The Monroe Capital Corporation, a business development company managed by Chicago-based lender Monroe Capital, has reported positive performance in the third quarter. The BDC’s net investment income was $3.8 million or 0.40 cents per share for the quarter ended Sept. 30, up from $3.5 million and 0.37 cents per share in the last quarter (ended June 30, 2014). This also represents the fourth consecutive quarter of growth for the publicly traded lending vehicle, the company announced this week (Nov. 10).
MRCC’s portfolio activity declined slightly, in the meantime. As of the end of the quarter, the company had debt and equity investments in 40 portfolio companies, with a total fair value of $234.7 million; compared to debt and equity investments in 42 portfolio companies, with a fair value of $237.7 million as of June 30. First lien loans represent 92.7 percent of the portfolio.
“In an environment where many other business development companies are experiencing declining per share net investment income and are not covering their dividends, we are pleased that we have been able to grow our per share net investment income for each of the last four quarters and are comfortably covering our current quarterly dividend of $0.34 per share,” chief executive Ted Koenig said in a statement. “We expect to continue to focus on growing our portfolio throughout the remainder of 2014, as we remain focused on creating high current income and long-term value for our public shareholders,” he added.
Monroe Capital Corporation is a publicly-traded specialty finance company that invests mostly in senior, unitranche and junior secured debt and, to a lesser extent, in unsecured debt and equity investments in mid-market companies. MRCC’s investment activities are managed by Monroe Capital BDC Advisors, an affiliate of Monroe Capital.
Monroe Capital provides senior and junior debt and equity co-investments to mid-market companies in the US and Canada. Its investment types include unitranche financings, cash flow and enterprise value based loans, acquisition facilities, mezzanine debt, second lien or last-out loans and equity co-investments.