Specialty finance company providing debt solutions to middle-market companies across various industries.
MidCap Financial Investment Corporation, formerly known as Apollo Investment Corporation, operates as a business development company (BDC) and a closed-end, externally managed, non-diversified management investment company. The firm specializes in private equity investments and leverages a broad range of strategies including leveraged buyouts, acquisitions, recapitalizations, growth capital, refinancing, and investments in private middle-market companies. MidCap Financial Investment Corporation provides various forms of direct capital such as mezzanine financing, first lien secured loans, stretch senior loans, unitranche loans, second lien secured loans, senior secured loans, unsecured debt, and subordinated debt and loans. Additionally, the firm seeks opportunities in Private Investment in Public Equity (PIPE) transactions and may acquire investments in the secondary market and structured products.
The investment strategy of MidCap Financial Investment Corporation is comprehensive, focusing on preferred equity, common equity/interests, and warrants, while also making equity co-investments. The firm’s portfolio can include cash equivalents, U.S. government securities, high-quality debt investments maturing in one year or less, high-yield bonds, distressed debt, and non-U.S. investments. In addition, the company invests in public companies that are thinly traded and other structured products such as collateralized loan obligations (CLOs) and credit-linked notes (CLNs). By maintaining a diversified portfolio across different asset classes and financial instruments, MidCap Financial Investment Corporation aims to balance risk and return while capitalizing on varied market opportunities.
MidCap Financial Investment Corporation primarily targets investments within the United States, focusing on a wide array of industries. These include construction and building materials, business services, plastics and rubber, advertising, capital equipment, education, cable television, chemicals, consumer products (both durable and non-durable), customer services, direct marketing, energy (including oil and gas, electricity, and utilities), aerospace and defense, wholesale, telecommunications, financial services, and hospitality sectors. The fund also invests in environmental industries, healthcare and pharmaceuticals, high-tech industries, beverages, food and tobacco, manufacturing, media (diversified and production), printing and publishing, retail, automation, aviation and consumer transport, and transportation, cargo, and distribution sectors. Typically, MidCap Financial Investment Corporation invests between $20 million and $250 million in its portfolio companies, with investments having stated maturities ranging from five to ten years. This strategic approach allows the firm to support a wide variety of businesses while aiming to generate substantial returns for its investors.