MONROE CAPITAL Corp - FORM 10-Q

Attached files

file	filename
EX-31.1 - EXHIBIT 31.1 - MONROE CAPITAL Corp	tm2024618d1_ex31-1.htm
EX-31.2 - EXHIBIT 31.2 - MONROE CAPITAL Corp	tm2024618d1_ex31-2.htm
EX-32.1 - EXHIBIT 32.1 - MONROE CAPITAL Corp	tm2024618d1_ex32-1.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2020

¨	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number: 814-00866

MONROE CAPITAL CORPORATION

(Exact Name of Registrant as Specified in its Charter)

Maryland	27-4895840
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)

311 South Wacker Drive, Suite 6400 Chicago, Illinois	60606
(Address of Principal Executive Office)	(Zip Code)

(312) 258-8300

(Registrant’s Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class		Trading Symbol(s)		Name of Each Exchange on Which Registered
Common Stock, par value $0.001 per share 5.75% Notes due 2023		MRCC MRCCL		The Nasdaq Global Select Market The Nasdaq Global Select Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	¨	Accelerated filer	x

Non-accelerated filer	¨	Smaller reporting company	¨

Emerging growth company	¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x

As of August 4, 2020, the registrant had 21,303,540 shares of common stock, $0.001 par value, outstanding.

TABLE OF CONTENTS

		Page
PART I. FINANCIAL INFORMATION		3

Item 1.	Consolidated Financial Statements	3

	Consolidated Statements of Assets and Liabilities as of June 30, 2020 (unaudited) and December 31, 2019	3

	Consolidated Statements of Operations for the three and six months ended June 30, 2020 and 2019 (unaudited)	4

	Consolidated Statements of Changes in Net Assets for the three and six months ended June 30, 2020 and 2019 (unaudited)	5

	Consolidated Statements of Cash Flows for the six months ended June 30, 2020 and 2019 (unaudited)	6

	Consolidated Schedules of Investments as of June 30, 2020 (unaudited) and December 31, 2019	7

	Notes to Consolidated Financial Statements (unaudited)	25

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	56

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	81

Item 4.	Controls and Procedures	83

PART II. OTHER INFORMATION		84

Item 1.	Legal Proceedings	84

Item 1A.	Risk Factors	84

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	88

Item 3.	Defaults Upon Senior Securities	88

Item 4.	Mine Safety Disclosures	88

Item 5.	Other Information	88

Item 6.	Exhibits	88

Signatures		89

Part I. Financial Information

Item 1. Consolidated Financial Statements

MONROE CAPITAL CORPORATION

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

(in thousands, except per share data)

	June 30, 2020			December 31, 2019
	(unaudited)
ASSETS
Investments, at fair value:
Non-controlled/non-affiliate company investments	$	458,276		$	513,959
Non-controlled affiliate company investments		69,465			59,860
Controlled affiliate company investments		35,555			42,412
Total investments, at fair value (amortized cost of: $627,842 and $634,736, respectively)		563,296			616,231
Cash		7,443			2,234
Restricted cash		13,393			27,409
Unrealized gain on foreign currency forward contracts		15			—
Interest receivable		4,859			8,689
Other assets		1,091			495
Total assets		590,097			655,058

LIABILITIES
Debt:
Revolving credit facility		146,016			180,294
2023 Notes		109,000			109,000
SBA debentures payable		115,000			115,000
Total debt		370,016			404,294
Less: Unamortized deferred financing costs		(7,988	)		(8,053	)
Total debt, less unamortized deferred financing costs		362,028			396,241
Interest payable		2,683			2,763
Unrealized loss on foreign currency forward contracts		—			59
Management fees payable		2,434			2,751
Incentive fees payable		—			1,374
Accounts payable and accrued expenses		2,356			2,513
Total liabilities		369,501			405,701
Net assets	$	220,596		$	249,357

Commitments and contingencies (See Note 11)

ANALYSIS OF NET ASSETS
Common stock, $0.001 par value, 100,000 shares authorized, 21,270 and 20,445 shares issued and outstanding, respectively	$	21		$	20
Capital in excess of par value		295,116			288,850
Accumulated undistributed (overdistributed) earnings		(74,541	)		(39,513	)
Total net assets	$	220,596		$	249,357

Net asset value per share	$	10.37		$	12.20

See Notes to Consolidated Financial Statements.

MONROE CAPITAL CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

(in thousands, except per share data)

	Three months ended June 30,						Six months ended June 30,
	2020			2019			2020			2019
Investment income:
Non-controlled/non-affiliate company investments:
Interest income	$	14,461		$	13,743		$	26,808		$	26,573
Payment-in-kind interest income		855			115			926			213
Dividend income		(92	)		13			(76	)		26
Fee income		2,823			60			3,021			629
Total investment income from non-controlled/non-affiliate company investments		18,047			13,931			30,679			27,441
Non-controlled affiliate company investments:
Interest income		45			767			235			1,690
Payment-in-kind interest income		1,609			1,146			2,614			2,102
Dividend income		41			—			66			—
Total investment income from non-controlled affiliate company investments		1,695			1,913			2,915			3,792
Controlled affiliate company investments:
Dividend income		900			875			2,050			1,645
Total investment income from controlled affiliate company investments		900			875			2,050			1,645
Total investment income		20,642			16,719			35,644			32,878

Operating expenses:
Interest and other debt financing expenses		4,555			5,107			9,385			9,461
Base management fees		2,434			2,723			4,985			5,244
Incentive fees		—			1,168			—			2,768
Professional fees		322			272			537			561
Administrative service fees		314			319			652			666
General and administrative expenses		214			285			445			512
Directors' fees		40			40			75			75
Expenses before incentive fee waiver		7,879			9,914			16,079			19,287
Incentive fee waiver		—			(285	)		—			(566	)
Total expenses, net of incentive fee waiver		7,879			9,629			16,079			18,721
Net investment income before income taxes		12,763			7,090			19,565			14,157
Income taxes, including excise taxes		127			17			147			10
Net investment income		12,636			7,073			19,418			14,147

Net gain (loss):
Net realized gain (loss):
Non-controlled/non-affiliate company investments		2,461			35			2,555			35
Foreign currency forward contracts		22			2			18			(6	)
Foreign currency and other transactions		(1	)		(1	)		(16	)		(2	)
Net realized gain (loss)		2,482			36			2,557			27

Net change in unrealized gain (loss):
Non-controlled/non-affiliate company investments		(5,220	)		(2,749	)		(25,575	)		(461	)
Non-controlled affiliate company investments		98			(1,054	)		(13,609	)		(2,808	)
Controlled affiliate company investments		4,230			112			(6,857	)		435
Foreign currency forward contracts		(24	)		72			74			7
Foreign currency and other transactions		32			502			1,376			86
Net change in unrealized gain (loss)		(884	)		(3,117	)		(44,591	)		(2,741	)

Net gain (loss)		1,598			(3,081	)		(42,034	)		(2,714	)

Net increase (decrease) in net assets resulting from operations	$	14,234		$	3,992		$	(22,616	)	$	11,433

Per common share data:
Net investment income per share - basic and diluted	$	0.61		$	0.35		$	0.95		$	0.69
Net increase (decrease) in net assets resulting from operations per share - basic and diluted	$	0.69		$	0.20		$	(1.10	)	$	0.56
Weighted average common shares outstanding - basic and diluted		20,637			20,445			20,541			20,445

See Notes to Consolidated Financial Statements.

MONROE CAPITAL CORPORATION

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

(unaudited)

(in thousands)

	Common Stock
	Number of shares		Par value		Capital in excess of par value		Accumulated undistributed (overdistributed) earnings			Total net assets
Balances at March 31, 2019		20,445	$	20	$	288,911	$	(29,879	)	$	259,052
Net investment income		—		—		—		7,073			7,073
Net realized gain (loss)		—		—		—		36			36
Net change in unrealized gain (loss)		—		—		—		(3,117	)		(3,117	)
Issuance of common stock, net of offering and underwriting costs		—		—		—		—			—
Distributions to stockholders		—		—		—		(7,156	)		(7,156	)
Balances at June 30, 2019		20,445	$	20	$	288,911	$	(33,043	)	$	255,888

Balances at March 31, 2020		20,445	$	20	$	288,850	$	(83,518	)	$	205,352
Net investment income		—		—		—		12,636			12,636
Net realized gain (loss)		—		—		—		2,482			2,482
Net change in unrealized gain (loss)		—		—		—		(884	)		(884	)
Issuance of common stock, net of offering and underwriting costs		825		1		6,266		—			6,267
Distributions to stockholders		—		—		—		(5,257	)		(5,257	)
Balances at June 30, 2020		21,270	$	21	$	295,116	$	(74,541	)	$	220,596

	Common Stock
	Number of shares		Par value		Capital in excess of par value		Accumulated undistributed (overdistributed) earnings			Total net assets
Balances at December 31, 2018		20,445	$	20	$	288,911	$	(30,164	)	$	258,767
Net investment income		—		—		—		14,147			14,147
Net realized gain (loss)		—		—		—		27			27
Net change in unrealized gain (loss)		—		—		—		(2,741	)		(2,741	)
Issuance of common stock, net of offering and underwriting costs		—		—		—		—			—
Distributions to stockholders		—		—		—		(14,312	)		(14,312	)
Balances at June 30, 2019		20,445	$	20	$	288,911	$	(33,043	)	$	255,888

Balances at December 31, 2019		20,445	$	20	$	288,850	$	(39,513	)	$	249,357
Net investment income		—		—		—		19,418			19,418
Net realized gain (loss)		—		—		—		2,557			2,557
Net change in unrealized gain (loss)		—		—		—		(44,591	)		(44,591	)
Issuance of common stock, net of offering and underwriting costs		825		1		6,266		—			6,267
Distributions to stockholders		—		—		—		(12,412	)		(12,412	)
Balances at June 30, 2020		21,270	$	21	$	295,116	$	(74,541	)	$	220,596

See Notes to Consolidated Financial Statements.

MONROE CAPITAL CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(in thousands)

	Six months ended June 30,
	2020			2019
Cash flows from operating activities:
Net increase (decrease) in net assets resulting from operations	$	(22,616	)	$	11,433
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:
Net realized (gain) loss on investments		(2,555	)		(35	)
Net realized (gain) loss on foreign currency forward contracts		(18	)		6
Net realized (gain) loss on foreign currency and other transactions		16			2
Net change in unrealized (gain) loss on investments		46,041			2,834
Net change in unrealized (gain) loss on foreign currency forward contracts		(74	)		(7	)
Net change in unrealized (gain) loss on foreign currency and other transactions		(1,376	)		(86	)
Payment-in-kind interest income		(3,540	)		(2,315	)
Net accretion of discounts and amortization of premiums		(680	)		(819	)
Purchases of investments		(81,410	)		(130,651	)
Proceeds from principal payments, sales of investments and settlement of forward contracts		95,097			53,797
Amortization of deferred financing costs		1,004			901
Changes in operating assets and liabilities:
Interest receivable		3,830			(2,556	)
Other assets		(596	)		155
Interest payable		(80	)		131
Management fees payable		(317	)		405
Incentive fees payable		(1,374	)		883
Accounts payable and accrued expenses		(157	)		115
Net cash provided by (used in) operating activities		31,195			(65,807	)

Cash flows from financing activities:
Borrowings on revolving credit facility		55,200			264,450
Repayments of revolving credit facility		(88,100	)		(211,750	)
Proceeds from 2023 Notes		—			40,000
Payments of deferred financing costs		(939	)		(3,436	)
Proceeds from shares sold, net of offering and underwriting costs		6,267			—
Stockholder distributions paid, net of stock issued under the dividend reinvestment plan of $0 and $0, respectively		(12,412	)		(14,312	)
Net cash provided by (used in) financing activities		(39,984	)		74,952

Net increase (decrease) in Cash and Restricted Cash		(8,789	)		9,145
Effect of foreign currency exchange rates		(18	)		(2	)
Cash and Restricted Cash, beginning of period		29,643			17,726
Cash and Restricted Cash, end of period	$	20,836		$	26,869

Supplemental disclosure of cash flow information:
Cash interest paid during the period	$	8,428		$	8,391
Cash paid (refund received) for excise taxes during the period	$	85		$	(13	)

The following tables provide a reconciliation of cash and restricted cash reported on the Consolidated Statements of Assets and Liabilities that sum to the total of the same such amounts on the Consolidated Statements of Cash Flows:

	June 30, 2020		December 31, 2019
Cash	$	7,443	$	2,234
Restricted cash		13,393		27,409
Total cash and restricted cash shown on the Consolidated Statements of Cash Flows	$	20,836	$	29,643

	June 30, 2019		December 31, 2018
Cash	$	2,985	$	3,744
Restricted cash		23,884		13,982
Total cash and restricted cash shown on the Consolidated Statements of Cash Flows	$	26,869	$	17,726

See Notes to Consolidated Financial Statements.

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS

(unaudited)

June 30, 2020

(in thousands, except for shares and units)

Portfolio Company ^(a)	Spread Above Index ^(b)	Interest Rate		Acquisition Date ^(c)	Maturity	Principal		Amortized Cost		Fair Value ^(d)		% of Net Assets ^(e)
Non-Controlled/Non-Affiliate Company Investments
Senior Secured Loans
Automotive
Hastings Manufacturing Company	L+10.25%	9.25% Cash/ 2.00% PIK		4/24/2018	4/24/2023		2,876	$	2,839	$	2,740		1.2	%
Magneto & Diesel Acquisition, Inc.	L+5.50%	6.50	%	12/18/2018	12/18/2023		4,925		4,861		4,919		2.3	%
Magneto & Diesel Acquisition, Inc. (Revolver)	L+5.50%	6.50	%	12/18/2018	12/18/2023		500		500		500		0.2	%
							8,301		8,200		8,159		3.7	%
Banking, Finance, Insurance & Real Estate
777 SPV I, LLC (Delayed Draw) ^{(f) (g)}	L+8.50%	10.25	%	4/15/2019	4/14/2023		5,025		4,979		5,032		2.3	%
Echelon Funding I, LLC ^(g)	L+10.25%	10.75	%	12/31/2019	1/11/2021		1,834		1,834		1,839		0.8	%
Echelon Funding I, LLC (Delayed Draw) ^{(f) (g) (h)}	L+10.25%	10.75	%	2/24/2017	1/11/2021		14,175		7,646		7,668		3.5	%
HFZ Capital Group, LLC ^(g)	L+12.50%	14.00	%	10/20/2017	11/25/2020		18,000		18,000		17,771		8.1	%
HFZ Member RB Portfolio, LLC ^(g)	L+12.00%	13.43	%	10/30/2018	10/29/2021		9,780		9,769		9,685		4.3	%
Kudu Investment Holdings, LLC ^(g)	L+6.25%	7.25	%	12/23/2019	12/23/2025		5,500		5,410		5,435		2.5	%
Kudu Investment Holdings, LLC (Delayed Draw) ^{(f) (g) (h)}	L+6.25%	7.25	%	12/23/2019	12/23/2025		3,667		1,640		1,621		0.7	%
Kudu Investment Holdings, LLC (Revolver) ^{(g) (h)}	L+6.25%	7.25	%	12/23/2019	12/23/2025		482		—		—		0.0	%
Liftforward SPV II, LLC ^(g)	L+10.75%	11.25	%	11/10/2016	11/10/2020		2,337		2,335		2,331		1.1	%
TCP-NG (U.S.), LLC ^(g)	L+7.25%	8.75	%	8/23/2019	8/22/2024		2,775		2,736		2,685		1.2	%
TCP-NG (U.S.), LLC (Revolver) ^{(g) (h)}	L+7.25%	8.75	%	8/23/2019	8/22/2024		180		—		—		0.0	%
							63,755		54,349		54,067		24.5	%
Beverage, Food & Tobacco
California Pizza Kitchen, Inc.	L+6.00%	7.00	%⁽ⁱ⁾	8/19/2016	8/23/2022		6,755		6,727		1,979		0.9	%
LX/JT Intermediate Holdings, Inc. ^(j)	L+6.00%	7.50	%	3/11/2020	3/11/2025		9,911		9,723		9,668		4.3	%
LX/JT Intermediate Holdings, Inc. (Revolver) ^(h)	L+6.00%	7.50	%	3/11/2020	3/11/2025		833		—		—		0.0	%
Toojay's Management, LLC	L+5.50%	6.50	%	10/26/2018	10/26/2022		3,465		3,421		3,226		1.5	%
Toojay's Management, LLC	L+5.50%	6.50	%	10/26/2018	10/26/2022		475		475		442		0.2	%
Toojay's Management, LLC (Revolver)	L+5.50%	6.50	%	10/26/2018	10/26/2022		159		159		148		0.1	%
							21,598		20,505		15,463		7.0	%
Capital Equipment
MCP Shaw Acquisitionco, LLC ^(j)	L+6.50%	7.50	%	2/28/2020	11/28/2025		9,975		9,788		9,760		4.4	%
MCP Shaw Acquisitionco, LLC (Revolver)	L+6.50%	7.50	%	2/28/2020	11/28/2025		1,784		1,784		1,745		0.8	%
							11,759		11,572		11,505		5.2	%
Chemicals, Plastics & Rubber
Midwest Composite Technologies, LLC ^(j)	L+6.75%	7.75	%	12/2/2019	8/31/2023		14,925		14,667		14,515		6.6	%
Midwest Composite Technologies, LLC	L+6.75%	7.75	%	8/31/2018	8/31/2023		887		874		862		0.4	%
Midwest Composite Technologies, LLC (Delayed Draw) ^{(f) (h)}	L+6.75%	7.75	%	8/31/2018	8/31/2023		509		59		58		0.0	%
Midwest Composite Technologies, LLC (Revolver)	L+6.75%	7.75	%	8/31/2018	8/31/2023		90		90		88		0.0	%
Valudor Products, LLC	L+7.50%	8.50	%	6/18/2018	6/19/2023		1,553		1,532		1,466		0.7	%
Valudor Products, LLC ^(k)	L+7.50%	8.50	%	6/18/2018	6/19/2023		211		207		198		0.1	%
Valudor Products, LLC (Revolver) ^(h)	L+9.50%	10.50	%	6/18/2018	6/19/2023		818		510		483		0.2	%
							18,993		17,939		17,670		8.0	%
Construction & Building
Cali Bamboo, LLC	L+9.50%	8.00% Cash/ 2.50% PIK		7/10/2015	3/31/2022		7,814		7,812		7,562		3.4	%
Cali Bamboo, LLC (Revolver) ^(h)	L+9.50%	8.00% Cash/ 2.50% PIK		7/10/2015	3/31/2022		2,165		930		900		0.4	%
Dude Solutions Holdings, Inc.	L+7.50%	8.57	%	6/14/2019	6/13/2025		10,000		9,802		9,895		4.5	%
Dude Solutions Holdings, Inc. (Revolver) ^(h)	L+7.50%	8.57	%	6/14/2019	6/13/2025		1,304		348		344		0.2	%
							21,283		18,892		18,701		8.5	%
Consumer Goods: Durable
Franchise Group Intermediate Holdco, LLC	L+8.00%	9.50	%	2/24/2020	2/14/2025		3,933		3,859		3,790		1.7	%
Nova Wildcat Amerock, LLC	L+5.75%	6.75	%	10/12/2018	10/12/2023		9,055		8,926		8,943		4.1	%
Nova Wildcat Amerock, LLC (Revolver) ^(h)	L+5.75%	6.75	%	10/12/2018	10/12/2023		931		373		368		0.2	%
Parterre Flooring & Surface Systems, LLC ^(j)	L+9.00%	10.00	%⁽ⁱ⁾	8/22/2017	8/22/2022		7,920		7,837		5,374		2.4	%
Parterre Flooring & Surface Systems, LLC (Revolver)	L+9.00%	10.00	%⁽ⁱ⁾	8/22/2017	8/22/2022		696		696		472		0.2	%
							22,535		21,691		18,947		8.6	%

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)

(unaudited)

June 30, 2020

(in thousands, except for shares and units)

Portfolio Company ^(a)	Spread Above Index ^(b)	Interest Rate		Acquisition Date ^(c)	Maturity		Principal		Amortized Cost		Fair Value ^(d)		% of Net Assets ^(e)
Consumer Goods: Non-Durable
Quirch Foods Holdings, LLC	L+5.75%	5.93	%	2/14/2019	12/19/2025			1,970	$	1,953	$	1,940		0.9	%
								1,970		1,953		1,940		0.9	%
Energy: Oil & Gas
BJ Services, LLC	L+7.00%	8.50	%	1/28/2019	1/3/2023			4,275		4,246		4,270		1.9	%
								4,275		4,246		4,270		1.9	%
Environmental Industries
StormTrap, LLC	L+5.50%	6.50	%	12/10/2018	12/8/2023			7,900		7,798		7,529		3.4	%
StormTrap, LLC (Revolver) ^(h)	L+5.50%	6.50	%	12/10/2018	12/8/2023			432		—		—		0.0	%
Synergy Environmental Corporation ^(j)	L+6.50%	7.00	%	4/29/2016	9/30/2021			2,893		2,876		2,858		1.3	%
Synergy Environmental Corporation ^(j)	L+6.50%	7.00	%	4/29/2016	9/30/2021			484		482		478		0.2	%
Synergy Environmental Corporation	L+6.50%	7.00	%	4/29/2016	9/30/2021			827		827		817		0.4	%
Synergy Environmental Corporation (Revolver) ^(h)	L+6.50%	7.00	%	4/29/2016	9/30/2021			671		270		266		0.1	%
								13,207		12,253		11,948		5.4	%
Healthcare & Pharmaceuticals
American Optics Holdco, Inc. ^{(g) (l)}	L+7.00%	8.00	%	9/13/2017	9/13/2022			2,186		2,164		2,157		1.0	%
American Optics Holdco, Inc. ^{(g) (l)}	L+7.00%	8.00	%	9/13/2017	9/13/2022			1,637		1,618		1,615		0.7	%
American Optics Holdco, Inc. (Revolver) ^{(g) (h) (l)}	L+7.00%	8.00	%	9/13/2017	9/13/2022			220		—		—		0.0	%
American Optics Holdco, Inc. (Revolver) ^{(g) (h) (l)}	L+7.00%	8.00	%	9/13/2017	9/13/2022			440		—		—		0.0	%
Apotheco, LLC	L+6.75%	6.50% Cash/ 1.25% PIK		4/8/2019	4/8/2024			3,479		3,424		3,250		1.5	%
Apotheco, LLC (Revolver)	L+6.75%	6.50% Cash/ 1.25% PIK		4/8/2019	4/8/2024			911		911		850		0.4	%
Familia Dental Group Holdings, LLC ^(j)	L+10.75%	10.50% Cash/ 0.75% PIK		4/8/2016	4/8/2021			5,039		5,023		4,654		2.1	%
Familia Dental Group Holdings, LLC	L+10.75%	10.50% Cash/ 0.75% PIK		4/8/2016	4/8/2021			485		485		448		0.2	%
Familia Dental Group Holdings, LLC (Revolver)	L+10.75%	10.50% Cash/ 0.75% PIK		4/8/2016	4/8/2021			575		575		531		0.2	%
Rockdale Blackhawk, LLC	n/a	n/a	^(m)	3/31/2015	n/a	⁽ⁿ⁾		—		—		1,772		0.8	%
								14,972		14,200		15,277		6.9	%
High Tech Industries
Mindbody, Inc.	L+8.50%	8.00% Cash/ 1.50% PIK		2/15/2019	2/14/2025			6,341		6,241		6,071		2.8	%
Mindbody, Inc. (Revolver)	L+8.00%	9.07	%	2/15/2019	2/14/2025			667		667		636		0.3	%
Newforma, Inc. ^(j)	L+5.50%	6.50	%	6/30/2017	6/30/2022			12,087		12,005		12,041		5.5	%
Newforma, Inc. (Revolver) ^(h)	L+5.50%	6.50	%	6/30/2017	6/30/2022			1,250		—		—		0.0	%
Planful, Inc.	L+6.00%	7.00	%	12/28/2018	12/28/2023			9,500		9,358		9,310		4.2	%
Planful, Inc. (Revolver) ^(h)	L+6.00%	7.00	%	12/28/2018	12/28/2023			442		—		—		0.0	%
Prototek Sheetmetal Fabrication, LLC	L+7.50%	8.50	%	6/27/2019	12/12/2022			1,588		1,564		1,559		0.7	%
Prototek Sheetmetal Fabrication, LLC	L+7.50%	8.50	%	12/11/2017	12/12/2022			3,343		3,306		3,281		1.4	%
Prototek Sheetmetal Fabrication, LLC	L+7.50%	8.50	%	12/11/2017	12/12/2022			2,275		2,275		2,233		1.0	%
Prototek Sheetmetal Fabrication, LLC (Revolver) ^(h)	L+7.50%	8.50	%	12/11/2017	12/12/2022			233		117		115		0.1	%
Recorded Future, Inc.	L+6.25%	7.25	%	7/3/2019	7/3/2025			7,333		7,204		7,480		3.4	%
Recorded Future, Inc. (Delayed Draw) ^{(f) (h)}	L+6.25%	7.25	%	7/3/2019	7/3/2025			587		—		—		0.0	%
Recorded Future, Inc. (Revolver) ^(h)	L+6.25%	7.25	%	7/3/2019	7/3/2025			880		587		587		0.3	%
RPL Bidco Limited ^{(g) (l) (o)}	L+7.50%	8.00	%	11/9/2017	11/9/2023			13,198		13,958		12,970		5.9	%
RPL Bidco Limited ^{(g) (l) (o)}	L+7.50%	8.00	%	5/22/2018	11/9/2023			1,612		1,639		1,583		0.7	%
RPL Bidco Limited (Revolver) ^{(g) (l) (o)}	L+7.50%	8.56	%	11/9/2017	11/9/2023			497		497		487		0.2	%
								61,833		59,418		58,353		26.5	%
Media: Advertising, Printing & Publishing
AdTheorent Holding Company, LLC	L+8.50%	9.00	%	12/22/2016	12/22/2021			3,208		3,186		3,162		1.4	%
Destination Media, Inc. ^(j)	L+5.50%	6.50	%	4/7/2017	4/7/2022			4,525		4,496		4,478		2.0	%
Destination Media, Inc. (Revolver)	L+5.50%	6.50	%	4/7/2017	4/7/2022			542		542		536		0.3	%
MC Sign Lessor Corp.	L+7.00%	8.00	%	12/22/2017	8/30/2024			15,642		15,570		15,323		7.0	%
MC Sign Lessor Corp. (Revolver) ^(h)	L+7.00%	8.00	%	12/22/2017	8/30/2024			3,490		1,396		1,396		0.6	%
XanEdu Publishing, Inc.	L+6.50%	7.50	%	1/28/2020	1/28/2025			1,895		1,860		1,879		0.9	%
XanEdu Publishing, Inc. (Revolver) ^(h)	L+6.50%	7.50	%	1/28/2020	1/28/2025			495		494		489		0.2	%
								29,797		27,544		27,263		12.4	%

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)

(unaudited)

June 30, 2020

(in thousands, except for shares and units)

Portfolio Company ^(a)	Spread Above Index ^(b)	Interest Rate		Acquisition Date ^(c)	Maturity	Principal		Amortized Cost		Fair Value ^(d)		% of Net Assets ^(e)
Media: Broadcasting & Subscription
Vice Group Holding, Inc.	L+12.00%	5.50% Cash/ 8.00% PIK		5/2/2019	11/2/2022		1,301	$	1,292	$	1,292		0.6	%
Vice Group Holding, Inc.	L+12.00%	5.50% Cash/ 8.00% PIK		11/4/2019	11/2/2022		250		246		248		0.1	%
Vice Group Holding, Inc.	L+12.00%	5.50% Cash/ 8.00% PIK		5/2/2019	11/2/2022		408		408		405		0.2	%
Vice Group Holding, Inc. (Delayed Draw) ^{(f) (h)}	L+12.00%	13.50	%	5/2/2019	11/2/2022		160		—		—		0.0	%
							2,119		1,946		1,945		0.9	%
Media: Diversified & Production
Attom Intermediate Holdco, LLC	L+5.75%	6.75	%	1/4/2019	1/4/2024		1,970		1,941		1,923		0.9	%
Attom Intermediate Holdco, LLC	L+7.50%	8.75	%	6/25/2020	1/4/2024		480		470		494		0.2	%
Attom Intermediate Holdco, LLC (Revolver) ^(h)	L+5.75%	6.75	%	1/4/2019	1/4/2024		320		240		234		0.1	%
Crownpeak Technology, Inc.	L+6.25%	7.25	%	2/28/2019	2/28/2024		4,000		3,939		3,937		1.8	%
Crownpeak Technology, Inc.	L+6.25%	7.25	%	2/28/2019	2/28/2024		60		60		59		0.0	%
Crownpeak Technology, Inc. (Revolver) ^(h)	L+6.25%	7.25	%	2/28/2019	2/28/2024		167		—		—		0.0	%
							6,997		6,650		6,647		3.0	%
Retail
Bluestem Brands, Inc.	P+6.50%	9.75	%⁽ⁱ⁾	6/26/2015	11/6/2020		2,275		2,270		1,149		0.5	%
Forman Mills, Inc. ^(j)	L+9.50%	8.50% Cash/ 2.00% PIK		1/14/2020	10/4/2021		1,308		1,308		1,282		0.6	%
Forman Mills, Inc. ^(j)	L+9.50%	8.50% Cash/ 2.00% PIK		10/4/2016	10/4/2021		744		739		729		0.3	%
Forman Mills, Inc. ^(j)	L+9.50%	8.50% Cash/ 2.00% PIK		10/4/2016	10/4/2021		7,459		7,414		5,848		2.7	%
LuLu's Fashion Lounge, LLC	L+9.50%	10.57	%	8/21/2017	8/29/2022		4,156		4,094		3,554		1.6	%
The Worth Collection, Ltd. ^(j)	L+8.50%	9.00	%⁽ⁱ⁾	9/29/2016	9/29/2021		10,587		10,248		178		0.1	%
							26,529		26,073		12,740		5.8	%

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)

(unaudited)

June 30, 2020

(in thousands, except for shares and units)

Portfolio Company ^(a)	Spread Above Index ^(b)	Interest Rate		Acquisition Date ^(c)	Maturity	Principal		Amortized Cost		Fair Value ^(d)		% of Net Assets ^(e)
Services: Business
Arcserve (USA), LLC	L+5.50%	6.50	%	5/1/2019	5/1/2024		4,694	$	4,618	$	4,544		2.1	%
Atlas Sign Industries of FLA, LLC ^(j)	L+11.50%	11.50% Cash/ 1.00% PIK		5/14/2018	5/15/2023		3,545		3,350		3,236		1.5	%
Burroughs, Inc. ^(j)	L+7.50%	8.50	%	12/22/2017	12/22/2022		5,726		5,675		5,447		2.5	%
Burroughs, Inc. (Revolver)	L+7.50%	8.50	%	12/22/2017	12/22/2022		1,220		1,220		1,160		0.5	%
Certify, Inc.	L+5.75%	6.75	%	2/28/2019	2/28/2024		9,000		8,894		8,958		4.1	%
Certify, Inc. (Delayed Draw) ^{(f) (h)}	L+5.75%	6.75	%	2/28/2019	2/28/2024		1,227		1,023		1,018		0.5	%
Certify, Inc. (Revolver) ^(h)	L+5.75%	6.75	%	2/28/2019	2/28/2024		409		61		61		0.0	%
HS4 Acquisitionco, Inc.	L+6.75%	7.75	%	7/9/2019	7/9/2025		10,050		9,874		9,814		4.4	%
HS4 Acquisitionco, Inc. (Revolver) ^(h)	L+6.75%	7.75	%	7/9/2019	7/9/2025		817		265		259		0.1	%
IT Global Holding, LLC	L+9.00%	10.00	%	11/15/2018	11/10/2023		10,106		9,956		9,493		4.3	%
IT Global Holding, LLC	L+9.00%	10.00	%	7/19/2019	11/10/2023		3,767		3,702		3,539		1.6	%
IT Global Holding, LLC (Revolver)	L+9.00%	10.00	%	11/15/2018	11/10/2023		875		875		822		0.4	%
Kaseya Traverse, Inc.	L+7.00%	5.09% Cash/ 3.00% PIK		5/3/2019	5/2/2025		6,520		6,411		6,361		2.9	%
Kaseya Traverse, Inc. (Delayed Draw) ^{(f) (h)}	L+7.00%	5.09% Cash/ 3.00% PIK		5/3/2019	5/2/2025		724		95		93		0.0	%
Kaseya Traverse, Inc. (Delayed Draw) ^{(f) (h)}	L+7.00%	5.09% Cash/ 3.00% PIK		3/4/2020	3/4/2022		289		—		—		0.0	%
Kaseya Traverse, Inc. (Revolver) ^(h)	L+6.50%	7.50	%	5/3/2019	5/2/2025		506		501		489		0.2	%
Madison Logic, Inc. ^(j)	L+8.00%	8.50	%	11/30/2016	11/30/2021		9,500		9,434		9,329		4.2	%
Madison Logic, Inc. (Revolver) ^(h)	L+8.00%	8.50	%	11/30/2016	11/30/2021		988		—		—		0.0	%
RedZone Robotics, Inc.	L+7.75%	7.75% Cash/ 1.00% PIK		6/1/2018	6/5/2023		620		612		552		0.2	%
RedZone Robotics, Inc. (Revolver) ^(h)	L+6.75%	7.75	%	6/1/2018	6/5/2023		158		—		—		0.0	%
Security Services Acquisition Sub Corp. ^(j)	L+6.00%	7.00	%	2/15/2019	2/15/2024		3,456		3,405		3,437		1.6	%
Security Services Acquisition Sub Corp. (Delayed Draw) ^{(f) (h) (j)}	L+6.00%	7.00	%	2/15/2019	2/15/2024		2,482		1,753		1,743		0.8	%
Security Services Acquisition Sub Corp. (Delayed Draw) ^{(f) (h) (j)}	L+6.00%	7.00	%	2/15/2019	2/15/2024		2,182		1,063		1,057		0.5	%
Security Services Acquisition Sub Corp. (Revolver)	L+6.00%	7.00	%	2/15/2019	2/15/2024		1,563		1,563		1,554		0.7	%
TRP Construction Group, LLC ^(j)	L+7.00%	8.00	%	10/5/2017	10/5/2022		7,609		7,533		7,521		3.4	%
TRP Construction Group, LLC	L+7.00%	8.00	%	9/5/2018	10/5/2022		6,444		6,444		6,370		2.9	%
TRP Construction Group, LLC (Revolver) ^(h)	L+7.00%	8.00	%	10/5/2017	10/5/2022		2,133		—		—		0.0	%
VPS Holdings, LLC	L+7.00%	8.00	%	10/5/2018	10/4/2024		4,475		4,404		4,238		1.9	%
VPS Holdings, LLC	L+7.00%	8.00	%	10/5/2018	10/4/2024		3,650		3,650		3,457		1.6	%
VPS Holdings, LLC (Revolver) ^(h)	L+7.00%	8.00	%	10/5/2018	10/4/2024		1,000		100		95		0.0	%
							105,735		96,481		94,647		42.9	%
Services: Consumer
Mammoth Holdings, LLC	L+6.00%	7.43	%	10/16/2018	10/16/2023		1,970		1,942		1,946		0.9	%
Mammoth Holdings, LLC	L+6.00%	7.43	%	10/16/2018	10/16/2023		4,135		4,135		4,086		1.8	%
Mammoth Holdings, LLC (Revolver) ^(h)	L+6.00%	7.43	%	10/16/2018	10/16/2023		500		—		—		0.0	%
							6,605		6,077		6,032		2.7	%
Wholesale
Nearly Natural, Inc. ^(j)	L+7.00%	8.00	%	12/15/2017	12/15/2022		6,772		6,698		6,560		3.0	%
Nearly Natural, Inc. (Delayed Draw) ^{(f) (h) (j)}	L+7.00%	8.00	%	8/28/2019	12/15/2022		1,906		1,381		1,337		0.6	%
Nearly Natural, Inc. (Revolver)	L+7.00%	8.00	%	12/15/2017	12/15/2022		1,522		1,522		1,474		0.7	%
							10,200		9,601		9,371		4.3	%
Total Non-Controlled/Non-Affiliate Senior Secured Loans							452,463		419,590		394,945		179.1	%

Unitranche Secured Loans ^(p)
Chemicals, Plastics & Rubber
MFG Chemical, LLC ^(j)	L+6.00%	6.50	%	6/23/2017	6/23/2022		9,232		9,168		8,516		3.9	%
MFG Chemical, LLC	L+6.00%	6.50	%	3/15/2018	6/23/2022		982		982		906		0.4	%
							10,214		10,150		9,422		4.3	%
Consumer Goods: Durable
RugsUSA, LLC	L+6.50%	7.50	%	5/2/2018	4/28/2023		4,000		3,975		3,938		1.8	%
							4,000		3,975		3,938		1.8	%

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)

(unaudited)

June 30, 2020

(in thousands, except for shares and units)

Portfolio Company ^(a)	Spread Above Index ^(b)	Interest Rate		Acquisition Date ^(c)	Maturity		Principal		Amortized Cost		Fair Value ^(d)		% of Net Assets ^(e)
Healthcare & Pharmaceuticals
Priority Ambulance, LLC ^(q)	L+6.50%	7.50	%	7/18/2018	4/12/2022			10,015	$	10,015	$	9,865		4.5	%
Priority Ambulance, LLC ^(r)	L+6.50%	7.50	%	4/12/2017	4/12/2022			1,253		1,238		1,235		0.5	%
Priority Ambulance, LLC (Delayed Draw) ^{(f) (h)}	L+6.50%	7.50	%	12/13/2018	4/12/2022			2,470		681		671		0.3	%
								13,738		11,934		11,771		5.3	%
High Tech Industries
Energy Services Group, LLC	L+8.42%	9.42	%	5/4/2017	5/4/2022			4,059		4,036		3,983		1.8	%
Energy Services Group, LLC ^{(g) (o)}	L+8.42%	9.42	%	5/4/2017	5/4/2022			4,534		4,817		4,507		2.0	%
Energy Services Group, LLC	L+8.42%	9.42	%	5/4/2017	5/4/2022			1,155		1,141		1,134		0.5	%
WillowTree, LLC	L+5.50%	6.50	%	10/9/2018	10/9/2023			7,880		7,782		7,679		3.5	%
								17,628		17,776		17,303		7.8	%
Total Non-Controlled/Non-Affiliate Unitranche Secured Loans								45,580		43,835		42,434		19.2	%

Junior Secured Loans
Beverage, Food & Tobacco
CSM Bakery Supplies, LLC	L+10.00%	11.00	%	5/23/2013	2/4/2022			5,792		5,792		4,808		2.2	%
								5,792		5,792		4,808		2.2	%
Capital Equipment
ALTA Enterprises, LLC ^(g)	L+8.00%	9.80	%	2/14/2020	8/13/2025			3,950		3,820		3,934		1.8	%
								3,950		3,820		3,934		1.8	%
High Tech Industries
Micro Holdings Corp.	L+7.50%	8.57	%	8/16/2017	8/18/2025			3,000		2,981		2,872		1.3	%
								3,000		2,981		2,872		1.3	%
Services: Consumer
Education Corporation of America	L+11.00%	5.81% Cash/ 5.50% PIK	⁽ⁱ⁾	9/3/2015	n/a	⁽ⁿ⁾		833		831		762		0.3	%
								833		831		762		0.3	%
Total Non-Controlled/Non-Affiliate Junior Secured Loans								13,575		13,424		12,376		5.6	%

Equity Securities ^{(s) (t)}
Banking, Finance, Insurance & Real Estate
PKS Holdings, LLC (5,680 Preferred Units) ^(g)	—	5.00% PIK		11/30/2017	—			—		58		204		0.1	%
PKS Holdings, LLC (5,714 Preferred Units) ^(g)	—	5.00% PIK		11/30/2017	—			—		9		32		0.0	%
PKS Holdings, LLC (132 Preferred Units) ^(g)	—	5.00% PIK		11/30/2017	—			—		1		5		0.0	%
PKS Holdings, LLC (916 Preferred Units) ^(g)	—	5.00% PIK		11/30/2017	—			—		9		32		0.0	%
										77		273		0.1	%
Capital Equipment
MCP Shaw Acquisitionco, LLC (118,906 Class A-2 units)	—	—	^(u)	2/28/2020	—			—		119		131		0.1	%
										119		131		0.1	%
Chemicals, Plastics & Rubber
Valudor Products, LLC (501,014 Class A-1 units)	n/a	10.00% PIK	⁽ⁱ⁾	6/18/2018	—			—		501		—		0.0	%
										501		—		0.0	%
High Tech Industries
Answers Finance, LLC (76,539 shares of common stock)	—	—	^(u)	4/14/2017	—			—		2,344		52		0.0	%
Planful, Inc. (473,082 Class A units)	—	—	^(u)	12/28/2018	—			—		473		565		0.4	%
Recorded Future, Inc. (80,486 Class A units) ^(v)	—	—	^(u)	7/3/2019	—			—		81		99		0.0	%
										2,898		716		0.4	%
Media: Advertising, Printing & Publishing
AdTheorent Holding Company, LLC (128,866 Class A voting units)	—	—	^(u)	12/22/2016	—			—		129		418		0.2	%
MC Sign Lessor Corp. (686 shares of common units)	—	—	^(u)	8/30/2019	—			—		872		855		0.4	%
InMobi Pte, Ltd. (warrant to purchase up to 2.8% of the equity) ^{(g) (l)}	—	—	^(u)	9/18/2015	9/18/2025			—		—		193		0.1	%
XanEdu Publishing, Inc. (49,479 Class A units)	n/a	8.00% PIK		1/28/2020	—			—		49		55		0.0	%
										1,050		1,521		0.7	%

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)

(unaudited)

June 30, 2020

(in thousands, except for shares and units)

Portfolio Company ^(a)	Spread Above Index ^(b)	Interest Rate		Acquisition Date ^(c)	Maturity	Principal		Amortized Cost		Fair Value ^(d)		% of Net Assets ^(e)
Media: Diversified & Production
Attom Intermediate Holdco, LLC (297,197 Class A units)	—	—	^(u)	1/4/2019	—		—	$	297	$	306		0.1	%
									297		306		0.1	%
Retail
Forman Mills, Inc. (warrant to purchase up to 2.6% of the equity)	—	—	^(u)	1/14/2020	1/14/2029		—		—		—		0.0	%
The Tie Bar Operating Company, LLC - Class A Preferred Units (1,275 units)	—	—	^(u)	6/25/2013	—		—		87		15		0.0	%
The Tie Bar Operating Company, LLC - Class B Preferred Units (1,275 units)	—	—	^(u)	6/25/2013	—		—		—		—		0.0	%
									87		15		0.0	%
Services: Business
APCO Worldwide, Inc. (100 Class A voting common stock)	—	—	^(u)	11/1/2017	—		—		395		281		0.1	%
Atlas Sign Industries of FLA, LLC (warrant to purchase up to 0.8% of the equity) ^(j)	—	—	^(u)	5/14/2018	5/14/2026		—		125		22		0.0	%
									520		303		0.1	%
Services: Consumer
Education Corporation of America - Series G Preferred Stock (8,333 shares)	n/a	12.00% PIK	⁽ⁱ⁾	9/3/2015	—		—		7,492		5,117		2.3	%
									7,492		5,117		2.3	%
Wholesale
Nearly Natural, Inc. (152,174 Class A units)	—	—	^(u)	12/15/2017	—		—		152		139		0.1	%
									152		139		0.1	%
Total Non- Controlled/Non-Affiliate Equity Securities									13,193		8,521		3.9	%
Total Non-Controlled/Non-Affiliate Company Investments								$	490,042	$	458,276		207.8	%

Non-Controlled Affiliate Company Investments ^(w)
Senior Secured Loans
Banking, Finance, Insurance & Real Estate
American Community Homes, Inc.	L+10.00%	11.50% PIK		7/22/2014	12/31/2020		9,363	$	9,359	$	7,501		3.4	%
American Community Homes, Inc.	L+14.50%	16.00% PIK		7/22/2014	12/31/2020		6,073		6,070		4,865		2.2	%
American Community Homes, Inc.	L+14.50%	16.00% PIK		3/17/2016	12/31/2020		803		802		643		0.3	%
American Community Homes, Inc.	L+10.00%	11.50% PIK		5/24/2017	12/31/2020		567		567		455		0.2	%
American Community Homes, Inc.	L+14.50%	16.00% PIK		5/24/2017	12/31/2020		327		326		261		0.1	%
American Community Homes, Inc.	L+10.00%	11.50% PIK		8/10/2018	12/31/2020		2,095		2,095		1,678		0.8	%
American Community Homes, Inc.	L+10.00%	11.50% PIK		3/29/2019	12/31/2020		3,879		3,879		3,108		1.4	%
American Community Homes, Inc.	L+10.00%	11.50% PIK		9/30/2019	12/31/2020		18		18		15		0.0	%
American Community Homes, Inc.	L+10.00%	11.50% PIK		12/30/2019	12/31/2020		89		89		71		0.0	%
American Community Homes, Inc. (Revolver)	L+10.00%	9.50% cash/ 2.00% PIK		3/30/2020	12/31/2020		2,513		2,513		2,013		0.9	%
							25,727		25,718		20,610		9.3	%

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)

(unaudited)

June 30, 2020

(in thousands, except for shares and units)

Portfolio Company ^(a)	Spread Above Index ^(b)	Interest Rate		Acquisition Date ^(c)	Maturity	Principal		Amortized Cost		Fair Value ^(d)		% of Net Assets ^(e)
Containers, Packaging & Glass
Summit Container Corporation	L+8.00%	9.00	%	12/5/2013	1/6/2021		3,259	$	3,269	$	3,096		1.4	%
Summit Container Corporation (Revolver) ^(h)	L+8.00%	9.00	%	6/15/2018	1/6/2021		7,000		2,589		2,554		1.2	%
							10,259		5,858		5,650		2.6	%
Healthcare & Pharmaceuticals
Ascent Midco, LLC ^(j)	L+5.75%	6.75	%	2/5/2020	2/5/2025		6,965		6,837		6,865		3.1	%
Ascent Midco, LLC (Delayed Draw) ^{(f) (h) (j)}	L+5.75%	6.75	%	2/5/2020	2/5/2025		2,838		—		—		0.0	%
Ascent Midco, LLC (Revolver) ^(h)	L+5.75%	6.75	%	2/5/2020	2/5/2025		1,129		367		362		0.2	%
SHI Holdings, Inc. ^(j)	L+10.75%	10.93% PIK	⁽ⁱ⁾	7/10/2014	12/31/2020		2,899		2,897		370		0.2	%
SHI Holdings, Inc. (Revolver) ^(h)	L+10.75%	10.93% PIK	⁽ⁱ⁾	7/10/2014	12/31/2020		4,667		4,585		586		0.2	%
							18,498		14,686		8,183		3.7	%
High Tech Industries
Mnine Holdings, Inc.	L+7.00%	8.00	%	11/2/2018	12/30/2022		11,570		11,454		12,149		5.5	%
							11,570		11,454		12,149		5.5	%
Retail
Luxury Optical Holdings Co.	L+8.00%	9.00% PIK	⁽ⁱ⁾	9/12/2014	4/30/2021		4,953		4,949		2,682		1.2	%
Luxury Optical Holdings Co.	L+11.50%	12.50	%⁽ⁱ⁾	9/29/2017	4/30/2021		624		624		613		0.3	%
Luxury Optical Holdings Co. (Revolver)	L+8.00%	9.00% PIK	⁽ⁱ⁾	9/12/2014	4/30/2021		228		228		123		0.1	%
							5,805		5,801		3,418		1.6	%
Services: Business
Curion Holdings, LLC ^(j)	n/a	14.00% PIK	⁽ⁱ⁾	5/2/2017	5/2/2022		4,226		4,189		3,120		1.4	%
Curion Holdings, LLC (Revolver) ^(h)	n/a	14.00% PIK	⁽ⁱ⁾	5/2/2017	5/2/2022		594		451		441		0.2	%
							4,820		4,640		3,561		1.6	%
Services: Consumer
NECB Collections, LLC (Revolver) ^(h)	L+11.00%	12.00% PIK		6/25/2019	6/30/2021		1,318		1,299		1,299		0.6	%
							1,318		1,299		1,299		0.6	%
Total Non-Controlled Affiliate Senior Secured Loans							77,997		69,456		54,870		24.9	%

Unitranche Secured Loans ^(p)
Consumer Goods: Non-Durable
Incipio, LLC ^(x)	L+8.50%	9.50% PIK	⁽ⁱ⁾	12/26/2014	8/22/2022		14,701		14,677		3,749		1.7	%
Incipio, LLC ^(y)	L+8.50%	9.50% PIK		3/9/2018	8/22/2022		4,078		4,078		3,981		1.8	%
Incipio, LLC	L+8.50%	9.50% PIK		7/6/2018	8/22/2022		1,733		1,733		1,702		0.8	%
Incipio, LLC	L+8.50%	9.50% PIK		1/15/2020	8/22/2022		1,458		1,458		1,432		0.6	%
Incipio, LLC	L+8.50%	9.50% PIK		4/17/2019	8/22/2022		730		730		717		0.3	%
							22,700		22,676		11,581		5.2	%
Total Non-Controlled Affiliate Unitranche Secured Loans							22,700		22,676		11,581		5.2	%

Junior Secured Loans
Consumer Goods: Non-Durable
Incipio, LLC ^(z)	n/a	10.70% PIK	⁽ⁱ⁾	6/18/2018	8/22/2022		3,766		—		—		0.0	%
Incipio, LLC ^(aa)	n/a	10.70% PIK	⁽ⁱ⁾	6/18/2018	8/22/2022		7,194		—		—		0.0	%
							10,960		—		—		0.0	%

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)

(unaudited)

June 30, 2020

(in thousands, except for shares and units)

Portfolio Company ^(a)	Spread Above Index ^(b)	Interest Rate		Acquisition Date ^(c)	Maturity	Principal		Amortized Cost		Fair Value ^(d)		% of Net Assets ^(e)
Services: Business
Curion Holdings, LLC ^(j)	n/a	15.00% PIK	⁽ⁱ⁾	8/17/2018	1/2/2023		1,720	$	1	$	—		0.0	%
Curion Holdings, LLC ^(j)	n/a	15.00% PIK	⁽ⁱ⁾	8/17/2018	1/2/2023		44		—		—		0.0	%
							1,764		1		—		0.0	%
Total Non-Controlled Affiliate Company Junior Secured Loans							12,724		1		—		0.0	%

Equity Securities ^{(t) (w)}
Banking, Finance, Insurance & Real Estate
American Community Homes, Inc. (warrant to purchase up to 22.3% of the equity)	—	—	^(u)	10/9/2014	12/18/2024		—		—		—		0.0	%
									—		—		0.0	%
Consumer Goods: Non-Durable
Incipio, LLC (1,774 shares of Series C common units)	—	—	^(u)	7/6/2018	—		—		—		—		0.0	%
									—		—		0.0	%
Containers, Packaging & Glass
Summit Container Corporation (warrant to purchase up to 19.5% of the equity)	—	—	^(u)	1/6/2014	1/6/2024		—		—		240		0.1	%
									—		240		0.1	%
Healthcare & Pharmaceuticals
Ascent Midco, LLC (2,032,258 Class A units)	n/a	8.00% PIK		2/5/2020	—		—		2,032		2,737		1.3	%
SHI Holdings, Inc. (24 shares of common stock)	—	—	^(u)	12/14/2016	—		—		27		—		0.0	%
									2,059		2,737		1.3	%
High Tech Industries
Mnine Holdings, LLC (6,400 Class B units)	—	—	^(u)	6/30/2020	—		—		—		—		0.0	%
									—		—		0.0	%
Retail
Luxury Optical Holdings Co. (86 shares of common stock)	—	—	^(u)	9/29/2017	—		—		—		—		0.0	%
									—		—		0.0	%
Services: Business
Curion Holdings, LLC (58,779 shares of common stock)	—	—	^(u)	8/17/2018	—		—		—		—		0.0	%
									—		—		0.0	%
Services: Consumer
NECB Collections, LLC (20.8% of units)	—	—	^(u)	6/21/2019	—		—		1,458		37		0.0	%
									1,458		37		0.0	%
Total Non-Controlled Affiliate Equity Securities									3,517		3,014		1.4	%
Total Non-Controlled Affiliate Company Investments								$	95,650	$	69,465		31.5	%

Controlled Affiliate Company Investments ^(ab)
Equity Securities
Investment Funds & Vehicles
MRCC Senior Loan Fund I, LLC (50.0% of the equity interests) ^(g)	—	—		10/31/2017	—		—	$	42,150	$	35,555		16.1	%
Total Controlled Affiliate Equity Securities									42,150		35,555		16.1	%
Total Controlled Affiliate Company Investments								$	42,150	$	35,555		16.1	%

TOTAL INVESTMENTS								$	627,842	$	563,296		255.4	%

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)

(unaudited)

June 30, 2020

(in thousands, except for shares and units)

Derivative Instruments

Foreign currency forward contracts

	Notional Amount		Notional Amount				Unrealized Gain
Description	to be Purchased		to be Sold		Counterparty	Settlement Date	(Loss)
Foreign currency forward contract	$	109	£	88	Bannockburn Global Forex, LLC	7/3/2020	$	(1	)
Foreign currency forward contract	$	296	£	230	Bannockburn Global Forex, LLC	8/28/2020		10
Foreign currency forward contract	$	35	£	28	Bannockburn Global Forex, LLC	9/3/2020		1
Foreign currency forward contract	$	108	£	88	Bannockburn Global Forex, LLC	10/2/2020		(1	)
Foreign currency forward contract	$	294	£	229	Bannockburn Global Forex, LLC	11/30/2020		10
Foreign currency forward contract	$	34	£	26	Bannockburn Global Forex, LLC	12/2/2020		1
Foreign currency forward contract	$	107	£	87	Bannockburn Global Forex, LLC	1/4/2021		(1	)
Foreign currency forward contract	$	103	£	84	Bannockburn Global Forex, LLC	4/2/2021		(1	)
Foreign currency forward contract	$	103	£	83	Bannockburn Global Forex, LLC	7/2/2021		(1	)
Foreign currency forward contract	$	102	£	83	Bannockburn Global Forex, LLC	10/4/2021		(1	)
Foreign currency forward contract	$	101	£	82	Bannockburn Global Forex, LLC	1/3/2022		(1	)
Foreign currency forward contract	$	97	£	79	Bannockburn Global Forex, LLC	4/4/2022		—
Foreign currency forward contract	$	36	£	29	Bannockburn Global Forex, LLC	5/6/2022		—
							$	15

(a)	All of our investments are issued by eligible portfolio companies, as defined in the Investment Company Act of 1940 (the “1940 Act”), unless otherwise noted. All of our investments are issued by U.S. portfolio companies unless otherwise noted.
(b)	The majority of the investments bear interest at a rate that may be determined by reference to the London Interbank Offered Rate (“LIBOR” or “L”) or Prime Rate (“Prime” or “P”) which reset daily, monthly, quarterly, or semiannually. For each such investment, the Company has provided the spread over LIBOR or Prime and the current contractual interest rate in effect at June 30, 2020. Certain investments are subject to a LIBOR or Prime interest rate floor, or rate cap.
(c)	Except as otherwise noted, all of the Company’s portfolio company investments, which as of June 30, 2020 represented 255.4% of the Company’s net assets or 95.5% of the Company’s total assets, are subject to legal restrictions on sales.
(d)	Because there is no readily available market value for these investments, the fair value of these investments is determined in good faith using significant unobservable inputs by our board of directors as required by the 1940 Act. (See Note 4 in the accompanying notes to the consolidated financial statements.)
(e)	Percentages are based on net assets of $220,596 as of June 30, 2020.
(f)	This delayed draw loan requires that certain financial covenants be met by the portfolio company prior to any fundings.
(g)	This investment is treated as a non-qualifying investment under Section 55(a) of the 1940 Act. Under the 1940 Act, the Company may not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of the Company’s total assets. As of June 30, 2020, non-qualifying assets totaled 19.9% of the Company’s total assets.
(h)	All or a portion of this commitment was unfunded at June 30, 2020. As such, interest is earned only on the funded portion of this commitment.
(i)	This position was on non-accrual status as of June 30, 2020, meaning that the Company has ceased accruing interest income on the position. See Note 2 in the accompanying notes to the consolidated financial statements for additional information on the Company’s accounting policies.
(j)	All of this loan is held in the Company’s wholly-owned subsidiary, Monroe Capital Corporation SBIC, LP, and is therefore not collateral to the Company’s revolving credit facility.
(k)	This investment represents a note convertible to preferred shares of the borrower.
(l)	This is an international company.
(m)	In May 2020, an arbitrator issued a final award in favor of the estate of Rockdale Blackhawk, LLC (the “Estate”) in the legal proceeding between the Estate and a national insurance carrier. The Company’s share of the net proceeds from the award exceeded the contractual obligations due to the Company as a result of the Company’s right to receive excess proceeds pursuant to the terms of a sharing agreement between the lenders and the Estate. In June 2020, the Company received $33,135 as an initial payment of proceeds from the legal proceedings from the Estate, of which $19,540 was recorded as a reduction in the cost basis of the Company’s investment in Rockdale, $3,878 was recorded as the collection of previously accrued interest, $7,378 was recorded as investment income for previously unaccrued interest and fees and $2,339 was recorded as realized gains. Additionally, as an offset, the Company recorded net change in unrealized (loss) of ($8,243) primarily as a result of the reversal associated with the collection of proceeds from the Estate. Total net income associated with the Company’s investment in Rockdale was $1,474 during the three months ended June 30, 2020. As of June 30, 2020, the Company has this remaining investment in Rockdale associated with residual proceeds currently expected from the Estate. This investment is a non-income producing security.
(n)	This is a demand note with no stated maturity.
(o)	This loan is denominated in Great Britain pounds and is translated into U.S. dollars as of the valuation date.

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)

(unaudited)

June 30, 2020

(in thousands, except for shares and units)

(p)	The Company structures its unitranche secured loans as senior secured loans. The Company obtains security interests in the assets of these portfolio companies that serve as collateral in support of the repayment of these loans. This collateral may take the form of first-priority liens on the assets of a portfolio company. Generally, the Company syndicates a “first out” portion of the loan to an investor and retains a “last out” portion of the loan, in which case the “first out” portion of the loan will generally receive priority with respect to payments of principal, interest and any other amounts due thereunder. Unitranche structures combine characteristics of traditional first lien senior secured as well as second lien and subordinated loans and the Company’s unitranche secured loans will expose the Company to the risks associated with second lien and subordinated loans and may limit the Company’s recourse or ability to recover collateral upon a portfolio company’s bankruptcy. Unitranche secured loans typically provide for moderate loan amortization in the initial years of the facility, with the majority of the amortization deferred until loan maturity. Unitranche secured loans generally allow the borrower to make a large lump sum payment of principal at the end of the loan term, and there is a risk of loss if the borrower is unable to pay the lump sum or refinance the amount owed at maturity. In many cases the Company, together with its affiliates, are the sole or majority lender of these unitranche secured loans, which can afford the Company additional influence with a borrower in terms of monitoring and, if necessary, remediation in the event of underperformance.
(q)	A portion of this loan (principal of $9,258) is held in the Company’s wholly-owned subsidiary, Monroe Capital Corporation SBIC, LP, and is therefore not collateral to the Company’s revolving credit facility.
(r)	A portion of this loan (principal of $525) is held in the Company’s wholly-owned subsidiary, Monroe Capital Corporation SBIC, LP, and is therefore not collateral to the Company’s revolving credit facility.
(s)	Represents less than 5% ownership of the portfolio company’s voting securities.
(t)	Ownership of certain equity investments may occur through a holding company or partnership.
(u)	Represents a non-income producing security.
(v)	As of June 30, 2020, the Company was party to a subscription agreement with a commitment to fund an additional equity investment of $16.
(w)	As defined in the 1940 Act, the Company is deemed to be an “Affiliated Person” of the portfolio company as it owns 5% or more of the portfolio company’s voting securities. See Note 5 in the accompanying notes to the consolidated financial statements for additional information on transactions in which the issuer was an Affiliated Person (but not a portfolio company that the Company is deemed to control).
(x)	A portion of this loan (principal of $5,390) is held in the Company’s wholly-owned subsidiary, Monroe Capital Corporation SBIC, LP, and is therefore not collateral to the Company’s revolving credit facility.
(y)	A portion of this loan (principal of $51) is held in the Company’s wholly-owned subsidiary, Monroe Capital Corporation SBIC, LP, and is therefore not collateral to the Company’s revolving credit facility.
(z)	A portion of this loan (principal of $1,015) is held in the Company’s wholly-owned subsidiary, Monroe Capital Corporation SBIC, LP, and is therefore not collateral to the Company’s revolving credit facility.
(aa)	A portion of this loan (principal of $1,938) is held in the Company’s wholly-owned subsidiary, Monroe Capital Corporation SBIC, LP, and is therefore not collateral to the Company’s revolving credit facility.
(ab)	As defined in the 1940 Act, the Company is deemed to be both an “Affiliated Person” of and to “Control” this portfolio company as it owns more than 25% in company’s voting securities. See Note 5 in the accompanying notes to the consolidated financial statements for additional information on transactions in which the issuer was both an Affiliated Person and a portfolio company that the Company is deemed to Control.

n/a - not applicable

See Notes to Consolidated Financial Statements.

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2019

(in thousands, except for shares and units)

Portfolio Company ^(a)	Spread Above Index ^(b)	Interest Rate		Acquisition Date ^(c)	Maturity	Principal		Amortized Cost		Fair Value ^(d)		% of Net Assets ^(e)
Non-Controlled/Non-Affiliate Company Investments
Senior Secured Loans
Automotive
Hastings Manufacturing Company	L+8.25%	10.05	%	4/24/2018	4/24/2023		2,812	$	2,771	$	2,705		1.0	%
Magneto & Diesel Acquisition, Inc.	L+5.50%	7.30	%	12/18/2018	12/18/2023		4,950		4,877		4,957		2.0	%
Magneto & Diesel Acquisition, Inc. (Revolver) ^(f)	L+5.50%	7.30	%	12/18/2018	12/18/2023		500		125		125		0.1	%
							8,262		7,773		7,787		3.1	%
Banking, Finance, Insurance & Real Estate
777 SPV I LLC (Delayed Draw) ^{(g) (h)}	L+8.50%	10.30	%	4/15/2019	4/14/2023		5,325		5,267		5,341		2.1	%
Echelon Funding I, LLC ^(h)	L+7.50%	9.28	%	12/31/2019	1/11/2021		2,205		2,172		2,204		0.9	%
Echelon Funding I, LLC (Delayed Draw) ^{(f) (g) (h)}	L+7.50%	9.19	%	2/24/2017	1/11/2021		14,175		10,200		10,197		4.1	%
HFZ Capital Group, LLC ^(h)	L+10.00%	12.10	%	10/20/2017	11/25/2020		18,000		17,991		17,995		7.2	%
HFZ Member RB Portfolio, LLC ^(h)	L+12.00%	14.10	%	10/30/2018	10/29/2021		9,780		9,765		9,765		3.9	%
Kudu Investment Holdings, LLC ^(h)	L+6.25%	8.18	%	12/23/2019	12/23/2025		5,500		5,404		5,404		2.2	%
Kudu Investment Holdings, LLC (Delayed Draw) ^{(f) (g) (h)}	L+6.25%	8.18	%	12/23/2019	12/23/2025		3,667		—		—		0.0	%
Kudu Investment Holdings, LLC (Revolver) ^{(f) (h)}	L+6.25%	8.18	%	12/23/2019	12/23/2025		482		—		—		0.0	%
Liftforward SPV II, LLC ^(h)	L+10.75%	12.55	%	11/10/2016	11/10/2020		3,240		3,235		3,240		1.3	%
PKS Holdings, LLC ^(h)	L+14.25%	15.94	%	11/30/2017	11/30/2022		1,645		1,512		1,656		0.7	%
PKS Holdings, LLC (Revolver) ^{(f) (h)}	L+14.25%	15.94	%	11/30/2017	11/30/2022		80		—		—		0.0	%
TCP-NG (U.S.), LLC ^(h)	L+7.25%	9.21	%	8/23/2019	8/22/2024		2,925		2,880		2,919		1.2	%
TCP-NG (U.S.), LLC (Revolver) ^{(f) (h)}	L+7.25%	9.21	%	8/23/2019	8/22/2024		180		—		—		0.0	%
							67,204		58,426		58,721		23.6	%
Beverage, Food & Tobacco
California Pizza Kitchen, Inc.	L+6.00%	7.91	%	8/19/2016	8/23/2022		6,772		6,737		5,910		2.4	%
Toojay's Management LLC	L+5.50%	7.30	%	10/26/2018	10/26/2022		3,465		3,413		3,472		1.4	%
Toojay's Management LLC	L+5.50%	7.30	%	10/26/2018	10/26/2022		476		476		476		0.2	%
Toojay's Management LLC (Revolver) ^(f)	L+5.50%	7.30	%	10/26/2018	10/26/2022		318		239		238		0.1	%
							11,031		10,865		10,096		4.1	%
Chemicals, Plastics & Rubber
Midwest Composite Technologies, LLC ⁽ⁱ⁾	L+6.50%	8.30	%	12/2/2019	8/31/2023		14,962		14,667		14,980		6.0	%
Midwest Composite Technologies, LLC	L+6.50%	8.30	%	8/31/2018	8/31/2023		889		876		890		0.4	%
Midwest Composite Technologies, LLC (Delayed Draw) ^{(f) (g)}	L+6.50%	8.30	%	8/31/2018	8/31/2023		510		60		60		0.0	%
Midwest Composite Technologies, LLC (Revolver) ^(f)	L+6.50%	8.30	%	8/31/2018	8/31/2023		90		—		—		0.0	%
Valudor Products, LLC	L+7.50%	9.30	%	6/18/2018	6/19/2023		1,563		1,539		1,522		0.6	%
Valudor Products, LLC ^(j)	L+7.50%	9.30	%	6/18/2018	6/19/2023		211		206		205		0.1	%
Valudor Products, LLC (Revolver) ^(f)	L+9.50%	11.30	%	6/18/2018	6/19/2023		818		325		318		0.1	%
							19,043		17,673		17,975		7.2	%
Construction & Building
Cali Bamboo, LLC	L+7.00%	8.80	%	7/10/2015	7/10/2020		7,855		7,822		7,602		3.0	%
Cali Bamboo, LLC (Revolver) ^(f)	L+7.00%	8.80	%	7/10/2015	7/10/2020		2,165		930		900		0.4	%
Dude Solutions Holdings, Inc.	L+7.00%	8.80	%	6/14/2019	6/13/2025		10,000		9,787		9,970		4.0	%
Dude Solutions Holdings, Inc. (Revolver) ^(f)	L+7.00%	8.80	%	6/14/2019	6/13/2025		1,304		—		—		0.0	%
							21,324		18,539		18,472		7.4	%
Consumer Goods: Durable
Nova Wildcat Amerock, LLC	L+5.75%	7.55	%	10/12/2018	10/12/2023		9,182		9,033		9,138		3.7	%
Nova Wildcat Amerock, LLC (Revolver) ^(f)	L+5.75%	7.55	%	10/12/2018	10/12/2023		931		—		—		0.0	%
Parterre Flooring & Surface Systems, LLC ⁽ⁱ⁾	L+9.00%	10.80	%	8/22/2017	8/22/2022		8,550		8,448		7,486		3.0	%
Parterre Flooring & Surface Systems, LLC (Revolver)	L+9.00%	10.80	%	8/22/2017	8/22/2022		696		696		609		0.2	%
							19,359		18,177		17,233		6.9	%
Consumer Goods: Non-Durable
Quirch Foods Holdings, LLC	L+6.00%	7.79	%	2/14/2019	12/19/2025		1,980		1,962		1,980		0.8	%
							1,980		1,962		1,980		0.8	%
Energy: Oil & Gas
BJ Services, LLC	L+7.00%	8.91	%	1/28/2019	1/3/2023		4,331		4,296		4,306		1.7	%
							4,331		4,296		4,306		1.7	%
Environmental Industries
StormTrap, LLC	L+5.50%	7.30	%	12/10/2018	12/8/2023		7,920		7,804		7,609		3.0	%
StormTrap, LLC (Revolver) ^(f)	L+5.50%	7.30	%	12/10/2018	12/8/2023		432		—		—		0.0	%
Synergy Environmental Corporation ⁽ⁱ⁾	L+8.00%	9.80	%	4/29/2016	9/30/2021		2,893		2,869		2,884		1.2	%
Synergy Environmental Corporation ⁽ⁱ⁾	L+8.00%	9.80	%	4/29/2016	9/30/2021		484		479		482		0.2	%
Synergy Environmental Corporation	L+8.00%	9.80	%	4/29/2016	9/30/2021		827		827		824		0.3	%
Synergy Environmental Corporation (Revolver) ^(f)	L+8.00%	9.80	%	4/29/2016	9/30/2021		671		203		202		0.1	%
							13,227		12,182		12,001		4.8	%

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)

December 31, 2019

(in thousands, except for shares and units)

Portfolio Company ^(a)	Spread Above Index ^(b)	Interest Rate		Acquisition Date ^(c)	Maturity		Principal		Amortized Cost		Fair Value ^(d)		% of Net Assets ^(e)
Healthcare & Pharmaceuticals
American Optics Holdco, Inc. ^{(h) (k)}	L+7.00%	8.80	%	9/13/2017	9/13/2022			4,210	$	4,159	$	4,185		1.7	%
American Optics Holdco, Inc. ^{(h) (k)}	L+7.00%	8.80	%	9/13/2017	9/13/2022			1,637		1,614		1,627		0.7	%
American Optics Holdco, Inc. (Revolver) ^{(f) (h) (k)}	L+7.00%	8.80	%	9/13/2017	9/13/2022			440		—		—		0.0	%
American Optics Holdco, Inc. (Revolver) ^{(f) (h) (k)}	L+7.00%	8.80	%	9/13/2017	9/13/2022			440		—		—		0.0	%
Apotheco, LLC	L+5.50%	7.30	%	4/8/2019	4/8/2024			3,482		3,420		3,482		1.4	%
Apotheco, LLC (Delayed Draw) ^{(f) (g)}	L+5.50%	7.30	%	4/8/2019	4/8/2024			1,647		—		—		0.0	%
Apotheco, LLC (Revolver) ^(f)	L+5.50%	7.30	%	4/8/2019	4/8/2024			909		341		341		0.1	%
Familia Dental Group Holdings, LLC ⁽ⁱ⁾	L+8.75%	9.80% Cash/ 0.75% PIK		4/8/2016	4/8/2021			5,019		4,993		4,726		1.9	%
Familia Dental Group Holdings, LLC	L+8.75%	9.80% Cash/ 0.75% PIK		4/8/2016	4/8/2021			483		483		455		0.2	%
Familia Dental Group Holdings, LLC (Revolver) ^(f)	L+8.75%	9.80% Cash/ 0.75% PIK		4/8/2016	4/8/2021			573		372		351		0.1	%
Rockdale Blackhawk, LLC (DIP Facility)	n/a	15.10	%	8/30/2018	n/a	^(l)		198		198		198		0.1	%
Rockdale Blackhawk, LLC (DIP Facility)	n/a	15.10	%	8/6/2018	n/a	^(l)		8,877		8,877		10,169		4.1	%
Rockdale Blackhawk, LLC	L+13.00%	14.80	%^(m)	3/31/2015	3/31/2020			10,923		10,465		19,171		7.7	%
								38,838		34,922		44,705		18.0	%
High Tech Industries
Host Analytics, Inc.	L+6.00%	7.69	%	12/28/2018	12/28/2023			9,500		9,340		9,519		3.8	%
Host Analytics, Inc. (Revolver) ^(f)	L+6.00%	7.69	%	12/28/2018	12/28/2023			442		—		—		0.0	%
Mindbody, Inc.	L+7.00%	8.79	%	2/15/2019	2/14/2025			6,333		6,223		6,311		2.5	%
Mindbody, Inc. (Revolver) ^(f)	L+7.00%	8.79	%	2/15/2019	2/14/2025			667		—		—		0.0	%
Newforma, Inc. ⁽ⁱ⁾	L+5.50%	7.46	%	6/30/2017	6/30/2022			13,251		13,139		13,251		5.3	%
Newforma, Inc. (Revolver) ^(f)	L+5.50%	7.46	%	6/30/2017	6/30/2022			1,250		—		—		0.0	%
Prototek Sheetmetal Fabrication, LLC	L+7.50%	9.30	%	12/11/2017	12/12/2022			3,360		3,316		3,335		1.3	%
Prototek Sheetmetal Fabrication, LLC	L+7.50%	9.30	%	6/27/2019	12/12/2022			1,596		1,568		1,584		0.6	%
Prototek Sheetmetal Fabrication, LLC	L+7.50%	9.30	%	12/11/2017	12/12/2022			2,295		2,295		2,277		0.9	%
Prototek Sheetmetal Fabrication, LLC (Revolver) ^(f)	L+7.50%	9.30	%	12/11/2017	12/12/2022			233		—		—		0.0	%
Recorded Future, Inc.	L+6.75%	8.55	%	7/3/2019	7/3/2025			7,333		7,193		7,331		3.0	%
Recorded Future, Inc. (Delayed Draw) ^{(f) (g)}	L+6.75%	8.55	%	7/3/2019	7/3/2025			587		—		—		0.0	%
Recorded Future, Inc. (Revolver) ^(f)	L+6.75%	8.55	%	7/3/2019	7/3/2025			880		—		—		0.0	%
RPL Bidco Limited ^{(h) (k) (n)}	L+7.50%	8.28	%	11/9/2017	11/9/2023			14,225		14,062		14,225		5.7	%
RPL Bidco Limited ^{(h) (k) (n)}	L+7.50%	8.28	%	5/22/2018	11/9/2023			1,723		1,639		1,723		0.7	%
RPL Bidco Limited (Revolver) ^{(f) (h) (k) (n)}	L+7.50%	8.28	%	11/9/2017	11/9/2023			530		—		—		0.0	%
WillowTree, LLC	L+5.50%	7.30	%	10/9/2018	10/9/2023			7,900		7,788		7,916		3.2	%
WillowTree, LLC (Revolver) ^(f)	L+5.50%	7.30	%	10/9/2018	10/9/2023			1,000		945		945		0.4	%
								73,105		67,508		68,417		27.4	%
Media: Advertising, Printing & Publishing
AdTheorent, Inc.	L+8.50%	10.19	%	12/22/2016	12/22/2021			3,398		3,367		3,393		1.4	%
Destination Media, Inc. ⁽ⁱ⁾	L+5.50%	7.30	%	4/7/2017	4/7/2022			4,725		4,687		4,772		1.9	%
Destination Media, Inc. (Revolver) ^(f)	L+5.50%	7.30	%	4/7/2017	4/7/2022			542		—		—		0.0	%
MC Sign Lessor Corp.	L+7.00%	8.69	%	12/22/2017	8/30/2024			15,720		15,639		15,674		6.3	%
MC Sign Lessor Corp. (Revolver) ^(f)	L+7.00%	8.69	%	12/22/2017	8/30/2024			3,490		1,047		1,047		0.4	%
								27,875		24,740		24,886		10.0	%
Media: Broadcasting & Subscription
Vice Group Holding, Inc.	L+12.00%	5.92% Cash/ 8.00% PIK		5/2/2019	11/2/2022			1,250		1,240		1,251		0.5	%
Vice Group Holding, Inc.	L+12.00%	5.92% Cash/ 8.00% PIK		11/4/2019	11/2/2022			240		235		240		0.1	%
Vice Group Holding, Inc. (Delayed Draw) ^{(f) (g)}	L+12.00%	13.92	%	5/2/2019	11/2/2022			400		—		—		0.0	%
Vice Group Holding, Inc. (Delayed Draw) ^{(f) (g)}	L+12.00%	13.92	%	5/2/2019	11/2/2022			160		—		—		0.0	%
								2,050		1,475		1,491		0.6	%
Media: Diversified & Production
Attom Intermediate Holdco, LLC	L+5.75%	7.55	%	1/4/2019	1/4/2024			1,980		1,947		1,971		0.8	%
Attom Intermediate Holdco, LLC (Revolver) ^(f)	L+5.75%	7.55	%	1/4/2019	1/4/2024			320		—		—		0.0	%
Crownpeak Technology, Inc.	L+6.25%	7.94	%	2/28/2019	2/28/2024			4,000		3,931		4,011		1.6	%
Crownpeak Technology, Inc. (Delayed Draw) ^{(f) (g)}	L+6.25%	7.94	%	2/28/2019	2/28/2024			333		60		60		0.0	%
Crownpeak Technology, Inc. (Revolver) ^(f)	L+6.25%	7.94	%	2/28/2019	2/28/2024			167		—		—		0.0	%
								6,800		5,938		6,042		2.4	%

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)

December 31, 2019

(in thousands, except for shares and units)

Portfolio Company ^(a)	Spread Above Index ^(b)	Interest Rate		Acquisition Date ^(c)	Maturity	Principal		Amortized Cost		Fair Value ^(d)		% of Net Assets ^(e)
Retail
Bluestem Brands, Inc.	L+7.50%	9.30	%	6/26/2015	11/6/2020		2,275	$	2,270	$	1,707		0.7	%
Forman Mills, Inc. ⁽ⁱ⁾	L+9.50%	9.30% Cash/ 2.00% PIK		10/4/2016	10/4/2021		8,202		8,133		5,885		2.4	%
LuLu's Fashion Lounge, LLC	L+9.00%	10.80	%	8/21/2017	8/29/2022		4,156		4,082		4,073		1.6	%
The Worth Collection, Ltd. ⁽ⁱ⁾	L+8.50%	6.05% Cash/ 4.25% PIK	^(m)	9/29/2016	9/29/2021		10,587		10,248		1,034		0.4	%
							25,220		24,733		12,699		5.1	%
Services: Business
APCO Worldwide, Inc.	L+8.00%	9.80	%	6/30/2017	6/30/2022		4,625		4,572		4,590		1.8	%
Arcserve (USA), LLC	L+6.00%	7.91	%	5/1/2019	5/1/2024		4,755		4,668		4,785		1.9	%
Atlas Sign Industries of FLA, LLC ⁽ⁱ⁾	L+11.50%	12.30% Cash/ 1.00% PIK		5/14/2018	5/15/2023		3,527		3,332		3,255		1.3	%
Burroughs, Inc. ⁽ⁱ⁾	L+7.50%	9.19	%	12/22/2017	12/22/2022		5,757		5,698		5,635		2.3	%
Burroughs, Inc. (Revolver) ^(f)	L+7.50%	9.19	%	12/22/2017	12/22/2022		1,219		1,129		1,129		0.5	%
Certify, Inc.	L+5.75%	7.55	%	2/28/2019	2/28/2024		9,000		8,882		8,938		3.6	%
Certify, Inc. (Delayed Draw) ^{(f) (g)}	L+5.75%	7.55	%	2/28/2019	2/28/2024		1,227		614		609		0.2	%
Certify, Inc. (Revolver) ^(f)	L+5.75%	7.55	%	2/28/2019	2/28/2024		409		61		61		0.0	%
HaystackID, LLC	L+6.50%	8.30	%	1/14/2019	1/12/2024		4,950		4,867		4,965		2.0	%
HaystackID, LLC (Revolver) ^(f)	L+6.50%	8.30	%	1/14/2019	1/12/2024		403		40		40		0.0	%
HS4 Acquisitionco, Inc.	L+6.75%	8.71	%	7/9/2019	7/9/2025		10,050		9,859		10,010		4.0	%
HS4 Acquisitionco, Inc. (Revolver) ^(f)	L+6.75%	8.54	%	7/9/2019	7/9/2025		817		123		122		0.0	%
IT Global Holding, LLC	L+8.50%	10.30	%	11/15/2018	11/10/2023		10,237		10,066		10,160		4.1	%
IT Global Holding, LLC	L+8.50%	10.30	%	7/19/2019	11/10/2023		3,816		3,743		3,787		1.5	%
IT Global Holding, LLC (Revolver)	L+8.50%	10.30	%	11/15/2018	11/10/2023		875		875		875		0.4	%
Kaseya Traverse, Inc.	L+6.50%	7.72% Cash/ 1.00% PIK		5/3/2019	5/2/2025		6,026		5,913		6,011		2.5	%
Kaseya Traverse, Inc. (Delayed Draw) ^{(f) (g)}	L+6.50%	7.69% Cash/ 1.00% PIK		5/3/2019	5/2/2025		723		94		94		0.0	%
Kaseya Traverse, Inc. (Revolver) ^(f)	L+6.50%	8.30	%	5/3/2019	5/2/2025		506		289		289		0.1	%
Madison Logic, Inc. ⁽ⁱ⁾	L+8.00%	9.80	%	11/30/2016	11/30/2021		9,621		9,531		9,621		3.9	%
Madison Logic, Inc. (Revolver) ^(f)	L+8.00%	9.80	%	11/30/2016	11/30/2021		988		—		—		0.0	%
RedZone Robotics, Inc.	L+8.75%	8.55% Cash/ 2.00% PIK		6/1/2018	6/5/2023		646		636		596		0.2	%
RedZone Robotics, Inc. (Revolver) ^(f)	L+6.75%	8.55	%	6/1/2018	6/5/2023		158		—		—		0.0	%
Security Services Acquisition Sub Corp. ⁽ⁱ⁾	L+6.00%	7.74	%	2/15/2019	2/15/2024		3,474		3,416		3,479		1.4	%
Security Services Acquisition Sub Corp. (Delayed Draw) ^{(f) (g) (i)}	L+6.00%	7.74	%	2/15/2019	2/15/2024		2,491		1,762		1,765		0.7	%
Security Services Acquisition Sub Corp. (Delayed Draw) ^{(f) (g) (i)}	L+6.00%	7.74	%	2/15/2019	2/15/2024		2,186		1,065		1,067		0.4	%
Security Services Acquisition Sub Corp. (Revolver) ^(f)	L+6.00%	7.74	%	2/15/2019	2/15/2024		1,563		104		104		0.0	%
TRP Construction Group, LLC ⁽ⁱ⁾	L+7.00%	8.80	%	10/5/2017	10/5/2022		7,863		7,767		7,815		3.1	%
TRP Construction Group, LLC	L+7.00%	8.80	%	9/5/2018	10/5/2022		6,682		6,682		6,642		2.7	%
TRP Construction Group, LLC (Revolver) ^(f)	L+7.00%	8.80	%	10/5/2017	10/5/2022		2,133		—		—		0.0	%
VPS Holdings, LLC	L+7.00%	8.80	%	10/5/2018	10/4/2024		4,537		4,459		4,448		1.8	%
VPS Holdings, LLC	L+7.00%	8.80	%	10/5/2018	10/4/2024		3,700		3,700		3,627		1.5	%
VPS Holdings, LLC (Revolver) ^(f)	L+7.00%	8.80	%	10/5/2018	10/4/2024		1,000		100		100		0.0	%
							115,964		104,047		104,619		41.9	%
Services: Consumer
Mammoth Holdings, LLC	L+6.00%	8.10	%	10/16/2018	10/16/2023		1,980		1,948		1,984		0.8	%
Mammoth Holdings, LLC	L+6.00%	7.79	%	10/16/2018	10/16/2023		4,156		4,156		4,165		1.7	%
Mammoth Holdings, LLC (Revolver) ^(f)	L+6.00%	8.10	%	10/16/2018	10/16/2023		500		—		—		0.0	%
PeopleConnect Intermediate, LLC	L+6.50%	8.45	%	7/1/2015	7/1/2020		4,030		4,019		4,030		1.6	%
PeopleConnect Intermediate, LLC	L+12.50%	14.45	%	7/1/2015	7/1/2020		4,515		4,500		4,515		1.8	%
PeopleConnect Intermediate, LLC (Revolver) ^(f)	L+9.50%	11.45	%	7/1/2015	7/1/2020		236		—		—		0.0	%
							15,417		14,623		14,694		5.9	%
Wholesale
Nearly Natural, Inc. ⁽ⁱ⁾	L+7.00%	8.96	%	12/15/2017	12/15/2022		6,860		6,771		6,771		2.7	%
Nearly Natural, Inc. (Delayed Draw) ^{(f) (g) (i)}	L+7.00%	8.96	%	8/28/2019	12/15/2022		1,924		349		344		0.1	%
Nearly Natural, Inc. (Revolver) ^(f)	L+7.00%	8.96	%	12/15/2017	12/15/2022		1,522		761		761		0.3	%
							10,306		7,881		7,876		3.1	%
Total Non-Controlled/Non-Affiliate Senior Secured Loans							481,336		435,760		434,000		174.0	%

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)

December 31, 2019

(in thousands, except for shares and units)

Portfolio Company ^(a)	Spread Above Index ^(b)	Interest Rate		Acquisition Date ^(c)	Maturity	Principal		Amortized Cost		Fair Value ^(d)		% of Net Assets ^(e)
Unitranche Secured Loans ^(o)
Chemicals, Plastics & Rubber
MFG Chemical, LLC ⁽ⁱ⁾	L+6.00%	7.80	%	6/23/2017	6/23/2022		10,477	$	10,388	$	10,173		4.1	%
MFG Chemical, LLC	L+6.00%	7.80	%	3/15/2018	6/23/2022		1,121		1,121		1,088		0.4	%
							11,598		11,509		11,261		4.5	%
Construction & Building
Inland Pipe Rehabilitation LLC	L+5.50%	7.46	%	12/27/2018	12/26/2024		12,375		12,156		12,415		5.0	%
							12,375		12,156		12,415		5.0	%
Consumer Goods: Durable
RugsUSA, LLC	L+6.50%	8.45	%	5/2/2018	4/28/2023		4,000		3,971		4,004		1.6	%
							4,000		3,971		4,004		1.6	%
Healthcare & Pharmaceuticals
Priority Ambulance, LLC ^(p)	L+6.50%	8.46	%	7/18/2018	4/12/2022		10,015		10,015		10,015		4.0	%
Priority Ambulance, LLC ^(q)	L+6.50%	8.46	%	4/12/2017	4/12/2022		1,253		1,234		1,256		0.5	%
Priority Ambulance, LLC (Delayed Draw) ^{(f) (g)}	L+6.50%	8.46	%	12/13/2018	4/12/2022		2,480		689		691		0.3	%
							13,748		11,938		11,962		4.8	%
High Tech Industries
Energy Services Group, LLC	L+8.42%	10.22	%	5/4/2017	5/4/2022		4,170		4,139		4,154		1.6	%
Energy Services Group, LLC ^{(h) (n)}	L+8.42%	9.42	%	5/4/2017	5/4/2022		4,979		4,941		4,965		2.0	%
Energy Services Group, LLC	L+8.42%	10.22	%	5/4/2017	5/4/2022		1,187		1,172		1,182		0.5	%
Mnine Holdings, Inc.	P+7.75%	12.50	%	11/2/2018	11/2/2023		7,940		7,809		7,919		3.2	%
							18,276		18,061		18,220		7.3	%
Total Non-Controlled/Non-Affiliate Unitranche Secured Loans							59,997		57,635		57,862		23.2	%

Junior Secured Loans
Beverage, Food & Tobacco
CSM Bakery Supplies, LLC	L+7.75%	9.78	%	5/23/2013	7/5/2021		5,792		5,792		5,538		2.2	%
							5,792		5,792		5,538		2.2	%
High Tech Industries
Micro Holdings Corp.	L+7.50%	9.30	%	8/16/2017	8/18/2025		3,000		2,974		3,009		1.2	%
							3,000		2,974		3,009		1.2	%
Media: Diversified & Production
The Octave Music Group, Inc.	L+8.25%	9.95	%	5/29/2015	5/27/2022		4,355		4,325		4,355		1.8	%
							4,355		4,325		4,355		1.8	%
Services: Consumer
Education Corporation of America	L+11.00%	7.46% Cash/ 5.50% PIK	^(m)	9/3/2015	3/31/2020		833		831		774		0.3	%
							833		831		774		0.3	%
Total Non-Controlled/Non-Affiliate Junior Secured Loans							13,980		13,922		13,676		5.5	%

Equity Securities ^{(r) (s)}
Banking, Finance, Insurance & Real Estate
PKS Holdings, LLC (warrant to purchase up to 0.8% of the equity) ^(h)	—	—	^(t)	11/30/2017	11/30/2027		—		116		14		0.0	%
									116		14		0.0	%
Chemicals, Plastics & Rubber
Valudor Products, LLC (501,014 Class A-1 units)	n/a	10.00% PIK		6/18/2018	—		—		501		273		0.1	%
									501		273		0.1	%
High Tech Industries
Answers Finance, LLC (76,539 shares of common stock)	—	—	^(t)	4/14/2017	—		—		2,344		52		0.0	%
Host Analytics, Inc. (441,860 Class A units)	—	—	^(t)	12/28/2018	—		—		442		603		0.3	%
Recorded Future, Inc. (80,080 Class A units) ^(u)	—	—	^(t)	7/3/2019	—		—		80		84		0.0	%
									2,866		739		0.3	%
Media: Advertising, Printing & Publishing
AdTheorent, Inc. (128,866 Class A voting units)	—	—	^(t)	12/22/2016	—		—		129		395		0.2	%
MC Sign Lessor Corp. (686 shares of common units)	—	—	^(t)	8/30/2019	—		—		872		864		0.3	%
InMobi Pte, Ltd. (warrant to purchase up to 2.8% of the equity) ^{(h) (k)}	—	—	^(t)	9/18/2015	9/18/2025		—		—		188		0.1	%
									1,001		1,447		0.6	%

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)

December 31, 2019

(in thousands, except for shares and units)

Portfolio Company ^(a)	Spread Above Index ^(b)	Interest Rate		Acquisition Date ^(c)	Maturity	Principal		Amortized Cost		Fair Value ^(d)		% of Net Assets ^(e)
Media: Diversified & Production
Attom Intermediate Holdco, LLC (260,000 Class A units)	—	—	^(t)	1/4/2019	—		—	$	260	$	255		0.1	%
									260		255		0.1	%
Retail
The Tie Bar Operating Company, LLC - Class A Preferred Units (1,275 units)	—	—		6/25/2013	—		—		87		63		0.0	%
The Tie Bar Operating Company, LLC - Class B Preferred Units (1,275 units)	—	—		6/25/2013	—		—		—		—		0.0	%
									87		63		0.0	%
Services: Business
APCO Worldwide, Inc. (100 Class A voting common stock)	—	—	^(t)	11/1/2017	—		—		395		281		0.1	%
Atlas Sign Industries of FLA, LLC (warrant to purchase up to 0.8% of the equity)	—	—	^(t)	5/14/2018	5/14/2026		—		125		84		0.0	%
									520		365		0.1	%
Services: Consumer
Education Corporation of America - Series G Preferred Stock (8,333 shares)	n/a	12.00% PIK	^(m)	9/3/2015	—		—		7,492		5,117		2.1	%
									7,492		5,117		2.1	%
Wholesale
Nearly Natural, Inc. (152,174 Class A units)	—	—	^(t)	12/15/2017	—		—		152		148		0.1	%
									152		148		0.1	%
Total Non-Controlled/Non-Affiliate Equity Securities									12,995		8,421		3.4	%
Total Non-Controlled/Non-Affiliate Company Investments								$	520,312	$	513,959		206.1	%

Non-Controlled Affiliate Company Investments ^(v)
Senior Secured Loans
Banking, Finance, Insurance & Real Estate
American Community Homes, Inc.	L+10.00%	11.80% PIK		7/22/2014	12/31/2020		8,830	$	8,821	$	6,764		2.7	%
American Community Homes, Inc.	L+14.50%	16.30% PIK		7/22/2014	12/31/2020		5,599		5,594		4,289		1.7	%
American Community Homes, Inc.	L+10.00%	11.80% PIK		3/17/2016	12/31/2020		668		667		512		0.2	%
American Community Homes, Inc.	L+10.00%	11.80% PIK		5/24/2017	12/31/2020		535		534		410		0.2	%
American Community Homes, Inc.	L+14.50%	16.30% PIK		5/24/2017	12/31/2020		301		300		230		0.1	%
American Community Homes, Inc.	L+8.00%	9.80% PIK		8/10/2018	12/31/2020		1,922		1,922		1,472		0.6	%
American Community Homes, Inc.	L+8.00%	9.80% PIK		3/29/2019	12/31/2020		3,603		3,603		2,760		1.1	%
American Community Homes, Inc.	L+8.00%	9.80% PIK		9/30/2019	12/31/2020		14		14		11		0.0	%
American Community Homes, Inc.	L+8.00%	9.80% PIK		12/30/2019	12/31/2020		1,186		1,186		1,168		0.5	%
							22,658		22,641		17,616		7.1	%
Containers, Packaging & Glass
Summit Container Corporation ⁽ⁱ⁾	L+8.00%	9.80	%	12/5/2013	1/6/2021		3,259		3,269		2,971		1.1	%
Summit Container Corporation (Revolver) ^{(f) (i)}	L+8.00%	9.80	%	6/15/2018	1/6/2021		7,300		5,475		5,406		2.2	%
							10,559		8,744		8,377		3.3	%
Healthcare & Pharmaceuticals
SHI Holdings, Inc. ⁽ⁱ⁾	L+10.25%	12.05% PIK		7/10/2014	12/31/2020		2,899		2,897		2,459		1.0	%
SHI Holdings, Inc. (Revolver) ^(f)	L+10.25%	12.05% PIK		7/10/2014	12/31/2020		4,667		4,240		3,601		1.4	%
							7,566		7,137		6,060		2.4	%
Retail
Luxury Optical Holdings Co.	L+8.00%	9.80% PIK	^(m)	9/12/2014	9/30/2020		4,953		4,949		3,457		1.4	%
Luxury Optical Holdings Co. (Delayed Draw) ^(g)	L+11.50%	13.30%	^(m)	9/29/2017	9/30/2020		624		624		620		0.2	%
Luxury Optical Holdings Co. (Revolver)	L+8.00%	9.80% PIK	^(m)	9/12/2014	9/30/2020		228		228		159		0.1	%
							5,805		5,801		4,236		1.7	%
Services: Business
Curion Holdings, LLC ⁽ⁱ⁾	n/a	14.00% PIK	^(m)	5/2/2017	5/2/2022		4,226		4,189		3,279		1.3	%
Curion Holdings, LLC (Revolver) ^(f)	n/a	14.00% PIK	^(m)	5/2/2017	5/2/2022		478		451		441		0.2	%
							4,704		4,640		3,720		1.5	%
Services: Consumer
New England College of Business and Finance, LLC (Revolver) ^(f)	L+11.00%	12.69	%	6/25/2019	6/30/2021		1,275		1,148		1,148		0.5	%
							1,275		1,148		1,148		0.5	%
Total Non-Controlled Affiliate Senior Secured Loans							52,567		50,111		41,157		16.5	%

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)

December 31, 2019

(in thousands, except for shares and units)

Portfolio Company ^(a)	Spread Above Index ^(b)	Interest Rate		Acquisition Date ^(c)	Maturity	Principal		Amortized Cost		Fair Value ^(d)		% of Net Assets ^(e)
Unitranche Secured Loans ^(o)
Consumer Goods: Non-Durable
Incipio, LLC ^(w)	L+8.72%	10.41% PIK	^(x)	12/26/2014	8/22/2022		14,573	$	14,549	$	12,343		5.0	%
Incipio, LLC ^(y)	L+8.50%	10.19% PIK		3/9/2018	8/22/2022		3,815		3,815		3,750		1.5	%
Incipio, LLC	L+8.50%	10.19% PIK		7/6/2018	8/22/2022		1,621		1,621		1,606		0.6	%
Incipio, LLC	L+8.50%	10.19% PIK		4/17/2019	8/22/2022		692		692		686		0.3	%
							20,701		20,677		18,385		7.4	%
Total Non-Controlled Affiliate Unitranche Secured Loans							20,701		20,677		18,385		7.4	%

Junior Secured Loans
Consumer Goods: Non-Durable
Incipio, LLC ^(z)	n/a	10.70% PIK	^(m)	6/18/2018	8/22/2022		3,766		—		—		0.0	%
Incipio, LLC ^(aa)	n/a	10.70% PIK	^(m)	6/18/2018	8/22/2022		7,194		—		—		0.0	%
							10,960		—		—		0.0	%
Services: Business
Curion Holdings, LLC ⁽ⁱ⁾	n/a	15.00% PIK	^(m)	8/17/2018	1/2/2023		1,720		1		—		0.0	%
Curion Holdings, LLC ⁽ⁱ⁾	n/a	15.00% PIK	^(m)	8/17/2018	1/2/2023		44		—		—		0.0	%
							1,764		1		—		0.0	%
Total Non-Controlled Affiliate Junior Secured Loans							12,724		1		—		0.0	%

Equity Securities ^{(s) (v)}
Banking, Finance, Insurance & Real Estate
American Community Homes, Inc. (warrant to purchase up to 22.3% of the equity)	—	—	^(t)	10/9/2014	12/18/2024		—		—		—		0.0	%
									—		—		0.0	%
Consumer Goods: Non-Durable
Incipio, LLC (1,774 shares of Series C common units)	—	—	^(t)	7/6/2018	—		—		—		—		0.0	%
									—		—		0.0	%
Containers, Packaging & Glass
Summit Container Corporation (warrant to purchase up to 19.5% of the equity)	—	—	^(t)	1/6/2014	1/6/2024		—		—		—		0.0	%
									—		—		0.0	%
Healthcare & Pharmaceuticals
SHI Holdings, Inc. (24 shares of common stock)	—	—	^(t)	12/14/2016	—		—		27		—		0.0	%
									27		—		0.0	%
Retail
Luxury Optical Holdings Co. (86 shares of common stock)	—	—	^(t)	9/29/2017	—		—		—		—		0.0	%
									—		—		0.0	%
Services: Business
Curion Holdings, LLC (58,779 shares of common stock)	—	—	^(t)	8/17/2018	—		—		—		—		0.0	%
									—		—		0.0	%
Services: Consumer
New England College of Business and Finance, LLC (20.8% of units)	—	—	^(t)	6/21/2019	—		—		1,458		318		0.1	%
									1,458		318		0.1	%
Total Non-Controlled Affiliate Equity Securities									1,485		318		0.1	%
Total Non-Controlled Affiliate Company Investments								$	72,274	$	59,860		24.0	%

Controlled Affiliate Company Investments ^(ab)
Equity Securities
Investment Funds & Vehicles
MRCC Senior Loan Fund I, LLC (50.0% of the equity interests) ^(h)	—	—		10/31/2017	—		—	$	42,150	$	42,412		17.0	%
Total Controlled Affiliate Equity Securities									42,150		42,412		17.0	%
Total Controlled Affiliate Company Investments								$	42,150	$	42,412		17.0	%

TOTAL INVESTMENTS								$	634,736	$	616,231		247.1	%

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)

December 31, 2019

(in thousands, except for shares and units)

Derivative Instruments

Foreign currency forward contracts

	Notional Amount		Notional Amount				Unrealized Gain
Description	to be Purchased		to be Sold		Counterparty	Settlement Date	(Loss)
Foreign currency forward contract	$	133	£	104	Bannockburn Global Forex, LLC	1/2/2020	$	(5	)
Foreign currency forward contract	$	296	£	231	Bannockburn Global Forex, LLC	2/28/2020		(10	)
Foreign currency forward contract	$	35	£	27	Bannockburn Global Forex, LLC	3/2/2020		(1	)
Foreign currency forward contract	$	132	£	103	Bannockburn Global Forex, LLC	4/1/2020		(5	)
Foreign currency forward contract	$	130	£	102	Bannockburn Global Forex, LLC	5/5/2020		(4	)
Foreign currency forward contract	$	295	£	230	Bannockburn Global Forex, LLC	5/29/2020		(10	)
Foreign currency forward contract	$	34	£	27	Bannockburn Global Forex, LLC	6/1/2020		(1	)
Foreign currency forward contract	$	296	£	230	Bannockburn Global Forex, LLC	8/28/2020		(10	)
Foreign currency forward contract	$	35	£	28	Bannockburn Global Forex, LLC	9/3/2020		(2	)
Foreign currency forward contract	$	294	£	229	Bannockburn Global Forex, LLC	11/30/2020		(10	)
Foreign currency forward contract	$	34	£	26	Bannockburn Global Forex, LLC	12/2/2020		(1	)
							$	(59	)

(a)	All of our investments are issued by eligible portfolio companies, as defined in the Investment Company Act of 1940 (the “1940 Act”), unless otherwise noted. All of our investments are issued by U.S. portfolio companies unless otherwise noted.
(b)	The majority of the investments bear interest at a rate that may be determined by reference to the London Interbank Offered Rate (“LIBOR” or “L”) or Prime Rate (“Prime” or “P”) which reset daily, monthly, quarterly, or semiannually. For each such investment, the Company has provided the spread over LIBOR or Prime and the current contractual interest rate in effect at December 31, 2019. Certain investments are subject to a LIBOR or Prime interest rate floor, or rate cap.
(c)	Except as otherwise noted, all of the Company’s portfolio company investments, which as of December 31, 2019 represented 247.1% of the Company’s net assets or 94.1% of the Company’s total assets, are subject to legal restrictions on sales.
(d)	Because there is no readily available market value for these investments, the fair value of these investments is determined in good faith using significant unobservable inputs by our board of directors as required by the 1940 Act. (See Note 4 in the accompanying notes to the consolidated financial statements.)
(e)	Percentages are based on net assets of $249,357 as of December 31, 2019.
(f)	All or a portion of this commitment was unfunded at December 31, 2019. As such, interest is earned only on the funded portion of this commitment.
(g)	This delayed draw loan requires that certain financial covenants be met by the portfolio company prior to any fundings.
(h)	This investment is treated as a non-qualifying investment under Section 55(a) of the 1940 Act. Under the 1940 Act, the Company may not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of the Company’s total assets. As of December 31, 2019, non-qualifying assets totaled 19.6% of the Company’s total assets.
(i)	All of this loan is held in the Company’s wholly-owned subsidiary, Monroe Capital Corporation SBIC, LP, and is therefore not collateral to the Company’s revolving credit facility.
(j)	This investment represents a note convertible to preferred shares of the borrower.
(k)	This is an international company.
(l)	This is a demand note with no stated maturity.
(m)	This position was on non-accrual status as of December 31, 2019, meaning that the Company has ceased accruing interest income on the position. See Note 2 in the accompanying notes to the consolidated financial statements for additional information on the Company’s accounting policies.
(n)	This loan is denominated in Great Britain pounds and is translated into U.S. dollars as of the valuation date.

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)

December 31, 2019

(in thousands, except for shares and units)

(o)	The Company structures its unitranche secured loans as senior secured loans. The Company obtains security interests in the assets of these portfolio companies that serve as collateral in support of the repayment of these loans. This collateral may take the form of first-priority liens on the assets of a portfolio company. Generally, the Company syndicates a “first out” portion of the loan to an investor and retains a “last out” portion of the loan, in which case the “first out” portion of the loan will generally receive priority with respect to payments of principal, interest and any other amounts due thereunder. Unitranche structures combine characteristics of traditional first lien senior secured as well as second lien and subordinated loans and the Company’s unitranche secured loans will expose the Company to the risks associated with second lien and subordinated loans and may limit the Company’s recourse or ability to recover collateral upon a portfolio company’s bankruptcy. Unitranche secured loans typically provide for moderate loan amortization in the initial years of the facility, with the majority of the amortization deferred until loan maturity. Unitranche secured loans generally allow the borrower to make a large lump sum payment of principal at the end of the loan term, and there is a risk of loss if the borrower is unable to pay the lump sum or refinance the amount owed at maturity. In many cases the Company, together with its affiliates, are the sole or majority lender of these unitranche secured loans, which can afford the Company additional influence with a borrower in terms of monitoring and, if necessary, remediation in the event of underperformance.
(p)	A portion of this loan (principal of $9,258) is held in the Company’s wholly-owned subsidiary, Monroe Capital Corporation SBIC, LP, and is therefore not collateral to the Company’s revolving credit facility.
(q)	A portion of this loan (principal of $525) is held in the Company’s wholly-owned subsidiary, Monroe Capital Corporation SBIC, LP, and is therefore not collateral to the Company’s revolving credit facility.
(r)	Represents less than 5% ownership of the portfolio company’s voting securities.
(s)	Ownership of certain equity investments may occur through a holding company or partnership.
(t)	Represents a non-income producing security.
(u)	As of December 31, 2019, the Company was party to a subscription agreement with a commitment to fund an additional equity investment of $16.
(v)	As defined in the 1940 Act, the Company is deemed to be an “Affiliated Person” of the portfolio company as it owns 5% or more of the portfolio company’s voting securities. See Note 5 in the accompanying notes to the consolidated financial statements for additional information on transactions in which the issuer was an Affiliated Person (but not a portfolio company that the Company is deemed to control).
(w)	A portion of this loan (principal of $5,343) is held in the Company’s wholly-owned subsidiary, Monroe Capital Corporation SBIC, LP, and is therefore not collateral to the Company’s revolving credit facility.
(x)	A portion of the PIK interest rate for Incipio Technologies, Inc. is structured as a fee paid upon the termination of the commitment. The fee currently accrues at 0.22% per annum.
(y)	A portion of this loan (principal of $48) is held in the Company’s wholly-owned subsidiary, Monroe Capital Corporation SBIC, LP, and is therefore not collateral to the Company’s revolving credit facility.
(z)	A portion of this loan (principal of $1,015) is held in the Company’s wholly-owned subsidiary, Monroe Capital Corporation SBIC, LP, and is therefore not collateral to the Company’s revolving credit facility.
(aa)	A portion of this loan (principal of $1,938) is held in the Company’s wholly-owned subsidiary, Monroe Capital Corporation SBIC, LP, and is therefore not collateral to the Company’s revolving credit facility.
(ab)	As defined in the 1940 Act, the Company is deemed to be both an “Affiliated Person” of and to “Control” this portfolio company as it owns more than 25% of the portfolio company’s voting securities. See Note 5 in the accompanying notes to the consolidated financial statements for additional information on transactions in which the issuer was both an Affiliated Person and a portfolio company that the Company is deemed to Control.

n/a - not applicable

See Notes to Consolidated Financial Statements.

MONROE CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

(in thousands, except share and per share data)

Note 1. Organization and Principal Business

Monroe Capital Corporation (together with its subsidiaries, the “Company”) is an externally managed, non-diversified, closed-end management investment company and has elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). The Company’s investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation through investment in senior secured, junior secured and unitranche secured (a combination of senior secured and junior secured debt in the same facility in which the Company syndicates a “first out” portion of the loan to an investor and retains a “last out” portion of the loan) debt and, to a lesser extent, unsecured subordinated debt and equity investments. The Company is managed by Monroe Capital BDC Advisors, LLC (“MC Advisors”), a registered investment adviser under the Investment Advisers Act of 1940, as amended. In addition, for U.S. federal income tax purposes, the Company has elected to be treated as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”).

On February 28, 2014, the Company’s wholly-owned subsidiary, Monroe Capital Corporation SBIC, LP (“MRCC SBIC”), a Delaware limited partnership, received a license from the Small Business Administration (“SBA”) to operate as a Small Business Investment Company (“SBIC”) under Section 301(c) of the Small Business Investment Act of 1958, as amended. MRCC SBIC commenced operations on September 16, 2013. See Note 7 for additional information.

Note 2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”). The accompanying consolidated financial statements of the Company and related financial information have been prepared pursuant to the requirements for reporting on Form 10-Q and Articles 6 and 10 of Regulation S-X. The Company has determined it meets the definition of an investment company and follows the accounting and reporting guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946 – Financial Services – Investment Companies (“ASC Topic 946”). Certain prior period amounts have been reclassified to conform to the current period presentation.

Use of Estimates

The preparation of the consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Consolidation

As permitted under ASC Topic 946, the Company will generally not consolidate its investment in a portfolio company other than an investment company subsidiary or a controlled operating company whose business consists of providing services to the Company. Accordingly, the Company consolidated the results of the Company’s wholly-owned subsidiaries, MRCC SBIC and its wholly-owned general partner MCC SBIC GP, LLC, MRCC Holding Company I, LLC, MRCC Holding Company II, LLC, MRCC Holding Company III, LLC, MRCC Holding Company IV, LLC, MRCC Holding Company V, LLC, MRCC Holding Company VI, LLC and MRCC Holding Company VII, LLC, in its consolidated financial statements. All intercompany balances and transactions have been eliminated. The Company does not consolidate its non-controlling interest in MRCC Senior Loan Fund I, LLC (“SLF”). See further description of the Company’s investment in SLF in Note 3.

Fair Value of Financial Instruments

The Company applies fair value to substantially all of its financial instruments in accordance with ASC Topic 820 – Fair Value Measurements and Disclosures (“ASC Topic 820”). ASC Topic 820 defines fair value, establishes a framework used to measure fair value, and requires disclosures for fair value measurements, including the categorization of financial instruments into a three-level hierarchy based on the transparency of valuation inputs. See Note 4 for further discussion regarding the fair value measurements and hierarchy.

Revenue Recognition

The Company’s revenue recognition policies are as follows:

Investments and related investment income: Interest and dividend income is recorded on the accrual basis to the extent that the Company expects to collect such amounts. Interest income is accrued based upon the outstanding principal amount and contractual terms of debt and preferred equity investments. Interest is accrued on a daily basis. The Company records fees on loans based on the determination of whether the fee is considered a yield enhancement or payment for a service. If the fee is considered a yield enhancement associated with a funding of cash on a loan, the fee is generally deferred and recognized into interest income using the effective interest method if captured in the cost basis or using the straight-line method if the loan is unfunded and therefore there is no cost basis. If the fee is not considered a yield enhancement because a service was provided, and the fee is payment for that service, the fee is deemed earned and recognized as fee income in the period the service has been completed.

Dividend income on preferred equity securities is recorded as dividend income on an accrual basis to the extent that such amounts are payable by the portfolio company and are expected to be collected. Dividend income on common equity securities is recorded on the record date for private portfolio companies. Each distribution received from limited liability company (“LLC”) and limited partnership (“LP”) investments is evaluated to determine if the distribution should be recorded as dividend income or a return of capital. Generally, the Company will not record distributions from equity investments in LLCs and LPs as dividend income unless there are sufficient accumulated tax-basis earnings and profits in the LLC or LP prior to the distribution. Distributions that are classified as a return of capital are recorded as a reduction in the cost basis of the investment. For the three and six months ended June 30, 2020 and 2019, the Company did not receive return of capital distributions from its equity investments and its investment in LLC equity interest in SLF.

The Company has certain investments in its portfolio that contain a payment-in-kind (“PIK”) provision, which represents contractual interest or dividends that are added to the principal balance and recorded as income. The Company stops accruing PIK interest or PIK dividends when it is determined that PIK interest or PIK dividends are no longer collectible. To maintain RIC tax treatment, and to avoid corporate tax, substantially all of this income must be paid out to stockholders in the form of distributions, even though the Company has not yet collected the cash.

Loan origination fees, original issue discount and market discount or premiums are capitalized, and the Company then amortizes such amounts using the effective interest method as interest income over the life of the investment. Unamortized discounts and loan origination fees totaled $5,210 and $6,279 as of June 30, 2020 and December 31, 2019, respectively. Upfront loan origination and closing fees received for the three and six months ended June 30, 2020 totaled $11 and $986, respectively. Upfront loan origination and closing fees received for the three and six months ended June 30, 2019 totaled $884 and $1,800, respectively. Upon the prepayment of a loan or debt security, any unamortized premium or discount or loan origination fees are recorded as interest income.

The components of the Company’s investment income were as follows:

	Three months ended June 30,
	2020		2019
Interest income	$	13,531	$	14,026
PIK interest income		2,464		1,261
Dividend income ⁽¹⁾		849		888
Fee income		2,823		60
Prepayment gain (loss)		639		91
Accretion of discounts and amortization of premium		336		393
Total investment income	$	20,642	$	16,719

	Six months ended June 30,
	2020		2019
Interest income	$	25,510	$	27,240
PIK interest income		3,540		2,315
Dividend income ⁽²⁾		2,040		1,671
Fee income		3,021		629
Prepayment gain (loss)		853		204
Accretion of discounts and amortization of premium		680		819
Total investment income	$	35,644	$	32,878

(1)	Includes PIK dividends of ($51) and $13, respectively.
(2)	Includes PIK dividends of ($10) and $26, respectively.

Investment transactions are recorded on a trade-date basis. Realized gains or losses on portfolio investments are calculated based upon the difference between the net proceeds from the disposition and the amortized cost basis of the investment, without regard to unrealized gains or losses previously recognized. Realized gains and losses are recorded within net realized gain (loss) on investments on the consolidated statements of operations. Changes in the fair value of investments from the prior period, as determined by the Company’s board of directors (the “Board”) through the application of the Company’s valuation policy, are included within net change in unrealized gain (loss) on investments on the consolidated statements of operations.

Non-accrual: Loans or preferred equity securities are placed on non-accrual status when principal, interest or dividend payments become materially past due, or when there is reasonable doubt that principal, interest or dividends will be collected. Additionally, any original issue discount and market discount are no longer accreted to interest income as of the date the loan is placed on non-accrual status. Interest payments received on non-accrual loans may be recognized as income or applied to principal depending upon management’s judgment. Non-accrual loans are restored to accrual status when past due principal, interest, or dividends are paid, and, in management’s judgment are likely to remain current. The fair value of the Company’s investments on non-accrual status totaled $26,715 and $34,052 at June 30, 2020 and December 31, 2019, respectively.

Distributions

Distributions to common stockholders are recorded on the applicable record date. The amount, if any, to be distributed is determined by the Board each quarter and is generally based upon the earnings estimated by management. Net realized capital gains, if any, are generally distributed at least annually.

The determination of the tax attributes for the Company’s distributions is made annually, based upon its taxable income for the full year and distributions paid for the full year. Ordinary dividend distributions from a RIC do not qualify for the preferential tax rate on qualified dividend income from domestic corporations and qualified foreign corporations, except to the extent that the RIC received the income in the form of qualifying dividends from domestic corporations and qualified foreign corporations. The tax attributes for distributions will generally include both ordinary income and capital gains, but may also include qualified dividends or return of capital.

In October 2012, the Company adopted a dividend reinvestment plan (“DRIP”) that provides for the reinvestment of dividends on behalf of its stockholders, unless a stockholder has elected to receive dividends in cash. When the Company declares a cash dividend, the Company’s stockholders who have not “opted out” of the DRIP at least three days prior to the dividend payment date will have their cash dividend automatically reinvested into additional shares of the Company’s common stock. The Company has the option to satisfy the share requirements of the DRIP through the issuance of new shares of common stock or through open market purchases of common stock by the DRIP plan administrator. Newly issued shares are valued based upon the final closing price of the Company’s common stock on a date determined by the Board. Shares purchased in the open market to satisfy the DRIP requirements will be valued based upon the average price of the applicable shares purchased by the DRIP plan administrator, before any associated brokerage or other costs. See Note 9 for additional information on the Company’s distributions.

Earnings per Share

In accordance with the provisions of ASC Topic 260 – Earnings per Share, basic earnings per share is computed by dividing earnings available to common stockholders by the weighted average number of shares outstanding during the period. The weighted average shares outstanding utilized in the calculation of earnings per share take into account share issues on the issuance date and the Company’s repurchases of its common stock on the repurchase date. See Note 10 for additional information on the Company’s share activity. For the periods presented in these consolidated financial statements, there were no potentially dilutive common shares issued.

Segments

In accordance with ASC Topic 280 – Segment Reporting, the Company has determined that it has a single reporting segment and operating unit structure.

Cash

The Company deposits its cash in a financial institution and, at times, such balances may be in excess of the Federal Deposit Insurance Corporation insurance limits.

Restricted Cash

Restricted cash includes amounts held within MRCC SBIC. Cash held within an SBIC is generally restricted to the originations of new loans from the SBIC and the payment of SBA debentures and related interest expense.

Unamortized Deferred Financing Costs

Deferred financing costs represent fees and other direct incremental costs incurred in connection with the Company’s borrowings. As of June 30, 2020 and December 31, 2019, the Company had unamortized deferred financing costs of $7,988 and $8,053, respectively, presented as a direct reduction of the carrying amount of debt on the consolidated statements of assets and liabilities. These amounts are amortized and included in interest and other debt financing expenses on the consolidated statements of operations over the estimated average life of the borrowings. Amortization of deferred financing costs for the three and six months ended June 30, 2020 was $520 and $1,004, respectively. Amortization of deferred financing costs for the three and six months ended June 30, 2019 was $468 and $901, respectively.

Offering Costs

Offering costs include, among other things, fees paid in relation to legal, accounting, regulatory and printing work completed in preparation of debt and equity offerings. Offering costs from equity offerings are charged against the proceeds from the offering within the consolidated statements of changes in net assets. Offering costs from debt offerings are reclassified to unamortized deferred financing costs on the consolidated statements of assets and liabilities as noted above. As of June 30, 2020 and December 31, 2019, other assets on the consolidated statements of assets and liabilities included $415 and $378, respectively, of deferred offering costs which will be charged against the proceeds from future debt or equity offerings when completed.

Investments Denominated in Foreign Currency

As of both June 30, 2020 and December 31, 2019, the Company held investments in two portfolio companies that were denominated in Great Britain pounds.

At each balance sheet date, portfolio company investments denominated in foreign currencies are translated into U.S. dollars using the spot exchange rate on the last business day of the period. Purchases and sales of foreign portfolio company investments, and any income from such investments, are translated into U.S. dollars using the rates of exchange prevailing on the respective dates of such transactions.

Although the fair values of foreign portfolio company investments and the fluctuation in such fair values are translated into U.S. dollars using the applicable foreign exchange rates described above, the Company does not isolate the portion of the change in fair value resulting from foreign currency exchange rates fluctuations from the change in fair value of the underlying investment. All fluctuations in fair value are included in net change in unrealized gain (loss) on investments on the Company’s consolidated statements of operations.

Investments denominated in foreign currencies and foreign currency transactions may involve certain consideration and risks not typically associated with those of domestic origin, including unanticipated movements in the value of the foreign currency relative to the U.S. dollar.

Derivative Instruments

The Company may enter into foreign currency forward contracts to reduce the Company’s exposure to foreign currency exchange rate fluctuations. In a foreign currency forward contract, the Company agrees to receive or deliver a fixed quantity of one currency for another, at a pre-determined price at a future date. Foreign currency forward contracts are marked-to-market based on the difference between the forward rate and the exchange rate at the current period end. Unrealized gain (loss) on foreign currency forward contracts are recorded on the Company’s consolidated statements of assets and liabilities by counterparty on a net basis.

The Company does not utilize hedge accounting and as such values its foreign currency forward contracts at fair value with the change in unrealized gain or loss recorded in net change in unrealized gain (loss) on foreign currency forward contracts and the realized gain or loss recorded in net realized gain (loss) on foreign currency forward contracts on the Company’s consolidated statements of operations.

Income Taxes

The Company has elected to be treated as a RIC under Subchapter M of the Code and operates in a manner so as to qualify for the tax treatment available to RICs. To maintain qualification as a RIC, the Company must, among other things, meet certain source-of-income and asset diversification requirements and distribute to stockholders, for each taxable year, at least 90% of the Company’s “investment company taxable income,” which is generally the Company’s net ordinary income plus the excess, if any, of realized net short-term capital gains over realized net long-term capital losses. If the Company qualifies as a RIC and satisfies the annual distribution requirement, the Company will not have to pay corporate-level federal income taxes on any income that the Company distributes to its stockholders. The Company intends to make distributions in an amount sufficient to maintain RIC status each year and to avoid any federal income taxes on income. The Company is also subject to nondeductible federal excise taxes if the Company does not distribute at least 98% of net ordinary income, 98.2% of any capital gain net income, if any, and any recognized and undistributed income from prior years for which it paid no federal income taxes. To the extent that the Company determines that its estimated current year annual taxable income may exceed estimated current year dividend distributions, the Company accrues excise tax, calculated as 4% of the estimated excess taxable income, if any, as taxable income is earned. For the three and six months ended June 30, 2020, the Company recorded a net expense on the consolidated statements of operations of $125 and $145, respectively, for U.S. federal excise tax. For the three and six months ended June 30, 2019, the Company recorded a net expense on the consolidated statements of operations of $17 and $10, respectively, for U.S. federal excise tax. As of June 30, 2020 and December 31, 2019, the Company had payables of $83 and $23 for excise taxes, respectively.

Certain of the Company’s consolidated subsidiaries may be subject to U.S. federal and state corporate-level income taxes. For both the three and six months ended June 30, 2020, the Company recorded a net tax expense of $2 on the consolidated statements of operations for these subsidiaries. For both the three and six months ended June 30, 2019, the Company recorded a net tax expense of zero on the consolidated statements of operations for these subsidiaries. As of June 30, 2020 and December 31, 2019, payables for corporate-level income taxes of zero and $7, respectively, were included in accounts payable and accrued expenses on the consolidated statements of assets and liabilities.

The Company accounts for income taxes in conformity with ASC Topic 740 – Income Taxes (“ASC Topic 740”). ASC Topic 740 provides guidelines for how uncertain tax positions should be recognized, measured, presented and disclosed in the consolidated financial statements. ASC Topic 740 requires the evaluation of tax positions taken in the course of preparing the Company’s tax returns to determine whether the tax positions are “more-likely-than-not” to be sustained by the applicable tax authority. Tax benefits of positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax expense in the current year. It is the Company’s policy to recognize accrued interest and penalties related to uncertain tax benefits in income tax expense. There were no material uncertain income tax positions through June 30, 2020. The 2016 through 2019 tax years remain subject to examination by U.S. federal and state tax authorities.

Subsequent Events

The Company has evaluated the need for disclosures and/or adjustments resulting from subsequent events through the date the consolidated financial statements were issued. There have been no subsequent events that occurred during such period that would require disclosure in this Form 10-Q or would be required to be recognized in the consolidated financial statements as of and for the six months ended June 30, 2020.

Recent Accounting Pronouncements

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). The primary objective of ASU 2018-13 is to improve the effectiveness of the disclosure requirements for fair value measurements in the notes to the financial statements. ASU 2018-13 is effective for interim and annual reporting periods beginning after December 15, 2019, although early adoption is permitted. The Company has adopted ASU 2018-13 and the adoption did not have a significant impact on the Company’s consolidated financial statements and disclosures.

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (“ASU 2020-04”). The amendments in ASU 2020-04 provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The standard is effective as of March 12, 2020 through December 31, 2022. Management is currently evaluating the impact of the optional guidance on the Company’s consolidated financial statements and disclosures. The Company did not utilize the optional expedients and exceptions provided by ASU 2020-04 during the six months ended June 30, 2020.

The SEC recently adopted a final rule under SEC Release No. 34-88365 (the “Final Rule”), amending the accelerated filer and large accelerated filer definitions in Exchange Act Rule 12b-2. The amendments include a provision under which a BDC will be excluded from the “accelerated filer” and “large accelerated filer” definitions if the BDC has (1) less than $700 million in public float, and (2) annual investment income of less than $100 million. In addition, BDCs are subject to the same transition provisions for accelerated filer and large accelerated filer status as other issuers, but instead substituting investment income for revenue. The amendments will reduce the number of issuers required to comply with the auditor attestation on the internal control over financial reporting requirement provided under Section 404(b) of the Sarbanes-Oxley Act of 2002. The Final Rule applies to annual report filings due on or after April 27, 2020.

Note 3. Investments

The following tables show the composition of the investment portfolio, at amortized cost and fair value (with corresponding percentage of total portfolio investments):

	June 30, 2020				December 31, 2019
Amortized Cost:
Senior secured loans	$	489,046	77.9	%	$	485,871	76.6	%
Unitranche secured loans		66,511	10.6			78,312	12.3
Junior secured loans		13,425	2.1			13,923	2.2
LLC equity interest in SLF		42,150	6.7			42,150	6.6
Equity securities		16,710	2.7			14,480	2.3
Total	$	627,842	100.0	%	$	634,736	100.0	%

	June 30, 2020				December 31, 2019
Fair Value:
Senior secured loans	$	449,815	79.9	%	$	475,157	77.1	%
Unitranche secured loans		54,015	9.6			76,247	12.4
Junior secured loans		12,376	2.2			13,676	2.2
LLC equity interest in SLF		35,555	6.3			42,412	6.9
Equity securities		11,535	2.0			8,739	1.4
Total	$	563,296	100.0	%	$	616,231	100.0	%

The following tables show the composition of the investment portfolio by geographic region, at amortized cost and fair value (with corresponding percentage of total portfolio investments). The geographic composition is determined by the location of the corporate headquarters of the portfolio company, which may not be indicative of the primary source of the portfolio company’s business:

	June 30, 2020				December 31, 2019
Amortized Cost:
International	$	19,876	3.2	%	$	21,474	3.4	%
Midwest		155,314	24.7			135,258	21.3
Northeast		146,991	23.4			160,184	25.3
Southeast		156,594	24.9			150,486	23.7
Southwest		38,117	6.1			57,971	9.1
West		110,950	17.7			109,363	17.2
Total	$	627,842	100.0	%	$	634,736	100.0	%

	June 30, 2020				December 31, 2019
Fair Value:
International	$	18,812	3.3	%	$	21,760	3.5	%
Midwest		138,570	24.6			127,532	20.7
Northeast		131,059	23.3			147,673	24.0
Southeast		150,623	26.7			147,634	23.9
Southwest		39,206	7.0			68,205	11.1
West		85,026	15.1			103,427	16.8
Total	$	563,296	100.0	%	$	616,231	100.0	%

The following tables show the composition of the investment portfolio by industry, at amortized cost and fair value (with corresponding percentage of total portfolio investments):

	June 30, 2020				December 31, 2019
Amortized Cost:
Automotive	$	8,200	1.3	%	$	7,773	1.2	%
Banking, Finance, Insurance & Real Estate		80,144	12.8			81,183	12.8
Beverage, Food & Tobacco		26,297	4.2			16,657	2.6
Capital Equipment		15,511	2.5			—	—
Chemicals, Plastics & Rubber		28,590	4.5			29,683	4.7
Construction & Building		18,892	3.0			30,695	4.8
Consumer Goods: Durable		25,666	4.1			22,148	3.5
Consumer Goods: Non-Durable		24,629	3.9			22,639	3.6
Containers, Packaging & Glass		5,858	0.9			8,744	1.4
Energy: Oil & Gas		4,246	0.7			4,296	0.7
Environmental Industries		12,253	2.0			12,182	1.9
Healthcare & Pharmaceuticals		42,879	6.8			54,024	8.5
High Tech Industries		94,527	15.1			91,409	14.4
Investment Funds & Vehicles		42,150	6.7			42,150	6.6
Media: Advertising, Printing & Publishing		28,594	4.6			25,741	4.1
Media: Broadcasting & Subscription		1,946	0.3			1,475	0.2
Media: Diversified & Production		6,947	1.1			10,523	1.7
Retail		31,961	5.1			30,621	4.8
Services: Business		101,642	16.2			109,208	17.2
Services: Consumer		17,157	2.7			25,552	4.0
Wholesale		9,753	1.5			8,033	1.3
Total	$	627,842	100.0	%	$	634,736	100.0	%

	June 30, 2020				December 31, 2019
Fair Value:
Automotive	$	8,159	1.4	%	$	7,787	1.3	%
Banking, Finance, Insurance & Real Estate		74,950	13.3			76,351	12.4
Beverage, Food & Tobacco		20,271	3.6			15,634	2.5
Capital Equipment		15,570	2.8			—	—
Chemicals, Plastics & Rubber		27,092	4.8			29,509	4.8
Construction & Building		18,701	3.3			30,887	5.0
Consumer Goods: Durable		22,885	4.1			21,237	3.4
Consumer Goods: Non-Durable		13,521	2.4			20,365	3.3
Containers, Packaging & Glass		5,890	1.1			8,377	1.4
Energy: Oil & Gas		4,270	0.8			4,306	0.7
Environmental Industries		11,948	2.1			12,001	1.9
Healthcare & Pharmaceuticals		37,968	6.7			62,727	10.2
High Tech Industries		91,393	16.2			90,385	14.7
Investment Funds & Vehicles		35,555	6.3			42,412	6.9
Media: Advertising, Printing & Publishing		28,784	5.1			26,333	4.3
Media: Broadcasting & Subscription		1,945	0.3			1,491	0.2
Media: Diversified & Production		6,953	1.2			10,652	1.7
Retail		16,173	2.9			16,998	2.8
Services: Business		98,511	17.5			108,704	17.6
Services: Consumer		13,247	2.4			22,051	3.6
Wholesale		9,510	1.7			8,024	1.3
Total	$	563,296	100.0	%	$	616,231	100.0	%

MRCC Senior Loan Fund I, LLC

The Company co-invests with NLV Financial Corporation (“NLV”) in senior secured loans and equity securities through SLF, an unconsolidated Delaware LLC. SLF is capitalized as underlying investment transactions are completed, taking into account available debt and equity commitments available for funding these investments. All portfolio and investment decisions in respect to SLF must be approved by the SLF investment committee, consisting of one representative from the Company and one representative from NLV. SLF may cease making new investments upon notification of either member but operations will continue until all investments have been sold or paid-off in the normal course of business. Investments held by SLF are measured at fair value using the same valuation methodologies as described in Note 4. The Company’s investment is illiquid in nature as SLF does not allow for withdrawal from the LLC or the sale of a member’s interest unless approved by the board members of SLF. The full withdrawal of a member would result in an orderly wind-down of SLF.

SLF’s profits and losses are allocated to the Company and NLV in accordance with their respective ownership interests. As of both June 30, 2020 and December 31, 2019, the Company and NLV each owned 50.0% of the LLC equity interests of SLF. As of both June 30, 2020 and December 31, 2019, SLF had $100,000 in equity commitments from its members (in the aggregate), of which $84,300 was funded.

As of both June 30, 2020 and December 31, 2019, the Company had committed to fund $50,000 of LLC equity interest subscriptions to SLF. As of both June 30, 2020 and December 31, 2019, $42,150 of the Company’s LLC equity interest subscriptions to SLF had been called and contributed, net of return of capital distributions subject to recall.

For the three and six months ended June 30, 2020, the Company received $900 and $2,050 of dividend income from its LLC equity interest in SLF, respectively. For the three and six months ended June 30, 2019, the Company received dividend income of $875 and $1,645 from its LLC equity interest in SLF, respectively.

SLF has a senior secured revolving credit facility (as amended, the “SLF Credit Facility”) with Capital One, N.A., through its wholly-owned subsidiary MRCC Senior Loan Fund I Financing SPV, LLC (“SLF SPV”), which as of June 30, 2020 allowed SLF SPV to borrow up to $170,000 at any one time, subject to leverage and borrowing base restrictions. Borrowings under the SLF Credit Facility bear interest at an annual rate of LIBOR (three-month) plus 2.25%. The maturity date on the SLF Credit Facility is March 22, 2023.

SLF does not pay any fees to MC Advisors or its affiliates; however, SLF has entered into an administration agreement with Monroe Capital Management Advisors, LLC (“MC Management”), pursuant to which certain loan servicing and administrative functions are delegated to MC Management. SLF may reimburse MC Management for its allocable share of overhead and other expenses incurred by MC Management. For the three and six months ended June 30, 2020, SLF incurred $50 and $106, respectively, of allocable expenses. For the three and six months ended June 30, 2019, SLF incurred $47 and $93, respectively, of allocable expenses. There are no agreements or understandings by which the Company guarantees any SLF obligations.

As of June 30, 2020 and December 31, 2019, SLF had total assets at fair value of $224,350 and $245,469, respectively. As of both June 30, 2020 and December 31, 2019, SLF had zero portfolio company investments on non-accrual status. The portfolio companies in SLF are in industries and geographies similar to those in which the Company may invest directly. Additionally, as of June 30, 2020 and December 31, 2019, SLF had $2,989 and $4,861, respectively, in outstanding commitments to fund investments under undrawn revolvers and delayed draw commitments.

Below is a summary of SLF’s portfolio, followed by a listing of the individual investments in SLF’s portfolio as of June 30, 2020 and December 31, 2019:

	As of
	June 30, 2020			December 31, 2019
Senior secured loans ⁽¹⁾		237,112			243,778
Weighted average current interest rate on senior secured loans ⁽²⁾		6.0	%		7.0	%
Number of borrowers in SLF		61			64
Largest portfolio company investment ⁽¹⁾		7,121			6,860
Total of five largest portfolio company investments ⁽¹⁾		29,311			28,880

(1)	Represents outstanding principal amount, excluding unfunded commitments.
(2)	Computed as the (a) annual stated interest rate on accruing senior secured loans divided by (b) total senior secured loans at outstanding principal amount.

MRCC SENIOR LOAN FUND I, LLC

CONSOLIDATED SCHEDULE OF INVESTMENTS

(unaudited)

June 30, 2020

Portfolio Company ^(a)	Spread Above Index ^(b)	Interest Rate ^(b)			Maturity	Principal		Fair Value
Non-Controlled/Non-Affiliate Company Investments
Senior Secured Loans
Aerospace & Defense
Bromford Industries Limited ^(d)	L+5.25%		6.25	%	11/5/2025		2,786	$	2,662
Bromford Industries Limited ^(d)	L+5.25%		6.25	%	11/5/2025		1,857		1,775
IMIA Holdings, Inc.	L+4.50%		5.50	%	10/28/2024		4,197		4,184
IMIA Holdings, Inc. (Revolver) ^(c)	L+4.50%		5.50	%	10/28/2024		680		—
Trident Maritime SH, Inc.	L+5.50%		6.50	%	6/4/2024		4,424		4,357
Trident Maritime SH, Inc. (Revolver) ^(c)	L+5.50%		6.50	%	6/4/2024		340		—
							14,284		12,978
Automotive
Truck-Lite Co., LLC	L+6.25%		7.32	%	12/14/2026		1,735		1,724
Truck-Lite Co., LLC (Delayed Draw) ^(c)	L+6.25%		7.32	%	12/14/2026		256		—
Wheel Pros, LLC	L+4.75%		4.93	%	4/4/2025		4,907		4,520
							6,898		6,244
Banking, Finance, Insurance & Real Estate
Avison Young (USA), Inc. ^(d)	L+5.00%		5.31	%	1/30/2026		4,925		4,548
Harbour Benefit Holdings, Inc. (fka Zenith Merger Sub, Inc.)	L+5.25%		6.25	%	12/13/2024		4,676		4,538
Harbour Benefit Holdings, Inc. (fka Zenith Merger Sub, Inc.) (Delayed Draw) ^(c)	L+5.25%		6.25	%	12/13/2024		264		101
Lightbox Intermediate, L.P.	L+5.00%		5.18	%	5/11/2026		4,963		4,590
Minotaur Acquisition, Inc.	L+5.00%		5.18	%	3/27/2026		2,963		2,753
Nuvei Technologies Corp. ^(d)	L+5.00%		6.00	%	9/26/2025		4,657		4,622
							22,448		21,152
Beverage, Food & Tobacco
CBC Restaurant Corp.	L+6.50%		2.00% Cash/ 5.50% PIK		11/10/2022		2,588		2,152
CBC Restaurant Corp. (Delayed Draw) ^(c)	L+6.50%		2.00% Cash/ 5.50% PIK		11/10/2022		370		154
SW Ingredients Holdings, LLC	L+4.25%		5.25	%	7/3/2025		3,675		3,638
							6,633		5,944
Capital Equipment
Analogic Corporation	L+5.25%		6.25	%	6/24/2024		4,824		4,668
							4,824		4,668
Chemicals, Plastics & Rubber
Polymer Solutions Group	L+7.00%		8.00	%	6/30/2021		1,235		1,194
							1,235		1,194
Construction & Building
ISC Purchaser, LLC	L+5.00%		6.07	%	7/11/2025		4,963		4,900
The Cook & Boardman Group, LLC	L+5.75%		6.75	%	10/20/2025		2,955		2,719
							7,918		7,619
Consumer Goods: Durable
International Textile Group, Inc.	L+5.00%		6.43	%	5/1/2024		1,781		1,024
							1,781		1,024
Consumer Goods: Non-Durable
PH Beauty Holdings III, Inc.	L+5.00%		5.31	%	9/26/2025		2,455		1,964
							2,455		1,964
Containers, Packaging & Glass
Liqui-Box Holdings, Inc.	L+4.50%		5.50	%	2/26/2027		4,333		3,673
Polychem Acquisition, LLC	L+5.00%		6.08	%	3/17/2025		2,963		2,963
Port Townsend Holdings Company, Inc.	L+4.75%		5.75	%	4/3/2024		4,709		4,238
PVHC Holding Corp.	L+4.75%		5.75	%	8/5/2024		3,267		2,809
							15,272		13,683

MRCC SENIOR LOAN FUND I, LLC

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

(unaudited)

June 30, 2020

Portfolio Company ^(a)	Spread Above Index ^(b)	Interest Rate ^(b)			Maturity	Principal		Fair Value
Energy: Oil & Gas
Drilling Info Holdings, Inc.	L+4.25%		4.43	%	7/30/2025		4,586	$	4,208
Offen, Inc.	L+5.00%		6.07	%	6/22/2026		2,424		2,154
Offen, Inc. (Delayed Draw) ^(c)	L+5.00%		6.07	%	6/22/2026		885		—
							7,895		6,362
Healthcare & Pharmaceuticals
LSCS Holdings, Inc.	L+4.25%		5.32	%	3/17/2025		2,310		2,183
LSCS Holdings, Inc.	L+4.25%		5.32	%	3/17/2025		596		564
P&L Developments, LLC	L+7.50%		9.50	%	6/28/2024		2,978		2,970
Radiology Partners, Inc.	L+4.25%		5.29	%	7/9/2025		4,760		4,447
Solara Medical Supplies, LLC	L+6.00%		7.45	%	2/27/2024		5,487		5,542
Solara Medical Supplies, LLC	L+6.00%		7.45	%	2/27/2024		1,063		1,073
Solara Medical Supplies, LLC (Revolver) ^(c)	L+6.00%		7.22	%	2/27/2024		714		577
							17,908		17,356
High Tech Industries
AQA Acquisition Holding, Inc.	L+4.25%		5.25	%	5/24/2023		3,274		3,192
Corel, Inc. ^(d)	L+5.00%		5.36	%	7/2/2026		3,950		3,743
LW Buyer, LLC	L+5.00%		5.18	%	12/30/2024		4,950		4,802
TGG TS Acquisition Company	L+6.50%		6.68	%	12/12/2025		4,028		3,816
							16,202		15,553
Hotels, Gaming & Leisure
Excel Fitness Holdings, Inc.	L+5.25%		6.25	%	10/7/2025		4,229		3,764
North Haven Spartan US Holdco, LLC	L+5.00%		6.00	%	6/6/2025		2,332		1,939
Tait, LLC	L+4.50%		4.68	%	3/28/2025		4,188		3,744
Tait, LLC (Revolver)	P+3.50%		6.75	%	3/28/2025		769		712
							11,518		10,159
Media: Advertising, Printing & Publishing
Cadent, LLC	L+5.25%		6.25	%	9/11/2023		4,895		4,785
Cadent, LLC (Revolver) ^(c)	L+5.25%		6.25	%	9/11/2023		167		—
Digital Room Holdings, Inc.	L+5.00%		6.07	%	5/21/2026		4,384		3,507
Monotype Imaging Holdings Corp.	L+5.50%		6.50	%	10/9/2026		4,969		4,373
							14,415		12,665
Media: Diversified & Production
Research Now Group, Inc. and Survey Sampling International, LLC	L+5.50%		6.50	%	12/20/2024		6,825		6,338
Stats Intermediate Holding, LLC	L+5.25%		5.44	%	7/10/2026		4,975		4,556
The Octave Music Group, Inc.	L+6.00%		6.25% Cash/ 0.75% PIK		5/29/2025		4,963		4,342
							16,763		15,236
Services: Business
AQ Carver Buyer, Inc.	L+5.00%		6.00	%	9/23/2025		4,963		4,466
CHA Holdings, Inc.	L+4.50%		5.50	%	4/10/2025		2,013		1,862
CHA Holdings, Inc.	L+4.50%		5.57	%	4/10/2025		424		392
Eliassen Group, LLC	L+4.50%		4.68	%	11/5/2024		3,025		2,836
Engage2Excel, Inc.	L+8.00%		9.00	%	3/7/2023		4,277		3,933
Engage2Excel, Inc.	L+8.00%		9.00	%	3/7/2023		771		709
Engage2Excel, Inc. (Revolver) ^(c)	P+7.00%		10.25	%	3/7/2023		545		343
GI Revelation Acquisition, LLC	L+5.00%		5.18	%	4/16/2025		1,372		1,257
Legility, LLC	L+6.00%		7.00	%	12/17/2025		4,969		4,899
Orbit Purchaser, LLC	L+4.50%		5.50	%	10/21/2024		2,469		2,419
Orbit Purchaser, LLC	L+4.50%		5.50	%	10/21/2024		1,906		1,868
Orbit Purchaser, LLC	L+4.50%		5.50	%	10/21/2024		557		546
Output Services Group, Inc.	L+4.50%		5.50	%	3/27/2024		4,890		3,553
SIRVA Worldwide, Inc.	L+5.50%		5.68	%	8/4/2025		1,923		1,423
Teneo Holdings, LLC	L+5.25%		6.25	%	7/11/2025		4,963		4,733
The Kleinfelder Group, Inc.	L+4.75%		5.75	%	11/29/2024		2,463		2,396
							41,530		37,635

MRCC SENIOR LOAN FUND I, LLC

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

(unaudited)

June 30, 2020

Portfolio Company ^(a)	Spread Above Index ^(b)	Interest Rate ^(b)			Maturity	Principal		Fair Value
Services: Consumer
Cambium Learning Group, Inc.	L+4.50%		4.81	%	12/18/2025		4,925	$	4,720
LegalZoom.com, Inc.	L+4.50%		4.68	%	11/21/2024		2,708		2,654
							7,633		7,374
Telecommunications
Intermedia Holdings, Inc.	L+6.00%		7.00	%	7/21/2025		1,806		1,773
Mavenir Systems, Inc.	L+6.00%		7.00	%	5/8/2025		3,920		3,920
							5,726		5,693
Transportation: Cargo
GlobalTranz Enterprises, LLC	L+5.00%		5.18	%	5/15/2026		3,279		2,627
							3,279		2,627
Utilities: Oil & Gas
NGS US Finco, LLC	L+4.25%		5.25	%	10/1/2025		1,721		1,429
							1,721		1,429
Wholesale
BMC Acquisition, Inc.	L+5.25%		6.25	%	12/30/2024		4,875		4,564
HALO Buyer, Inc.	L+4.50%		5.50	%	6/30/2025		4,900		4,075
PT Intermediate Holdings III, LLC	L+5.50%		6.50	%	10/15/2025		1,990		1,791
							11,765		10,430
Total senior loan investments								$	218,989

Equity Securities
Beverage, Food & Tobacco
CBC Restaurant Corp. (warrant to purchase up to 0.4% of the equity)	—		—	^(e)	6/30/2027		—	$	—

Total equity securities								$	—

TOTAL INVESTMENTS								$	218,989

(a)	All investments are U.S. companies unless otherwise noted.

(b)

The majority of investments bear interest at a rate that may be determined by reference to the London Interbank Offered Rate (“LIBOR” or “L”) or Prime (“P”) which reset daily, monthly, quarterly or semiannually. The Company has provided the spread over LIBOR or Prime and the current contractual rate of interest in effect at June 30, 2020. Certain investments are subject to a LIBOR or Prime interest rate floor.

(c)	All or a portion of this commitment was unfunded as of June 30, 2020. As such, interest is earned only on the funded portion of this commitment. Principal reflects the commitment outstanding.

(d)	This is an international company.
(e)	Represents a non-income producing security.

MRCC SENIOR LOAN FUND I, LLC

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2019

Portfolio Company ^(a)	Spread Above Index^(b)	Interest Rate ^(b)			Maturity		Principal		Fair Value
Non-Controlled/Non-Affiliate Company Investments
Senior Secured Loans
Aerospace & Defense
Bromford Industries Limited ^(e)	L+5.25%		7.14	%		11/5/2025		2,800	$	2,772
Bromford Industries Limited ^(e)	L+5.25%		7.14	%		11/5/2025		1,867		1,848
IMIA Holdings, Inc.	L+4.50%		6.44	%		10/28/2024		4,277		4,277
IMIA Holdings, Inc. (Revolver) ^(c)	L+4.50%		6.44	%		10/28/2024		680		—
MAG Aerospace Industries, Inc.	L+4.75%		6.55	%		6/6/2025		3,251		3,234
Novaria Holdings, LLC	L+4.75%		6.55	%		12/19/2024		4,290		4,288
Trident Maritime SH, Inc.	L+5.50%		7.30	%		6/4/2024		4,435		4,404
Trident Maritime SH, Inc. (Revolver) ^(c)	L+5.50%		7.30	%		6/4/2024		340		—
								21,940		20,823
Automotive
Innovative Aftermarkets Systems	L+5.50%		7.30	%		1/25/2021		1,893		1,891
Wheel Pros, LLC	L+4.75%		6.55	%		4/4/2025		4,933		4,875
								6,826		6,766
Banking, Finance, Insurance & Real Estate
Avison Young (USA), Inc. ^(e)	L+5.00%		6.94	%		1/30/2026		4,950		4,874
Lightbox Intermediate, L.P.	L+5.00%		6.74	%		5/11/2026		4,975		4,913
Minotaur Acquisition, Inc.	L+5.00%		6.80	%		3/27/2026		2,978		2,940
Nuvei Technologies Corp. ^(e)	L+5.00%		6.80	%		9/26/2025		4,657		4,692
Zenith Merger Sub, Inc.	L+5.25%		7.19	%		12/13/2024		4,700		4,700
Zenith Merger Sub, Inc. (Delayed Draw) ^(c)	L+5.25%		7.19	%		12/13/2024		265		66
								22,525		22,185
Beverage, Food & Tobacco
CBC Restaurant Corp.	L+6.50%		8.30	%		11/10/2022		2,537		2,502
SW Ingredients Holdings, LLC	L+4.00%		6.21	%		7/3/2025		3,694		3,688
US Salt, LLC	L+4.75%		6.55	%		1/16/2026		2,729		2,743
								8,960		8,933
Capital Equipment
Analogic Corporation	L+6.00%		7.80	%		6/24/2024		4,874		4,854
								4,874		4,854
Chemicals, Plastics & Rubber
Polymer Solutions Group	L+6.75%		8.45	%		6/30/2021		1,271		1,271
								1,271		1,271
Construction & Building
ISC Purchaser, LLC	L+5.00%		6.94	%		7/11/2025		4,988		4,988
The Cook & Boardman Group, LLC	L+5.75%		7.67	%		10/20/2025		2,970		2,866
								7,958		7,854
Consumer Goods: Durable
International Textile Group, Inc.	L+5.00%		6.69	%		5/1/2024		1,805		1,498
								1,805		1,498
Consumer Goods: Non-Durable
PH Beauty Holdings III, Inc.	L+5.00%		6.80	%		9/26/2025		2,468		2,356
								2,468		2,356
Containers, Packaging & Glass
Liqui-Box Holdings, Inc. ^(d)	L+4.50%		6.30	%		6/3/2026		4,333		4,241
Polychem Acquisition, LLC	L+5.00%		6.95	%		3/17/2025		2,978		2,978
Port Townsend Holdings Company, Inc.	L+4.75%		6.55	%		4/3/2024		4,838		4,777
PVHC Holding Corp.	L+4.75%		6.69	%		8/5/2024		3,283		2,947
PVHC Holding Corp. (Delayed Draw) ^(c)	L+4.75%		6.69	%		8/5/2024		425		—
								15,857		14,943

MRCC SENIOR LOAN FUND I, LLC

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

December 31, 2019

Portfolio Company ^(a)	Spread Above Index^(b)	Interest Rate ^(b)			Maturity		Principal		Fair Value
Energy: Oil & Gas
Drilling Info Holdings, Inc.	L+4.25%		6.05	%		7/30/2025		4,609	$	4,586
Offen, Inc.	L+5.00%		6.94	%		6/22/2026		2,436		2,436
Offen, Inc. (Delayed Draw) ^(c)	L+5.00%		6.94	%		6/22/2026		885		—
								7,930		7,022
Healthcare & Pharmaceuticals
LSCS Holdings, Inc.	L+4.25%		6.19	%		3/17/2025		2,322		2,299
LSCS Holdings, Inc.	L+4.25%		6.19	%		3/17/2025		599		593
P&L Developments, LLC	L+7.50%		9.50	%		6/28/2024		2,993		2,978
Radiology Partners, Inc.	L+4.75%		6.62	%		7/9/2025		4,938		4,970
Solara Medical Supplies, LLC	L+6.00%		7.94	%		2/27/2024		5,515		5,515
Solara Medical Supplies, LLC	L+6.00%		7.94	%		2/27/2024		1,068		1,068
Solara Medical Supplies, LLC (Revolver) ^(c)	L+6.00%		7.94	%		2/27/2024		714		—
								18,149		17,423
High Tech Industries
AQA Acquisition Holding, Inc.	L+4.25%		6.19	%		5/24/2023		3,291		3,275
Corel, Inc. ^(e)	L+5.00%		6.91	%		7/2/2026		4,000		3,875
Gigamon, Inc.	L+4.25%		6.04	%		12/27/2024		2,940		2,914
LW Buyer, LLC	L+5.00%		6.80	%		12/30/2024		4,975		4,938
Perforce Software, Inc.	L+4.50%		6.30	%		7/1/2026		3,325		3,331
TGG TS Acquisition Company	L+6.50%		8.24	%		12/12/2025		4,058		4,037
								22,589		22,370
Hotels, Gaming & Leisure
Excel Fitness Holdings, Inc.	L+5.25%		7.05	%		10/7/2025		4,250		4,255
North Haven Spartan US Holdco, LLC	L+5.00%		6.89	%		6/6/2025		2,344		2,343
Tait, LLC	L+4.50%		6.61	%		3/28/2025		4,210		4,210
Tait, LLC (Revolver) ^(c)	L+4.50%		6.61	%		3/28/2025		769		—
								11,573		10,808
Media: Advertising, Printing & Publishing
Cadent, LLC	L+5.25%		7.05	%		9/11/2023		4,938		4,925
Cadent, LLC (Revolver) ^(c)	L+5.25%		7.05	%		9/11/2023		167		—
Digital Room Holdings, Inc.	L+5.00%		6.80	%		5/21/2026		4,406		4,186
Monotype Imaging Holdings Corp. ^(d)	L+5.50%		7.30	%		10/9/2026		5,000		4,825
								14,511		13,936
Media: Diversified & Production
Research Now Group, Inc. and Survey Sampling International, LLC	L+5.50%		7.41	%		12/20/2024		6,860		6,869
Stats Intermediate Holding, LLC	L+5.25%		7.30	%		7/10/2026		5,000		4,894
								11,860		11,763
Services: Business
AQ Carver Buyer, Inc. ^(d)	L+5.00%		6.80	%		9/24/2025		5,000		4,925
CHA Holdings, Inc.	L+4.50%		6.44	%		4/10/2025		2,023		2,020
CHA Holdings, Inc.	L+4.50%		6.44	%		4/10/2025		426		426
Eliassen Group, LLC	L+4.50%		6.30	%		11/5/2024		3,032		3,022
Engage2Excel, Inc.	L+6.50%		8.71	%		3/7/2023		4,298		4,181
Engage2Excel, Inc.	L+6.50%		8.42	%		3/7/2023		775		754
Engage2Excel, Inc. (Delayed Draw) ^(c)	L+6.50%		8.42	%		3/7/2023		500		—
Engage2Excel, Inc. (Revolver) ^(c)	P+5.50%		10.25	%		3/7/2023		545		354
GI Revelation Acquisition, LLC	L+5.00%		6.80	%		4/16/2025		1,379		1,305

MRCC SENIOR LOAN FUND I, LLC

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

December 31, 2019

Portfolio Company ^(a)	Spread Above Index^(b)	Interest Rate ^(b)			Maturity		Principal		Fair Value
Orbit Purchaser, LLC	L+4.50%		6.45	%		10/21/2024		2,481	$	2,479
Orbit Purchaser, LLC	L+4.50%		6.45	%		10/21/2024		1,916		1,914
Orbit Purchaser, LLC	L+4.50%		6.45	%		10/21/2024		560		560
Output Services Group, Inc.	L+4.50%		6.30	%		3/27/2024		4,916		4,166
SIRVA Worldwide, Inc.	L+5.50%		7.30	%		8/4/2025		1,950		1,931
Teneo Holdings, LLC	L+5.25%		6.99	%		7/11/2025		4,988		4,757
The Kleinfelder Group, Inc.	L+4.75%		6.37	%		11/29/2024		2,475		2,474
								37,264		35,268
Services: Consumer
Cambium Learning Group, Inc.	L+4.50%		6.30	%		12/18/2025		4,950		4,801
LegalZoom.com, Inc.	L+4.50%		6.30	%		11/21/2024		2,722		2,747
								7,672		7,548
Telecommunications
Intermedia Holdings, Inc.	L+6.00%		7.80	%		7/21/2025		1,815		1,820
Mavenir Systems, Inc.	L+6.00%		7.91	%		5/8/2025		3,940		3,920
								5,755		5,740
Transportation: Cargo
GlobalTranz Enterprises, LLC	L+5.00%		6.79	%		5/15/2026		3,295		3,032
								3,295		3,032
Utilities: Oil & Gas
NGS US Finco, LLC	L+4.25%		6.05	%		10/1/2025		1,733		1,733
								1,733		1,733
Wholesale
BMC Acquisition, Inc.	L+5.25%		7.17	%		12/30/2024		4,900		4,888
Halo Buyer, Inc.	L+4.50%		6.30	%		6/30/2025		4,925		4,827
PT Intermediate Holdings III, LLC	L+5.50%		7.44	%		10/15/2025		2,000		1,995
								11,825		11,710
TOTAL INVESTMENTS									$	239,836

(a)	All investments are U.S. companies unless otherwise noted.
(b)	The majority of investments bear interest at a rate that may be determined by reference to the London Interbank Offered Rate (“LIBOR” or “L”) or Prime (“P”) which reset daily, monthly, quarterly or semiannually. The Company has provided the spread over LIBOR or Prime and the current contractual rate of interest in effect at December 31, 2019. Certain investments are subject to a LIBOR or Prime interest rate floor.
(c)	All or a portion of this commitment was unfunded as of December 31, 2019. As such, interest is earned only on the funded portion of this commitment. Principal reflects the commitment outstanding.
(d)	Investment position or portion thereof unsettled as of December 31, 2019.
(e)	This is an international company.

Below is certain summarized financial information for SLF as of June 30, 2020 and December 31, 2019 and for the three and six months ended June 30, 2020 and 2019:

	June 30, 2020			December 31, 2019
	(unaudited)
Assets
Investments, at fair value	$	218,989		$	239,836
Cash		204			446
Restricted cash		4,539			4,226
Interest receivable		573			920
Other assets		45			41
Total assets	$	224,350		$	245,469
Liabilities
Revolving credit facility	$	153,747		$	147,232
Less: Unamortized deferred financing costs		(1,189	)		(1,407	)
Total debt, less unamortized deferred financing costs		152,558			145,825
Payable for open trades		—			13,940
Interest payable		340			533
Accounts payable and accrued expenses		342			346
Total liabilities		153,240			160,644
Members’ capital		71,110			84,825
Total liabilities and members’ capital	$	224,350		$	245,469

	Three months ended June 30,				Six months ended June 30,
	2020		2019		2020			2019
	(unaudited)				(unaudited)
Investment income:
Interest income	$	4,011	$	3,887	$	8,264		$	7,335
Total investment income		4,011		3,887		8,264			7,335
Expenses:
Interest and other debt financing expenses		1,488		1,771		3,102			3,369
Professional fees		164		164		348			340
Total expenses		1,652		1,935		3,450			3,709
Net investment income (loss)		2,359		1,952		4,814			3,626
Net gain (loss):
Net change in unrealized gain (loss)		7,901		21		(14,428	)		533
Net gain (loss)		7,901		21		(14,428	)		533
Net increase (decrease) in members’ capital	$	10,260	$	1,973	$	(9,614	)	$	4,159

Note 4. Fair Value Measurements

Investments

The Company values all investments in accordance with ASC Topic 820. ASC Topic 820 requires enhanced disclosures about assets and liabilities that are measured and reported at fair value. As defined in ASC Topic 820, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Where available, fair value is based on observable market prices or parameters, or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models are applied. These valuation models involve some level of management estimation and judgment, the degree of which is dependent on the price transparency for the assets or liabilities or market and the assets’ or liabilities’ complexity.

ASC Topic 820 establishes a hierarchal disclosure framework which prioritizes and ranks the level of market price observability of inputs used in measuring investments at fair value. Market price observability is affected by a number of factors, including the type of investment and the characteristics specific to the investment. Investments with readily available active quoted prices or for which fair value can be measured from actively quoted prices generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.

Based on the observability of the inputs used in the valuation techniques, the Company is required to provide disclosures on fair value measurements according to the fair value hierarchy. The fair value hierarchy ranks the observability of the inputs used to determine fair values. Investments carried at fair value are classified and disclosed in one of the following three categories:

Level 1 – Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date.

Level 2 – Valuations based on inputs other than quoted prices in active markets, including quoted prices for similar assets or liabilities, which are either directly or indirectly observable.

Level 3 – Valuations based on inputs that are unobservable and significant to the overall fair value measurement. This includes situations where there is little, if any, market activity for the assets or liabilities. The inputs into the determination of fair value are based upon the best information available and may require significant management judgment or estimation.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an asset’s or liability’s categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. All investments, with the exception of investments measured at fair value using net asset value (“NAV”), as of June 30, 2020 and December 31, 2019 were categorized as Level 3 investments.

With respect to investments for which market quotations are not readily available, the Company’s Board undertakes a multi-step valuation process each quarter, as described below:

	·	the quarterly valuation process begins with each portfolio company or investment being initially evaluated and rated by the investment professionals of MC Advisors responsible for the credit monitoring of the portfolio investment;

	·	the Board engages one or more independent valuation firm(s) to conduct independent appraisals of a selection of investments for which market quotations are not readily available. The Company will consult with independent valuation firm(s) relative to each portfolio company at least once in every calendar year, but the independent appraisals are generally received quarterly;

	·	to the extent an independent valuation firm is not engaged to conduct an investment appraisal on an investment for which market quotations are not readily available, the investment will be valued by the MC Advisors investment professional responsible for the credit monitoring;

	·	preliminary valuation conclusions are then documented and discussed with the investment committee of the Company;

	·	the audit committee of the Board reviews the preliminary valuations of MC Advisors and of the independent valuation firm(s) and MC Advisors adjusts or further supplements the valuation recommendations to reflect any comments provided by the audit committee; and

	·	the Board discusses these valuations and determines the fair value of each investment in the portfolio in good faith, based on the input of MC Advisors, the independent valuation firm(s) and the audit committee.

The accompanying consolidated schedules of investments held by the Company consist primarily of private debt instruments (“Level 3 debt”). The Company generally uses the income approach to determine fair value for Level 3 debt where market quotations are not readily available, as long as it is appropriate. If there is deterioration in credit quality or a debt investment is in workout status, the Company may consider other factors in determining the fair value, including the value attributable to the debt investment from the enterprise value of the portfolio company or the proceeds that would be received in a liquidation analysis. This liquidation analysis may include probability weighting of alternative outcomes. The Company generally considers its Level 3 debt to be performing if the borrower is not in default, the borrower is remitting payments in a timely manner; the loan is in covenant compliance or is otherwise not deemed to be impaired. In determining the fair value of the performing Level 3 debt, the Company considers fluctuations in current interest rates, the trends in yields of debt instruments with similar credit ratings, financial condition of the borrower, economic conditions and other relevant factors, both qualitative and quantitative. In the event that a Level 3 debt instrument is not performing, as defined above, the Company will evaluate the value of the collateral utilizing the same framework described above for a performing loan to determine the value of the Level 3 debt instrument.

Under the income approach, discounted cash flow models are utilized to determine the present value of the future cash flow streams of its debt investments, based on future interest and principal payments as set forth in the associated loan agreements. In determining fair value under the income approach, the Company also considers the following factors: applicable market yields and leverage levels, credit quality, prepayment penalties, the nature and realizable value of any collateral, the portfolio company’s ability to make payments, and changes in the interest rate environment and the credit markets that generally may affect the price at which similar investments may be made.

Under the market approach, the enterprise value methodology is typically utilized to determine the fair value of an investment. There is no one methodology to estimate enterprise value and, in fact, for any one portfolio company, enterprise value is generally best expressed as a range of values, from which the Company derives a single estimate of enterprise value. In estimating the enterprise value of a portfolio company, the Company analyzes various factors consistent with industry practice, including but not limited to original transaction multiples, the portfolio company’s historical and projected financial results, applicable market trading and transaction comparables, applicable market yields and leverage levels, the nature and realizable value of any collateral, the markets in which the portfolio company does business, and comparisons of financial ratios of peer companies that are public. Typically, the enterprise values of private companies are based on multiples of earnings before interest, income taxes, depreciation and amortization (“EBITDA”), cash flows, net income, revenues, or in limited cases, book value.

In addition, for certain debt investments, the Company may base its valuation on indicative bid and ask prices provided by an independent third-party pricing service. Bid prices reflect the highest price that the Company and others may be willing to pay. Ask prices represent the lowest price that the Company and others may be willing to accept. The Company generally uses the midpoint of the bid/ask range as its best estimate of fair value of such investment.

The Board approved the fair value of the Company’s investment portfolio as of June 30, 2020 and these valuations were determined in accordance with the Company's valuation policy based on information known or knowable as of the valuation date. The COVID-19 pandemic is an unprecedented circumstance that materially impacts the fair value of the Company’s investments. As a result, the fair value of the Company’s portfolio investments may be further negatively impacted after June 30, 2020 by circumstances and events that are not yet known.

Foreign Currency Forward Contracts

The valuation for the Company’s foreign currency forward contracts is based on the difference between the exchange rate associated with the forward contract and the exchange rate at the current period end. Foreign currency forward contracts are categorized as Level 2 in the fair value hierarchy.

Fair Value Disclosures

The following table presents fair value measurements of investments and foreign currency forward contracts, by major class, as of June 30, 2020, according to the fair value hierarchy:

	Fair Value Measurements
	Level 1		Level 2		Level 3		Total
Investments:
Senior secured loans	$	—	$	—	$	449,815	$	449,815
Unitranche secured loans		—		—		54,015		54,015
Junior secured loans		—		—		12,376		12,376
Equity securities		—		—		11,535		11,535
Investments measured at NAV ^{(1) (2)}		—		—		—		35,555
Total investments	$	—	$	—	$	527,741	$	563,296
Foreign currency forward contracts asset (liability)	$	—	$	15	$	—	$	15

(1)	Certain investments that are measured at fair value using the NAV have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented on the consolidated statements of assets and liabilities.
(2)	Represents the Company’s investment in LLC equity interests in SLF. The fair value of this investment has been determined using the NAV of the Company’s ownership interest in members’ capital.

The following table presents fair value measurements of investments and foreign currency forward contracts, by major class, as of December 31, 2019, according to the fair value hierarchy:

	Fair Value Measurements
	Level 1		Level 2			Level 3		Total
Investments:
Senior secured loans	$	—	$	—		$	475,157	$	475,157
Unitranche secured loans		—		—			76,247		76,247
Junior secured loans		—		—			13,676		13,676
Equity securities		—		—			8,739		8,739
Investments measured at NAV ^{(1) (2)}		—		—			—		42,412
Total investments	$	—	$	—		$	573,819	$	616,231
Foreign currency forward contracts asset (liability)	$	—	$	(59	)	$	—	$	(59	)

(1)	Certain investments that are measured at fair value using the NAV have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented on the consolidated statements of assets and liabilities.
(2)	Represents the Company’s investment in LLC equity interests in SLF. The fair value of this investment has been determined using the NAV of the Company’s ownership interest in members’ capital.

Senior secured, unitranche secured and junior secured loans are collateralized by tangible and intangible assets of the borrowers. These investments include loans to entities that have some level of challenge in obtaining financing from other, more conventional institutions, such as a bank. Interest rates on these loans are either fixed or floating, and are based on current market conditions and credit ratings of the borrower. Excluding loans on non-accrual, the contractual interest rates on the loans ranged from 5.93% to 16.00% at June 30, 2020 and 7.30% to 16.30% at December 31, 2019. The maturity dates on the loans outstanding at June 30, 2020 range between November 2020 and December 2025.

The following tables provide a reconciliation of the beginning and ending balances for investments at fair value that use Level 3 inputs for the three and six months ended June 30, 2020:

	Investments
	Senior secured loans			Unitranche secured loans			Junior secured loans			Equity securities			Total investments
Balance as of March 31, 2020	$	481,565		$	55,826		$	11,704		$	10,417		$	559,512
Net realized gain (loss) on investments		2,340			—			—			121			2,461
Net change in unrealized gain (loss) on investments		(4,960	)		(1,960	)		710			1,088			(5,122	)
Purchases of investments and other adjustments to cost ⁽¹⁾		12,729			314			10			69			13,122
Proceeds from principal payments and sales of investments ⁽²⁾		(41,859	)		(165	)		(48	)		(160	)		(42,232	)
Reclassifications ⁽³⁾		—			—			—			—			—
Balance as of June 30, 2020	$	449,815		$	54,015		$	12,376		$	11,535		$	527,741

	Investments
	Senior secured loans			Unitranche secured loans			Junior secured loans			Equity securities			Total investments
Balance as of December 31, 2019	$	475,157		$	76,247		$	13,676		$	8,739		$	573,819
Net realized gain (loss) on investments		2,345			89			—			121			2,555
Net change in unrealized gain (loss) on investments		(28,502	)		(10,447	)		(800	)		565			(39,184	)
Purchases of investments and other adjustments to cost ⁽¹⁾		77,432			2,053			3,875			2,270			85,630
Proceeds from principal payments and sales of investments ⁽²⁾		(76,620	)		(13,924	)		(4,375	)		(160	)		(95,079	)
Reclassifications ⁽³⁾		3			(3	)		—			—			—
Balance as of June 30, 2020	$	449,815		$	54,015		$	12,376		$	11,535		$	527,741

(1)	Includes purchases of new investments, effects of refinancing and restructurings, premium and discount accretion and amortization and PIK interest.
(2)	Represents net proceeds from investments sold and principal paydowns received.
(3)	Represents non-cash reclassification of investment type due to the restructuring of the investments in portfolio companies.

The following tables provide a reconciliation of the beginning and ending balances for investments at fair value that use Level 3 inputs for the three and six months ended June 30, 2019:

	Investments
	Senior secured loans			Unitranche secured loans			Junior secured loans			Equity securities		Total investments
Balance as of March 31, 2019	$	466,300		$	70,126		$	21,266		$	7,221	$	564,913
Net realized gain (loss) on investments		35			—			—			—		35
Net change in unrealized gain (loss) on investments		(3,821	)		33			(313	)		298		(3,803	)
Purchases of investments and other adjustments to cost ⁽¹⁾		57,438			942			3			—		58,383
Proceeds from principal payments and sales of investments ⁽²⁾		(23,838	)		(190	)		(640	)		—		(24,668	)
Reclassifications ⁽³⁾		(12,432	)		12,432			(1,458	)		1,458		—
Balance as of June 30, 2019	$	483,682		$	83,343		$	18,858		$	8,977	$	594,860

	Investments
	Senior secured loans			Unitranche secured loans			Junior secured loans			Equity securities		Total investments
Balance as of December 31, 2018	$	439,068		$	58,852		$	21,154		$	6,913	$	525,987
Net realized gain (loss) on investments		35			—			—			—		35
Net change in unrealized gain (loss) on investments		(3,679	)		269			(205	)		346		(3,269	)
Purchases of investments and other adjustments to cost ⁽¹⁾		124,195			1,448			7			260		125,910
Proceeds from principal payments and sales of investments ⁽²⁾		(52,815	)		(348	)		(640	)		—		(53,803	)
Reclassifications ⁽³⁾		(23,122	)		23,122			(1,458	)		1,458		—
Balance as of June 30, 2019	$	483,682		$	83,343		$	18,858		$	8,977	$	594,860

⁽¹⁾	Includes purchases of new investments, effects of refinancing and restructurings, premium and discount accretion and amortization and PIK interest.
⁽²⁾	Represents net proceeds from investments sold and principal paydowns received.
⁽³⁾	Represents non–cash reclassification of investment type due to the restructuring of the investments in portfolio companies.

The total net change in unrealized gain (loss) on investments included on the consolidated statements of operations for the three and six months ended June 30, 2020, attributable to Level 3 investments still held at June 30, 2020, was $5,353 and ($28,714), respectively. The total net change in unrealized gain (loss) on investments included on the consolidated statements of operations for the three and six months ended June 30, 2019, attributable to Level 3 investments still held at June 30, 2019, was ($3,803) and ($3,224), respectively. Reclassifications impacting Level 3 of the fair value hierarchy are reported as transfers in or out of Level 3 as of the beginning of the period which the reclassifications occur. There were no transfers among Levels 1, 2 and 3 during the three and six months ended June 30, 2020 and 2019.

Significant Unobservable Inputs

ASC Topic 820 requires disclosure of quantitative information about the significant unobservable inputs used in the valuation of assets and liabilities classified as Level 3 within the fair value hierarchy. Disclosure of this information is not required in circumstances where a valuation (unadjusted) is obtained from a third-party pricing service and the information regarding the unobservable inputs is not reasonably available to the Company and as such, the disclosures provided below exclude those investments valued in that manner. The tables below are not intended to be all-inclusive, but rather to provide information on significant unobservable inputs and valuation techniques used by the Company.

The valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements of assets and liabilities as of June 30, 2020 were as follows:

						Weighted
					Unobservable	Average			Range
	Fair Value			Valuation Technique	Input	Mean			Minimum			Maximum
Assets:
Senior secured loans	$	273,774		Discounted cash flow	EBITDA multiples		6.7	x		4.3	x		13.5	x
					Market yields		10.7	%		7.3	%		21.4	%
Senior secured loans		104,517		Discounted cash flow	Revenue multiples		5.2	x		0.3	x		10.8	x
					Market yields		9.0	%		6.7	%		19.0	%
Senior secured loans		24,879		Enterprise value	Revenue multiples		1.2	x		0.3	x		2.0	x
Senior secured loans		20,610		Enterprise value	Book value multiples		1.7	x		1.7	x		1.7	x
Senior secured loans		11,479		Enterprise value	EBITDA multiples		7.1	x		6.5	x		7.8	x
Senior secured loans		3,249		Liquidation	Probability weighting of alternative outcomes		94.6	%		1.7	%		100.0	%
Senior secured loans		2,685		Discounted cash flow	Book value multiples		1.3	x		1.3	x		1.3	x
					Market yields		10.6	%		10.6	%		10.6	%
Unitranche loans		42,434		Discounted cash flow	EBITDA multiples		8.7	x		7.0	x		11.5	x
					Market yields		10.1	%		8.8	%		12.3	%
Unitranche loans		7,832		Discounted cash flow	Revenue multiples		0.6	x		0.6	x		0.6	x
					Market yields		11.2	%		11.0	%		11.5	%
Unitranche loans		3,749		Enterprise value	Revenue multiples		0.6	x		0.6	x		0.6	x
Junior secured loans		3,934		Discounted cash flow	EBITDA multiples		5.3	x		5.3	x		5.3	x
					Market yields		10.5	%		10.5	%		10.5	%
Junior secured loans		762		Liquidation	Probability weighting of alternative outcomes		51.5	%		51.5	%		51.5	%
Equity securities		5,450		Enterprise value	EBITDA multiples		8.0	x		4.3	x		13.3	x
Equity securities		5,154		Liquidation	Probability weighting of alternative outcomes		54.3	%		2.5	%		54.6	%
Equity securities		879		Enterprise value	Revenue multiples		4.1	x		0.8	x		10.8	x
Total Level 3 Assets	$	511,387	⁽¹⁾

⁽¹⁾	Excludes loans of $16,354 at fair value where valuation (unadjusted) is obtained from a third-party pricing service for which such disclosure is not required.

The valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements of assets and liabilities as of December 31, 2019 were as follows:

					Unobservable	Weighted Average			Range
	Fair Value			Valuation Technique	Input	Mean			Minimum			Maximum
Assets:
Senior secured loans	$	287,776		Discounted cash flow	EBITDA multiples		7.0	x		4.0	x		14.0	x
					Market yields		10.0	%		6.5	%		17.5	%
Senior secured loans		94,468		Discounted cash flow	Revenue multiples		5.7	x		0.7	x		11.8	x
					Market yields		8.2	%		6.5	%		15.8	%
Senior secured loans		31,720		Liquidation	Probability weighting of alternative outcomes		147.4	%		9.8	%		175.5	%
Senior secured loans		17,616		Enterprise value	Book value multiples		1.6	x		1.6	x		1.6	x
Senior secured loans		20,742		Enterprise value	EBITDA multiples		6.6	x		4.8	x		8.5	x
Senior secured loans		9,164		Enterprise value	Revenue multiples		0.4	x		0.2	x		0.7	x
Unitranche secured loans		49,943		Discounted cash flow	EBITDA multiples		8.6	x		7.8	x		10.5	x
					Market yields		9.0	%		7.4	%		10.8	%
Unitranche secured loans		13,961		Discounted cash flow	Revenue multiples		2.3	x		0.6	x		3.6	x
					Market yields		10.9	%		10.7	%		11.5	%
Unitranche secured loans		12,343		Enterprise value	Revenue multiples		0.6	x		0.6	x		0.6	x
Junior secured loans		774		Liquidation	Probability weighting of alternative outcomes		52.4	%		52.4	%		52.4	%
Equity securities		5,435		Liquidation	Probability weighting of alternative outcomes		52.7	%		21.8	%		54.6	%
Equity securities		2,375		Enterprise value	EBITDA multiples		6.7	x		4.0	x		10.5	x
Equity securities		877		Enterprise value	Revenue multiples		4.4	x		1.5	x		11.8	x
Total Level 3 Assets	$	547,194	⁽¹⁾

(1)	Excludes loans of $26,625 at fair value where valuation (unadjusted) is obtained from a third-party pricing service for which such disclosure is not required.

The significant unobservable inputs used in the income approach of fair value measurement of the Company’s investments is the discount rate used to discount the estimated future cash flows expected to be received from the underlying investment, which include both future principal and interest payments. Increases (decreases) in the discount rate would result in a decrease (increase) in the fair value estimate of the investment. Included in the consideration and selection of discount rates are the following factors: risk of default, rating of the investment and comparable investments, and call provisions.

The significant unobservable inputs used in the market approach of fair value measurement of the Company’s investments are the market multiples of EBITDA or revenue of the comparable guideline public companies. The Company selects a population of public companies for each investment with similar operations and attributes of the portfolio company. Using these guideline public companies’ data, a range of multiples of enterprise value to EBITDA or revenue is calculated. The Company selects percentages from the range of multiples for purposes of determining the portfolio company’s estimated enterprise value based on said multiple and generally the latest twelve months EBITDA or revenue of the portfolio company (or other meaningful measure). Increases (decreases) in the multiple will result in an increase (decrease) in enterprise value, resulting in an increase (decrease) in the fair value estimate of the investment.

Other Financial Assets and Liabilities

ASC Topic 820 requires disclosure of the fair value of financial instruments for which it is practical to estimate such value. The Company believes that the carrying amounts of its other financial instruments such as cash, receivables and payables approximate the fair value of such items due to the short maturity of such instruments. Fair value of the Company’s revolving credit facility is estimated by discounting remaining payments using applicable market rates or market quotes for similar instruments at the measurement date, if applicable. As of both June 30, 2020 and December 31, 2019, the Company believes that the carrying value of its revolving credit facility approximates fair value. As of June 30, 2020, the senior unsecured notes (“2023 Notes”) were trading on The Nasdaq Global Select Market for $22.76 per unit at par value. The par value at underwriting for the 2023 Notes was $25.00 per unit. Based on this Level 1 input, the fair value of the $109,000 in principal outstanding 2023 Notes was $99,234. As of December 31, 2019, the 2023 Notes were trading on The Nasdaq Global Select Market for $25.70 per unit at par value. Based on this Level 1 input, the fair value of the $109,000 in principal outstanding 2023 Notes was $112,052. SBA debentures are carried at cost and with their longer maturity dates, fair value is estimated by discounting remaining payments using current market rates for similar instruments and considering such factors as the legal maturity date and the ability of market participants to prepay the debentures. As of both June 30, 2020 and December 31, 2019, the Company believes that the carrying value of the SBA debentures approximates fair value.

Note 5. Transactions with Affiliated Companies

An affiliated company is a company in which the Company has an ownership interest of 5% or more of its voting securities. A controlled affiliate company is a company in which the Company has an ownership interest of more than 25% of its voting securities. Please see the Company’s consolidated schedule of investments for the type of investment, principal amount, interest rate including the spread, and the maturity date. Transactions related to the Company’s investments with affiliates for the six months ended June 30, 2020 and 2019 were as follows:

Portfolio Company	Fair value at December 31, 2019		Transfers in (out)		Purchases (cost)		Sales and paydowns (cost)			PIK interest (cost)		Discount accretion		Net realized gain (loss)		Net unrealized gain (loss)			Fair value at June 30, 2020
Non-controlled affiliate company investment:
American Community Homes, Inc.	$	6,764	$	—	$	—	$	—		$	534	$	4	$	—	$	199		$	7,501
American Community Homes, Inc.		4,289		—		—		—			474		2		—		100			4,865
American Community Homes, Inc.		512		—		—		—			135		—		—		(4	)		643
American Community Homes, Inc.		410		—		—		—			32		1		—		12			455
American Community Homes, Inc.		230		—		—		—			26		—		—		5			261
American Community Homes, Inc.		1,472		—		—		—			173		—		—		33			1,678
American Community Homes, Inc.		2,760		—		—		—			276		—		—		72			3,108
American Community Homes, Inc.		11		—		—		—			4		—		—		—			15
American Community Homes, Inc.		1,168		—		—		(1,111	)		14		—		—		—			71
American Community Homes, Inc. (Revolver)		—		—		2,500		—			13		—		—		(500	)		2,013
American Community Homes, Inc. (warrant to purchase up to 22.3% of the equity)		—		—		—		—			—		—		—		—			—
		17,616		—		2,500		(1,111	)		1,681		7		—		(83	)		20,610

Ascent Midco, LLC		—		—		6,860		(34	)		—		11		—		28			6,865
Ascent Midco, LLC (Delayed Draw)		—		—		—		—			—		—		—		—			—
Ascent Midco, LLC (Revolver)		—		—		734		(367	)		—		—		—		(5	)		362
Ascent Midco, LLC (2,032,258 Class A units)		—		—		2,032		—			—		—		—		705			2,737
		—		—		9,626		(401	)		—		11		—		728			9,964

Curion Holdings, LLC		3,279		—		—		—			—		—		—		(159	)		3,120
Curion Holdings, LLC (Revolver)		441		—		—		—			—		—		—		—			441
Curion Holdings, LLC (Junior secured loan)		—		—		—		—			—		—		—		—			—
Curion Holdings, LLC (Junior secured loan)		—		—		—		—			—		—		—		—			—
Curion Holdings, LLC (58,779 shares of common stock)		—		—		—		—			—		—		—		—			—
		3,720		—		—		—			—		—		—		(159	)		3,561

Incipio, LLC		12,343		—		—		—			128		—		—		(8,722	)		3,749
Incipio, LLC		3,750		—		—		—			263		—		—		(32	)		3,981
Incipio, LLC		1,606		—		—		—			112		—		—		(16	)		1,702
Incipio, LLC		686		—		—		—			38		—		—		(7	)		717
Incipio, LLC		—		—		1,404		—			54		—		—		(26	)		1,432
Incipio, LLC (Junior secured loan)		—		—		—		—			—		—		—		—			—
Incipio, LLC (Junior secured loan)		—		—		—		—			—		—		—		—			—
Incipio, LLC (1,774 shares of Series C common units)		—		—		—		—			—		—		—		—			—
		18,385		—		1,404		—			595		—		—		(8,803	)		11,581

Luxury Optical Holdings Co.		3,457		—		—		—			—		—		—		(775	)		2,682
Luxury Optical Holdings Co.		620		—		—		—			—		—		—		(7	)		613
Luxury Optical Holdings Co. (Revolver)		159		—		—		—			—		—		—		(36	)		123
Luxury Optical Holdings Co. (86 shares of common stock)		—		—		—		—			—		—		—		—			—
		4,236		—		—		—			—		—		—		(818	)		3,418

Mnine Holdings, Inc.⁽¹⁾		—		10,321		—		—			964		7		—		857			12,149
Mnine Holdings, Inc. (6,400 Class B units)⁽¹⁾		—		—		—		—			—		—		—		—			—
		—		10,321		—		—			964		7		—		857			12,149

NECB Collections, LLC (Revolver)		1,148		—		112		—			39		—		—		—			1,299
NECB Collections LLC, LLC (20.8% of units)		318		—		—		—			—		—		—		(281	)		37
		1,466		—		112		—			39		—		—		(281	)		1,336

SHI Holdings, Inc.		2,459		—		—		—			—		—		—		(2,089	)		370
SHI Holdings, Inc. (Revolver)		3,601		—		345		—			—		—		—		(3,360	)		586
SHI Holdings, Inc. (24 shares of common stock)		—		—		—		—			—		—		—		—			—
		6,060		—		345		—			—		—		—		(5,449	)		956

Summit Container Corporation		2,971		—		—		—			—		—		—		125			3,096
Summit Container Corporation (Revolver)		5,406		—		14,732		(17,618	)		—		—		—		34			2,554
Summit Container Corporation (warrant to purchase up to 19.5% of the equity)		—		—		—		—			—		—		—		240			240
		8,377		—		14,732		(17,618	)		—		—		—		399			5,890
Total non-controlled affiliate company investments	$	59,860	$	10,321	$	28,719	$	(19,130	)	$	3,279	$	25	$	—	$	(13,609	)	$	69,465

Controlled affiliate company investments:
MRCC Senior Loan Fund I, LLC	$	42,412	$	—	$	—	$	—		$	—	$	—	$	—	$	(6,857	)	$	35,555
		42,412		—		—		—			—		—		—		(6,857	)		35,555
Total controlled affiliate company investments	$	42,412	$	—	$	—	$	—		$	—	$	—	$	—	$	(6,857	)	$	35,555

Portfolio Company	Fair value at December 31, 2018		Transfers in (out)		Purchases (cost)		Sales and paydowns (cost)			PIK interest (cost)		Discount accretion			Net realized gain (loss)		Net unrealized gain (loss)			Fair value at June 30, 2019
Non-controlled affiliate company investments:
American Community Homes, Inc.	$	6,596	$	—	$	—	$	—		$	505	$	15		$	—	$	(914	)	$	6,202
American Community Homes, Inc.		3,997		—		—		—			421		8			—		(582	)		3,844
American Community Homes, Inc.		499		—		—		—			39		1			—		(70	)		469
American Community Homes, Inc.		400		—		—		—			30		2			—		(56	)		376
American Community Homes, Inc.		215		—		—		—			23		1			—		(32	)		207
American Community Homes, Inc.		1,446		—		—		—			115		—			—		(198	)		1,363
American Community Homes, Inc.		—		—		3,333		—			89		—			—		(865	)		2,557
American Community Homes, Inc. (warrant to purchase up to 22.3% of the equity)		—		—		—		—			—		—			—		—			—
		13,153		—		3,333		—			1,222		27			—		(2,717	)		15,018

Curion Holdings, LLC		3,592		—		—		—			273		4			—		(267	)		3,602
Curion Holdings, LLC (Revolver)		244		—		77		—			17		—			—		(3	)		335
Curion Holdings, LLC (Junior secured loan)		—		—		—		—			—		—			—		—			—
Curion Holdings, LLC (Junior secured loan)		—		—		—		—			—		—			—		—			—
Curion Holdings, LLC (58,779 shares of common stock)		—		—		—		—			—		—			—		—			—
		3,836		—		77		—			290		4			—		(270	)		3,937

Incipio, LLC		12,830		—		—		—			—		28			—		83			12,941
Incipio, LLC		3,573		—		—		—			—		—			—		(5	)		3,568
Incipio, LLC		1,518		—		—		—			—		—			—		12			1,530
Incipio, LLC		—		—		656		—			—		—			—		(3	)		653
Incipio, LLC (Junior secured loan)		1,260		—		—		—			—		—			—		(460	)		800
Incipio, LLC (Junior secured loan)		—		—		—		—			—		—			—		—			—
Incipio, LLC (1,774 shares of Series C common units)		—		—		—		—			—		—			—		—			—
		19,181		—		656		—			—		28			—		(373	)		19,492

Luxury Optical Holdings Co.		4,334		—		—		—			255		10			—		(253	)		4,346
Luxury Optical Holdings Co. (Delayed Draw)		622		—		—		—			—		—			—		1			623
Luxury Optical Holdings Co. (Revolver)		200		—		—		—			11		—			—		(11	)		200
Luxury Optical Holdings Co. (86 shares of common stock)		—		—		—		—			—		—			—		—			—
		5,156		—		—		—			266		10			—		(263	)		5,169

Millennial Brands LLC (10 preferred units)		—		—		—		—			—		—			—		—			—
Millennial Brands LLC (75,502 common units)		—		—		—		—			—		—			—		—			—
		—		—		—		—			—		—			—		—			—

NECB Collections, LLC (Revolver) ⁽²⁾		—		—		150		—			—		—			—		—			150
NECB Collections, LLC (20.8% of units) ⁽²⁾		—		1,458		—		—			—		—			—		1,136			2,594
		—		1,458		150		—			—		—			—		1,136			2,744

SHI Holdings, Inc.		2,598		—		—		(14	)		139		4			—		(47	)		2,680
SHI Holdings, Inc. (Revolver)		3,342		—		137		—			185		(5	)		—		(51	)		3,608
SHI Holdings, Inc. (24 shares of common stock)		307		—		—		—			—		—			—		(205	)		102
		6,247		—		137		(14	)		324		(1	)		—		(303	)		6,390

Summit Container Corporation		3,034		—		—		—			—		—			—		(8	)		3,026
Summit Container Corporation (Revolver)		6,660		—		16,800		(18,145	)		—		—			—		(10	)		5,305
Summit Container Corporation (warrant to purchase up to 19.5% of the equity)		—		—		—		—			—		—			—		—			—
		9,694		—		16,800		(18,145	)		—		—			—		(18	)		8,331
Total non-controlled affiliate company investments	$	57,267	$	1,458	$	21,153	$	(18,159	)	$	2,102	$	68		$	—	$	(2,808	)	$	61,081

Controlled affiliate company investments:
MRCC Senior Loan Fund I, LLC	$	27,634	$	—	$	7,875	$	—		$	—	$	—		$	—	$	435		$	35,944
		27,634		—		7,875		—			—		—			—		435			35,944
Total controlled affiliate company investments	$	27,634	$	—	$	7,875	$	—		$	—	$	—		$	—	$	435		$	35,944

⁽¹⁾

The Company restructured its investment in Mnine Holdings, Inc. (“Mnine”) during the three months ended June 30, 2020. As a part of the restructuring, the Company also received 5.3% of the equity of Mnine. For the purpose of this schedule, transfers in represents the fair value at March 31, 2020.

⁽²⁾

During the three months ended June 30, 2019, the Company participated in a credit bid to acquire the assets of NECB Collections (“NECB”), which was a subsidiary of Education Corporation of America (“ECA”). As a result, the Company obtained a 20.8% equity stake in NECB in exchange for a $1,458 reduction of secured loan position in ECA. The Company also provided a follow-on revolver commitment to NECB.

	For the six months ended June 30,
	2020							2019
Portfolio Company	Interest Income			Dividend Income		Fee Income		Interest Income		Dividend Income		Fee Income
Non-controlled affiliate company investments:
American Community Homes, Inc.	$	535		$	—	$	—	$	517	$	—	$	—
American Community Homes, Inc.		474			—		—		427		—		—
American Community Homes, Inc.		135			—		—		40		—		—
American Community Homes, Inc.		33			—		—		32		—		—
American Community Homes, Inc.		26			—		—		24		—		—
American Community Homes, Inc.		173			—		—		94		—		—
American Community Homes, Inc.		299			—		—		92		—		—
American Community Homes, Inc.		4			—		—		—		—		—
American Community Homes, Inc.		13			—		—		—		—		—
American Community Homes, Inc. (Revolver)		72			—		—		—		—		—
American Community Homes, Inc. (Warrant)		—			—		—		—		—		—
		1,764			—		—		1,226		—		—

Ascent Midco, LLC		211			—		—		n/a		n/a		n/a
Ascent Midco, LLC (Delayed Draw)		6			—		—		n/a		n/a		n/a
Ascent Midco, LLC (Revolver)		14			—		—		n/a		n/a		n/a
Ascent Midco, LLC (Class A units)		—			66		—		n/a		n/a		n/a
		231			66		—		n/a		n/a		n/a

Curion Holdings, LLC		—			—		—		291		—		—
Curion Holdings, LLC (Revolver)		—			—		—		20		—		—
Curion Holdings, LLC (Junior secured loan)		—			—		—		—		—		—
Curion Holdings, LLC (Junior secured loan)		—			—		—		—		—		—
Curion Holdings, LLC (Common units)		—			—		—		—		—		—
		—			—		—		311		—		—

Incipio, LLC		(309	)		—		—		768		—		—
Incipio, LLC		197			—		—		196		—		—
Incipio, LLC		83			—		—		85		—		—
Incipio, LLC		35			—		—		15		—		—
Incipio, LLC		65			—		—		—		—		—
Incipio, LLC (Junior secured loan)		—			—		—		—		—		—
Incipio, LLC (Junior secured loan)		—			—		—		—		—		—
Incipio, LLC (Common units)		—			—		—		—		—		—
		71			—		—		1,064		—		—

Luxury Optical Holdings Co.		—			—		—		263		—		—
Luxury Optical Holdings Co.		41			—		—		44		—		—
Luxury Optical Holdings Co. (Revolver)		—			—		—		12		—		—
Luxury Optical Holdings Co. (Common stock)		—			—		—		—		—		—
		41			—		—		319		—		—

Millennial Brands LLC (Preferred units)		n/a			n/a		n/a		—		—		—
Millennial Brands LLC (Common units)		n/a			n/a		n/a		—		—		—
		n/a			n/a		n/a		—		—		—

Mnine Holdings, Inc.		299			—		—		n/a		n/a		n/a
Mnine Holdings, Inc. (Common units)		—			—		—		n/a		n/a		n/a
		299			—		—		n/a		n/a		n/a

NECB Collections, LLC (Revolver)		77			—		—		—		—		—
NECB Collections, LLC (LLC units)		—			—		—		—		—		—
		77			—		—		—		—		—

SHI Holdings, Inc.		(2	)		—		—		173		—		—
SHI Holdings, Inc. (Revolver)		(3	)		—		—		223		—		—
SHI Holdings, Inc. (Common stock)		—			—		—		—		—		—
		(5	)		—		—		396		—		—

Summit Container Corporation		154			—		—		172		—		—
Summit Container Corporation		—			—		—		—		—		—
Summit Container Corporation (Revolver)		217			—		—		304		—		—
Summit Container Corporation (Warrant)		—			—		—		—		—		—
		371			—		—		476		—		—

Total non-controlled affiliate company investments	$	2,849		$	66	$	—	$	3,792	$	—	$	—

Controlled affiliate company investments:
MRCC Senior Loan Fund I, LLC	$	—		$	2,050	$	—	$	—	$	1,645	$	—
		—			2,050		—		—		1,645		—
Total controlled affiliate company investments	$	—		$	2,050	$	—	$	—	$	1,645	$	—

Note 6. Transactions with Related Parties

The Company has entered into an investment advisory agreement with MC Advisors (the “Investment Advisory Agreement”), under which MC Advisors, subject to the overall supervision of the Board, provides investment advisory services to the Company. The Company pays MC Advisors a fee for its services under the Investment Advisory Agreement consisting of two components - a base management fee and an incentive fee. The cost of both the base management fee and the incentive fee are borne by the Company’s stockholders, unless such fees are waived by MC Advisors.

On November 4, 2019, the Board approved a change to the Investment Advisory Agreement to amend the base management fee structure. Effective July 1, 2019, the base management fee is calculated initially at an annual rate equal to 1.75% of average invested assets (calculated as total assets excluding cash, which includes assets financed using leverage); provided, however, the base management fee is calculated at an annual rate equal to 1.00% of the Company’s average invested assets (calculated as total assets excluding cash, which includes assets financed using leverage) that exceeds the product of (i) 200% and (ii) the Company’s average net assets. For the avoidance of doubt, the 200% is calculated in accordance with the asset coverage limitation as defined in the 1940 Act to give effect to the Company’s exemptive relief with respect to MRCC SBIC’s SBA debentures. This change has the effect of reducing the Company’s base management fee rate on assets in excess of regulatory leverage of 1:1 debt to equity to 1.00% per annum. The base management fee is payable quarterly in arrears.

Prior to July 1, 2019, the base management fee was calculated at an annual rate equal to 1.75% of average invested assets (calculated as total assets excluding cash, which included assets financed using leverage) and was payable quarterly in arrears.

Base management fees for the three and six months ended June 30, 2020 were $2,434 and $4,985, respectively. Base management fees for the three and six months ended June 30, 2019 were $2,723 and $5,244, respectively.

The incentive fee consists of two parts. The first part is calculated and payable quarterly in arrears and equals 20% of “pre-incentive fee net investment income” for the immediately preceding quarter, subject to a 2% (8% annualized) preferred return, or “hurdle,” and a “catch up” feature. The foregoing incentive fee is subject to a total return requirement, which provides that no incentive fee in respect of pre-incentive fee net investment income will be payable except to the extent that 20% of the cumulative net increase in net assets resulting from operations over the then current and 11 preceding calendar quarters exceeds the cumulative incentive fees accrued and/or paid for the 11 preceding calendar quarters (the “Incentive Fee Limitation”). Therefore, any ordinary income incentive fee that is payable in a calendar quarter will be limited to the lesser of (1) 20% of the amount by which pre-incentive fee net investment income for such calendar quarter exceeds the 2% hurdle, subject to the “catch-up” provision, and (2) (x) 20% of the cumulative net increase in net assets resulting from operations for the then current and 11 preceding calendar quarters minus (y) the cumulative incentive fees accrued and/or paid for the 11 preceding calendar quarters. For the foregoing purpose, the “cumulative net increase in net assets resulting from operations” is the sum of pre-incentive fee net investment income, realized gains and losses and unrealized gains and losses for the then current and 11 preceding calendar quarters. The second part of the incentive fee is determined and payable in arrears as of the end of each fiscal year in an amount equal to 20% of realized capital gains, if any, on a cumulative basis from inception through the end of the year, computed net of all realized capital losses on a cumulative basis and unrealized depreciation, less the aggregate amount of any previously paid capital gain incentive fees.

The composition of the Company’s incentive fees was as follows:

	Three months ended June 30,						Six months ended June 30,
	2020			2019			2020			2019
Part one incentive fees ⁽¹⁾	$	2,527		$	1,592		$	3,883		$	3,270
Part two incentive fees ⁽²⁾		—			—			—			—
Incentive Fee Limitation		(2,527	)		(424	)		(3,883	)		(502	)
Incentive fees, excluding the impact of the incentive fee waiver		—			1,168			—			2,768
Incentive fee waiver ⁽³⁾		—			(285	)		—			(566	)
Total incentive fees, net of incentive fee waiver	$	—		$	883		$	—		$	2,202

⁽¹⁾	Based on pre-incentive fee net investment income.
⁽²⁾	Based upon net realized and unrealized gains and losses, or capital gains. The Company accrues, but does not pay, a capital gains incentive fee in connection with any unrealized capital appreciation, as appropriate. If, on a cumulative basis, the sum of net realized gain (loss) plus net unrealized gain (loss) decreases during a period, the Company will reverse any excess capital gains incentive fee previously accrued such that the amount of capital gains incentive fee accrued is no more than 20% of the sum of net realized gain (loss) plus net unrealized gain (loss).
⁽³⁾	Represents part one incentive fees waived by MC Advisors.

The Company has entered into an administration agreement with MC Management (the “Administration Agreement”), under which the Company reimburses MC Management, subject to the review and approval of the Board, for its allocable portion of overhead and other expenses, including the costs of furnishing the Company with office facilities and equipment and providing clerical, bookkeeping, record-keeping and other administrative services at such facilities, and the Company’s allocable portion of the cost of the chief financial officer and chief compliance officer and their respective staffs. To the extent that MC Management outsources any of its functions, the Company will pay the fees associated with such functions on a direct basis, without incremental profit to MC Management. For the three and six months ended June 30, 2020, the Company incurred $850 and $1,634, respectively, in administrative expenses (included within Professional fees, Administrative service fees and General and administrative expenses on the consolidated statements of operations) under the Administration Agreement, of which $314 and $652, respectively, was related to MC Management overhead and salary allocation and paid directly to MC Management. For the three and six months ended June 30, 2019, the Company incurred $876 and $1,739, respectively, in administrative expenses (included within Professional fees, Administrative service fees and General and administrative expenses on the consolidated statements of operations) under the Administration Agreement, of which $319 and $666, respectively, was related to MC Management overhead and salary allocation and paid directly to MC Management. As of June 30, 2020 and December 31, 2019, $314 and $322, respectively, of expenses were due to MC Management under this agreement and are included in accounts payable and accrued expenses on the consolidated statements of assets and liabilities.

The Company has entered into a license agreement with Monroe Capital LLC under which Monroe Capital LLC has agreed to grant the Company a non-exclusive, royalty-free license to use the name “Monroe Capital” for specified purposes in its business. Under this agreement, the Company has the right to use the “Monroe Capital” name at no cost, subject to certain conditions, for so long as MC Advisors or one of its affiliates remains its investment adviser. Other than with respect to this limited license, the Company has no legal right to the “Monroe Capital” name or logo.

As of both June 30, 2020 and December 31, 2019, the Company had accounts payable to members of the Board of zero, representing accrued and unpaid fees for their services.

Note 7. Borrowings

In accordance with the 1940 Act, the Company is permitted to borrow amounts such that its asset coverage ratio, as defined in the 1940 Act, is at least 150% after such borrowing. As of June 30, 2020 and December 31, 2019, the Company’s asset coverage ratio based on aggregate borrowings outstanding was 187% and 183%, respectively.

Revolving Credit Facility: The Company has a $255,000 revolving credit facility with ING Capital LLC, as agent. The revolving credit facility has an accordion feature which permits the Company, under certain circumstances to increase the size of the facility up to $400,000 (subject to maintaining 150% asset coverage, as defined by the 1940 Act). The revolving credit facility is secured by a lien on all of the Company’s assets, including cash on hand, but excluding the assets of the Company’s wholly-owned subsidiary, MRCC SBIC. The Company may make draws under the revolving credit facility to make or purchase additional investments through March 1, 2023 and for general working capital purposes until March 1, 2024, the maturity date of the revolving credit facility.

On May 21, 2020, the Company amended and restated its revolving credit facility (the “Amended Credit Agreement”) with ING Capital LLC, as agent. The amendment provided certain relief during a temporary COVID-19 relief period of up to 9 months, including expanded borrowing base capacity, flexibility within the asset coverage ratio definition to utilize an expanded base of assets to determine compliance and flexibility to utilize SEC COVID-19 relief for the calculation thereof. Additionally, the Amended Credit Agreement provided for certain permanent amendments, including elimination of the liquidity covenant, reduction of the net worth requirement from $125,000 to $110,000, and lowering the minimum consolidated total net assets from at least equal to $175,000 plus 65% of the net proceeds from sales of the Company’s equity securities to at least equal to $150,000 plus 65% of the net proceeds from sales of the Company’s equity securities. The Amended Credit Agreement also set out certain temporary restrictions, including limiting additional indebtedness and additional investments, setting additional parameters which may cap the total amount of cash dividends payable during the temporary COVID-19 relief period and requiring certain mandatory prepayments after the receipt of proceeds from the issuances of equity or debt. As conditions of the Amended Credit Agreement, the Company agreed to certain pricing considerations, including an increase in the interest rate margins (a) for LIBOR loans (which may be one-, three- or six-month, at the Company’s option), from 2.375% to 2.625% and (b) for alternate base rate loans, from 1.375% to 1.625%. The other significant terms of the credit facility remained unchanged. The Company incurred expenses of $939 in conjunction with the amendment which have been capitalized within unamortized deferred financing costs and are amortized into interest expense over the estimated average life of the borrowings.

The Company’s ability to borrow under the revolving credit facility is subject to availability under the borrowing base, which after the temporary COVID-19 relief period permits the Company to borrow up to 72.5% of the fair market value of its portfolio company investments depending on the type of investment the Company holds and whether the investment is quoted. The Company’s ability to borrow is also subject to certain concentration limits, and continued compliance with the representations, warranties and covenants given by the Company under the facility. The revolving credit facility contains certain financial and restrictive covenants, including, but not limited to, the Company’s maintenance of: (1) minimum consolidated total net assets at least equal to $150,000 plus 65% of the net proceeds to the Company from sales of its equity securities after March 1, 2019; (2) a ratio of total assets (less total liabilities other than indebtedness) to total indebtedness of not less than 1.5 to 1; and (3) a senior debt coverage ratio of at least 2 to 1. The revolving credit facility also requires the Company to undertake customary indemnification obligations with respect to ING Capital LLC and other members of the lending group and to reimburse the lenders for expenses associated with entering into the credit facility. The revolving credit facility also has customary provisions regarding events of default, including events of default for nonpayment, change in control transactions at both Monroe Capital Corporation and MC Advisors, failure to comply with financial and negative covenants, and failure to maintain the Company’s relationship with MC Advisors. If the Company incurs an event of default under the revolving credit facility and fails to remedy such default under any applicable grace period, if any, then the entire revolving credit facility could become immediately due and payable, which would materially and adversely affect the Company’s liquidity, financial condition, results of operations and cash flows.

The Company’s revolving credit facility also imposes certain conditions that may limit the amount of the Company’s distributions to stockholders. Distributions payable in the Company’s common stock under the DRIP are not limited by the revolving credit facility. Distributions in cash or property other than common stock through the end of the COVID-19 relief period are limited to $9,000 or such higher amount needed to comply with RIC tests. After the end of the COVID 19 relief period, distributions in cash or property other than common stock are generally limited to 115% of the amount of distributions required to maintain the Company’s status as a RIC.

As of June 30, 2020, the Company had U.S. dollar borrowings of $126,050 and non-U.S. dollar borrowings denominated in Great Britain pounds of £16,100 ($19,966 in U.S. dollars) under the revolving credit facility. As of December 31, 2019, the Company had U.S. dollar borrowings of $158,950 and non-U.S. dollar borrowings denominated in Great Britain pounds of £16,100 ($21,344 in U.S. dollars) under the revolving credit facility. The borrowings denominated in Great Britain pounds may be positively or negatively affected by movements in the rate of exchange between the U.S. dollar and the Great Britain pound. These movements are beyond the control of the Company and cannot be predicted. The borrowings denominated in Great Britain pounds are translated into U.S. dollars based on the spot rate at each balance sheet date. The impact resulting from changes in foreign currency borrowings is included in net change in unrealized gain (loss) on foreign currency and other transactions on the Company’s consolidated statements of operations and totaled $30 and $1,378 for the three and six months ended June 30, 2020, and $502 and $86 for the three and six months ended June 30, 2019, respectively.

Borrowings under the revolving credit facility bear interest, at the Company’s election, at an annual rate of LIBOR (one-month, three-month or six-month at the Company’s discretion based on the term of the borrowing) plus 2.625% or at a daily rate equal to 1.625% per annum plus the greater of the prime interest rate, the federal funds rate plus 0.5% or LIBOR plus 1.0%, with a LIBOR floor of 0.5%. In addition to the stated interest rate on borrowings under the revolving credit facility, the Company is required to pay a commitment fee and certain conditional fees based on usage of the expanded borrowing base and usage of the asset coverage ratio flexibility. A commitment fee of 0.5% per annum on any unused portion of the revolving credit facility if the unused portion of the facility is less than 35% of the then available maximum borrowing or a commitment fee of 1.0% per annum on any unused portion of the revolving credit facility if the unused portion of the facility is greater than or equal to 35% of the then available maximum borrowing. As of June 30, 2020 and December 31, 2019, the outstanding borrowings were accruing at a weighted average interest rate of 3.1% and 4.0%, respectively.

2023 Notes: The Company has issued $109,000 in aggregate principal amount of senior unsecured notes that mature on October 31, 2023. Interest on the 2023 Notes is paid quarterly on January 31, April 30, July 31, and October 31, at an annual rate of 5.75%. The Company may redeem the 2023 Notes in whole or in part at any time or from time to time on or after October 31, 2020. The 2023 Notes are general, unsecured obligations and rank equal in right of payment with all of the Company’s existing and future unsecured indebtedness. The 2023 Notes are listed on The Nasdaq Global Select Market under the trading symbol MRCCL.

SBA Debentures: On February 28, 2014, the Company’s wholly-owned subsidiary, MRCC SBIC received a license from the SBA to operate as a SBIC under Section 301(c) of the Small Business Investment Act of 1958, as amended. MRCC SBIC commenced operations on September 16, 2013.

The SBIC license allows MRCC SBIC to obtain leverage by issuing SBA debentures, subject to the issuance of a leverage commitment by the SBA and other customary procedures. SBA debentures are non-recourse, interest only debentures with interest payable semi-annually and have a 10-year maturity. The principal amount of SBA debentures is not required to be paid prior to maturity but may be prepaid at any time without penalty. The interest rate of SBA debentures is fixed on a semi-annual basis (pooling date) at a market-driven spread over U.S. Treasury Notes with 10-year maturities. The SBA, as a creditor, has a superior claim to MRCC SBIC’s assets over the Company’s stockholders in the event the Company liquidates MRCC SBIC, or the SBA exercises its remedies upon an event of default. As of June 30, 2020, MRCC SBIC had $13,393 in cash and $141,485 in investments at fair value. As of December 31, 2019, MRCC SBIC had $27,409 in cash and $133,982 in investments at fair value.

SBA regulations currently limit the amount that an individual SBIC may borrow to a maximum of $175,000 when it has at least $87,500 in regulatory capital, receives a leverage commitment from the SBA and has been through an audit examination by the SBA subsequent to licensing. The SBA also limits a related group of SBICs (commonly referred to as a “family of funds”) to a maximum of $350,000 in total borrowings.

As of both June 30, 2020 and December 31, 2019, MRCC SBIC had $57,624 in leverageable capital and the following SBA debentures outstanding:

Maturity Date	Interest Rate			Amount
September 2024		3.4	%	$	12,920
March 2025		3.3	%		14,800
March 2025		2.9	%		7,080
September 2025		3.6	%		5,200
March 2027		3.5	%		20,000
September 2027		3.2	%		32,100
March 2028		3.9	%		18,520
September 2028		4.2	%		4,380
Total				$	115,000

The Company has been granted exemptive relief from the SEC for permission to exclude the debt of MRCC SBIC guaranteed by the SBA from the asset coverage test under the 1940 Act. The receipt of this exemption for this SBA debt increases flexibility under the asset coverage test.

Components of interest expense: The components of the Company’s interest expense and other debt financing expenses, average outstanding balances and average stated interest rates (i.e. the rate in effect plus spread) were as follows:

	Three months ended June 30,
	2020			2019
Interest expense - revolving credit facility	$	1,488		$	2,092
Interest expense - 2023 Notes		1,567			1,566
Interest expense - SBA debentures		980			981
Amortization of deferred financing costs		520			468
Total interest and other debt financing expenses	$	4,555		$	5,107
Average outstanding balance	$	402,279		$	390,293
Average stated interest rate		4.0	%		4.7	%

	Six months ended June 30,
	2020			2019
Interest expense - revolving credit facility	$	3,286		$	3,987
Interest expense - 2023 Notes		3,134			2,622
Interest expense - SBA debentures		1,961			1,951
Amortization of deferred financing costs		1,004			901
Total interest and other debt financing expenses	$	9,385		$	9,461
Average outstanding balance	$	401,366		$	364,659
Average stated interest rate		4.2	%		4.7	%

Note 8. Derivative Instruments

The Company enters into foreign currency forward contracts from time to time to help mitigate the impact that an adverse change in foreign exchange rates would have on future interest cash flows from the Company’s investments denominated in foreign currencies. As of June 30, 2020 and December 31, 2019, the counterparty to these foreign currency forward contracts was Bannockburn Global Forex, LLC. Net unrealized gain or loss on foreign currency forward contracts are included in net change in unrealized gain (loss) on foreign currency forward contracts and net realized gain or loss on forward currency forward contracts are included in net realized gain (loss) on foreign currency forward contracts on the accompanying consolidated statements of operations.

Certain information related to the Company’s foreign currency forward contracts is presented below as of June 30, 2020 and December 31, 2019.

	As of June 30, 2020
	Notional Amount to be Sold		Settlement Date	Gross Amount of Unrealized Gain		Gross Amount of Unrealized Loss			Balance Sheet location of Net Amounts
Foreign currency forward contract	£	88	7/3/2020	$	—	$	(1	)	Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	£	230	8/28/2020		10		—		Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	£	28	9/3/2020		1		—		Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	£	88	10/2/2020		—		(1	)	Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	£	229	11/30/2020		10		—		Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	£	26	12/2/2020		1		—		Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	£	87	1/4/2021		—		(1	)	Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	£	84	4/2/2021		—		(1	)	Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	£	83	7/2/2021		—		(1	)	Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	£	83	10/4/2021		—		(1	)	Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	£	82	1/3/2022		—		(1	)	Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	£	79	4/4/2022		—		—		Unrealized gain on foreign currency forward contracts
Foreign currency forward contract	£	29	5/6/2022		—		—		Unrealized gain on foreign currency forward contracts
Total	£	1,216		$	22	$	(7	)

	As of December 31, 2019
	Notional Amount to be Sold		Settlement Date	Gross Amount of Unrealized Gain		Gross Amount of Unrealized Loss			Balance Sheet location of Net Amounts
Foreign currency forward contract	£	104	1/2/2020	$	—	$	(5	)	Unrealized loss on foreign currency forward contracts
Foreign currency forward contract	£	231	2/28/2020		—		(10	)	Unrealized loss on foreign currency forward contracts
Foreign currency forward contract	£	27	3/2/2020		—		(1	)	Unrealized loss on foreign currency forward contracts
Foreign currency forward contract	£	103	4/1/2020		—		(5	)	Unrealized loss on foreign currency forward contracts
Foreign currency forward contract	£	102	5/5/2020		—		(4	)	Unrealized loss on foreign currency forward contracts
Foreign currency forward contract	£	230	5/29/2020		—		(10	)	Unrealized loss on foreign currency forward contracts
Foreign currency forward contract	£	27	6/1/2020		—		(1	)	Unrealized loss on foreign currency forward contracts
Foreign currency forward contract	£	230	8/28/2020		—		(10	)	Unrealized loss on foreign currency forward contracts
Foreign currency forward contract	£	28	9/3/2020		—		(2	)	Unrealized loss on foreign currency forward contracts
Foreign currency forward contract	£	229	11/30/2020		—		(10	)	Unrealized loss on foreign currency forward contracts
Foreign currency forward contract	£	26	12/2/2020		—		(1	)	Unrealized loss on foreign currency forward contracts
Total	£	1,337		$	—	$	(59	)

For the three and six months ended June 30, 2020, the Company recognized net change in unrealized gain (loss) on foreign currency forward contracts of ($24) and $74, respectively. For the three and six months ended June 30, 2020, the Company recognized net realized gain (loss) on foreign currency forward contracts of $22 and $18, respectively.

For the three and six months ended June 30, 2019, the Company recognized net change in unrealized gain (loss) on foreign currency forward contracts of $72 and $7, respectively. For the three and six months ended June 30, 2019, the Company recognized net realized gain (loss) on foreign currency forward contracts of $2 and ($6), respectively.

Note 9. Distributions

The Company’s distributions are recorded on the record date. The following table summarizes distributions declared during the six months ended June 30, 2020 and 2019:

Date Declared	Record Date	Payment Date	Amount Per Share		Cash Distribution		DRIP Shares Issued		DRIP Shares Value		DRIP Shares Repurchased in the Open Market		Cost of DRIP Shares Repurchased
Six months ended June 30, 2020:
March 3, 2020	March 16, 2020	March 31, 2020	$	0.35	$	7,155		—	$	—		55,938	$	374
May 8, 2020	June 15, 2020	June 30, 2020		0.25		5,257		—

MONROE CAPITAL Corp - FORM 10-Q - August 5, 2020

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