MidCap Financial Investment (MFIC) came out with quarterly earnings of $0.40 per share, missing the Zacks Consensus Estimate of $0.41 per share. This compares to earnings of $0.46 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -2.44%. A quarter ago, it was expected that this investment company would post earnings of $0.43 per share when it actually produced earnings of $0.44, delivering a surprise of 2.33%.Over the last four ...

Exhibit 99.1 MidCap Financial Investment Corporation Reports Financial Results for the Quarter and Fiscal Year Ended December 31, 2024 Results for the Quarter and Fiscal Year Ended December 31, 2024 and Other Recent Highlights: New York, NY — February 25, 2025 — MidCap Financial Investment Corporation (NASDAQ: MFIC) or the "Company," today announced financial results for its quarter and fiscal year ended December 31, 2024. The Company's net investment income was $0.40 per share for the quarter ended Decembe ...

Financial Performance and Expenses - Administrative expenses for the fiscal year ended December 31, 2024, were $4.1 million, a decrease from $5.6 million in 2023 and an increase from $4 million in the nine months ended December 31, 2022[99]. - The company’s net investment income is influenced by the difference between borrowing rates and investment yields, with significant changes in market interest rates posing material risks[141]. - The company must distribute at least 90% of its investment company taxable income to maintain its RIC status, which includes ordinary income and net short-term capital gains[162]. - The company may distribute taxable dividends in cash and shares, potentially leading to tax liabilities exceeding cash received by stockholders[220]. - The company is required to achieve annual returns on its total assets of at least 3.51% to cover annual interest payments on its outstanding indebtedness[179]. Capital Structure and Debt - As of December 31, 2024, the company had approximately $970.1 million of outstanding borrowings under its senior secured credit facility and a total of $1,757.1 million in aggregate principal amount of indebtedness[179][181]. - The weighted average stated interest rate on the company's outstanding indebtedness as of December 31, 2024, was 6.38%[179]. - The asset coverage ratio must be at least 150% after borrowing, allowing the company to raise $200 for every $100 of net assets[168][178]. - If the asset coverage ratio declines below 150%, the company may be required to sell investments at disadvantageous prices[168]. - The company may seek to securitize loans to generate cash for new investments, but failure to do so could limit growth and adversely affect earnings[172]. Market and Economic Conditions - The current capital market environment is characterized by volatility, which may adversely affect the company's ability to raise or access debt capital[107]. - Significant disruptions in capital markets could negatively affect the valuations of the company's investments, potentially leading to liquidity challenges[109]. - Inflation and supply chain risks have negatively impacted the business and financial condition of portfolio companies, particularly in emerging economies[122]. - The ongoing armed conflicts, including the Russian invasion of Ukraine, may disrupt global markets and adversely affect investment performance[125]. - Economic downturns could impair portfolio companies' ability to repay loans, leading to increased non-performing assets and decreased portfolio value[238]. Interest Rate Risks - The company has experienced higher rates for debt capital raised over the last year due to the prevailing interest rate environment, impacting future financing costs[108]. - Changes in interest rates pose financial market risks, potentially impacting investment income and the credit quality of borrowers[118]. - An increase in interest rates could decrease the value of fixed interest investments and increase interest expenses, negatively impacting net income[119]. - Rising interest rates may increase the cost of debt for underlying portfolio companies, adversely impacting their financial performance[121]. - Interest rate fluctuations may negatively impact the value of the Company's portfolio investments, potentially affecting its financial condition and results of operations[140]. Regulatory and Compliance Issues - The company is subject to the Sarbanes-Oxley Act, which requires ongoing compliance monitoring and review of policies and procedures[103]. - Changes in U.S. federal income tax laws could materially affect the Company and its stockholders[147]. - The company is subject to changing regulations that could significantly affect operations and profitability[216]. - AGM has established information barriers to manage conflicts of interest, but these barriers may restrict advantageous investment opportunities[201]. - Cybersecurity risks pose a threat to the company's operations and those of its portfolio companies, potentially leading to operational disruptions[222]. Investment Strategy and Risks - The company primarily invests in privately-held companies, which presents challenges such as limited available information and reliance on key personnel[250]. - The company intends to invest primarily in senior debt securities, but portfolio companies may incur debt that ranks equally or senior to its investments, increasing risk[252]. - The incentive fee structure may encourage the company to make riskier investments, potentially leading to higher investment losses during economic downturns[254]. - The company may invest in foreign securities, exposing it to additional risks such as political instability and less available information compared to U.S. investments[258]. - The company faces competition from various entities, including public and private funds, which may have greater financial resources and lower costs of funds[157]. Cybersecurity and Technology Risks - Cybersecurity risks are increasing, with potential adverse effects on operations and financial results due to unauthorized access or data breaches[111]. - The Company is subject to risks associated with artificial intelligence, particularly regarding the use of machine learning technology by third-party service providers[149]. - The company's operations are heavily reliant on information systems, and any failure could adversely affect business performance and stock price[227]. - Cyber security has become a regulatory priority, and non-compliance could result in financial losses and reputational damage[224]. - The company faces significant risks from cyber security failures, which could lead to financial losses and operational disruptions[224]. Portfolio Management and Investment Opportunities - The allocation of investment opportunities among Apollo-advised funds may not always favor the company, potentially limiting desired portfolio structuring[205]. - The company may face challenges in making follow-on investments, which could impair the value of its portfolio[246]. - The company is restricted from entering into certain transactions with affiliates without prior approval, which may limit investment opportunities[197]. - The performance of the CLO Issuers will depend on the analytical and managerial expertise of the Company's investment professionals, with limited prior experience managing CLOs[289]. - The company may incur losses if required to dispose of a portion of the CLO Issuers' portfolio at inopportune times to satisfy obligations of the holders of the CLO Notes[291].

Financial Results - The company's net investment income for the quarter ended December 31, 2024, was $0.40 per share, a decrease from $0.44 per share for the quarter ended September 30, 2024 [1] - The net asset value (NAV) per share as of December 31, 2024, was $14.98, down from $15.10 as of September 30, 2024, reflecting a decrease of 0.8% [1][6] - Total assets as of December 31, 2024, were $3.19 billion, compared to $3.22 billion as of September 30, 2024 [7] Dividend Declaration - On February 21, 2025, the Board declared a dividend of $0.38 per share, payable on March 27, 2025, to stockholders of record as of March 11, 2025 [2][6] Investment Activity - New investment commitments made during the quarter totaled $255 million, while gross fundings, excluding revolver fundings, were $248 million [6][8] - Direct origination revolver fundings totaled $55 million, and repayments totaled $56 million during the quarter [4] Portfolio Composition - As of December 31, 2024, the investment portfolio's fair value was $3.01 billion, with 93% in secured debt [7][19] - The weighted average yield on first lien secured debt was 10.8% as of December 31, 2024 [19] Debt and Leverage - The company's net leverage ratio was 1.16x as of December 31, 2024 [6][7] - Outstanding debt obligations totaled $1.757 billion, with a significant portion under a multi-currency revolving credit facility [15] CLO Transaction - On February 24, 2025, the company completed a $529.6 million CLO transaction, which added $399.0 million of secured debt capital [6][16] - The CLO transaction is backed by a diversified portfolio of middle-market commercial loans [16][17] Management Commentary - The CEO noted that the company generated solid net investment income despite lower base rates and observed stability in certain credit metrics [3] - The CFO highlighted the benefits from the expertise in CLO management and structuring provided by MidCap Financial and Apollo Global [3]

Results for the Quarter and Fiscal Year Ended December 31, 2024 and Other Recent Highlights: Net investment income per share for the quarter was $0.40 Net asset value per share as of the end of the quarter was $14.98, compared to $15.10 as of September 30, 2024, a decrease of 0.8% New investment commitments made during the quarter totaled $255 million(1)Gross fundings, excluding revolver fundings(2), totaled $248 million for the quarterNet repayments, including revolvers(2), totaled $6 million for the quart ...

Core Points - MidCap Financial Investment Corporation will report its results for the quarter and fiscal year ended December 31, 2024, on February 25, 2025 [1] - A conference call will be held on February 26, 2025, at 8:30 a.m. Eastern Time for interested parties to discuss the results [2] Company Overview - MidCap Financial Investment Corporation is a closed-end, externally managed, diversified management investment company that qualifies as a business development company under the Investment Company Act of 1940 [3] - The company is externally managed by Apollo Investment Management, L.P., an affiliate of Apollo Global Management, Inc., focusing on generating current income and long-term capital appreciation [3] - The company primarily invests in first lien senior secured loans to privately held U.S. middle-market companies, defined as those with less than $75 million in EBITDA [3]

Core Viewpoint - MidCap Financial Investment Corporation will report its financial results for the quarter and fiscal year ended December 31, 2024, on February 25, 2025, after market close [1] Group 1: Financial Reporting - The company will host a conference call on February 26, 2025, at 8:30 a.m. Eastern Time for interested parties to discuss the financial results [2] - Participants can access the conference call via a dedicated phone line or through a webcast available on the company's website [2] Group 2: Company Overview - MidCap Financial Investment Corporation is a closed-end, externally managed, diversified management investment company classified as a business development company under the Investment Company Act of 1940 [3] - The company is managed by Apollo Investment Management, L.P., an affiliate of Apollo Global Management, Inc., focusing on generating current income and long-term capital appreciation [3] - The investment strategy primarily involves first lien senior secured loans to U.S. middle-market companies, defined as those with less than $75 million in EBITDA [3]

Core Viewpoint - MidCap Financial Investment Corporation (NASDAQ: MFIC) is a business development company focused on lending to middle market companies at a senior secured level [1] Company Overview - MidCap Financial Investment Corporation specializes in providing loans to middle market companies, indicating a strategic focus on a specific segment of the market [1] - The company operates as a business development company, which typically involves investing in and lending to small and medium-sized enterprises [1] Investment Strategy - The company is involved in income investing through various financial instruments, including common shares, preferred shares, and bonds [1] - The investment approach includes a focus on the broader economy and special situations involving specific companies [1] Background Information - The company is led by an individual with a strong educational background in history, political science, and an MBA specializing in Finance and Economics [1] - The leadership has extensive experience in investing, having been active in the field since 2000 [1]

Financial Data and Key Metrics Changes - MFIC's net investment income per share for Q3 2024 was $0.44, reflecting an annualized return on equity (ROE) of 11.5% [15][42] - GAAP EPS for the quarter was $0.31, with NAV per share at $15.10, down $0.08 or approximately 0.5% from the end of June [16][42] - The company recorded a modest net loss on its portfolio, with a net loss of $11.4 million or $0.13 per share [42][46] - At the end of September, MFIC's net leverage was 1.16 times compared to 1.45 times at the end of June [17][43] Business Line Data and Key Metrics Changes - In Q3, MFIC onboarded approximately $600 million of investments from the mergers, with about one-third in directly-originated loans [11][25] - New commitments in the September quarter totaled $371 million, up 30% from the prior quarter, across 27 different borrowers [23] - The weighted average yield at cost of the directly-originated lending portfolio was 11.6%, down from 12% in the previous quarter [29] Market Data and Key Metrics Changes - The current market environment benefits from solid economic growth, strong consumer activity, and robust credit markets [17][18] - There has been an increase in activity levels in credit markets, particularly in opportunistic refinancings and M&A transactions [18][19] - The weighted average spread on directly-originated corporate lending was 577 basis points, down 24 basis points compared to the end of June [30] Company Strategy and Development Direction - MFIC views the mergers with Apollo Senior Floating Rate Fund and Apollo Tactical Income Fund as transformational, increasing net assets by over 40% [10] - The company plans to gradually increase leverage over the coming quarters to reach its target leverage ratio of 1.4 times [14][43] - MFIC is focused on investing in first lien loans to middle-market companies, leveraging its strong origination capabilities [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding increased M&A activity in the latter half of Q4 and into 2025, driven by recent rate cuts and liquidity events [18][19] - The company is closely monitoring the impact of potential regulatory changes and tariffs on its borrowers and investment strategy [62][63] - Management noted that the overall credit quality of MFIC's direct-origination portfolio remains healthy, with no significant increase in amendment requests related to covenants or liquidity [30][31] Other Important Information - During the September quarter, MFIC paid a special one-time dividend of $0.20 per share in connection with the mergers, in addition to its regular quarterly dividend of $0.38 [22] - The company issued 28.5 million shares at NAV during the quarter as part of the merger consideration, resulting in approximately 93.8 million shares outstanding [47][51] Q&A Session Summary Question: Is MFIC more levered to prepayments for fee income? - Management indicated that while prepayments can lead to a pickup in fee income, the impact is not dramatic outside of the Life Sciences vertical [54][55] Question: What factors could drive the pace of rotating non-directly originated assets? - Management noted that the pace is influenced by macroeconomic conditions, pricing, and market risk, with a focus on managing deployment appropriately [56][57] Question: What are the implications of the election on the business? - Management highlighted potential changes in regulatory oversight and a more growth-oriented backdrop, which could increase M&A activity [62] Question: Can you provide color on the unrealized and realized loss per share for the quarter? - Management explained that losses were primarily from a restructuring of a specific company, with some offsetting gains from other sales [64] Question: What are the thoughts around share buybacks given the current leverage and market conditions? - Management stated that share buybacks would be considered when it is accretive compared to other uses of capital, emphasizing the importance of maintaining available capital [68][69]

Core Insights - MidCap Financial Investment (MFIC) reported revenue of $82.14 million for Q3 2024, a 20.5% increase year-over-year, with an EPS of $0.44 compared to $0.43 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate by 0.65%, while the EPS exceeded the consensus estimate by 2.33% [1] Financial Performance Metrics - Interest income was reported at $77.40 million, which is a 25% year-over-year increase but below the average estimate of $80.11 million [3] - Other income reached $1 million, slightly below the average estimate of $1.01 million, reflecting a significant year-over-year increase of 263.6% [3] - Dividend income surged to $0.70 million, compared to the estimated $0.19 million, marking a remarkable year-over-year increase of 573.1% [3] Stock Performance - Over the past month, MidCap Financial's shares returned +1%, underperforming the Zacks S&P 500 composite's +3.2% change [4] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance relative to the broader market in the near term [4]