MidCap Financial Investment Cuts Quarterly Dividend to $0.31 Per Share
MidCap Financial Investment Corporation, a business development company, declared a quarterly dividend of $0.31 per share, a reduction from prior levels as the board reassesses long-term earnings power amid changing interest rates.
MidCap Financial Investment Corporation (NASDAQ: MFIC), a business development company focused on middle-market lending, declared a quarterly dividend of $0.31 per share on February 25, 2026. The dividend will be paid on March 26, 2026, to shareholders of record as of March 10, 2026. Read more dividend announcements.
The dividend represents a reduction from previous levels. Chief Executive Officer Tanner Powell said the board reassessed the company's long-term earnings power in light of changes in base rates and other factors, concluding that a dividend adjustment was prudent at this time.
| Dividend Details | Date |
|---|---|
| Amount Per Share | $0.31 |
| Record Date | March 10, 2026 |
| Payment Date | March 26, 2026 |
| Declaration Date | February 25, 2026 |
Fourth Quarter Financial Performance
MidCap Financial reported net investment income of $0.39 per share for the quarter ended December 31, 2025, compared to $0.38 per share in the prior quarter. Net asset value per share declined 3.3% to $14.18 as of December 31, 2025, from $14.66 at September 30, 2025. The company attributed the decline primarily to a handful of investments from 2022 and earlier vintages.
Total assets stood at $3.32 billion as of December 31, 2025, with an investment portfolio valued at $3.17 billion. Net assets totaled $1.31 billion, down from $1.37 billion in the prior quarter. Debt outstanding increased to $2.00 billion from $1.92 billion, pushing the net leverage ratio to 1.45x from 1.35x.
Investment Activity and Portfolio Composition
The company made new investment commitments totaling $141 million during the quarter, with gross fundings of $156 million excluding revolver activity. Net fundings including revolvers totaled $25 million. The portfolio comprised 247 companies as of December 31, 2025, up one from the prior quarter.
Software exposure represented 11.4% of the portfolio at fair value as of December 31, 2025. President and Chief Investment Officer Ted McNulty emphasized that this is meaningfully lower than the broader business development company industry, with the portfolio constructed to be relatively resilient to AI-related risks.
Stock Repurchase Activity
The board authorized a new $100 million stock repurchase plan. During the fourth quarter, the company repurchased 1,091,753 shares at a weighted average price of $11.81 per share, inclusive of commissions, for a total cost of $12.9 million. The repurchases generated $0.03 per share of net asset value accretion.
Powell said the company views repurchasing stock at a significant discount to net asset value as more accretive than deploying capital into new investments at current market levels. The company expects to utilize the authorization aggressively and anticipates fully deploying the current authorization by late May if the discount to net asset value and trading volumes remain at current levels.