MidCap Financial Investment Corporation May 2024 Investor Presentation
Investor Presentation
Unless otherwise noted, information as of
Confidential and Proprietary - Not for distribution, in whole or in part, without the express written consent of
It should not be assumed that investments made in the future will be profitable or will equal the performance of the investments shown in this document.
Disclaimers, Definitions and Important Notes
Forward-Looking Statements
Some of the statements in this presentation constitute forward-looking statements because they relate to future events, future performance or financial condition. The forward-looking statements may include statements as to: future operating results of
statements, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that they may make directly to you or through reports that MFIC, AFT, and/or AIF in the future may file with the
Past Performance
Past performance is not indicative nor a guarantee of future returns, the realization of which is dependent on many factors, many of which are beyond the control of
Financial Data
Financial data used in this presentation for the periods shown is from MFIC's, AFT's and AIF's Form 10-K, Form N-CSR, Form 10-Q and Form N-CSRS filings, as applicable, with the
Additional Important Disclosure
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This presentation is confidential and may not be distributed, transmitted or otherwise communicated to |
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others, in whole or in part, without the express written consent of |
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with its subsidiaries, "Apollo") and is intended solely for the use of the persons to whom it has been |
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delivered. This presentation does not constitute an offer to sell, or the solicitation of an offer to buy, any |
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security, product or service. This presentation and the transactions, investments, products, services, securities |
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or other financial instruments referred to in this presentation are not directed to, or intended for distribution |
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to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or |
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other jurisdiction where such distribution, publication, availability or use would be contrary to any laws or |
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regulations. Recipients may only use this presentation to the extent permitted by the applicable laws and |
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regulations and should be aware of and observe all such applicable laws and regulations. |
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Disclaimers, Definitions and Important Notes
"Assets Under Management", or "AUM", refers to the assets of the funds, partnerships and accounts to which Apollo provides investment management, advisory, or certain other investment-related services, including, without limitation, capital that such funds, partnerships and accounts have the right to call from investors pursuant to capital commitments. AUM equals the sum of:
- The net asset value ("NAV"), plus used or available leverage and/or capital commitments, or gross assets plus capital commitments, of the yield and certain hybrid funds, partnerships and accounts for which we provide investment management or advisory services, other than certain collateralized loan obligations ("CLOs"), collateralized debt obligations ("CDOs"), and certain perpetual capital vehicles, which have a fee- generating basis other than the mark-to-market value of the underlying assets; for certain perpetual capital vehicles in yield, gross asset value plus available financing capacity;
- The fair value of the investments of equity and certain hybrid funds, partnerships and accounts Apollo manages or advise, plus the capital that such funds, partnerships and accounts are entitled to call from investors pursuant to capital commitments, plus portfolio level financings;
- The gross asset value associated with the reinsurance investments of the portfolio company assets Apollo manages or advises; and
- The fair value of any other assets that Apollo manages or advises for the funds, partnerships and accounts to which Apollo provides investment management, advisory, or certain other investment-related services, plus unused credit facilities, including capital commitments to such funds, partnerships and accounts for investments that may require pre-qualification or other conditions before investment plus any other capital commitments to such funds, partnerships and accounts available for investment that are not otherwise included in the clauses above.
Apollo's AUM measure includes Assets Under Management for which Apollo charges either nominal or zero fees. Apollo's AUM measure also includes assets for which Apollo does not have investment discretion, including certain assets for which Apollo earns only investment-related service fees, rather than management or advisory fees. Apollo's definition of AUM is not based on any definition of Assets Under Management contained in its governing documents or in any management agreements of the funds Apollo manages. Apollo considers multiple factors for determining what should be included in its definition of AUM. Such factors include but are not limited to (1) Apollo's ability to influence the investment decisions for existing and available assets; (2) Apollo's ability to generate income from the underlying assets in funds it manages; and
(3) the AUM measures that Apollo uses internally or believe are used by other investment managers. Given the differences in the investment strategies and structures among other alternative investment managers, Apollo's calculation of AUM may differ from the calculations employed by other investment managers and, as a result, this measure may not be directly comparable to similar measures presented by other investment managers. Apollo's calculation also differs from the manner in which its affiliates registered with the
No Offer or Solicitation
This Presentation is not, and under no circumstances is it to be construed as, a prospectus or an advertisement and the communication of this Presentation is not, and under no circumstances is it to be construed as, an offer to sell or a solicitation of an offer to purchase any securities in MFIC, AFT or AIF or in any fund or other investment vehicle managed by Apollo or any of its affiliates.
Additional Information and Where to Find It
This presentation relates to the proposed Mergers (as defined below) and certain related matters (the "Proposals"). In connection with the Proposals, MFIC, AFT, and AIF filed with the
STATEMENT AND REGISTRATION STATEMENT, AND OTHER DOCUMENTS THAT ARE FILED OR WILL BE FILED WITH THE
Participants in the Solicitation
MFIC, its directors, certain of its executive officers and certain employees and officers of MFIC Adviser and its affiliates may be deemed to be participants in the solicitation of proxies in connection with the Proposals. Information about the directors and executive officers of MFIC is set forth in its proxy statement for its 2024 Annual Meeting of Stockholders, which was filed with the
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Table of Contents
Introduction
MFIC Investment Highlights
MFIC Recent Accomplishments and Portfolio Review
Proposed Mergers of MFIC, AFT, and AIF
Conclusion
Appendix
4
Introduction
5
INTRODUCTION
leading lender to middle
market companies
MFIC is a publicly traded (NASDAQ: MFIC) business development company ("BDC") treated as a regulated investment company ("RIC") for tax purposes focused on investing primarily in senior secured loans to middle market companies sourced from
Strong Alignment of Interest
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- Equity Ownership in MFIC
Apollo Global Management 3.8%-
MidCap Financial 2 3.0%
- MFIC Directors and Officers4 1.2%
Apollo is a high growth global alternative asset manager with approximately
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subsidiary of |
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Corporation's Investment Adviser. |
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definition of AUM. 3. |
is managed by |
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Excludes unvested restricted stock units. |
INTRODUCTION
MFIC Snapshot
General Corporate Information
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Ticker |
MFIC |
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Exchange |
NASDAQ Global Select |
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Net Assets |
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BBB- / Stable |
Investment Portfolio (at fair value)
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Investment Portfolio |
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# of Portfolio Companies |
154 |
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# of Industries |
23 |
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First Lien % 2 |
97% |
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Note: Past performance is not indicative nor a guarantee of future results. Information as of |
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statements of fact or recommendations to purchase, hold or sell securities. Apollo provides compensation directly to Kroll for its evaluation of the Fund. Credit ratings do not address the suitability of securities or the suitability of securities for investment purposes |
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and should not be relied on as investment advice. 2. Based on corporate lending portfolio which includes leveraged lending, life sciences, franchise finance, asset based and lender finance. |
NTRODUCTIO`N
Apollo Today: Integrated Asset Management and Retirement Services Capabilities
GLOBAL MANAGEMENT
$60B+
A SSE TMarket
MA
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4,900+ |
RE TIRE ME N T |
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Employees |
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Globally |
SE RVIC E S |
A / A2 / A
Rated by Fitch,
ASSET MANAGEMENT
Assets Under Management
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A / A2 / A |
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Rated by Fitch, |
Regulatory |
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Capital1 |
A+ / A1 / A+ / A
Rated by Fitch,
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Solutions across the alternative risk spectrum |
Wide range of retirement services |
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#1 |
Alternative Credit |
#1 |
Investment Grade |
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Business3 |
Alternative Credit Business3 |
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Long track record in Private Equity: |
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26% |
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YEARS |
IRR since inception: 39% (gross) 24% (net) |
#1 US Annuity Sales4
Total Earnings Growth (2022-2023)6
As of
represents the quarter-endinvestment-related cash flows to and from each applicable
INTRODUCTION
Key Members of Management
Team Working Together
- Founded in 2008
- Focused on senior debt solutions to middle market companies across multiple industries
- Extensive coverage of middle market sponsors
- Lead / sole lender on most transactions
- Privately-heldby institutional investors and managed by a subsidiary of Apollo
Scaled Platform with Strong Credit
- Well-establishedprovider of senior debt solutions to middle market companies and has what we believe to be an exceptionally strong track record through multiple economic cycles
25+ Years
Annual Originations2
~ $17 Bn
Commitments Managed / Serviced3
~ $50 Bn
Experienced Leadership Team
- Headquartered in
Bethesda, MD - Senior leadership of
MidCap Financial has deep industry expertise -MidCap Financial & other blue chip lenders includingMerrill Lynch Capital ,GE Capital , and Heller Financial
Managed by Apollo
- Hub of Apollo's private middle market credit business
- Sources assets for its own balance sheet and for other Apollo-managed capital, including
MFIC
Employees
~ 300
Global Offices
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Information as of
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MFIC Investment Highlights
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Attachments
Disclaimer


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