unrealized Loss			Balance Sheet location of Net Amounts
Description										Notional Amount to be Sold		Settlement Date	Gross Amount of Unrealized Gain		Gross Amount of Unrealized Loss			Balance Sheet location of Net Amounts
Foreign currency forward contract	£	84	4/2/2021	$	—	$	(13	)	Unrealized gain on foreign currency forward contracts	£	79	4/4/2022	$	—	$	(6	)	Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	£	212	6/1/2021		—		(21	)	Unrealized gain on foreign currency forward contracts	£	29	5/6/2022		—		(2	)	Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	£	26	6/1/2021		—		(3	)	Unrealized gain on foreign currency forward contracts	AUD	146	4/19/2022		4		—		Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	£	16	6/3/2021		—		—		Unrealized gain on foreign currency forward contracts	AUD	138	5/17/2022		3		—		Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	£	83	7/2/2021		—		(12	)	Unrealized gain on foreign currency forward contracts	AUD	153	6/17/2022		4		—		Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	£	900	7/2/2021		16		—		Unrealized gain on foreign currency forward contracts	AUD	138	7/18/2022		3		—		Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	£	83	10/4/2021		—		(12	)	Unrealized gain on foreign currency forward contracts	AUD	140	8/16/2022		3		—		Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	£	82	1/3/2022		—		(12	)	Unrealized gain on foreign currency forward contracts	AUD	153	9/16/2022		4		—		Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	£	79	4/4/2022		—		(12	)	Unrealized gain on foreign currency forward contracts	AUD	152	10/19/2022		4		—		Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	£	29	5/6/2022		—		(4	)	Unrealized gain on foreign currency forward contracts	AUD	136	11/16/2022		3		—		Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	173	4/20/2021		5		—		Unrealized gain on foreign currency forward contracts	AUD	142	12/16/2022		3		—		Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	95	5/18/2021		3		—		Unrealized gain on foreign currency forward contracts	AUD	153	1/18/2023		4		—		Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	108	6/17/2021		3		—		Unrealized gain on foreign currency forward contracts	AUD	140	2/16/2023		3		—		Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	98	7/16/2021		3		—		Unrealized gain on foreign currency forward contracts	AUD	132	3/16/2023		3		—		Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	102	8/17/2021		3		—		Unrealized gain on foreign currency forward contracts	AUD	160	4/20/2023		4		—		Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	108	9/16/2021		3		—		Unrealized gain on foreign currency forward contracts	AUD	121	5/16/2023		2		—		Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	105	10/19/2021		3		—		Unrealized gain on foreign currency forward contracts	AUD	156	6/19/2023		4		—		Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	95	11/16/2021		3		—		Unrealized gain on foreign currency forward contracts	AUD	138	7/18/2023		3		—		Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	108	12/16/2021		3		—		Unrealized gain on foreign currency forward contracts	AUD	146	8/16/2023		3		—		Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	115	1/19/2022		3		—		Unrealized gain on foreign currency forward contracts	AUD	146	9/18/2023		3		—		Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	95	2/16/2022		3		—		Unrealized gain on foreign currency forward contracts	AUD	148	10/18/2023		3		—		Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	95	3/16/2022		3		—		Unrealized gain on foreign currency forward contracts	AUD	140	11/16/2023		3		—		Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	105	4/19/2022		3		—		Unrealized gain on foreign currency forward contracts	AUD	142	12/18/2023		3		—		Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	98	5/17/2022		3		—		Unrealized gain on foreign currency forward contracts	AUD	150	1/17/2024		3		—		Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	112	6/17/2022		3		—		Unrealized gain on foreign currency forward contracts	AUD	143	2/16/2024		3		—		Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	98	7/18/2022		3		—		Unrealized gain on foreign currency forward contracts	AUD	15,410	3/18/2024		298		—		Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	98	8/16/2022		2		—		Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	112	9/16/2022		3		—		Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	112	10/19/2022		3		—		Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	95	11/16/2022		2		—		Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	102	12/16/2022		2		—		Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	112	1/18/2023		3		—		Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	98	2/16/2023		2		—		Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	95	3/16/2023		2		—		Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	118	4/20/2023		3		—		Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	81	5/16/2023		2		—		Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	115	6/19/2023		2		—		Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	98	7/18/2023		2		—		Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	105	8/16/2023		2		—		Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	105	9/18/2023		2		—		Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	108	10/18/2023		2		—		Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	98	11/16/2023		2		—		Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	102	12/18/2023		2		—		Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	108	1/17/2024		2		—		Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	102	2/16/2024		2		—		Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	98	3/18/2024		2		—		Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	10,746	3/18/2024		200		—		Unrealized gain on foreign currency forward contracts
Total				$	310	$	(89	)
													$	373	$	(8	)

	As of December 31, 2020									As of December 31, 2021
	Notional Amount to be Sold		Settlement Date	Gross Amount of Unrealized Gain		Gross Amount of Unrealized Loss			Balance Sheet location of Net Amounts
Description										Notional Amount to be Sold		Settlement Date	Gross Amount of Unrealized Gain		Gross Amount of Unrealized Loss				Balance Sheet location of Net Amounts
Foreign currency forward contract	£	87	1/4/2021	$	—	$	(12	)	Unrealized loss on foreign currency forward contracts	£	82	1/3/2022	$	—	$	(10	)		Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	£	206	3/3/2021		—		(18	)	Unrealized loss on foreign currency forward contracts	£	79	4/4/2022		—		(10	)		Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	£	26	3/3/2021		—		(2	)	Unrealized loss on foreign currency forward contracts	£	29	5/6/2022		—		(3	)		Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	£	84	4/2/2021		—		(12	)	Unrealized loss on foreign currency forward contracts	AUD	156	1/19/2022		8		—			Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	£	212	6/1/2021		—		(19	)	Unrealized loss on foreign currency forward contracts	AUD	136	2/16/2022		7		—			Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	£	26	6/1/2021		—		(2	)	Unrealized loss on foreign currency forward contracts	AUD	132	3/16/2022		6		—			Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	£	83	7/2/2021		—		(11	)	Unrealized loss on foreign currency forward contracts	AUD	146	4/19/2022		7		—			Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	£	83	10/4/2021		—		(11	)	Unrealized loss on foreign currency forward contracts	AUD	138	5/17/2022		7		—			Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	£	82	1/3/2022		—		(11	)	Unrealized loss on foreign currency forward contracts	AUD	153	6/17/2022		7		—			Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	£	79	4/4/2022		—		(11	)	Unrealized loss on foreign currency forward contracts	AUD	138	7/18/2022		7		—			Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	£	29	5/6/2022		—		(4	)	Unrealized loss on foreign currency forward contracts	AUD	140	8/16/2022		7		—		��	Unrealized gain on foreign currency forward contracts
Total				$	—	$	(113	)
Foreign currency forward contract										AUD	153	9/16/2022		7		—			Unrealized gain on foreign currency forward contracts
Foreign currency forward contract										AUD	152	10/19/2022		7		—			Unrealized gain on foreign currency forward contracts
Foreign currency forward contract										AUD	136	11/16/2022		6		—			Unrealized gain on foreign currency forward contracts
Foreign currency forward contract										AUD	142	12/16/2022		7		—			Unrealized gain on foreign currency forward contracts
Foreign currency forward contract										AUD	153	1/18/2023		7		—			Unrealized gain on foreign currency forward contracts
Foreign currency forward contract										AUD	140	2/16/2023		6		—			Unrealized gain on foreign currency forward contracts
Foreign currency forward contract										AUD	132	3/16/2023		6		—			Unrealized gain on foreign currency forward contracts
Foreign currency forward contract										AUD	160	4/20/2023		7		—			Unrealized gain on foreign currency forward contracts
Foreign currency forward contract										AUD	121	5/16/2023		5		—			Unrealized gain on foreign currency forward contracts
Foreign currency forward contract										AUD	156	6/19/2023		7		—			Unrealized gain on foreign currency forward contracts
Foreign currency forward contract										AUD	138	7/18/2023		6		—			Unrealized gain on foreign currency forward contracts
Foreign currency forward contract										AUD	146	8/16/2023		6		—			Unrealized gain on foreign currency forward contracts
Foreign currency forward contract										AUD	146	9/18/2023		6		—			Unrealized gain on foreign currency forward contracts
Foreign currency forward contract										AUD	148	10/18/2023		6		—			Unrealized gain on foreign currency forward contracts
Foreign currency forward contract										AUD	140	11/16/2023		6		—			Unrealized gain on foreign currency forward contracts
Foreign currency forward contract										AUD	142	12/18/2023		6		—			Unrealized gain on foreign currency forward contracts
Foreign currency forward contract										AUD	150	1/17/2024		6		—			Unrealized gain on foreign currency forward contracts
Foreign currency forward contract										AUD	143	2/16/2024		6		—			Unrealized gain on foreign currency forward contracts
Foreign currency forward contract										AUD	15,410	3/18/2024		635		—			Unrealized gain on foreign currency forward contracts
													$	804	$	(23	)

For the three months ended March 31, ~~2021~~2022 and ~~2020,~~2021, the Company recognized net change in unrealized gain (loss) on foreign currency forward contracts of ~~$334~~($416) and ~~$98,~~$334, respectively. For the three months ended March 31, ~~2021~~2022 and ~~2020,~~2021, the Company recognized net realized gain (loss) on foreign currency forward contracts of ~~($38)~~$12 and ($4)38), respectively.

Note 9. Distributions

The Company’s distributions are recorded on the record date. The following table summarizes distributions declared during the three months ended March 31, ~~2021~~2022 and ~~2020:~~2021:

Date Declared	Record Date	Payment Date	Amount Per Share		Cash Distribution		DRIP Shares Issued		DRIP Shares Value		DRIP Shares Repurchased in the Open Market		Cost of DRIP Shares Repurchased		Record Date	Payment Date	Amount Per Share		Cash Distribution		DRIP Shares Issued		DRIP Shares Value		DRIP Shares Repurchased in the Open Market		Cost of DRIP Shares Repurchased
Three months ended March 31, 2022:
March 2, 2022															March 16, 2022	March 31, 2022	$	0.25	$	5,417		—	$	—		25,229	$	276
Total distributions declared																	$	0.25	$	5,417		—	$	—		25,229	$	276

Three months ended March 31, 2021:
March 2, 2021	March 16, 2021	March 31, 2021	$	0.25	$	5,326		—	$	—		35,611	$	364	March 16, 2021	March 31, 2021	$	0.25	$	5,326		—	$	—		35,611	$	364
Total distributions declared			$	0.25	$	5,326		—	$	—		35,611	$	364			$	0.25	$	5,326		—	$	—		35,611	$	364

Three months ended March 31, 2020:
March 3, 2020	March 16, 2020	March 31, 2020	$	0.35	$	7,155		—	$	—		55,938	$	374
Total distributions declared			$	0.35	$	7,155		—	$	—		55,938	$	374

Note 10. Stock Issuances and Repurchases

Stock Issuances: On May 12, 2017, the Company entered into at-the-market (“ATM”) equity distribution agreements with each of JMP Securities LLC (“JMP”) and FBR Capital Markets & Co. (“FBR”) (the “ATM Program”) through which the Company could sell, by means of ATM offerings, from time to time, up to $50,000 of the Company’s common stock. On May 8, 2020, the Company entered into an amendment to the ATM Program to extend its term. All other material terms of the ATM Program remain unchanged. There were no stock issuances through the ATM Program during the three months ended March 31, ~~2021~~2022 and ~~2020.~~2021.

Note 11. Commitments and Contingencies

Commitments: As of March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, the Company had ~~$50,135~~$54,366 and ~~$52,252,~~$55,483, respectively, in outstanding commitments to fund investments under undrawn revolvers, capital expenditure loans, delayed draw commitments and subscription agreements (excluding SLF). As described in Note 3, the Company had unfunded commitments of $7,850 to SLF as of both March 31, ~~2021~~2022 and December 31, ~~2020~~2021 that may be contributed primarily for the purpose of funding new investments approved by the SLF investment committee. Drawdowns of the commitments to SLF require authorization from one of the Company’s representatives on SLF’s board of managers. Management believes that the Company’s available cash balances and/or ability to draw on the revolving credit facility provide sufficient funds to cover its unfunded commitments as of March 31, ~~2021.~~2022.

Indemnifications:In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties that provide general indemnifications. The Company’s maximum exposure under these agreements is unknown, as these involve future claims that may be made against the Company but that have not occurred. The Company expects the risk of any future obligations under these indemnifications to be remote.

Concentration of credit and counterparty risk: Credit risk arises primarily from the potential inability of counterparties to perform in accordance with the terms of the contract. In the event that the counterparties do not fulfill their obligations, the Company may be exposed to risk. The risk of default depends on the creditworthiness of the counterparties or issuers of the instruments. It is the Company’s policy to review, as necessary, the credit standing of each counterparty.

Market risk: The Company’s investments and borrowings are subject to market risk. Market risk is the potential for changes in the value due to market changes. Market risk is directly impacted by the volatility and liquidity in the markets in which the investments and borrowings are traded.

Legal proceedings: In the normal course of business, the Company may be subject to legal and regulatory proceedings that are generally incidental to its ongoing operations. While there can be no assurance of the ultimate disposition of any such proceedings, the Company is not currently aware of any such proceedings or disposition that would have a material adverse effect on the Company’s consolidated financial statements.

Note 12. Financial Highlights

The following is a schedule of financial highlights for the three months ended March 31, ~~2021~~2022 and ~~2020:~~2021:

	March 31, 2021			March 31, 2020			March 31, 2022			March 31, 2021
Per share data:
Net asset value at beginning of period	$	11.00		$	12.20		$	11.51		$	11.00
Net investment income ⁽¹⁾		0.25			0.33			0.25			0.25
Net gain (loss) ⁽¹⁾		0.08			(2.14	)		(0.21	)		0.08
Net increase (decrease) in net assets resulting from operations ⁽¹⁾		0.33			(1.81	)		0.04			0.33
Stockholder distributions - income ⁽²⁾		(0.25	)		(0.35	)		(0.25	)		(0.25	)
Net asset value at end of period	$	11.08		$	10.04		$	11.30		$	11.08
Net assets at end of period	$	236,163		$	205,352		$	244,901		$	236,163
Shares outstanding at end of period		21,303,540			20,444,564			21,666,340			21,303,540
Per share market value at end of period	$	10.04		$	7.10		$	10.79		$	10.04
Total return based on market value ⁽³⁾		28.09	%		(31.20	)%		(1.64	)%		28.09	%
Total return based on average net asset value ⁽⁴⁾		3.00	%		(16.21	)%		0.34	%		3.00	%
Ratio/Supplemental data:
Ratio of net investment income to average net assets ⁽⁵⁾		9.43	%		12.00	%		8.79	%		9.43	%
Ratio of total expenses, net of incentive fee waiver, to average net assets ^{(5) (6)}		13.34	%		14.54	%
Ratio of total expenses, net of base management fee and incentive fee waivers, to average net assets ^{(5) (6)}								11.71	%		13.34	%
Portfolio turnover ⁽⁷⁾		8.19	%		8.76	%		3.89	%		8.19	%

⁽¹⁾	Calculated using the weighted average shares outstanding during the periods presented.
⁽²⁾	Management monitors available taxable earnings, including net investment income and realized capital gains, to determine if a tax return of capital may occur for the year. To the extent the Company’s taxable earnings fall below the total amount of the Company’s distributions for that fiscal year, a portion of those distributions may be deemed a tax return of capital to the Company’s stockholders. The tax character of distributions will be determined at the end of the fiscal year. However, if the character of such distributions were determined as of March 31, ~~2021~~2022 and ~~2020,~~2021, none of the distributions would have been characterized as a tax return of capital to the Company’s stockholders; this tax return of capital may differ from the return of capital calculated with reference to net investment income for financial reporting purposes.
⁽³⁾	Total return based on market value is calculated assuming a purchase of common shares at the market value on the first day and a sale at the market value on the last day of the periods reported. Distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Company’s DRIP. Total return based on market value does not reflect brokerage commissions. Return calculations are not annualized.

⁽⁴⁾	Total return based on average net asset value is calculated by dividing the net increase (decrease) in net assets resulting from operations by the average net asset value. Return calculations are not annualized.
⁽⁵⁾	Ratios are annualized. Incentive fees included within the ratio are not annualized.
⁽⁶⁾	The following is a schedule of supplemental ratios for the three months ended March 31, ~~2021~~2022 and ~~2020.~~2021. These ratios have been annualized unless otherwise noted.

	March 31, 2021			March 31, 2020			March 31, 2022			March 31, 2021
Ratio of total investment income to average net assets		22.77	%		26.54	%		20.49	%		22.77	%
Ratio of interest and other debt financing expenses to average net assets		7.68	%		8.54	%		6.43	%		7.68	%
Ratio of total expenses (without incentive fees) to average net assets		13.26	%		14.54	%
Ratio of incentive fees, net of incentive fee waiver, to average net assets ^{(7) (8)}		0.08	%		0.00	%
Ratio of total expenses (without base management fee waivers and incentive fees) to average net assets								11.73	%		13.26	%
Ratio of incentive fees, net of incentive fee waivers, to average net assets ^{(7) (8)}								—	%		0.08	%

⁽⁷⁾	Ratios are not annualized.
⁽⁸⁾	The ratio of waived incentive fees to average net assets was 0.17% and 0.27% ~~and zero~~ for the three months ended March 31, ~~2021~~2022 and ~~2020,~~2021, respectively.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Except as otherwise specified, references to “we,” “us” and “our” refer to Monroe Capital Corporation and its consolidated subsidiaries; MC Advisors refers to Monroe Capital BDC Advisors, LLC, our investment adviser and a Delaware limited liability company; MC Management refers to Monroe Capital Management Advisors, LLC, our administrator and a Delaware limited liability company; Monroe Capital refers to Monroe Capital LLC, a Delaware limited liability company, and its subsidiaries and affiliates; and SLF refers to MRCC Senior Loan Fund I, LLC, an unconsolidated Delaware limited liability company, in which we co-invest with Life Insurance Company of the Southwest (“LSW”) primarily in senior secured loans. The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and related notes appearing in our annual report on Form 10-K (the “Annual Report”) for the year ended December 31, ~~2020,~~2021, filed with the U.S. Securities and Exchange Commission (“SEC”) on March 2, ~~2021.~~2022. The information contained in this section should also be read in conjunction with our unaudited consolidated financial statements and related notes and other financial information appearing elsewhere in this quarterly report on Form 10-Q (the “Quarterly Report”).

FORWARD-LOOKING STATEMENTS

This Quarterly Report, including Management’s Discussion and Analysis of Financial Condition and Results of Operations, contains statements that constitute forward-looking statements, which relate to future events or our future performance or future financial condition. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about our company, our industry, our beliefs and our assumptions. The forward-looking statements contained in this Quarterly Report involve risks and uncertainties, including statements as to:

our future operating results;

our business prospects and the prospects of our portfolio companies;

the dependence of our future success on the general economy and its impact on the industries in which we invest;

	•	the impact of global health epidemics, such as the current novel coronavirus (“COVID-19”) pandemic, on our or our portfolio companies’ business and the global economy;

	•	the impact of the Russian invasion of Ukraine on our portfolio companies and the global economy;

	•	the impact of a protracted decline in the liquidity of credit markets on our business;

	•	the impact of changes in London Interbank Offered Rate (“LIBOR”) on our operating results;

the impact of increased competition;

the impact of fluctuations in interest rates on our business and our portfolio companies;

our contractual arrangements and relationships with third parties;

the valuation of our investments in portfolio companies, particularly those having no liquid trading market;

actual and potential conflicts of interest with MC Advisors, MC Management and other affiliates of Monroe Capital;

the ability of our portfolio companies to achieve their objectives;

the use of borrowed money to finance a portion of our investments;

the adequacy of our financing sources and working capital;

the timing of cash flows, if any, from the operations of our portfolio companies;

the ability of MC Advisors to locate suitable investments for us and to monitor and administer our investments;

the ability of MC Advisors or its affiliates to attract and retain highly talented professionals;

our ability to qualify and maintain our qualification as a regulated investment company and as a business development company; and

the impact of future legislation and regulation on our business and our portfolio companies.

We use words such as “anticipates,” “believes,” “expects,” “intends,” “seeks,” “plans,” “estimates,” “targets” and similar expressions to identify forward-looking statements. The forward-looking statements contained in this Quarterly Report involve risks and uncertainties. Our actual results could differ materially from those implied or expressed in the forward-looking statements for any reason, including the factors set forth in “Part I-Item 1A. Risk Factors” in our Annual Report and “Part II-Item 1A. Risk Factors” in this Quarterly Report.

Although we believe that the assumptions on which these forward-looking statements are based are reasonable, any of those assumptions could prove to be inaccurate, and as a result, the forward-looking statements based on those assumptions also could be inaccurate. Important assumptions include our ability to originate new loans and investments, certain margins and levels of profitability and the availability of additional capital. In light of these and other uncertainties, the inclusion of a projection or forward-looking statements in this Quarterly Report should not be regarded as a representation by us that our plans and objectives will be achieved.

We have based the forward-looking statements included in this Quarterly Report on information available to us on the date of this Quarterly Report, and we assume no obligation to update any such forward-looking statements. Although we undertake no obligation to revise or update any forward-looking statements in this Quarterly Report, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that we may make directly to you or through reports that we may file in the future with the SEC, including Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

Overview

Monroe Capital Corporation is an externally managed, closed-end, non-diversified management investment company that has elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). In addition, for U.S. federal income tax purposes, we have elected to be treated as a regulated investment company (“RIC”) under the subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). We are a specialty finance company focused on providing financing solutions primarily to lower middle-market companies in the United States and Canada. We provide customized financing solutions focused primarily on senior secured, junior secured and unitranche secured (a combination of senior secured and junior secured debt in the same facility in which we syndicate a “first out” portion of the loan to an investor and retain a “last out” portion of the loan) debt and, to a lesser extent, unsecured subordinated debt and equity, including equity co-investments in preferred and common stock, and warrants.

Our shares are currently listed on the NASDAQ Global Select Market under the symbol “MRCC”.

Our investment objective is to maximize the total return to our stockholders in the form of current income and capital appreciation through investment in senior secured, unitranche secured and junior secured debt and, to a lesser extent, unsecured subordinated debt and equity investments. We seek to use our extensive leveraged finance origination infrastructure and broad expertise in sourcing loans to invest in primarily senior secured, unitranche secured and junior secured debt of middle-market companies. Our investments will generally range between $2.0 million and $25.0 million each, although this investment size may vary proportionately with the size of our capital base. As of March 31, ~~2021,~~2022, our portfolio included approximately ~~75.2%~~76.7% senior secured loans, ~~9.3%~~6.4% unitranche secured loans, ~~2.3%~~3.6% junior secured loans and ~~13.2%~~13.3% equity securities, compared to December 31, ~~2020,~~2021, when our portfolio included approximately ~~74.1%~~75.4% senior secured loans, ~~11.7%~~9.2% unitranche secured loans, 2.6% junior secured loans and ~~11.6%~~12.8% equity securities. We expect that the companies in which we invest may be leveraged, often as a result of leveraged buy-outs or other recapitalization transactions, and, in certain cases, will not be rated by national ratings agencies. If such companies were rated, we believe that they would typically receive a rating below investment grade (between BB and CCC under the Standard & Poor’s system) from the national rating agencies.

While our primary focus is to maximize current income and capital appreciation through debt investments in thinly traded or private U.S. companies, we may invest a portion of the portfolio in opportunistic investments in order to seek to enhance returns to stockholders. Such investments may include investments in real estate, specialty finance, litigation finance, fund finance, high-yield bonds, distressed debt, private equity or securities of public companies that are not thinly traded and securities of middle-market companies located outside of the United States. We expect that these public companies generally will have debt securities that are non-investment grade.

On February 28, 2014, our wholly-owned subsidiary, Monroe Capital Corporation SBIC, LP (“MRCC SBIC”), a Delaware limited partnership, received a license from the Small Business Administration (“SBA”) to operate as a Small Business Investment Company (“SBIC”) under Section 301(c) of the Small Business Investment Act of 1958. MRCC SBIC commenced operations on September 16, 2013. MRCC SBIC received approval from the SBA to surrender its SBIC license and on March 31, 2022, MRCC SBIC was dissolved. See “SBA Debentures” below for more information.

Investment income

We generate interest income on the debt investments in portfolio company investments that we originate or acquire. Our debt investments, whether in the form of senior secured, unitranche secured or junior secured debt, typically have an initial term of three to seven years and bear interest at a fixed or floating rate. In some instances, we receive payments on our debt investments based on scheduled amortization of the outstanding balances. In addition, we receive repayments of some of our debt investments prior to their scheduled maturity date. In some cases, our investments provide for deferred interest of payment-in-kind (“PIK”) interest. In addition, we may generate revenue in the form of commitment, origination, amendment, structuring or due diligence fees, fees for providing managerial assistance and consulting fees. Loan origination fees, original issue discount and market discount or premium are capitalized, and we accrete or amortize such amounts as interest income. We record prepayment premiums and prepayment gains (losses) on loans as interest income. As the frequency or volume of the repayments which trigger these prepayment premiums and prepayment gains (losses) may fluctuate significantly from period to period, the associated interest income recorded may also fluctuate significantly from period to period. Interest and fee income are recorded on the accrual basis to the extent we expect to collect such amounts. Interest income is accrued based upon the outstanding principal amount and contractual terms of debt and preferred equity investments. Interest is accrued on a daily basis. We record fees on loans based on the determination of whether the fee is considered a yield enhancement or payment for a service. If the fee is considered a yield enhancement associated with a funding of cash on a loan, the fee is generally deferred and recognized into interest income using the effective interest method if captured in the cost basis or using the straight-line method if the loan is unfunded and therefore there is no cost basis. If the fee is not considered a yield enhancement because a service was provided, and the fee is payment for that service, the fee is deemed earned and recognized as fee income in the period the service has been completed.

Dividend income on preferred equity securities is recorded as dividend income on an accrual basis to the extent that such amounts are payable by the portfolio company and are expected to be collected. Dividend income on common equity securities is recorded on the record date for private portfolio companies. Each distribution received from limited liability company (“LLC”) and limited partnership (“LP”) investments is evaluated to determine if the distribution should be recorded as dividend income or a return of capital. Generally, we will not record distributions from equity investments in LLCs and LPs as dividend income unless there are sufficient accumulated tax-basis earnings and profits in the LLC or LP prior to the distribution. Distributions that are classified as a return of capital are recorded as a reduction in the cost basis of the investment. The frequency and volume of the distributions on common equity securities and LLC and LP investments may fluctuate significantly from period to period.

Expenses

Our primary operating expenses include the payment of base management and incentive fees to MC Advisors, under the investment advisory and management agreement (the “Investment Advisory Agreement”), the payment of fees to MC Management for our allocable portion of overhead and other expenses under the administration agreement (the “Administration Agreement”) and other operating costs. See Note 6 to our consolidated financial statements and “Related Party Transactions” below for additional information on our Investment Advisory Agreement and Administration Agreement. Our expenses also include interest expense on our various forms of indebtedness. We bear all other out-of-pocket costs and expenses of our operations and transactions.

Net gain (loss)

We recognize realized gains or losses on investments, foreign currency forward contracts and foreign currency and other transactions based on the difference between the net proceeds from the disposition and the cost basis ~~of the investment~~ without regard to unrealized gains or losses previously ~~recognized.~~recognized within net realized gain (loss) on the consolidated statements of operations. We record current period changes in fair value of investments, foreign currency forward contracts, foreign currency and other transactions within net change in unrealized gain (loss) on the consolidated statements of operations.

Portfolio and Investment Activity

During the three months ended March 31, 2022, we invested $5.6 million in three new portfolio companies and $16.0 million in 21 existing portfolio companies and had $36.2 million in aggregate amount of sales and principal repayments, resulting in net sales and repayments of $14.6 million for the period.

During the three months ended March 31, 2021, we invested $21.5 million in five new portfolio companies and $22.2 million in 17 existing portfolio companies and had $75.8 million in aggregate amount of sales and principal repayments, resulting in net sales and repayments of $32.1 million for the period.

During the three months ended March 31, 2020, we invested $41.3 million in six new portfolio companies and $29.8 million in 34 existing portfolio companies and had $52.8 million in aggregate amount of sales and principal repayments, resulting in net investments of $18.3 million for the period.

The following table shows portfolio yield by security ~~type:~~type:

	March 31, 2021						December 31, 2020						March 31, 2022						December 31, 2021
	Weighted Average Annualized Contractual Coupon Yield ⁽¹⁾			Weighted Average Annualized Effective Yield ⁽²⁾			Weighted Average Annualized Contractual Coupon Yield ⁽¹⁾			Weighted Average Annualized Effective Yield ⁽²⁾			Weighted Average Annualized Contractual Coupon Yield ⁽¹⁾			Weighted Average Annualized Effective Yield ⁽²⁾			Weighted Average Annualized Contractual Coupon Yield ⁽¹⁾			Weighted Average Annualized Effective Yield ⁽²⁾
Senior secured loans		8.3	%		8.3	%		8.1	%		8.1	%		8.6	%		8.6	%		8.5	%		8.5	%
Unitranche secured loans		5.1			5.4			6.3			6.5			4.1			4.4			5.1			5.4
Junior secured loans		8.7			8.7			7.6			7.6			10.0			10.0			10.1			10.1
Preferred equity securities		1.4			1.4			1.4			1.4			2.7			2.7			3.0			3.0
Total		7.7	%		7.7	%		7.7	%		7.7	%		7.9	%		8.0	%		7.9	%		8.0	%

⁽¹⁾

The weighted average annualized contractual coupon yield at period end is computed by dividing (a) the interest income on our debt investments and preferred equity investments (with a stated coupon rate) at the period end contractual coupon rate for each investment by (b) the par value of our debt investments (excluding debt investments acquired for no cost in a restructuring on non-accrual status) and the cost basis of our preferred equity investments. We exclude loans acquired for no cost in a restructuring on non-accrual status within this metric as management believes this disclosure provides a better indication of return on invested capital. This exclusion impacts only the junior secured loans and total disclosed above. The weighted average contractual coupon yield including debt investments acquired for no cost in a restructuring on non-accrual status was ~~4.2%~~9.2% for junior secured loans and ~~7.5%~~7.9% in total as of March 31, ~~2021.~~2022. The weighted average contractual coupon yield including debt investments acquired for no cost in a restructuring on non-accrual status was ~~4.1%~~9.0% for junior secured loans and ~~7.5%~~7.9% in total as of December 31, ~~2020.~~2021.

⁽²⁾

The weighted average annualized effective yield on portfolio investments at period end is computed by dividing (a) interest income on our debt investments and preferred equity investments (with a stated coupon rate) at the period end effective rate for each investment by (b) the par value of our debt investments (excluding debt investments acquired for no cost in a restructuring on non-accrual status) and the cost basis of our preferred equity investments. We exclude loans acquired for no cost in a restructuring on non-accrual status within this metric as management believes this disclosure provides a better indication of return on invested capital. This exclusion impacts only the junior secured loans and total disclosed above. The weighted average effective yield including debt investments acquired for no cost in a restructuring on non-accrual status was ~~4.2%~~9.2% for junior secured loans and ~~7.5%~~7.9% in total as of March 31, ~~2021.~~2022. The weighted average effective yield including debt investments acquired for no cost in a restructuring on non-accrual status was ~~4.1%~~9.0% for junior secured loans and ~~7.5%~~7.9% in total as of December 31, ~~2020.~~2021. The weighted average annualized effective yield on portfolio investments is a metric on the investment portfolio alone and does not represent a return to stockholders. This metric is not inclusive of our fees and expenses, the impact of leverage on the portfolio or sales load that may be paid by stockholders.

The following table shows the composition of our investment portfolio (in thousands):

	March 31, 2021				December 31, 2020				March 31, 2022				December 31, 2021
Fair Value:
Senior secured loans	$	392,399	75.2	%	$	405,224	74.1	%	$	418,798	76.7	%	$	423,700	75.4	%
Unitranche secured loans		48,298	9.3			64,040	11.7			34,785	6.4			51,494	9.2
Junior secured loans		11,999	2.3			14,592	2.6			19,521	3.6			14,364	2.6
LLC equity interest in SLF		41,067	7.9			39,284	7.2			40,210	7.3			41,125	7.3
Equity securities		27,616	5.3			23,899	4.4			32,675	6.0			31,010	5.5
Total	$	521,379	100.0	%	$	547,039	100.0	%	$	545,989	100.0	%	$	561,693	100.0	%

Our portfolio composition and contractual and effective yields remained relatively consistent with December 31, ~~2020.~~2021.

The following table shows our portfolio composition by industry (in thousands):

	March 31, 2021				December 31, 2020				March 31, 2022				December 31, 2021
Fair Value:
Aerospace & Defense									$	7,968	1.5	%	$	7,972	1.4	%
Automotive	$	9,603	1.9	%	$	9,637	1.8	%		20,150	3.7			21,556	3.8
Banking, Finance, Insurance & Real Estate		77,959	15.0			72,627	13.3
Banking										13,196	2.4			6,712	1.2
Beverage, Food & Tobacco		21,767	4.2			20,676	3.8			15,240	2.8			19,133	3.4
Capital Equipment		13,890	2.7			13,750	2.5			13,431	2.5			12,839	2.3
Chemicals, Plastics & Rubber		28,879	5.5			27,754	5.1			4,521	0.8			10,163	1.8
Construction & Building		16,855	3.2			16,809	3.0			17,113	3.1			16,636	3.0
Consumer Goods: Durable		475	0.1			18,893	3.4			9,893	1.8			9,734	1.7
Consumer Goods: Non-Durable		9,061	1.7			13,027	2.4			5,818	1.1			8,460	1.5
Containers, Packaging & Glass		—	—			4,997	0.9
Environmental Industries		13,218	2.5			13,168	2.4			10,779	2.0			17,693	3.2
FIRE: Finance										16,316	3.0			15,681	2.8
FIRE: Real Estate										76,656	14.0			76,698	13.6
Healthcare & Pharmaceuticals		42,179	8.1			37,815	6.9			56,383	10.3			53,179	9.5
High Tech Industries		84,886	16.3			81,417	14.9			45,316	8.3			54,085	9.6
Hotels, Gaming & Leisure		2,651	0.5			1,771	0.3			2,685	0.5			2,706	0.5
Investment Funds & Vehicles		41,067	7.9			39,284	7.2			40,210	7.4			41,125	7.3
Media: Advertising, Printing & Publishing		31,623	6.1			31,553	5.8			17,008	3.1			16,794	3.0
Media: Broadcasting & Subscription		2,335	0.4			2,227	0.4			2,529	0.5			2,477	0.5
Media: Diversified & Production		6,889	1.3			6,811	1.2			27,979	5.1			24,220	4.3
Retail		19,404	3.7			18,443	3.4			11,823	2.2			11,478	2.0
Services: Business		62,071	11.9			78,584	14.4			67,282	12.3			71,540	12.7
Services: Consumer		21,363	4.1			25,306	4.6			41,493	7.6			39,248	7.0
Telecommunications		1,102	0.2			1,100	0.2			7,198	1.3			5,988	1.1
Wholesale		14,102	2.7			11,390	2.1			15,002	2.7			15,576	2.8
Total	$	521,379	100.0	%	$	547,039	100.0	%	$	545,989	100.0	%	$	561,693	100.0	%

Portfolio Asset Quality

MC Advisors’ portfolio management staff closely monitors all credits, with senior portfolio managers covering agented and more complex investments. MC Advisors segregates our capital markets investments by industry. The MC Advisors’ monitoring process and projections developed by Monroe Capital both have daily, weekly, monthly and quarterly components and related reports, each to evaluate performance against historical, budget and underwriting expectations. MC Advisors’ analysts will monitor performance using standard industry software tools to provide consistent disclosure of performance. When necessary, MC Advisors will update our internal risk ratings, borrowing base criteria and covenant compliance reports.

As part of the monitoring process, MC Advisors regularly assesses the risk profile of each of our investments and rates each of them based on an internal proprietary system that uses the categories listed below, which we refer to as MC Advisors’ investment performance risk rating. For any investment rated in grades 3, 4 or 5, MC Advisors, through its internal Portfolio Management Group (“PMG”), will increase its monitoring intensity and prepare regular updates for the investment committee, summarizing current operating results and material impending events and suggesting recommended actions. The PMG is responsible for oversight and management of any investments rated in grades 3, 4, or 5. MC Advisors monitors and, when appropriate, changes the investment ratings assigned to each investment in our portfolio. In connection with our valuation process, MC Advisors reviews these investment performance risk ratings on a quarterly basis. The investment performance rating system is described as follows:

Investment Performance Risk Rating		Summary Description
Grade 1		Includes investments exhibiting the least amount of risk in our portfolio. The issuer is performing above expectations or the issuer’s operating trends and risk factors are generally positive.

Grade 2		Includes investments exhibiting an acceptable level of risk that is similar to the risk at the time of origination. The issuer is generally performing as expected or the risk factors are neutral to positive.

Grade 3		Includes investments performing below expectations and indicates that the investment’s risk has increased somewhat since origination. The issuer may be out of compliance with debt covenants; however, scheduled loan payments are generally not past due.

Grade 4		Includes an issuer performing materially below expectations and indicates that the issuer’s risk has increased materially since origination. In addition to the issuer being generally out of compliance with debt covenants, scheduled loan payments may be past due (but generally not more than six months past due).

Grade 5		Indicates that the issuer is performing substantially below expectations and the investment risk has substantially increased since origination. Most or all of the debt covenants are out of compliance or payments are substantially delinquent. Investments graded 5 are not anticipated to be repaid in full.

Our investment performance risk ratings do not constitute any rating of investments by a nationally recognized statistical rating organization or reflect or represent any third-party assessment of any of our investments.

In the event of a delinquency or a decision to rate an investment grade 4 or grade 5, the PMG, in consultation with the investment committee, will develop an action plan. Such a plan may require a meeting with the borrower’s management or the lender group to discuss reasons for the default and the steps management is undertaking to address the under-performance, as well as amendments and waivers that may be required. In the event of a dramatic deterioration of a credit, MC Advisors and the PMG will form a team or engage outside advisors to analyze, evaluate and take further steps to preserve our value in the credit. In this regard, we would expect to explore all options, including in a private equity sponsored investment, assuming certain responsibilities for the private equity sponsor or a formal sale of the business with oversight of the sale process by us. The PMG and the investment committee have extensive experience in running debt work-out transactions and bankruptcies.

The following table shows the distribution of our investments on the 1 to 5 investment performance risk rating scale as of March 31, ~~2021~~2022 (in thousands):

Investment Performance Risk Rating	Investments at Fair Value		Percentage of Total Investments			Investments at Fair Value		Percentage of Total Investments
1	$	1,592		0.3	%	$	1,798		0.3	%
2		408,562		78.4			451,845		82.8
3		78,708		15.1			76,357		14.0
4		28,600		5.5			15,469		2.8
5		3,917		0.7			520		0.1
Total	$	521,379		100.0	%	$	545,989		100.0	%

The following table shows the distribution of our investments on the 1 to 5 investment performance risk rating scale as of December 31, ~~2020~~2021 (in thousands):

Investment Performance Risk Rating	Investments at Fair Value		Percentage of Total Investments			Investments at Fair Value		Percentage of Total Investments
1	$	1,592		0.3	%	$	1,759		0.3	%
2		428,554		78.4			465,224		82.9
3		92,001		16.8			75,942		13.5
4		19,844		3.6			18,136		3.2
5		5,048		0.9			632		0.1
Total	$	547,039		100.0	%	$	561,693		100.0	%

As of both March 31, 2022 and December 31, 2021, we had 12six borrowers with loans or preferred equity securities on non-accrual status (BLST Operating Company, LLC, ~~(“BLST”), California Pizza Kitchen, Inc. (“CPK”),~~ Curion Holdings, LLC, ~~(“Curion”),~~ Education Corporation of America, ~~(“ECA”), Incipio, LLC (“Incipio”), Luxury Optical Holdings Co. (“LOH”),~~ NECB Collections, LLC, ~~(“NECB”), Parterre Flooring & Surface Systems, LLC (“Parterre”), SHI Holdings, Inc. (“SHI”), The Worth Collection, Ltd. (“Worth”),~~ Toojay’s Management, LLC ~~(“Toojay’s OldCo”)~~ and ~~Valudor Products, LLC (“Valudor”) preferred equity)~~Vinci Brands LLC), and these investments totaled ~~$27.3~~$12.2 million inof fair value, or ~~5.2%~~2.2% of our total investments at fair ~~value. As~~value at March 31, 2022 and $14.7 million of December 31, 2020, we had 12 borrowers with loans or preferred equity securities on non-accrual status (BLST, CPK, Curion, ECA, Incipio last out term loan and third lien tranches, LOH, NECB, Parterre, SHI, Worth, Toojay’s OldCo and Valudor preferred equity), and these investments totaled $22.3 million in fair value, or ~~4.1%~~2.6% of our total investments at fair ~~value. The Curion promissory notes and the Incipio third lien tranches were obtained in restructurings for no cost.~~value at December 31, 2021. Loans or preferred equity securities are placed on non-accrual status when principal, interest or dividend payments become materially past due, or when there is reasonable doubt that principal, interest or dividends will be collected. Non-accrual loans are restored to accrual status when past due principal, interest, or dividends are paid, or are expected to be paid, and, in management’s judgment are likely to remain current.

Results of Operations

Operating results were as follows (in thousands):

	Three months ended March 31,						Three months ended March 31,
	2021			2020			2022			2021
Total investment income	$	13,213		$	15,002		$	12,491		$	13,213
Total expenses, net of incentive fee waiver		7,857			8,200
Total expenses, net of base management fee and incentive fee waivers								7,074			7,857
Net investment income before income taxes		5,356			6,802			5,417			5,356
Income taxes, including excise taxes		30			20			19			30
Net investment income		5,326			6,782			5,398			5,326
Net realized gain (loss) on investments		(192	)		94			(103	)		(192	)
Net realized gain (loss) on extinguishment of debt		(2,774	)		-			(1,039	)		(2,774	)
Net realized gain (loss) on foreign currency forward contracts		(38	)		(4	)		12			(38	)
Net realized gain (loss) on foreign currency and other transactions		(14	)		(15	)		(9	)		(14	)
Net realized gain (loss)		(3,018	)		75			(1,139	)		(3,018	)
Net change in unrealized gain (loss) on investments		4,622			(45,149	)		(3,161	)		4,622
Net change in unrealized gain (loss) on foreign currency forward contracts		334			98			(416	)		334
Net change in unrealized gain (loss) on foreign currency and other transactions		(209	)		1,344			165			(209	)
Net change in unrealized gain (loss)		4,747			(43,707	)		(3,412	)		4,747
Net increase (decrease) in net assets resulting from operations	$	7,055		$	(36,850	)	$	847		$	7,055

Investment Income

The composition of our investment income was as follows (in thousands):

	Three months ended March 31,				Three months ended March 31,
	2021		2020		2022		2021
Interest income	$	8,961	$	11,979	$	9,085	$	8,961
PIK interest income		1,679		1,076		1,821		1,679
Dividend income ⁽¹⁾		1,262		1,191		1,009		1,262
Fee income		477		198		—		477
Prepayment gain (loss)		482		214		198		482
Accretion of discounts and amortization of premium		352		344		378		352
Total investment income	$	13,213	$	15,002	$	12,491	$	13,213

⁽¹⁾	Includes PIK dividends of ~~$62~~$108 and ~~$41,~~$62, respectively.

The decrease in investment income of ~~$1.8~~$0.7 million during the three months ended March 31, ~~2021~~2022, as compared to ~~the~~ three months ended March 31, ~~2020~~2021, is primarily the result of ~~a decrease in interest~~the lower fee income ~~due to a decrease in average outstanding loan balances~~ and ~~declines in the effective rate on the portfolio driven by decreases in LIBOR and the placement of additional investments on non-accrual status, partially offset by increases in~~ prepayment ~~gain and fee income.~~gain.

Operating Expenses

The composition of our operating expenses was as follows (in thousands):

	Three months ended March 31,				Three months ended March 31,
	2021		2020		2022		2021
Interest and other debt financing expenses	$	4,453	$	4,830	$	3,922	$	4,453
Base management fees		2,334		2,551
Incentive fees, net of incentive fee waiver⁽¹⁾		193		—
Base management fees, net of base management fee waivers ⁽¹⁾						2,288		2,334
Incentive fees, net of incentive fee waivers⁽²⁾						—		193
Professional fees		226		215		280		226
Administrative service fees		356		338		330		356
General and administrative expenses		260		231		219		260
Directors’ fees		35		35		35		35
Total expenses, net of incentive fee waiver	$	7,857	$	8,200
Total expenses, net of base management fee and incentive fee waivers					$	7,074	$	7,857

⁽¹⁾

Base management fees for the three months ended March 31, 2022 and 2021 were $2,343 and $2,334, respectively, and MC Advisors elected to voluntarily waive $55 and zero, respectively, of these base management fees.

⁽²⁾

During the three months ended March 31, ~~2021~~2022 and ~~2020,~~2021, MC Advisors waived part one incentive fees (based on net investment income) of ~~$637~~$408 and ~~zero,~~$637, respectively. Incentive fees during both the three months ended March 31, 2022 and 2021 ~~and 2020~~ were not limited by ~~zero and $1,356, respectively, due to~~ the Incentive Fee Limitation. See Note 6 in our attached consolidated financial statements for additional information on the Incentive Fee Limitation.

The composition of our interest and other debt financing expenses, average outstanding balances and average stated interest rates (i.e. the rate in effect plus spread) were as follows (in thousands):

	Three months ended March 31,						Three months ended March 31,
	2021			2020			2022			2021
Interest expense - revolving credit facility	$	1,005		$	1,798		$	1,474		$	1,005
Interest expense - 2023 Notes		837			1,567			—			837
Interest expense - 2026 Notes		1,132			—			1,555			1,132
Interest expense - SBA debentures		878			981			292			878
Amortization of deferred financing costs		601			484			601			601
Total interest and other debt financing expenses	$	4,453		$	4,830		$	3,922		$	4,453
Average debt outstanding	$	346,655		$	400,453		$	338,446		$	346,655
Average stated interest rate		4.5	%		4.4	%		3.9	%		4.5	%

The decrease in expenses of ~~$0.3~~$0.8 million during the three months ended March 31, ~~2021,~~2022, as compared to the three months ended March 31, ~~2020,~~2021, is primarily the result of a decrease in interest expense as a result of lower average debt outstanding and ~~base~~reductions in the average interest rates on our debt facilities and a decline in management fees ~~partially offset by an increase in~~and incentive fees, net of ~~waiver.~~fee waivers.

Income Taxes, Including Excise Taxes

We have elected to be treated as a RIC under Subchapter M of the Code and operate in a manner so as to qualify for the tax treatment available to RICs. To maintain qualification as a RIC, we must, among other things, meet certain source-of-income and asset diversification requirements and distribute to stockholders, for each taxable year, at least 90% of our “investment company taxable income,” which is generally our net ordinary income plus the excess, if any, of realized net short-term capital gains over realized net long-term capital losses.

Depending on the level of taxable income earned in a tax year, we may choose to carry forward such taxable income in excess of current year dividend distributions from such current year taxable income into the next year and pay a 4% excise tax on such income, as required. To the extent that we determine that our estimated current year annual taxable income may exceed estimated current year dividend distributions, we accrue excise tax, if any, on estimated excess taxable income as such taxable income is earned. For the three months ended March 31, ~~2021~~2022 and ~~2020,~~2021, we recorded a net expense on the consolidated statements of operations of ~~$30~~$19 thousand and ~~$20~~$30 thousand, respectively, for U.S. federal excise tax.

Certain of our consolidated subsidiaries are subject to U.S. federal and state corporate-level income taxes. For both the three months ended March 31, ~~2021~~2022 and ~~2020,~~2021, we recorded a net tax expense of zero on the consolidated statements of operations for these subsidiaries.

Net Realized Gain (Loss)

During the three months ended March 31, ~~2021~~2022 and ~~2020,~~2021, we had sales or dispositions of investments of ~~$8.5~~$5.8 million and ~~$13.1~~$8.5 million, respectively, resulting in ($~~192) thousand~~0.1) million and ~~$94 thousand~~($0.2) million of net realized gain (loss) on investments, respectively.

During the three months ended March 31, 2022, we recognized a net loss on extinguishment of debt of $1.0 million, which was due to the repayment of our remaining $56.9 million of SBA debentures on March 1, 2022 (primarily comprised of the unamortized deferred financing costs at the time of repayment). During the three months ended March 31, 2021, we recognized a net loss on the extinguishment of debt of $2.8 million, which was due to our $109.0 million repayment of the 2023 Notes ~~on February 18, 2021~~ and the repayment of $28.1 million of SBA debentures ~~on March 1, 2021.~~(primarily comprised of the unamortized deferred financing costs at the time of repayment).

We may enter into foreign currency forward contracts to reduce our exposure to foreign currency exchange rate fluctuations. During the three months ended March 31, ~~2021~~2022 and ~~2020,~~2021, we had ~~($38)~~$12 thousand and ($4)38) thousand of net realized gain (loss) on foreign currency forward contracts, respectively. During the three months ended March 31, ~~2021~~2022 and ~~2020,~~2021, we had ($~~14)~~9) thousand and ($~~15)~~14) thousand of net realized gain (loss) on foreign currency and other transactions, respectively.

Net Change in Unrealized Gain (Loss)

For the three months ended March 31, ~~2021~~2022 and ~~2020,~~2021, our investments had ~~$4.6~~($3.2) million and ~~($45.1)~~$4.6 million of net change in unrealized gain (loss), respectively. The net change in unrealized gain (loss) includes both unrealized gain on investments in our portfolio with mark-to-market gains during the ~~quarter~~periods and unrealized loss on investments in our portfolio with mark-to-market losses during the ~~quarter.~~periods.

During the three months ended March 31, 2022, the net change in unrealized loss on investments was primarily attributable to specific credit performance of one of our underlying portfolio companies as valuations on the rest of the portfolio remained relatively stable. We estimate approximately $5.1 million of the net unrealized gain on investments during the three months ended March 31, 2021 was attributable to broad market movements and tightening of credit spreads in the loan markets. Approximately $3.3 million of these net unrealized gains were attributable to investments held in the portfolio directly, while approximately $1.8 million of these gains were attributable to our investment in SLF. These increases in value were offset by ($0.5) million in net unrealized losses attributable to specific credit or fundamental performance of the underlying portfolio companies, a significant portion of which is as a result of the impact of the COVID-19 pandemic on individual credit performance. ~~The fair value of our portfolio investments may be further negatively impacted after March 31, 2021 by circumstances and events that are not yet known.~~

We estimate approximately $25.6 million of the net unrealized loss on investments during the three months ended March 31, 2020 was attributable to broad market movements and widening credit spreads in the loan markets as market participants expected a higher yield on similar investments given the significant market volatility generated by the COVID-19 pandemic. Approximately $14.5 million of these net unrealized losses were attributable to investments held in the portfolio directly, while approximately $11.1 million of these losses were attributable to our investment in SLF. The SLF’s underlying investments are loans to middle-market borrowers that are generally larger than the rest of our portfolio which is focused on lower middle-market companies. These upper middle-market loans held within the SLF experienced higher volatility in valuation during the three months ended March 31, 2020 than the rest of our portfolio. Additionally, we estimate the remaining approximately $19.5 million of the net unrealized losses this period were attributable to specific credit or fundamental performance of the underlying portfolio companies, a significant portion of which is as a result of the impact of the COVID-19 pandemic on individual credit performance.

For the three months ended March 31, ~~2021~~2022 and ~~2020,~~2021, our foreign currency forward contracts had ~~$0.3~~($0.4) million and ~~$0.1~~$0.3 million of net change in unrealized gain (loss), respectively. For the three months ended March 31, ~~2021~~2022 and ~~2020,~~2021, our foreign currency borrowings and cash denominated in foreign currencies had ~~($0.2)~~$0.2 million and ~~$1.3~~($0.2) million of net change in unrealized gain (loss), respectively.

Net Increase (Decrease) in Net Assets Resulting from Operations

For the three months ended March 31, ~~2021~~2022 and ~~2020,~~2021, the net increase (decrease) in net assets resulting from operations was ~~$7.1~~$0.8 million and ~~($36.9)~~$7.1 million, respectively. Based on the weighted average shares of common stock outstanding for the three months ended March 31, ~~2021~~2022 and ~~2020,~~2021, our per share net increase (decrease) in net assets resulting from operations was ~~$0.33~~$0.04 and ~~($1.81),~~$0.33, respectively. The ~~$44.0~~$6.3 million ~~increase~~decrease during the three months ended March 31, ~~2021~~2022 as compared to the three months ended March 31, ~~2020,~~2021, is primarily the result of net unrealized mark-to-market ~~gains~~losses on investments in the portfolio during the three months ended March 31, ~~2021,~~2022, as ~~during~~compared to the three months ended March 31, ~~2020,~~2021, where investments in the portfolio experienced ~~significant~~ net ~~unrealized mark~~mark-to-market gains, primarily attributable to ~~mark-to-market losses primarily as a result~~broad market movements and the tightening of ~~market volatility and deterioration of fundamental performance on certain portfolio companies related to~~credit spreads in the ~~COVID-19 pandemic.~~loan markets.

Liquidity and Capital Resources

As of March 31, ~~2021,~~2022, we had ~~$7.7~~$7.3 million in cash, ~~$8.2 million in cash at MRCC SBIC, $92.9~~$188.3 million of total debt outstanding on our revolving credit facility and $130.0 million in 2026 ~~Notes and $86.9 million in outstanding SBA debentures.~~Notes. We had ~~$162.1~~$66.7 million available for additional borrowings on our revolving credit facility, subject to borrowing base availability. See “Borrowings” below for additional information.

In accordance with the 1940 Act, we are permitted to borrow amounts such that our asset coverage ratio, as defined in the 1940 Act, is at least 150% after such borrowing. We were granted exemptive relief from the SEC for permission to exclude the debt of MRCC SBIC guaranteed by the SBA from the asset coverage test under the 1940 Act during the period the SBA debentures were outstanding. As of March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, our asset coverage ratio based on aggregate borrowings outstanding was ~~206%~~177% and ~~200%~~189%, respectively.

Cash Flows

For the three months ended March 31, ~~2021~~2022 and ~~2020,~~2021, we experienced a net increase (decrease) in cash and restricted cash of ($~~16.5)~~10.8) million and ($~~10.4)~~16.5) million, respectively. For the three months ended March 31, 2022, operating activities provided $14.2 million, primarily as a result of principal repayments on and sales of portfolio investments and net investment income, partially offset by purchases of portfolio investments. For the three months ended March 31, 2021, operating activities provided $33.8 million, primarily as a result of principal repayments on and sales of portfolio investments and net investment income, partially offset by purchases of portfolio investments. ~~For~~During the three months ended March 31, ~~2020, operating~~2022, we used $24.9 million in financing activities, ~~used $16.3 million,~~ primarily as a result of ~~purchases of portfolio investments~~repayments on our SBA debentures and ~~net investment income,~~distributions to stockholders, partially offset by ~~principal repayments~~net borrowings on ~~portfolio investments.~~our revolving credit facility. During the three months ended March 31, 2021, we used $50.3 million in financing activities, primarily as a result of net repayments on our revolving credit facility, 2023 Notes and SBA debentures and distributions to stockholders, partially offset by net proceeds from our 2026 Notes (net of deferred financing cost payments). During the three months ended March 31, 2020, we generated $5.9 million from financing activities, primarily as a result of proceeds from net borrowings on our revolving credit facility partially offset by distributions to stockholders.

Capital Resources

As a BDC, we distribute substantially all of our net income to our stockholders and have an ongoing need to raise additional capital for investment purposes. We intend to generate additional cash primarily from future offerings of securities, future borrowings and cash flows from operations, including income earned from investments in our portfolio companies. On both a short-term and long-term basis, our primary use of funds will be to invest in portfolio companies and make cash distributions to our stockholders. We may also use available funds to repay outstanding borrowings.

As a BDC, we are generally not permitted to issue and sell our common stock at a price below net asset value (“NAV”) per share. We may, however, sell our common stock, or warrants, options or rights to acquire our common stock, at a price below the then-current NAV per share of our common stock if our board of directors (“Board”), including our independent directors, determines that such sale is in the best interests of us and our stockholders, and if our stockholders have approved such sales. On June ~~19, 2019, our stockholders voted to allow us to sell or otherwise issue common stock at a price below NAV per share for a period of one year, subject to certain limitations. On June 17, 2020,~~16, 2021, our stockholders once again voted to allow us to sell or otherwise issue common stock at a price below net asset value per share for a period of one year, subject to certain limitations. As of both March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, we had ~~21,303,540 and 21,303,540~~21,666,340 shares ~~outstanding, respectively.~~outstanding.

On June 24, 2015, our stockholders approved a proposal to authorize us to issue warrants, options or rights to subscribe to, convert to, or purchase our common stock in one or more offerings. This is a standing authorization and does not require annual re-approval by our stockholders.

Stock Issuances: On May 12, 2017, we entered into at-the-market (“ATM”) equity distribution agreements with each of JMP Securities LLC (“JMP”) and FBR Capital Markets & Co. (“FBR”) (the “ATM Program”) through which we can sell, by means of ATM offerings, from time to time, up to $50.0 million of our common stock. On May 8, 2020, we entered into an amendment to the ATM Program to extend its term. All other material terms of the ATM Program remain unchanged. There were no stock issuances through the ATM Program during the three months ended March 31, ~~2021~~2022 and ~~2020.~~2021.

Borrowings

Revolving Credit Facility: We have a $255.0 million revolving credit facility with ING Capital LLC, as agent. The revolving credit facility has an accordion feature which permits us, under certain circumstances to increase the size of the facility up to $400.0 million (subject to maintaining 150% asset coverage, as defined by the 1940 Act). The revolving credit facility is secured by a lien on all of our assets, including cash on hand, but excluding the assets of our wholly-owned subsidiary, MRCC ~~SBIC.~~SBIC, prior to its dissolution. We may make draws under the revolving credit facility to make or purchase additional investments through March 1, 2023 and for general working capital purposes until March 1, 2024, the maturity date of the revolving credit facility.

Our ability to borrow under the revolving credit facility is subject to availability under the borrowing base, which permits us to borrow up to 72.5% of the fair market value of our portfolio company investments depending on the type of investment we hold and whether the investment is quoted. Our ability to borrow is also subject to certain concentration limits, and continued compliance with the representations, warranties and covenants given by us under the facility. The revolving credit facility contains certain financial and restrictive covenants, including, but not limited to, our maintenance of: (1) minimum consolidated total net assets at least equal to $150.0 million plus 65% of the net proceeds to us from sales of our equity securities after March 1, 2019; (2) a ratio of total assets (less total liabilities other than indebtedness) to total indebtedness of not less than 1.5 to 1; and (3) a senior debt coverage ratio of at least 2 to 1. The revolving credit facility also requires us to undertake customary indemnification obligations with respect to ING Capital LLC and other members of the lending group and to reimburse the lenders for expenses associated with entering into the credit facility. The revolving credit facility also has customary provisions regarding events of default, including events of default for nonpayment, change in control transactions at both Monroe Capital Corporation and MC Advisors, failure to comply with financial and negative covenants, and failure to maintain our relationship with MC Advisors. If we incur an event of default under the revolving credit facility and fail to remedy such default under any applicable grace period, if any, then the entire revolving credit facility could become immediately due and payable, which would materially and adversely affect our liquidity, financial condition, results of operations and cash flows.

Our revolving credit facility also imposes certain conditions that may limit the amount of our distributions to stockholders. Distributions payable in our common stock under the DRIP are not limited by the revolving credit facility. Distributions in cash or property other than common stock are generally limited to 115% of the amount of distributions required to maintain our status as a RIC.

As of March 31, 2022, we had U.S. dollar borrowings of $188.3 million. As of December 31, 2021, we had U.S. dollar borrowings of ~~$70.7~~$146.4 million and non-U.S. dollar borrowings denominated in Great Britain pounds of ~~£16.1~~£3.4 million ($~~22.2~~4.6 million in U.S. dollars) under the revolving credit facility. ~~As of December 31, 2020, we had U.S. dollar borrowings of $104.6 million and non-U.S. dollar~~Any borrowings denominated in ~~Great Britain pounds of £16.1 million ($22.0 million in U.S. dollars) under the revolving credit facility. The borrowings denominated in Great Britain pounds~~a foreign currency may be positively or negatively affected by movements in the rate of exchange between the U.S. dollar and the ~~Great Britain pound.~~respective foreign currency. These movements are beyond our control and cannot be predicted. ~~The borrowings~~Borrowings denominated in ~~Great Britain pounds~~a foreign currency are translated into U.S. dollars based on the spot rate at each balance sheet date. The impact resulting from changes in foreign currency borrowings is included in net change in unrealized gain (loss) on foreign currency and other transactions on our consolidated statements of operations and totaled ~~($0.2)~~$0.2 million and ~~$1.3~~($0.2) million for the three months ended March 31, 2022 and 2021, respectively. During the three months ended March 31, 2022, we repaid borrowings denominated in Great Britain pounds of £3.4 million. As a result of this repayment, we recognized a realized gain (loss) on foreign currency and ~~2020, respectively.~~

other transactions on our consolidated statements of operations of ($11) thousand for the three months ended March 31, 2022. There were no repayments of foreign currency borrowings for the three months ended March 31, 2021.

Borrowings under the revolving credit facility bear interest, at our election, at an annual rate of LIBOR (one-month, three-month or six-month at our discretion based on the term of the borrowing) plus 2.625% or at a daily rate equal to 1.625% per annum plus the greater of the prime interest rate, the federal funds rate plus 0.5% or LIBOR plus 1.0%, with a LIBOR floor of 0.5%. In addition to the stated interest rate on borrowings under the revolving credit facility, we are required to pay a commitment fee and certain conditional fees based on usage of the expanded borrowing base and usage of the asset coverage ratio flexibility. A commitment fee of 0.5% per annum on any unused portion of the revolving credit facility if the unused portion of the facility is less than 35% of the then available maximum borrowing or a commitment fee of 1.0% per annum on any unused portion of the revolving credit facility if the unused portion of the facility is greater than or equal to 35% of the then available maximum borrowing. As of both March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, the outstanding borrowings were accruing at a weighted average interest rate of ~~3.2% and 3.2%, respectively.~~ 3.1%.

~~2023~~2026 Notes: ~~On February 18,~~As of both March 31, 2022 and December 31, 2021, we ~~redeemed $109.0~~had $130.0 million in aggregate principal amount of senior unsecured notes (the “2026 Notes”) outstanding that mature on February 15, 2026. The 2026 Notes bear interest at an annual rate of 4.75% payable semi-annually on February 15 and August 15. We may redeem the ~~2023 Notes.~~2026 Notes in whole or in part at any time or from time to time at our option at par plus a “make-whole” premium, if applicable. The ~~redemption~~2026 Notes are general, unsecured obligations and rank equal in right of payment with all of our existing and future unsecured indebtedness.

SBA Debentures: On March 1, 2022, MRCC SBIC fully repaid its outstanding SBA debentures utilizing a borrowing on our revolving credit facility and the restricted cash at MRCC SBIC. This repayment was accounted for as a debt extinguishment in accordance with ASC Subtopic 470-50, Debt – Modifications and Extinguishment (“ASC 470-50”), which resulted in a realized loss of $2.3 million (primarily comprised of the unamortized deferred financing costs at the time of the redemption) and was recorded in net gain (loss) on extinguishment of debt on our consolidated statements of operations. The 2023 Notes were delisted from the Nasdaq Global Select Market, in conjunction with the redemption.

~~2026 Notes:~~ On January 25, 2021, we closed a private offering of $130.0 million in aggregate principal amount of senior unsecured notes (the “2026 Notes”). Aggregate underwriting commissions were $3.3 million and other issuance costs were $0.7 million, resulting in proceeds of approximately $126.0 million. The 2026 Notes will mature on February 15, 2026 and may be redeemed in whole or in part at any time or from time to time at our option at par plus a “make-whole” premium, if applicable. The 2026 Notes will bear interest at an annual rate of 4.75% payable semi-annually on February 15 and August 15 of each year, commencing on August 15, 2021. The 2026 Notes are general, unsecured obligations and rank equal in right of payment with all of our existing and future unsecured indebtedness.

~~SBA Debentures:~~ On February 28, 2014, our wholly-owned subsidiary, MRCC SBIC, received a license from the SBA to operate as a SBIC under Section 301(c) of the Small Business Investment Act of 1958, as amended. MRCC SBIC commenced operations on September 16, 2013.

The SBIC license allows MRCC SBIC to obtain leverage by issuing SBA debentures, subject to the issuance of a leverage commitment by the SBA and other customary procedures. SBA debentures are non-recourse, interest only debentures with interest payable semi-annually and have a ten-year maturity. The principal amount of SBA debentures is not required to be paid prior to maturity but may be prepaid at any time without penalty. The interest rate of SBA debentures is fixed on a semi-annual basis (pooling date) at a market-driven spread over U.S. Treasury Notes with 10-year maturities. The SBA, as a creditor, has a superior claim to MRCC SBIC’s assets over our stockholders in the event we liquidate MRCC SBIC, or the SBA exercises its remedies upon an event of default.

On March 1, 2021, we repaid $28.1 million in aggregate principal amount of the SBA debentures. The repayment was accounted for as a debt extinguishment in accordance with ASC 470-50, which resulted in a realized loss of $0.5$1.0 million (primarily comprised of the unamortized deferred financing costs at the time of the repayment) recorded in net gain (loss) on extinguishment of debt on our consolidated statements of operations. ~~As of~~MRCC SBIC received approval from the SBA to surrender its SBIC license and on March 31, ~~2021,~~2022, MRCC SBIC ~~had $8.2 million in cash and $120.6 million in investments at fair value. As of December 31, 2020, MRCC SBIC had $25.7 million in cash and $131.2 million in investments at fair value.~~ was dissolved.

As of March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, MRCC SBIC had zero and $57.6 million, respectively, in leverageable capital and the following ~~SBA-guaranteed~~SBA debentures ~~outstanding:~~outstanding (in thousands):

Maturity Date	Interest Rate			March 31, 2021		December 31, 2020		Interest Rate			March 31, 2022		December 31, 2021
September 2024		3.4	%	$	12,920	$	12,920		3.4	%	$	—	$	2,920
March 2025		3.3	%		14,800		14,800		3.3	%		—		14,800
March 2025		2.9	%		7,080		7,080		2.9	%		—		7,080
September 2025		3.6	%		—		5,200
March 2027		3.5	%		20,000		20,000
September 2027		3.2	%		32,100		32,100		3.2	%		—		32,100
March 2028		3.9	%		—		18,520
September 2028		4.2	%		—		4,380
Total				$	86,900	$	115,000				$	—	$	56,900

SBA regulations currently limit the amount that an individual SBIC may borrow to a maximum of $175.0 million when it has at least $87.5 million in regulatory capital, receives a leverage commitment from the SBA and has been through an audit examination by the SBA subsequent to licensing. The SBA also limits a related group of SBICs (commonly referred to as a “family of funds”) to a maximum of $350.0 million in total borrowings.

We were granted exemptive relief from the SEC for permission to exclude the debt of MRCC SBIC guaranteed by the SBA from the asset coverage test under the 1940 Act. The receipt of this exemption for this SBA debt increases flexibility under the asset coverage test.

Distributions

Our Board will determine the timing and amount, if any, of our distributions. We intend to pay distributions on a quarterly basis. In order to avoid corporate-level tax on the income we distribute as a RIC, we must distribute to our stockholders at least 90% of our ordinary income and realized net short-term capital gains in excess of realized net long-term capital losses, if any, on an annual basis out of the assets legally available for such distributions. In addition, we also intend to distribute any realized net capital gains (i.e., realized net long-term capital gains in excess of realized net short-term capital losses) at least annually out of the assets legally available for such distributions. Distributions to stockholders for the three months ended March 31, 2022 and 2021, ~~and 2020,~~ totaled ~~$5.3~~$5.4 million ($0.25 per share) and ~~$7.2~~$5.3 million ($~~0.35~~0.25 per share), respectively. The tax character of such distributions is determined at the end of the fiscal year. However, if the character of such distributions were determined as of March 31, ~~2021~~2022 and ~~2020,~~2021, no portion of these distributions would have been characterized as a tax return of capital to stockholders.

In October 2012, we adopted an “opt out” dividend reinvestment plan (“DRIP”) for our common stockholders. When we declare a distribution, our stockholders’ cash distributions will automatically be reinvested in additional shares of our common stock unless a stockholder specifically “opts out” of our DRIP. If a stockholder opts out, that stockholder will receive cash distributions. Although distributions paid in the form of additional shares of our common stock will generally be subject to U.S. federal, state and local taxes in the same manner as cash distributions, stockholders participating in our DRIP will not receive any corresponding cash distributions with which to pay any such applicable taxes.

MRCC Senior Loan Fund I, LLC

We co-invest with LSW in senior secured loans through SLF, an unconsolidated Delaware LLC. SLF is capitalized as underlying investment transactions are completed, taking into account available debt and equity commitments available for funding these investments. All portfolio and investment decisions in respect to SLF must be approved by the SLF investment committee, consisting of one representative of each of us and LSW. SLF may cease making new investments upon notification of either member but operations will continue until all investments have been sold or paid-off in the normal course of business. Investments held by SLF are measured at fair value using the same valuation methodologies as described below. Our investment is illiquid in nature as SLF does not allow for withdrawal from the LLC or the sale of a member’s interest unless approved by the board members of SLF. The full withdrawal of a member would result in an orderly wind-down of SLF.

SLF’s profits and losses are allocated to us and LSW in accordance with the respective ownership interests. As of both March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, we and LSW each owned 50.0% of the LLC equity interests of SLF. As of both March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, SLF had $100.0 million in equity commitments from its members (in the aggregate), of which $84.3 million was funded.

As of both March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, we have committed to fund $50.0 million of LLC equity interest subscriptions to SLF. As of both March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, $42.2 million of our LLC equity interest subscriptions to SLF had been called and contributed, net of return of capital distributions subject to recall.

For ~~both~~ the three months ended March 31, ~~2021~~2022 and ~~2020,~~2021, we received $0.9 million and $1.2 million of dividend income from our LLC equity interest in ~~SLF.~~SLF, respectively.

SLF has a senior secured revolving credit facility (as amended, the “SLF Credit Facility”) with Capital One, N.A., through its wholly-owned subsidiary MRCC Senior Loan Fund I Financing SPV, LLC (“SLF SPV”), ~~which as of March 31, 2021 allowed~~The SLF Credit Facility allows SLF SPV to borrow up to ~~$170.0~~$175.0 million, ~~at any one time,~~ subject to leverage and borrowing base ~~restrictions. Borrowings under~~restrictions borrowings on the SLF Credit Facility bear interest at an annual rate of LIBOR (three-month) plus ~~2.25%~~2.10%. ~~The maturity date on the SLF Credit Facility is March 22, 2023.~~

SLF does not pay any fees to MC Advisors or its affiliates; however, SLF has entered into an administration agreement with Monroe Capital Management Advisors, LLC (“MC Management”), pursuant to which certain loan servicing and administrative functions are delegated to MC Management. SLF may reimburse MC Management for its allocable share of overhead and other expenses incurred by MC Management. For the three months ended March 31, ~~2021~~2022 and ~~2020,~~2021, SLF incurred ~~$58~~$51 thousand and ~~$56~~$58 thousand of allocable expenses, respectively. There are no agreements or understandings by which we guarantee any SLF obligations.

As of March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, SLF had total assets at fair value of ~~$202.6~~$202.1 million and ~~$209.7~~$194.6 million, respectively. As of both March 31, 2022 and December 31, 2021, SLF had one portfolio company investment on non-accrual status with a fair value of $1.1 ~~million. As of December 31, 2020, SLF had one portfolio company investment on non-accrual status with a fair value of $1.0 million.~~million and $1.1 million, respectively. The portfolio companies in SLF are in industries and geographies similar to those in which we may invest directly. Additionally, as of March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, SLF had ~~$0.6~~$3.7 million and ~~$0.8~~$2.1 million, respectively, in outstanding commitments to fund investments under undrawn revolvers and delayed draw commitments.

Below is a summary of SLF’s portfolio, followed by a listing of the individual investments in SLF’s portfolio as of March 31, ~~2021~~2022 and December 31, ~~2020:~~2021:

	As of					As of
		March 31, 2021		December 31, 2020		March 31, 2022			December 31, 2021
Senior secured loans ⁽¹⁾		203,382		214,389			201,312			193,062
Weighted average current interest rate on senior secured loans ⁽²⁾		5.9	%	5.8	%		6.0	%		5.9	%
Number of borrowers in SLF		55		57
Number of portfolio company investments in SLF							61			57
Largest portfolio company investment ⁽¹⁾		6,772		6,790			6,703			6,720
Total of five largest portfolio company investments ⁽¹⁾		27,037		27,064			26,915			27,074

⁽¹⁾	Represents outstanding principal amount, excluding unfunded commitments. Principal amounts in thousands.
⁽²⁾	Computed as the (a) annual stated interest rate on accruing senior secured loans divided by (b) total senior secured loans at outstanding principal amount.

5159

MRCC SENIOR LOAN FUND I, LLC

CONSOLIDATED SCHEDULE OF INVESTMENTS

(unaudited)

March 31, ~~2021~~

~~(in thousands)~~

Portfolio Company ^(a)
Spread Above
Index ^(b)
Interest Rate ^(b) Maturity Principal Fair Value
Non-Controlled/Non-Affiliate Company Investments
Senior Secured Loans
Aerospace & Defense
Bromford Industries Limited ^(c) L+5.25% 6.25 % 11/5/2025 2,765 $ 2,707
Bromford Industries Limited ^(c) L+5.25% 6.25 % 11/5/2025 1,843 1,805
Trident Maritime SH, Inc. L+5.50% 6.50 % 2/26/2027 2,485 2,481
Trident Maritime SH, Inc. (Revolver) ^(d) L+5.50% 6.50 % 2/26/2027 265 41
7,358 7,034
Automotive
Truck-Lite Co., LLC L+6.25% 7.25 % 12/14/2026 1,722 1,720
Truck-Lite Co., LLC L+6.25% 7.25 % 12/14/2026 255 255
Wheel Pros, LLC L+5.25% 6.25 % 11/10/2027 2,993 2,993
4,970 4,968
Banking, Finance, Insurance & Real Estate
Avison Young (USA), Inc. ^(c) L+5.00% 5.20 % 1/30/2026 4,888 4,881
Harbour Benefit Holdings, Inc. (fka Zenith Merger Sub, Inc.) L+5.25% 6.25 % 12/13/2024 4,641 4,576
Harbour Benefit Holdings, Inc. (fka Zenith Merger Sub, Inc.) L+5.25% 6.25 % 12/13/2024 103 102
Lightbox Intermediate, L.P. L+5.00% 5.20 % 5/11/2026 4,913 4,863
Minotaur Acquisition, Inc. L+5.00% 5.11 % 3/27/2026 2,940 2,941
17,485 17,363
Beverage, Food & Tobacco
CBC Restaurant Corp. n/a 5.00% PIK ^(e) 4/28/2022 1,116 1,076
SW Ingredients Holdings, LLC L+4.00% 5.00 % 7/3/2025 3,647 3,645
4,763 4,721
Capital Equipment
Analogic Corporation L+5.25% 6.25 % 6/24/2024 4,788 4,788
4,788 4,788
Chemicals, Plastics & Rubber
Polymer Solutions Group L+7.00% 8.00 % 6/30/2021 1,206 1,177
1,206 1,177
Construction & Building
The Cook & Boardman Group, LLC L+5.75% 6.75 % 10/20/2025 2,933 2,864
2,933 2,864
Consumer Goods: Durable
International Textile Group, Inc. L+5.00% 5.26 % 5/1/2024 1,746 1,646
1,746 1,646
Consumer Goods: Non-Durable
PH Beauty Holdings III, Inc. L+5.00% 5.19 % 9/26/2025 2,436 2,328
2,436 2,328
Containers, Packaging & Glass
Liqui-Box Holdings, Inc. L+4.50% 5.50 % 2/26/2027 4,301 4,107
Polychem Acquisition, LLC L+5.00% 5.11 % 3/17/2025 2,940 2,936
Port Townsend Holdings Company, Inc. L+6.75% 5.75% Cash/
2.00% PIK 4/3/2024 4,716 4,291
PVHC Holding Corp. L+4.75% 5.75 % 8/5/2024 3,242 2,837
15,199 14,171
Energy: Oil & Gas
Drilling Info Holdings, Inc. L+4.25% 4.36 % 7/30/2025 4,551 4,483
Offen, Inc. L+5.00% 5.11 % 6/22/2026 2,406 2,384
Offen, Inc. L+5.00% 5.11 % 6/22/2026 883 875
7,840 7,742
2022
~~MRCC SENIOR LOAN FUND I, LLC~~
~~CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)~~
~~(unaudited)~~
~~March 31, 2021~~
(in thousands)

Portfolio Company ^(a)
Spread Above
Index ^(b)
Interest Rate ^(b) Maturity Principal Fair Value
Healthcare & Pharmaceuticals
LSCS Holdings, Inc. L+4.25% 4.45 % 3/17/2025 2,293 $ 2,270
LSCS Holdings, Inc. L+4.25% 4.45 % 3/17/2025 592 586
Radiology Partners, Inc. L+4.25% 4.36 % 7/9/2025 4,760 4,731
7,645 7,587
High Tech Industries
Corel, Inc. ^(c) L+5.00% 5.19 % 7/2/2026 3,875 3,863
LW Buyer, LLC L+5.00% 5.11 % 12/30/2024 4,912 4,888
TGG TS Acquisition Company L+6.50% 6.61 % 12/12/2025 3,679 3,698
12,466 12,449
Hotels, Gaming & Leisure
Excel Fitness Holdings, Inc. L+5.25% 6.25 % 10/7/2025 4,197 4,020
North Haven Spartan US Holdco, LLC L+5.00% 6.00 % 6/6/2025 2,315 1,998
Tait, LLC L+5.00% 5.20 % 3/28/2025 4,157 3,695
Tait, LLC (Revolver) P+4.00% 7.25 % 3/28/2025 769 715
11,438 10,428
Media: Advertising, Printing & Publishing
Cadent, LLC L+5.25% 6.25 % 9/11/2023 4,728 4,716
Cadent, LLC (Revolver) ^(d) L+5.25% 6.25 % 9/11/2023 167 —
Digital Room Holdings, Inc. L+5.00% 5.20 % 5/21/2026 4,351 4,284
Monotype Imaging Holdings, Inc. L+5.50% 6.50 % 10/9/2026 4,875 4,865
14,121 13,865
Media: Diversified & Production
Research Now Group, Inc. and Survey Sampling International, LLC L+5.50% 6.50 % 12/20/2024 6,772 6,723
Stats Intermediate Holding, LLC L+5.25% 5.45 % 7/10/2026 4,937 4,937
The Octave Music Group, Inc. L+6.00% 6.25% Cash/
0.75% PIK 5/29/2025 4,828 4,580
16,537 16,240
Services: Business
AQ Carver Buyer, Inc. L+5.00% 6.00 % 9/23/2025 4,938 4,925
CHA Holdings, Inc. L+4.50% 5.50 % 4/10/2025 1,997 1,867
CHA Holdings, Inc. L+4.50% 5.50 % 4/10/2025 421 394
Eliassen Group, LLC L+4.25% 4.36 % 11/5/2024 3,013 2,968
Engage2Excel, Inc. L+8.00% 7.00% Cash/
2.00% PIK 3/7/2023 4,309 4,285
Engage2Excel, Inc. L+8.00% 7.00% Cash/
2.00% PIK 3/7/2023 777 773
Engage2Excel, Inc. (Revolver) ^(d) L+8.00% 7.00% Cash/
2.00% PIK 3/7/2023 550 373
GI Revelation Acquisition, LLC L+5.00% 5.11 % 4/16/2025 1,362 1,366
Legility, LLC L+6.00% 7.00 % 12/17/2025 4,875 4,719
Orbit Purchaser, LLC L+4.50% 5.50 % 10/21/2024 2,450 2,460
Orbit Purchaser, LLC L+4.50% 5.50 % 10/21/2024 1,892 1,900
Orbit Purchaser, LLC L+4.50% 5.50 % 10/21/2024 553 555
Output Services Group, Inc. L+4.50% 5.50 % 3/27/2024 4,852 4,124
SIRVA Worldwide, Inc. L+5.50% 5.70 % 8/4/2025 1,887 1,746
Teneo Holdings, LLC L+5.25% 6.25 % 7/11/2025 4,925 4,929
The Kleinfelder Group, Inc. L+5.25% 6.25 % 11/29/2024 2,444 2,444
41,245 39,828
Services: Consumer
Cambium Learning Group, Inc. L+4.50% 5.25 % 12/18/2025 4,516 4,527
LegalZoom.com, Inc. L+4.50% 4.61 % 11/21/2024 2,687 2,688
7,203 7,215
Telecommunications
Intermedia Holdings, Inc. L+6.00% 7.00 % 7/21/2025 1,792 1,796
Mavenir Systems, Inc. L+6.00% 7.00 % 5/8/2025 3,890 3,897
5,682 5,693
Transportation: Cargo
GlobalTranz Enterprises, LLC L+5.00% 5.11 % 5/15/2026 3,254 3,129
3,254 3,129
Utilities: Oil & Gas
NGS US Finco, LLC L+4.25% 5.25 % 10/1/2025 1,708 1,640
NGS US Finco, LLC L+5.25% 6.25 % 10/1/2025 249 245
1,957 1,885
Wholesale
BMC Acquisition, Inc. L+5.25% 6.25 % 12/30/2024 4,837 4,816
HALO Buyer, Inc. L+4.50% 5.50 % 6/30/2025 4,862 4,704
PT Intermediate Holdings III, LLC L+5.50% 6.50 % 10/15/2025 1,975 1,958
11,674 11,478

TOTAL INVESTMENTS $ 198,599
Portfolio Company ^(a) Spread
Above
Index ^(b) Interest Rate ^(b) Maturity Principal Fair Value
Non-Controlled/Non-Affiliate Company Investments
Senior Secured Loans
Aerospace & Defense
Bromford Industries Limited ^(c) P+4.25% 7.75 % 11/5/2025 2,744 $ 2,671
Bromford Industries Limited ^(c) P+4.25% 7.75 % 11/5/2025 1,829 1,781
Trident Maritime Systems, Inc. L+5.50% 6.51 % 2/26/2027 2,460 2,460
Trident Maritime Systems, Inc. (Revolver) ^(d) L+5.50% 6.50 % 2/26/2027 265 204
7,298 7,116
Automotive
Accelerate Auto Works Intermediate, LLC L+4.75% 5.75 % 12/1/2027 1,451 1,454
Accelerate Auto Works Intermediate, LLC (Delayed Draw) ^(d) L+4.75% 5.75 % 12/1/2027 388 —
Accelerate Auto Works Intermediate, LLC (Revolver) ^(d) L+4.75% 5.75 % 12/1/2027 132 —
Truck-Lite Co., LLC L+6.25% 7.26 % 12/14/2026 1,704 1,713
Truck-Lite Co., LLC L+6.25% 7.26 % 12/14/2026 253 254
Wheel Pros, Inc. L+4.50% 5.25 % 5/11/2028 1,947 1,861
5,875 5,282
Beverage, Food & Tobacco
CBC Restaurant Corp. n/a 5.00% PIK ^(e) 12/30/2022 1,116 1,094
SW Ingredients Holdings, LLC L+4.75% 5.75 % 7/3/2025 3,609 3,613
4,725 4,707
Capital Equipment
Analogic Corporation L+5.25% 6.25 % 6/24/2024 4,739 4,635
DS Parent, Inc. L+5.75% 6.76 % 12/8/2028 2,963 2,888
MacQueen Equipment, LLC L+5.25% 6.26 % 1/7/2028 2,112 2,112
MacQueen Equipment, LLC (Delayed Draw) ^(d) L+5.25% 6.26 % 1/7/2028 592 —
MacQueen Equipment, LLC (Revolver) ^(d) L+5.25% 6.26 % 1/7/2028 296 59
10,702 9,694
Chemicals, Plastics & Rubber
Polymer Solutions Group L+7.00% 8.00 % 1/3/2023 1,168 1,158
1,168 1,158
Construction & Building
The Cook & Boardman Group LLC L+5.75% 6.75 % 10/20/2025 2,902 2,833
2,902 2,833
Consumer Goods: Durable
International Textile Group, Inc. L+5.00% 5.21 % 5/1/2024 1,699 1,574
Runner Buyer INC., L+5.50% 6.25 % 10/23/2028 3,000 2,880
4,699 4,454
Consumer Goods: Non-Durable
PH Beauty Holdings III, INC L+5.00% 5.51 % 9/26/2025 2,411 2,279
2,411 2,279
Containers, Packaging & Glass
Liqui-Box Holdings, Inc. L+4.50% 5.50 % 2/26/2027 4,257 4,030
Polychem Acquisition, LLC L+5.00% 6.50 % 3/17/2025 2,910 2,909
Port Townsend Holdings Company, Inc. and Crown Corrugated Company L+6.75% 5.75% Cash/
2.00% PIK 4/3/2024 4,820 3,116
PVHC Holding Corp L+4.75% 5.76 % 8/5/2024 3,209 2,968
15,196 13,023
Energy: Oil & Gas
Drilling Info Holdings, Inc. L+4.25% 4.71 % 7/30/2025 4,504 4,457
Offen, Inc. L+5.00% 5.46 % 6/22/2026 2,249 2,249
Offen, Inc. L+5.00% 5.46 % 6/22/2026 874 874
7,627 7,580
FIRE: Finance
Harbour Benefit Holdings, Inc. L+5.25% 6.26 % 12/13/2024 2,936 2,923
Harbour Benefit Holdings, Inc. L+5.25% 6.25 % 12/13/2024 65 65
Minotaur Acquisition, Inc. L+4.75% 5.21 % 3/27/2026 4,895 4,859
7,896 7,847
FIRE: Real Estate
Avison Young (USA) Inc. ^(c) L+5.75% 6.76 % 1/30/2026 4,837 4,819
4,837 4,819
Healthcare & Pharmaceuticals
Cano Health, LLC SF+4.00% 4.51 % 11/23/2027 1,985 1,959
HAH Group Holding Company, LLC ^(f) SF+5.00% 6.00 % 10/29/2027 3,000 2,970
LSCS Holdings, Inc. L+4.50% 5.00 % 12/15/2028 1,842 1,825
Paragon Healthcare, Inc. SF+5.75% 6.75 % 1/19/2028 2,082 2,082
Paragon Healthcare, Inc. (Delayed Draw) ^(d) SF+5.75% 6.75 % 1/19/2028 429 —
Paragon Healthcare, Inc. (Revolver) ^(d) SF+5.75% 6.75 % 1/19/2028 490 —
Radiology Partners, Inc. L+4.25% 4.70 % 7/9/2025 4,760 4,707
TEAM Public Choices, LLC L+5.00% 6.01 % 12/17/2027 2,977 2,955
17,565 16,498
High Tech Industries
Corel Inc. ^(c) L+5.00% 5.51 % 7/2/2026 3,750 3,751
Lightbox Intermediate, L.P. L+5.00% 6.01 % 5/11/2026 4,863 4,790
LW Buyer, LLC L+5.00% 5.15 % 12/30/2024 4,863 4,814
TGG TS Acquisition Company L+6.50% 6.96 % 12/12/2025 3,435 3,423
16,911 16,778
Hotels, Gaming & Leisure
Excel Fitness Holdings, Inc. L+5.25% 6.25 % 10/7/2025 4,154 4,097
North Haven Spartan US Holdco, LLC L+5.00% 6.00 % 6/6/2025 2,291 2,093
Tait LLC L+5.00% 5.22 % 3/28/2025 4,114 3,865
Tait LLC (Revolver) P+4.00% 7.50 % 3/28/2025 769 736
11,328 10,791
Media: Advertising, Printing & Publishing
Cadent, LLC L+5.00% 6.00 % 9/11/2023 4,339 4,328
Cadent, LLC (Revolver) ^(d) L+5.00% 6.00 % 9/11/2023 167 —
4,506 4,328
Media: Diversified & Production
Research Now Group, Inc. and Survey Sampling International, LLC L+5.50% 6.50 % 12/20/2024 6,702 6,601
STATS Intermediate Holdings, LLC L+5.25% 5.72 % 7/10/2026 4,888 4,864
The Octave Music Group, Inc. L+6.00% 7.00 % 5/29/2025 2,814 2,811
14,404 14,276
Services: Business
AQ Carver Buyer, Inc. L+5.00% 6.01 % 9/23/2025 4,875 4,875
CHA Holdings, Inc L+4.50% 5.51 % 4/10/2025 1,975 1,896
CHA Holdings, Inc L+4.50% 5.51 % 4/10/2025 416 400
Eliassen Group LLC L+4.25% 4.71 % 11/5/2024 3,951 3,951
Engage2Excel, Inc. L+7.25% 8.25 % 3/7/2023 4,315 4,309
Engage2Excel, Inc. L+7.25% 8.25 % 3/7/2023 779 777
Engage2Excel, Inc. (Revolver) ^(d) L+7.25% 8.25 % 3/7/2023 557 452
Orbit Purchaser LLC L+4.50% 5.51 % 10/21/2024 2,425 2,389
Orbit Purchaser LLC L+4.50% 5.51 % 10/21/2024 1,873 1,844
Orbit Purchaser LLC L+4.50% 5.51 % 10/21/2024 548 539
Output Services Group, Inc. L+4.50% 5.50 % 3/27/2024 4,802 3,756
Secretariat Advisors LLC L+4.75% 5.76 % 12/29/2028 1,706 1,701
Secretariat Advisors LLC (Delayed Draw) ^(d) L+4.75% 5.76 % 12/29/2028 270 —
SIRVA Worldwide Inc. L+5.50% 5.96 % 8/4/2025 1,838 1,704
Teneo Holdings LLC SF+5.25% 6.25 % 7/11/2025 4,875 4,842
The Kleinfelder Group, Inc. L+5.25% 6.25 % 11/29/2024 2,381 2,381
37,586 35,816
Services: Consumer
360Holdco, Inc. L+4.75% 5.75 % 8/2/2025 2,162 2,155
360Holdco, Inc. (Delayed Draw) ^(d) L+4.75% 5.75 % 8/2/2025 827 —
Laseraway Intermediate Holdings II, LLC L+5.75% 6.50 % 10/14/2027 2,217 2,194
McKissock Investment Holdings, LLC SF+5.00% 5.95 % 3/9/2029 2,500 2,491
7,706 6,840
Telecommunications
Intermedia Holdings, Inc. L+6.00% 7.00 % 7/21/2025 1,774 1,762
Mavenir Systems, Inc. L+4.75% 5.25 % 8/18/2028 1,667 1,661
Sandvine Corporation L+4.50% 4.96 % 10/31/2025 2,000 1,981
5,441 5,404
Transportation: Cargo
Keystone Purchaser, LLC L+6.25% 7.25 % 5/7/2027 2,992 2,992
2,992 2,992
Utilities: Oil & Gas
Dresser Utility Solutions, LLC (fka NGS US Finco, LLC) L+4.25% 5.25 % 10/1/2025 1,691 1,640
Dresser Utility Solutions, LLC (fka NGS US Finco, LLC) L+5.25% 6.25 % 10/1/2025 247 244
1,938 1,884
Wholesale
BMC Acquisition, Inc. L+5.25% 6.25 % 12/30/2024 4,486 4,385
HALO Buyer, Inc. L+4.50% 5.51 % 6/30/2025 4,812 4,470
9,298 8,855

TOTAL INVESTMENTS $ 195,254

^(a) All investments are U.S. companies unless otherwise noted.
^(b) The majority of ~~the~~ investments bear interest at a rate that may be determined by reference to the London Interbank Offered Rate ~~(“LIBOR”~~("LIBOR" or ~~“L”~~"L"), Secured Overnight Financing Rate ("SOFR" or "SF") or Prime ~~Rate (“Prime” or “P”~~("P") which reset daily, monthly, quarterly or semiannually. ~~For each such investment, we~~We have provided the spread over LIBOR, SOFR or Prime and the current contractual rate of interest ~~rate~~ in effect at March 31, ~~2021.~~2022. Certain investments are subject to a LIBOR, SOFR or Prime interest rate ~~floor, or rate cap.~~floor.
^(c) This is an international company.
^(d) All or a portion of this commitment was unfunded as of March 31, 2022. As such, interest is earned only on the funded portion of this commitment. Principal reflects the commitment outstanding.
^(e) This position was on non-accrual status as of March 31, 2022, meaning that we have ceased accruing interest income on the position.
^(f) Investment position or portion thereof unsettled at March 31, 2022.

MRCC SENIOR LOAN FUND I, LLC
CONSOLIDATED SCHEDULE OF INVESTMENTS
December 31, 2021
(in thousands)
Portfolio Company ^(a) Spread
Above
Index ^(b) Interest Rate ^(b) Maturity Principal Fair Value
Non-Controlled/Non-Affiliate Company Investments
Senior Secured Loans
Aerospace & Defense
Bromford Industries Limited ^(c) P+4.25% 7.50 % 11/5/2025 2,744 $ 2,692
Bromford Industries Limited ^(c) P+4.25% 7.50 % 11/5/2025 1,829 1,794
Trident Maritime Systems, Inc. L+5.50% 6.50 % 2/26/2027 2,467 2,478
Trident Maritime Systems, Inc. (Revolver) ^(d) L+5.50% 6.50 % 2/26/2027 265 —
7,305 6,964
Automotive
Accelerate Auto Works Intermediate, LLC L+4.75% 5.75 % 12/1/2027 1,454 1,436
Accelerate Auto Works Intermediate, LLC (Delayed Draw) ^(d) L+4.75% 5.75 % 12/1/2027 388 —
Accelerate Auto Works Intermediate, LLC (Revolver) ^(d) L+4.75% 5.75 % 12/1/2027 132 —
Truck-Lite Co., LLC L+6.25% 7.25 % 12/14/2026 1,709 1,718
Truck-Lite Co., LLC L+6.25% 7.25 % 12/14/2026 253 255
Wheel Pros, Inc. L+4.50% 5.25 % 5/11/2028 1,952 1,951
5,888 5,360
Beverage, Food & Tobacco
CBC Restaurant Corp. n/a 5.00% PIK ^(f) 12/30/2022 1,116 1,072
SW Ingredients Holdings, LLC L+4.75% 5.75 % 7/3/2025 3,619 3,619
4,735 4,691
Capital Equipment
Analogic Corporation L+5.25% 6.25 % 6/24/2024 4,752 4,702
DS Parent, Inc. ^(e) L+5.75% 6.50 % 12/8/2028 3,000 2,970
7,752 7,672
Chemicals, Plastics & Rubber
Polymer Solutions Group L+7.00% 8.00 % 1/3/2023 1,178 1,169
1,178 1,169
Construction & Building
The Cook & Boardman Group LLC L+5.75% 6.75 % 10/20/2025 2,910 2,838
2,910 2,838
Consumer Goods: Durable
International Textile Group, Inc. L+5.00% 5.13 % 5/1/2024 1,711 1,590
Runner Buyer Inc. ^(e) L+5.50% 6.25 % 10/23/2028 3,000 2,970
4,711 4,560
Consumer Goods: Non-Durable
PH Beauty Holdings III, INC L+5.00% 5.18 % 9/26/2025 2,418 2,284
2,418 2,284
Containers, Packaging & Glass
Liqui-Box Holdings, Inc. L+4.50% 5.50 % 2/26/2027 4,268 3,991
Polychem Acquisition, LLC L+5.00% 5.50 % 3/17/2025 2,918 2,917
Port Townsend Holdings Company, Inc. and Crown Corrugated Company L+6.75% 5.75% Cash/ 2.00% PIK 4/3/2024 4,751 4,238
PVHC Holding Corp L+4.75% 5.75 % 8/5/2024 3,217 2,976
15,154 14,122
Energy: Oil & Gas
Drilling Info Holdings, Inc. L+4.25% 4.35 % 7/30/2025 4,516 4,471
Offen, Inc. L+5.00% 5.10 % 6/22/2026 2,388 2,387
Offen, Inc. L+5.00% 5.10 % 6/22/2026 876 876
7,780 7,734
FIRE: Finance
Harbour Benefit Holdings, Inc. L+5.25% 6.25 % 12/13/2024 2,948 2,932
Harbour Benefit Holdings, Inc. L+5.25% 6.25 % 12/13/2024 66 65
Minotaur Acquisition, Inc. ^(e) L+4.75% 4.85 % 3/27/2026 4,912 4,894
7,926 7,891
FIRE: Real Estate
Avison Young (USA) Inc. ^(c) L+5.75% 5.97 % 1/30/2026 4,850 4,824
4,850 4,824
Healthcare & Pharmaceuticals
Cano Health, LLC ^(e) SF+4.00% 4.51 % 11/23/2027 1,995 1,997
LSCS Holdings, Inc. ^(e) L+4.50% 5.00 % 12/15/2028 1,846 1,849
Radiology Partners, Inc. L+4.25% 4.35 % 7/9/2025 4,760 4,700
TEAM Public Choices, LLC ^(e) L+5.00% 6.00 % 12/17/2027 2,992 2,985
11,593 11,531
High Tech Industries
Corel Inc. ^(c) L+5.00% 5.18 % 7/2/2026 3,800 3,797
Lightbox Intermediate, L.P. L+5.00% 5.13 % 5/11/2026 4,875 4,814
LW Buyer, LLC L+5.00% 5.14 % 12/30/2024 4,875 4,863
TGG TS Acquisition Company L+6.50% 6.60 % 12/12/2025 3,435 3,446
16,985 16,920

MRCC SENIOR LOAN FUND I, LLC
CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)
December 31, 2021
(in thousands)
Portfolio Company ^(a) Spread
Above
Index ^(b) Interest Rate ^(b) Maturity Principal Fair Value
Hotels, Gaming & Leisure
Excel Fitness Holdings, Inc. L+5.25% 6.25 % 10/7/2025 4,165 $ 4,155
North Haven Spartan US Holdco, LLC L+5.00% 6.00 % 6/6/2025 2,297 2,037
Tait LLC L+5.00% 5.14 % 3/28/2025 4,125 3,785
Tait LLC (Revolver) P+4.00% 7.25 % 3/28/2025 769 728
11,356 10,705
Media: Advertising, Printing & Publishing
Cadent, LLC L+5.00% 6.00 % 9/11/2023 4,339 4,296
Cadent, LLC (Revolver) ^(d) L+5.00% 6.00 % 9/11/2023 167 —
4,506 4,296
Media: Diversified & Production
Research Now Group, Inc. and Survey Sampling International, LLC L+5.50% 6.50 % 12/20/2024 6,720 6,645
STATS Intermediate Holdings, LLC L+5.25% 5.41 % 7/10/2026 4,900 4,897
The Octave Music Group, Inc. L+6.00% 7.00 % 5/29/2025 3,866 3,871
15,486 15,413
Services: Business
AQ Carver Buyer, Inc. L+5.00% 6.00 % 9/23/2025 4,888 4,900
CHA Holdings, Inc L+4.50% 5.50 % 4/10/2025 1,980 1,901
CHA Holdings, Inc L+4.50% 5.50 % 4/10/2025 418 401
Eliassen Group LLC L+4.25% 4.35 % 11/5/2024 3,956 3,956
Engage2Excel, Inc. L+8.00% 7.00% Cash/ 2.00% PIK 3/7/2023 4,326 4,329
Engage2Excel, Inc. L+8.00% 7.00% Cash/ 2.00% PIK 3/7/2023 781 781
Engage2Excel, Inc. (Revolver) ^(d) L+8.00% 7.00% Cash/ 2.00% PIK 3/7/2023 555 541
Orbit Purchaser LLC L+4.50% 5.50 % 10/21/2024 2,431 2,425
Orbit Purchaser LLC L+4.50% 5.50 % 10/21/2024 1,877 1,873
Orbit Purchaser LLC L+4.50% 5.50 % 10/21/2024 549 548
Output Services Group, Inc. L+4.50% 5.50 % 3/27/2024 4,815 4,145
Secretariat Advisors LLC ^(e) L+4.75% 5.50 % 12/29/2028 1,710 1,693
Secretariat Advisors LLC ^{(d) (e)} L+4.75% 5.50 % 12/29/2028 270 —
SIRVA Worldwide Inc. L+5.50% 5.60 % 8/4/2025 1,850 1,683
Teneo Holdings LLC L+5.25% 6.25 % 7/11/2025 4,888 4,908
The Kleinfelder Group, Inc. L+5.25% 6.25 % 11/29/2024 2,387 2,387
37,681 36,471
Services: Consumer
360Holdco, Inc. L+4.75% 5.75 % 8/2/2025 2,168 2,161
360Holdco, Inc. (Delayed Draw) ^(d) L+4.75% 5.75 % 8/2/2025 827 —
Laseraway Intermediate Holdings II, LLC L+5.75% 6.50 % 10/14/2027 2,222 2,214
5,217 4,375
Telecommunications
Intermedia Holdings, Inc. L+6.00% 7.00 % 7/21/2025 1,778 1,770
Mavenir Systems, Inc. L+4.75% 5.25 % 8/18/2028 1,667 1,669
Sandvine Corporation L+4.50% 4.60 % 10/31/2025 2,000 1,999
5,445 5,438
Transportation: Cargo
Keystone Purchaser, LLC ^(e) L+6.25% 7.25 % 5/7/2027 3,000 2,947
3,000 2,947
Utilities: Oil & Gas
NGS US Finco, LLC L+4.25% 5.25 % 10/1/2025 1,695 1,644
NGS US Finco, LLC L+5.25% 6.25 % 10/1/2025 248 244
1,943 1,888
Wholesale
BMC Acquisition, Inc. L+5.25% 6.25 % 12/30/2024 4,486 4,469
HALO Buyer, Inc. L+4.50% 5.50 % 6/30/2025 4,824 4,547
9,310 9,016

TOTAL INVESTMENTS $ 189,109
^(a) All investments are U.S. companies unless otherwise noted.
^(b) The majority of investments bear interest at a rate that may be determined by reference to the London Interbank Offered Rate ("LIBOR" or "L"), Secured Overnight Financing Rate ("SOFR" or "SF") or Prime ("P") which reset daily, monthly, quarterly or semiannually. We have provided the spread over LIBOR, SOFR or Prime and the current contractual rate of interest in effect at December 31, 2021. Certain investments are subject to a LIBOR, SOFR or Prime interest rate floor.
^(c) This is an international company.
^(d) All or a portion of this commitment was unfunded as of December 31, 2021. As such, interest is earned only on the funded portion of this commitment. Principal reflects the commitment outstanding.
^(e) Investment position or portion thereof unsettled at December 31, 2021.
^(e)(f) This position was on non-accrual status as of ~~March~~December 31, 2021, meaning that we have ceased accruing interest income on the position.

~~MRCC SENIOR LOAN FUND I, LLC~~
~~CONSOLIDATED SCHEDULE OF INVESTMENTS~~
~~December 31, 2020~~
~~(in thousands)~~
Portfolio Company ^(a) Spread Above Index ^(b) Interest Rate ^(b) Maturity Principal Fair Value
Non-Controlled/Non-Affiliate Company Investments
Senior Secured Loans
Aerospace & Defense
Bromford Industries Limited ^(c) L+5.25 % 6.25 % 11/5/2025 2,772 $ 2,685
Bromford Industries Limited ^(c) L+5.25 % 6.25 % 11/5/2025 1,848 1,790
Trident Maritime SH, Inc. L+4.75 % 5.75 % 6/4/2024 4,401 4,363
Trident Maritime SH, Inc. (Revolver) ^(d) L+4.75 % 5.75 % 6/4/2024 340 —
9,361 8,838
Automotive
Truck-Lite Co., LLC L+6.25 % 7.25 % 12/14/2026 1,726 1,716
Truck-Lite Co., LLC L+6.25 % 7.25 % 12/14/2026 256 254
Wheel Pros, LLC L+5.25 % 6.25 % 11/10/2027 3,000 2,961
4,982 4,931
Banking, Finance, Insurance & Real Estate
Avison Young (USA), Inc. ^(c) L+5.00 % 5.25 % 1/30/2026 4,900 4,659
Harbour Benefit Holdings, Inc. (fka Zenith Merger
       Sub, Inc.) L+5.25 % 6.25 % 12/13/2024 4,653 4,585
Harbour Benefit Holdings, Inc. (fka Zenith Merger
       Sub, Inc.) (Delayed Draw) ^(d) L+5.25 % 6.25 % 12/13/2024 264 102
Lightbox Intermediate, L.P. L+5.00 % 5.15 % 5/11/2026 4,925 4,777
Minotaur Acquisition, Inc. L+5.00 % 5.15 % 3/27/2026 2,947 2,900
17,689 17,023
Beverage, Food & Tobacco
CBC Restaurant Corp. n/a 5.00% PIK 4/28/2022 1,117 1,031
SW Ingredients Holdings, LLC L+4.00 % 5.00 % 7/3/2025 3,656 3,647
4,773 4,678
Capital Equipment
Analogic Corporation L+5.25 % 6.25 % 6/24/2024 4,800 4,800
4,800 4,800
Chemicals, Plastics & Rubber
Polymer Solutions Group L+7.00 % 8.00 % 6/30/2021 1,216 1,189
1,216 1,189
Construction & Building
ISC Purchaser, LLC L+4.00 % 5.00 % 7/11/2025 4,937 4,896
The Cook & Boardman Group, LLC L+5.75 % 6.75 % 10/20/2025 2,940 2,811
7,877 7,707
Consumer Goods: Durable
International Textile Group, Inc. L+5.00 % 5.37 % 5/1/2024 1,758 1,597
1,758 1,597
Consumer Goods: Non-Durable
PH Beauty Holdings III, Inc. L+5.00 % 5.23 % 9/26/2025 2,442 2,149
2,442 2,149
Containers, Packaging & Glass
Liqui-Box Holdings, Inc. L+4.50 % 5.50 % 2/26/2027 4,312 3,848
Polychem Acquisition, LLC L+5.00 % 5.15 % 3/17/2025 2,948 2,948
Port Townsend Holdings Company, Inc. L+6.75 % 5.75% Cash/
2.00% PIK 4/3/2024 4,683 4,263
PVHC Holding Corp. L+4.75 % 5.75 % 8/5/2024 3,250 2,844
15,193 13,903
Energy: Oil & Gas
Drilling Info Holdings, Inc. L+4.25 % 4.40 % 7/30/2025 4,563 4,429
Offen, Inc. L+5.00 % 5.15 % 6/22/2026 2,412 2,343
Offen, Inc. L+5.00 % 5.15 % 6/22/2026 885 860
7,860 7,632
Healthcare & Pharmaceuticals
LSCS Holdings, Inc. L+4.25 % 4.51 % 3/17/2025 2,299 2,253
LSCS Holdings, Inc. L+4.25 % 4.51 % 3/17/2025 593 582
Radiology Partners, Inc. L+4.25 % 4.40 % 7/9/2025 4,760 4,692
7,652 7,527
High Tech Industries
AQA Acquisition Holding, Inc. L+4.25 % 5.25 % 5/24/2023 3,257 3,257
Corel, Inc. ^(c) L+5.00 % 5.23 % 7/2/2026 3,900 3,844
LW Buyer, LLC L+5.00 % 5.15 % 12/30/2024 4,925 4,900
TGG TS Acquisition Company L+6.50 % 6.65 % 12/12/2025 3,753 3,720
15,835 15,721
Hotels, Gaming & Leisure
Excel Fitness Holdings, Inc. L+5.25 % 6.25 % 10/7/2025 4,207 3,878
North Haven Spartan US Holdco, LLC L+5.00 % 6.00 % 6/6/2025 2,321 1,979
Tait, LLC L+5.00 % 5.23 % 3/28/2025 4,167 3,669
Tait, LLC (Revolver) P+4.00 % 7.25 % 3/28/2025 769 711
11,464 10,237
Media: Advertising, Printing & Publishing
Cadent, LLC L+5.50 % 6.50 % 9/11/2023 4,728 4,622
Cadent, LLC (Revolver) ^(d) L+5.50 % 6.50 % 9/11/2023 167 —
Digital Room Holdings, Inc. L+5.00 % 5.27 % 5/21/2026 4,362 4,133
Monotype Imaging Holdings, Inc. L+5.50 % 6.50 % 10/9/2026 4,906 4,653
14,163 13,408
Media: Diversified & Production
Research Now Group, Inc. and Survey Sampling
       International, LLC L+5.50 % 6.50 % 12/20/2024 6,790 6,708
Stats Intermediate Holding, LLC L+5.25 % 5.47 % 7/10/2026 4,950 4,909
The Octave Music Group, Inc. L+6.00 % 6.25% Cash/
0.75% PIK 5/29/2025 4,871 4,335
16,611 15,952

62
~~MRCC SENIOR LOAN FUND I, LLC~~
~~CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)~~
~~December 31, 2020~~
~~(in thousands)~~

Portfolio Company ^(a) Spread Above Index ^(b) Interest Rate ^(b) Maturity Principal Fair Value
Services: Business
AQ Carver Buyer, Inc. L+5.00 % 6.00 % 9/23/2025 4,937 $ 4,888
CHA Holdings, Inc. L+4.50 % 5.50 % 4/10/2025 2,002 1,872
CHA Holdings, Inc. L+4.50 % 5.50 % 4/10/2025 422 395
Eliassen Group, LLC L+4.25 % 4.40 % 11/5/2024 3,017 2,922
Engage2Excel, Inc. L+8.00 % 7.00% Cash/
2.00% PIK 3/7/2023 4,299 4,178
Engage2Excel, Inc. L+8.00 % 7.00% Cash/
2.00% PIK 3/7/2023 776 754
Engage2Excel, Inc. (Revolver) ^(d) L+8.00 % 7.00% Cash/
2.00% PIK 3/7/2023 548 364
GI Revelation Acquisition, LLC L+5.00 % 5.15 % 4/16/2025 1,365 1,344
Legility, LLC L+6.00 % 7.00 % 12/17/2025 4,906 4,735
Orbit Purchaser, LLC L+4.50 % 5.50 % 10/21/2024 2,456 2,407
Orbit Purchaser, LLC L+4.50 % 5.50 % 10/21/2024 1,897 1,859
Orbit Purchaser, LLC L+4.50 % 5.50 % 10/21/2024 555 544
Output Services Group, Inc. L+4.50 % 5.50 % 3/27/2024 4,865 3,648
SIRVA Worldwide, Inc. L+5.50 % 5.65 % 8/4/2025 1,900 1,741
Teneo Holdings, LLC L+5.25 % 6.25 % 7/11/2025 4,938 4,903
The Kleinfelder Group, Inc. L+5.25 % 6.25 % 11/29/2024 2,450 2,450
41,333 39,004
Services: Consumer
Cambium Learning Group, Inc. L+4.50 % 4.75 % 12/18/2025 4,900 4,883
LegalZoom.com, Inc. L+4.50 % 4.65 % 11/21/2024 2,694 2,706
7,594 7,589
Telecommunications
Intermedia Holdings, Inc. L+6.00 % 7.00 % 7/21/2025 1,797 1,795
Mavenir Systems, Inc. L+6.00 % 7.00 % 5/8/2025 3,900 3,893
5,697 5,688
Transportation: Cargo
GlobalTranz Enterprises, LLC L+5.00 % 5.15 % 5/15/2026 3,262 3,050
3,262 3,050
Utilities: Oil & Gas
NGS US Finco, LLC L+4.25 % 5.25 % 10/1/2025 1,712 1,640
NGS US Finco, LLC L+5.25 % 6.25 % 10/1/2025 250 246
1,962 1,886
Wholesale
BMC Acquisition, Inc. L+5.25 % 6.25 % 12/30/2024 4,850 4,802
HALO Buyer, Inc. L+4.50 % 5.50 % 6/30/2025 4,875 4,533
PT Intermediate Holdings III, LLC L+5.50 % 6.50 % 10/15/2025 1,980 1,851
11,705 11,186

TOTAL INVESTMENTS $ 205,695
^(a) ~~All investments are U.S. companies unless otherwise noted.~~
^(b) The majority of the investments bear interest at a rate that may be determined by reference to the London Interbank Offered Rate (“LIBOR” or “L”) or Prime Rate (“Prime” or “P”) which reset daily, monthly, quarterly, or semiannually. For each such investment, we have provided the spread over LIBOR or Prime and the current contractual interest rate in effect at December 31, 2020. Certain investments are subject to a LIBOR or Prime interest rate floor, or rate cap.
^(c) ~~This is an international company.~~
^(d) ~~All or a portion of this commitment was unfunded as of December 31, 2020. As such, interest is earned only on the funded portion of this commitment. Principal reflects the commitment outstanding.~~
^(e) ~~This position was on non-accrual status as of December 31, 2020, meaning that we have ceased accruing interest income on the position.~~

Below is certain summarized financial information for SLF as of March 31, ~~2021~~2022 and December 31, ~~2020~~2021 and for the three months ended March 31, ~~2021~~2022 and ~~2020~~2021 (in thousands):

March 31,
2021 December 31,
2020 March 31, 2022 December 31, 2021
(unaudited) (unaudited)
Assets
Investments, at fair value $ 198,599 $ 205,695 $ 195,254 $ 189,109
Cash 25 351 111 40
Restricted cash 3,136 2,948 5,900 4,862
Interest receivable 714 629 773 600
Other assets 86 43 24 12
Total assets $ 202,560 $ 209,666 202,062 194,623
Liabilities
Revolving credit facility $ 121,614 $ 131,497 120,114 94,765
Less: Unamortized deferred financing costs (1,570 ) (969 ) (2,121 ) (2,319 )
Total debt, less unamortized deferred financing costs 120,044 130,528 117,993 92,446
Payable for open trades 2,895 19,367
Interest payable 91 294 299 242
Accounts payable and accrued expenses 291 277 455 318
Total liabilities 120,426 131,099 121,642 112,373
Members’ capital 82,134 78,567 80,420 82,250
Total liabilities and members’ capital $ 202,560 $ 209,666 $ 202,062 $ 194,623

Three months ended March 31,
2021 2020 Three months ended
March 31,
2022 2021
(unaudited) (unaudited)
Investment income:
Interest income $ 3,453 $ 4,253 $ 3,133 $ 3,453
Total investment income 3,453 4,253 3,133 3,453
Expenses:
Interest and other debt financing expenses 979 1,614 981 979
Professional fees 170 184 172 170
Total expenses 1,149 1,798 1,153 1,149
Net investment income (loss) 2,304 2,455 1,980 2,304
Net gain (loss):
Net change in unrealized gain (loss) 3,663 (22,329 ) (2,010 ) 3,663
Net gain (loss) 3,663 (22,329 ) (2,010 ) 3,663
Net increase (decrease) in members’ capital $ 5,967 $ (19,874 ) $ (30 ) $ 5,967

Related Party Transactions

We have a number of business relationships with affiliated or related parties, including the following:

· We have an Investment Advisory Agreement with MC Advisors, an investment advisor registered with the SEC, to manage our investing activities. We pay MC Advisors a fee for its services under the Investment Advisory Agreement consisting of two components - a base management fee and an incentive fee. See Note 6 to our consolidated financial statements and “Significant Accounting Estimates and Critical Accounting Policies - Capital Gains Incentive Fee” for additional information.

· We have an Administration Agreement with MC Management to provide us with the office facilities and administrative services necessary to conduct our day-to-day operations. See Note 6 to our consolidated financial statements for additional information.

· SLF has an administration agreement with MC Management to provide SLF with certain loan servicing and administrative functions. SLF may reimburse MC Management for its allocable share of overhead and other expenses incurred by MC Management. See Note 3 to our consolidated financial statements and “Liquidity and Capital Resources - MRCC Senior Loan Fund I, LLC” for additional information.

· Theodore L. Koenig, our Chief Executive Officer and Chairman of our Board is also a manager of MC Advisors and the President and Chief Executive Officer of MC Management. Aaron D. Peck, our Chief Financial Officer and Chief Investment Officer, serves as a director on our Board and is also a managing director of MC Management.

· We have a license agreement with Monroe Capital LLC, under which Monroe Capital LLC has agreed to grant us a non-exclusive, royalty-free license to use the name “Monroe Capital” for specified purposes in our business.

In addition, we have adopted a formal code of ethics that governs the conduct of MC Advisors’ officers, directors and employees. Our officers and directors also remain subject to the duties imposed by both the 1940 Act and Maryland General Corporation Law.

Commitments and Contingencies and Off-Balance Sheet Arrangements

Commitments and Contingencies

As of March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, we had outstanding commitments to fund investments under undrawn revolvers, capital expenditure loans, delayed draw commitments and subscription agreements, excluding unfunded commitments in SLF, totaling ~~$50.1~~$54.4 million and ~~$52.3~~$55.5 million, respectively. As of both March 31, 2021 and December 31, ~~2020,~~2021, we had unfunded commitments to SLF of $7.8 million that may be contributed primarily for the purpose of funding new investments approved by the SLF investment committee. Drawdowns of the commitments to SLF require authorization from one of our representatives on SLF’s board of managers. Additionally, we have entered into certain contracts with other parties that contain a variety of indemnifications. Our maximum exposure under these arrangements is unknown. However, we have not experienced claims or losses pursuant to these contracts and believe the risk of loss related to such indemnifications to be remote.
Off-Balance Sheet Arrangements
Other than contractual commitments and other legal contingencies incurred in the normal course of our business, we do not have any off-balance sheet financings or liabilities.

Market Trends

In late 2019 and early 2020, COVID-19 emerged in China and spread rapidly across the world, including to the United States. This outbreak has led to disruptions in local, regional, national and global markets and economies affected thereby and will continue to cause disruptions for an unknown and potentially significant amount of time. To date, cross border commercial activity and market sentiment have been negatively impacted by the outbreak and government and other measures seeking to contain its spread. The federal government and the Federal Reserve, as well as foreign governments and central banks, have implemented significant fiscal and monetary policies in response to these disruptions, and additional government and regulatory responses may be possible. It is currently impossible to determine the scope of this or any future outbreak, how long any such outbreak and market disruption, volatility or uncertainty may last, the effect any governmental actions and changes in base interest rates will have or the full potential impact on us, our industry and our portfolio companies.
We have ~~also~~ identified the following general trends that may affect our business:
Target Market: We believe that small and middle-market companies in the United States with annual revenues between $10.0 million and $2.5 billion represent a significant growth segment of the U.S. economy and often require substantial capital investments to grow. Middle-market companies have generated a significant number of investment opportunities for investment funds managed or advised by Monroe Capital, and we believe that this market segment will continue to produce significant investment opportunities for us.

Specialized Lending Requirements: We believe that several factors render many U.S. financial institutions ill-suited to lend to U.S. middle-market companies. For example, based on the experience of our management team, lending to U.S. middle-market companies (1) is generally more labor intensive than lending to larger companies due to the smaller size of each investment and the fragmented nature of information for such companies, (2) requires due diligence and underwriting practices consistent with the demands and economic limitations of the middle-market and (3) may also require more extensive ongoing monitoring by the lender.

Demand for Debt Capital: We believe there is a large pool of uninvested private equity capital for middle-market companies. We expect private equity firms will seek to leverage their investments by combining equity capital with senior secured loans and mezzanine debt from other sources, such as us.

Competition from Other Lenders: We believe that many traditional bank lenders, in recent years, de-emphasized their service and product offerings to middle-market businesses in favor of lending to large corporate clients and managing capital market transactions. In addition, many commercial banks face significant balance sheet constraints as they seek to build capital and meet future regulatory capital requirements. These factors may result in opportunities for alternative funding sources to middle-market companies and therefore drive increased new investment opportunities for us. Conversely, there has been a significant amount of capital raised over the past several years dedicated to middle market lending which has increased competitive pressure in the BDC and investment company marketplace for senior and subordinated debt, which in turn could result in lower yields and weaker financial covenants for new assets.

Pricing and Deal Structures: We believe that the volatility in global markets over the last several years and current macroeconomic issues including changes in bank regulations for middle-market banks has reduced access to, and availability of, debt capital to middle-market companies, causing a reduction in competition and generally more favorable capital structures and deal terms. ~~Recent~~Sizable recent capital raises in the ~~BDC and investment company~~private debt marketplace have created significantly increased ~~competition;~~competition over the last few years, reducing available pricing and creating less favorable capital structures; however, we believe that current market conditions for our target market may continue to create favorable opportunities to invest at attractive risk-adjusted returns.

Market Environment: We believe middle market investments are attractive in uncertain market environments such as the current market environment following the COVID-19 outbreak that began in late 2019 and early 2020, and that these investments have historically generated considerable yield premia with more favorable capital structures for lenders when compared to the market for large corporate loans.⁽¹⁾On the other hand, we believe that the increased competition for direct lending to middle market businesses could result in less favorable pricing terms for our potential investments. If pricing, terms and structures weaken, we would expect to experience decreased net interest income, lower yields and increased risk of credit loss. However, we believe that Monroe Capital’s scale, product suite, entrenched relationships and strong market position will continue to allow us to find investment opportunities with attractive risk-adjusted returns.

⁽¹⁾ Standard & Poor’s “LCD Middle Market Review Q4 2021” – New-issue first-lien yield-to-maturity. Middle Market loans have, on average, generated higher yields in comparison to large corporate loans based on data starting in the fourth quarter of 2005.
Significant Accounting Estimates and Critical Accounting Policies
Revenue Recognition

We record interest and fee income on an accrual basis to the extent that we expect to collect such amounts. For loans and debt securities with contractual PIK interest, we do not accrue PIK interest if the portfolio company valuation indicates that such PIK interest is not collectible. We do not accrue as a receivable interest on loans and debt securities if we have reason to doubt our ability to collect such interest. Loan origination fees, original issue discount and market discount or premium are capitalized, and then we amortize such amounts using the effective interest method as interest income over the life of the investment. Upon the prepayment of a loan or debt security, any unamortized premium or discount or loan origination fees are recorded as interest income. We record prepayment premiums on loans and debt securities as interest income when we receive such amounts. Interest income is accrued based upon the outstanding principal amount and contractual terms of debt and preferred equity investments. Interest is accrued on a daily basis. We record fees on loans based on the determination of whether the fee is considered a yield enhancement or payment for a service. If the fee is considered a yield enhancement associated with a funding of cash on a loan, the fee is generally deferred and recognized into interest income using the effective interest method if captured in the cost basis or using the straight-line method if the loan is unfunded and therefore there is no cost basis. If the fee is not considered a yield enhancement because a service was provided, and the fee is payment for that service, the fee is deemed earned and recognized as fee income in the period the service has been completed.

Dividend income on preferred equity securities is recorded as dividend income on an accrual basis to the extent that such amounts are payable by the portfolio company and are expected to be collected. Dividend income on common equity securities is recorded on the record date for private portfolio companies. Each distribution received from LLC and LP investments is evaluated to determine if the distribution should be recorded as dividend income or a return of capital. Generally, we will not record distributions from equity investments in LLCs and LPs as dividend income unless there are sufficient accumulated tax-basis earnings and profits in the LLC or LP prior to the distribution. Distributions that are classified as a return of capital are recorded as a reduction in the cost basis of the investment.
Valuation of Portfolio Investments

As a BDC, we generally invest in illiquid securities including debt and, to a lesser extent, equity securities of middle-market companies. Under procedures established by our Board, we value investments for which market quotations are readily available and within a recent date at such market quotations. When doing so, we determine whether the quote obtained is sufficient in accordance with generally accepted accounting principles in the United States of America to determine the fair value of the security. Debt and equity securities that are not publicly traded or whose market prices are not readily available or whose market prices are not regularly updated are valued at fair value as determined in good faith by our Board. Such determination of fair values may involve subjective judgments and estimates. Investments purchased within 60 days of maturity are valued at cost plus accreted discount, or minus amortized premium, which approximates fair value.

Our Board is ultimately and solely responsible for determining the fair value of the portfolio investments that are not publicly traded, whose market prices are not readily available on a quarterly basis in good faith or in any other situation where portfolio investments require a fair value determination. Because we expect that there will not be a readily available market for many of the investments in our portfolio, we expect to value many of our portfolio investments at fair value as determined in good faith by our Board using a documented valuation policy and a consistently applied valuation process. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of our investments may differ significantly from the values that would have been used had a readily available market value existed for such investments, and the differences could be material.

With respect to investments for which market quotations are not readily available, our Board undertakes a multi-step valuation process each quarter, as described below:

· the quarterly valuation process begins with each portfolio company or investment being initially evaluated and rated by the investment professionals of MC Advisors responsible for the credit monitoring of the portfolio investment;

· our Board engages one or more independent valuation firm(s) to conduct independent appraisals of a selection of investments for which market quotations are not readily available. We will consult with independent valuation firm(s) relative to each portfolio company at least once in every calendar year, but the independent appraisals are generally received quarterly for each investment;

· to the extent an independent valuation firm is not engaged to conduct an investment appraisal on an investment for which market quotations are not readily available, the investment will be valued by the MC Advisors investment professional responsible for the credit monitoring;

· preliminary valuation conclusions are then documented and discussed with the investment committee of MC Advisors;

· the audit committee of our Board reviews the preliminary valuations of MC Advisors and of the independent valuation firm(s) and MC Advisors adjusts or further supplements the valuation recommendations to reflect any comments provided by the audit committee; and

· our Board discusses these valuations and determines the fair value of each investment in the portfolio in good faith, based on the input of MC Advisors, the independent valuation firm(s) and the audit committee.
We generally use the income approach to determine fair value for loans where market quotations are not readily available, as long as it is appropriate. If there is deterioration in credit quality or a debt investment is in workout status, we may consider other factors in determining the fair value, including the value attributable to the debt investment from the enterprise value of the portfolio company or the proceeds that would be received in a liquidation analysis. This liquidation analysis may also include probability weighting of alternative outcomes. We generally consider our debt to be performing if the borrower is not in default, the borrower is remitting payments in a timely manner, the loan is in covenant compliance and the loan is otherwise not deemed to be impaired. In determining the fair value of the performing debt, we consider fluctuations in current interest rates, the trends in yields of debt instruments with similar credit ratings, financial condition of the borrower, economic conditions and other relevant factors, both qualitative and quantitative. In the event that a debt instrument is not performing, as defined above, we will evaluate the value of the collateral utilizing the same framework described above for a performing loan to determine the value of the debt instrument.

Under the income approach, discounted cash flow models are utilized to determine the present value of the future cash flow streams of our debt investments, based on future interest and principal payments as set forth in the associated loan agreements. In determining fair value under the income approach, we also consider the following factors: applicable market yields and leverage levels, credit quality, prepayment penalties, the nature and realizable value of any collateral, the portfolio company’s ability to make payments, and changes in the interest rate environment and the credit markets that generally may affect the price at which similar investments may be made.
58

Under the market approach, the enterprise value methodology is typically utilized to determine the fair value of an investment. There is no one methodology to estimate enterprise value and, in fact, for any one portfolio company, enterprise value is generally best expressed as a range of values, from which we derive a single estimate of enterprise value. In estimating the enterprise value of a portfolio company, we analyze various factors consistent with industry practice, including but not limited to original transaction multiples, the portfolio company’s historical and projected financial results, applicable market trading and transaction comparables, applicable market yields and leverage levels, the nature and realizable value of any collateral, the markets in which the portfolio company does business, and comparisons of financial ratios of peer companies that are public. Typically, the enterprise values of private companies are based on multiples of earnings before interest, income taxes, depreciation and amortization (“EBITDA”), cash flows, net income, revenues, or in limited cases, book value.

In addition, for certain debt investments, we may base our valuation on indicative bid and ask prices provided by an independent third-party pricing service. Bid prices reflect the highest price that we and others may be willing to pay. Ask prices represent the lowest price that we and others may be willing to accept. We generally use the midpoint of the bid/ask range as our best estimate of fair value of such investment.

As of March 31, ~~2021,~~2022, our Board determined, in good faith, the fair value of our investment portfolio in accordance with GAAP and our valuation procedures based on the facts and circumstances known by us at that time, or reasonably expected to be known at that time. Due to the overall volatility that the COVID-19 pandemic has caused, any valuations conducted in the future in conformity with GAAP could result in a lower fair value of our portfolio. The potential impact of COVID-19 on our results going forward will depend to a large extent on future developments or new information that may emerge regarding the full duration and severity of COVID-19 including the actions taken by governments and other entities to contain COVID-19 or treat its impact, all of which are beyond our control. Accordingly, we cannot predict the extent to which our financial condition and results of operations will be affected at this time.
Net Realized Gain or Loss and Net Change in Unrealized Gain or Loss

We measure realized gain or loss by the difference between the net proceeds from the sale and the amortized cost basis of the investment, without regard to unrealized gain or loss previously recognized. Net change in unrealized gain or loss reflects the change in portfolio investment values during the reporting period, including any reversal of previously recorded unrealized gain or loss, when gain or loss is realized. Additionally, we do not isolate the portion of the change in fair value resulting from foreign currency exchange rate fluctuations from the changes in fair values of the underlying investment. All fluctuations in fair value are included in net change in unrealized gain (loss) on our consolidated statements of operations. The impact resulting from changes in foreign exchange rates on the revolving credit facility borrowings is included in net change in unrealized gain (loss) on foreign currency and other transactions.

Capital Gains Incentive Fee

Pursuant to the terms of the Investment Advisory Agreement with MC Advisors, the incentive fee on capital gains earned on liquidated investments of our portfolio is determined and payable in arrears as of the end of each calendar year (or upon termination of the Investment Advisory Agreement). This fee equals 20% of our incentive fee capital gains (i.e., our realized capital gains on a cumulative basis from inception, calculated as of the end of the applicable period, net of all realized capital losses and unrealized capital depreciation on a cumulative basis), less the aggregate amount of any previously paid capital gains incentive fees. On a quarterly basis, we accrue for the capital gains incentive fee by calculating such fee as if it were due and payable as of the end of such period.

While the Investment Advisory Agreement with MC Advisors neither includes nor contemplates the inclusion of unrealized gains in the calculation of the capital gains incentive fee, pursuant to an interpretation of an American Institute for Certified Public Accountants Technical Practice Aid for investment companies, we include unrealized gains in the calculation of the capital gains incentive fee expense and related accrued capital gains incentive fee. This accrual reflects the incentive fees that would be payable to MC Advisors if our entire portfolio was liquidated at its fair value as of the balance sheet date even though MC Advisors is not entitled to an incentive fee with respect to unrealized gains unless and until such gains are actually realized.

During the three months ended March 31, ~~2021~~2022 and ~~2020,~~2021, we did not have any further reductions in accrued capital gains incentive fees as they were already at zero, primarily as a result of accumulated realized and unrealized losses on the portfolio.
New Accounting Pronouncements

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (“ASU 2020-04”). The amendments in ASU 2020-04 provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The standard is effective as of March 12, 2020 through December 31, 2022. ~~Management is currently evaluating the impact of the optional guidance on our consolidated financial statements and disclosures.~~ We did not utilize the optional expedients and exceptions provided by ASU 2020-04 during the three months ended March 31, ~~2021.~~2022.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are subject to financial market risks, including changes in interest rates and the valuations of our investment portfolio. Uncertainty with respect to the economic effects of the COVID-19 outbreak ~~has~~and the Russian invasion of Ukraine have introduced significant volatility in the financial markets, and the effects of this volatility could materially impact our market risks. For additional information concerning the COVID-19 pandemic and ~~its~~the Russian invasion of Ukraine and their potential impact on our business and our operating results, see Part II – Other Information, Item 1A. Risk Factors, ~~“Risk Factors~~“Risks Relating to Our Business and Structure – The COVID-19 pandemic has caused severe disruptions in the global economy, which has had, and may continue to have, a negative impact on our portfolio companies and our business and ~~operations.~~operations” and “The Russian invasion of Ukraine may have a material adverse impact on us and our portfolio companies.”

The majority of the loans in our portfolio have floating interest rates, and we expect that our loans in the future may also have floating interest rates. These loans are usually based on a floating LIBOR and typically have interest rate re-set provisions that adjust applicable interest rates under such loans to current market rates on a monthly or quarterly basis. The majority of the loans in our current portfolio have interest rate floors which will effectively convert the loans to fixed rate loans in the event interest rates decrease. In addition, our revolving credit facility has a floating interest rate provision, whereas our SBA debentures and the 2026 Notes have fixed interest rates until maturity. We expect that other credit facilities into which we may enter in the future may also have floating interest rate provisions.

The United Kingdom’s Financial Conduct Authority, which regulates LIBOR, has announced that it intends to phase out LIBOR by the end of 2021. It is unclear if at that time LIBOR will cease to exist or if new methods of calculating LIBOR will be established such that it continues to exist after 2021. At this time, it is not possible to predict the effect of any such changes, any establishment of alternative reference rates or any other reforms to LIBOR that may be enacted. The elimination of LIBOR or any other changes or reforms to the determination or supervision of LIBOR could have an adverse impact on the market for or value of any LIBOR-linked securities, loans, and other financial obligations or extensions of credit held by or due to us or on our overall financial condition or results of operations. In addition, if LIBOR ceases to exist, we may need to renegotiate agreements extending beyond 2021 with our portfolio companies that utilize LIBOR as a factor in determining the interest rate, in order to replace LIBOR with the new standard that is established, which may have an adverse effect on our overall financial condition or results of operations. Following the replacement of LIBOR, some or all of these agreements may bear interest a lower interest rate, which could have an adverse impact on our results of operations. Moreover, if LIBOR ceases to exist, we may need to renegotiate certain terms of our credit facilities. If we are unable to do so, amounts drawn under our credit facilities may bear interest at a higher rate, which would increase the cost of our borrowings and, in turn, affect our results of operations.
Assuming that the consolidated statement of assets and liabilities as of March 31, ~~2021~~2022 was to remain constant and that we took no actions to alter our existing interest rate sensitivity, the following table shows the annualized impact of hypothetical base rate changes in interest rates (in thousands):

Increase
(decrease) in Increase
(decrease) in Net increase
(decrease) in net Increase
(decrease) in Increase
(decrease) in Net increase
(decrease) in net
Change in Interest Rates interest income interest expense investment income interest income interest expense investment income
Down 25 basis points $ — $ (9 ) $ 9 $ (58) $ — $ (58 )
Up 100 basis points 538 568 (30 ) 1,706 1,793 (87 )
Up 200 basis points 4,595 1,497 3,098 5,937 3,676 2,261
Up 300 basis points 8,881 2,425 6,456 10,193 5,559 4,634

Although we believe that this analysis is indicative of our existing sensitivity to interest rate changes, it does not adjust for changes in the credit market, credit quality, the size and composition of the assets in our portfolio and other business developments, including borrowing under the credit facility or other borrowings that could affect net increase in net assets resulting from operations, or net income. Accordingly, we can offer no assurances that actual results would not differ materially from the analysis above.

We may in the future hedge against interest rate fluctuations by using standard hedging instruments such as futures, options and forward contracts to the extent permitted under the 1940 Act and applicable commodities laws. While hedging activities may insulate us against adverse changes in interest rates, they may also limit our ability to participate in the benefits of lower interest rates with respect to the investments in our portfolio with fixed interest rates or interest rate floors.

We may also have exposure to foreign currencies (currently the Great Britain pound and Australian dollar) related to certain investments. Such investments are translated into U.S. dollars based on the spot rate at each balance sheet date, exposing us to movements in the exchange rate. In order to reduce our exposure to fluctuations in exchange rates, we ~~generally~~may borrow in ~~Great Britain pounds~~foreign currency under our revolving credit facility to finance such ~~investments. As of March 31, 2021,~~investments or we ~~have non-U.S. dollar borrowings denominated in Great Britain pounds of £16.1 million ($22.2 million U.S. dollars) outstanding under the revolving credit facility. We~~ may ~~also~~ enter into foreign currency forward ~~contracts to mitigate foreign currency exposure.~~contracts. As of March 31, ~~2021,~~2022, we had foreign currency forward contracts in place for ~~£1.6~~£0.1 million and AUD ~~14.5~~18.7 million associated with future principal and interest payments on certain investments.

ITEM 4. CONTROLS AND PROCEDURES

In accordance with Rules 13a-15(b) and 15d-15(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), we, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, carried out an evaluation of the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e) of the Exchange Act). Based on that evaluation, our management, including the Chief Executive Officer and Chief Financial Officer, concluded that, at the end of the period covered by our Quarterly Report on Form 10-Q, our disclosure controls and procedures were effective and provided reasonable assurance that information required to be disclosed in our periodic SEC filings is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Notwithstanding the foregoing, a control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that it will detect or uncover failures within the Company to disclose material information otherwise required to be set forth in the Company’s periodic reports.

No change occurred in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) during the three months ended March 31, ~~2021~~2022 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II

OTHER INFORMATION
Item 1. Legal Proceedings

Neither we, our subsidiaries nor our investment adviser are currently subject to any material legal proceedings.

Item 1A. Risk Factors

In addition to the other information set forth in this report, you should carefully consider the risk factors disclosed in our Annual Report on Form 10-K for the year ended December 31, ~~2020~~2021 filed with the SEC on March 2, ~~2021,~~2022, which could materially affect our business, financial condition and/or operating results. The risks described in our Annual Report on Form 10-K are not the only risks facing us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially and adversely affect our business, financial condition and/or operating results. Other than as set forth below, there have been no material changes during the three months ended March 31, ~~2021~~2022 to the risk factors discussed in Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, ~~2020.~~2021.
The Russian invasion of Ukraine may have a material adverse impact on us and our portfolio companies.
On February 24, 2022, the President of Russia, Vladimir Putin, announced a military invasion of Ukraine. In response, countries worldwide, including the United States, have imposed sanctions against Russia on certain businesses and individuals, including, but not limited to, those in the banking, import and export sectors. This invasion has led, is currently leading, and for an unknown period of time will continue to lead to disruptions in local, regional, national, and global markets and economies affected thereby. These disruptions caused by the invasion have included, and may continue to include, political, social, and economic disruptions and uncertainties that may affect our business operations or the business operations of our portfolio companies.

The COVID-19 pandemic has caused severe disruptions in the global economy, which has had, and may continue to have, a negative impact on our portfolio companies and our business and operations.

In late 2019 and early 2020, COVID-19 emerged in China and spread rapidly to across the world, including to the United States. This outbreak has led and for an unknown period of time will continue to lead to disruptions in local, regional, national and global markets and economies affected thereby. With respect to the U.S. credit markets (in particular for middle market loans), this outbreak has resulted in, and until fully resolved is likely to continue to result in, the following among other things: (i) government imposition of various forms of “stay at home” orders and the closing of “non-essential” businesses, resulting in significant disruption to the businesses of many middle-market loan borrowers including supply chains, demand and practical aspects of their operations, as well as in lay-offs of employees, and, while these effects are hoped to be temporary, some effects could be persistent or even permanent; (ii) increased draws by borrowers on revolving lines of credit; (iii) increased requests by borrowers for amendments and waivers of their credit agreements to avoid default, increased defaults by such borrowers and/or increased difficulty in obtaining refinancing at the maturity dates of their loans; (iv) volatility and disruption of these markets including greater volatility in pricing and spreads and difficulty in valuing loans during periods of increased volatility, and liquidity issues; and (v) rapidly evolving proposals and/or actions by state and federal governments to address problems being experienced by the markets and by businesses and the economy in general that will not necessarily adequately address the problems facing the loan market and middle market businesses. This outbreak is having, and any future outbreaks could have, an adverse impact on our portfolio companies and us and on the markets and the economy in general, and that impact could be material. Such effects will likely continue for the duration of the pandemic, which is uncertain, and for some period thereafter. It is impossible to determine the scope of the COVID-19 pandemic, or any future outbreaks, how long any such outbreak, market disruption or uncertainties may last, the effect any governmental actions will have or the full potential impact on us, MC Advisors and our portfolio companies.

The COVID-19 pandemic (including the preventative measures taken in response thereto) has to date (i) created significant business disruption issues for certain of our portfolio companies, and (ii) adversely impacted the value and performance of certain of our portfolio companies. The COVID-19 pandemic is continuing as of the filing date of this Quarterly Report, and its extended duration may have further adverse impacts on our portfolio companies after March 31, ~~2021,~~2022, including for the reasons described below. As a result of this disruption and the pressures on their liquidity, certain of our portfolio companies have been, or may continue to be, incentivized to draw on most, if not all, of the unfunded portion of any revolving or delayed draw term loans made by us, subject to availability under the terms of such loans.

The effects described above on our portfolio companies have, for certain of our portfolio companies to date, impacted their ability to make payments on their loans on a timely basis and in some cases have required us to amend certain terms, including payment terms. In addition, an extended duration of the COVID-19 pandemic may impact the ability of our portfolio companies to continue making their loan payments on a timely basis or meeting their loan covenants. The inability of portfolio companies to make timely payments or meet loan covenants may in the future require us to undertake similar amendment actions with respect to other of our investments or to restructure our investments. The amendment or restructuring of our investments may include the need for us to make additional investments in our portfolio companies (including debt or equity investments) beyond any existing commitments, exchange debt for equity, or change the payment terms of our investments to permit a portfolio company to pay a portion of its interest through payment-in-kind, which would defer the cash collection of such interest and add it to the principal balance, which would generally be due upon repayment of the outstanding principal.

IfAs a result of the economy is unable to substantially reopen, and high levels of unemployment continue for an extended period of time, loan delinquencies, loan non-accruals, problem assets, and bankruptcies may increase. In addition,COVID-19 pandemic, collateral for our loans may decline in value, which could cause loan losses to increase and the net worth and liquidity of loan guarantors could decline, impairing their ability to honor commitments to us. An increase in loan delinquencies and non-accruals or a decrease in loan collateral and guarantor net worth could result in increased costs and reduced income, which would have a material adverse effect on our business, financial condition or results of operations.

The COVID-19 pandemic has adversely impacted the fair value of certain of our investments as of March 31, ~~2021~~2022 and the values assigned as of this date may differ materially from the values that we may ultimately realize with respect to our investments. Our Board approved the fair value of our investment portfolio as of March 31, ~~2021~~2022 and these valuations were determined in good faith in accordance with our valuation policy based on information known or knowable as of the valuation date. As a result, the long term impacts of the COVID-19 pandemic may not yet be fully reflected in the valuation of our investments and the fair value of our portfolio investments may be further negatively impacted after March 31, ~~2021~~2022 by circumstances and events that are not yet known, including the complete or continuing impact of the COVID-19 pandemic and the resulting measures taken in response thereto. In addition, write downs in the value of our investments have reduced, and any additional write downs may further reduce, our net asset value (and, as a result, our asset coverage calculation). Accordingly, we may continue to incur additional net unrealized losses or may incur realized losses after March 31, ~~2021,~~2022, which could have a material adverse effect on our business, financial condition and results of operations.

The volatility and disruption to the global economy from the COVID-19 pandemic has affected, and may continue to affect, the pace of our investment activity, which may have a material adverse impact on our results of operations. Such volatility and disruption have also led to the increased credit spreads in the private debt capital markets.

Further, from an operational perspective, MC Advisors’ investment professionals are currently partially working remotely. An extended period of remote work arrangements could strain our business continuity plans, introduce operational risk, including but not limited to cybersecurity risks, and impair our ability to manage our business. In addition, we are highly dependent on third party service providers for certain communication and information systems. As a result, we rely upon the successful implementation and execution of the business continuity planning of such providers in the current environment. If one or more of these third parties to whom we outsource certain critical business activities experience operational failures as a result of the impacts from the spread of COVID-19, or claim that they cannot perform due to a force majeure, it may have a material adverse effect on our business, financial condition, results of operations, liquidity and cash flows.

The 1940 Act allows us to incur additional leverage, which could increase the risk of investing in us.
The 1940 Act generally prohibits us from incurring indebtedness unless immediately after such borrowing we have an asset coverage for total borrowings of at least 200% (i.e., the amount of debt may not exceed ~~50%~~half of the value of our total assets). However, under the Small Business Credit Availability Act (the “SBCAA”), which became law in March 2018, BDCs have the ability to elect to become subject to a lower asset coverage requirement of 150% (i.e., the amount of debt may not exceed two-thirds of the value of our total assets), subject to the receipt of the requisite board or stockholder approvals under the SBCAA and satisfaction of certain other conditions.

On June 20, 2018, our stockholders approved the application of the modified asset coverage requirements, as approved by our board of directors on March 27, 2018, and we became subject to the 150% minimum asset coverage ratio, effective June 21, 2018.

Leverage is generally considered a speculative investment technique and may increase the risk of investing in our securities. Leverage magnifies the potential for loss on investments in our indebtedness and on invested equity capital. As we use leverage to partially finance our investments, you will experience increased risks of investing in our securities. If the value of our assets increases, then leveraging would cause the net asset value attributable to our common stock to increase more sharply than it would have had we not leveraged. Conversely, if the value of our assets decreases, leveraging would cause net asset value to decline more sharply than it otherwise would have had we not leveraged our business. Similarly, any increase in our income in excess of interest payable on the borrowed funds would cause our net investment income to increase more than it would without the leverage, while any decrease in our income would cause net investment income to decline more sharply than it would have had we not borrowed. Such a decline could negatively affect our ability to pay distributions, scheduled debt payments or other payments related to our securities. The effects of leverage would cause any decrease in net asset value for any losses to be greater than any increase in net asset value for any corresponding gains. If we incur additional leverage, you will experience increased risks of investing in our common stock.

We maintain a revolving credit facility and use other borrowed funds to make investments or fund our business operations, which exposes us to risks typically associated with leverage and increases the risk of investing in us.

We maintain a revolving credit facility, have issued debt securities and may borrow money, including through the issuance of additional debt securities or preferred stock, to leverage our capital structure, which is generally considered a speculative investment technique. As a result:

· our common stock is exposed to an increased risk of loss because a decrease in the value of our investments would have a greater negative impact on the value of our common stock than if we did not use leverage;

· if we do not appropriately match the assets and liabilities of our business, adverse changes in interest rates could reduce or eliminate the incremental income we make with the proceeds of any leverage;

· our ability to pay distributions on our common stock may be restricted if our asset coverage ratio, as provided in the 1940 Act, is not at least 150% and any amounts used to service indebtedness or preferred stock would not be available for such distributions;

· any credit facility is subject to periodic renewal by its lenders, whose continued participation cannot be guaranteed;

· our revolving credit facility with ING Capital LLC, as agent, is, and any other credit facility we may enter into would be, subject to various financial and operating covenants, including that our portfolio of investments satisfies certain eligibility and concentration limits as well as valuation methodologies;

· such securities would be governed by an indenture or other instrument containing covenants restricting our operating flexibility;

· we bear the cost of issuing and paying interest or distributions on such securities, which costs are entirely borne by our common stockholders; and

· any convertible or exchangeable securities that we issue may have rights, preferences and privileges more favorable than those of our common stock.

The following table illustrates the effect of leverage on returns from an investment in our common stock assuming various annual returns, net of expenses. The calculations in the table below are hypothetical and actual returns may be higher or lower than those appearing in the table below.

62
Assumed Return on Our Portfolio
(Net of Expenses) ⁽¹⁾
-10% -5% 0% 5% 10%
Corresponding return to common stockholder ⁽²⁾⁽³⁾ -28.81 % -16.98 % -5.15 % 6.69 % 18.52 %

Assumed Return on Our Portfolio
(Net of Expenses) ⁽¹⁾

-10% -5% 0% 5% 10%
Corresponding return to common stockholder ⁽²⁾⁽³⁾ -31.02 % -18.54 % -6.06 % 6.42 % 18.90 %

⁽¹⁾ The assumed return on our portfolio is required by regulation of the SEC to assist investors in understanding the effects of leverage and is not a prediction of, and does not represent, our projected or actual performance.
⁽²⁾ Assumes ~~$585.1~~$590.5 million in total assets, ~~$350.7~~$341.0 million in debt outstanding, of which ~~$235.6~~$281.0 million is senior securities outstanding, ~~$234.4~~$249.5 million in net assets and an average cost of funds of ~~4.05%~~3.77%, which was the weighted average interest rate of borrowing on our revolving credit facility, SBA debentures and ~~2023~~2026 Notes as of December 31, ~~2020.~~2021. The interest rate on our revolving credit facility is a variable rate. Actual interest payments may be different.
⁽³⁾ In order for us to cover our annual interest payments on indebtedness, we must achieve annual returns on our December 31, ~~2020~~2021 total portfolio assets of at least ~~2.43%~~2.17%.
We are subject to risks associated with our revolving credit facility and the terms of our revolving credit facility may contractually limit our ability to incur additional indebtedness.
Our revolving credit facility, as amended, imposes certain conditions that may limit the amount of our distributions to stockholders. Distributions payable in our common stock under our dividend reinvestment plan are not limited by the revolving credit facility. Distributions in cash or property other than our common stock are generally limited to 115% of the amount of distributions required to maintain our ability to be subject to taxation as a RIC. We are required under the revolving credit facility to maintain our ability to be subject to taxation as a RIC.

The revolving credit facility requires us to comply with certain financial and operational covenants, including asset coverage ratios and a minimum net worth. For example, the revolving credit facility requires that we maintain an asset coverage ratio of at least 1.5 to 1 and a senior debt coverage ratio of at least 2 to 1 at all times. We may divert cash to pay the lenders in amounts sufficient to cause these tests to be satisfied. Our compliance with these covenants depends on many factors, some of which, such as market conditions, are beyond our control.

Our ability to sell our investments is also limited under the revolving credit facility. Under the revolving credit facility, the sale of any portfolio investment may not cause our covered debt amount to exceed our borrowing base. As a result, there may be times or circumstances during which we are unable to sell investments, pay distributions or take other actions that might be in our best interests.

Availability of borrowings under the revolving credit facility is linked to the valuation of the collateral pursuant to a borrowing base mechanism. As such, declines in the fair market value of our investments which are collateral to the revolving credit facility may reduce availability under our revolving credit facility.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

None.

Item 5. Other Information

None.

63
72

Item 6. Exhibits

Exhibit
Number Description of Document

3.1 Amended and Restated Articles of Incorporation of Monroe Capital Corporation (Incorporated by reference to Exhibit (a)(1) of the Registrant’s Pre-Effective Amendment No. 8 to the Registration Statement on Form N-2 (File No. 333-172601) filed on October 18, 2012)

3.2 Bylaws of Monroe Capital Corporation (Incorporated by reference to Exhibit (b)(1) of the Registrant’s Pre-Effective Amendment No. 8 to the Registration Statement on Form N-2 (File No. 333-172601) filed on October 18, 2012)

~~4.1~~ Second Supplemental Indenture by and between the Registrant and U.S. Bank National Association, as trustee (Incorporated by reference to Exhibit 4.1 of the Registrant’s Current Report on Form 8-K (File No. 814-00866) filed on January 25, 2021)
~~4.2~~ Form of Global Note with respect to the 4.75% Notes due 2026 (Incorporated by reference to Exhibit 4.1 of the Registrant’s Current Report on Form 8-K (File No. 814-00866) filed on January 25, 2021, and Exhibit A therein)
31.1 Certification of Chief Executive Officer pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)

31.2 Certification of Chief Financial Officer pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)

32.1 Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith)

64

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: May ~~4, 2021~~3, 2022 By /s/ Theodore L. Koenig
Theodore L. Koenig
Chairman, Chief Executive Officer and Director
(Principal Executive Officer)
Monroe Capital Corporation

Date: May ~~4, 2021~~3, 2022 By /s/ Aaron D. Peck
Aaron D. Peck
Chief Financial Officer, Chief Investment Officer and Director
(Principal Financial and Accounting Officer)
Monroe Capital Corporation

65

Maryland		27-4895840
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)

311 South Wacker Drive, Suite 6400 Chicago, Illinois		60606
(Address of Principal Executive Office)		(Zip Code)

Title of Each Class		Trading Symbol(s)		Name of Each Exchange on Which Registered
Common Stock, par value $0.001 per share		MRCC		The Nasdaq Global Select Market

Large accelerated filer	¨	Accelerated filer	¨

Non-accelerated filer	x	Smaller reporting company	¨

Emerging growth company	¨

		Page
PART I. FINANCIAL INFORMATION		3

Item 1.	Consolidated Financial Statements	3

	Consolidated Statements of Assets and Liabilities as of March 31, ~~2021~~2022 (unaudited) and December 31, ~~2020~~2021	3

	Consolidated Statements of Operations for the three months ended March 31, ~~2021~~2022 and ~~2020~~2021 (unaudited)	4

	Consolidated Statements of Changes in Net Assets for the three months ended March 31, ~~2021~~2022 and ~~2020~~2021 (unaudited)	5

	Consolidated Statements of Cash Flows for the three months ended March 31, ~~2021~~2022 and ~~2020~~2021 (unaudited)	6

	Consolidated Schedules of Investments as of March 31, ~~2021~~2022 (unaudited) and December 31, ~~2020~~2021	7

	Notes to Consolidated Financial Statements (unaudited)	2125

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	4349

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	6068

Item 4.	Controls and Procedures	6068

PART II. OTHER INFORMATION		6169

Item 1.	Legal Proceedings	6169

Item 1A.	Risk Factors	6169

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	6372

Item 3.	Defaults Upon Senior Securities	6372

Item 4.	Mine Safety Disclosures	6372

Item 5.	Other Information	6372

Item 6.	Exhibits	6473

Signatures		6574

	March 31, 2021			December 31, 2020			March 31, 2022			December 31, 2021
	(unaudited)						(unaudited)
ASSETS
Investments, at fair value:
Non-controlled/non-affiliate company investments	$	372,493		$	398,040		$	414,135		$	430,287
Non-controlled affiliate company investments		107,819			109,715			91,644			90,281
Controlled affiliate company investments		41,067			39,284			40,210			41,125
Total investments, at fair value (amortized cost of: $565,821 and $596,103, respectively)		521,379			547,039
Total investments, at fair value (amortized cost of: $563,635 and $576,178, respectively)								545,989			561,693
Cash		7,723			6,769			7,337			2,622
Restricted cash		8,165			25,657			—			15,459
Unrealized gain on foreign currency forward contracts		221			—			365			781
Interest receivable		5,944			4,606			10,431			9,476
Other assets		1,041			1,052			720			427
Total assets		544,473			585,123			564,842			590,458

LIABILITIES
Debt:
Revolving credit facility		92,891			126,559			188,300			151,045
2023 Notes		—			109,000
2026 Notes		130,000			—			130,000			130,000
SBA debentures payable		86,900			115,000			—			56,900
Total debt		309,791			350,559			318,300			337,945
Less: Unamortized deferred financing costs		(7,715	)		(7,052	)		(4,154	)		(5,794	)
Total debt, less unamortized deferred financing costs		302,076			343,507			314,146			332,151
Interest payable		1,809			2,764			1,203			3,304
Unrealized loss on foreign currency forward contracts		—			113
Management fees payable		2,334			1,978			2,288			2,454
Incentive fees payable		193			—			—			435
Accounts payable and accrued expenses		1,863			2,327			2,269			2,643
Directors' fees payable		35			—			35			—
Total liabilities		308,310			350,689			319,941			340,987
Net assets	$	236,163		$	234,434		$	244,901		$	249,471

Commitments and contingencies (See Note 11)

ANALYSIS OF NET ASSETS
Common stock, $0.001 par value, 100,000 shares authorized, 21,304 and 21,304 shares issued and outstanding, respectively	$	21		$	21
Common stock, $0.001 par value, 100,000 shares authorized, 21,666 and 21,666 shares issued and outstanding, respectively							$	22		$	22
Capital in excess of par value		294,897			294,897			298,687			298,687
Accumulated undistributed (overdistributed) earnings		(58,755	)		(60,484	)		(53,808	)		(49,238	)
Total net assets	$	236,163		$	234,434		$	244,901		$	249,471

Net asset value per share	$	11.08		$	11.00		$	11.30		$	11.51

	Common Stock						Accumulated undistributed												Accumulated
	Number of shares		Par value		Capital in excess of par value		(overdistributed) earnings			Total net assets			Common Stock						undistributed
Balances at December 31, 2019		20,445	$	20	$	288,850	$	(39,513	)	$	249,357
Net investment income		—		—		—		6,782			6,782
Net realized gain (loss)		—		—		—		75			75
Net change in unrealized gain (loss)		—		—		—		(43,707	)		(43,707	)
Distributions to stockholders		—		—		—		(7,155	)		(7,155	)
Balances at March 31, 2020		20,445	$	20	$	288,850	$	(83,518	)	$	205,352
													Number of		Par		Capital in excess		(overdistributed)			Total
													shares		value		of par value		earnings			net assets
Balances at December 31, 2020		21,304	$	21	$	294,897	$	(60,484	)	$	234,434			21,304	$	21	$	294,897	$	(60,484	)	$	234,434
Net investment income		—		—		—		5,326			5,326			—		—		—		5,326			5,326
Net realized gain (loss)		—		—		—		(3,018	)		(3,018	)		—		—		—		(3,018	)		(3,018	)
Net change in unrealized gain (loss)		—		—		—		4,747			4,747			—		—		—		4,747			4,747
Distributions to stockholders		—		—		—		(5,326	)		(5,326	)		—		—		—		(5,326	)		(5,326	)
Balances at March 31, 2021		21,304	$	21	$	294,897	$	(58,755	)	$	236,163			21,304	$	21	$	294,897	$	(58,755	)	$	236,163

Balances at December 31, 2021														21,666	$	22	$	298,687	$	(49,238	)	$	249,471
Net investment income														—		—		—		5,398			5,398
Net realized gain (loss)														—		—		—		(1,139	)		(1,139	)
Net change in unrealized gain (loss)														—		—		—		(3,412	)		(3,412	)
Distributions to stockholders														—		—		—		(5,417	)		(5,417	)
Balances at March 31, 2022														21,666	$	22	$	298,687	$	(53,808	)	$	244,901

	March 31, 2020		December 31, 2019		March 31, 2021		December 31, 2020
Cash	$	9,320	$	2,234	$	7,723	$	6,769
Restricted cash		9,892		27,409		8,165		25,657
Total cash and restricted cash shown on the Consolidated Statements of Cash Flows	$	19,212	$	29,643	$	15,888	$	32,426

Portfolio Company ^(a)	Spread Above Index ^(b)	Interest Rate		Acquisition Date ^(c)	Maturity		Principal	Amortized Cost		Fair Value ^(d)		% of Net Assets ^(e)
Non-Controlled/Non-Affiliate Company Investments
Senior Secured Loans
Automotive
Hastings Manufacturing Company	L+7.75%	8.75	%	4/24/2018	4/24/2023		2,783	$	2,757	$	2,783	1.2	%
Magneto & Diesel Acquisition, Inc.	L+6.05%	7.10	%	12/18/2018	12/18/2023		4,876		4,826		4,876	2.1	%
Magneto & Diesel Acquisition, Inc.	L+6.05%	7.10	%	7/6/2020	12/18/2023		1,918		1,888		1,944	0.8	%
Magneto & Diesel Acquisition, Inc. (Revolver) ^(f)	L+5.50%	6.55	%	12/18/2018	12/18/2023		500		—		—	0.0	%
							10,077		9,471		9,603	4.1	%
Banking, Finance, Insurance & Real Estate
J2 BWA Funding, LLC (Delayed Draw) ^{(f) (g) (h)}	n/a	9.00	%	12/24/2020	12/24/2026		2,750		267		265	0.1	%
Liftforward SPV II, LLC ^(g)	L+10.75%	11.25	%	11/10/2016	6/30/2021		1,586		1,586		1,495	0.6	%
NCBP Property, LLC ^(g)	L+9.50%	10.50	%	12/18/2020	12/16/2022		1,950		1,934		1,942	0.8	%
Oceana Australian Fixed Income Trust ^{(g) (i) (j)}	n/a	11.50	%	2/25/2021	2/25/2026		8,165		8,460		8,165	3.5	%
StarCompliance MidCo, LLC	L+6.75%	7.75	%	1/12/2021	1/11/2027		2,000		1,962		1,998	0.8	%
StarCompliance MidCo, LLC (Revolver) ^(f)	L+6.75%	7.75	%	1/12/2021	1/11/2027		322		—		—	0.0	%
US Claims Litigation Funding, LLC (Revolver) ^{(f) (g)}	L+8.75%	9.75	%	11/30/2020	11/29/2024		1,500		1,200		1,190	0.5	%
W3 Monroe RE Debt LLC ^(g)	n/a	10.00	%	2/5/2021	2/4/2028		2,725		2,725		2,725	1.2	%
							20,998		18,134		17,780	7.5	%
Beverage, Food & Tobacco
LX/JT Intermediate Holdings, Inc. ^(k)	L+6.00%	7.50	%	3/11/2020	3/11/2025		9,643		9,486		9,392	4.0	%
LX/JT Intermediate Holdings, Inc. (Revolver) ^(f)	L+6.00%	7.50	%	3/11/2020	3/11/2025		833		—		—	0.0	%
Toojay's Management, LLC ^(l)	n/a	n/a	^(m)	10/26/2018	10/26/2022		1,448		1,407		—	0.0	%
Toojay's Management, LLC ^(l)	n/a	n/a	^(m)	10/26/2018	10/26/2022		199		199		—	0.0	%
Toojay's Management, LLC (Revolver) ^(l)	n/a	n/a	^(m)	10/26/2018	10/26/2022		66		66		—	0.0	%
							12,189		11,158		9,392	4.0	%
Capital Equipment
MCP Shaw Acquisitionco, LLC ^(k)	L+6.50%	7.50	%	2/28/2020	11/28/2025		9,899		9,736		9,800	4.1	%
MCP Shaw Acquisitionco, LLC (Revolver) ^(f)	L+6.50%	7.50	%	2/28/2020	11/28/2025		1,784		—		—	0.0	%
							11,683		9,736		9,800	4.1	%
Chemicals, Plastics & Rubber
Midwest Composite Technologies, LLC ^(k)	L+6.75%	7.75	%	12/2/2019	8/31/2023		14,888		14,686		14,903	6.3	%
Midwest Composite Technologies, LLC	L+6.75%	7.75	%	8/31/2018	8/31/2023		884		875		885	0.4	%
Midwest Composite Technologies, LLC	L+6.75%	7.75	%	8/31/2018	8/31/2023		508		508		509	0.2	%
Midwest Composite Technologies, LLC (Revolver) ^(f)	L+6.75%	7.75	%	8/31/2018	8/31/2023		90		—		—	0.0	%
Valudor Products, LLC	L+7.50%	7.00% Cash/ 1.50% PIK		6/18/2018	6/19/2023		1,567		1,552		1,733	0.7	%
Valudor Products, LLC ⁽ⁿ⁾	L+7.50%	8.50% PIK		6/18/2018	6/19/2023		222		219		—	0.0	%
Valudor Products, LLC (Revolver) ^(f)	L+9.50%	10.50	%	6/18/2018	6/19/2023		818		669		641	0.3	%
							18,977		18,509		18,671	7.9	%
Construction & Building
Cali Bamboo, LLC	L+9.50%	8.00% Cash/ 2.50% PIK		7/10/2015	3/31/2022		6,902		6,902		6,902	2.9	%
Cali Bamboo, LLC (Revolver) ^(f)	L+9.50%	8.00% Cash/ 2.50% PIK		7/10/2015	3/31/2022		2,165		—		—	0.0	%
Dude Solutions Holdings, Inc.	L+7.50%	8.50	%	6/14/2019	6/13/2025		9,963		9,793		9,953	4.2	%
Dude Solutions Holdings, Inc. (Revolver) ^(f)	L+7.50%	8.50	%	6/14/2019	6/13/2025		1,304		—		—	0.0	%
							20,334		16,695		16,855	7.1	%
Consumer Goods: Durable
Parterre Flooring & Surface Systems, LLC ^(k)	L+9.00%	10.00	%^(m)	8/22/2017	8/22/2022		6,936		6,203		475	0.2	%
							6,936		6,203		475	0.2	%
Consumer Goods: Non-Durable
Thrasio, LLC	L+7.00%	8.00	%	12/18/2020	12/18/2026		1,496		1,461		1,498	0.6	%
Thrasio, LLC (Delayed Draw) ^(f) (h)	L+7.00%	8.00	%	12/18/2020	12/18/2026		990		—		—	0.0	%
							2,486		1,461		1,498	0.6	%
Environmental Industries
Quest Resource Management Group, LLC	L+8.50%	9.75	%	10/19/2020	10/20/2025		997		931		1,027	0.4	%
Quest Resource Management Group, LLC (Delayed Draw) ^(f) (h)	L+8.50%	9.75	%	10/19/2020	10/20/2025		1,087		—		—	0.0	%
StormTrap, LLC	L+5.50%	6.50	%	12/10/2018	12/8/2023		7,820		7,739		7,820	3.3	%
StormTrap, LLC (Revolver) ^(f)	L+5.50%	6.50	%	12/10/2018	12/8/2023		432		—		—	0.0	%
Synergy Environmental Corporation ^(k)	L+6.00%	7.00	%	4/29/2016	9/29/2023		2,877		2,867		2,880	1.2	%
Synergy Environmental Corporation ^(k)	L+6.00%	7.00	%	4/29/2016	9/29/2023		481		479		481	0.2	%
Synergy Environmental Corporation	L+6.00%	7.00	%	4/29/2016	9/29/2023		820		820		821	0.4	%
Synergy Environmental Corporation (Revolver) ^(f)	L+6.00%	7.00	%	4/29/2016	9/29/2023		671		67		67	0.0	%
							15,185		12,903		13,096	5.5	%

Healthcare & Pharmaceuticals
American Optics Holdco, Inc. ^{(g) (j)}	L+6.50%	7.50	%	9/13/2017	9/13/2022		2,143		2,129		2,143	0.9	%
American Optics Holdco, Inc. ^{(g) (j)}	L+6.50%	7.50	%	9/13/2017	9/13/2022		1,616		1,604		1,616	0.7	%
American Optics Holdco, Inc. (Revolver) ^{(f) (g) (j)}	L+6.50%	7.50	%	9/13/2017	9/13/2022		220		—		—	0.0	%
American Optics Holdco, Inc. (Revolver) ^{(f) (g) (j)}	L+6.50%	7.50	%	9/13/2017	9/13/2022		440		—		—	0.0	%
Apotheco, LLC	L+8.50%	6.50% Cash/ 3.00% PIK		4/8/2019	4/8/2024		3,568		3,523		3,312	1.4	%
Apotheco, LLC (Revolver)	L+8.50%	6.50% Cash/ 3.00% PIK		4/8/2019	4/8/2024		934		934		867	0.4	%
Brickell Bay Acquisition Corp.	L+7.00%	8.00	%	2/12/2021	2/12/2026		4,000		3,922		3,980	1.7	%
Brickell Bay Acquisition Corp. (Delayed Draw) ^{(f) (h)}	L+7.00%	8.00	%	2/12/2021	2/12/2026		800		—		—	0.0	%
Rockdale Blackhawk, LLC	n/a	n/a	^(o)	3/31/2015	n/a	^(p)	—		—		1,592	0.7	%
Seran BioScience, LLC	L+7.25%	8.25	%	12/31/2020	12/31/2025		2,500		2,453		2,497	1.0	%
Seran BioScience, LLC (Revolver) ^(f)	L+7.25%	8.25	%	12/31/2020	12/31/2025		444		—		—	0.0	%
							16,665		14,565		16,007	6.8	%

Portfolio Company ^(a)	Spread Above Index ^(b)	Interest Rate		Acquisition Date ^(c)	Maturity		Principal	Amortized Cost		Fair Value ^(d)		% of Net Assets ^(e)
Equity Securities ^{(u) (ah)}
Banking, Finance, Insurance & Real Estate
J2 BWA Funding, LLC (0.7% profit sharing) ^{(g) (v)}	—	—	^(w)	12/24/2020	—		—	$	—	$	—	0.0	%
PKS Holdings, LLC (5,680 preferred units) ^(g)	n/a	5.00% PIK		11/30/2017	—		—		58		222	0.1	%
PKS Holdings, LLC (5,714 preferred units) ^(g)	n/a	5.00% PIK		11/30/2017	—		—		9		34	0.0	%
PKS Holdings, LLC (132 preferred units) ^(g)	n/a	5.00% PIK		11/30/2017	—		—		1		5	0.0	%
PKS Holdings, LLC (916 preferred units) ^(g)	n/a	5.00% PIK		11/30/2017	—		—		9		34	0.0	%
									77		295	0.1	%
Beverage, Food & Tobacco
California Pizza Kitchen, Inc. (78,699 preferred units)	—	—	^(w)	8/19/2016	—		—		5,468		1,790	0.8	%
									5,468		1,790	0.8	%
Capital Equipment									��
MCP Shaw Acquisitionco, LLC (118,906 Class A-2 units) ^(v)	—	—	^(w)	2/28/2020	—		—		119		156	0.1	%
									119		156	0.1	%
Chemicals, Plastics & Rubber
Valudor Products, LLC (501,014 Class A-1 units) ^(v)	n/a	10.00% PIK	^(m)	6/18/2018	—		—		501		—	0.0	%
									501		—	0.0	%
Environmental Industries
Quest Resource Holding Corporation (warrant to purchase up to 0.2% of the equity)	—	—	^(w)	10/19/2020	3/19/2028		—		67		122	0.1	%
									67		122	0.1	%
Healthcare & Pharmaceuticals
Seran BioScience, LLC (33,333 common units) ^(v)	—	—	^(w)	12/31/2020	—		—		333		385	0.2	%
									333		385	0.2	%
High Tech Industries
Answers Finance, LLC (76,539 shares of common stock)	—	—	^(w)	4/14/2017	—		—		2,284		43	0.0	%
MarkLogic Corporation (290,239 Class A units)	—	—	^(w)	10/20/2020	—		—		290		465	0.2	%
Planful, Inc. (473,082 Class A units)	n/a	8.00% PIK		12/28/2018	—		—		473		591	0.2	%
Recorded Future, Inc. (80,486 Class A units) ^(x)	—	—	^(w)	7/3/2019	—		—		81		158	0.1	%
									3,128		1,257	0.5	%
Hotels, Gaming & Leisure
Equine Network, LLC (99 Class A units) ^(v)	n/a	10.00% PIK		12/31/2020	—		—		99		101	0.0	%
									99		101	0.0	%
Media: Advertising, Printing & Publishing
AdTheorent Holding Company, LLC (128,866 Class A voting units)	—	—	^(w)	12/22/2016	—		—		129		537	0.2	%
InMobi Pte, Ltd. (warrant to purchase up to 2.8% of the equity) ^{(g) (j)}	—	—	^(w)	9/18/2015	9/18/2025		—		—		1,626	0.7	%
Relevate Health Group, LLC (40 preferred units)	n/a	12.00% PIK		11/20/2020	—		—		40		40	0.0	%
Relevate Health Group, LLC (40 Class B common units)	—	—	^(w)	11/20/2020	—		—		—		3	0.0	%
Stratus Unlimited, LLC (686 shares of common units)	—	—	^(w)	8/30/2019	—		—		872		1,065	0.5	%
XanEdu Publishing, Inc. (49,479 Class A units)	n/a	8.00% PIK		1/28/2020	—		—		49		79	0.0	%
									1,090		3,350	1.4	%
Media: Diversified & Production
Attom Intermediate Holdco, LLC (297,197 Class A units) ^(v)	—	—	^(w)	1/4/2019	—		—		297		406	0.2	%
									297		406	0.2	%
Retail
BLST Operating Company, LLC (139,883 Class A units) ^(v)	—	—	^(w)	8/28/2020	—		—		1,072		122	0.1	%
Forman Mills, Inc. (warrant to purchase up to 2.6% of the equity)	—	—	^(w)	1/14/2020	1/14/2029		—		—		82	0.0	%
The Tie Bar Operating Company, LLC - Class A preferred units (1,275 units)	—	—	^(w)	6/25/2013	—		—		87		4	0.0	%
The Tie Bar Operating Company, LLC - Class B preferred units (1,275 units)	—	—	^(w)	6/25/2013	—		—		—		—	0.0	%
									1,159		208	0.1	%
Services: Business
APCO Worldwide, Inc. (100 Class A voting common stock)	—	—	^(w)	11/1/2017	—		—		395		433	0.2	%
Atlas Sign Industries of FLA, LLC (warrant to purchase up to 3.0% of the equity)	—	—	^(w)	5/14/2018	5/14/2026		—		125		179	0.1	%
									520		612	0.3	%
Services: Consumer
IDIG Parent, LLC (245,958 shares of common stock) ^{(v) (y)}	—	—	^(w)	1/4/2021	—		—		248		268	0.0	%
Education Corporation of America - Series G Preferred Stock (8,333 shares)	n/a	12.00% PIK	^(m)	9/3/2015	—		—		7,492		5,117	2.2	%
Express Wash Acquisition Company, LLC (100,000 Class A units) ^(v)	n/a	8.00% PIK		12/28/2020	—		—		100		126	0.1	%
									7,840		5,511	2.3	%
Wholesale
Nearly Natural, Inc. (152,174 Class A units)	—	—	^(w)	12/15/2017	—		—		152		206	0.1	%
									152		206	0.1	%
Total Non-Controlled/Non-Affiliate Equity Securities									20,850		14,399	6.1	%
Total Non-Controlled/Non-Affiliate Company Investments								$	393,725	$	372,493	157.7	%

Non-Controlled Affiliate Company Investments ^(z)
Senior Secured Loans
Banking, Finance, Insurance & Real Estate
American Community Homes, Inc.	L+10.00%	11.50% PIK		7/22/2014	12/31/2021		9,585	$	9,585	$	9,585	4.1	%
American Community Homes, Inc.	L+14.50%	16.00% PIK		7/22/2014	12/31/2021		4,212		4,212		4,212	1.8	%
American Community Homes, Inc.	L+10.00%	11.50% PIK		5/24/2017	12/31/2021		581		581		581	0.3	%
American Community Homes, Inc.	L+10.00%	11.50% PIK		8/10/2018	12/31/2021		2,136		2,136		3,131	1.3	%
American Community Homes, Inc.	L+10.00%	11.50% PIK		3/29/2019	12/31/2021		3,955		3,955		3,997	1.7	%
American Community Homes, Inc.	L+10.00%	11.50% PIK		9/30/2019	12/31/2021		19		19		19	0.0	%
American Community Homes, Inc.	L+10.00%	11.50% PIK		12/30/2019	12/31/2021		91		91		91	0.0	%
HFZ Capital Group, LLC ^{(g) (aa)}	L+12.50%	14.00% PIK		10/20/2017	n/a	^(p)	13,242		13,242		14,275	6.0	%
HFZ Capital Group, LLC ^{(g) (aa)}	L+12.50%	14.00% PIK		10/20/2017	n/a	^(p)	4,758		4,758		5,129	2.2	%
MC Asset Management (Corporate), LLC ^(g)	L+15.00%	16.00% PIK		1/26/2021	1/26/2024		6,423		6,423		6,423	2.7	%
MC Asset Management (Industrial), LLC ^{(g) (aa)}	L+17.00%	18.00% PIK		6/11/2019	10/30/2024		10,799		10,793		11,579	4.9	%
							55,801		55,795		59,022	25.0	%

	Notional Amount		Notional Amount			Settlement	Unrealized Gain
Description	to be Purchased		to be Sold		Counterparty	Date	(Loss)			Notional Amount to be Purchased		Notional Amount to be Sold		Counterparty	Settlement Date	Unrealized Gain (Loss)
Foreign currency forward contract	$	103	£	84	Bannockburn Global Forex, LLC	4/2/2021	$	(13	)	$	97	£	79	Bannockburn Global Forex, LLC	4/4/2022	$	(6	)
Foreign currency forward contract	$	271	£	212	Bannockburn Global Forex, LLC	6/1/2021		(21	)	$	36	£	29	Bannockburn Global Forex, LLC	5/6/2022		(2	)
Foreign currency forward contract	$	33	£	26	Bannockburn Global Forex, LLC	6/1/2021		(3	)	$	113	AUD	146	Bannockburn Global Forex, LLC	4/19/2022		4
Foreign currency forward contract	$	23	£	16	Bannockburn Global Forex, LLC	6/3/2021		—		$	107	AUD	138	Bannockburn Global Forex, LLC	5/17/2022		3
Foreign currency forward contract	$	103	£	83	Bannockburn Global Forex, LLC	7/2/2021		(12	)	$	119	AUD	153	Bannockburn Global Forex, LLC	6/17/2022		4
Foreign currency forward contract	$	1,256	£	900	Bannockburn Global Forex, LLC	7/2/2021		16		$	107	AUD	138	Bannockburn Global Forex, LLC	7/18/2022		3
Foreign currency forward contract	$	102	£	83	Bannockburn Global Forex, LLC	10/4/2021		(12	)	$	108	AUD	140	Bannockburn Global Forex, LLC	8/16/2022		3
Foreign currency forward contract	$	101	£	82	Bannockburn Global Forex, LLC	1/3/2022		(12	)	$	118	AUD	153	Bannockburn Global Forex, LLC	9/16/2022		4
Foreign currency forward contract	$	97	£	79	Bannockburn Global Forex, LLC	4/4/2022		(12	)	$	117	AUD	152	Bannockburn Global Forex, LLC	10/19/2022		4
Foreign currency forward contract	$	36	£	29	Bannockburn Global Forex, LLC	5/6/2022		(4	)	$	105	AUD	136	Bannockburn Global Forex, LLC	11/16/2022		3
Foreign currency forward contract	$	137	AUD	173	Bannockburn Global Forex, LLC	4/20/2021		5		$	109	AUD	142	Bannockburn Global Forex, LLC	12/16/2022		3
Foreign currency forward contract	$	75	AUD	95	Bannockburn Global Forex, LLC	5/18/2021		3		$	118	AUD	153	Bannockburn Global Forex, LLC	1/18/2023		4
Foreign currency forward contract	$	86	AUD	108	Bannockburn Global Forex, LLC	6/17/2021		3		$	108	AUD	140	Bannockburn Global Forex, LLC	2/16/2023		3
Foreign currency forward contract	$	77	AUD	98	Bannockburn Global Forex, LLC	7/16/2021		3		$	102	AUD	132	Bannockburn Global Forex, LLC	3/16/2023		3
Foreign currency forward contract	$	80	AUD	102	Bannockburn Global Forex, LLC	8/17/2021		3		$	123	AUD	160	Bannockburn Global Forex, LLC	4/20/2023		4
Foreign currency forward contract	$	85	AUD	108	Bannockburn Global Forex, LLC	9/16/2021		3		$	93	AUD	121	Bannockburn Global Forex, LLC	5/16/2023		2
Foreign currency forward contract	$	83	AUD	105	Bannockburn Global Forex, LLC	10/19/2021		3		$	121	AUD	156	Bannockburn Global Forex, LLC	6/19/2023		4
Foreign currency forward contract	$	75	AUD	95	Bannockburn Global Forex, LLC	11/16/2021		3		$	107	AUD	138	Bannockburn Global Forex, LLC	7/18/2023		3
Foreign currency forward contract	$	85	AUD	108	Bannockburn Global Forex, LLC	12/16/2021		3		$	113	AUD	146	Bannockburn Global Forex, LLC	8/16/2023		3
Foreign currency forward contract	$	91	AUD	115	Bannockburn Global Forex, LLC	1/19/2022		3		$	113	AUD	146	Bannockburn Global Forex, LLC	9/18/2023		3
Foreign currency forward contract	$	75	AUD	95	Bannockburn Global Forex, LLC	2/16/2022		3		$	114	AUD	148	Bannockburn Global Forex, LLC	10/18/2023		3
Foreign currency forward contract	$	75	AUD	95	Bannockburn Global Forex, LLC	3/16/2022		3		$	107	AUD	140	Bannockburn Global Forex, LLC	11/16/2023		3
Foreign currency forward contract	$	83	AUD	105	Bannockburn Global Forex, LLC	4/19/2022		3		$	109	AUD	142	Bannockburn Global Forex, LLC	12/18/2023		3
Foreign currency forward contract	$	77	AUD	98	Bannockburn Global Forex, LLC	5/17/2022		3		$	115	AUD	150	Bannockburn Global Forex, LLC	1/17/2024		3
Foreign currency forward contract	$	88	AUD	112	Bannockburn Global Forex, LLC	6/17/2022		3		$	110	AUD	143	Bannockburn Global Forex, LLC	2/16/2024		3
Foreign currency forward contract	$	77	AUD	98	Bannockburn Global Forex, LLC	7/18/2022		3		$	11,827	AUD	15,410	Bannockburn Global Forex, LLC	3/18/2024		298
Foreign currency forward contract	$	77	AUD	98	Bannockburn Global Forex, LLC	8/16/2022		2
Foreign currency forward contract	$	88	AUD	112	Bannockburn Global Forex, LLC	9/16/2022		3
Foreign currency forward contract	$	88	AUD	112	Bannockburn Global Forex, LLC	10/19/2022		3
Foreign currency forward contract	$	74	AUD	95	Bannockburn Global Forex, LLC	11/16/2022		2
Foreign currency forward contract	$	80	AUD	102	Bannockburn Global Forex, LLC	12/16/2022		2
Foreign currency forward contract	$	87	AUD	112	Bannockburn Global Forex, LLC	1/18/2023		3
Foreign currency forward contract	$	77	AUD	98	Bannockburn Global Forex, LLC	2/16/2023		2
Foreign currency forward contract	$	74	AUD	95	Bannockburn Global Forex, LLC	3/16/2023		2
Foreign currency forward contract	$	93	AUD	118	Bannockburn Global Forex, LLC	4/20/2023		3
Foreign currency forward contract	$	63	AUD	81	Bannockburn Global Forex, LLC	5/16/2023		2
Foreign currency forward contract	$	90	AUD	115	Bannockburn Global Forex, LLC	6/19/2023		2
Foreign currency forward contract	$	77	AUD	98	Bannockburn Global Forex, LLC	7/18/2023		2
Foreign currency forward contract	$	82	AUD	105	Bannockburn Global Forex, LLC	8/16/2023		2
Foreign currency forward contract	$	82	AUD	105	Bannockburn Global Forex, LLC	9/18/2023		2
Foreign currency forward contract	$	84	AUD	108	Bannockburn Global Forex, LLC	10/18/2023		2
Foreign currency forward contract	$	77	AUD	98	Bannockburn Global Forex, LLC	11/16/2023		2
Foreign currency forward contract	$	79	AUD	102	Bannockburn Global Forex, LLC	12/18/2023		2
Foreign currency forward contract	$	84	AUD	108	Bannockburn Global Forex, LLC	1/17/2024		2
Foreign currency forward contract	$	79	AUD	102	Bannockburn Global Forex, LLC	2/16/2024		2
Foreign currency forward contract	$	76	AUD	98	Bannockburn Global Forex, LLC	3/18/2024		2
Foreign currency forward contract	$	8,365	AUD	10,746	Bannockburn Global Forex, LLC	3/18/2024		200
							$	221								$	365

(a)	All of the Company's investments are issued by eligible portfolio companies, as defined in the Investment Company Act of 1940 (the “1940 Act”), unless otherwise noted. All of the Company's investments are issued by U.S. portfolio companies unless otherwise noted.
(b)	The majority of the investments bear interest at a rate that may be determined by reference to the London Interbank Offered Rate (“LIBOR” or “L”) or, Prime Rate (“Prime” or “P”), or Secured Overnight Financing Rate ("SOFR" or "SF") which reset daily, monthly, quarterly, or semiannually. For each such investment, the Company has provided the spread over LIBOR, Prime, or ~~Prime~~SOFR and the current contractual interest rate in effect at March 31, ~~2021.~~2022. Certain investments are subject to a LIBOR, Prime, or ~~Prime~~SOFR interest rate floor, or rate cap. Certain investments contain a ~~payment-in-kind~~Payment-in-Kind (“PIK”) provision.
(c)	Except as otherwise noted, all of the Company’s portfolio company investments, which as of March 31, ~~2021~~2022 represented ~~220.8%~~222.9% of the Company’s net assets or ~~95.8%~~96.7% of the Company’s total assets, are subject to legal restrictions on sales.
(d)	Because there is no readily available market value for these investments, the fair value of these investments is determined in good faith using significant unobservable inputs by the Company's board of directors as required by the 1940 Act. (See Note 4 in the accompanying notes to the consolidated financial statements.)
(e)	Percentages are based on net assets of ~~$236,163~~$244,901 as of March 31, ~~2021.~~2022.
(f)	All or a portion of this commitment was unfunded at March 31, ~~2021.~~2022. As such, interest is earned only on the funded portion of this commitment.
(g)	This delayed draw loan requires that certain financial covenants be met by the portfolio company prior to any fundings.
(h)	This investment is treated as a non-qualifying investment under Section 55(a) of the 1940 Act. Under the 1940 Act, the Company may not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of the Company’s total assets. As of March 31, ~~2021,~~2022, non-qualifying assets totaled ~~23.3%~~23.9% of the Company’s total assets.
~~(h)~~	~~This delayed draw loan requires that certain financial covenants be met by the portfolio company prior to any fundings.~~
(i)	~~This loan is denominated in Australian dollars and is translated into U.S. dollars as of the valuation date.~~
~~(j)~~	~~This is an international company.~~
~~(k)~~	~~All of this loan is held in the Company’s wholly-owned subsidiary, Monroe Capital Corporation SBIC, LP, and is therefore not collateral to the Company’s revolving credit facility.~~
~~(l)~~	During ~~the three months ended September 30,~~ 2020, the senior secured lender group of Toojay’s Management, LLC (“Toojay’s OldCo”) established TJ Management HoldCo, LLC (“Toojay’s NewCo”) in order to acquire certain of the assets of Toojay’s OldCo as part of a bankruptcy restructuring. The Company owns 15.9% of the equity in Toojay’s NewCo. Toojay’s NewCo credit bid a portion of the senior secured debt in Toojay’s OldCo to acquire certain assets of Toojay’s OldCo which constitute the ongoing operations of the portfolio company. The Company’s portion of this credit bid was $2,386, and as such the Company's outstanding senior secured debt investment in Toojay’s OldCo was reduced by the amount of the credit bid and the Company’s cost basis of its new equity investment in Toojay’s NewCo was increased by the amount of the credit bid. While the Company still has loans outstanding at Toojay’s OldCo, the Company has valued these positions at zero as of March 31, ~~2021.~~2022.
~~(m)~~(j)	This position was on non-accrual status as of March 31, ~~2021,~~2022, meaning that the Company has ceased accruing interest income on the position. See Note 2 in the accompanying notes to the consolidated financial statements for additional information on the Company’s accounting policies.
~~(n)~~(k)	This investment represents a note convertible to preferred shares of the borrower.
~~(o)~~(l)	~~In May~~ This loan is denominated in Australian dollars and is translated into U.S. dollars as of the valuation date.
(m)	This is an international company.
(n)	During 2020, an arbitrator issued a final award in favor of the estate of Rockdale Blackhawk, LLC (the “Estate”) in the legal proceeding between the Estate and a national insurance carrier. The Company's share of the net proceeds from the award exceeded the contractual obligations due to the Company as a result of the Company’s right to receive excess proceeds pursuant to the terms of a sharing agreement between the lenders and the Estate. ~~As of March 31, 2021, the Company has this remaining investment in Rockdale associated with residual proceeds currently expected from the Estate.~~ This investment is a non-income producing security.
~~(p)~~(o)	This is a demand note with no stated maturity.
~~(q)~~	~~This loan is denominated in Great Britain pounds and is translated into U.S. dollars as of the valuation date.~~
~~(r)~~(p)	The Company structures its unitranche secured loans as senior secured loans. The Company obtains security interests in the assets of these portfolio companies that serve as collateral in support of the repayment of these loans. This collateral may take the form of first-priority liens on the assets of a portfolio company. Generally, the Company syndicates a “first out” portion of the loan to an investor and retains a ~~"last~~“last out” portion of the loan, in which case the “first out” portion of the loan will generally receive priority with respect to payments of principal, interest and any other amounts due thereunder. Unitranche structures combine characteristics of traditional first lien senior secured as well as second lien and subordinated loans and the Company’s unitranche secured loans will expose the Company to the risks associated with second lien and subordinated loans and may limit the Company’s recourse or ability to recover collateral upon a portfolio company’s bankruptcy. Unitranche secured loans typically provide for moderate loan amortization in the initial years of the facility, with the majority of the amortization deferred until loan maturity. Unitranche secured loans generally allow the borrower to make a large lump sum payment of principal at the end of the loan term, and there is a risk of loss if the borrower is unable to pay the lump sum or refinance the amount owed at maturity. In many cases the Company, together with its affiliates, are the sole or majority lender of these unitranche secured loans, which can afford the Company additional influence with a borrower in terms of monitoring and, if necessary, remediation in the event of underperformance.

~~(s)~~	A portion of this loan (principal of $9,258) is held in the Company’s wholly-owned subsidiary, Monroe Capital Corporation SBIC, LP, and is therefore not collateral to the Company’s revolving credit facility.
~~(t)~~	A portion of this loan (principal of $525) is held in the Company’s wholly-owned subsidiary, Monroe Capital Corporation SBIC, LP, and is therefore not collateral to the Company’s revolving credit facility.
~~(u)~~(q)	Represents less than 5% ownership of the portfolio company’s voting securities.
~~(v)~~(r)	Ownership of certain equity investments may occur through a holding company or partnership.
(s)	Represents a non-income producing security.
(t)	Investment is held by a taxable subsidiary of the Company. See Note 2 in the accompanying notes to the consolidated financial statements for additional information on the Company’s wholly-owned taxable subsidiaries.
~~(w)~~	~~Represents a non-income producing security.~~
~~(x)~~(u)	As of March 31, ~~2021,~~2022, the Company was party to a subscription agreement with a commitment to fund an additional equity investment of $16.
~~(y)~~(v)	The fair value of this investment was valued using Level 1 inputs. See Note 4 in the accompanying notes to the consolidated financial statements.
(w)	During the three months ended December 31, 2021, the Company sold its investment in Luxury Optical Holding Co. The fair value at March 31, 2022 represents the remaining expected escrow proceeds associated with the sale.
(x)	As of March 31, ~~2021,~~2022, the Company was party to a subscription agreement with a commitment to fund an equity investment of $43.
~~(z)~~(y)	As defined in the 1940 Act, the Company is deemed to be an “Affiliated Person” of the portfolio company as it owns 5% or more of the portfolio company’s voting securities. See Note 5 in the accompanying notes to the consolidated financial statements for additional information on transactions in which the issuer was an Affiliated Person (but not a portfolio company that the Company is deemed to control).
~~(aa)~~(z)	The Company restructured its investments in HFZ Capital Group LLC (“HFZ”) and HFZ Member RB portfolio, LLC (“Member RB”) during ~~the three months ended December 31,~~ 2020. As part of the restructuring of HFZ, the Company obtained a 15.9% equity interest in MC Asset Management (Corporate), LLC (“Corporate”). As part of the Member RB restructuring, the Company exchanged its loan in Member RB for a promissory note in MC Asset Management (Industrial), LLC (“Industrial”). Corporate owns 100% of the equity of Industrial. In conjunction with these restructurings, the Company participated $4,758 of principal of its loan to HFZ as an equity contribution to Industrial. This participation did not qualify for sale accounting under ASC Topic ~~860 –~~ 860–Transfers and Servicing because the sale did not meet the definition of a “participating interest”, as defined in the guidance, in order for sale treatment to be allowed. As a result, the Company continues to reflect its full investment in HFZ but has split the loan into two investments.
~~(ab)~~	A portion of this loan (principal of $5,390) is held in the Company’s wholly-owned subsidiary, Monroe Capital Corporation SBIC, LP, and is therefore not collateral to the Company’s revolving credit facility.
~~(ac)~~	A portion of this loan (principal of $55) is held in the Company’s wholly-owned subsidiary, Monroe Capital Corporation SBIC, LP, and is therefore not collateral to the Company’s revolving credit facility.
~~(ad)~~	A portion of this loan (principal of $1,015) is held in the Company’s wholly-owned subsidiary, Monroe Capital Corporation SBIC, LP, and is therefore not collateral to the Company’s revolving credit facility.
~~(ae)~~	A portion of this loan (principal of $1,938) is held in the Company’s wholly-owned subsidiary, Monroe Capital Corporation SBIC, LP, and is therefore not collateral to the Company’s revolving credit facility.
~~(af)~~(aa)	As of March 31, ~~2021,~~2022, the Company was party to a subscription agreement with a commitment to fund an additional equity investment of ~~$611.~~$244.
~~(ag)~~(ab)	As defined in the 1940 Act, the Company is deemed to be both an “Affiliated Person” of and to “Control” this portfolio company as it owns more than 25% of the portfolio company’s voting securities. See Note 5 in the accompanying notes to the consolidated financial statements for additional information on transactions in which the issuer was both an Affiliated Person and a portfolio company that the Company is deemed to ~~control.~~Control.
~~(ah)~~	~~Ownership of certain equity investments may occur through a holding company or partnership.~~

n/a - not applicable

Portfolio Company ^(a)	Spread Above Index ^(b)	Interest Rate			Acquisition Date ^(c)	Maturity		Principal		Amortized Cost		Fair Value ^(d)		% of Net Assets ^(e)
Non-Controlled/Non-Affiliate Company Investments
Senior Secured Loans
Automotive
Hastings Manufacturing Company	L+8.25%		9.25	%	4/24/2018		4/24/2023		2,820	$	2,790	$	2,829		1.2	%
Magneto & Diesel Acquisition, Inc.	L+6.05%		7.10	%	12/18/2018		12/18/2023		4,876		4,820		4,876		2.1	%
Magneto & Diesel Acquisition, Inc.	L+6.05%		7.10	%	7/6/2020		12/18/2023		1,918		1,885		1,932		0.8	%
Magneto & Diesel Acquisition, Inc. (Revolver) ^(f)	L+6.05%		7.10	%	12/18/2018		12/18/2023		500		—		—		0.0	%
									10,114		9,495		9,637		4.1	%
Banking, Finance, Insurance & Real Estate
777 SPV I, LLC ^(g)	L+8.50%		10.25	%	4/15/2019		4/14/2023		4,665		4,628		4,760		2.0	%
J2 BWA Funding, LLC (Delayed Draw) ^{(f) (g) (h)}	n/a		10.00	%	12/24/2020		12/24/2026		2,750		—		—		0.0	%
Liftforward SPV II, LLC ^(g)	L+10.75%		11.25	%	11/10/2016		6/30/2021		2,057		2,057		1,929		0.8	%
NCBP Property, LLC ^(g)	L+9.50%		10.50	%	12/18/2020		12/16/2022		1,950		1,931		1,931		0.8	%
US Claims Litigation Funding, LLC (Revolver) ^{(f) (g)}	L+8.75%		9.75	%	11/30/2020		11/29/2024		1,500		850		850		0.4	%
									12,922		9,466		9,470		4.0	%
Beverage, Food & Tobacco
LX/JT Intermediate Holdings, Inc. ^(j)	L+6.00%		7.50	%	3/11/2020		3/11/2025		9,732		9,564		9,567		4.1	%
LX/JT Intermediate Holdings, Inc. (Revolver) ^(f)	L+6.00%		7.50	%	3/11/2020		3/11/2025		833		—		—		0.0	%
Toojay’s Management, LLC ^(k)	n/a		n/a	^(l)	10/26/2018		10/26/2022		1,448		1,407		—		0.0	%
Toojay’s Management, LLC ^(k)	n/a		n/a	^(l)	10/26/2018		10/26/2022		199		199		—		0.0	%
Toojay’s Management, LLC (Revolver) ^(k)	n/a		n/a	^(l)	10/26/2018		10/26/2022		66		66		—		0.0	%
									12,278		11,236		9,567		4.1	%
Capital Equipment
MCP Shaw Acquisitionco, LLC ^(j)	L+6.50%		7.50	%	2/28/2020		11/28/2025		9,924		9,752		9,721		4.2	%
MCP Shaw Acquisitionco, LLC (Revolver) ^(f)	L+6.50%		7.50	%	2/28/2020		11/28/2025		1,784		—		—		0.0	%
									11,708		9,752		9,721		4.2	%
Chemicals, Plastics & Rubber
Midwest Composite Technologies, LLC ^(j)	L+6.75%		7.75	%	12/2/2019		8/31/2023		14,925		14,701		14,926		6.4	%
Midwest Composite Technologies, LLC	L+6.75%		7.75	%	8/31/2018		8/31/2023		887		876		887		0.4	%
Midwest Composite Technologies, LLC (Delayed Draw) ^{(f) (h)}	L+6.75%		7.75	%	8/31/2018		8/31/2023		509		179		179		0.1	%
Midwest Composite Technologies, LLC (Revolver) ^(f)	L+6.75%		7.75	%	8/31/2018		8/31/2023		90		—		—		0.0	%
Valudor Products, LLC	L+7.50%		7.00% Cash / 1.50% PIK		6/18/2018		6/19/2023		1,561		1,543		1,702		0.7	%
Valudor Products, LLC ^(m)	L+7.50%		8.50% PIK		6/18/2018		6/19/2023		217		214		—		0.0	%
Valudor Products, LLC (Revolver) ^(f)	L+9.50%		10.50	%	6/18/2018		6/19/2023		818		549		521		0.2	%
									19,007		18,062		18,215		7.8	%
Construction & Building
Cali Bamboo, LLC	L+9.50%		8.00% Cash/ 2.50% PIK		7/10/2015		3/31/2022		6,859		6,857		6,859		2.9	%
Cali Bamboo, LLC (Revolver) ^(f)	L+9.50%		8.00% Cash/ 2.50% PIK		7/10/2015		3/31/2022		2,165		—		—		0.0	%
Dude Solutions Holdings, Inc.	L+7.50%		8.50	%	6/14/2019		6/13/2025		9,975		9,794		9,950		4.3	%
Dude Solutions Holdings, Inc. (Revolver) ^(f)	L+7.50%		8.50	%	6/14/2019		6/13/2025		1,304		—		—		0.0	%
									20,303		16,651		16,809		7.2	%
Consumer Goods: Durable
Franchise Group Intermediate Holdco, LLC	L+8.00%		9.50	%	2/24/2020		2/14/2025		3,425		3,366		3,382		1.4	%
Nova Wildcat Amerock, LLC	L+5.25%		6.25	%	10/12/2018		10/12/2023		9,009		8,897		9,009		3.9	%
Nova Wildcat Amerock, LLC (Revolver) ^(f)	L+5.25%		6.25	%	10/12/2018		10/12/2023		931		—		—		0.0	%
Parterre Flooring & Surface Systems, LLC ^(j)	L+9.00%		10.00	%^(l)	8/22/2017		8/22/2022		7,613		7,533		2,351		1.0	%
Parterre Flooring & Surface Systems, LLC (Revolver)	L+9.00%		10.00	%^(l)	8/22/2017		8/22/2022		696		696		215		0.1	%
									21,674		20,492		14,957		6.4	%
Consumer Goods: Non-Durable
Thrasio, LLC	L+7.00%		8.00	%	12/18/2020		12/18/2026		1,500		1,463		1,463		0.6	%
Thrasio, LLC (Delayed Draw) ^{(f) (h)}	L+7.00%		8.00	%	12/18/2020		12/18/2026		990		—		—		0.0	%
									2,490		1,463		1,463		0.6	%
Environmental Industries
Quest Resource Management Group, LLC	L+8.50%		9.75	%	10/19/2020		10/20/2025		1,000		933		979		0.4	%
Quest Resource Management Group, LLC (Delayed Draw) ^(f) (h)	L+8.50%		9.75	%	10/19/2020		10/20/2025		1,087		—		—		0.0	%
StormTrap, LLC	L+5.50%		6.50	%	12/10/2018		12/8/2023		7,840		7,751		7,840		3.4	%
StormTrap, LLC (Revolver) ^(f)	L+5.50%		6.50	%	12/10/2018		12/8/2023		432		—		—		0.0	%
Synergy Environmental Corporation ^(j)	L+6.00%		7.00	%	4/29/2016		9/29/2023		2,885		2,874		2,888		1.2	%
Synergy Environmental Corporation ^(j)	L+6.00%		7.00	%	4/29/2016		9/29/2023		482		481		483		0.2	%
Synergy Environmental Corporation	L+6.00%		7.00	%	4/29/2016		9/29/2023		823		823		824		0.4	%
Synergy Environmental Corporation (Revolver) ^(f)	L+6.00%		7.00	%	4/29/2016		9/29/2023		671		67		67		0.0	%
									15,220		12,929		13,081		5.6	%

Portfolio Company ^(a)	Spread Above Index ^(b)		Interest Rate		Acquisition Date ^(c)	Maturity		Principal		Amortized Cost		Fair Value ^(d)		% of Net Assets ^(e)
Non-Controlled/Non-Affiliate Company Investments
Senior Secured Loans
Automotive
Born To Run, LLC	L+6.00	%	7.00	%	4/1/2021		4/1/2027		3,483	$	3,419	$	3,544		1.4	%
Born To Run, LLC (Delayed Draw) ^{(f) (g)}	L+6.00	%	7.00	%	4/1/2021		4/1/2027		569		33		34		0.0	%
Hastings Manufacturing Company	L+7.25	%	8.25	%	4/24/2018		4/24/2023		2,524		2,508		2,524		1.0	%
Lifted Trucks Holdings, LLC	L+5.75	%	6.75	%	8/2/2021		8/2/2027		7,000		6,866		6,979		2.8	%
Lifted Trucks Holdings, LLC (Delayed Draw) ^{(f) (g)}	L+5.75	%	6.75	%	8/2/2021		8/2/2027		1,400		—		—		0.0	%
Lifted Trucks Holdings, LLC (Revolver) ^(f)	L+5.75	%	6.75	%	8/2/2021		8/2/2027		1,667		444		443		0.2	%
Magneto & Diesel Acquisition, Inc.	L+5.50	%	6.50	%	12/18/2018		12/18/2023		4,850		4,812		4,850		1.9	%
Magneto & Diesel Acquisition, Inc.	L+5.50	%	6.50	%	7/6/2020		12/18/2023		1,908		1,885		1,938		0.8	%
Magneto & Diesel Acquisition, Inc.	L+5.50	%	6.50	%	8/4/2021		12/18/2023		829		815		842		0.4	%
Magneto & Diesel Acquisition, Inc. (Revolver) ^(f)	L+5.50	%	6.50	%	12/18/2018		12/18/2023		500		—		—		0.0	%
									24,730		20,782		21,154		8.5	%
Banking
MV Receivables II, LLC (Delayed Draw) ^{(f) (g) (h)}	L+9.75	%	11.25	%	7/29/2021		7/29/2026		8,000		971		1,289		0.5	%
StarCompliance MidCo, LLC	L+6.75	%	7.75	%	1/12/2021		1/11/2027		2,000		1,965		2,000		0.8	%
StarCompliance MidCo, LLC	L+6.75	%	7.75	%	10/12/2021		1/11/2027		336		329		336		0.1	%
StarCompliance MidCo, LLC (Revolver) ^(f)	L+6.75	%	7.75	%	1/12/2021		1/11/2027		322		—		—		0.0	%

									10,658		3,265		3,625		1.4	%
Beverage, Food & Tobacco
LVF Holdings, Inc.	L+6.25	%	7.25	%	6/10/2021		6/10/2027		1,496		1,468		1,496		0.6	%
LVF Holdings, Inc.	L+6.25	%	7.25	%	6/10/2021		6/10/2027		1,432		1,432		1,432		0.6	%
LVF Holdings, Inc. (Delayed Draw) ^{(f) (g)}	L+6.25	%	7.25	%	6/10/2021		6/10/2027		344		—		—		0.0	%
LVF Holdings, Inc. (Revolver) ^(f)	L+6.25	%	7.25	%	6/10/2021		6/10/2027		238		119		119		0.0	%
LX/JT Intermediate Holdings, Inc. ^(k)	L+6.00	%	7.50	%	3/11/2020		3/11/2025		9,375		9,246		9,239		3.7	%
LX/JT Intermediate Holdings, Inc. (Revolver) ^(f)	L+6.00	%	7.50	%	3/11/2020		3/11/2025		833		—		—		0.0	%
Toojay's Management LLC ^(l)	n/a		n/a	^(m)	10/26/2018		10/26/2022		1,448		1,407		—		0.0	%
Toojay's Management LLC ^(l)	n/a		n/a	^(m)	10/26/2018		10/26/2022		199		199		—		0.0	%
Toojay's Management LLC (Revolver) ^(l)	n/a		n/a	^(m)	10/26/2018		10/26/2022		66		66		—		0.0	%
									15,431		13,937		12,286		4.9	%

Portfolio Company ^(a)	Spread Above Index ^(b)		Interest Rate		Acquisition Date ^(c)	Maturity			Principal		Amortized Cost		Fair Value ^(d)		% of Net Assets ^(e)
FIRE: Finance
J2 BWA Funding LLC (Delayed Draw) ^{(f) (g) (h)}	n/a		9.00	%	12/24/2020		12/24/2026			2,710	$	677	$	677		0.3	%
Liftforward SPV II, LLC ^(h)	L+10.75	%	11.25	%	11/10/2016		9/30/2022			744		744		713		0.3	%
Oceana Australian Fixed Income Trust ^{(h) (i) (j)}	n/a		10.75	%	6/29/2021		6/29/2026			3,288		3,400		3,288		1.3	%
Oceana Australian Fixed Income Trust ^{(h) (i) (j)}	n/a		11.50	%	2/25/2021		2/25/2026			7,805		8,460		7,805		3.1	%
W3 Monroe RE Debt LLC ^(h)	n/a		10.00% PIK		2/5/2021		2/4/2028			2,906		2,906		2,906		1.2	%
										17,453		16,187		15,389		6.2	%
FIRE: Real Estate
Florida East Coast Industries, LLC ^(h)	n/a		10.50	%	8/9/2021		6/28/2024			3,572		3,477		3,571		1.4	%
NCBP Property, LLC ^(h)	L+9.50	%	10.50	%	12/18/2020		12/16/2022			1,950		1,940		1,955		0.8	%
										5,522		5,417		5,526		2.2	%
Healthcare & Pharmaceuticals
Apotheco, LLC	L+8.50%		6.50% Cash/ 3.00% PIK		4/8/2019		4/8/2024			3,632		3,597		3,462		1.4	%
Apotheco, LLC (Revolver)	L+8.50%		6.50% Cash/ 3.00% PIK		4/8/2019		4/8/2024			955		955		910		0.4	%
Brickell Bay Acquisition Corp.	L+6.50%		7.50	%	2/12/2021		2/12/2026			1,899		1,865		1,889		0.7	%
Brickell Bay Acquisition Corp. (Delayed Draw) ^{(f) (g)}	L+6.50%		7.50	%	2/12/2021		2/12/2026			382		—		—		0.0	%
Caravel Autism Health, LLC	L+5.75%		6.75	%	6/30/2021		6/30/2027			5,000		4,906		4,699		1.9	%
Caravel Autism Health, LLC (Delayed Draw) ^{(f) (g)}	L+5.75%		6.75	%	6/30/2021		6/30/2027			3,750		187		176		0.1	%
Caravel Autism Health, LLC (Revolver) ^(f)	L+5.75%		6.75	%	6/30/2021		6/30/2027			1,250		625		587		0.2	%
Dorado Acquisition, Inc.	L+6.75%		7.75	%	6/30/2021		6/30/2026			4,988		4,895		4,983		2.0	%
Dorado Acquisition, Inc. (Delayed Draw) ^{(f) (g)}	L+6.75%		7.75	%	6/30/2021		6/30/2026			216		—		—		0.0	%
Dorado Acquisition, Inc. (Revolver) ^(f)	L+6.75%		7.75	%	6/30/2021		6/30/2026			596		—		—		0.0	%
INH Buyer, Inc.	L+6.00%		7.00	%	6/30/2021		6/28/2028			2,939		2,911		2,857		1.1	%
NationsBenefits, LLC	L+7.00%		8.00	%	8/20/2021		8/20/2026			4,000		3,924		3,993		1.6	%
NationsBenefits, LLC (Revolver) ^(f)	L+7.00%		8.00	%	8/20/2021		8/20/2026			445		—		—		0.0	%
Rockdale Blackhawk, LLC	n/a		n/a	^(o)	3/31/2015		n/a	^(p)		—		—		1,681		0.7	%
Seran BioScience, LLC	L+6.25%		7.25	%	12/31/2020		12/31/2025			2,481		2,440		2,487		1.0	%
Seran BioScience, LLC (Revolver) ^(f)	L+6.25%		7.25	%	12/31/2020		12/31/2025			444		—		—		0.0	%
										32,977		26,305		27,724		11.1	%
High Tech Industries
Arcstor Midco, LLC	L+7.00%		8.00	%	3/16/2021		3/16/2027			4,466		4,386		4,433		1.8	%
MarkLogic Corporation	L+6.00%		7.00	%	10/20/2020		10/20/2025			3,465		3,396		3,517		1.4	%
MarkLogic Corporation	L+6.00%		7.00	%	11/23/2021		10/20/2025			323		317		330		0.1	%
MarkLogic Corporation (Delayed Draw) ^{(f) (g)}	L+6.00%		7.00	%	11/23/2021		10/20/2025			215		—		—		0.0	%
MarkLogic Corporation (Revolver) ^(f)	L+6.00%		7.00	%	10/20/2020		10/20/2025			269		—		—		0.0	%
Mindbody, Inc.	L+8.50%		8.00% Cash/ 1.50% PIK		2/15/2019		2/14/2025			6,487		6,415		6,438		2.6	%
Mindbody, Inc.	L+8.50%		8.00% Cash/ 1.50% PIK		9/22/2021		2/14/2025			669		669		664		0.3	%
Mindbody, Inc. (Revolver) ^(f)	L+8.00%		9.00	%	2/15/2019		2/14/2025			667		—		—		0.0	%
Newforma, Inc. ^(k)	L+5.50%		6.50	%	6/30/2017		6/30/2022			3,890		3,882		3,890		1.6	%
Newforma, Inc. (Revolver) ^(f)	L+5.50%		6.50	%	6/30/2017		6/30/2022			1,250		—		—		0.0	%
Planful, Inc.	L+6.50%		7.50	%	12/28/2018		12/30/2024			9,500		9,414		9,472		3.8	%
Planful, Inc.	L+6.50%		7.50	%	1/11/2021		12/30/2024			1,325		1,325		1,322		0.5	%
Planful, Inc. (Revolver) ^(f)	L+6.50%		7.50	%	12/28/2018		12/30/2024			442		88		88		0.0	%
										32,968		29,892		30,154		12.1	%
Hotels, Gaming & Leisure
Equine Network, LLC	L+8.00%		9.00	%	12/31/2020		12/31/2025			1,737		1,704		1,733		0.7	%
Equine Network, LLC	L+8.00%		9.00	%	1/29/2021		12/31/2025			788		774		786		0.3	%
Equine Network, LLC (Delayed Draw) ^{(f) (g)}	L+8.00%		9.00	%	12/31/2020		12/31/2025			427		—		—		0.0	%
Equine Network, LLC (Revolver) ^(f)	L+8.00%		9.00	%	12/31/2020		12/31/2025			171		85		85		0.1	%
										3,123		2,563		2,604		1.1	%

Portfolio Company ^(a)	Spread Above Index ^(b)		Interest Rate ^(b)			Maturity		Principal		Fair Value		Spread Above Index ^(b)	Interest Rate ^(b)			Maturity		Principal		Fair Value
Non-Controlled/Non-Affiliate Company Investments
Senior Secured Loans
Aerospace & Defense
Bromford Industries Limited ^(c)		L+5.25%		6.25	%		11/5/2025		2,765	$	2,707	P+4.25%		7.75	%		11/5/2025		2,744	$	2,671
Bromford Industries Limited ^(c)		L+5.25%		6.25	%		11/5/2025		1,843		1,805	P+4.25%		7.75	%		11/5/2025		1,829		1,781
Trident Maritime SH, Inc.		L+5.50%		6.50	%		2/26/2027		2,485		2,481
Trident Maritime SH, Inc. (Revolver) ^(d)		L+5.50%		6.50	%		2/26/2027		265		41
Trident Maritime Systems, Inc.												L+5.50%		6.51	%		2/26/2027		2,460		2,460
Trident Maritime Systems, Inc. (Revolver) ^(d)												L+5.50%		6.50	%		2/26/2027		265		204
									7,358		7,034								7,298		7,116
Automotive
Accelerate Auto Works Intermediate, LLC												L+4.75%		5.75	%		12/1/2027		1,451		1,454
Accelerate Auto Works Intermediate, LLC (Delayed Draw) ^(d)												L+4.75%		5.75	%		12/1/2027		388		—
Accelerate Auto Works Intermediate, LLC (Revolver) ^(d)												L+4.75%		5.75	%		12/1/2027		132		—
Truck-Lite Co., LLC		L+6.25%		7.25	%		12/14/2026		1,722		1,720	L+6.25%		7.26	%		12/14/2026		1,704		1,713
Truck-Lite Co., LLC		L+6.25%		7.25	%		12/14/2026		255		255	L+6.25%		7.26	%		12/14/2026		253		254
Wheel Pros, LLC		L+5.25%		6.25	%		11/10/2027		2,993		2,993
									4,970		4,968
Banking, Finance, Insurance & Real Estate
Avison Young (USA), Inc. ^(c)		L+5.00%		5.20	%		1/30/2026		4,888		4,881
Harbour Benefit Holdings, Inc. (fka Zenith Merger Sub, Inc.)		L+5.25%		6.25	%		12/13/2024		4,641		4,576
Harbour Benefit Holdings, Inc. (fka Zenith Merger Sub, Inc.)		L+5.25%		6.25	%		12/13/2024		103		102
Lightbox Intermediate, L.P.		L+5.00%		5.20	%		5/11/2026		4,913		4,863
Minotaur Acquisition, Inc.		L+5.00%		5.11	%		3/27/2026		2,940		2,941
Wheel Pros, Inc.												L+4.50%		5.25	%		5/11/2028		1,947		1,861
									17,485		17,363								5,875		5,282
Beverage, Food & Tobacco
CBC Restaurant Corp.		n/a		5.00% PIK	^(e)		4/28/2022		1,116		1,076	n/a		5.00% PIK	^(e)		12/30/2022		1,116		1,094
SW Ingredients Holdings, LLC		L+4.00%		5.00	%		7/3/2025		3,647		3,645	L+4.75%		5.75	%		7/3/2025		3,609		3,613
									4,763		4,721								4,725		4,707
Capital Equipment
Analogic Corporation		L+5.25%		6.25	%		6/24/2024		4,788		4,788	L+5.25%		6.25	%		6/24/2024		4,739		4,635
DS Parent, Inc.												L+5.75%		6.76	%		12/8/2028		2,963		2,888
MacQueen Equipment, LLC												L+5.25%		6.26	%		1/7/2028		2,112		2,112
MacQueen Equipment, LLC (Delayed Draw) ^(d)												L+5.25%		6.26	%		1/7/2028		592		—
MacQueen Equipment, LLC (Revolver) ^(d)												L+5.25%		6.26	%		1/7/2028		296		59
									4,788		4,788								10,702		9,694
Chemicals, Plastics & Rubber
Polymer Solutions Group		L+7.00%		8.00	%		6/30/2021		1,206		1,177	L+7.00%		8.00	%		1/3/2023		1,168		1,158
									1,206		1,177								1,168		1,158
Construction & Building
The Cook & Boardman Group, LLC		L+5.75%		6.75	%		10/20/2025		2,933		2,864
The Cook & Boardman Group LLC												L+5.75%		6.75	%		10/20/2025		2,902		2,833
									2,933		2,864								2,902		2,833
Consumer Goods: Durable
International Textile Group, Inc.		L+5.00%		5.26	%		5/1/2024		1,746		1,646	L+5.00%		5.21	%		5/1/2024		1,699		1,574
Runner Buyer INC.,												L+5.50%		6.25	%		10/23/2028		3,000		2,880
									1,746		1,646								4,699		4,454
Consumer Goods: Non-Durable
PH Beauty Holdings III, Inc.		L+5.00%		5.19	%		9/26/2025		2,436		2,328
PH Beauty Holdings III, INC												L+5.00%		5.51	%		9/26/2025		2,411		2,279
									2,436		2,328								2,411		2,279
Containers, Packaging & Glass
Liqui-Box Holdings, Inc.		L+4.50%		5.50	%		2/26/2027		4,301		4,107	L+4.50%		5.50	%		2/26/2027		4,257		4,030
Polychem Acquisition, LLC		L+5.00%		5.11	%		3/17/2025		2,940		2,936	L+5.00%		6.50	%		3/17/2025		2,910		2,909
Port Townsend Holdings Company, Inc.		L+6.75%		5.75% Cash/ 2.00% PIK			4/3/2024		4,716		4,291
PVHC Holding Corp.		L+4.75%		5.75	%		8/5/2024		3,242		2,837
Port Townsend Holdings Company, Inc. and Crown Corrugated Company												L+6.75%		5.75% Cash/ 2.00% PIK			4/3/2024		4,820		3,116
PVHC Holding Corp												L+4.75%		5.76	%		8/5/2024		3,209		2,968
									15,199		14,171								15,196		13,023
Energy: Oil & Gas
Drilling Info Holdings, Inc.		L+4.25%		4.36	%		7/30/2025		4,551		4,483	L+4.25%		4.71	%		7/30/2025		4,504		4,457
Offen, Inc.		L+5.00%		5.11	%		6/22/2026		2,406		2,384	L+5.00%		5.46	%		6/22/2026		2,249		2,249
Offen, Inc.		L+5.00%		5.11	%		6/22/2026		883		875	L+5.00%		5.46	%		6/22/2026		874		874
									7,840		7,742								7,627		7,580
FIRE: Finance
Harbour Benefit Holdings, Inc.												L+5.25%		6.26	%		12/13/2024		2,936		2,923
Harbour Benefit Holdings, Inc.												L+5.25%		6.25	%		12/13/2024		65		65
Minotaur Acquisition, Inc.												L+4.75%		5.21	%		3/27/2026		4,895		4,859
																			7,896		7,847
FIRE: Real Estate
Avison Young (USA) Inc. ^(c)												L+5.75%		6.76	%		1/30/2026		4,837		4,819
																			4,837		4,819
Healthcare & Pharmaceuticals
Cano Health, LLC												SF+4.00%		4.51	%		11/23/2027		1,985		1,959
HAH Group Holding Company, LLC ^(f)												SF+5.00%		6.00	%		10/29/2027		3,000		2,970
LSCS Holdings, Inc.												L+4.50%		5.00	%		12/15/2028		1,842		1,825
Paragon Healthcare, Inc.												SF+5.75%		6.75	%		1/19/2028		2,082		2,082
Paragon Healthcare, Inc. (Delayed Draw) ^(d)												SF+5.75%		6.75	%		1/19/2028		429		—
Paragon Healthcare, Inc. (Revolver) ^(d)												SF+5.75%		6.75	%		1/19/2028		490		—
Radiology Partners, Inc.												L+4.25%		4.70	%		7/9/2025		4,760		4,707
TEAM Public Choices, LLC												L+5.00%		6.01	%		12/17/2027		2,977		2,955
																			17,565		16,498
High Tech Industries
Corel Inc. ^(c)												L+5.00%		5.51	%		7/2/2026		3,750		3,751
Lightbox Intermediate, L.P.												L+5.00%		6.01	%		5/11/2026		4,863		4,790
LW Buyer, LLC												L+5.00%		5.15	%		12/30/2024		4,863		4,814
TGG TS Acquisition Company												L+6.50%		6.96	%		12/12/2025		3,435		3,423
																			16,911		16,778
Hotels, Gaming & Leisure
Excel Fitness Holdings, Inc.												L+5.25%		6.25	%		10/7/2025		4,154		4,097
North Haven Spartan US Holdco, LLC												L+5.00%		6.00	%		6/6/2025		2,291		2,093
Tait LLC												L+5.00%		5.22	%		3/28/2025		4,114		3,865
Tait LLC (Revolver)												P+4.00%		7.50	%		3/28/2025		769		736
																			11,328		10,791
Media: Advertising, Printing & Publishing
Cadent, LLC												L+5.00%		6.00	%		9/11/2023		4,339		4,328
Cadent, LLC (Revolver) ^(d)												L+5.00%		6.00	%		9/11/2023		167		—
																			4,506		4,328
Media: Diversified & Production
Research Now Group, Inc. and Survey Sampling International, LLC												L+5.50%		6.50	%		12/20/2024		6,702		6,601
STATS Intermediate Holdings, LLC												L+5.25%		5.72	%		7/10/2026		4,888		4,864
The Octave Music Group, Inc.												L+6.00%		7.00	%		5/29/2025		2,814		2,811
																			14,404		14,276
Services: Business
AQ Carver Buyer, Inc.												L+5.00%		6.01	%		9/23/2025		4,875		4,875
CHA Holdings, Inc												L+4.50%		5.51	%		4/10/2025		1,975		1,896
CHA Holdings, Inc												L+4.50%		5.51	%		4/10/2025		416		400
Eliassen Group LLC												L+4.25%		4.71	%		11/5/2024		3,951		3,951
Engage2Excel, Inc.												L+7.25%		8.25	%		3/7/2023		4,315		4,309
Engage2Excel, Inc.												L+7.25%		8.25	%		3/7/2023		779		777
Engage2Excel, Inc. (Revolver) ^(d)												L+7.25%		8.25	%		3/7/2023		557		452
Orbit Purchaser LLC												L+4.50%		5.51	%		10/21/2024		2,425		2,389
Orbit Purchaser LLC												L+4.50%		5.51	%		10/21/2024		1,873		1,844
Orbit Purchaser LLC												L+4.50%		5.51	%		10/21/2024		548		539
Output Services Group, Inc.												L+4.50%		5.50	%		3/27/2024		4,802		3,756
Secretariat Advisors LLC												L+4.75%		5.76	%		12/29/2028		1,706		1,701
Secretariat Advisors LLC (Delayed Draw) ^(d)												L+4.75%		5.76	%		12/29/2028		270		—
SIRVA Worldwide Inc.												L+5.50%		5.96	%		8/4/2025		1,838		1,704
Teneo Holdings LLC												SF+5.25%		6.25	%		7/11/2025		4,875		4,842
The Kleinfelder Group, Inc.												L+5.25%		6.25	%		11/29/2024		2,381		2,381
																			37,586		35,816
Services: Consumer
360Holdco, Inc.												L+4.75%		5.75	%		8/2/2025		2,162		2,155
360Holdco, Inc. (Delayed Draw) ^(d)												L+4.75%		5.75	%		8/2/2025		827		—
Laseraway Intermediate Holdings II, LLC												L+5.75%		6.50	%		10/14/2027		2,217		2,194
McKissock Investment Holdings, LLC												SF+5.00%		5.95	%		3/9/2029		2,500		2,491
																			7,706		6,840
Telecommunications
Intermedia Holdings, Inc.												L+6.00%		7.00	%		7/21/2025		1,774		1,762
Mavenir Systems, Inc.												L+4.75%		5.25	%		8/18/2028		1,667		1,661
Sandvine Corporation												L+4.50%		4.96	%		10/31/2025		2,000		1,981
																			5,441		5,404
Transportation: Cargo
Keystone Purchaser, LLC												L+6.25%		7.25	%		5/7/2027		2,992		2,992
																			2,992		2,992
Utilities: Oil & Gas
Dresser Utility Solutions, LLC (fka NGS US Finco, LLC)												L+4.25%		5.25	%		10/1/2025		1,691		1,640
Dresser Utility Solutions, LLC (fka NGS US Finco, LLC)												L+5.25%		6.25	%		10/1/2025		247		244
																			1,938		1,884
Wholesale
BMC Acquisition, Inc.												L+5.25%		6.25	%		12/30/2024		4,486		4,385
HALO Buyer, Inc.												L+4.50%		5.51	%		6/30/2025		4,812		4,470
																			9,298		8,855

TOTAL INVESTMENTS																				$	195,254

Portfolio Company ^(a)	Spread Above Index ^(b)	Interest Rate ^(b)		Maturity	Principal		Fair Value
Healthcare & Pharmaceuticals
LSCS Holdings, Inc.	L+4.25%	4.45	%	3/17/2025	2,293	$	2,270
LSCS Holdings, Inc.	L+4.25%	4.45	%	3/17/2025	592		586
Radiology Partners, Inc.	L+4.25%	4.36	%	7/9/2025	4,760		4,731
					7,645		7,587
High Tech Industries
Corel, Inc. ^(c)	L+5.00%	5.19	%	7/2/2026	3,875		3,863
LW Buyer, LLC	L+5.00%	5.11	%	12/30/2024	4,912		4,888
TGG TS Acquisition Company	L+6.50%	6.61	%	12/12/2025	3,679		3,698
					12,466		12,449
Hotels, Gaming & Leisure
Excel Fitness Holdings, Inc.	L+5.25%	6.25	%	10/7/2025	4,197		4,020
North Haven Spartan US Holdco, LLC	L+5.00%	6.00	%	6/6/2025	2,315		1,998
Tait, LLC	L+5.00%	5.20	%	3/28/2025	4,157		3,695
Tait, LLC (Revolver)	P+4.00%	7.25	%	3/28/2025	769		715
					11,438		10,428
Media: Advertising, Printing & Publishing
Cadent, LLC	L+5.25%	6.25	%	9/11/2023	4,728		4,716
Cadent, LLC (Revolver) ^(d)	L+5.25%	6.25	%	9/11/2023	167		—
Digital Room Holdings, Inc.	L+5.00%	5.20	%	5/21/2026	4,351		4,284
Monotype Imaging Holdings, Inc.	L+5.50%	6.50	%	10/9/2026	4,875		4,865
					14,121		13,865
Media: Diversified & Production
Research Now Group, Inc. and Survey Sampling International, LLC	L+5.50%	6.50	%	12/20/2024	6,772		6,723
Stats Intermediate Holding, LLC	L+5.25%	5.45	%	7/10/2026	4,937		4,937
The Octave Music Group, Inc.	L+6.00%	6.25% Cash/ 0.75% PIK		5/29/2025	4,828		4,580
					16,537		16,240
Services: Business
AQ Carver Buyer, Inc.	L+5.00%	6.00	%	9/23/2025	4,938		4,925
CHA Holdings, Inc.	L+4.50%	5.50	%	4/10/2025	1,997		1,867
CHA Holdings, Inc.	L+4.50%	5.50	%	4/10/2025	421		394
Eliassen Group, LLC	L+4.25%	4.36	%	11/5/2024	3,013		2,968
Engage2Excel, Inc.	L+8.00%	7.00% Cash/ 2.00% PIK		3/7/2023	4,309		4,285
Engage2Excel, Inc.	L+8.00%	7.00% Cash/ 2.00% PIK		3/7/2023	777		773
Engage2Excel, Inc. (Revolver) ^(d)	L+8.00%	7.00% Cash/ 2.00% PIK		3/7/2023	550		373
GI Revelation Acquisition, LLC	L+5.00%	5.11	%	4/16/2025	1,362		1,366
Legility, LLC	L+6.00%	7.00	%	12/17/2025	4,875		4,719
Orbit Purchaser, LLC	L+4.50%	5.50	%	10/21/2024	2,450		2,460
Orbit Purchaser, LLC	L+4.50%	5.50	%	10/21/2024	1,892		1,900
Orbit Purchaser, LLC	L+4.50%	5.50	%	10/21/2024	553		555
Output Services Group, Inc.	L+4.50%	5.50	%	3/27/2024	4,852		4,124
SIRVA Worldwide, Inc.	L+5.50%	5.70	%	8/4/2025	1,887		1,746
Teneo Holdings, LLC	L+5.25%	6.25	%	7/11/2025	4,925		4,929
The Kleinfelder Group, Inc.	L+5.25%	6.25	%	11/29/2024	2,444		2,444
					41,245		39,828
Services: Consumer
Cambium Learning Group, Inc.	L+4.50%	5.25	%	12/18/2025	4,516		4,527
LegalZoom.com, Inc.	L+4.50%	4.61	%	11/21/2024	2,687		2,688
					7,203		7,215
Telecommunications
Intermedia Holdings, Inc.	L+6.00%	7.00	%	7/21/2025	1,792		1,796
Mavenir Systems, Inc.	L+6.00%	7.00	%	5/8/2025	3,890		3,897
					5,682		5,693
Transportation: Cargo
GlobalTranz Enterprises, LLC	L+5.00%	5.11	%	5/15/2026	3,254		3,129
					3,254		3,129
Utilities: Oil & Gas
NGS US Finco, LLC	L+4.25%	5.25	%	10/1/2025	1,708		1,640
NGS US Finco, LLC	L+5.25%	6.25	%	10/1/2025	249		245
					1,957		1,885
Wholesale
BMC Acquisition, Inc.	L+5.25%	6.25	%	12/30/2024	4,837		4,816
HALO Buyer, Inc.	L+4.50%	5.50	%	6/30/2025	4,862		4,704
PT Intermediate Holdings III, LLC	L+5.50%	6.50	%	10/15/2025	1,975		1,958
					11,674		11,478

TOTAL INVESTMENTS						$	198,599

^(a)	All investments are U.S. companies unless otherwise noted.
^(b)	The majority of investments bear interest at a rate that may be determined by reference to the London Interbank Offered Rate ~~(“LIBOR”~~("LIBOR" or ~~“L”~~"L"), Secured Overnight Financing Rate ("SOFR" or "SF") or Prime ~~(“P”~~("P") which reset daily, monthly, quarterly or semiannually. ~~For each such investment, the~~The Company has provided the spread over LIBOR, SOFR or Prime and the current contractual rate of interest in effect at March 31, ~~2021.~~2022. Certain investments are subject to a LIBOR, SOFR or Prime interest rate ~~floor, or rate cap.~~floor.
^(c)	This is an international company.
^(d)	All or a portion of this commitment was unfunded as of March 31, 2022. As such, interest is earned only on the funded portion of this commitment. Principal reflects the commitment outstanding.
^(e)	This position was on non-accrual status as of March 31, 2022, meaning that the Company has ceased accruing interest income on the position.
^(f)	Investment position or portion thereof unsettled at March 31, 2022.

~~(a)~~	~~All investments are U.S. companies unless otherwise noted.~~
~~(b)~~	~~The majority of the investments bear interest at a rate that may be determined by reference to the London Interbank Offered Rate (“LIBOR”~~ or “L”) or Prime Rate (“Prime” or “P”) which reset daily, monthly, quarterly, or semiannually. For each such investment, the Company has provided the spread over LIBOR or Prime and the current contractual interest rate in effectportion thereof unsettled at December 31, ~~2020. Certain investments are subject to a LIBOR or Prime interest rate floor, or rate cap.~~2021.
~~(c)~~	~~This is an international company.~~
~~(d)~~	~~All or a portion of this commitment was unfunded as of December 31, 2020. As such, interest is earned only on the funded portion of this commitment. Principal reflects the commitment outstanding.~~
~~(e)~~^(f)	This position was on non-accrual status as of December 31, ~~2020,~~2021, meaning that the Company has ceased accruing interest income on the position.

	·	the quarterly valuation process begins with each portfolio company or investment being initially evaluated and rated by the investment professionals of MC Advisors responsible for the credit monitoring of the portfolio investment;

	·	the Board engages one or more independent valuation firm(s) to conduct independent appraisals of a selection of investments for which market quotations are not readily available. The Company will consult with independent valuation firm(s) relative to each portfolio company at least once in every calendar year, but the independent appraisals are generally received quarterly for each investment;

	·	to the extent an independent valuation firm is not engaged to conduct an investment appraisal on an investment for which market quotations are not readily available, the investment will be valued by the MC Advisors investment professional responsible for the credit monitoring;

	·	preliminary valuation conclusions are then documented and discussed with the investment committee of MC Advisors;

	·	the audit committee of the Board reviews the preliminary valuations of MC Advisors and of the independent valuation firm(s) and MC Advisors adjusts or further supplements the valuation recommendations to reflect any comments provided by the audit committee; and

	·	the Board discusses these valuations and determines the fair value of each investment in the portfolio in good faith, based on the input of MC Advisors, the independent valuation firm(s) and the audit committee.

	Fair Value Measurements								Fair Value Measurements
March 31, 2021	Level 1		Level 2		Level 3		Total
March 31, 2022									Level 1		Level 2		Level 3		Total
Investments:
Senior secured loans	$	—	$	—	$	392,399	$	392,399	$	—	$	—	$	418,798	$	418,798
Unitranche secured loans		—		—		48,298		48,298		—		—		34,785		34,785
Junior secured loans		—		—		11,999		11,999		—		—		19,521		19,521
Equity securities		—		—		27,616		27,616		1,745		—		30,930		32,675
Investments measured at NAV ^{(1) (2)}		—		—		—		41,067		—		—		—		40,210
Total investments	$	—	$	—	$	480,312	$	521,379	$	1,745	$	—	$	504,034	$	545,989
Foreign currency forward contracts asset (liability)	$	—	$	221	$	—	$	221	$	—	$	365	$	—	$	365

	Investments															Investments
	Senior secured loans			Unitranche secured loans			Junior secured loans			Equity securities			Total investments			Senior secured loans			Unitranche secured loans			Junior secured loans			Equity securities		Total Level 3 investments
Balance as of December 31, 2020	$	405,224		$	64,040		$	14,592		$	23,899		$	507,755
Balance as of December 31, 2021																$	423,700		$	51,494		$	14,364		$	29,969	$	519,527
Net realized gain (loss) on investments		(194	)		—			—			2			(192	)		(9	)		(94	)		—			—		(103	)
Net change in unrealized gain (loss) on investments		2,625			(3,563	)		286			3,491			2,839			(376	)		(2,676	)		(232	)		334		(2,950	)
Purchases of investments and other adjustments to cost ⁽¹⁾		44,896			424			168			287			45,775			16,390			1,360			5,389			627		23,766
Proceeds from principal payments and sales of investments ⁽²⁾		(60,152	)		(12,603	)		(3,047	)		(63	)		(75,865	)		(20,907	)		(15,299	)		—			—		(36,206	)
Reclassifications ⁽³⁾		—			—			—			—			—
Balance as of March 31, 2021	$	392,399		$	48,298		$	11,999		$	27,616		$	480,312
Balance as of March 31, 2022																$	418,798		$	34,785		$	19,521		$	30,930	$	504,034

⁽¹⁾	Includes purchases of new investments, effects of refinancing and restructurings, premium and discount accretion and amortization and PIK interest.
⁽²⁾	Represents net proceeds from investments sold and principal paydowns received.
~~(3)~~	~~Represents non-cash reclassification of investment type due to a restructuring.~~

						Weighted														Weighted
				Valuation	Unobservable	Average			Range										Unobservable	Average			Range
	Fair Value			Technique	Input	Mean			Minimum			Maximum			Fair Value			Valuation Technique	Input	Mean			Minimum			Maximum
Assets:
Senior secured loans	$	242,639		Discounted cash flow	EBITDA multiples		7.3	x		4.5	x		16.5	x	$	291,818		Discounted cash flow	EBITDA multiples		9.5	x		4.5	x		17.8	x
					Market yields		10.0	%		6.0	%		20.0	%					Market yields		10.5	%		5.8	%		20.0	%
Senior secured loans		95,709		Discounted cash flow	Revenue multiples		4.9	x		0.5	x		12.3	x		88,091		Discounted cash flow	Revenue multiples		6.0	x		0.6	x		12.5	x
					Market yields		8.7	%		6.3	%		17.0	%					Market yields		9.6	%		5.8	%		14.1	%
Senior secured loans		21,616		Enterprise value	Book value multiples		2.0	x		2.0	x		2.0	x		23,817		Enterprise value	Book value multiples		1.3	x		1.3	x		1.3	x
Senior secured loans		16,096		Enterprise value	Revenue multiples		2.2	x		0.7	x		2.7	x		5,840		Enterprise value	Revenue multiples		2.7	x		2.7	x		2.7	x
Senior secured loans		7,047		Enterprise value	EBITDA multiples		5.8	x		5.8	x		5.8	x		5,345		Enterprise value	EBITDA multiples		4.8	x		4.8	x		4.8	x
Senior secured loans		4,786		Liquidation	Probability weighting of alternative outcomes		74.0	%		1.1	%		100.0	%		2,744		Liquidation	Probability weighting of alternative outcomes		88.1	%		39.7	%		100.0	%
Unitranche loans		40,735		Discounted cash flow	EBITDA multiples		8.6	x		7.3	x		10.3	x
Unitranche secured loans																30,765		Discounted cash flow	EBITDA multiples		8.8	x		7.0	x		11.8	x
					Market yields		9.7	%		8.1	%		12.8	%					Market yields		8.1	%		7.5	%		10.0	%
Unitranche loans		7,563		Enterprise value	Revenue multiples		0.6	x		0.6	x		0.6	x
Unitranche secured loans																2,340		Enterprise value	Revenue multiples		0.5	x		0.5	x		0.5	x
Unitranche secured loans																1,680		Discounted cash flow	Revenue multiples		12.8	x		12.8	x		12.8	x
																			Market yields		9.5	%		9.5	%		9.5	%
Junior secured loans		3,934		Discounted cash flow	Market yields		9.8	%		9.8	%		9.8	%		18,945		Discounted cash flow	Market yields		14.6	%		9.3	%		25.6	%
Junior secured loans		765		Liquidation	Probability weighting of alternative outcomes		91.9	%		91.9	%		91.9	%		576		Liquidation	Probability weighting of alternative outcomes		69.1	%		69.1	%		69.1	%
Equity securities		11,859		Enterprise value	EBITDA multiples		8.3	x		5.0	x		15.3	x		17,206		Enterprise value	EBITDA multiples		7.5	x		4.3	x		16.3	x
Equity securities		8,277		Enterprise value	Revenue multiples		1.8	x		0.5	x		12.0	x		6,833		Enterprise value	Revenue multiples		4.2	x		0.6	x		12.5	x
Equity securities		5,117		Liquidation	Probability weighting of alternative outcomes		54.6	%		54.6	%		54.6	%		2,281		Liquidation	Probability weighting of alternative outcomes		20.3	%		20.3	%		20.3	%
Equity securities		286		Enterprise value	Tangible book value multiples		2.0	x		2.0	x		2.0	x		438		Discounted cash flow	EBITDA multiples		7.0	x		7.0	x		7.0	x
																			Market yields		25.0	%		25.0	%		25.0	%
Equity securities		122		Option pricing model	Volatility		65.0	%		65.0	%		65.0	%		355		Option pricing model	Volatility		42.5	%		42.5	%		42.5	%
Total Level 3 Assets	$	466,551	⁽¹⁾												$	499,074	⁽¹⁾

					Unobservable	Weighted Average			Range
	Fair Value			Valuation Technique	Input	Mean			Minimum			Maximum
Assets:
Senior secured loans	$	305,252		Discounted cash flow	EBITDA multiples		7.7	x		5.0	x		20.0	x
					Market yields		9.6	%		5.3	%		20.0	%
Senior secured loans		79,913		Discounted cash flow	Revenue multiples		6.5	x		0.5	x		13.0	x
					Market yields		8.4	%		5.2	%		13.1	%
Senior secured loans		23,484		Enterprise value	Book value multiples		1.5	x		1.5	x		1.5	x
Senior secured loans		5,771		Enterprise value	Revenue multiples		2.8	x		2.8	x		2.8	x
Senior secured loans		5,111		Enterprise value	EBITDA multiples		6.5	x		6.5	x		6.5	x
Senior secured loans		3,026		Liquidation	Probability weighting of alternative outcomes		88.2	%		48.2	%		100.0	%
Unitranche secured loans		45,072		Discounted cash flow	EBITDA multiples		8.4	x		5.5	x		11.0	x
					Market yields		8.5	%		7.3	%		13.3	%
Unitranche secured loans		4,950		Enterprise value	Revenue multiples		0.6	x		0.6	x		0.6	x
Unitranche secured loans		1,472		Discounted cash flow	Revenue multiples		14.0	x		14.0	x		14.0	x
					Market yields		8.3	%		8.3	%		8.3	%
Junior secured loans		12,266		Discounted cash flow	Market yields		15.8	%		8.0	%		25.1	%
Junior secured loans		1,522		Discounted cash flow	Revenue multiples		15.0	x		15.0	x		15.0	x
					Market yields		2.0	%		2.0	%		2.0	%
Junior secured loans		576		Liquidation	Probability weighting of alternative outcomes		69.1	%		69.1	%		69.1	%
Equity securities		15,688		Enterprise value	EBITDA multiples		5.6	x		4.5	x		15.1	x
Equity securities		6,448		Enterprise value	Revenue multiples		4.8	x		0.6	x		12.3	x
Equity securities		2,281		Liquidation	Probability weighting of alternative outcomes		24.4	%		24.4	%		24.4	%
Equity securities		714		Discounted cash flow	EBITDA multiples		13.3	x		13.3	x		13.3	x
					Market yields		12.3	%		12.3	%		12.3	%
Equity securities		455		Option pricing model	Volatility		42.5	%		42.5	%		42.5	%
Equity securities		264		Enterprise value	Tangible book value multiples		1.5	x		1.5	x		1.5	x
Total Level 3 Assets	$	514,265	⁽¹⁾

Portfolio Company	Fair value at December 31, 2020		Transfers in (out)		Purchases		Sales and paydowns			PIK interest		Discount accretion		Net realized gain (loss)			Net unrealized gain (loss)			Fair value at March 31, 2021
Non-controlled affiliate company investment:
American Community Homes, Inc.	$	9,401	$	—	$	—	$	(90	)	$	274	$	—	$	—		$	—		$	9,585
American Community Homes, Inc.		6,239		—		—		(2,229	)		202		—		—			—			4,212
American Community Homes, Inc.		825		—		—		(838	)		13		—		—			—			—
American Community Homes, Inc.		570		—		—		(5	)		16		—		—			—			581
American Community Homes, Inc.		335		—		—		(341	)		6		—		—			—			—
American Community Homes, Inc.		2,915		—		—		(20	)		61		—		—			175			3,131
American Community Homes, Inc.		3,879		—		—		(37	)		113		—		—			42			3,997
American Community Homes, Inc.		18		—		—		—			1		—		—			—			19
American Community Homes, Inc.		89		—		—		(1	)		3		—		—			—			91
American Community Homes, Inc. (Revolver)		—		—		—		—			—		—		—			—			—
American Community Homes, Inc. (warrant to purchase up to 22.3% of the equity)		—		—		—		—			—		—		—			286			286
		24,271		—		—		(3,561	)		689		—		—			503			21,902

Ascent Midco, LLC		6,997		—		—		(18	)		—		7		—			(5	)		6,981
Ascent Midco, LLC (Delayed Draw)		—		—		—		—			—		—		—			—			—
Ascent Midco, LLC (Revolver)		—		—		—		—			—		—		—			—			—
Ascent Midco, LLC (2,032,258 Class A units)		3,016		—		—		—			—		—		—			266			3,282
		10,013		—		—		(18	)		—		7		—			261			10,263

Curion Holdings, LLC		3,159		—		—		—			—		—		—			426			3,585
Curion Holdings, LLC (Revolver)		820		—		—		—			—		—		—			2			822
Curion Holdings, LLC (Junior secured loan)		—		—		—		—			—		—		—			—			—
Curion Holdings, LLC (Junior secured loan)		—		—		—		—			—		—		—			—			—
Curion Holdings, LLC (58,779 shares of common stock)		—		—		—		—			—		—		—			—			—
		3,979		—		—		—			—		—		—			428			4,407

Familia Dental Group Holdings, LLC (1,052 Class A units)		3,118		—		—		—			—		—		—			232			3,350
		3,118		—		—		—			—		—		—			232			3,350

HFZ Capital Group, LLC		13,106		—		—		—			—		—		—			1,169			14,275
HFZ Capital Group, LLC		4,709		—		—		—			—		—		—			420			5,129
MC Asset Management (Corporate), LLC		—		—		6,423		—			—		—		—			—			6,423
MC Asset Management (Corporate), LLC (15.9% interests)		785		—		—		—			—		—		—			(209	)		576
MC Asset Management (Industrial), LLC		11,579		—		—		—			98		—		—			(98	)		11,579
		30,179		—		6,423		—			98		—		—			1,282			37,982

Incipio, LLC		1,764		—		—		—			—		—		—			(1,764	)		—
Incipio, LLC		4,227		—		—		—			48		—		—			(2,187	)		2,088
Incipio, LLC		1,805		—		—		—			15		—		—			(79	)		1,741
Incipio, LLC		761		—		—		—			6		—		—			(33	)		734
Incipio, LLC		1,519		—		—		—			13		—		—			(67	)		1,465
Incipio, LLC (Delayed Draw)		1,488		—		108		—			9		—		—			(70	)		1,535
Incipio, LLC (Junior secured loan)		—		—		—		—			—		—		—			—			—
Incipio, LLC (Junior secured loan)		—		—		—		—			—		—		—			—			—
Incipio, LLC (1,774 shares of Series C common units)		—		—		—		—			—		—		—			—			—
		11,564		—		108		—			91		—		—			(4,200	)		7,563

Luxury Optical Holdings Co.		1,430		—		—		—			—		—		—			12			1,442
Luxury Optical Holdings Co. (Delayed Draw)		624		—		882		(45	)		—		—		—			45			1,506
Luxury Optical Holdings Co. (Revolver)		66		—		—		—			—		—		—			—			66
Luxury Optical Holdings Co. (90 preferred units)		2,476		—		—		—			—		—		—			(38	)		2,438
Luxury Optical Holdings Co. (86 shares of common stock)		—		—		—		—			—		—		—			—			—
		4,596		—		882		(45	)		—		—		—			19			5,452

Mnine Holdings, Inc.		12,356		—		—		—			147		11		—			(3	)		12,511
Mnine Holdings, Inc. (6,400 Class B units)		—		—		—		—			—		—		—			—			—
		12,356		—		—		—			147		11		—			(3	)		12,511

NECB Collections, LLC (Revolver)		834		—		—		—			—		—		—			(27	)		807
NECB Collections, LLC (20.8% of units)		—		—		—		—			—		—		—			—			—
		834		—		—		—			—		—		—			(27	)		807

SHI Holdings, Inc.		188		—		—		—			—		—		—			(73	)		115
SHI Holdings, Inc. (Revolver)		297		—		—		—			—		—		—			(115	)		182
SHI Holdings, Inc. (24 shares of common stock)		—		—		—		—			—		—		—			—			—
		485		—		—		—			—		—		—			(188	)		297

Summit Container Corporation		3,204		—		—		(3,019	)		—		—		(250	)		65			—
Summit Container Corporation (Revolver)		1,654		—		5,402		(7,059	)		—		—		—			3			—
Summit Container Corporation (warrant to purchase up to 19.5% of the equity)		139		—		—		—			—		—		—			(139	)		—
		4,997		—		5,402		(10,078	)		—		—		(250	)		(71	)		—

TJ Management HoldCo, LLC (Revolver)		—		—		—		—			—		—		—			—			—
TJ Management HoldCo, LLC (16 shares of common stock)		3,323		—		—		—			—		—		—			(38	)		3,285
		3,323		—		—		—			—		—		—			(38	)		3,285
Total non-controlled affiliate company investments	$	109,715	$	—	$	12,815	$	(13,702	)	$	1,025	$	18	$	(250	)	$	(1,802	)	$	107,819

Controlled affiliate company investments:
MRCC Senior Loan Fund I, LLC	$	39,284	$	—	$	—	$	—		$	—	$	—	$	—		$	1,783		$	41,067
		39,284		—		—		—			—		—		—			1,783			41,067
Total controlled affiliate company investments	$	39,284	$	—	$	—	$	—		$	—	$	—	$	—		$	1,783		$	41,067

Portfolio Company	Fair value at December 31, 2021		Transfers in (out)		Purchases (cost)		Sales and paydowns (cost)			PIK interest (cost)		Discount accretion		Net realized gain (loss)		Net unrealized gain (loss)			Fair value at March 31, 2022
Non-controlled affiliate company investment:
American Community Homes, Inc.	$	10,457	$	—	$	—	$	—		$	362	$	—	$	—	$	(62	)	$	10,757
American Community Homes, Inc.		4,753		—		—		—			191		—		—		(28	)		4,916
American Community Homes, Inc.		634		—		—		—			15		—		—		(4	)		645
American Community Homes, Inc.		3,164		—		—		—			56		—		—		(259	)		2,961
American Community Homes, Inc.		4,357		—		—		—			127		—		—		(68	)		4,416
American Community Homes, Inc.		20		—		—		—			1		—		—		—			21
American Community Homes, Inc.		99		—		—		—			2		—		—		—			101
American Community Homes, Inc. (warrant to purchase up to 22.3% of the equity)		264		—		—		—			—		—		—		(264	)		—
		23,748		—		—		—			754		—		—		(685	)		23,817

Ascent Midco, LLC		6,392		—		—		(44	)		—		8		—		(8	)		6,348
Ascent Midco, LLC (Revolver)		—		—		—		—			—		—		—		—			—
Ascent Midco, LLC (2,032,258 Class A units)		2,554		—		—		—			—		—		—		(89	)		2,465
		8,946		—		—		(44	)		—		8		—		(97	)		8,813

Curion Holdings, LLC		4,561		—		—		(47	)		—		—		—		256			4,770
Curion Holdings, LLC (Revolver)		550		—		—		(5	)		—		—		—		30			575
Curion Holdings, LLC (Junior secured loan)		—		—		—		—			—		—		—		—			—
Curion Holdings, LLC (Junior secured loan)		—		—		—		—			—		—		—		—			—
Curion Holdings, LLC (58,779 shares of common stock)		—		—		—		—			—		—		—		—			—
		5,111		—		—		(52	)		—		—		—		286			5,345

Familia Dental Group Holdings, LLC (1,105 Class A units)		1,919		—		183		—			—		—		—		(134	)		1,968
		1,919		—		183		—			—		—		—		(134	)		1,968

HFZ Capital Group, LLC		15,084		—		—		—			—		—		—		265			15,349
HFZ Capital Group, LLC		5,420		—		—		—			—		—		—		95			5,515
MC Asset Management (Corporate), LLC		7,154		—		—		—			302		—		—		—			7,456
MC Asset Management (Corporate), LLC (Delayed Draw)		850		—		—		—			35		—		—		—			885
MC Asset Management (Corporate), LLC (15.9% of interests)		644		—		—		—			—		—		—		(194	)		450
		29,152		—		—		—			337		—		—		166			29,655

Mnine Holdings, Inc.		5,771		—		—		—			73		5		—		(9	)		5,840
Mnine Holdings, Inc. (6,400 Class B units)		—		—		—		—			—		—		—		—			—
		5,771		—		—		—			73		5		—		(9	)		5,840

NECB Collections, LLC (Revolver)		632		—		—		—			—		—		—		(112	)		520
NECB Collections, LLC (20.8% of units)		—		—		—		—			—		—		—		—			—
		632		—		—		—			—		—		—		(112	)		520

Second Avenue SFR Holdings II LLC (Revolver) ⁽¹⁾		2,104		—		488		—			—		—		—		—			2,592
		2,104		—		488		—			—		—		—		—			2,592

SFR Holdco, LLC (Junior secured loan)		5,850		—		—		—			—		—		—		—			5,850
SFR Holdco, LLC (24.4% of interests)		3,900		—		—		—			—		—		—		—			3,900
		9,750		—		—		—			—		—		—		—			9,750

TJ Management HoldCo, LLC (Revolver)		—		—		—		—			—		—		—		—			—
TJ Management HoldCo, LLC (16 shares of common stock)		3,148		—		—		—			—		—		—		196			3,344
		3,148		—		—		—			—		—		—		196			3,344
Total non-controlled affiliate company investments	$	90,281	$	—	$	671	$	(96	)	$	1,164	$	13	$	—	$	(389	)	$	91,644

Controlled affiliate company investments:
MRCC Senior Loan Fund I, LLC	$	41,125	$	—	$	—	$	—		$	—	$	—	$	—	$	(915	)	$	40,210
		41,125		—		—		—			—		—		—		(915	)		40,210
Total Controlled affiliate company investments	$	41,125	$	—	$	—	$	—		$	—	$	—	$	—	$	(915	)	$	40,210

Portfolio Company	Fair value at December 31, 2020		Transfers in (out)		Purchases		Sales and paydowns			PIK interest		Discount accretion		Net realized gain (loss)			Net unrealized gain (loss)			Fair value at March 31, 2021
Non-controlled affiliate company investment:
American Community Homes, Inc.	$	9,401	$	—	$	—	$	(90	)	$	274	$	—	$	—		$	—		$	9,585
American Community Homes, Inc.		6,239		—		—		(2,229	)		202		—		—			—			4,212
American Community Homes, Inc.		825		—		—		(838	)		13		—		—			—			—
American Community Homes, Inc.		570		—		—		(5	)		16		—		—			—			581
American Community Homes, Inc.		335		—		—		(341	)		6		—		—			—			—
American Community Homes, Inc.		2,915		—		—		(20	)		61		—		—			175			3,131
American Community Homes, Inc.		3,879		—		—		(37	)		113		—		—			42			3,997
American Community Homes, Inc.		18		—		—		—			1		—		—			—			19
American Community Homes, Inc.		89		—		—		(1	)		3		—		—			—			91
American Community Homes, Inc. (Revolver)		—		—		—		—			—		—		—			—			—
American Community Homes, Inc. (warrant to purchase up to 22.3% of the equity)		—		—		—		—			—		—		—			286			286
		24,271		—		—		(3,561	)		689		—		—			503			21,902

Ascent Midco, LLC		6,997		—		—		(18	)		—		7		—			(5	)		6,981
Ascent Midco, LLC (Delayed Draw)		—		—		—		—			—		—		—			—			—
Ascent Midco, LLC (Revolver)		—		—		—		—			—		—		—			—			—
Ascent Midco, LLC (2,032,258 Class A units)		3,016		—		—		—			—		—		—			266			3,282
		10,013		—		—		(18	)		—		7		—			261			10,263

Curion Holdings, LLC		3,159		—		—		—			—		—		—			426			3,585
Curion Holdings, LLC (Revolver)		820		—		—		—			—		—		—			2			822
Curion Holdings, LLC (Junior secured loan)		—		—		—		—			—		—		—			—			—
Curion Holdings, LLC (Junior secured loan)		—		—		—		—			—		—		—			—			—
Curion Holdings, LLC (58,779 shares of common stock)		—		—		—		—			—		—		—			—			—
		3,979		—		—		—			—		—		—			428			4,407

Familia Dental Group Holdings, LLC (1,052 Class A units)		3,118		—		—		—			—		—		—			232			3,350
		3,118		—		—		—			—		—		—			232			3,350

HFZ Capital Group, LLC		13,106		—		—		—			—		—		—			1,169			14,275
HFZ Capital Group, LLC		4,709		—		—		—			—		—		—			420			5,129
MC Asset Management (Corporate), LLC		—		—		6,423		—			—		—		—			—			6,423
MC Asset Management (Corporate), LLC (15.9% of interests)		785		—		—		—			—		—		—			(209	)		576
MC Asset Management (Industrial), LLC		11,579		—		—		—			98		—		—			(98	)		11,579
		30,179		—		6,423		—			98		—		—			1,282			37,982

Incipio, LLC		1,764		—		—		—			—		—		—			(1,764	)		—
Incipio, LLC		4,227		—		—		—			48		—		—			(2,187	)		2,088
Incipio, LLC		1,805		—		—		—			15		—		—			(79	)		1,741
Incipio, LLC		761		—		—		—			6		—		—			(33	)		734
Incipio, LLC		1,519		—		—		—			13		—		—			(67	)		1,465
Incipio, LLC (Delayed Draw)		1,488		—		108		—			9		—		—			(70	)		1,535
Incipio, LLC (Junior secured loan)		—		—		—		—			—		—		—			—			—
Incipio, LLC (Junior secured loan)		—		—		—		—			—		—		—			—			—
Incipio, LLC (1,774 shares of Series C common units)		—		—		—		—			—		—		—			—			—
		11,564		—		108		—			91		—		—			(4,200	)		7,563

Luxury Optical Holdings Co.		1,430		—		—		—			—		—		—			12			1,442
Luxury Optical Holdings Co. (Delayed Draw)		624		—		882		(45	)		—		—		—			45			1,506
Luxury Optical Holdings Co. (Revolver)		66		—		—		—			—		—		—			—			66
Luxury Optical Holdings Co. (90 preferred units)		2,476		—		—		—			—		—		—			(38	)		2,438
Luxury Optical Holdings Co. (86 shares of common stock)		—		—		—		—			—		—		—			—			—
		4,596		—		882		(45	)		—		—		—			19			5,452

Mnine Holdings, Inc.		12,356		—		—		—			147		11		—			(3	)		12,511
Mnine Holdings, Inc. (6,400 Class B units)		—		—		—		—			—		—		—			—			—
		12,356		—		—		—			147		11		—			(3	)		12,511

NECB Collections, LLC (Revolver)		834		—		—		—			—		—		—			(27	)		807
NECB Collections, LLC (20.8% of units)		—		—		—		—			—		—		—			—			—
		834		—		—		—			—		—		—			(27	)		807

SHI Holdings, Inc.		188		—		—		—			—		—		—			(73	)		115
SHI Holdings, Inc. (Revolver)		297		—		—		—			—		—		—			(115	)		182
SHI Holdings, Inc. (24 shares of common stock)		—		—		—		—			—		—		—			—			—
		485		—		—		—			—		—		—			(188	)		297

Summit Container Corporation		3,204		—		—		(3,019	)		—		—		(250	)		65			—
Summit Container Corporation (Revolver)		1,654		—		5,402		(7,059	)		—		—		—			3			—
Summit Container Corporation (warrant to purchase up to 19.5% of the equity)		139		—		—		—			—		—		—			(139	)		—
		4,997		—		5,402		(10,078	)		—		—		(250	)		(71	)		—

TJ Management HoldCo, LLC (Revolver)		—		—		—		—			—		—		—			—			—
TJ Management HoldCo, LLC (16 shares of common stock)		3,323		—		—		—			—		—		—			(38	)		3,285
		3,323		—		—		—			—		—		—			(38	)		3,285
Total non-controlled affiliate company investments	$	109,715	$	—	$	12,815	$	(13,702	)	$	1,025	$	18	$	(250	)	$	(1,802	)	$	107,819

Controlled affiliate company investments:
MRCC Senior Loan Fund I, LLC	$	39,284	$	—	$	—	$	—		$	—	$	—	$	—		$	1,783		$	41,067
		39,284		—		—		—			—		—		—			1,783			41,067
Total controlled affiliate company investments	$	39,284	$	—	$	—	$	—		$	—	$	—	$	—		$	1,783		$	41,067

																					For the three months ended March 31,
																					2022						2021
Portfolio Company	Fair value at December 31, 2019		Transfers in (out)		Purchases		Sales and paydowns			PIK interest		Discount accretion		Net realized gain (loss)		Net unrealized gain (loss)			Fair value at March 31, 2020		Interest Income		Dividend Income		Fee Income		Interest Income		Dividend Income		Fee Income
Non-controlled affiliate company investment:
Non-controlled affiliate company investments:
American Community Homes, Inc.	$	6,764	$	—	$	—	$	—		$	266	$	2	$	—	$	(773	)	$	6,259	$	361	$	—	$	—	$	272	$	—	$	—
American Community Homes, Inc.		4,289		—		—		—			235		1		—		(511	)		4,014		189		—		—		198		—		—
American Community Homes, Inc.		512		—		—		—			21		—		—		(59	)		474		n/a		n/a		n/a		13		—		—
American Community Homes, Inc.		410		—		—		—			16		—		—		(47	)		379		15		—		—		16		—		—
American Community Homes, Inc.		230		—		—		—			13		—		—		(27	)		216		n/a		n/a		n/a		5		—		—
American Community Homes, Inc.		1,472		—		—		—			48		—		—		(165	)		1,355		55		—		—		60		—		—
American Community Homes, Inc.		2,760		—		—		—			90		—		—		(309	)		2,541		125		—		—		112		—		—
American Community Homes, Inc.		11		—		—		—			1		—		—		(2	)		10		—		—		—		19		—		—
American Community Homes, Inc.		1,168		—		—		(1,111	)		9		—		—		(8	)		58		2		—		—		3		—		—
American Community Homes, Inc. (Revolver)		—		—		1,667		—			—		—		—		(520	)		1,147		n/a		n/a		n/a		—		—		—
American Community Homes, Inc. (warrant to purchase up to 22.3% of the equity)		—		—		—		—			—		—		—		—			—
American Community Homes, Inc. (Warrant)																						—		—		—		—		—		—
		17,616		—		1,667		(1,111	)		699		3		—		(2,421	)		16,453		747		—		—		698		—		—

Ascent Midco, LLC		—		—		6,860		(17	)		—		4		—		(130	)		6,717		112		—		—		120		—		—
Ascent Midco, LLC (Delayed Draw)		—		—		—		—			—		—		—		—			—		n/a		n/a		n/a		4		—		—
Ascent Midco, LLC (Revolver)		—		—		734		—			—		—		—		(28	)		706		1		—		—		1		—		—
Ascent Midco, LLC (2,032,258 Class A units)		—		—		2,032		—			—		—		—		(54	)		1,978
Ascent Midco, LLC (Class A units)																						—		45		—		—		42		—
		—		—		9,626		(17	)		—		4		—		(212	)		9,401		113		45		—		125		42		—

Curion Holdings, LLC		3,279		—		—		—			—		—		—		(268	)		3,011		—		—		—		—		—		—
Curion Holdings, LLC (Revolver)		441		—		—		—			—		—		—		(1	)		440		—		—		—		—		—		—
Curion Holdings, LLC (Junior secured loan)		—		—		—		—			—		—		—		—			—		—		—		—		—		—		—
Curion Holdings, LLC (Junior secured loan)		—		—		—		—			—		—		—		—			—		—		—		—		—		—		—
Curion Holdings, LLC (58,779 shares of common stock)		—		—		—		—			—		—		—		—			—
Curion Holdings, LLC (Common units)																						—		—		—		—		—		—
																						—		—		—		—		—		—

Familia Dental Group Holdings, LLC (Class A units)																						—		—		—		—		—		—
																						—		—		—		—		—		—

HFZ Capital Group, LLC																						463		—		—		463		—		—
HFZ Capital Group, LLC																						167		—		—		167		—		—
MC Asset Management (Corporate), LLC																						298		—		—		183		—		—
MC Asset Management (Corporate), LLC (Delayed Draw)																						35		—		—		n/a		n/a		n/a
MC Asset Management (Corporate), LLC (LLC interest)																						—		—		—		—		—		—
MC Asset Management (Industrial), LLC																						n/a		n/a		n/a		522		—		—
		3,720		—		—		—			—		—		—		(269	)		3,451		963		—		—		1,335		—		—

Incipio, LLC		12,343		—		—		—			128		—		—		(6,444	)		6,027		n/a		n/a		n/a		—		—		—
Incipio, LLC		3,750		—		—		—			99		—		—		(38	)		3,811		n/a		n/a		n/a		—		—		—
Incipio, LLC		1,606		—		—		—			42		—		—		(17	)		1,631		n/a		n/a		n/a		—		—		—
Incipio, LLC		686		—		—		—			18		—		—		(8	)		696		n/a		n/a		n/a		—		—		—
Incipio, LLC		—		—		1,404		—			19		—		—		(28	)		1,395		n/a		n/a		n/a		—		—		—
Incipio, LLC (Delayed Draw)																						n/a		n/a		n/a		—		—		—
Incipio, LLC (Junior secured loan)		—		—		—		—			—		—		—		—			—		n/a		n/a		n/a		—		—		—
Incipio, LLC (Junior secured loan)		—		—		—		—			—		—		—		—			—		n/a		n/a		n/a		—		—		—
Incipio, LLC (1,774 shares of Series C common units)		—		—		—		—			—		—		—		—			—
Incipio, LLC (Common units)																						n/a		n/a		n/a		—		—		—
		18,385		—		1,404		—			306		—		—		(6,535	)		13,560		n/a		n/a		n/a		—		—		—

Luxury Optical Holdings Co.		3,457		—		—		—			—		—		—		(500	)		2,957		n/a		n/a		n/a		—		—		—
Luxury Optical Holdings Co. (Delayed Draw)		620		—		—		—			—		—		—		(5	)		615		n/a		n/a		n/a		—		—		—
Luxury Optical Holdings Co. (Revolver)		159		—		—		—			—		—		—		(23	)		136		n/a		n/a		n/a		—		—		—
Luxury Optical Holdings Co. (86 shares of common stock)		—		—		—		—			—		—		—		—			—
Luxury Optical Holdings Co. (Preferred units)																						n/a		n/a		n/a		—		—		—
Luxury Optical Holdings Co. (Common stock)																						n/a		n/a		n/a		—		—		—
		4,236		—		—		—			—		—		—		(528	)		3,708		n/a		n/a		n/a		—		—		—

NECB Collection, LLC (Revolver)		1,148		—		112		—			—		—		—		—			1,260
NECB Collection, LLC (20.8% of units)		318		—		—		—			—		—		—		(198	)		120
Mnine Holdings, Inc.																						180		—		—		334		—		—
Mnine Holdings, Inc. (Common units)																						—		—		—		—		—		—
																						180		—		—		334		—		—

NECB Collections, LLC (Revolver)																						—		—		—		—		—		—
NECB Collections, LLC (LLC units)																						—		—		—		—		—		—
																						—		—		—		—		—		—

Second Avenue SFR Holdings II LLC (Revolver)																						47		—		—		n/a		n/a		n/a
																						47		—		—		n/a		n/a		n/a

SFR Holdco, LLC (Junior secured loan)																						117		—		—		n/a		n/a		n/a
SFR Holdco, LLC (LLC interest)																						—		—		—		n/a		n/a		n/a
		1,466		—		112		—			—		—		—		(198	)		1,380		117		—		—		n/a		n/a		n/a

SHI Holdings, Inc.		2,459		—		—		—			—		—		—		(1,279	)		1,180		n/a		n/a		n/a		—		—		—
SHI Holdings, Inc. (Revolver)		3,601		—		345		—			—		—		—		(2,078	)		1,868		n/a		n/a		n/a		—		—		—
SHI Holdings, Inc. (24 shares of common stock)		—		—		—		—			—		—		—		—			—
SHI Holdings, Inc. (Common stock)																						n/a		n/a		n/a		—		—		—
		6,060		—		345		—			—		—		—		(3,357	)		3,048		n/a		n/a		n/a		—		—		—

Summit Container Corporation		2,971		—		—		—			—		—		—		(171	)		2,800		n/a		n/a		n/a		57		—		—
Summit Container Corporation (Revolver)		5,406		—		8,236		(9,409	)		—		—		—		(16	)		4,217		n/a		n/a		n/a		35		—		—
Summit Container Corporation (warrant to purchase up to 19.5% of the equity)		—		—		—		—			—		—		—		—			—
Summit Container Corporation (Warrant)																						n/a		n/a		n/a		—		—		—
																						n/a		n/a		n/a		92		—		—

TJ Management HoldCo, LLC (Revolver)																						3		—		—		3		—		—
TJ Management HoldCo, LLC (Common stock)																						—		—		—		—		—		—
																						3		—		—		3		—		—
		8,377		—		8,236		(9,409	)		—		—		—		(187	)		7,017
Total non-controlled affiliate company investments	$	59,860	$	—	$	21,390	$	(10,537	)	$	1,005	$	7	$	—	$	(13,707	)	$	58,018	$	2,170	$	45	$	—	$	2,587	$	42	$	—

Controlled affiliate company investments:
MRCC Senior Loan Fund I, LLC	$	42,412	$	—	$	—	$	—		$	—	$	—	$	—	$	(11,087	)	$	31,325	$	—	$	900	$	—	$	—	$	1,200	$	—
		42,412		—		—		—			—		—		—		(11,087	)		31,325		—		900		—		—		1,200		—
Total controlled affiliate company investments	$	42,412	$	—	$	—	$	—		$	—	$	—	$	—	$	(11,087	)	$	31,325	$	—	$	900	$	—	$	—	$	1,200	$	—

Portfolio Company ^(a)	Spread Above Index ^(b)		Interest Rate ^(b)			Maturity		Principal		Fair Value
Non-Controlled/Non-Affiliate Company Investments
Senior Secured Loans
Aerospace & Defense
Bromford Industries Limited ^(c)	L+5.25	%		6.25	%		11/5/2025		2,772	$	2,685
Bromford Industries Limited ^(c)	L+5.25	%		6.25	%		11/5/2025		1,848		1,790
Trident Maritime SH, Inc.	L+4.75	%		5.75	%		6/4/2024		4,401		4,363
Trident Maritime SH, Inc. (Revolver) ^(d)	L+4.75	%		5.75	%		6/4/2024		340		—
									9,361		8,838
Automotive
Truck-Lite Co., LLC	L+6.25	%		7.25	%		12/14/2026		1,726		1,716
Truck-Lite Co., LLC	L+6.25	%		7.25	%		12/14/2026		256		254
Wheel Pros, LLC	L+5.25	%		6.25	%		11/10/2027		3,000		2,961
									4,982		4,931
Banking, Finance, Insurance & Real Estate
Avison Young (USA), Inc. ^(c)	L+5.00	%		5.25	%		1/30/2026		4,900		4,659
Harbour Benefit Holdings, Inc. (fka Zenith Merger Sub, Inc.)	L+5.25	%		6.25	%		12/13/2024		4,653		4,585
Harbour Benefit Holdings, Inc. (fka Zenith Merger Sub, Inc.) (Delayed Draw) ^(d)	L+5.25	%		6.25	%		12/13/2024		264		102
Lightbox Intermediate, L.P.	L+5.00	%		5.15	%		5/11/2026		4,925		4,777
Minotaur Acquisition, Inc.	L+5.00	%		5.15	%		3/27/2026		2,947		2,900
									17,689		17,023
Beverage, Food & Tobacco
CBC Restaurant Corp.	n/a			5.00% PIK			4/28/2022		1,117		1,031
SW Ingredients Holdings, LLC	L+4.00	%		5.00	%		7/3/2025		3,656		3,647
									4,773		4,678
Capital Equipment
Analogic Corporation	L+5.25	%		6.25	%		6/24/2024		4,800		4,800
									4,800		4,800
Chemicals, Plastics & Rubber
Polymer Solutions Group	L+7.00	%		8.00	%		6/30/2021		1,216		1,189
									1,216		1,189
Construction & Building
ISC Purchaser, LLC	L+4.00	%		5.00	%		7/11/2025		4,937		4,896
The Cook & Boardman Group, LLC	L+5.75	%		6.75	%		10/20/2025		2,940		2,811
									7,877		7,707
Consumer Goods: Durable
International Textile Group, Inc.	L+5.00	%		5.37	%		5/1/2024		1,758		1,597
									1,758		1,597
Consumer Goods: Non-Durable
PH Beauty Holdings III, Inc.	L+5.00	%		5.23	%		9/26/2025		2,442		2,149
									2,442		2,149
Containers, Packaging & Glass
Liqui-Box Holdings, Inc.	L+4.50	%		5.50	%		2/26/2027		4,312		3,848
Polychem Acquisition, LLC	L+5.00	%		5.15	%		3/17/2025		2,948		2,948
Port Townsend Holdings Company, Inc.	L+6.75	%		5.75% Cash/ 2.00% PIK			4/3/2024		4,683		4,263
PVHC Holding Corp.	L+4.75	%		5.75	%		8/5/2024		3,250		2,844
									15,193		13,903
Energy: Oil & Gas
Drilling Info Holdings, Inc.	L+4.25	%		4.40	%		7/30/2025		4,563		4,429
Offen, Inc.	L+5.00	%		5.15	%		6/22/2026		2,412		2,343
Offen, Inc.	L+5.00	%		5.15	%		6/22/2026		885		860
									7,860		7,632
Healthcare & Pharmaceuticals
LSCS Holdings, Inc.	L+4.25	%		4.51	%		3/17/2025		2,299		2,253
LSCS Holdings, Inc.	L+4.25	%		4.51	%		3/17/2025		593		582
Radiology Partners, Inc.	L+4.25	%		4.40	%		7/9/2025		4,760		4,692
									7,652		7,527
High Tech Industries
AQA Acquisition Holding, Inc.	L+4.25	%		5.25	%		5/24/2023		3,257		3,257
Corel, Inc. ^(c)	L+5.00	%		5.23	%		7/2/2026		3,900		3,844
LW Buyer, LLC	L+5.00	%		5.15	%		12/30/2024		4,925		4,900
TGG TS Acquisition Company	L+6.50	%		6.65	%		12/12/2025		3,753		3,720
									15,835		15,721
Hotels, Gaming & Leisure
Excel Fitness Holdings, Inc.	L+5.25	%		6.25	%		10/7/2025		4,207		3,878
North Haven Spartan US Holdco, LLC	L+5.00	%		6.00	%		6/6/2025		2,321		1,979
Tait, LLC	L+5.00	%		5.23	%		3/28/2025		4,167		3,669
Tait, LLC (Revolver)	P+4.00	%		7.25	%		3/28/2025		769		711
									11,464		10,237
Media: Advertising, Printing & Publishing
Cadent, LLC	L+5.50	%		6.50	%		9/11/2023		4,728		4,622
Cadent, LLC (Revolver) ^(d)	L+5.50	%		6.50	%		9/11/2023		167		—
Digital Room Holdings, Inc.	L+5.00	%		5.27	%		5/21/2026		4,362		4,133
Monotype Imaging Holdings, Inc.	L+5.50	%		6.50	%		10/9/2026		4,906		4,653
									14,163		13,408
Media: Diversified & Production
Research Now Group, Inc. and Survey Sampling International, LLC	L+5.50	%		6.50	%		12/20/2024		6,790		6,708
Stats Intermediate Holding, LLC	L+5.25	%		5.47	%		7/10/2026		4,950		4,909
The Octave Music Group, Inc.	L+6.00	%		6.25% Cash/ 0.75% PIK			5/29/2025		4,871		4,335
									16,611		15,952

	March 31, 2021			December 31, 2020			March 31, 2022			December 31, 2021
	(unaudited)						(unaudited)
Assets
Investments, at fair value	$	198,599		$	205,695		$	195,254		$	189,109
Cash		25			351			111			40
Restricted cash		3,136			2,948			5,900			4,862
Interest receivable		714			629			773			600
Other assets		86			43			24			12
Total assets	$	202,560		$	209,666			202,062			194,623
Liabilities
Revolving credit facility	$	121,614		$	131,497			120,114			94,765
Less: Unamortized deferred financing costs		(1,570	)		(969	)		(2,121	)		(2,319	)
Total debt, less unamortized deferred financing costs		120,044			130,528			117,993			92,446
Payable for open trades								2,895			19,367
Interest payable		91			294			299			242
Accounts payable and accrued expenses		291			277			455			318
Total liabilities		120,426			131,099			121,642			112,373
Members’ capital		82,134			78,567			80,420			82,250
Total liabilities and members’ capital	$	202,560		$	209,666		$	202,062		$	194,623

	Increase (decrease) in		Increase (decrease) in			Net increase (decrease) in net			Increase (decrease) in		Increase (decrease) in		Net increase (decrease) in net
Change in Interest Rates	interest income		interest expense			investment income			interest income		interest expense		investment income
Down 25 basis points	$	—	$	(9	)	$	9		$	(58)	$	—	$	(58	)
Up 100 basis points		538		568			(30	)		1,706		1,793		(87	)
Up 200 basis points		4,595		1,497			3,098			5,937		3,676		2,261
Up 300 basis points		8,881		2,425			6,456			10,193		5,559		4,634

	Assumed Return on Our Portfolio (Net of Expenses) ⁽¹⁾
	-10%			-5%			0%			5%			10%
Corresponding return to common stockholder ⁽²⁾⁽³⁾		-28.81	%		-16.98	%		-5.15	%		6.69	%		18.52	%

Exhibit
Number		Description of Document

3.1		Amended and Restated Articles of Incorporation of Monroe Capital Corporation (Incorporated by reference to Exhibit (a)(1) of the Registrant’s Pre-Effective Amendment No. 8 to the Registration Statement on Form N-2 (File No. 333-172601) filed on October 18, 2012)

3.2		Bylaws of Monroe Capital Corporation (Incorporated by reference to Exhibit (b)(1) of the Registrant’s Pre-Effective Amendment No. 8 to the Registration Statement on Form N-2 (File No. 333-172601) filed on October 18, 2012)

~~4.1~~		Second Supplemental Indenture by and between the Registrant and U.S. Bank National Association, as trustee (Incorporated by reference to Exhibit 4.1 of the Registrant’s Current Report on Form 8-K (File No. 814-00866) filed on January 25, 2021)

~~4.2~~		Form of Global Note with respect to the 4.75% Notes due 2026 (Incorporated by reference to Exhibit 4.1 of the Registrant’s Current Report on Form 8-K (File No. 814-00866) filed on January 25, 2021, and Exhibit A therein)

31.1		Certification of Chief Executive Officer pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)

31.2		Certification of Chief Financial Officer pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)

32.1		Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith)