Apollo has cut the dividend and marked down the value of the portfolio of one of its private credit funds, citing strain in parts of its loan book as interest rate dynamics shift, according to a report by Bloomberg.
MidCap Financial Investment Corp, a business development company focused on direct lending, lowered its quarterly payout to $0.31 a share from $0.38 and wrote down its portfolio by around 3%.
It pointed to weakness in a small number of older investments and a reassessment of long-term earnings power. Net investment income rose to $0.39 a share from $0.38 in the prior quarter.
The lender also authorised a new $100m share buyback programme, arguing that repurchases are more accretive than deploying capital into new investments at current valuations.
In Q4 MFIC placed investments in Bird Rides, Banner Solutions and Renovo on non-accrual status. The fund reported around $29m of net unrealised losses for the year, linked to restructuring activity and valuation declines, alongside approximately $47m of net realised losses on investments.
