Climate Change Data

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and associated economic shutdown presented unexpected challenges to many portfolio companies, some more vulnerable than others.
• Significant adverse impact on the aviation sector due to the coronavirus.
• Increase in requests for covenant amendments and additional support from portfolio companies.

Mitigation Strategies

• Closely working with sponsor clients and portfolio companies.
• Established processes to address problems as they arose.
• Utilizing in-house restructuring and workout capabilities.
• Leveraging the well-capitalized MidCap and SEC's temporary co-investment relief to support existing borrowers.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• rapid increase in inflation
• sudden tightening of monetary policy
• ongoing supply chain disruptions
• heightened geopolitical tensions
• challenges facing companies today, including elevated inflation and the significant and rapid increase in interest rates

Mitigation Strategies

• MFIC’s corporate lending portfolio is constructed to perform across market environments
• Our approach to credit underwriting, asset selection, and portfolio construction contemplates the potential for economic weakness
• monitoring and communicating with our portfolio companies and sponsors
• MFIC benefits from MidCap Financial’s large, dedicated portfolio management team of nearly 60 investment professionals who help identify and address issues early

Supply Chain Management

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used:

Certifications:

UN Sustainable Development Goals

• Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• heightened volatility in the financial markets due to uncertainty stemming from the regional banking crisis
• ongoing concerns about inflation, higher interest rates and fears about a recession
• slow activity driven by lower M&A activity
• challenges in the banking industry, which could accelerate the growth of the direct lending market in 2024

Mitigation Strategies

• continued to improve the risk profile of our portfolio by deploying capital into first lien corporate loans and de-risking our portfolio by monetizing some of our second lien exposure and reducing our investment in Merx Aviation LLC
• made several enhancements to our liability structure (extending the final maturity date of our Senior Secured Revolving Credit Facility, closing on MFIC’s inaugural Collateralized Loan Obligation transaction, pre-funding a portion of our debt maturing in 2025)

Supply Chain Management

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used:

Certifications:

UN Sustainable Development Goals

• Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed