Part I. Financial Information

Item 1. Consolidated Financial Statements

MONROE CAPITAL CORPORATION

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

(in thousands, except per share data)

	September 30, 2017			December 31, 2016
	(unaudited)

							June 30, 2022		December 31, 2021
							(unaudited)
ASSETS
Investments, at fair value:
Non-controlled/non-affiliate company investments	$	368,634		$	353,980		$	407,457	$	430,287
Non-controlled affiliate company investments		53,595			50,041			91,031		90,281
Controlled affiliate company investments		8,868			8,899			37,551		41,125
Total investments, at fair value (amortized cost of: $439,922 and $413,242, respectively)		431,097			412,920
Total investments, at fair value (amortized cost of: $567,129 and $576,178, respectively)								536,039		561,693
Cash		3,721			5,958			5,969		2,622
Restricted cash		5,689			2,373			—		15,459
Unrealized gain on foreign currency forward contracts								1,421		781
Interest receivable		4,220			2,643			12,302		9,476
Other assets		535			651			600		427
Total assets		445,262			424,545			556,331		590,458


LIABILITIES
Debt:
Revolving credit facility		60,612			129,000			190,000		151,045
2026 Notes								130,000		130,000
SBA debentures payable		92,100			51,500			—		56,900
Total debt		152,712			180,500			320,000		337,945
Less: Unamortized deferred financing costs		(4,524	)		(3,945	)		(3,743)		(5,794)
Total debt, less unamortized deferred financing costs		148,188			176,555			316,257		332,151
Secured borrowings, at fair value (proceeds of: $0 and $1,320, respectively)		-			1,314
Payable for open trades		7,425			-
Interest payable		541			735			2,759		3,304
Management fees payable		1,953			1,749			2,269		2,454
Incentive fees payable		1,721			1,222			657		435
Accounts payable and accrued expenses		1,855			2,120			2,268		2,643
Directors' fees payable		37			-
Total liabilities		161,720			183,695			324,210		340,987
Net assets	$	283,542		$	240,850		$	232,121	$	249,471

Commitments and contingencies (See Note 10)


Commitments and contingencies (See Note 11)

ANALYSIS OF NET ASSETS
Common stock, $0.001 par value, 100,000 shares authorized, 20,240 and 16,582 shares issued and outstanding, respectively	$	20		$	17
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		286,269			233,526			298,687		298,687
Undistributed net investment income (accumulated distributions in excess of net investment income)		6,081			7,037
Accumulated net realized gain (loss) on investments and secured borrowings		81			587
Accumulated net unrealized gain (loss) on investments, secured borrowings and foreign currency borrowings		(8,909	)		(317	)
Accumulated undistributed (overdistributed) earnings								(66,588)		(49,238)
Total net assets	$	283,542		$	240,850		$	232,121	$	249,471


Net asset value per share	$	14.01		$	14.52		$	10.71	$	11.51

See Notes to Consolidated Financial Statements.

Table of Contents

MONROE CAPITAL CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

(in thousands, except per share data)


	Three months ended June 30,				Six months ended June 30,
	2022		2021		2022		2021
Investment income:
Non-controlled/non-affiliate company investments:
Interest income	$	7,992	$	8,079	$	16,647	$	16,312
Payment-in-kind interest income		644		227		1,301		881
Dividend income		100		30		164		50
Fee income		1,192		300		1,192		777
Total investment income from non-controlled/non-affiliate company investments		9,928		8,636		19,304		18,020
Non-controlled affiliate company investments:
Interest income		1,366		1,102		2,372		2,664
Payment-in-kind interest income		753		1,507		1,917		2,532
Dividend income		48		44		93		86
Total investment income from non-controlled affiliate company investments		2,167		2,653		4,382		5,282
Controlled affiliate company investments:
Dividend income		900		1,075		1,800		2,275
Total investment income from controlled affiliate company investments		900		1,075		1,800		2,275
Total investment income		12,995		12,364		25,486		25,577

Operating expenses:
Interest and other debt financing expenses		3,776		3,842		7,698		8,295
Base management fees		2,269		2,327		4,612		4,661
Incentive fees		774		420		1,182		1,250
Professional fees		248		240		528		466
Administrative service fees		303		337		633		693
General and administrative expenses		287		269		506		529
Directors’ fees		39		39		74		74
Expenses before base management fee and incentive fee waivers		7,696		7,474		15,233		15,968
Base management fee waivers		—		—		(55)		—
Incentive fee waivers		(117)		(420)		(525)		(1,057)
Total expenses, net of base management fee and incentive fee waivers		7,579		7,054		14,653		14,911
Net investment income before income taxes		5,416		5,310		10,833		10,666
Income taxes, including excise taxes		402		153		421		183
Net investment income		5,014		5,157		10,412		10,483

Net gain (loss):
Net realized gain (loss):
Non-controlled/non-affiliate company investments		20		909		(83)		967
Non-controlled affiliate company investments		—		—		—		(250)
Extinguishment of debt		—		—		(1,039)		(2,774)
Foreign currency forward contracts		19		(37)		31		(75)
Foreign currency and other transactions		(28)		—		(37)		(14)
Net realized gain (loss)		11		872		(1,128)		(2,146)

Net change in unrealized gain (loss):
Non-controlled/non-affiliate company investments		(9,375)		4,243		(11,232)		8,884
Non-controlled affiliate company investments		(910)		705		(1,299)		(1,097)
Controlled affiliate company investments		(3,159)		318		(4,074)		2,101
Foreign currency forward contracts		1,056		112		640		446
Foreign currency and other transactions		(1)		(77)		164		(286)
Net change in unrealized gain (loss)		(12,389)		5,301		(15,801)		10,048

Net gain (loss)		(12,378)		6,173		(16,929)		7,902

Net increase (decrease) in net assets resulting from operations	$	(7,364)	$	11,330	$	(6,517)	$	18,385

Per common share data:
Net investment income per share - basic and diluted	$	0.23	$	0.24	$	0.48	$	0.49
Net increase (decrease) in net assets resulting from operations per share - basic and diluted	$	(0.34)	$	0.53	$	(0.30)	$	0.86
Weighted average common shares outstanding - basic and diluted		21,666		21,361		21,666		21,333

Three months ended September 30, Nine months ended September 30,
2017 2016 2017 2016
Investment income:
Interest income:
Non-controlled/non-affiliate company investments $ 10,887 $ 8,387 $ 30,995 $ 25,109
Non-controlled affiliate company investments 1,470 1,117 3,777 3,282
Controlled affiliate company investments 200 20 594 30
Total interest income 12,557 9,524 35,366 28,421
Dividend income:
Non-controlled/non-affiliate company investments 251 251 751 751
Non-controlled affiliate company investments - 1,133 - 3,546
Total dividend income 251 1,384 751 4,297
Fee income:
Non-controlled/non-affiliate company investments 661 220 1,626 1,067
Total fee income 661 220 1,626 1,067
Total investment income 13,469 11,128 37,743 33,785

Operating expenses:
Interest and other debt financing expenses 1,907 1,523 6,101 4,987
Base management fees 1,953 1,594 5,661 4,598
Incentive fees 1,721 1,223 4,471 4,282
Professional fees 277 237 854 682
Administrative service fees 295 324 926 956
General and administrative expenses 292 265 760 611
Excise taxes 100 342 100 429
Directors' fees 37 37 111 111
Expenses before incentive fee waiver 6,582 5,545 18,984 16,656
Incentive fee waiver - - (250 ) -
Total expenses, net of incentive fee waiver 6,582 5,545 18,734 16,656
Net investment income 6,887 5,583 19,009 17,129

Net gain (loss) on investments, secured borrowings and foreign currency borrowings:
Net realized gain (loss):
Non-controlled/non-affiliate company investments (2,900 ) - (572 ) 587
Secured borrowings - - 66 -
Net realized gain (loss) (2,900 ) - (506 ) 587

Net change in unrealized gain (loss):
Non-controlled/non-affiliate company investments 3,099 200 3,788 (920 )
Non-controlled affiliate company investments 454 618 (8,902 ) 3,814
Controlled affiliate company investments (1,155 ) (2,666 ) (3,389 ) (3,741 )
Secured borrowings - (123 ) (6 ) (36 )
Foreign currency borrowings (67 ) - (83 ) -
Net change in unrealized gain (loss) 2,331 (1,971 ) (8,592 ) (883 )

Net gain (loss) on investments, secured borrowings and foreign currency borrowings (569 ) (1,971 ) (9,098 ) (296 )

Net increase (decrease) in net assets resulting from operations $ 6,318 $ 3,612 $ 9,911 $ 16,833

Per common share data:
Net investment income per share - basic and diluted $ 0.34 $ 0.36 $ 1.05 $ 1.24
Net increase in net assets resulting from operations per share - basic and diluted $ 0.31 $ 0.23 $ 0.55 $ 1.21
Weighted average common shares outstanding - basic and diluted 20,240 15,559 18,081 13,864

See Notes to Consolidated Financial Statements.

Table of Contents

MONROE CAPITAL CORPORATION

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

(unaudited)

(in thousands)


						Accumulated
	Common Stock					undistributed
		Par		Capital in excess of		(overdistributed)		Total
	Number of shares	value		par value		earnings		net assets
Balances at March 31, 2021	21,304	$	21	$	294,897	$	(58,755)	$	236,163
Net investment income	—		—		—		5,157		5,157
Net realized gain (loss)	—		—		—		872		872
Net change in unrealized gain (loss)	—		—		—		5,301		5,301
Issuance of common stock, net of offering and underwriting costs	240		1		2,689		—		2,690
Distributions to stockholders	—		—		—		(5,386)		(5,386)
Balances at June 30, 2021	21,544	$	22	$	297,586	$	(52,811)	$	244,797

Balances at March 31, 2022	21,666	$	22	$	298,687	$	(53,808)	$	244,901
Net investment income	—		—		—		5,014		5,014
Net realized gain (loss)	—		—		—		11		11
Net change in unrealized gain (loss)	—		—		—		(12,389)		(12,389)
Issuance of common stock, net of offering and underwriting costs	—		—		—		—		—
Distributions to stockholders	—		—		—		(5,416)		(5,416)
Balances at June 30, 2022	21,666	$	22	$	298,687	$	(66,588)	$	232,121

Common Stock Capital in excess Undistributed net investment
income (accumulated distributions in excess of net Accumulated net
realized gain (loss) on investments and Accumulated net unrealized gain
(loss) on investments, secured borrowings and foreign
Number of
shares Par
value of par
value
investment
income)
secured
borrowings currency
borrowings Total
net assets
Balances at December 31, 2015 13,008 $ 13 $ 184,419 $ 1,692 $ - $ (1,589 ) $ 184,535
Net increase (decrease) in net assets resulting from operations - - - 17,129 587 (883 ) 16,833
Issuance of common stock, net of offering and underwriting costs 3,566 4 52,551 - - - 52,555
Distributions to stockholders:
Stock issued in connection with dividend reinvestment plan 4 - 70 (70 ) - - -
Distributions from net investment income - - - (14,836 ) - - (14,836 )
Balances at September 30, 2016 16,578 $ 17 $ 237,040 $ 3,915 $ 587 $ (2,472 ) $ 239,087

Balances at December 31, 2016 16,582 $ 17 $ 233,526 $ 7,037 $ 587 $ (317 ) $ 240,850
Net increase (decrease) in net assets resulting from operations - - - 19,009 (506 ) (8,592 ) 9,911
Issuance of common stock, net of offering and underwriting costs 3,624 3 52,218 - - - 52,221
Distributions to stockholders:
Stock issued in connection with dividend reinvestment plan 34 - 525 (525 ) - - -
Distributions from net investment income - - - (19,440 ) - - (19,440 )
Balances at September 30, 2017 20,240 $ 20 $ 286,269 $ 6,081 $ 81 $ (8,909 ) $ 283,542


						Accumulated
	Common Stock					undistributed
		Par		Capital in excess of		(overdistributed)		Total
	Number of shares	value		par value		earnings		net assets
Balances at December 31, 2020	21,304	$	21	$	294,897	$	(60,484)	$	234,434
Net investment income	—		—		—		10,483		10,483
Net realized gain (loss)	—		—		—		(2,146)		(2,146)
Net change in unrealized gain (loss)	—		—		—		10,048		10,048
Issuance of common stock, net of offering and underwriting costs	240		1		2,689		—		2,690
Distributions to stockholders	—		—		—		(10,712)		(10,712)
Balances at June 30, 2021	21,544	$	22	$	297,586	$	(52,811)	$	244,797

Balances at December 31, 2021	21,666	$	22	$	298,687	$	(49,238)	$	249,471
Net investment income	—		—		—		10,412		10,412
Net realized gain (loss)	—		—		—		(1,128)		(1,128)
Net change in unrealized gain (loss)	—		—		—		(15,801)		(15,801)
Issuance of common stock, net of offering and underwriting costs	—		—		—		—		—
Distributions to stockholders	—		—		—		(10,833)		(10,833)
Balances at June 30, 2022	21,666	$	22	$	298,687	$	(66,588)	$	232,121

See Notes to Consolidated Financial Statements.

Table of Contents

MONROE CAPITAL CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(in thousands)


	Six months ended June 30,
	2022		2021
Cash flows from operating activities:
Net increase (decrease) in net assets resulting from operations	$	(6,517)	$	18,385
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by
(used in) operating activities:
Net realized (gain) loss on investments		83		(717)
Net realized (gain) loss on extinguishment of debt		1,039		2,774
Net realized (gain) loss on foreign currency forward contracts		(31)		75
Net realized (gain) loss on foreign currency and other transactions		37		14
Net change in unrealized (gain) loss on investments		16,605		(9,888)
Net change in unrealized (gain) loss on foreign currency forward contracts		(640)		(446)
Net change in unrealized (gain) loss on foreign currency and other transactions		(164)		286
Payment-in-kind interest income		(3,218)		(3,413)
Net accretion of discounts and amortization of premiums		(645)		(617)
Purchases of investments		(42,827)		(99,567)
Proceeds from principal payments, sales of investments and settlement of forward contracts		55,687		131,177
Amortization of deferred financing costs		1,091		1,138
Changes in operating assets and liabilities:
Interest receivable		(2,826)		(2,294)
Other assets		(173)		(603)
Interest payable		(545)		1,225
Management fees payable		(185)		349
Incentive fees payable		222		—
Accounts payable and accrued expenses		(375)		(279)
Net cash provided by (used in) operating activities		16,618		37,599

Cash flows from financing activities:
Borrowings on revolving credit facility		97,100		175,500
Repayments of revolving credit facility		(57,999)		(175,650)
Repayment of 2023 Notes		—		(109,000)
Proceeds from 2026 Notes		—		130,000
Repayment of SBA debentures		(56,900)		(28,100)
Payments of deferred financing costs		(79)		(4,038)
Proceeds from shares sold, net of offering and underwriting costs		—		2,690
Stockholder distributions paid, net of stock issued under the dividend reinvestment plan of $0, and $0, respectively		(10,833)		(10,712)
Net cash provided by (used in) financing activities		(28,711)		(19,310)

Net increase (decrease) in Cash and Restricted cash		(12,093)		18,289
Effect of foreign currency exchange rates		(19)		(41)
Cash and Restricted cash, beginning of period		18,081		32,426
Cash and Restricted cash, end of period	$	5,969	$	50,674

Supplemental disclosure of cash flow information:
Cash interest paid during the period	$	7,080	$	5,874
Cash paid for income taxes, including excise taxes during the period	$	578	$	400

Table of Contents

MONROE CAPITAL CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS - (continued)

(unaudited)

(in thousands)

Nine months ended September 30,
2017 2016

Cash flows from operating activities:
Net increase (decrease) in net assets resulting from operations $ 9,911 $ 16,833
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:
Net change in unrealized (gain) loss on investments 8,503 847
Net change in unrealized (gain) loss on secured borrowings 6 36
Net change in unrealized (gain) loss on foreign currency borrowings 83 -
Net realized (gain) loss on investments 572 (587 )
Net realized (gain) loss on secured borrowings (66 ) -
Payment-in-kind interest income (1,363 ) (1,430 )
Net accretion of discounts and amortization of premiums (1,278 ) (1,137 )
Proceeds from principal payments and sales of investments 144,445 62,459
Purchases of investments (169,056 ) (95,717 )
Amortization of deferred financing costs 760 603
Changes in operating assets and liabilities:
Interest receivable (1,577 ) (515 )
Other assets 116 329
Payable for open trades 7,425 (4,693 )
Interest payable (194 ) (369 )
Management fees payable 204 91
Incentive fees payable 499 109
Accounts payable and accrued expenses (265 ) 827
Directors' fees payable 37 (37 )
Net cash provided by (used in) operating activities (1,238 ) (22,351 )

Cash flows from financing activities:
Borrowings on revolving credit facility 93,529 64,000
Repayments of revolving credit facility (162,000 ) (83,200 )
SBA debentures borrowings 40,600 -
Payments of deferred financing costs (1,339 ) (917 )
Repayments on secured borrowings (1,254 ) (902 )
Proceeds from shares sold, net of offering and underwriting costs 52,221 52,555
Stockholder distributions paid, net of stock issued under the dividend reinvestment plan of $525 and $70, respectively (19,440 ) (14,836 )
Net cash provided by (used in) financing activities 2,317 16,700

Net increase (decrease) in Cash and Restricted Cash 1,079 (5,651 )
Cash and Restricted Cash, beginning of period⁽¹⁾ 8,331 13,866
Cash and Restricted Cash, end of period⁽²⁾ $ 9,410 $ 8,215

Supplemental disclosure of cash flow information:
Cash interest paid during the period $ 5,405 $ 4,545
Cash paid for excise taxes during the period $ 495 $ 284

The following tables provide a reconciliation of cash and restricted cash reported on the Consolidated Statements of Assets and Liabilities that sum to the total of the same such amounts on the Consolidated Statements of Cash Flows:

~~(1)~~

Represents cash and restricted cash of $5,958 and $2,373, respectively, from the consolidated statements of assets and liabilities as of December 31, 2016. Represents cash and restricted cash of $5,278 and $8,588, respectively, from the consolidated statements of assets and liabilities as of December 31, 2015.

~~(2)~~

Represents cash and restricted cash of $3,721 and $5,689, respectively, from the consolidated statements of assets and liabilities as of September 30, 2017. Represents cash and restricted cash of $5,974 and $2,241, respectively, from the consolidated statements of assets and liabilities as of September 30, 2016.


	June 30, 2022		December 31, 2021
Cash	$	5,969	$	2,622
Restricted cash		—		15,459
Total cash and restricted cash shown on the Consolidated Statements of Cash Flows	$	5,969	$	18,081

	June 30, 2021		December 31, 2020
Cash	$	21,129	$	6,769
Restricted cash		29,545		25,657
Total cash and restricted cash shown on the Consolidated Statements of Cash Flows	$	50,674	$	32,426

See Notes to Consolidated Financial Statements.

Table of Contents

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS

(unaudited)

~~September 30, 2017~~

~~(in thousands, except for shares and units)~~

Portfolio Company^(a) Spread
Above
Index^(b) Interest
Rate Maturity Principal Amortized
Cost Fair
Value^(c) % of
Net Assets^(d)
Non-Controlled/Non-Affiliate Company Investments
Senior Secured Loans
Banking, Finance, Insurance & Real Estate
Bartlett Reserve Durham, LLC^(e) L+9.00% 10.23 % 6/1/2018 6,468 $ 6,385 $ 6,346 2.2 %
Echelon Funding I, LLC (Delayed Draw) ^{(e) (f) (g)} L+10.25% 11.49 % 2/24/2021 15,000 13,159 13,350 4.7 %
Liftforward SPV II, LLC^{(e) (f)} L+10.75% 11.99 % 11/10/2020 10,000 5,177 5,251 1.8 %
31,468 24,721 24,947 8.7 %
Beverage, Food & Tobacco
All Holding Company, LLC^(h) L+7.00% 8.24 % 11/15/2021 5,363 5,275 5,416 1.9 %
California Pizza Kitchen, Inc. L+6.00% 7.24 % 8/23/2022 6,930 6,864 6,884 2.4 %
12,293 12,139 12,300 4.3 %
Construction & Building
Cali Bamboo, LLC L+8.00% 9.24 % 7/10/2020 5,332 5,274 5,332 1.9 %
Cali Bamboo, LLC (Revolver)^(f) L+8.00% 9.24 % 7/10/2020 2,165 823 823 0.3 %
Cornerstone Detention Products, Inc.⁽ⁱ⁾ L+9.50%
9.74% Cash/
1.00% PIK
4/8/2019 3,566 3,541 3,530 1.2 %
Cornerstone Detention Products, Inc. (Revolver)^(f) L+8.50% 9.83 % 4/8/2019 400 200 198 0.1 %
L.A.R.K. Industries, Inc. L+8.50% 9.74 % 9/3/2019 8,038 7,939 8,050 2.8 %
19,501 17,777 17,933 6.3 %
Consumer Goods: Durable
Parterre Flooring & Surface Systems LLC^(h) L+7.25% 8.49 % 8/22/2022 12,000 11,762 11,952 4.2 %
Parterre Flooring & Surface Systems LLC (Revolver)^(f) L+7.25% 8.49 % 8/22/2022 2,400 - - 0.0 %
14,400 11,762 11,952 4.2 %
Consumer Goods: Non-Durable
Bluestem Brands, Inc. L+7.50% 8.74 % 11/6/2020 2,637 2,620 1,870 0.7 %
Solaray, LLC L+6.50% 7.82 % 9/9/2023 3,264 3,235 3,264 1.2 %
Solaray, LLC  (Delayed Draw) L+6.50% 7.83 % 9/9/2023 701 701 701 0.2 %
6,602 6,556 5,835 2.1 %
Energy: Oil & Gas
Landpoint, LLC L+12.75%
12.00% Cash/
2.25% PIK
^(j) 12/20/2019 2,394 2,376 2,346 0.8 %
Landpoint, LLC (Revolver)^(f) L+10.50% 12.00 % 12/20/2019 313 - - 0.0 %
2,707 2,376 2,346 0.8 %
Environmental Industries
Synergy Environmental Corporation^(h) L+8.00% 9.24 % 4/29/2021 3,051 2,993 3,082 1.1 %
Synergy Environmental Corporation^(h) L+8.00% 9.24 % 4/29/2021 510 501 515 0.2 %
Synergy Environmental Corporation (Delayed Draw) ^{(f) (g)} L+8.00% 9.24 % 4/29/2018 1,342 - - 0.0 %
Synergy Environmental Corporation (Revolver)^(f) L+8.00% 9.24 % 4/29/2021 671 47 47 0.0 %
5,574 3,541 3,644 1.3 %
Healthcare & Pharmaceuticals
American Optics Holdco, Inc.^{(e) (k)} L+8.00% 9.24 % 9/13/2022 4,144 4,062 4,061 1.4 %
American Optics Holdco, Inc. (Revolver)^{(e) (f) (k)} L+8.00% 9.24 % 9/13/2022 440 - - 0.0 %
American Optics Holdco, Inc.^{(e) (k)} L+8.00% 9.24 % 9/13/2022 762 747 747 0.3 %
American Optics Holdco, Inc. (Revolver)^{(e) (f) (k)} L+8.00% 9.24 % 9/13/2022 440 - - 0.0 %
Beaver-Visitec International Holdings, Inc. L+5.00% 6.33 % 8/19/2023 4,950 4,907 4,975 1.7 %
Edge Systems Holdings Corp. L+7.75% 8.99 % 12/1/2021 3,406 3,347 3,465 1.2 %
7
~~MONROE CAPITAL CORPORATION~~
~~CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)~~
~~(unaudited)~~
~~September 30, 2017~~
~~(in thousands, except for shares and units)~~
Portfolio Company^(a) Spread
Above
Index^(b) Interest
Rate Maturity Principal Amortized
Cost Fair
Value^(c) % of
Net Assets^(d)
Edge Systems Holdings Corp. (Revolver)^(f) P+6.75% 11.00 % 12/1/2021 260 $ 31 $ 31 0.0 %
Familia Dental Group Holdings, LLC^(h) L+8.00% 9.24 % 4/8/2021 5,294 5,229 5,336 1.9 %
Familia Dental Group Holdings, LLC L+8.00% 9.24 % 4/8/2021 509 509 513 0.2 %
Familia Dental Group Holdings, LLC (Revolver)^(f) L+8.00% 9.24 % 4/8/2021 573 229 229 0.1 %
20,778 19,061 19,357 6.8 %
High Tech Industries
Answers Finance, LLC L+5.00% 6.24 % 4/15/2021 254 251 248 0.1 %
BCC Software, LLC^(h) L+8.00% 9.24 % 6/20/2019 3,139 3,109 3,150 1.1 %
BCC Software, LLC (Revolver)^(f) L+8.00% 9.24 % 6/20/2019 469 - - 0.0 %
Corbett Technology Solutions, Inc.^(h) L+7.00% 8.24 % 11/7/2021 4,331 4,276 4,375 1.5 %
Corbett Technology Solutions, Inc. (Revolver)^(f) L+7.00% 8.24 % 11/7/2021 868 217 217 0.1 %
Energy Services Group, LLC L+9.82% 11.16 % 5/4/2022 4,620 4,564 4,657 1.6 %
Energy Services Group, LLC^{(e) (l)} L+9.82% 10.82 % 5/4/2022 2,474 2,360 2,485 0.9 %
Energy Services Group, LLC (Delayed Draw)^{(f) (g)} L+9.82% 11.16 % 5/4/2022 1,313 1,096 1,121 0.4 %
Newforma, Inc.^(h) L+7.50% 8.83 % 6/30/2022 15,000 14,782 15,060 5.3 %
Newforma, Inc. (Revolver)^(f) L+7.50% 8.83 % 6/30/2022 1,250 175 175 0.1 %
33,718 30,830 31,488 11.1 %
Hotels, Gaming & Leisure
BC Equity Ventures LLC L+6.50% 7.74 % 8/31/2022 2,592 2,548 2,631 0.9 %
Miles Partnership LLC L+11.00%
10.33% Cash/
2.00% PIK
3/24/2021 5,925 5,884 5,964 2.1 %
Miles Partnership LLC (Delayed Draw)^{(f) (g)} L+11.00%
10.33% Cash/
2.00% PIK
3/24/2021 1,417 1,071 1,076 0.4 %
Miles Partnership LLC (Revolver)^(f) L+11.00%
10.33% Cash/
2.00% PIK
3/24/2021 320 160 160 0.1 %
TRG, LLC L+12.41%
8.74% Cash/
4.91% PIK
^(m) 3/31/2021 17,079 16,982 17,173 6.1 %
TRG, LLC (CapEx)^(f) L+9.50%
8.73% Cash/
2.00% PIK
3/31/2021 1,592 958 967 0.3 %
TRG, LLC (Revolver)^(f) L+9.50% 10.74 % 3/31/2021 262 131 131 0.0 %
Vacation Innovations, LLC⁽ⁿ⁾ L+9.66%
8.24% Cash/
2.66% PIK
^(o) 8/20/2020 9,477 9,353 10,414 3.7 %
Vacation Innovations, LLC (Delayed Draw)^{(f) (g)} L+7.00% 8.24 % 8/20/2020 2,037 - - 0.0 %
Vacation Innovations, LLC (Revolver)^(f) L+7.00% 8.24 % 8/20/2020 342 - - 0.0 %
41,043 37,087 38,516 13.6 %
Media: Advertising, Printing & Publishing
AdTheorent, Inc. L+8.50% 9.74 % 12/22/2021 4,938 4,851 4,965 1.8 %
Destination Media, Inc.^(h) L+6.50% 7.74 % 4/7/2022 7,900 7,791 8,034 2.8 %
Destination Media, Inc. (Revolver)^(f) L+6.50% 7.74 % 4/7/2022 542 - - 0.0 %
13,380 12,642 12,999 4.6 %
Media: Broadcasting & Subscription
Jerry Lee Radio, LLC L+9.50% 10.74 % 12/17/2020 11,927 11,719 11,927 4.2 %
11,927 11,719 11,927 4.2 %
Retail
Forman Mills, Inc.^(h) L+7.50% 8.74 % 10/4/2021 8,500 8,358 8,415 3.0 %
LuLu's Fashion Lounge, LLC L+7.00% 8.24 % 8/23/2022 5,000 4,852 5,010 1.8 %
The Worth Collection, Ltd.^(h) L+8.50% 9.74 % 9/29/2021 10,588 10,411 9,095 3.2 %
Yandy Holding, LLC L+9.00% 10.24 % 9/30/2019 4,884 4,851 4,748 1.7 %
Yandy Holding, LLC (Revolver)^(f) L+9.00% 10.24 % 9/30/2019 907 - - 0.0 %
29,879 28,472 27,268 9.7 %
Services: Business
APCO Worldwide, Inc. L+8.00% 9.24 % 6/30/2022 5,000 4,904 4,990 1.8 %
EB Employee Solutions, LLC ^(h) L+8.50% 10.00 % 2/28/2019 3,219 3,188 3,127 1.1 %
First Call Resolution, LLC^(h) L+8.00% 9.24 % 9/22/2022 5,000 4,913 4,913 1.7 %
Madison Logic, Inc.^(h) L+8.00% 9.24 % 11/30/2021 10,303 10,124 10,355 3.6 %
Madison Logic, Inc. (Delayed Draw)^{(f) (g)} L+8.00% 9.24 % 11/30/2021 4,818 - - 0.0 %
Madison Logic, Inc. (Revolver)^(f) L+8.00% 9.24 % 11/30/2021 988 - - 0.0 %
8
~~MONROE CAPITAL CORPORATION~~
~~CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)~~
~~(unaudited)~~
~~September 30, 2017~~
~~(in thousands, except for shares and units)~~
Portfolio Company^(a) Spread
Above
Index^(b) Interest
Rate Maturity Principal Amortized
Cost Fair
Value^(c) % of
Net Assets^(d)
Q-Tragon Holdings, LLC^(h) L+7.00% 8.24 % 5/2/2022 3,908 $ 3,854 $ 3,879 1.4 %
Q-Tragon Holdings, LLC (Revolver)^(f) L+7.00% 8.24 % 5/2/2022 307 - - 0.0 %
33,543 26,983 27,264 9.6 %
Services: Consumer
PeopleConnect Intermediate, LLC (formerly Intelius, Inc.) L+5.50% 6.80 % 7/1/2020 4,560 4,499 4,571 1.6 %
PeopleConnect Intermediate, LLC (formerly Intelius, Inc.) L+11.50% 12.80 % 7/1/2020 4,780 4,712 4,758 1.7 %
PeopleConnect Intermediate, LLC (formerly Intelius, Inc.) (Revolver)^(f) L+8.50% 9.80 % 8/11/2018 236 - - 0.0 %
9,576 9,211 9,329 3.3 %
Telecommunications
Peerless Network, Inc.^(h) L+9.25%
9.74% Cash/
0.75% PIK
^(p) 12/11/2020 3,325 3,268 3,333 1.2 %
3,325 3,268 3,333 1.2 %
Utilities: Electric
CRCI Holdings, Inc. L+5.50% 6.83 % 8/31/2023 2,782 2,758 2,801 1.0 %
2,782 2,758 2,801 1.0 %
Wholesale
Mid-West Wholesale Hardware Co.^(h) L+8.00% 9.24 % 2/9/2022 11,910 11,697 11,803 4.2 %
Mid-West Wholesale Hardware Co. (Revolver)^(f) L+8.00% 9.24 % 2/9/2022 4,421 505 501 0.2 %
16,331 12,202 12,304 4.4 %
Total Non-Controlled/Non-Affiliate Senior Secured Loans 308,827 273,105 275,543 97.2 %

Unitranche Loans
Chemicals, Plastics & Rubber
MFG Chemical, LLC^(h) L+6.00% 7.24 % 6/23/2022 8,855 8,729 8,864 3.1 %
8,855 8,729 8,864 3.1 %
Consumer Goods: Non-Durable
Incipio Technologies, Inc.^(q) L+7.75% 8.99 % 12/26/2019 13,728 13,546 13,371 4.7 %
13,728 13,546 13,371 4.7 %
Healthcare & Pharmaceuticals
Collaborative Neuroscience Network, LLC L+11.50% 13.00 % 12/27/2017 6,120 6,071 5,955 2.1 %
Collaborative Neuroscience Network, LLC L+15.00%
12.00% Cash/
3.00% PIK
12/26/2017 293 293 293 0.1 %
Collaborative Neuroscience Network, LLC (Revolver) L+10.00% 11.24 % 12/27/2017 200 191 195 0.1 %
Priority Ambulance, LLC^(h) L+6.50% 7.83 % 4/12/2022 7,000 6,870 7,014 2.5 %
13,613 13,425 13,457 4.8 %
Hotels, Gaming & Leisure
Playtime, LLC L+7.50% 9.00 % 12/31/2021 4,409 4,405 4,189 1.5 %
4,409 4,405 4,189 1.5 %
Wholesale
Gracelock Industries, LLC L+13.74%
11.00% Cash/
4.24% PIK
^(r) 5/7/2019 4,721 4,671 4,711 1.6 %
4,721 4,671 4,711 1.6 %
Total Non-Controlled/Non-Affiliate Unitranche Loans 45,326 44,776 44,592 15.7 %

Junior Secured Loans
Aerospace & Defense
AIM Aerospace, Inc. L+9.00% 10.31 % 8/2/2022 5,000 4,940 5,028 1.8 %
5,000 4,940 5,028 1.8 %
Banking, Finance, Insurance & Real Estate
Confie Seguros Holdings II Co. L+9.75% 11.00 % 5/8/2019 8,594 8,322 8,458 3.0 %
8,594 8,322 8,458 3.0 %
Beverage, Food & Tobacco
CSM Bakery Supplies LLC L+7.75% 9.05 % 7/3/2021 5,792 5,792 5,488 1.9 %
5,792 5,792 5,488 1.9 %
Healthcare & Pharmaceuticals
Heartland Dental, LLC L+8.50% 9.82 % 7/31/2024 3,000 2,956 3,034 1.1 %
3,000 2,956 3,034 1.1 %
9
~~MONROE CAPITAL CORPORATION~~
~~CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)~~
~~(unaudited)~~
~~September 30, 2017~~
~~(in thousands, except for shares and units)~~
Portfolio Company^(a) Spread
Above
Index^(b) Interest
Rate Maturity Principal Amortized
Cost Fair
Value^(c) % of
Net Assets^(d)
High Tech Industries
Answers Finance, LLC P+7.90% 12.15 % 9/15/2021 395 $ 393 $ 366 0.1 %
Micro Holdings Corp.^(s) L+7.50% 8.82 % 8/18/2025 3,000 2,970 2,987 1.0 %
3,395 3,363 3,353 1.1 %
Media: Broadcasting & Subscription
Mergermarket USA, Inc.^(s) L+7.25% 8.49 % 8/3/2025 4,500 4,455 4,539 1.6 %
4,500 4,455 4,539 1.6 %
Media: Diversified & Production
SCP TPZ Acquisition, Inc. L+8.25% 9.57 % 5/29/2022 5,000 4,945 5,006 1.8 %
5,000 4,945 5,006 1.8 %
Services: Consumer
Education Corporation of America L+11.00% 12.33 % 12/31/2018 625 618 625 0.2 %
Pre-Paid Legal Services, Inc. (Legal Shield) L+9.00% 10.25 % 7/1/2020 3,000 3,000 3,024 1.1 %
3,625 3,618 3,649 1.3 %
Total Non-Controlled/Non-Affiliate Junior Secured Loans 38,906 38,391 38,555 13.6 %

Equity Securities^(t)
Healthcare & Pharmaceuticals
Collaborative Neuroscience Network, LLC (warrant to purchase up to 4 LLC units) - - ^(u) 12/27/2022 - - - 0.0 %
- - 0.0 %
High Tech Industries
Answers Finance, LLC (76,539 shares of common stock) - - ^(u) - - 2,413 1,244 0.4 %
2,413 1,244 0.4 %
Hotels, Gaming & Leisure
Playtime, LLC - Preferred Units (8,665 units) - - ^(u) - - 200 33 0.0 %
200 33 0.0 %
Media: Advertising, Printing & Publishing
AdTheorent, Inc. (128,866 units) - - ^(u) - - 129 142 0.1 %
InMobi Pte, Ltd. (represents the right to purchase 2.80% of the equity)^{(e) (k)} - - ^(u) 9/18/2025 - - 215 0.1 %
129 357 0.2 %
Retail
The Tie Bar Operating Company, LLC - Class A Preferred Units (1,275 units) - - - - 86 118 0.0 %
The Tie Bar Operating Company, LLC - Class B Preferred Units (1,275 units) - - - - 1 - 0.0 %
87 118 0.0 %
Services: Consumer
Education Corporation of America - Series G Preferred Stock (8,333 shares) n/a 12.00 % - - 8,125 8,192 2.9 %
8,125 8,192 2.9 %
Total Non-Controlled/Non-Affiliate Equity Securities 10,954 9,944 3.5 %
Total Non-Controlled/Non-Affiliate Company Investments $ 367,226 $ 368,634 130.0 %

Non-Controlled Affiliate Company Investments^(v)
Senior Secured Loans
Banking, Finance, Insurance & Real Estate
American Community Homes, Inc. L+8.00% 9.50 % 7/22/2019 7,667 $ 7,581 $ 7,441 2.6 %
American Community Homes, Inc. L+12.50%
9.50% Cash/
4.50% PIK
7/22/2019 4,363 4,320 4,269 1.5 %
American Community Homes, Inc. L+12.50%
9.50% Cash/
4.50% PIK
n/a ^(w) 536 529 536 0.2 %
American Community Homes, Inc. L+8.00% 9.50 % 7/22/2019 444 433 430 0.2 %
American Community Homes, Inc. L+12.50%
9.50% Cash/
4.50% PIK
7/22/2019 226 220 221 0.1 %
American Community Homes, Inc. (Delayed Draw)^{(f) (g)} L+8.00% 9.50 % 7/22/2019 444 - - 0.0 %
American Community Homes, Inc. (Delayed Draw)^{(f) (g)} L+12.50%
9.50% Cash/
4.50% PIK
7/22/2019 222 - - 0.0 %
13,902 13,083 12,897 4.6 %
Consumer Goods: Non-Durable
Rocket Dog Brands, LLC n/a 12.00% PIK ^(x) 8/29/2019 1,157 1,157 - 0.0 %
10
~~MONROE CAPITAL CORPORATION~~
~~CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)~~
~~(unaudited)~~
~~September 30, 2017~~
~~(in thousands, except for shares and units)~~
Portfolio Company^(a) Spread
Above
Index^(b) Interest
Rate Maturity Principal Amortized
Cost Fair
Value^(c) % of
Net Assets^(d)
Rocket Dog Brands, LLC n/a 15.00% PIK ^(x) 8/29/2019 422 $ 416 $ 54 0.0 %
Rocket Dog Brands, LLC n/a 17.00% PIK ^(x) 3/30/2018 235 235 202 0.1 %
1,814 1,808 256 0.1 %
Containers, Packaging & Glass
Summit Container Corporation^(h) L+12.00%
12.00% Cash/
2.00% PIK
1/6/2019 3,575 3,552 3,421 1.2 %
Summit Container Corporation^(h) L+12.00%
12.00% Cash/
2.00% PIK
9/27/2022 1,500 1,500 1,498 0.5 %
5,075 5,052 4,919 1.7 %
Healthcare & Pharmaceuticals
Rockdale Blackhawk, LLC L+13.00% 14.24 % 3/31/2020 10,922 10,302 10,797 3.8 %
Rockdale Blackhawk, LLC (Capex) L+13.00% 14.24 % 3/31/2020 549 549 542 0.2 %
Rockdale Blackhawk, LLC (Revolver) L+13.00% 14.24 % 3/31/2020 1,849 1,849 1,824 0.6 %
Rockdale Blackhawk, LLC (Revolver) L+13.00% 14.24 % 3/31/2020 3,236 3,236 3,192 1.1 %
SHI Holdings, Inc.^(h) L+9.75% 10.99 % 7/10/2019 2,625 2,604 2,625 0.9 %
SHI Holdings, Inc. (Revolver)^(f) L+9.75% 10.99 % 7/10/2019 2,046 2,024 2,035 0.7 %
21,227 20,564 21,015 7.3 %
Retail
Luxury Optical Holdings Co. L+8.00% 9.24% PIK 9/12/2019 4,151 4,116 3,580 1.3 %
Luxury Optical Holdings Co.  (Delayed Draw)^(f)(g) L+11.50% 12.74% PIK 9/12/2019 1,176 741 741 0.3 %
Luxury Optical Holdings Co. (Revolver) L+8.00% 9.24% PIK 9/12/2019 191 191 165 0.1 %
5,518 5,048 4,486 1.7 %
Total Non-Controlled Affiliate Senior Secured Loans 47,536 45,555 43,573 15.4 %

Junior Secured Loans
Consumer Goods: Non-Durable
Rocket Dog Brands, LLC n/a 15.00% PIK ^(x) 5/1/2020 2,011 2,011 - 0.0 %
2,011 2,011 - 0.0 %
Total Non-Controlled Affiliate Company Junior Secured Loans 2,011 2,011 - 0.0 %

Equity Securities
Banking, Finance, Insurance & Real Estate
American Community Homes, Inc. (warrant to purchase up to 9.0% of the equity) - - ^(u) 10/9/2024 - - 610 0.2 %
- 610 0.2 %
Consumer Goods: Non-Durable
Rocket Dog Brands, LLC - Common Units (75,502 units) - - ^(u) - - - - 0.0 %
Rocket Dog Brands, LLC - Preferred Units (10 units) n/a 15.00% PIK ^(y) - - 967 - 0.0 %
967 - 0.0 %
Containers, Packaging & Glass
Summit Container Corporation (warrant to purchase up to 19.50% of the equity) - - ^(u) 1/6/2024 - - - 0.0 %
- - 0.0 %
Healthcare & Pharmaceuticals
Rockdale Blackhawk, LLC - LLC Units (11.56% of the LLC interest) - - - - 1,093 8,620 3.0 %
SHI Holdings, Inc. (24 shares of common stock) - - ^(u) - - 27 792 0.3 %
1,120 9,412 3.3 %
Retail
Luxury Optical Holdings Co. (86 shares of common stock) - - ^(u) - - - - 0.0 %
- - 0.0 %
Total Non-Controlled Affiliate Equity Securities 2,087 10,022 3.5 %
Total Non-Controlled Affiliate Company Investments $ 49,653 $ 53,595 18.9 %

Controlled Affiliate Company Investments^(z)
Senior Secured Loans
Retail
TPP Operating, Inc. L+6.00% 7.50% PIK ^(x) 11/8/2018 9,370 $ 9,330 $ - 0.0 %
TPP Operating, Inc. L+6.00% 7.50 %^(x) 11/8/2018 6,885 6,885 5,295 1.9 %
11
~~MONROE CAPITAL CORPORATION~~
~~CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)~~
~~(unaudited)~~
~~September 30, 2017~~
~~(in thousands, except for shares and units)~~
Portfolio Company^(a) Spread
Above
Index^(b) Interest
Rate Maturity Principal Amortized
Cost Fair
Value^(c) % of
Net Assets^(d)
TPP Operating, Inc. L+9.61% 11.11 %^(x) 11/8/2018 3,573 $ 3,573 $ 3,573 1.2 %
Total Controlled Affiliate Senior Secured Loans 19,828 19,788 8,868 3.1 %

Equity Securities
Retail
TPP Acquisition, Inc. (829 shares of common stock) - - ^(u) - - - - 0.0 %
TPP Operating, Inc. (40 shares of common stock) - - ^(u) - - 3,255 - 0.0 %
Total Controlled Affiliate Equity Securities 3,255 - 0.0 %
Total Controlled Affiliate Company Investments $ 23,043 $ 8,868 3.1 %

TOTAL INVESTMENTS $ 439,922 $ 431,097 152.0 %
(a) All of our investments are issued by eligible portfolio companies, as defined in the Investment Company Act of 1940 (the “1940 Act”), unless otherwise noted. All of our 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 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 effect at September 30, 2017. Certain investments are subject to a LIBOR or Prime interest rate floor.
(c) 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 our board of directors as required by the Investment Company Act of 1940. (See Note 4 in the accompanying notes to the consolidated financial statements.)
~~(d) Percentages are based on net assets of $283,542 as of September 30, 2017.~~
(e) 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 September 30, 2017, non-qualifying assets totaled 7.29% of the Company’s total assets.
~~(f) All or a portion of this commitment was unfunded at September 30, 2017. 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) 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.~~
(i) A portion of this loan (principal of $2,139) 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.
~~(j) The PIK portion of the interest rate for Landpoint, LLC is structured as a fee paid upon the termination of the commitment. The fee currently accrues at 2.25% per annum.~~
~~(k) This is an international company.~~
~~(l) This term loan is denominated in Great Britain pounds and is translated into U.S. dollars as of the valuation date.~~
~~(m) A portion of the PIK interest rate for TRG, LLC is structured as a fee paid upon the termination of the commitment. The fee currently accrues at 2.91% per annum.~~
(n) A portion of this loan (principal of $4,185) 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.
~~(o) A portion of the PIK interest rate for Vacation Innovations, LLC is structured as a fee paid upon the termination of the commitment. The fee currently accrues at 2.16% per annum.~~
~~(p) The PIK portion of the interest rate for Peerless Network, Inc. is structured as a fee paid upon the termination of the commitment. The fee currently accrues at 0.75% per annum.~~
(q) A portion of this loan (principal of $5,034) 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.
~~(r) The PIK portion of the interest rate for Gracelock Industries, LLC is structured as a fee paid upon the termination of the commitment. The fee currently accrues at 4.24% per annum.~~
~~(s) Investment position or portion thereof unsettled as of September 30, 2017.~~
~~(t) Represents less than 5% ownership of the portfolio company’s voting securities.~~
~~(u) Represents a non-income producing security.~~
(v) As defined in the 1940 Act, the Company is deemed to be an “Affiliated Person” of the portfolio company as it owns five percent 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).
~~(w) This is a demand note with no stated maturity.~~
(x) This position was on non-accrual status as of September 30, 2017, 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.
~~(y) This position includes a PIK dividend and is currently on non-accrual status.~~
(z) 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% in 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.
~~n/a - not applicable~~
~~See Notes to Consolidated Financial Statements.~~
12
~~MONROE CAPITAL CORPORATION~~
~~CONSOLIDATED SCHEDULE OF INVESTMENTS~~
~~December 31, 2016~~
~~(in thousands, except for shares and units)~~
Portfolio Company^(a) Spread
Above
Index^(b) Interest
Rate Maturity Principal Amortized
Cost Fair
Value^(c) % of
Net Assets^(d)
Non-Controlled/Non-Affiliate Company Investments
Senior Secured Loans
Aerospace & Defense
Cyalume Technologies Holdings, Inc.^(e) L+9.00% 10.00 % 5/18/2020 4,291 $ 4,204 $ 4,462 1.9 %
Cyalume Technologies Holdings, Inc. (Delayed Draw) L+9.00% 10.00 % 5/18/2020 387 387 402 0.2 %
Cyalume Technologies Holdings, Inc. (Revolver)^(f) L+9.00% 10.00 % 5/18/2020 1,528 - - 0.0 %
6,206 4,591 4,864 2.1 %
Automotive
Inteva Products, LLC L+8.50% 9.75 % 9/8/2021 1,978 1,967 1,998 0.8 %
Tectum Holdings, Inc. L+4.75% 5.75 % 8/24/2023 1,995 1,976 2,025 0.8 %
3,973 3,943 4,023 1.6 %
Banking, Finance, Insurance & Real Estate
Liftforward SPV II, LLC^{(f) (g)} L+10.75% 11.51 % 11/10/2020 10,000 254 254 0.1 %
Repay Holdings, LLC L+9.00% 9.76 % 9/1/2021 12,000 11,802 11,934 5.0 %
Repay Holdings, LLC (Revolver)^(f) L+9.00% 9.76 % 9/1/2021 1,200 - - 0.0 %
Shields Land Company of Georgia, LLC^(g) L+9.50% 10.15 % 12/28/2017 2,450 2,425 2,445 1.0 %
25,650 14,481 14,633 6.1 %
Beverage, Food & Tobacco
All Holding Company, LLC^(e) L+7.00% 7.76 % 11/15/2021 5,466 5,363 5,493 2.3 %
California Pizza Kitchen, Inc. L+6.00% 7.00 % 8/23/2022 6,983 6,913 6,966 2.9 %
12,449 12,276 12,459 5.2 %
Construction & Building
Cali Bamboo, LLC L+8.50% 9.26 % 7/10/2020 5,423 5,350 5,531 2.3 %
Cali Bamboo, LLC (Revolver)^(f) L+8.50% 9.26 % 7/10/2020 1,624 65 65 0.0 %
Cornerstone Detention Products, Inc.^(h) L+10.50%
10.50% Cash/
1.00% PIK
4/8/2019 3,784 3,747 3,599 1.5 %
Cornerstone Detention Products, Inc. (Revolver)^(f) L+9.50% 10.50 % 4/8/2019 400 - - 0.0 %
G&M Opco LLC^(e) L+7.50% 8.26 % 6/23/2020 3,006 2,951 3,066 1.3 %
L.A.R.K. Industries, Inc. L+7.00% 8.00 % 9/3/2019 6,257 6,169 6,341 2.6 %
20,494 18,282 18,602 7.7 %
Consumer Goods: Non-Durable
360 Holdings III Corp. L+9.00% 10.00 % 10/1/2021 5,925 5,718 5,718 2.4 %
Bluestem Brands, Inc. L+7.50% 8.50 % 11/6/2020 2,758 2,737 2,404 1.0 %
Solaray, LLC L+6.50% 7.50 % 9/9/2023 3,297 3,265 3,280 1.4 %
Solaray, LLC  (Delayed Draw)^{(f) (i)} L+6.50% 7.50 % 9/9/2023 703 - - 0.0 %
12,683 11,720 11,402 4.8 %
Energy: Oil & Gas
Diesel Direct Holdings, Inc.^(e) L+7.00% 7.76 % 2/17/2020 5,225 5,217 5,277 2.2 %
Landpoint, LLC L+12.75%
12.00% Cash/
2.25% PIK
^(j) 12/20/2019 2,632 2,602 2,526 1.1 %
Landpoint, LLC (Revolver)^(f) L+10.50% 12.00 % 12/20/2019 313 - - 0.0 %
8,170 7,819 7,803 3.3 %
Environmental Industries
Synergy Environmental Corporation^(e) L+8.00% 8.76 % 4/29/2021 3,130 3,068 3,148 1.3 %
Synergy Environmental Corporation^(e) L+8.00% 8.76 % 4/29/2021 523 513 526 0.2 %
Synergy Environmental Corporation (Delayed Draw)^{(f) (i)} L+8.00% 8.76 % 4/29/2018 1,342 - - 0.0 %
Synergy Environmental Corporation (Revolver)^(f) L+8.00% 8.76 % 4/29/2021 671 94 94 0.0 %
5,666 3,675 3,768 1.5 %
Healthcare & Pharmaceuticals
Beaver-Visitec International Holdings, Inc. L+5.00% 6.00 % 8/19/2023 4,988 4,939 4,988 2.1 %
Edge Systems Holdings Corp. L+8.00% 9.00 % 11/29/2021 3,740 3,667 3,665 1.5 %
Edge Systems Holdings Corp. (Revolver)^(f) L+8.00% 9.00 % 11/29/2021 260 - - 0.0 %
Familia Dental Group Holdings, LLC^(e) L+8.00% 8.76 % 4/8/2021 5,397 5,327 5,480 2.3 %
Familia Dental Group Holdings, LLC (Delayed Draw) L+8.00% 8.76 % 4/8/2021 519 519 527 0.2 %
Familia Dental Group Holdings, LLC (Revolver)^(f) L+8.00% 8.76 % 4/8/2021 573 57 57 0.0 %
Precision Toxicology, LLC^(e) L+11.50%
10.26% Cash/
2.00% PIK
3/24/2020 4,242 4,186 4,244 1.8 %
19,719 18,695 18,961 7.9 %
13
~~MONROE CAPITAL CORPORATION~~June 30, 2022

~~CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)~~
~~December 31, 2016~~
(in thousands, except for shares and units)

Portfolio Company^(a) Spread
Above
Index^(b) Interest
Rate Maturity Principal Amortized
Cost Fair
Value^(c) % of
Net Assets^(d)
High Tech Industries
Answers Corporation P+6.25% 10.00 %^(k) 10/1/2021 2,903 $ 2,819 $ 1,495 0.6 %
BCC Software, LLC^(e) L+8.00% 9.00 % 6/20/2019 2,204 2,186 2,203 0.9 %
BCC Software, LLC (Revolver)^(f) L+8.00% 9.00 % 6/20/2019 469 - - 0.0 %
Corbett Technology Solutions, Inc.^(e) L+7.00% 7.76 % 11/7/2021 4,500 4,434 4,511 1.9 %
Corbett Technology Solutions, Inc. (Revolver) ^(f) L+7.00% 7.76 % 11/7/2021 867 - - 0.0 %
10,943 9,439 8,209 3.4 %
Hotels, Gaming & Leisure
BC Equity Ventures LLC L+6.50% 7.50 % 8/31/2022 2,612 2,562 2,635 1.1 %
BC Equity Ventures LLC L+6.50% 7.50 % 8/31/2022 375 372 373 0.2 %
Miles Media Group LLC L+11.00%
10.00% Cash/
2.00% PIK
3/24/2021 6,110 6,052 6,119 2.5 %
Miles Media Group LLC (Delayed Draw) ^{(f) (i)} L+11.00%
10.00% Cash/
2.00% PIK
3/24/2021 1,455 - - 0.0 %
Miles Media Group LLC (Revolver) ^(f) L+11.00%
10.00% Cash/
2.00% PIK
3/24/2021 320 - - 0.0 %
TRG, LLC L+13.80%
8.12% Cash/
6.30% PIK
^(l) 3/31/2021 11,876 11,837 11,960 5.0 %
TRG, LLC (Revolver) L+9.50% 10.12 % 3/31/2021 131 131 131 0.1 %
TRG, LLC (CapEx) ^(f) L+9.50%
8.12% Cash/
2.00% PIK
3/31/2021 1,609 943 946 0.4 %
Vacation Innovations, LLC ^(m) L+9.40%
7.76% Cash/
2.42% PIK
⁽ⁿ⁾ 8/20/2020 10,553 10,382 10,848 4.5 %
Vacation Innovations, LLC (Revolver) ^(f) L+8.50%
7.76% Cash/
1.50% PIK
8/20/2020 342 - - 0.0 %
Vacation Innovations, LLC (Delayed Draw) ^{(f) (i)} L+8.50%
7.76% Cash/
1.50% PIK
8/20/2020 2,037 - - 0.0 %
37,420 32,279 33,012 13.8 %
Media: Advertising, Printing & Publishing
AdTheorent, Inc. L+8.50% 9.26 % 12/22/2021 5,000 4,908 4,900 2.0 %
AdTheorent, Inc. (Revolver) ^(f) L+8.50% 9.26 % 12/22/2021 515 77 77 0.0 %
InMobi Pte, Ltd. (Delayed Draw) ^{(f) (g) (i)} L+10.17% 10.98 % 9/1/2018 10,000 6,667 6,587 2.7 %
15,515 11,652 11,564 4.7 %
Media: Broadcasting & Subscription
Jerry Lee Radio, LLC L+9.50% 10.26 % 12/17/2020 13,407 13,127 13,675 5.7 %
13,407 13,127 13,675 5.7 %
Metals & Mining
O'Brien Industrial Holdings, LLC L+7.75% 8.75 % 5/13/2019 5,286 5,219 5,268 2.2 %
5,286 5,219 5,268 2.2 %
Retail
Forman Mills, Inc. ^(e) L+7.50% 8.50 % 10/4/2021 8,500 8,337 8,470 3.5 %
Luxury Optical Holdings Co. L+11.50%
9.00% Cash/
3.50% PIK
9/12/2019 4,012 3,965 3,948 1.6 %
Luxury Optical Holdings Co. (Revolver) ^(f) L+8.00% 9.00 % 9/12/2019 273 - - 0.0 %
The Worth Collection, Ltd. ^(e) L+8.50% 9.26 % 9/29/2021 11,000 10,789 11,132 4.6 %
Yandy Holding, LLC L+9.00% 10.00 % 9/30/2019 5,677 5,625 5,581 2.3 %
Yandy Holding, LLC (Revolver) ^(f) L+9.00% 10.00 % 9/30/2019 907 - - 0.0 %
30,369 28,716 29,131 12.0 %
Services: Business
EB Employee Solutions, LLC ^(e) L+8.50% 10.00 % 2/28/2019 3,370 3,324 3,263 1.4 %
Madison Logic, Inc. ^(e) L+8.00% 8.76 % 11/30/2021 10,500 10,291 10,610 4.4 %
Madison Logic, Inc. (Delayed Draw) ^{(f) (i)} L+8.00% 8.76 % 11/30/2021 4,818 - - 0.0 %
Madison Logic, Inc. (Revolver) ^(f) L+8.00% 8.76 % 11/30/2021 988 - - 0.0 %
SNI Companies ^(o) L+8.00% 9.00 % 12/31/2018 5,357 5,299 5,378 2.2 %
SNI Companies (Revolver) ^(f) L+8.00% 9.00 % 12/31/2018 1,250 313 313 0.1 %
26,283 19,227 19,564 8.1 %
Services: Consumer
PeopleConnect Intermediate, LLC (formerly Intelius, Inc.) L+5.50% 6.50 % 7/1/2020 4,698 4,619 4,693 1.9 %
PeopleConnect Intermediate, LLC (formerly Intelius, Inc.) L+11.50% 12.50 % 7/1/2020 4,849 4,765 4,805 2.0 %
PeopleConnect Intermediate, LLC (formerly Intelius, Inc.) (Revolver) ^(f) L+8.50% 9.50 % 8/11/2017 236 - - 0.0 %
9,783 9,384 9,498 3.9 %
Telecommunications
Peerless Network, Inc. ^(e) L+8.50%
9.18% Cash/
0.75% PIK
^(p) 12/11/2020 3,500 3,431 3,430 1.4 %
3,500 3,431 3,430 1.4 %
Utilities: Electric ��
CRCI Holdings, Inc. L+5.50% 6.50 % 8/31/2023 2,993 2,964 2,999 1.3 %
2,993 2,964 2,999 1.3 %
Total Non-Controlled/Non-Affiliate Senior Secured Loans 270,509 230,920 232,865 96.7 %

Unitranche Loans
Automotive
Fabco Automotive Corporation L+11.25%
8.00% Cash/
4.25% PIK
4/3/2019 8,587 8,553 3,491 1.4 %
8,587 8,553 3,491 1.4 %
Consumer Goods: Durable
MooreCo, Inc. L+14.50%
13.50% Cash/
2.50% PIK
12/27/2017 3,620 3,600 3,620 1.5 %
3,620 3,600 3,620 1.5 %


Spread Above

Interest

Acquisition





Amortized



% of

Portfolio Company ^(a)

Index ^(b)

Rate

Date ^(c)

Maturity

Principal

Cost

Fair Value ^(d)

Net Assets ^(e)

Non-Controlled/Non-Affiliate Company Investments

















Senior Secured Loans

















Automotive

















Born To Run, LLC

L+6.00
%
8.25
%
4/1/2021

4/1/2027

3,465

$
3,408

$
3,472

1.6
%
Born To Run, LLC (Delayed Draw) ^{(f) (g)}

L+6.00
%
8.25
%
4/1/2021

4/1/2027

569

33

33

0.0
%
Hastings Manufacturing Company

L+7.25
%
8.92
%
4/24/2018

4/24/2023

2,412

2,402

2,412

1.0
%
Lifted Trucks Holdings, LLC

L+5.75
%
6.75
%
8/2/2021

8/2/2027

6,965

6,843

6,906

3.0
%
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

—

—

0.0
%
Magneto & Diesel Acquisition, Inc.

L+5.50
%
7.17
%
12/18/2018

12/18/2023

4,825

4,797

4,825

2.1
%
Magneto & Diesel Acquisition, Inc.

L+5.50
%
7.17
%
7/6/2020

12/18/2023

1,899

1,882

1,913

0.8
%
Magneto & Diesel Acquisition, Inc.

L+5.50
%
7.17
%
8/4/2021

12/18/2023

79

78

80

0.0
%
Magneto & Diesel Acquisition, Inc. (Revolver)^(f)

L+5.50
%
7.17
%
12/18/2018

12/18/2023

500

—

—

0.0
%

23,781

19,443

19,641

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

3,768

4,026

1.7
%
StarCompliance MidCo, LLC

L+6.75
%
9.00
%
1/12/2021

1/12/2027

2,000

1,969

1,983

0.9
%
StarCompliance MidCo, LLC

L+6.75
%
9.00
%
10/12/2021

1/12/2027

336

330

333

0.1
%
StarCompliance MidCo, LLC (Revolver) ^(f)

L+6.75
%
8.42
%
1/12/2021

1/12/2027

322

32

32

0.0
%

10,658

6,099

6,374

2.7
%
Beverage, Food & Tobacco

















LVF Holdings, Inc.

L+6.25
%
8.45
%
6/10/2021

6/10/2027

1,493

1,467

1,470

0.6
%
LVF Holdings, Inc.

L+6.25
%
8.45
%
6/10/2021

6/10/2027

1,428

1,428

1,407

0.6
%
LVF Holdings, Inc. (Delayed Draw) ^{(f) (g)}

L+6.25
%
8.45
%
6/10/2021

6/10/2027

344

—

—

0.0
%
LVF Holdings, Inc. (Revolver) ^(f)

L+6.25
%
8.50
%
6/10/2021

6/10/2027

238

176

173

0.1
%
LX/JT Intermediate Holdings, Inc.

SF+6.00
%
7.63
%
3/11/2020

3/11/2025

5,518

5,453

5,438

2.4
%
LX/JT Intermediate Holdings, Inc. (Revolver) ^(f)

SF+6.00
%
7.63
%
3/11/2020

3/11/2025

833

—

—

0.0
%
Toojay’s Management LLC ⁽ⁱ⁾

n/a

n/a
^(j)
10/26/2018

10/26/2022

1,448

1,407

—

0.0
%
Toojay’s Management LLC ⁽ⁱ⁾

n/a

n/a
^(j)
10/26/2018

10/26/2022

199

199

—

0.0
%
Toojay’s Management LLC (Revolver) ⁽ⁱ⁾

n/a

n/a
^(j)
10/26/2018

10/26/2022

66

66

—

0.0
%

11,567

10,196

8,488

3.7
%
Capital Equipment

















MCP Shaw Acquisitionco, LLC

SF+6.50
%
8.82
%
2/28/2020

11/28/2025

9,733

9,614

9,738

4.2
%
MCP Shaw Acquisitionco, LLC

SF+6.50
%
8.82
%
12/29/2021

11/28/2025

2,987

2,935

2,989

1.3
%
MCP Shaw Acquisitionco, LLC (Delayed Draw) ^{(f) (g)}

SF+6.50
%
8.82
%
12/29/2021

11/28/2025

983

437

437

0.2
%
MCP Shaw Acquisitionco, LLC (Revolver) ^(f)

SF+6.50
%
8.82
%
2/28/2020

11/28/2025

1,784

595

595

0.2
%

15,487

13,581

13,759

5.9
%

14
8

Table of Contents

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS –- (continued)

~~December 31, 2016~~(unaudited)

June 30, 2022

(in thousands, except for shares and units)

Portfolio Company ^(a) Spread
Above
Index ^(b) Interest
Rate Maturity Principal Amortized
Cost Fair
Value ^(c) % of
Net Assets ^(d)
Consumer Goods: Non-Durable
Incipio Technologies, Inc. ^(q) L+6.00% 7.00 % 12/26/2019 14,291 $ 14,045 $ 14,219 5.9 %
14,291 14,045 14,219 5.9 %
Healthcare & Pharmaceuticals
Collaborative Neuroscience Network, LLC ^(r) L+11.50% 13.00 % 12/27/2017 6,120 6,059 5,814 2.4 %
Collaborative Neuroscience Network, LLC n/a
12.00% Cash/
3.00% PIK
12/27/2017 286 286 286 0.1 %
6,406 6,345 6,100 2.5 %
Hotels, Gaming & Leisure
Playtime, LLC L+8.50%
9.00% Cash/
1.00% PIK
12/31/2021 5,405 5,381 4,797 2.0 %
5,405 5,381 4,797 2.0 %
Services: Business
Output Services Group, Inc. L+9.00%
9.50% Cash/
1.00% PIK
12/17/2020 6,500 6,432 6,520 2.7 %
Output Services Group, Inc. L+9.00%
9.50% Cash/
1.00% PIK
12/17/2020 8,296 8,189 8,391 3.5 %
14,796 14,621 14,911 6.2 %
Wholesale
Gracelock Industries, LLC L+13.74%
11.00% Cash/
4.24% PIK
^(s) 5/7/2019 4,888 4,816 4,500 1.9 %
4,888 4,816 4,500 1.9 %
Total Non-Controlled/Non-Affiliate Unitranche Loans 57,993 57,361 51,638 21.4 %

Junior Secured Loans
Aerospace & Defense
AIM Aerospace, Inc. L+9.00% 10.00 % 8/2/2022 5,000 4,933 5,040 2.1 %
5,000 4,933 5,040 2.1 %
Banking, Finance, Insurance & Real Estate
Confie Seguros Holdings II Co. L+9.00% 10.25 % 5/8/2019 8,594 8,215 8,547 3.5 %
8,594 8,215 8,547 3.5 %
Beverage, Food & Tobacco
CSM Bakery Supplies LLC L+7.75% 8.75 % 7/3/2021 5,792 5,792 4,335 1.8 %
5,792 5,792 4,335 1.8 %
Chemicals, Plastics & Rubber
New NSI Holdings, Inc. L+8.25% 9.25 % 7/28/2022 4,000 3,949 4,040 1.7 %
4,000 3,949 4,040 1.7 %
Consumer Goods: Non-Durable
Mud Pie, LLC n/a
10.00% Cash/
1.50% PIK
11/4/2020 5,221 5,145 5,325 2.2 %
5,221 5,145 5,325 2.2 %
High Tech Industries
Hyland Software Inc. L+7.25% 8.25 % 7/1/2023 5,000 4,832 5,100 2.1 %
Micro Holdings Corp. L+7.50% 8.50 % 7/8/2022 5,590 5,475 5,590 2.3 %
10,590 10,307 10,690 4.4 %
Media: Broadcasting & Subscription
Mergermarket USA, Inc. L+6.50% 7.50 % 12/19/2021 4,500 4,400 4,371 1.8 %
4,500 4,400 4,371 1.8 %
Media: Diversified & Production
SCP TPZ Acquisition, Inc. L+8.25% 9.25 % 5/29/2022 5,000 4,938 4,938 2.1 %
5,000 4,938 4,938 2.1 %
Services: Business
Sterling Merger Sub Corp. L+7.75% 8.75 % 6/19/2023 5,000 4,958 4,892 2.0 %
5,000 4,958 4,892 2.0 %
Services: Consumer
Education Corporation of America L+11.00% 12.00 % 12/31/2018 4,167 4,099 4,167 1.7 %
Pre-Paid Legal Services, Inc. (Legal Shield) L+9.00% 10.25 % 7/1/2020 3,000 3,000 3,021 1.3 %
7,167 7,099 7,188 3.0 %
Total Non-Controlled/Non-Affiliate Junior Secured Loans 60,864 59,736 59,366 24.6 %

Equity Securities ^(t)
Aerospace & Defense
Cyalume Technologies Holdings, Inc. - Series D Preferred Stock (3.06 shares) - - ^(u) - - - 697 0.3 %
- 697 0.3 %
Automotive
Fabco Automotive Corporation (warrant to purchase up to 1.87% of the equity) - - ^(u) - - - - 0.0 %
- - 0.0 %
Healthcare & Pharmaceuticals
Collaborative Neuroscience Network, LLC (warrant to purchase up to 4 LLC units) - - ^(u) 12/27/2022 - - - 0.0 %
- - 0.0 %


Spread Above

Interest

Acquisition





Amortized



% of

Portfolio Company ^(a)

Index ^(b)

Rate

Date ^(c)

Maturity

Principal

Cost

Fair Value ^(d)

Net Assets ^(e)

Chemicals, Plastics & Rubber

















Valudor Products LLC

L+7.50
%
7.67% Cash/
1.50% PIK

6/18/2018

6/19/2023

1,597

$
1,590

$
1,914

0.8
%
Valudor Products LLC

L+7.50
%
9.17
%
12/22/2021

6/19/2023

502

502

1,509

0.6
%
Valudor Products LLC ^(k)

L+7.50
%
9.17% PIK

6/18/2018

6/19/2023

247

246

243

0.1
%
Valudor Products LLC (Revolver) ^(f)

L+9.50
%
11.17
%
6/18/2018

6/19/2023

1,095

589

589

0.3
%

3,441

2,927

4,255

1.8
%
Construction & Building

















Brightly Software Holdings, Inc. (fka Dude Solutions Holdings, Inc.)

L+6.25
%
8.50
%
6/14/2019

6/13/2025

9,850

9,725

9,860

4.2
%
Brightly Software Holdings, Inc. (fka Dude Solutions Holdings, Inc.) (Revolver) ^(f)

L+6.25
%
8.50
%
6/14/2019

6/13/2025

1,304

696

696

0.3
%
TCFIII OWL Buyer LLC

SF+5.50
%
7.14
%
4/19/2021

4/17/2026

2,030

2,001

2,030

0.9
%
TCFIII OWL Buyer LLC

SF+5.50
%
7.14
%
4/19/2021

4/17/2026

2,478

2,478

2,478

1.1
%
TCFIII OWL Buyer LLC

SF+5.50
%
7.14
%
12/17/2021

4/17/2026

2,224

2,189

2,224

1.0
%

17,886

17,089

17,288

7.5
%
Consumer Goods: Durable

















Independence Buyer, Inc.

L+5.50
%
6.79
%
8/3/2021

8/3/2026

5,970

5,870

5,955

2.6
%
Independence Buyer, Inc. (Revolver) ^(f)

L+5.50
%
6.79
%
8/3/2021

8/3/2026

1,423

—

—

0.0
%
Recycled Plastics Industries, LLC

L+6.75
%
7.81
%
8/4/2021

8/4/2026

3,474

3,415

3,443

1.5
%
Recycled Plastics Industries, LLC (Revolver) ^(f)

L+6.75
%
7.81
%
8/4/2021

8/4/2026

473

95

94

0.0
%

11,340

9,380

9,492

4.1
%
Consumer Goods: Non-Durable

















The Kyjen Company, LLC

L+6.50
%
7.99
%
5/14/2021

4/3/2026

988

979

983

0.4
%
The Kyjen Company, LLC (Revolver) ^(f)

L+6.50
%
8.17
%
5/14/2021

4/3/2026

105

79

78

0.0
%
Thrasio, LLC

L+7.00
%
9.25
%
12/18/2020

12/18/2026

2,458

2,450

2,470

1.1
%

3,551

3,508

3,531

1.5
%
Environmental Industries

















Quest Resource Management Group, LLC

L+7.00
%
8.06
%
10/19/2020

10/20/2025

977

912

959

0.4
%
Quest Resource Management Group, LLC

L+7.00
%
8.06
%
10/19/2020

10/20/2025

1,073

1,073

1,053

0.4
%
Quest Resource Management Group, LLC

L+7.00
%
8.06
%
12/7/2021

10/20/2025

3,816

3,749

3,731

1.6
%
Quest Resource Management Group, LLC (Delayed Draw) ^{(f) (g)}

L+7.00
%
8.06
%
12/7/2021

10/20/2025

1,774

385

376

0.2
%

7,640

6,119

6,119

2.6
%
FIRE: Finance

















J2 BWA Funding LLC (Delayed Draw) ^{(f) (g) (h)}

n/a

9.00
%
12/24/2020

12/24/2026

2,710

1,033

1,008

0.4
%
Liftforward SPV II, LLC ^(h)

L+10.75
%
12.42
%
11/10/2016

9/30/2022

555

555

532

0.2
%
Oceana Australian Fixed Income Trust ^{(h) (l) (m)}

n/a

10.75
%
6/29/2021

6/29/2026

3,125

3,400

3,125

1.4
%
Oceana Australian Fixed Income Trust ^{(h) (l) (m)}

n/a

11.50
%
2/25/2021

2/25/2026

7,418

8,460

7,418

3.2
%
W3 Monroe RE Debt LLC ^(h)

n/a

10.00% PIK

2/5/2021

2/4/2028

3,053

3,053

3,053

1.3
%

16,861

16,501

15,136

6.5
%

15
9

Table of Contents

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS –- (continued)

~~December 31, 2016~~(unaudited)

June 30, 2022

(in thousands, except for shares and units)

Portfolio Company ^(a) Spread
Above
Index ^(b) Interest
Rate Maturity Principal Amortized
Cost Fair
Value ^(c) % of
Net Assets ^(d)
Hotels, Gaming & Leisure
BookIt Operating LLC (warrant to purchase up to 3.0% of the equity) - - ^(u) 12/21/2023 - $ - $ 201 0.1 %
Playtime, LLC - Preferred Units (8,665 units) - - ^(u) - - 200 - 0.0 %
200 201 0.1 %
Media: Advertising, Printing & Publishing
InMobi Pte, Ltd. (represents the right to purchase 0.42% of the equity) ^(g) - - ^(u) 9/18/2025 - - 49 0.0 %
AdTheorent, Inc. (128,866 shares of common stock) - - ^(u) - - 129 129 0.1 %
129 178 0.1 %
Metals & Mining
O'Brien Industrial Holdings, LLC (warrants to purchase up to 2.44% of certain affiliated entities of the company) - - ^(u) 5/13/2024 - - - 0.0 %
- - 0.0 %
Retail
The Tie Bar Operating Company, LLC - Class A Preferred Units (1,275 units) - - - - 86 117 0.0 %
The Tie Bar Operating Company, LLC - Class B Preferred Units (1,275 units) - - - - 1 - 0.0 %
87 117 0.0 %
Services: Business
Output Services Group, Inc. (warrant to purchase up to 3.89% of the common stock) - - ^(u) 12/17/2022 - - 797 0.3 %
- 797 0.3 %
Services: Consumer
Education Corporation of America - Series G Preferred Stock (8,333 shares) n/a 12.00 % - - 8,125 8,121 3.4 %
8,125 8,121 3.4 %
Total Non-Controlled/Non-Affiliate Equity Securities 8,541 10,111 4.2 %
Total Non-Controlled/Non-Affiliate Company Investments $ 356,558 $ 353,980 146.9 %

Non-Controlled Affiliate Company Investments ^(v)
Senior Secured Loans
Banking, Finance, Insurance & Real Estate
American Community Homes, Inc. L+8.00% 9.50 % 7/22/2019 7,667 $ 7,550 $ 7,816 3.3 %
American Community Homes, Inc. L+12.50%
9.50% Cash/
4.50% PIK
7/22/2019 4,217 4,158 4,301 1.8 %
American Community Homes, Inc. L+12.50%
9.50% Cash/
4.50% PIK
n/a ^(w) 518 508 518 0.2 %
12,402 12,216 12,635 5.3 %
Consumer Goods: Non-Durable
Rocket Dog Brands, LLC n/a 12.00% PIK 8/29/2019 1,124 1,125 464 0.2 %
Rocket Dog Brands, LLC n/a 15.00% PIK 8/29/2019 407 402 365 0.2 %
Rocket Dog Brands, LLC n/a 17.00% PIK 3/31/2017 225 225 225 0.1 %
1,756 1,752 1,054 0.5 %
Containers, Packaging & Glass
Summit Container Corporation ^(e) L+12.00%
12.00% Cash/
2.00% PIK
1/6/2019 3,624 3,582 3,550 1.5 %
3,624 3,582 3,550 1.5 %
Healthcare & Pharmaceuticals
Rockdale Blackhawk, LLC L+11.00% 12.00 % 3/31/2020 10,923 10,155 10,933 4.5 %
Rockdale Blackhawk, LLC (Revolver) ^(f) L+11.00% 12.00 % 3/31/2020 1,849 924 924 0.4 %
Rockdale Blackhawk, LLC (Capex) L+11.00% 12.00 % 3/31/2020 565 565 565 0.2 %
SHI Holdings, Inc. ^(e) L+9.25% 10.01 % 7/10/2019 2,625 2,592 2,625 1.1 %
SHI Holdings, Inc. (Revolver) ^(f) L+9.25% 10.01 % 7/10/2019 1,773 1,188 1,203 0.5 %
17,735 15,424 16,250 6.7 %
Total Non-Controlled Affiliate Senior Secured Loans 35,517 32,974 33,489 14.0 %

Junior Secured Loans
Consumer Goods: Non-Durable
Rocket Dog Brands, LLC n/a 15.00% PIK 5/1/2020 1,938 1,938 - 0.0 %
1,938 1,938 - 0.0 %
Total Non-Controlled Affiliate Junior Secured Loans 1,938 1,938 - 0.0 %

Equity Securities
Banking, Finance, Insurance & Real Estate
American Community Homes, Inc. (warrant to purchase up to 9.0% of the equity) - - ^(u) 10/9/2024 - - 1,315 0.6 %
- 1,315 0.6 %


Spread Above

Interest

Acquisition





Amortized



% of

Portfolio Company ^(a)

Index ^(b)

Rate

Date ^(c)

Maturity

Principal

Cost

Fair Value ^(d)

Net Assets ^(e)

FIRE: Real Estate

Centaur (Palm Beach) Owner LLC and Panther National Golf Club LLC ^(h)

SF+8.25
%
9.38
%
5/3/2022

4/30/2025

3,300

$
3,237

$
3,300

1.4
%
Centaur (Palm Beach) Owner LLC and Panther National Golf Club LLC (Delayed Draw) ^{(f) (g) (h)}

SF+8.25
%
9.51
%
5/3/2022

4/30/2025

337

116

116

0.0
%
Centaur (Palm Beach) Owner LLC and Panther National Golf Club LLC (Revolver)^{(f) (h)}

SF+8.25
%
9.38
%
5/3/2022

4/30/2025

1,653

—

—

0.0
%
Florida East Coast Industries, LLC^(h)

n/a

10.50
%
8/9/2021

6/28/2024

2,084

2,039

2,063

0.9
%
NCBP Property, LLC ^(h)

L+9.50
%
10.56
%
12/18/2020

12/16/2022

1,950

1,946

1,955

0.9
%

9,324

7,338

7,434

3.2
%
Healthcare & Pharmaceuticals

















Apotheco, LLC

L+8.50
%
7.17% Cash/
3.00% PIK

4/8/2019

4/8/2024

3,670

3,642

3,670

1.6
%
Apotheco, LLC (Revolver)

L+8.50
%
7.17% Cash/
3.00% PIK

4/8/2019

4/8/2024

970

970

970

0.4
%
Brickell Bay Acquisition Corp.

L+6.50
%
7.50
%
2/12/2021

2/12/2026

1,890

1,858

1,880

0.8
%
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

SF+8.75
%
6.75% Cash/
3.00% PIK

6/30/2021

6/30/2027

4,975

4,889

4,546

2.0
%
Caravel Autism Health, LLC (Delayed Draw)^{(f) (g)}

SF+8.75
%
6.75% Cash/
3.00% PIK

6/30/2021

6/30/2027

3,749

186

170

0.1
%
Caravel Autism Health, LLC (Revolver) ^(f)

SF+8.75
%
6.75% Cash/
3.00% PIK

6/30/2021

6/30/2027

1,250

625

571

0.2
%
Dorado Acquisition, Inc.

L+6.25
%
7.25
%
6/30/2021

6/30/2026

4,963

4,880

4,980

2.1
%
Dorado Acquisition, Inc. (Delayed Draw)^{(f) (g)}

L+6.25
%
7.25
%
6/30/2021

6/30/2026

216

—

—

0.0
%
Dorado Acquisition, Inc. (Revolver) ^(f)

L+6.25
%
7.25
%
6/30/2021

6/30/2026

596

—

—

0.0
%
INH Buyer, Inc.

L+6.00
%
8.25
%
6/30/2021

6/28/2028

2,924

2,898

2,762

1.2
%
NationsBenefits, LLC

SF+7.00
%
8.15
%
8/20/2021

8/20/2026

3,980

3,912

4,020

1.7
%
NationsBenefits, LLC (Revolver) ^(f)

SF+7.00
%
8.15
%
8/20/2021

8/20/2026

445

—

—

0.0
%
Rockdale Blackhawk, LLC

n/a

n/a
⁽ⁿ⁾
3/31/2015

n/a
^(o)
—

—

1,102

0.5
%
Seran BioScience, LLC

L+6.25
%
7.25
%
12/31/2020

7/8/2027

2,469

2,433

2,469

1.1
%
Seran BioScience, LLC (Revolver) ^(f)

L+6.25
%
7.25
%
12/31/2020

7/8/2027

444

—

—

0.0
%
TigerConnect, Inc.

SF+6.75
%
7.75
%
2/16/2022

2/16/2028

3,000

2,944

2,966

1.3
%
TigerConnect, Inc. (Delayed Draw) ^{(f) (g)}

SF+6.75
%
7.75
%
2/16/2022

2/16/2028

124

—

—

0.0
%
TigerConnect, Inc. (Revolver) ^(f)

SF+6.75
%
7.75
%
2/16/2022

2/16/2028

429

—

—

0.0
%
Whistler Parent Holdings III, Inc.

SF+6.75
%
8.38
%
6/3/2022

6/2/2028

4,500

4,410

4,410

1.9
%
Whistler Parent Holdings III, Inc. (Delayed Draw) ^{(f) (g)}

SF+6.75
%
8.38
%
6/3/2022

6/2/2028

1,406

—

—

0.0
%
Whistler Parent Holdings III, Inc. (Revolver) ^(f)

SF+6.75
%
8.38
%
6/3/2022

6/2/2028

563

—

—

0.0
%

42,945

33,647

34,516

14.9
%

16
10

Table of Contents

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS –- (continued)

~~December 31, 2016~~(unaudited)

June 30, 2022

(in thousands, except for shares and units)

Portfolio Company ^(a) Spread
Above
Index ^(b) Interest
Rate Maturity Principal Amortized
Cost Fair
Value ^(c) % of
Net Assets ^(d)
Consumer Goods: Non-Durable
Rocket Dog Brands, LLC - Common Units (75,502 units) - - ^(u) - - $ - $ - 0.0 %
Rocket Dog Brands, LLC - Preferred Units (10 units) - 15.00% PIK ^(x) - - 967 - 0.0 %
967 - 0.0 %
Containers, Packaging & Glass
Summit Container Corporation (warrant to purchase up to 19.50% of the equity) - - ^(u) 1/6/2024 - - 113 0.0 %
- 113 0.0 %
Healthcare & Pharmaceuticals
Rockdale Blackhawk, LLC - LLC Units (11.56% of the LLC interest) - - - - 1,093 14,655 6.1 %
SHI Holdings, Inc. (24 shares of common stock) - - ^(u) - - 27 469 0.2 %
1,120 15,124 6.3 %
Total Non-Controlled Affiliate Equity Securities 2,087 16,552 6.9 %
Total Non-Controlled Affiliate Company Investments $ 36,999 $ 50,041 20.9 %

Controlled Affiliate Company Investments ^(y)
Senior Secured Loans
Retail
TPP Operating, Inc. L+6.00% 7.50 %^(k) 11/8/2018 9,370 $ 9,330 $ 1,799 0.7 %
TPP Operating, Inc. L+6.00% 7.50 %^(k) 11/8/2018 4,344 4,344 4,344 1.8 %
TPP Operating, Inc. L+9.61% 11.11 %^(k) 11/8/2018 2,756 2,756 2,756 1.1 %
16,470 16,430 8,899 3.6 %
Total Controlled Affiliate Senior Secured Loans 16,470 16,430 8,899 3.6 %

Equity Securities
Retail
TPP Acquisition, Inc. (829 shares of common stock) - - ^(u) - - - - 0.0 %
TPP Operating, Inc. (40 shares of common stock) - - ^(u) - - 3,255 - 0.0 %
Total Controlled Affiliate Equity Securities 3,255 - 0.0 %
Total Controlled Affiliate Company Investments $ 19,685 $ 8,899 3.6 %

TOTAL INVESTMENTS $ 413,242 $ 412,920 171.4 %


Spread Above

Interest

Acquisition





Amortized



% of

Portfolio Company ^(a)

Index ^(b)

Rate

Date ^(c)

Maturity

Principal

Cost

Fair Value ^(d)

Net Assets ^(e)

High Tech Industries

















Arcstor Midco, LLC

L+7.00
%
9.25
%
3/16/2021

3/16/2027

4,444

$
4,370

$
4,180

1.8
%
MarkLogic Corporation

L+6.50
%
7.79
%
10/20/2020

10/20/2025

3,448

3,388

3,425

1.5
%
MarkLogic Corporation

L+6.50
%
7.79
%
11/23/2021

10/20/2025

321

316

319

0.1
%
MarkLogic Corporation

SF+6.50
%
7.95
%
11/23/2021

10/20/2025

215

215

214

0.1
%
MarkLogic Corporation

SF+6.50
%
7.95
%
5/10/2022

10/20/2025

2,682

2,630

2,664

1.1
%
MarkLogic Corporation (Revolver) ^(f)

SF+6.50
%
7.95
%
10/20/2020

10/20/2025

269

—

—

0.0
%
Mindbody, Inc.

L+8.50
%
8.38% Cash/
1.50% PIK

2/15/2019

2/14/2025

6,536

6,476

6,533

2.8
%
Mindbody, Inc.

L+8.50
%
8.38% Cash/
1.50% PIK

9/22/2021

2/14/2025

674

674

673

0.3
%
Mindbody, Inc. (Revolver) ^(f)

L+8.00
%
9.38
%
2/15/2019

2/14/2025

667

—

—

0.0
%
Newforma, Inc.

L+5.50
%
7.75
%
6/30/2017

3/31/2023

3,077

3,075

3,077

1.3
%
Newforma, Inc. (Revolver) ^(f)

L+5.50
%
7.75
%
6/30/2017

3/31/2023

1,250

—

—

0.0
%
Planful, Inc.

L+6.50
%
7.56
%
12/28/2018

12/30/2024

9,500

9,436

9,462

4.1
%
Planful, Inc.

L+6.50
%
7.56
%
1/11/2021

12/30/2024

1,325

1,325

1,320

0.6
%
Planful, Inc.

L+6.50
%
7.56
%
2/11/2022

12/30/2024

884

884

880

0.4
%
Planful, Inc. (Revolver)

L+6.50
%
7.56
%
12/28/2018

12/30/2024

442

442

440

0.2
%

35,734

33,231

33,187

14.3
%
Hotels, Gaming & Leisure

















Equine Network, LLC

SF+8.00
%
9.05
%
12/31/2020

12/31/2025

1,728

1,700

1,704

0.7
%
Equine Network, LLC

SF+8.00
%
9.05
%
1/29/2021

12/31/2025

784

772

773

0.3
%
Equine Network, LLC (Delayed Draw) ^{(f) (g)}

SF+8.00
%
9.05
%
12/31/2020

12/31/2025

427

—

—

0.0
%
Equine Network, LLC (Revolver) ^(f)

SF+8.00
%
9.05
%
12/31/2020

12/31/2025

171

85

84

0.1
%

3,110

2,557

2,561

1.1
%
Media: Advertising, Printing & Publishing

















Destination Media, Inc.

SF+5.50
%
7.14
%
4/7/2017

10/7/2022

1,093

1,093

1,093

0.5
%
Destination Media, Inc. (Revolver) ^(f)

SF+5.50
%
7.14
%
4/7/2017

10/7/2022

542

—

—

0.0
%
North Haven USHC Acquisition, Inc.

L+6.00
%
8.25
%
10/30/2020

10/30/2025

2,463

2,428

2,447

1.1
%
North Haven USHC Acquisition, Inc.

L+6.00
%
8.25
%
3/12/2021

10/30/2025

713

713

709

0.3
%
North Haven USHC Acquisition, Inc. (Delayed Draw) ^{(f) (g)}

L+6.00
%
8.25
%
9/3/2021

10/30/2025

1,439

479

477

0.2
%
North Haven USHC Acquisition, Inc. (Revolver) ^(f)

L+6.00
%
8.25
%
10/30/2020

10/30/2025

240

—

—

0.0
%
Relevate Health Group, LLC

SF+6.00
%
7.15
%
11/20/2020

11/20/2025

1,481

1,460

1,469

0.6
%
Relevate Health Group, LLC (Delayed Draw) ^{(f) (g)}

SF+6.00
%
7.15
%
11/20/2020

11/20/2025

781

663

657

0.3
%
Relevate Health Group, LLC (Revolver) ^(f)

SF+6.00
%
7.15
%
11/20/2020

11/20/2025

316

—

—

0.0
%
Spherix Global Inc.

SF+6.00
%
7.16
%
12/22/2021

12/22/2026

1,097

1,080

1,093

0.4
%
Spherix Global Inc. (Revolver) ^(f)

SF+6.00
%
7.16
%
12/22/2021

12/22/2026

122

—

—

0.0
%
XanEdu Publishing, Inc.

L+6.50
%
8.17
%
1/28/2020

1/28/2025

4,607

4,543

4,610

2.0
%
XanEdu Publishing, Inc. (Revolver) ^(f)

L+6.50
%
8.75
%
1/28/2020

1/28/2025

742

198

198

0.1
%

15,636

12,657

12,753

5.5
%

Table of Contents

MONROE CAPITAL CORPORATION

~~(a) All of our investments are issued by eligible U.S. portfolio companies, as defined~~ CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)

(unaudited)

June 30, 2022

(in ~~the Investment Company Act of 1940 (the “1940 Act”), unless otherwise noted. All of our investments are issued by U.S. portfolio companies~~thousands, except for ~~InMobi Pte, Ltd. which is an international company headquartered~~ shares and units)

Spread Above

Interest

Acquisition





Amortized



% of

Portfolio Company ^(a)

Index ^(b)

Rate

Date ^(c)

Maturity

Principal

Cost

Fair Value ^(d)

Net Assets ^(e)

Media: Broadcasting & Subscription

















Vice Group Holding Inc.

L+12.00
%
5.50% Cash/
8.00% PIK

5/2/2019

11/2/2022

1,604

$
1,602

$
1,597

0.7
%
Vice Group Holding Inc.

L+12.00
%
5.50% Cash/
8.00% PIK

11/4/2019

11/2/2022

308

307

307

0.1
%
Vice Group Holding Inc.

L+12.00
%
5.50% Cash/
8.00% PIK

5/2/2019

11/2/2022

503

503

501

0.2
%
Vice Group Holding Inc.

L+12.00
%
5.50% Cash/
8.00% PIK

5/2/2019

11/2/2022

189

189

189

0.1
%

2,604

2,601

2,594

1.1
%
Media: Diversified & Production

















Attom Intermediate Holdco, LLC

L+6.15
%
7.82
%
1/4/2019

1/4/2024

1,930

1,917

1,929

0.9
%
Attom Intermediate Holdco, LLC

L+6.15
%
7.82
%
6/25/2020

1/4/2024

470

466

470

0.2
%
Attom Intermediate Holdco, LLC

L+6.15
%
7.82
%
7/1/2021

1/4/2024

277

273

277

0.1
%
Attom Intermediate Holdco, LLC (Revolver)^(f)

L+5.75
%
7.42
%
1/4/2019

1/4/2024

320

224

224

0.1
%
Bonterra, LLC (fka Cybergrants Holdings)

L+6.50
%
8.75
%
9/8/2021

9/8/2027

12,799

12,633

12,543

5.4
%
Bonterra, LLC (fka Cybergrants Holdings) (Delayed Draw) ^{(f) (g)}

L+6.50
%
8.75
%
9/8/2021

9/8/2027

2,302

—

—

0.0
%
Bonterra, LLC (fka Cybergrants Holdings) (Revolver)^(f)

L+6.50
%
8.75
%
9/8/2021

9/8/2027

1,069

652

639

0.3
%
Chess.com, LLC

L+6.50
%
8.75
%
12/31/2021

12/31/2027

5,985

5,875

5,925

2.6
%
Chess.com, LLC (Revolver) ^(f)

L+6.50
%
8.75
%
12/31/2021

12/31/2027

652

—

—

0.0
%
Crownpeak Technology, Inc.

L+5.75
%
6.81
%
2/28/2019

2/28/2024

4,000

3,971

3,984

1.7
%
Crownpeak Technology, Inc.

L+5.75
%
6.81
%
2/28/2019

2/28/2024

60

60

60

0.0
%
Crownpeak Technology, Inc. (Revolver)^(f)

L+5.75
%
6.81
%
2/28/2019

2/28/2024

167

—

—

0.0
%
Spectrum Science Communications, LLC

SF+6.25
%
7.91
%
1/25/2022

1/25/2027

1,000

982

996

0.4
%
Spectrum Science Communications, LLC (Revolver) ^(f)

SF+6.25
%
7.91
%
1/25/2022

1/25/2027

200

—

—

0.0
%

31,231

27,053

27,047

11.7
%
Retail

















BLST Operating Company, LLC

L+8.50
%
1.00% Cash/ 9.00% PIK
^(j)
8/28/2020

8/28/2025

1,147

967

1,143

0.5
%
Forman Mills, Inc.

SF+9.50
%
9.14% Cash/
2.00% PIK

1/14/2020

12/30/2022

1,275

1,275

1,263

0.5
%
Forman Mills, Inc.

SF+9.50
%
9.14% Cash/
2.00% PIK

10/4/2016

12/30/2022

7,228

7,217

7,163

3.1
%

9,650

9,459

9,569

4.1
%
Services: Business

Aras Corporation

L+7.00
%
4.27% Cash/ 3.75% PIK

4/13/2021

4/13/2027

2,115

2,083

2,142

0.9
%
Aras Corporation (Revolver) ^(f)

L+7.00
%
4.27% Cash/
3.75% PIK

4/13/2021

4/13/2027

150

—

—

0.0
%
Burroughs, Inc.

SF+7.50
%
8.65
%
12/22/2017

12/22/2023

5,351

5,339

5,303

2.3
%
Burroughs, Inc. (Revolver)^(f)

SF+7.50
%
8.65
%
12/22/2017

12/22/2023

1,215

—

—

0.0
%
HS4 Acquisitionco, Inc.

L+6.75
%
9.00
%
7/9/2019

7/9/2025

9,950

9,838

9,910

4.3
%
HS4 Acquisitionco, Inc. (Revolver)^(f)

L+6.75
%
9.00
%
7/9/2019

7/9/2025

817

123

122

0.1
%
RedZone Robotics, Inc.

L+6.75
%
8.42
%
6/1/2018

6/5/2023

208

207

208

0.1
%
RedZone Robotics, Inc. (Revolver)^(f)

L+6.75
%
8.42
%
6/1/2018

6/5/2023

158

—

—

0.0
%
Relativity ODA LLC

L+7.50
%
9.15% PIK

5/12/2021

5/12/2027

1,954

1,914

1,946

0.8
%
Relativity ODA LLC (Revolver)^(f)

L+7.50
%
9.15% PIK

5/12/2021

5/12/2027

180

—

—

0.0
%
Security Services Acquisition Sub Corp.

L+6.00
%
7.67
%
9/30/2021

9/30/2026

7,940

7,858

7,940

3.4
%
Security Services Acquisition Sub Corp.

L+6.00
%
7.67
%
2/15/2019

9/30/2026

3,396

3,372

3,396

1.5
%
Security Services Acquisition Sub Corp.

L+6.00
%
7.67
%
2/15/2019

9/30/2026

2,442

2,442

2,442

1.1
%
Security Services Acquisition Sub Corp.

L+6.00
%
7.67
%
2/15/2019

9/30/2026

2,146

2,146

2,146

0.9
%
Security Services Acquisition Sub Corp.

L+6.00
%
7.67
%
2/15/2019

9/30/2026

1,543

1,543

1,543

0.7
%
ServiceMax, Inc. ^(h)

L+7.00
%
8.00% PIK

11/1/2021

11/1/2027

3,618

3,555

3,582

1.5
%
ServiceMax, Inc. (Revolver) ^{(f) (h)}

L+7.00
%
8.00% PIK

11/1/2021

11/1/2027

350

—

—

0.0
%
VPS Holdings, LLC

L+8.00
%
8.67% Cash/
1.00% PIK

10/5/2018

10/4/2024

3,351

3,322

3,355

1.4
%
VPS Holdings, LLC

L+8.00
%
8.67% Cash/
1.00% PIK

10/5/2018

10/4/2024

2,740

2,740

2,743

1.2
%
VPS Holdings, LLC (Revolver) ^(f)

L+8.00
%
8.67% Cash/
1.00% PIK

10/5/2018

10/4/2024

1,002

102

102

0.0
%

50,626

46,584

46,880

20.2
%

Table of Contents

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)

(unaudited)

June 30, 2022

(in ~~California.~~thousands, except for shares and units)

~~(b) The majority~~

Spread Above

Interest

Acquisition





Amortized



% of

Portfolio Company ^(a)

Index ^(b)

Rate

Date ^(c)

Maturity

Principal

Cost

Fair Value ^(d)

Net Assets ^(e)

Services: Consumer

















Express Wash Acquisition Company, LLC

L+6.50
%
7.50
%
12/28/2020

12/26/2025

3,187

$
3,145

$
3,186

1.4
%
Express Wash Acquisition Company, LLC

L+6.50
%
7.50
%
9/3/2021

12/26/2025

7,239

7,136

7,239

3.1
%
Express Wash Acquisition Company, LLC

L+6.50
%
7.50
%
9/3/2021

12/26/2025

3,483

3,483

3,483

1.5
%
Express Wash Acquisition Company, LLC (Delayed Draw) ^{(f) (g)}

L+6.50
%
7.52
%
9/3/2021

12/26/2025

2,370

1,794

1,794

0.8
%
Express Wash Acquisition Company, LLC (Revolver) ^(f)

L+6.50
%
7.50
%
12/28/2020

12/26/2025

750

400

400

0.2
%
IDIG Parent, LLC

L+6.00
%
7.00
%
12/15/2020

12/15/2026

5,489

5,405

5,454

2.3
%
IDIG Parent, LLC

L+6.00
%
7.00
%
12/15/2020

12/15/2026

913

913

907

0.4
%
IDIG Parent, LLC (Revolver)

L+6.00
%
7.02
%
12/15/2020

12/15/2026

429

429

426

0.2
%
Kar Wash Holdings, LLC

SF+6.00
%
7.00
%
2/28/2022

2/26/2027

1,600

1,570

1,600

0.7
%
Kar Wash Holdings, LLC (Delayed Draw) ^{(f) (g)}

SF+6.00
%
7.72
%
2/28/2022

2/26/2027

1,143

1,067

1,067

0.5
%
Kar Wash Holdings, LLC (Revolver) ^(f)

SF+6.00
%
7.72
%
2/28/2022

2/26/2027

381

—

—

0.0
%
Mammoth Holdings, LLC

SF+6.00
%
7.00
%
10/16/2018

10/16/2023

1,930

1,918

1,930

0.8
%
Mammoth Holdings, LLC

SF+6.00
%
7.00
%
10/16/2018

10/16/2023

4,052

4,052

4,052

1.7
%
Mammoth Holdings, LLC

SF+6.00
%
7.00
%
3/12/2021

10/16/2023

6,324

6,324

6,334

2.7
%
Mammoth Holdings, LLC

SF+6.00
%
7.00
%
6/15/2021

10/16/2023

1,641

1,641

1,643

0.7
%
Mammoth Holdings, LLC (Revolver)^(f)

SF+6.00
%
7.00
%
10/16/2018

10/16/2023

657

—

—

0.0
%

41,588

39,277

39,515

17.0
%
Telecommunications

















American Broadband and Telecommunications Company LLC (Delayed Draw) ^{(f) (g)}

P+10.00
%
14.00
%
6/10/2022

6/10/2025

2,000

1,793

1,797

0.8
%
American Broadband and Telecommunications Company LLC (Revolver) ^(f)

P+10.00
%
14.00
%
6/10/2022

6/10/2025

500

120

120

0.1
%
Calabrio, Inc.

L+7.00
%
9.25
%
4/16/2021

4/16/2027

3,400

3,329

3,387

1.5
%
Calabrio, Inc. (Revolver) ^(f)

L+7.00
%
9.25
%
4/16/2021

4/16/2027

409

—

—

0.0
%
VHT Acquisitions, LLC

L+7.00
%
8.00% PIK

12/21/2021

12/21/2026

1,534

1,507

1,527

0.6
%
VHT Acquisitions, LLC (Delayed Draw) ^{(f) (g)}

L+7.00
%
8.00% PIK

12/21/2021

12/21/2026

120

—

—

0.0
%
VHT Acquisitions, LLC (Revolver) ^(f)

L+7.00
%
8.00% PIK

12/21/2021

12/21/2026

43

—

—

0.0
%

8,006

6,749

6,831

3.0
%
Wholesale

















Nearly Natural, Inc.

L+11.50
%
9.75% Cash/
4.00% PIK

12/15/2017

12/15/2022

6,647

6,634

6,226

2.7
%
Nearly Natural, Inc.

L+11.50
%
9.75% Cash/
4.00% PIK

2/16/2021

12/15/2022

3,122

3,107

2,924

1.2
%
Nearly Natural, Inc.

L+11.50
%
9.75% Cash/
4.00% PIK

9/22/2020

12/15/2022

1,719

1,712

1,609

0.7
%
Nearly Natural, Inc.

L+11.50
%
9.75% Cash/
4.00% PIK

8/28/2019

12/15/2022

1,873

1,873

1,754

0.8
%
Nearly Natural, Inc. (Revolver)

L+11.50
%
9.75% Cash/
4.00% PIK

12/15/2017

12/15/2022

2,480

2,480

2,322

1.0
%

15,841

15,806

14,835

6.4
%
Total Non-Controlled/Non-Affiliate Senior Secured Loans

388,507

341,802

341,805

147.3
%

Unitranche Secured Loans ^(p)

















Aerospace & Defense

















Cassavant Holdings, LLC

L+6.50
%
7.56
%
9/8/2021

9/8/2026

7,940

7,805

7,873

3.4
%

7,940

7,805

7,873

3.4
%

Table of the investments bear interest at a rate that may be determined by reference to 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 PrimeContents

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)

(unaudited)

June 30, 2022

(in thousands, except for shares and ~~the current contractual interest rate~~ units)

Spread Above

Interest

Acquisition





Amortized



% of

Portfolio Company ^(a)

Index ^(b)

Rate

Date ^(c)

Maturity

Principal

Cost

Fair Value ^(d)

Net Assets ^(e)

Consumer Goods: Non-Durable

















Vinci Brands LLC

n/a

2.00% PIK
^(j)
7/6/2018

2/6/2024

7,026

$
7,026

$
—

0.0
%
Vinci Brands LLC

n/a

2.00% PIK
^(j)
3/9/2018

2/6/2024

3,065

3,065

—

0.0
%
Vinci Brands LLC

n/a

2.00% PIK
^(j)
12/26/2014

2/6/2024

13,552

13,528

—

0.0
%
Vinci Brands LLC

n/a

2.00% PIK
^(j)
12/26/2014

2/6/2024

1,149

1,149

—

0.0
%

24,792

24,768

—

0.0
%
Healthcare & Pharmaceuticals

















Priority Ambulance, LLC

L+6.50
%
8.75
%
7/18/2018

8/25/2022

10,015

10,015

10,010

4.3
%
Priority Ambulance, LLC

L+6.50
%
8.75
%
4/12/2017

8/25/2022

1,253

1,253

1,253

0.6
%
Priority Ambulance, LLC

L+6.50
%
8.75
%
12/13/2018

8/25/2022

655

655

654

0.3
%
Priority Ambulance, LLC

L+6.50
%
8.75
%
10/22/2020

8/25/2022

990

990

989

0.4
%

12,913

12,913

12,906

5.6
%
High Tech Industries

















WillowTree, LLC

L+5.00
%
6.67
%
10/9/2018

10/9/2023

7,539

7,501

7,535

3.2
%

7,539

7,501

7,535

3.2
%
Services: Business

















ASG II, LLC

SF+6.50
%
8.70
%
5/25/2022

5/25/2028

1,900

1,862

1,862

0.8
%
ASG II, LLC (Delayed Draw) ^{(f) (g)}

SF+6.50
%
8.70
%
5/25/2022

5/25/2028

285

—

—

0.0
%
Onit, Inc.

SF+7.25
%
9.46
%
12/20/2021

5/2/2025

1,680

1,653

1,668

0.7
%

3,865

3,515

3,530

1.5
%
Telecommunications

















VB E1, LLC

L+7.65
%
9.90
%
11/18/2020

11/18/2026

2,250

2,250

2,270

1.0
%

2,250

2,250

2,270

1.0
%
Total Non-Controlled/Non-Affiliate Unitranche Secured Loans

59,299

58,752

34,114

14.7
%

Junior Secured Loans

















Banking

















MoneyLion, Inc. ^(h)

SF+8.50
%
10.82
%
3/25/2022

3/24/2026

5,250

5,199

5,178

2.2
%
MoneyLion, Inc. ^(h)

n/a

12.00
%
8/27/2021

5/1/2023

1,500

1,490

1,498

0.7
%
MoneyLion, Inc. (Delayed Draw) ^{(f) (g) (h)}

SF+8.50
%
10.82
%
3/25/2022

3/24/2026

1,500

—

—

0.0
%

8,250

6,689

6,676

2.9
%
FIRE: Real Estate

















Florida East Coast Industries, LLC^(h)

n/a

16.00% PIK

8/9/2021

6/28/2024

1,643

1,612

1,602

0.7
%
Witkoff/Monroe 700 JV LLC (Delayed Draw) ^{(f) (g) (h)}

n/a

8.00% Cash/
4.00% PIK

7/2/2021

7/2/2026

5,672

5,037

5,037

2.2
%

7,315

6,649

6,639

2.9
%
Services: Consumer

















Education Corporation of America

L+11.00
%
7.75% Cash/
5.50% PIK
^(j)
9/3/2015

n/a
^(o)
833

831

580

0.2
%

833

831

580

0.2
%
Total Non-Controlled/Non-Affiliate Junior Secured Loans

16,398

14,169

13,895

6.0
%

Equity Securities ^{(q) (r)}

















Automotive

















Born To Run, LLC (269,438 Class A units)

—

—
^(s)
4/1/2021

—

—

269

342

0.2
%
Lifted Trucks Holdings, LLC (111,111 Class A units) ^(t)

—

—
^(s)
8/2/2021

—

—

111

91

0.0
%

380

433

0.2
%

Table of Contents

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)

(unaudited)

June 30, 2022

(in ~~effect at December 31, 2016. Certain investments are subject to a LIBOR or Prime interest rate floor.~~thousands, except for shares and units)

~~(c) Because there is no readily available market value~~

Spread Above

Interest

Acquisition





Amortized



% of

Portfolio Company ^(a)

Index ^(b)

Rate

Date ^(c)

Maturity

Principal

Cost

Fair Value ^(d)

Net Assets ^(e)

Banking

















MV Receivables II, LLC (1,458 common units) ^{(h) (t)}

—

—
^(s)
7/29/2021

—

—

$
600

$
1,146

0.5
%
MV Receivables II, LLC (warrant to purchase up to 0.8% of the equity) ^{(h) (t)}

—

—
^(s)
7/28/2021

7/28/2031

—

363

1,034

0.5
%

963

2,180

1.0
%
Beverage, Food & Tobacco













��




California Pizza Kitchen, Inc. (78,699 common units)

—

—
^(s)
8/19/2016

—

—

5,468

2,479

1.1
%

5,468

2,479

1.1
%
Capital Equipment

















MCP Shaw Acquisitionco, LLC (118,906 Class A-2 units) ^(t)

—

—
^(s)
2/28/2020

—

—

119

155

0.1
%

119

155

0.1
%
Chemicals, Plastics & Rubber

















Valudor Products LLC (501,014 Class A-1 units) ^(t)

n/a

10.00% PIK

6/18/2018

—

—

501

275

0.1
%

501

275

0.1
%
Consumer Goods: Durable

















Independence Buyer, Inc. (81 Class A units)

—

—
^(s)
8/3/2021

—

—

81

100

0.1
%

81

100

0.1
%
Environmental Industries

Quest Resource Management Group, LLC (warrant to purchase up to 0.2% of the equity)

—

—
^(s)
10/19/2020

3/19/2028

—

67

123

0.1
%
Quest Resource Management Group, LLC (warrant to purchase up to 0.2% of the equity)

—

—
^(s)
10/19/2021

3/19/2028

—

—

86

0.0
%

67

209

0.1
%
FIRE: Finance

















J2 BWA Funding LLC (0.7% profit sharing) ^{(h) (t)}

—

—
^(s)
12/24/2020

—

—

—

—

0.0
%
PKS Holdings, LLC (5,680 preferred units) ^(h)

n/a

12.00% PIK

11/30/2017

—

—

58

313

0.2
%
PKS Holdings, LLC (5,714 preferred units) ^(h)

n/a

12.00% PIK

11/30/2017

—

—

9

49

0.0
%
PKS Holdings, LLC (132 preferred units) ^(h)

n/a

12.00% PIK

11/30/2017

—

—

1

7

0.0
%
PKS Holdings, LLC (916 preferred units) ^(h)

n/a

12.00% PIK

11/30/2017

—

—

9

49

0.0
%

77

418

0.2
%
FIRE: Real Estate

















Witkoff/Monroe 700 JV LLC (2,141 preferred units) ^{(h) (t)}

n/a

8.00% Cash/
4.00% PIK

7/2/2021

—

—

2

108

0.0
%

2

108

0.0
%
Healthcare & Pharmaceuticals

















Dorado Acquisition, Inc. (178,891 Class A-1 units)

—

—
^(s)
6/30/2021

—

—

179

179

0.1
%
Dorado Acquisition, Inc. (178,891 Class A-2 units)

—

—
^(s)
6/30/2021

—

—

—

133

0.1
%
NationsBenefits, LLC (116,460 Series B units) ^(t)

n/a

5.00% PIK

8/20/2021

—

—

781

934

0.4
%
NationsBenefits, LLC (106,667 shares of common units) ^(t)

—

—
^(s)
8/20/2021

—

—

153

326

0.1
%
Seran BioScience, LLC (33,333 common units) ^(t)

—

—
^(s)
12/31/2020

—

—

334

547

0.2
%

1,447

2,119

0.9
%

Table of Contents

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)

(unaudited)

June 30, 2022

(in thousands, except for ~~these investments, the fair value~~shares and units)

Spread Above

Interest

Acquisition





Amortized



% of

Portfolio Company ^(a)

Index ^(b)

Rate

Date ^(c)

Maturity

Principal

Cost

Fair Value ^(d)

Net Assets ^(e)

High Tech Industries

















MarkLogic Corporation (290,239 Class A units)

—

—
^(s)
10/20/2020

—

—

$
—

$
323

0.1
%
Planful, Inc. (473,082 Class A units)

n/a

8.00% PIK

12/28/2018

—

—

473

458

0.2
%
Recorded Future, Inc. (80,486 Class A units) ^(u)

—

—
^(s)
7/3/2019

—

—

81

217

0.1
%

554

998

0.4
%
Hotels, Gaming & Leisure

















Equine Network, LLC (108 Class A units) ^(t)

—

—
^(s)
12/31/2020

—

—

111

97

0.0
%

111

97

0.0
%
Media: Advertising, Printing & Publishing

AdTheorent Holding Company, Inc. (177,362 shares of common stock) ^{(h) (v)}

—

—
^(s)
12/22/2016

—

—

114

548

0.2
%
InMobi Pte, Ltd. (warrant to purchase up to 2.8% of the equity) ^{(h) (m)}

—

—
^(s)
9/18/2015

9/18/2025

—

—

1,858

0.8
%
Relevate Health Group, LLC (40 preferred units)

n/a

12.00% PIK

11/20/2020

—

—

40

22

0.0
%
Relevate Health Group, LLC (40 Class B common units)

—

—
^(s)
11/20/2020

—

—

—

3

0.0
%
Spherix Global Inc. (81 Class A units)

—

—
^(s)
12/22/2021

—

—

81

76

0.0
%
XanEdu Publishing, Inc. (49,479 Class A units)

n/a

8.00% PIK

1/28/2020

—

—

49

141

0.1
%

284

2,648

1.1
%
Media: Diversified & Production

















Attom Intermediate Holdco, LLC (297,197 Class A units) ^(t)

—

—
^(s)
1/4/2019

—

—

297

449

0.2
%
Chess.com, LLC (2 Class A units) ^(t)

—

—
^(s)
12/31/2021

—

—

87

81

0.0
%

384

530

0.2
%
Retail

















BLST Operating Company, LLC (139,883 Class A units) ^(t)

—

—
^(s)
8/28/2020

—

—

712

420

0.2
%
Forman Mills, Inc. (warrant to purchase up to 2.6% of the equity)

—

—
^(s)
1/14/2020

1/14/2029

—

—

614

0.3
%
Luxury Optical Holdings Co. ^(w)

n/a

n/a
^(s)
9/12/2014

—

—

—

118

0.0
%

712

1,152

0.5
%
Services: Business

















APCO Worldwide, Inc. (100 Class A voting common stock)

—

—
^(s)
11/1/2017

—

—

395

786

0.3
%

395

786

0.3
%
Services: Consumer

















Education Corporation of America - Series G Preferred Stock (8,333 shares)

n/a

12.00% PIK
^(j)
9/3/2015

—

—

7,492

2,295

1.0
%
Express Wash Acquisition Company, LLC (121,311 Class A units) ^(t)

n/a

8.00% PIK

12/28/2020

—

—

125

192

0.1
%
IDIG Parent, LLC (245,958 shares of common stock) ^{(t) (x)}

—

—
^(s)
1/4/2021

—

—

248

349

0.1
%
Kar Wash Holdings, LLC (85,917 Class A units)

—

—
^(s)
2/28/2022

—

—

86

78

0.0
%

7,951

2,914

1.2
%
Telecommunications

















American Broadband and Telecommunications Company LLC (warrant to purchase up to 0.2% of the equity)

—

—
^(s)
6/10/2022

6/10/2032

—

42

42

0.0
%

42

42

0.0
%
Wholesale

















Nearly Natural, Inc. (152,174 Class A units)

—

—
^(s)
12/15/2017

—

—

153

—

0.0
%
Nearly Natural, Inc. (39,394 Class AA units)

—

—
^(s)
8/27/2021

—

—

39

—

0.0
%

192

—

0.0
%
Total Non-Controlled/Non-Affiliate Equity Securities





19,730

17,643

7.5
%
Total Non-Controlled/Non-Affiliate Company Investments





$
434,453

$
407,457

175.5
%

Table of ~~these investments is determined~~ Contents

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)

(unaudited)

June 30, 2022

(in ~~good faith using significant unobservable inputs by our board~~thousands, except for shares and units)

Spread Above

Interest

Acquisition





Amortized



% of

Portfolio Company ^(a)

Index ^(b)

Rate

Date ^(c)

Maturity

Principal

Cost

Fair Value ^(d)

Net Assets ^(e)

Non-Controlled Affiliate Company Investments ^(y)

















Senior Secured Loans

















Beverage, Food & Tobacco

















TJ Management HoldCo LLC (Revolver)^(f)

L+5.50
%
7.79
%
9/9/2020

6/28/2024

477

$
—

$
—

0.0
%

477

—

—

0.0
%
FIRE: Real Estate

















American Community Homes, Inc.

SF+8.00
%
9.64
%
7/22/2014

12/31/2026

10,923

10,923

10,119

4.4
%
American Community Homes, Inc.

SF+14.50
%
16.14% PIK

7/22/2014

12/31/2026

5,078

5,078

4,705

2.0
%
American Community Homes, Inc.

SF+8.00
%
9.64
%
5/24/2017

12/31/2026

662

662

613

0.3
%
American Community Homes, Inc.

SF+8.00
%
9.64
%
8/10/2018

12/31/2026

2,435

2,435

2,256

1.0
%
American Community Homes, Inc.

SF+8.00
%
9.64
%
3/29/2019

12/31/2026

4,507

4,507

4,176

1.8
%
American Community Homes, Inc.

SF+8.00
%
9.64
%
9/30/2019

12/31/2026

21

21

20

0.0
%
American Community Homes, Inc.

SF+8.00
%
9.64
%
12/30/2019

12/31/2026

103

103

96

0.1
%
American Community Homes, Inc. (Revolver) ^(f)

SF+8.00
%
9.64
%
3/30/2020

12/31/2026

2,500

—

—

0.0
%
HFZ Capital Group LLC ^{(h) (z)}

L+12.50
%
14.00% PIK

10/20/2017

n/a
^(o)
13,242

13,242

15,617

6.7
%
HFZ Capital Group LLC ^{(h) (z)}

L+12.50
%
14.00% PIK

10/20/2017

n/a
^(o)
4,758

4,758

5,611

2.4
%
MC Asset Management (Corporate), LLC ^(h)

L+15.00
%
16.00% PIK

1/26/2021

1/26/2024

7,744

7,744

7,744

3.3
%
MC Asset Management (Corporate), LLC (Delayed Draw) ^{(f) (g) (h)}

L+15.00
%
16.00% PIK

4/26/2021

1/26/2024

1,713

920

920

0.4
%
Second Avenue SFR Holdings II LLC (Revolver) ^{(f) (h)}

L+7.00
%
8.06
%
8/11/2021

8/9/2024

4,875

2,592

2,592

1.1
%

58,561

52,985

54,469

23.5
%
Healthcare & Pharmaceuticals

















Ascent Midco, LLC

L+5.75
%
7.42
%
2/5/2020

2/5/2025

6,304

6,235

6,304

2.7
%
Ascent Midco, LLC (Revolver) ^(f)

L+5.75
%
7.42
%
2/5/2020

2/5/2025

1,129

—

—

0.0
%

7,433

6,235

6,304

2.7
%
High Tech Industries

















Mnine Holdings, Inc.

L+8.00
%
4.24% Cash/
5.00% PIK

11/2/2018

12/30/2022

5,330

5,311

5,908

2.5
%

5,330

5,311

5,908

2.5
%
Services: Business

















Curion Holdings, LLC

n/a

14.00% PIK
^(j)
5/2/2017

3/31/2023

4,533

4,400

5,906

2.6
%
Curion Holdings, LLC (Revolver) ^(f)

n/a

14.00% PIK
^(j)
5/2/2017

3/31/2023

871

150

337

0.1
%

5,404

4,550

6,243

2.7
%
Services: Consumer

















NECB Collections, LLC (Revolver) ^(f)

L+11.00
%
14.61% PIK
^(j)
6/25/2019

n/a
^(o)
1,356

1,312

515

0.2
%

1,356

1,312

515

0.2
%
Total Non-Controlled Affiliate Senior Secured Loans

78,561

70,393

73,439

31.6
%

Junior Secured Loans

















FIRE: Real Estate

















SFR Holdco, LLC ^(h)

n/a

8.00
%
8/6/2021

7/28/2028

5,850

5,850

5,850

2.5
%

5,850

5,850

5,850

2.5
%
Services: Business

















Curion Holdings, LLC

n/a

15.00% PIK
^(j)
8/17/2018

1/2/2023

1,720

1

—

0.0
%
Curion Holdings, LLC

n/a

15.00% PIK
^(j)
8/17/2018

1/2/2023

44

—

—

0.0
%

1,764

1

—

0.0
%
Total Non-Controlled Affiliate Company Junior Secured Loans

7,614

5,851

5,850

2.5
%

Table of ~~directors as required by the Investment Company Act~~Contents

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)

(unaudited)

June 30, 2022

(in thousands, except for shares and units)

Spread Above

Interest

Acquisition





Amortized



% of

Portfolio Company ^(a)

Index ^(b)

Rate

Date ^(c)

Maturity

Principal

Cost

Fair Value ^(d)

Net Assets ^(e)

Equity Securities ^{(r) (y)}

















Beverage, Food & Tobacco

















TJ Management HoldCo LLC (16 shares of common stock) ^{(i) (t)}

—

—
^(s)
9/9/2020

—

—

$
1,631

$
3,030

1.3
%

1,631

3,030

1.3
%
FIRE: Real Estate

















American Community Homes, Inc. (warrant to purchase up to 22.3% of the equity)

—

—
^(s)
10/9/2014

12/18/2024

—

—

—

0.0
%
MC Asset Management (Corporate), LLC (15.9% of interests) ^{(h) (t) (z)}

—

—
^(s)
6/11/2019

—

—

793

439

0.2
%
SFR Holdco, LLC (24.4% of interests) ^(h)

—

—
^(s)
8/6/2021

—

—

3,900

3,900

1.7
%

4,693

4,339

1.9
%
Healthcare & Pharmaceuticals

















Ascent Midco, LLC (2,032,258 Class A units) ^(t)

n/a

8.00% PIK

2/5/2020

—

—

2,032

1,618

0.7
%
Familia Dental Group Holdings, LLC (1,158 Class A units) ^{(t) (aa)}

—

—
^(s)
4/8/2016

—

—

3,968

2,755

1.2
%

6,000

4,373

1.9
%
High Tech Industries

















Mnine Holdings, Inc. (6,400 Class B units)

—

—
^(s)
6/30/2020

—

—

—

—

0.0
%

—

—

0.0
%
Services: Business

















Curion Holdings, LLC (58,779 shares of common stock)

—

—
^(s)
8/17/2018

—

—

—

—

0.0
%

—

—

0.0
%
Services: Consumer

















NECB Collections, LLC (20.8% of units) ^(t)

—

—
^(s)
6/21/2019

—

—

1,458

—

0.0
%

1,458

—

0.0
%
Total Non-Controlled Affiliate Equity Securities





13,782

11,742

5.1
%
Total Non-Controlled Affiliate Company Investments





$
90,026

$
91,031

39.2
%

Controlled Affiliate Company Investments ^(ab)

















Equity Securities

















Investment Funds & Vehicles

















MRCC Senior Loan Fund I, LLC (50.0% of the equity interests)^(h)

—

—

10/31/2017

—

—

$
42,650

$
37,551

16.2
%
Total Controlled Affiliate Equity Securities





42,650

37,551

16.2
%
Total Controlled Affiliate Company Investments





$
42,650

$
37,551

16.2
%

TOTAL INVESTMENTS

$
567,129

$
536,039

230.9
%

Table of ~~1940. (See Note 4~~ Contents

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)

(unaudited)

June 30, 2022

(in ~~the accompanying notes to the consolidated financial statements.)~~thousands, except for shares and units)

~~(d)~~ 

Derivative Instruments

Foreign currency forward contracts

Notional Amount

Notional Amount



Settlement

Unrealized Gain
Description

to be Purchased

to be Sold

Counterparty

Date

(Loss)
Foreign currency forward contract

$
107

AUD
138

Bannockburn Global Forex, LLC

7/18/2022

$
11
Foreign currency forward contract

$
108

AUD
140

Bannockburn Global Forex, LLC

8/16/2022

11
Foreign currency forward contract

$
118

AUD
153

Bannockburn Global Forex, LLC

9/16/2022

13
Foreign currency forward contract

$
117

AUD
152

Bannockburn Global Forex, LLC

10/19/2022

12
Foreign currency forward contract

$
105

AUD
136

Bannockburn Global Forex, LLC

11/16/2022

11
Foreign currency forward contract

$
109

AUD
142

Bannockburn Global Forex, LLC

12/16/2022

11
Foreign currency forward contract

$
118

AUD
153

Bannockburn Global Forex, LLC

1/18/2023

13
Foreign currency forward contract

$
108

AUD
140

Bannockburn Global Forex, LLC

2/16/2023

11
Foreign currency forward contract

$
102

AUD
132

Bannockburn Global Forex, LLC

3/16/2023

11
Foreign currency forward contract

$
123

AUD
160

Bannockburn Global Forex, LLC

4/20/2023

13
Foreign currency forward contract

$
93

AUD
121

Bannockburn Global Forex, LLC

5/16/2023

9
Foreign currency forward contract

$
121

AUD
156

Bannockburn Global Forex, LLC

6/19/2023

13
Foreign currency forward contract

$
107

AUD
138

Bannockburn Global Forex, LLC

7/18/2023

11
Foreign currency forward contract

$
113

AUD
146

Bannockburn Global Forex, LLC

8/16/2023

12
Foreign currency forward contract

$
113

AUD
146

Bannockburn Global Forex, LLC

9/18/2023

12
Foreign currency forward contract

$
114

AUD
148

Bannockburn Global Forex, LLC

10/18/2023

12
Foreign currency forward contract

$
107

AUD
140

Bannockburn Global Forex, LLC

11/16/2023

11
Foreign currency forward contract

$
109

AUD
142

Bannockburn Global Forex, LLC

12/18/2023

11
Foreign currency forward contract

$
115

AUD
150

Bannockburn Global Forex, LLC

1/17/2024

12
Foreign currency forward contract

$
110

AUD
143

Bannockburn Global Forex, LLC

2/16/2024

11
Foreign currency forward contract

$
11,827

AUD
15,410

Bannockburn Global Forex, LLC

3/18/2024

1,190

$
1,421
(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”), 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 SOFR and the current contractual interest rate in effect at June 30, 2022. Certain investments are subject to an interest rate floor, or rate cap. Certain investments contain a Payment-in-Kind (“PIK”) provision.
(c) Except as otherwise noted, all of the Company’s portfolio company investments, which as of June 30, 2022 represented 230.9% of the Company’s net assets or 96.4% 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 $232,121 as of June 30, 2022
(f) All or a portion of this commitment was unfunded at June 30, 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.

Table of ~~$240,850 as of December 31, 2016.~~Contents

MONROE CAPITAL CORPORATION

~~(e) All of this loan is held~~ CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)

(unaudited)

June 30, 2022

(in ~~the Company’s wholly-owned subsidiary, Monroe Capital Corporation SBIC, LP~~thousands, except for shares and ~~is therefore not collateral to the Company’s revolving credit facility.~~units)

~~(f) All or a portion of this commitment was unfunded at December 31, 2016. As such, interest is earned only on the funded portion of this commitment.~~

(g) 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 December 31, 2016, non-qualifying assets totaled 2.20% of the Company’s total assets.

(h) A portion of this loan (principal of $2,271) 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.

~~(i) This delayed draw loan requires that certain financial covenants be met by the portfolio company prior to any fundings.~~

~~(j) The PIK portion of the interest rate for Landpoint, LLC is structured as a fee paid upon the termination of the commitment. The fee currently accrues at 2.25% per annum.~~

(k) This position was on non-accrual status as of December 31, 2016, meaning that the Company has ceased recognizing 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.

~~(l) A portion of the PIK interest rate for TRG, LLC is structured as a fee paid upon the termination of the commitment. The fee currently accrues at 4.30% per annum.~~

(m) A portion of this loan (principal of $4,660) 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.

~~(n) A portion of the PIK interest rate for Vacation Innovations, LLC is structured as a fee paid upon the termination of the commitment. The fee currently accrues at 0.92% per annum.~~

(o) A portion of this loan (principal of $3,435) 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.

~~(p) The PIK portion of the interest rate for Peerless Network, Inc. is structured as a fee paid upon the termination of the commitment. The fee currently accrues at 0.75% per annum.~~

(q) A portion of this loan (principal of $5,240) 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.

(r) The sale of a portion of this loan does not qualify for sale accounting under ASC Topic 860 — Transfers and Servicing, and therefore, the entire unitranche loan asset remains in the Consolidated Schedule of Investments.

~~(s) The PIK portion of the interest rate for Gracelock Industries, LLC is structured as a fee paid upon the termination of the commitment. The fee currently accrues at 4.24% per annum.~~

~~(t)~~
(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 June 30, 2022, non-qualifying assets totaled 23.2% of the Company’s total assets.
(i) During 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 June 30, 2022.
(j) This position was on non-accrual status as of June 30, 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.
(k) This investment represents a note convertible to preferred shares of the borrower.
(l) 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. This investment is a non-income producing security.
(o) This is a demand note with no stated maturity.
(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 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.
(q) Represents less than 5% ownership of the portfolio company’s voting securities.
(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.
(u) As of June 30, 2022, the Company was party to a subscription agreement with a commitment to fund an additional equity investment of $16.
(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 remaining fair value at June 30, 2022 represents the remaining expected escrow proceeds associated with the sale.
(x) As of June 30, 2022, the Company was party to a subscription agreement with a commitment to fund an equity investment of $43.

Table of Contents

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)

(unaudited)

June 30, 2022

(in thousands, except for shares and units)

(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).

(z)

The Company restructured its investments in HFZ Capital Group LLC (“HFZ”) and HFZ Member RB portfolio, LLC (“Member RB”) during 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–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.

(aa)	As of June 30, 2022, the Company was party to a subscription agreement with a commitment to fund an additional equity investment of $244.

(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.~~

~~(u) Represents a non-income producing security.~~

(v) As defined in the 1940 Act, the Company is deemed to be an “Affiliated Person” of the portfolio company as it owns five percent 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).

~~(w) This is a demand note with no stated maturity.~~

~~(x) This position includes a PIK dividend and is currently on non-accrual status.~~

~~(y) 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% in~~ 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.

n/a - not applicable

Table of Contents

MONROE CAPITAL CORPORATION

~~See Notes to Consolidated Financial Statements.~~CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2021

(in thousands, except for shares and units)

Spread
















Above

Acquisition

Fair

% of

Portfolio Company ^(a)

Index ^(b)

Interest Rate

Date ^(c)

Maturity

Principal

Amortized Cost

Value ^(d)

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
%

Table of Contents

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

December 31, 2021

(in thousands, except for shares and units)

Spread

Above

Acquisition

% of

Portfolio Company ^(a)

Index ^(b)

Interest Rate

Date ^(c)

Maturity

Principal

Amortized Cost

Fair Value ^(d)

Net Assets ^(e)

Capital Equipment

MCP Shaw Acquisitionco, LLC ^(k)

SF+6.50
%
7.50
%
2/28/2020

11/28/2025

9,733

$
9,595

$
9,699

3.9
%
MCP Shaw Acquisitionco, LLC

SF+6.50
%
7.50
%
12/29/2021

11/28/2025

3,002

2,942

2,992

1.2
%
MCP Shaw Acquisitionco, LLC (Delayed Draw) ^{(f) (g)}

SF+6.50
%
7.50
%
12/29/2021

11/28/2025

983

—

—

0.0
%
MCP Shaw Acquisitionco, LLC (Revolver) ^(f)

SF+6.50
%
7.50
%
2/28/2020

11/28/2025

1,784

—

—

0.0
%

15,502

12,537

12,691

5.1
%
Chemicals, Plastics & Rubber

Valudor Products LLC

L+7.50
%
7.00% Cash/
1.50% PIK

6/18/2018

6/19/2023

1,585

1,574

1,871

0.7
%
Valudor Products LLC

L+7.50
%
8.50
%
12/22/2021

6/19/2023

548

548

1,469

0.6
%
Valudor Products LLC ⁽ⁿ⁾

L+7.50
%
8.50% PIK

6/18/2018

6/19/2023

237

234

230

0.1
%
Valudor Products LLC (Revolver) ^(f)

L+9.50
%
10.50
%
6/18/2018

6/19/2023

1,095

480

479

0.2
%

3,465

2,836

4,049

1.6
%
Construction & Building

Dude Solutions Holdings, Inc.

L+6.25
%
7.25
%
6/14/2019

6/13/2025

9,900

9,755

9,870

4.0
%
Dude Solutions Holdings, Inc. (Revolver) ^(f)

L+6.25
%
7.25
%
6/14/2019

6/13/2025

1,304

—

—

0.0
%
TCFIII OWL Buyer LLC

L+6.00
%
7.00
%
4/19/2021

4/17/2026

2,040

2,008

2,040

0.8
%
TCFIII OWL Buyer LLC

L+6.00
%
7.00
%
4/19/2021

4/17/2026

2,491

2,491

2,491

1.0
%
TCFIII OWL Buyer LLC

L+6.00
%
7.00
%
12/17/2021

4/17/2026

2,235

2,196

2,235

0.9
%

17,970

16,450

16,636

6.7
%
Consumer Goods: Durable

Independence Buyer, Inc.

L+5.75
%
6.75
%
8/3/2021

8/3/2026

6,000

5,887

6,000

2.4
%
Independence Buyer, Inc. (Revolver) ^(f)

L+5.75
%
6.75
%
8/3/2021

8/3/2026

1,423

—

—

0.0
%
Recycled Plastics Industries, LLC

L+6.75
%
7.75
%
8/4/2021

8/4/2026

3,491

3,426

3,491

1.4
%
Recycled Plastics Industries, LLC (Revolver) ^(f)

L+6.75
%
7.75
%
8/4/2021

8/4/2026

473

142

142

0.1
%

11,387

9,455

9,633

3.9
%
Consumer Goods: Non-Durable

The Kyjen Company, LLC

L+6.50
%
7.50
%
5/14/2021

4/3/2026

993

983

997

0.4
%
The Kyjen Company, LLC (Revolver) ^(f)

L+6.50
%
7.50
%
5/14/2021

4/3/2026

105

43

43

0.0
%
Thrasio, LLC

L+7.00
%
8.00
%
12/18/2020

12/18/2026

2,470

2,438

2,470

1.0
%

3,568

3,464

3,510

1.4
%
Environmental Industries

Quest Resource Management Group, LLC

L+6.50
%
7.50
%
10/19/2020

10/20/2025

990

924

989

0.4
%
Quest Resource Management Group, LLC

L+6.50
%
7.50
%
10/19/2020

10/20/2025

1,087

1,087

1,086

0.4
%
Quest Resource Management Group, LLC

L+6.50
%
7.50
%
12/7/2021

10/20/2025

3,856

3,779

3,853

1.6
%
Quest Resource Management Group, LLC (Delayed Draw) ^{(f) (g)}

L+6.50
%
7.50
%
12/7/2021

10/20/2025

1,778

—

—

0.0
%
StormTrap, LLC

L+5.50
%
6.50
%
12/10/2018

12/8/2023

7,170

7,114

7,170

2.9
%
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

2,853

2,846

2,853

1.1
%
Synergy Environmental Corporation ^(k)

L+6.00
%
7.00
%
4/29/2016

9/29/2023

477

476

477

0.2
%
Synergy Environmental Corporation

L+6.00
%
7.00
%
4/29/2016

9/29/2023

810

810

810

0.3
%
Synergy Environmental Corporation (Revolver) ^(f)

L+6.00
%
7.00
%
4/29/2016

9/29/2023

671

—

—

0.0
%

20,124

17,036

17,238

6.9
%

Table of Contents

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

December 31, 2021

(in thousands, except for shares and units)

Spread
















Above

Acquisition

Fair

% of

Portfolio Company ^(a)

Index ^(b)

Interest Rate

Date ^(c)

Maturity

Principal

Amortized Cost

Value ^(d)

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
%

Table of Contents

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

December 31, 2021

(in thousands, except for shares and units)

Spread
















Above

Acquisition

Fair

% of

Portfolio Company ^(a)

Index ^(b)

Interest Rate

Date ^(c)

Maturity

Principal

Amortized Cost

Value ^(d)

Net Assets ^(e)

Media: Advertising, Printing & Publishing

Destination Media, Inc. ^(k)

L+5.50
%
6.50
%
4/7/2017

4/7/2022

1,738

$
1,736

$
1,738

0.7
%
Destination Media, Inc. (Revolver) ^(f)

L+5.50
%
6.50
%
4/7/2017

4/7/2022

542

—

—

0.0
%
North Haven USHC Acquisition, Inc.

L+6.00
%
7.00
%
10/30/2020

10/30/2025

2,475

2,435

2,475

1.0
%
North Haven USHC Acquisition, Inc.

L+6.00
%
7.00
%
3/12/2021

10/30/2025

717

717

717

0.3
%
North Haven USHC Acquisition, Inc. (Delayed Draw) ^{(f) (g)}

L+6.00
%
7.00
%
9/3/2021

10/30/2025

1,441

482

487

0.2
%
North Haven USHC Acquisition, Inc. (Revolver) ^(f)

L+6.00
%
7.00
%
10/30/2020

10/30/2025

240

—

—

0.0
%
Relevate Health Group, LLC

L+6.00
%
7.00
%
11/20/2020

11/20/2025

1,489

1,465

1,504

0.6
%
Relevate Health Group, LLC (Delayed Draw) ^{(f) (g)}

L+6.00
%
7.00
%
11/20/2020

11/20/2025

784

666

673

0.3
%
Relevate Health Group, LLC (Revolver) ^(f)

L+6.00
%
7.00
%
11/20/2020

11/20/2025

316

—

—

0.0
%
Spherix Global Inc.

SF+6.00
%
7.00
%
12/22/2021

12/22/2026

1,100

1,081

1,081

0.4
%
Spherix Global Inc. (Revolver) ^(f)

SF+6.00
%
7.00
%
12/22/2021

12/22/2026

122

—

—

0.0
%
XanEdu Publishing, Inc.

L+6.50
%
7.50
%
1/28/2020

1/28/2025

4,631

4,555

4,647

1.8
%
XanEdu Publishing, Inc. (Revolver) ^(f)

L+6.50
%
7.50
%
1/28/2020

1/28/2025

742

—

—

0.0
%

16,337

13,137

13,322

5.3
%
Media: Broadcasting & Subscription

















Vice Group Holding Inc.

L+12.00
%
5.50% Cash/
8.00% PIK

5/2/2019

11/2/2022

1,526

1,523

1,526

0.6
%
Vice Group Holding Inc.

L+12.00
%
5.50% Cash/
8.00% PIK

11/4/2019

11/2/2022

293

291

293

0.1
%
Vice Group Holding Inc.

L+12.00
%
5.50% Cash/
8.00% PIK

5/2/2019

11/2/2022

478

478

478

0.2
%
Vice Group Holding Inc.

L+12.00
%
5.50% Cash/
8.00% PIK

5/2/2019

11/2/2022

180

180

180

0.1
%

2,477

2,472

2,477

1.0
%
Media: Diversified & Production

















Attom Intermediate Holdco, LLC

L+6.15
%
7.15
%
1/4/2019

1/4/2024

1,940

1,923

1,937

0.8
%
Attom Intermediate Holdco, LLC

L+6.15
%
7.15
%
6/25/2020

1/4/2024

473

467

472

0.2
%
Attom Intermediate Holdco, LLC

L+6.15
%
7.15
%
7/1/2021

1/4/2024

279

273

278

0.1
%
Attom Intermediate Holdco, LLC (Revolver) ^(f)

L+5.75
%
6.75
%
1/4/2019

1/4/2024

320

160

160

0.1
%
Chess.com, LLC

L+6.50
%
7.50
%
12/31/2021

12/31/2027

6,000

5,880

5,880

2.3
%
Chess.com, LLC (Revolver) ^(f)

L+6.50
%
7.50
%
12/31/2021

12/31/2027

652

—

—

0.0
%
Crownpeak Technology, Inc.

L+5.75
%
6.75
%
2/28/2019

2/28/2024

4,000

3,962

4,000

1.6
%
Crownpeak Technology, Inc.

L+5.75
%
6.75
%
2/28/2019

2/28/2024

60

60

60

0.0
%
Crownpeak Technology, Inc. (Revolver) ^(f)

L+5.75
%
6.75
%
2/28/2019

2/28/2024

167

—

—

0.0
%
CyberGrants Holdings, LLC

L+6.50
%
7.25
%
9/8/2021

9/8/2027

10,900

10,744

10,900

4.4
%
CyberGrants Holdings, LLC (Delayed Draw) ^{(f) (g)}

L+6.50
%
7.25
%
9/8/2021

9/8/2027

1,069

—

—

0.0
%
CyberGrants Holdings, LLC (Revolver) ^(f)

L+6.50
%
7.25
%
9/8/2021

9/8/2027

1,069

—

—

0.0
%

26,929

23,469

23,687

9.5
%
Retail

















BLST Operating Company, LLC

L+8.50
%
1.00% Cash/
9.00% PIK
^(m)
8/28/2020

8/28/2025

1,147

1,025

1,143

0.5
%
Forman Mills, Inc. ^(k)

L+9.50
%
8.50% Cash/
2.00% PIK

1/14/2020

12/30/2022

1,336

1,336

1,330

0.5
%
Forman Mills, Inc. ^(k)

L+9.50
%
8.50% Cash/
2.00% PIK

10/4/2016

12/30/2022

282

281

281

0.1
%
Forman Mills, Inc. ^(k)

L+9.50
%
8.50% Cash/
2.00% PIK

10/4/2016

12/30/2022

7,623

7,600

7,524

3.0
%

10,388

10,242

10,278

4.1
%

Table of Contents

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

December 31, 2021

(in thousands, except for shares and units)

Spread














Above

Acquisition

Amortized

Fair

% of

Portfolio Company ^(a)

Index ^(b)

Interest Rate

Date ^(c)

Maturity

Principal

Cost

Value ^(d)

Net Assets ^(e)

Services: Business

Aras Corporation

L+7.00
%
4.25% Cash/ 3.75% PIK

4/13/2021

4/13/2027

2,079

$
2,044

$
2,103

0.8
%
Aras Corporation (Revolver) ^(f)

L+7.00
%
4.25% Cash/ 3.75% PIK

4/13/2021

4/13/2027

150

—

—

0.0
%
Burroughs, Inc. ^(k)

L+6.50
%
7.50
%
12/22/2017

12/22/2022

5,501

5,477

5,480

2.2
%
Burroughs, Inc. (Revolver) ^(f)

L+6.50
%
7.50
%
12/22/2017

12/22/2022

1,220

—

—

0.0
%
Certify, Inc.

L+5.50
%
6.50
%
2/28/2019

2/28/2024

9,000

8,935

9,000

3.6
%
Certify, Inc.

L+5.50
%
6.50
%
2/28/2019

2/28/2024

1,227

1,227

1,227

0.5
%
Certify, Inc. (Revolver) ^(f)

L+5.50
%
6.50
%
2/28/2019

2/28/2024

409

102

102

0.0
%
HS4 Acquisitionco, Inc.

L+6.75
%
7.75
%
7/9/2019

7/9/2025

10,000

9,869

9,910

4.0
%
HS4 Acquisitionco, Inc. (Revolver) ^(f)

L+6.75
%
7.75
%
7/9/2019

7/9/2025

817

—

—

0.0
%
IT Global Holding LLC ^(h)

L+9.00
%
10.00
%
11/15/2018

11/10/2023

3,405

3,374

4,411

1.8
%
IT Global Holding LLC ^(h)

L+9.00
%
10.00
%
7/19/2019

11/10/2023

1,270

1,255

1,645

0.7
%
IT Global Holding LLC (Revolver) ^(h)

L+9.00
%
10.00
%
11/15/2018

11/10/2023

875

875

1,060

0.4
%
RedZone Robotics, Inc.

L+6.75
%
7.75
%
6/1/2018

6/5/2023

213

211

213

0.1
%
RedZone Robotics, Inc. (Revolver) ^(f)

L+6.75
%
7.75
%
6/1/2018

6/5/2023

158

—

—

0.0
%
Relativity ODA LLC

L+7.50
%
8.50% PIK

5/12/2021

5/12/2027

1,896

1,854

1,894

0.8
%
Relativity ODA LLC (Revolver) ^(f)

L+7.50
%
8.50% PIK

5/12/2021

5/12/2027

180

—

—

0.0
%
Security Services Acquisition Sub Corp.

L+6.00
%
7.00
%
9/30/2021

9/30/2026

7,980

7,872

7,972

3.2
%
Security Services Acquisition Sub Corp. ^(k)

L+6.00
%
7.00
%
2/15/2019

9/30/2026

3,413

3,382

3,409

1.4
%
Security Services Acquisition Sub Corp. ^(k)

L+6.00
%
7.00
%
2/15/2019

9/30/2026

2,455

2,455

2,452

1.0
%
Security Services Acquisition Sub Corp. ^(k)

L+6.00
%
7.00
%
2/15/2019

9/30/2026

2,157

2,157

2,154

0.9
%
Security Services Acquisition Sub Corp.

L+6.00
%
7.00
%
2/15/2019

9/30/2026

1,551

1,551

1,549

0.6
%
ServiceMax, Inc. ^(h)

L+7.00
%
8.00
%
11/1/2021

11/1/2027

3,500

3,431

3,500

1.4
%
ServiceMax, Inc. (Revolver) ^{(f) (h)}

L+7.00
%
8.00
%
11/1/2021

11/1/2027

350

—

—

0.0
%
VPS Holdings, LLC

L+9.00
%
8.00% Cash/
2.00% PIK

10/5/2018

10/4/2024

3,447

3,410

3,325

1.3
%
VPS Holdings, LLC

L+9.00
%
8.00% Cash/
2.00% PIK

10/5/2018

10/4/2024

2,817

2,817

2,717

1.1
%
VPS Holdings, LLC (Revolver) ^(f)

L+9.00
%
8.00% Cash/
2.00% PIK

10/5/2018

10/4/2024

1,001

101

97

0.0
%

67,071

62,399

64,220

25.8
%
Services: Consumer

















Express Wash Acquisition Company, LLC

L+6.50
%
7.50
%
12/28/2020

12/26/2025

3,203

3,156

3,203

1.3
%
Express Wash Acquisition Company, LLC

L+6.50
%
7.50
%
9/3/2021

12/26/2025

7,275

7,156

7,275

2.9
%
Express Wash Acquisition Company, LLC

L+6.50
%
7.50
%
9/3/2021

12/26/2025

3,500

3,500

3,500

1.4
%
Express Wash Acquisition Company, LLC (Delayed Draw) ^{(f) (g)}

L+6.50
%
7.50
%
9/3/2021

12/26/2025

2,500

925

925

0.4
%
Express Wash Acquisition Company, LLC (Revolver) ^(f)

L+6.50
%
7.50
%
12/28/2020

12/26/2025

750

400

400

0.2
%
IDIG Parent, LLC

L+6.00
%
7.00
%
12/15/2020

12/15/2026

5,517

5,423

5,530

2.2
%
IDIG Parent, LLC

L+6.00
%
7.00
%
12/15/2020

12/15/2026

918

918

920

0.4
%
IDIG Parent, LLC (Revolver) ^(f)

L+6.00
%
7.00
%
12/15/2020

12/15/2026

429

—

—

0.0
%
Mammoth Holdings, LLC

L+6.00
%
7.00
%
10/16/2018

10/16/2023

1,940

1,924

1,940

0.8
%
Mammoth Holdings, LLC

L+6.00
%
7.00
%
10/16/2018

10/16/2023

4,073

4,073

4,073

1.5
%
Mammoth Holdings, LLC

L+6.00
%
7.00
%
3/12/2021

10/16/2023

6,355

6,355

6,368

2.6
%
Mammoth Holdings, LLC (Delayed Draw) ^{(f) (g)}

L+6.00
%
7.00
%
6/15/2021

10/16/2023

1,646

988

989

0.4
%
Mammoth Holdings, LLC (Revolver) ^(f)

L+6.00
%
7.00
%
10/16/2018

10/16/2023

657

—

—

0.0
%

38,763

34,818

35,123

14.1
%

Table of Contents

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

December 31, 2021

(in thousands, except for shares and units)

Spread
















Above

Acquisition

% of

Portfolio Company ^(a)

Index ^(b)

Interest Rate

Date ^(c)

Maturity

Principal

Amortized Cost

Fair Value ^(d)

Net Assets ^(e)

Telecommunications

Calabrio, Inc.

L+7.00
%
8.00
%
4/16/2021

4/16/2027

3,400

$
3,322

$
3,400

1.4
%
Calabrio, Inc. (Revolver) ^(f)

L+7.00
%
8.00
%
4/16/2021

4/16/2027

409

—

—

0.0
%
VHT Solutions

L+7.00
%
8.00% PIK

12/21/2021

12/21/2026

1,500

1,470

1,470

0.6
%
VHT Solutions (Delayed Draw) ^{(f) (g)}

L+7.00
%
8.00% PIK

12/21/2021

12/21/2026

120

—

—

0.0
%
VHT Solutions (Revolver) ^(f)

L+7.00
%
8.00% PIK

12/21/2021

12/21/2026

43

—

—

0.0
%

5,472

4,792

4,870

2.0
%
Wholesale

















Nearly Natural, Inc. ^(k)

L+11.50
%
8.50% Cash/
4.00% PIK

12/15/2017

12/15/2022

6,601

6,572

6,520

2.6
%
Nearly Natural, Inc.

L+11.50
%
8.50% Cash/
4.00% PIK

2/16/2021

12/15/2022

3,099

3,066

3,061

1.2
%
Nearly Natural, Inc. ^(k)

L+11.50
%
8.50% Cash/
4.00% PIK

9/22/2020

12/15/2022

1,706

1,691

1,685

0.7
%
Nearly Natural, Inc. ^(k)

L+11.50
%
8.50% Cash/
4.00% PIK

8/28/2019

12/15/2022

1,859

1,859

1,836

0.7
%
Nearly Natural, Inc. (Revolver)

L+11.50
%
8.50% Cash/
4.00% PIK

12/15/2017

12/15/2022

2,430

2,430

2,400

1.0
%

15,695

15,618

15,502

6.2
%
Total Non-Controlled/Non-Affiliate Senior Secured Loans

398,010

347,073

351,698

141.1
%

Unitranche Secured Loans ^(q)

















Aerospace & Defense

















Cassavant Holdings, LLC

L+6.50
%
7.50
%
9/8/2021

9/8/2026

7,980

7,828

7,972

3.2
%

7,980

7,828

7,972

3.2
%
Chemicals, Plastics & Rubber

















MFG Chemical, LLC ^(k)

L+8.00
%
9.00
%
6/23/2017

6/23/2022

5,555

5,546

5,555

2.2
%
MFG Chemical, LLC

L+8.00
%
9.00
%
3/15/2018

6/23/2022

543

543

543

0.2
%

6,098

6,089

6,098

2.4
%
Consumer Goods: Non-Durable

















Vinci Brands LLC (fka Incipio, LLC)

n/a

2.00% PIK
^(m)
7/6/2018

2/6/2024

7,026

7,026

4,950

2.0
%
Vinci Brands LLC (fka Incipio, LLC) ^(r)

n/a

2.00% PIK
^(m)
3/9/2018

2/6/2024

3,065

3,065

—

0.0
%
Vinci Brands LLC (fka Incipio, LLC) ^(s)

n/a

2.00% PIK
^(m)
12/26/2014

2/6/2024

13,552

13,528

—

0.0
%
Vinci Brands LLC (fka Incipio, LLC) ^(t)

n/a

2.00% PIK
^(m)
12/26/2014

2/6/2024

1,149

1,149

—

0.0
%

24,792

24,768

4,950

2.0
%
Healthcare & Pharmaceuticals

















Priority Ambulance, LLC ^(u)

L+6.50
%
7.50
%
7/18/2018

4/12/2022

10,015

10,015

10,010

4.0
%
Priority Ambulance, LLC ^(v)

L+6.50
%
7.50
%
4/12/2017

4/12/2022

1,253

1,251

1,253

0.5
%
Priority Ambulance, LLC

L+6.50
%
7.50
%
12/13/2018

4/12/2022

655

655

655

0.3
%
Priority Ambulance, LLC

L+6.50
%
7.50
%
10/22/2020

4/12/2022

990

990

989

0.4
%

12,913

12,911

12,907

5.2
%
High Tech Industries

















Energy Services Group, LLC

L+8.42
%
9.42
%
5/4/2017

5/4/2022

3,725

3,720

3,725

1.5
%
Energy Services Group, LLC ^{(h) (w)}

SN+8.42
%
9.42
%
5/4/2017

5/4/2022

4,541

4,458

4,541

1.8
%
Energy Services Group, LLC

L+8.42
%
9.42
%
5/4/2017

5/4/2022

1,060

1,047

1,060

0.4
%
WillowTree, LLC

L+5.00
%
6.00
%
10/9/2018

10/9/2023

7,639

7,584

7,651

3.1
%

16,965

16,809

16,977

6.8
%

Table of Contents

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

December 31, 2021

(in thousands, except for shares and units)

Spread
















Above

Acquisition

% of

Portfolio Company ^(a)

Index ^(b)

Interest Rate

Date ^(c)

Maturity

Principal

Amortized Cost

Fair Value ^(d)

Net Assets ^(e)

Services: Business

Onit, Inc.

L+7.25
%
8.25
%
12/20/2021

5/2/2025

1,500

$
1,472

$
1,472

0.6
%

1,500

1,472

1,472

0.6
%
Telecommunications

VB E1, LLC (Delayed Draw) ^{(f) (g)}

L+7.65
%
8.15
%
11/18/2020

11/18/2026

2,250

1,100

1,118

0.4
%

2,250

1,100

1,118

0.4
%
Total Non-Controlled/Non-Affiliate Unitranche Secured Loans

72,498

70,977

51,494

20.6
%

Junior Secured Loans

Banking

MoneyLion, Inc. ^(h)

n/a

12.00
%
8/27/2021

5/1/2023

1,500

1,488

1,522

0.6
%

1,500

1,488

1,522

0.6
%
FIRE: Real Estate

Florida East Coast Industries, LLC ^(h)

n/a

16.00% PIK

8/9/2021

6/28/2024

1,520

1,482

1,530

0.6
%
Witkoff/Monroe 700 JV LLC (Delayed Draw) ^{(f) (g) (h)}

n/a

8.00% Cash/
4.00% PIK

7/2/2021

7/2/2026

5,576

4,665

4,886

2.0
%

7,096

6,147

6,416

2.6
%
Services: Consumer

Education Corporation of America

L+11.00
%
5.72% Cash/
5.50% PIK
^(m)
9/3/2015

n/a
^(p)
833

831

576

0.2
%

833

831

576

0.2
%
Total Non-Controlled/Non-Affiliate Junior Secured Loans

9,429

8,466

8,514

3.4
%

Equity Securities ^{(x) (y)}

















Automotive

















Born To Run, LLC (269,438 Class A units)

—

—
^(z)
4/1/2021

—

—

269

293

0.1
%
Lifted Trucks Holdings, LLC (111,111 Class A units) ^(aa)

—

—
^(z)
8/2/2021

—

—

111

109

0.1
%

380

402

0.2
%
Banking

















MV Receivables II, LLC (729 common units) ^{(h) (aa)}

—

—
^(z)
7/29/2021

—

—

300

558

0.2
%
MV Receivables II, LLC (warrant to purchase up to 0.8% of the equity) ^{(h) (aa)}

—

—
^(z)
7/28/2021

7/28/2031

—

363

1,007

0.4
%

663

1,565

0.6
%

Table of Contents

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

December 31, 2021

(in thousands, except for shares and units)

Spread
















Above

Acquisition

% of

Portfolio Company ^(a)

Index ^(b)

Interest Rate

Date ^(c)

Maturity

Principal

Amortized Cost

Fair Value ^(d)

Net Assets ^(e)

Beverage, Food & Tobacco

















California Pizza Kitchen, Inc. (78,699 common units)

—

—
^(z)
8/19/2016

—

—

$
5,468

$
3,699

1.5
%

5,468

3,699

1.5
%
Capital Equipment

















MCP Shaw Acquisitionco, LLC (118,906 Class A-2 units) ^(aa)

—

—
^(z)
2/28/2020

—

—

119

148

0.1
%

119

148

0.1
%
Chemicals, Plastics & Rubber

















Valudor Products LLC (501,014 Class A-1 units) ^(aa)

n/a

10.00% PIK

6/18/2018

—

—

501

16

0.0
%

501

16

0.0
%
Consumer Goods: Durable

















Independence Buyer, Inc. (81 Class A units)

—

—
^(z)
8/3/2021

—

—

81

101

0.0
%

81

101

0.0
%
Environmental Industries

















Quest Resource Management Group, LLC (warrant to purchase up to 0.2% of the equity)

—

—
^(z)
10/19/2020

3/19/2028

—

67

286

0.1
%
Quest Resource Management Group, LLC (warrant to purchase up to 0.2% of the equity)

—

—
^(z)
10/19/2021

3/19/2028

—

—

169

0.1
%

67

455

0.2
%
FIRE: Finance

















J2 BWA Funding LLC (0.7% profit sharing) ^{(h) (aa)}

—

—
^(z)
12/24/2020

—

—

—

—

0.0
%
PKS Holdings, LLC (5,680 preferred units) ^(h)

n/a

12.00% PIK

11/30/2017

—

—

58

219

0.1
%
PKS Holdings, LLC (5,714 preferred units) ^(h)

n/a

12.00% PIK

11/30/2017

—

—

9

34

0.0
%
PKS Holdings, LLC (132 preferred units) ^(h)

n/a

12.00% PIK

11/30/2017

—

—

1

5

0.0
%
PKS Holdings, LLC (916 preferred units) ^(h)

n/a

12.00% PIK

11/30/2017

—

—

9

34

0.0
%

77

292

0.1
%
FIRE: Real Estate

















Witkoff/Monroe 700 JV LLC (2,141 preferred units) ^{(h) (aa)}

n/a

8.00% Cash/
4.00% PIK

7/2/2021

—

—

2

2

0.0
%

2

2

0.0
%
Healthcare & Pharmaceuticals

















Dorado Acquisition, Inc. (178,891 Class A-1 units)

—

—
^(z)
6/30/2021

—

—

179

179

0.1
%
Dorado Acquisition, Inc. (178,891 Class A-2 units)

—

—
^(z)
6/30/2021

—

—

—

9

0.0
%
NationsBenefits, LLC (888,889 Series A units) ^(aa)

n/a

9.00% PIK

8/20/2021

—

—

736

714

0.3
%
NationsBenefits, LLC (106,667 shares of common units) ^(aa)

—

—
^(z)
8/20/2021

—

—

153

67

0.0
%
Seran BioScience, LLC (33,333 common units) ^(aa)

—

—
^(z)
12/31/2020

—

—

334

714

0.3
%

1,402

1,683

0.7
%
High Tech Industries

















MarkLogic Corporation (290,239 Class A units)

—

—
^(z)
10/20/2020

—

—

290

423

0.2
%
Planful, Inc. (473,082 Class A units)

n/a

8.00% PIK

12/28/2018

—

—

473

557

0.2
%
Recorded Future, Inc. (80,486 Class A units) ^(ab)

—

—
^(z)
7/3/2019

—

—

81

203

0.1
%

844

1,183

0.5
%
Hotels, Gaming & Leisure

















Equine Network, LLC (99 Class A units) ^(aa)

—

—
^(z)
12/31/2020

—

—

99

102

0.0
%

99

102

0.0
%

Table of Contents

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

December 31, 2021

(in thousands, except for shares and units)

Spread















Above

Acquisition

% of

Portfolio Company ^(a)

Index ^(b)

Interest Rate

Date ^(c)

Maturity

Principal

Amortized Cost

Fair Value ^(d)

Net Assets ^(e)

Media: Advertising, Printing & Publishing

AdTheorent Holding Company, Inc. (177,362 shares of common stock) ^{(h) (aj)}

—

—
^(z)
12/22/2016

—

—

$
114

$
1,041

0.4
%
InMobi Pte, Ltd. (warrant to purchase up to 2.8% of the equity) ^{(h) (j)}

—

—
^(z)
9/18/2015

9/18/2025

—

—

2,204

0.9
%
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)

—

—
^(z)
11/20/2020

—

—

—

—

0.0
%
Spherix Global Inc. (81 Class A units)

—

—
^(z)
12/22/2021

—

—

81

81

0.0
%
XanEdu Publishing, Inc. (49,479 Class A units)

n/a

8.00% PIK

1/28/2020

—

—

49

106

0.0
%

284

3,472

1.3
%
Media: Diversified & Production

Attom Intermediate Holdco, LLC (297,197 Class A units) ^(aa)

—

—
^(z)
1/4/2019

—

—

297

446

0.2
%
Chess.com, LLC (2 Class A units) ^(aa)

—

—
^(z)
12/31/2021

—

—

87

87

0.0
%

384

533

0.2
%
Retail

BLST Operating Company, LLC (139,883 Class A units) ^(aa)

—

—
^(z)
8/28/2020

—

—

712

420

0.2
%
Forman Mills, Inc. (warrant to purchase up to 2.6% of the equity) ^(k)

—

—
^(z)
1/14/2020

1/14/2029

—

—

702

0.3
%
Luxury Optical Holdings Co. ^(af)

n/a

n/a
^(z)
9/12/2014

—

—

—

78

0.0
%

712

1,200

0.5
%
Services: Business

APCO Worldwide, Inc. (100 Class A voting common stock)

—

—
^(z)
11/1/2017

—

—

395

737

0.3
%

395

737

0.3
%
Services: Consumer

Education Corporation of America - Series G Preferred Stock (8,333 shares)

n/a

12.00% PIK
^(m)
9/3/2015

—

—

7,492

2,281

0.9
%
Express Wash Acquisition Company, LLC (121,311 Class A units) ^(aa)

n/a

8.00% PIK

12/28/2020

—

—

125

208

0.1
%
IDIG Parent, LLC (245,958 shares of common stock) ^{(aa) (ac)}

—

—
^(z)
1/4/2021

—

—

248

428

0.2
%

7,865

2,917

1.2
%
Wholesale

















Nearly Natural, Inc. (152,174 Class A units)

—

—
^(z)
12/15/2017

—

—

153

69

0.0
%
Nearly Natural, Inc. (39,394 Class AA units)

—

—
^(z)
8/27/2021

—

—

39

5

0.0
%

192

74

0.0
%
Total Non-Controlled/Non-Affiliate Equity Securities





19,535

18,581

7.4
%
Total Non-Controlled/Non-Affiliate Company Investments





$
446,051

$
430,287

172.5
%

Table of Contents

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

December 31, 2021

(in thousands, except for shares and units)

Spread
















Above

Acquisition

% of

Portfolio Company ^(a)

Index ^(b)

Interest Rate

Date ^(c)

Maturity

Principal

Amortized Cost

Fair Value ^(d)

Net Assets ^(e)

Non-Controlled Affiliate Company Investments ^(ad)

Senior Secured Loans

Beverage, Food & Tobacco

TJ Management HoldCo LLC (Revolver) ^(f)

L+5.50
%
6.50
^%
9/9/2020

6/28/2024

477

$
—

$
—

0.0
%

477

—

—

0.0
%
FIRE Real Estate

American Community Homes, Inc.

L+10.00
%
11.50% PIK

7/22/2014

3/31/2022

10,457

10,457

10,457

4.2
%
American Community Homes, Inc.

L+14.50
%
16.00% PIK

7/22/2014

3/31/2022

4,753

4,753

4,753

1.9
%
American Community Homes, Inc.

L+10.00
%
11.50% PIK

5/24/2017

3/31/2022

634

634

634

0.3
%
American Community Homes, Inc.

L+10.00
%
11.50% PIK

8/10/2018

3/31/2022

2,331

2,331

3,164

1.3
%
American Community Homes, Inc.

L+10.00
%
11.50% PIK

3/29/2019

3/31/2022

4,315

4,315

4,357

1.8
%
American Community Homes, Inc.

L+10.00
%
11.50% PIK

9/30/2019

3/31/2022

20

20

20

0.0
%
American Community Homes, Inc.

L+10.00
%
11.50% PIK

12/30/2019

3/31/2022

99

99

99

0.0
%
HFZ Capital Group LLC ^{(h) (ae)}

L+12.50
%
14.00% PIK

10/20/2017

n/a
^(p)
13,242

13,242

15,084

6.0
%
HFZ Capital Group LLC ^{(h) (ae)}

L+12.50
%
14.00% PIK

10/20/2017

n/a
^(p)
4,758

4,758

5,420

2.2
%
MC Asset Management (Corporate), LLC ^(h)

L+15.00
%
16.00% PIK

1/26/2021

1/26/2024

7,154

7,154

7,154

2.9
%
MC Asset Management (Corporate), LLC (Delayed Draw) ^{(f) (g) (h)}

L+15.00
%
16.00% PIK

4/26/2021

1/26/2024

1,643

850

850

0.3
%
Second Avenue SFR Holdings II LLC (Revolver) ^{(f) (h)}

L+7.00
%
7.50
^%
8/11/2021

8/9/2024

4,875

2,104

2,104

0.8
%

54,281

50,717

54,096

21.7
%
Healthcare & Pharmaceuticals

Ascent Midco, LLC ^(k)

L+5.50
%
6.50
^%
2/5/2020

2/5/2025

6,392

6,308

6,392

2.6
%
Ascent Midco, LLC (Revolver) ^(f)

L+5.50
%
6.50
^%
2/5/2020

2/5/2025

1,129

—

—

0.0
%

7,521

6,308

6,392

2.6
%
High Tech Industries

Mnine Holdings, Inc.

L+8.00
%
4.00% Cash/
5.00% PIK

11/2/2018

12/30/2022

5,193

5,165

5,771

2.3
%

5,193

5,165

5,771

2.3
%
Services: Business

Curion Holdings, LLC ^(ag)

n/a

14.00% PIK
^(m)
5/2/2017

8/31/2022

4,533

4,497

4,561

1.8
%
Curion Holdings, LLC (Revolver) ^(f)

n/a

14.00% PIK
^(m)
5/2/2017

8/31/2022

871

528

550

0.2
%

5,404

5,025

5,111

2.0
%
Services: Consumer

NECB Collections, LLC (Revolver) ^(f)

L+11.00
%
12.00% PIK
^(m)
6/25/2019

n/a
^(p)
1,356

1,312

632

0.3
%

1,356

1,312

632

0.3
%
Total Non-Controlled Affiliate Senior Secured Loans

74,232

68,527

72,002

28.9
%

Junior Secured Loans

FIRE: Real Estate

Second Avenue SFR Holdings II LLC ^(h)

n/a

8.00
^%
8/6/2021

7/28/2028

5,850

5,850

5,850

2.3
%

5,850

5,850

5,850

2.3
%
Services: Business

Curion Holdings, LLC ^(k)

n/a

15.00% PIK
^(m)
8/17/2018

1/2/2023

1,720

1

—

0.0
%
Curion Holdings, LLC ^(k)

n/a

15.00% PIK
^(m)
8/17/2018

1/2/2023

44

—

—

0.0
%

1,764

1

—

0.0
%
Total Non-Controlled Affiliate Company Junior Secured Loans

7,614

5,851

5,850

2.3
%

Equity Securities ^{(y) (ad)}

Beverage, Food & Tobacco

TJ Management HoldCo LLC (16 shares of common stock) ^{(l) (aa)}

—

—
^(z)
9/9/2020

—

—

1,631

3,148

1.3
%

1,631

3,148

1.3
%
FIRE: Real Estate

American Community Homes, Inc. (warrant to purchase up to 22.3% of the equity)

—

—
^(z)
10/9/2014

12/18/2024

—

—

264

0.1
%
MC Asset Management (Corporate), LLC (15.9% of interests) ^{(h) (aa) (ae)}

—

—
^(z)
6/11/2019

—

—

793

644

0.2
%
Second Avenue SFR Holdings II LLC (24.4% of interests) ^(h)

—

—
^(z)
8/6/2021

—

—

3,900

3,900

1.6
%

4,693

4,808

1.9
%

Table of Contents

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

December 31, 2021

(in thousands, except for shares and units)

Spread














Above

Acquisition

% of

Portfolio Company ^(a)

Index ^(b)

Interest Rate

Date ^(c)

Maturity

Principal

Amortized Cost

Fair Value ^(d)

Net Assets ^(e)

Healthcare & Pharmaceuticals

Ascent Midco, LLC (2,032,258 Class A units) ^(aa)

n/a

8.00% PIK

2/5/2020

—

—

$
2,032

$
2,554

1.0
%
Familia Dental Group Holdings, LLC (1,105 Class A units) ^{(aa) (ah)}

—

—
^(z)
4/8/2016

—

—

3,785

1,919

0.8
%

5,817

4,473

1.8
%
High Tech Industries

Mnine Holdings, Inc. (6,400 Class B units)

—

—
^(z)
6/30/2020

—

—

—

—

0.0
%

—

—

0.0
%
Services: Business

Curion Holdings, LLC (58,779 shares of common stock) ^(k)

—

—
^(z)
8/17/2018

—

—

—

—

0.0
%

—

—

0.0
%
Services: Consumer

NECB Collections, LLC (20.8% of units) ^(aa)

—

—
^(z)
6/21/2019

—

—

1,458

—

0.0
%

1,458

—

0.0
%
Total Non-Controlled Affiliate Equity Securities

13,599

12,429

5.0
%
Total Non-Controlled Affiliate Company Investments

$
87,977

$
90,281

36.2
%

Controlled Affiliate Company Investments ^(ai)

Equity Securities

Investment Funds & Vehicles

MRCC Senior Loan Fund I, LLC (50.0% of the equity interests) ^(h)

—

—

10/31/2017

—

—

$
42,150

$
41,125

16.5
%
Total Controlled Affiliate Equity Securities





42,150

41,125

16.5
%
Total Controlled Affiliate Company Investments





$
42,150

$
41,125

16.5
%

TOTAL INVESTMENTS





$
576,178

$
561,693

225.2
%

Table of Contents

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

December 31, 2021

(in thousands, except for shares and units)

Derivative Instruments

Foreign currency forward contracts

Notional







Amount

Notional Amount

Settlement

Unrealized Gain
Description

to be Purchased

to be Sold

Counterparty

Date

(Loss)
Foreign currency forward contract

$
101

£
82

Bannockburn Global Forex, LLC

1/3/2022

$
(10)
Foreign currency forward contract

$
97

£
79

Bannockburn Global Forex, LLC

4/4/2022

(10)
Foreign currency forward contract

$
36

£
29

Bannockburn Global Forex, LLC

5/6/2022

(3)
Foreign currency forward contract

$
121

AUD
156

Bannockburn Global Forex, LLC

1/19/2022

8
Foreign currency forward contract

$
105

AUD
136

Bannockburn Global Forex, LLC

2/16/2022

7
Foreign currency forward contract

$
102

AUD
132

Bannockburn Global Forex, LLC

3/16/2022

6
Foreign currency forward contract

$
113

AUD
146

Bannockburn Global Forex, LLC

4/19/2022

7
Foreign currency forward contract

$
107

AUD
138

Bannockburn Global Forex, LLC

5/17/2022

7
Foreign currency forward contract

$
119

AUD
153

Bannockburn Global Forex, LLC

6/17/2022

7
Foreign currency forward contract

$
107

AUD
138

Bannockburn Global Forex, LLC

7/18/2022

7
Foreign currency forward contract

$
108

AUD
140

Bannockburn Global Forex, LLC

8/16/2022

7
Foreign currency forward contract

$
118

AUD
153

Bannockburn Global Forex, LLC

9/16/2022

7
Foreign currency forward contract

$
117

AUD
152

Bannockburn Global Forex, LLC

10/19/2022

7
Foreign currency forward contract

$
105

AUD
136

Bannockburn Global Forex, LLC

11/16/2022

6
Foreign currency forward contract

$
109

AUD
142

Bannockburn Global Forex, LLC

12/16/2022

7
Foreign currency forward contract

$
118

AUD
153

Bannockburn Global Forex, LLC

1/18/2023

7
Foreign currency forward contract

$
108

AUD
140

Bannockburn Global Forex, LLC

2/16/2023

6
Foreign currency forward contract

$
102

AUD
132

Bannockburn Global Forex, LLC

3/16/2023

6
Foreign currency forward contract

$
123

AUD
160

Bannockburn Global Forex, LLC

4/20/2023

7
Foreign currency forward contract

$
93

AUD
121

Bannockburn Global Forex, LLC

5/16/2023

5
Foreign currency forward contract

$
121

AUD
156

Bannockburn Global Forex, LLC

6/19/2023

7
Foreign currency forward contract

$
107

AUD
138

Bannockburn Global Forex, LLC

7/18/2023

6
Foreign currency forward contract

$
113

AUD
146

Bannockburn Global Forex, LLC

8/16/2023

6
Foreign currency forward contract

$
113

AUD
146

Bannockburn Global Forex, LLC

9/18/2023

6
Foreign currency forward contract

$
114

AUD
148

Bannockburn Global Forex, LLC

10/18/2023

6
Foreign currency forward contract

$
107

AUD
140

Bannockburn Global Forex, LLC

11/16/2023

6
Foreign currency forward contract

$
109

AUD
142

Bannockburn Global Forex, LLC

12/18/2023

6
Foreign currency forward contract

$
115

AUD
150

Bannockburn Global Forex, LLC

1/17/2024

6
Foreign currency forward contract

$
110

AUD
143

Bannockburn Global Forex, LLC

2/16/2024

6
Foreign currency forward contract

$
11,827

AUD
15,410

Bannockburn Global Forex, LLC

3/18/2024

635

$
781
^(a)
17
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”), Prime Rate (“Prime” or “P”), Sterling Overnight Index Average (“SONIA” or “SN”) 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 SOFR and the current contractual interest rate in effect at December 31, 2021. Certain investments are subject to a LIBOR, Prime, or SOFR interest rate floor, or rate cap. Certain investments contain a Payment-in-Kind (“PIK”) provision.
^(c)
Except as otherwise noted, all of the Company’s portfolio company investments, which as of December 31, 2021 represented 225.2% of the Company’s net assets or 95.1% of the Company’s total assets, are subject to legal restrictions on sales.
^(d)
Except as otherwise noted, 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 $249,471 as of December 31, 2021.
^(f)
All or a portion of this commitment was unfunded at December 31, 2021. As such, interest is earned only on the funded portion of this commitment.

Table of Contents

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

December 31, 2021

(in thousands, except for shares and units)

^(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 December 31, 2021, non-qualifying assets totaled 22.5% of the Company’s total assets.

⁽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 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 December 31, 2021.

^(m)	This position was on non-accrual status as of December 31, 2021, 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⁾	This investment represents a note convertible to preferred shares of the borrower.

^(o)

In 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. This investment is a non-income producing security.

^(p)	This is a demand note with no stated maturity.

^(q)

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 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.

^(r)	A portion of this loan (principal of $54) 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.

^(s)	A portion of this loan (principal of $4,969) 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 $421) 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)	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.

^(v)	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.

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MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

December 31, 2021

(in thousands, except for shares and units)

^(w)	This loan is denominated in Great Britain pounds and is translated into U.S. dollars as of the valuation date.

^(x)	Represents less than 5% ownership of the portfolio company’s voting securities.

^(y)	Ownership of certain equity investments may occur through a holding company or partnership.

^(z)	Represents a non-income producing security.

^(aa)

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.

^(ab)

As of December 31, 2021, the Company was party to a subscription agreement with a commitment to fund an additional equity investment of $16.

^(ac)

As of December 31, 2021, the Company was party to a subscription agreement with a commitment to fund an equity investment of $43.

^(ad)

^(ae)

The Company restructured its investment in HFZ Capital Group LLC (“HFZ”) during 2020. As part of the restructuring of HFZ, the Company obtained a 15.9% equity interest in MC Asset Management (Corporate), LLC (“Corporate”). Corporate owns 100% of the equity of MC Asset Management Industrial, LLC (“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–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.

^(af)

During the three months ended December 31, 2021, the Company sold its investment in Luxury Optical Holdings Co. The remaining fair value at December 31, 2021 represents the remaining expected escrow proceeds associated with the sale.

^(ag)

A portion of this loan (principal of $4,226) 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.

^(ah)

As of December 31, 2021, the Company was party to a subscription agreement with a commitment to fund an additional equity investment of $428.

^(ai)

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.

^(aj)

The fair value of this investment was valued using Level 1 inputs. See Note 4 in the accompanying notes to the consolidated financial statements.

n/a - not applicable

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MONROE CAPITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
(in thousands, except share and per share data)
Note 1. Organization and Principal Business
Monroe Capital Corporation ~~(“Monroe Capital” and together~~(together with its subsidiaries, the “Company”) ~~was formed in February 2011 to act as~~is an externally managed, non-diversified, closed-end management investment company and has elected to be ~~treated~~regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). The ~~Company had no substantive operating activities prior to October 24, 2012, the date of its initial public offering. Monroe Capital’s~~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. Monroe Capital~~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, ~~Monroe Capital~~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. ~~As of September 30, 2017,~~ MRCC SBIC ~~had $57,624 in leverageable capital~~received approval from the SBA to surrender its SBIC license and ~~$92,100 in SBA-guaranteed debentures outstanding.~~on March 31, 2022, MRCC SBIC was dissolved. See Note 7 for additional information.

On June 9, 2017, the Company closed a public offering of 3,000,000 shares of its common stock at a public offering price of $15.00 per share, raising approximately $45,000 in gross proceeds. On June 14, 2017, pursuant to the underwriters’ exercise of the over-allotment option, the Company sold an additional 450,000 shares of its common stock, at a public offering price of $15.00 per share, and additional $6,750 in gross proceeds for a total of $51,750. Aggregate underwriters’ discounts and commissions were $2,070 and offering costs were $127, resulting in net proceeds of approximately $49,553.
Note 2. Summary of Significant Accounting Policies
Basis of Presentation
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 orand 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.
Use of Estimates
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.
Consolidation
As permitted under ~~Regulation S-X and~~ 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, ~~MC Forest Park Lender, LLC,~~ and ~~MC Reserve Lender, LLC,~~the Company’s wholly-owned taxable subsidiaries (the “Taxable Subsidiaries”) 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

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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.

Fair Value of Financial Instruments

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 ~~to the consolidated financial statements~~ for further discussion regarding the fair value measurements and hierarchy.

Revenue Recognition

The Company’s revenue recognition policies are as follows:

Investments and related investment income:Interest and dividend income ~~are~~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. ~~All other income is recorded into income when earned.~~ The Company records ~~prepayment fees and amendment~~ 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 ~~earned.~~

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 both the three and six months ended June 30, 2022, the Company received return of capital distributions from its equity investments and its investment in LLC equity in SLF of $290 and $290, respectively. For the three and six months ended June 30, 2021, the Company received return of capital distributions from its equity investments and its investment in LLC equity in SLF of $1,117 and $1,177, 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 ~~$5,571~~$3,932 and ~~$6,192~~$4,370 as of ~~September~~June 30, ~~2017~~2022 and December 31, ~~2016,~~2021, respectively. Upfront loan origination and closing fees received for the three and ~~nine~~six months ended ~~September~~June 30, ~~2017~~2022 totaled ~~$755~~$456 and ~~$2,732,~~$745, respectively. ~~For the three and nine months ended September 30, 2016, upfront~~Upfront loan origination and closing fees received ~~totaled $694 and $2,190, respectively. For~~for the three and ~~nine~~six months ended ~~September~~June 30, ~~2017, interest income included $532~~2021 totaled $1,038 and ~~$1,278 of accretion of loan origination fees, original issue discounts and market discounts or premiums,~~$1,503, respectively. For the three and nine months ended September 30, 2016, interest income included $383 and $1,137 of accretion of loan origination fees, original issue discounts and market discounts or premiums, respectively. Upon ~~the~~ prepayment of a loan or debt security, any unamortized premium or discount or loan origination fees are recorded as interest income. ~~For~~

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The components of the ~~three and nine months ended September 30, 2017, interest~~Company’s investment income ~~included $514 and $1,488 of unamortized discount or loan origination fees recorded~~were as interest income upon prepayment of a loan or debt security, respectively. For the three and nine months ended September 30, 2016, interest income included $227 and $836 of unamortized discount or loan origination fees recorded as interest income upon prepayment of a loan or debt security, respectively.follows:

Three months ended

June 30,

2022

2021
Interest income

$
9,026

$
8,500
PIK interest income

1,397

1,734
Dividend income ⁽¹⁾

1,048

1,149
Fee income

1,192

300
Prepayment gain (loss)

65

416
Accretion of discounts and amortization of premiums

267

265
Total investment income

$
12,995

$
12,364

The Company has certain investments in its portfolio that contain a payment-in-kind (“PIK”) interest provision, which represents contractual interest or dividends that are added to the principal balance and recorded as income. For the three and nine months ended September 30, 2017, interest income included $345 and $1,363 of PIK interest, respectively. For the three and nine months ended September 30, 2016, interest income included $600 and $1,430 of PIK interest, respectively. The Company stops accruing PIK interest when it is determined that PIK interest is no longer collectible. To maintain RIC tax treatment, and to avoid corporate 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.

Six months ended

June 30,

2022

2021
Interest income

$
18,111

$
17,461
PIK interest income


3,218


3,413
Dividend income ⁽²⁾

2,057

2,411
Fee income

1,192

777
Prepayment gain (loss)

263

898
Accretion of discounts and amortization of premiums

645

617
Total investment income

$
25,486

$
25,577
(1) Includes PIK dividends of $118 and $72, respectively.
(2) Includes PIK dividends of $226 and $134, respectively.
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 ~~and~~or losses previously recognized. Realized gains and losses are recorded within net realized gain (loss) on investments inon 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 inon 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. ~~The Company generally reverses accrued interest when a loan is placed on non-accrual status.~~ 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 ~~$9,124~~$10,776 and ~~$10,394~~$14,693 at ~~September~~June 30, ~~2017~~2022 and December 31, ~~2016,~~2021, respectively.
~~Partial loan sales:~~ ~~The Company follows the guidance in ASC Topic 860 —~~ ~~Transfers and Servicing~~ (“ASC Topic 860”), when accounting for loan participations and other partial loan sales. Such guidance requires a participation or other partial loan sale to meet the definition of a “participating interest,” as defined in the guidance, in order for sale treatment to be allowed. Participations or other partial loan sales which do not meet the definition of a participating interest remain on the Company’s consolidated statements of assets and liabilities and the proceeds are recorded as a secured borrowing until the definition is met. For these partial loan sales, the interest earned on the entire loan balance is recorded within “interest income” and the interest earned by the buyer in the partial loan sale is recorded within “interest and other debt financing expenses” in the accompanying consolidated statements of operations. Changes in the fair value of secured borrowings from the prior period, as determined by the Board through the application of the Company’s valuation policy, are included as changes in unrealized gain (loss) on secured borrowings in the consolidated statements of operations. See Note 7 “~~Secured Borrowings~~~~” for additional information.~~
19
Distributions
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, although the Company may decide to retain such capital gains for investment.~~
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

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attributes for distributions will generally include both ordinary income and capital gains, but may also include qualified dividends or return of capital.

~~The~~In October 2012, the Company ~~has~~ 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. ~~As a result, if~~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 ~~8 regarding distributions for additional information.~~

~~Earnings per Share~~

~~In accordance with the provisions of ASC Topic 260 —~~~~Earnings per Share~~ (“ASC Topic 260”), basic earnings per share is computed by dividing earnings available to common stockholders by the weighted average number of shares outstanding during the period. The weighted average shares outstanding utilized in the calculation of earnings per share take into account share issues on the issuance date and the Company’s repurchases of its common stock on the repurchase date. See Note 9 for additional information on the Company’s ~~share activity. For the periods presented in these consolidated financial statements, there were no potentially dilutive common shares issued.~~

distributions.

Segments

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

Cash

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

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.

Unamortized Deferred Financing Costs

Deferred financing costs represent fees and other direct incremental costs incurred in connection with the Company’s borrowings. As of ~~September~~June 30, ~~2017~~2022 and December 31, ~~2016,~~2021, the Company had unamortized deferred financing costs of ~~$4,524~~$3,743 and ~~$3,945,~~$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 ~~expense in~~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 and ~~nine~~six months ended ~~September~~June 30, ~~2017~~2022 was ~~$274~~$490 and ~~$760,~~$1,091, respectively. Amortization of deferred financing costs for the three and ~~nine~~six months ended ~~September~~June 30, ~~2016~~2021 was ~~$222~~$537 and ~~$603,~~$1,138, respectively.

Offering Costs

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 ~~equity offerings~~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 ~~September~~June 30, ~~2017~~2022 and December 31, ~~2016,~~2021, other assets on the consolidated statements of assets and liabilities included ~~$308~~$182 and ~~$281, respectively,~~$123 of deferred offering costs, respectively, which will be charged against the proceeds from future debt or equity offerings when ~~received.~~

completed.

Investments Denominated in Foreign Currency

As of ~~September~~June 30, ~~2017,~~2022, the Company held ~~an investment~~investments in one portfolio company that was denominated in Australian dollars. As of December 31, 2021, the Company held investments in one portfolio company that was denominated in Great Britain ~~pounds.~~pounds and one portfolio company that was denominated in Australian dollars.

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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 ~~that~~the portion of the change in fair ~~values~~value resulting from foreign currency exchange rates fluctuations from the change in fair ~~values~~value of the underlying investment. All fluctuations in fair value are included in net change in unrealized gain (loss) ofon investments inon 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.

Derivative Instruments

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.

Income Taxes

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 ~~will~~is also be 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, ~~if any,~~ calculated as 4% of the estimated excess taxable income, if any, as taxable income is earned. For the three and ~~nine~~six months ended ~~September~~June 30, ~~2017,~~2022, the Company recorded a net expense on the consolidated statements of operations of $100 and ~~$100,~~$119, respectively, for U.S. federal excise tax. For the three and six months ended June 30, 2021, the Company recorded a net expense on the consolidated statements of operations of $153 and $183, respectively, for U.S. federal excise tax. As of June 30, 2022 and December 31, 2021, the Company had a payable of $26 and $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 and six months ended June 30, 2022, the Company recorded a net tax expense of $302 on the consolidated statements of operations for ~~U.S. federal excise taxes.~~these subsidiaries. For the three and ~~nine~~six months ended ~~September~~June 30, ~~2016, $342 and $429, respectively, were recorded~~2021, the Company did not record a net tax expense on the consolidated statements of operations for ~~U.S. federal excise taxes.~~these subsidiaries. As of both June 30, 2022 and December 31, 2021, no payables for corporate-level income taxes were accrued.

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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. ~~There were no~~The Company did not take any material uncertain income tax positions through ~~September~~June 30, ~~2017.~~2022. The ~~2013~~2018 through ~~2016~~2021 tax years remain subject to examination by U.S. federal and state tax authorities.

Subsequent Events

The Company has evaluated the need for disclosures and/or adjustments resulting from subsequent events through the date the consolidated financial statements were ~~issued and such disclosure is included in Note 12. Other than what was disclosed in Note 12, there~~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 ~~nine~~six months ended ~~September~~June 30, ~~2017.~~

2022.

Recent Accounting Pronouncements

In ~~May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09,~~~~Revenue from Contracts with Customers~~ (ASC Topic 606) (“ASU 2014-09”). The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: Step 1: Identify the contract(s) with a customer. Step 2: Identify the performance obligations in the contract. Step 3: Determine the transaction price. Step 4: Allocate the transaction price to the performance obligations in the contract. Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation.

ASU 2014-09 also specified the accounting for some costs to obtain or fulfill a contract with a customer. In addition, ASU 2014-09 requires that an entity disclose sufficient information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The initial effective date of ASU 2014-09 was for fiscal periods beginning after December 15, 2016. However, in August 2015,March 2020, the FASB issued ASU ~~2015-14,~~2020-04, ~~Revenue from Contracts with Customers (ASC Topic 606): Deferral of the Effective Date~~Reference Rate Reform ~~, which deferred the effective date~~(“ASU 2020-04”). The amendments in ASU 2020-04 provide optional expedients and exceptions for applying GAAP to ~~fiscal periods beginning after December 15, 2017. Management is currently evaluating the impact these changes will have on the Company’s consolidated financial statements~~contracts, hedging relationships, and ~~disclosures.~~

~~In January 2016, the FASB issued ASU 2016-01,~~~~Financial Instruments — Overall~~ ~~(Subtopic 825-10):~~~~Recognition and Measurement of Financial Assets and Financial Liabilities~~ (“ASU 2016-01”). ASU 2016-01 retains many current requirements for the classification and measurement of financial instruments; however, it significantly revises an entity’s accounting related to (1) the classification and measurement of investments in equity securities and (2) the presentation ofother transactions affected by reference rate reform if certain ~~fair value changes for financial liabilities measured at fair value. ASU 2016-01 also amends certain disclosure requirements associated with the fair value of financial instruments. This guidance~~criteria are met. The standard is effective ~~for annual and interim periods beginning after~~as of March 12, 2020 through December 15, 2017, and early adoption is not permitted for public business entities. Management is currently evaluating the impact these changes will have on the Company’s consolidated financial statements and disclosures.

In October 2016, the U.S. Securities and Exchange Commission (“SEC”) adopted new rules and amended rules (together “final rules”) intended to modernize the reporting and disclosures of information by registered investment companies. In part, the final rules amend Regulation S-X and require standardized, enhanced disclosure about derivatives in investment company financial statements, as well as other amendments. The compliance date for the amendments to Regulation S-X was August 1, 2017.31, 2022. The Company ~~has adopted~~did not utilize the ~~final rules, as applicable,~~optional expedients and ~~the revised presentation is reflected in the Company’s consolidated financial statements for the periods presented.~~

~~In November 2016, the FASB issued~~exceptions provided by ASU ~~2016-18,~~~~Statement of Cash Flows (Topic 230): Restricted Cash~~ ~~(“ASU 2016-18”). ASU 2016-18 requires that the statements of cash flows explain the change~~2020-04 during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statements of cash flows. The new guidance is effective for annual and interim periods, beginning after December 15, 2017, and early adoption is permitted and is to be applied on a retrospective basis. The Company has adopted ASU 2016-18 and the revised presentation is reflected in the Company’s consolidated financial statements for the periods presented.six months ended June 30, 2022.

Note 3. Investments
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):

June 30, 2022

December 31, 2021

Amortized Cost:

Senior secured loans

$
412,195

72.7
%
$
415,600

72.1
%
Unitranche secured loans

58,752

10.4

70,977

12.3

Junior secured loans

20,020

3.5

14,317

2.5

LLC equity interest in SLF

42,650

7.5

42,150

7.3

Equity securities

33,512

5.9

33,134

5.8

Total

$
567,129

100.0
%
$
576,178

100.0
%

September 30, 2017 December 31, 2016
Amortized Cost:

June 30, 2022

December 31, 2021

Fair Value:











Senior secured loans $ 338,448 76.9 % $ 280,324 67.8 %

$
415,244

77.5
%
$
423,700

75.4
%
Unitranche loans 44,776 10.2 57,361 13.9
Unitranche secured loans

34,114

6.3

51,494

9.2

Junior secured loans 40,402 9.2 61,674 14.9

19,745

3.7

14,364

2.6

LLC equity interest in SLF

37,551

7.0

41,125

7.3

Equity securities 16,296 3.7 13,883 3.4

29,385

5.5

31,010

5.5

Total $ 439,922 100.0 % $ 413,242 100.0 %

$
536,039

100.0
%
$
561,693

100.0
%

September 30, 2017 December 31, 2016
Fair Value:
Senior secured loans $ 327,984 76.1 % $ 275,253 66.7 %
Unitranche loans 44,592 10.4 51,638 12.5
Junior secured loans 38,555 8.9 59,366 14.4
Equity securities 19,966 4.6 26,663 6.4
Total $ 431,097 100.0 % $ 412,920 100.0 %

Table of Contents

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:

	September 30, 2017				December 31, 2016

									June 30, 2022				December 31, 2021
Amortized Cost:
International	$	4,809	1.1	%	$	6,667	1.6	%	$	11,860	2.1	%	$	11,860	2.0	%
Midwest		61,311	14.0			59,710	14.5			144,765	25.5			145,023	25.2
Northeast		123,686	28.1			105,482	25.5			92,162	16.3			107,828	18.7
South		—	—			2,425	0.6
Southeast		69,641	15.8			60,719	14.7			168,095	29.6			164,100	28.5
Southwest		50,681	11.5			50,562	12.2			33,881	6.0			40,121	7.0
West		129,794	29.5			127,677	30.9			116,366	20.5			107,246	18.6
Total	$	439,922	100.0	%	$	413,242	100.0	%	$	567,129	100.0	%	$	576,178	100.0	%

June 30, 2022

December 31, 2021

Fair Value:











International

$
10,543

2.0
%
$
11,093

2.0
%
Midwest

136,302

25.4

143,435

25.5

Northeast

97,781

18.2

112,175

20.0

Southeast

163,347

30.5

159,807

28.4

Southwest

35,324

6.6

44,380

7.9

West

92,742

17.3

90,803

16.2

Total

$
536,039

100.0
%
$
561,693

100.0
%

22
42

Table of Contents

September 30, 2017 December 31, 2016
Fair Value:
International $ 5,023 1.2 % $ 6,636 1.6 %
Midwest 60,373 14.0 60,579 14.7
Northeast 124,326 28.8 108,188 26.2
South — — 2,445 0.6
Southeast 70,959 16.5 61,128 14.8
Southwest 44,416 10.3 54,263 13.1
West 126,000 29.2 119,681 29.0
Total $ 431,097 100.0 % $ 412,920 100.0 %

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):

June 30, 2022

December 31, 2021

Amortized Cost:

Aerospace & Defense

$
7,805

1.4
%
$
7,828

1.4
%
Automotive

19,823

3.5

21,162

3.7

Banking

13,751

2.4

5,416

1.0

Beverage, Food & Tobacco

17,295

3.0

21,036

3.7

Capital Equipment

13,700

2.4

12,656

2.2

Chemicals, Plastics & Rubber

3,428

0.6

9,426

1.6

Construction & Building

17,089

3.0

16,450

2.9

Consumer Goods: Durable

9,461

1.7

9,536

1.7

Consumer Goods: Non-Durable

28,276

5.0

28,232

4.9

Environmental Industries

6,186

1.1

17,103

3.0

FIRE: Finance

16,578

2.9

16,264

2.8

FIRE: Real Estate

77,517

13.7

72,826

12.6

Healthcare & Pharmaceuticals

60,242

10.6

52,743

9.2

High Tech Industries

46,597

8.2

52,710

9.1

Hotels, Gaming & Leisure

2,668

0.5

2,662

0.5

Investment Funds & Vehicles

42,650

7.5

42,150

7.3

Media: Advertising, Printing & Publishing

12,941

2.3

13,421

2.3

Media: Broadcasting & Subscription

2,601

0.5

2,472

0.4

Media: Diversified & Production

27,437

4.8

23,853

4.1

Retail

10,171

1.8

10,954

1.9

Services: Business

55,045

9.7

69,292

12.0

Services: Consumer

50,829

9.0

46,284

8.0

Telecommunications

9,041

1.6

5,892

1.0

Wholesale

15,998

2.8

15,810

2.7

Total

$
567,129

100.0
%
$
576,178

100.0
%

September 30, 2017 December 31, 2016
Amortized Cost:
Aerospace & Defense $ 4,940 1.1 % $ 9,524 2.3 %
Automotive — — 12,496 3.0
Banking, Finance, Insurance & Real Estate 46,126 10.5 34,912 8.4
Beverage, Food & Tobacco 17,931 4.1 18,068 4.4
Chemicals, Plastics & Rubber 8,729 2.0 3,949 1.0
Construction & Building 17,777 4.0 18,282 4.4
Consumer Goods: Durable 11,762 2.7 3,600 0.9
Consumer Goods: Non-Durable 24,888 5.7 35,567 8.6
Containers, Packaging & Glass 5,052 1.2 3,582 0.9
Energy: Oil & Gas 2,376 0.5 7,819 1.9
Environmental Industries 3,541 0.8 3,675 0.9
Healthcare & Pharmaceuticals 57,126 13.0 41,584 10.1
High Tech Industries 36,606 8.3 19,746 4.8
Hotels, Gaming & Leisure 41,692 9.5 37,860 9.2
Media: Advertising, Printing & Publishing 12,771 2.9 11,781 2.8
Media: Broadcasting & Subscription 16,174 3.7 17,527 4.2
Media: Diversified & Production 4,945 1.1 4,938 1.2
Metals & Mining — — 5,219 1.3
Retail 56,650 12.9 48,488 11.7
Services: Business 26,983 6.1 38,806 9.4
Services: Consumer 20,954 4.8 24,608 5.9
Telecommunications 3,268 0.7 3,431 0.8
Utilities: Electric 2,758 0.6 2,964 0.7
Wholesale 16,873 3.8 4,816 1.2
Total $ 439,922 100.0 % $ 413,242 100.0 %

September 30, 2017 December 31, 2016
Fair Value:
Aerospace & Defense $ 5,028 1.2 % $ 10,601 2.6 %
Automotive — — 7,514 1.8
Banking, Finance, Insurance & Real Estate 46,912 10.9 37,130 9.0
Beverage, Food & Tobacco 17,788 4.1 16,794 4.1
Chemicals, Plastics & Rubber 8,864 2.1 4,040 1.0
Construction & Building 17,933 4.2 18,602 4.5
Consumer Goods: Durable 11,952 2.8 3,620 0.9
Consumer Goods: Non-Durable 19,462 4.5 32,000 7.7
Containers, Packaging & Glass 4,919 1.1 3,663 0.9
Energy: Oil & Gas 2,346 0.5 7,803 1.9
Environmental Industries 3,644 0.8 3,768 0.9
Healthcare & Pharmaceuticals 66,275 15.4 56,435 13.7
High Tech Industries 36,085 8.4 18,899 4.6
Hotels, Gaming & Leisure 42,738 9.9 38,010 9.2
Media: Advertising, Printing & Publishing 13,356 3.1 11,742 2.8
Media: Broadcasting & Subscription 16,466 3.8 18,046 4.4
Media: Diversified & Production 5,006 1.2 4,938 1.2
Metals & Mining — — 5,268 1.3
Retail 40,740 9.5 38,147 9.2
Services: Business 27,264 6.3 40,164 9.7
Services: Consumer 21,170 4.9 24,807 6.0
Telecommunications 3,333 0.8 3,430 0.8
Utilities: Electric 2,801 0.6 2,999 0.7
Wholesale 17,015 3.9 4,500 1.1
Total $ 431,097 100.0 % $ 412,920 100.0 %

Table of Contents

June 30, 2022

December 31, 2021

Fair Value:

Aerospace & Defense

$
7,873

1.5
%
$
7,972

1.4
%
Automotive

20,074

3.8

21,556

3.8

Banking

15,230

2.8

6,712

1.2

Beverage, Food & Tobacco

13,997

2.6

19,133

3.4

Capital Equipment

13,914

2.6

12,839

2.3

Chemicals, Plastics & Rubber

4,530

0.8

10,163

1.8

Construction & Building

17,288

3.2

16,636

3.0

Consumer Goods: Durable

9,592

1.8

9,734

1.7

Consumer Goods: Non-Durable

3,531

0.7

8,460

1.5

Environmental Industries

6,328

1.2

17,693

3.2

FIRE: Finance

15,554

2.9

15,681

2.8

FIRE: Real Estate

78,839

14.7

76,698

13.6

Healthcare & Pharmaceuticals

60,218

11.2

53,179

9.5

High Tech Industries

47,628

8.9

54,085

9.6

Hotels, Gaming & Leisure

2,658

0.5

2,706

0.5

Investment Funds & Vehicles

37,551

7.0

41,125

7.3

Media: Advertising, Printing & Publishing

15,401

2.9

16,794

3.0

Media: Broadcasting & Subscription

2,594

0.5

2,477

0.5

Media: Diversified & Production

27,577

5.1

24,220

4.3

Retail

10,721

2.0

11,478

2.0

Services: Business

57,439

10.7

71,540

12.7

Services: Consumer

43,524

8.1

39,248

7.0

Telecommunications

9,143

1.7

5,988

1.1

Wholesale

14,835

2.8

15,576

2.8

Total

$
536,039

100.0
%
$
561,693

100.0
%

MRCC Senior Loan Fund I, LLC
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 June 30, 2022 and December 31, 2021, the Company and LSW each owned 50.0% of the LLC equity interests of SLF. As of both June 30, 2022 and December 31, 2021, SLF had $100,000 in equity commitments from its members (in the aggregate), of which $85,300 and $84,300 was funded, respectively.
As of both June 30, 2022 and December 31, 2021, the Company had committed to fund $50,000 of LLC equity interest subscriptions to SLF. As of June 30, 2022 and December 31, 2021, $42,650 and $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, respectively.
For the three and six months ended June 30, 2022, the Company received $900 and $1,800 of dividend income from its LLC equity interest in SLF, respectively. For the three and six months ended June 30, 2021, the Company received $1,075 and $2,275 of dividend income from its LLC equity interest in SLF, respectively.

Table of Contents

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”). The SLF Credit Facility allows SLF SPV to borrow up to $175,000, subject to leverage and borrowing base restrictions. Borrowings on the SLF Credit Facility bear interest at an annual rate of LIBOR (three-month) plus 2.10%.

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 and six months ended June 30, 2022, SLF incurred $59 and $110 of allocable expenses, respectively. For the three and six months ended June 30, 2021, SLF incurred $50 and $108 of allocable expenses, respectively. There are no agreements or understandings by which the Company guarantees any SLF obligations.

As of June 30, 2022 and December 31, 2021, SLF had total assets at fair value of $203,555 and $194,623, respectively. As of June 30, 2022, SLF had two portfolio company investments on non-accrual status with a fair value of $2,612. As of December 31, 2021, SLF had one portfolio company investment on non-accrual status with a fair value of $1,072. The portfolio companies in SLF are in industries and geographies similar to those in which the Company may invest directly. Additionally, as of June 30, 2022 and December 31, 2021, SLF had $4,960 and $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 June 30, 2022 and December 31, 2021:

As of

June 30, 2022

December 31, 2021

Senior secured loans ⁽¹⁾

207,803

193,062

Weighted average current interest rate on senior secured loans ⁽²⁾

7.1
%
5.9
%
Number of portfolio company investments in SLF

62

57

Largest portfolio company investment ⁽¹⁾

6,685

6,720

Total of five largest portfolio company investments ⁽¹⁾

26,996

27,074

(1) 23 Represents outstanding principal amount, excluding unfunded commitments.
(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.

Table of Contents

MRCC SENIOR LOAN FUND I, LLC

CONSOLIDATED SCHEDULE OF INVESTMENTS

(unaudited)

June 30, 2022

Spread Above

Portfolio Company ^(a)

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+5.25
%
10.00
%
11/5/2025

2,744

$
2,597
Bromford Industries Limited ^(c)

P+5.25
%
10.00
%
11/5/2025

1,829

1,731
Trident Maritime Systems, Inc.

L+4.75
%
7.00
%
2/26/2027

2,460

2,453
Trident Maritime Systems, Inc.

L+4.75
%
7.00
%
2/26/2027

746

744
Trident Maritime Systems, Inc. (Revolver) ^(d)

L+4.75
%
6.35
%
2/26/2027

319

258

8,098

7,783
Automotive

Accelerate Auto Works Intermediate, LLC

L+4.75
%
6.35
%
12/1/2027

1,418

1,416
Accelerate Auto Works Intermediate, LLC (Delayed Draw) ^(d)

L+4.75
%
6.35
%
12/1/2027

388

—
Accelerate Auto Works Intermediate, LLC (Revolver) ^(d)

L+4.75
%
6.35
%
12/1/2027

132

—
Truck-Lite Co., LLC

SF+6.25
%
8.93
%
12/14/2026

1,700

1,701
Truck-Lite Co., LLC

SF+6.25
%
8.93
%
12/14/2026

252

252
Wheel Pros, Inc.

L+4.50
%
6.10
%
5/11/2028

1,942

1,617

5,832

4,986
Beverage, Food & Tobacco

CBC Restaurant Corp.

n/a

5.00% PIK
^(e)
12/30/2022

1,099

919
SW Ingredients Holdings, LLC

L+4.75
%
6.42
%
7/3/2025

3,600

3,591

4,699

4,510
Capital Equipment

Analogic Corporation

L+5.25
%
6.49
%
6/24/2024

4,727

4,544
DS Parent, Inc.

L+5.75
%
8.00
%
12/8/2028

2,925

2,813
MacQueen Equipment, LLC

L+5.25
%
7.50
%
1/7/2028

2,107

2,107
MacQueen Equipment, LLC (Delayed Draw) ^(d)

L+5.25
%
7.50
%
1/7/2028

592

—
MacQueen Equipment, LLC (Revolver) ^(d)

L+5.25
%
6.44
%
1/7/2028

296

99

10,647

9,563
Chemicals, Plastics & Rubber

Phoenix Chemical Holding Company LLC (fka Polymer Solutions Group)

L+7.00
%
8.67
%
1/3/2023

1,158

1,149
TJC Spartech Acquisition Corp.

L+4.75
%
5.87
%
5/5/2028

4,275

4,168

5,433

5,317
Construction & Building

The Cook & Boardman Group LLC

SF+5.75
%
6.97
%
10/20/2025

2,894

2,779

2,894

2,779
Consumer Goods: Durable

International Textile Group, Inc.

L+5.00
%
5.97
%
5/1/2024

1,688

1,375
Runner Buyer INC.

L+5.50
%
7.07
%
10/23/2028

2,993

2,342

4,681

3,717
Consumer Goods: Non-Durable

PH Beauty Holdings III, INC.

L+5.00
%
6.57
%
9/26/2025

2,405

2,189

2,405

2,189
Containers, Packaging & Glass

Liqui-Box Holdings, Inc.

L+4.50
%
6.07
%
2/26/2027

4,247

3,912
Polychem Acquisition, LLC

L+5.00
%
6.50
%
3/17/2025

2,903

2,898
Port Townsend Holdings Company, Inc. and Crown Corrugated Company

SF+8.75
%
8.38% Cash/
2.00% PIK
^(e)
4/3/2024

4,916

1,693
PVHC Holding Corp

L+4.75
%
7.00
%
8/5/2024

3,200

3,088

15,266

11,591
Energy: Oil & Gas

Drilling Info Holdings, Inc.

L+4.25
%
5.92
%
7/30/2025

4,493

4,407
Offen, Inc.

L+5.00
%
7.88
%
6/22/2026

2,249

2,249
Offen, Inc.

L+5.00
%
7.88
%
6/22/2026

872

872

7,614

7,528
FIRE: Finance

Harbour Benefit Holdings, Inc.

L+5.25
%
7.50
%
12/13/2024

2,924

2,907
Harbour Benefit Holdings, Inc.

L+5.25
%
6.92
%
12/13/2024

64

64
Minotaur Acquisition, Inc.

SF+4.75
%
6.38
%
3/27/2026

4,882

4,634

7,870

7,605
FIRE: Real Estate

Avison Young (USA) Inc. ^(c)

L+5.75
%
8.00
%
1/30/2026

4,825

4,768

4,825

4,768

Table of Contents

MRCC SENIOR LOAN FUND I, LLC

CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)

(unaudited)

June 30, 2022

Spread Above

Portfolio Company ^(a)

Index ^(b)

Interest Rate ^(b)

Maturity

Principal

Fair Value
Healthcare & Pharmaceuticals

Cano Health, LLC

SF+4.00
%
5.63
%
11/23/2027

1,980

$
1,814
HAH Group Holding Company LLC

SF+5.00
%
7.21
%
10/29/2027

2,993

2,858
LSCS Holdings, Inc.

L+4.50
%
6.75
%
12/15/2028

1,837

1,754
Paragon Healthcare, Inc.

SF+5.75
%
6.75
%
1/19/2028

2,076

2,066
Paragon Healthcare, Inc. (Delayed Draw) ^(d)

SF+5.75
%
6.75
%
1/19/2028

429

61
Paragon Healthcare, Inc. (Revolver) ^(d)

SF+5.75
%
6.75
%
1/19/2028

490

—
Radiology Partners, Inc.

L+4.25
%
5.89
%
7/9/2025

4,760

4,292
TEAM Public Choices, LLC

L+5.00
%
6.67
%
12/17/2027

2,970

2,866

17,535

15,711
High Tech Industries

Corel Inc. ^(c)

L+5.00
%
6.57
%
7/2/2026

3,700

3,550
Lightbox Intermediate, L.P.

L+5.00
%
7.25
%
5/11/2026

4,850

4,729
LW Buyer, LLC

L+5.00
%
6.67
%
12/30/2024

4,850

4,777
TGG TS Acquisition Company

L+6.50
%
8.17
%
12/12/2025

3,252

3,149

16,652

16,205
Hotels, Gaming & Leisure

Excel Fitness Holdings, Inc.

SF+5.25
%
7.98
%
4/27/2029

4,375

4,309
Excel Fitness Holdings, Inc. (Revolver) ^(d)

SF+5.25
%
7.98
%
4/28/2028

625

—
North Haven Spartan US Holdco, LLC

L+5.00
%
6.67
%
6/6/2025

2,285

2,106
Tait LLC

L+5.00
%
5.97
%
3/28/2025

4,104

3,851
Tait LLC (Revolver)

P+4.00
%
8.75
%
3/28/2025

769

736

12,158

11,002
Media: Advertising, Printing & Publishing

Cadent, LLC

L+5.00
%
6.67
%
9/11/2025

4,237

4,227
Cadent, LLC (Revolver) ^(d)

L+5.00
%
6.67
%
9/11/2025

167

—

4,404

4,227
Media: Diversified & Production

Research Now Group, Inc. and Survey Sampling International, LLC

L+5.50
%
6.50
%
12/20/2024

6,685

6,197
STATS Intermediate Holdings, LLC

L+5.25
%
6.69
%
7/10/2026

4,875

4,680
TA TT Buyer, LLC

SF+5.25
%
7.30
%
3/30/2029

3,333

3,238

14,893

14,115
Services: Business

AQ Carver Buyer, Inc.

L+5.00
%
7.25
%
9/23/2025

4,863

4,717
CHA Holdings, Inc

L+4.50
%
6.75
%
4/10/2025

1,970

1,871
CHA Holdings, Inc

L+4.50
%
6.75
%
4/10/2025

415

395
Eliassen Group, LLC

SF+5.75
%
7.80
%
4/14/2028

3,259

3,241
Eliassen Group, LLC (Delayed Draw) ^(d)

SF+5.75
%
7.80
%
4/14/2028

741

—
Engage2Excel, Inc.

L+7.25
%
10.13
%
3/7/2023

4,304

4,282
Engage2Excel, Inc.

L+7.25
%
10.13
%
3/7/2023

777

773
Engage2Excel, Inc. (Revolver) ^(d)

P+6.25
%
11.00
%
3/7/2023

557

452
Orbit Purchaser LLC

L+4.50
%
7.38
%
10/21/2024

2,419

2,370
Orbit Purchaser LLC

L+4.50
%
7.38
%
10/21/2024

1,868

1,830
Orbit Purchaser LLC

L+4.50
%
7.38
%
10/21/2024

546

535
Output Services Group, Inc.

L+4.50
%
6.01
%
3/27/2024

4,790

3,590
Secretariat Advisors LLC

L+4.75
%
7.00
%
12/29/2028

1,701

1,633
Secretariat Advisors LLC (Delayed Draw) ^(d)

L+4.75
%
7.00
%
12/29/2028

270

—
SIRVA Worldwide Inc.

L+5.50
%
7.17
%
8/4/2025

1,825

1,643
Teneo Holdings LLC

SF+5.25
%
6.85
%
7/11/2025

4,862

4,550
The Kleinfelder Group, Inc.

L+5.25
%
7.50
%
11/29/2024

2,374

2,372

37,541

34,254
Services: Consumer

360Holdco, Inc.

L+4.75
%
6.42
%
8/2/2025

2,156

2,145
360Holdco, Inc. (Delayed Draw) ^(d)

L+4.75
%
6.42
%
8/2/2025

827

—
Laseraway Intermediate Holdings II, LLC

L+5.75
%
6.79
%
10/14/2027

2,211

2,179
McKissock Investment Holdings, LLC

SF+5.00
%
5.92
%
3/9/2029

2,494

2,419

7,688

6,743
Telecommunications

Intermedia Holdings, Inc.

L+6.00
%
7.67
%
7/21/2025

1,769

1,672
Mavenir Systems, Inc.

L+4.75
%
6.21
%
8/18/2028

1,663

1,554
Sandvine Corporation

L+4.50
%
6.17
%
10/31/2025

2,000

1,920

5,432

5,146
Transportation: Cargo

Keystone Purchaser, LLC

L+6.25
%
8.50
%
5/7/2027

4,981

4,981

4,981

4,981
Utilities: Oil & Gas

Dresser Utility Solutions, LLC (fka NGS US Finco, LLC)

L+4.25
%
5.92
%
10/1/2025

1,686

1,627
Dresser Utility Solutions, LLC (fka NGS US Finco, LLC)

L+5.25
%
6.92
%
10/1/2025

246

240

1,932

1,867
Wholesale

BMC Acquisition, Inc.

L+5.25
%
7.08
%
12/30/2024

4,486

4,273
HALO Buyer, Inc.

L+4.50
%
6.17
%
6/30/2025

4,799

4,330

9,285

8,603
TOTAL INVESTMENTS

$
195,190

Table of Contents

MRCC SENIOR LOAN FUND I, LLC

CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)

(unaudited)

June 30, 2022

(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. The Company has provided the spread over LIBOR, SOFR or Prime and the current contractual rate of interest in effect at June 30, 2022. Certain investments are subject to an interest rate floor.

(c)	This is an international company.

(d)	All or a portion of this commitment was unfunded as of June 30, 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 June 30, 2022, meaning that the Company has ceased accruing interest income on the position.

Table of Contents

MRCC SENIOR LOAN FUND I, LLC

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2021

Spread Above








Portfolio Company ^(a)

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

Table of Contents

MRCC SENIOR LOAN FUND I, LLC

CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)

December 31, 2021

Spread Above








Portfolio Company ^(a)

Index (b)

Interest Rate ^(b)

Maturity

Principal

Fair Value
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
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

Table of Contents

(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. The Company has 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 an 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.

(f)	This position was on non-accrual status as of December 31, 2021, meaning that the Company has ceased accruing interest income on the position.

Table of Contents

Below is certain summarized financial information for SLF as of June 30, 2022 and December 31, 2021 and for the three and six months ended June 30, 2022 and 2021:

June 30, 2022

December 31, 2021

(unaudited)

Assets




Investments, at fair value

$
195,190

$
189,109
Cash

735

40
Restricted cash

6,744

4,862
Interest receivable

886

600
Other assets

—

12
Total assets

$
203,555

$
194,623
Liabilities




Revolving credit facility

$
129,615

$
94,765
Less: Unamortized deferred financing costs

(1,922)

(2,319)
Total debt, less unamortized deferred financing costs

127,693

92,446
Payable for open trades

—

19,367
Interest payable

423

242
Accounts payable and accrued expenses

338

318
Total liabilities

128,454

112,373
Members’ capital

75,101

82,250
Total liabilities and members’ capital

$
203,555

$
194,623

Three months ended June 30,

Six months ended June 30,


2022

2021

2022

2021

(unaudited)

(unaudited)
Investment income:








Interest income

$
3,385

$
3,210

$
6,518

$
6,663
Total investment income

3,385

3,210

6,518

6,663
Expenses:








Interest and other debt financing expenses

1,216

1,024

2,197

2,003
Professional fees

205

162

377

332
Total expenses

1,421

1,186

2,574

2,335
Net investment income (loss)

1,964

2,024

3,944

4,328
Net gain (loss):








Net change in unrealized gain (loss)

(6,483)

761

(8,493)

4,424
Net gain (loss)

(6,483)

761

(8,493)

4,424
Net increase (decrease) in members’ capital

$
(4,519)

$
2,785

$
(4,549)

$
8,752

Note 4. Fair Value Measurements
Investments
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.

Table of Contents

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:

·●

Level 1 — – Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date.

·●

Level 2 — – Valuations based on inputs other than quoted prices in active markets, including quoted prices for similar assets or liabilities, which are either directly or indirectly observable.

·●

Level 3 — – Valuations based on inputs that are unobservable and significant to the overall fair value measurement. This includes situations where there is little, if any, market activity for the assets or liabilities. The inputs into the determination of fair value are based upon the best information available and may require significant management judgment or estimation.

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 as of September 30, 2017 and December 31, 2016 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 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 ~~portfolio investment;~~

~~preliminary valuation conclusions are then documented and discussed with the investment committee~~credit monitoring of the ~~Company;~~portfolio investment;

·●

the Board ~~also~~ 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;~~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 ~~responds and~~MC Advisors adjusts or further supplements the valuation recommendations to reflect any ~~comments;~~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.

Table of Contents

The accompanying consolidated schedules of investments held by the Company consist primarily of private debt instruments (“Level 3 debt”). The Company generally uses the ~~yield~~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 ~~loans~~ 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 ~~yield~~income approach, ~~the Company uses~~ 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 ~~yield~~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 ~~Company typically uses 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.

~~Secured Borrowings~~

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 ~~has elected~~generally uses the midpoint of the bid/ask range as its best estimate of fair value of such investment.

As of June 30, 2022, the Board determined, in good faith, the fair value ~~option under ASC Topic 825 —~~~~Financial Instruments~~ ~~(“ASC Topic 825”) relating~~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 ~~accounting~~be known at that time.

Foreign Currency Forward Contracts

The valuation for ~~debt obligations~~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 ~~their fair value for its secured borrowings which arose due to partial loan sales which did not meet~~ the ~~criteria for sale treatment under ASC Topic 860. The Company reports changes~~current period end. Foreign currency forward contracts are categorized as Level 2 in the fair value hierarchy.

Table of its secured borrowings within net change in unrealized gain (loss) on secured borrowings in the consolidated statements of operations. The net gain or loss reflects the difference between the fair value and the principal amount due on maturity.Contents

Due to the absence of a liquid trading market for these secured borrowings, they are valued by calculating the net present value of the future expected cash flow streams using an appropriate risk-adjusted discount rate model. The discount rate considers projected performance of the related loan investment, applicable market yields and leverage levels, credit quality, prepayment penalties and comparable company analysis. The Company consults with an independent valuation firm relative to the fair value of its secured borrowings at least once in every calendar year.

Fair Value Disclosures

The following ~~table presents~~tables present fair value measurements of investments and ~~secured borrowings,~~foreign currency forward contracts, by major class ~~as of September 30, 2017,~~ according to the fair value hierarchy:

Fair Value Measurements
June 30, 2022

Level 1

Level 2

Level 3

Total
Investments:












Senior secured loans

$
—

$
—

$
415,244

$
415,244
Unitranche secured loans

—

—

34,114

34,114
Junior secured loans

—

—

19,745

19,745
Equity securities

548

—

28,837

29,385
Investments measured at NAV ^{(1) (2)}

—

—

—

37,551
Total investments

$
548

$
—

$
497,940

$
536,039
Foreign currency forward contracts asset (liability)

$
—

$
1,421

$
—

$
1,421

Fair Value Measurements
Level 1 Level 2 Level 3 Total

Fair Value Measurements
December 31, 2021

Level 1

Level 2

Level 3

Total
Investments:












Senior secured loans $ — $ — $ 327,984 $ 327,984

$
—

$
—

$
423,700

$
423,700
Unitranche loans — — 44,592 44,592
Unitranche secured loans

—

—

51,494

51,494
Junior secured loans — — 38,555 38,555

—

—

14,364

14,364
Equity securities — — 19,966 19,966

1,041

—

29,969

31,010
Total Investments $ — $ — $ 431,097 $ 431,097

Secured borrowings $ — $ — $ — $ —
Investments measured at NAV ^{(1) (2)}

—

—

—

41,125
Total investments

$
1,041

$
—

$
519,527

$
561,693
Foreign currency forward contracts asset (liability)

$
—

$
781

$
—

$
781
(1) Certain investments that are measured at fair value using the NAV have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented on the consolidated statements of assets and liabilities.
(2) Represents the Company’s investment in LLC equity interests in SLF. The fair value of this investment has been determined using the NAV of the Company’s ownership interest in SLF’s members’ capital.
~~The following table presents fair value measurements of investments and~~Senior secured ~~borrowings, by major class, as of December 31, 2016, according to the fair value hierarchy:~~
Fair Value Measurements
Level 1 Level 2 Level 3 Total
Investments:
Senior secured loans $ — $ — $ 275,253 $ 275,253
Unitranche loans — — 51,638 51,638
Junior secured loans — — 59,366 59,366
Equity securities — — 26,663 26,663
Total Investments $ — $ — $ 412,920 $ 412,920

Secured borrowings $ — $ — $ 1,314 $ 1,314
25
~~Senior,~~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. ~~The~~Excluding loans on non-accrual, the contractual interest rates on the loans ranged ~~between 6.24%~~from 6.67% to ~~15.24%~~16.14% at ~~September~~June 30, ~~2017~~2022 and ~~5.75%~~6.00% to ~~17.00%~~16.00% at December 31, ~~2016.~~2021. The maturity dates on the loans outstanding at ~~September~~June 30, ~~2017~~2022 range between ~~December 2017~~August 2022 and ~~August 2025.~~July 2028.

Table of Contents

The following tables provide a reconciliation of the beginning and ending balances for investments ~~and secured borrowings~~at fair value that use Level 3 inputs for the three and ~~nine~~six months ended ~~September~~June 30, ~~2017:~~2022:

Investments
Senior
secured loans
Unitranche
loans

Junior
secured loans

Equity
securities

Total
investments

Secured
borrowings

Balance as of June 30, 2017 $ 351,491 $ 37,302 $ 37,709 $ 19,047 $ 445,549 $ —
Reclassifications⁽¹⁾ (15,747 ) 15,747 — — — —
Net change in unrealized gain (loss) on investments (3,380 ) 4,554 305 919 2,398 —
Net realized gain (loss) on investments — (3,399 ) 7 492 (2,900 ) —
Purchases of investments and other adjustments to cost⁽²⁾ 44,119 225 10,691 — 55,035 —
Proceeds from principal payments and sales on investments ⁽³⁾ (48,499 ) (9,837 ) (10,157 ) (492 ) (68,985 ) —
Net change in unrealized gain (loss) on secured borrowings — — — — — —
Repayments on secured borrowings — — — — — —
Net realized (gain) loss on secured borrowings — — — — — —
Balance as of September 30, 2017 $ 327,984 $ 44,592 $ 38,555 $ 19,966 $ 431,097 $ —

Investments

Senior

Unitranche

Junior

Equity

Total Level 3

secured loans

secured loans

secured loans

securities

investments
Balance as of March 31, 2022

$
418,798

$
34,785

$
19,521

$
30,930

$
504,034
Net realized gain (loss) on investments

(12)

—

—

32

20
Net change in unrealized gain (loss) on investments

(4,674)

(2,480)

(90)

(1,844)

(9,088)
Purchases of investments and other adjustments to cost ⁽¹⁾

20,190

1,878

314

42

22,424
Proceeds from principal payments and sales of investments ⁽²⁾

(19,058)

(69)

—

(323)

(19,450)
Balance as of June 30, 2022

$
415,244

$
34,114

$
19,745

$
28,837

$
497,940

Investments
Senior
secured loans
Unitranche
loans

Junior
secured loans

Equity
securities

Total
investments

Secured
borrowings

Balance as of December 31, 2016 $ 275,253 $ 51,638 $ 59,366 $ 26,663 $ 412,920 $ 1,314
Reclassifications⁽¹⁾ (18,542 ) 15,747 382 2,413 — —
Net change in unrealized gain (loss) on investments (5,237) 5,382 462 (9,110 ) (8,503 ) —
Net realized gain (loss) on investments 41 (3,399 ) 7 2,779 (572 ) —
Purchases of investments and other adjustments to cost⁽²⁾ 155,915 4,889 10,893 — 171,697 —
Proceeds from principal payments and sales on investments ⁽³⁾ (79,446 ) (29,665 ) (32,555 ) (2,779 ) (144,445 ) —
Net change in unrealized gain (loss) on secured borrowings — — — — — 6
Repayments on secured borrowings — — — — — (1,254 )
Net realized (gain) loss on secured borrowings — — — — — (66 )
Balance as of September 30, 2017 $ 327,984 $ 44,592 $ 38,555 $ 19,966 $ 431,097 $ —

Investments

Senior

Unitranche

Junior

Equity

Total Level 3

secured loans

secured loans

secured loans

securities

investments
Balance as of December 31, 2021

$
423,700

$
51,494

$
14,364

$
29,969

$
519,527
Net realized gain (loss) on investments

(21)

(94)

—

32

(83)
Net change in unrealized gain (loss) on investments

(5,050)

(5,156)

(322)

(1,510)

(12,038)
Purchases of investments and other adjustments to cost ⁽¹⁾

36,580

3,238

5,703

669

46,190
Proceeds from principal payments and sales of investments ⁽²⁾

(39,965)

(15,368)

—

(323)

(55,656)
Balance as of June 30, 2022

$
415,244

$
34,114

$
19,745

$
28,837

$
497,940
(1) ~~Represents non-cash reclassifications of investment type due to restructuring of the investments in portfolio companies.~~
~~(2)~~ Includes purchases of new investments, effects of refinancing and restructurings, premium and discount accretion and amortization and PIK interest.
(2) ~~(3)~~ Represents net proceeds from investments sold and principal paydowns received.

Table of Contents

Investments

Senior

Unitranche

Junior

Equity

Total Level 3

secured loans

secured loans

secured loans

securities

investments
Balance as of March 31, 2021

$
392,399

$
48,298

$
11,999

$
27,616

$
480,312
Net realized gain (loss) on investments

19

—

—

890

909
Net change in unrealized gain (loss) on investments

986

(508)

(199)

4,669

4,948
Purchases of investments and other adjustments to cost ⁽¹⁾

56,342

1,031

—

449

57,822
Proceeds from principal payments and sales of investments ⁽²⁾

(45,424)

(3,321)

(3,675)

(2,967)

(55,387)
Balance as of June 30, 2021

$
404,322

$
45,500

$
8,125

$
30,657

$
488,604

Investments

Senior

Unitranche

Junior

Equity

Total Level 3

secured loans

secured loans

secured loans

securities

investments
Balance as of December 31, 2020

$
405,224

$
64,040

$
14,592

$
23,899

$
507,755
Net realized gain (loss) on investments

(175)

—

—

892

717
Net change in unrealized gain (loss) on investments

3,611

(4,071)

87

8,160

7,787
Purchases of investments and other adjustments to cost ⁽¹⁾

101,238

1,455

168

736

103,597
Proceeds from principal payments and sales of investments ⁽²⁾

(105,576)

(15,924)

(6,722)

(3,030)

(131,252)
Balance as of June 30, 2021

$
404,322

$
45,500

$
8,125

$
30,657

$
488,604
26

Investments
Senior
secured loans
Unitranche
loans

Junior
secured loans

Equity
securities

Total
investments

Secured
borrowings

Balance as of June 30, 2016 $ 201,002 $ 53,920 $ 64,955 $ 22,931 $ 342,808 $ 2,112
Reclassifications — — — — — —
Net change in unrealized gain (loss) on investments (2,739 ) (635 ) 873 653 (1,848 ) —
Net realized gain (loss) on investments — — — — — —
Purchases of investments and other adjustments to cost⁽²⁾ 50,384 197 191 — 50,772 —
Proceeds from principal payments and sales on investments ⁽³⁾ (8,127 ) (1,624 ) (5,325 ) — (15,076 ) —
Net change in unrealized gain (loss) on secured borrowings — — — — — 123
Proceeds from secured borrowings — — — — — —
Repayments on secured borrowings — — — — — (625 )
Balance as of September 30, 2016 $ 240,520 $ 51,858 $ 60,694 $ 23,584 $ 376,656 $ 1,610
Investments
Senior
secured loans
Unitranche
loans

Junior
secured loans

Equity
securities

Total
investments

Secured
borrowings

Balance as of December 31, 2015 $ 190,559 $ 68,090 $ 63,388 $ 19,054 $ 341,091 $ 2,476
Reclassifications⁽¹⁾ 6,525 (6,525 ) — — — —
Net change in unrealized gain (loss) on investments (3,360) (2,349 ) 332 4,530 (847 ) —
Net realized gain (loss) on investments — — — 587 587 —
Purchases of investments and other adjustments to cost⁽²⁾ 88,497 1,719 8,068 — 98,284 —
Proceeds from principal payments and sales on investments ⁽³⁾ (41,701 ) (9,077 ) (11,094 ) (587 ) (62,459 ) —
Net change in unrealized gain (loss) on secured borrowings — — — — — 36
Proceeds from secured borrowings — — — — — —
Repayments on secured borrowings — — — — — (902 )
Balance as of September 30, 2016 $ 240,520 $ 51,858 $ 60,694 $ 23,584 $ 376,656 $ 1,610
(1) ~~Represents non-cash reclassifications of investment type due to restructuring of the investments in portfolio companies.~~
~~(2)~~ Includes purchases of new investments, effects of refinancing and restructurings, premium and discount accretion and amortization and PIK interest.
(2) ~~(3)~~ Represents net proceeds from investments sold and principal paydowns received.
The total ~~change in unrealized gain (loss) included in the consolidated statements of operations within~~ net change in unrealized gain (loss) on investments included on the consolidated statements of operations for the three and ~~nine~~six months ended ~~September~~June 30, ~~2017,~~2022, attributable to Level 3 investments still held at ~~September~~June 30, ~~2017,~~2022, was ($~~254)~~7,506) and ($~~11,637)~~10,226), respectively. The total ~~change in unrealized gain (loss) included in the consolidated statements of operations within~~ net change in unrealized gain (loss) on investments included on the consolidated statements of operations for the three and ~~nine~~six months ended ~~September~~June 30, ~~2016,~~2021, attributable to Level 3 investments still held at ~~September~~June 30, ~~2016,~~2021, was ~~($1,821)~~$5,602 and ($377), respectively. The total change in unrealized gain (loss) included in the consolidated statements of operations within net change in unrealized gain (loss) on secured borrowings for the three and nine months ended September 30, 2016, attributable to Level 3 secured borrowings still held at September 30, 2016, was~~($123) and ($36)~~,$8,339, 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 and ~~nine~~six months ended ~~September~~June 30, ~~2017~~2022 and ~~2016.~~
2021.
Significant Unobservable Inputs
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.
27
57

Table of Contents

The valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements of assets and liabilities as of ~~September~~June 30, ~~2017~~2022 were as follows:

Weighted Range
Fair
Value Valuation Technique Unobservable
Input Average
Mean Minimum Maximum
Assets:
Senior secured loans $ 257,683 Discounted cash flow EBITDA multiples 6.9x 1.3x 14.0x
Market yields 11.5 % 6.8 % 22.0 %
Senior secured loans 13,350 Waterfall Delinquency ratio 0.0 % 0.0 % 0.0 %
Senior secured loans 12,897 Discounted cash flow Tangible book value multiples 1.4x 1.3x 1.4x
Market yields 13.8 % 9.8 % 19.2 %
Senior secured loans 9,124 Enterprise value Revenue multiples 0.3x 0.3x 0.6x
Senior secured loans 8,405 Enterprise value EBITDA multiples 7.1x 5.5x 9.0x
Unitranche loans 44,299 Discounted cash flow EBITDA multiples 7.2x 4.5x 8.5x
Market yields 13.6 % 6.5 % 20.9 %
Unitranche loans 293 Enterprise value EBITDA multiples 5.0x 4.5x 5.5x
Junior secured loans 5,653 Discounted cash flow EBITDA multiples 8.9x 3.8x 10.0x
Market yields 11.5 % 10.6 % 13.5 %
Equity securities 9,705 Enterprise value EBITDA multiples 5.2x 4.5x 9.5x
Equity securities 8,192 Discounted cash flow EBITDA multiples 4.0x 3.8x 4.3x
Market yields 19.0 % 18.0 % 20.0 %
Equity securities 610 Enterprise value Tangible book value multiples 1.4x 1.3x 1.4x
Equity securities 215 Enterprise value Revenue multiples 2.5x 2.4x 2.6x
Total Level 3 Assets $ 370,426 ⁽¹⁾

Liabilities:
Secured Borrowings $ —

  Weighted


Unobservable

Average

Range


Fair Value

Valuation Technique

Input

Mean

Minimum

Maximum

Assets:

Senior secured loans

$
258,381

Discounted cash flow

EBITDA multiples

10.2x

4.0x

36.5x

Market yields

10.9
%
4.4
%
20.0
%
Senior secured loans

103,333

Discounted cash flow

Revenue multiples

4.4x

0.6x

12.0x

Market yields

12.2
%
7.9
%
20.1
%
Senior secured loans

22,345

Enterprise value

EBITDA multiples

9.7x

6.4x

11.0x

Senior secured loans

21,985

Enterprise value

Book value multiples

1.2x

1.2x

1.2x

Senior secured loans

5,908

Enterprise value

Revenue multiples

2.5x

2.5x

2.5x

Senior secured loans

2,149

Liquidation

Probability weighting of alternative outcomes

84.4
%
39.3
%
100.0
%
Unitranche secured loans

30,584

Discounted cash flow

EBITDA multiples

8.5x

6.5x

11.5x

Market yields

9.3
%
8.3
%
11.4
%
Unitranche secured loans

3,530

Discounted cash flow

Revenue multiples

9.0x

5.8x

12.5x

Market yields

8.9
%
7.6
%
10.5
%
Junior secured loans

19,165

Discounted cash flow

Market yields

16.1
%
10.5
%
27.6
%
Junior secured loans

580

Liquidation

Probability weighting of alternative outcomes

69.6
%
69.6
%
69.6
%
Equity securities

15,548

Enterprise value

EBITDA multiples

7.6x

4.0x

16.0x

Equity securities

7,468

Enterprise value

Revenue multiples

3.1x

0.7x

11.3x

Equity securities

2,295

Liquidation

Probability weighting of alternative outcomes

20.4
%
20.4
%
20.4
%
Equity securities

418

Discounted cash flow

EBITDA multiples

7.0x

7.0x

7.0x

Market yields

25.0
%
25.0
%
25.0
%
Equity securities

209

Option pricing model

Volatility

46.8
%
46.8
%
46.8
%
Total Level 3 Assets

$
493,898
⁽¹⁾









(1) Excludes loans of ~~$57,521~~$4,042 at fair value where valuation (unadjusted) is obtained from a third-party pricing service for which such disclosure is not required. ~~Also excludes loans of $3,150 at fair value which were fully repaid subsequent to September 30, 2017 where valuation represents the repayment price.~~

Table of Contents

The valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements of assets and liabilities as of December 31, ~~2016~~2021 were as ~~follows:~~follows:

Weighted Range
Fair
Value Valuation Technique Unobservable
Input Average
Mean Minimum Maximum
Assets:
Senior secured loans $ 214,267 Discounted cash flow EBITDA multiples 7.0x 3.2x 13.3x
Market yields 11.7 % 7.0 % 22.0 %
Senior secured loans 1,054 Enterprise value Revenue multiples 0.6x 0.5x 0.6x
Senior secured loans 12,727 Enterprise value EBITDA multiples 4.1x 3.3x 5.5x
Unitranche loans 47,861 Discounted cash flow EBITDA multiples 6.1x 4.8x 8.0x
Market yields 13.4 % 9.5 % 22.1 %
Unitranche loans 3,491 Combination of discounted cash flow and enterprise value Revenue multiples 0.5x 0.5x 0.6x
Market yields 29.2 % 29.2 % 29.2 %
Unitranche loans 286 Enterprise value EBITDA multiples 6.0x 5.5x 6.5x
Junior secured loans 18,572 Discounted cash flow EBITDA multiples 7.5x 3.5x 9.5x
Market yields 11.5 % 7.0 % 13.5 %
Junior secured loans — Enterprise value Revenue multiples 0.6x 0.5x 0.6x
Equity securities 8,121 Discounted cash flow EBITDA multiples 3.8x 3.5x 4.0x
Market yields 17.0 % 16.0 % 18.0 %
Equity securities 18,164 Enterprise value EBITDA multiples 4.6x 3.3x 13.3x
Equity securities 249 Enterprise value Revenue multiples 0.8x 0.1x 3.8x
Total Level 3 Assets $ 324,792 ⁽¹⁾

Liabilities:
Secured Borrowings $ 1,314 Discounted cash flow Market yields 7.7 % 7.1 % 8.2 %











Weighted

Fair

Unobservable

Average

Range

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⁾

28

(1)

Excludes loans of ~~$88,128~~$5,262 at fair value where valuation (unadjusted) is obtained from a third-party pricing service for which such disclosure is not required.

The significant unobservable ~~inputs~~input 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 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 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.

~~The significant unobservable inputs used in the yield~~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.

Table of Contents

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.

Other Financial Assets and Liabilities

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. ~~The~~As of both June 30, 2022 and December 31, 2021, the Company believes that the carrying value of its revolving credit facility approximates fair value. ~~SBA-guaranteed debentures~~The senior unsecured notes (“2026 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 June 30, 2022 and December 31, 2021, the Company believes that the carrying value of the 2026 Notes approximates fair value. SBA debentures were carried at cost and with their longer maturity dates, fair value was 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 ~~September 30, 2017 and~~ December 31, ~~2016,~~2021, the ~~fair value of~~Company believed that the ~~Company’s SBA debentures using Level 3 inputs were estimated at $92,100 and $51,500, respectively, which is the same as the Company’s~~ carrying value of the SBA ~~debentures.~~debentures approximated fair value.

Table of Contents

Note 5. Transactions with Affiliated Companies
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 ~~nine~~six months ended ~~September~~June 30, ~~2017~~2022 and ~~2016~~2021 were as follows:



Sales and

PIK

Net

Fair value at

Transfers

Purchases

paydowns

interest

Discount

Net realized

unrealized

Fair value at
Portfolio Company

December 31, 2021

in (out)

(cost)

(cost)

(cost)

accretion

gain (loss)

gain (loss)

June 30, 2022
Non-controlled affiliate company investment:

American Community Homes, Inc.

$
10,457

$
—

$
—

$
—

$
466

$
—

$
—

$
(804)

$
10,119
American Community Homes, Inc.

4,753

—

—

—

325

—

—

(373)

4,705
American Community Homes, Inc.

634

—

—

—

28

—

—

(49)

613
American Community Homes, Inc.

3,164

—

—

—

104

—

—

(1,012)

2,256
American Community Homes, Inc.

4,357

—

—

—

192

—

—

(373)

4,176
American Community Homes, Inc.

20

—

—

—

1

—

—

(1)

20
American Community Homes, Inc.

99

—

—

—

4

—

—

(7)

96
American Community Homes, Inc. (Revolver)

—

—

—

—

—

—

—

—

—
American Community Homes, Inc. (warrant to purchase up to 22.3% of the equity)

264

—

—

—

—

—

—

(264)

—

23,748

—

—

—

1,120

—

—

(2,883)

21,985

Ascent Midco, LLC

6,392

—

—

(87)

—

14

—

(15)

6,304
Ascent Midco, LLC (Revolver)

—

—

—

—

—

—

—

—

—
Ascent Midco, LLC (2,032,258 Class A units)

2,554

—

—

—

—

—

—

(936)

1,618

8,946

—

—

(87)

—

14

—

(951)

7,922

Curion Holdings, LLC

4,561

—

—

(97)

—

—

—

1,442

5,906
Curion Holdings, LLC (Revolver)

550

—

92

(470)

—

—

—

165

337
Curion Holdings, LLC (Junior secured loan)

—

—

—

—

—

—

—

—

—
Curion Holdings, LLC (Junior secured loan)

—

—

—

—

—

—

—

—

—
Curion Holdings, LLC (58,779 shares of common stock)

—

—

—

—

—

—

—

—

—

5,111

—

92

(567)

—

—

—

1,607

6,243

Familia Dental Group Holdings, LLC (1,158 Class A units)

1,919

—

183

—

—

—

—

653

2,755

1,919

—

183

—

—

—

—

653

2,755

HFZ Capital Group, LLC

15,084

—

—

—

—

—

—

533

15,617
HFZ Capital Group, LLC

5,420

—

—

—

—

—

—

191

5,611
MC Asset Management (Corporate), LLC

7,154

—

—

—

590

—

—

—

7,744
MC Asset Management (Corporate), LLC (Delayed Draw)

850

—

—

—

70

—

—

—

920
MC Asset Management (Corporate), LLC (15.9% interests)

644

—

—

—

—

—

—

(205)

439

29,152

—

—

—

660

—

—

519

30,331

Mnine Holdings, Inc.

5,771

—

—

—

137

9

—

(9)

5,908
Mnine Holdings, Inc. (6,400 Class B units)

—

—

—

—

—

—

—

—

—

5,771

—

—

—

137

9

—

(9)

5,908

NECB Collections, LLC (Revolver)

632

—

—

—

—

—

—

(117)

515
NECB Collections, LLC (20.8% of units)

—

—

—

—

—

—

—

—

—

632

—

—

—

—

—

—

(117)

515

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

—

—

—

—

—

—

(118)

3,030

3,148

—

—

—

—

—

—

(118)

3,030
Total non-controlled affiliate company investments

$
90,281

$
—

$
763

$
(654)

$
1,917

$
23

$
—

$
(1,299)

$
91,031

Controlled affiliate company investments:

MRCC Senior Loan Fund I, LLC

$
41,125

$
—

$
500

$
—

$
—

$
—

$
—

$
(4,074)

$
37,551

41,125

—

500

—

—

—

—

(4,074)

37,551
Total Controlled affiliate company investments

$
41,125

$
—

$
500

$
—

$
—

$
—

$
—

$
(4,074)

$
37,551
Portfolio Company Fair value
at
December
31,
2016

Transfers in
(out)
Purchases
(cost) Sales and
paydowns
(cost) PIK
interest
(cost) Discount
accretion Net
realized
gains (losses) Net
unrealized
gains
(losses)
Fair value
at
September
30,
2017

Non-controlled affiliate company investments⁽¹⁾ :
American Community Homes, Inc. $ 13,950 $ — $ 647 $ — $ 168 $ 52 $ — $ (1,310 ) $ 13,507
Luxury Optical Holdings Co.⁽²⁾ — 3,970 808 — 68 4 — (364 ) 4,486
Rockdale Blackhawk, LLC⁽³⁾ 27,077 — 4,161 (16 ) — 147 — (6,394 ) 24,975
Rocket Dog Brands, LLC 1,054 — — — 130 (1 ) — (927 ) 256
SHI Holdings, Inc. 4,297 — 833 — — 15 307 5,452
Summit Container Corporation 3,663 — 1,499 (102 ) 55 18 — (214 ) 4,919
Total non-controlled affiliate company investments $ 50,041 $ 3,970 $ 7,948 $ (118 ) $ 421 $ 235 $ — $ (8,902 ) $ 53,595
Controlled affiliate company investments⁽¹⁾ :
TPP Acquisition, Inc.⁽⁴⁾ $ — $ — $ — $ — $ — $ — $ — $ — $ —
TPP Operating, Inc.⁽⁴⁾ 8,899 — 4,330 (972 ) — — — (3,389 ) 8,868
Total controlled affiliate company investments $ 8,899 $ — $ 4,330 $ (972 ) $ — $ — $ — $ (3,389 ) $ 8,868

29
61
Portfolio Company Fair value
at
December
31,
2015

Transfers in
(out)
Purchases
(cost) Sales and
paydowns
(cost) PIK
interest
(cost) Discount
accretion Net
realized
gains
(losses) Net
unrealized
gains
(losses)
Fair value
at
September
30,
2016

Non-controlled affiliate company investments⁽¹⁾ :
American Community Homes, Inc. $ 11,692 $ — $ 488 $ — $ 153 $ 44 $ — $ 1,045 $ 13,422
Rockdale Blackhawk, LLC 21,903 — 462 (2,187 ) — 140 — 3,945 24,263
Rocket Dog Brands, LLC 1,752 — 384 (12 ) 319 7 — (1,293 ) 1,157
Summit Container Corporation 3,400 — 137 (141 ) 48 20 — 117 3,581
Total non-controlled affiliate company investments $ 38,747 $ — $ 1,471 $ (2,340 ) $ 520 $ 211 $ — $ 3,814 $ 42,423
Controlled affiliate company investments⁽¹⁾ :
TPP Acquisition, Inc. $ 6,525 $ — $ 4,769 $ (1,304 ) $ — $ — $ — $ (3,741 ) $ 6,249
Total controlled affiliate company investments $ 6,525 $ — $ 4,769 $ (1,304 ) $ — $ — $ — $ (3,741 ) $ 6,249
For the nine months ended September 30,
2017 2016
Portfolio Company Interest
income Dividend
income Fee
income Interest
income Dividend
income Fee
income
Non-controlled affiliate company investments ⁽¹⁾ :
American Community Homes, Inc. $ 1,142 $ — $ — $ 1,073 $ — $ —
Luxury Optical Holdings Co. 142 — — — — —
Rockdale Blackhawk, LLC 1,518 — — 1,373 3,546 —
Rocket Dog Brands, LLC 126 — — 351 — —
SHI Holdings, Inc. 367 — — — — —
Summit Container Corporation 482 — — 485 — —
Total non-controlled affiliate company investments $ 3,777 $ — $ — $ 3,282 $ 3,546 $ —
Controlled affiliate company investments⁽¹⁾:
TPP Acquisition, Inc. $ — $ — $ — $ 30 $ — $ —
TPP Operating, Inc. 594 — — — — —
Total controlled affiliate company investments $ 594 $ — $ — $ 30 $ — $ —

Table of Contents

Fair value at





Sales and

PIK



Net

Net

Fair value at

December

Transfers

Purchases

paydowns

interest

Discount

realized

unrealized

June
Portfolio Company

31, 2020

in (out)

(cost)

(cost)

(cost)

accretion

gain (loss)

gain (loss)

30, 2021
Non-controlled affiliate company investment:


















American Community Homes, Inc.

$
9,401

$
—

$
—

$
(90)

$
555

$
—

$
—

$
—

$
9,866
American Community Homes, Inc.

6,239

—

—

(2,229)

374

—

—

—

4,384
American Community Homes, Inc.

825

—

—

(838)

13

—

—

—

—
American Community Homes, Inc.

570

—

—

(5)

33

—

—

—

598
American Community Homes, Inc.

335

—

—

(341)

6

—

—

—

—
American Community Homes, Inc.

2,915

—

—

(20)

125

—

—

205

3,225
American Community Homes, Inc.

3,879

—

—

(37)

229

—

—

42

4,113
American Community Homes, Inc.

18

—

—

—

1

—

—

—

19
American Community Homes, Inc.

89

—

—

(1)

6

—

—

—

94
American Community Homes, Inc. (Revolver)

—

—

—

—

—

—

—

—

—
American Community Homes, Inc. (warrant to purchase up to 22.3% of the equity)

—

—

—

—

—

—

—

584

584

24,271

—

—

(3,561)

1,342

—

—

831

22,883

Ascent Midco, LLC

6,997

—

—

(496)

—

14

—

(24)

6,491
Ascent Midco, LLC (Delayed Draw)

—

—

—

—

—

—

—

—

—
Ascent Midco, LLC (Revolver)

—

—

—

—

—

—

—

—

—
Ascent Midco, LLC (2,032,258 Class A units)

3,016

—

—

—

—

—

—

414

3,430

10,013

—

—

(496)

—

14

—

390

9,921

Curion Holdings, LLC

3,159

—

—

—

—

—

—

443

3,602
Curion Holdings, LLC (Revolver)

820

—

—

—

—

—

—

5

825
Curion Holdings, LLC (Junior secured loan)

—

—

—

—

—

—

—

—

—
Curion Holdings, LLC (Junior secured loan)

—

—

—

—

—

—

—

—

—
Curion Holdings, LLC (58,779 shares of common stock)

—

—

—

—

—

—

—

—

—

3,979

—

—

—

—

—

—

448

4,427

Familia Dental Group Holdings, LLC (1,052 Class A units)

3,118

—

—

—

—

—

—

60

3,178

3,118

—

—

—

—

—

—

60

3,178

HFZ Capital Group, LLC

13,106

—

—

—

—

—

—

1,437

14,543
HFZ Capital Group, LLC

4,709

—

—

—

—

—

—

516

5,225
MC Asset Management (Corporate), LLC

—

—

6,423

—

183

—

—

—

6,606
MC Asset Management (Corporate), LLC (Delayed Draw)

—

—

793

—

—

—

—

—

793
MC Asset Management (Corporate), LLC (15.9% interests)

785

—

—

—

—

—

—

101

886
MC Asset Management (Industrial), LLC

11,579

—

—

—

619

—

—

(98)

12,100

30,179

—

7,216

—

802

—

—

1,956

40,153

Incipio, LLC

1,764

—

—

—

—

—

—

(1,764)

—
Incipio, LLC

4,227

—

—

—

48

—

—

(2,713)

1,562
Incipio, LLC

1,805

—

—

—

15

—

—

(88)

1,732
Incipio, LLC

1,519

—

—

—

13

—

—

(74)

1,458
Incipio, LLC

761

—

—

—

6

—

—

(37)

730
Incipio, LLC

1,488

—

108

—

9

—

—

(78)

1,527
Incipio, LLC (Junior secured loan)

—

—

—

—

—

—

—

—

—
Incipio, LLC (Junior secured loan)

—

—

—

—

—

—

—

—

—
Incipio, LLC (1,774 shares of Series C common units)

—

—

—

—

—

—

—

—

—

11,564

—

108

—

91

—

—

(4,754)

7,009

Luxury Optical Holdings Co.

1,430

—

—

—

—

—

—

51

1,481
Luxury Optical Holdings Co. (Delayed Draw)

624

—

882

(93)

—

—

—

93

1,506
Luxury Optical Holdings Co. (Revolver)

66

—

—

—

—

—

—

2

68
Luxury Optical Holdings Co. (91 preferred units)

2,476

—

—

—

—

—

—

(91)

2,385
Luxury Optical Holdings Co. (86 shares of common stock)

—

—

—

—

—

—

—

—

—

4,596

—

882

(93)

—

—

—

55

5,440

Mnine Holdings, Inc.

12,356

—

—

—

297

20

—

(30)

12,643
Mnine Holdings, Inc. (6,400 Class B units)

—

—

—

—

—

—

—

—

—

12,356

—

—

—

297

20

—

(30)

12,643

NECB Collections, LLC (Revolver)

834

—

—

—

—

—

—

(90)

744
NECB Collections, LLC (20.8% of units)

—

—

—

—

—

—

—

—

—

834

—

—

—

—

—

—

(90)

744

SHI Holdings, Inc.

188

—

—

—

—

—

—

(56)

132
SHI Holdings, Inc. (Revolver)

297

—

—

—

—

—

—

(89)

208
SHI Holdings, Inc. (24 shares of common stock)

—

—

—

—

—

—

—

—

—

485

—

—

—

—

—

—

(145)

340

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

—

—

(755)

—

—

—

253

2,821

3,323

—

—

(755)

—

—

—

253

2,821
Total non-controlled affiliate company investments

$
109,715

$
—

$
13,608

$
(14,983)

$
2,532

$
34

$
(250)

$
(1,097)

$
109,559

Controlled affiliate company investments:


















MRCC Senior Loan Fund I, LLC

$
39,284

$
—

$
—

$
—

$
—

$
—

$
—

$
2,101

$
41,385

39,284

—

—

—

—

—

—

2,101

41,385
Total controlled affiliate company investments

$
39,284

$
—

$
—

$
—

$
—

$
—

$
—

$
2,101

$
41,385
(1) ~~Includes both loan~~Second Avenue SFR Holdings II LLC is a related entity to SFR Holdco, LLC and ~~equity security investment transactions for these portfolio companies.~~
~~(2)~~ ~~The Company provided a follow-on investment to Luxury Optical Holdings Co. (“LOH”)~~is being presented as a part of a restructuring during the three months ended September 30, 2017. As part of the restructuring, the Company also received 9.6% of the equity of LOH. For the purpose of this schedule, transfers in represents the fair value at June 30, 2017.non-controlled affiliate for that reason.
~~(3)~~ The Company provided a follow-on investment to Rockdale Blackhawk, LLC (“Rockdale”) during the three months ended September 30, 2017. In conjunction with the follow-on investment, the Company also received an additional 6.4% of the equity of Rockdale, increasing total equity ownership to 18.0%.
~~(4)~~ On September 2, 2016, TPP Acquisition, Inc. filed for bankruptcy as part of a restructuring process. The existing lenders, including the Company, submitted a credit bid to purchase certain assets of TPP Acquisition, Inc., which was approved by the bankruptcy court. The sale closed on November 8, 2016. A new operating company, TPP Operating, Inc., was formed to acquire certain of the assets of TPP Acquisition, Inc. and continue business operations. These new operations are no longer encumbered by significant lease liabilities. The Company owns 40% of the equity interests in both the former operating company, TPP Acquisition, Inc. (which is in wind-down) and the new operating company, TPP Operating, Inc. During the bankruptcy period, the Company and the other existing lenders provided additional financing through a debtor-in-possession financing (“DIP”) facility. Upon the purchase of TPP Acquisition, Inc.’s assets, TPP Operating, Inc. entered into a new credit facility with the existing lenders, including the Company. The principal amount of the new facility with TPP Operating, Inc. represented the amount owed to the lenders under the pre-petition facilities plus the amount funded under the DIP facility, less the amount of the credit bid. The cost basis of the Company’s equity investment in TPP Operating, Inc. represents the credit bid and equates to the reduction of principal outstanding on the debt facilities when the new facility was issued to TPP Operating, Inc. As of September 30, 2017, the Company valued its positions in TPP Operating, Inc. utilizing an enterprise value waterfall model. The key inputs to the model were an estimated 2017 revenue forecast and revenue multiple developed using comparable public and private company data.

Table of Contents

For the six months ended June 30,

2022

2021

Interest

Dividend

Interest

Dividend

Portfolio Company

Income

Income

Fee Income

Income

Income

Fee Income
Non-controlled affiliate company investments:












American Community Homes, Inc.

$
592

$
—

$
—

$
553

$
—

$
—
American Community Homes, Inc.

383

—

—

371

—

—
American Community Homes, Inc.

n/a

n/a

n/a

13

—

—
American Community Homes, Inc.

36

—

—

33

—

—
American Community Homes, Inc.

n/a

n/a

n/a

5

—

—
American Community Homes, Inc.

132

—

—

123

—

—
American Community Homes, Inc.

244

—

—

228

—

—
American Community Homes, Inc.

1

—

—

23

—

—
American Community Homes, Inc.

5

—

—

6

—

—
American Community Homes, Inc. (Revolver)

18

—

—

—

—

—
American Community Homes, Inc. (Warrant)

—

—

—

—

—

—

1,411

—

—

1,355

—

—

Ascent Midco, LLC

225

—

—

247

—

—
Ascent Midco, LLC (Delayed Draw)

n/a

n/a

n/a

8

—

—
Ascent Midco, LLC (Revolver)

2

—

—

2

—

—
Ascent Midco, LLC (Class A units)

—

93

—

—

86

—

227

93

—

257

86

—

Curion Holdings, LLC

—

—

—

—

—

—
Curion Holdings, LLC (Revolver)

—

—

—

—

—

—
Curion Holdings, LLC (Junior secured loan)

—

—

—

—

—

—
Curion Holdings, LLC (Junior secured loan)

—

—

—

—

—

—
Curion Holdings, LLC (Common stock)

—

—

—

—

—

—

—

—

—

—

—

—

Familia Dental Group Holdings, LLC (Class A units)

—

—

—

—

—

—

—

—

—

—

—

—

HFZ Capital Group, LLC

932

—

—

932

—

—
HFZ Capital Group, LLC

335

—

—

335

—

—
MC Asset Management (Corporate), LLC

611

—

—

450

—

—
MC Asset Management (Corporate), LLC (Delayed Draw)

72

—

—

23

—

—
MC Asset Management (Corporate), LLC (LLC interest)

—

—

—

—

—

—
MC Asset Management (Industrial), LLC

n/a

n/a

n/a

1,073

—

—

1,950

—

—

2,813

—

—

Incipio, LLC

n/a

n/a

n/a

—

—

—
Incipio, LLC

n/a

n/a

n/a

—

—

—
Incipio, LLC

n/a

n/a

n/a

—

—

—
Incipio, LLC

n/a

n/a

n/a

—

—

—
Incipio, LLC

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 (Common units)

n/a

n/a

n/a

—

—

—

n/a

n/a

n/a

—

—

—

Luxury Optical Holdings Co.

n/a

n/a

n/a

—

—

—
Luxury Optical Holdings Co. (Delayed Draw)

n/a

n/a

n/a

—

—

—
Luxury Optical Holdings Co. (Revolver)

n/a

n/a

n/a

—

—

—
Luxury Optical Holdings Co. (Preferred units)

n/a

n/a

n/a

—

—

—
Luxury Optical Holdings Co. (Common stock)

n/a

n/a

n/a

—

—

—

n/a

n/a

n/a

—

—

—

Mnine Holdings, Inc.

364

—

—

673

—

—
Mnine Holdings, Inc. (Class B units)

—

—

—

—

—

—

364

—

—

673

—

—

NECB Collections, LLC (Revolver)

—

—

—

—

—

—
NECB Collections, LLC (LLC units)

—

—

—

—

—

—

—

—

—

—

—

—

Second Avenue SFR Holdings II LLC (Revolver)

98

—

—

n/a

n/a

n/a

98

—

—

n/a

n/a

n/a

SFR Holdco, LLC (Junior secured loan)

234

—

—

n/a

n/a

n/a
SFR Holdco, LLC (LLC interest)

—

—

—

n/a

n/a

n/a

234

—

—

n/a

n/a

n/a

SHI Holdings, Inc.

n/a

n/a

n/a

—

—

—
SHI Holdings, Inc. (Revolver)

n/a

n/a

n/a

—

—

—
SHI Holdings, Inc. (Common stock)

n/a

n/a

n/a

—

—

—

n/a

n/a

n/a

—

—

—

Summit Container Corporation

n/a

n/a

n/a

57

—

—
Summit Container Corporation (Revolver)

n/a

n/a

n/a

35

—

—
Summit Container Corporation (Warrant)

n/a

n/a

n/a

—

—

—

n/a

n/a

n/a

92

—

—

TJ Management HoldCo, LLC (Revolver)

5

—

—

6

—

—
TJ Management HoldCo, LLC (Common stock)

—

—

—

—

—

—

5

—

—

6

—

—

Total non-controlled affiliate company investments

$
4,289

$
93

$
—

$
5,196

$
86

$
—

Controlled affiliate company investments:












MRCC Senior Loan Fund I, LLC

$
—

$
1,800

$
—

$
—

$
2,275

$
—

—

1,800

—

—

2,275

—
Total controlled affiliate company investments

$
—

$
1,800

$
—

$
—

$
2,275

$
—

Table of Contents

Note 6. Transactions with Related Parties
The Company has entered into an ~~Investment Advisory and Management Agreement~~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 ~~and Management~~ Agreement consisting of two ~~components—~~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 ~~1.75%~~1.00% of the Company’s average invested assets (calculated as total assets excluding ~~cash)~~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 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 and ~~nine~~six months ended ~~September~~June 30, ~~2017~~2022 were ~~$1,953~~$2,269 and ~~$5,661,~~$4,612, respectively. Base management fees for the three and ~~nine~~six months ended ~~September~~June 30, ~~2016~~2021 were ~~$1,594~~$2,327 and ~~$4,598,~~$4,661, respectively.
30
MC Advisors elected to voluntarily waive zero and $55 of such base management fees for the three and six months ended June 30, 2022, respectively. MC Advisors did not voluntarily waive any of such base management fees for the three and six months ended June 30, 2021.
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.~~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.
~~Incentive fees, excluding the impact~~The composition of the incentive fee waiver, for the three and nine months ended September 30, 2017 were $1,721 and $4,471, respectively. Incentive fees for the three months ended September 30, 2017 consisted solely of part oneCompany’s incentive fees ~~(based on net investment income)~~was as follows:

Three months ended June 30,

Six months ended June 30,

2022

2021

2022

2021
Part one incentive fees ⁽¹⁾

$
774

$
420

$
1,182

$
1,250
Part two incentive fees ⁽²⁾

—

—

—

—
Incentive Fee Limitation

—

—

—

—
Incentive fees, excluding the impact of the incentive fee waiver

774

420

1,182

1,250
Incentive fee waiver ⁽³⁾

(117)

(420)

(525)

(1,057)
Total incentive fees, net of incentive fee waiver

$
657

$
—

$
657

$
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

Table of $1,721. Incentive fees for the nine months ended September 30, 2017, consisted of part one incentive fees of $4,646 and part two incentive fees (based upon net realized and unrealized gains and losses, or capital gains) of ($175). Part two incentive fees reduced total incentive fees for the nine months ended September 30, 2017, primarily as a result of net unrealized losses during the period. Incentive fees for the three and nine months ended September 30, 2016 were $1,223 and $4,282, respectively. Incentive fees for the three months ended September 30, 2016, consisted of part one incentive fees of $1,361 and part two incentive fees of ($138). Part two incentive fees reduced the total incentive fees for the three months ended September 30, 2016, primarily as a result of net unrealized losses during the period. Incentive fees for the nine months ended September 30, 2016, consisted solely of part one incentive fees of $4,282. For the three and nine months ended September 30, 2017, MC Advisors waived part one incentive fees of zero and $250, respectively. For the three and nine months ended September 30, 2016 no incentive fees were waived. 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) 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).Contents

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~~administration agreement with ~~Monroe Capital~~MC Management ~~Advisors, LLC (“MC Management”~~(the “Administration Agreement”), under which the Company reimburses MC Management, ~~(subject~~subject to the review and approval of the ~~Board)~~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 and ~~nine~~six months ended ~~September~~June 30, ~~2017,~~2022, the Company incurred ~~$864~~$838 and ~~$2,540,~~$1,667, 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 ~~$295~~$303 and ~~$926,~~$633, respectively, was related to MC Management overhead and salary allocation and paid directly to MC Management. For the three and ~~nine~~six months ended ~~September~~June 30, ~~2016,~~2021, the Company incurred ~~$826~~$846 and ~~$2,249,~~$1,688, 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 ~~$324~~$337 and ~~$956,~~$693, respectively, was related to MC Management overhead and salary allocation and paid directly to MC Management. As of ~~September~~June 30, ~~2017~~2022 and December 31, ~~2016, $295~~2021, $303 and ~~$330,~~$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 ~~will have a~~has the right to use the “Monroe Capital” name at no cost, subject to certain conditions, for so long as ~~the Advisor~~MC Advisors or one of its affiliates remains its investment ~~advisor.~~adviser. Other than with respect to this limited license, the Company has no legal right to the “Monroe Capital” ~~name.~~

name or logo.

As of ~~September~~both June 30, ~~2017~~2022 and December 31, ~~2016,~~2021, the Company had accounts payable to members of the Board of ~~$37 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 prior to its dissolution from the asset coverage test under the 1940 Act. As of June 30, 2022 and December 31, 2021, the Company’s asset coverage ratio based on aggregate borrowings outstanding was 173% and 189%, respectively.
Revolving Credit ~~Facility:~~Facility ~~As of September 30, 2017, the~~: The Company ~~had U.S. dollar borrowings of $58,200 and non-U.S. dollar borrowings denominated in Great Britain pounds of £1,800 ($2,412 in U.S. dollars) under its~~has a $255,000 revolving credit facility with ING Capital LLC, as ~~agent, to finance the purchase of the Company’s assets.~~agent. The borrowings denominated in Great Britain pounds 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 change in unrealized gain (loss) on foreign currency borrowings in the Company’s consolidated statements of operations. The borrowings denominated in Great Britain pounds may be positively or negatively affected by movements in the rate of exchange between the U.S. dollar and the Great Britain pound. These movements are beyond the control of the Company and cannot be predicted. As of December 31, 2016, the Company had U.S. dollar borrowings of $129,000 outstanding under the revolving credit ~~facility. As of September 30, 2017, the maximum amount the Company was able to borrow was $200,000 and this borrowing can be increased to $300,000 pursuant to~~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 ~~200%~~150% asset coverage, as defined by the 1940 Act). On February 22, 2017, the Company closed a $40,000 upsize to the revolving credit facility, bringing the maximum amount the Company is able to borrow from $160,000 to the now current maximum amount of $200,000, in accordance with the facility’s accordion feature. The maturity date on the facility is December 14, 2020.
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. The Company’s ability~~SBIC, prior to borrow under the revolving credit facility is subject to availability under a defined borrowing base, which varies based on portfolio characteristics and certain eligibility criteria and concentration limits, as well as required valuation methodologies.its dissolution. The Company may make draws under the revolving credit facility to make or purchase additional investments through ~~December 2019~~March 1, 2023 and for general working capital purposes until March 1, 2024, the maturity date of the revolving credit facility. Borrowings under the revolving credit facility bear interest, at the Company’s election, at an annual rate of LIBOR (one-month, two-month, three-month or six-month at our discretion based on the term of the borrowing) plus 2.75% or at a daily rate equal to 2.00% per annum plus the greater of the prime interest rate, the federal funds rate plus 0.5% or LIBOR plus 1.0%. The LIBOR rate on the revolving credit facility was reduced to LIBOR plus 2.75% from LIBOR plus 3.00% in conjunction with the Company’s capital raise on June 9, 2017, as net worth (excluding investments in MRCC SBIC) exceeded $225,000. In addition to the stated interest rate on borrowings under the revolving credit facility, the Company is required to pay a 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 65% of the then available maximum borrowing or a 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 65% of the then available maximum borrowing. As of September 30, 2017 and December 31, 2016, the outstanding borrowings were accruing at a weighted average interest rate of 4.0% and 3.8%, respectively. The weighted average interest rate of the revolving credit facility borrowings (excluding debt issuance costs) for the three and nine months ended September 30, 2017 was 4.1% and 4.1%, respectively. The weighted average fee rate on the unused portion of the revolving credit facility for the three and nine months ended September 30, 2017 was 0.5% and 0.5%, respectively. The weighted average interest rate of the revolving credit facility borrowings (excluding debt issuance costs) for the three and nine months ended September 30, 2016 was 3.7% and 3.6%, respectively. The weighted average fee rate on the unused portion of the revolving credit facility for the three and nine months ended September 30, 2016 was 0.5% and 0.5%, respectively.
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 ~~70%~~72.5% of the fair market value of its portfolio company investments depending on the type of ~~the~~ 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) a minimum consolidated total net assets at least equal to ~~the greater of (a) 40% of the consolidated total assets on the last day of each quarter or (b) $120,000~~$150,000 plus 65% of the net proceeds to the Company from sales of its equity securities after ~~December 14, 2015;~~March 1, 2019; (2) a ratio of total assets (less total liabilities other than indebtedness) to total indebtedness of not less than ~~2.1 times;~~1.5 to 1; and (3) a senior debt coverage ratio ~~of earnings before interest and taxes to interest expense~~ of at least ~~2.5 times.~~2 to 1. The revolving credit facility also requires

Table of Contents

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 ~~our~~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 June 30, 2022, the Company had U.S. dollar borrowings of $190,000. As of December 31, 2021, the Company had U.S. dollar borrowings of $146,400 and non-U.S. dollar borrowings denominated in Great Britain pounds of £3,433 ($4,645 in U.S. dollars) under the revolving credit facility. Any borrowings denominated in a foreign currency may be positively or negatively affected by movements in the rate of exchange between the U.S. dollar and the respective foreign currency. These movements are beyond the control of the Company and cannot be predicted. Borrowings denominated in 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 zero and $157 for the three and six months ended June 30, 2022, and ($77) and ($259) for the three and six months ended June 30, 2021, respectively. During the six months ended June 30, 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 other transactions on the Company’s consolidated statements of operations of ($11) for the six months ended June 30, 2022. There were no repayments of foreign currency borrowings for the six months ended June 30, 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 June 30, 2022 and December 31, 2021, the outstanding borrowings were accruing at a weighted average interest rate of 4.2% and 3.1%, respectively.

2026 Notes: As of both June 30, 2022 and December 31, 2021, the Company 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 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 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,~~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 $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 ~~wholly-owned subsidiary,~~consolidated statements of operations. MRCC SBIC received ~~a license~~approval 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~~surrender its SBIC license ~~allows MRCC SBIC to obtain leverage by issuing SBA-guaranteed debentures, subject to the issuance of a leverage commitment by the SBA~~ and other customary procedures. SBA-guaranteed debentures are non-recourse, interest only debentures with interest payable semi-annually and have a ten year maturity. The principal amount of SBA-guaranteed debentures is not required to be paid prior to maturity but may be prepaid at any time without penalty. The interest rate of SBA-guaranteed 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.

SBA regulations currently limit the amount that an individual SBIC may borrow to a maximum of $150,000 when it has at least $75,000 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 historically limited a related group of SBICs (commonly referred to as a “family of funds”) to a maximum of $225,000 in total borrowings. On December 18, 2015, this family of funds limitation was raised to $350,000 in total borrowings. As the Company has other affiliated SBICs already in operation,March 31, 2022, MRCC SBIC was ~~historically limited to a maximum~~dissolved.

Table of $40,000 in borrowings. Pursuant to the increase in the family of funds limitation, the Company submitted a commitment application to the SBA and on April 13, 2016, MRCC SBIC was approved by the SBA for an additional $75,000 in SBA-guaranteed debentures, for a total of $115,000 in available debentures.Contents

As of ~~September~~June 30, ~~2017,~~2022 and December 31, 2021, MRCC SBIC had zero and $57,624, respectively, in leverageable capital and $92,100 in SBA-guaranteed debentures outstanding. As of December 31, 2016, MRCC SBIC had $41,000 in leverageable capital and $51,500 in SBA-guaranteed debentures outstanding. As of September 30, 2017, the Company has made all required leverageable capital contributions to MRCC SBIC in order to access the remaining $22,900 in available SBA-guaranteed debentures.

~~As of September 30, 2017, MRCC SBIC had~~ the following ~~SBA-guaranteed~~SBA debentures ~~outstanding (dollars in thousands):~~outstanding:


Maturity Date	Interest Rate			Amount		Interest Rate			June 30, 2022		December 31, 2021
September 2024		3.4	%	$	12,920		3.4	%	$	—	$	2,920
March 2025		3.3	%		14,800		3.3	%		—		14,800
March 2025		2.9	%		7,080		2.9	%		—		7,080
September 2025		3.6	%		5,200
March 2027		3.5	%		20,000
September 2027		3.2	%		32,100		3.2	%		—		32,100
Total				$	92,100				$	—	$	56,900

~~As of December 31, 2016, MRCC SBIC had the following SBA-guaranteed debentures outstanding (dollars in thousands):~~

Table of Contents

Certain information related to the Company’s foreign currency forward contracts is presented below as of June 30, 2022 and December 31, 2021.

As of June 30, 2022

Gross

Gross

Amount of

Amount of


Notional Amount

Settlement

Unrealized

Unrealized

Description

to be Sold

Date

Gain

Loss

Balance Sheet location of Net Amounts
Foreign currency forward contract

AUD
138

7/18/2022

$
11

$
—

Unrealized gain on foreign currency forward contracts
Foreign currency forward contract

AUD
140

8/16/2022

11

—

Unrealized gain on foreign currency forward contracts
Foreign currency forward contract

AUD
153

9/16/2022

13

—

Unrealized gain on foreign currency forward contracts
Foreign currency forward contract

AUD
152

10/19/2022

12

—

Unrealized gain on foreign currency forward contracts
Foreign currency forward contract

AUD
136

11/16/2022

11

—

Unrealized gain on foreign currency forward contracts
Foreign currency forward contract

AUD
142

12/16/2022

11

—

Unrealized gain on foreign currency forward contracts
Foreign currency forward contract

AUD
153

1/18/2023

13

—

Unrealized gain on foreign currency forward contracts
Foreign currency forward contract

AUD
140

2/16/2023

11

—

Unrealized gain on foreign currency forward contracts
Foreign currency forward contract

AUD
132

3/16/2023

11

—

Unrealized gain on foreign currency forward contracts
Foreign currency forward contract

AUD
160

4/20/2023

13

—

Unrealized gain on foreign currency forward contracts
Foreign currency forward contract

AUD
121

5/16/2023

9

—

Unrealized gain on foreign currency forward contracts
Foreign currency forward contract

AUD
156

6/19/2023

13

—

Unrealized gain on foreign currency forward contracts
Foreign currency forward contract

AUD
138

7/18/2023

11

—

Unrealized gain on foreign currency forward contracts
Foreign currency forward contract

AUD
146

8/16/2023

12

—

Unrealized gain on foreign currency forward contracts
Foreign currency forward contract

AUD
146

9/18/2023

12

—

Unrealized gain on foreign currency forward contracts
Foreign currency forward contract

AUD
148

10/18/2023

12

—

Unrealized gain on foreign currency forward contracts
Foreign currency forward contract

AUD
140

11/16/2023

11

—

Unrealized gain on foreign currency forward contracts
Foreign currency forward contract

AUD
142

12/18/2023

11

—

Unrealized gain on foreign currency forward contracts
Foreign currency forward contract

AUD
150

1/17/2024

12

—

Unrealized gain on foreign currency forward contracts
Foreign currency forward contract

AUD
143

2/16/2024

11

—

Unrealized gain on foreign currency forward contracts
Foreign currency forward contract

AUD
15,410

3/18/2024

1,190

—

Unrealized gain on foreign currency forward contracts

$
1,421

$
—

Table of Contents

As of December 31, 2021

Gross

Gross

Notional

Amount of

Amount of

Amount to be

Settlement

Unrealized

Unrealized

Description

  Sold

Date

Gain

Loss

Balance Sheet location of Net Amounts
Foreign currency forward contract

£

82

1/3/2022

$
—

$
(10)

Unrealized gain on foreign currency forward contracts
Foreign currency forward contract

£

79

4/4/2022

—

(10)

Unrealized gain on foreign currency forward contracts
Foreign currency forward contract

£

29

5/6/2022

—

(3)

Unrealized gain on foreign currency forward contracts
Foreign currency forward contract

AUD

156

1/19/2022

8

—

Unrealized gain on foreign currency forward contracts
Foreign currency forward contract

AUD

136

2/16/2022

7

—

Unrealized gain on foreign currency forward contracts
Foreign currency forward contract

AUD

132

3/16/2022

6

—

Unrealized gain on foreign currency forward contracts
Foreign currency forward contract

AUD

146

4/19/2022

7

—

Unrealized gain on foreign currency forward contracts
Foreign currency forward contract

AUD

138

5/17/2022

7

—

Unrealized gain on foreign currency forward contracts
Foreign currency forward contract

AUD

153

6/17/2022

7

—

Unrealized gain on foreign currency forward contracts
Foreign currency forward contract

AUD

138

7/18/2022

7

—

Unrealized gain on foreign currency forward contracts
Foreign currency forward contract

AUD

140

8/16/2022

7

—

Unrealized gain on foreign currency forward contracts
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 and six months ended June 30, 2022, the Company recognized net change in unrealized gain (loss) on foreign currency forward contracts of $1,056 and $640, respectively. For the three and six months ended June 30, 2022, the Company recognized net realized gain (loss) on foreign currency forward contracts of $19 and $31, respectively.
For the three and six months ended June 30, 2021, the Company recognized net change in unrealized gain (loss) on foreign currency forward contracts of $112 and $446, respectively. For the three and six months ended June 30, 2021, the Company recognized net realized gain (loss) on foreign currency forward contracts of ($37) and ($75), respectively.

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Note 9. Distributions
The Company’s distributions are recorded on the record date. The following table summarizes distributions declared during the ~~nine~~six months ended ~~September~~June 30, ~~2017~~2022 and ~~2016:~~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
Nine months ended September 30, 2017:
March 7, 2017 March 17, 2017 March 31, 2017 $ 0.35 $ 5,549 16,217 $ 254 — $ —
May 31, 2017 June 15, 2017 June 30, 2017 0.35 6,807 17,932 271 — —
August 31, 2017 September 15, 2017 September 29, 2017 0.35 7,084 — — 6,508 93
Total distributions declared $ 1.05 $ 19,440 34,149 $ 525 6,508 $ 93

Nine months ended September 30, 2016:
March 4, 2016 March 15, 2016 March 31, 2016 $ 0.35 $ 4,553 — $ — 20,144 $ 277
June 1, 2016 June 15, 2016 June 30, 2016 0.35 4,553 — — 18,518 275
August 30, 2016 September 15, 2016 September 30, 2016 0.35 5,730 4,493 70 — —
Total distributions declared $ 1.05 $ 14,836 4,493 $ 70 38,662 $ 552














DRIP Shares


Amount

DRIP

DRIP

Repurchased

Cost of
Date

Record

Payment

Per

Cash

Shares

Shares

in the Open

DRIP Shares
Declared

Date

Date

Share

Distribution

Issued

Value

Market

Repurchased
Six months ended June 30, 2022:

March 2, 2022

March 16, 2022

March 31, 2022

$
0.25

$
5,417

—

$
—

25,229

$
276
June 1, 2022

June 15, 2022

June 30, 2022

0.25

5,416

—

—

29,655

280
Total distributions declared

$
0.50

$
10,833

—

$
—

54,884

$
556

Six months ended June 30, 2021:
















March 2, 2021

March 16, 2021

March 31, 2021

$
0.25

$
5,326

—

$
—

35,611

$
364
June 2, 2021

June 16, 2021

June 30, 2021

0.25

5,386

—

—

31,277

343
Total distributions declared

$
0.50

$
10,712

—

$
—

66,888

$
707

Note 9.10. Stock ~~Activity~~
Issuances and Repurchases
Stock Issuances: On July 1, 2016, the Company amended the ATM securities offering program with MLV & Co, LLC (“MLV”) and JMP Securities LLC to replace MLV with FBR Capital Markets & Co. (“FBR”), an affiliate of MLV (the “Prior ATM Program”). On May 12, 2017, the Company entered into ~~new~~at-the-market (“ATM”) equity distribution agreements with each of JMP Securities LLC (“JMP”) and FBR ~~and JMP that reference the Company’s current registration statement~~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 ~~Prior~~ ATM Program remain ~~unchanged under~~unchanged. There were no stock issuances through the ATM ~~Program.~~Program during the six months ended June 30, 2022. During the ~~nine~~six months ended ~~September~~June 30, ~~2017,~~2021, the Company sold ~~173,939~~240,000 shares at an average price of ~~$15.71~~$11.43 per share for gross proceeds of ~~$2,732 under the Prior ATM Program and no shares were sold~~$2,743 under the ATM ~~Program.~~program. Aggregate ~~underwriters’~~underwriter’s discounts and commissions were $41 and offering costs were ~~$23,~~$12, resulting in net proceeds of approximately ~~$2,668. There were no stock issuances under the Prior ATM Program during the nine months ended September 30, 2016.~~$2,690.

On June 9, 2017, the Company closed a public offering of 3,000,000 shares of its common stock at a public offering price of $15.00 per share, raising approximately $45,000 in gross proceeds. On June 14, 2017, pursuant to the underwriters’ exercise of the over-allotment option, the Company sold an additional 450,000 shares of its common stock, at a public offering price of $15.00 per share, and additional $6,750 in gross proceeds for a total of $51,750. Aggregate underwriters’ discounts and commissions were $2,070 and offering costs were $127, resulting in net proceeds of approximately $49,553.
On July 25, 2016, the Company closed a public offering of 3,100,000 shares of common stock at a public offering price of $15.50 per share, raising approximately $48,050 in gross proceeds. On August 3, 2016, the Company sold an additional 465,000 shares of common stock at a public offering price of $15.50 per share, raising approximately $7,208 in gross proceeds pursuant to the underwriters’ exercise of the over-allotment option. Aggregate underwriters’ discounts and commissions were $2,210 and offering costs were $528, resulting in net proceeds of $52,520.
Note ~~10.~~11. Commitments and Contingencies
Commitments: As of ~~September~~June 30, ~~2017~~2022 and December 31, ~~2016,~~2021, the Company had ~~$33,110~~$54,715 and ~~$37,716,~~$55,483, respectively, in outstanding commitments to fund investments under undrawn revolvers, capital expenditure loans, ~~and~~ delayed draw ~~commitments.~~
commitments and subscription agreements (excluding SLF). As described in Note 3, the Company had unfunded commitments of $7,350 and $7,850, to SLF as of June 30, 2022 and December 31, 2021, respectively, 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 June 30, 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.
34
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.

Table of Contents

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 ~~11.~~12. Financial Highlights
The following is a schedule of financial highlights for the ~~nine~~six months ended ~~September~~June 30, ~~2017~~2022 and ~~2016:~~2021:

September 30, 2017 September 30, 2016
Per share data:
Net asset value at beginning of period $ 14.52 $ 14.19
Net investment income⁽¹⁾ 1.05 1.24
Net gain (loss) on investments, secured borrowings and foreign currency borrowings⁽¹⁾ (0.50 ) (0.03 )
Net increase in net assets from operations⁽¹⁾ 0.55 1.21
Stockholder distributions⁽²⁾ (1.05 ) (1.05 )
Other⁽³⁾ (0.01 ) 0.07
Net asset value at end of period $ 14.01 $ 14.42

Net assets at end of period $ 283,542 $ 239,087
Shares outstanding at end of period 20,239,957 16,577,500
Per share market value at end of period $ 14.31 $ 15.73
Total return based on market value⁽⁴⁾ (0.29 )% 28.98 %
Total return based on average net asset value⁽⁵⁾ 3.78 % 8.41 %
Ratio/Supplemental data:
Ratio of net investment income to average net assets⁽⁶⁾ 10.24 % 12.15 %
Ratio of total expenses to average net assets^{(6) (7)} 9.01 % 10.40 %
Average debt outstanding $ 177,739 $ 153,163
Average debt outstanding per share $ 9.83 $ 11.05
Portfolio turnover⁽⁸⁾ 33.83 % 17.79 %


June 30, 2022

June 30, 2021

Per share data:





Net asset value at beginning of period

$
11.51

$
11.00

Net investment income ⁽¹⁾

0.48

0.49

Net gain (loss) ⁽¹⁾

(0.78)

0.37

Net increase (decrease) in net assets resulting from operations ⁽¹⁾

(0.30)

0.86

Stockholder distributions - income ⁽²⁾

(0.50)

(0.50)

Net asset value at end of period

$
10.71

$
11.36

Net assets at end of period

$
232,121

$
244,797

Shares outstanding at end of period

21,666,340

21,543,540

Per share market value at end of period

$
9.03

$
10.73

Total return based on market value ⁽³⁾

(15.50)
%

40.00
%
Total return based on average net asset value ⁽⁴⁾

(2.69)
%

7.71
%
Ratio/Supplemental data:





Ratio of net investment income to average net assets ⁽⁵⁾

8.92
%

8.95
%
Ratio of total expenses, net of base management fee and incentive fee waivers, to average net assets ^{(5) (6)}

12.30
%

12.68
%
Portfolio turnover ⁽⁷⁾

7.82
%

18.69
%
(1) Calculated using the weighted average shares outstanding during the ~~period.~~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 ~~September~~June 30, ~~2017~~2022 and ~~2016,~~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) Includes the effect of share issuances above (below) net asset value and the impact of different share amounts used in calculating per share data as a result of calculating certain per share data based on weighted average shares outstanding during the period and certain per share data based on shares outstanding as of a period end or transaction date.
~~(4)~~ 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) ~~(5)~~ 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) 35
~~(6)~~ Ratios are annualized. Incentive fees included within the ratio are not annualized.
(6) ~~(7)~~ The following is a schedule of supplemental ratios for the ~~nine~~six months ended ~~September~~June 30, ~~2017~~2022 and ~~2016.~~2021. These ratios have been annualized unless otherwise noted.

September 30,
2017 September 30,
2016
Ratio of interest and other debt financing expenses to average net assets 3.11 % 3.33 %
Ratio of total expenses (without incentive fees) to average net assets 7.40 % 8.26 %
Ratio of incentive fees, net of incentive fee waiver, to average net assets (not annualized)⁽⁹⁾ 1.61 % 2.14 %

Table of Contents

June 30, 2022

June 30, 2021

Ratio of total investment income to average net assets

21.22
%
21.63
%
Ratio of interest and other debt financing expenses to average net assets

6.41
%
7.01
%
Ratio of total expenses (without base management fee waivers and incentive fees) to average net assets

12.05
%
12.60
%
Ratio of incentive fees, net of incentive fee waivers, to average net assets ^{(7) (8)}

0.27
%
0.08
%
(7) ~~(8)~~ Ratios are not annualized.
(8) ~~(9)~~ The ratio of waived incentive fees to average net assets was ~~0.10%~~0.22% and ~~zero~~0.44% for ~~nine~~the six months ended ~~September~~June 30, ~~2017~~2022 and ~~2016,~~2021, respectively.

~~Note 12. Subsequent Events~~72

~~On November 1, 2017, the Company announced the formation~~Table of a joint venture with NLV Financial Corporation (“NLV”), the parent of National Life Insurance Company, to create MRCC Senior Loan Fund I, LLC (the “Senior Loan Fund”). The Senior Loan Fund is expected to invest primarily in senior secured loans to middle market companies in the United States. The Company and NLV have each initially committed $50,000 of capital to the joint venture. In addition, the Senior Loan Fund intends to obtain third party financing that is expected to allow the joint venture to access market levels of leverage.Contents

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.~~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, ~~2016,~~2021, filed with the U.S. Securities and Exchange Commission (“SEC”) on March ~~7, 2017.~~3, 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 ~~prospective~~ 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 ~~prospective~~ portfolio companies to achieve their objectives;
·● the use of borrowed money to finance a portion of our ~~expected financings and~~ investments;
·● the adequacy of our ~~cash resources~~financing sources and working capital;
36
73

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·●

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

●

the ability of ~~our Monroe Capital BDC~~MC Advisors ~~LLC (“MC Advisors”)~~ to locate suitable investments for us and to monitor and administer our investments; ~~and~~

·●

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,” “expects”~~“targets” and similar expressions to identify forward-looking statements. The ~~forward looking~~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~~I-Item 1A. Risk Factors” in our Annual Report and “Part ~~II—Item~~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 ~~statement~~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 ~~may file~~ with the SEC, including Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and ~~current reports~~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 ~~treated~~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 were incorporated under the Maryland General Corporation Law on February 9, 2011.~~ 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 ~~in senior, unitranche, junior secured debt and other investments~~will generally ~~will~~ range between $2.0 million and ~~$18.0~~$25.0 million each, although this investment size may vary proportionately with the size of our capital base. As of ~~September~~June 30, ~~2017,~~2022, our portfolio included approximately ~~76.1%~~77.5% senior secured ~~debt, 10.4%~~loans, 6.3% unitranche ~~debt, 8.9%~~secured loans, 3.7% junior secured ~~debt~~loans and ~~4.6%~~12.5% equity securities, compared to December 31, ~~2016,~~2021, when our portfolio included approximately ~~66.7%~~75.4% senior secured ~~debt, 12.5%~~loans, 9.2% unitranche ~~debt, 14.4%~~secured loans, 2.6% junior secured ~~debt~~loans and ~~6.4%~~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

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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. ~~As of September 30, 2017,~~ MRCC SBIC ~~had $57.6 million in leverageable capital~~received approval from the SBA to surrender its SBIC license and ~~$92.1 million in SBA-guaranteed debentures outstanding.~~on March 31, 2022, MRCC SBIC was dissolved. See “SBA Debentures” below for more information.

On June 9, 2017, we closed a public offering of 3,000,000 shares of our common stock at a public offering price of $15.00 per share, raising approximately $45.0 million in gross proceeds. On June 14, 2017, pursuant to the underwriters’ exercise of the over-allotment option, we sold an additional 450,000 shares of our common stock, at a public offering price of $15.00 per share, and additional $6.8 million in gross proceeds for a total of $51.8 million. Aggregate underwriters’ discounts and commissions were $2.1 and offering costs were $0.1 million, resulting in net proceeds of approximately $49.6 million.

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 ~~junior~~secured, unitranche secured or ~~unitranche~~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 ~~investment~~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 isare recorded on the accrual basis to the extent we expect to collect such amounts. ~~In addition, we also generate dividend~~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 ~~interests in accordance with our revenue recognition policies.~~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~~investment advisory and management agreement (the “Investment Advisory ~~and Management Agreement (management and incentive fees)~~Agreement”), ~~and~~ the payment of fees to ~~Monroe Capital~~MC Management ~~Advisors, LLC (“MC Management”)~~ for our allocable portion of overhead and other expenses under the ~~Administration Agreement~~administration agreement (the “Administration Agreement”) and other operating costs. See Note 6 to our consolidated financial statements and “Related Party Transactions” below for additional

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information on our Investment Advisory ~~and Management~~ Agreement and Administration ~~agreement.~~Agreement. Our expenses also include interest expense on our ~~revolving credit facility, our SBA-guaranteed debentures and our secured borrowings.~~various forms of indebtedness. We bear all other out-of-pocket costs and expenses of our operations and transactions.

Net gain (loss) ~~on investments, secured borrowings and foreign currency borrowings~~

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, ~~secured borrowings, and~~ foreign currency ~~borrowings~~forward contracts, foreign currency and other transactions within net change in unrealized gain (loss) on ~~investments, secured borrowings, and foreign currency borrowings in~~ the consolidated statements of operations.

Portfolio and Investment Activity

During the three months ended ~~September~~June 30, ~~2017,~~2022, we invested ~~$29.7~~$11.6 million in ~~six~~four new portfolio companies and ~~$24.5~~$9.7 million in 20 existing portfolio companies and had ~~$69.0~~$19.5 million in aggregate amount of sales and principal repayments, resulting in net ~~repayments~~purchases of ~~$14.8~~$1.8 million for the period.

During the ~~nine~~six months ended ~~September~~June 30, ~~2017,~~2022, we invested ~~$125.0~~$18.3 million in 16seven new portfolio companies and ~~$44.1~~$24.6 million in 2629 existing portfolio companies and had ~~$144.4~~$55.7 million in aggregate amount of sales and principal repayments, resulting in net ~~investments~~sales and repayments of ~~$24.7~~$12.8 million for the period.

During the three months ended ~~September~~June 30, ~~2016,~~2021, we invested ~~$44.3~~$40.9 million in ~~eight~~11 new portfolio companies and ~~$5.5~~$14.9 million in ~~seven~~12 existing portfolio companies and had ~~$15.1~~$55.4 million in aggregate amount of sales and principal repayments, resulting in net ~~investments~~sales and repayments of ~~$34.7~~$0.4 million for the period.

During the ~~nine~~six months ended ~~September~~June 30, ~~2016,~~2021, we invested ~~$61.0~~$62.4 million in 1216 new portfolio companies and ~~$34.7~~$37.2 million in 1624 existing portfolio companies and had ~~$62.5~~$131.3 million in aggregate amount of sales and principal repayments, resulting in net ~~investments~~sales and repayments of ~~$33.2~~$31.7 million for the period.

The following ~~tables show the composition of the investment~~table shows portfolio ~~(in thousands) and associated~~ yield ~~data:~~by security type:

September 30, 2017
Fair Value
Percentage
of
Total Portfolio
Weighted Average
Annualized
Contractual
Coupon Yield⁽¹⁾ Weighted Average
Annualized
Effective Yield⁽²⁾
Senior secured loans $ 327,984 76.1 % 9.5 % 9.5 %
Unitranche loans 44,592 10.4 9.7 11.1
Junior secured loans 38,555 8.9 9.4 9.4
Equity securities 19,966 4.6 10.8 10.8
Total $ 431,097 100.0 % 9.8 % 9.9 %

June 30, 2022

December 31, 2021

Weighted Average

Weighted

Weighted Average

Weighted

Annualized

Average

Annualized

Average

Contractual

Annualized

Contractual

Annualized

Coupon

Effective

Coupon

Effective


Yield ⁽¹⁾

Yield ⁽²⁾

Yield ⁽¹⁾

Yield ⁽²⁾

Senior secured loans

9.0
%
9.0
%
8.5
%
8.5
%
Unitranche secured loans

4.7

5.0

5.1

5.4

Junior secured loans

10.4

10.4

10.1

10.1

Preferred equity securities

2.7

2.7

3.0

3.0

Total

8.4
%
8.5
%
7.9
%
8.0
%
38

December 31, 2016
Fair Value
Percentage
of
Total Portfolio
Weighted Average
Annualized
Contractual
Coupon Yield⁽¹⁾ Weighted Average
Annualized
Effective Yield⁽²⁾
Senior secured loans $ 275,253 66.7 % 9.2 % 9.2 %
Unitranche loans 51,638 12.5 10.9 11.4
Junior secured loans 59,366 14.4 9.7 9.7
Equity securities 26,663 6.4 10.8 10.8
Total $ 412,920 100.0 % 9.5 % 9.6 %
(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 ~~investment~~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 9.5% for junior secured loans and 8.4% in total as of June 30, 2022. The weighted average contractual coupon yield including debt investments acquired for no cost in a restructuring on non-accrual status was 9.0% for junior secured loans and 7.9% in total as of December 31, 2021.

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(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 9.5% for junior secured loans and 8.5% in total as of June 30, 2022. The weighted average effective yield including debt investments acquired for no cost in a restructuring on non-accrual status was 9.0% for junior secured loans and 7.9% in total as of December 31, 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 ~~investors.~~stockholders.

The portfolio weighted average contractual coupon yield and weighted average effective yield increased slightly during the three and nine months ended September 30, 2017 and the portfolio mix continued to shift toward senior secured loans.

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

June 30, 2022

December 31, 2021

Fair Value:









Senior secured loans

$
415,244

77.5
%
$
423,700

75.4
%
Unitranche secured loans

34,114

6.3

51,494

9.2

Junior secured loans

19,745

3.7

14,364

2.6

LLC equity interest in SLF

37,551

7.0

41,125

7.3

Equity securities

29,385

5.5

31,010

5.5

Total

$
536,039

100.0
%
$
561,693

100.0
%

Our portfolio composition remained relatively consistent with December 31, 2021. Our effective yields increased from December 31, 2021, driven primarily by increases in LIBOR and SOFR rates. The majority of our loans surpassed their interest rate floors near the end of the three months ended June 30, 2022.

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The following table shows our portfolio composition by industry ~~grouping at fair value (dollars in~~(in thousands):

	September 30, 2017					December 31, 2016
	Investments at Fair Value		Percentage of Total Portfolio			Investments at Fair Value		Percentage of Total Portfolio

											June 30, 2022				December 31, 2021
Fair Value:
Aerospace & Defense	$	5,028		1.2	%	$	10,601		2.6	%	$	7,873	1.5	%	$	7,972	1.4	%
Automotive		—		—			7,514		1.8			20,074	3.8			21,556	3.8
Banking, Finance, Insurance & Real Estate		46,912		10.9			37,130		9.0
Banking												15,230	2.8			6,712	1.2
Beverage, Food & Tobacco		17,788		4.1			16,794		4.1			13,997	2.6			19,133	3.4
Capital Equipment												13,914	2.6			12,839	2.3
Chemicals, Plastics & Rubber		8,864		2.1			4,040		1.0			4,530	0.8			10,163	1.8
Construction & Building		17,933		4.2			18,602		4.5			17,288	3.2			16,636	3.0
Consumer Goods: Durable		11,952		2.8			3,620		0.9			9,592	1.8			9,734	1.7
Consumer Goods: Non-Durable		19,462		4.5			32,000		7.7			3,531	0.7			8,460	1.5
Containers, Packaging & Glass		4,919		1.1			3,663		0.9
Energy: Oil & Gas		2,346		0.5			7,803		1.9
Environmental Industries		3,644		0.8			3,768		0.9			6,328	1.2			17,693	3.2
FIRE: Finance												15,554	2.9			15,681	2.8
FIRE: Real Estate												78,839	14.7			76,698	13.6
Healthcare & Pharmaceuticals		66,275		15.4			56,435		13.7			60,218	11.2			53,179	9.5
High Tech Industries		36,085		8.4			18,899		4.6			47,628	8.9			54,085	9.6
Hotels, Gaming & Leisure		42,738		9.9			38,010		9.2			2,658	0.5			2,706	0.5
Investment Funds & Vehicles												37,551	7.0			41,125	7.3
Media: Advertising, Printing & Publishing		13,356		3.1			11,742		2.8			15,401	2.9			16,794	3.0
Media: Broadcasting & Subscription		16,466		3.8			18,046		4.4			2,594	0.5			2,477	0.5
Media: Diversified & Production		5,006		1.2			4,938		1.2			27,577	5.1			24,220	4.3
Metals & Mining		—		—			5,268		1.3
Retail		40,740		9.5			38,147		9.2			10,721	2.0			11,478	2.0
Services: Business		27,264		6.3			40,164		9.7			57,439	10.7			71,540	12.7
Services: Consumer		21,170		4.9			24,807		6.0			43,524	8.1			39,248	7.0
Telecommunications		3,333		0.8			3,430		0.8			9,143	1.7			5,988	1.1
Utilities: Electric		2,801		0.6			2,999		0.7
Wholesale		17,015		3.9			4,500		1.1			14,835	2.8			15,576	2.8
Total	$	431,097		100.0	%	$	412,920		100.0	%	$	536,039	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. ~~MC Advisors also monitors our investment exposure using a proprietary trend analysis tool.~~ When necessary, MC Advisors will update our internal risk ratings, borrowing base criteria and covenant compliance reports.

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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, and our board of directors (the “Board”) reviews and affirms such ratings. A definition of the~~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). ~~For grade 4 investments, we intend to increase monitoring of the issuer.~~

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 and we will reduce the fair market value of the loan to the amount we expect to recover.~~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 ~~applicable analyst,~~PMG, in consultation with ~~a member of~~ 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 ~~required~~ amendments and waivers that may be required. In the event of a dramatic deterioration of a credit, MC Advisors ~~intends to~~and the PMG will form a team or engage outside advisors to analyze, evaluate and take further steps to preserve ~~its~~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. ~~Several of Monroe Capital’s professionals are experienced~~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 ~~September~~June 30, ~~2017 (dollars in~~2022 (in thousands):

Investment Performance Rating	Investments at Fair Value		Percentage of Total Investments

						Investments at		Percentage of
Investment Performance Risk Rating						Fair Value		Total Investments
1	$	—		—	%	$	1,220	0.2	%
2		350,064		81.2			445,989	83.2
3		62,504		14.5			77,176	14.4
4		18,529		4.3			11,139	2.1
5		—		—			515	0.1
Total	$	431,097		100.0	%	$	536,039	100.0	%

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The following table shows the distribution of our investments on the 1 to 5 investment performance risk rating scale as of December 31, ~~2016 (dollars in~~2021 (in thousands):

Investment Performance Rating	Investments at Fair Value		Percentage of Total Investments

						Investments at		Percentage of
Investment Performance Risk Rating						Fair Value		Total Investments
1	$	—		—	%	$	1,759	0.3	%
2		360,338		87.3			465,224	82.9
3		40,192		9.7			75,942	13.5
4		12,390		3.0			18,136	3.2
5		—		—			632	0.1
Total	$	412,920		100.0	%	$	561,693	100.0	%

As of both June 30, 2022 and December 31, 2021, we had six borrowers with loans or preferred equity securities on non-accrual status (BLST Operating Company, LLC, Curion Holdings, LLC, Education Corporation of America, NECB Collections, LLC, Toojay’s Management, LLC and Vinci Brands LLC), and these investments totaled $10.8 million of fair value, or 2.0% of our total investments at fair value at June 30, 2022 and $14.7 million of fair value, or 2.6% of our total investments at fair 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 ~~(dollars in~~(in thousands):

	Three months ended September 30,
	2017			2016

							Three months ended
							June 30,
							2022		2021
Total investment income	$	13,469		$	11,128		$	12,995	$	12,364
Total expenses		6,582			5,545
Total expenses, net of base management fee and incentive fee waivers								7,579		7,054
Net investment income before income taxes								5,416		5,310
Income taxes, including excise taxes								402		153
Net investment income		6,887			5,583			5,014		5,157
Net realized gain (loss) on investments		(2,900	)		—			20		909
Net realized gain (loss) on secured borrowings		—			—
Net realized gain (loss) on extinguishment of debt								—		—
Net realized gain (loss) on foreign currency forward contracts								19		(37)
Net realized gain (loss) on foreign currency and other transactions								(28)		—
Net realized gain (loss)								11		872
Net change in unrealized gain (loss) on investments		2,398			(1,848	)		(13,444)		5,266
Net change in unrealized gain (loss) on secured borrowings		—			(123	)
Net change in unrealized gain (loss) on foreign currency borrowings		(67	)		—
Net change in unrealized gain (loss) on foreign currency forward contracts								1,056		112
Net change in unrealized gain (loss) on foreign currency and other transactions								(1)		(77)
Net change in unrealized gain (loss)								(12,389)		5,301
Net increase (decrease) in net assets resulting from operations	$	6,318		$	3,612		$	(7,364)	$	11,330

Nine months ended September 30,
2017 2016
Total investment income $ 37,743 $ 33,785
Total expenses, net of incentive fee waiver 18,734 16,656
Net investment income 19,009 17,129
Net realized gain (loss) on investments (572 ) 587
Net realized gain (loss) on secured borrowings 66 —
Net change in unrealized gain (loss) on investments (8,503 ) (847 )
Net change in unrealized gain (loss) on secured borrowings (6 ) (36 )
Net change in unrealized gain (loss) on foreign currency borrowings (83 ) —
Net increase (decrease) in net assets resulting from operations $ 9,911 $ 16,833

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Six months ended

June 30,


2022

2021
Total investment income

$
25,486

$
25,577
Total expenses, net of base management fee and incentive fee waivers

14,653

14,911
Net investment income before income taxes

10,833

10,666
Income taxes, including excise taxes

421

183
Net investment income

10,412

10,483
Net realized gain (loss) on investments

(83)

717
Net realized gain (loss) on extinguishment of debt

(1,039)

(2,774)
Net realized gain (loss) on foreign currency forward contracts

31

(75)
Net realized gain (loss) on foreign currency and other transactions

(37)

(14)
Net realized gain (loss)

(1,128)

(2,146)
Net change in unrealized gain (loss) on investments

(16,605)

9,888
Net change in unrealized gain (loss) on foreign currency forward contracts

640

446
Net change in unrealized gain (loss) on foreign currency and other transactions

164

(286)
Net change in unrealized gain (loss)

(15,801)

10,048
Net increase (decrease) in net assets resulting from operations

$
(6,517)

$
18,385

Investment Income
The composition of our investment income was as follows ~~(dollars in~~(in thousands):

Three months ended September 30,
2017 2016

Three months ended

June 30,


2022

2021
Interest income $ 11,511 $ 8,914

$
9,026

$
8,500
Dividend income 251 1,384
PIK interest income

1,397

1,734
Dividend income ⁽¹⁾

1,048

1,149
Fee income 661 220

1,192

300
Prepayment gain (loss) 514 227

65

416
Accretion of discounts and amortization of premium 532 383
Accretion of discounts and amortization of premiums

267

265
Total investment income $ 13,469 $ 11,128

$
12,995

$
12,364

Nine months ended September 30,
2017 2016
Interest income $ 32,600 $ 26,448
Dividend income 751 4,297
Fee income 1,626 1,067
Prepayment gain (loss) 1,488 836
Accretion of discounts and amortization of premium 1,278 1,137
Total investment income $ 37,743 $ 33,785

Six months ended

June 30,


2022

2021
Interest income

$
18,111

$
17,461
PIK interest income

3,218

3,413
Dividend income ⁽²⁾

2,057

2,411
Fee income

1,192

777
Prepayment gain (loss)

263

898
Accretion of discounts and amortization of premiums

645

617
Total investment income

$
25,486

$
25,577
(1) Includes PIK dividends of $118 and $72, respectively.
(2) Includes PIK dividends of $226 and $134, respectively.
The increase in investment income of ~~$2.3 million and $4.0~~$0.6 million during the three ~~and nine~~ months ended ~~September~~June 30, ~~2017,~~2022, as compared to ~~the~~ three ~~and nine~~ months ended ~~September~~June 30, ~~2016,~~2021, is primarily ~~due to increases~~the result of an increase in ~~average outstanding loan balances~~interest income and ~~increases in prepayment loan activity,~~fee income, partially offset by ~~decreases~~a decrease in prepayment gain (loss) and dividend income. The decrease in ~~dividend~~investment income of $0.1 million during the ~~three and nine~~six months ended ~~September~~June 30, ~~2017,~~2022, as compared to six months ended June 30, 2021, is primarily the ~~prior year periods, is driven by decreases in~~result of lower prepayment gain and dividend income, ~~from our investment~~partially offset by an increase in ~~Rockdale Blackhawk, LLC (“Rockdale”)~~interest and fee income.

Table of $1.1 million and $3.5 million, respectively. While we have received significant equity distributions from our investment in Rockdale in the past, the timing and amount of these distributions are not within our control and are difficult to predict and may fluctuate significantly from period to period.Contents

Operating Expenses

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

	Three months ended September 30,
	2017		2016

					Three months ended
					June 30,
					2022		2021
Interest and other debt financing expenses	$	1,907	$	1,523	$	3,776	$	3,842
Base management fees		1,953		1,594
Incentive fees		1,721		1,223
Base management fees, net of base management fee waivers ⁽¹⁾						2,269		2,327
Incentive fees, net of incentive fee waivers⁽²⁾						657		—
Professional fees		277		237		248		240
Administrative service fees		295		324		303		337
General and administrative expenses		292		265		287		269
Excise taxes		100		342
Directors’ fees		37		37		39		39
Total expenses	$	6,582	$	5,545
Total expenses, net of base management fee and incentive fee waivers					$	7,579	$	7,054

	Nine months ended September 30,
	2017		2016

					Six months ended
					June 30,
					2022		2021
Interest and other debt financing expenses	$	6,101	$	4,987	$	7,698	$	8,295
Base management fees		5,661		4,598
Incentive fees, net of incentive fee waiver		4,221		4,282
Base management fees, net of base management fee waivers ⁽¹⁾						4,557		4,661
Incentive fees, net of incentive fee waivers⁽²⁾						657		193
Professional fees		854		682		528		466
Administrative service fees		926		956		633		693
General and administrative expenses		760		611		506		529
Excise taxes		100		429
Directors’ fees		111		111		74		74
Total expenses, net of incentive fee waiver	$	18,734	$	16,656
Total expenses, net of base management fee and incentive fee waivers					$	14,653	$	14,911

(1)

Base management fees for the three and six months ended June 30, 2022 were $2,269 and $4,612, respectively, and MC Advisors elected to voluntarily waive zero and $55, respectively, of these base management fees. Base management fees for the three and six months ended June 30, 2021 were $2,327 and $4,661, respectively, and MC Advisors did not waive any of these base management fees.

(2)

During the three and six months ended June 30, 2022, MC Advisors waived part one incentive fees (based on net investment income) of $117 and $525, respectively. During the three and six months ended June 30, 2021, MC Advisors waived part one incentive fees (based on net investment income) of $420 and $1,057, respectively. Incentive fees during both the three and six months ended June 30, 2022 and 2021 were not limited by the Incentive Fee Limitation. See Note 6 in our attached consolidated financial statements for additional information on the Incentive Fee Limitation.

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

Three months ended September 30,
2017 2016
Interest expense – revolving credit facility $ 944 $ 935
Interest expense – SBA debentures 683 329
Amortization of deferred financing costs 274 222
Interest expense – secured borrowings — 27
Other 6 10
Total interest and other debt financing expenses $ 1,907 $ 1,523

Three months ended

June 30,


2022

2021

Interest expense - revolving credit facility

$
1,731

$
1,051

Interest expense - 2023 Notes

—

—

Interest expense - 2026 Notes

1,555

1,544

Interest expense - SBA debentures

—

710

Amortization of deferred financing costs

490

537

Total interest and other debt financing expenses

$
3,776

$
3,842

Average debt outstanding

$
314,538

$
320,074

Average stated interest rate

4.1
%

4.1
%

Nine months ended September 30,
2017 2016
Interest expense – revolving credit facility $ 3,674 $ 3,251
Interest expense – SBA debentures 1,607 981
Amortization of deferred financing costs 760 603
Interest expense – secured borrowings 34 99
Other 26 53
Total interest and other debt financing expenses $ 6,101 $ 4,987

Six months ended

June 30,


2022

2021

Interest expense - revolving credit facility

$
3,205

$
2,056

Interest expense - 2023 Notes

—

837

Interest expense - 2026 Notes

3,110

2,676

Interest expense - SBA debentures

292

1,588

Amortization of deferred financing costs

1,091

1,138

Total interest and other debt financing expenses

$
7,698

$
8,295

Average debt outstanding

$
326,426

$
333,291

Average stated interest rate

4.0
%

4.3
%

The increase in expenses of ~~$1.0~~$0.5 million during the three months ended ~~September~~June 30, ~~2017,~~2022, as compared to the three months ended ~~September~~June 30, ~~2016,~~2021, is primarily ~~due to~~the result of an increase in ~~base management fees and part one~~ incentive fees, ~~(based on~~ net ~~investment income) due to~~of fee waivers. The decrease in expenses of $0.3 million during the growth in invested assets and an increase in interest expense primarily as a result of additional SBA-guaranteed debenture borrowings required to support the growth of the portfolio. These increases were partially offset by a decline in the accrual for excise taxes for the threesix months ended ~~September~~June 30, ~~2017~~2022, as compared to the ~~three~~six months ended ~~September~~June 30, ~~2016. For the three months ended September 30, 2017 and 2016, no incentive fees were waived.~~
~~The increase in expenses of $2.1 million during the nine months ended September 30, 2017, as compared to the nine months ended September 30, 2016,~~2021, is primarily ~~due to an increase in base management fees due to~~ the ~~growth in invested assets and an increase~~result of a decrease in interest expense as a result of ~~additional borrowings (including SBA-guaranteed debentures) required to support~~lower average debt outstanding and reductions in the ~~growth of the portfolio. These increases were~~average interest rates on our debt facilities, partially offset by an increase in incentive fees.
Income Taxes, Including Excise Taxes
We have elected to be treated as a ~~decline~~RIC under Subchapter M of the Code and operate in ~~the accrual for excise taxes~~a manner so as to qualify for the ~~nine~~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 both the three and six months ended ~~September~~June 30, ~~2017, as compared to~~2022, we recorded a net expense on the ~~nine~~consolidated statements of operations of $0.1 million for U.S. federal excise tax. For both of the three and six months ended ~~September~~June 30, ~~2016. During~~2021, we recorded a net expense on the ~~nine~~consolidated statements of operations of $0.2 million 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 and six months ended ~~September~~June 30, ~~2017 and 2016, MC Advisors waived part one incentive fees (based on~~2022, we recorded a net ~~investment income)~~tax expense of $0.3 million on the consolidated statements of operations for these subsidiaries. For both the three and six months ended June 30, 2021, we recorded a net tax expense of zero ~~respectively.~~on the consolidated statements of operations for these subsidiaries.
42
83

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Net Realized Gain (Loss) ~~on Investments and Secured Borrowings~~

During the three months ended ~~September~~June 30, ~~2017~~2022 and ~~2016,~~2021, we had sales or dispositions of investments of ~~$12.5~~$5.6 million and ~~zero~~$3.9 million, respectively, resulting in $20 thousand and $0.9 million of net realized gain (loss) on investments, respectively. During the six months ended June 30, 2022 and 2021, we had sales or dispositions of investments of $11.3 million and $12.4 million, respectively, resulting in ($~~2.9)~~0.1) million and $0.7 million of net realized gain (loss) on investments, respectively.

During the three and six months ended June 30, 2022, we recognized a net loss on extinguishment of debt of zero and $1.0 million, respectively 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 and six months ended June 30, 2021, we recognized a net loss on the extinguishment of debt of zero and $2.8 million, respectively, 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.

We may enter into foreign currency forward contracts to reduce our exposure to foreign currency exchange rate fluctuations. During the three months ended June 30, 2022 and 2021, we had $19 thousand and ($37) thousand of net realized gain (loss) on foreign currency forward contracts, respectively. During the six months ended June 30, 2022 and 2021, we had $31 thousand and ($0.1) million of net realized gain (loss) on foreign currency forward contracts, respectively. During the three months ended June 30, 2022 and 2021, we had ($28) thousand and zero of net realized ~~gains (losses)~~gain (loss) on foreign currency and other transactions, respectively. During the six months ended June 30, 2022 and 2021, we had ($37) thousand and ($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 June 30, 2022 and 2021, our investments had ($13.4) million and $5.3 million of net change in unrealized gain (loss), respectively. The net ~~realized~~change in unrealized gain (loss) includes both unrealized gain on investments in our portfolio with mark-to-market gains during the periods and unrealized loss on investments in our portfolio with mark-to-market losses onduring the portfolio were primarily driven by the exit of our investment in Fabco Automotive Corporation (“Fabco”). During the nine months ended September 30, 2017 and 2016, we had sales of investments of $16.7 million and $0.6 million resulting in ($0.6) million and $0.6 million of net realized gains (losses), respectively.

periods.

During the three months ended ~~September~~June 30, ~~2017~~2022, the net change in unrealized loss on investments was primarily attributable to overall market volatility and ~~2016, we had no sales~~spread widening in the loan market, including approximately $3.2 million of ~~secured borrowings. During~~unrealized losses attributable to our investment in SLF. The SLF’s underlying investments are loans to middle-market borrowers that are generally larger than the ~~nine months ended September 30, 2017 and 2016, we had sales~~rest of ~~secured borrowings~~our portfolio, which is focused on lower middle-market companies. These upper middle-market loans held within the SLF experienced higher volatility in valuation than the rest of ~~$1.3~~the portfolio. Additionally, $1.7 million ~~and zero~~in net unrealized loss on investments was attributable to portfolio companies that have underlying credit or fundamental performance concerns resulting in ~~$66 thousand and zero~~a risk rating of Grade 3, 4, or 5 on our investment performance risk rating scale that were still held as of June 30, 2022.

We estimate approximately $4.3 million of the net ~~realized~~unrealized gains ~~respectively.~~

~~Net Change in Unrealized Gain (Loss)~~ on ~~Investments, Secured Borrowings and Foreign Currency Borrowings~~

~~For~~investments during the three months ended ~~September~~June 30, ~~2017~~2021 was attributable to portfolio companies that have underlying credit or fundamental performance concerns resulting in a risk rating of Grade 3, 4 or 5 on our investment performance risk rating scale. Additionally, $0.9 million in net unrealized gain on investments was attributable to broad market movements or improvements in fundamental performance on the remainder of the portfolio. Approximately $0.6 million of these net unrealized gains were attributable to investments held in the portfolio directly, while approximately $0.3 million of these gains were attributable to our investment in SLF.

For the six months ended June 30, 2022 and ~~2016,~~2021, our investments had ~~$2.4~~($16.6) million and ~~($1.8)~~$9.9 million of net change in unrealized gain (loss), respectively. During the ~~three~~six months ended ~~September~~June 30, ~~2017,~~2022, the net change in unrealized ~~gains on the portfolio included the reversal of a mark-to-market~~ loss on ~~Fabco. The sale~~investments was primarily attributable to overall market volatility and spread widening in the loan market, including approximately $4.1 million of unrealized losses attributable to our investment in ~~Fabco~~SLF. Additionally, approximately $4.8 million in net unrealized losses were attributable to portfolio companies that have underlying credit performance concerns resulting in a risk rating of Grade 3, 4 or 5 on our investment performance risk rating scale that were still held as of June 30, 2022.

We estimate approximately $6.0 million of the net unrealized gain on investments during the ~~three~~six months ended ~~September~~June 30, ~~2017 occurred at~~2021 was attributable to broad market movements and tightening of credit spreads in the loan markets. Approximately $3.9 million of these net unrealized gains were attributable to investments held in the portfolio directly, while approximately $2.1 million of these gains were attributable to our investment in SLF. Additionally, $3.8 million in net unrealized gain on investments was attributable to

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portfolio companies that have underlying credit or fundamental performance concerns resulting in a ~~value above the most recent fair market value.~~ risk rating of Grade 3, 4 or 5 on our investment performance risk rating scale.

For the three months ended ~~September~~June 30, ~~2017~~2022 and ~~2016,~~2021, our ~~secured~~foreign currency forward contracts had $1.1 million and $0.1 million of net change in unrealized gain (loss), respectively. For the six months ended June 30, 2022 and 2021, our foreign currency forward contracts had $0.6 million and $0.4 million of net change in unrealized gain (loss), respectively. For the three months ended June 30, 2022 and 2021, our foreign currency borrowings and cash denominated in foreign currencies had ~~zero~~($1) thousand and ($0.1) million of net change in unrealized gain (loss), respectively. For the ~~three~~six months ended ~~September~~June 30, ~~2017~~2022 and ~~2016,~~2021, our foreign currency borrowings and cash denominated in foreign currencies had ~~($67) thousand~~$0.2 million and ~~zero~~($0.3) million of net change in unrealized gain (loss), respectively.

For the nine months ended September 30, 2017 and 2016, our investments had ($8.5) million and ($0.8) million of net change in unrealized gain (loss), respectively. The net change in unrealized losses during the nine months ended September 30, 2017 was primarily attributable to mark-to-market losses on our common equity investment in Rockdale and our debt investment in TPP Operating Inc. For the nine months ended September 30, 2017 and 2016, our secured borrowings had ($6) thousand and ($36) thousand of net change in unrealized gain (loss), respectively. For the nine months ended September 30, 2017 and 2016, our foreign currency borrowings had ($83) thousand and zero of net change in unrealized gain (loss), respectively.

Net Increase (Decrease) in Net Assets Resulting from Operations

For the three months ended ~~September~~June 30, ~~2017~~2022 and ~~2016,~~2021, the net increase (decrease) in net assets resulting from operations was ~~$6.3~~($7.4) million and ~~$3.6~~$11.3 million, respectively. Based on the weighted average shares of common stock outstanding for the three months ended ~~September~~June 30, ~~2017~~2022 and ~~2016,~~2021, our per share net increase (decrease) in net assets resulting from operations was ~~$0.31~~($0.34) and ~~$0.23,~~$0.53, respectively. The $2.7 million increase during the three months ended September 30, 2017, as compared to three months ended September 30, 2016, is primarily the result of an increase in net investment income and unrealized mark-to-market gains on investments in the portfolio during the three months ended September 30, 2017 as compared to the three months ended September 30, 2016. These increases were partially offset by an increase in realized losses on the portfolio during the three months ended September 30, 2017.

For the ~~nine~~six months ended ~~September~~June 30, ~~2017~~2022 and ~~2016,~~2021, the net increase (decrease) in net assets resulting from operations was ~~$9.9~~($6.5) million and ~~$16.8~~$18.4 million, respectively. Based on the weighted average shares of common stock outstanding for the ~~nine~~six months ended ~~September~~June 30, ~~2017~~2022 and ~~2016,~~2021, our per share net increase (decrease) in net assets resulting from operations was ~~$0.55~~($0.30) and ~~$1.21,~~$0.86, respectively.

The ~~$6.9~~$18.7 million ~~decrease~~and $24.9 million decreases during the ~~nine~~three and six months ended ~~September~~June 30, ~~2017,~~2022 as compared to ~~nine~~the three and six months ended ~~September~~June 30, ~~2016,~~2021, respectively, is primarily the result of ~~an increase in~~ net unrealized mark-to-market losses on investments primarily due to market volatility and spread widening in the ~~portfolio~~loan market during the ~~nine~~three and six months ended ~~September~~June 30, ~~2017~~2022, as compared to the ~~nine~~three and six months ended ~~September~~June 30, ~~2016, partially offset by an increase~~2021, where investments in the portfolio experienced net mark-to-market gains, primarily attributable to broad market movements and the tightening of credit spreads in the loan markets and unrealized gains on certain portfolio companies that had underlying credit or fundamental performance concerns resulting in a risk rating of Grade 3, 4 or 5 on our investment ~~income over the same period.~~

performance risk rating scale.

Liquidity and Capital Resources

As of ~~September~~June 30, ~~2017,~~2022, we had ~~$3.7~~$6.0 million in cash, ~~$5.7 million in cash at MRCC SBIC, $60.6~~$190.0 million of total debt outstanding on our revolving credit facility and ~~$92.1~~$130.0 million in ~~outstanding SBA-guaranteed debentures.~~2026 Notes. We had ~~$139.4~~$65.0 million available for additional borrowings on our revolving credit facility, ~~and $22.9 million in available SBA-guaranteed debentures.~~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 prior to its dissolution from the asset coverage test under the 1940 Act during the period the SBA debentures were outstanding. As of June 30, 2022 and December 31, 2021, our asset coverage ratio based on aggregate borrowings outstanding was 173% and 189%, respectively.

Cash Flows

For the ~~nine~~six months ended ~~September~~June 30, ~~2017~~2022 and ~~2016,~~2021, we experienced a net increase (decrease) in cash and restricted cash of ~~$1.1~~($12.1) million and ~~($5.7)~~$18.3 million, respectively. For the ~~nine~~six months ended ~~September~~June 30, ~~2017,~~2022 and 2021, operating activities ~~used $1.2~~provided $16.6 million and $37.6 million, respectively, primarily as a result of principal repayments on and sales of portfolio investments and net investment income, partially offset by purchases of portfolio ~~investments, partially offset by sales of and principal repayments on portfolio~~ investments. ~~For~~During the ~~nine~~six months ended ~~September~~June 30, ~~2016, operating~~2022, we used $28.7 million in financing activities, ~~used $22.4 million,~~ primarily as a result of ~~purchases of portfolio investments,~~repayments on our SBA debentures and distributions to stockholders, partially offset by ~~sales of and principal repayments~~net borrowings on ~~portfolio investments.~~our revolving credit facility. During the ~~nine~~six months ended ~~September~~June 30, ~~2017,~~2021, we ~~generated $2.3~~used $19.3 million ~~from~~in financing activities, primarily as a result of net ~~proceeds from capital raises~~repayments on our 2023 Notes and SBA ~~debenture borrowings during the period,~~debentures and distributions to stockholders, partially offset by net repayments on our revolving credit facility and distributions to stockholders. During the nine months ended September 30, 2016, we generated $16.7 million for financing activities primarily as a result of proceeds from our ~~capital raise during the period, partially offset by net repayments on our revolving credit facility and distributions to stockholders.~~2026 Notes (net of deferred financing cost payments).

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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 ~~net asset value~~NAV per share of our common stock if our ~~Board,~~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 July 14, 2016, our stockholders 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. On July 21, 2017June 8, 2022, 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 ~~September~~both June 30, ~~2017~~2022 and December 31, ~~2016,~~2021, we had ~~20,239,957 and 16,581,869~~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 ~~July 1, 2016,~~May 12, 2017, we ~~amended the ATM securities offering program~~entered into at-the-market (“ATM”) equity distribution agreements with ~~MLV & Co, LLC (“MLV”) and~~each of JMP Securities LLC ~~to replace MLV with~~(“JMP”) and FBR Capital Markets & Co. (“FBR”)~~, an affiliate~~ (the “ATM Program”) through which we can sell, by means of ~~MLV (the “Prior~~ ATM ~~Program”).~~offerings, from time to time, up to $50.0 million of our common stock. On May ~~12, 2017,~~8, 2020, we entered into ~~new equity distribution agreements with each of FBR and JMP that reference our current registration statement (the “ATM Program”).~~an amendment to the ATM Program to extend its term. All other material terms of the ~~Prior~~ ATM Program remain ~~unchanged under~~unchanged. There were no stock issuances through the ATM ~~Program.~~Program during the six months ended June 30, 2022. During the ~~nine~~six months ended ~~September~~June 30, ~~2017,~~2021, we sold ~~173,939~~240,000 shares at an average price of ~~$15.71~~$11.43 per share for gross proceeds of $2.7 million under the ~~Prior~~ ATM ~~Program and no shares were sold under the ATM Program.~~program. Aggregate ~~underwriters’~~underwriter’s discounts and commissions were $41 thousand and offering costs were ~~$23~~$12 thousand, resulting in net proceeds of approximately $2.7 million. ~~There were no stock issuances under the Prior ATM Program during the nine months ended September 30, 2016.~~

On July 25, 2016, we closed a public offering of 3,100,000 shares of our common stock at a public offering price of $15.50 per share, raising approximately $48.1 million in gross proceeds. On August 3, 2016, we sold an additional 465,000 shares of our common stock, at a public offering price of $15.50 per share, raising approximately $7.2 million in gross proceeds pursuant to the underwriters’ exercise of the over-allotment option. Aggregate underwriters’ discounts and commissions were $2.2 million and offering costs were $0.5 million, resulting in net proceeds of $52.5 million.

Borrowings

Revolving Credit ~~Facility:~~Facility ~~As of September 30, 2017, we had U.S. dollar borrowings of $58.2~~: We have a $255.0 million ~~and non-U.S. dollar borrowings denominated in Great Britain pounds of £1.8 million ($2.4 million in U.S. dollars) under our~~ revolving credit facility with ING Capital LLC, as ~~agent, to finance the purchase of our assets.~~agent. The borrowings denominated in Great Britain pounds 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 change in unrealized gain (loss) on foreign currency borrowings in our consolidated statements of operations. The borrowings denominated in Great Britain pounds may be positively or negatively affected by movements in the rate of exchange between the U.S. dollar and the Great Britain pound. These movements are beyond our control and cannot be predicted. As of December 31, 2016, we had U.S. dollar borrowings of $129.0 million outstanding under the revolving credit ~~facility. As of September 30, 2017, the maximum amount we were able to borrow was $200.0 million and this borrowing can be increased to $300.0 million pursuant to~~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 ~~200%~~150% asset coverage, as defined by the 1940 Act). On February 22, 2017, we closed a $40.0 million upsize to the revolving credit facility, bringing the maximum amount we are able to borrow from $160.0 million to the now current maximum amount of $200.0 million, in accordance with the facility’s accordion feature. The maturity date on the facility is December 14, 2020.

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. Our ability~~SBIC, prior to borrow under the revolving credit facility is subject to availability under a defined borrowing base, which varies based on portfolio characteristics and certain eligibility criteria and concentration limits, as well as required valuation methodologies.its dissolution. We may make draws under the revolving credit facility to make or purchase additional investments through ~~December 2019~~March 1, 2023 and for general working capital purposes until March 1, 2024, the maturity date of the revolving credit facility. Borrowings under the revolving credit facility bear interest, at our election, at an annual rate of LIBOR (one-month, two-month, three-month or six-month at our discretion based on the term of the borrowing) plus 2.75% or at a daily rate equal to 2.00% per annum plus the greater of the prime interest rate, the federal funds rate plus 0.5% or LIBOR plus 1.0%. The LIBOR rate on the revolving credit facility was reduced to LIBOR plus 2.75% from LIBOR plus 3.00% in conjunction with our capital raise on June 9, 2017, as net worth (excluding investments in MRCC SBIC) exceeded $225.0 million. In addition to the stated interest rate on borrowings under the revolving credit facility, we are required to pay a 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 65% of the then available maximum borrowing or a 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 65% of the then available maximum borrowing. As of September 30, 2017 and December 31, 2016, the outstanding borrowings were accruing at a weighted average interest rate of 4.0% and 3.8%, respectively. The weighted average interest rate of the revolving credit facility borrowings (excluding debt issuance costs) for the three and nine months ended September 30, 2017 was 4.1% and 4.1%, respectively. The weighted average fee rate on the unused portion of the revolving credit facility for the three and nine months ended September 30, 2017 was 0.5% and 0.5%, respectively. The weighted average interest rate of the revolving credit facility borrowings (excluding debt issuance costs) for the three and nine months ended September 30, 2016 was 3.7% and 3.6%, respectively. The weighted average fee rate on the unused portion of the revolving credit facility for the three and nine months ended September 30, 2016 was 0.5% and 0.5%, respectively.

Our ability to borrow under the revolving credit facility is subject to availability under the borrowing base, which permits us to borrow up to ~~70%~~72.5% of the fair market value of our portfolio company investments depending on the type of ~~the~~ investment we hold and whether the investment is quoted. Our ability to borrow is also subject to certain concentration limits, and ~~our~~ 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) a minimum consolidated total net assets at least equal to ~~the greater of (a) 40% of the consolidated total assets on the last day of each quarter or (b) $120.0~~$150.0 million plus 65% of the net proceeds to us from sales of our equity securities after ~~December 14, 2015;~~March 1, 2019; (2) a ratio of total assets (less total liabilities other than indebtedness) to total indebtedness of not less than ~~2.1 times;~~1.5 to 1; and (3) a senior debt coverage ratio ~~of earnings before interest and taxes to interest expense~~ of at least ~~2.5 times.~~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.

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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 June 30, 2022, we had U.S. dollar borrowings of $190.0 million. As of December 31, 2021, we had U.S. dollar borrowings of $146.4 million and non-U.S. dollar borrowings denominated in Great Britain pounds of £3.4 million ($4.6 million in U.S. dollars) under the revolving credit facility. Any borrowings denominated in a foreign currency may be positively or negatively affected by movements in the rate of exchange between the U.S. dollar and the respective foreign currency. These movements are beyond our control and cannot be predicted. Borrowings denominated in 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 zero and $0.2 million for the three and six months ended June 30, 2022, respectively, and ($0.1) million and ($0.3) million for the three and six months ended June 30, 2021, respectively. During the six months ended June 30, 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 other transactions on our consolidated statements of operations of ($11) thousand for the six months ended June 30, 2022. There were no repayments of foreign currency borrowings for the six months ended June 30, 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 June 30, 2022 and December 31, 2021, the outstanding borrowings were accruing at a weighted average interest rate of 4.2% and 3.1%, respectively.

2026 Notes: As of both June 30, 2022 and December 31, 2021, we 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 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 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,~~March 1, 2022, MRCC SBIC fully repaid its outstanding SBA debentures utilizing a borrowing on our ~~wholly-owned subsidiary,~~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 $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. MRCC SBIC received ~~a license~~approval 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~~surrender its SBIC license ~~allows MRCC SBIC to obtain leverage by issuing SBA-guaranteed debentures, subject to the issuance of a leverage commitment by the SBA~~ and other customary procedures. SBA-guaranteed debentures are non-recourse, interest only debentures with interest payable semi-annually and have a ten year maturity. The principal amount of SBA-guaranteed debentures is not required to be paid prior to maturity but may be prepaid at any time without penalty. The interest rate of SBA-guaranteed 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.

SBA regulations currently limit the amount that an individual SBIC may borrow to a maximum of $150.0 million when it has at least $75.0 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 historically limited a related group of SBICs (commonly referred to as a “family of funds”) to a maximum of $225.0 million in total borrowings. On December 18, 2015, this family of funds limitation was raised to $350.0 million in total borrowings. As we have other affiliated SBICs already in operation,March 31, 2022, MRCC SBIC was historically limited to a maximum of $40.0 million in borrowings. Pursuant to the increase in the family of funds limitation, we submitted a commitment application to the SBA and on April 13, 2016 we were approved for $75.0 million in additional SBA-guaranteed debentures for MRCC SBIC for a total of $115.0 million in available debentures.

dissolved.

As of ~~September~~June 30, ~~2017,~~2022 and December 31, 2021, MRCC SBIC had zero and $57.6 million, respectively, in leverageable capital and $92.1 million in SBA-guaranteed debentures outstanding. As of December 31, 2016, MRCC SBIC had $41.0 million in leverageable capital and $51.5 million in SBA-guaranteed debentures outstanding. As of September 30, 2017, we have made all required leverageable capital contributions to MRCC SBIC in order to access the remaining $22.9 million in available SBA-guaranteed debentures.

~~As of September 30, 2017, MRCC SBIC had~~ the following ~~SBA-guaranteed~~SBA debentures outstanding ~~(dollars in~~(in thousands):


Maturity Date	Interest Rate			Amount		Interest Rate			June 30, 2022		December 31, 2021
September 2024		3.4	%	$	12,920		3.4	%	$	—	$	2,920
March 2025		3.3	%		14,800		3.3	%		—		14,800
March 2025		2.9	%		7,080		2.9	%		—		7,080
September 2025		3.6	%		5,200
March 2027		3.5	%		20,000
September 2027		3.2	%		32,100		3.2	%		—		32,100
Total				$	92,100				$	—	$	56,900

As87

Table of ~~December 31, 2016, MRCC SBIC had the following SBA-guaranteed debentures outstanding (dollars in thousands):~~Contents

Maturity Date Interest Rate Amount
September 2024 3.4 % $ 12,920
March 2025 3.3 % 14,800
March 2025 2.9 % 7,080
September 2025 3.6 % 5,200
March 2027 2.1 %⁽¹⁾ 9,200
March 2027 2.0 %⁽¹⁾ 2,300
Total $ 51,500
~~(1)~~ ~~Represents an interim rate of interest as the SBA-guaranteed debentures had not yet pooled.~~
On October 2, 2014, the Company was granted exemptive relief from the SEC for permission to exclude the debt of MRCC SBIC guaranteed by the SBA from the 200% asset coverage test under the 1940 Act. The receipt of this exemption for this SBA-guaranteed debt increases flexibility under the 200% asset coverage test.
~~Secured Borrowings:~~ ~~Certain partial loan sales do not qualify for sale accounting under Accounting Standards Codification (“ASC”) Topic 860 —~~~~Transfers and Servicing~~ (“ASC Topic 860”) because these sales do not meet the definition of a “participating interest,” as defined in the guidance, in order for sale treatment to be allowed. Participations or other partial loan sales which do not meet the definition of a participating interest remain as an investment on the accompanying consolidated statements of assets and liabilities and the portion sold is recorded as a secured borrowing in the liabilities section of the consolidated statements of assets and liabilities. For these partial loan sales, the interest earned on the entire loan balance is recorded within “interest income” and the interest earned by the buyer in the partial loan sale is recorded within “interest and other debt financing expenses” in the accompanying consolidated statements of operations.
As of September 30, 2017, we did not have secured borrowings. As of December 31, 2016, secured borrowings at fair value totaled $1.3 million and the fair value of the loans that are associated with these secured borrowings was $5.8 million. These secured borrowings were created as a result of our completion of partial loan sales of certain unitranche loan assets during the year ended December 31, 2013, that did not meet the definition of a “participating interest.” As a result, sale treatment was not allowed and these partial loan sales were treated as secured borrowings. No such partial loan sales occurred during the year ended December 31, 2016 and the nine months ended September 30, 2017. During the three and nine months ended September 30, 2017, repayments on secured borrowings totaled zero and $1.3 million, respectively. During the three and nine months ended September 30, 2016 repayments on secured borrowings totaled $0.6 million and $0.9 million, respectively. The weighted average interest rate on our secured borrowings was approximately zero and 6.3% as of September 30, 2017 and December 31, 2016, respectively.
~~Distribution Policy~~
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 and ~~nine~~six months ended ~~September~~June 30, ~~2017,~~2022, totaled ~~$7.1~~$5.4 million ($~~0.35~~0.25 per share) and ~~$20.0~~$10.8 million ($~~1.05~~0.50 per share), respectively. Distributions to stockholders for the three and ~~nine~~six months ended ~~September~~June 30, ~~2016~~2021, totaled ~~$5.8~~$5.4 million ($~~0.35~~0.25 per share) and ~~$14.8~~$10.7 million ($~~1.05~~0.50 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 ~~September~~June 30, ~~2017~~2022 and ~~2016,~~2021, no portion of these distributions would have been characterized as a tax return of capital to stockholders.
~~We have~~In October 2012, we adopted an “opt out” dividend reinvestment plan (“DRIP”) for our common stockholders. ~~As a result, if~~When we declare a distribution, our stockholders’ cash distributions will automatically be ~~automatically~~ 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 June 30, 2022 and December 31, 2021, we and LSW each owned 50.0% of the LLC equity interests of SLF. As of June 30, 2022, SLF had $100.0 million in equity commitments from its members (in the aggregate), of which $85.3 million was funded. As of December 31, 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 June 30, 2022 and December 31, 2021, we have committed to fund $50.0 million of LLC equity interest subscriptions to SLF. As of June 30, 2022, $42.7 million of our LLC equity interest subscriptions to SLF had been called and contributed, net of return of capital distributions subject to recall. As of December 31, 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 the three and six months ended June 30, 2022, we received $0.9 million and $1.8 million of dividend income from our LLC equity interest in SLF, respectively. For the three and six months ended June 30, 2021, we received $1.1 million and $2.3 million of dividend income from our 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”), The SLF Credit Facility allows SLF SPV to borrow up to $175.0 million, subject to leverage and borrowing base restrictions borrowings on the SLF Credit Facility bear interest at an annual rate of LIBOR (three-month) plus 2.10%.

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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 and six months ended June 30, 2022, SLF incurred $59 thousand and $0.1 million of allocable expenses, respectively. For the three and six months ended June 30, 2021, SLF incurred $50 thousand and $0.1 million of allocable expenses, respectively. There are no agreements or understandings by which we guarantee any SLF obligations.

As of June 30, 2022 and December 31, 2021, SLF had total assets at fair value of $203.6 million and $194.6 million, respectively. As of June 30, 2022, SLF had two portfolio company investments on non-accrual status with a fair value of $2.6 million. As of December 31, 2021, SLF had one portfolio company investment on non-accrual status with a fair value of $1.1 million. The portfolio companies in SLF are in industries and geographies similar to those in which we may invest directly. Additionally, as of June 30, 2022 and December 31, 2021, SLF had $5.0 million and $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 June 30, 2022 and December 31, 2021:

As of


June 30, 2022

December 31, 2021

Senior secured loans ⁽¹⁾

207,803

193,062

Weighted average current interest rate on senior secured loans ⁽²⁾

7.1
%
5.9
%
Number of portfolio company investments in SLF

62

57

Largest portfolio company investment ⁽¹⁾

6,685

6,720

Total of five largest portfolio company investments ⁽¹⁾

26,996

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.

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MRCC SENIOR LOAN FUND I, LLC

CONSOLIDATED SCHEDULE OF INVESTMENTS

(unaudited)

June 30, 2022

(in thousands)

Table of Contents

MRCC SENIOR LOAN FUND I, LLC

CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)

(unaudited)

June 30, 2022

(in thousands)

Table of Contents

MRCC SENIOR LOAN FUND I, LLC

CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)

(unaudited)

June 30, 2022

(in thousands)

(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 June 30, 2022. Certain investments are subject to an interest rate floor.

(c)	This is an international company.

(d)	All or a portion of this commitment was unfunded as of June 30, 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 June 30, 2022, meaning that we have ceased accruing interest income on the position.

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MRCC SENIOR LOAN FUND I, LLC

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2021

(in thousands)

Spread








Above

Portfolio Company ^(a)

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

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MRCC SENIOR LOAN FUND I, LLC

CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)

December 31, 2021

(in thousands)

Spread









Above

Portfolio Company ^(a)

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

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(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.

(f)	This position was on non-accrual status as of December 31, 2021, meaning that we have ceased accruing interest income on the position.

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Below is certain summarized financial information for SLF as of June 30, 2022 and December 31, 2021 and for the three and six months ended June 30, 2022 and 2021 (in thousands):

June 30, 2022

December 31, 2021

(unaudited)

Assets




Investments, at fair value

$
195,190

$
189,109
Cash

735

40
Restricted cash

6,744

4,862
Interest receivable

886

600
Other assets

—

12
Total assets

$
203,555

$
194,623
Liabilities




Revolving credit facility

$
129,615

$
94,765
Less: Unamortized deferred financing costs

(1,922)

(2,319)
Total debt, less unamortized deferred financing costs

127,693

92,446
Payable for open trades

—

19,367
Interest payable

423

242
Accounts payable and accrued expenses

338

318
Total liabilities

128,454

112,373
Members’ capital

75,101

82,250
Total liabilities and members’ capital

$
203,555

$
194,623


Three months ended June 30,

Six months ended June 30,

2022

2021

2022

2021

(unaudited)

(unaudited)
Investment income:








Interest income

$
3,385

$
3,210

$
6,518

$
6,663
Total investment income

3,385

3,210

6,518

6,663
Expenses:








Interest and other debt financing expenses

1,216

1,024

2,197

2,003
Professional fees

205

162

377

332
Total expenses

1,421

1,186

2,574

2,335
Net investment income (loss)

1,964

2,024

3,944

4,328
Net gain (loss):








Net change in unrealized gain (loss)

(6,483)

761

(8,493)

4,424
Net gain (loss)

(6,483)

761

(8,493)

4,424
Net increase (decrease) in members’ capital

$
(4,519)

$
2,785

$
(4,549)

$
8,752

Related Party Transactions
We have a number of business relationships with affiliated or related parties, including the following:
·● We have an Investment Advisory ~~and Management~~ Agreement with MC Advisors, an investment advisor registered with the SEC, to manage our ~~day-to-day operating and~~ investing activities. We pay MC Advisors a fee for its services under the Investment Advisory ~~and Management~~ 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.
46●
· 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.

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·●

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,~~Lewis W. Solimene, Jr., 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 ~~September~~June 30, ~~2017~~2022 and December 31, ~~2016,~~2021, we had ~~$33.1 million and $37.7 million, respectively, in~~ outstanding commitments to fund investments under undrawn revolvers, capital expenditure loans, ~~and~~ delayed draw ~~commitments.~~commitments and subscription agreements, excluding unfunded commitments in SLF, totaling $54.7 million and $55.5 million, respectively. As of June 30, 2022 and December 31, 2021, we had unfunded commitments to SLF of $7.3 million and $7.8 million, respectively, 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

WeOther than contractual commitments and other legal contingencies incurred in the normal course of our business, we do not have noany off-balance sheet ~~arrangements that have~~financings or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

liabilities.

Market Trends

We have identified the following general trends that may affect our business:

Target ~~Market:~~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:~~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:~~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.

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Competition from Other ~~Lenders:~~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 ishas 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 ~~increasingly riskier~~new assets.

Pricing and Deal ~~Structures:~~Structures: We believe that the volatility in global markets over the last several years and current macroeconomic issues ~~such as a weakened U.S. economy~~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.

~~Recent Developments~~

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 ~~November 1, 2017,~~the other hand, we ~~announced~~believe that the formation of a joint venture with NLV Financial Corporation (“NLV”), the parent of National Life Insurance Company, to create MRCC Senior Loan Fund I, LLC (the “Senior Loan Fund”). The Senior Loan Fund is expected to invest primarily in senior secured loansincreased competition for direct lending to middle market ~~companies~~businesses could result in ~~the United States.~~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 Corporation~~Capital’s scale, product suite, entrenched relationships and ~~NLV have each initially committed $50.0 million of capital to the joint venture. In addition, the Senior Loan Fund intends to obtain third party financing that is expected~~strong market position will continue to allow ~~the joint venture~~us to ~~access market levels~~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.

Table of ~~leverage.~~ Contents

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 isare capitalized, and then we ~~then~~ 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.

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. We obtain these market values from an independent pricing service or at the mean between the bid and ask prices obtained from at least two brokers or dealers (if available, otherwise by a principal market maker or a primary market dealer). When doing so, we determine whether the quote obtained is sufficient in accordance with generally accepted accounting principles in the United States ~~(“GAAP”)~~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:

·●

Table of Contents

·●

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;

●

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

·●

our Board engages one or more independent valuation firm(s) to conduct fair value appraisals of material investments for which market quotations are not readily available. These fair value appraisals for material investments are received at least once in every calendar year for each portfolio company investment, but are generally received quarterly;

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

~~The Board, together with our independent valuation firms,~~We generally ~~uses~~use the ~~yield~~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 ~~under the market approach~~ 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;~~manner, the loan is in covenant compliance orand the loan is otherwise not deemed to be impaired. In determining the fair value of the performing debt, ~~the Company considers~~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 ~~loan.~~

debt instrument.

Under the ~~yield~~income approach, ~~we utilize~~ 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 ~~yield~~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.

Under the market approach, ~~we typically use~~ 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 ~~analyzes~~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 June 30, 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.

100

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Net Realized ~~Gains~~Gain or ~~Losses~~Loss and Net Change in Unrealized Gain or Loss

We measure realized ~~gains~~gain or ~~losses~~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 ~~gains~~gain or ~~losses are~~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 ~~investments in fair value on~~ our consolidated statements of operations. We report changes in the fair value of secured borrowings that are measured at fair value as a component of the net change in unrealized gain (loss) on secured borrowings in the 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 ~~borrowings.~~and other transactions.

Capital Gains Incentive Fee

Pursuant to the terms of the Investment Advisory ~~and Management~~ 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 and administrative services agreement)~~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 ~~and Management~~ 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 and six months ended ~~September~~June 30, ~~2017,~~2022 and 2021, we did not ~~accrue capital gains incentive fees. During the nine months ended September 30, 2017, we had a reduction~~have any further reductions in accrued capital gains incentive fees ~~of $0.2 million,~~as they were already at zero, primarily as a result of net declines in portfolio valuations during the period. During the three months ended September 30, 2016, we had a reduction in accrued capital gains incentive fees of $0.1 million, as a result of net declines in portfolio valuations during the period. During the nine months ended September 30, 2016, we did not accrue any capital gains incentive fees basedaccumulated realized and unrealized losses on the ~~performance of our~~ portfolio.

New Accounting Pronouncements

In ~~May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09,~~~~Revenue from Contracts with Customers~~(ASC Topic 606) (“ASU 2014-09”). The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: Step 1: Identify the contract(s) with a customer. Step 2: Identify the performance obligations in the contract. Step 3: Determine the transaction price. Step 4: Allocate the transaction price to the performance obligations in the contract. Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation.

ASU 2014-09 also specified the accounting for some costs to obtain or fulfill a contract with a customer. In addition, ASU 2014-09 requires that an entity disclose sufficient information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The initial effective date of ASU 2014-09 was for fiscal periods beginning after December 15, 2016. However, in August 2015,March 2020, the FASB issued ASU ~~2015-14,~~2020-04, ~~Revenue from Contracts with Customers (ASC Topic 606): Deferral of the Effective Date~~Reference Rate Reform ~~, which deferred the effective date~~(“ASU 2020-04”). The amendments in ASU 2020-04 provide optional expedients and exceptions for applying GAAP to ~~fiscal periods beginning after December 15, 2017. Management is currently evaluating the impact these changes will have on our consolidated financial statements~~contracts, hedging relationships, and ~~disclosures.~~

~~In January 2016, the FASB issued ASU 2016-01, Financial Instruments —~~ ~~Overall~~ ~~(Subtopic 825-10):~~~~Recognition and Measurement of Financial Assets and Financial Liabilities~~ (“ASU 2016-01”). ASU 2016-01 retains many current requirements for the classification and measurement of financial instruments; however, it significantly revises an entity’s accounting related to (1) the classification and measurement of investments in equity securities and (2) the presentation ofother transactions affected by reference rate reform if certain ~~fair value changes for financial liabilities measured at fair value. ASU 2016-01 also amends certain disclosure requirements associated with the fair value of financial instruments. This guidance~~criteria are met. The standard is effective ~~for annual~~as of March 12, 2020 through December 31, 2022. We did not utilize the optional expedients and interim periods beginning after December 15, 2017, and early adoption is not permitted for public business entities. Management is currently evaluating the impact these changes will have on our consolidated financial statements and disclosures.

~~In October 2016, the SEC adopted new rules and amended rules (together “final rules”) intended to modernize the reporting and disclosures of information~~exceptions provided by registered investment companies. In part, the final rules amend Regulation S-X and require standardized, enhanced disclosure about derivatives in investment company financial statements, as well as other amendments. The compliance date for the amendments to Regulation S-X was August 1, 2017. We have adopted the final rules, as applicable, and the revised presentation is reflected in our consolidated financial statements for the periods presented.

~~In November 2016, the FASB issued~~ ASU ~~2016-18,~~~~Statement of Cash Flows~~ ~~(Topic 230):~~~~Restricted Cash~~ ~~(“ASU 2016-18”). ASU 2016-18 requires that the statements of cash flows explain the change~~2020-04 during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statements of cash flows. The new guidance is effective for annual and interim periods, beginning after December 15, 2017, and early adoption is permitted and is to be applied on a retrospective basis. We have adopted ASU 2016-18 and the revised presentation is reflected in our consolidated financial statements for the periods presented.six months ended June 30, 2022.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are subject to financial market risks, including changes in interest ~~rates.~~ rates and the valuations of our investment portfolio. Uncertainty with respect to the economic effects of the COVID-19 outbreak 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 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, “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” 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 or SOFR 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 ~~have~~will effectively ~~converted~~convert the loans to fixed rate loans in the ~~current~~event interest ~~rate environment.~~rates decrease. In addition, our revolving credit facility has a floating interest rate provision, ~~and we~~whereas our 2026 Notes have fixed interest

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rates until maturity. We expect that other credit facilities into which we may enter in the future may also have floating interest rate provisions.

Assuming that the consolidated statement of ~~financial condition~~assets and liabilities as of ~~September~~June 30, ~~2017 were~~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.~~rates (in thousands):

	Increase (decrease) in			Increase (decrease) in			Net increase (decrease) in

										Increase		Increase		Net increase
										(decrease) in		(decrease) in		(decrease) in net
Change in Interest Rates	interest income			interest expense			net investment income			interest income		interest expense		investment income
	(in thousands)
Down 25 basis points	$	(863	)	$	(152	)	$	(711	)	$	(693)	$	(475)	$	(218)
Up 100 basis points		3,851			606			3,245			5,038		2,318		2,720
Up 200 basis points		7,907			1,212			6,695			9,328		4,218		5,110
Up 300 basis points		11,964			1,818			10,146			13,618		6,118		7,500

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)~~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.~~investments or we may enter into foreign currency forward contracts. As of ~~September~~June 30, ~~2017,~~2022, we ~~have non-U.S. dollar borrowings denominated~~had foreign currency forward contracts in ~~Great Britain pounds of £1.8~~place for AUD 18.3 million ~~($2.4 million U.S. dollars) outstanding under the revolving credit facility.~~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 ~~Rule~~Rules 13a-15(f) and 15d-15(f) of the Exchange Act) during the ~~nine~~three months ended ~~September~~June 30, ~~2017~~2022 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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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, 2021 filed with the SEC on March 2, 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 to the risk factors discussed in Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2021.
~~None.~~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.

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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 June 30, 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.

As a result of the 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 June 30, 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 June 30, 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 June 30, 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 June 30, 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.

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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 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

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● 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.


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
%
(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 $590.5 million in total assets, $341.0 million in debt outstanding, of which $281.0 million is senior securities outstanding, $249.5 million in net assets and an average cost of funds of 3.77%, which was the weighted average interest rate of borrowing on our revolving credit facility, SBA debentures and 2026 Notes as of December 31, 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, 2021 total portfolio assets of at least 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.

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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.

51
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Item 6. Exhibits
Exhibit
Number
Description of Document
~~31.1~~
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)
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)

101.INS

Inline XBRL Instance Document
101.SCH

Inline XBRL Taxonomy Extension Schema Document
101.DEF

Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB

Inline XBRL Taxonomy Extension Labels Linkbase Document
101.PRE

Inline XBRL Taxonomy Extension Presentation Linkbase Document
104

Cover Page Interactive Data File (Embedded within the Inline XBRL document and included in Exhibit)

52

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Table of Contents

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: ~~November 7, 2017~~August 2, 2022
By
/s/ Theodore L. Koenig
Theodore L. Koenig
Chairman, Chief Executive Officer and Director
(Principal Executive Officer)
Monroe Capital Corporation
Date: ~~November 7, 2017~~August 2, 2022
By
/s/ ~~Aaron D. Peck~~ Lewis W. Solimene, Jr.
~~Aaron D. Peck~~
Lewis W. Solimene, Jr.
Chief Financial Officer, Chief Investment Officer ~~and Director~~
(Principal Financial and Accounting Officer)
Monroe Capital Corporation
53

109

~~Maryland~~	~~27-4895840~~
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	x ☐

Non-accelerated filer	¨ ~~(Do not check if a smaller reporting company)~~ ☒	Smaller reporting company	¨ ☐

Emerging growth company	x ☐

x
☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

¨
☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

		Page
PART I. FINANCIAL INFORMATION		3

Item 1.	Consolidated Financial Statements	3

	Consolidated Statements of Assets and Liabilities as of ~~September~~June 30, ~~2017~~2022 (unaudited) and December 31, ~~2016~~2021	3

	Consolidated Statements of Operations for the three and ~~nine~~six months ended ~~September~~June 30, ~~2017~~2022 and 2021 (unaudited) ~~and 2016 (unaudited)~~	4

	Consolidated Statements of Changes in Net Assets for the ~~nine~~three and six months ended ~~September~~June 30, ~~2017~~2022 and 2021 (unaudited) ~~and 2016 (unaudited)~~	5

	Consolidated Statements of Cash Flows for the ~~nine~~six months ended ~~September~~June 30, ~~2017~~2022 and 2021 (unaudited) ~~and 2016 (unaudited)~~	6

	Consolidated Schedules of Investments as of ~~September~~June 30, ~~2017~~2022 (unaudited) and December 31, ~~2016~~2021	7 8

	Notes to Consolidated Financial Statements (unaudited)	18 36

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	36 73

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	50 101

Item 4.	Controls and Procedures	51 102

PART II. OTHER INFORMATION		51 103

Item 1.	Legal Proceedings	51 103

Item 1A.	Risk Factors	51 103

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	51 107

Item 3.	Defaults Upon Senior Securities	51 107

Item 4.	Mine Safety Disclosures	51 107

Item 5.	Other Information	51 107

Item 6.	Exhibits	52 108

Signatures		53 109

	Common Stock				Capital in excess		Undistributed net investment income (accumulated distributions in excess of net			Accumulated net realized gain (loss) on investments and			Accumulated net unrealized gain (loss) on investments, secured borrowings and foreign
	Number of shares		Par value		of par value		investment income)			secured borrowings			currency borrowings			Total net assets
Balances at December 31, 2015		13,008	$	13	$	184,419	$	1,692		$	-		$	(1,589	)	$	184,535
Net increase (decrease) in net assets resulting from operations		-		-		-		17,129			587			(883	)		16,833
Issuance of common stock, net of offering and underwriting costs		3,566		4		52,551		-			-			-			52,555
Distributions to stockholders:
Stock issued in connection with dividend reinvestment plan		4		-		70		(70	)		-			-			-
Distributions from net investment income		-		-		-		(14,836	)		-			-			(14,836	)
Balances at September 30, 2016		16,578	$	17	$	237,040	$	3,915		$	587		$	(2,472	)	$	239,087

Balances at December 31, 2016		16,582	$	17	$	233,526	$	7,037		$	587		$	(317	)	$	240,850
Net increase (decrease) in net assets resulting from operations		-		-		-		19,009			(506	)		(8,592	)		9,911
Issuance of common stock, net of offering and underwriting costs		3,624		3		52,218		-			-			-			52,221
Distributions to stockholders:
Stock issued in connection with dividend reinvestment plan		34		-		525		(525	)		-			-			-
Distributions from net investment income		-		-		-		(19,440	)		-			-			(19,440	)
Balances at September 30, 2017		20,240	$	20	$	286,269	$	6,081		$	81		$	(8,909	)	$	283,542

Portfolio Company^(a)	Spread Above Index^(b)	Interest Rate			Maturity	Principal		Amortized Cost		Fair Value^(c)		% of Net Assets^(d)
Non-Controlled/Non-Affiliate Company Investments
Senior Secured Loans
Banking, Finance, Insurance & Real Estate
Bartlett Reserve Durham, LLC^(e)	L+9.00%		10.23	%	6/1/2018		6,468	$	6,385	$	6,346		2.2	%
Echelon Funding I, LLC (Delayed Draw) ^{(e) (f) (g)}	L+10.25%		11.49	%	2/24/2021		15,000		13,159		13,350		4.7	%
Liftforward SPV II, LLC^{(e) (f)}	L+10.75%		11.99	%	11/10/2020		10,000		5,177		5,251		1.8	%
							31,468		24,721		24,947		8.7	%
Beverage, Food & Tobacco
All Holding Company, LLC^(h)	L+7.00%		8.24	%	11/15/2021		5,363		5,275		5,416		1.9	%
California Pizza Kitchen, Inc.	L+6.00%		7.24	%	8/23/2022		6,930		6,864		6,884		2.4	%
							12,293		12,139		12,300		4.3	%
Construction & Building
Cali Bamboo, LLC	L+8.00%		9.24	%	7/10/2020		5,332		5,274		5,332		1.9	%
Cali Bamboo, LLC (Revolver)^(f)	L+8.00%		9.24	%	7/10/2020		2,165		823		823		0.3	%
Cornerstone Detention Products, Inc.⁽ⁱ⁾	L+9.50%		9.74% Cash/ 1.00% PIK		4/8/2019		3,566		3,541		3,530		1.2	%
Cornerstone Detention Products, Inc. (Revolver)^(f)	L+8.50%		9.83	%	4/8/2019		400		200		198		0.1	%
L.A.R.K. Industries, Inc.	L+8.50%		9.74	%	9/3/2019		8,038		7,939		8,050		2.8	%
							19,501		17,777		17,933		6.3	%
Consumer Goods: Durable
Parterre Flooring & Surface Systems LLC^(h)	L+7.25%		8.49	%	8/22/2022		12,000		11,762		11,952		4.2	%
Parterre Flooring & Surface Systems LLC (Revolver)^(f)	L+7.25%		8.49	%	8/22/2022		2,400		-		-		0.0	%
							14,400		11,762		11,952		4.2	%
Consumer Goods: Non-Durable
Bluestem Brands, Inc.	L+7.50%		8.74	%	11/6/2020		2,637		2,620		1,870		0.7	%
Solaray, LLC	L+6.50%		7.82	%	9/9/2023		3,264		3,235		3,264		1.2	%
Solaray, LLC (Delayed Draw)	L+6.50%		7.83	%	9/9/2023		701		701		701		0.2	%
							6,602		6,556		5,835		2.1	%
Energy: Oil & Gas
Landpoint, LLC	L+12.75%		12.00% Cash/ 2.25% PIK	^(j)	12/20/2019		2,394		2,376		2,346		0.8	%
Landpoint, LLC (Revolver)^(f)	L+10.50%		12.00	%	12/20/2019		313		-		-		0.0	%
							2,707		2,376		2,346		0.8	%
Environmental Industries
Synergy Environmental Corporation^(h)	L+8.00%		9.24	%	4/29/2021		3,051		2,993		3,082		1.1	%
Synergy Environmental Corporation^(h)	L+8.00%		9.24	%	4/29/2021		510		501		515		0.2	%
Synergy Environmental Corporation (Delayed Draw) ^{(f) (g)}	L+8.00%		9.24	%	4/29/2018		1,342		-		-		0.0	%
Synergy Environmental Corporation (Revolver)^(f)	L+8.00%		9.24	%	4/29/2021		671		47		47		0.0	%
							5,574		3,541		3,644		1.3	%
Healthcare & Pharmaceuticals
American Optics Holdco, Inc.^{(e) (k)}	L+8.00%		9.24	%	9/13/2022		4,144		4,062		4,061		1.4	%
American Optics Holdco, Inc. (Revolver)^{(e) (f) (k)}	L+8.00%		9.24	%	9/13/2022		440		-		-		0.0	%
American Optics Holdco, Inc.^{(e) (k)}	L+8.00%		9.24	%	9/13/2022		762		747		747		0.3	%
American Optics Holdco, Inc. (Revolver)^{(e) (f) (k)}	L+8.00%		9.24	%	9/13/2022		440		-		-		0.0	%
Beaver-Visitec International Holdings, Inc.	L+5.00%		6.33	%	8/19/2023		4,950		4,907		4,975		1.7	%
Edge Systems Holdings Corp.	L+7.75%		8.99	%	12/1/2021		3,406		3,347		3,465		1.2	%


	Spread Above		Interest		Acquisition			Amortized				% of
Portfolio Company ^(a)	Index ^(b)		Rate		Date ^(c)	Maturity	Principal	Cost		Fair Value ^(d)		Net Assets ^(e)
Non-Controlled/Non-Affiliate Company Investments
Senior Secured Loans
Automotive
Born To Run, LLC	L+6.00	%	8.25	%	4/1/2021	4/1/2027	3,465	$	3,408	$	3,472	1.6	%
Born To Run, LLC (Delayed Draw) ^{(f) (g)}	L+6.00	%	8.25	%	4/1/2021	4/1/2027	569		33		33	0.0	%
Hastings Manufacturing Company	L+7.25	%	8.92	%	4/24/2018	4/24/2023	2,412		2,402		2,412	1.0	%
Lifted Trucks Holdings, LLC	L+5.75	%	6.75	%	8/2/2021	8/2/2027	6,965		6,843		6,906	3.0	%
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		—		—	0.0	%
Magneto & Diesel Acquisition, Inc.	L+5.50	%	7.17	%	12/18/2018	12/18/2023	4,825		4,797		4,825	2.1	%
Magneto & Diesel Acquisition, Inc.	L+5.50	%	7.17	%	7/6/2020	12/18/2023	1,899		1,882		1,913	0.8	%
Magneto & Diesel Acquisition, Inc.	L+5.50	%	7.17	%	8/4/2021	12/18/2023	79		78		80	0.0	%
Magneto & Diesel Acquisition, Inc. (Revolver)^(f)	L+5.50	%	7.17	%	12/18/2018	12/18/2023	500		—		—	0.0	%
							23,781		19,443		19,641	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		3,768		4,026	1.7	%
StarCompliance MidCo, LLC	L+6.75	%	9.00	%	1/12/2021	1/12/2027	2,000		1,969		1,983	0.9	%
StarCompliance MidCo, LLC	L+6.75	%	9.00	%	10/12/2021	1/12/2027	336		330		333	0.1	%
StarCompliance MidCo, LLC (Revolver) ^(f)	L+6.75	%	8.42	%	1/12/2021	1/12/2027	322		32		32	0.0	%
							10,658		6,099		6,374	2.7	%
Beverage, Food & Tobacco
LVF Holdings, Inc.	L+6.25	%	8.45	%	6/10/2021	6/10/2027	1,493		1,467		1,470	0.6	%
LVF Holdings, Inc.	L+6.25	%	8.45	%	6/10/2021	6/10/2027	1,428		1,428		1,407	0.6	%
LVF Holdings, Inc. (Delayed Draw) ^{(f) (g)}	L+6.25	%	8.45	%	6/10/2021	6/10/2027	344		—		—	0.0	%
LVF Holdings, Inc. (Revolver) ^(f)	L+6.25	%	8.50	%	6/10/2021	6/10/2027	238		176		173	0.1	%
LX/JT Intermediate Holdings, Inc.	SF+6.00	%	7.63	%	3/11/2020	3/11/2025	5,518		5,453		5,438	2.4	%
LX/JT Intermediate Holdings, Inc. (Revolver) ^(f)	SF+6.00	%	7.63	%	3/11/2020	3/11/2025	833		—		—	0.0	%
Toojay’s Management LLC ⁽ⁱ⁾	n/a		n/a	^(j)	10/26/2018	10/26/2022	1,448		1,407		—	0.0	%
Toojay’s Management LLC ⁽ⁱ⁾	n/a		n/a	^(j)	10/26/2018	10/26/2022	199		199		—	0.0	%
Toojay’s Management LLC (Revolver) ⁽ⁱ⁾	n/a		n/a	^(j)	10/26/2018	10/26/2022	66		66		—	0.0	%
							11,567		10,196		8,488	3.7	%
Capital Equipment
MCP Shaw Acquisitionco, LLC	SF+6.50	%	8.82	%	2/28/2020	11/28/2025	9,733		9,614		9,738	4.2	%
MCP Shaw Acquisitionco, LLC	SF+6.50	%	8.82	%	12/29/2021	11/28/2025	2,987		2,935		2,989	1.3	%
MCP Shaw Acquisitionco, LLC (Delayed Draw) ^{(f) (g)}	SF+6.50	%	8.82	%	12/29/2021	11/28/2025	983		437		437	0.2	%
MCP Shaw Acquisitionco, LLC (Revolver) ^(f)	SF+6.50	%	8.82	%	2/28/2020	11/28/2025	1,784		595		595	0.2	%
							15,487		13,581		13,759	5.9	%

Portfolio Company ^(a)	Spread Above Index ^(b)	Interest Rate			Maturity	Principal		Amortized Cost		Fair Value ^(c)		% of Net Assets ^(d)
Consumer Goods: Non-Durable
Incipio Technologies, Inc. ^(q)	L+6.00%		7.00	%	12/26/2019		14,291	$	14,045	$	14,219		5.9	%
							14,291		14,045		14,219		5.9	%
Healthcare & Pharmaceuticals
Collaborative Neuroscience Network, LLC ^(r)	L+11.50%		13.00	%	12/27/2017		6,120		6,059		5,814		2.4	%
Collaborative Neuroscience Network, LLC	n/a		12.00% Cash/ 3.00% PIK		12/27/2017		286		286		286		0.1	%
							6,406		6,345		6,100		2.5	%
Hotels, Gaming & Leisure
Playtime, LLC	L+8.50%		9.00% Cash/ 1.00% PIK		12/31/2021		5,405		5,381		4,797		2.0	%
							5,405		5,381		4,797		2.0	%
Services: Business
Output Services Group, Inc.	L+9.00%		9.50% Cash/ 1.00% PIK		12/17/2020		6,500		6,432		6,520		2.7	%
Output Services Group, Inc.	L+9.00%		9.50% Cash/ 1.00% PIK		12/17/2020		8,296		8,189		8,391		3.5	%
							14,796		14,621		14,911		6.2	%
Wholesale
Gracelock Industries, LLC	L+13.74%		11.00% Cash/ 4.24% PIK	^(s)	5/7/2019		4,888		4,816		4,500		1.9	%
							4,888		4,816		4,500		1.9	%
Total Non-Controlled/Non-Affiliate Unitranche Loans							57,993		57,361		51,638		21.4	%

Junior Secured Loans
Aerospace & Defense
AIM Aerospace, Inc.	L+9.00%		10.00	%	8/2/2022		5,000		4,933		5,040		2.1	%
							5,000		4,933		5,040		2.1	%
Banking, Finance, Insurance & Real Estate
Confie Seguros Holdings II Co.	L+9.00%		10.25	%	5/8/2019		8,594		8,215		8,547		3.5	%
							8,594		8,215		8,547		3.5	%
Beverage, Food & Tobacco
CSM Bakery Supplies LLC	L+7.75%		8.75	%	7/3/2021		5,792		5,792		4,335		1.8	%
							5,792		5,792		4,335		1.8	%
Chemicals, Plastics & Rubber
New NSI Holdings, Inc.	L+8.25%		9.25	%	7/28/2022		4,000		3,949		4,040		1.7	%
							4,000		3,949		4,040		1.7	%
Consumer Goods: Non-Durable
Mud Pie, LLC	n/a		10.00% Cash/ 1.50% PIK		11/4/2020		5,221		5,145		5,325		2.2	%
							5,221		5,145		5,325		2.2	%
High Tech Industries
Hyland Software Inc.	L+7.25%		8.25	%	7/1/2023		5,000		4,832		5,100		2.1	%
Micro Holdings Corp.	L+7.50%		8.50	%	7/8/2022		5,590		5,475		5,590		2.3	%
							10,590		10,307		10,690		4.4	%
Media: Broadcasting & Subscription
Mergermarket USA, Inc.	L+6.50%		7.50	%	12/19/2021		4,500		4,400		4,371		1.8	%
							4,500		4,400		4,371		1.8	%
Media: Diversified & Production
SCP TPZ Acquisition, Inc.	L+8.25%		9.25	%	5/29/2022		5,000		4,938		4,938		2.1	%
							5,000		4,938		4,938		2.1	%
Services: Business
Sterling Merger Sub Corp.	L+7.75%		8.75	%	6/19/2023		5,000		4,958		4,892		2.0	%
							5,000		4,958		4,892		2.0	%
Services: Consumer
Education Corporation of America	L+11.00%		12.00	%	12/31/2018		4,167		4,099		4,167		1.7	%
Pre-Paid Legal Services, Inc. (Legal Shield)	L+9.00%		10.25	%	7/1/2020		3,000		3,000		3,021		1.3	%
							7,167		7,099		7,188		3.0	%
Total Non-Controlled/Non-Affiliate Junior Secured Loans							60,864		59,736		59,366		24.6	%

Equity Securities ^(t)
Aerospace & Defense
Cyalume Technologies Holdings, Inc. - Series D Preferred Stock (3.06 shares)	-		-	^(u)	-		-		-		697		0.3	%
									-		697		0.3	%
Automotive
Fabco Automotive Corporation (warrant to purchase up to 1.87% of the equity)	-		-	^(u)	-		-		-		-		0.0	%
									-		-		0.0	%
Healthcare & Pharmaceuticals
Collaborative Neuroscience Network, LLC (warrant to purchase up to 4 LLC units)	-		-	^(u)	12/27/2022		-		-		-		0.0	%
									-		-		0.0	%


	Notional Amount		Notional Amount			Settlement	Unrealized Gain
Description	to be Purchased		to be Sold		Counterparty	Date	(Loss)
Foreign currency forward contract	$	107	AUD	138	Bannockburn Global Forex, LLC	7/18/2022	$	11
Foreign currency forward contract	$	108	AUD	140	Bannockburn Global Forex, LLC	8/16/2022		11
Foreign currency forward contract	$	118	AUD	153	Bannockburn Global Forex, LLC	9/16/2022		13
Foreign currency forward contract	$	117	AUD	152	Bannockburn Global Forex, LLC	10/19/2022		12
Foreign currency forward contract	$	105	AUD	136	Bannockburn Global Forex, LLC	11/16/2022		11
Foreign currency forward contract	$	109	AUD	142	Bannockburn Global Forex, LLC	12/16/2022		11
Foreign currency forward contract	$	118	AUD	153	Bannockburn Global Forex, LLC	1/18/2023		13
Foreign currency forward contract	$	108	AUD	140	Bannockburn Global Forex, LLC	2/16/2023		11
Foreign currency forward contract	$	102	AUD	132	Bannockburn Global Forex, LLC	3/16/2023		11
Foreign currency forward contract	$	123	AUD	160	Bannockburn Global Forex, LLC	4/20/2023		13
Foreign currency forward contract	$	93	AUD	121	Bannockburn Global Forex, LLC	5/16/2023		9
Foreign currency forward contract	$	121	AUD	156	Bannockburn Global Forex, LLC	6/19/2023		13
Foreign currency forward contract	$	107	AUD	138	Bannockburn Global Forex, LLC	7/18/2023		11
Foreign currency forward contract	$	113	AUD	146	Bannockburn Global Forex, LLC	8/16/2023		12
Foreign currency forward contract	$	113	AUD	146	Bannockburn Global Forex, LLC	9/18/2023		12
Foreign currency forward contract	$	114	AUD	148	Bannockburn Global Forex, LLC	10/18/2023		12
Foreign currency forward contract	$	107	AUD	140	Bannockburn Global Forex, LLC	11/16/2023		11
Foreign currency forward contract	$	109	AUD	142	Bannockburn Global Forex, LLC	12/18/2023		11
Foreign currency forward contract	$	115	AUD	150	Bannockburn Global Forex, LLC	1/17/2024		12
Foreign currency forward contract	$	110	AUD	143	Bannockburn Global Forex, LLC	2/16/2024		11
Foreign currency forward contract	$	11,827	AUD	15,410	Bannockburn Global Forex, LLC	3/18/2024		1,190
							$	1,421


	Spread
	Above				Acquisition					Fair		% of
Portfolio Company ^(a)	Index ^(b)		Interest Rate		Date ^(c)	Maturity	Principal	Amortized Cost		Value ^(d)		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	%


	Notional
	Amount		Notional Amount			Settlement	Unrealized Gain
Description	to be Purchased		to be Sold		Counterparty	Date	(Loss)
Foreign currency forward contract	$	101	£	82	Bannockburn Global Forex, LLC	1/3/2022	$	(10)
Foreign currency forward contract	$	97	£	79	Bannockburn Global Forex, LLC	4/4/2022		(10)
Foreign currency forward contract	$	36	£	29	Bannockburn Global Forex, LLC	5/6/2022		(3)
Foreign currency forward contract	$	121	AUD	156	Bannockburn Global Forex, LLC	1/19/2022		8
Foreign currency forward contract	$	105	AUD	136	Bannockburn Global Forex, LLC	2/16/2022		7
Foreign currency forward contract	$	102	AUD	132	Bannockburn Global Forex, LLC	3/16/2022		6
Foreign currency forward contract	$	113	AUD	146	Bannockburn Global Forex, LLC	4/19/2022		7
Foreign currency forward contract	$	107	AUD	138	Bannockburn Global Forex, LLC	5/17/2022		7
Foreign currency forward contract	$	119	AUD	153	Bannockburn Global Forex, LLC	6/17/2022		7
Foreign currency forward contract	$	107	AUD	138	Bannockburn Global Forex, LLC	7/18/2022		7
Foreign currency forward contract	$	108	AUD	140	Bannockburn Global Forex, LLC	8/16/2022		7
Foreign currency forward contract	$	118	AUD	153	Bannockburn Global Forex, LLC	9/16/2022		7
Foreign currency forward contract	$	117	AUD	152	Bannockburn Global Forex, LLC	10/19/2022		7
Foreign currency forward contract	$	105	AUD	136	Bannockburn Global Forex, LLC	11/16/2022		6
Foreign currency forward contract	$	109	AUD	142	Bannockburn Global Forex, LLC	12/16/2022		7
Foreign currency forward contract	$	118	AUD	153	Bannockburn Global Forex, LLC	1/18/2023		7
Foreign currency forward contract	$	108	AUD	140	Bannockburn Global Forex, LLC	2/16/2023		6
Foreign currency forward contract	$	102	AUD	132	Bannockburn Global Forex, LLC	3/16/2023		6
Foreign currency forward contract	$	123	AUD	160	Bannockburn Global Forex, LLC	4/20/2023		7
Foreign currency forward contract	$	93	AUD	121	Bannockburn Global Forex, LLC	5/16/2023		5
Foreign currency forward contract	$	121	AUD	156	Bannockburn Global Forex, LLC	6/19/2023		7
Foreign currency forward contract	$	107	AUD	138	Bannockburn Global Forex, LLC	7/18/2023		6
Foreign currency forward contract	$	113	AUD	146	Bannockburn Global Forex, LLC	8/16/2023		6
Foreign currency forward contract	$	113	AUD	146	Bannockburn Global Forex, LLC	9/18/2023		6
Foreign currency forward contract	$	114	AUD	148	Bannockburn Global Forex, LLC	10/18/2023		6
Foreign currency forward contract	$	107	AUD	140	Bannockburn Global Forex, LLC	11/16/2023		6
Foreign currency forward contract	$	109	AUD	142	Bannockburn Global Forex, LLC	12/18/2023		6
Foreign currency forward contract	$	115	AUD	150	Bannockburn Global Forex, LLC	1/17/2024		6
Foreign currency forward contract	$	110	AUD	143	Bannockburn Global Forex, LLC	2/16/2024		6
Foreign currency forward contract	$	11,827	AUD	15,410	Bannockburn Global Forex, LLC	3/18/2024		635
							$	781


	June 30, 2022				December 31, 2021
Amortized Cost:
Senior secured loans	$	412,195	72.7	%	$	415,600	72.1	%
Unitranche secured loans		58,752	10.4			70,977	12.3
Junior secured loans		20,020	3.5			14,317	2.5
LLC equity interest in SLF		42,650	7.5			42,150	7.3
Equity securities		33,512	5.9			33,134	5.8
Total	$	567,129	100.0	%	$	576,178	100.0	%

	September 30, 2017				December 31, 2016
Fair Value:
Senior secured loans	$	327,984	76.1	%	$	275,253	66.7	%
Unitranche loans		44,592	10.4			51,638	12.5
Junior secured loans		38,555	8.9			59,366	14.4
Equity securities		19,966	4.6			26,663	6.4
Total	$	431,097	100.0	%	$	412,920	100.0	%


	As of
	June 30, 2022		December 31, 2021
Senior secured loans ⁽¹⁾	207,803		193,062
Weighted average current interest rate on senior secured loans ⁽²⁾	7.1	%	5.9	%
Number of portfolio company investments in SLF	62		57
Largest portfolio company investment ⁽¹⁾	6,685		6,720
Total of five largest portfolio company investments ⁽¹⁾	26,996		27,074


	Spread Above
Portfolio Company ^(a)	Index (b)			Interest Rate ^(b)		Maturity	Principal	Fair Value
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
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


	Fair Value Measurements
June 30, 2022	Level 1		Level 2		Level 3		Total
Investments:
Senior secured loans	$	—	$	—	$	415,244	$	415,244
Unitranche secured loans		—		—		34,114		34,114
Junior secured loans		—		—		19,745		19,745
Equity securities		548		—		28,837		29,385
Investments measured at NAV ^{(1) (2)}		—		—		—		37,551
Total investments	$	548	$	—	$	497,940	$	536,039
Foreign currency forward contracts asset (liability)	$	—	$	1,421	$	—	$	1,421

	Fair Value Measurements
	Level 1		Level 2		Level 3		Total

									Fair Value Measurements
December 31, 2021									Level 1		Level 2		Level 3		Total
Investments:
Senior secured loans	$	—	$	—	$	327,984	$	327,984	$	—	$	—	$	423,700	$	423,700
Unitranche loans		—		—		44,592		44,592
Unitranche secured loans										—		—		51,494		51,494
Junior secured loans		—		—		38,555		38,555		—		—		14,364		14,364
Equity securities		—		—		19,966		19,966		1,041		—		29,969		31,010
Total Investments	$	—	$	—	$	431,097	$	431,097

Secured borrowings	$	—	$	—	$	—	$	—
Investments measured at NAV ^{(1) (2)}										—		—		—		41,125
Total investments									$	1,041	$	—	$	519,527	$	561,693
Foreign currency forward contracts asset (liability)									$	—	$	781	$	—	$	781

	Investments
	Senior secured loans			Unitranche loans			Junior secured loans			Equity securities			Total investments			Secured borrowings
Balance as of June 30, 2017	$	351,491		$	37,302		$	37,709		$	19,047		$	445,549		$	—
Reclassifications⁽¹⁾		(15,747	)		15,747			—			—			—			—
Net change in unrealized gain (loss) on investments		(3,380	)		4,554			305			919			2,398			—
Net realized gain (loss) on investments		—			(3,399	)		7			492			(2,900	)		—
Purchases of investments and other adjustments to cost⁽²⁾		44,119			225			10,691			—			55,035			—
Proceeds from principal payments and sales on investments ⁽³⁾		(48,499	)		(9,837	)		(10,157	)		(492	)		(68,985	)		—
Net change in unrealized gain (loss) on secured borrowings		—			—			—			—			—			—
Repayments on secured borrowings		—			—			—			—			—			—
Net realized (gain) loss on secured borrowings		—			—			—			—			—			—
Balance as of September 30, 2017	$	327,984		$	44,592		$	38,555		$	19,966		$	431,097		$	—


	Investments
	Senior		Unitranche		Junior		Equity		Total Level 3
	secured loans		secured loans		secured loans		securities		investments
Balance as of March 31, 2022	$	418,798	$	34,785	$	19,521	$	30,930	$	504,034
Net realized gain (loss) on investments		(12)		—		—		32		20
Net change in unrealized gain (loss) on investments		(4,674)		(2,480)		(90)		(1,844)		(9,088)
Purchases of investments and other adjustments to cost ⁽¹⁾		20,190		1,878		314		42		22,424
Proceeds from principal payments and sales of investments ⁽²⁾		(19,058)		(69)		—		(323)		(19,450)
Balance as of June 30, 2022	$	415,244	$	34,114	$	19,745	$	28,837	$	497,940


						Weighted
					Unobservable	Average		Range
	Fair Value			Valuation Technique	Input	Mean		Minimum		Maximum
Assets:
Senior secured loans	$	258,381		Discounted cash flow	EBITDA multiples	10.2x		4.0x		36.5x
					Market yields	10.9	%	4.4	%	20.0	%
Senior secured loans		103,333		Discounted cash flow	Revenue multiples	4.4x		0.6x		12.0x
					Market yields	12.2	%	7.9	%	20.1	%
Senior secured loans		22,345		Enterprise value	EBITDA multiples	9.7x		6.4x		11.0x
Senior secured loans		21,985		Enterprise value	Book value multiples	1.2x		1.2x		1.2x
Senior secured loans		5,908		Enterprise value	Revenue multiples	2.5x		2.5x		2.5x
Senior secured loans		2,149		Liquidation	Probability weighting of alternative outcomes	84.4	%	39.3	%	100.0	%
Unitranche secured loans		30,584		Discounted cash flow	EBITDA multiples	8.5x		6.5x		11.5x
					Market yields	9.3	%	8.3	%	11.4	%
Unitranche secured loans		3,530		Discounted cash flow	Revenue multiples	9.0x		5.8x		12.5x
					Market yields	8.9	%	7.6	%	10.5	%
Junior secured loans		19,165		Discounted cash flow	Market yields	16.1	%	10.5	%	27.6	%
Junior secured loans		580		Liquidation	Probability weighting of alternative outcomes	69.6	%	69.6	%	69.6	%
Equity securities		15,548		Enterprise value	EBITDA multiples	7.6x		4.0x		16.0x
Equity securities		7,468		Enterprise value	Revenue multiples	3.1x		0.7x		11.3x
Equity securities		2,295		Liquidation	Probability weighting of alternative outcomes	20.4	%	20.4	%	20.4	%
Equity securities		418		Discounted cash flow	EBITDA multiples	7.0x		7.0x		7.0x
					Market yields	25.0	%	25.0	%	25.0	%
Equity securities		209		Option pricing model	Volatility	46.8	%	46.8	%	46.8	%
Total Level 3 Assets	$	493,898	⁽¹⁾


							Sales and		PIK						Net
	Fair value at		Transfers		Purchases		paydowns		interest		Discount		Net realized		unrealized		Fair value at
Portfolio Company	December 31, 2021		in (out)		(cost)		(cost)		(cost)		accretion		gain (loss)		gain (loss)		June 30, 2022
Non-controlled affiliate company investment:
American Community Homes, Inc.	$	10,457	$	—	$	—	$	—	$	466	$	—	$	—	$	(804)	$	10,119
American Community Homes, Inc.		4,753		—		—		—		325		—		—		(373)		4,705
American Community Homes, Inc.		634		—		—		—		28		—		—		(49)		613
American Community Homes, Inc.		3,164		—		—		—		104		—		—		(1,012)		2,256
American Community Homes, Inc.		4,357		—		—		—		192		—		—		(373)		4,176
American Community Homes, Inc.		20		—		—		—		1		—		—		(1)		20
American Community Homes, Inc.		99		—		—		—		4		—		—		(7)		96
American Community Homes, Inc. (Revolver)		—		—		—		—		—		—		—		—		—
American Community Homes, Inc. (warrant to purchase up to 22.3% of the equity)		264		—		—		—		—		—		—		(264)		—
		23,748		—		—		—		1,120		—		—		(2,883)		21,985

Ascent Midco, LLC		6,392		—		—		(87)		—		14		—		(15)		6,304
Ascent Midco, LLC (Revolver)		—		—		—		—		—		—		—		—		—
Ascent Midco, LLC (2,032,258 Class A units)		2,554		—		—		—		—		—		—		(936)		1,618
		8,946		—		—		(87)		—		14		—		(951)		7,922

Curion Holdings, LLC		4,561		—		—		(97)		—		—		—		1,442		5,906
Curion Holdings, LLC (Revolver)		550		—		92		(470)		—		—		—		165		337
Curion Holdings, LLC (Junior secured loan)		—		—		—		—		—		—		—		—		—
Curion Holdings, LLC (Junior secured loan)		—		—		—		—		—		—		—		—		—
Curion Holdings, LLC (58,779 shares of common stock)		—		—		—		—		—		—		—		—		—
		5,111		—		92		(567)		—		—		—		1,607		6,243

Familia Dental Group Holdings, LLC (1,158 Class A units)		1,919		—		183		—		—		—		—		653		2,755
		1,919		—		183		—		—		—		—		653		2,755

HFZ Capital Group, LLC		15,084		—		—		—		—		—		—		533		15,617
HFZ Capital Group, LLC		5,420		—		—		—		—		—		—		191		5,611
MC Asset Management (Corporate), LLC		7,154		—		—		—		590		—		—		—		7,744
MC Asset Management (Corporate), LLC (Delayed Draw)		850		—		—		—		70		—		—		—		920
MC Asset Management (Corporate), LLC (15.9% interests)		644		—		—		—		—		—		—		(205)		439
		29,152		—		—		—		660		—		—		519		30,331

Mnine Holdings, Inc.		5,771		—		—		—		137		9		—		(9)		5,908
Mnine Holdings, Inc. (6,400 Class B units)		—		—		—		—		—		—		—		—		—
		5,771		—		—		—		137		9		—		(9)		5,908

NECB Collections, LLC (Revolver)		632		—		—		—		—		—		—		(117)		515
NECB Collections, LLC (20.8% of units)		—		—		—		—		—		—		—		—		—
		632		—		—		—		—		—		—		(117)		515

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		—		—		—		—		—		—		(118)		3,030
		3,148		—		—		—		—		—		—		(118)		3,030
Total non-controlled affiliate company investments	$	90,281	$	—	$	763	$	(654)	$	1,917	$	23	$	—	$	(1,299)	$	91,031

Controlled affiliate company investments:
MRCC Senior Loan Fund I, LLC	$	41,125	$	—	$	500	$	—	$	—	$	—	$	—	$	(4,074)	$	37,551
		41,125		—		500		—		—		—		—		(4,074)		37,551
Total Controlled affiliate company investments	$	41,125	$	—	$	500	$	—	$	—	$	—	$	—	$	(4,074)	$	37,551

Portfolio Company	Fair value at December 31, 2016		Transfers in (out)		Purchases (cost)		Sales and paydowns (cost)			PIK interest (cost)		Discount accretion			Net realized gains (losses)		Net unrealized gains (losses)			Fair value at September 30, 2017
Non-controlled affiliate company investments⁽¹⁾ :
American Community Homes, Inc.	$	13,950	$	—	$	647	$	—		$	168	$	52		$	—	$	(1,310	)	$	13,507
Luxury Optical Holdings Co.⁽²⁾		—		3,970		808		—			68		4			—		(364	)		4,486
Rockdale Blackhawk, LLC⁽³⁾		27,077		—		4,161		(16	)		—		147			—		(6,394	)		24,975
Rocket Dog Brands, LLC		1,054		—		—		—			130		(1	)		—		(927	)		256
SHI Holdings, Inc.		4,297		—		833		—			—		15					307			5,452
Summit Container Corporation		3,663		—		1,499		(102	)		55		18			—		(214	)		4,919
Total non-controlled affiliate company investments	$	50,041	$	3,970	$	7,948	$	(118	)	$	421	$	235		$	—	$	(8,902	)	$	53,595
Controlled affiliate company investments⁽¹⁾ :
TPP Acquisition, Inc.⁽⁴⁾	$	—	$	—	$	—	$	—		$	—	$	—		$	—	$	—		$	—
TPP Operating, Inc.⁽⁴⁾		8,899		—		4,330		(972	)		—		—			—		(3,389	)		8,868
Total controlled affiliate company investments	$	8,899	$	—	$	4,330	$	(972	)	$	—	$	—		$	—	$	(3,389	)	$	8,868

Portfolio Company	Fair value at December 31, 2015		Transfers in (out)		Purchases (cost)		Sales and paydowns (cost)			PIK interest (cost)		Discount accretion		Net realized gains (losses)		Net unrealized gains (losses)			Fair value at September 30, 2016
Non-controlled affiliate company investments⁽¹⁾ :
American Community Homes, Inc.	$	11,692	$	—	$	488	$	—		$	153	$	44	$	—	$	1,045		$	13,422
Rockdale Blackhawk, LLC		21,903		—		462		(2,187	)		—		140		—		3,945			24,263
Rocket Dog Brands, LLC		1,752		—		384		(12	)		319		7		—		(1,293	)		1,157
Summit Container Corporation		3,400		—		137		(141	)		48		20		—		117			3,581
Total non-controlled affiliate company investments	$	38,747	$	—	$	1,471	$	(2,340	)	$	520	$	211	$	—	$	3,814		$	42,423
Controlled affiliate company investments⁽¹⁾ :
TPP Acquisition, Inc.	$	6,525	$	—	$	4,769	$	(1,304	)	$	—	$	—	$	—	$	(3,741	)	$	6,249
Total controlled affiliate company investments	$	6,525	$	—	$	4,769	$	(1,304	)	$	—	$	—	$	—	$	(3,741	)	$	6,249

	For the nine months ended September 30,
	2017						2016
Portfolio Company	Interest income		Dividend income		Fee income		Interest income		Dividend income		Fee income
Non-controlled affiliate company investments ⁽¹⁾ :
American Community Homes, Inc.	$	1,142	$	—	$	—	$	1,073	$	—	$	—
Luxury Optical Holdings Co.		142		—		—		—		—		—
Rockdale Blackhawk, LLC		1,518		—		—		1,373		3,546		—
Rocket Dog Brands, LLC		126		—		—		351		—		—
SHI Holdings, Inc.		367		—		—		—		—		—
Summit Container Corporation		482		—		—		485		—		—
Total non-controlled affiliate company investments	$	3,777	$	—	$	—	$	3,282	$	3,546	$	—
Controlled affiliate company investments⁽¹⁾:
TPP Acquisition, Inc.	$	—	$	—	$	—	$	30	$	—	$	—
TPP Operating, Inc.		594		—		—		—		—		—
Total controlled affiliate company investments	$	594	$	—	$	—	$	30	$	—	$	—


	For the six months ended June 30,
	2022						2021
	Interest		Dividend				Interest		Dividend
Portfolio Company	Income		Income		Fee Income		Income		Income		Fee Income
Non-controlled affiliate company investments:
American Community Homes, Inc.	$	592	$	—	$	—	$	553	$	—	$	—
American Community Homes, Inc.		383		—		—		371		—		—
American Community Homes, Inc.		n/a		n/a		n/a		13		—		—
American Community Homes, Inc.		36		—		—		33		—		—
American Community Homes, Inc.		n/a		n/a		n/a		5		—		—
American Community Homes, Inc.		132		—		—		123		—		—
American Community Homes, Inc.		244		—		—		228		—		—
American Community Homes, Inc.		1		—		—		23		—		—
American Community Homes, Inc.		5		—		—		6		—		—
American Community Homes, Inc. (Revolver)		18		—		—		—		—		—
American Community Homes, Inc. (Warrant)		—		—		—		—		—		—
		1,411		—		—		1,355		—		—

Ascent Midco, LLC		225		—		—		247		—		—
Ascent Midco, LLC (Delayed Draw)		n/a		n/a		n/a		8		—		—
Ascent Midco, LLC (Revolver)		2		—		—		2		—		—
Ascent Midco, LLC (Class A units)		—		93		—		—		86		—
		227		93		—		257		86		—

Curion Holdings, LLC		—		—		—		—		—		—
Curion Holdings, LLC (Revolver)		—		—		—		—		—		—
Curion Holdings, LLC (Junior secured loan)		—		—		—		—		—		—
Curion Holdings, LLC (Junior secured loan)		—		—		—		—		—		—
Curion Holdings, LLC (Common stock)		—		—		—		—		—		—
		—		—		—		—		—		—

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

HFZ Capital Group, LLC		932		—		—		932		—		—
HFZ Capital Group, LLC		335		—		—		335		—		—
MC Asset Management (Corporate), LLC		611		—		—		450		—		—
MC Asset Management (Corporate), LLC (Delayed Draw)		72		—		—		23		—		—
MC Asset Management (Corporate), LLC (LLC interest)		—		—		—		—		—		—
MC Asset Management (Industrial), LLC		n/a		n/a		n/a		1,073		—		—
		1,950		—		—		2,813		—		—

Incipio, LLC		n/a		n/a		n/a		—		—		—
Incipio, LLC		n/a		n/a		n/a		—		—		—
Incipio, LLC		n/a		n/a		n/a		—		—		—
Incipio, LLC		n/a		n/a		n/a		—		—		—
Incipio, LLC		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 (Common units)		n/a		n/a		n/a		—		—		—
		n/a		n/a		n/a		—		—		—

Luxury Optical Holdings Co.		n/a		n/a		n/a		—		—		—
Luxury Optical Holdings Co. (Delayed Draw)		n/a		n/a		n/a		—		—		—
Luxury Optical Holdings Co. (Revolver)		n/a		n/a		n/a		—		—		—
Luxury Optical Holdings Co. (Preferred units)		n/a		n/a		n/a		—		—		—
Luxury Optical Holdings Co. (Common stock)		n/a		n/a		n/a		—		—		—
		n/a		n/a		n/a		—		—		—

Mnine Holdings, Inc.		364		—		—		673		—		—
Mnine Holdings, Inc. (Class B units)		—		—		—		—		—		—
		364		—		—		673		—		—

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

Second Avenue SFR Holdings II LLC (Revolver)		98		—		—		n/a		n/a		n/a
		98		—		—		n/a		n/a		n/a

SFR Holdco, LLC (Junior secured loan)		234		—		—		n/a		n/a		n/a
SFR Holdco, LLC (LLC interest)		—		—		—		n/a		n/a		n/a
		234		—		—		n/a		n/a		n/a

SHI Holdings, Inc.		n/a		n/a		n/a		—		—		—
SHI Holdings, Inc. (Revolver)		n/a		n/a		n/a		—		—		—
SHI Holdings, Inc. (Common stock)		n/a		n/a		n/a		—		—		—
		n/a		n/a		n/a		—		—		—

Summit Container Corporation		n/a		n/a		n/a		57		—		—
Summit Container Corporation (Revolver)		n/a		n/a		n/a		35		—		—
Summit Container Corporation (Warrant)		n/a		n/a		n/a		—		—		—
		n/a		n/a		n/a		92		—		—

TJ Management HoldCo, LLC (Revolver)		5		—		—		6		—		—
TJ Management HoldCo, LLC (Common stock)		—		—		—		—		—		—
		5		—		—		6		—		—

Total non-controlled affiliate company investments	$	4,289	$	93	$	—	$	5,196	$	86	$	—

Controlled affiliate company investments:
MRCC Senior Loan Fund I, LLC	$	—	$	1,800	$	—	$	—	$	2,275	$	—
		—		1,800		—		—		2,275		—
Total controlled affiliate company investments	$	—	$	1,800	$	—	$	—	$	2,275	$	—


	As of June 30, 2022
				Gross		Gross
				Amount of		Amount of
	Notional Amount		Settlement	Unrealized		Unrealized
Description	to be Sold		Date	Gain		Loss		Balance Sheet location of Net Amounts
Foreign currency forward contract	AUD	138	7/18/2022	$	11	$	—	Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	140	8/16/2022		11		—	Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	153	9/16/2022		13		—	Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	152	10/19/2022		12		—	Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	136	11/16/2022		11		—	Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	142	12/16/2022		11		—	Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	153	1/18/2023		13		—	Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	140	2/16/2023		11		—	Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	132	3/16/2023		11		—	Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	160	4/20/2023		13		—	Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	121	5/16/2023		9		—	Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	156	6/19/2023		13		—	Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	138	7/18/2023		11		—	Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	146	8/16/2023		12		—	Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	146	9/18/2023		12		—	Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	148	10/18/2023		12		—	Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	140	11/16/2023		11		—	Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	142	12/18/2023		11		—	Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	150	1/17/2024		12		—	Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	143	2/16/2024		11		—	Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	15,410	3/18/2024		1,190		—	Unrealized gain on foreign currency forward contracts
				$	1,421	$	—


	As of December 31, 2021
				Gross		Gross
	Notional			Amount of		Amount of
	Amount to be		Settlement	Unrealized		Unrealized
Description	Sold		Date	Gain		Loss		Balance Sheet location of Net Amounts
Foreign currency forward contract	£	82	1/3/2022	$	—	$	(10)	Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	£	79	4/4/2022		—		(10)	Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	£	29	5/6/2022		—		(3)	Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	156	1/19/2022		8		—	Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	136	2/16/2022		7		—	Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	132	3/16/2022		6		—	Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	146	4/19/2022		7		—	Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	138	5/17/2022		7		—	Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	153	6/17/2022		7		—	Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	138	7/18/2022		7		—	Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	AUD	140	8/16/2022		7		—	Unrealized gain on foreign currency forward contracts
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)

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
Nine months ended September 30, 2017:
March 7, 2017	March 17, 2017	March 31, 2017	$	0.35	$	5,549		16,217	$	254		—	$	—
May 31, 2017	June 15, 2017	June 30, 2017		0.35		6,807		17,932		271		—		—
August 31, 2017	September 15, 2017	September 29, 2017		0.35		7,084		—		—		6,508		93
Total distributions declared			$	1.05	$	19,440		34,149	$	525		6,508	$	93

Nine months ended September 30, 2016:
March 4, 2016	March 15, 2016	March 31, 2016	$	0.35	$	4,553		—	$	—		20,144	$	277
June 1, 2016	June 15, 2016	June 30, 2016		0.35		4,553		—		—		18,518		275
August 30, 2016	September 15, 2016	September 30, 2016		0.35		5,730		4,493		70		—		—
Total distributions declared			$	1.05	$	14,836		4,493	$	70		38,662	$	552


												DRIP Shares
					Amount				DRIP	DRIP		Repurchased	Cost of
Date	Record		Payment		Per		Cash		Shares	Shares		in the Open	DRIP Shares
Declared	Date		Date		Share		Distribution		Issued	Value		Market	Repurchased
Six months ended June 30, 2022:
March 2, 2022		March 16, 2022		March 31, 2022	$	0.25	$	5,417	—	$	—	25,229	$	276
June 1, 2022		June 15, 2022		June 30, 2022		0.25		5,416	—		—	29,655		280
Total distributions declared					$	0.50	$	10,833	—	$	—	54,884	$	556

Six months ended June 30, 2021:
March 2, 2021		March 16, 2021		March 31, 2021	$	0.25	$	5,326	—	$	—	35,611	$	364
June 2, 2021		June 16, 2021		June 30, 2021		0.25		5,386	—		—	31,277		343
Total distributions declared					$	0.50	$	10,712	—	$	—	66,888	$	707

	September 30, 2017			September 30, 2016
Per share data:
Net asset value at beginning of period	$	14.52		$	14.19
Net investment income⁽¹⁾		1.05			1.24
Net gain (loss) on investments, secured borrowings and foreign currency borrowings⁽¹⁾		(0.50	)		(0.03	)
Net increase in net assets from operations⁽¹⁾		0.55			1.21
Stockholder distributions⁽²⁾		(1.05	)		(1.05	)
Other⁽³⁾		(0.01	)		0.07
Net asset value at end of period	$	14.01		$	14.42

Net assets at end of period	$	283,542		$	239,087
Shares outstanding at end of period		20,239,957			16,577,500
Per share market value at end of period	$	14.31		$	15.73
Total return based on market value⁽⁴⁾		(0.29	)%		28.98	%
Total return based on average net asset value⁽⁵⁾		3.78	%		8.41	%
Ratio/Supplemental data:
Ratio of net investment income to average net assets⁽⁶⁾		10.24	%		12.15	%
Ratio of total expenses to average net assets^{(6) (7)}		9.01	%		10.40	%
Average debt outstanding	$	177,739		$	153,163
Average debt outstanding per share	$	9.83		$	11.05
Portfolio turnover⁽⁸⁾		33.83	%		17.79	%


	June 30, 2022			June 30, 2021
Per share data:
Net asset value at beginning of period	$	11.51		$	11.00
Net investment income ⁽¹⁾		0.48			0.49
Net gain (loss) ⁽¹⁾		(0.78)			0.37
Net increase (decrease) in net assets resulting from operations ⁽¹⁾		(0.30)			0.86
Stockholder distributions - income ⁽²⁾		(0.50)			(0.50)
Net asset value at end of period	$	10.71		$	11.36
Net assets at end of period	$	232,121		$	244,797
Shares outstanding at end of period		21,666,340			21,543,540
Per share market value at end of period	$	9.03		$	10.73
Total return based on market value ⁽³⁾		(15.50)	%		40.00	%
Total return based on average net asset value ⁽⁴⁾		(2.69)	%		7.71	%
Ratio/Supplemental data:
Ratio of net investment income to average net assets ⁽⁵⁾		8.92	%		8.95	%
Ratio of total expenses, net of base management fee and incentive fee waivers, to average net assets ^{(5) (6)}		12.30	%		12.68	%
Portfolio turnover ⁽⁷⁾		7.82	%		18.69	%