Feb. 27 at 5:15 AM
PickAlpha Midday:
Apollo-managed MidCap Financial Investment Corp. (MFIC) just gave the private-credit market a clean reality check: it cut the quarterly dividend to
$0.31 from
$0.38, reported NAV of
$14.18 (down about 3.3% q/q), and authorized a
$100M buyback after the stock traded around
$10.53, or roughly a 26% discount to NAV. NII was
$0.39/share, so this wasn’t a cash-flow collapse — it was management resetting for lower long-run earnings power and weaker marks. 
Tickers:
$MFIC $APO
Our view is this is what “private credit is fine” starts to look like when it isn’t. When a BDC cuts the dividend, marks down the book, and says buybacks are better than new loans, that’s not offense — that’s defense. If more funds start choosing repurchases over deployment, the market will assume the problem is bigger than one portfolio.
