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 March
31, 2018



OR



| |  ̈ | 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)



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 and posted on its corporate Web site, if any, every Interactive Data File required to be submitted
and posted 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 and post 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. (check one):



|Large accelerated filer |  ̈                                                  | Accelerated filer         | x
|----------------------- | -------------------------------------------------- | ------------------------- | -
|                        |                                                    |                           |  
|Non-accelerated filer   |  ̈(Do
    not check if a smaller reporting company) | 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 May 7, 2018, the registrant had
20,239,957 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 March 31, 2018 (unaudited) and December 31, 2017                    | 3   
|                                  |                                                                                                                                 |     
|                                  | Consolidated Statements of
    Operations for the three months ended March 31, 2018 (unaudited) and 2017 (unaudited)            | 4   
|                                  |                                                                                                                                 |     
|                                  | Consolidated Statements of
    Changes in Net Assets for the three months ended March 31, 2018 (unaudited) and 2017 (unaudited) | 5   
|                                  |                                                                                                                                 |     
|                                  | Consolidated Statements of
    Cash Flows for the three months ended March 31, 2018 (unaudited) and 2017 (unaudited)            | 6   
|                                  |                                                                                                                                 |     
|                                  | Consolidated Schedules of
    Investments as of March 31, 2018 (unaudited) and December 31, 2017                                | 7   
|                                  |                                                                                                                                 |     
|                                  | Notes to Consolidated Financial
    Statements (unaudited)                                                                      | 23  
|                                  |                                                                                                                                 |     
|Item 2.                           | Management’s Discussion
    and Analysis of Financial Condition and Results of Operations                                       | 47  
|                                  |                                                                                                                                 |     
|Item 3.                           | Quantitative and Qualitative
    Disclosures About Market Risk                                                                  | 65  
|                                  |                                                                                                                                 |     
|Item 4.                           | Controls and Procedures                                                                                                         | 65  
|                                  |                                                                                                                                 |     
|PART II. OTHER
    INFORMATION    | 66                                                                                                                             
|                                  |                                                                                                                                 |     
|Item 1.                           | Legal Proceedings                                                                                                               | 66  
|                                  |                                                                                                                                 |     
|Item 1A.                          | Risk Factors                                                                                                                    | 66  
|                                  |                                                                                                                                 |     
|Item 2.                           | Unregistered Sales of Equity
    Securities and Use of Proceeds                                                                 | 66  
|                                  |                                                                                                                                 |     
|Item 3.                           | Defaults Upon Senior Securities                                                                                                 | 66  
|                                  |                                                                                                                                 |     
|Item 4.                           | Mine Safety Disclosures                                                                                                         | 66  
|                                  |                                                                                                                                 |     
|Item 5.                           | Other Information                                                                                                               | 66  
|                                  |                                                                                                                                 |     
|Item 6.                           | Exhibits                                                                                                                        | 67  
|                                  |                                                                                                                                 |     
|Signatures                        |                                                                                                                                 | 68  



2







Part I. Financial Information

Item 1. Consolidated Financial Statements



MONROE CAPITAL CORPORATION



CONSOLIDATED STATEMENTS OF ASSETS AND
LIABILITIES

(in thousands, except per share data)



|                                                                                                                             |  | March 31, 2018 |         |   | December 31, 2017 |  
|---------------------------------------------------------------------------------------------------------------------------- |  | -------------- | ------- | - | ----------------- | -
|                                                                                                                             |  | (unaudited)    |         |   |                   |  
|ASSETS                                                                                                                       |  |                |         |   |                   |  
|Investments, at fair value:                                                                                                  |  |                |         |   |                   |  
|Non-controlled/non-affiliate company investments                                                                             |  | $              | 426,058 |   |                   | $
|Non-controlled affiliate company investments                                                                                 |  |                | 53,643  |   |                   |  
|Controlled affiliate company
    investments                                                                                 |  |                | 16,333  |   |                   |  
|Total investments, at fair value (amortized cost of:
    $516,121 and $507,580, respectively)                                |  |                | 496,034 |   |                   |  
|Cash                                                                                                                         |  |                | 3,070   |   |                   |  
|Restricted cash                                                                                                              |  |                | 7,117   |   |                   |  
|Interest receivable                                                                                                          |  |                | 5,756   |   |                   |  
|Other assets                                                                                                                 |  |                | 727     |   |                   |  
|Total assets                                                                                                                 |  |                | 512,704 |   |                   |  
|                                                                                                                             |  |                |         |   |                   |  
|LIABILITIES                                                                                                                  |  |                |         |   |                   |  
|Debt:                                                                                                                        |  |                |         |   |                   |  
|Revolving credit facility                                                                                                    |  |                | 125,584 |   |                   |  
|SBA debentures payable                                                                                                       |  |                | 112,800 |   |                   |  
|Total debt                                                                                                                   |  |                | 238,384 |   |                   |  
|Less: Unamortized deferred financing
    costs                                                                               |  |                | (4,468  | ) |                   |  
|Total debt, less unamortized deferred financing costs                                                                        |  |                | 233,916 |   |                   |  
|Interest payable                                                                                                             |  |                | 795     |   |                   |  
|Management fees payable                                                                                                      |  |                | 2,163   |   |                   |  
|Incentive fees payable                                                                                                       |  |                | 761     |   |                   |  
|Directors' fees payable                                                                                                      |  |                | 37      |   |                   |  
|Accounts payable and accrued expenses                                                                                        |  |                | 2,027   |   |                   |  
|Total liabilities                                                                                                            |  |                | 239,699 |   |                   |  
|Net assets                                                                                                                   |  | $              | 273,005 |   |                   | $
|                                                                                                                             |  |                |         |   |                   |  
|Commitments and contingencies (See
    Note 10)                                                                              |  |                |         |   |                   |  
|                                                                                                                             |  |                |         |   |                   |  
|ANALYSIS OF NET ASSETS                                                                                                       |  |                |         |   |                   |  
|Common stock, $0.001 par value, 100,000 shares authorized,
    20,240 and 20,240 shares issued and outstanding, respectively |  | $              | 20      |   |                   | $
|Capital in excess of par value                                                                                               |  |                | 286,141 |   |                   |  
|Undistributed net investment income (accumulated distributions
    in excess of net investment income)                       |  |                | 8,088   |   |                   |  
|Accumulated net realized gain (loss) on investments,
    secured borrowings and foreign currency transactions                |  |                | (360    | ) |                   |  
|Accumulated net unrealized gain
    (loss) on investments, secured borrowings and foreign currency borrowings                |  |                | (20,884 | ) |                   |  
|Total net
    assets                                                                                                         |  | $              | 273,005 |   |                   | $
|                                                                                                                             |  |                |         |   |                   |  
|Net asset value per share                                                                                                    |  | $              | 13.49   |   |                   | $



See Notes to Consolidated Financial Statements.



3







MONROE CAPITAL CORPORATION



CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)



(in thousands, except per share data)



|                                                                                                                       |  | Three months ended March 31, |       
|---------------------------------------------------------------------------------------------------------------------- |  | ---------------------------- | ------
|                                                                                                                       |  | 2018                         |       
|Investment income:                                                                                                     |  |                              |       
|Interest income:                                                                                                       |  |                              |       
|Non-controlled/non-affiliate company investments                                                                       |  | $                            | 11,963
|Non-controlled affiliate company investments                                                                           |  |                              | 1,828 
|Controlled affiliate company
    investments                                                                           |  |                              | -     
|Total interest income                                                                                                  |  |                              | 13,791
|Dividend income:                                                                                                       |  |                              |       
|Non-controlled/non-affiliate company investments                                                                       |  |                              | 260   
|Controlled affiliate company
    investments                                                                           |  |                              | 175   
|Total dividend income                                                                                                  |  |                              | 435   
|Fee income:                                                                                                            |  |                              |       
|Non-controlled/non-affiliate
    company investments                                                                   |  |                              | 724   
|Total fee income                                                                                                       |  |                              | 724   
|Total investment
    income                                                                                            |  |                              | 14,950
|                                                                                                                       |  |                              |       
|Operating expenses:                                                                                                    |  |                              |       
|Interest and other debt financing expenses                                                                             |  |                              | 2,706 
|Base management fees                                                                                                   |  |                              | 2,163 
|Incentive fees                                                                                                         |  |                              | 761   
|Professional fees                                                                                                      |  |                              | 307   
|Administrative service fees                                                                                            |  |                              | 324   
|General and administrative expenses                                                                                    |  |                              | 176   
|Excise taxes                                                                                                           |  |                              | 11    
|Directors' fees                                                                                                        |  |                              | 37    
|Total expenses                                                                                                         |  |                              | 6,485 
|Net investment
    income                                                                                              |  |                              | 8,465 
|                                                                                                                       |  |                              |       
|Net gain (loss) on investments,
    secured borrowings, foreign currency transactions and foreign currency borrowings: |  |                              |       
|Net realized gain (loss):                                                                                              |  |                              |       
|Non-controlled/non-affiliate company investments                                                                       |  |                              | -     
|Foreign currency transactions                                                                                          |  |                              | 12    
|Net realized gain (loss)                                                                                               |  |                              | 12    
|                                                                                                                       |  |                              |       
|Net change in unrealized gain (loss):                                                                                  |  |                              |       
|Non-controlled/non-affiliate company investments                                                                       |  |                              | (165  
|Non-controlled affiliate company investments                                                                           |  |                              | (6,923
|Controlled affiliate company investments                                                                               |  |                              | 443   
|Secured borrowings                                                                                                     |  |                              | -     
|Foreign currency borrowings                                                                                            |  |                              | (442  
|Net change in unrealized gain (loss)                                                                                   |  |                              | (7,087
|                                                                                                                       |  |                              |       
|Net gain (loss)
    on investments, secured borrowings, foreign currency transactions and foreign currency borrowings  |  |                              | (7,075
|                                                                                                                       |  |                              |       
|Net increase
    (decrease) in net assets resulting from operations                                                    |  | $                            | 1,390 
|                                                                                                                       |  |                              |       
|Per common share data:                                                                                                 |  |                              |       
|Net investment income per share
    - basic and diluted                                                                |  | $                            | 0.42  
|Net increase (decrease) in net
    assets resulting from operations per share - basic and diluted                      |  | $                            | 0.07  
|Weighted average common shares
    outstanding - basic and diluted                                                     |  |                              | 20,240



See Notes to Consolidated
Financial Statements.



4







MONROE CAPITAL CORPORATION



CONSOLIDATED STATEMENTS OF CHANGES IN
NET ASSETS

(unaudited)



(in thousands)



|                                                                 |  | Common Stock                                                                                                                              |        |  | Capital in                                                                                |   |    | Undistributed
    net investment income (accumulated distributions in excess of net                                                                                                   |  |   | Accumulated
    net realized gain (loss) on investments, secured borrowings and                                                                                                                              |  |  | Accumulated
    net unrealized gain (loss) on investments, secured borrowings and foreign                                              |        |   |                                                                                                     |  
|---------------------------------------------------------------- |  | ----------------------------------------------------------------------------------------------------------------------------------------- | ------ |  | ----------------------------------------------------------------------------------------- | - | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  |  | -------------------------------------------------------------------------------------------------------------------------------------- | ------ | - | --------------------------------------------------------------------------------------------------- | -
|                                                                 |  | Number
                                                                                of
                                         shares |        |  | Par
                                                                                value |   |    | excess
                                         of
                                                                                par
                                         value |  |   | investment
                                                                                                         
                                                                                income) |  |  | foreign currency
                                                                                                         transactions |        |   | currency
                                                                                borrowings |  
|Balances at December 31, 2016                                    |  |                                                                                                                                           | 16,582 |  |                                                                                           | $ | 17 |                                                                                                                                                                                       |  | $ | 233,526                                                                                                                                                                                                      |  |  | $                                                                                                                                      | 7,037  |   |                                                                                                     | $
|Net increase (decrease) in net assets resulting from operations  |  |                                                                                                                                           | -      |  |                                                                                           |   | -  |                                                                                                                                                                                       |  |   | -                                                                                                                                                                                                            |  |  |                                                                                                                                        | 6,034  |   |                                                                                                     |  
|Issuance of common stock, net of offering and underwriting costs |  |                                                                                                                                           | 114    |  |                                                                                           |   | -  |                                                                                                                                                                                       |  |   | 1,736                                                                                                                                                                                                        |  |  |                                                                                                                                        | -      |   |                                                                                                     |  
|Distributions to stockholders:                                   |  |                                                                                                                                           |        |  |                                                                                           |   |    |                                                                                                                                                                                       |  |   |                                                                                                                                                                                                              |  |  |                                                                                                                                        |        |   |                                                                                                     |  
|Stock issued in connection with dividend reinvestment
    plan   |  |                                                                                                                                           | 16     |  |                                                                                           |   | -  |                                                                                                                                                                                       |  |   | 254                                                                                                                                                                                                          |  |  |                                                                                                                                        | (254   | ) |                                                                                                     |  
|Distributions from net investment
    income                     |  |                                                                                                                                           | -      |  |                                                                                           |   | -  |                                                                                                                                                                                       |  |   | -                                                                                                                                                                                                            |  |  |                                                                                                                                        | (5,549 | ) |                                                                                                     |  
|Balances at March 31, 2017                                       |  |                                                                                                                                           | 16,712 |  |                                                                                           | $ | 17 |                                                                                                                                                                                       |  | $ | 235,516                                                                                                                                                                                                      |  |  | $                                                                                                                                      | 7,268  |   |                                                                                                     | $
|                                                                 |  |                                                                                                                                           |        |  |                                                                                           |   |    |                                                                                                                                                                                       |  |   |                                                                                                                                                                                                              |  |  |                                                                                                                                        |        |   |                                                                                                     |  
|Balances at December 31, 2017                                    |  |                                                                                                                                           | 20,240 |  |                                                                                           | $ | 20 |                                                                                                                                                                                       |  | $ | 286,141                                                                                                                                                                                                      |  |  | $                                                                                                                                      | 6,707  |   |                                                                                                     | $
|Net increase (decrease) in net assets resulting from operations  |  |                                                                                                                                           | -      |  |                                                                                           |   | -  |                                                                                                                                                                                       |  |   | -                                                                                                                                                                                                            |  |  |                                                                                                                                        | 8,465  |   |                                                                                                     |  
|Distributions to stockholders:                                   |  |                                                                                                                                           |        |  |                                                                                           |   |    |                                                                                                                                                                                       |  |   |                                                                                                                                                                                                              |  |  |                                                                                                                                        |        |   |                                                                                                     |  
|Distributions from net investment
    income                     |  |                                                                                                                                           | -      |  |                                                                                           |   | -  |                                                                                                                                                                                       |  |   | -                                                                                                                                                                                                            |  |  |                                                                                                                                        | (7,084 | ) |                                                                                                     |  
|Balances at March 31, 2018                                       |  |                                                                                                                                           | 20,240 |  |                                                                                           | $ | 20 |                                                                                                                                                                                       |  | $ | 286,141                                                                                                                                                                                                      |  |  | $                                                                                                                                      | 8,088  |   |                                                                                                     | $



See Notes to Consolidated
Financial Statements.



5







MONROE CAPITAL CORPORATION



CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)



(in thousands)



|                                                                                                                                                     |  | Three months ended March 31, |        
|---------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---------------------------- | -------
|                                                                                                                                                     |  | 2018                         |        
|                                                                                                                                                     |  |                              |        
|Cash flows from operating activities:                                                                                                                |  |                              |        
|Net increase (decrease) in net assets resulting
    from operations                                                                                  |  | $                            | 1,390  
|Adjustments to reconcile net increase (decrease) in
    net assets resulting from operations to net cash provided by (used in) operating activities: |  |                              |        
|Net change in unrealized (gain) loss on investments                                                                                                  |  |                              | 6,645  
|Net change in unrealized (gain) loss on secured borrowings                                                                                           |  |                              | -      
|Net change in unrealized (gain) loss on foreign currency
    borrowings                                                                              |  |                              | 442    
|Net realized (gain) loss on investments                                                                                                              |  |                              | -      
|Net realized (gain) on foreign currency transactions                                                                                                 |  |                              | (12    
|Payment-in-kind interest income                                                                                                                      |  |                              | (329   
|Payment-in-kind dividend income                                                                                                                      |  |                              | (260   
|Net accretion of discounts and amortization of premiums                                                                                              |  |                              | (1,032 
|Proceeds from principal payments and sales of investments                                                                                            |  |                              | 25,559 
|Purchases of investments                                                                                                                             |  |                              | (32,479
|Amortization of deferred financing costs                                                                                                             |  |                              | 281    
|Changes in operating assets and liabilities:                                                                                                         |  |                              |        
|Interest receivable                                                                                                                                  |  |                              | (421   
|Other assets                                                                                                                                         |  |                              | 33     
|Interest payable                                                                                                                                     |  |                              | (740   
|Management fees payable                                                                                                                              |  |                              | 99     
|Incentive fees payable                                                                                                                               |  |                              | (396   
|Directors' fees payable                                                                                                                              |  |                              | 37     
|Accounts payable and accrued
    expenses                                                                                                            |  |                              | (8     
|Net cash
    provided by (used in) operating activities                                                                                              |  |                              | (1,191 
|                                                                                                                                                     |  |                              |        
|Cash flows from financing activities:                                                                                                                |  |                              |        
|Borrowings on revolving credit facility                                                                                                              |  |                              | 24,800 
|Repayments of revolving credit facility                                                                                                              |  |                              | (16,750
|SBA debentures borrowings                                                                                                                            |  |                              | 3,280  
|Payments of deferred financing costs                                                                                                                 |  |                              | (79    
|Proceeds from shares sold, net of offering and underwriting
    costs                                                                                |  |                              | -      
|Stockholder distributions paid,
    net of stock issued under the dividend reinvestment plan of $0, and $254, respectively                           |  |                              | (7,084 
|Net cash
    provided by (used in) financing activities                                                                                              |  |                              | 4,167  
|                                                                                                                                                     |  |                              |        
|Net increase (decrease) in Cash
    and Restricted Cash                                                                                              |  |                              | 2,976  
|Effect of foreign currency exchange rates                                                                                                            |  |                              | 12     
|Cash and
    Restricted Cash, beginning of period (1)                                                                                                |  |                              | 7,199  
|Cash and
    Restricted Cash, end of period (2)                                                                                                      |  | $                            | 10,187 
|                                                                                                                                                     |  |                              |        
|Supplemental disclosure of cash flow information:                                                                                                    |  |                              |        
|Cash interest paid during the period                                                                                                                 |  | $                            | 3,145  
|Cash paid for excise taxes during the period                                                                                                         |  | $                            | 91     








| | (1) | Represents
                                         cash and restricted cash of $4,332 and $2,867, respectively, from the consolidated statement
                                         of assets and liabilities as of December 31, 2017. Represents cash and restricted cash
                                         of $5,958 and $2,373, respectively, from the consolidated statement of assets and liabilities
                                         as of December 31, 2016.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (2) | Represents
                                         cash and restricted cash of $3,070 and $7,117, respectively, from the consolidated statement
                                         of assets and liabilities as of March 31, 2018. Represents cash and restricted cash of
                                         $5,483 and $10,555, respectively, from the consolidated statement of assets and liabilities
                                         as of March 31, 2017.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



See Notes to Consolidated
Financial Statements.



6







MONROE CAPITAL CORPORATION



CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2018

(in thousands, except for shares and
units)



|Portfolio Company (a)                                        |  | SpreadAboveIndex (b) |  | InterestRate |                                                                |     | Maturity |            | Principal |  |        | AmortizedCost |  |   | FairValue (c) |  |  | % of NetAssets (d) |       
|------------------------------------------------------------ |  | -------------------- |  | ------------ | -------------------------------------------------------------- | --- | -------- | ---------- | --------- |  | ------ | ------------- |  | - | ------------- |  |  | ------------------ | ------
|Non-Controlled/Non-Affiliate Company Investments             |  |                      |  |              |                                                                |     |          |            |           |  |        |               |  |   |               |  |  |                    |       
|Senior Secured Loans                                         |  |                      |  |              |                                                                |     |          |            |           |  |        |               |  |   |               |  |  |                    |       
|Banking, Finance, Insurance
    & Real Estate                |  |                      |  |              |                                                                |     |          |            |           |  |        |               |  |   |               |  |  |                    |       
|Echelon Funding I, LLC (Delayed
    Draw) (e) (f) (g)        |  | L+10.25%             |  |              | 11.91                                                          | %   |          | 2/24/2021  |           |  | 15,750 |               |  | $ | 14,454        |  |  | $                  | 14,681
|HFZ Capital Group, LLC (e)                                   |  | L+10.00%             |  |              | 11.69                                                          | %   |          | 10/20/2019 |           |  | 18,000 |               |  |   | 17,666        |  |  |                    | 18,153
|Liftforward SPV II, LLC (e) (f)                              |  | L+10.75%             |  |              | 12.63                                                          | %   |          | 11/10/2020 |           |  | 10,000 |               |  |   | 4,215         |  |  |                    | 4,317 
|PKS Holdings, LLC (e)                                        |  | L+9.50%              |  |              | 11.16                                                          | %   |          | 11/30/2022 |           |  | 1,789  |               |  |   | 1,631         |  |  |                    | 1,752 
|PKS Holdings, LLC (Revolver)
    (e) (f)                     |  | L+9.50%              |  |              | 11.16                                                          | %   |          | 11/30/2022 |           |  | 80     |               |  |   | -             |  |  |                    | -     
|                                                             |  |                      |  |              |                                                                |     |          |            |           |  | 45,619 |               |  |   | 37,966        |  |  |                    | 38,903
|Beverage, Food & Tobacco                                     |  |                      |  |              |                                                                |     |          |            |           |  |        |               |  |   |               |  |  |                    |       
|All Holding Company, LLC (h)                                 |  | L+7.00%              |  |              | 8.88                                                           | %   |          | 11/15/2021 |           |  | 5,294  |               |  |   | 5,216         |  |  |                    | 5,225 
|California Pizza Kitchen,
    Inc.                           |  | L+6.00%              |  |              | 7.88                                                           | %   |          | 8/23/2022  |           |  | 6,895  |               |  |   | 6,835         |  |  |                    | 6,771 
|                                                             |  |                      |  |              |                                                                |     |          |            |           |  | 12,189 |               |  |   | 12,051        |  |  |                    | 11,996
|Construction & Building                                      |  |                      |  |              |                                                                |     |          |            |           |  |        |               |  |   |               |  |  |                    |       
|Cali Bamboo, LLC                                             |  | L+8.00%              |  |              | 9.88                                                           | %   |          | 7/10/2020  |           |  | 5,305  |               |  |   | 5,257         |  |  |                    | 5,305 
|Cali Bamboo, LLC (Revolver) (f)                              |  | L+8.00%              |  |              | 9.88                                                           | %   |          | 7/10/2020  |           |  | 2,165  |               |  |   | 1,602         |  |  |                    | 1,602 
|Cornerstone Detention Products, Inc. (i)                     |  | L+11.83%             |  |              | 10.38%
                                         Cash/3.33% PIK | (j) |          | 4/8/2019   |           |  | 3,477  |               |  |   | 3,461         |  |  |                    | 3,470 
|Cornerstone Detention Products, Inc. (Revolver)
    (f)      |  | L+8.50%              |  |              | 10.38                                                          | %   |          | 4/8/2019   |           |  | 1,000  |               |  |   | 200           |  |  |                    | 200   
|TRP Construction Group, LLC (h)                              |  | L+6.50%              |  |              | 8.38                                                           | %   |          | 10/5/2022  |           |  | 7,980  |               |  |   | 7,833         |  |  |                    | 7,996 
|TRP Construction Group,
    LLC (Revolver) (f)               |  | L+6.50%              |  |              | 8.38                                                           | %   |          | 10/5/2022  |           |  | 2,134  |               |  |   | -             |  |  |                    | -     
|                                                             |  |                      |  |              |                                                                |     |          |            |           |  | 22,061 |               |  |   | 18,353        |  |  |                    | 18,573
|Consumer Goods: Durable                                      |  |                      |  |              |                                                                |     |          |            |           |  |        |               |  |   |               |  |  |                    |       
|Parterre Flooring & Surface Systems, LLC
    (h)             |  | L+7.25%              |  |              | 9.13                                                           | %   |          | 8/22/2022  |           |  | 11,700 |               |  |   | 11,489        |  |  |                    | 11,693
|Parterre Flooring &
    Surface Systems, LLC (Revolver) (f)  |  | L+7.25%              |  |              | 9.13                                                           | %   |          | 8/22/2022  |           |  | 2,400  |               |  |   | -             |  |  |                    | -     
|                                                             |  |                      |  |              |                                                                |     |          |            |           |  | 14,100 |               |  |   | 11,489        |  |  |                    | 11,693
|Consumer Goods: Non-Durable                                  |  |                      |  |              |                                                                |     |          |            |           |  |        |               |  |   |               |  |  |                    |       
|Bluestem Brands, Inc.                                        |  | L+7.50%              |  |              | 9.38                                                           | %   |          | 11/6/2020  |           |  | 2,557  |               |  |   | 2,543         |  |  |                    | 1,803 
|Gibson Brands, Inc. (k)                                      |  | n/a                  |  |              | 8.88                                                           | %   |          | 8/1/2018   |           |  | 10,000 |               |  |   | 9,220         |  |  |                    | 8,025 
|Solaray, LLC                                                 |  | L+6.50%              |  |              | 8.55                                                           | %   |          | 9/9/2023   |           |  | 3,256  |               |  |   | 3,229         |  |  |                    | 3,256 
|Solaray, LLC (Delayed
    Draw)                              |  | L+6.50%              |  |              | 8.80                                                           | %   |          | 9/9/2023   |           |  | 699    |               |  |   | 699           |  |  |                    | 699   
|                                                             |  |                      |  |              |                                                                |     |          |            |           |  | 16,512 |               |  |   | 15,691        |  |  |                    | 13,783
|Energy: Oil & Gas                                            |  |                      |  |              |                                                                |     |          |            |           |  |        |               |  |   |               |  |  |                    |       
|Landpoint, LLC                                               |  | L+12.75%             |  |              | 12.38%
                                         Cash/2.25% PIK | (l) |          | 12/20/2019 |           |  | 2,311  |               |  |   | 2,300         |  |  |                    | 2,273 
|Landpoint, LLC (Revolver)
    (f)                            |  | L+10.50%             |  |              | 12.38                                                          | %   |          | 12/20/2019 |           |  | 313    |               |  |   | -             |  |  |                    | -     
|                                                             |  |                      |  |              |                                                                |     |          |            |           |  | 2,624  |               |  |   | 2,300         |  |  |                    | 2,273 
|Environmental Industries                                     |  |                      |  |              |                                                                |     |          |            |           |  |        |               |  |   |               |  |  |                    |       
|Synergy Environmental Corporation (h)                        |  | L+6.50%              |  |              | 8.38                                                           | %   |          | 4/29/2021  |           |  | 2,992  |               |  |   | 2,942         |  |  |                    | 2,995 
|Synergy Environmental Corporation (h)                        |  | L+6.50%              |  |              | 8.38                                                           | %   |          | 4/29/2021  |           |  | 500    |               |  |   | 492           |  |  |                    | 501   
|Synergy Environmental Corporation (Delayed
    Draw) (f) (g) |  | L+6.50%              |  |              | 8.38                                                           | %   |          | 4/29/2021  |           |  | 1,336  |               |  |   | 853           |  |  |                    | 854   
|Synergy Environmental
    Corporation (Revolver) (f)         |  | L+6.50%              |  |              | 8.38                                                           | %   |          | 4/29/2021  |           |  | 671    |               |  |   | 47            |  |  |                    | 47    
|                                                             |  |                      |  |              |                                                                |     |          |            |           |  | 5,499  |               |  |   | 4,334         |  |  |                    | 4,397 
|Healthcare & Pharmaceuticals                                 |  |                      |  |              |                                                                |     |          |            |           |  |        |               |  |   |               |  |  |                    |       
|American Optics Holdco, Inc. (e) (m)                         |  | L+8.00%              |  |              | 9.88                                                           | %   |          | 9/13/2022  |           |  | 4,123  |               |  |   | 4,048         |  |  |                    | 4,191 
|American Optics Holdco, Inc. (Revolver) (e)
    (f) (m)      |  | L+8.00%              |  |              | 9.88                                                           | %   |          | 9/13/2022  |           |  | 440    |               |  |   | -             |  |  |                    | -     
|American Optics Holdco, Inc. (e) (m)                         |  | L+8.00%              |  |              | 9.88                                                           | %   |          | 9/13/2022  |           |  | 758    |               |  |   | 745           |  |  |                    | 771   
|American Optics Holdco, Inc. (Revolver) (e)
    (f) (m)      |  | L+8.00%              |  |              | 9.88                                                           | %   |          | 9/13/2022  |           |  | 440    |               |  |   | -             |  |  |                    | -     
|Beaver-Visitec International Holdings, Inc.                  |  | L+5.00%              |  |              | 7.30                                                           | %   |          | 8/19/2023  |           |  | 4,925  |               |  |   | 4,885         |  |  |                    | 4,950 



7







MONROE CAPITAL CORPORATION



CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

March 31, 2018

(in thousands, except for shares and
units)



|Portfolio Company (a)                                           |  | SpreadAboveIndex (b) |  | InterestRate |                                                                |     | Maturity |            | Principal |  |        | AmortizedCost |  |   | FairValue (c) |  |  | % of NetAssets (d) |       
|--------------------------------------------------------------- |  | -------------------- |  | ------------ | -------------------------------------------------------------- | --- | -------- | ---------- | --------- |  | ------ | ------------- |  | - | ------------- |  |  | ------------------ | ------
|Edge Systems Holdings Corp.                                     |  | L+7.75%              |  |              | 9.63                                                           | %   |          | 12/1/2021  |           |  | 3,362  |               |  | $ | 3,310         |  |  | $                  | 3,431 
|Edge Systems Holdings Corp. (Revolver) (f)                      |  | P+6.75%              |  |              | 11.50                                                          | %   |          | 12/1/2021  |           |  | 260    |               |  |   | 117           |  |  |                    | 117   
|Familia Dental Group Holdings, LLC (h)                          |  | L+8.00%              |  |              | 9.88                                                           | %   |          | 4/8/2021   |           |  | 5,225  |               |  |   | 5,169         |  |  |                    | 5,277 
|Familia Dental Group Holdings, LLC                              |  | L+8.00%              |  |              | 9.88                                                           | %   |          | 4/8/2021   |           |  | 499    |               |  |   | 499           |  |  |                    | 504   
|Familia Dental Group Holdings,
    LLC (Revolver) (f)           |  | L+8.00%              |  |              | 9.88                                                           | %   |          | 4/8/2021   |           |  | 573    |               |  |   | 344           |  |  |                    | 344   
|                                                                |  |                      |  |              |                                                                |     |          |            |           |  | 20,605 |               |  |   | 19,117        |  |  |                    | 19,585
|High Tech Industries                                            |  |                      |  |              |                                                                |     |          |            |           |  |        |               |  |   |               |  |  |                    |       
|Answers Finance, LLC                                            |  | L+5.00%              |  |              | 6.88                                                           | %   |          | 4/15/2021  |           |  | 253    |               |  |   | 250           |  |  |                    | 247   
|Corbett Technology Solutions, Inc. (h)                          |  | L+7.00%              |  |              | 8.88                                                           | %   |          | 11/7/2021  |           |  | 4,219  |               |  |   | 4,171         |  |  |                    | 4,261 
|Corbett Technology Solutions, Inc. (Revolver)
    (f)           |  | L+7.00%              |  |              | 8.88                                                           | %   |          | 11/7/2021  |           |  | 867    |               |  |   | 87            |  |  |                    | 87    
|CRMfusion Inc.                                                  |  | L+6.50%              |  |              | 8.38                                                           | %   |          | 2/21/2023  |           |  | 5,000  |               |  |   | 4,902         |  |  |                    | 4,988 
|CRMfusion Inc. (Revolver) (f)                                   |  | L+6.50%              |  |              | 8.38                                                           | %   |          | 2/21/2023  |           |  | 500    |               |  |   | -             |  |  |                    | -     
|Energy Services Group, LLC                                      |  | L+9.82%              |  |              | 12.12                                                          | %   |          | 5/4/2022   |           |  | 4,562  |               |  |   | 4,512         |  |  |                    | 4,608 
|Energy Services Group, LLC (e) (n)                              |  | L+9.82%              |  |              | 10.82                                                          | %   |          | 5/4/2022   |           |  | 2,556  |               |  |   | 2,333         |  |  |                    | 2,575 
|Energy Services Group, LLC (Delayed Draw)(f)
    (g)            |  | L+9.82%              |  |              | 12.12                                                          | %   |          | 5/4/2022   |           |  | 1,299  |               |  |   | 1,082         |  |  |                    | 1,110 
|Newforma, Inc. (h)                                              |  | L+7.50%              |  |              | 9.80                                                           | %   |          | 6/30/2022  |           |  | 14,924 |               |  |   | 14,731        |  |  |                    | 15,074
|Newforma, Inc. (Revolver) (f)                                   |  | L+7.50%              |  |              | 9.80                                                           | %   |          | 6/30/2022  |           |  | 1,250  |               |  |   | -             |  |  |                    | -     
|Prototek Sheetmetal Fabrication, LLC                            |  | L+7.50%              |  |              | 9.38                                                           | %   |          | 12/12/2022 |           |  | 3,491  |               |  |   | 3,426         |  |  |                    | 3,507 
|Prototek Sheetmetal Fabrication, LLC (Delayed
    Draw) (f) (g) |  | L+7.50%              |  |              | 9.38                                                           | %   |          | 12/12/2022 |           |  | 2,334  |               |  |   | -             |  |  |                    | -     
|Prototek Sheetmetal Fabrication, LLC (Revolver)
    (f)         |  | L+7.50%              |  |              | 9.38                                                           | %   |          | 12/12/2022 |           |  | 233    |               |  |   | -             |  |  |                    | -     
|RPL Bidco Limited (e) (m) (n)                                   |  | L+7.50%              |  |              | 8.02                                                           | %   |          | 11/9/2023  |           |  | 9,811  |               |  |   | 9,064         |  |  |                    | 9,914 
|RPL Bidco Limited (Revolver)
    (e) (f) (m) (n)                |  | L+7.50%              |  |              | 8.02                                                           | %   |          | 11/9/2023  |           |  | 561    |               |  |   | -             |  |  |                    | -     
|                                                                |  |                      |  |              |                                                                |     |          |            |           |  | 51,860 |               |  |   | 44,558        |  |  |                    | 46,371
|Hotels, Gaming & Leisure                                        |  |                      |  |              |                                                                |     |          |            |           |  |        |               |  |   |               |  |  |                    |       
|BC Equity Ventures LLC                                          |  | L+6.50%              |  |              | 8.49                                                           | %   |          | 8/31/2022  |           |  | 2,579  |               |  |   | 2,538         |  |  |                    | 2,620 
|Miles Partnership LLC                                           |  | L+11.00%             |  |              | 11.30%
                                         Cash/2.00% PIK |     |          | 3/24/2021  |           |  | 5,881  |               |  |   | 5,851         |  |  |                    | 5,881 
|Miles Partnership LLC (Delayed Draw) (f)
    (g)                |  | L+11.00%             |  |              | 11.30%
                                         Cash/2.00% PIK |     |          | 3/24/2021  |           |  | 1,410  |               |  |   | 1,063         |  |  |                    | 1,063 
|Miles Partnership LLC (Revolver) (f)                            |  | L+11.00%             |  |              | 11.30%
                                         Cash/2.00% PIK |     |          | 3/24/2021  |           |  | 320    |               |  |   | -             |  |  |                    | -     
|TRG, LLC                                                        |  | L+12.10%             |  |              | 9.16%
                                         Cash/4.60% PIK  | (o) |          | 3/31/2021  |           |  | 17,100 |               |  |   | 17,023        |  |  |                    | 18,340
|TRG, LLC (CapEx) (f)                                            |  | L+9.50%              |  |              | 9.16%
                                         Cash/2.00% PIK  |     |          | 3/31/2021  |           |  | 1,636  |               |  |   | 1,348         |  |  |                    | 1,452 
|TRG, LLC (Revolver) (f)                                         |  | L+9.50%              |  |              | 11.16                                                          | %   |          | 3/31/2021  |           |  | 262    |               |  |   | 131           |  |  |                    | 141   
|                                                                |  |                      |  |              |                                                                |     |          |            |           |  | 29,188 |               |  |   | 27,954        |  |  |                    | 29,497
|Media: Advertising, Printing
    & Publishing                   |  |                      |  |              |                                                                |     |          |            |           |  |        |               |  |   |               |  |  |                    |       
|AdTheorent, Inc.                                                |  | L+10.50%             |  |              | 12.16                                                          | %   |          | 12/22/2021 |           |  | 4,875  |               |  |   | 4,800         |  |  |                    | 4,863 
|Destination Media, Inc. (h)                                     |  | L+6.50%              |  |              | 8.38                                                           | %   |          | 4/7/2022   |           |  | 7,800  |               |  |   | 7,703         |  |  |                    | 7,769 
|Destination Media, Inc. (Revolver) (f)                          |  | L+6.50%              |  |              | 8.38                                                           | %   |          | 4/7/2022   |           |  | 542    |               |  |   | -             |  |  |                    | -     
|MC Sign Lessor Corp.                                            |  | L+7.00%              |  |              | 8.66                                                           | %   |          | 12/22/2022 |           |  | 10,000 |               |  |   | 9,809         |  |  |                    | 10,075
|MC Sign Lessor Corp. (Delayed Draw) (f)
    (g)                 |  | L+7.00%              |  |              | 8.66                                                           | %   |          | 12/22/2022 |           |  | 2,083  |               |  |   | -             |  |  |                    | -     
|MC Sign Lessor Corp. (Revolver)
    (f)                         |  | L+7.00%              |  |              | 8.66                                                           | %   |          | 12/22/2022 |           |  | 625    |               |  |   | -             |  |  |                    | -     
|                                                                |  |                      |  |              |                                                                |     |          |            |           |  | 25,925 |               |  |   | 22,312        |  |  |                    | 22,707
|Media: Broadcasting &
    Subscription                          |  |                      |  |              |                                                                |     |          |            |           |  |        |               |  |   |               |  |  |                    |       
|Jerry Lee Radio, LLC                                            |  | L+9.50%              |  |              | 11.38                                                          | %   |          | 12/17/2020 |           |  | 11,204 |               |  |   | 11,034        |  |  |                    | 11,204
|                                                                |  |                      |  |              |                                                                |     |          |            |           |  | 11,204 |               |  |   | 11,034        |  |  |                    | 11,204
|Retail                                                          |  |                      |  |              |                                                                |     |          |            |           |  |        |               |  |   |               |  |  |                    |       
|Forman Mills, Inc. (h)                                          |  | L+7.50%              |  |              | 9.38                                                           | %   |          | 10/4/2021  |           |  | 8,458  |               |  |   | 8,332         |  |  |                    | 8,415 
|LuLu's Fashion Lounge, LLC                                      |  | L+7.00%              |  |              | 8.88                                                           | %   |          | 8/28/2022  |           |  | 4,812  |               |  |   | 4,682         |  |  |                    | 4,909 
|The Worth Collection, Ltd. (h)                                  |  | L+8.50%              |  |              | 10.38                                                          | %   |          | 9/29/2021  |           |  | 10,588 |               |  |   | 10,430        |  |  |                    | 9,105 
|Yandy Holding, LLC                                              |  | L+9.00%              |  |              | 10.88                                                          | %   |          | 9/30/2019  |           |  | 4,385  |               |  |   | 4,362         |  |  |                    | 4,299 
|Yandy Holding, LLC (Revolver)
    (f)                           |  | L+9.00%              |  |              | 10.88                                                          | %   |          | 9/30/2019  |           |  | 907    |               |  |   | -             |  |  |                    | -     
|                                                                |  |                      |  |              |                                                                |     |          |            |           |  | 29,150 |               |  |   | 27,806        |  |  |                    | 26,728
|Services: Business                                              |  |                      |  |              |                                                                |     |          |            |           |  |        |               |  |   |               |  |  |                    |       
|APCO Worldwide, Inc.                                            |  | L+8.00%              |  |              | 9.88                                                           | %   |          | 6/30/2022  |           |  | 5,000  |               |  |   | 4,912         |  |  |                    | 5,040 
|Burroughs, Inc. (h)                                             |  | L+7.50%              |  |              | 9.16                                                           | %   |          | 12/22/2022 |           |  | 6,000  |               |  |   | 5,913         |  |  |                    | 6,027 
|Burroughs, Inc. (Revolver) (f)                                  |  | L+7.50%              |  |              | 9.16                                                           | %   |          | 12/22/2022 |           |  | 750    |               |  |   | 375           |  |  |                    | 375   



8





MONROE CAPITAL CORPORATION



CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

March 31, 2018

(in thousands, except for shares and
units)



|Portfolio Company (a)                                           |  | SpreadAboveIndex (b) |  | InterestRate |                                                                |      | Maturity |            | Principal |  |         | AmortizedCost |  |   | FairValue (c) |  |  | % of NetAssets (d) |        
|--------------------------------------------------------------- |  | -------------------- |  | ------------ | -------------------------------------------------------------- | ---- | -------- | ---------- | --------- |  | ------- | ------------- |  | - | ------------- |  |  | ------------------ | -------
|Curion Holdings, LLC (h)                                        |  | L+7.00%              |  |              | 8.88                                                           | %    |          | 5/2/2022   |           |  | 3,859   |               |  | $ | 3,810         |  |  | $                  | 3,792  
|Curion Holdings, LLC (Revolver) (f)                             |  | L+7.00%              |  |              | 8.88                                                           | %    |          | 5/2/2022   |           |  | 308     |               |  |   | 77            |  |  |                    | 75     
|EB Employee Solutions, LLC (h)                                  |  | L+8.00%              |  |              | 9.88                                                           | %    |          | 2/28/2019  |           |  | 3,170   |               |  |   | 3,149         |  |  |                    | 3,107  
|First Call Resolution, LLC (h)                                  |  | L+7.00%              |  |              | 8.66                                                           | %    |          | 9/22/2022  |           |  | 4,988   |               |  |   | 4,909         |  |  |                    | 5,137  
|Madison Logic, Inc. (h)                                         |  | L+8.00%              |  |              | 9.88                                                           | %    |          | 11/30/2021 |           |  | 10,172  |               |  |   | 10,013        |  |  |                    | 10,172 
|Madison Logic, Inc. (Revolver)
    (f)                          |  | L+8.00%              |  |              | 9.88                                                           | %    |          | 11/30/2021 |           |  | 988     |               |  |   | -             |  |  |                    | -      
|                                                                |  |                      |  |              |                                                                |      |          |            |           |  | 35,235  |               |  |   | 33,158        |  |  |                    | 33,725 
|Services: Consumer                                              |  |                      |  |              |                                                                |      |          |            |           |  |         |               |  |   |               |  |  |                    |        
|PeopleConnect Intermediate, LLC                                 |  | L+6.50%              |  |              | 8.20                                                           | %    |          | 7/1/2020   |           |  | 4,476   |               |  |   | 4,425         |  |  |                    | 4,476  
|PeopleConnect Intermediate, LLC                                 |  | L+12.50%             |  |              | 14.20                                                          | %    |          | 7/1/2020   |           |  | 4,738   |               |  |   | 4,681         |  |  |                    | 4,726  
|PeopleConnect Intermediate,
    LLC (Revolver) (f)              |  | L+9.50%              |  |              | 11.20                                                          | %    |          | 7/1/2020   |           |  | 236     |               |  |   | 118           |  |  |                    | 118    
|                                                                |  |                      |  |              |                                                                |      |          |            |           |  | 9,450   |               |  |   | 9,224         |  |  |                    | 9,320  
|Telecommunications                                              |  |                      |  |              |                                                                |      |          |            |           |  |         |               |  |   |               |  |  |                    |        
|Peerless Network, Inc.
    (h)                                  |  | L+9.25%              |  |              | 10.16%
                                         Cash/0.75% PIK | (p)  |          | 12/11/2020 |           |  | 2,964   |               |  |   | 2,919         |  |  |                    | 2,985  
|                                                                |  |                      |  |              |                                                                |      |          |            |           |  | 2,964   |               |  |   | 2,919         |  |  |                    | 2,985  
|Utilities: Electric                                             |  |                      |  |              |                                                                |      |          |            |           |  |         |               |  |   |               |  |  |                    |        
|CRCI Holdings, Inc.                                             |  | L+5.50%              |  |              | 8.17                                                           | %    |          | 8/31/2023  |           |  | 2,782   |               |  |   | 2,760         |  |  |                    | 2,797  
|                                                                |  |                      |  |              |                                                                |      |          |            |           |  | 2,782   |               |  |   | 2,760         |  |  |                    | 2,797  
|Wholesale                                                       |  |                      |  |              |                                                                |      |          |            |           |  |         |               |  |   |               |  |  |                    |        
|Mid-West Wholesale Hardware Co. (h)                             |  | L+8.00%              |  |              | 9.88                                                           | %    |          | 2/9/2022   |           |  | 16,527  |               |  |   | 16,250        |  |  |                    | 16,502 
|Mid-West Wholesale Hardware Co. (Revolver)
    (f)              |  | L+8.00%              |  |              | 9.88                                                           | %    |          | 2/9/2022   |           |  | 4,421   |               |  |   | 632           |  |  |                    | 631    
|Nearly Natural, Inc. (h)                                        |  | L+7.00%              |  |              | 9.30                                                           | %    |          | 12/15/2022 |           |  | 6,983   |               |  |   | 6,849         |  |  |                    | 6,990  
|Nearly Natural, Inc. (Revolver)
    (f)                         |  | L+7.00%              |  |              | 9.30                                                           | %    |          | 12/15/2022 |           |  | 1,522   |               |  |   | -             |  |  |                    | -      
|                                                                |  |                      |  |              |                                                                |      |          |            |           |  | 29,453  |               |  |   | 23,731        |  |  |                    | 24,123 
|Total
    Non-Controlled/Non-Affiliate Senior Secured Loans     |  |                      |  |              |                                                                |      |          |            |           |  | 366,420 |               |  |   | 326,757       |  |  |                    | 330,660
|                                                                |  |                      |  |              |                                                                |      |          |            |           |  |         |               |  |   |               |  |  |                    |        
|Unitranche Secured Loans
    (q)                                |  |                      |  |              |                                                                |      |          |            |           |  |         |               |  |   |               |  |  |                    |        
|Chemicals, Plastics &
    Rubber                                |  |                      |  |              |                                                                |      |          |            |           |  |         |               |  |   |               |  |  |                    |        
|MFG Chemical, LLC (h)                                           |  | L+6.00%              |  |              | 7.88                                                           | %    |          | 6/23/2022  |           |  | 10,477  |               |  |   | 10,337        |  |  |                    | 10,461 
|MFG Chemical, LLC (Delayed
    Draw) (f) (g)                    |  | L+6.00%              |  |              | 7.88                                                           | %    |          | 6/23/2022  |           |  | 1,135   |               |  |   | -             |  |  |                    | -      
|                                                                |  |                      |  |              |                                                                |      |          |            |           |  | 11,612  |               |  |   | 10,337        |  |  |                    | 10,461 
|Consumer Goods: Non-Durable                                     |  |                      |  |              |                                                                |      |          |            |           |  |         |               |  |   |               |  |  |                    |        
|Incipio Technologies, Inc. (r)                                  |  | L+10.80%             |  |              | 12.13%
                                         Cash/0.55% PIK | (ab) |          | 12/26/2019 |           |  | 13,803  |               |  |   | 13,675        |  |  |                    | 13,396 
|Incipio Technologies,
    Inc.                                  |  | L+10.80%             |  |              | 11.97%
                                         Cash/0.55% PIK | (ab) |          | 12/26/2019 |           |  | 2,110   |               |  |   | 2,110         |  |  |                    | 2,048  
|                                                                |  |                      |  |              |                                                                |      |          |            |           |  | 15,913  |               |  |   | 15,785        |  |  |                    | 15,444 
|Healthcare & Pharmaceuticals                                    |  |                      |  |              |                                                                |      |          |            |           |  |         |               |  |   |               |  |  |                    |        
|Collaborative Neuroscience Network, LLC                         |  | L+11.50%             |  |              | 13.38                                                          | %    |          | 4/27/2018  |           |  | 6,120   |               |  |   | 6,080         |  |  |                    | 5,909  
|Collaborative Neuroscience Network, LLC                         |  | n/a                  |  |              | 12.00%
                                         Cash/3.00% PIK |      |          | 4/27/2018  |           |  | 297     |               |  |   | 297           |  |  |                    | 297    
|Collaborative Neuroscience Network, LLC (Revolver)              |  | L+10.00%             |  |              | 11.88                                                          | %    |          | 4/27/2018  |           |  | 200     |               |  |   | 191           |  |  |                    | 195    
|Priority Ambulance, LLC (h)                                     |  | L+6.50%              |  |              | 8.80                                                           | %    |          | 4/12/2022  |           |  | 9,258   |               |  |   | 9,098         |  |  |                    | 9,263  
|Priority Ambulance, LLC                                         |  | L+6.50%              |  |              | 8.79                                                           | %    |          | 4/12/2022  |           |  | 676     |               |  |   | 676           |  |  |                    | 676    
|                                                                |  |                      |  |              |                                                                |      |          |            |           |  | 16,551  |               |  |   | 16,342        |  |  |                    | 16,340 
|Hotels, Gaming & Leisure                                        |  |                      |  |              |                                                                |      |          |            |           |  |         |               |  |   |               |  |  |                    |        
|Playtime, LLC                                                   |  | L+7.50%              |  |              | 9.38                                                           | %    |          | 12/31/2021 |           |  | 4,014   |               |  |   | 4,014         |  |  |                    | 3,731  
|                                                                |  |                      |  |              |                                                                |      |          |            |           |  | 4,014   |               |  |   | 4,014         |  |  |                    | 3,731  
|Total
    Non-Controlled/Non-Affiliate Unitranche Secured Loans |  |                      |  |              |                                                                |      |          |            |           |  | 48,090  |               |  |   | 46,478        |  |  |                    | 45,976 
|                                                                |  |                      |  |              |                                                                |      |          |            |           |  |         |               |  |   |               |  |  |                    |        
|Junior Secured Loans                                            |  |                      |  |              |                                                                |      |          |            |           |  |         |               |  |   |               |  |  |                    |        
|Aerospace & Defense                                             |  |                      |  |              |                                                                |      |          |            |           |  |         |               |  |   |               |  |  |                    |        
|AIM Aerospace, Inc.                                             |  | L+9.00%              |  |              | 10.77                                                          | %    |          | 8/2/2022   |           |  | 5,000   |               |  |   | 4,945         |  |  |                    | 5,000  
|                                                                |  |                      |  |              |                                                                |      |          |            |           |  | 5,000   |               |  |   | 4,945         |  |  |                    | 5,000  
|Banking, Finance, Insurance
    & Real Estate                   |  |                      |  |              |                                                                |      |          |            |           |  |         |               |  |   |               |  |  |                    |        
|Confie Seguros Holdings
    II Co.                              |  | L+9.50%              |  |              | 11.48                                                          | %    |          | 5/8/2019   |           |  | 8,594   |               |  |   | 8,401         |  |  |                    | 8,347  
|                                                                |  |                      |  |              |                                                                |      |          |            |           |  | 8,594   |               |  |   | 8,401         |  |  |                    | 8,347  
|Beverage, Food & Tobacco                                        |  |                      |  |              |                                                                |      |          |            |           |  |         |               |  |   |               |  |  |                    |        
|CSM Bakery Supplies LLC                                         |  | L+7.75%              |  |              | 9.45                                                           | %    |          | 7/3/2021   |           |  | 5,792   |               |  |   | 5,792         |  |  |                    | 5,570  
|                                                                |  |                      |  |              |                                                                |      |          |            |           |  | 5,792   |               |  |   | 5,792         |  |  |                    | 5,570  



9





MONROE CAPITAL CORPORATION



CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

March 31, 2018

(in thousands, except for shares and
units)



|Portfolio Company (a)                                                               |  | SpreadAboveIndex (b) |  | InterestRate |                                                     |      | Maturity |            | Principal |  |        | AmortizedCost |  |   | FairValue (c) |  |  | % of NetAssets (d) |        
|----------------------------------------------------------------------------------- |  | -------------------- |  | ------------ | --------------------------------------------------- | ---- | -------- | ---------- | --------- |  | ------ | ------------- |  | - | ------------- |  |  | ------------------ | -------
|Healthcare & Pharmaceuticals                                                        |  |                      |  |              |                                                     |      |          |            |           |  |        |               |  |   |               |  |  |                    |        
|Heartland
    Dental, LLC                                                           |  | L+8.50%              |  |              | 10.38                                               | %    |          | 7/31/2024  |           |  | 3,000  |               |  | $ | 2,958         |  |  | $                  | 3,048  
|                                                                                    |  |                      |  |              |                                                     |      |          |            |           |  | 3,000  |               |  |   | 2,958         |  |  |                    | 3,048  
|High Tech Industries                                                                |  |                      |  |              |                                                     |      |          |            |           |  |        |               |  |   |               |  |  |                    |        
|Answers Finance, LLC                                                                |  | P+7.90%              |  |              | 9.00                                                | %(s) |          | 9/15/2021  |           |  | 393    |               |  |   | 391           |  |  |                    | 386    
|Micro Holdings Corp.                                                                |  | L+7.50%              |  |              | 9.28                                                | %    |          | 8/18/2025  |           |  | 3,000  |               |  |   | 2,972         |  |  |                    | 3,043  
|                                                                                    |  |                      |  |              |                                                     |      |          |            |           |  | 3,393  |               |  |   | 3,363         |  |  |                    | 3,429  
|Media: Broadcasting &
    Subscription                                              |  |                      |  |              |                                                     |      |          |            |           |  |        |               |  |   |               |  |  |                    |        
|Mergermarket Bidco Limited                                                          |  | L+7.25%              |  |              | 9.04                                                | %    |          | 8/3/2025   |           |  | 4,500  |               |  |   | 4,456         |  |  |                    | 4,538  
|                                                                                    |  |                      |  |              |                                                     |      |          |            |           |  | 4,500  |               |  |   | 4,456         |  |  |                    | 4,538  
|Media: Diversified &
    Production                                                 |  |                      |  |              |                                                     |      |          |            |           |  |        |               |  |   |               |  |  |                    |        
|The Octave Music Group,
    Inc.                                                    |  | L+8.25%              |  |              | 9.94                                                | %    |          | 5/29/2022  |           |  | 5,000  |               |  |   | 4,949         |  |  |                    | 5,006  
|                                                                                    |  |                      |  |              |                                                     |      |          |            |           |  | 5,000  |               |  |   | 4,949         |  |  |                    | 5,006  
|Services: Consumer                                                                  |  |                      |  |              |                                                     |      |          |            |           |  |        |               |  |   |               |  |  |                    |        
|Education Corporation of America                                                    |  | L+11.00%             |  |              | 13.31                                               | %    |          | 12/31/2018 |           |  | 625    |               |  |   | 621           |  |  |                    | 625    
|Pre-Paid Legal Services,
    Inc. (Legal Shield)                                    |  | L+9.00%              |  |              | 10.88                                               | %    |          | 7/1/2020   |           |  | 3,000  |               |  |   | 3,000         |  |  |                    | 3,015  
|                                                                                    |  |                      |  |              |                                                     |      |          |            |           |  | 3,625  |               |  |   | 3,621         |  |  |                    | 3,640  
|Total
    Non-Controlled/Non-Affiliate Junior Secured Loans                         |  |                      |  |              |                                                     |      |          |            |           |  | 38,904 |               |  |   | 38,485        |  |  |                    | 38,578 
|                                                                                    |  |                      |  |              |                                                     |      |          |            |           |  |        |               |  |   |               |  |  |                    |        
|Equity Securities (t)
    (u)                                                       |  |                      |  |              |                                                     |      |          |            |           |  |        |               |  |   |               |  |  |                    |        
|Banking, Finance, Insurance
    & Real Estate                                       |  |                      |  |              |                                                     |      |          |            |           |  |        |               |  |   |               |  |  |                    |        
|PKS Holdings, LLC (warrant
    to purchase 14,247 class A preferred units) (e)      |  | -                    |  |              | -                                                   | (v)  |          | 11/30/2027 |           |  | -      |               |  |   | 116           |  |  |                    | 120    
|                                                                                    |  |                      |  |              |                                                     |      |          |            |           |  |        |               |  |   | 116           |  |  |                    | 120    
|Healthcare & Pharmaceuticals                                                        |  |                      |  |              |                                                     |      |          |            |           |  |        |               |  |   |               |  |  |                    |        
|Collaborative Neuroscience Network, LLC (warrant
    to purchase up to 2 LLC units) |  | -                    |  |              | -                                                   | (v)  |          | 12/27/2022 |           |  | -      |               |  |   | -             |  |  |                    | -      
|Collaborative Neuroscience
    Network, LLC (warrant to purchase up to 2 LLC units) |  | -                    |  |              | -                                                   | (v)  |          | 12/31/2027 |           |  | -      |               |  |   | -             |  |  |                    | -      
|                                                                                    |  |                      |  |              |                                                     |      |          |            |           |  |        |               |  |   | -             |  |  |                    | -      
|High Tech Industries                                                                |  |                      |  |              |                                                     |      |          |            |           |  |        |               |  |   |               |  |  |                    |        
|Answers Finance, LLC (76,539
    shares of common stock)                            |  | -                    |  |              | -                                                   | (v)  |          | -          |           |  | -      |               |  |   | 2,413         |  |  |                    | 1,167  
|                                                                                    |  |                      |  |              |                                                     |      |          |            |           |  |        |               |  |   | 2,413         |  |  |                    | 1,167  
|Hotels, Gaming & Leisure                                                            |  |                      |  |              |                                                     |      |          |            |           |  |        |               |  |   |               |  |  |                    |        
|Playtime, LLC - Preferred
    Units (8,665 units)                                   |  | -                    |  |              | -                                                   | (v)  |          | -          |           |  | -      |               |  |   | 200           |  |  |                    | 13     
|                                                                                    |  |                      |  |              |                                                     |      |          |            |           |  |        |               |  |   | 200           |  |  |                    | 13     
|Media: Advertising, Printing
    & Publishing                                       |  |                      |  |              |                                                     |      |          |            |           |  |        |               |  |   |               |  |  |                    |        
|AdTheorent, Inc. (128,866 class A voting units)                                     |  | -                    |  |              | -                                                   | (v)  |          | -          |           |  | -      |               |  |   | 129           |  |  |                    | 122    
|InMobi Pte, Ltd. (represents
    the right to purchase 2.80% of the equity) (e) (m) |  | -                    |  |              | -                                                   | (v)  |          | 9/18/2025  |           |  | -      |               |  |   | -             |  |  |                    | 219    
|                                                                                    |  |                      |  |              |                                                     |      |          |            |           |  |        |               |  |   | 129           |  |  |                    | 341    
|Retail                                                                              |  |                      |  |              |                                                     |      |          |            |           |  |        |               |  |   |               |  |  |                    |        
|The Tie Bar Operating Company, LLC - Class
    A Preferred Units (1,275 units)      |  | -                    |  |              | -                                                   |      |          | -          |           |  | -      |               |  |   | 86            |  |  |                    | 122    
|The Tie Bar Operating
    Company, LLC - Class B Preferred Units (1,275 units)      |  | -                    |  |              | -                                                   |      |          | -          |           |  | -      |               |  |   | 1             |  |  |                    | -      
|                                                                                    |  |                      |  |              |                                                     |      |          |            |           |  |        |               |  |   | 87            |  |  |                    | 122    
|Services: Business                                                                  |  |                      |  |              |                                                     |      |          |            |           |  |        |               |  |   |               |  |  |                    |        
|APCO Worldwide, Inc. (100
    class A voting common stock)                          |  | -                    |  |              | -                                                   | (v)  |          | -          |           |  | -      |               |  |   | 395           |  |  |                    | 427    
|                                                                                    |  |                      |  |              |                                                     |      |          |            |           |  |        |               |  |   | 395           |  |  |                    | 427    
|Services: Consumer                                                                  |  |                      |  |              |                                                     |      |          |            |           |  |        |               |  |   |               |  |  |                    |        
|Education Corporation
    of America - Series G Preferred Stock (8,333 shares)      |  | -                    |  |              | 12.00
                                         %PIK |      |          | -          |           |  | -      |               |  |   | 8,627         |  |  |                    | 8,503  
|                                                                                    |  |                      |  |              |                                                     |      |          |            |           |  |        |               |  |   | 8,627         |  |  |                    | 8,503  
|Wholesale                                                                           |  |                      |  |              |                                                     |      |          |            |           |  |        |               |  |   |               |  |  |                    |        
|Nearly Natural, Inc. (152,174
    class A units)                                    |  | -                    |  |              | -                                                   | (v)  |          | -          |           |  | -      |               |  |   | 152           |  |  |                    | 151    
|                                                                                    |  |                      |  |              |                                                     |      |          |            |           |  |        |               |  |   | 152           |  |  |                    | 151    
|Total
    Non-Controlled/Non-Affiliate Equity Securities                            |  |                      |  |              |                                                     |      |          |            |           |  |        |               |  |   | 12,119        |  |  |                    | 10,844 
|Total
    Non-Controlled/Non-Affiliate Company Investments                          |  |                      |  |              |                                                     |      |          |            |           |  |        |               |  | $ | 423,839       |  |  | $                  | 426,058



10





MONROE CAPITAL CORPORATION



CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

March 31, 2018

(in thousands, except for shares and
units)



|Portfolio Company (a)                                                             |  | SpreadAboveIndex (b) |  | InterestRate |                                                                |      | Maturity |           | Principal |  |        | AmortizedCost |  |   | FairValue (c) |  |  | % of NetAssets (d) |       
|--------------------------------------------------------------------------------- |  | -------------------- |  | ------------ | -------------------------------------------------------------- | ---- | -------- | --------- | --------- |  | ------ | ------------- |  | - | ------------- |  |  | ------------------ | ------
|Non-Controlled Affiliate Company Investments
    (w)                              |  |                      |  |              |                                                                |      |          |           |           |  |        |               |  |   |               |  |  |                    |       
|Senior Secured Loans                                                              |  |                      |  |              |                                                                |      |          |           |           |  |        |               |  |   |               |  |  |                    |       
|Banking, Finance, Insurance
    & Real Estate                                     |  |                      |  |              |                                                                |      |          |           |           |  |        |               |  |   |               |  |  |                    |       
|American Community Homes, Inc.                                                    |  | L+10.00%             |  |              | 11.88                                                          | %    |          | 7/22/2019 |           |  | 7,333  |               |  | $ | 7,272         |  |  | $                  | 7,366 
|American Community Homes, Inc.                                                    |  | L+14.50%             |  |              | 11.88%
                                         Cash/4.50% PIK |      |          | 7/22/2019 |           |  | 4,296  |               |  |   | 4,265         |  |  |                    | 4,334 
|American Community Homes, Inc.                                                    |  | L+14.50%             |  |              | 11.88%
                                         Cash/4.50% PIK |      |          | n/a (x)   |           |  | 549    |               |  |   | 543           |  |  |                    | 549   
|American Community Homes, Inc.                                                    |  | L+10.00%             |  |              | 11.88                                                          | %    |          | 7/22/2019 |           |  | 444    |               |  |   | 436           |  |  |                    | 447   
|American Community Homes, Inc.                                                    |  | L+14.50%             |  |              | 11.88%
                                         Cash/4.50% PIK |      |          | 7/22/2019 |           |  | 231    |               |  |   | 227           |  |  |                    | 233   
|American Community Homes, Inc. (Delayed Draw)(f)
    (g)                          |  | L+10.00%             |  |              | 11.88                                                          | %    |          | 7/22/2019 |           |  | 444    |               |  |   | -             |  |  |                    | -     
|American Community Homes,
    Inc. (Delayed Draw)(f) (g)                          |  | L+14.50%             |  |              | 11.88%
                                         Cash/4.50% PIK |      |          | 7/22/2019 |           |  | 222    |               |  |   | -             |  |  |                    | -     
|                                                                                  |  |                      |  |              |                                                                |      |          |           |           |  | 13,519 |               |  |   | 12,743        |  |  |                    | 12,929
|Consumer Goods: Non-Durable                                                       |  |                      |  |              |                                                                |      |          |           |           |  |        |               |  |   |               |  |  |                    |       
|Millennial Brands LLC                                                             |  | n/a                  |  |              | 12.00%
                                         PIK            | (y)  |          | 8/29/2019 |           |  | 1,157  |               |  |   | 1,157         |  |  |                    | -     
|Millennial Brands LLC                                                             |  | n/a                  |  |              | 15.00%
                                         PIK            | (y)  |          | 8/29/2019 |           |  | 422    |               |  |   | 416           |  |  |                    | -     
|Millennial Brands LLC                                                             |  | n/a                  |  |              | 17.00%
                                         PIK            | (y)  |          | 9/30/2018 |           |  | 235    |               |  |   | 235           |  |  |                    | -     
|Millennial Brands LLC                                                             |  | n/a                  |  |              | 16.50%
                                         PIK            | (y)  |          | 8/29/2019 |           |  | 550    |               |  |   | 534           |  |  |                    | 541   
|                                                                                  |  |                      |  |              |                                                                |      |          |           |           |  | 2,364  |               |  |   | 2,342         |  |  |                    | 541   
|Containers, Packaging &
    Glass                                                 |  |                      |  |              |                                                                |      |          |           |           |  |        |               |  |   |               |  |  |                    |       
|Summit Container Corporation (h)                                                  |  | L+12.00%             |  |              | 12.00%
                                         Cash/2.00% PIK |      |          | 1/6/2019  |           |  | 3,611  |               |  |   | 3,601         |  |  |                    | 3,452 
|Summit Container Corporation
    (h)                                              |  | L+12.00%             |  |              | 12.00%
                                         Cash/2.00% PIK |      |          | 1/6/2019  |           |  | 1,515  |               |  |   | 1,515         |  |  |                    | 1,515 
|                                                                                  |  |                      |  |              |                                                                |      |          |           |           |  | 5,126  |               |  |   | 5,116         |  |  |                    | 4,967 
|Healthcare & Pharmaceuticals                                                      |  |                      |  |              |                                                                |      |          |           |           |  |        |               |  |   |               |  |  |                    |       
|Rockdale Blackhawk, LLC                                                           |  | L+13.00%             |  |              | 14.88                                                          | %    |          | 3/31/2020 |           |  | 10,922 |               |  |   | 10,409        |  |  |                    | 10,687
|Rockdale Blackhawk, LLC (Capex)                                                   |  | L+13.00%             |  |              | 14.88                                                          | %    |          | 3/31/2020 |           |  | 549    |               |  |   | 549           |  |  |                    | 537   
|Rockdale Blackhawk, LLC (Revolver)                                                |  | L+13.00%             |  |              | 14.88                                                          | %    |          | 3/31/2020 |           |  | 1,849  |               |  |   | 1,849         |  |  |                    | 1,805 
|Rockdale Blackhawk, LLC (Revolver)                                                |  | L+13.00%             |  |              | 14.88                                                          | %    |          | 3/31/2020 |           |  | 3,236  |               |  |   | 3,236         |  |  |                    | 3,158 
|Rockdale Blackhawk, LLC (Revolver)                                                |  | L+13.00%             |  |              | 14.88                                                          | %    |          | 3/31/2020 |           |  | 1,387  |               |  |   | 1,387         |  |  |                    | 1,353 
|SHI Holdings, Inc. (h)                                                            |  | L+10.25%             |  |              | 12.13                                                          | %    |          | 7/10/2019 |           |  | 2,618  |               |  |   | 2,605         |  |  |                    | 2,618 
|SHI Holdings, Inc. (Revolver)
    (f)                                             |  | L+10.25%             |  |              | 12.13                                                          | %    |          | 7/10/2019 |           |  | 3,136  |               |  |   | 2,545         |  |  |                    | 2,553 
|                                                                                  |  |                      |  |              |                                                                |      |          |           |           |  | 23,697 |               |  |   | 22,580        |  |  |                    | 22,711
|Retail                                                                            |  |                      |  |              |                                                                |      |          |           |           |  |        |               |  |   |               |  |  |                    |       
|Luxury Optical Holdings Co.                                                       |  | L+8.00%              |  |              | 9.88%
                                         PIK             |      |          | 9/12/2019 |           |  | 4,352  |               |  |   | 4,325         |  |  |                    | 3,858 
|Luxury Optical Holdings Co. (Delayed Draw)
    (f) (g)                            |  | L+11.50%             |  |              | 13.38                                                          | %    |          | 9/12/2019 |           |  | 1,059  |               |  |   | 623           |  |  |                    | 623   
|Luxury Optical Holdings Co. (Revolver)                                            |  | L+8.00%              |  |              | 9.88%
                                         PIK             |      |          | 9/12/2019 |           |  | 201    |               |  |   | 201           |  |  |                    | 178   
|TPP Operating, Inc.                                                               |  | L+6.00%              |  |              | 7.88%
                                         PIK             | (y)  |          | 11/8/2018 |           |  | 9,370  |               |  |   | 9,330         |  |  |                    | -     
|TPP Operating, Inc.                                                               |  | L+6.00%              |  |              | 7.88                                                           | %(y) |          | 11/8/2018 |           |  | 7,672  |               |  |   | 7,630         |  |  |                    | 38    
|TPP Operating, Inc.                                                               |  | L+9.61%              |  |              | 11.49                                                          | %(y) |          | 11/8/2018 |           |  | 4,336  |               |  |   | 4,289         |  |  |                    | 3,610 
|                                                                                  |  |                      |  |              |                                                                |      |          |           |           |  | 26,990 |               |  |   | 26,398        |  |  |                    | 8,307 
|Total
    Non-Controlled Affiliate Senior Secured Loans                           |  |                      |  |              |                                                                |      |          |           |           |  | 71,696 |               |  |   | 69,179        |  |  |                    | 49,455
|                                                                                  |  |                      |  |              |                                                                |      |          |           |           |  |        |               |  |   |               |  |  |                    |       
|Junior Secured Loans                                                              |  |                      |  |              |                                                                |      |          |           |           |  |        |               |  |   |               |  |  |                    |       
|Consumer Goods: Non-Durable                                                       |  |                      |  |              |                                                                |      |          |           |           |  |        |               |  |   |               |  |  |                    |       
|Millennial Brands LLC                                                             |  | n/a                  |  |              | 15.00%
                                         PIK            | (y)  |          | 5/1/2020  |           |  | 2,011  |               |  |   | 2,011         |  |  |                    | -     
|                                                                                  |  |                      |  |              |                                                                |      |          |           |           |  | 2,011  |               |  |   | 2,011         |  |  |                    | -     
|Total
    Non-Controlled Affiliate Company Junior Secured Loans                   |  |                      |  |              |                                                                |      |          |           |           |  | 2,011  |               |  |   | 2,011         |  |  |                    | -     
|                                                                                  |  |                      |  |              |                                                                |      |          |           |           |  |        |               |  |   |               |  |  |                    |       
|Equity Securities (u)                                                             |  |                      |  |              |                                                                |      |          |           |           |  |        |               |  |   |               |  |  |                    |       
|Banking, Finance, Insurance
    & Real Estate                                     |  |                      |  |              |                                                                |      |          |           |           |  |        |               |  |   |               |  |  |                    |       
|American Community Homes,
    Inc. (warrant to purchase up to 9.0% of the equity) |  | -                    |  |              | -                                                              | (v)  |          | 10/9/2024 |           |  | -      |               |  |   | -             |  |  |                    | 227   
|                                                                                  |  |                      |  |              |                                                                |      |          |           |           |  |        |               |  |   | -             |  |  |                    | 227   
|Consumer Goods: Non-Durable                                                       |  |                      |  |              |                                                                |      |          |           |           |  |        |               |  |   |               |  |  |                    |       
|Millennial Brands LLC                                                             |  | -                    |  |              | -                                                              | (v)  |          | -         |           |  | -      |               |  |   | -             |  |  |                    | -     
|Millennial Brands LLC                                                             |  | n/a                  |  |              | 15.00%
                                         PIK            | (y)  |          | -         |           |  | -      |               |  |   | 967           |  |  |                    | -     
|                                                                                  |  |                      |  |              |                                                                |      |          |           |           |  |        |               |  |   | 967           |  |  |                    | -     



11





MONROE CAPITAL CORPORATION



CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

March 31, 2018

(in thousands, except for shares and
units)



|Portfolio Company (a)                                                             |  | SpreadAboveIndex (b) |  | InterestRate |   |     | Maturity |          | Principal |  |   | AmortizedCost |  |   | FairValue (c) |  |  | % of NetAssets (d) |        
|--------------------------------------------------------------------------------- |  | -------------------- |  | ------------ | - | --- | -------- | -------- | --------- |  | - | ------------- |  | - | ------------- |  |  | ------------------ | -------
|Containers, Packaging &
    Glass                                                 |  |                      |  |              |   |     |          |          |           |  |   |               |  |   |               |  |  |                    |        
|Summit Container
    Corporation (warrant to purchase up to 19.50% of the equity) |  | -                    |  |              | - | (v) |          | 1/6/2024 |           |  | - |               |  | $ | -             |  |  | $                  | -      
|                                                                                  |  |                      |  |              |   |     |          |          |           |  |   |               |  |   | -             |  |  |                    | -      
|Healthcare & Pharmaceuticals                                                      |  |                      |  |              |   |     |          |          |           |  |   |               |  |   |               |  |  |                    |        
|Rockdale Blackhawk, LLC - LLC Units (22.65%
    of the LLC interest)              |  | -                    |  |              | - | (v) |          | -        |           |  | - |               |  |   | 1,093         |  |  |                    | 3,342  
|SHI Holdings, Inc. (24
    shares of common stock)                                |  | -                    |  |              | - | (v) |          | -        |           |  | - |               |  |   | 27            |  |  |                    | 619    
|                                                                                  |  |                      |  |              |   |     |          |          |           |  |   |               |  |   | 1,120         |  |  |                    | 3,961  
|Retail                                                                            |  |                      |  |              |   |     |          |          |           |  |   |               |  |   |               |  |  |                    |        
|Luxury Optical Holdings Co. (86 shares of common
    stock)                       |  | -                    |  |              | - | (v) |          | -        |           |  | - |               |  |   | -             |  |  |                    | -      
|TPP Operating, Inc. (24 shares of common stock)                                   |  | -                    |  |              | - | (v) |          | -        |           |  | - |               |  |   | 1,953         |  |  |                    | -      
|TPP Operating, Inc. (16
    shares of common stock) (z)                           |  | -                    |  |              | - | (v) |          | -        |           |  | - |               |  |   | 1,302         |  |  |                    | -      
|                                                                                  |  |                      |  |              |   |     |          |          |           |  |   |               |  |   | 3,255         |  |  |                    | -      
|Total
    Non-Controlled Affiliate Equity Securities                              |  |                      |  |              |   |     |          |          |           |  |   |               |  |   | 5,342         |  |  |                    | 4,188  
|Total
    Non-Controlled Affiliate Company Investments                            |  |                      |  |              |   |     |          |          |           |  |   |               |  | $ | 76,532        |  |  | $                  | 53,643 
|                                                                                  |  |                      |  |              |   |     |          |          |           |  |   |               |  |   |               |  |  |                    |        
|Controlled Affiliate Company Investments (aa)                                     |  |                      |  |              |   |     |          |          |           |  |   |               |  |   |               |  |  |                    |        
|Equity Securities                                                                 |  |                      |  |              |   |     |          |          |           |  |   |               |  |   |               |  |  |                    |        
|Investment Funds &
    Vehicles                                                   |  |                      |  |              |   |     |          |          |           |  |   |               |  |   |               |  |  |                    |        
|MRCC Senior Loan Fund
    I, LLC (e)                                              |  | -                    |  |              | - |     |          | -        |           |  | - |               |  |   | 15,750        |  |  |                    | 16,333 
|Total
    Controlled Affiliate Equity Securities                                  |  |                      |  |              |   |     |          |          |           |  |   |               |  |   | 15,750        |  |  |                    | 16,333 
|Total
    Controlled Affiliate Company Investments                                |  |                      |  |              |   |     |          |          |           |  |   |               |  | $ | 15,750        |  |  | $                  | 16,333 
|                                                                                  |  |                      |  |              |   |     |          |          |           |  |   |               |  |   |               |  |  |                    |        
|TOTAL INVESTMENTS                                                                 |  |                      |  |              |   |     |          |          |           |  |   |               |  | $ | 516,121       |  |  | $                  | 496,034








(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 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 March 31, 2018. Certain investments are
subject to a LIBOR or Prime interest rate floor, or rate cap.

(c) 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 Investment Company Act of 1940. (See Note 4 in the accompanying notes to the consolidated
financial statements.)





12





MONROE CAPITAL CORPORATION



CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

March 31, 2018

(in thousands, except for shares and
units)





(d) Percentages are based on net assets of $273,005 as of March
31, 2018.

(e) 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 March 31, 2018, non-qualifying
assets totaled 14.26% of the Company’s total assets.

(f) All or a portion of this commitment was unfunded at March
31, 2018. 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) 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.

(i) A portion of this loan (principal of $2,086) 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) A portion of the PIK interest rate for Cornerstone Detention
Products, Inc. is structured as a fee paid upon the termination of the commitment. The fee currently accrues at 2.33% per annum.

(k) This investment represents a senior secured note that is
traded in the secondary bond market.

(l) The PIK portion of the interest rate for Landpoint, LLC
is structured as a fee paid upon the termination of the commitment. The fee currently accrues at 2.25% per annum.

(m) This is an international company.

(n) This term loan is denominated in Great Britain pounds and
is translated into U.S. dollars as of the valuation date.

(o) A portion of the PIK interest rate for TRG, LLC is structured
as a fee paid upon the termination of the commitment. The fee currently accrues at 2.60% per annum.

(p) The PIK portion of the interest rate for Peerless Network,
Inc. is structured as a fee paid upon the termination of the commitment. The fee currently accrues at 0.75% per annum.

(q) 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.

(r) A portion of this loan (principal of $5,061) 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) This term loan is subject to a prime rate cap of 1.10%.

(t) Represents less than 5% ownership of the portfolio company’s
voting securities.

(u) Ownership of certain equity investments may occur through
a holding company or partnership.

(v) Represents a non-income producing security.

(w) As defined in the 1940 Act, the Company is deemed to be
an “Affiliated Person” of the portfolio company as it owns five percent 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) This is a demand note with no stated maturity.

(y) This position was on non-accrual status as of March 31,
2018, 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.

(z) This investment is held in a wholly owned entity, MCC Holdco
Equity Manager I, LLC ("MCC Holdco"), which has an independent manager who has full control over the operations of MCC
Holdco, including the right to vote the shares of TPP Holdco LLC, the holding company which owns the Company's equity interest
in TPP. See Note 5 in the accompanying notes to the consolidated financial statements for additional information.

(aa) 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.

(ab) The PIK portion of the interest rate for
Incipio Technologies, Inc. is structured as a fee paid upon the termination of the commitment. The fee currently accrues at
0.55% per annum.

n/a - not applicable



See Notes to Consolidated
Financial Statements.



13







MONROE CAPITAL
CORPORATIONCONSOLIDATED SCHEDULE OF INVESTMENTSDecember 31, 2017(in thousands, except for shares and units)



|Portfolio
    Company (a)                                    |  | SpreadAboveIndex
    (b) |  | InterestRate |                                                                                                         |     | Maturity |            | Principal |  |        | AmortizedCost |  |   | FairValue (c) |  |  | %
    of NetAssets (d) |       
|------------------------------------------------------------ |  | ------------------------ |  | ------------ | ------------------------------------------------------------------------------------------------------- | --- | -------- | ---------- | --------- |  | ------ | ------------- |  | - | ------------- |  |  | ---------------------- | ------
|Non-Controlled/Non-Affiliate
    Company Investments         |  |                          |  |              |                                                                                                         |     |          |            |           |  |        |               |  |   |               |  |  |                        |       
|Senior
    Secured Loans                                     |  |                          |  |              |                                                                                                         |     |          |            |           |  |        |               |  |   |               |  |  |                        |       
|Banking,
    Finance, Insurance & Real Estate                |  |                          |  |              |                                                                                                         |     |          |            |           |  |        |               |  |   |               |  |  |                        |       
|Echelon
    Funding I, LLC (Delayed Draw) (e) (f) (g)        |  | L+10.25%                 |  |              | 11.61                                                                                                   | %   |          | 2/24/2021  |           |  | 15,750 |               |  | $ | 15,415        |  |  | $                      | 15,654
|HFZ
    Capital Group, LLC (e)                               |  | L+10.00%                 |  |              | 11.36                                                                                                   | %   |          | 10/20/2019 |           |  | 18,000 |               |  |   | 17,613        |  |  |                        | 17,991
|Liftforward
    SPV II, LLC (e) (f)                          |  | L+10.75%                 |  |              | 12.32                                                                                                   | %   |          | 11/10/2020 |           |  | 10,000 |               |  |   | 4,212         |  |  |                        | 4,268 
|PKS
    Holdings, LLC (e)                                    |  | L+9.50%                  |  |              | 10.85                                                                                                   | %   |          | 11/30/2022 |           |  | 1,800  |               |  |   | 1,640         |  |  |                        | 1,719 
|PKS
    Holdings, LLC (Revolver) (e) (f)                     |  | L+9.50%                  |  |              | 10.85                                                                                                   | %   |          | 11/30/2022 |           |  | 80     |               |  |   | —             |  |  |                        | —     
|                                                             |  |                          |  |              |                                                                                                         |     |          |            |           |  | 45,630 |               |  |   | 38,880        |  |  |                        | 39,632
|Beverage,
    Food & Tobacco                                 |  |                          |  |              |                                                                                                         |     |          |            |           |  |        |               |  |   |               |  |  |                        |       
|All
    Holding Company, LLC (h)                             |  | L+7.00%                  |  |              | 8.57                                                                                                    | %   |          | 11/15/2021 |           |  | 5,328  |               |  |   | 5,246         |  |  |                        | 5,368 
|California
    Pizza Kitchen, Inc.                           |  | L+6.00%                  |  |              | 7.57                                                                                                    | %   |          | 8/23/2022  |           |  | 6,913  |               |  |   | 6,850         |  |  |                        | 6,791 
|                                                             |  |                          |  |              |                                                                                                         |     |          |            |           |  | 12,241 |               |  |   | 12,096        |  |  |                        | 12,159
|Construction
    & Building                                  |  |                          |  |              |                                                                                                         |     |          |            |           |  |        |               |  |   |               |  |  |                        |       
|Cali
    Bamboo, LLC                                         |  | L+8.00%                  |  |              | 9.57                                                                                                    | %   |          | 7/10/2020  |           |  | 5,319  |               |  |   | 5,266         |  |  |                        | 5,319 
|Cali
    Bamboo, LLC (Revolver) (f)                          |  | L+8.00%                  |  |              | 9.57                                                                                                    | %   |          | 7/10/2020  |           |  | 2,165  |               |  |   | 1,039         |  |  |                        | 1,039 
|Cornerstone
    Detention Products, Inc. (i)                 |  | L+11.83%                 |  |              | 10.07%
                                         Cash/3.33%
                                         PIK | (j) |          | 4/8/2019   |           |  | 3,521  |               |  |   | 3,501         |  |  |                        | 3,500 
|Cornerstone
    Detention Products, Inc. (Revolver) (f)      |  | L+8.50%                  |  |              | 10.07                                                                                                   | %   |          | 4/8/2019   |           |  | 400    |               |  |   | 200           |  |  |                        | 199   
|TRP
    Construction Group, LLC (h)                          |  | L+6.50%                  |  |              | 8.07                                                                                                    | %   |          | 10/5/2022  |           |  | 8,000  |               |  |   | 7,845         |  |  |                        | 7,992 
|TRP
    Construction Group, LLC (Revolver) (f)               |  | L+6.50%                  |  |              | 8.07                                                                                                    | %   |          | 10/5/2022  |           |  | 2,134  |               |  |   | —             |  |  |                        | —     
|                                                             |  |                          |  |              |                                                                                                         |     |          |            |           |  | 21,539 |               |  |   | 17,851        |  |  |                        | 18,049
|Consumer
    Goods: Durable                                  |  |                          |  |              |                                                                                                         |     |          |            |           |  |        |               |  |   |               |  |  |                        |       
|Parterre
    Flooring & Surface Systems, LLC (h)             |  | L+7.25%                  |  |              | 8.82                                                                                                    | %   |          | 8/22/2022  |           |  | 11,850 |               |  |   | 11,625        |  |  |                        | 11,808
|Parterre
    Flooring & Surface Systems, LLC (Revolver) (f)  |  | L+7.25%                  |  |              | 8.82                                                                                                    | %   |          | 8/22/2022  |           |  | 2,400  |               |  |   | —             |  |  |                        | —     
|                                                             |  |                          |  |              |                                                                                                         |     |          |            |           |  | 14,250 |               |  |   | 11,625        |  |  |                        | 11,808
|Consumer
    Goods: Non-Durable                              |  |                          |  |              |                                                                                                         |     |          |            |           |  |        |               |  |   |               |  |  |                        |       
|Bluestem
    Brands, Inc.                                    |  | L+7.50%                  |  |              | 9.07                                                                                                    | %   |          | 11/6/2020  |           |  | 2,597  |               |  |   | 2,581         |  |  |                        | 1,829 
|Gibson
    Brands, Inc. (k)                                  |  | 8.88%                    |  |              | 8.88                                                                                                    | %   |          | 8/1/2018   |           |  | 10,000 |               |  |   | 8,664         |  |  |                        | 8,435 
|Solaray,
    LLC                                             |  | L+6.50%                  |  |              | 8.02                                                                                                    | %   |          | 9/9/2023   |           |  | 3,264  |               |  |   | 3,236         |  |  |                        | 3,264 
|Solaray,
    LLC (Delayed Draw)                              |  | L+6.50%                  |  |              | 8.19                                                                                                    | %   |          | 9/9/2023   |           |  | 699    |               |  |   | 699           |  |  |                        | 699   
|                                                             |  |                          |  |              |                                                                                                         |     |          |            |           |  | 16,560 |               |  |   | 15,180        |  |  |                        | 14,227
|Energy:
    Oil & Gas                                        |  |                          |  |              |                                                                                                         |     |          |            |           |  |        |               |  |   |               |  |  |                        |       
|Landpoint,
    LLC                                           |  | L+12.75%                 |  |              | 12.07%
                                         Cash/2.25%
                                         PIK | (l) |          | 12/20/2019 |           |  | 2,386  |               |  |   | 2,372         |  |  |                        | 2,352 
|Landpoint,
    LLC (Revolver) (f)                            |  | L+10.50%                 |  |              | 12.07                                                                                                   | %   |          | 12/20/2019 |           |  | 313    |               |  |   | —             |  |  |                        | —     
|                                                             |  |                          |  |              |                                                                                                         |     |          |            |           |  | 2,699  |               |  |   | 2,372         |  |  |                        | 2,352 
|Environmental
    Industries                                 |  |                          |  |              |                                                                                                         |     |          |            |           |  |        |               |  |   |               |  |  |                        |       
|Synergy
    Environmental Corporation (h)                    |  | L+8.00%                  |  |              | 9.57                                                                                                    | %   |          | 4/29/2021  |           |  | 3,011  |               |  |   | 2,958         |  |  |                        | 3,036 
|Synergy
    Environmental Corporation (h)                    |  | L+8.00%                  |  |              | 9.57                                                                                                    | %   |          | 4/29/2021  |           |  | 504    |               |  |   | 495           |  |  |                        | 508   
|Synergy
    Environmental Corporation (Delayed Draw) (f) (g) |  | L+8.00%                  |  |              | 9.57                                                                                                    | %   |          | 4/29/2018  |           |  | 1,342  |               |  |   | 859           |  |  |                        | 866   
|Synergy
    Environmental Corporation (Revolver) (f)         |  | L+8.00%                  |  |              | 9.57                                                                                                    | %   |          | 4/29/2021  |           |  | 671    |               |  |   | 47            |  |  |                        | 47    
|                                                             |  |                          |  |              |                                                                                                         |     |          |            |           |  | 5,528  |               |  |   | 4,359         |  |  |                        | 4,457 



See Notes to Consolidated Financial
Statements.



14







MONROE CAPITAL
CORPORATIONCONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)December 31, 2017(in thousands, except for shares and units)



|Portfolio
    Company (a)                                       |  | SpreadAboveIndex
    (b) |  | InterestRate |                                                                                                        |     | Maturity |            | Principal |  |        | AmortizedCost |  |   | FairValue (c) |  |  | %
    of NetAssets (d) |       
|--------------------------------------------------------------- |  | ------------------------ |  | ------------ | ------------------------------------------------------------------------------------------------------ | --- | -------- | ---------- | --------- |  | ------ | ------------- |  | - | ------------- |  |  | ---------------------- | ------
|Healthcare
    & Pharmaceuticals                                |  |                          |  |              |                                                                                                        |     |          |            |           |  |        |               |  |   |               |  |  |                        |       
|American
    Optics Holdco, Inc. (e) (m)                        |  | L+8.00%                  |  |              | 9.57                                                                                                   | %   |          | 9/13/2022  |           |  | 4,133  |               |  | $ | 4,055         |  |  | $                      | 4,136 
|American
    Optics Holdco, Inc. (Revolver) (e) (f) (m)         |  | L+8.00%                  |  |              | 9.57                                                                                                   | %   |          | 9/13/2022  |           |  | 440    |               |  |   | —             |  |  |                        | —     
|American
    Optics Holdco, Inc. (e) (m)                        |  | L+8.00%                  |  |              | 9.57                                                                                                   | %   |          | 9/13/2022  |           |  | 760    |               |  |   | 746           |  |  |                        | 761   
|American
    Optics Holdco, Inc. (Revolver) (e) (f) (m)         |  | L+8.00%                  |  |              | 9.57                                                                                                   | %   |          | 9/13/2022  |           |  | 440    |               |  |   | —             |  |  |                        | —     
|Beaver-Visitec
    International Holdings, Inc.                 |  | L+5.00%                  |  |              | 6.69                                                                                                   | %   |          | 8/19/2023  |           |  | 4,938  |               |  |   | 4,895         |  |  |                        | 4,938 
|Edge
    Systems Holdings Corp.                                 |  | L+7.75%                  |  |              | 9.32                                                                                                   | %   |          | 12/1/2021  |           |  | 3,384  |               |  |   | 3,329         |  |  |                        | 3,445 
|Edge
    Systems Holdings Corp. (Revolver) (f)                  |  | P+6.75%                  |  |              | 11.25                                                                                                  | %   |          | 12/1/2021  |           |  | 260    |               |  |   | —             |  |  |                        | —     
|Familia
    Dental Group Holdings, LLC (h)                      |  | L+8.00%                  |  |              | 9.57                                                                                                   | %   |          | 4/8/2021   |           |  | 5,259  |               |  |   | 5,199         |  |  |                        | 5,322 
|Familia
    Dental Group Holdings, LLC                          |  | L+8.00%                  |  |              | 9.57                                                                                                   | %   |          | 4/8/2021   |           |  | 506    |               |  |   | 506           |  |  |                        | 512   
|Familia
    Dental Group Holdings, LLC (Revolver) (f)           |  | L+8.00%                  |  |              | 9.57                                                                                                   | %   |          | 4/8/2021   |           |  | 573    |               |  |   | 344           |  |  |                        | 344   
|                                                                |  |                          |  |              |                                                                                                        |     |          |            |           |  | 20,693 |               |  |   | 19,074        |  |  |                        | 19,458
|High
    Tech Industries                                        |  |                          |  |              |                                                                                                        |     |          |            |           |  |        |               |  |   |               |  |  |                        |       
|Answers
    Finance, LLC                                        |  | L+5.00%                  |  |              | 6.57                                                                                                   | %   |          | 4/15/2021  |           |  | 253    |               |  |   | 251           |  |  |                        | 249   
|Corbett
    Technology Solutions, Inc. (h)                      |  | L+7.00%                  |  |              | 8.57                                                                                                   | %   |          | 11/7/2021  |           |  | 4,275  |               |  |   | 4,224         |  |  |                        | 4,318 
|Corbett
    Technology Solutions, Inc. (Revolver) (f)           |  | L+7.00%                  |  |              | 8.57                                                                                                   | %   |          | 11/7/2021  |           |  | 867    |               |  |   | 607           |  |  |                        | 607   
|Energy
    Services Group, LLC                                  |  | L+9.82%                  |  |              | 11.39                                                                                                  | %   |          | 5/4/2022   |           |  | 4,620  |               |  |   | 4,568         |  |  |                        | 4,678 
|Energy
    Services Group, LLC (e) (n)                          |  | L+9.82%                  |  |              | 10.82                                                                                                  | %   |          | 5/4/2022   |           |  | 2,495  |               |  |   | 2,361         |  |  |                        | 2,509 
|Energy
    Services Group, LLC (Delayed Draw) (f) (g)           |  | L+9.82%                  |  |              | 11.39                                                                                                  | %   |          | 5/4/2022   |           |  | 1,313  |               |  |   | 1,096         |  |  |                        | 1,126 
|Newforma,
    Inc. (h)                                          |  | L+7.50%                  |  |              | 9.19                                                                                                   | %   |          | 6/30/2022  |           |  | 14,962 |               |  |   | 14,754        |  |  |                        | 15,060
|Newforma,
    Inc. (Revolver) (f)                               |  | L+7.50%                  |  |              | 9.19                                                                                                   | %   |          | 6/30/2022  |           |  | 1,250  |               |  |   | —             |  |  |                        | —     
|Prototek
    Sheetmetal Fabrication, LLC                        |  | L+7.50%                  |  |              | 9.07                                                                                                   | %   |          | 12/12/2022 |           |  | 3,500  |               |  |   | 3,430         |  |  |                        | 3,430 
|Prototek
    Sheetmetal Fabrication, LLC (Delayed Draw) (f) (g) |  | L+7.50%                  |  |              | 9.07                                                                                                   | %   |          | 12/12/2022 |           |  | 2,334  |               |  |   | —             |  |  |                        | —     
|Prototek
    Sheetmetal Fabrication, LLC (Revolver) (f)         |  | L+7.50%                  |  |              | 9.07                                                                                                   | %   |          | 12/12/2022 |           |  | 233    |               |  |   | —             |  |  |                        | —     
|RPL
    Bidco Limited (e) (m) (n)                               |  | L+7.50%                  |  |              | 8.02                                                                                                   | %   |          | 11/9/2023  |           |  | 9,459  |               |  |   | 9,057         |  |  |                        | 9,516 
|RPL
    Bidco Limited(Revolver) (e) (f) (m)
    (n)             |  | L+7.50%                  |  |              | 8.02                                                                                                   | %   |          | 11/9/2023  |           |  | 540    |               |  |   | —             |  |  |                        | —     
|                                                                |  |                          |  |              |                                                                                                        |     |          |            |           |  | 46,101 |               |  |   | 40,348        |  |  |                        | 41,493
|Hotels,
    Gaming & Leisure                                    |  |                          |  |              |                                                                                                        |     |          |            |           |  |        |               |  |   |               |  |  |                        |       
|BC
    Equity Ventures LLC                                      |  | L+6.50%                  |  |              | 8.07                                                                                                   | %   |          | 8/31/2022  |           |  | 2,586  |               |  |   | 2,543         |  |  |                        | 2,624 
|Miles
    Partnership LLC                                       |  | L+8.50%                  |  |              | 10.19                                                                                                  | %   |          | 3/24/2021  |           |  | 5,946  |               |  |   | 5,910         |  |  |                        | 6,005 
|Miles
    Partnership LLC (Delayed Draw) (f) (g)                |  | L+8.50%                  |  |              | 10.19                                                                                                  | %   |          | 3/24/2021  |           |  | 1,422  |               |  |   | 1,074         |  |  |                        | 1,085 
|Miles
    Partnership LLC (Revolver) (f)                        |  | L+8.50%                  |  |              | 10.19                                                                                                  | %   |          | 3/24/2021  |           |  | 320    |               |  |   | —             |  |  |                        | —     
|TRG,
    LLC                                                    |  | L+12.42%                 |  |              | 8.86%
                                         Cash/4.92%
                                         PIK | (o) |          | 3/31/2021  |           |  | 17,088 |               |  |   | 17,000        |  |  |                        | 17,190
|TRG,
    LLC (CapEx) (f)                                        |  | L+9.50%                  |  |              | 8.86%
                                         Cash/2.00%
                                         PIK |     |          | 3/31/2021  |           |  | 1,629  |               |  |   | 1,340         |  |  |                        | 1,354 
|TRG,
    LLC (Revolver) (f)                                     |  | L+9.50%                  |  |              | 10.86                                                                                                  | %   |          | 3/31/2021  |           |  | 262    |               |  |   | 131           |  |  |                        | 131   
|Vacation
    Innovations, LLC (p)                               |  | L+9.31%                  |  |              | 8.57%
                                         Cash/2.31%
                                         PIK | (q) |          | 8/20/2020  |           |  | 9,282  |               |  |   | 9,170         |  |  |                        | 10,040
|Vacation
    Innovations, LLC (Delayed Draw) (f) (g)            |  | L+7.50%                  |  |              | 8.57%
                                         Cash/0.50%
                                         PIK |     |          | 8/20/2020  |           |  | 2,037  |               |  |   | —             |  |  |                        | —     
|Vacation
    Innovations, LLC (Revolver)                        |  | L+7.50%                  |  |              | 8.57%
                                         Cash/0.50%
                                         PIK |     |          | 8/20/2020  |           |  | 342    |               |  |   | 342           |  |  |                        | 342   
|                                                                |  |                          |  |              |                                                                                                        |     |          |            |           |  | 40,914 |               |  |   | 37,510        |  |  |                        | 38,771



See Notes to Consolidated Financial
Statements.



15







MONROE CAPITAL CORPORATIONCONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)December 31, 2017(in thousands, except for shares and units)



|Portfolio
    Company (a)                                                    |  | SpreadAboveIndex
    (b) |  | InterestRate |                                                                                                        |     | Maturity |            | Principal |  |        | AmortizedCost |  |   | FairValue (c) |  |  | %
    of NetAssets (d) |       
|---------------------------------------------------------------------------- |  | ------------------------ |  | ------------ | ------------------------------------------------------------------------------------------------------ | --- | -------- | ---------- | --------- |  | ------ | ------------- |  | - | ------------- |  |  | ---------------------- | ------
|Media:
    Advertising, Printing & Publishing                                |  |                          |  |              |                                                                                                        |     |          |            |           |  |        |               |  |   |               |  |  |                        |       
|AdTheorent,
    Inc.                                                         |  | L+8.50%                  |  |              | 9.86                                                                                                   | %   |          | 12/22/2021 |           |  | 4,906  |               |  | $ | 4,824         |  |  | $                      | 4,937 
|Destination
    Media, Inc. (h)                                              |  | L+6.50%                  |  |              | 8.07                                                                                                   | %   |          | 4/7/2022   |           |  | 7,850  |               |  |   | 7,747         |  |  |                        | 7,991 
|Destination
    Media, Inc. (Revolver) (f)                                   |  | L+6.50%                  |  |              | 8.07                                                                                                   | %   |          | 4/7/2022   |           |  | 542    |               |  |   | —             |  |  |                        | —     
|MC
    Sign Lessor Corp.                                                     |  | L+7.00%                  |  |              | 8.53                                                                                                   | %   |          | 12/22/2022 |           |  | 10,000 |               |  |   | 9,801         |  |  |                        | 9,800 
|MC
    Sign Lessor Corp. (Delayed Draw) (f) (g)                              |  | L+7.00%                  |  |              | 8.53                                                                                                   | %   |          | 12/22/2022 |           |  | 2,083  |               |  |   | —             |  |  |                        | —     
|MC
    Sign Lessor Corp. (Revolver) (f)                                      |  | L+7.00%                  |  |              | 8.53                                                                                                   | %   |          | 12/22/2022 |           |  | 625    |               |  |   | 146           |  |  |                        | 146   
|                                                                             |  |                          |  |              |                                                                                                        |     |          |            |           |  | 26,006 |               |  |   | 22,518        |  |  |                        | 22,874
|Media:
    Broadcasting & Subscription                                       |  |                          |  |              |                                                                                                        |     |          |            |           |  |        |               |  |   |               |  |  |                        |       
|Jerry
    Lee Radio, LLC                                                     |  | L+9.50%                  |  |              | 11.07                                                                                                  | %   |          | 12/17/2020 |           |  | 11,443 |               |  |   | 11,256        |  |  |                        | 11,443
|                                                                             |  |                          |  |              |                                                                                                        |     |          |            |           |  | 11,443 |               |  |   | 11,256        |  |  |                        | 11,443
|Retail                                                                       |  |                          |  |              |                                                                                                        |     |          |            |           |  |        |               |  |   |               |  |  |                        |       
|Forman
    Mills, Inc. (h)                                                   |  | L+7.50%                  |  |              | 9.07                                                                                                   | %   |          | 10/4/2021  |           |  | 8,479  |               |  |   | 8,345         |  |  |                        | 8,441 
|LuLu's
    Fashion Lounge, LLC                                               |  | L+7.00%                  |  |              | 8.57                                                                                                   | %   |          | 8/28/2022  |           |  | 4,906  |               |  |   | 4,767         |  |  |                        | 5,004 
|The
    Worth Collection, Ltd. (h)                                           |  | L+8.50%                  |  |              | 10.07                                                                                                  | %   |          | 9/29/2021  |           |  | 10,587 |               |  |   | 10,421        |  |  |                        | 9,206 
|Yandy
    Holding, LLC                                                       |  | L+9.00%                  |  |              | 10.57                                                                                                  | %   |          | 9/30/2019  |           |  | 4,508  |               |  |   | 4,480         |  |  |                        | 4,366 
|Yandy
    Holding, LLC (Revolver) (f)                                        |  | L+9.00%                  |  |              | 10.57                                                                                                  | %   |          | 9/30/2019  |           |  | 907    |               |  |   | 106           |  |  |                        | 102   
|                                                                             |  |                          |  |              |                                                                                                        |     |          |            |           |  | 29,387 |               |  |   | 28,119        |  |  |                        | 27,119
|Services:
    Business                                                       |  |                          |  |              |                                                                                                        |     |          |            |           |  |        |               |  |   |               |  |  |                        |       
|APCO
    Worldwide, Inc.                                                     |  | L+8.00%                  |  |              | 9.57                                                                                                   | %   |          | 6/30/2022  |           |  | 5,000  |               |  |   | 4,908         |  |  |                        | 5,025 
|Burroughs,
    Inc. (h)                                                      |  | L+7.50%                  |  |              | 9.03                                                                                                   | %   |          | 12/22/2022 |           |  | 6,000  |               |  |   | 5,910         |  |  |                        | 5,910 
|Burroughs,
    Inc. (Revolver) (f)                                           |  | L+7.50%                  |  |              | 9.07                                                                                                   | %   |          | 12/22/2022 |           |  | 750    |               |  |   | 75            |  |  |                        | 75    
|Curion
    Holdings, LLC (h)                                                 |  | L+7.00%                  |  |              | 8.57                                                                                                   | %   |          | 5/2/2022   |           |  | 3,884  |               |  |   | 3,832         |  |  |                        | 3,841 
|Curion
    Holdings, LLC (Revolver) (f)                                      |  | L+7.00%                  |  |              | 8.57                                                                                                   | %   |          | 5/2/2022   |           |  | 308    |               |  |   | 77            |  |  |                        | 76    
|EB
    Employee Solutions, LLC (h)                                           |  | L+8.50%                  |  |              | 10.07                                                                                                  | %   |          | 2/28/2019  |           |  | 3,195  |               |  |   | 3,168         |  |  |                        | 3,115 
|First
    Call Resolution, LLC (h)                                           |  | L+7.00%                  |  |              | 8.36                                                                                                   | %   |          | 9/22/2022  |           |  | 5,000  |               |  |   | 4,916         |  |  |                        | 5,002 
|Madison
    Logic, Inc. (h)                                                  |  | L+8.00%                  |  |              | 9.57                                                                                                   | %   |          | 11/30/2021 |           |  | 10,237 |               |  |   | 10,069        |  |  |                        | 10,289
|Madison
    Logic, Inc. (Delayed Draw) (f) (g)                               |  | L+8.00%                  |  |              | 9.57                                                                                                   | %   |          | 11/30/2021 |           |  | 4,818  |               |  |   | —             |  |  |                        | —     
|Madison
    Logic, Inc. (Revolver) (f)                                       |  | L+8.00%                  |  |              | 9.57                                                                                                   | %   |          | 11/30/2021 |           |  | 988    |               |  |   | —             |  |  |                        | —     
|                                                                             |  |                          |  |              |                                                                                                        |     |          |            |           |  | 40,180 |               |  |   | 32,955        |  |  |                        | 33,333
|Services:
    Consumer                                                       |  |                          |  |              |                                                                                                        |     |          |            |           |  |        |               |  |   |               |  |  |                        |       
|PeopleConnect
    Intermediate, LLC (formerly Intelius, Inc.)                |  | L+6.50%                  |  |              | 7.84                                                                                                   | %   |          | 7/1/2020   |           |  | 4,518  |               |  |   | 4,462         |  |  |                        | 4,538 
|PeopleConnect
    Intermediate, LLC (formerly Intelius, Inc.)                |  | L+12.50%                 |  |              | 13.84                                                                                                  | %   |          | 7/1/2020   |           |  | 4,759  |               |  |   | 4,697         |  |  |                        | 4,756 
|PeopleConnect
    Intermediate, LLC (formerly Intelius, Inc.) (Revolver) (f) |  | L+9.50%                  |  |              | 11.10                                                                                                  | %   |          | 8/11/2020  |           |  | 236    |               |  |   | 118           |  |  |                        | 118   
|                                                                             |  |                          |  |              |                                                                                                        |     |          |            |           |  | 9,513  |               |  |   | 9,277         |  |  |                        | 9,412 
|Telecommunications                                                           |  |                          |  |              |                                                                                                        |     |          |            |           |  |        |               |  |   |               |  |  |                        |       
|Peerless
    Network, Inc. (h)                                               |  | L+9.25%                  |  |              | 9.86%
                                         Cash/0.75%
                                         PIK | (r) |          | 12/11/2020 |           |  | 3,139  |               |  |   | 3,089         |  |  |                        | 3,152 
|                                                                             |  |                          |  |              |                                                                                                        |     |          |            |           |  | 3,139  |               |  |   | 3,089         |  |  |                        | 3,152 
|Utilities:
    Electric                                                      |  |                          |  |              |                                                                                                        |     |          |            |           |  |        |               |  |   |               |  |  |                        |       
|CRCI
    Holdings, Inc.                                                      |  | L+5.50%                  |  |              | 7.19                                                                                                   | %   |          | 8/31/2023  |           |  | 2,782  |               |  |   | 2,759         |  |  |                        | 2,792 
|                                                                             |  |                          |  |              |                                                                                                        |     |          |            |           |  | 2,782  |               |  |   | 2,759         |  |  |                        | 2,792 
|Wholesale                                                                    |  |                          |  |              |                                                                                                        |     |          |            |           |  |        |               |  |   |               |  |  |                        |       
|Mid-West
    Wholesale Hardware Co. (h)                                      |  | L+8.00%                  |  |              | 9.57                                                                                                   | %   |          | 2/9/2022   |           |  | 16,568 |               |  |   | 16,277        |  |  |                        | 16,544
|Mid-West
    Wholesale Hardware Co. (Revolver) (f)                           |  | L+8.00%                  |  |              | 9.57                                                                                                   | %   |          | 2/9/2022   |           |  | 4,421  |               |  |   | —             |  |  |                        | —     



See Notes to Consolidated Financial
Statements.



16







MONROE CAPITAL CORPORATIONCONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)December 31, 2017(in thousands, except for shares and units)



|Portfolio
    Company (a)                                       |  | SpreadAboveIndex
    (b) |  | InterestRate |                                                                                                         |       | Maturity |            | Principal |  |         | AmortizedCost |  |   | FairValue (c) |  |  | %
    of NetAssets (d) |        
|--------------------------------------------------------------- |  | ------------------------ |  | ------------ | ------------------------------------------------------------------------------------------------------- | ----- | -------- | ---------- | --------- |  | ------- | ------------- |  | - | ------------- |  |  | ---------------------- | -------
|Nearly
    Natural, Inc. (h)                                    |  | L+7.00%                  |  |              | 8.59                                                                                                    | %     |          | 12/15/2022 |           |  | 7,000   |               |  | $ | 6,861         |  |  | $                      | 6,860  
|Nearly
    Natural, Inc. (Revolver) (f)                         |  | L+7.00%                  |  |              | 8.59                                                                                                    | %     |          | 12/15/2022 |           |  | 1,522   |               |  |   | —             |  |  |                        | —      
|                                                                |  |                          |  |              |                                                                                                         |       |          |            |           |  | 29,511  |               |  |   | 23,138        |  |  |                        | 23,404 
|Total
    Non-Controlled/Non-Affiliate Senior Secured Loans     |  |                          |  |              |                                                                                                         |       |          |            |           |  | 378,116 |               |  |   | 332,406       |  |  |                        | 335,935
|Unitranche
    Secured Loans (ab)                               |  |                          |  |              |                                                                                                         |       |          |            |           |  |         |               |  |   |               |  |  |                        |        
|Chemicals,
    Plastics & Rubber                                |  |                          |  |              |                                                                                                         |       |          |            |           |  |         |               |  |   |               |  |  |                        |        
|MFG
    Chemical, LLC (h)                                       |  | L+6.00%                  |  |              | 7.57                                                                                                    | %     |          | 6/23/2022  |           |  | 8,856   |               |  |   | 8,734         |  |  |                        | 8,860  
|                                                                |  |                          |  |              |                                                                                                         |       |          |            |           |  | 8,856   |               |  |   | 8,734         |  |  |                        | 8,860  
|Consumer
    Goods: Non-Durable                                 |  |                          |  |              |                                                                                                         |       |          |            |           |  |         |               |  |   |               |  |  |                        |        
|Incipio
    Technologies, Inc. (s)                              |  | L+7.75%                  |  |              | 9.32                                                                                                    | %     |          | 12/26/2019 |           |  | 12,209  |               |  |   | 12,063        |  |  |                        | 11,769 
|                                                                |  |                          |  |              |                                                                                                         |       |          |            |           |  | 12,209  |               |  |   | 12,063        |  |  |                        | 11,769 
|Healthcare
    & Pharmaceuticals                                |  |                          |  |              |                                                                                                         |       |          |            |           |  |         |               |  |   |               |  |  |                        |        
|Collaborative
    Neuroscience Network, LLC                     |  | L+11.50%                 |  |              | 13.07                                                                                                   | %     |          | 4/27/2018  |           |  | 6,120   |               |  |   | 6,076         |  |  |                        | 5,912  
|Collaborative
    Neuroscience Network, LLC                     |  | L+15.00%                 |  |              | 12.00%
                                         Cash/3.00%
                                         PIK |       |          | 4/27/2018  |           |  | 295     |               |  |   | 295           |  |  |                        | 295    
|Collaborative
    Neuroscience Network, LLC (Revolver)          |  | L+10.00%                 |  |              | 11.57                                                                                                   | %     |          | 4/27/2018  |           |  | 200     |               |  |   | 191           |  |  |                        | 195    
|Priority
    Ambulance, LLC (h)                                 |  | L+6.50%                  |  |              | 8.19                                                                                                    | %     |          | 4/12/2022  |           |  | 9,258   |               |  |   | 9,088         |  |  |                        | 9,309  
|Priority
    Ambulance, LLC (Delayed Draw) (f) (g)              |  | L+6.50%                  |  |              | 8.19                                                                                                    | %     |          | 4/12/2022  |           |  | 677     |               |  |   | —             |  |  |                        | —      
|                                                                |  |                          |  |              |                                                                                                         |       |          |            |           |  | 16,550  |               |  |   | 15,650        |  |  |                        | 15,711 
|Hotels,
    Gaming & Leisure                                    |  |                          |  |              |                                                                                                         |       |          |            |           |  |         |               |  |   |               |  |  |                        |        
|Playtime,
    LLC                                               |  | L+7.50%                  |  |              | 9.07                                                                                                    | %     |          | 12/31/2021 |           |  | 4,214   |               |  |   | 4,214         |  |  |                        | 3,955  
|                                                                |  |                          |  |              |                                                                                                         |       |          |            |           |  | 4,214   |               |  |   | 4,214         |  |  |                        | 3,955  
|Total
    Non-Controlled/Non-Affiliate Unitranche Secured Loans |  |                          |  |              |                                                                                                         |       |          |            |           |  | 41,829  |               |  |   | 40,661        |  |  |                        | 40,295 
|Junior
    Secured Loans                                        |  |                          |  |              |                                                                                                         |       |          |            |           |  |         |               |  |   |               |  |  |                        |        
|Aerospace
    & Defense                                         |  |                          |  |              |                                                                                                         |       |          |            |           |  |         |               |  |   |               |  |  |                        |        
|AIM
    Aerospace, Inc.                                         |  | L+9.00%                  |  |              | 10.38                                                                                                   | %     |          | 8/2/2022   |           |  | 5,000   |               |  |   | 4,943         |  |  |                        | 5,000  
|                                                                |  |                          |  |              |                                                                                                         |       |          |            |           |  | 5,000   |               |  |   | 4,943         |  |  |                        | 5,000  
|Banking,
    Finance, Insurance & Real Estate                   |  |                          |  |              |                                                                                                         |       |          |            |           |  |         |               |  |   |               |  |  |                        |        
|Confie
    Seguros Holdings II Co.                              |  | L+9.50%                  |  |              | 10.98                                                                                                   | %     |          | 5/8/2019   |           |  | 8,594   |               |  |   | 8,361         |  |  |                        | 8,336  
|                                                                |  |                          |  |              |                                                                                                         |       |          |            |           |  | 8,594   |               |  |   | 8,361         |  |  |                        | 8,336  
|Beverage,
    Food & Tobacco                                    |  |                          |  |              |                                                                                                         |       |          |            |           |  |         |               |  |   |               |  |  |                        |        
|CSM
    Bakery Supplies LLC                                     |  | L+7.75%                  |  |              | 9.08                                                                                                    | %     |          | 7/3/2021   |           |  | 5,792   |               |  |   | 5,792         |  |  |                        | 5,611  
|                                                                |  |                          |  |              |                                                                                                         |       |          |            |           |  | 5,792   |               |  |   | 5,792         |  |  |                        | 5,611  
|Healthcare
    & Pharmaceuticals                                |  |                          |  |              |                                                                                                         |       |          |            |           |  |         |               |  |   |               |  |  |                        |        
|Heartland
    Dental, LLC                                       |  | L+8.50%                  |  |              | 9.75                                                                                                    | %     |          | 7/31/2024  |           |  | 3,000   |               |  |   | 2,956         |  |  |                        | 3,034  
|                                                                |  |                          |  |              |                                                                                                         |       |          |            |           |  | 3,000   |               |  |   | 2,956         |  |  |                        | 3,034  
|High
    Tech Industries                                        |  |                          |  |              |                                                                                                         |       |          |            |           |  |         |               |  |   |               |  |  |                        |        
|Answers
    Finance, LLC                                        |  | P+7.90%                  |  |              | 9.00                                                                                                    | %(ac) |          | 9/15/2021  |           |  | 394     |               |  |   | 392           |  |  |                        | 386    
|Micro
    Holdings Corp.                                        |  | L+7.50%                  |  |              | 9.09                                                                                                    | %     |          | 8/18/2025  |           |  | 3,000   |               |  |   | 2,971         |  |  |                        | 3,021  
|                                                                |  |                          |  |              |                                                                                                         |       |          |            |           |  | 3,394   |               |  |   | 3,363         |  |  |                        | 3,407  
|Media:
    Broadcasting & Subscription                          |  |                          |  |              |                                                                                                         |       |          |            |           |  |         |               |  |   |               |  |  |                        |        
|Mergermarket
    Bidco Limited                                  |  | L+7.25%                  |  |              | 8.71                                                                                                    | %     |          | 8/3/2025   |           |  | 4,500   |               |  |   | 4,456         |  |  |                        | 4,522  
|                                                                |  |                          |  |              |                                                                                                         |       |          |            |           |  | 4,500   |               |  |   | 4,456         |  |  |                        | 4,522  



See Notes to Consolidated Financial
Statements.



17







MONROE CAPITAL
CORPORATIONCONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)December 31, 2017(in thousands, except for shares and units)



|Portfolio
    Company (a)                                                           |  | SpreadAboveIndex
    (b) |  | InterestRate |                                                     |     | Maturity |            | Principal |  |        | AmortizedCost |  |   | FairValue (c) |  |  | %
    of NetAssets (d) |       
|----------------------------------------------------------------------------------- |  | ------------------------ |  | ------------ | --------------------------------------------------- | --- | -------- | ---------- | --------- |  | ------ | ------------- |  | - | ------------- |  |  | ---------------------- | ------
|Media:
    Diversified & Production                                                 |  |                          |  |              |                                                     |     |          |            |           |  |        |               |  |   |               |  |  |                        |       
|The
    Octave Music Group, Inc. (fka SCP TPZ Acquisition, Inc.)                    |  | L+8.25%                  |  |              | 9.62                                                | %   |          | 5/29/2022  |           |  | 5,000  |               |  | $ | 4,947         |  |  | $                      | 5,006 
|                                                                                    |  |                          |  |              |                                                     |     |          |            |           |  | 5,000  |               |  |   | 4,947         |  |  |                        | 5,006 
|Services:
    Consumer                                                              |  |                          |  |              |                                                     |     |          |            |           |  |        |               |  |   |               |  |  |                        |       
|Education
    Corporation of America                                                |  | L+11.00%                 |  |              | 12.69                                               | %   |          | 12/31/2018 |           |  | 625    |               |  |   | 620           |  |  |                        | 625   
|Pre-Paid
    Legal Services, Inc. (Legal Shield)                                    |  | L+9.00%                  |  |              | 10.57                                               | %   |          | 7/1/2020   |           |  | 3,000  |               |  |   | 3,000         |  |  |                        | 3,008 
|                                                                                    |  |                          |  |              |                                                     |     |          |            |           |  | 3,625  |               |  |   | 3,620         |  |  |                        | 3,633 
|Total
    Non-Controlled/Non-Affiliate Junior Secured Loans                         |  |                          |  |              |                                                     |     |          |            |           |  | 38,905 |               |  |   | 38,438        |  |  |                        | 38,549
|Equity
    Securities (t) (u)                                                       |  |                          |  |              |                                                     |     |          |            |           |  |        |               |  |   |               |  |  |                        |       
|Banking,
    Finance, Insurance & Real Estate                                       |  |                          |  |              |                                                     |     |          |            |           |  |        |               |  |   |               |  |  |                        |       
|PKS
    Holdings, LLC (warrant to purchase 14,247 class A preferred units) (e)      |  | —                        |  |              | —                                                   | (v) |          | 11/30/2027 |           |  | —      |               |  |   | 116           |  |  |                        | 119   
|                                                                                    |  |                          |  |              |                                                     |     |          |            |           |  |        |               |  |   | 116           |  |  |                        | 119   
|Healthcare
    & Pharmaceuticals                                                    |  |                          |  |              |                                                     |     |          |            |           |  |        |               |  |   |               |  |  |                        |       
|Collaborative
    Neuroscience Network, LLC (warrant to purchase up to 2 LLC units) |  | —                        |  |              | —                                                   | (v) |          | 12/27/2022 |           |  | —      |               |  |   | —             |  |  |                        | —     
|Collaborative
    Neuroscience Network, LLC (warrant to purchase up to 2 LLC units) |  | —                        |  |              | —                                                   | (v) |          | 12/31/2027 |           |  | —      |               |  |   | —             |  |  |                        | —     
|                                                                                    |  |                          |  |              |                                                     |     |          |            |           |  |        |               |  |   | —             |  |  |                        | —     
|High
    Tech Industries                                                            |  |                          |  |              |                                                     |     |          |            |           |  |        |               |  |   |               |  |  |                        |       
|Answers
    Finance, LLC (76,539 shares of common stock)                            |  | —                        |  |              | —                                                   | (v) |          | —          |           |  | —      |               |  |   | 2,413         |  |  |                        | 1,339 
|                                                                                    |  |                          |  |              |                                                     |     |          |            |           |  |        |               |  |   | 2,413         |  |  |                        | 1,339 
|Hotels,
    Gaming & Leisure                                                        |  |                          |  |              |                                                     |     |          |            |           |  |        |               |  |   |               |  |  |                        |       
|Playtime,
    LLC – Preferred Units (8,665 units)                                   |  | —                        |  |              | —                                                   | (v) |          | —          |           |  | —      |               |  |   | 200           |  |  |                        | 18    
|                                                                                    |  |                          |  |              |                                                     |     |          |            |           |  |        |               |  |   | 200           |  |  |                        | 18    
|Media:
    Advertising, Printing & Publishing                                       |  |                          |  |              |                                                     |     |          |            |           |  |        |               |  |   |               |  |  |                        |       
|AdTheorent,
    Inc. (128,866 class A voting units)                                 |  | —                        |  |              | —                                                   | (v) |          | —          |           |  | —      |               |  |   | 129           |  |  |                        | 171   
|InMobi
    Pte, Ltd. (represents the right to purchase 2.80% of the equity) (e) (m) |  | —                        |  |              | —                                                   | (v) |          | 9/18/2025  |           |  | —      |               |  |   | —             |  |  |                        | 219   
|                                                                                    |  |                          |  |              |                                                     |     |          |            |           |  |        |               |  |   | 129           |  |  |                        | 390   
|Retail                                                                              |  |                          |  |              |                                                     |     |          |            |           |  |        |               |  |   |               |  |  |                        |       
|The
    Tie Bar Operating Company, LLC – Class A Preferred Units (1,275 units)      |  | —                        |  |              | —                                                   |     |          | —          |           |  | —      |               |  |   | 86            |  |  |                        | 122   
|The
    Tie Bar Operating Company, LLC –  Class B Preferred Units (1,275 units)     |  | —                        |  |              | —                                                   |     |          | —          |           |  | —      |               |  |   | 1             |  |  |                        | —     
|                                                                                    |  |                          |  |              |                                                     |     |          |            |           |  |        |               |  |   | 87            |  |  |                        | 122   
|Services:
    Business                                                              |  |                          |  |              |                                                     |     |          |            |           |  |        |               |  |   |               |  |  |                        |       
|APCO
    Worldwide, Inc. (100 class A voting common stock)                          |  | —                        |  |              | —                                                   | (v) |          | —          |           |  | —      |               |  |   | 395           |  |  |                        | 399   
|                                                                                    |  |                          |  |              |                                                     |     |          |            |           |  |        |               |  |   | 395           |  |  |                        | 399   
|Services:
    Consumer                                                              |  |                          |  |              |                                                     |     |          |            |           |  |        |               |  |   |               |  |  |                        |       
|Education
    Corporation of America –  Series G Preferred Stock (8,333 shares)     |  | n/a                      |  |              | 12.00%
                                         PIK |     |          | —          |           |  | —      |               |  |   | 8,366         |  |  |                        | 8,429 
|                                                                                    |  |                          |  |              |                                                     |     |          |            |           |  |        |               |  |   | 8,366         |  |  |                        | 8,429 



See Notes to Consolidated Financial
Statements.



18







MONROE CAPITAL CORPORATIONCONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)December 31, 2017(in thousands, except for shares and units)



|Portfolio
    Company (a)                                  |  | SpreadAboveIndex
    (b) |  | InterestRate |                                                                                                         |     | Maturity |           | Principal |  |        | AmortizedCost |  |   | FairValue (c) |  |  | %
    of NetAssets (d) |        
|---------------------------------------------------------- |  | ------------------------ |  | ------------ | ------------------------------------------------------------------------------------------------------- | --- | -------- | --------- | --------- |  | ------ | ------------- |  | - | ------------- |  |  | ---------------------- | -------
|Wholesale                                                  |  |                          |  |              |                                                                                                         |     |          |           |           |  |        |               |  |   |               |  |  |                        |        
|Nearly
    Natural, Inc. (152,174 class A units)           |  | —                        |  |              | —                                                                                                       | (v) |          | —         |           |  | —      |               |  | $ | 152           |  |  | $                      | 152    
|                                                           |  |                          |  |              |                                                                                                         |     |          |           |           |  |        |               |  |   | 152           |  |  |                        | 152    
|Total
    Non-Controlled/Non-Affiliate Equity Securities   |  |                          |  |              |                                                                                                         |     |          |           |           |  |        |               |  |   | 11,858        |  |  |                        | 10,968 
|Total
    Non-Controlled/Non-Affiliate Company Investments |  |                          |  |              |                                                                                                         |     |          |           |           |  |        |               |  | $ | 423,363       |  |  | $                      | 425,747
|Non-Controlled
    Affiliate Company Investments (w)       |  |                          |  |              |                                                                                                         |     |          |           |           |  |        |               |  |   |               |  |  |                        |        
|Senior
    Secured Loans                                   |  |                          |  |              |                                                                                                         |     |          |           |           |  |        |               |  |   |               |  |  |                        |        
|Banking,
    Finance, Insurance & Real Estate              |  |                          |  |              |                                                                                                         |     |          |           |           |  |        |               |  |   |               |  |  |                        |        
|American
    Community Homes, Inc.                         |  | L+8.00%                  |  |              | 9.57                                                                                                    | %   |          | 7/22/2019 |           |  | 7,667  |               |  |   | 7,592         |  |  |                        | 7,441  
|American
    Community Homes, Inc.                         |  | L+12.50%                 |  |              | 9.57%
                                         Cash/4.50%
                                         PIK  |     |          | 7/22/2019 |           |  | 4,413  |               |  |   | 4,376         |  |  |                        | 4,329  
|American
    Community Homes, Inc.                         |  | L+12.50%                 |  |              | 9.57%
                                         Cash/4.50%
                                         PIK  |     |          | n/a (x)   |           |  | 542    |               |  |   | 536           |  |  |                        | 542    
|American
    Community Homes, Inc.                         |  | L+8.00%                  |  |              | 9.57                                                                                                    | %   |          | 7/22/2019 |           |  | 444    |               |  |   | 435           |  |  |                        | 431    
|American
    Community Homes, Inc.                         |  | L+12.50%                 |  |              | 9.57%
                                         Cash/4.50%
                                         PIK  |     |          | 7/22/2019 |           |  | 228    |               |  |   | 223           |  |  |                        | 224    
|American
    Community Homes, Inc. (Delayed Draw) (f) (g)  |  | L+8.00%                  |  |              | 9.57                                                                                                    | %   |          | 7/22/2019 |           |  | 444    |               |  |   | —             |  |  |                        | —      
|American
    Community Homes, Inc. (Delayed Draw) (f) (g)  |  | L+12.50%                 |  |              | 9.57%
                                         Cash/4.50%
                                         PIK  |     |          | 7/22/2019 |           |  | 222    |               |  |   | —             |  |  |                        | —      
|                                                           |  |                          |  |              |                                                                                                         |     |          |           |           |  | 13,960 |               |  |   | 13,162        |  |  |                        | 12,967 
|Consumer
    Goods: Non-Durable                            |  |                          |  |              |                                                                                                         |     |          |           |           |  |        |               |  |   |               |  |  |                        |        
|Millennial
    Brands LLC (fka Rocket Dog Brands, LLC)     |  | n/a                      |  |              | 12.00%
                                         PIK                                                     | (y) |          | 8/29/2019 |           |  | 1,157  |               |  |   | 1,157         |  |  |                        | —      
|Millennial
    Brands LLC (fka Rocket Dog Brands, LLC)     |  | n/a                      |  |              | 15.00%
                                         PIK                                                     | (y) |          | 8/29/2019 |           |  | 422    |               |  |   | 416           |  |  |                        | —      
|Millennial
    Brands LLC (fka Rocket Dog Brands, LLC)     |  | n/a                      |  |              | 17.00%
                                         PIK                                                     | (y) |          | 3/30/2018 |           |  | 235    |               |  |   | 235           |  |  |                        | —      
|Millennial
    Brands LLC (fka Rocket Dog Brands, LLC)     |  | n/a                      |  |              | 16.50%
                                         PIK                                                     | (y) |          | 8/29/2019 |           |  | 550    |               |  |   | 534           |  |  |                        | 550    
|                                                           |  |                          |  |              |                                                                                                         |     |          |           |           |  | 2,364  |               |  |   | 2,342         |  |  |                        | 550    
|Containers,
    Packaging & Glass                          |  |                          |  |              |                                                                                                         |     |          |           |           |  |        |               |  |   |               |  |  |                        |        
|Summit
    Container Corporation (h)                       |  | L+12.00%                 |  |              | 12.00%
                                         Cash/2.00%
                                         PIK |     |          | 1/6/2019  |           |  | 3,593  |               |  |   | 3,576         |  |  |                        | 3,421  
|Summit
    Container Corporation (h)                       |  | L+12.00%                 |  |              | 12.00%
                                         Cash/2.00%
                                         PIK |     |          | 1/6/2019  |           |  | 1,508  |               |  |   | 1,508         |  |  |                        | 1,507  
|                                                           |  |                          |  |              |                                                                                                         |     |          |           |           |  | 5,101  |               |  |   | 5,084         |  |  |                        | 4,928  
|Healthcare
    & Pharmaceuticals                           |  |                          |  |              |                                                                                                         |     |          |           |           |  |        |               |  |   |               |  |  |                        |        
|Rockdale
    Blackhawk, LLC                                |  | L+13.00%                 |  |              | 14.57                                                                                                   | %   |          | 3/31/2020 |           |  | 10,922 |               |  |   | 10,355        |  |  |                        | 10,594 
|Rockdale
    Blackhawk, LLC (Capex)                        |  | L+13.00%                 |  |              | 14.57                                                                                                   | %   |          | 3/31/2020 |           |  | 549    |               |  |   | 549           |  |  |                        | 533    
|Rockdale
    Blackhawk, LLC (Revolver)                     |  | L+13.00%                 |  |              | 14.57                                                                                                   | %   |          | 3/31/2020 |           |  | 1,849  |               |  |   | 1,849         |  |  |                        | 1,797  
|Rockdale
    Blackhawk, LLC (Revolver)                     |  | L+13.00%                 |  |              | 14.57                                                                                                   | %   |          | 3/31/2020 |           |  | 3,236  |               |  |   | 3,236         |  |  |                        | 3,145  
|SHI
    Holdings, Inc. (h)                                 |  | L+10.25%                 |  |              | 11.82                                                                                                   | %   |          | 7/10/2019 |           |  | 2,625  |               |  |   | 2,608         |  |  |                        | 2,625  
|SHI
    Holdings, Inc. (Revolver) (f)                      |  | L+10.25%                 |  |              | 11.82                                                                                                   | %   |          | 7/10/2019 |           |  | 2,318  |               |  |   | 2,216         |  |  |                        | 2,226  
|                                                           |  |                          |  |              |                                                                                                         |     |          |           |           |  | 21,499 |               |  |   | 20,813        |  |  |                        | 20,920 
|Retail                                                     |  |                          |  |              |                                                                                                         |     |          |           |           |  |        |               |  |   |               |  |  |                        |        
|Luxury
    Optical Holdings Co.                            |  | L+8.00%                  |  |              | 9.57%
                                         PIK                                                      |     |          | 9/12/2019 |           |  | 4,249  |               |  |   | 4,218         |  |  |                        | 3,697  
|Luxury
    Optical Holdings Co. (Delayed Draw) (f) (g)     |  | L+11.50%                 |  |              | 13.07                                                                                                   | %   |          | 9/12/2019 |           |  | 1,176  |               |  |   | 741           |  |  |                        | 741    
|Luxury
    Optical Holdings Co. (Revolver)                 |  | L+8.00%                  |  |              | 9.57%
                                         PIK                                                      |     |          | 9/12/2019 |           |  | 196    |               |  |   | 196           |  |  |                        | 170    
|TPP
    Operating, Inc.                                    |  | L+6.00%                  |  |              | 7.57%
                                         PIK                                                      | (y) |          | 11/8/2018 |           |  | 9,370  |               |  |   | 9,330         |  |  |                        | —      



See Notes to Consolidated Financial
Statements.



19







MONROE CAPITAL CORPORATIONCONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)December 31, 2017(in thousands, except for shares and units)



|Portfolio
    Company (a)                                                         |  | SpreadAboveIndex
    (b) |  | InterestRate |                                                     |      | Maturity |           | Principal |  |        | AmortizedCost |  |   | FairValue (c) |  |  | %
    of NetAssets (d) |       
|--------------------------------------------------------------------------------- |  | ------------------------ |  | ------------ | --------------------------------------------------- | ---- | -------- | --------- | --------- |  | ------ | ------------- |  | - | ------------- |  |  | ---------------------- | ------
|TPP
    Operating, Inc.                                                           |  | L+6.00%                  |  |              | 7.57                                                | %(y) |          | 11/8/2018 |           |  | 6,885  |               |  | $ | 6,885         |  |  | $                      | 3,373 
|TPP
    Operating, Inc.                                                           |  | L+9.61%                  |  |              | 11.18                                               | %(y) |          | 11/8/2018 |           |  | 4,593  |               |  |   | 4,593         |  |  |                        | 4,593 
|                                                                                  |  |                          |  |              |                                                     |      |          |           |           |  | 26,469 |               |  |   | 25,963        |  |  |                        | 12,574
|Total
    Non-Controlled Affiliate Senior Secured Loans                           |  |                          |  |              |                                                     |      |          |           |           |  | 69,393 |               |  |   | 67,364        |  |  |                        | 51,939
|Junior
    Secured Loans                                                          |  |                          |  |              |                                                     |      |          |           |           |  |        |               |  |   |               |  |  |                        |       
|Consumer
    Goods: Non-Durable                                                   |  |                          |  |              |                                                     |      |          |           |           |  |        |               |  |   |               |  |  |                        |       
|Millennial
    Brands LLC (fka Rocket Dog Brands LLC)                             |  | n/a                      |  |              | 15.00%
                                         PIK | (y)  |          | 5/1/2020  |           |  | 2,011  |               |  |   | 2,011         |  |  |                        | —     
|                                                                                  |  |                          |  |              |                                                     |      |          |           |           |  | 2,011  |               |  |   | 2,011         |  |  |                        | —     
|Total
    Non-Controlled Affiliate Company Junior Secured Loans                   |  |                          |  |              |                                                     |      |          |           |           |  | 2,011  |               |  |   | 2,011         |  |  |                        | —     
|Equity
    Securities                                                             |  |                          |  |              |                                                     |      |          |           |           |  |        |               |  |   |               |  |  |                        |       
|Banking,
    Finance, Insurance & Real Estate                                     |  |                          |  |              |                                                     |      |          |           |           |  |        |               |  |   |               |  |  |                        |       
|American
    Community Homes, Inc. (warrant to purchase up to 9.0% of the equity) |  | —                        |  |              | —                                                   | (v)  |          | 10/9/2024 |           |  | —      |               |  |   | —             |  |  |                        | 353   
|                                                                                  |  |                          |  |              |                                                     |      |          |           |           |  |        |               |  |   | —             |  |  |                        | 353   
|Consumer
    Goods: Non-Durable                                                   |  |                          |  |              |                                                     |      |          |           |           |  |        |               |  |   |               |  |  |                        |       
|Millennial
    Brands LLC (fka Rocket Dog Brands LLC)                             |  | —                        |  |              | —                                                   | (v)  |          | —         |           |  | —      |               |  |   | —             |  |  |                        | —     
|Millennial
    Brands LLC (fka Rocket Dog Brands LLC)                             |  | n/a                      |  |              | 15.00%
                                         PIK | (y)  |          | —         |           |  | —      |               |  |   | 967           |  |  |                        | —     
|                                                                                  |  |                          |  |              |                                                     |      |          |           |           |  |        |               |  |   | 967           |  |  |                        | —     
|Containers,
    Packaging & Glass                                                 |  |                          |  |              |                                                     |      |          |           |           |  |        |               |  |   |               |  |  |                        |       
|Summit
    Container Corporation (warrant to purchase up to 19.50% of the equity) |  | —                        |  |              | —                                                   | (v)  |          | 1/6/2024  |           |  | —      |               |  |   | —             |  |  |                        | —     
|                                                                                  |  |                          |  |              |                                                     |      |          |           |           |  |        |               |  |   | —             |  |  |                        | —     
|Healthcare
    & Pharmaceuticals                                                  |  |                          |  |              |                                                     |      |          |           |           |  |        |               |  |   |               |  |  |                        |       
|Rockdale
    Blackhawk, LLC – LLC Units (18.03% of the LLC interest)              |  | —                        |  |              | —                                                   | (v)  |          | —         |           |  | —      |               |  |   | 1,093         |  |  |                        | 5,673 
|SHI
    Holdings, Inc. (24 shares of common stock)                                |  | —                        |  |              | —                                                   | (v)  |          | —         |           |  | —      |               |  |   | 27            |  |  |                        | 786   
|                                                                                  |  |                          |  |              |                                                     |      |          |           |           |  |        |               |  |   | 1,120         |  |  |                        | 6,459 
|Retail                                                                            |  |                          |  |              |                                                     |      |          |           |           |  |        |               |  |   |               |  |  |                        |       
|Luxury
    Optical Holdings Co. (86 shares of common stock)                       |  | —                        |  |              | —                                                   | (v)  |          | —         |           |  | —      |               |  |   | —             |  |  |                        | —     
|TPP
    Operating, Inc. (24 shares of common stock)                               |  | —                        |  |              | —                                                   | (v)  |          | —         |           |  | —      |               |  |   | 1,953         |  |  |                        | —     
|TPP
    Operating, Inc. (16 shares of common stock) (z)                           |  | —                        |  |              | —                                                   | (v)  |          | —         |           |  | —      |               |  |   | 1,302         |  |  |                        | —     
|                                                                                  |  |                          |  |              |                                                     |      |          |           |           |  |        |               |  |   | 3,255         |  |  |                        | —     
|Total
    Non-Controlled Affiliate Equity Securities                              |  |                          |  |              |                                                     |      |          |           |           |  |        |               |  |   | 5,342         |  |  |                        | 6,812 
|Total
    Non-Controlled Affiliate Company Investments                            |  |                          |  |              |                                                     |      |          |           |           |  |        |               |  | $ | 74,717        |  |  | $                      | 58,751



See Notes to Consolidated Financial
Statements.



20







MONROE CAPITAL CORPORATIONCONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)December 31, 2017(in thousands, except for shares and units)



|Portfolio
    Company (a)                          |  | SpreadAboveIndex
    (b) |  | InterestRate |   |  | Maturity |   | Principal |  |   | AmortizedCost |  |   | FairValue (c) |  |  | %
    of NetAssets (d) |        
|-------------------------------------------------- |  | ------------------------ |  | ------------ | - |  | -------- | - | --------- |  | - | ------------- |  | - | ------------- |  |  | ---------------------- | -------
|Controlled
    Affiliate Company Investments (aa)  |  |                          |  |              |   |  |          |   |           |  |   |               |  |   |               |  |  |                        |        
|Equity
    Securities                              |  |                          |  |              |   |  |          |   |           |  |   |               |  |   |               |  |  |                        |        
|Investment
    Funds & Vehicles                    |  |                          |  |              |   |  |          |   |           |  |   |               |  |   |               |  |  |                        |        
|MRCC
    Senior Loan Fund I, LLC (e)               |  | —                        |  |              | — |  |          | — |           |  | — |               |  |   | 9,500         |  |  |                        | 9,640  
|Total
    Controlled Affiliate Equity Securities   |  |                          |  |              |   |  |          |   |           |  |   |               |  |   | 9,500         |  |  |                        | 9,640  
|Total
    Controlled Affiliate Company Investments |  |                          |  |              |   |  |          |   |           |  |   |               |  | $ | 9,500         |  |  | $                      | 9,640  
|TOTAL
    INVESTMENTS                              |  |                          |  |              |   |  |          |   |           |  |   |               |  | $ | 507,580       |  |  | $                      | 494,138










| | (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 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, 2017. Certain investments
                                         are subject to a LIBOR or Prime interest rate floor.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | 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 Investment Company Act of 1940. (See Note 4 in
                                         the accompanying notes to the consolidated financial statements.)
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d) | Percentages
                                         are based on net assets of $278,699 as of December 31, 2017.
| | --- | -----------------------------------------------------------------------------------------------------------------

| | (e) | 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, 2017, non-qualifying assets totaled
                                         13.13% of the Company’s total assets excluding prepaid expenses.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (f) | All
                                         or a portion of this commitment was unfunded at December 31, 2017. 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) | 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.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | A
                                         portion of this loan (principal of $2,113) 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) | A
                                         portion of the PIK interest rate for Cornerstone Detention Products, Inc. is structured
                                         as a fee paid upon the termination of the commitment. The fee currently accrues at 2.33%
                                         per annum.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (k) | This
                                         investment represents a senior secured note that is traded in the secondary bond market.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------

| | (l) | The
                                         PIK portion of the interest rate for Landpoint, LLC is structured as a fee paid upon
                                         the termination of the commitment. The fee currently accrues at 2.25% per annum.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (m) | This
                                         is an international company.
| | --- | --------------------------------------------------------------------------

| | (n) | This
                                         term loan is denominated in Great Britain pounds and is translated into U.S. dollars
                                         as of the valuation date.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (o) | A
                                         portion of the PIK interest rate for TRG, LLC is structured as a fee paid upon the termination
                                         of the commitment. The fee currently accrues at 2.92% per annum.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (p) | A
                                         portion of this loan (principal of $4,099) 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.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



See Notes to Consolidated Financial
Statements.



21







MONROE CAPITAL CORPORATIONCONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)December 31, 2017(in thousands, except for shares and units)



| | (q) | A
                                         portion of the PIK interest rate for Vacation Innovations, LLC is structured as a fee
                                         paid upon the termination of the commitment. The fee currently accrues at 1.81% per annum.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (r) | The
                                         PIK portion of the interest rate for Peerless Network, Inc. is structured as a fee paid
                                         upon the termination of the commitment. The fee currently accrues at 0.75% per annum.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (s) | A
                                         portion of this loan (principal of $4,477) 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.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (t) | Represents
                                         less than 5% ownership of the portfolio company’s voting securities.
| | --- | ------------------------------------------------------------------------------------------------------------------------

| | (u) | Ownership
                                         of certain equity investments may occur through a holding company or partnership.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------

| | (v) | Represents
                                         a non-income producing security.
| | --- | ------------------------------------------------------------------------------------

| | (w) | As
                                         defined in the 1940 Act, the Company is deemed to be an “Affiliated Person”
                                         of the portfolio company as it owns five percent 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) | This
                                         is a demand note with no stated maturity.
| | --- | ---------------------------------------------------------------------------------------

| | (y) | This
                                         position was on non-accrual status as of December 31, 2017, 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.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (z) | This
                                         investment is held in a wholly owned entity, MCC Holdco Equity Manager I, LLC (“MCC
                                         Holdco”), which has an independent manager who has full control over the operations
                                         of MCC Holdco, including the right to vote the shares of TPP Holdco LLC, the holding
                                         company which owns the Company's equity interest in TPP. See Note 5 in the accompanying
                                         notes to the consolidated financial statements for additional information.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (aa) | 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.
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (ab) | 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.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





| | (ac) | This
                                         term loan is subject to a prime rate cap of 1.10%.
| | ---- | ------------------------------------------------------------------------------------------------





n/a — not applicable



See Notes to Consolidated
Financial Statements.



22







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 (“Monroe
Capital” and together with its subsidiaries, the “Company”) was formed in February 2011 to act as an externally
managed non-diversified, closed-end management investment company and has elected to be treated as a business development company
under the Investment Company Act of 1940, as amended (the “1940 Act”). The Company had no substantive operating activities
prior to October 24, 2012, the date of its initial public offering. Monroe Capital’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. Monroe Capital 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, Monroe Capital 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. As of March 31, 2018, MRCC SBIC had $57,624 in leverageable capital and $112,800 in SBA-guaranteed debentures outstanding.
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 or 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 Regulation S-X and 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,
MC Forest Park Lender, LLC, and MC Reserve Lender, 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.



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.



23







Revenue Recognition



The Company’s revenue recognition
policies are as follows:



Investments and related investment income:Interest and dividend income are 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. All other income is recorded into income when earned. 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 earned.





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 months ended March 31, 2018 and 2017, the Company
received return of capital distributions from the Company’s investment in LLC equity interest in SLF of $9,500 and zero,
respectively.



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 $7,352 and $8,005
as of March 31, 2018 and December 31, 2017, respectively. Upfront loan origination and closing fees received for the three months
ended March 31, 2018 and 2017 totaled $316 and $690, respectively. For the three months ended March 31, 2018 and 2017, interest
income included $1,032 and $388 of accretion of loan origination fees, original issue discounts and market discounts or premiums,
respectively. Upon the prepayment of a loan or debt security, any unamortized premium or discount or loan origination fees are
recorded as interest income. For the three months ended March 31, 2018 and 2017, interest income included $133 and $652 of unamortized
discount or loan origination fees recorded as interest income upon prepayment of a loan or debt security, respectively.



The Company has certain investments in
its portfolio that contain a payment-in-kind (“PIK”) interest provision, which represents contractual interest or
dividends that are added to the principal balance and recorded as income. For the three months ended March 31, 2018 and 2017,
interest income included $329 and $613 of PIK interest, respectively. For the three months ended March 31, 2018 and 2017, dividend
income included $260 and zero of PIK dividends, respectively. The Company stops accruing PIK interest when it is determined that
PIK interest is 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.



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 and losses previously
recognized. Realized gains and losses are recorded within net realized gain (loss) on investments in 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 in 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. The Company generally reverses accrued
interest when a loan is placed on non-accrual status. 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 $4,189 and $8,516 at March 31,
2018 and December 31, 2017, respectively.



Partial loan sales: The Company
follows the guidance in ASC Topic 860 — Transfers and Servicing (‘‘ASC Topic 860’’), when accounting
for loan participations and other partial loan sales. Such guidance requires a participation or other partial loan sale to meet
the definition of a ‘‘participating interest,’’ as defined in the guidance, in order for sale treatment
to be allowed. Participations or other partial loan sales which do not meet the definition of a participating interest remain
on the Company’s consolidated statements of assets and liabilities and the proceeds are recorded as a secured borrowing
until the definition is met. For these partial loan sales, the interest earned on the entire loan balance is recorded within ‘‘interest
income’’ and the interest earned by the buyer in the partial loan sale is recorded within ‘‘interest and
other debt financing expenses’’ in the accompanying consolidated statements of operations. Changes in the fair value
of secured borrowings from the prior period, as determined by the Board through the application of the Company’s valuation
policy, are included as changes in unrealized gain (loss) on secured borrowings in the consolidated statements of operations.
See Note 7 ‘‘Secured Borrowings’’ for additional information.







24





Distributions



Distributions to common stockholders are
recorded on the 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, although
the Company may decide to retain such capital gains for investment.



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.



The Company
has 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. As a result, if 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 8 for additional information.



Earnings per Share



In accordance with the provisions of ASC
Topic 260 — Earnings per Share(‘‘ASC Topic 260’’), 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 9 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 March 31, 2018 and December
31, 2017, the Company had unamortized deferred financing costs of $4,468 and $4,670, 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 expense in the consolidated statements of operations over the estimated average life of the borrowings. Amortization
of deferred financing costs for the three months ended March 31, 2018 and 2017 was $281 and $231, respectively.



Offering Costs



Offering costs include, among other things,
fees paid in relation to legal, accounting, regulatory and printing work completed in preparation of equity offerings. Offering
costs are charged against the proceeds from equity offerings within the consolidated statements of changes in net assets. As of
March 31, 2018 and December 31, 2017, other assets on the consolidated statements of assets and liabilities included $501 and
$494, respectively, of deferred offering costs which will be charged against the proceeds from future equity offerings when received.



Investments Denominated in Foreign Currency



As of March 31, 2018, 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.





25







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 that portion of the change in fair values resulting from foreign currency
exchange rates fluctuations from the change in fair values of the underlying investment. All fluctuations in fair value are included
in net change in unrealized gain (loss) of investments in 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.



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 will also be 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, if any, calculated
as 4% of the estimated excess taxable income as taxable income is earned. For the three months ended March 31, 2018 and 2017,
$11 and zero, respectively, were recorded on the consolidated statements of operations for U.S. federal excise taxes. As of March
31, 2018 and December 31, 2017, payables for excise taxes of zero and $80, 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 March 31, 2018. The 2014 through 2017 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
and such disclosure is included in Note 12. Other than what was disclosed in Note 12, 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 three months ended March 31, 2018.



Recent Accounting
Pronouncements



In May 2014, the FASB issued Accounting
Standards Update (‘‘ASU’’) 2014-09, Revenue from Contracts with Customers(ASC Topic 606) (‘‘ASU
2014-09’’). The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of
promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled
in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: Step 1: Identify
the contract(s) with a customer. Step 2: Identify the performance obligations in the contract. Step 3: Determine the transaction
price. Step 4: Allocate the transaction price to the performance obligations in the contract. Step 5: Recognize revenue when (or
as) the entity satisfies a performance obligation.



ASU 2014-09 also specified the accounting
for some costs to obtain or fulfill a contract with a customer. In addition, ASU 2014-09 requires that an entity disclose sufficient
information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash
flows arising from contracts with customers. The initial effective date of ASU 2014-09 was for fiscal periods beginning after
December 15, 2016. However, in August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers(ASC Topic
606): Deferral of the Effective Date, which deferred the effective date to fiscal periods beginning after December 15,
2017. The Company has adopted ASU 2014-09, and the adoption did not have a material impact on the Company’s consolidated
financial statements.



In January 2016, the FASB issued ASU 2016-01,
Financial Instruments — Overall(Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial
Liabilities(‘‘ASU 2016-01’’). ASU 2016-01 retains many current requirements for the classification
and measurement of financial instruments; however, it significantly revises an entity’s accounting related to (1) the classification
and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities
measured at fair value. ASU 2016-01 also amends certain disclosure requirements associated with the fair value of financial instruments.
This guidance is effective for annual and interim periods beginning after December 15, 2017, and early adoption is not permitted
for public business entities. The Company has adopted ASU 2016-01, and the adoption did not have a material impact on the Company’s
consolidated financial statements.



26







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):



|                           |  | March 31, 2018 |         |  | December 31, 2017 | 
|-------------------------- |  | -------------- | ------- |  | ----------------- | 
|Amortized Cost:            |  |                |         |  |                   | 
|Senior secured loans       |  | $              | 395,936 |  |                   | 
|Unitranche secured loans   |  |                | 46,478  |  |                   | 
|Junior secured loans       |  |                | 40,496  |  |                   | 
|LLC equity interest in SLF |  |                | 15,750  |  |                   | 
|Equity securities          |  |                | 17,461  |  |                   | 
|Total                      |  | $              | 516,121 |  |                   | 



|                           |  | March 31, 2018 |         |  | December 31, 2017 | 
|-------------------------- |  | -------------- | ------- |  | ----------------- | 
|Fair Value:                |  |                |         |  |                   | 
|Senior secured loans       |  | $              | 380,115 |  |                   | 
|Unitranche secured loans   |  |                | 45,976  |  |                   | 
|Junior secured loans       |  |                | 38,578  |  |                   | 
|LLC equity interest in SLF |  |                | 16,333  |  |                   | 
|Equity securities          |  |                | 15,032  |  |                   | 
|Total                      |  | $              | 496,034 |  |                   | 



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:



|                |  | March 31, 2018 |         |  | December 31, 2017 | 
|--------------- |  | -------------- | ------- |  | ----------------- | 
|Amortized Cost: |  |                |         |  |                   | 
|International   |  | $              | 13,857  |  |                   | 
|Midwest         |  |                | 97,547  |  |                   | 
|Northeast       |  |                | 147,024 |  |                   | 
|Southeast       |  |                | 76,045  |  |                   | 
|Southwest       |  |                | 60,982  |  |                   | 
|West            |  |                | 120,666 |  |                   | 
|Total           |  | $              | 516,121 |  |                   | 



|              |  | March 31, 2018 |         |  | December 31, 2017 | 
|------------- |  | -------------- | ------- |  | ----------------- | 
|Fair Value:   |  |                |         |  |                   | 
|International |  | $              | 15,095  |  |                   | 
|Midwest       |  |                | 98,915  |  |                   | 
|Northeast     |  |                | 148,335 |  |                   | 
|Southeast     |  |                | 75,236  |  |                   | 
|Southwest     |  |                | 42,637  |  |                   | 
|West          |  |                | 115,816 |  |                   | 
|Total         |  | $              | 496,034 |  |                   | 



27







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):



|                                          |  | March 31, 2018 |         |  | December 31, 2017 | 
|----------------------------------------- |  | -------------- | ------- |  | ----------------- | 
|Amortized Cost:                           |  |                |         |  |                   | 
|Aerospace & Defense                       |  | $              | 4,945   |  |                   | 
|Banking, Finance, Insurance & Real Estate |  |                | 59,226  |  |                   | 
|Beverage, Food & Tobacco                  |  |                | 17,843  |  |                   | 
|Chemicals, Plastics & Rubber              |  |                | 10,337  |  |                   | 
|Construction & Building                   |  |                | 18,353  |  |                   | 
|Consumer Goods: Durable                   |  |                | 11,489  |  |                   | 
|Consumer Goods: Non-Durable               |  |                | 36,796  |  |                   | 
|Containers, Packaging & Glass             |  |                | 5,116   |  |                   | 
|Energy: Oil & Gas                         |  |                | 2,300   |  |                   | 
|Environmental Industries                  |  |                | 4,334   |  |                   | 
|Healthcare & Pharmaceuticals              |  |                | 62,117  |  |                   | 
|High Tech Industries                      |  |                | 50,334  |  |                   | 
|Hotels, Gaming & Leisure                  |  |                | 32,168  |  |                   | 
|Investment Funds & Vehicles               |  |                | 15,750  |  |                   | 
|Media: Advertising, Printing & Publishing |  |                | 22,441  |  |                   | 
|Media: Broadcasting & Subscription        |  |                | 15,490  |  |                   | 
|Media: Diversified & Production           |  |                | 4,949   |  |                   | 
|Retail                                    |  |                | 57,546  |  |                   | 
|Services: Business                        |  |                | 33,553  |  |                   | 
|Services: Consumer                        |  |                | 21,472  |  |                   | 
|Telecommunications                        |  |                | 2,919   |  |                   | 
|Utilities: Electric                       |  |                | 2,760   |  |                   | 
|Wholesale                                 |  |                | 23,883  |  |                   | 
|Total                                     |  | $              | 516,121 |  |                   | 



|                                          |  | March 31, 2018 |         |  | December 31, 2017 | 
|----------------------------------------- |  | -------------- | ------- |  | ----------------- | 
|Fair Value:                               |  |                |         |  |                   | 
|Aerospace & Defense                       |  | $              | 5,000   |  |                   | 
|Banking, Finance, Insurance & Real Estate |  |                | 60,526  |  |                   | 
|Beverage, Food & Tobacco                  |  |                | 17,566  |  |                   | 
|Chemicals, Plastics & Rubber              |  |                | 10,461  |  |                   | 
|Construction & Building                   |  |                | 18,573  |  |                   | 
|Consumer Goods: Durable                   |  |                | 11,693  |  |                   | 
|Consumer Goods: Non-Durable               |  |                | 29,768  |  |                   | 
|Containers, Packaging & Glass             |  |                | 4,967   |  |                   | 
|Energy: Oil & Gas                         |  |                | 2,273   |  |                   | 
|Environmental Industries                  |  |                | 4,397   |  |                   | 
|Healthcare & Pharmaceuticals              |  |                | 65,645  |  |                   | 
|High Tech Industries                      |  |                | 50,967  |  |                   | 
|Hotels, Gaming & Leisure                  |  |                | 33,241  |  |                   | 
|Investment Funds & Vehicles               |  |                | 16,333  |  |                   | 
|Media: Advertising, Printing & Publishing |  |                | 23,048  |  |                   | 
|Media: Broadcasting & Subscription        |  |                | 15,742  |  |                   | 
|Media: Diversified & Production           |  |                | 5,006   |  |                   | 
|Retail                                    |  |                | 35,157  |  |                   | 
|Services: Business                        |  |                | 34,152  |  |                   | 
|Services: Consumer                        |  |                | 21,463  |  |                   | 
|Telecommunications                        |  |                | 2,985   |  |                   | 
|Utilities: Electric                       |  |                | 2,797   |  |                   | 
|Wholesale                                 |  |                | 24,274  |  |                   | 
|Total                                     |  | $              | 496,034 |  |                   | 





28







MRCC Senior Loan Fund I, LLC



The Company co-invests with NLV Financial
Corporation (‘‘NLV’’) in senior secured loans through SLF, an unconsolidated Delaware limited liability
company. 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 of SLF must be approved
by the SLF investment committee, consisting of one representative of each of the Company and 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.



SLF’s profits and losses are allocated
to the Company and NLV in accordance with their respective ownership interests. As of March 31, 2018, the Company and NLV owned
50.0% and 50.0%, respectively of the LLC equity interests of SLF. As of March 31, 2018, SLF had $100,000 in commitments from its
members (in the aggregate), of which $31,500 was funded. As of December
31, 2017, the Company and NLV owned 50.0% and 50.0%, respectively of the LLC equity interests of SLF. As of December 31, 2017,
SLF had $100,000 in commitments from its members (in the aggregate), of which $19,000 was funded.



SLF has entered into 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 March 31,
2018 allowed SLF SPV to borrow up to $100,000 at any one time outstanding, 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.



As of March 31, 2018 and December 31, 2017,
SLF had total assets at fair value of $60,510 and $41,641, respectively. As of March 31, 2018 and December 31, 2017, SLF had zero
and zero portfolio company investments on non-accrual status, respectively. The portfolio companies in SLF are in industries and
geographies similar to those in which the Company may invest directly. Additionally, as of March 31, 2018 and December 31, 2017,
SLF had commitments to fund various undrawn revolvers and delayed draw investments to its portfolio companies totaling $3,812
and $2,083, respectively.



Below is a summary of SLF’s portfolio,
followed by a listing of the individual investments in SLF’s portfolio as of March 31, 2018 and December 31, 2017 (in thousands):



|                                                                       |  | As of          |       
|---------------------------------------------------------------------- |  | -------------- | ------
|                                                                       |  | March 31, 2018 |       
|Senior secured
    loans (1)                                           |  |                | 58,207
|Weighted average current
    interest rate on senior secured loans (2) |  |                | 7.4   
|Number of borrowers in SLF                                             |  |                | 17    










| | (1) | Represents
                                         outstanding principal amount, excluding unfunded commitments.
| | --- | -----------------------------------------------------------------------------------------------------------------

| | (2) | Computed
                                         as the (a) annual stated interest rate on senior secured loans divided by (b) total senior
                                         secured loans at outstanding principal amount.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



29







MRCC SENIOR LOAN FUND I, LLC

SCHEDULE OF INVESTMENTS

(unaudited)

March 31, 2018



|Portfolio Company(a)                                                |  | Spread AboveIndex (b) |  | InterestRate(b) |      |   | Maturity |            | Principal |  |       | Fair Value | 
|------------------------------------------------------------------- |  | --------------------- |  | --------------- | ---- | - | -------- | ---------- | --------- |  | ----- | ---------- | 
|Non-Controlled/Non-Affiliate
    Company Investments                |  |                       |  |                 |      |   |          |            |           |  |       |            | 
|Senior Secured Loans                                                |  |                       |  |                 |      |   |          |            |           |  |       |            | 
|Banking, Finance, Insurance &
    Real Estate                       |  |                       |  |                 |      |   |          |            |           |  |       |            | 
|MTC Intermediate Holdco,
    Inc.                                   |  | L+4.75%               |  |                 | 6.63 | % |          | 1/30/2023  |           |  | 5,000 |            | 
|                                                                    |  |                       |  |                 |      |   |          |            |           |  | 5,000 |            | 
|Beverage, Food & Tobacco                                            |  |                       |  |                 |      |   |          |            |           |  |       |            | 
|Il Fornaio (America) Corporation                                    |  | L+6.50%               |  |                 | 8.38 | % |          | 11/10/2022 |           |  | 4,973 |            | 
|US Salt, LLC                                                        |  | L+4.75%               |  |                 | 6.63 | % |          | 11/30/2023 |           |  | 3,500 |            | 
|                                                                    |  |                       |  |                 |      |   |          |            |           |  | 8,473 |            | 
|Chemicals, Plastics & Rubber                                        |  |                       |  |                 |      |   |          |            |           |  |       |            | 
|Loparex International
    B.V. (c)                                  |  | L+4.25%               |  |                 | 6.13 | % |          | 4/09/2025  |           |  | 500   |            | 
|Peach State Labs, LLC, and Flow
    Polymers, LLC                   |  | L+6.25%               |  |                 | 7.92 | % |          | 6/30/2021  |           |  | 2,876 |            | 
|                                                                    |  |                       |  |                 |      |   |          |            |           |  | 3,376 |            | 
|Construction & Building                                             |  |                       |  |                 |      |   |          |            |           |  |       |            | 
|Fastener
    Acquisition, Inc. (c)                                  |  | L+4.25%               |  |                 | 6.13 | % |          | 3/23/2025  |           |  | 1,333 |            | 
|                                                                    |  |                       |  |                 |      |   |          |            |           |  | 1,333 |            | 
|Consumer Goods: Non-Durable                                         |  |                       |  |                 |      |   |          |            |           |  |       |            | 
|Solaray, LLC                                                        |  | L+6.50%               |  |                 | 8.53 | % |          | 9/09/2023  |           |  | 1,621 |            | 
|Solaray,
    LLC (Delayed Draw) (d)                                 |  | L+6.50%               |  |                 | 8.53 | % |          | 9/09/2023  |           |  | 1,875 |            | 
|                                                                    |  |                       |  |                 |      |   |          |            |           |  | 3,496 |            | 
|Healthcare & Pharmaceuticals                                        |  |                       |  |                 |      |   |          |            |           |  |       |            | 
|LSCS Holdings, Inc. (c)                                             |  | L+4.25%               |  |                 | 6.40 | % |          | 3/16/2025  |           |  | 2,800 |            | 
|LSCS Holdings, Inc. (Delayed
    Draw) (c) (d)                      |  | L+4.25%               |  |                 | 6.40 | % |          | 3/16/2025  |           |  | 700   |            | 
|Radiology Partners Holdings, LLC                                    |  | L+5.75%               |  |                 | 7.69 | % |          | 12/04/2023 |           |  | 1,701 |            | 
|Radiology
    Partners Holdings, LLC (Delayed Draw) (d)             |  | L+5.75%               |  |                 | 7.69 | % |          | 12/04/2023 |           |  | 1,170 |            | 
|                                                                    |  |                       |  |                 |      |   |          |            |           |  | 6,371 |            | 
|High Tech Industries                                                |  |                       |  |                 |      |   |          |            |           |  |       |            | 
|Gigamon, Inc.                                                       |  | L+4.50%               |  |                 | 6.80 | % |          | 12/19/2024 |           |  | 2,993 |            | 
|                                                                    |  |                       |  |                 |      |   |          |            |           |  | 2,993 |            | 
|Media: Diversified & Production                                     |  |                       |  |                 |      |   |          |            |           |  |       |            | 
|Research Now Group, Inc. and Survey
    Sampling International, LLC |  | L+5.50%               |  |                 | 7.86 | % |          | 12/06/2024 |           |  | 6,983 |            | 
|                                                                    |  |                       |  |                 |      |   |          |            |           |  | 6,983 |            | 
|Services: Business                                                  |  |                       |  |                 |      |   |          |            |           |  |       |            | 
|Engage2Excel, Inc.                                                  |  | L+6.50%               |  |                 | 8.54 | % |          | 3/07/2023  |           |  | 4,375 |            | 
|Engage2Excel, Inc. (Revolver)
    (d)                               |  | L+6.50%               |  |                 | 8.21 | % |          | 3/07/2023  |           |  | 545   |            | 
|Output Services Group,
    Inc. (c)                                 |  | L+4.25%               |  |                 | 6.13 | % |          | 3/27/2024  |           |  | 4,145 |            | 
|Output
    Services Group, Inc. (Delayed Draw) (c) (d)              |  | L+4.25%               |  |                 | 6.13 | % |          | 3/27/2024  |           |  | 855   |            | 
|                                                                    |  |                       |  |                 |      |   |          |            |           |  | 9,920 |            | 
|Services: Consumer                                                  |  |                       |  |                 |      |   |          |            |           |  |       |            | 
|EWC Ventures, LLC                                                   |  | L+5.50%               |  |                 | 7.17 | % |          | 1/18/2023  |           |  | 3,350 |            | 
|LegalZoom.com, Inc.                                                 |  | L+4.50%               |  |                 | 6.34 | % |          | 11/21/2024 |           |  | 1,995 |            | 
|Zenith Merger Sub, Inc.                                             |  | L+5.50%               |  |                 | 7.80 | % |          | 12/13/2023 |           |  | 3,741 |            | 
|                                                                    |  |                       |  |                 |      |   |          |            |           |  | 9,086 |            | 
|Wholesale                                                           |  |                       |  |                 |      |   |          |            |           |  |       |            | 
|BMC Acquisition, Inc.                                               |  | L+5.25%               |  |                 | 7.70 | % |          | 12/28/2024 |           |  | 4,988 |            | 
|                                                                    |  |                       |  |                 |      |   |          |            |           |  | 4,988 |            | 
|                                                                    |  |                       |  |                 |      |   |          |            |           |  |       |            | 
|TOTAL INVESTMENTS                                                   |  |                       |  |                 |      |   |          |            |           |  |       |            | 










|(a) | All investments are U.S. companies, except for Loparex International B.V.                                                                                                                                                                                                                                                                                                                                                                                    
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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 Rate (‘‘Prime’’
    or ‘‘P’’) which reset daily, quarterly or semiannually. The Company has provided the spread over LIBOR
    or Prime and the current contractual rate of interest in effect at March 31, 2018. Certain investments are subject to a LIBOR
    or Prime interest rate floor.
|(c) | Investment position or portion thereof unsettled as of March 31, 2018.                                                                                                                                                                                                                                                                                                                                                                                       
|(d) | All or a portion of this commitment was unfunded as of March 31, 2018. Principal reflects
    the commitment outstanding.                                                                                                                                                                                                                                                                                                                                    



30







MRCC SENIOR LOAN FUND I, LLC

SCHEDULE OF INVESTMENTS

December 31, 2017



|Portfolio Company(a)                                                    |  | Spread AboveIndex (b) |  | InterestRate(b) |      |   | Maturity |            | Principal |  |       | Fair Value | 
|----------------------------------------------------------------------- |  | --------------------- |  | --------------- | ---- | - | -------- | ---------- | --------- |  | ----- | ---------- | 
|Non-Controlled/Non-Affiliate
    Company Investments                    |  |                       |  |                 |      |   |          |            |           |  |       |            | 
|Senior Secured Loans                                                    |  |                       |  |                 |      |   |          |            |           |  |       |            | 
|Banking, Finance, Insurance &
    Real Estate                           |  |                       |  |                 |      |   |          |            |           |  |       |            | 
|Clearent
    Holdings LLC and Clearent, LLC (c)                         |  | P+3.75%               |  |                 | 8.25 | % |          | 1/02/2024  |           |  | 1,056 |            | 
|Clearent Holdings LLC
    and Clearent, LLC (c)                         |  | P+3.75%               |  |                 | 8.25 | % |          | 1/02/2024  |           |  | 1,257 |            | 
|Clearent
    Holdings LLC and Clearent, LLC (c) (d)                     |  | P+3.75%               |  |                 | 8.25 | % |          | 1/02/2024  |           |  | 208   |            | 
|                                                                        |  |                       |  |                 |      |   |          |            |           |  | 2,521 |            | 
|Beverage, Food & Tobacco                                                |  |                       |  |                 |      |   |          |            |           |  |       |            | 
|Il Fornaio (America) Corporation                                        |  | L+6.50%               |  |                 | 8.07 | % |          | 11/10/2022 |           |  | 5,000 |            | 
|US
    Salt, LLC (c)                                                    |  | L+4.75%               |  |                 | 6.18 | % |          | 11/30/2023 |           |  | 3,500 |            | 
|                                                                        |  |                       |  |                 |      |   |          |            |           |  | 8,500 |            | 
|Consumer Goods: Non-Durable                                             |  |                       |  |                 |      |   |          |            |           |  |       |            | 
|Solaray, LLC                                                            |  | L+6.50%               |  |                 | 8.02 | % |          | 9/09/2023  |           |  | 1,625 |            | 
|Solaray,
    LLC (Delayed Draw) (d)                                     |  | L+6.50%               |  |                 | 8.02 | % |          | 9/09/2023  |           |  | 1,875 |            | 
|                                                                        |  |                       |  |                 |      |   |          |            |           |  | 3,500 |            | 
|High Tech Industries                                                    |  |                       |  |                 |      |   |          |            |           |  |       |            | 
|Gigamon,
    Inc. (c)                                                   |  | L+4.50%               |  |                 | 6.03 | % |          | 12/19/2024 |           |  | 3,000 |            | 
|                                                                        |  |                       |  |                 |      |   |          |            |           |  | 3,000 |            | 
|Media: Diversified & Production                                         |  |                       |  |                 |      |   |          |            |           |  |       |            | 
|Research
    Now Group, Inc. and Survey Sampling International, LLC (c) |  | L+5.50%               |  |                 | 7.13 | % |          | 12/06/2024 |           |  | 7,000 |            | 
|                                                                        |  |                       |  |                 |      |   |          |            |           |  | 7,000 |            | 
|Services: Consumer                                                      |  |                       |  |                 |      |   |          |            |           |  |       |            | 
|LegalZoom.com,
    Inc. (c)                                             |  | L+4.50%               |  |                 | 5.94 | % |          | 11/21/2024 |           |  | 2,000 |            | 
|                                                                        |  |                       |  |                 |      |   |          |            |           |  | 2,000 |            | 
|Wholesale                                                               |  |                       |  |                 |      |   |          |            |           |  |       |            | 
|BMC
    Acquisition, Inc. (c)                                           |  | L+5.25%               |  |                 | 6.94 | % |          | 12/28/2024 |           |  | 5,000 |            | 
|                                                                        |  |                       |  |                 |      |   |          |            |           |  | 5,000 |            | 
|                                                                        |  |                       |  |                 |      |   |          |            |           |  |       |            | 
|TOTAL INVESTMENTS                                                       |  |                       |  |                 |      |   |          |            |           |  |       |            | 










|(a) | All investments are U.S. companies.                                                                                                                                                                                                                                                                                                                                                                                                                             
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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 Rate (‘‘Prime’’
    or ‘‘P’’) which reset daily, 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, 2017. Certain investments are subject to a
    LIBOR or Prime interest rate floor.
|(c) | Investment position or portion thereof unsettled as of December 31, 2017.                                                                                                                                                                                                                                                                                                                                                                                       
|(d) | All or a portion of this commitment was unfunded as of December 31, 2017. Principal reflects
    the commitment outstanding.                                                                                                                                                                                                                                                                                                                                    





31







As of March 31, 2018 and December 31, 2017,
the Company has committed to fund $50,000 and $50,000 of LLC equity interest subscriptions to SLF, respectively. As of March 31,
2018 and December 31, 2017, $15,750 and $9,500 of the Company’s LLC equity interest subscriptions to SLF had been called
and contributed, net of return of capital distributions subject to recall, respectively. For the three months ended March 31,
2018 and 2017, the Company received $175 and zero dividend income from the SLF LLC equity interests, respectively.



Below is certain summarized financial information
for SLF as of March 31, 2018 and December 31, 2017 and for the three months ended March 31, 2018 and 2017 (dollars in thousands):



|                                                          |  | March 31, 2018 |        |   | December 31, 2017 |  
|--------------------------------------------------------- |  | -------------- | ------ | - | ----------------- | -
|Assets                                                    |  |                |        |   |                   |  
|Investments, at fair value                                |  | $              | 58,178 |   |                   | $
|Cash                                                      |  |                | 858    |   |                   |  
|Restricted cash                                           |  |                | 1,287  |   |                   |  
|Receivable for open trades                                |  |                | 48     |   |                   |  
|Interest receivable                                       |  |                | 139    |   |                   |  
|Total assets                                              |  | $              | 60,510 |   |                   | $
|Liabilities                                               |  |                |        |   |                   |  
|Revolving credit facility                                 |  | $              | 20,297 |   |                   | $
|Less: Unamortized deferred financing
    costs            |  |                | (1,310 | ) |                   |  
|Total debt, less unamortized deferred financing
    costs |  |                | 18,987 |   |                   |  
|Payable for open trades                                   |  |                | 8,735  |   |                   |  
|Interest payable                                          |  |                | 36     |   |                   |  
|Accounts payable and accrued expenses                     |  |                | 87     |   |                   |  
|Total liabilities                                         |  |                | 27,845 |   |                   |  
|Members’
    capital                                      |  |                | 32,665 |   |                   |  
|Total liabilities
    and members’ capital                |  | $              | 60,510 |   |                   | $



|                                                        |  | Three months ended |      
|------------------------------------------------------- |  | ------------------ | -----
|                                                        |  | March 31, 2018     |      
|Investment income:                                      |  |                    |      
|Interest income                                         |  | $                  | 780  
|Total investment
    income                             |  |                    | 780  
|Expenses:                                               |  |                    |      
|Interest and other debt financing expenses              |  |                    | 44   
|Organizational costs                                    |  |                    | 6    
|Professional fees                                       |  |                    | 40   
|Total expenses                                          |  |                    | 90   
|Net investment income (loss)                            |  |                    | 690  
|Net gain (loss) on investments:                         |  |                    |      
|Net change in unrealized gain (loss)
    on investments |  |                    | 545  
|Net gain (loss) on investments                          |  |                    | 545  
|Net increase
    (decrease) in members’ capital         |  | $                  | 1,235










| | (1) | SLF
                                         commenced operations on November 14, 2017.
| | --- | ---------------------------------------------------------------------------------------





32







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 March 31, 2018 and December 31, 2017 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
                                         portfolio investment;
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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



| | · | the
                                         Board also 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 are generally received quarterly;
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





33







| | · | the
                                         audit committee of the Board reviews the preliminary valuations of MC Advisors and of
                                         the independent valuation firm(s) and responds and supplements the valuation recommendations
                                         to reflect any comments; 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 yield approach to determine fair value, 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. The Company generally considers its Level 3 debt to be performing loans 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 yield approach, the Company uses
discounted cash flow models 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 yield 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 Company
typically uses the enterprise value methodology 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.



Secured Borrowings



The Company has elected the fair value
option under ASC Topic 825 — Financial Instruments(‘‘ASC Topic 825’’) relating to accounting
for debt obligations at their fair value for its secured borrowings which arose due to partial loan sales which did not meet the
criteria for sale treatment under ASC Topic 860. The Company reports changes in the fair value of its secured borrowings within
net change in unrealized gain (loss) on secured borrowings in the consolidated statements of operations. The net gain or loss
reflects the difference between the fair value and the principal amount due on maturity.



Due to the absence of a liquid trading
market for these secured borrowings, they are valued by calculating the net present value of the future expected cash flow streams
using an appropriate risk-adjusted discount rate model. The discount rate considers projected performance of the related loan
investment, applicable market yields and leverage levels, credit quality, prepayment penalties and comparable company analysis.
The Company consults with an independent valuation firm relative to the fair value of its secured borrowings at least once in
every calendar year.



Fair Value Disclosures



The following table presents fair value
measurements of investments and secured borrowings, by major class, as of March 31, 2018, according to the fair value hierarchy:



|                                        |  | Fair Value Measurements |  
|--------------------------------------- |  | ----------------------- | -
|                                        |  | Level 1                 |  
|Investments:                            |  |                         |  
|Senior secured loans                    |  | $                       | —
|Unitranche secured loans                |  |                         | —
|Junior secured loans                    |  |                         | —
|Equity securities                       |  |                         | —
|Investments
    measured at NAV (1) (2) |  |                         | —
|Total Investments                       |  | $                       | —





34







The following table presents fair value
measurements of investments and secured borrowings, by major class, as of December 31, 2017, according to the fair value
hierarchy:



|                                        |  | Fair Value Measurements |  
|--------------------------------------- |  | ----------------------- | -
|                                        |  | Level 1                 |  
|Investments:                            |  |                         |  
|Senior secured loans                    |  | $                       | —
|Unitranche secured loans                |  |                         | —
|Junior secured loans                    |  |                         | —
|Equity securities                       |  |                         | —
|Investments
    measured at NAV (1) (2) |  |                         | —
|Total Investments                       |  | $                       | —






|(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 in 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, unitranche 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 between 6.88% to 16.38% at March 31, 2018 and 6.57% to 15.00%
at December 31, 2017. The maturity dates on the loans outstanding at March 31, 2018 range between April 2018 and August 2025.



The following tables provide a reconciliation
of the beginning and ending balances for investments and secured borrowings that use Level 3 inputs for the three months ended
March 31, 2018 and 2017:



|                                                                  |  | Investments          |         |   |                              |  
|----------------------------------------------------------------- |  | -------------------- | ------- | - | ---------------------------- | -
|                                                                  |  | Senior secured loans |         |   | Unitranche secured
    loans |  
|Balance as of December 31, 2017                                   |  | $                    | 387,874 |   |                              | $
|Net change in unrealized gain (loss) on investments               |  |                      | (3,927  | ) |                              |  
|Net realized gain (loss) on investments                           |  |                      | —       |   |                              |  
|Purchases of investments
    and other adjustments to cost (1)    |  |                      | 12,024  |   |                              |  
|Proceeds from principal
    payments and sales on investments (2) |  |                      | (15,856 | ) |                              |  
|Net change in unrealized gain (loss) on secured borrowings        |  |                      | —       |   |                              |  
|Repayments on secured borrowings                                  |  |                      | —       |   |                              |  
|Net realized (gain) loss on
    secured borrowings                |  |                      | —       |   |                              |  
|Balance as of March 31, 2018                                      |  | $                    | 380,115 |   |                              | $





|                                                                  |  | Investments          |         |   |                              |  
|----------------------------------------------------------------- |  | -------------------- | ------- | - | ---------------------------- | -
|                                                                  |  | Senior secured loans |         |   | Unitranche secured
    loans |  
|Balance as of December 31, 2016                                   |  | $                    | 275,253 |   |                              | $
|Net change in unrealized gain (loss) on investments               |  |                      | (2,241  | ) |                              |  
|Net realized gain (loss) on investments                           |  |                      | 41      |   |                              |  
|Purchases of investments
    and other adjustments to cost (1)    |  |                      | 42,156  |   |                              |  
|Proceeds from principal
    payments and sales on investments (2) |  |                      | (14,986 | ) |                              |  
|Net change in unrealized gain (loss) on secured borrowings        |  |                      | —       |   |                              |  
|Repayments on secured borrowings                                  |  |                      | —       |   |                              |  
|Net realized (gain) loss on
    secured borrowings                |  |                      | —       |   |                              |  
|Balance as of March 31, 2017                                      |  | $                    | 300,223 |   |                              | $










| | (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.
| | --- | -----------------------------------------------------------------------------------------------------------------------





35







The total change in unrealized gain (loss)
included in the consolidated statements of operations within net change in unrealized gain (loss) on investments for the three
months ended March 31, 2018 and 2017, attributable to Level 3 investments still held at March 31, 2018 and 2017, was ($6,219)
and ($2,727), respectively. The total change in unrealized (gain) loss included in the consolidated statements of operations within
net change in unrealized (gain) loss on secured borrowings for the three months ended March 31, 2018 and 2017, attributable to
Level 3 investments still held at March 31, 2018 and 2017, was zero and ($1), 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 months ended March 31, 2018 and 2017.



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 March 31, 2018 were as follows:



|                         |  |            |         |     |                     |                                                          | Unobservable |                               | Weighted Average |  |      | Range   | 
|------------------------ |  | ---------- | ------- | --- | ------------------- | -------------------------------------------------------- | ------------ | ----------------------------- | ---------------- |  | ---- | ------- | 
|                         |  | Fair Value |         |     | Valuation Technique |                                                          | Input        |                               | Mean             |  |      | Minimum | 
|Assets:                  |  |            |         |     |                     |                                                          |              |                               |                  |  |      |         | 
|Senior secured loans     |  | $          | 251,320 |     |                     | Discounted cash flow                                     |              | EBITDA multiples              |                  |  | 7.1  | x       | 
|                         |  |            |         |     |                     |                                                          |              | Market yields                 |                  |  | 11.6 | %       | 
|Senior secured loans     |  |            | 56,621  |     |                     | Discounted cash flow                                     |              | Revenue multiples             |                  |  | 2.2  | x       | 
|                         |  |            |         |     |                     |                                                          |              | Market yields                 |                  |  | 13.8 | %       | 
|Senior secured loans     |  |            | 14,681  |     |                     | Waterfall                                                |              | Delinquency ratio             |                  |  | 0.2  | %       | 
|Senior secured loans     |  |            | 12,929  |     |                     | Combination of discounted cash flow and enterprise value |              | Tangible book value multiples |                  |  | 1.3  | x       | 
|                         |  |            |         |     |                     |                                                          |              | Market yields                 |                  |  | 13.5 | %       | 
|Senior secured loans     |  |            | 9,207   |     |                     | Enterprise value                                         |              | EBITDA multiples              |                  |  | 7.0  | x       | 
|Senior secured loans     |  |            | 3,648   |     |                     | Combination of enterprise value and liquidation          |              | Revenue multiples             |                  |  | 0.1  | x       | 
|Senior secured loans     |  |            | 541     |     |                     | Enterprise value                                         |              | Revenue multiples             |                  |  | 0.5  | x       | 
|Unitranche secured loans |  |            | 45,679  |     |                     | Discounted cash flow                                     |              | EBITDA multiples              |                  |  | 6.2  | x       | 
|                         |  |            |         |     |                     |                                                          |              | Market yields                 |                  |  | 16.3 | %       | 
|Unitranche secured loans |  |            | 297     |     |                     | Enterprise value                                         |              | EBITDA multiples              |                  |  | 5.0  | x       | 
|Junior secured loans     |  |            | 5,625   |     |                     | Discounted cash flow                                     |              | EBITDA multiples              |                  |  | 9.4  | x       | 
|                         |  |            |         |     |                     |                                                          |              | Market yields                 |                  |  | 11.4 | %       | 
|Equity securities        |  |            | 8,503   |     |                     | Discounted cash flow                                     |              | EBITDA multiples              |                  |  | 4.3  | x       | 
|                         |  |            |         |     |                     |                                                          |              | Market yields                 |                  |  | 22.0 | %       | 
|Equity securities        |  |            | 3,561   |     |                     | Enterprise value                                         |              | Revenue multiples             |                  |  | 0.4  | x       | 
|Equity securities        |  |            | 1,574   |     |                     | Enterprise value                                         |              | EBITDA multiples              |                  |  | 7.0  | x       | 
|Equity securities        |  |            | 227     |     |                     | Enterprise value                                         |              | Tangible book value multiples |                  |  | 1.3  | x       | 
|Total Level 3 Assets     |  | $          | 414,413 | (1) |                     |                                                          |              |                               |                  |  |      |         | 










| | (1) | Excludes
                                         loans of $65,288 at fair value where valuation (unadjusted) is obtained from a third-party
                                         pricing service for which such disclosure is not required. Also excludes the Company’s
                                         investment in SLF of $16,333.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



36







The valuation techniques and significant
unobservable inputs used in recurring Level 3 fair value measurements of assets and liabilities as of December 31, 2017 were
as follows:



|                         |  |            |         |     |                     |                      | Unobservable |                               | Weighted Average |  |      | Range   | 
|------------------------ |  | ---------- | ------- | --- | ------------------- | -------------------- | ------------ | ----------------------------- | ---------------- |  | ---- | ------- | 
|                         |  | Fair Value |         |     | Valuation Technique |                      | Input        |                               | Mean             |  |      | Minimum | 
|Assets:                  |  |            |         |     |                     |                      |              |                               |                  |  |      |         | 
|Senior secured loans     |  | $          | 300,882 |     |                     | Discounted cash flow |              | EBITDA multiples              |                  |  | 6.8  | x       | 
|                         |  |            |         |     |                     |                      |              | Market yields                 |                  |  | 11.6 | %       | 
|Senior secured loans     |  |            | 15,654  |     |                     | Waterfall            |              | Delinquency ratio             |                  |  | 0.0  | %       | 
|Senior secured loans     |  |            | 12,967  |     |                     | Discounted cash flow |              | Tangible book value multiples |                  |  | 1.3  | x       | 
|                         |  |            |         |     |                     |                      |              | Market yields                 |                  |  | 14.5 | %       | 
|Senior secured loans     |  |            | 9,516   |     |                     | Discounted cash flow |              | Revenue multiples             |                  |  | 4.0  | x       | 
|                         |  |            |         |     |                     |                      |              | Market yields                 |                  |  | 8.8  | %       | 
|Senior secured loans     |  |            | 8,718   |     |                     | Enterprise value     |              | EBITDA multiples              |                  |  | 7.5  | x       | 
|Senior secured loans     |  |            | 8,516   |     |                     | Enterprise value     |              | Revenue multiples             |                  |  | 0.3  | x       | 
|Unitranche secured loans |  |            | 40,000  |     |                     | Discounted cash flow |              | EBITDA multiples              |                  |  | 6.2  | x       | 
|                         |  |            |         |     |                     |                      |              | Market yields                 |                  |  | 15.0 | %       | 
|Unitranche secured loans |  |            | 295     |     |                     | Enterprise value     |              | EBITDA multiples              |                  |  | 5.0  | x       | 
|Junior secured loans     |  |            | 5,625   |     |                     | Discounted cash flow |              | EBITDA multiples              |                  |  | 9.1  | x       | 
|                         |  |            |         |     |                     |                      |              | Market yields                 |                  |  | 11.1 | %       | 
|Equity securities        |  |            | 8,429   |     |                     | Discounted cash flow |              | EBITDA multiples              |                  |  | 4.0  | x       | 
|                         |  |            |         |     |                     |                      |              | Market yields                 |                  |  | 21.0 | %       | 
|Equity securities        |  |            | 5,892   |     |                     | Enterprise value     |              | Revenue multiples             |                  |  | 0.4  | x       | 
|Equity securities        |  |            | 1,767   |     |                     | Enterprise value     |              | EBITDA multiples              |                  |  | 6.8  | x       | 
|Equity securities        |  |            | 353     |     |                     | Enterprise value     |              | Tangible book value multiples |                  |  | 1.3  | x       | 
|Total Level 3 Assets     |  | $          | 418,614 | (1) |                     |                      |              |                               |                  |  |      |         | 










| | (1) | Excludes
                                         loans of $65,884 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 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.



The significant unobservable inputs used
in the yield 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.



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. The Company believes that the carrying value of its revolving credit facility approximates
fair value. SBA-guaranteed 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 March 31, 2018 and December 31, 2017, the fair value of
the Company’s SBA debentures using Level 3 inputs were estimated at$112,800 and
$109,520, respectively, which is the same as the Company’s carrying value of the SBA debentures.



37







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 three months ended March 31, 2018 and 2017 were as follows:



|Portfolio Company                                                                 |  | Fair value atDecember 31, 2017 |        |  | Transfersin (out) |   |      | Purchases(cost) |  |   | Sales andpaydowns(cost) |  |  | PIKinterest(cost) |        |   | Discountaccretion |   |     | Net realizedgains (losses) |  |   | Net unrealizedgains (losses) |  |  | Fair value atMarch 31, 2018 |  
|--------------------------------------------------------------------------------- |  | ------------------------------ | ------ |  | ----------------- | - | ---- | --------------- |  | - | ----------------------- |  |  | ----------------- | ------ | - | ----------------- | - | --- | -------------------------- |  | - | ---------------------------- |  |  | --------------------------- | -
|Non-controlled affiliate
    company investments :                                |  |                                |        |  |                   |   |      |                 |  |   |                         |  |  |                   |        |   |                   |   |     |                            |  |   |                              |  |  |                             |  
|American
    Community Homes, Inc.                                                |  | $                              | 7,441  |  |                   | $ | —    |                 |  | $ | —                       |  |  | $                 | (331   | ) |                   | $ | —   |                            |  | $ | 11                           |  |  | $                           | —
|American Community
    Homes, Inc.                                                |  |                                | 4,329  |  |                   |   | —    |                 |  |   | —                       |  |  |                   | (165   | ) |                   |   | 49  |                            |  |   | 5                            |  |  |                             | —
|American Community
    Homes, Inc.                                                |  |                                | 542    |  |                   |   | —    |                 |  |   | —                       |  |  |                   | —      |   |                   |   | 7   |                            |  |   | 1                            |  |  |                             | —
|American Community
    Homes, Inc.                                                |  |                                | 431    |  |                   |   | —    |                 |  |   | —                       |  |  |                   | —      |   |                   |   | —   |                            |  |   | 1                            |  |  |                             | —
|American Community
    Homes, Inc.                                                |  |                                | 224    |  |                   |   | —    |                 |  |   | —                       |  |  |                   | —      |   |                   |   | 2   |                            |  |   | 1                            |  |  |                             | —
|American Community
    Homes, Inc. (Delayed Draw)                                 |  |                                | —      |  |                   |   | —    |                 |  |   | —                       |  |  |                   | —      |   |                   |   | —   |                            |  |   | —                            |  |  |                             | —
|American Community
    Homes, Inc. (Delayed Draw)                                 |  |                                | —      |  |                   |   | —    |                 |  |   | —                       |  |  |                   | —      |   |                   |   | —   |                            |  |   | —                            |  |  |                             | —
|American
    Community Homes, Inc. (warrant to purchase up to 9.0% of the equity) |  |                                | 353    |  |                   |   | —    |                 |  |   | —                       |  |  |                   | —      |   |                   |   | —   |                            |  |   | —                            |  |  |                             | —
|                                                                                  |  |                                | 13,320 |  |                   |   | —    |                 |  |   | —                       |  |  |                   | (496   | ) |                   |   | 58  |                            |  |   | 19                           |  |  |                             | —
|                                                                                  |  |                                |        |  |                   |   |      |                 |  |   |                         |  |  |                   |        |   |                   |   |     |                            |  |   |                              |  |  |                             |  
|Luxury Optical Holdings
    Co.                                                   |  |                                | 3,697  |  |                   |   | —    |                 |  |   | —                       |  |  |                   | —      |   |                   |   | 103 |                            |  |   | 4                            |  |  |                             | —
|Luxury Optical Holdings
    Co. (Delayed Draw)                                    |  |                                | 741    |  |                   |   | —    |                 |  |   | —                       |  |  |                   | (118   | ) |                   |   | —   |                            |  |   | —                            |  |  |                             | —
|Luxury Optical Holdings
    Co. (Revolver)                                        |  |                                | 170    |  |                   |   | —    |                 |  |   | —                       |  |  |                   | —      |   |                   |   | 5   |                            |  |   | —                            |  |  |                             | —
|Luxury
    Optical Holdings Co. (86 shares of common stock)                       |  |                                | —      |  |                   |   | —    |                 |  |   | —                       |  |  |                   | —      |   |                   |   | —   |                            |  |   | —                            |  |  |                             | —
|                                                                                  |  |                                | 4,608  |  |                   |   | —    |                 |  |   | —                       |  |  |                   | (118   | ) |                   |   | 108 |                            |  |   | 4                            |  |  |                             | —
|                                                                                  |  |                                |        |  |                   |   |      |                 |  |   |                         |  |  |                   |        |   |                   |   |     |                            |  |   |                              |  |  |                             |  
|Millennial Brands LLC                                                             |  |                                | —      |  |                   |   | —    |                 |  |   | —                       |  |  |                   | —      |   |                   |   | —   |                            |  |   | —                            |  |  |                             | —
|Millennial Brands LLC                                                             |  |                                | —      |  |                   |   | —    |                 |  |   | —                       |  |  |                   | —      |   |                   |   | —   |                            |  |   | —                            |  |  |                             | —
|Millennial Brands LLC                                                             |  |                                | —      |  |                   |   | —    |                 |  |   | —                       |  |  |                   | —      |   |                   |   | —   |                            |  |   | —                            |  |  |                             | —
|Millennial Brands LLC                                                             |  |                                | 550    |  |                   |   | —    |                 |  |   | —                       |  |  |                   | —      |   |                   |   | —   |                            |  |   | —                            |  |  |                             | —
|Millennial Brands LLC                                                             |  |                                | —      |  |                   |   | —    |                 |  |   | —                       |  |  |                   | —      |   |                   |   | —   |                            |  |   | —                            |  |  |                             | —
|Millennial Brands LLC
    (10 preferred units)                                    |  |                                | —      |  |                   |   | —    |                 |  |   | —                       |  |  |                   | —      |   |                   |   | —   |                            |  |   | —                            |  |  |                             | —
|Millennial
    Brands LLC (75,502 common units)                                   |  |                                | —      |  |                   |   | —    |                 |  |   | —                       |  |  |                   | —      |   |                   |   | —   |                            |  |   | —                            |  |  |                             | —
|                                                                                  |  |                                | 550    |  |                   |   | —    |                 |  |   | —                       |  |  |                   | —      |   |                   |   | —   |                            |  |   | —                            |  |  |                             | —
|                                                                                  |  |                                |        |  |                   |   |      |                 |  |   |                         |  |  |                   |        |   |                   |   |     |                            |  |   |                              |  |  |                             |  
|Rockdale Blackhawk,
    LLC                                                       |  |                                | 10,594 |  |                   |   | —    |                 |  |   | —                       |  |  |                   | —      |   |                   |   | —   |                            |  |   | 54                           |  |  |                             | —
|Rockdale Blackhawk,
    LLC (Capex)                                               |  |                                | 533    |  |                   |   | —    |                 |  |   | —                       |  |  |                   | —      |   |                   |   | —   |                            |  |   | —                            |  |  |                             | —
|Rockdale Blackhawk,
    LLC (Revolver)                                            |  |                                | 1,797  |  |                   |   | —    |                 |  |   | —                       |  |  |                   | —      |   |                   |   | —   |                            |  |   | —                            |  |  |                             | —
|Rockdale Blackhawk,
    LLC (Revolver)                                            |  |                                | 3,145  |  |                   |   | —    |                 |  |   | —                       |  |  |                   | —      |   |                   |   | —   |                            |  |   | —                            |  |  |                             | —
|Rockdale Blackhawk,
    LLC (Revolver)                                            |  |                                | —      |  |                   |   | —    |                 |  |   | 1,387                   |  |  |                   | —      |   |                   |   | —   |                            |  |   | —                            |  |  |                             | —
|Rockdale
    Blackhawk, LLC – LLC Units (22.65% of the LLC interest) (1)          |  |                                | 5,673  |  |                   |   | —    |                 |  |   | —                       |  |  |                   | —      |   |                   |   | —   |                            |  |   | —                            |  |  |                             | —
|                                                                                  |  |                                | 21,742 |  |                   |   | —    |                 |  |   | 1,387                   |  |  |                   | —      |   |                   |   | —   |                            |  |   | 54                           |  |  |                             | —
|                                                                                  |  |                                |        |  |                   |   |      |                 |  |   |                         |  |  |                   |        |   |                   |   |     |                            |  |   |                              |  |  |                             |  
|SHI Holdings, Inc.                                                                |  |                                | 2,625  |  |                   |   | —    |                 |  |   | —                       |  |  |                   | (7     | ) |                   |   | —   |                            |  |   | 4                            |  |  |                             | —
|SHI Holdings, Inc.
    (Revolver)                                                 |  |                                | 2,226  |  |                   |   | —    |                 |  |   | 328                     |  |  |                   | —      |   |                   |   | —   |                            |  |   | 1                            |  |  |                             | —
|SHI
    Holdings, Inc. (24 shares of common stock)                                |  |                                | 786    |  |                   |   | —    |                 |  |   | —                       |  |  |                   | —      |   |                   |   | —   |                            |  |   | —                            |  |  |                             | —
|                                                                                  |  |                                | 5,637  |  |                   |   | —    |                 |  |   | 328                     |  |  |                   | (7     | ) |                   |   | —   |                            |  |   | 5                            |  |  |                             | —
|                                                                                  |  |                                |        |  |                   |   |      |                 |  |   |                         |  |  |                   |        |   |                   |   |     |                            |  |   |                              |  |  |                             |  
|Summit Container Corporation                                                      |  |                                | 3,421  |  |                   |   | —    |                 |  |   | —                       |  |  |                   | —      |   |                   |   | 18  |                            |  |   | 6                            |  |  |                             | —
|Summit Container Corporation                                                      |  |                                | 1,507  |  |                   |   | —    |                 |  |   | —                       |  |  |                   | —      |   |                   |   | 8   |                            |  |   | —                            |  |  |                             | —
|Summit
    Container Corporation (warrant to purchase up to 19.50% of the equity) |  |                                | —      |  |                   |   | —    |                 |  |   | —                       |  |  |                   | —      |   |                   |   | —   |                            |  |   | —                            |  |  |                             | —
|                                                                                  |  |                                | 4,928  |  |                   |   | —    |                 |  |   | —                       |  |  |                   | —      |   |                   |   | 26  |                            |  |   | 6                            |  |  |                             | —
|                                                                                  |  |                                |        |  |                   |   |      |                 |  |   |                         |  |  |                   |        |   |                   |   |     |                            |  |   |                              |  |  |                             |  
|TPP Operating, Inc.
    (2) (3)                                                   |  |                                | —      |  |                   |   | —    |                 |  |   | —                       |  |  |                   | —      |   |                   |   | —   |                            |  |   | —                            |  |  |                             | —
|TPP Operating, Inc.
    (2) (3)                                                   |  |                                | 3,373  |  |                   |   | 724  |                 |  |   | 63                      |  |  |                   | (42    | ) |                   |   | —   |                            |  |   | —                            |  |  |                             | —
|TPP Operating, Inc.
    (2) (3)                                                   |  |                                | 4,593  |  |                   |   | (724 | )               |  |   | 467                     |  |  |                   | (47    | ) |                   |   | —   |                            |  |   | —                            |  |  |                             | —
|TPP Operating, Inc.
    (24 shares of common stock) (2) (3)                       |  |                                | —      |  |                   |   | —    |                 |  |   | —                       |  |  |                   | —      |   |                   |   | —   |                            |  |   | —                            |  |  |                             | —
|TPP
    Operating, Inc. (16 shares of common stock) (2) (3)                       |  |                                | —      |  |                   |   | —    |                 |  |   | —                       |  |  |                   | —      |   |                   |   | —   |                            |  |   | —                            |  |  |                             | —
|                                                                                  |  |                                | 7,966  |  |                   |   | —    |                 |  |   | 530                     |  |  |                   | (89    | ) |                   |   | —   |                            |  |   | —                            |  |  |                             | —
|Total
    non-controlled affiliate company investments                            |  | $                              | 58,751 |  |                   | $ | —    |                 |  | $ | 2,245                   |  |  | $                 | (710   | ) |                   | $ | 192 |                            |  | $ | 88                           |  |  | $                           | —
|                                                                                  |  |                                |        |  |                   |   |      |                 |  |   |                         |  |  |                   |        |   |                   |   |     |                            |  |   |                              |  |  |                             |  
|Controlled affiliate
    company investments :                                    |  |                                |        |  |                   |   |      |                 |  |   |                         |  |  |                   |        |   |                   |   |     |                            |  |   |                              |  |  |                             |  
|MRCC Senior Loan Fund
    I, LLC                                                  |  | $                              | 9,640  |  |                   | $ | —    |                 |  | $ | 15,750                  |  |  | $                 | (9,500 | ) |                   | $ | —   |                            |  | $ | —                            |  |  | $                           | —
|                                                                                  |  |                                | 9,640  |  |                   |   | —    |                 |  |   | 15,750                  |  |  |                   | (9,500 | ) |                   |   | —   |                            |  |   | —                            |  |  |                             | —
|Total
    controlled affiliate company investments                                |  | $                              | 9,640  |  |                   | $ | —    |                 |  | $ | 15,750                  |  |  | $                 | (9,500 | ) |                   | $ | —   |                            |  | $ | —                            |  |  | $                           | —



38







|Portfolio Company                                                                 |  | Fair value atDecember 31, 2016 |        |  | Transfersin (out) |   |   | Purchases(cost) |  |   | Sales andpaydowns(cost) |  |  | PIKinterest(cost) |     |   | Discountaccretion |   |     | Net realizedgains (losses) |  |   | Net unrealizedgains (losses) |  |  | Fair value atMarch 31, 2017 |  
|--------------------------------------------------------------------------------- |  | ------------------------------ | ------ |  | ----------------- | - | - | --------------- |  | - | ----------------------- |  |  | ----------------- | --- | - | ----------------- | - | --- | -------------------------- |  | - | ---------------------------- |  |  | --------------------------- | -
|Non-controlled affiliate
    company investments :                                |  |                                |        |  |                   |   |   |                 |  |   |                         |  |  |                   |     |   |                   |   |     |                            |  |   |                              |  |  |                             |  
|American
    Community Homes, Inc.                                                |  | $                              | 7,816  |  |                   | $ | — |                 |  | $ | —                       |  |  | $                 | —   |   |                   | $ | —   |                            |  | $ | 10                           |  |  | $                           | —
|American Community
    Homes, Inc.                                                |  |                                | 4,301  |  |                   |   | — |                 |  |   | —                       |  |  |                   | —   |   |                   |   | 49  |                            |  |   | 5                            |  |  |                             | —
|American Community
    Homes, Inc.                                                |  |                                | 518    |  |                   |   | — |                 |  |   | —                       |  |  |                   | —   |   |                   |   | 6   |                            |  |   | 1                            |  |  |                             | —
|American
    Community Homes, Inc. (warrant to purchase up to 9.0% of the equity) |  |                                | 1,315  |  |                   |   | — |                 |  |   | —                       |  |  |                   | —   |   |                   |   | —   |                            |  |   | —                            |  |  |                             | —
|                                                                                  |  |                                | 13,950 |  |                   |   | — |                 |  |   | —                       |  |  |                   | —   |   |                   |   | 55  |                            |  |   | 16                           |  |  |                             | —
|                                                                                  |  |                                |        |  |                   |   |   |                 |  |   |                         |  |  |                   |     |   |                   |   |     |                            |  |   |                              |  |  |                             |  
|Millennial Brands LLC                                                             |  |                                | 464    |  |                   |   | — |                 |  |   | —                       |  |  |                   | —   |   |                   |   | 33  |                            |  |   | —                            |  |  |                             | —
|Millennial Brands LLC                                                             |  |                                | 365    |  |                   |   | — |                 |  |   | —                       |  |  |                   | —   |   |                   |   | 15  |                            |  |   | 1                            |  |  |                             | —
|Millennial Brands LLC                                                             |  |                                | 225    |  |                   |   | — |                 |  |   | —                       |  |  |                   | —   |   |                   |   | 10  |                            |  |   | —                            |  |  |                             | —
|Millennial Brands LLC                                                             |  |                                | —      |  |                   |   | — |                 |  |   | —                       |  |  |                   | —   |   |                   |   | 72  |                            |  |   | —                            |  |  |                             | —
|Millennial Brands LLC
    (10 preferred units)                                    |  |                                | —      |  |                   |   | — |                 |  |   | —                       |  |  |                   | —   |   |                   |   | —   |                            |  |   | —                            |  |  |                             | —
|Millennial
    Brands LLC (75,502 common units)                                   |  |                                | —      |  |                   |   | — |                 |  |   | —                       |  |  |                   | —   |   |                   |   | —   |                            |  |   | —                            |  |  |                             | —
|                                                                                  |  |                                | 1,054  |  |                   |   | — |                 |  |   | —                       |  |  |                   | —   |   |                   |   | 130 |                            |  |   | 1                            |  |  |                             | —
|                                                                                  |  |                                |        |  |                   |   |   |                 |  |   |                         |  |  |                   |     |   |                   |   |     |                            |  |   |                              |  |  |                             |  
|Rockdale Blackhawk,
    LLC                                                       |  |                                | 10,933 |  |                   |   | — |                 |  |   | —                       |  |  |                   | —   |   |                   |   | —   |                            |  |   | 47                           |  |  |                             | —
|Rockdale Blackhawk,
    LLC (Capex)                                               |  |                                | 565    |  |                   |   | — |                 |  |   | —                       |  |  |                   | (16 | ) |                   |   | —   |                            |  |   | —                            |  |  |                             | —
|Rockdale Blackhawk,
    LLC (Revolver)                                            |  |                                | 924    |  |                   |   | — |                 |  |   | 925                     |  |  |                   | —   |   |                   |   | —   |                            |  |   | —                            |  |  |                             | —
|Rockdale
    Blackhawk, LLC - LLC Units (11.56% of the LLC interest)              |  |                                | 14,655 |  |                   |   | — |                 |  |   | —                       |  |  |                   | —   |   |                   |   | —   |                            |  |   | —                            |  |  |                             | —
|                                                                                  |  |                                | 27,077 |  |                   |   | — |                 |  |   | 925                     |  |  |                   | (16 | ) |                   |   | —   |                            |  |   | 47                           |  |  |                             | —
|                                                                                  |  |                                |        |  |                   |   |   |                 |  |   |                         |  |  |                   |     |   |                   |   |     |                            |  |   |                              |  |  |                             |  
|SHI Holdings, Inc.                                                                |  |                                | 2,625  |  |                   |   | — |                 |  |   | —                       |  |  |                   | —   |   |                   |   | —   |                            |  |   | 4                            |  |  |                             | —
|SHI Holdings, Inc.
    (Revolver)                                                 |  |                                | 1,203  |  |                   |   | — |                 |  |   | 205                     |  |  |                   | —   |   |                   |   | —   |                            |  |   | 1                            |  |  |                             | —
|SHI
    Holdings, Inc. (24 shares of common stock)                                |  |                                | 469    |  |                   |   | — |                 |  |   | —                       |  |  |                   | —   |   |                   |   | —   |                            |  |   | —                            |  |  |                             | —
|                                                                                  |  |                                | 4,297  |  |                   |   | — |                 |  |   | 205                     |  |  |                   | —   |   |                   |   | —   |                            |  |   | 5                            |  |  |                             | —
|                                                                                  |  |                                |        |  |                   |   |   |                 |  |   |                         |  |  |                   |     |   |                   |   |     |                            |  |   |                              |  |  |                             |  
|Summit Container Corporation                                                      |  |                                | 3,550  |  |                   |   | — |                 |  |   | —                       |  |  |                   | (51 | ) |                   |   | 19  |                            |  |   | 6                            |  |  |                             | —
|Summit
    Container Corporation (warrant to purchase up to 19.50% of the equity) |  |                                | 113    |  |                   |   | — |                 |  |   | —                       |  |  |                   | —   |   |                   |   | —   |                            |  |   | —                            |  |  |                             | —
|                                                                                  |  |                                | 3,663  |  |                   |   | — |                 |  |   | —                       |  |  |                   | (51 | ) |                   |   | 19  |                            |  |   | 6                            |  |  |                             | —
|Total
    non-controlled affiliate company investments                            |  | $                              | 50,041 |  |                   | $ | — |                 |  | $ | 1,130                   |  |  | $                 | (67 | ) |                   | $ | 204 |                            |  | $ | 75                           |  |  | $                           | —
|                                                                                  |  |                                |        |  |                   |   |   |                 |  |   |                         |  |  |                   |     |   |                   |   |     |                            |  |   |                              |  |  |                             |  
|Controlled affiliate
    company investments :                                    |  |                                |        |  |                   |   |   |                 |  |   |                         |  |  |                   |     |   |                   |   |     |                            |  |   |                              |  |  |                             |  
|TPP Operating, Inc. (3)                                                           |  | $                              | 1,799  |  |                   | $ | — |                 |  | $ | —                       |  |  | $                 | —   |   |                   | $ | —   |                            |  | $ | —                            |  |  | $                           | —
|TPP Operating, Inc. (3)                                                           |  |                                | 4,344  |  |                   |   | — |                 |  |   | —                       |  |  |                   | —   |   |                   |   | —   |                            |  |   | —                            |  |  |                             | —
|TPP Operating, Inc. (3)                                                           |  |                                | 2,756  |  |                   |   | — |                 |  |   | 2,807                   |  |  |                   | —   |   |                   |   | —   |                            |  |   | —                            |  |  |                             | —
|TPP Operating, Inc. (40 shares of common stock)
    (3)                           |  |                                | —      |  |                   |   | — |                 |  |   | —                       |  |  |                   | —   |   |                   |   | —   |                            |  |   | —                            |  |  |                             | —
|TPP Acquisition, Inc.
    (829 shares of common stock) (3)                        |  |                                | —      |  |                   |   | — |                 |  |   | —                       |  |  |                   | —   |   |                   |   | —   |                            |  |   | —                            |  |  |                             | —
|                                                                                  |  |                                | 8,899  |  |                   |   | — |                 |  |   | 2,807                   |  |  |                   | —   |   |                   |   | —   |                            |  |   | —                            |  |  |                             | —
|Total
    controlled affiliate company investments                                |  | $                              | 8,899  |  |                   | $ | — |                 |  | $ | 2,807                   |  |  | $                 | —   |   |                   | $ | —   |                            |  | $ | —                            |  |  | $                           | —



39







|                                                       |  | For the three months ended March 31, |      
|------------------------------------------------------ |  | ------------------------------------ | -----
|                                                       |  | 2018                                 |      
|Portfolio Company                                      |  | Interestincome                       |      
|Non-controlled affiliate
    company investments :     |  |                                      |      
|American
    Community Homes, Inc.                     |  | $                                    | 336  
|American Community
    Homes, Inc.                     |  |                                      | 241  
|American Community
    Homes, Inc.                     |  |                                      | 30   
|American Community
    Homes, Inc.                     |  |                                      | 20   
|American Community
    Homes, Inc.                     |  |                                      | 13   
|American Community
    Homes, Inc. (Delayed Draw)      |  |                                      | —    
|American Community
    Homes, Inc. (Delayed Draw)      |  |                                      | —    
|American
    Community Homes, Inc. (Warrant)           |  |                                      | —    
|                                                       |  |                                      | 640  
|                                                       |  |                                      |      
|Luxury Optical Holdings
    Co.                        |  |                                      | 107  
|Luxury Optical Holdings
    Co. (Delayed Draw)         |  |                                      | 23   
|Luxury Optical Holdings
    Co. (Revolver)             |  |                                      | 5    
|Luxury
    Optical Holdings Co. (Common stock)         |  |                                      | —    
|                                                       |  |                                      | 135  
|                                                       |  |                                      |      
|Millennial Brands LLC                                  |  |                                      | —    
|Millennial Brands LLC                                  |  |                                      | —    
|Millennial Brands LLC                                  |  |                                      | —    
|Millennial Brands LLC                                  |  |                                      | —    
|Millennial Brands LLC                                  |  |                                      | —    
|Millennial Brands LLC
    (Preferred units)            |  |                                      | —    
|Millennial
    Brands LLC (Common units)               |  |                                      | —    
|                                                       |  |                                      | —    
|                                                       |  |                                      |      
|Rockdale Blackhawk,
    LLC                            |  |                                      | 452  
|Rockdale Blackhawk,
    LLC (Capex)                    |  |                                      | 20   
|Rockdale Blackhawk,
    LLC (Revolver)                 |  |                                      | 67   
|Rockdale Blackhawk,
    LLC (Revolver)                 |  |                                      | 118  
|Rockdale Blackhawk,
    LLC (Revolver)                 |  |                                      | 32   
|Rockdale
    Blackhawk, LLC (LLC interest)             |  |                                      | —    
|                                                       |  |                                      | 689  
|                                                       |  |                                      |      
|SHI Holdings, Inc.                                     |  |                                      | 82   
|SHI Holdings, Inc.
    (Revolver)                      |  |                                      | 70   
|SHI
    Holdings, Inc. (Common stock)                  |  |                                      | —    
|                                                       |  |                                      | 152  
|                                                       |  |                                      |      
|Summit Container Corporation                           |  |                                      | 159  
|Summit Container Corporation                           |  |                                      | 53   
|Summit
    Container Corporation (Warrant)             |  |                                      | —    
|                                                       |  |                                      | 212  
|                                                       |  |                                      |      
|TPP Operating, Inc.                                    |  |                                      | —    
|TPP Operating, Inc.                                    |  |                                      | —    
|TPP Operating, Inc.                                    |  |                                      | —    
|TPP Operating, Inc.
    (Common stock)                 |  |                                      | —    
|TPP
    Operating, Inc. (Common stock)                 |  |                                      | —    
|                                                       |  |                                      | —    
|Total
    non-controlled affiliate company investments |  | $                                    | 1,828
|                                                       |  |                                      |      
|Controlled affiliate
    company investments :         |  |                                      |      
|MRCC Senior Loan Fund I, LLC                           |  | $                                    | —    
|TPP Acquisition, Inc. (Common stock)                   |  |                                      | —    
|TPP Operating, Inc. (Common stock)                     |  |                                      | —    
|TPP Operating, Inc. (Common
    stock)                 |  |                                      | —    
|                                                       |  |                                      | —    
|Total
    controlled affiliate company investments     |  | $                                    | —    










| | (1) | The
                                         Company provided a follow-on investment to Rockdale Blackhawk, LLC (“Rockdale”)
                                         during the three months ended March 31, 2018. In conjunction with the follow-on investment,
                                         the Company also received an additional 4.62% of the equity of Rockdale, increasing total
                                         equity ownership to 22.65%.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





40









| | (2) | In
                                         December 2017, the Company transferred 16% of the equity interest in TPP Operating, Inc.
                                         shares to a wholly-owned entity, MCC Holdco Equity Manager I, LLC (‘‘MCC
                                         Holdco’’), which has an independent manager who has full control over the
                                         operations of MCC Holdco, including the right to vote the shares of TPP Holdco LLC, the
                                         holding company which owns the Company’s equity interest in TPP Operating, Inc.
                                         As a result, the Company now only controls 24.0% of the voting interests in TPP Operating,
                                         Inc. and TPP Acquisition, Inc. is no longer considered a controlled affiliate company
                                         investment. As a result, TPP Operating, Inc. is presented as a non-controlled affiliate
                                         company investment for the three months ended March 31, 2018 and a controlled affiliate
                                         company investment for the three months ended March 31, 2017. As of March 31, 2018, the
                                         Company valued its positions in TPP Operating, Inc. utilizing a combination of an enterprise
                                         value waterfall model and a liquidation analysis. The key inputs to the enterprise value
                                         waterfall model were an estimated 2018 revenue forecast and revenue multiple developed
                                         using comparable public and private company data. The key inputs to the liquidation analysis
                                         were estimated net realizable values for assets of the Company.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





| | (3) | On
                                         September 2, 2016, TPP Acquisition, Inc. filed for bankruptcy as part of a restructuring
                                         process. The existing lenders, including the Company, submitted a credit bid to purchase
                                         certain assets of TPP Acquisition, Inc., which was approved by the bankruptcy court.
                                         The sale closed on November 8, 2016. A new operating company, TPP Operating, Inc., was
                                         formed to acquire certain of the assets of TPP Acquisition, Inc. and continue business
                                         operations. These new operations are no longer encumbered by significant lease liabilities.
                                         The Company initially owned 40% of the equity interests in the new operating company,
                                         TPP Operating, Inc. and owned 40.0% of the equity interests in TPP Acquisition, Inc.,
                                         the former operating company, until its dissolution during the year ended December 31,
                                         2017.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Note 6. Transactions with Related Parties



The
Company has entered into an Investment Advisory and Management Agreement with MC Advisors, 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 and Management Agreement consisting of two components — a base management
fee and an incentive fee. The base management fee is calculated at an annual rate equal to 1.75% of invested assets (calculated
as total assets excluding cash, which includes assets financed using leverage) and is payable in arrears.Base management
fees for the three months ended March 31, 2018 and 2017 were $2,163 and $1,805, 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.



Incentive fees for the three months ended
March 31, 2018 and 2017 were $761 and $1,290, respectively. Incentive
fees for the three months ended March 31, 2018, consisted solely of part one incentive fees (based on net investment income) of
$761, which includes the effect of a $1,084 Incentive Fee Limitation as described above.Incentive fees for the three months
ended March 31, 2017 consisted of part one incentive fees (based on net investment income) of $1,465 and part two incentive fees
(based upon net realized and unrealized gains and losses) of ($175). Part two incentive fees reduced total incentive fees for
the three months ended March 31, 2017 primarily as a result of net unrealized losses during the period.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 gains (losses) 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 gains (losses) plus net unrealized gain (loss). For the three
months ended March 31, 2018 and 2017, no incentive fees were waived.



The Company has entered into an Administration
Agreement with Monroe Capital Management Advisors, LLC (“MC Management”), 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 months ended
March 31, 2018 and 2017, the Company incurred $807 and $830, 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 $324 and $330, respectively, was related to MC Management overhead and salary allocation
and paid directly to MC Management. As of March 31, 2018 and December 31, 2017, $324 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.



41







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 will have a right to use the ‘‘Monroe Capital’’ name at no cost, subject to certain conditions,
for so long as the Advisor or one of its affiliates remains its investment advisor. Other than with respect to this limited license,
the Company has no legal right to the ‘‘Monroe Capital’’ name.



As of March 31, 2018 December 31, 2017,
the Company had accounts payable to members of the Board of $37 and zero, respectively, representing accrued and unpaid fees for
their services.



Note 7. Borrowings



Revolving Credit Facility: As of
March 31, 2018, the Company had U.S. dollar borrowings of $113,250 and non-U.S. dollar borrowings denominated in Great Britain
pounds of £8,800 ($12,334 in U.S. dollars) under its revolving credit facility with ING Capital LLC, as agent, to finance
the purchase of the Company’s assets. 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 borrowings in the Company’s consolidated statements of operations
and totaled ($442) and zero for the three months ended March 31, 2018 and 2017, respectively. 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. As
of December 31, 2017, the Company had U.S. dollar borrowings of $105,200 and non-U.S. dollar borrowings denominated in Great Britain
pounds of £8,800 ($11,892 in U.S. dollars) under its revolving credit facility with ING Capital LLC, as agent, to finance
the purchase of the Company’s assets. As of March 31, 2018, the maximum amount the Company was able to borrow was
$200,000 and this borrowing can be increased to $300,000 pursuant to an accordion feature (subject to maintaining 200% asset coverage,
as defined by the 1940 Act). On February 22, 2017, the Company closed a $40,000 upsize to the revolving credit facility, bringing
the maximum amount the Company is able to borrow from $160,000 to the now current maximum amount of $200,000, in accordance with
the facility’s accordion feature. The maturity date on the facility is December 14, 2020.



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’s ability to borrow under the revolving credit facility is subject to availability under
a defined borrowing base, which varies based on portfolio characteristics and certain eligibility criteria and concentration limits,
as well as required valuation methodologies. The Company may make draws under the revolving credit facility to make or purchase
additional investments through December 2019 and for general working capital purposes until the maturity date of the revolving
credit facility. Borrowings under the revolving credit facility bear interest, at the Company’s election, at an annual rate
of LIBOR (one-month, two-month, three-month or six-month at our discretion based on the term of the borrowing) plus 3.00% (or
2.75% if the Company’s net worth (excluding investments in MRCC SBIC) exceeds $225,000) or at a daily rate equal to 2.00%
per annum plus the greater of the prime interest rate, the federal funds rate plus 0.5% or LIBOR plus 1.0%. In addition to the
stated interest rate on borrowings under the revolving credit facility, the Company is required to pay a 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 65% of the then available
maximum borrowing or a 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 65% of the then available maximum borrowing. As of March 31, 2018 and December 31, 2017,
the outstanding borrowings were accruing at a weighted average interest rate of 4.6% and 4.4%, respectively. The weighted average
interest rate of the revolving credit facility borrowings (excluding debt issuance costs) for the three months ended March 31,
2018 and 2017 was 4.6% and 4.1%, respectively. The weighted average fee rate on the unused portion of the revolving credit facility
for the three months ended March 31, 2018 and 2017 was 0.5% and 0.5%, respectively.



The Company’s ability to borrow under
the revolving credit facility is subject to availability under the borrowing base, which permits the Company to borrow up to 70%
of the fair market value of its portfolio company investments depending on the type of the 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) a
minimum consolidated total net assets at least equal to the greater of (a) 40% of the consolidated total assets on the last day
of each quarter or (b) $120,000 plus 65% of the net proceeds to the Company from sales of its securities after December 14, 2015;
(2) a ratio of total assets (less total liabilities other than indebtedness) to total indebtedness of not less than 2.1 times;
and (3) a ratio of earnings before interest and taxes to interest expense of at least 2.5 times. 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 our 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 are generally limited to 115% of the amount of distributions required to maintain the
Company’s status as a RIC.



See Note 12 for additional disclosure regarding
an amendment to the revolving credit facility which occurred on April 25, 2018.



42







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-guaranteed debentures, subject to the issuance of a leverage commitment by the SBA and other customary
procedures. SBA-guaranteed debentures are non-recourse, interest only debentures with interest payable semi-annually and have
a ten year maturity. The principal amount of SBA-guaranteed debentures is not required to be paid prior to maturity but may be
prepaid at any time without penalty. The interest rate of SBA-guaranteed 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.



SBA regulations currently limit the amount
that an individual SBIC may borrow to a maximum of $150,000 when it has at least $75,000 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 historically
limited a related group of SBICs (commonly referred to as a ‘‘family of funds’’) to a maximum of $225,000
in total borrowings. On December 18, 2015, this family of funds limitation was raised to $350,000 in total borrowings. As the
Company has other affiliated SBICs already in operation, MRCC SBIC was historically limited to a maximum of $40,000 in borrowings.
Pursuant to the increase in the family of funds limitation, the Company submitted a commitment application to the SBA and on April
13, 2016, MRCC SBIC was approved by the SBA for an additional $75,000 in SBA-guaranteed debentures, for a total of $115,000 in
available debentures.



As of March 31, 2018, MRCC SBIC had
$57,624 in leverageable capital and $112,800 in SBA-guaranteed debentures outstanding. As of December 31, 2017, MRCC SBIC had
$57,624 in leverageable capital and $109,520 in SBA-guaranteed debentures outstanding. As of March 31, 2018, the Company has
made all required leverageable capital contributions to MRCC SBIC in order to access the remaining $2,200 in available
SBA-guaranteed debentures.



As of March 31, 2018, MRCC SBIC had the
following SBA-guaranteed debentures outstanding (dollars in thousands):



|Maturity Date  |  | Interest Rate |     |      | Amount |  
|-------------- |  | ------------- | --- | ---- | ------ | -
|September 2024 |  |               | 3.4 | %    |        | $
|March 2025     |  |               | 3.3 | %    |        |  
|March 2025     |  |               | 2.9 | %    |        |  
|September 2025 |  |               | 3.6 | %    |        |  
|March 2027     |  |               | 3.5 | %    |        |  
|September 2027 |  |               | 3.2 | %    |        |  
|March 2028     |  |               | 3.2 | %    |        |  
|September 2028 |  |               | 3.3 | %(1) |        |  
|Total          |  |               |     |      |        | $



As of December 31, 2017, MRCC SBIC had
the following SBA-guaranteed debentures outstanding (dollars in thousands):



|Maturity Date  |  | Interest Rate |     |      | Amount |  
|-------------- |  | ------------- | --- | ---- | ------ | -
|September 2024 |  |               | 3.4 | %    |        | $
|March 2025     |  |               | 3.3 | %    |        |  
|March 2025     |  |               | 2.9 | %    |        |  
|September 2025 |  |               | 3.6 | %    |        |  
|March 2027     |  |               | 3.5 | %    |        |  
|September 2027 |  |               | 3.2 | %    |        |  
|March 2028     |  |               | 2.5 | %(1) |        |  
|March 2028     |  |               | 2.6 | %(1) |        |  
|March 2028     |  |               | 2.7 | %(1) |        |  
|Total          |  |               |     |      |        | $










| | (1) | Represents
                                         an interim rate of interest as the SBA-guaranteed debentures had not yet pooled.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------



On October 2, 2014, the Company was granted
exemptive relief from the SEC for permission to exclude the debt of MRCC SBIC guaranteed by the SBA from the 200% asset coverage
test under the 1940 Act. The receipt of this exemption for this SBA-guaranteed debt increases flexibility under the 200% asset
coverage test.



Secured Borrowings: Certain
partial loan sales do not qualify for sale accounting under ASC Topic 860 because these sales do not meet the definition of a
‘‘participating interest,’’ as defined in the guidance, in order for sale treatment to be allowed. Participations
or other partial loan sales which do not meet the definition of a participating interest remain as an investment on the accompanying
consolidated statements of assets and liabilities and the portion sold is recorded as a secured borrowing in the liabilities section
of the consolidated statements of assets and liabilities. For these partial loan sales, the interest earned on the entire loan
balance is recorded within ‘‘interest income’’ and the interest earned by the buyer in the partial loan
sale is recorded within ‘‘interest and other debt financing expenses’’ in the accompanying consolidated
statements of operations. As of March 31, 2018 and December 31, 2017, there were no secured borrowings.



43







Components of interest expense:
The components of the Company’s interest expense and other debt financing expenses are as follows:



|                                                 |  | Three months ended March 31, |      
|------------------------------------------------ |  | ---------------------------- | -----
|                                                 |  | 2018                         |      
|Interest expense – revolving credit facility     |  | $                            | 1,557
|Interest expense – SBA
    guaranteed debentures |  |                              | 868  
|Amortization of deferred financing costs         |  |                              | 281  
|Interest expense – secured borrowings            |  |                              | —    
|Other                                            |  |                              | —    
|Total interest and other debt financing expenses |  | $                            | 2,706



Note 8. Distributions



The Company’s distributions are recorded
on the record date. The following table summarizes distributions declared during the three months ended March 31, 2018 and 2017:



|DateDeclared                           |  | RecordDate     |  | PaymentDate    |  | AmountPer Share |      |  | CashDistribution |   |       | DRIPSharesIssued |  |  | DRIPSharesValue |  |  | DRIP
    SharesRepurchasedin the OpenMarket |     |  | Cost
    ofDRIP SharesRepurchased | 
|-------------------------------------- |  | -------------- |  | -------------- |  | --------------- | ---- |  | ---------------- | - | ----- | ---------------- |  |  | --------------- |  |  | ------------------------------------------- | --- |  | --------------------------------- | 
|Three months
    ended March 31, 2018: |  |                |  |                |  |                 |      |  |                  |   |       |                  |  |  |                 |  |  |                                             |     |  |                                   | 
|March 1,
    2018                      |  | March 16, 2018 |  | March 30, 2018 |  | $               | 0.35 |  |                  | $ | 7,084 |                  |  |  | —               |  |  | $                                           | —   |  |                                   | 
|Total distributions declared           |  |                |  |                |  | $               | 0.35 |  |                  | $ | 7,084 |                  |  |  | —               |  |  | $                                           | —   |  |                                   | 
|                                       |  |                |  |                |  |                 |      |  |                  |   |       |                  |  |  |                 |  |  |                                             |     |  |                                   | 
|Three months
    ended March 31, 2017: |  |                |  |                |  |                 |      |  |                  |   |       |                  |  |  |                 |  |  |                                             |     |  |                                   | 
|March 7, 2017                          |  | March 17, 2017 |  | March 31, 2017 |  | $               | 0.35 |  |                  | $ | 5,549 |                  |  |  | 16,217          |  |  | $                                           | 254 |  |                                   | 
|Total distributions declared           |  |                |  |                |  | $               | 0.35 |  |                  | $ | 5,549 |                  |  |  | 16,217          |  |  | $                                           | 254 |  |                                   | 



Note 9. Stock Issuances and Repurchases



Stock Issuances: On July 1, 2016,
the Company amended the ATM securities offering program with MLV & Co. LLC (“MLV”) and JMP Securities LLC (“JMP”)
to replace MLV with FBR Capital Markets & Co. (‘‘FBR’’), an affiliate of MLV (the ‘‘Prior
ATM Program’’). On May 12, 2017, the Company entered into new equity distribution agreements with each FBR and JMP
that reference the Company’s current registration statement (the ‘‘ATM Program’’). All other material
terms of the Prior ATM Program remain unchanged under the ATM Program. During the three months ended March 31, 2017, the Company
sold 113,600 shares at an average price of $15.70 per share for gross proceeds of $1,784 under the Prior ATM program. Aggregate
underwriters’ discounts and commissions were $27 and offering costs were $21, resulting in net proceeds of approximately
$1,736. There were no stock issuances during the three months ended March 31, 2018.



Note 10. Commitments and Contingencies



Commitments: As of March 31, 2018
and December 31, 2017, the Company had $36,572 and $41,238, respectively, in outstanding commitments to fund investments under
undrawn revolvers, capital expenditure loans and delayed draw commitments. As described in Note 3, the Company had commitments
up to $34,250 and $40,500, respectively, to SLF, as of March 31, 2018 and December 31, 2017 that may be contributed primarily
for the purpose of funding new investments approved by the SLF investment committee.



Indemnifications: In the normal
course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties
that provide general indemnifications. The Company’s maximum exposure under these agreements is unknown, as these involve
future claims that may be made against the Company but that have not occurred. The Company expects the risk of any future obligations
under these indemnifications to be remote.



Concentration of credit and counterparty
risk: Credit risk arises primarily from the potential inability of counterparties to perform in accordance with the terms
of the contract. In the event that the counterparties do not fulfill their obligations, the Company may be exposed to risk. The
risk of default depends on the creditworthiness of the counterparties or issuers of the instruments. It is the Company’s
policy to review, as necessary, the credit standing of each counterparty.



Market risk: The Company’s
investments and borrowings are subject to market risk. Market risk is the potential for changes in the value due to market changes.
Market risk is directly impacted by the volatility and liquidity in the markets in which the investments and borrowings are traded.



44







Legal proceedings: In the normal
course of business, the Company may be subject to legal and regulatory proceedings that are generally incidental to its ongoing
operations. While there can be no assurance of the ultimate disposition of any such proceedings, the Company is not currently
aware of any such proceedings or disposition that would have a material adverse effect on the Company’s consolidated financial
statements.



Note 11. Financial Highlights



The following is a schedule of financial
highlights for the three months ended March 31, 2018 and 2017:



|                                                                                                                          |  | March 31, 2018 |            |    | March 31, 2017 |  
|------------------------------------------------------------------------------------------------------------------------- |  | -------------- | ---------- | -- | -------------- | -
|Per share data:                                                                                                           |  |                |            |    |                |  
|Net asset value at beginning of period                                                                                    |  | $              | 13.77      |    |                | $
|Net investment income
    (1)                                                                                             |  |                | 0.42       |    |                |  
|Net
    gain (loss) on investments, secured borrowings, foreign currency transactions and foreign currency borrowings (1) |  |                | (0.35      | )  |                |  
|Net increase in net assets
    from operations (1)                                                                        |  |                | 0.07       |    |                |  
|Stockholder distributions
    (2)                                                                                         |  |                | (0.35      | )  |                |  
|Effect
    of share issuances above (below) NAV (3)                                                                       |  |                | —          |    |                |  
|Net asset value at end of period                                                                                          |  | $              | 13.49      |    |                | $
|                                                                                                                          |  |                |            |    |                |  
|Net assets at end of period                                                                                               |  | $              | 273,005    |    |                | $
|Shares outstanding at end of period                                                                                       |  |                | 20,239,957 |    |                |  
|Per share market value at end of period                                                                                   |  | $              | 12.30      |    |                | $
|Total return based on
    market value (4)                                                                                |  |                | (8.06      | )% |                |  
|Total return based on
    average net asset value (5)                                                                     |  |                | 0.50       | %  |                |  
|Ratio/Supplemental data:                                                                                                  |  |                |            |    |                |  
|Ratio of net investment
    income to average net assets (6)                                                              |  |                | 13.29      | %  |                |  
|Ratio of total expenses
    to average net assets (6)(7)                                                                  |  |                | 8.70       | %  |                |  
|Average debt outstanding                                                                                                  |  | $              | 237,017    |    |                | $
|Average debt outstanding per share                                                                                        |  | $              | 11.71      |    |                | $
|Portfolio turnover (8)                                                                                                    |  |                | 5.16       | %  |                |  










| | (1) | Calculated using the weighted average shares
                                         outstanding during the periods presented.
| | --- | -------------------------------------------------------------------------------------------------------------------------------

| | (2) | Management monitors available taxable earnings,
                                         including net investment income and realized capital gains, to determine if a tax return
                                         of capital may occur for the year. To the extent the Company’s taxable earnings
                                         fall below the total amount of the Company’s distributions for that fiscal year,
                                         a portion of those distributions may be deemed a tax return of capital to the Company’s
                                         stockholders. The tax character of distributions will be determined at the end of the
                                         fiscal year. However, if the character of such distributions were determined as of March
                                         31, 2018 and 2017, none of the distributions would have been characterized as a tax return
                                         of capital to the Company’s stockholders; this tax return of capital may differ
                                         from the return of capital calculated with reference to net investment income for financial
                                         reporting purposes.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (3) | Includes the effect of share issuances above
                                         (below) net asset value and the impact of different share amounts used in calculating
                                         per share data as a result of calculating certain per share data based on weighted average
                                         shares outstanding during the period and certain per share data based on shares outstanding
                                         as of a period end or transaction date.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (4) | Total return based on market value is calculated
                                         assuming a purchase of common shares at the market value on the first day and a sale
                                         at the market value on the last day of the periods reported. Distributions, if any, are
                                         assumed for purposes of this calculation to be reinvested at prices obtained under the
                                         Company’s DRIP. Total return based on market value does not reflect brokerage commissions.
                                         Return calculations are not annualized.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (5) | Total return based on average net asset value
                                         is calculated by dividing the net increase in net assets from operations by the average
                                         net asset value. Return calculations are not annualized.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (6) | Ratios are annualized. Incentive fees included
                                         within the ratio are not annualized.
| | --- | ----------------------------------------------------------------------------------------------------------------------------

| | (7) | The following is a schedule of supplemental
                                         ratios for the three months ended March 31, 2018 and 2017. These ratios have been annualized
                                         unless otherwise noted.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|                                                                              |  | March 31, 2018 |      |   | March 31, 2017 | 
|----------------------------------------------------------------------------- |  | -------------- | ---- | - | -------------- | 
|Ratio of interest and other debt financing
    expenses to average net assets |  |                | 3.98 | % |                | 
|Ratio of total expenses (without incentive fees) to
    average net assets    |  |                | 8.42 | % |                | 
|Ratio of incentive fees,
    to average net assets (not annualized) (9)       |  |                | 0.28 | % |                | 



45







| | (8) | Ratios
                                         are not annualized.
| | --- | -------------------------------------------------------------------

| | (9) | The
                                         ratio of waived incentive fees to average net assets was zero and zero for three months
                                         ended March 31, 2018 and 2017, respectively.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Note 12. Subsequent Events



The Company has evaluated subsequent events
through May 8, 2018, the date on which the consolidated financial statements were issued.



On April 25, 2018, the Company entered
into an amendment to its revolving credit agreement (the “Amendment”). The Amendment amends the Company’s revolving
credit agreement to, among other things, (i) remove the pricing step-down related to the Company’s net worth to set the
interest rate the revolving credit facility bears to the stepped-down interest rate of the one-month LIBOR plus 2.75%; (ii) increase
the weighted average leverage ratio from 4.50:1 to 4.75:1; and (iii) add to the borrowing base on a limited basis investments
structured based on loan-to-value metrics, with corresponding adjustments to the eligibility criteria and concentration limits.



46







ITEM 2. MANAGEMENT’S DISCUSSION
AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS



Except as otherwise specified, references
to “we,” “us” and “our” refer to Monroe Capital Corporation and its consolidated subsidiaries.
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with
our consolidated financial statements and related notes appearing in our annual report on Form 10-K (the “Annual Report”)
for the year ended December 31, 2017, filed with the U.S. Securities and Exchange Commission (“SEC”) on March 14,
2018. The information contained in this section should also be read in conjunction with our unaudited consolidated financial statements
and related notes and other financial information appearing elsewhere in this quarterly report on Form 10-Q (the “Quarterly
Report”).



FORWARD-LOOKING STATEMENTS



This Quarterly Report, including Management’s
Discussion and Analysis of Financial Condition and Results of Operations, contains statements that constitute forward-looking
statements, which relate to future events or our future performance or future financial condition. These forward-looking statements
are not historical facts, but rather are based on current expectations, estimates and projections about our company, our industry,
our beliefs and our assumptions. The forward-looking statements contained in this Quarterly Report involve risks and uncertainties,
including statements as to:



| | • | our
                                         future operating results;
| | - | ----------------------------------------------------------------------



| | • | our
                                         business prospects and the prospects of our portfolio companies;
| | - | -------------------------------------------------------------------------------------------------------------



| | • | the
                                         dependence of our future success on the general economy and its impact on the industries
                                         in which we invest;
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | • | the
                                         impact of a protracted decline in the liquidity of credit markets on our business;
| | - | -------------------------------------------------------------------------------------------------------------------------------



| | • | the
                                         impact of increased competition;
| | - | -----------------------------------------------------------------------------



| | • | the
                                         impact of fluctuations in interest rates on our business and our portfolio companies;
| | - | ----------------------------------------------------------------------------------------------------------------------------------



| | • | our
                                         contractual arrangements and relationships with third parties;
| | - | -----------------------------------------------------------------------------------------------------------



| | • | the
                                         valuation of our investments in portfolio companies, particularly those having no liquid
                                         trading market;
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | • | actual
                                         and potential conflicts of interest with MC Advisors and other affiliates of Monroe Capital;
| | - | --------------------------------------------------------------------------------------------------------------------------------------------



| | • | the
                                         ability of our portfolio companies to achieve their objectives;
| | - | ------------------------------------------------------------------------------------------------------------



| | • | the
                                         use of borrowed money to finance a portion of our investments;
| | - | -----------------------------------------------------------------------------------------------------------



| | • | the
                                         adequacy of our financing sources and working capital;
| | - | ---------------------------------------------------------------------------------------------------



| | • | the
                                         timing of cash flows, if any, from the operations of our portfolio companies;
| | - | --------------------------------------------------------------------------------------------------------------------------



| | • | the
                                         ability of MC Advisors to locate suitable investments for us and to monitor and administer
                                         our investments;
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | • | the
                                         ability of MC Advisors or its affiliates to attract and retain highly talented professionals;
| | - | ------------------------------------------------------------------------------------------------------------------------------------------



| | • | our
                                         ability to qualify and maintain our qualification as a RIC and as a business development
                                         company; and
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | • | the
                                         impact of future legislation and regulation on our business and our portfolio companies.
| | - | -------------------------------------------------------------------------------------------------------------------------------------



We use words such as “anticipates,”
“believes,” “expects,” “intends,” “seeks,” “plans,” “estimates,”
“targets,” “expects” and similar expressions to identify forward-looking statements. The forward looking
statements contained in this Quarterly Report involve risks and uncertainties. Our actual results could differ materially from
those implied or expressed in the forward-looking statements for any reason, including the factors set forth in “Part I—Item
1A. Risk Factors” in our Annual Report and “Part II—Item 1A. Risk Factors” in this Quarterly
Report.



Although we believe that the assumptions
on which these forward-looking statements are based are reasonable, any of those assumptions could prove to be inaccurate, and
as a result, the forward-looking statements based on those assumptions also could be inaccurate. Important assumptions include
our ability to originate new loans and investments, certain margins and levels of profitability and the availability of additional
capital. In light of these and other uncertainties, the inclusion of a projection or forward-looking statement in this Quarterly
Report should not be regarded as a representation by us that our plans and objectives will be achieved.







47







We have based the forward-looking statements included in this
Quarterly Report on information available to us on the date of this Quarterly Report, and we assume no obligation to update any
such forward-looking statements. Although we undertake no obligation to revise or update any forward-looking statements in this
Quarterly Report, whether as a result of new information, future events or otherwise, you are advised to consult any additional
disclosures that we may make directly to you or through reports that we in the future may file with the SEC, including Annual
Reports on Form 10-K, Quarterly Reports on Form 10-Q and current reports on Form 8-K.



Overview



Monroe Capital Corporation is an externally
managed, closed-end, non-diversified management investment company that has elected to be treated as a business development company
(‘‘BDC’’) under the Investment Company Act of 1940, as amended (the ‘‘1940 Act’’).
In addition, for tax purposes, we have elected to be treated as a regulated investment company (‘‘RIC’’)
under the subchapter M of the Internal Revenue Code of 1986, as amended (the ‘‘Code’’). We were incorporated
under the Maryland General Corporation Law on February 9, 2011. We are a specialty finance company focused on providing financing
solutions primarily to lower middle-market companies in the United States and Canada. We provide customized financing solutions
focused primarily on senior secured, junior secured and unitranche secured (a combination of senior secured and junior secured
debt in the same facility in which we syndicate a ‘‘first out’’ portion of the loan to an investor and
retain a ‘‘last out’’ portion of the loan) debt and, to a lesser extent, unsecured subordinated debt and
equity, including equity co-investments in preferred and common stock, and warrants.



Our shares are currently
listed on the NASDAQ Global Select Market under the symbol ‘‘MRCC’’.



Our investment objective is to maximize
the total return to our stockholders in the form of current income and capital appreciation through investment in senior, unitranche
secured and junior secured debt and, to a lesser extent, subordinated debt and equity investments. We seek to use our extensive
leveraged finance origination infrastructure and broad expertise in sourcing loans to invest in primarily senior, unitranche secured
and junior secured debt of middle-market companies. Our investments in senior, unitranche, junior secured debt and other investments
generally will range between $2.0 million and $18.0 million each, although this investment size may vary proportionately with
the size of our capital base. As of March 31, 2018, our portfolio included approximately 76.6% senior secured debt, 9.3% unitranche
secured debt, 7.8% junior secured debt and 6.3% equity securities, compared to December 31, 2017, when our portfolio included
approximately 78.5% senior secured debt, 8.2% unitranche secured debt, 7.8% junior secured debt and 5.5% equity securities. We
expect that the companies in which we invest may be leveraged, often as a result of leveraged buy-outs or other recapitalization
transactions, and, in certain cases, will not be rated by national ratings agencies. If such companies were rated, we believe
that they would typically receive a rating below investment grade (between BB and CCC under the Standard & Poor’s system)
from the national rating agencies.



While our primary focus is to maximize
current income and capital appreciation through debt investments in thinly traded or private U.S. companies, we may invest a portion
of the portfolio in opportunistic investments in order to seek to enhance returns to stockholders. Such investments may include
investments in high-yield bonds, distressed debt, private equity or securities of public companies that are not thinly traded
and securities of middle-market companies located outside of the United States. We expect that these public companies generally
will have debt securities that are non-investment grade.



On February
28, 2014, our 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. MRCC SBIC commenced operations on September 16, 2013. As of March 31, 2018, MRCC SBIChad $57.6
million in leverageable capital and $112.8 million in SBA-guaranteed debentures outstanding. See ‘‘SBA Debentures’’
below for more information.



Investment income



We generate interest income on the debt
investments in portfolio company investments that we originate or acquire. Our debt investments, whether in the form of senior,
junior or unitranche secured debt, typically have an initial term of three to seven years and bear interest at a fixed or floating
rate. In some instances we receive payments on our debt investment based on scheduled amortization of the outstanding balances.
In addition, we receive repayments of some of our debt investments prior to their scheduled maturity date. In some cases, our
investments provide for deferred interest of payment-in-kind (‘‘PIK’’) interest. In addition, we may generate
revenue in the form of commitment, origination, amendment, structuring or due diligence fees, fees for providing managerial assistance
and consulting fees. Loan origination fees, original issue discount and market discount or premium are capitalized, and we accrete
or amortize such amounts as interest income. We record prepayment premiums and prepayment gains (losses) on loans as interest
income. As the frequency or volume of the repayments which trigger these prepayment premiums and prepayment gains (losses) may
fluctuate significantly from period to period, the associated interest income recorded may also fluctuate significantly from period
to period. Interest and fee income is recorded on the accrual basis to the extent we expect 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. All other income is recorded into income when earned. We record 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 earned.



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,
we 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. The frequency and volume of the distributions on common equity
securities and LLC and LP investments may fluctuate significantly from period to period.



48







Expenses



Our primary operating expenses include
the payment of fees to MC Advisors under the Investment Advisory and Management Agreement (management and incentive fees), and
the payment of fees to Monroe Capital Management Advisors, LLC (‘‘MC Management’’) for our allocable portion
of overhead and other expenses under the Administration Agreement and other operating costs. See Note 6 to our consolidated financial
statements and ‘‘Related Party Transactions’’ below for additional information on our Investment
Advisory and Management Agreement and Administration agreement. Our expenses also include interest expense on our revolving credit
facility, our SBA-guaranteed debentures and our secured borrowings. We bear all other out-of-pocket costs and expenses of our
operations and transactions.



Net gain (loss) on investments,
secured borrowings and foreign currency transactions



We recognize realized gains or losses on
investments based on the difference between the net proceeds from the disposition and the cost basis of the investment without
regard to unrealized gains or losses previously recognized. We record current period changes in fair value of investments, secured
borrowings, and foreign currency transactions within net change in unrealized gain (loss) on investments, secured borrowings,
and foreign currency borrowings in the consolidated statements of operations.



Portfolio and Investment Activity



During the three months ended March 31,
2018, we invested $4.9 million in one new portfolio company and $27.6 million in 12 existing portfolio companies and had $25.6
million in aggregate amount of sales and principal repayments, resulting in net investments of $6.9 million for the period.



During the three months ended March 31,
2017, we invested $27.3 million in two new portfolio companies and $14.2 million in 14 existing portfolio companies and had $33.8
million in aggregate amount of sales and principal repayments, resulting in net investments of $7.7 million for the period.



The following table shows yield by debt
and preferred equity security type:



|                            |  | March 31, 2018                                       |      |   | December 31, 2017                           | 
|--------------------------- |  | ---------------------------------------------------- | ---- | - | ------------------------------------------- | 
|                            |  | Weighted AverageAnnualizedContractualCouponYield (1) |      |   | WeightedAverageAnnualizedEffectiveYield (2) | 
|Senior secured loans        |  |                                                      | 10.0 | % |                                             | 
|Unitranche secured loans    |  |                                                      | 10.4 |   |                                             | 
|Junior secured loans        |  |                                                      | 9.8  |   |                                             | 
|Preferred equity securities |  |                                                      | 10.8 | % |                                             | 
|Total                       |  |                                                      | 10.0 | % |                                             | 










| | (1) | The
                                         weighted average annualized contractual coupon yield at period end is computed by dividing
                                         (a) the interest income on debt investments and preferred equity investments (with a
                                         stated coupon rate) at the period end contractual coupon rate for each investment by
                                         (b) the par value of our debt investment and the cost basis of our preferred equity investments.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (2) | The
                                         weighted average annualized effective yield on portfolio investments at period end is
                                         computed by dividing (a) interest income on debt investments and preferred equity investments
                                         (with a stated coupon rate) at the period end effective rate for each investment by (b)
                                         the par value of our debt investments and the cost basis of our preferred equity investments.
                                         The weighted average annualized effective yield on portfolio investments is a metric
                                         on the investment portfolio alone and does not represent a return to stockholders. This
                                         metric is not inclusive of our fees and expenses, the impact of leverage on the portfolio
                                         or sales load that may be paid by investors.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



The following table shows the composition
of the investment portfolio (dollars in thousands):



|                           |  | March 31, 2018 |         |  | December 31, 2017 | 
|-------------------------- |  | -------------- | ------- |  | ----------------- | 
|Fair Value:                |  |                |         |  |                   | 
|Senior secured loans       |  | $              | 380,115 |  |                   | 
|Unitranche secured loans   |  |                | 45,976  |  |                   | 
|Junior secured loans       |  |                | 38,578  |  |                   | 
|LLC equity interest in SLF |  |                | 16,333  |  |                   | 
|Equity securities          |  |                | 15,032  |  |                   | 
|Total                      |  | $              | 496,034 |  |                   | 



49







Our portfolio composition remained relatively
consistent with December 31, 2017, with the largest shift in portfolio composition a result of the additional investments made
in SLF during the three months ended March 31, 2018. The increase in contractual interest rates is primarily a result of general
increases in LIBOR. The increase in effective yield was also influenced by discount amortization on our investment in Gibson Brands,
Inc., which was purchased at a significant discount.



The following table shows the portfolio
composition by industry grouping at fair value (dollars in thousands):



|                                          |  | March 31, 2018                |         |  | December 31, 2017                 | 
|----------------------------------------- |  | ----------------------------- | ------- |  | --------------------------------- | 
|                                          |  | Investments at Fair
    Value |         |  | Percentage of Total
    Portfolio | 
|Aerospace & Defense                       |  | $                             | 5,000   |  |                                   | 
|Banking, Finance, Insurance & Real Estate |  |                               | 60,526  |  |                                   | 
|Beverage, Food & Tobacco                  |  |                               | 17,566  |  |                                   | 
|Chemicals, Plastics & Rubber              |  |                               | 10,461  |  |                                   | 
|Construction & Building                   |  |                               | 18,573  |  |                                   | 
|Consumer Goods: Durable                   |  |                               | 11,693  |  |                                   | 
|Consumer Goods: Non-Durable               |  |                               | 29,768  |  |                                   | 
|Containers, Packaging & Glass             |  |                               | 4,967   |  |                                   | 
|Energy: Oil & Gas                         |  |                               | 2,273   |  |                                   | 
|Environmental Industries                  |  |                               | 4,397   |  |                                   | 
|Healthcare & Pharmaceuticals              |  |                               | 65,645  |  |                                   | 
|High Tech Industries                      |  |                               | 50,967  |  |                                   | 
|Hotels, Gaming & Leisure                  |  |                               | 33,241  |  |                                   | 
|Investment Funds & Vehicles               |  |                               | 16,333  |  |                                   | 
|Media: Advertising, Printing & Publishing |  |                               | 23,048  |  |                                   | 
|Media: Broadcasting & Subscription        |  |                               | 15,742  |  |                                   | 
|Media: Diversified & Production           |  |                               | 5,006   |  |                                   | 
|Retail                                    |  |                               | 35,157  |  |                                   | 
|Services: Business                        |  |                               | 34,152  |  |                                   | 
|Services: Consumer                        |  |                               | 21,463  |  |                                   | 
|Telecommunications                        |  |                               | 2,985   |  |                                   | 
|Utilities: Electric                       |  |                               | 2,797   |  |                                   | 
|Wholesale                                 |  |                               | 24,274  |  |                                   | 
|Total                                     |  | $                             | 496,034 |  |                                   | 



Portfolio Asset Quality



MC Advisors’ portfolio management
staff closely monitors all credits, with senior portfolio managers covering agented and more complex investments. MC Advisors
segregates our capital markets investments by industry. The MC Advisors’ monitoring process and projections developed by
Monroe Capital both have daily, weekly, monthly and quarterly components and related reports, each to evaluate performance against
historical, budget and underwriting expectations. MC Advisors’ analysts will monitor performance using standard industry
software tools to provide consistent disclosure of performance. MC Advisors also monitors our investment exposure using a proprietary
trend analysis tool. When necessary, MC Advisors will update our internal risk ratings, borrowing base criteria and covenant compliance
reports.



As part of the monitoring process, MC Advisors
regularly assesses the risk profile of each of our investments and rates each of them based on an internal proprietary system
that uses the categories listed below, which we refer to as MC Advisors’ investment performance rating. For any investment
rated in grades 3, 4 or 5, MC Advisors will increase its monitoring intensity and prepare regular updates for the investment committee,
summarizing current operating results and material impending events and suggesting recommended actions. MC Advisors monitors and,
when appropriate, changes the investment ratings assigned to each investment in our portfolio. In connection with our valuation
process, MC Advisors reviews these investment ratings on a quarterly basis, and our board of directors (the ‘‘Board’’)
reviews and affirms such ratings. A definition of the rating system follows:



50







|InvestmentPerformanceRisk Rating |  | Summary Description                                                                                                                                                                                                                                                                                                                                                                                                 
|-------------------------------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Grade 1                          |  | Includes investments exhibiting the least amount of risk in our portfolio. The issuer is
    performing above expectations or the issuer’s operating trends and risk factors are generally positive.                                                                                                                                                                                                                
|                                 |  |                                                                                                                                                                                                                                                                                                                                                                                                                     
|Grade 2                          |  | Includes investments exhibiting an acceptable level of risk that is similar to the risk
    at the time of origination. The issuer is generally performing as expected or the risk factors are neutral to positive.                                                                                                                                                                                                 
|                                 |  |                                                                                                                                                                                                                                                                                                                                                                                                                     
|Grade 3                          |  | Includes investments performing below expectations and indicates that the investment’s
    risk has increased somewhat since origination. The issuer may be out of compliance with debt covenants; however, scheduled
    loan payments are generally not past due.                                                                                                                                                 
|                                 |  |                                                                                                                                                                                                                                                                                                                                                                                                                     
|Grade 4                          |  | Includes an issuer performing materially below expectations and indicates that the issuer’s
    risk has increased materially since origination. In addition to the issuer being generally out of compliance with debt covenants,
    scheduled loan payments may be past due (but generally not more than six months past due). For grade 4 investments, we intend
    to increase monitoring of the issuer.       
|                                 |  |                                                                                                                                                                                                                                                                                                                                                                                                                     
|Grade 5                          |  | Indicates that the issuer is performing substantially below expectations and the investment
    risk has substantially increased since origination. Most or all of the debt covenants are out of compliance or payments are
    substantially delinquent. Investments graded 5 are not anticipated to be repaid in full and we will reduce the fair market
    value of the loan to the amount we expect to recover.



Our investment performance
risk ratings do not constitute any rating of investments by a nationally recognized statistical rating organization or reflect
or represent any third-party assessment of any of our investments.



In the event of a delinquency or a decision
to rate an investment grade 4 or grade 5, the applicable analyst, in consultation with a member of the investment committee, will
develop an action plan. Such a plan may require a meeting with the borrower’s management or the lender group to discuss
reasons for the default and the steps management is undertaking to address the under-performance, as well as required amendments
and waivers that may be required. In the event of a dramatic deterioration of a credit, MC Advisors intends to form a team or
engage outside advisors to analyze, evaluate and take further steps to preserve its value in the credit. In this regard, we would
expect to explore all options, including in a private equity sponsored investment, assuming certain responsibilities for the private
equity sponsor or a formal sale of the business with oversight of the sale process by us. Several of Monroe Capital’s professionals
are experienced in running work-out transactions and bankruptcies.



The following table shows the distribution
of our investments on the 1 to 5 investment performance rating scale as of March 31, 2018 (dollars in thousands):



|Investment Performance Rating |  | Investments at
    Fair Value |         |  | Percentage of
    Total Investments | 
|----------------------------- |  | ----------------------------- | ------- |  | ----------------------------------- | 
|1                             |  | $                             | 3,548   |  |                                     | 
|2                             |  |                               | 406,650 |  |                                     | 
|3                             |  |                               | 51,139  |  |                                     | 
|4                             |  |                               | 30,508  |  |                                     | 
|5                             |  |                               | 4,189   |  |                                     | 
|Total                         |  | $                             | 496,034 |  |                                     | 



The following table shows the distribution
of our investments on the 1 to 5 investment performance rating scale as of December 31, 2017 (dollars in thousands):



|Investment Performance Rating |  | Investments at
    Fair Value |         |  | Percentage of
    Total Investments | 
|----------------------------- |  | ----------------------------- | ------- |  | ----------------------------------- | 
|1                             |  | $                             | 3,445   |  |                                     | 
|2                             |  |                               | 415,094 |  |                                     | 
|3                             |  |                               | 57,547  |  |                                     | 
|4                             |  |                               | 18,052  |  |                                     | 
|5                             |  |                               | —       |  |                                     | 
|Total                         |  | $                             | 494,138 |  |                                     | 



51









Results of Operations



Operating results were as follows (in thousands):



|                                                                        |  | Three months ended March 31, |       
|----------------------------------------------------------------------- |  | ---------------------------- | ------
|                                                                        |  | 2018                         |       
|Total investment income                                                 |  | $                            | 14,950
|Total expenses                                                          |  |                              | 6,485 
|Net investment income                                                   |  |                              | 8,465 
|Net realized gain (loss) on investments                                 |  |                              | —     
|Net realized gain (loss) on foreign currency transactions               |  |                              | 12    
|Net change in unrealized gain (loss) on investments                     |  |                              | (6,645
|Net change in unrealized gain (loss) on secured borrowings              |  |                              | —     
|Net change in unrealized gain (loss)
    on foreign currency borrowings |  |                              | (442  
|Net increase (decrease) in net
    assets resulting from operations     |  | $                            | 1,390 



Investment Income



The composition of our investment income
was as follows (in thousands):



|                                                   |  | Three months ended March 31, |       
|-------------------------------------------------- |  | ---------------------------- | ------
|                                                   |  | 2018                         |       
|Interest income                                    |  | $                            | 12,626
|Dividend income                                    |  |                              | 435   
|Fee income                                         |  |                              | 724   
|Prepayment gain (loss)                             |  |                              | 133   
|Accretion of discounts and amortization of premium |  |                              | 1,032 
|Total investment income                            |  | $                            | 14,950



The increase in investment income of $2.9
million during the three months ended March 31, 2018 as compared to the three months ended March 31, 2017, is primarily due to
an increase in average outstanding loan balances and an increase in the effective rate on the portfolio. The increase in the effective
rate on the portfolio is driven in part by increases in underlying LIBOR rates as well as an increase in net accretion of discounts.
These increases were partially offset by a decrease in prepayment gain (loss) as a result of a reduction in the volume of loan
payoff activity. The increase in dividend income during the three months ended March 31, 2018, as compared to the prior year period,
is driven by an increase in dividend income from our investment in SLF of $0.2 million.



Operating Expenses



The composition of our operating expenses
was as follows (dollars in thousands):



|                                           |  | Three months ended March 31, |      
|------------------------------------------ |  | ---------------------------- | -----
|                                           |  | 2018                         |      
|Interest and other debt financing expenses |  | $                            | 2,706
|Base management fees                       |  |                              | 2,163
|Incentive fees (1)                         |  |                              | 761  
|Professional fees                          |  |                              | 307  
|Administrative service fees                |  |                              | 324  
|General and administrative expenses        |  |                              | 176  
|Excise taxes                               |  |                              | 11   
|Directors’ fees                            |  |                              | 37   
|Total expenses                             |  | $                            | 6,485










| | (1) | During
                                         the three months ended March 31, 2018 and 2017, no incentive fees were waived. Incentive
                                         fees during the three months ended March 31, 2018 were limited by $1.1 million due to
                                         the Incentive Fee Limitation. During the three months ended March 31, 2017, incentive
                                         fees were not limited. See Note 6 in our attached consolidated financial statements for
                                         additional information on the Incentive Fee Limitation.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





52







The composition of our interest and other
debt financing expenses was as follows (dollars in thousands):



|                                                 |  | Three months ended March 31, |      
|------------------------------------------------ |  | ---------------------------- | -----
|                                                 |  | 2018                         |      
|Interest expense – revolving credit facility     |  | $                            | 1,557
|Interest expense – SBA
    guaranteed debentures |  |                              | 868  
|Amortization of deferred financing costs         |  |                              | 281  
|Interest expense – secured borrowings            |  |                              | —    
|Other                                            |  |                              | —    
|Total interest and other debt financing expenses |  | $                            | 2,706







The increase in expenses of $0.5 million
during the three months ended March 31, 2018 as compared to the three months ended March 31, 2017, is primarily due to an increase
in base management fees due to the growth in invested assets and an increase in interest expense as a result of additional borrowings
(including SBA-guaranteed debentures) required to support the growth of the portfolio, partially offset by a decrease in incentive
fees due to the Incentive Fee Limitation during the three months ended March 31, 2018.



Net Realized Gain (Loss) on Investments and Foreign Currency
Transactions



During the three months ended March 31,
2018 and 2017, we had sales of investments of zero and $2.1 million, respectively, resulting in zero and $0.2 million of net realized
gains (losses), respectively.



During the three months ended March 31,
2018 and 2017, we had $12 thousand and zero of net realized gains on foreign currency transactions, respectively.



Net Change in Unrealized Appreciation (Depreciation)
on Investments, Secured Borrowings and Foreign Currency Borrowings



For the three months ended March 31, 2018
and 2017, our investments had ($6.6) million and ($3.6) million of net change in unrealized gain (loss), respectively. The net
change in unrealized gain (loss) includes both unrealized gain on investments in our portfolio with mark-to-market gains during
the period and unrealized loss on investments in our portfolio with mark-to-market losses during the period. The largest contributor
to the net unrealized mark-to-market losses during the three months ended March 31, 2018 was our common equity ownership in Rockdale
Blackhawk, LLC of ($2.3) million, and our debt investment in TPP Operating, Inc. of ($4.8) million.



For the three months ended March 31, 2018
and 2017, our secured borrowings had zero and ($1) thousand of net change in unrealized gain (loss), respectively.



For the three months ended March 31, 2018
and 2017, our foreign currency borrowings had ($442) thousand and zero of net change in unrealized gain (loss), respectively.



Net Increase (Decrease) in Net Assets Resulting from
Operations



For the three months ended March 31, 2018
and 2017, the net increase in net assets from operations was $1.4 million and $2.6 million, respectively. Based on the weighted
average shares of common stock outstanding for the three months ended March 31, 2018 and 2017, our per share net increase in net
assets resulting from operations was $0.07 and $0.15, respectively. The $1.2 million decrease during the three months ended March
31, 2018 as compared to the three months ended March 31, 2017, is primarily the result of an increase in net unrealized mark-to-market
losses on investments in the portfolio partially offset by an increase in net investment income.



53









Liquidity and Capital Resources



As of March 31, 2018, we had $3.1 million
in cash, $7.1 million in cash at MRCC SBIC, $125.6 million of total debt outstanding on our revolving credit facility and $112.8
million in outstanding SBA-guaranteed debentures. We had $74.4 million available for additional borrowings on our revolving credit
facility and $2.2 million in available SBA-guaranteed debentures. See “Borrowings” below for additional information.



Cash Flows



For the three months ended March 31, 2018
and 2017, we experienced a net increase in cash and restricted cash of $3.0 million and $7.7 million, respectively. For the three
months ended March 31, 2018, operating activities used $1.2 million, primarily as a result of purchases of portfolio investments,
partially offset by sales of and principal repayments on portfolio investments. For the three months ended March 31, 2017, operating
activities used $3.4 million, primarily as a result of purchases of portfolio investments, partially offset by sales of and principal
repayments on portfolio investments. During the three months ended March 31, 2018, we generated $4.2 million from financing activities,
primarily as a result of net proceeds from net borrowings on our revolving credit facility and SBA debenture borrowings, partially
offset by distributions to stockholders. During the three months ended March 31, 2017, we generated $11.1 million from financing
activities primarily as a result of net proceeds from capital raises, borrowings on our revolving credit facility and SBA debentures,
partially offset by distributions to stockholders.



Capital Resources



As a BDC, we distribute substantially
all of our net income to our stockholders and have an ongoing need to raise additional capital for investment purposes. We intend
to generate additional cash primarily from future offerings of securities, future borrowings and cash flows from operations, including
income earned from investments in our portfolio companies. On both a short-term and long-term basis, our primary use of funds
will be to invest in portfolio companies and make cash distributions to our stockholders.



As a BDC, we are generally not permitted
to issue and sell our common stock at a price below net asset value per share. We may, however, sell our common stock, or warrants,
options or rights to acquire our common stock, at a price below the then-current net asset value per share of our common stock
if our Board, including independent directors, determines that such sale is in the best interests of us and our stockholders,
and if our stockholders have approved such sales. On July 14, 2016, our stockholders voted to allow us to sell or otherwise issue
common stock at a price below net asset value per share for a period of one year, subject to certain limitations. On July 21,
2017 our stockholders once again voted to allow us to sell or otherwise issue common stock at a price below net asset value per
share for a period of one year, subject to certain limitations. As of March 31, 2018 and December 31, 2017, we had 20,239,957
and 20,239,957 shares outstanding, respectively.



On June 24, 2015, our stockholders approved
a proposal to authorize us to issue warrants, options or rights to subscribe to, convert to, or purchase our common stock in one
or more offerings. This is a standing authorization and does not require annual re-approval by our stockholders.



On March 27, 2018, our Board approved the
application of the modified asset coverage requirements set forth in Section 61(a)(2) of the 1940 Act. As a result, the asset
coverage ratio test applicable to us will be decreased from 200% to 150%, effective March 27, 2019.





54







Stock Issuances:  On July 1,
2016, we amended the ATM securities offering program with MLV & Co. LLC (“MLV”) and JMP Securities LLC (“JMP”)
to replace MLV with FBR Capital Markets & Co. (‘‘FBR’’), an affiliate of MLV (the ‘‘Prior
ATM Program’’). On May 12, 2017, we entered into new equity distribution agreements with each of FBR and JMP that
reference our current registration statement (the ‘‘ATM Program’’). All other material terms of the Prior
ATM Program remain unchanged under the ATM Program. During the three months ended March 31, 2017, we sold 113,600 shares at an
average price of $15.70 per share for gross proceeds of $1.8 million under the Prior ATM program. Aggregate underwriters’
discounts and commissions were $27 thousand and offering costs were $21 thousand, resulting in net proceeds of approximately $1.7
million. There were no stock issuances during the three months ended March 31, 2018.



Borrowings



Revolving Credit Facility: As of
March 31, 2018, we had U.S. dollar borrowings of $113.3 million and non-U.S. dollar borrowings denominated in Great Britain pounds
of £8.8 million ($12.3 million in U.S. dollars) under our revolving credit facility with ING Capital LLC, as agent, to finance
the purchase of our assets. 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 borrowings in our consolidated statements of operations and totaled ($0.4) million
and zero for the three months ended March 31, 2018 and 2017, respectively. 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 our control and cannot be predicted. As of
December 31, 2017, we had U.S. dollar borrowings of $105.2 million and non-U.S. dollar borrowings denominated in Great Britain
pounds of £8.8 million ($11.9 million in U.S. dollars) under our revolving credit facility with ING Capital LLC, as agent,
to finance the purchase of our assets. As of March 31, 2018, the maximum amount we were able to borrow was $200.0 million
and this borrowing can be increased to $300.0 million pursuant to an accordion feature (subject to maintaining 200% asset coverage,
as defined by the 1940 Act). On February 22, 2017, we closed a $40.0 million upsize to the revolving credit facility, bringing
the maximum amount we are able to borrow from $160.0 million to the now current maximum amount of $200.0 million, in accordance
with the facility’s accordion feature. The maturity date on the facility is December 14, 2020.



The revolving credit facility is secured
by a lien on all of our assets, including cash on hand, but excluding the assets of our wholly-owned subsidiary, MRCC SBIC. Our
ability to borrow under the revolving credit facility is subject to availability under a defined borrowing base, which varies
based on portfolio characteristics and certain eligibility criteria and concentration limits, as well as required valuation methodologies.
We may make draws under the revolving credit facility to make or purchase additional investments through December 2019 and for
general working capital purposes until the maturity date of the revolving credit facility. Borrowings under the revolving credit
facility bear interest, at our election, at an annual rate of LIBOR (one-month, two-month, three-month or six-month at our discretion
based on the term of the borrowing) plus 3.00% (or 2.75% if our net worth (excluding investments in MRCC SBIC) exceeds $225.0
million) or at a daily rate equal to 2.00% per annum plus the greater of the prime interest rate, the federal funds rate plus
0.5% or LIBOR plus 1.0%. In addition to the stated interest rate on borrowings under the revolving credit facility, we are required
to pay a 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 65% of the then available maximum borrowing or a 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 65% of the then available maximum borrowing. As of
March 31, 2018 and December 31, 2017, the outstanding borrowings were accruing at a weighted average interest rate of 4.6% and
4.4%, respectively. The weighted average interest rate of the revolving credit facility borrowings (excluding debt issuance costs)
for the three months ended March 31, 2018 and 2017 was 4.6% and 4.1%, respectively. The weighted average fee rate on the unused
portion of the revolving credit facility for the three months ended March 31, 2018 and 2017 was 0.5% and 0.5%, respectively.



Our ability to borrow under the revolving
credit facility is subject to availability under the borrowing base, which permits us to borrow up to 70% of the fair market value
of our portfolio company investments depending on the type of the investment we hold and whether the investment is quoted. Our
ability to borrow is also subject to certain concentration limits, and our continued compliance with the representations, warranties
and covenants given by us under the facility. The revolving credit facility contains certain financial and restrictive covenants,
including, but not limited to, our maintenance of: (1) a minimum consolidated total net assets at least equal to the greater of
(a) 40% of the consolidated total assets on the last day of each quarter or (b) $120.0 million plus 65% of the net proceeds to
us from sales of our securities after December 14, 2015; (2) a ratio of total assets (less total liabilities other than indebtedness)
to total indebtedness of not less than 2.1 times; and (3) a ratio of earnings before interest and taxes to interest expense of
at least 2.5 times. The revolving credit facility also requires us 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 our relationship with MC Advisors. If we incur an event of default
under the revolving credit facility and fail 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 our liquidity,
financial condition, results of operations and cash flows.



55







Our revolving credit facility also imposes
certain conditions that may limit the amount of our distributions to stockholders. Distributions payable in our common stock under
the DRIP are not limited by the revolving credit facility. Distributions in cash or property other than common stock are generally
limited to 115% of the amount of distributions required to maintain our status as a RIC.



See Recent Developments for additional
disclosure regarding an amendment to the revolving credit facility which occurred on April 25, 2018.



SBA Debentures: On February 28,
2014, our 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-guaranteed debentures, subject to the issuance of a leverage commitment by the SBA and other customary
procedures. SBA-guaranteed debentures are non-recourse, interest only debentures with interest payable semi-annually and have
a ten year maturity. The principal amount of SBA-guaranteed debentures is not required to be paid prior to maturity but may be
prepaid at any time without penalty. The interest rate of SBA-guaranteed 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 our stockholders in the event we liquidate MRCC SBIC or the SBA exercises its remedies upon an event
of default.



SBA regulations currently limit the amount
that an individual SBIC may borrow to a maximum of $150.0 million when it has at least $75.0 million 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
historically limited a related group of SBICs (commonly referred to as a ‘‘family of funds’’) to a maximum
of $225.0 million in total borrowings. On December 18, 2015, this family of funds limitation was raised to $350.0 million in total
borrowings. As we have other affiliated SBICs already in operation, MRCC SBIC was historically limited to a maximum of $40.0 million
in borrowings. Pursuant to the increase in the family of funds limitation, we submitted a commitment application to the SBA and
on April 13, 2016 we were approved for $75.0 million in additional SBA-guaranteed debentures for MRCC SBIC for a total of $115.0
million in available debentures.



As of March 31, 2018, MRCC SBIC had $57.6
million in leverageable capital and $112.8 million in SBA-guaranteed debentures outstanding. As of December 31, 2017, MRCC SBIC
had $57.6 million in leverageable capital and $109.5 million in SBA-guaranteed debentures outstanding. As
of March 31, 2018, we have made all required leverageable capital contributions to MRCC SBIC in order to access the remaining
$2.2 million in available SBA-guaranteed debentures.



As of March 31, 2018, MRCC SBIC had the
following SBA-guaranteed debentures outstanding (dollars in thousands):



|Maturity Date  |  | Interest Rate |     |      | Amount |  
|-------------- |  | ------------- | --- | ---- | ------ | -
|September 2024 |  |               | 3.4 | %    |        | $
|March 2025     |  |               | 3.3 | %    |        |  
|March 2025     |  |               | 2.9 | %    |        |  
|September 2025 |  |               | 3.6 | %    |        |  
|March 2027     |  |               | 3.5 | %    |        |  
|September 2027 |  |               | 3.2 | %    |        |  
|March 2028     |  |               | 3.2 | %    |        |  
|September 2028 |  |               | 3.3 | %(1) |        |  
|Total          |  |               |     |      |        | $



As of December 31, 2017, MRCC SBIC had
the following SBA-guaranteed debentures outstanding (dollars in thousands):



|Maturity Date  |  | Interest Rate |     |      | Amount |  
|-------------- |  | ------------- | --- | ---- | ------ | -
|September 2024 |  |               | 3.4 | %    |        | $
|March 2025     |  |               | 3.3 | %    |        |  
|March 2025     |  |               | 2.9 | %    |        |  
|September 2025 |  |               | 3.6 | %    |        |  
|March 2027     |  |               | 3.5 | %    |        |  
|September 2027 |  |               | 3.2 | %    |        |  
|March 2028     |  |               | 2.5 | %(1) |        |  
|March 2028     |  |               | 2.6 | %(1) |        |  
|March 2028     |  |               | 2.7 | %(1) |        |  
|Total          |  |               |     |      |        | $










| | (1) | Represents
                                         an interim rate of interest as the SBA-guaranteed debentures had not yet pooled.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------



On October 2, 2014, the Company was granted
exemptive relief from the SEC for permission to exclude the debt of MRCC SBIC guaranteed by the SBA from the 200% asset coverage
test under the 1940 Act. The receipt of this exemption for this SBA-guaranteed debt increases flexibility under the 200% asset
coverage test.



56







Secured Borrowings: Certain partial
loan sales do not qualify for sale accounting under Accounting Standards Codification (‘‘ASC’’) Topic
860 — Transfers and Servicing(‘‘ASC Topic 860’’) because these sales do not meet the definition
of a ‘‘participating interest,’’ as defined in the guidance, in order for sale treatment to be allowed.
Participations or other partial loan sales which do not meet the definition of a participating interest remain as an investment
on the accompanying consolidated statements of assets and liabilities and the portion sold is recorded as a secured borrowing
in the liabilities section of the consolidated statements of assets and liabilities. For these partial loan sales, the interest
earned on the entire loan balance is recorded within ‘‘interest income’’ and the interest earned by the
buyer in the partial loan sale is recorded within ‘‘interest and other debt financing expenses’’ in the
accompanying consolidated statements of operations. As of March 31, 2018 and December 31, 2017, there were no secured borrowings.



Distribution Policy



Our Board will determine the timing and
amount, if any, of our distributions. We intend to pay distributions on a quarterly basis. In order to avoid corporate-level tax
on the income we distribute as a RIC, we must distribute to our stockholders at least 90% of our ordinary income and realized
net short-term capital gains in excess of realized net long-term capital losses, if any, on an annual basis out of the assets
legally available for such distributions. In addition, we also intend to distribute any realized net capital gains (i.e., realized
net long-term capital gains in excess of realized net short-term capital losses) at least annually out of the assets legally available
for such distributions. Distributions to stockholders for the three months ended March 31, 2018 and 2017, totaled $7.1 million
($0.35 per share) and $5.8 million ($0.35 per share), respectively. The tax character of such distributions is determined at the
end of the fiscal year. However, if the character of such distributions were determined as of March 31, 2018 and 2017, no portion
of these distributions would have been characterized as a tax return of capital to stockholders.



We have adopted an ‘‘opt out’’
dividend reinvestment plan (‘‘DRIP’’) for our common stockholders. As a result, if we declare a distribution,
our stockholders’ cash distributions will be automatically reinvested in additional shares of our common stock unless a
stockholder specifically ‘‘opts out’’ of our DRIP. If a stockholder opts out, that stockholder will receive
cash distributions. Although distributions paid in the form of additional shares of our common stock will generally be subject
to U.S. federal, state and local taxes in the same manner as cash distributions, stockholders participating in our DRIP will not
receive any corresponding cash distributions with which to pay any such applicable taxes.



MRCC Senior Loan Fund I, LLC



We co-invest with NLV Financial Corporation
(‘‘NLV’’) in senior secured loans through SLF, an unconsolidated Delaware limited liability company. 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 of each of us and 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 below.



SLF’s profits and losses are allocated
to us and NLV in accordance with the respective ownership interests. As of March 31, 2018, we and NLV owned 50.0% and 50.0%, respectively,
of the LLC equity interests. As of March 31, 2018, SLF had $100.0 million in commitments from its members (in the aggregate),
of which $31.5 million was funded. As of December 31, 2017, we and NLV owned 50.0% and 50.0%, respectively, of the LLC equity
interests. As of December 31, 2017, SLF had $100.0 million in commitments from its members (in the aggregate), of which $19.0
million was funded.



SLF has entered into 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 March 31, 2018 allowed SLF SPV to borrow up to
$100.0 million at any one time outstanding, 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.



As of March 31, 2018 and December 31, 2017,
SLF had total assets at fair value of $60.5 million and $41.6 million, respectively. As of March 31, 2018 and December 31, 2017,
SLF had zero and zero portfolio company investments on non-accrual status, respectively. The portfolio companies in SLF are in
industries and geographies similar to those in which we may invest directly. Additionally, as of March 31, 2018 and December 31,
2017, SLF had commitments to fund various undrawn revolving credit and delayed draw loans to its portfolio companies totaling
$3.8 million and $2.1 million, respectively.



Below is a summary of SLF’s portfolio,
followed by a listing of the individual investments in SLF’s portfolio as of March 31, 2018 and December 31, 2017 (in thousands):



|                                                                       |  | As of          |       
|---------------------------------------------------------------------- |  | -------------- | ------
|                                                                       |  | March 31, 2018 |       
|Senior secured
    loans (1)                                           |  |                | 58,207
|Weighted average current
    interest rate on senior secured loans (2) |  |                | 7.4   
|Number of borrowers in SLF                                             |  |                | 17    










|(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 funded senior secured loans at outstanding principal amount.



57







MRCC SENIOR LOAN FUND I, LLC

SCHEDULE OF INVESTMENTS

(unaudited)

March 31, 2018

(in thousands)



|Portfolio Company(a)                                                |  | Spread AboveIndex (b) |  | InterestRate(b) |      |   | Maturity |            | Principal |  |       | FairValue | 
|------------------------------------------------------------------- |  | --------------------- |  | --------------- | ---- | - | -------- | ---------- | --------- |  | ----- | --------- | 
|Non-Controlled/Non-Affiliate
    Company Investments                |  |                       |  |                 |      |   |          |            |           |  |       |           | 
|Senior
    Secured Loans                                            |  |                       |  |                 |      |   |          |            |           |  |       |           | 
|Banking,
    Finance, Insurance & Real Estate                       |  |                       |  |                 |      |   |          |            |           |  |       |           | 
|MTC
    Intermediate Holdco, Inc.                                   |  | L+4.75%               |  |                 | 6.63 | % |          | 1/30/2023  |           |  | 5,000 |           | 
|                                                                    |  |                       |  |                 |      |   |          |            |           |  | 5,000 |           | 
|Beverage,
    Food & Tobacco                                        |  |                       |  |                 |      |   |          |            |           |  |       |           | 
|Il Fornaio (America) Corporation                                    |  | L+6.50%               |  |                 | 8.38 | % |          | 11/10/2022 |           |  | 4,973 |           | 
|US
    Salt, LLC                                                    |  | L+4.75%               |  |                 | 6.63 | % |          | 11/30/2023 |           |  | 3,500 |           | 
|                                                                    |  |                       |  |                 |      |   |          |            |           |  | 8,473 |           | 
|Chemicals,
    Plastics & Rubber                                    |  |                       |  |                 |      |   |          |            |           |  |       |           | 
|Loparex International
    B.V. (c)                                  |  | L+4.25%               |  |                 | 6.13 | % |          | 4/09/2025  |           |  | 500   |           | 
|Peach
    State Labs, LLC, and Flow Polymers, LLC                   |  | L+6.25%               |  |                 | 7.92 | % |          | 6/30/2021  |           |  | 2,876 |           | 
|                                                                    |  |                       |  |                 |      |   |          |            |           |  | 3,376 |           | 
|Construction
    & Building                                         |  |                       |  |                 |      |   |          |            |           |  |       |           | 
|Fastener
    Acquisition, Inc. (c)                                  |  | L+4.25%               |  |                 | 6.13 | % |          | 3/23/2025  |           |  | 1,333 |           | 
|                                                                    |  |                       |  |                 |      |   |          |            |           |  | 1,333 |           | 
|Consumer
    Goods: Non-Durable                                     |  |                       |  |                 |      |   |          |            |           |  |       |           | 
|Solaray, LLC                                                        |  | L+6.50%               |  |                 | 8.53 | % |          | 9/09/2023  |           |  | 1,621 |           | 
|Solaray,
    LLC (Delayed Draw) (d)                                 |  | L+6.50%               |  |                 | 8.53 | % |          | 9/09/2023  |           |  | 1,875 |           | 
|                                                                    |  |                       |  |                 |      |   |          |            |           |  | 3,496 |           | 
|Healthcare
    & Pharmaceuticals                                    |  |                       |  |                 |      |   |          |            |           |  |       |           | 
|LSCS Holdings, Inc. (c)                                             |  | L+4.25%               |  |                 | 6.40 | % |          | 3/16/2025  |           |  | 2,800 |           | 
|LSCS Holdings, Inc. (Delayed
    Draw) (c) (d)                      |  | L+4.25%               |  |                 | 6.40 | % |          | 3/16/2025  |           |  | 700   |           | 
|Radiology Partners Holdings,
    LLC                                |  | L+5.75%               |  |                 | 7.69 | % |          | 12/04/2023 |           |  | 1,701 |           | 
|Radiology
    Partners Holdings, LLC (Delayed Draw) (d)             |  | L+5.75%               |  |                 | 7.69 | % |          | 12/04/2023 |           |  | 1,170 |           | 
|                                                                    |  |                       |  |                 |      |   |          |            |           |  | 6,371 |           | 
|High
    Tech Industries                                            |  |                       |  |                 |      |   |          |            |           |  |       |           | 
|Gigamon,
    Inc.                                                   |  | L+4.50%               |  |                 | 6.80 | % |          | 12/19/2024 |           |  | 2,993 |           | 
|                                                                    |  |                       |  |                 |      |   |          |            |           |  | 2,993 |           | 
|Media:
    Diversified & Production                                 |  |                       |  |                 |      |   |          |            |           |  |       |           | 
|Research
    Now Group, Inc. and Survey Sampling International, LLC |  | L+5.50%               |  |                 | 7.86 | % |          | 12/06/2024 |           |  | 6,983 |           | 
|                                                                    |  |                       |  |                 |      |   |          |            |           |  | 6,983 |           | 
|Services:
    Business                                              |  |                       |  |                 |      |   |          |            |           |  |       |           | 
|Engage2Excel, Inc.                                                  |  | L+6.50%               |  |                 | 8.54 | % |          | 3/07/2023  |           |  | 4,375 |           | 
|Engage2Excel, Inc. (Revolver)
    (d)                               |  | L+6.50%               |  |                 | 8.21 | % |          | 3/07/2023  |           |  | 545   |           | 
|Output Services Group,
    Inc. (c)                                 |  | L+4.25%               |  |                 | 6.13 | % |          | 3/27/2024  |           |  | 4,145 |           | 
|Output
    Services Group, Inc. (Delayed Draw) (c) (d)              |  | L+4.25%               |  |                 | 6.13 | % |          | 3/27/2024  |           |  | 855   |           | 
|                                                                    |  |                       |  |                 |      |   |          |            |           |  | 9,920 |           | 
|Services:
    Consumer                                              |  |                       |  |                 |      |   |          |            |           |  |       |           | 
|EWC Ventures, LLC                                                   |  | L+5.50%               |  |                 | 7.17 | % |          | 1/18/2023  |           |  | 3,350 |           | 
|LegalZoom.com, Inc.                                                 |  | L+4.50%               |  |                 | 6.34 | % |          | 11/21/2024 |           |  | 1,995 |           | 
|Zenith
    Merger Sub, Inc.                                         |  | L+5.50%               |  |                 | 7.80 | % |          | 12/13/2023 |           |  | 3,741 |           | 
|                                                                    |  |                       |  |                 |      |   |          |            |           |  | 9,086 |           | 
|Wholesale                                                           |  |                       |  |                 |      |   |          |            |           |  |       |           | 
|BMC
    Acquisition, Inc.                                           |  | L+5.25%               |  |                 | 7.70 | % |          | 12/28/2024 |           |  | 4,988 |           | 
|                                                                    |  |                       |  |                 |      |   |          |            |           |  | 4,988 |           | 
|                                                                    |  |                       |  |                 |      |   |          |            |           |  |       |           | 
|TOTAL INVESTMENTS                                                   |  |                       |  |                 |      |   |          |            |           |  |       |           | 










| | (a) | All
                                         investments are U.S. companies, except Loparex International B.V.
| | --- | --------------------------------------------------------------------------------------------------------------

| | (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 Rate (‘‘Prime’’ or
                                         ‘‘P’’) which reset daily, quarterly or semiannually. The Company
                                         has provided the spread over LIBOR or Prime and the current contractual rate of interest
                                         in effect at March 31, 2018. Certain investments are subject to a LIBOR or Prime interest
                                         rate floor.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | Investment position or portion thereof unsettled
                                         as of March 31, 2018.
| | --- | ---------------------------------------------------------------------------------------------------------------

| | (d) | All or a portion of this commitment was unfunded
                                         as of March 31, 2018. Principal reflects the commitment outstanding.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------



58







MRCC SENIOR LOAN FUND I, LLC

SCHEDULE OF INVESTMENTS

December 31, 2017

(in thousands)



|Portfolio Company(a)                                                    |  | Spread AboveIndex (b) |  | InterestRate(b) |      |   | Maturity |            | Principal |  |       | FairValue | 
|----------------------------------------------------------------------- |  | --------------------- |  | --------------- | ---- | - | -------- | ---------- | --------- |  | ----- | --------- | 
|Non-Controlled/Non-Affiliate
    Company Investments                    |  |                       |  |                 |      |   |          |            |           |  |       |           | 
|Senior
    Secured Loans                                                |  |                       |  |                 |      |   |          |            |           |  |       |           | 
|Banking,
    Finance, Insurance & Real Estate                           |  |                       |  |                 |      |   |          |            |           |  |       |           | 
|Clearent Holdings
    LLC and Clearent, LLC (c)                         |  | P+3.75%               |  |                 | 8.25 | % |          | 1/02/2024  |           |  | 1,056 |           | 
|Clearent Holdings LLC
    and Clearent, LLC (c)                         |  | P+3.75%               |  |                 | 8.25 | % |          | 1/02/2024  |           |  | 1,257 |           | 
|Clearent
    Holdings LLC and Clearent, LLC (c) (d)                     |  | P+3.75%               |  |                 | 8.25 | % |          | 1/02/2024  |           |  | 208   |           | 
|                                                                        |  |                       |  |                 |      |   |          |            |           |  | 2,521 |           | 
|Beverage,
    Food & Tobacco                                            |  |                       |  |                 |      |   |          |            |           |  |       |           | 
|Il Fornaio (America) Corporation                                        |  | L+6.50%               |  |                 | 8.07 | % |          | 11/10/2022 |           |  | 5,000 |           | 
|US
    Salt, LLC (c)                                                    |  | L+4.75%               |  |                 | 6.18 | % |          | 11/30/2023 |           |  | 3,500 |           | 
|                                                                        |  |                       |  |                 |      |   |          |            |           |  | 8,500 |           | 
|Consumer
    Goods: Non-Durable                                         |  |                       |  |                 |      |   |          |            |           |  |       |           | 
|Solaray, LLC                                                            |  | L+6.50%               |  |                 | 8.02 | % |          | 9/09/2023  |           |  | 1,625 |           | 
|Solaray,
    LLC (Delayed Draw) (d)                                     |  | L+6.50%               |  |                 | 8.02 | % |          | 9/09/2023  |           |  | 1,875 |           | 
|                                                                        |  |                       |  |                 |      |   |          |            |           |  | 3,500 |           | 
|High
    Tech Industries                                                |  |                       |  |                 |      |   |          |            |           |  |       |           | 
|Gigamon,
    Inc. (c)                                                   |  | L+4.50%               |  |                 | 6.03 | % |          | 12/19/2024 |           |  | 3,000 |           | 
|                                                                        |  |                       |  |                 |      |   |          |            |           |  | 3,000 |           | 
|Media:
    Diversified & Production                                     |  |                       |  |                 |      |   |          |            |           |  |       |           | 
|Research
    Now Group, Inc. and Survey Sampling International, LLC (c) |  | L+5.50%               |  |                 | 7.13 | % |          | 12/06/2024 |           |  | 7,000 |           | 
|                                                                        |  |                       |  |                 |      |   |          |            |           |  | 7,000 |           | 
|Services:
    Consumer                                                  |  |                       |  |                 |      |   |          |            |           |  |       |           | 
|LegalZoom.com,
    Inc. (c)                                             |  | L+4.50%               |  |                 | 5.94 | % |          | 11/21/2024 |           |  | 2,000 |           | 
|                                                                        |  |                       |  |                 |      |   |          |            |           |  | 2,000 |           | 
|Wholesale                                                               |  |                       |  |                 |      |   |          |            |           |  |       |           | 
|BMC
    Acquisition, Inc. (c)                                           |  | L+5.25%               |  |                 | 6.94 | % |          | 12/28/2024 |           |  | 5,000 |           | 
|                                                                        |  |                       |  |                 |      |   |          |            |           |  | 5,000 |           | 
|                                                                        |  |                       |  |                 |      |   |          |            |           |  |       |           | 
|TOTAL INVESTMENTS                                                       |  |                       |  |                 |      |   |          |            |           |  |       |           | 










| | (a) | All
                                         investments are U.S. companies.
| | --- | ----------------------------------------------------------------------------

| | (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 Rate (‘‘Prime’’ or
                                         ‘‘P’’) which reset daily, 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, 2017. Certain investments are subject to a LIBOR or Prime interest
                                         rate floor.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | Investment position or portion thereof unsettled
                                         as of December 31, 2017.
| | --- | ------------------------------------------------------------------------------------------------------------------

| | (d) | All or a portion of this commitment was unfunded
                                         as of December 31, 2017. Principal reflects the commitment outstanding.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------



As of March 31, 2018 and December 31, 2017,
we have committed to fund $50.0 million and $50.0 million of LLC equity interest subscriptions to SLF, respectively. As of March
31, 2018 and December 31, 2017, $15.8 million and $9.5 million of our LLC equity interest subscriptions to SLF had been called
and contributed, respectively. For the three months ended March 31, 2018 and 2017, we received $ 0.2 million and zero dividend
income from the SLF LLC equity interests, respectively.



59









Below is certain summarized financial information
for SLF as of March 31, 2018 and December 31, 2017 and for the three months ended March 31, 2018 and 2017 (dollars in thousands):



|                                                          |  | March 31, 2018 |        |   | December 31, 2017 |  
|--------------------------------------------------------- |  | -------------- | ------ | - | ----------------- | -
|Assets                                                    |  |                |        |   |                   |  
|Investments, at fair value                                |  | $              | 58,178 |   |                   | $
|Cash                                                      |  |                | 858    |   |                   |  
|Restricted cash                                           |  |                | 1,287  |   |                   |  
|Receivable for open trades                                |  |                | 48     |   |                   |  
|Interest receivable                                       |  |                | 139    |   |                   |  
|Total assets                                              |  | $              | 60,510 |   |                   | $
|Liabilities                                               |  |                |        |   |                   |  
|Revolving credit facility                                 |  | $              | 20,297 |   |                   | $
|Less: Unamortized deferred financing
    costs            |  |                | (1,310 | ) |                   |  
|Total debt, less unamortized deferred financing
    costs |  |                | 18,987 |   |                   |  
|Payable for open trades                                   |  |                | 8,735  |   |                   |  
|Interest payable                                          |  |                | 36     |   |                   |  
|Accounts payable and accrued expenses                     |  |                | 87     |   |                   |  
|Total liabilities                                         |  |                | 27,845 |   |                   |  
|Members’
    capital                                      |  |                | 32,665 |   |                   |  
|Total liabilities
    and members’ capital                |  | $              | 60,510 |   |                   | $



|                                                        |  | Three months ended |      
|------------------------------------------------------- |  | ------------------ | -----
|                                                        |  | March 31, 2018     |      
|Investment income:                                      |  |                    |      
|Interest income                                         |  | $                  | 780  
|Total investment
    income                             |  |                    | 780  
|Expenses:                                               |  |                    |      
|Interest and other debt financing expenses              |  |                    | 44   
|Organizational costs                                    |  |                    | 6    
|Professional fees                                       |  |                    | 40   
|Total expenses                                          |  |                    | 90   
|Net investment income (loss)                            |  |                    | 690  
|Net gain (loss) on investments:                         |  |                    |      
|Net change in unrealized gain (loss)
    on investments |  |                    | 545  
|Net gain (loss) on investments                          |  |                    | 545  
|Net increase
    (decrease) in members’ capital         |  | $                  | 1,235










|(1) | SLF commenced operations on November 14, 2017.
|--- | ----------------------------------------------



Related Party Transactions



We have a number of business relationships
with affiliated or related parties, including the following:



| | · | We
                                         have an Investment Advisory and Management Agreement with MC Advisors, an investment
                                         advisor registered with the SEC, to manage our day-to-day operating and investing activities.
                                         We pay MC Advisors a fee for its services under the Investment Advisory and Management
                                         Agreement consisting of two components — a base management fee and an incentive
                                         fee. See Note 6 to our consolidated financial statements and ‘‘Significant
                                         Accounting Estimates and Critical Accounting Policies — Capital Gains Incentive
                                         Fee’’ for additional information.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | We
                                         have an Administration Agreement with MC Management to provide us with the office facilities
                                         and administrative services necessary to conduct our day-to-day operations. See Note
                                         6 to our consolidated financial statements for additional information.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | Theodore
                                         L. Koenig, our Chief Executive Officer and Chairman of our Board is also a manager of
                                         MC Advisors and the President and Chief Executive Officer of MC Management. Aaron D.
                                         Peck, our Chief Financial Officer and Chief Investment Officer, serves as a director
                                         on our Board and is also a managing director of MC Management.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | We
                                         have a license agreement with Monroe Capital LLC, under which Monroe Capital LLC has
                                         agreed to grant us a non-exclusive, royalty-free license to use the name “Monroe
                                         Capital” for specified purposes in our business.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



In addition, we have adopted a formal code
of ethics that governs the conduct of MC Advisors’ officers, directors and employees. Our officers and directors also remain
subject to the duties imposed by both the 1940 Act and Maryland General Corporation Law.





60







Commitments and
Contingencies and Off-Balance Sheet Arrangements



Commitments and Contingencies



As of March 31, 2018 and December 31, 2017,
we had $36.6 million and $41.2 million, respectively, in outstanding commitments to fund investments under undrawn revolvers,
capital expenditure loans and delayed draw commitments. As described in Note 3, we had commitments up to $34.3 million
and $40.5 million, respectively, to SLF, as of March 31, 2018 and December 31, 2017 that may be contributed primarily for the
purpose of funding new investments approved by the SLF investment committee. Additionally, we have entered into certain contracts
with other parties that contain a variety of indemnifications. Our maximum exposure under these arrangements is unknown. However,
we have not experienced claims or losses pursuant to these contracts and believe the risk of loss related to such indemnifications
to be remote.



Off-Balance Sheet Arrangements



We have no off-balance sheet arrangements
that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition,
revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.



Market Trends



We have identified the following trends
that may affect our business:



Target Market: We believe that small
and middle-market companies in the U.S. with annual revenues between $10.0 million and $2.5 billion represent a significant growth
segment of the U.S. economy and often require substantial capital investments to grow. Middle-market companies have generated
a significant number of investment opportunities for investment funds managed or advised by Monroe Capital, and we believe that
this market segment will continue to produce significant investment opportunities for us.



Specialized Lending Requirements:	We
believe that several factors render many U.S. financial institutions ill-suited to lend to U.S. middle-market companies. For example,
based on the experience of our management team, lending to U.S. middle-market companies (1) is generally more labor intensive
than lending to larger companies due to the smaller size of each investment and the fragmented nature of information for such
companies, (2) requires due diligence and underwriting practices consistent with the demands and economic limitations of the middle-market
and (3) may also require more extensive ongoing monitoring by the lender.



Demand for Debt Capital:	We believe
there is a large pool of uninvested private equity capital for middle-market companies. We expect private equity firms will seek
to leverage their investments by combining equity capital with senior secured loans and mezzanine debt from other sources, such
as us.



Competition from Other Lenders:
We believe that many traditional bank lenders, in recent years, de-emphasized their service and product offerings to middle-market
businesses in favor of lending to large corporate clients and managing capital market transactions. In addition, many commercial
banks face significant balance sheet constraints as they seek to build capital and meet future regulatory capital requirements.
These factors may result in opportunities for alternative funding sources to middle-market companies and therefore drive increased
new investment opportunities for us. Conversely, there is increased competitive pressure in the BDC and investment company marketplace
for senior and subordinated debt which could result in lower yields for increasingly riskier assets.





61







Pricing and Deal Structures: We
believe that the volatility in global markets over the last several years and current macroeconomic issues such as a weakened
U.S. economy has reduced access to, and availability of, debt capital to middle-market companies, causing a reduction in competition
and generally more favorable capital structures and deal terms. Recent capital raises in the BDC and investment company marketplace
have created increased competition; however, we believe that current market conditions may continue to create favorable opportunities
to invest at attractive risk-adjusted returns.



Recent Developments



On April 25, 2018, we entered into an amendment
to our revolving credit agreement (the “Amendment”). The Amendment amends our revolving credit agreement to, among
other things, (i) remove the pricing step-down related to our net worth to set the interest rate the revolving credit facility
bears to the stepped-down interest rate of the one-month LIBOR plus 2.75%; (ii) increase the weighted average leverage ratio from
4.50:1 to 4.75:1; and (iii) add to the borrowing base on a limited basis investments structured based on loan-to-value metrics,
with corresponding adjustments to the eligibility criteria and concentration limits.



Significant Accounting Estimates and Critical Accounting
Policies



Revenue Recognition



We record interest and fee income on an
accrual basis to the extent that we expect to collect such amounts. For loans and debt securities with contractual PIK interest,
we do not accrue PIK interest if the portfolio company valuation indicates that such PIK interest is not collectible. We do not
accrue as a receivable interest on loans and debt securities if we have reason to doubt our ability to collect such interest.
Loan origination fees, original issue discount and market discount or premium are capitalized, and we then amortize such amounts
using the effective interest method as interest income over the life of the investment. Upon the prepayment of a loan or debt
security, any unamortized premium or discount or loan origination fees are recorded as interest income. We record prepayment premiums
on loans and debt securities as interest income when we receive 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. All other
income is recorded into income when earned. We record 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 earned.



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,
we 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.



Valuation of Portfolio Investments



As a BDC, we generally invest in illiquid
securities including debt and, to a lesser extent, equity securities of middle-market companies. Under procedures established
by our Board, we value investments for which market quotations are readily available and within a recent date at such market quotations.
We obtain these market values from an independent pricing service or at the mean between the bid and ask prices obtained from
at least two brokers or dealers (if available, otherwise by a principal market maker or a primary market dealer). When doing so,
we determine whether the quote obtained is sufficient in accordance with generally accepted accounting principles in the United
States of America (‘‘GAAP’’) to determine the fair value of the security. Debt and equity securities that
are not publicly traded or whose market prices are not readily available or whose market prices are not regularly updated are
valued at fair value as determined in good faith by our Board. Such determination of fair values may involve subjective judgments
and estimates. Investments purchased within 60 days of maturity are valued at cost plus accreted discount, or minus amortized
premium, which approximates fair value.



62







Our Board is ultimately and solely responsible
for determining the fair value of the portfolio investments that are not publicly traded, whose market prices are not readily
available on a quarterly basis in good faith or any other situation where portfolio investments require a fair value determination.
Because we expect that there will not be a readily available market for many of the investments in our portfolio, we expect to
value many of our portfolio investments at fair value as determined in good faith by our Board using a documented valuation policy
and a consistently applied valuation process. Due to the inherent uncertainty of determining the fair value of investments that
do not have a readily available market value, the fair value of our investments may differ significantly from the values that
would have been used had a readily available market value existed for such investments, and the differences could be material.



With respect to investments for which market
quotations are not readily available, our 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 responsible for the credit monitoring
                                         of the portfolio investment;
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | preliminary
                                         valuation conclusions are then documented and discussed with the investment committee;
| | - | -------------------------------------------------------------------------------------------------------------------------------------------



| | · | our
                                         Board engages one or more independent valuation firm(s) to conduct fair value appraisals
                                         of material investments for which market quotations are not readily available. These
                                         fair value appraisals for material investments are received at least once in every calendar
                                         year for each portfolio company investment, but are generally received quarterly;
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | our
                                         audit committee of the Board reviews the preliminary valuations of MC Advisors and of
                                         the independent valuation firm(s) and responds and supplements the valuation recommendations
                                         to reflect any comments; and
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | our
                                         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 Board, together with our independent
valuation firms, generally uses the yield approach to determine fair value for loans 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, we 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 under the market approach or the proceeds that would be received in a liquidation analysis. We generally
consider our 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 debt,
we consider 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 debt instrument is not performing, as defined above, we will evaluate the value of the collateral utilizing the same framework
described above for a performing loan to determine the value of the loan.



Under the yield approach, we utilize discounted
cash flow models to determine the present value of the future cash flow streams of our debt investments, based on future interest
and principal payments as set forth in the associated loan agreements. In determining fair value under the yield approach, we
also consider 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, we typically
use the enterprise value methodology 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
we derive a single estimate of enterprise value. In estimating the enterprise value of a portfolio company, we analyze 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,
we may base our valuation on indicative bid and ask prices provided by an independent third-party pricing service. Bid prices
reflect the highest price that we and others may be willing to pay. Ask prices represent the lowest price that we and others may
be willing to accept. We generally use the midpoint of the bid/ask range as our best estimate of fair value of such investment.



63







Net Realized Gains or Losses and Net Change in Unrealized
Gain or Loss



We measure realized gains or losses by
the difference between the net proceeds from the sale and the amortized cost basis of the investment, without regard to unrealized
gain or loss previously recognized. Net change in unrealized gain or loss reflects the change in portfolio investment values during
the reporting period, including any reversal of previously recorded unrealized gain or loss, when gains or losses are realized.
Additionally, we do not isolate the portion of the change in fair value resulting from foreign currency exchange rate fluctuations
from the changes in fair values of the underlying investment. All fluctuations in fair value are included in net change in unrealized
gain (loss) on investments in fair value on our consolidated statements of operations. We report changes in the fair value of
secured borrowings that are measured at fair value as a component of the net change in unrealized gain (loss) on secured borrowings
in the consolidated statements of operations. The impact resulting from changes in foreign exchange rates on the revolving credit
facility borrowings is included in change in unrealized gain (loss) on foreign currency borrowings.



Capital Gains Incentive Fee



Pursuant to the terms of the Investment
Advisory and Management Agreement with MC Advisors, the incentive fee on capital gains earned on liquidated investments of our
portfolio is determined and payable in arrears as of the end of each calendar year (or upon termination of the investment advisory
and administrative services agreement). This fee equals 20% of our incentive fee capital gains (i.e., our realized capital gains
on a cumulative basis from inception, calculated as of the end of the applicable period, net of all realized capital losses and
unrealized capital depreciation on a cumulative basis), less the aggregate amount of any previously paid capital gains incentive
fees. On a quarterly basis, we accrue for the capital gains incentive fee by calculating such fee as if it were due and payable
as of the end of such period.



While the Investment Advisory and Management
Agreement with MC Advisors neither includes nor contemplates the inclusion of unrealized gains in the calculation of the capital
gains incentive fee, pursuant to an interpretation of an American Institute for Certified Public Accountants Technical Practice
Aid for investment companies, we include unrealized gains in the calculation of the capital gains incentive fee expense and related
accrued capital gains incentive fee. This accrual reflects the incentive fees that would be payable to MC Advisors if our entire
portfolio was liquidated at its fair value as of the balance sheet date even though MC Advisors is not entitled to an incentive
fee with respect to unrealized gains unless and until such gains are actually realized.



During the three months ended March 31,
2018 and March 31, 2017, we had a reduction in accrued capital gains incentive fees of zero and $0.2 million, respectively, primarily
as a result of net declines in portfolio valuations during the period.



New Accounting Pronouncements



In May 2014, the Financial Accounting
Standards Board (‘‘FASB’’) issued Accounting Standards Update (‘‘ASU’’) 2014-09,
Revenue from Contracts with Customers(ASC Topic 606) (‘‘ASU 2014-09’’). The core principle of
ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an
amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To
achieve that core principle, an entity should apply the following steps: Step 1: Identify the contract(s) with a customer. Step
2: Identify the performance obligations in the contract. Step 3: Determine the transaction price. Step 4: Allocate the transaction
price to the performance obligations in the contract. Step 5: Recognize revenue when (or as) the entity satisfies a performance
obligation.



ASU 2014-09 also specified the accounting
for some costs to obtain or fulfill a contract with a customer. In addition, ASU 2014-09 requires that an entity disclose sufficient
information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash
flows arising from contracts with customers. The initial effective date of ASU 2014-09 was for fiscal periods beginning after
December 15, 2016. However, in August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers(ASC Topic
606): Deferral of the Effective Date, which deferred the effective date to fiscal periods beginning after December 15,
2017. We have adopted ASU 2014-09, and the adoption did not have a material impact on our consolidated financial statements.



In January 2016, the FASB issued ASU 2016-01,
Financial Instruments — Overall(Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial
Liabilities(‘‘ASU 2016-01’’). ASU 2016-01 retains many current requirements for the classification
and measurement of financial instruments; however, it significantly revises an entity’s accounting related to (1) the classification
and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities
measured at fair value. ASU 2016-01 also amends certain disclosure requirements associated with the fair value of financial instruments.
This guidance is effective for annual and interim periods beginning after December 15, 2017, and early adoption is not permitted
for public business entities. We have adopted ASU 2016-01, and the adoption did not have a material impact on our consolidated
financial statements for the periods presented.



64







ITEM 3. QUANTITATIVE AND QUALITATIVE
DISCLOSURES ABOUT MARKET RISK



We are subject to financial market risks,
including changes in interest rates. The majority of the loans in our portfolio have floating interest rates, and we expect that
our loans in the future may also have floating interest rates. These loans are usually based on a floating LIBOR and typically
have interest rate re-set provisions that adjust applicable interest rates under such loans to current market rates on a monthly
or quarterly basis. The majority of the loans in our current portfolio have interest rate floors which have effectively converted
the loans to fixed rate loans in the current interest rate environment. In addition, our credit facility has a floating interest
rate provision and we expect that other credit facilities into which we enter in the future may have floating interest rate provisions.



Assuming that the consolidated statement
of financial condition as of March 31, 2018 were to remain constant and that we took no actions to alter our existing interest
rate sensitivity, the following table shows the annualized impact of hypothetical base rate changes in interest rates.



|                         |  | Increase (decrease) in |        |   | Increase (decrease) in |   |       | Net increase (decrease) in | 
|------------------------ |  | ---------------------- | ------ | - | ---------------------- | - | ----- | -------------------------- | 
|Change in Interest Rates |  | interest income        |        |   | interest expense       |   |       | net investment income      | 
|                         |  | (in thousands)         |       
|Down 25 basis points     |  | $                      | (1,145 | ) |                        | $ | (314  | )                          | 
|Up 100 basis points      |  |                        | 4,558  |   |                        |   | 1,256 |                            | 
|Up 200 basis points      |  |                        | 9,103  |   |                        |   | 2,512 |                            | 
|Up 300 basis points      |  |                        | 13,648 |   |                        |   | 3,768 |                            | 



Although we believe that this analysis
is indicative of our existing sensitivity to interest rate changes, it does not adjust for changes in the credit market, credit
quality, the size and composition of the assets in our portfolio and other business developments, including borrowing under the
credit facility or other borrowings that could affect net increase in net assets resulting from operations, or net income. Accordingly,
we can offer no assurances that actual results would not differ materially from the analysis above.



We may in the future hedge against interest
rate fluctuations by using standard hedging instruments such as futures, options and forward contracts to the extent permitted
under the 1940 Act and applicable commodities laws. While hedging activities may insulate us against adverse changes in interest
rates, they may also limit our ability to participate in the benefits of lower interest rates with respect to the investments
in our portfolio with fixed interest rates or interest rate floors.



We may also have exposure to foreign currencies
(currently the Great Britain pound) related to certain investments. Such investments are translated into U.S. dollars based on
the spot rate at each balance sheet date, exposing us to movements in the exchange rate. In order to reduce our exposure to fluctuations
in exchange rates, we generally borrow in Great Britain pounds under our revolving credit facility to finance such investments.
As of March 31, 2018, we have non-U.S. dollar borrowings denominated in Great Britain pounds of £8.8 million ($12.3 million
U.S. dollars) outstanding under the revolving credit facility.



ITEM 4. CONTROLS AND PROCEDURES



In accordance with Rules 13a-15(b) and
15d-15(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), we, under the supervision and with
the participation of our Chief Executive Officer and Chief Financial Officer, carried out an evaluation of the effectiveness of
our disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e) of the Exchange Act). Based on that evaluation,
our management, including the Chief Executive Officer and Chief Financial Officer, concluded that, at the end of the period covered
by our Quarterly Report on Form 10-Q, our disclosure controls and procedures were effective and provided reasonable assurance
that information required to be disclosed in our periodic SEC filings is recorded, processed, summarized and reported within the
time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management,
including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required
disclosure. Notwithstanding the foregoing, a control system, no matter how well designed and operated, can provide only reasonable,
not absolute, assurance that it will detect or uncover failures within the Company to disclose material information otherwise
required to be set forth in the Company’s periodic reports.



No change occurred in our internal control
over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) of the Exchange Act) during the three months ended March
31, 2018 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.



65







PART II



OTHER INFORMATION



Item 1. Legal Proceedings



Neither we nor our investment adviser are
currently subject to any material legal proceedings.



Item 1A. Risk Factors



None.



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



None.



Item 3. Defaults Upon Senior Securities



None.



Item 4. Mine Safety Disclosures



None.



Item 5. Other Information



None.



66







Item 6. Exhibits



|Exhibit |  |                                                                                                                                                                                      
|------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Number  |  | Description of Document                                                                                                                                                              
|        |  |                                                                                                                                                                                      
|31.1    |  | Certification of Chief Executive
    Officer pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley
    Act of 2002
|        |  |                                                                                                                                                                                      
|31.2    |  | Certification of Chief Financial
    Officer pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley
    Act of 2002
|        |  |                                                                                                                                                                                      
|32.1    |  | Certification pursuant to 18
    U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                           



67







SIGNATURES



Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.



|Date: May 8, 2018 | By | /s/ Theodore L. Koenig                                        
|----------------- | -- | --------------------------------------------------------------
|                  |    | Theodore L. Koenig                                            
|                  |    | Chairman, Chief Executive Officer and Director                
|                  |    | (Principal Executive Officer)                                 
|                  |    | Monroe Capital Corporation                                    
|                  |    |                                                               
|Date: May 8, 2018 | By | /s/ Aaron D. Peck                                             
|                  |    | Aaron D. Peck                                                 
|                  |    | Chief Financial Officer, Chief Investment Officer and Director
|                  |    | (Principal Financial and Accounting Officer)                  
|                  |    | Monroe Capital Corporation                                    



68