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1. A "private credit" version of a private equity firm. Think of it like a **Blackstone** or **KKR**, but specialized in providing debt financing (loans) to mid-sized private companies rather than acquiring them outright.

2. A specialized commercial bank for growth-oriented private businesses. It's like a **JPMorgan Chase** or **Wells Fargo**, but exclusively focused on providing more flexible, specialized loans to mid-sized private businesses that often can't access traditional bank financing.

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Monroe Capital (MRCC) - Major Products/Services

• Senior Secured Loans: Providing direct debt financing to middle-market companies, often secured by the borrower's assets and ranking highest in repayment priority.
• Unitranche Loans: Offering a flexible, single debt facility that blends both senior and junior debt characteristics for companies seeking streamlined financing.
• Mezzanine Debt: Supplying subordinated debt, often unsecured, that typically includes equity-like features such as warrants or conversion rights.
• Equity Co-Investments: Making minority equity investments in private companies, typically alongside their debt financing, to participate in potential upside.

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Monroe Capital (MRCC) Major Customers

Monroe Capital (MRCC) operates as a Business Development Company (BDC) and primarily provides financing solutions, including senior secured loans, junior secured loans, and equity co-investments, to other companies.

Due to its business model, MRCC does not have "major customers" in the traditional sense, where a few entities account for a significant portion of its revenue. Instead, MRCC invests in a highly diversified portfolio of debt and equity securities across a large number of private middle-market companies.

These portfolio companies are typically described as middle-market businesses with annual revenues generally ranging between $20 million and $500 million. MRCC's revenue is primarily generated from interest income, fees, and, to a lesser extent, capital appreciation from its investments across this broad base of borrowers.

Given the diversified nature of its investment portfolio and its focus on private companies, there are no specific public companies that qualify as major customers, nor are there individual portfolio companies that represent a concentration significant enough to be classified as a "major customer" to be listed.

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Theodore L. Koenig
Chairman & Chief Executive Officer

Theodore L. Koenig is the Chairman and CEO and founder of Monroe Capital LLC, established in 2004. He also serves as the Chairman, President, and CEO of Monroe Capital Corporation (NASDAQ: MRCC). Prior to founding Monroe Capital, Mr. Koenig was the President and CEO of Hilco Capital LP, a junior secured/mezzanine debt fund, from 2000 to 2004. Before that, he spent 13 years as a partner and co-chair of the corporate law, mergers and acquisitions, and business finance groups at the Chicago-based law firm Holleb & Coff. Mr. Koenig has over 30 years of experience in structuring and investing in debt and equity transactions and has developed longstanding relationships with middle market bankers and private equity firms.

Lewis W. Solimene Jr.
Chief Financial Officer, Principal Accounting Officer, Chief Investment Officer and Corporate Secretary

Lewis W. Solimene Jr. serves as the Chief Financial Officer, Principal Accounting Officer, Chief Investment Officer, and Corporate Secretary of Monroe Capital Corporation (MRCC). He joined Monroe Capital LLC as a Managing Director and Portfolio Manager in July 2021 and assumed his current roles with MRCC in January 2022. Prior to joining Monroe Capital LLC, Mr. Solimene was a Managing Director and Head of Opportunistic Investments for Allstate Investments, LLC from 2016 to 2021, where he managed a portfolio strategy focused on deploying debt and equity capital in dislocated markets, out-of-favor sectors, and special situations.

Zia Uddin
President

Zia Uddin is the President of Monroe Capital LLC and a Partner and Co-Portfolio Manager for the firm's Institutional Portfolios. He joined Monroe Capital in 2007 and is a member of Monroe's Investment Committee. Mr. Uddin has over 30 years of experience in management consulting, corporate finance, private equity, turnaround, and investing. Prior to joining Monroe, he was a Partner and Principal with two middle market private equity funds. He has also held numerous operating roles at middle market companies and served on the boards of various public and private companies.

Aaron Peck
Managing Director, Co-Portfolio Manager and Co-Head of Alternative Credit Solutions

Aaron Peck is a Managing Director, Co-Portfolio Manager, and Co-Head of Monroe Capital's Alternative Credit Solutions, and also a Portfolio Manager for Monroe's retail and high-net-worth investment funds. He joined Monroe Capital in 2012 and is a member of the firm's Investment Committee. Mr. Peck has over 30 years of experience in credit, lending, high yield, and distressed credit. Previously, he was Co-Chief Investment Officer at Deerfield Capital Management, where he oversaw investment teams managing over $10 billion in assets and was the chief portfolio manager for Deerfield's publicly-traded specialty finance mortgage REIT. His prior experience also includes leveraged credit roles at firms such as AEG Investors, Black Diamond Capital, Salomon Smith Barney (Citibank), and ESL Investments.

Michael Egan
Vice Chairman & Chief Credit Officer

Michael Egan is the Vice Chairman and Chief Credit Officer of Monroe Capital and a Co-Founder of the firm. He is responsible for credit policies and procedures, as well as portfolio and asset management operations, and is a member of Monroe's Investment Committee. Mr. Egan brings over 40 years of experience in commercial finance, credit administration, banking, and distressed investing. Before joining Monroe, he was Executive Vice President and Chief Credit Officer of Hilco Capital from 1999 to 2004. He also spent ten years at The CIT Group/Business Credit, Inc. as Senior Vice President and Regional Manager for the Midwest U.S. Region.

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1. Deteriorating Financial Fundamentals and Dividend Unsustainability: Monroe Capital faces challenges with its financial health, marked by a low margin of safety in dividend coverage, where Net Investment Income (NII) often falls short of the dividends paid. This shortfall has led to the depletion of spillover income, which is used to bridge the gap. The company has also experienced a decline in its Net Asset Value (NAV) due to unrealized losses on investments and dividends exceeding NII. Further contributing to this risk are negative earnings per share and net margins, alongside shrinking total investment income from factors such as reduced weighted average effective yield, decreased invested assets, and lower dividend income.
2. High Leverage and Deteriorating Portfolio Quality: Monroe Capital maintains one of the highest leverage profiles among Business Development Companies (BDCs), with a significant debt-to-equity ratio that has been increasing. This high leverage is coupled with clear signs of deteriorating portfolio quality, including unrealized losses on investments and a rise in non-accrual investments. Notably, the Senior Loan Fund (SLF) has experienced unrealized losses due to widening credit spreads and worsening loan performance.
3. Uncertainty Related to Pending Merger: The announced merger with Horizon Technology Finance Corporation, anticipated to close in the first quarter of 2026, introduces uncertainty regarding Monroe Capital's future stability and revenue generation. This strategic move could lead to a significant reduction in the company's asset ownership and potentially impact its market position and long-term viability.

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Monroe Capital (MRCC) primarily operates in the private credit and direct lending markets, focusing on providing financing solutions to middle-market companies in the U.S. and Canada.

The addressable market sizes for their main products and services are as follows:

• Global Private Credit Market: The global private credit market reached approximately $3.0 trillion by 2025. This market is estimated to grow to about $5 trillion by 2029.
• U.S. Private Credit Market: The U.S. private credit market accounts for a significant portion of the global market, estimated to be around $1.1 trillion to $1.25 trillion. McKinsey's analysis suggests the broader addressable market for private credit in the United States alone could exceed $30 trillion.
• Global Direct Lending Market: Direct lending is a dominant segment within private credit, representing approximately 50% of the private credit assets under management in 2025, equating to roughly $1.5 trillion globally.
• U.S. Middle Market: Monroe Capital specifically targets the middle market. The U.S. middle market is a substantial segment, estimated by some to be $4 trillion in size. This market comprises nearly 200,000 companies, with 90% in the lower middle market (generating annual revenues between $10 million and $150 million).

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Monroe Capital (MRCC) anticipates several key drivers for its future revenue growth over the next two to three years:

1. Merger with Horizon Technology Finance Corporation: The company expects its merger with Horizon Technology Finance Corporation to close in the first quarter of 2026. This merger is projected to unlock value for shareholders through synergies and operating leverage, contributing to future revenue.
2. Continued Focus on the Lower Middle-Market and Independent Sponsors: Monroe Capital specializes in providing customized financing solutions, including senior, unitranche, and junior secured debt, as well as equity co-investments, primarily to lower middle-market companies with EBITDA between $3 million and $35 million. The firm views the lower middle market, especially through independent sponsors, as a "high-opportunity" area and aims to strengthen relationships with advisors to enhance deal flow.
3. Strategic Partnerships and Investments: Monroe Capital's management has reiterated its commitment to generating shareholder value through strategic partnerships and investments. A notable example is its partnership agreement with Wendel, which includes an $800 million sponsoring program designed to accelerate Monroe Capital's growth.
4. Optimization and Expansion of Diversified Private Credit Solutions: As a diversified private credit solutions provider with numerous investment vehicles and significant assets under management, Monroe Capital's revenue growth will be driven by the effective management and potential expansion of its existing platform. This includes leveraging its origination capabilities across its various debt and equity offerings to deploy capital efficiently and grow its investment portfolio.

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Share Repurchases

• No significant share repurchase activity for Monroe Capital Corporation (MRCC) was identified in the period of 2020-2025.

Share Issuance

• In 2021, MRCC sold 362,800 shares through its at-the-market (ATM) program, generating net proceeds of approximately $4.1 million.
• There were no stock issuances through the ATM program during 2022 and 2023.
• MRCC operates a dividend reinvestment plan (DRIP) allowing stockholders to automatically reinvest cash distributions into additional shares of the company's common stock.
• In June 2023, stockholders approved the ability to issue common stock below net asset value per share for a twelve-month period under certain conditions.

Inbound Investments

• Monroe Capital Income Plus Corporation (MCIP), a privately offered BDC affiliated with Monroe Capital, has agreed to acquire substantially all of MRCC's assets at fair value for cash immediately prior to MRCC's merger into Horizon Technology Finance Corporation (HRZN).
• This asset sale is a crucial step before MRCC merges with HRZN, a transaction expected to close in Q4 2025 or Q1 2026.

Outbound Investments

• MRCC is a joint venture partner in the MRCC Senior Loan Fund I, LLC (SLF) with Life Insurance Company of the Southwest (LSW), with both committing $50.0 million in capital to the venture.
• As of June 30, 2025, MRCC had made net capital contributions of $42.7 million to SLF. As of September 30, 2025, these net capital contributions were $42.1 million.
• The company, along with LSW, initiated the wind-down of SLF in Q3 2025, including actively selling underlying investments in the portfolio, in anticipation of the merger with HRZN.