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, 2019



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 ofIncorporation or Organization) | (I.R.S. EmployerIdentification No.)
|                                                              |                                    
|311 South Wacker Drive, Suite 6400Chicago, 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 every Interactive Data File required to be submitted 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 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.



|Large accelerated filer |  ̈ | Accelerated filer         | x
|----------------------- | - | ------------------------- | -
|                        |   |                           |  
|Non-accelerated filer   |  ̈ | 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



Securities registered pursuant
to Section 12(b) of the Act:



|Title of Each Class                                          |  | Trading Symbol(s) |  | Name of Each Exchange on Which Registered                     
|------------------------------------------------------------ |  | ----------------- |  | --------------------------------------------------------------
|Common Stock, par value $0.001 per share5.75% Notes due 2023 |  | MRCCMRCCL         |  | The Nasdaq Global Select MarketThe Nasdaq Global Select Market



As of May 6, 2019, the registrant had 20,444,564
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, 2019 (unaudited) and December 31, 2018                    | 3   
|                              |                                                                                                                             |     
|                              | Consolidated Statements of Operations for the three months ended March 31, 2019 (unaudited) and 2018 (unaudited)            | 4   
|                              |                                                                                                                             |     
|                              | Consolidated Statements of Changes in Net Assets for the three months ended March 31, 2019 (unaudited) and 2018 (unaudited) | 5   
|                              |                                                                                                                             |     
|                              | Consolidated Statements of Cash Flows for the three months ended March 31, 2019 (unaudited) and 2018 (unaudited)            | 6   
|                              |                                                                                                                             |     
|                              | Consolidated Schedules of Investments as of March 31, 2019 (unaudited) and December 31, 2018                                | 7   
|                              |                                                                                                                             |     
|                              | Notes to Consolidated Financial Statements (unaudited)                                                                      | 26  
|                              |                                                                                                                             |     
|Item 2.                       | Management’s Discussion and Analysis of Financial Condition and Results of Operations                                       | 53  
|                              |                                                                                                                             |     
|Item 3.                       | Quantitative and Qualitative Disclosures About Market Risk                                                                  | 71  
|                              |                                                                                                                             |     
|Item 4.                       | Controls and Procedures                                                                                                     | 72  
|                              |                                                                                                                             |     
|PART II. OTHER INFORMATION    | 73                                                                                                                         
|                              |                                                                                                                             |     
|Item 1.                       | Legal Proceedings                                                                                                           | 73  
|                              |                                                                                                                             |     
|Item 1A.                      | Risk Factors                                                                                                                | 73  
|                              |                                                                                                                             |     
|Item 2.                       | Unregistered Sales of Equity Securities and Use of Proceeds                                                                 | 73  
|                              |                                                                                                                             |     
|Item 3.                       | Defaults Upon Senior Securities                                                                                             | 73  
|                              |                                                                                                                             |     
|Item 4.                       | Mine Safety Disclosures                                                                                                     | 73  
|                              |                                                                                                                             |     
|Item 5.                       | Other Information                                                                                                           | 73  
|                              |                                                                                                                             |     
|Item 6.                       | Exhibits                                                                                                                    | 74  
|                              |                                                                                                                             |     
|Signatures                    |                                                                                                                             | 75  



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, 2019 |         | December 31, 2018
|------------------------------------------------------------------------------------------------------------------------ |  | -------------- | ------- | -----------------
|                                                                                                                         |  | (unaudited)    |         |                  
|ASSETS                                                                                                                   |  |                |         |                  
|Investments, at fair value:                                                                                              |  |                |         |                  
|Non-controlled/non-affiliate company investments                                                                         |  | $              | 505,957 |                  
|Non-controlled affiliate company investments                                                                             |  |                | 58,956  |                  
|Controlled affiliate company investments                                                                                 |  |                | 32,032  |                  
|Total investments, at fair value (amortized cost of: $606,591 and $564,124, respectively)                                |  |                | 596,945 |                  
|Cash                                                                                                                     |  |                | 4,690   |                  
|Restricted cash                                                                                                          |  |                | 17,315  |                  
|Unrealized gain on foreign currency forward contracts                                                                    |  |                | —       |                  
|Interest receivable                                                                                                      |  |                | 8,976   |                  
|Other assets                                                                                                             |  |                | 588     |                  
|Total assets                                                                                                             |  |                | 628,514 |                  
|                                                                                                                         |  |                |         |                  
|LIABILITIES                                                                                                              |  |                |         |                  
|Debt:                                                                                                                    |  |                |         |                  
|Revolving credit facility                                                                                                |  |                | 146,342 |                  
|2023 Notes                                                                                                               |  |                | 109,000 |                  
|SBA debentures payable                                                                                                   |  |                | 115,000 |                  
|Total debt                                                                                                               |  |                | 370,342 |                  
|Less: Unamortized deferred financing costs                                                                               |  |                | (9,265  | )                
|Total debt, less unamortized deferred financing costs                                                                    |  |                | 361,077 |                  
|Interest payable                                                                                                         |  |                | 1,932   |                  
|Unrealized loss on foreign currency forward contracts                                                                    |  |                | 49      |                  
|Management fees payable                                                                                                  |  |                | 2,521   |                  
|Incentive fees payable                                                                                                   |  |                | 1,319   |                  
|Accounts payable and accrued expenses                                                                                    |  |                | 2,529   |                  
|Directors' fees payable                                                                                                  |  |                | 35      |                  
|Total liabilities                                                                                                        |  |                | 369,462 |                  
|Net assets                                                                                                               |  | $              | 259,052 |                  
|                                                                                                                         |  |                |         |                  
|Commitments and contingencies (See Note 11)                                                                              |  |                |         |                  
|                                                                                                                         |  |                |         |                  
|ANALYSIS OF NET ASSETS                                                                                                   |  |                |         |                  
|Common stock, $0.001 par value, 100,000 shares authorized, 20,445 and 20,445 shares issued and outstanding, respectively |  | $              | 20      |                  
|Capital in excess of par value                                                                                           |  |                | 288,911 |                  
|Accumulated undistributed (overdistributed) earnings                                                                     |  |                | (29,879 | )                
|Total net assets                                                                                                         |  | $              | 259,052 |                  
|                                                                                                                         |  |                |         |                  
|Net asset value per share                                                                                                |  | $              | 12.67   |                  



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,
|--------------------------------------------------------------------------------------------- |  | ----------------------------
|                                                                                              |  | 2019                        
|Investment income:                                                                            |  |                             
|Non-controlled/non-affiliate company investments:                                             |  |                             
|Interest income                                                                               |  | $                           
|Payment-in-kind interest income                                                               |  |                             
|Dividend income                                                                               |  |                             
|Fee income                                                                                    |  |                             
|Total investment income from non-controlled/non-affiliate company investments                 |  |                             
|Non-controlled affiliate company investments:                                                 |  |                             
|Interest income                                                                               |  |                             
|Payment-in-kind interest income                                                               |  |                             
|Total investment income from non-controlled affiliate company investments                     |  |                             
|Controlled affiliate company investments:                                                     |  |                             
|Dividend income                                                                               |  |                             
|Total investment income from controlled affiliate company investments                         |  |                             
|Total investment income                                                                       |  |                             
|                                                                                              |  |                             
|Operating expenses:                                                                           |  |                             
|Interest and other debt financing expenses                                                    |  |                             
|Base management fees                                                                          |  |                             
|Incentive fees                                                                                |  |                             
|Professional fees                                                                             |  |                             
|Administrative service fees                                                                   |  |                             
|General and administrative expenses                                                           |  |                             
|Excise taxes                                                                                  |  |                             
|Directors' fees                                                                               |  |                             
|Expenses before incentive fee waiver                                                          |  |                             
|Incentive fee waiver                                                                          |  |                             
|Total expenses, net of incentive fee waiver                                                   |  |                             
|Net investment income                                                                         |  |                             
|                                                                                              |  |                             
|Net gain (loss):                                                                              |  |                             
|Net realized gain (loss):                                                                     |  |                             
|Foreign currency forward contracts                                                            |  |                             
|Foreign currency and other transactions                                                       |  |                             
|Net realized gain (loss)                                                                      |  |                             
|                                                                                              |  |                             
|Net change in unrealized gain (loss):                                                         |  |                             
|Non-controlled/non-affiliate company investments                                              |  |                             
|Non-controlled affiliate company investments                                                  |  |                             
|Controlled affiliate company investments                                                      |  |                             
|Foreign currency forward contracts                                                            |  |                             
|Foreign currency and other transactions                                                       |  |                             
|Net change in unrealized gain (loss)                                                          |  |                             
|                                                                                              |  |                             
|Net gain (loss)                                                                               |  |                             
|                                                                                              |  |                             
|Net increase (decrease) in net assets resulting from operations                               |  | $                           
|                                                                                              |  |                             
|Per common share data:                                                                        |  |                             
|Net investment income per share - basic and diluted                                           |  | $                           
|Net increase (decrease) in net assets resulting from operations per share - basic and diluted |  | $                           
|Weighted average common shares outstanding - basic and diluted                                |  |                             



See Notes to Consolidated Financial Statements.



4







MONROE CAPITAL CORPORATION



CONSOLIDATED STATEMENTS OF CHANGES IN
NET ASSETS

(unaudited)



(in thousands)





|                                     |  |              |        |  |            |   |    | Accumulated   |  |   |                   | 
|------------------------------------ |  | ------------ | ------ |  | ---------- | - | -- | ------------- |  | - | ----------------- | 
|                                     |  | Common Stock |        |  | Capital in |   |    | undistributed |  |   |                   | 
|                                     |  | Number of    |        |  | Par        |   |    | excess of par |  |   | (overdistributed) | 
|                                     |  | shares       |        |  | value      |   |    | value         |  |   | earnings          | 
|Balances at December 31, 2017        |  |              | 20,240 |  |            | $ | 20 |               |  | $ | 286,141           | 
|Net investment income                |  |              | —      |  |            |   | —  |               |  |   | —                 | 
|Net realized gain (loss)             |  |              | —      |  |            |   | —  |               |  |   | —                 | 
|Net change in unrealized gain (loss) |  |              | —      |  |            |   | —  |               |  |   | —                 | 
|Distributions to stockholders        |  |              | —      |  |            |   | —  |               |  |   | —                 | 
|Balances at March 31, 2018           |  |              | 20,240 |  |            | $ | 20 |               |  | $ | 286,141           | 
|                                     |  |              |        |  |            |   |    |               |  |   |                   | 
|Balances at December 31, 2018        |  |              | 20,445 |  |            | $ | 20 |               |  | $ | 288,911           | 
|Net investment income                |  |              | —      |  |            |   | —  |               |  |   | —                 | 
|Net realized gain (loss)             |  |              | —      |  |            |   | —  |               |  |   | —                 | 
|Net change in unrealized gain (loss) |  |              | —      |  |            |   | —  |               |  |   | —                 | 
|Distributions to stockholders        |  |              | —      |  |            |   | —  |               |  |   | —                 | 
|Balances at March 31, 2019           |  |              | 20,445 |  |            | $ | 20 |               |  | $ | 288,911           | 





See Notes to Consolidated Financial Statements.



5







MONROE CAPITAL CORPORATION



CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)



(in thousands)



|                                                                                                                                                 |  | Three months ended March 31,
|------------------------------------------------------------------------------------------------------------------------------------------------ |  | ----------------------------
|                                                                                                                                                 |  | 2019                        
|                                                                                                                                                 |  |                             
|Cash flows from operating activities:                                                                                                            |  |                             
|Net increase (decrease) in net assets resulting from operations                                                                                  |  | $                           
|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                                                                                              |  |                             
|Net change in unrealized (gain) loss on foreign currency forward contracts                                                                       |  |                             
|Net change in unrealized (gain) loss on foreign currency and other transactions                                                                  |  |                             
|Net realized (gain) loss on foreign currency forward contracts                                                                                   |  |                             
|Net realized (gain) loss on foreign currency and other transactions                                                                              |  |                             
|Payment-in-kind interest income                                                                                                                  |  |                             
|Payment-in-kind dividend income                                                                                                                  |  |                             
|Net accretion of discounts and amortization of premiums                                                                                          |  |                             
|Proceeds from principal payments, sales of investments and settlement of forward contracts                                                       |  |                             
|Purchases of investments                                                                                                                         |  |                             
|Amortization of deferred financing costs                                                                                                         |  |                             
|Changes in operating assets and liabilities:                                                                                                     |  |                             
|Interest receivable                                                                                                                              |  |                             
|Other assets                                                                                                                                     |  |                             
|Interest payable                                                                                                                                 |  |                             
|Management fees payable                                                                                                                          |  |                             
|Incentive fees payable                                                                                                                           |  |                             
|Accounts payable and accrued expenses                                                                                                            |  |                             
|Directors' fees payable                                                                                                                          |  |                             
|Net cash provided by (used in) operating activities                                                                                              |  |                             
|                                                                                                                                                 |  |                             
|Cash flows from financing activities:                                                                                                            |  |                             
|Borrowings on revolving credit facility                                                                                                          |  |                             
|Repayments of revolving credit facility                                                                                                          |  |                             
|Proceeds from 2023 Notes                                                                                                                         |  |                             
|SBA debentures borrowings                                                                                                                        |  |                             
|Payments of deferred financing costs                                                                                                             |  |                             
|Stockholder distributions paid, net of stock issued under the dividend reinvestment plan of $0 and $0, respectively                              |  |                             
|Net cash provided by (used in) financing activities                                                                                              |  |                             
|                                                                                                                                                 |  |                             
|Net increase (decrease) in Cash and Restricted Cash                                                                                              |  |                             
|Effect of foreign currency exchange rates                                                                                                        |  |                             
|Cash and Restricted Cash, beginning of period (1)                                                                                                |  |                             
|Cash and Restricted Cash, end of period (2)                                                                                                      |  | $                           
|                                                                                                                                                 |  |                             
|Supplemental disclosure of cash flow information:                                                                                                |  |                             
|Cash interest paid during the period                                                                                                             |  | $                           
|Cash paid for excise taxes during the period                                                                                                     |  | $                           










|(1) | Represents cash and restricted cash of $3,744 and $13,982, respectively, from the consolidated statement of assets and liabilities as of December 31, 2018. 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.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                       
|(2) | Represents cash and restricted cash of $4,690 and $17,315, respectively, from the consolidated statement of assets and liabilities as of March 31, 2019. 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.      



See Notes to Consolidated Financial Statements.



6







MONROE CAPITAL CORPORATION



CONSOLIDATED SCHEDULE OF INVESTMENTS

(unaudited)

March 31, 2019

(in thousands, except for shares and
units)



|Portfolio
    Company (a)                                        |  | Spread
    AboveIndex (b) |  | InterestRate           |     |  | AcquisitionDate (c) |  | Maturity   |  |  | Principal |        | Amortized
    Cost |  | FairValue (d) |        | %
    ofNet Assets (e)
|---------------------------------------------------------------- |  | ------------------------- |  | ---------------------- | --- |  | ------------------- |  | ---------- |  |  | --------- | ------ | ------------------ |  | ------------- | ------ | ----------------------
|Non-Controlled/Non-Affiliate
    Company Investments             |  |                           |  |                        |     |  |                     |  |            |  |  |           |        |                    |  |               |        |                       
|Senior
    Secured Loans                                         |  |                           |  |                        |     |  |                     |  |            |  |  |           |        |                    |  |               |        |                       
|Automotive                                                       |  |                           |  |                        |     |  |                     |  |            |  |  |           |        |                    |  |               |        |                       
|Hastings
    Manufacturing Company                               |  | L+8.25%                   |  | 10.75%                 |     |  | 4/24/2018           |  | 4/24/2023  |  |  |           | 2,925  |                    |  | $             | 2,875  |                       
|Hastings Manufacturing
    Company (Delayed Draw) (f) (g)        |  | L+8.25%                   |  | 10.75%                 |     |  | 4/24/2018           |  | 4/24/2023  |  |  |           | 899    |                    |  |               | —      |                       
|Magneto
    & Diesel Acquisition, Inc.                           |  | L+5.50%                   |  | 8.00%                  |     |  | 12/18/2018          |  | 12/18/2023 |  |  |           | 4,987  |                    |  |               | 4,904  |                       
|Magneto
    & Diesel Acquisition, Inc. (Revolver) (f)            |  | L+5.50%                   |  | 8.00%                  |     |  | 12/18/2018          |  | 12/18/2023 |  |  |           | 500    |                    |  |               | 83     |                       
|                                                                 |  |                           |  |                        |     |  |                     |  |            |  |  |           | 9,311  |                    |  |               | 7,862  |                       
|Banking,
    Finance, Insurance & Real Estate                    |  |                           |  |                        |     |  |                     |  |            |  |  |           |        |                    |  |               |        |                       
|Echelon Funding I, LLC
    (Delayed Draw) (f) (g) (h)            |  | L+7.50%                   |  | 9.99%                  |     |  | 2/24/2017           |  | 2/24/2022  |  |  |           | 15,750 |                    |  |               | 15,358 |                       
|HFZ Capital Group, LLC
    (h)                                   |  | L+10.17%                  |  | 12.80% Cash/ 0.17% PIK | (i) |  | 10/20/2017          |  | 10/21/2019 |  |  |           | 18,000 |                    |  |               | 17,873 |                       
|HFZ Member RB Portfolio
    LLC (Delayed Draw) (f) (g) (h)       |  | L+12.00%                  |  | 14.62%                 |     |  | 10/30/2018          |  | 10/29/2021 |  |  |           | 9,000  |                    |  |               | 4,473  |                       
|Liftforward SPV II, LLC
    (f) (h)                              |  | L+10.75%                  |  | 13.25%                 |     |  | 11/10/2016          |  | 11/10/2020 |  |  |           | 10,000 |                    |  |               | 4,070  |                       
|PKS Holdings, LLC (h)                                            |  | L+10.00%                  |  | 12.49%                 |     |  | 11/30/2017          |  | 11/30/2022 |  |  |           | 1,733  |                    |  |               | 1,587  |                       
|PKS Holdings, LLC (Revolver)
    (f) (h)                         |  | L+10.00%                  |  | 12.49%                 |     |  | 11/30/2017          |  | 11/30/2022 |  |  |           | 80     |                    |  |               | —      |                       
|                                                                 |  |                           |  |                        |     |  |                     |  |            |  |  |           | 54,563 |                    |  |               | 43,361 |                       
|Beverage,
    Food & Tobacco                                     |  |                           |  |                        |     |  |                     |  |            |  |  |           |        |                    |  |               |        |                       
|California Pizza Kitchen,
    Inc.                               |  | L+6.00%                   |  | 8.50%                  |     |  | 8/19/2016           |  | 8/23/2022  |  |  |           | 6,825  |                    |  |               | 6,778  |                       
|Toojay's Management LLC                                          |  | L+5.50%                   |  | 8.00%                  |     |  | 10/26/2018          |  | 10/26/2022 |  |  |           | 3,491  |                    |  |               | 3,428  |                       
|Toojay's Management LLC
    (Delayed Draw) (f) (g)               |  | L+5.50%                   |  | 8.00%                  |     |  | 10/26/2018          |  | 10/26/2022 |  |  |           | 477    |                    |  |               | 239    |                       
|Toojay's Management LLC
    (Revolver) (f)                       |  | L+5.50%                   |  | 8.00%                  |     |  | 10/26/2018          |  | 10/26/2022 |  |  |           | 159    |                    |  |               | 80     |                       
|                                                                 |  |                           |  |                        |     |  |                     |  |            |  |  |           | 10,952 |                    |  |               | 10,525 |                       
|Chemicals,
    Plastics & Rubber                                 |  |                           |  |                        |     |  |                     |  |            |  |  |           |        |                    |  |               |        |                       
|Midwest Composite Technologies,
    LLC                          |  | L+6.25%                   |  | 8.75%                  |     |  | 8/31/2018           |  | 8/31/2023  |  |  |           | 896    |                    |  |               | 879    |                       
|Midwest Composite Technologies,
    LLC (Delayed Draw) (f) (g)   |  | L+6.25%                   |  | 8.75%                  |     |  | 8/31/2018           |  | 8/31/2023  |  |  |           | 600    |                    |  |               | —      |                       
|Midwest Composite Technologies,
    LLC (Revolver) (f)           |  | L+6.25%                   |  | 8.75%                  |     |  | 8/31/2018           |  | 8/31/2023  |  |  |           | 90     |                    |  |               | —      |                       
|Valudor Products LLC                                             |  | L+7.50%                   |  | 10.00%                 |     |  | 6/18/2018           |  | 6/19/2023  |  |  |           | 1,594  |                    |  |               | 1,566  |                       
|Valudor Products LLC
    (j)                                     |  | L+7.50%                   |  | 10.00%                 |     |  | 6/18/2018           |  | 6/19/2023  |  |  |           | 211    |                    |  |               | 205    |                       
|Valudor Products LLC
    (Revolver) (f)                          |  | L+9.50%                   |  | 12.00%                 |     |  | 6/18/2018           |  | 6/19/2023  |  |  |           | 818    |                    |  |               | 622    |                       
|                                                                 |  |                           |  |                        |     |  |                     |  |            |  |  |           | 4,209  |                    |  |               | 3,272  |                       
|Construction
    & Building                                      |  |                           |  |                        |     |  |                     |  |            |  |  |           |        |                    |  |               |        |                       
|Cali Bamboo, LLC                                                 |  | L+6.25%                   |  | 8.75%                  |     |  | 7/10/2015           |  | 7/10/2020  |  |  |           | 7,916  |                    |  |               | 7,843  |                       
|Cali Bamboo, LLC (Revolver)
    (f)                              |  | L+6.25%                   |  | 8.75%                  |     |  | 7/10/2015           |  | 7/10/2020  |  |  |           | 2,165  |                    |  |               | 866    |                       
|Construction Supply Acquisition,
    LLC                         |  | L+6.00%                   |  | 8.50%                  |     |  | 11/27/2018          |  | 6/30/2023  |  |  |           | 4,650  |                    |  |               | 4,628  |                       
|Inland Pipe Rehabilitation
    LLC                               |  | L+5.50%                   |  | 8.10%                  |     |  | 12/27/2018          |  | 12/26/2024 |  |  |           | 12,469 |                    |  |               | 12,227 |                       
|Inland Pipe Rehabilitation
    LLC (Revolver) (f)                |  | L+5.50%                   |  | 8.00%                  |     |  | 12/27/2018          |  | 12/26/2024 |  |  |           | 4,118  |                    |  |               | 2,789  |                       
|                                                                 |  |                           |  |                        |     |  |                     |  |            |  |  |           | 31,318 |                    |  |               | 28,353 |                       
|Consumer
                                         Goods: Durable |  |                           |  |                        |     |  |                     |  |            |  |  |           |        |                    |  |               |        |                       
|Nova Wildcat
    Amerock, LLC                                    |  | L+5.75%                   |  | 8.25%                  |     |  | 10/12/2018          |  | 10/12/2023 |  |  |           | 9,476  |                    |  |               | 9,301  |                       
|Nova Wildcat Amerock,
    LLC (Revolver) (f)                     |  | L+5.75%                   |  | 8.25%                  |     |  | 10/12/2018          |  | 10/12/2023 |  |  |           | 931    |                    |  |               | 106    |                       
|Parterre Flooring &
    Surface Systems, LLC (k)                 |  | L+7.25%                   |  | 9.75%                  |     |  | 8/22/2017           |  | 8/22/2022  |  |  |           | 11,100 |                    |  |               | 10,938 |                       
|Parterre Flooring &
    Surface Systems, LLC (Revolver) (f)      |  | L+7.25%                   |  | 9.75%                  |     |  | 8/22/2017           |  | 8/22/2022  |  |  |           | 2,400  |                    |  |               | 696    |                       
|                                                                 |  |                           |  |                        |     |  |                     |  |            |  |  |           | 23,907 |                    |  |               | 21,041 |                       
|Consumer
    Goods: Non-Durable                                  |  |                           |  |                        |     |  |                     |  |            |  |  |           |        |                    |  |               |        |                       
|Quirch Foods Holdings,
    LLC                                   |  | L+6.00%                   |  | 8.49%                  |     |  | 2/14/2019           |  | 12/19/2025 |  |  |           | 1,995  |                    |  |               | 1,975  |                       
|                                                                 |  |                           |  |                        |     |  |                     |  |            |  |  |           | 1,995  |                    |  |               | 1,975  |                       
|Energy:
                                         Oil & Gas       |  |                           |  |                        |     |  |                     |  |            |  |  |           |        |                    |  |               |        |                       
|BJ Services, LLC                                                 |  | L+7.00%                   |  | 9.65%                  |     |  | 1/28/2019           |  | 1/3/2023   |  |  |           | 4,500  |                    |  |               | 4,458  |                       
|Landpoint, LLC                                                   |  | L+10.50%                  |  | 13.00%                 |     |  | 12/17/2013          |  | 12/20/2019 |  |  |           | 2,256  |                    |  |               | 2,254  |                       
|Landpoint, LLC (Revolver)
    (f)                                |  | L+10.50%                  |  | 13.00%                 |     |  | 12/17/2013          |  | 12/20/2019 |  |  |           | 313    |                    |  |               | —      |                       
|                                                                 |  |                           |  |                        |     |  |                     |  |            |  |  |           | 7,069  |                    |  |               | 6,712  |                       



7







MONROE CAPITAL CORPORATION



CONSOLIDATED SCHEDULE OF
INVESTMENTS – (continued)

(unaudited)

March 31, 2019

(in thousands, except for shares and
units)



|Portfolio Company (a)                                       |  | Spread AboveIndex (b) |  | Interest
    
Rate     |     |  | Acquisition

    Date (c) |  | Maturity   |     |  | Principal |        | Amortized

    Cost |  | Fair

    Value (d) |        | %
of
Net Assets (e)
|----------------------------------------------------------- |  | --------------------- |  | ---------------------- | --- |  | ------------------------- |  | ---------- | --- |  | --------- | ------ | ------------------- |  | ------------------- | ------ | -------------------
|Environmental Industries                                    |  |                       |  |                        |     |  |                           |  |            |     |  |           |        |                     |  |                     |        |                    
|StormTrap, LLC                                              |  | L+5.50%               |  | 8.00%                  |     |  | 12/10/2018                |  | 12/8/2023  |     |  |           | 7,980  |                     |  | $                   | 7,847  |                    
|StormTrap, LLC (Revolver) (f)                               |  | L+5.50%               |  | 8.00%                  |     |  | 12/10/2018                |  | 12/8/2023  |     |  |           | 432    |                     |  |                     | 216    |                    
|Synergy Environmental Corporation (k)                       |  | L+6.50%               |  | 9.00%                  |     |  | 4/29/2016                 |  | 4/29/2021  |     |  |           | 2,912  |                     |  |                     | 2,878  |                    
|Synergy Environmental Corporation (k)                       |  | L+6.50%               |  | 9.00%                  |     |  | 4/29/2016                 |  | 4/29/2021  |     |  |           | 487    |                     |  |                     | 481    |                    
|Synergy Environmental Corporation (Delayed Draw) (f) (g)    |  | L+6.50%               |  | 9.00%                  |     |  | 4/29/2016                 |  | 4/29/2021  |     |  |           | 1,315  |                     |  |                     | 832    |                    
|Synergy Environmental Corporation (Revolver)
    (f)        |  | L+6.50%               |  | 9.00%                  |     |  | 4/29/2016                 |  | 4/29/2021  |     |  |           | 671    |                     |  |                     | 404    |                    
|                                                            |  |                       |  |                        |     |  |                           |  |            |     |  |           | 13,797 |                     |  |                     | 12,658 |                    
|Healthcare & Pharmaceuticals                                |  |                       |  |                        |     |  |                           |  |            |     |  |           |        |                     |  |                     |        |                    
|American Optics Holdco, Inc. (h) (l)                        |  | L+7.00%               |  | 9.50%                  |     |  | 9/13/2017                 |  | 9/13/2022  |     |  |           | 4,293  |                     |  |                     | 4,228  |                    
|American Optics Holdco, Inc. (h) (l)                        |  | L+7.00%               |  | 9.50%                  |     |  | 9/13/2017                 |  | 9/13/2022  |     |  |           | 1,669  |                     |  |                     | 1,640  |                    
|American Optics Holdco, Inc. (Revolver) (f) (h) (l)         |  | L+7.00%               |  | 9.50%                  |     |  | 9/13/2017                 |  | 9/13/2022  |     |  |           | 440    |                     |  |                     | —      |                    
|American Optics Holdco, Inc. (Revolver) (f) (h) (l)         |  | L+7.00%               |  | 9.50%                  |     |  | 9/13/2017                 |  | 9/13/2022  |     |  |           | 440    |                     |  |                     | —      |                    
|Familia Dental Group Holdings, LLC (k)                      |  | L+8.00%               |  | 10.50%                 |     |  | 4/8/2016                  |  | 4/8/2021   |     |  |           | 5,019  |                     |  |                     | 4,981  |                    
|Familia Dental Group Holdings, LLC                          |  | L+8.00%               |  | 10.50%                 |     |  | 4/8/2016                  |  | 4/8/2021   |     |  |           | 483    |                     |  |                     | 483    |                    
|Familia Dental Group Holdings, LLC (Revolver) (f)           |  | L+8.00%               |  | 10.50%                 |     |  | 4/8/2016                  |  | 4/8/2021   |     |  |           | 573    |                     |  |                     | 286    |                    
|Rockdale Blackhawk, LLC (DIP Facility)                      |  | n/a                   |  | 15.10%                 |     |  | 8/30/2018                 |  | n/a        | (m) |  |           | 198    |                     |  |                     | 198    |                    
|Rockdale Blackhawk, LLC (DIP Facility)                      |  | n/a                   |  | 15.10%                 |     |  | 8/6/2018                  |  | n/a        | (m) |  |           | 8,877  |                     |  |                     | 8,877  |                    
|Rockdale Blackhawk, LLC                                     |  | L+13.00%              |  | 15.50%                 | (n) |  | 3/31/2015                 |  | 3/31/2020  |     |  |           | 10,923 |                     |  |                     | 10,465 |                    
|                                                            |  |                       |  |                        |     |  |                           |  |            |     |  |           | 32,915 |                     |  |                     | 31,158 |                    
|High Tech Industries                                        |  |                       |  |                        |     |  |                           |  |            |     |  |           |        |                     |  |                     |        |                    
|Host Analytics, Inc.                                        |  | L+6.00%               |  | 8.49%                  |     |  | 12/28/2018                |  | 12/28/2023 |     |  |           | 9,500  |                     |  |                     | 9,318  |                    
|Host Analytics, Inc. (Revolver) (f)                         |  | L+6.00%               |  | 8.49%                  |     |  | 12/28/2018                |  | 12/28/2023 |     |  |           | 442    |                     |  |                     | —      |                    
|Mindbody, Inc.                                              |  | L+7.00%               |  | 9.48%                  |     |  | 2/15/2019                 |  | 2/14/2025  |     |  |           | 6,333  |                     |  |                     | 6,212  |                    
|Mindbody, Inc. (Revolver) (f)                               |  | L+7.00%               |  | 9.48%                  |     |  | 2/15/2019                 |  | 2/14/2025  |     |  |           | 667    |                     |  |                     | —      |                    
|Newforma, Inc. (k)                                          |  | L+5.50%               |  | 8.10%                  |     |  | 6/30/2017                 |  | 6/30/2022  |     |  |           | 14,775 |                     |  |                     | 14,622 |                    
|Newforma, Inc. (Revolver) (f)                               |  | L+5.50%               |  | 8.10%                  |     |  | 6/30/2017                 |  | 6/30/2022  |     |  |           | 1,250  |                     |  |                     | —      |                    
|Prototek Sheetmetal Fabrication, LLC                        |  | L+7.00%               |  | 9.50%                  |     |  | 12/11/2017                |  | 12/12/2022 |     |  |           | 3,456  |                     |  |                     | 3,402  |                    
|Prototek Sheetmetal Fabrication, LLC (Delayed Draw) (f) (g) |  | L+7.00%               |  | 9.50%                  |     |  | 12/11/2017                |  | 12/12/2022 |     |  |           | 2,327  |                     |  |                     | 811    |                    
|Prototek Sheetmetal Fabrication, LLC (Revolver) (f)         |  | L+7.00%               |  | 9.50%                  |     |  | 12/11/2017                |  | 12/12/2022 |     |  |           | 233    |                     |  |                     | —      |                    
|RPL Bidco Limited (h) (l) (o)                               |  | L+7.50%               |  | 8.36%                  |     |  | 11/9/2017                 |  | 11/9/2023  |     |  |           | 14,056 |                     |  |                     | 14,107 |                    
|RPL Bidco Limited (Delayed Draw) (f) (g) (h) (l) (o)        |  | L+7.50%               |  | 8.36%                  |     |  | 5/22/2018                 |  | 11/9/2023  |     |  |           | 2,086  |                     |  |                     | —      |                    
|RPL Bidco Limited (Revolver) (f) (h) (l) (o)                |  | L+7.50%               |  | 8.36%                  |     |  | 11/9/2017                 |  | 11/9/2023  |     |  |           | 521    |                     |  |                     | —      |                    
|WillowTree, LLC                                             |  | L+5.50%               |  | 8.00%                  |     |  | 10/9/2018                 |  | 10/9/2023  |     |  |           | 7,960  |                     |  |                     | 7,832  |                    
|WillowTree, LLC (Revolver) (f)                              |  | L+5.50%               |  | 8.00%                  |     |  | 10/9/2018                 |  | 10/9/2023  |     |  |           | 1,000  |                     |  |                     | 620    |                    
|                                                            |  |                       |  |                        |     |  |                           |  |            |     |  |           | 64,606 |                     |  |                     | 56,924 |                    
|Hotels, Gaming & Leisure                                    |  |                       |  |                        |     |  |                           |  |            |     |  |           |        |                     |  |                     |        |                    
|TRG, LLC                                                    |  | L+12.94%              |  | 9.99% Cash/ 5.44% PIK  | (p) |  | 12/23/2014                |  | 3/31/2021  |     |  |           | 17,080 |                     |  |                     | 17,027 |                    
|TRG, LLC (CapEx)                                            |  | L+9.50%               |  | 9.99% Cash/ 2.00% PIK  |     |  | 9/1/2015                  |  | 3/31/2021  |     |  |           | 1,365  |                     |  |                     | 1,362  |                    
|TRG, LLC (Revolver) (f)                                     |  | L+9.50%               |  | 11.99%                 |     |  | 12/23/2014                |  | 3/31/2021  |     |  |           | 262    |                     |  |                     | 131    |                    
|                                                            |  |                       |  |                        |     |  |                           |  |            |     |  |           | 18,707 |                     |  |                     | 18,520 |                    
|Media: Advertising, Printing & Publishing                   |  |                       |  |                        |     |  |                           |  |            |     |  |           |        |                     |  |                     |        |                    
|AdTheorent, Inc.                                            |  | L+8.50%               |  | 10.99%                 |     |  | 12/22/2016                |  | 12/22/2021 |     |  |           | 4,029  |                     |  |                     | 3,981  |                    
|Destination Media, Inc. (k)                                 |  | L+5.50%               |  | 8.00%                  |     |  | 4/7/2017                  |  | 4/7/2022   |     |  |           | 5,024  |                     |  |                     | 4,976  |                    
|Destination Media, Inc. (Revolver) (f)                      |  | L+5.50%               |  | 8.00%                  |     |  | 4/7/2017                  |  | 4/7/2022   |     |  |           | 542    |                     |  |                     | —      |                    
|MC Sign Lessor Corp.                                        |  | L+7.00%               |  | 9.49%                  |     |  | 12/22/2017                |  | 12/22/2022 |     |  |           | 9,159  |                     |  |                     | 9,014  |                    
|MC Sign Lessor Corp.                                        |  | L+7.00%               |  | 9.49%                  |     |  | 12/22/2017                |  | 12/22/2022 |     |  |           | 2,083  |                     |  |                     | 2,083  |                    
|MC Sign Lessor Corp. (Revolver) (f)                         |  | L+7.00%               |  | 9.49%                  |     |  | 12/22/2017                |  | 12/22/2022 |     |  |           | 625    |                     |  |                     | —      |                    
|                                                            |  |                       |  |                        |     |  |                           |  |            |     |  |           | 21,462 |                     |  |                     | 20,054 |                    
|Media: Diversified & Production                             |  |                       |  |                        |     |  |                           |  |            |     |  |           |        |                     |  |                     |        |                    
|Attom Intermediate Holdco, LLC                              |  | L+5.75%               |  | 8.25%                  |     |  | 1/4/2019                  |  | 1/4/2024   |     |  |           | 1,995  |                     |  |                     | 1,957  |                    
|Attom Intermediate Holdco, LLC (Revolver) (f)               |  | L+5.75%               |  | 8.25%                  |     |  | 1/4/2019                  |  | 1/4/2024   |     |  |           | 320    |                     |  |                     | —      |                    
|Crownpeak Technology, Inc.                                  |  | L+6.25%               |  | 8.74%                  |     |  | 2/28/2019                 |  | 2/28/2024  |     |  |           | 4,000  |                     |  |                     | 3,923  |                    
|Crownpeak Technology, Inc. (Delayed Draw) (f) (g)           |  | L+6.25%               |  | 8.74%                  |     |  | 2/28/2019                 |  | 2/28/2024  |     |  |           | 333    |                     |  |                     | —      |                    
|Crownpeak Technology, Inc. (Revolver) (f)                   |  | L+6.25%               |  | 8.74%                  |     |  | 2/28/2019                 |  | 2/28/2024  |     |  |           | 167    |                     |  |                     | —      |                    
|                                                            |  |                       |  |                        |     |  |                           |  |            |     |  |           | 6,815  |                     |  |                     | 5,880  |                    
|Retail                                                      |  |                       |  |                        |     |  |                           |  |            |     |  |           |        |                     |  |                     |        |                    
|Bluestem Brands, Inc.                                       |  | L+7.50%               |  | 10.00%                 |     |  | 6/26/2015                 |  | 11/6/2020  |     |  |           | 2,396  |                     |  |                     | 2,387  |                    
|Forman Mills, Inc. (k)                                      |  | L+9.50%               |  | 10.00% Cash/ 2.00% PIK |     |  | 10/4/2016                 |  | 10/4/2021  |     |  |           | 8,309  |                     |  |                     | 8,216  |                    
|LuLu's Fashion Lounge, LLC                                  |  | L+7.00%               |  | 9.50%                  |     |  | 8/21/2017                 |  | 8/29/2022  |     |  |           | 4,437  |                     |  |                     | 4,340  |                    
|The Worth Collection, Ltd. (k)                              |  | L+8.50%               |  | 11.00%                 |     |  | 9/29/2016                 |  | 9/29/2021  |     |  |           | 10,588 |                     |  |                     | 10,469 |                    
|Yandy Holding, LLC                                          |  | L+11.00%              |  | 13.50%                 |     |  | 9/30/2014                 |  | 9/30/2019  |     |  |           | 3,643  |                     |  |                     | 3,636  |                    
|Yandy Holding, LLC (Revolver) (f)                           |  | L+11.00%              |  | 13.50%                 |     |  | 9/30/2014                 |  | 9/30/2019  |     |  |           | 907    |                     |  |                     | —      |                    
|                                                            |  |                       |  |                        |     |  |                           |  |            |     |  |           | 30,280 |                     |  |                     | 29,048 |                    



8







MONROE CAPITAL CORPORATION



CONSOLIDATED SCHEDULE OF
INVESTMENTS – (continued)

(unaudited)

March 31, 2019

(in thousands, except for shares and
units)



|Portfolio
    Company (a)                                   |  | Spread
    AboveIndex (b) |  | Interest
    
Rate     |  |  | Acquisition

    Date (c) |  | Maturity   |  |  | Principal |         |  | Amortized

    Cost |   |         | Fair

    Value (d) |  |   | %
of
Net Assets (e) | 
|----------------------------------------------------------- |  | ------------------------- |  | ---------------------- |  |  | ------------------------- |  | ---------- |  |  | --------- | ------- |  | ------------------- | - | ------- | ------------------- |  | - | ------------------- | 
|Services: Business                                          |  |                           |  |                        |  |  |                           |  |            |  |  |           |         |  |                     |   |         |                     |  |   |                     | 
|APCO Worldwide, Inc.                                        |  | L+8.00%                   |  | 10.50%                 |  |  | 6/30/2017                 |  | 6/30/2022  |  |  |           | 4,812   |  |                     | $ | 4,745   |                     |  | $ | 4,731               | 
|Atlas Sign Industries of FLA, LLC (k)                       |  | L+11.50%                  |  | 13.00% Cash/ 1.00% PIK |  |  | 5/14/2018                 |  | 5/15/2023  |  |  |           | 3,500   |  |                     |   | 3,305   |                     |  |   | 3,334               | 
|Burroughs, Inc. (k)                                         |  | L+7.50%                   |  | 9.99%                  |  |  | 12/22/2017                |  | 12/22/2022 |  |  |           | 5,850   |  |                     |   | 5,782   |                     |  |   | 5,718               | 
|Burroughs, Inc. (Revolver) (f)                              |  | L+7.50%                   |  | 9.99%                  |  |  | 12/22/2017                |  | 12/22/2022 |  |  |           | 1,215   |  |                     |   | 1,125   |                     |  |   | 1,125               | 
|Certify, Inc.                                               |  | L+6.00%                   |  | 8.50%                  |  |  | 2/28/2019                 |  | 2/28/2024  |  |  |           | 9,000   |  |                     |   | 8,867   |                     |  |   | 8,973               | 
|Certify, Inc. (Delayed Draw) (f) (g)                        |  | L+6.00%                   |  | 8.50%                  |  |  | 2/28/2019                 |  | 2/28/2024  |  |  |           | 1,227   |  |                     |   | —       |                     |  |   | —                   | 
|Certify, Inc. (Revolver) (f)                                |  | L+6.00%                   |  | 8.50%                  |  |  | 2/28/2019                 |  | 2/28/2024  |  |  |           | 409     |  |                     |   | —       |                     |  |   | —                   | 
|First Call Resolution, LLC (k)                              |  | L+7.00%                   |  | 9.49%                  |  |  | 9/22/2017                 |  | 9/22/2022  |  |  |           | 4,085   |  |                     |   | 4,032   |                     |  |   | 4,166               | 
|First Call Resolution, LLC                                  |  | L+7.00%                   |  | 9.49%                  |  |  | 9/28/2018                 |  | 9/22/2022  |  |  |           | 9,900   |  |                     |   | 9,756   |                     |  |   | 10,098              | 
|HaystackID LLC                                              |  | L+6.50%                   |  | 9.00%                  |  |  | 1/14/2019                 |  | 1/12/2024  |  |  |           | 4,988   |  |                     |   | 4,893   |                     |  |   | 4,997               | 
|HaystackID LLC (Revolver) (f)                               |  | L+6.50%                   |  | 9.00%                  |  |  | 1/14/2019                 |  | 1/12/2024  |  |  |           | 403     |  |                     |   | 161     |                     |  |   | 161                 | 
|IT Global Holding LLC                                       |  | L+7.00%                   |  | 9.50%                  |  |  | 11/15/2018                |  | 11/10/2023 |  |  |           | 10,434  |  |                     |   | 10,238  |                     |  |   | 10,419              | 
|IT Global Holding LLC (Revolver) (f)                        |  | L+7.00%                   |  | 9.50%                  |  |  | 11/15/2018                |  | 11/10/2023 |  |  |           | 875     |  |                     |   | 263     |                     |  |   | 263                 | 
|Madison Logic, Inc. (k)                                     |  | L+8.00%                   |  | 10.50%                 |  |  | 11/30/2016                |  | 11/30/2021 |  |  |           | 9,868   |  |                     |   | 9,750   |                     |  |   | 9,868               | 
|Madison Logic, Inc. (Revolver) (f)                          |  | L+8.00%                   |  | 10.50%                 |  |  | 11/30/2016                |  | 11/30/2021 |  |  |           | 988     |  |                     |   | —       |                     |  |   | —                   | 
|RedZone Robotics, Inc.                                      |  | L+7.75%                   |  | 9.25% Cash/ 1.00% PIK  |  |  | 6/1/2018                  |  | 6/5/2023   |  |  |           | 756     |  |                     |   | 743     |                     |  |   | 688                 | 
|RedZone Robotics, Inc. (Revolver) (f)                       |  | L+7.75%                   |  | 9.25% Cash/ 1.00% PIK  |  |  | 6/1/2018                  |  | 6/5/2023   |  |  |           | 158     |  |                     |   | —       |                     |  |   | —                   | 
|Security Services Acquisition (k)                           |  | L+6.00%                   |  | 8.58%                  |  |  | 2/15/2019                 |  | 2/15/2024  |  |  |           | 3,500   |  |                     |   | 3,433   |                     |  |   | 3,497               | 
|Security Services Acquisition (Delayed Draw) (f) (g) (k)    |  | L+6.00%                   |  | 8.58%                  |  |  | 2/15/2019                 |  | 2/15/2024  |  |  |           | 2,500   |  |                     |   | —       |                     |  |   | —                   | 
|Security Services Acquisition (Delayed Draw) (f) (g) (k)    |  | L+6.00%                   |  | 8.58%                  |  |  | 2/15/2019                 |  | 2/15/2024  |  |  |           | 2,188   |  |                     |   | —       |                     |  |   | —                   | 
|Security Services Acquisition (Revolver) (f)                |  | L+6.00%                   |  | 8.58%                  |  |  | 2/15/2019                 |  | 2/15/2024  |  |  |           | 1,042   |  |                     |   | —       |                     |  |   | —                   | 
|TRP Construction Group, LLC (k)                             |  | L+7.00%                   |  | 9.50%                  |  |  | 10/5/2017                 |  | 10/5/2022  |  |  |           | 7,911   |  |                     |   | 7,793   |                     |  |   | 7,888               | 
|TRP Construction Group, LLC (Delayed Draw) (f) (g)          |  | L+7.00%                   |  | 9.50%                  |  |  | 9/5/2018                  |  | 10/5/2022  |  |  |           | 7,000   |  |                     |   | 6,741   |                     |  |   | 6,721               | 
|TRP Construction Group, LLC (Revolver) (f)                  |  | L+7.00%                   |  | 9.50%                  |  |  | 10/5/2017                 |  | 10/5/2022  |  |  |           | 2,133   |  |                     |   | —       |                     |  |   | —                   | 
|VPS Holdings, LLC                                           |  | L+7.00%                   |  | 9.50%                  |  |  | 10/5/2018                 |  | 10/4/2024  |  |  |           | 4,969   |  |                     |   | 4,874   |                     |  |   | 4,979               | 
|VPS Holdings, LLC                                           |  | L+7.00%                   |  | 9.50%                  |  |  | 10/5/2018                 |  | 10/4/2024  |  |  |           | 4,000   |  |                     |   | 4,000   |                     |  |   | 4,008               | 
|VPS Holdings, LLC (Revolver) (f)                            |  | L+7.00%                   |  | 9.50%                  |  |  | 10/5/2018                 |  | 10/4/2024  |  |  |           | 1,000   |  |                     |   | 100     |                     |  |   | 100                 | 
|                                                            |  |                           |  |                        |  |  |                           |  |            |  |  |           | 104,711 |  |                     |   | 90,601  |                     |  |   | 91,734              | 
|Services: Consumer                                          |  |                           |  |                        |  |  |                           |  |            |  |  |           |         |  |                     |   |         |                     |  |   |                     | 
|Mammoth Holdings, LLC                                       |  | L+6.00%                   |  | 8.80%                  |  |  | 10/16/2018                |  | 10/16/2023 |  |  |           | 1,995   |  |                     |   | 1,958   |                     |  |   | 1,992               | 
|Mammoth Holdings, LLC (Delayed Draw) (f) (g)                |  | L+6.00%                   |  | 8.80%                  |  |  | 10/16/2018                |  | 10/16/2023 |  |  |           | 4,167   |  |                     |   | —       |                     |  |   | —                   | 
|Mammoth Holdings, LLC (Revolver) (f)                        |  | L+6.00%                   |  | 8.80%                  |  |  | 10/16/2018                |  | 10/16/2023 |  |  |           | 500     |  |                     |   | —       |                     |  |   | —                   | 
|PeopleConnect Intermediate, LLC                             |  | L+6.50%                   |  | 9.30%                  |  |  | 7/1/2015                  |  | 7/1/2020   |  |  |           | 4,272   |  |                     |   | 4,245   |                     |  |   | 4,255               | 
|PeopleConnect Intermediate, LLC                             |  | L+12.50%                  |  | 15.30%                 |  |  | 7/1/2015                  |  | 7/1/2020   |  |  |           | 4,636   |  |                     |   | 4,603   |                     |  |   | 4,610               | 
|PeopleConnect Intermediate, LLC (Revolver)
    (f)          |  | L+9.50%                   |  | 12.30%                 |  |  | 7/1/2015                  |  | 7/1/2020   |  |  |           | 236     |  |                     |   | 118     |                     |  |   | 118                 | 
|                                                            |  |                           |  |                        |  |  |                           |  |            |  |  |           | 15,806  |  |                     |   | 10,924  |                     |  |   | 10,975              | 
|Wholesale                                                   |  |                           |  |                        |  |  |                           |  |            |  |  |           |         |  |                     |   |         |                     |  |   |                     | 
|Mid-West Wholesale Hardware Co. (k)                         |  | L+8.00%                   |  | 10.50%                 |  |  | 2/9/2017                  |  | 2/9/2022   |  |  |           | 16,361  |  |                     |   | 16,148  |                     |  |   | 16,279              | 
|Mid-West Wholesale Hardware Co. (Revolver) (f)              |  | L+8.00%                   |  | 10.50%                 |  |  | 2/9/2017                  |  | 2/9/2022   |  |  |           | 5,491   |  |                     |   | 3,295   |                     |  |   | 3,278               | 
|Nearly Natural, Inc. (k)                                    |  | L+7.00%                   |  | 9.60%                  |  |  | 12/15/2017                |  | 12/15/2022 |  |  |           | 6,913   |  |                     |   | 6,806   |                     |  |   | 6,843               | 
|Nearly Natural, Inc. (Revolver) (f)                         |  | L+7.00%                   |  | 9.60%                  |  |  | 12/15/2017                |  | 12/15/2022 |  |  |           | 1,522   |  |                     |   | 761     |                     |  |   | 761                 | 
|                                                            |  |                           |  |                        |  |  |                           |  |            |  |  |           | 30,287  |  |                     |   | 27,010  |                     |  |   | 27,161              | 
|Total Non-Controlled/Non-Affiliate
    Senior Secured Loans |  |                           |  |                        |  |  |                           |  |            |  |  |           | 482,710 |  |                     |   | 425,878 |                     |  |   | 426,392             | 
|                                                            |  |                           |  |                        |  |  |                           |  |            |  |  |           |         |  |                     |   |         |                     |  |   |                     | 
|Unitranche Secured Loans (q)                                |  |                           |  |                        |  |  |                           |  |            |  |  |           |         |  |                     |   |         |                     |  |   |                     | 
|Chemicals, Plastics & Rubber                                |  |                           |  |                        |  |  |                           |  |            |  |  |           |         |  |                     |   |         |                     |  |   |                     | 
|MFG Chemical, LLC (k)                                       |  | L+6.00%                   |  | 8.50%                  |  |  | 6/23/2017                 |  | 6/23/2022  |  |  |           | 10,477  |  |                     |   | 10,366  |                     |  |   | 10,335              | 
|MFG Chemical, LLC                                           |  | L+6.00%                   |  | 8.50%                  |  |  | 3/15/2018                 |  | 6/23/2022  |  |  |           | 1,129   |  |                     |   | 1,129   |                     |  |   | 1,114               | 
|                                                            |  |                           |  |                        |  |  |                           |  |            |  |  |           | 11,606  |  |                     |   | 11,495  |                     |  |   | 11,449              | 
|Consumer Goods: Durable                                     |  |                           |  |                        |  |  |                           |  |            |  |  |           |         |  |                     |   |         |                     |  |   |                     | 
|RugsUSA, LLC                                                |  | L+6.00%                   |  | 8.61%                  |  |  | 5/2/2018                  |  | 4/28/2023  |  |  |           | 4,000   |  |                     |   | 3,967   |                     |  |   | 3,990               | 
|                                                            |  |                           |  |                        |  |  |                           |  |            |  |  |           | 4,000   |  |                     |   | 3,967   |                     |  |   | 3,990               | 



9







MONROE CAPITAL CORPORATION



CONSOLIDATED SCHEDULE OF
INVESTMENTS – (continued)

(unaudited)

March 31, 2019

(in thousands, except for shares and
units)



|Portfolio
    Company (a)                                                                  |  | Spread
    AboveIndex (b) |  | InterestRate           |     |  | AcquisitionDate (c) |  | Maturity   |     |  | Principal |        |  | Amortized
    Cost |   |        | FairValue (d) |  |   | %
    ofNet Assets (e) | 
|------------------------------------------------------------------------------------------ |  | ------------------------- |  | ---------------------- | --- |  | ------------------- |  | ---------- | --- |  | --------- | ------ |  | ------------------ | - | ------ | ------------- |  | - | ---------------------- | 
|Healthcare
    & Pharmaceuticals                                                           |  |                           |  |                        |     |  |                     |  |            |     |  |           |        |  |                    |   |        |               |  |   |                        | 
|Collaborative Neuroscience
    Network, LLC                                                |  | L+11.50%                  |  | 14.00%                 |     |  | 12/27/2012          |  | n/a        | (m) |  |           | 6,120  |  |                    | $ | 6,102  |               |  | $ | 6,025                  | 
|Collaborative Neuroscience
    Network, LLC                                                |  | n/a                       |  | 12.00% Cash/ 3.00% PIK |     |  | 4/14/2016           |  | n/a        | (m) |  |           | 306    |  |                    |   | 306    |               |  |   | 306                    | 
|Collaborative Neuroscience
    Network, LLC (Revolver)                                     |  | L+10.00%                  |  | 12.50%                 |     |  | 5/25/2017           |  | n/a        | (m) |  |           | 200    |  |                    |   | 193    |               |  |   | 200                    | 
|Priority Ambulance, LLC
    (r)                                                            |  | L+6.50%                   |  | 9.10%                  |     |  | 4/12/2017           |  | 4/12/2022  |     |  |           | 10,015 |  |                    |   | 10,015 |               |  |   | 9,965                  | 
|Priority Ambulance, LLC
    (s)                                                            |  | L+6.50%                   |  | 9.10%                  |     |  | 12/13/2018          |  | 4/12/2022  |     |  |           | 1,253  |  |                    |   | 1,228  |               |  |   | 1,247                  | 
|Priority Ambulance, LLC
    (Delayed Draw) (f) (g)                                         |  | L+6.50%                   |  | 9.10%                  |     |  | 7/18/2018           |  | 4/12/2022  |     |  |           | 246    |  |                    |   | —      |               |  |   | —                      | 
|Priority Ambulance, LLC
    (Delayed Draw) (f) (g)                                         |  | L+6.50%                   |  | 9.10%                  |     |  | 12/13/2018          |  | 4/12/2022  |     |  |           | 2,485  |  |                    |   | 446    |               |  |   | 444                    | 
|                                                                                           |  |                           |  |                        |     |  |                     |  |            |     |  |           | 20,625 |  |                    |   | 18,290 |               |  |   | 18,187                 | 
|High
    Tech Industries                                                                   |  |                           |  |                        |     |  |                     |  |            |     |  |           |        |  |                    |   |        |               |  |   |                        | 
|Energy Services Group,
    LLC                                                             |  | L+8.42%                   |  | 10.92%                 |     |  | 5/4/2017            |  | 5/4/2022   |     |  |           | 4,337  |  |                    |   | 4,297  |               |  |   | 4,337                  | 
|Energy Services Group,
    LLC (h) (o)                                                     |  | L+8.42%                   |  | 9.42%                  |     |  | 5/4/2017            |  | 5/4/2022   |     |  |           | 5,092  |  |                    |   | 5,122  |               |  |   | 5,092                  | 
|Energy Services Group,
    LLC                                                             |  | L+8.42%                   |  | 10.92%                 |     |  | 5/4/2017            |  | 5/4/2022   |     |  |           | 1,234  |  |                    |   | 1,219  |               |  |   | 1,234                  | 
|Mnine Holdings, Inc.                                                                       |  | L+6.75%                   |  | 9.25%                  |     |  | 11/2/2018           |  | 11/2/2023  |     |  |           | 7,980  |  |                    |   | 7,830  |               |  |   | 8,024                  | 
|                                                                                           |  |                           |  |                        |     |  |                     |  |            |     |  |           | 18,643 |  |                    |   | 18,468 |               |  |   | 18,687                 | 
|Total
    Non-Controlled/Non-Affiliate Unitranche Secured Loans                            |  |                           |  |                        |     |  |                     |  |            |     |  |           | 54,874 |  |                    |   | 52,220 |               |  |   | 52,313                 | 
|                                                                                           |  |                           |  |                        |     |  |                     |  |            |     |  |           |        |  |                    |   |        |               |  |   |                        | 
|Junior Secured
    Loans                                                                   |  |                           |  |                        |     |  |                     |  |            |     |  |           |        |  |                    |   |        |               |  |   |                        | 
|Beverage,
    Food & Tobacco                                                               |  |                           |  |                        |     |  |                     |  |            |     |  |           |        |  |                    |   |        |               |  |   |                        | 
|CSM Bakery Supplies,
    LLC                                                               |  | L+7.75%                   |  | 10.55%                 |     |  | 5/23/2013           |  | 7/5/2021   |     |  |           | 5,792  |  |                    |   | 5,792  |               |  |   | 5,430                  | 
|                                                                                           |  |                           |  |                        |     |  |                     |  |            |     |  |           | 5,792  |  |                    |   | 5,792  |               |  |   | 5,430                  | 
|High
    Tech Industries                                                                   |  |                           |  |                        |     |  |                     |  |            |     |  |           |        |  |                    |   |        |               |  |   |                        | 
|Micro Holdings Corp.                                                                       |  | L+7.50%                   |  | 9.99%                  |     |  | 8/16/2017           |  | 8/18/2025  |     |  |           | 3,000  |  |                    |   | 2,972  |               |  |   | 2,963                  | 
|                                                                                           |  |                           |  |                        |     |  |                     |  |            |     |  |           | 3,000  |  |                    |   | 2,972  |               |  |   | 2,963                  | 
|Media:
    Broadcasting & Subscription                                                     |  |                           |  |                        |     |  |                     |  |            |     |  |           |        |  |                    |   |        |               |  |   |                        | 
|Mergermarket Bidco Limited                                                                 |  | L+7.25%                   |  | 9.75%                  |     |  | 7/26/2017           |  | 8/4/2025   |     |  |           | 4,500  |  |                    |   | 4,459  |               |  |   | 4,472                  | 
|                                                                                           |  |                           |  |                        |     |  |                     |  |            |     |  |           | 4,500  |  |                    |   | 4,459  |               |  |   | 4,472                  | 
|Media:
    Diversified & Production                                                        |  |                           |  |                        |     |  |                     |  |            |     |  |           |        |  |                    |   |        |               |  |   |                        | 
|The Octave Music Group,
    Inc.                                                           |  | L+8.25%                   |  | 10.73%                 |     |  | 5/29/2015           |  | 5/27/2022  |     |  |           | 5,000  |  |                    |   | 4,959  |               |  |   | 5,000                  | 
|                                                                                           |  |                           |  |                        |     |  |                     |  |            |     |  |           | 5,000  |  |                    |   | 4,959  |               |  |   | 5,000                  | 
|Services:
    Consumer                                                                     |  |                           |  |                        |     |  |                     |  |            |     |  |           |        |  |                    |   |        |               |  |   |                        | 
|Education Corporation
    of America                                                       |  | L+11.00%                  |  | 8.10% Cash/ 5.50% PIK  | (n) |  | 9/3/2015            |  | 3/31/2020  |     |  |           | 2,292  |  |                    |   | 2,289  |               |  |   | 2,292                  | 
|                                                                                           |  |                           |  |                        |     |  |                     |  |            |     |  |           | 2,292  |  |                    |   | 2,289  |               |  |   | 2,292                  | 
|Total
    Non-Controlled/Non-Affiliate Junior Secured Loans                                |  |                           |  |                        |     |  |                     |  |            |     |  |           | 20,584 |  |                    |   | 20,471 |               |  |   | 20,157                 | 
|                                                                                           |  |                           |  |                        |     |  |                     |  |            |     |  |           |        |  |                    |   |        |               |  |   |                        | 
|Equity Securities(t) (u)                                                                   |  |                           |  |                        |     |  |                     |  |            |     |  |           |        |  |                    |   |        |               |  |   |                        | 
|Banking,
    Finance, Insurance & Real Estate                                              |  |                           |  |                        |     |  |                     |  |            |     |  |           |        |  |                    |   |        |               |  |   |                        | 
|PKS Holdings, LLC (warrant
    to purchase up to 0.8% of the equity) (h)                   |  | —                         |  | —                      | (v) |  | 11/30/2017          |  | 11/30/2027 |     |  |           | —      |  |                    |   | 116    |               |  |   | 13                     | 
|                                                                                           |  |                           |  |                        |     |  |                     |  |            |     |  |           |        |  |                    |   | 116    |               |  |   | 13                     | 
|Chemicals,
    Plastics & Rubber                                                           |  |                           |  |                        |     |  |                     |  |            |     |  |           |        |  |                    |   |        |               |  |   |                        | 
|Valudor Products, LLC
    (501,014 class A-1 units)                                        |  | n/a                       |  | 10.00% PIK             |     |  | 6/18/2018           |  | —          |     |  |           | —      |  |                    |   | 501    |               |  |   | 323                    | 
|                                                                                           |  |                           |  |                        |     |  |                     |  |            |     |  |           |        |  |                    |   | 501    |               |  |   | 323                    | 
|Healthcare
    & Pharmaceuticals                                                           |  |                           |  |                        |     |  |                     |  |            |     |  |           |        |  |                    |   |        |               |  |   |                        | 
|Collaborative Neuroscience
    Network, LLC (warrant to purchase up to 1.5% of the equity) |  | —                         |  | —                      | (v) |  | 12/27/2012          |  | 12/27/2022 |     |  |           | —      |  |                    |   | —      |               |  |   | 190                    | 
|Collaborative Neuroscience
    Network, LLC (warrant to purchase up to 2.1% of the equity) |  | —                         |  | —                      | (v) |  | 7/19/2016           |  | 12/31/2027 |     |  |           | —      |  |                    |   | —      |               |  |   | —                      | 
|                                                                                           |  |                           |  |                        |     |  |                     |  |            |     |  |           |        |  |                    |   | —      |               |  |   | 190                    | 
|High
                                         Tech Industries                              |  |                           |  |                        |     |  |                     |  |            |     |  |           |        |  |                    |   |        |               |  |   |                        | 
|Answers Finance,
    LLC (76,539 shares of common stock)                                   |  | —                         |  | —                      | (v) |  | 4/14/2017           |  | —          |     |  |           | —      |  |                    |   | 2,413  |               |  |   | 172                    | 
|Host Analytics, Inc.
    (441,860 class A Units)                                           |  | —                         |  | —                      | (v) |  | 12/28/2018          |  | —          |     |  |           | —      |  |                    |   | 442    |               |  |   | 453                    | 
|                                                                                           |  |                           |  |                        |     |  |                     |  |            |     |  |           |        |  |                    |   | 2,855  |               |  |   | 625                    | 
|Hotels,
    Gaming & Leisure                                                               |  |                           |  |                        |     |  |                     |  |            |     |  |           |        |  |                    |   |        |               |  |   |                        | 
|Playtime, LLC - Preferred
    Units (8,665 units)                                          |  | —                         |  | —                      | (v) |  | 12/4/2012           |  | —          |     |  |           | —      |  |                    |   | 200    |               |  |   | —                      | 
|                                                                                           |  |                           |  |                        |     |  |                     |  |            |     |  |           |        |  |                    |   | 200    |               |  |   | —                      | 
|Media:
    Advertising, Printing & Publishing                                              |  |                           |  |                        |     |  |                     |  |            |     |  |           |        |  |                    |   |        |               |  |   |                        | 
|AdTheorent, Inc. (128,866
    class A voting units)                                        |  | —                         |  | —                      | (v) |  | 12/22/2016          |  | —          |     |  |           | —      |  |                    |   | 129    |               |  |   | 262                    | 
|InMobi Pte, Ltd. (warrant
    to purchase up to 2.8% of the equity) (h) (l)                |  | —                         |  | —                      | (v) |  | 9/18/2015           |  | 9/18/2025  |     |  |           | —      |  |                    |   | —      |               |  |   | 209                    | 
|                                                                                           |  |                           |  |                        |     |  |                     |  |            |     |  |           |        |  |                    |   | 129    |               |  |   | 471                    | 
|Media:
    Diversified & Production                                                        |  |                           |  |                        |     |  |                     |  |            |     |  |           |        |  |                    |   |        |               |  |   |                        | 
|ATTOM Holdco LLC (260,000
    class A units)                                               |  | —                         |  | —                      | (v) |  | 1/4/2019            |  | —          |     |  |           | —      |  |                    |   | 260    |               |  |   | 256                    | 
|                                                                                           |  |                           |  |                        |     |  |                     |  |            |     |  |           |        |  |                    |   | 260    |               |  |   | 256                    | 



10







MONROE CAPITAL CORPORATION



CONSOLIDATED SCHEDULE OF
INVESTMENTS – (continued)

(unaudited)

March 31, 2019

(in thousands, except for shares and
units)



|Portfolio
    Company (a)                                                             |  | Spread
    AboveIndex (b) |  | Interest
    
Rate     |     |        | Acquisition

    Date (c) |   | Maturity   |        |        | Principal |         |        | Amortized

    Cost |   |        | Fair
    
Value (d) |     |   | %
of
Net Assets (e) | 
|------------------------------------------------------------------------------------- |  | ------------------------- |  | ---------------------- | --- | ------ | ------------------------- | - | ---------- | ------ | ------ | --------- | ------- | ------ | ------------------- | - | ------ | ------------------- | --- | - | ------------------- | 
|Retail                                                                                |  |                           |  |                        |     |        |                           |   |            |        |        |           |         |        |                     |   |        |                     |     |   |                     | 
|The Tie Bar Operating Company, LLC - Class A Preferred Units (1,275
    units)        |  | —                         |  | —                      |     |        | 6/25/2013                 |   | —          |        |        |           | —       |        |                     | $ | 87     |                     |     | $ | 110                 | 
|The Tie Bar Operating Company, LLC - Class
    B Preferred Units (1,275 units)        |  | —                         |  | —                      |     |        | 6/25/2013                 |   | —          |        |        |           | —       |        |                     |   | —      |                     |     |   | —                   | 
|                                                                                      |  |                           |  |                        |     |        |                           |   |            |        |        |           |         |        |                     |   | 87     |                     |     |   | 110                 | 
|Services: Business                                                                    |  |                           |  |                        |     |        |                           |   |            |        |        |           |         |        |                     |   |        |                     |     |   |                     | 
|APCO Worldwide, Inc.
    (100 shares class A voting common stock)                     |  | —                         |  | —                      | (v) |        | 11/1/2017                 |   | —          |        |        |           | —       |        |                     |   | 395    |                     |     |   | 307                 | 
|Atlas Sign Industries of FLA, LLC (warrants
    to purchase up to 0.8% of the equity) |  | —                         |  | —                      | (v) |        | 5/14/2018                 |   | 5/14/2026  |        |        |           | —       |        |                     |   | 125    |                     |     |   | 85                  | 
|                                                                                      |  |                           |  |                        |     |        |                           |   |            |        |        |           |         |        |                     |   | 520    |                     |     |   | 392                 | 
|Services: Consumer                                                                    |  |                           |  |                        |     |        |                           |   |            |        |        |           |         |        |                     |   |        |                     |     |   |                     | 
|Education Corporation of America - Series G
    Preferred Stock (8,333 shares)        |  | n/a                       |  | 12.00% PIK             | (n) |        | 9/3/2015                  |   | —          |        |        |           | —       |        |                     |   | 7,492  |                     |     |   | 4,583               | 
|                                                                                      |  |                           |  |                        |     |        |                           |   |            |        |        |           |         |        |                     |   | 7,492  |                     |     |   | 4,583               | 
|Wholesale                                                                             |  |                           |  |                        |     |        |                           |   |            |        |        |           |         |        |                     |   |        |                     |     |   |                     | 
|Nearly Natural, Inc. (152,174 class A units)                                          |  | —                         |  | —                      | (v) |        | 12/15/2017                |   | —          |        |        |           | —       |        |                     |   | 152    |                     |     |   | 132                 | 
|                                                                                      |  |                           |  |                        |     |        |                           |   |            |        |        |           |         |        |                     |   | 152    |                     |     |   | 132                 | 
|Total Non-Controlled/Non-Affiliate Equity Securities                                  |  |                           |  |                        |     |        |                           |   |            |        | 12,312 |           |         |        | 7,095               |   |        |                     | 2.8 | %
|Total Non-Controlled/Non-Affiliate Company Investments                                |  |                           |  |                        |     |        |                           | $ | 510,881    |        |        | $         | 505,957 |        |                     |   | 195.3  | %                  
|                                                                                      |  |                           |  |                        |     |        |                           |   |            |        |        |           |         |        |                     |   |        |                     |     |   |                     | 
|Non-Controlled Affiliate
    Company Investments (w)                                  |  |                           |  |                        |     |        |                           |   |            |        |        |           |         |        |                     |   |        |                     |     |   |                     | 
|Senior Secured Loans                                                                  |  |                           |  |                        |     |        |                           |   |            |        |        |           |         |        |                     |   |        |                     |     |   |                     | 
|Banking, Finance, Insurance & Real Estate                                             |  |                           |  |                        |     |        |                           |   |            |        |        |           |         |        |                     |   |        |                     |     |   |                     | 
|American Community Homes, Inc.                                                        |  | L+10.00%                  |  | 12.50% PIK             |     |        | 7/22/2014                 |   | 12/31/2020 |        |        |           | 8,046   |        |                     | $ | 8,031  |                     |     | $ | 6,574               | 
|American Community Homes, Inc.                                                        |  | L+14.50%                  |  | 17.00% PIK             |     |        | 7/22/2014                 |   | 12/31/2020 |        |        |           | 4,931   |        |                     |   | 4,923  |                     |     |   | 4,028               | 
|American Community Homes, Inc.                                                        |  | L+10.00%                  |  | 12.50% PIK             |     |        | 3/17/2016                 |   | 12/31/2020 |        |        |           | 609     |        |                     |   | 607    |                     |     |   | 497                 | 
|American Community Homes, Inc.                                                        |  | L+10.00%                  |  | 12.50% PIK             |     |        | 5/24/2017                 |   | 12/31/2020 |        |        |           | 488     |        |                     |   | 486    |                     |     |   | 399                 | 
|American Community Homes, Inc.                                                        |  | L+14.50%                  |  | 17.00% PIK             |     |        | 5/24/2017                 |   | 12/31/2020 |        |        |           | 265     |        |                     |   | 264    |                     |     |   | 217                 | 
|American Community Homes, Inc.                                                        |  | L+8.00%                   |  | 10.50% PIK             |     |        | 8/10/2018                 |   | 12/31/2020 |        |        |           | 1,778   |        |                     |   | 1,778  |                     |     |   | 1,452               | 
|American Community Homes, Inc.                                                        |  | L+8.00%                   |  | 10.50% PIK             |     |        | 3/29/2019                 |   | 12/31/2020 |        |        |           | 3,333   |        |                     |   | 3,333  |                     |     |   | 2,723               | 
|                                                                                      |  |                           |  |                        |     |        |                           |   |            |        |        |           | 19,450  |        |                     |   | 19,422 |                     |     |   | 15,890              | 
|Containers, Packaging & Glass                                                         |  |                           |  |                        |     |        |                           |   |            |        |        |           |         |        |                     |   |        |                     |     |   |                     | 
|Summit Container Corporation (k)                                                      |  | L+8.00%                   |  | 10.50%                 |     |        | 12/5/2013                 |   | 1/6/2021   |        |        |           | 3,259   |        |                     |   | 3,269  |                     |     |   | 3,029               | 
|Summit Container Corporation (Revolver) (f)
    (k)                                   |  | L+8.00%                   |  | 10.50%                 |     |        | 6/15/2018                 |   | 1/6/2021   |        |        |           | 8,000   |        |                     |   | 5,685  |                     |     |   | 5,634               | 
|                                                                                      |  |                           |  |                        |     |        |                           |   |            |        |        |           | 11,259  |        |                     |   | 8,954  |                     |     |   | 8,663               | 
|Healthcare
                                         & Pharmaceuticals                 |  |                           |  |                        |     |        |                           |   |            |        |        |           |         |        |                     |   |        |                     |     |   |                     | 
|SHI Holdings, Inc. (k)                                                                |  | L+10.25%                  |  | 12.75% PIK             |     |        | 7/10/2014                 |   | 12/31/2020 |        |        |           | 2,637   |        |                     |   | 2,634  |                     |     |   | 2,612               | 
|SHI Holdings, Inc. (Revolver) (f)                                                     |  | L+10.25%                  |  | 12.75% PIK             |     |        | 7/10/2014                 |   | 12/31/2020 |        |        |           | 4,227   |        |                     |   | 3,547  |                     |     |   | 3,515               | 
|                                                                                      |  |                           |  |                        |     |        |                           |   |            |        |        |           | 6,864   |        |                     |   | 6,181  |                     |     |   | 6,127               | 
|Retail                                                                                |  |                           |  |                        |     |        |                           |   |            |        |        |           |         |        |                     |   |        |                     |     |   |                     | 
|Luxury Optical Holdings Co.                                                           |  | L+8.00%                   |  | 10.50% PIK             |     |        | 9/12/2014                 |   | 9/12/2019  |        |        |           | 4,824   |        |                     |   | 4,815  |                     |     |   | 4,429               | 
|Luxury Optical Holdings Co. (Delayed Draw) (f) (g)                                    |  | L+11.50%                  |  | 14.00%                 |     |        | 9/29/2017                 |   | 9/12/2019  |        |        |           | 1,059   |        |                     |   | 624    |                     |     |   | 622                 | 
|Luxury Optical Holdings Co. (Revolver)                                                |  | L+8.00%                   |  | 10.50% PIK             |     |        | 9/12/2014                 |   | 9/12/2019  |        |        |           | 222     |        |                     |   | 222    |                     |     |   | 204                 | 
|                                                                                      |  |                           |  |                        |     |        |                           |   |            |        |        |           | 6,105   |        |                     |   | 5,661  |                     |     |   | 5,255               | 
|Services: Business                                                                    |  |                           |  |                        |     |        |                           |   |            |        |        |           |         |        |                     |   |        |                     |     |   |                     | 
|Curion Holdings, LLC (k)                                                              |  | n/a                       |  | 14.00% PIK             |     |        | 5/2/2017                  |   | 5/2/2022   |        |        |           | 4,080   |        |                     |   | 4,041  |                     |     |   | 3,723               | 
|Curion Holdings, LLC (Revolver) (f)                                                   |  | n/a                       |  | 14.00% PIK             |     |        | 5/2/2017                  |   | 5/2/2022   |        |        |           | 462     |        |                     |   | 256    |                     |     |   | 250                 | 
|                                                                                      |  |                           |  |                        |     |        |                           |   |            |        |        |           | 4,542   |        |                     |   | 4,297  |                     |     |   | 3,973               | 
|Total Non-Controlled Affiliate Senior Secured Loans                                   |  |                           |  |                        |     | 48,220 |                           |   |            | 44,515 |        |           |         | 39,908 |                     |   |        | 15.4                | %  
|                                                                                      |  |                           |  |                        |     |        |                           |   |            |        |        |           |         |        |                     |   |        |                     |     |   |                     | 
|Unitranche
    Secured Loans (q)                                                      |  |                           |  |                        |     |        |                           |   |            |        |        |           |         |        |                     |   |        |                     |    
|Consumer Goods: Non-Durable                                                           |  |                           |  |                        |     |        |                           |   |            |        |        |           |         |        |                     |   |        |                     |     |   |                     | 
|Incipio, LLC (x)                                                                      |  | L+9.06%                   |  | 11.00% Cash/ 0.56% PIK | (y) |        | 12/26/2014                |   | 5/31/2019  |        |        |           | 13,803  |        |                     |   | 13,777 |                     |     |   | 12,685              | 
|Incipio, LLC (z)                                                                      |  | L+8.50%                   |  | 11.00%                 |     |        | 3/9/2018                  |   | 5/31/2019  |        |        |           | 3,613   |        |                     |   | 3,613  |                     |     |   | 3,599               | 
|Incipio, LLC                                                                          |  | L+8.50%                   |  | 11.00%                 |     |        | 7/6/2018                  |   | 5/31/2019  |        |        |           | 1,535   |        |                     |   | 1,535  |                     |     |   | 1,529               | 
|                                                                                      |  |                           |  |                        |     |        |                           |   |            |        |        |           | 18,951  |        |                     |   | 18,925 |                     |     |   | 17,813              | 
|Total Non-Controlled Affiliate Unitranche Secured Loans                               |  |                           |  |                        |     | 18,951 |                           |   |            | 18,925 |        |           |         | 17,813 |                     |   |        | 6.9                 | %  



11







MONROE CAPITAL CORPORATION



CONSOLIDATED SCHEDULE OF
INVESTMENTS – (continued)

(unaudited)

March 31, 2019

(in thousands, except for shares and
units)



|Portfolio
    Company (a)                                                          |  | Spread
    AboveIndex (b) |  | Interest

    Rate |     |        | Acquisition

    Date (c) |  | Maturity   |        |  | Principal |        |        | Amortized

    Cost |   |         | Fair

    Value (d) |   |   | %
of
Net Assets (e) | 
|---------------------------------------------------------------------------------- |  | ------------------------- |  | ------------------ | --- | ------ | ------------------------- |  | ---------- | ------ |  | --------- | ------ | ------ | ------------------- | - | ------- | ------------------- | - | - | ------------------- | 
|Junior Secured Loans                                                               |  |                           |  |                    |     |        |                           |  |            |        |  |           |        |        |                     |   |         |                     |   |   |                     | 
|Consumer Goods: Non-Durable                                                        |  |                           |  |                    |     |        |                           |  |            |        |  |           |        |        |                     |   |         |                     |   |   |                     | 
|Incipio, LLC (aa)                                                                  |  | n/a                       |  | 10.70% PIK         | (n) |        | 6/18/2018                 |  | 12/31/2020 |        |  |           | 3,766  |        |                     | $ | —       |                     |   | $ | 1,109               | 
|Incipio, LLC (ab)                                                                  |  | n/a                       |  | 10.70% PIK         | (n) |        | 6/18/2018                 |  | 12/31/2020 |        |  |           | 7,194  |        |                     |   | —       |                     |   |   | —                   | 
|                                                                                   |  |                           |  |                    |     |        |                           |  |            |        |  |           | 10,960 |        |                     |   | —       |                     |   |   | 1,109               | 
|Services: Business                                                                 |  |                           |  |                    |     |        |                           |  |            |        |  |           |        |        |                     |   |         |                     |   |   |                     | 
|Curion Holdings, LLC (k)                                                           |  | n/a                       |  | 15.00% PIK         | (n) |        | 8/17/2018                 |  | 1/2/2023   |        |  |           | 1,720  |        |                     |   | 1       |                     |   |   | —                   | 
|Curion Holdings, LLC (k)                                                           |  | n/a                       |  | 15.00% PIK         | (n) |        | 8/17/2018                 |  | 1/2/2023   |        |  |           | 44     |        |                     |   | —       |                     |   |   | —                   | 
|                                                                                   |  |                           |  |                    |     |        |                           |  |            |        |  |           | 1,764  |        |                     |   | 1       |                     |   |   | —                   | 
|Total Non-Controlled Affiliate Company Junior Secured Loans                        |  |                           |  |                    |     | 12,724 |                           |  |            | 1      |  |           |        | 1,109  |                     |   |         | 0.4                 | %
|                                                                                   |  |                           |  |                    |     |        |                           |  |            |        |  |           |        |        |                     |   |         |                     |   |   |                     | 
|Equity Securities (u)                                                              |  |                           |  |                    |     |        |                           |  |            |        |  |           |        |        |                     |   |         |                     |   |   |                     | 
|Banking, Finance, Insurance & Real Estate                                          |  |                           |  |                    |     |        |                           |  |            |        |  |           |        |        |                     |   |         |                     |   |   |                     | 
|American Community Homes, Inc. (warrant to
    purchase up to 22.3% of the equity) |  | —                         |  | —                  | (v) |        | 10/9/2014                 |  | 12/18/2024 |        |  |           | —      |        |                     |   | —       |                     |   |   | —                   | 
|                                                                                   |  |                           |  |                    |     |        |                           |  |            |        |  |           |        |        |                     |   | —       |                     |   |   | —                   | 
|Consumer Goods: Non-Durable                                                        |  |                           |  |                    |     |        |                           |  |            |        |  |           |        |        |                     |   |         |                     |   |   |                     | 
|Incipio, LLC (1,774 shares of series C common units)                               |  | —                         |  | —                  | (v) |        | 7/6/2018                  |  | —          |        |  |           | —      |        |                     |   | —       |                     |   |   | —                   | 
|Millennial Brands LLC (10 preferred units)                                         |  | —                         |  | —                  | (v) |        | 5/2/2014                  |  | —          |        |  |           | —      |        |                     |   | 967     |                     |   |   | —                   | 
|Millennial Brands LLC (75,502 common units)                                        |  | —                         |  | —                  | (v) |        | 5/2/2014                  |  | —          |        |  |           | —      |        |                     |   | —       |                     |   |   | —                   | 
|                                                                                   |  |                           |  |                    |     |        |                           |  |            |        |  |           |        |        |                     |   | 967     |                     |   |   | —                   | 
|Containers, Packaging & Glass                                                      |  |                           |  |                    |     |        |                           |  |            |        |  |           |        |        |                     |   |         |                     |   |   |                     | 
|Summit Container Corporation (warrant
    to purchase up to 19.5% of the equity)   |  | —                         |  | —                  | (v) |        | 1/6/2014                  |  | 1/6/2024   |        |  |           | —      |        |                     |   | —       |                     |   |   | —                   | 
|                                                                                   |  |                           |  |                    |     |        |                           |  |            |        |  |           |        |        |                     |   | —       |                     |   |   | —                   | 
|Healthcare & Pharmaceuticals                                                       |  |                           |  |                    |     |        |                           |  |            |        |  |           |        |        |                     |   |         |                     |   |   |                     | 
|SHI Holdings, Inc. (24 shares of common stock)                                     |  | —                         |  | —                  | (v) |        | 12/14/2016                |  | —          |        |  |           | —      |        |                     |   | 27      |                     |   |   | 126                 | 
|                                                                                   |  |                           |  |                    |     |        |                           |  |            |        |  |           |        |        |                     |   | 27      |                     |   |   | 126                 | 
|Retail                                                                             |  |                           |  |                    |     |        |                           |  |            |        |  |           |        |        |                     |   |         |                     |   |   |                     | 
|Luxury Optical Holdings Co. (86 shares of common
    stock)                        |  | —                         |  | —                  | (v) |        | 9/29/2017                 |  | —          |        |  |           | —      |        |                     |   | —       |                     |   |   | —                   | 
|                                                                                   |  |                           |  |                    |     |        |                           |  |            |        |  |           |        |        |                     |   | —       |                     |   |   | —                   | 
|Services: Business                                                                 |  |                           |  |                    |     |        |                           |  |            |        |  |           |        |        |                     |   |         |                     |   |   |                     | 
|Curion Holdings, LLC (58,779 shares of common
    stock)                           |  | —                         |  | —                  | (v) |        | 8/17/2018                 |  | —          |        |  |           | —      |        |                     |   | —       |                     |   |   | —                   | 
|                                                                                   |  |                           |  |                    |     |        |                           |  |            |        |  |           |        |        |                     |   | —       |                     |   |   | —                   | 
|Total Non-Controlled Affiliate Equity Securities                                   |  |                           |  |                    |     |        |                           |  |            | 994    |  |           |        | 126    |                     |   |         | 0.0                 | %
|Total Non-Controlled Affiliate Company Investments                                 |  |                           |  |                    |     |        |                           |  | $          | 64,435 |  |           | $      | 58,956 |                     |   |         | 22.7                | %
|                                                                                   |  |                           |  |                    |     |        |                           |  |            |        |  |           |        |        |                     |   |         |                     |   |   |                     | 
|Controlled Affiliate Company Investments (ac)                                      |  |                           |  |                    |     |        |                           |  |            |        |  |           |        |        |                     |   |         |                     |   |   |                     | 
|Equity Securities                                                                  |  |                           |  |                    |     |        |                           |  |            |        |  |           |        |        |                     |   |         |                     |   |   |                     | 
|Investment Funds & Vehicles                                                        |  |                           |  |                    |     |        |                           |  |            |        |  |           |        |        |                     |   |         |                     |   |   |                     | 
|MRCC Senior Loan Fund I, LLC (50.0% of the
    equity interests) (h)               |  | —                         |  | —                  |     |        | 10/31/2017                |  | —          |        |  |           | —      |        |                     | $ | 31,275  |                     |   | $ | 32,032              | 
|Total Controlled Affiliate Equity Securities                                       |  |                           |  |                    |     |        |                           |  |            | 31,275 |  |           |        | 32,032 |                     |   |         | 12.4                | %
|Total Controlled Affiliate Company Investments                                     |  |                           |  |                    |     |        |                           |  | $          | 31,275 |  |           | $      | 32,032 |                     |   |         | 12.4                | %
|                                                                                   |  |                           |  |                    |     |        |                           |  |            |        |  |           |        |        |                     |   |         |                     |   |   |                     | 
|TOTAL INVESTMENTS                                                                  |  |                           |  |                    |     |        |                           |  |            |        |  |           |        |        |                     | $ | 606,591 |                     |   | $ | 596,945             | 



12







MONROE CAPITAL CORPORATION



CONSOLIDATED SCHEDULE OF
INVESTMENTS – (continued)

(unaudited)

March 31, 2019

(in thousands, except for shares and
units)



Derivative Instruments



Foreign currency forward contracts



|                                  |  | Notional Amount     |     |  | Notional Amount |   |     |              |  |                               |  | Unrealized Gain | 
|--------------------------------- |  | ------------------- | --- |  | --------------- | - | --- | ------------ |  | ----------------------------- |  | --------------- | 
|Description                       |  | to
    be Purchased |     |  | to
    be Sold  |   |     | Counterparty |  | Settlement Date               |  | (Loss)          | 
|Foreign currency forward contract |  | $                   | 137 |  |                 | £ | 106 |              |  | Bannockburn Global Forex, LLC |  | 4/1/2019        | 
|Foreign currency forward contract |  | $                   | 293 |  |                 | £ | 229 |              |  | Bannockburn Global Forex, LLC |  | 5/31/2019       | 
|Foreign currency forward contract |  | $                   | 135 |  |                 | £ | 106 |              |  | Bannockburn Global Forex, LLC |  | 7/1/2019        | 
|Foreign currency forward contract |  | $                   | 294 |  |                 | £ | 230 |              |  | Bannockburn Global Forex, LLC |  | 8/30/2019       | 
|Foreign currency forward contract |  | $                   | 134 |  |                 | £ | 105 |              |  | Bannockburn Global Forex, LLC |  | 10/1/2019       | 
|Foreign currency forward contract |  | $                   | 295 |  |                 | £ | 230 |              |  | Bannockburn Global Forex, LLC |  | 11/29/2019      | 
|Foreign currency forward contract |  | $                   | 133 |  |                 | £ | 104 |              |  | Bannockburn Global Forex, LLC |  | 1/2/2020        | 
|Foreign currency forward contract |  | $                   | 296 |  |                 | £ | 231 |              |  | Bannockburn Global Forex, LLC |  | 2/28/2020       | 
|Foreign currency forward contract |  | $                   | 132 |  |                 | £ | 103 |              |  | Bannockburn Global Forex, LLC |  | 4/1/2020        | 
|Foreign currency forward contract |  | $                   | 130 |  |                 | £ | 102 |              |  | Bannockburn Global Forex, LLC |  | 5/5/2020        | 
|Foreign currency forward contract |  | $                   | 296 |  |                 | £ | 230 |              |  | Bannockburn Global Forex, LLC |  | 5/29/2020       | 
|Foreign currency forward contract |  | $                   | 295 |  |                 | £ | 230 |              |  | Bannockburn Global Forex, LLC |  | 8/28/2020       | 
|Foreign currency forward contract |  | $                   | 294 |  |                 | £ | 229 |              |  | Bannockburn Global Forex, LLC |  | 11/30/2020      | 
|                                  |  |                     |     |  |                 |   |     |              |  |                               |  |                 | 










| | (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 the 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, 2019. Certain
investments are subject to a LIBOR or Prime interest rate floor, or rate cap.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | Except as otherwise noted, all of the Company’s
portfolio company investments, which as of March 31, 2019 represented 230.4% of the Company’s
net assets or 95.0% of the Company’s total assets, are subject to legal restrictions on sales.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d) | 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.)
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (e) | Percentages are based on net assets of $259,052 as of
March 31, 2019.
| | --- | ---------------------------------------------------------------------

| | (f) | All or a portion of this commitment was unfunded at March
31, 2019. 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) | 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, 2019, non-qualifying
assets totaled 16.10% of the Company’s total assets.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | The PIK portion of the interest rate for HFZ Capital
Group, LLC is structured as a fee paid upon the termination of the commitment. The fee currently accrues at 0.17% per annum.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (j) | This investment represents a note convertible to preferred
shares of the borrower.
| | --- | ----------------------------------------------------------------------------------

| | (k) | 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.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

| | (m) | This is a demand note with no stated maturity.
| | --- | ----------------------------------------------

| | (n) | This position was on non-accrual status as of March 31,
2019, 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.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

| | (p) | 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 3.44% 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 $9,258) 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.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



13







MONROE CAPITAL CORPORATION



CONSOLIDATED SCHEDULE OF
INVESTMENTS – (continued)

(unaudited)

March 31, 2019

(in thousands, except for shares and
units)



| | (s) | A portion of this loan (principal of $525) 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) | 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.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (y) | 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 0.56% per annum.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (z) | A portion of this loan (principal of $46) 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.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (aa) | A portion of this loan (principal of $1,015) 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.
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ab) | A portion of this loan (principal of $1,938) 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.
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ac) | 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.
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

n/a - not applicable



See Notes to Consolidated Financial Statements.



14







MONROE CAPITAL CORPORATION



CONSOLIDATED SCHEDULE
OF INVESTMENTS

December 31, 2018

(in thousands, except for shares and
units)



|Portfolio
    Company (a)                                                   |  | Spread
    
    Above  Index (b) |  | Interest
    
    Rate |                                                                |     | Maturity |            | Principal |  |        | Amortized
    
    Cost |  |   | Fair
    
    Value (c) |  |  | %
    of Net 
    Assets (d) |       
|--------------------------------------------------------------------------- |  | -------------------------------- |  | ---------------------- | -------------------------------------------------------------- | --- | -------- | ---------- | --------- |  | ------ | ----------------------- |  | - | ----------------------- |  |  | ---------------------------- | ------
|Non-Controlled/Non-Affiliate
    Company Investments                        |  |                                  |  |                        |                                                                |     |          |            |           |  |        |                         |  |   |                         |  |  |                              |       
|Senior
    Secured Loans                                                    |  |                                  |  |                        |                                                                |     |          |            |           |  |        |                         |  |   |                         |  |  |                              |       
|Automotive                                                                  |  |                                  |  |                        |                                                                |     |          |            |           |  |        |                         |  |   |                         |  |  |                              |       
|Hastings
    Manufacturing Company                                          |  | L+8.25%                          |  |                        | 10.76                                                          | %   |          | 4/24/2023  |           |  | 2,944  |                         |  | $ | 2,891                   |  |  | $                            | 2,883 
|Hastings
    Manufacturing Company (Delayed Draw) (e) (f)                   |  | L+8.25%                          |  |                        | 10.76                                                          | %   |          | 4/24/2023  |           |  | 899    |                         |  |   | —                       |  |  |                              | —     
|Magneto
                                         & Diesel Acquisition, Inc. |  | L+5.50%                          |  |                        | 8.01                                                           | %   |          | 12/18/2023 |           |  | 5,000  |                         |  |   | 4,913                   |  |  |                              | 4,913 
|Magneto
    & Diesel Acquisition, Inc. (Revolver) (e)                       |  | L+5.50%                          |  |                        | 8.01                                                           | %   |          | 12/18/2023 |           |  | 500    |                         |  |   | 83                      |  |  |                              | 82    
|                                                                            |  |                                  |  |                        |                                                                |     |          |            |           |  | 9,343  |                         |  |   | 7,887                   |  |  |                              | 7,878 
|Banking,
    Finance, Insurance & Real Estate                               |  |                                  |  |                        |                                                                |     |          |            |           |  |        |                         |  |   |                         |  |  |                              |       
|Echelon
    Funding I, LLC (Delayed Draw)(e) (f) (g)                        |  | L+7.50%                          |  |                        | 9.85                                                           | %   |          | 2/24/2021  |           |  | 15,750 |                         |  |   | 15,253                  |  |  |                              | 15,146
|HFZ
    Capital Group, LLC (g)                                              |  | L+10.17%                         |  |                        | 12.39%
                                         Cash/0.17% PIK | (h) |          | 10/21/2019 |           |  | 18,000 |                         |  |   | 17,819                  |  |  |                              | 18,009
|HFZ
    Member RB Portfolio LLC (Delayed Draw)(e) (f) (g)                   |  | L+12.00%                         |  |                        | 14.54                                                          | %   |          | 10/29/2021 |           |  | 9,000  |                         |  |   | 3,708                   |  |  |                              | 3,706 
|Liftforward
    SPV II, LLC (e) (g)                                         |  | L+10.75%                         |  |                        | 13.27                                                          | %   |          | 11/10/2020 |           |  | 10,000 |                         |  |   | 4,088                   |  |  |                              | 4,132 
|PKS
    Holdings, LLC (g)                                                   |  | L+10.00%                         |  |                        | 12.35                                                          | %   |          | 11/30/2022 |           |  | 1,755  |                         |  |   | 1,605                   |  |  |                              | 1,675 
|PKS
    Holdings, LLC (Revolver) (e) (g)                                    |  | L+10.00%                         |  |                        | 12.35                                                          | %   |          | 11/30/2022 |           |  | 80     |                         |  |   | —                       |  |  |                              | —     
|                                                                            |  |                                  |  |                        |                                                                |     |          |            |           |  | 54,585 |                         |  |   | 42,473                  |  |  |                              | 42,668
|Beverage,
    Food & Tobacco                                                |  |                                  |  |                        |                                                                |     |          |            |           |  |        |                         |  |   |                         |  |  |                              |       
|California
    Pizza Kitchen, Inc.                                          |  | L+6.00%                          |  |                        | 8.53                                                           | %   |          | 8/23/2022  |           |  | 6,843  |                         |  |   | 6,793                   |  |  |                              | 6,654 
|Toojay's
    Management LLC                                                 |  | L+5.50%                          |  |                        | 8.01                                                           | %   |          | 10/26/2022 |           |  | 3,500  |                         |  |   | 3,433                   |  |  |                              | 3,497 
|Toojay's
    Management LLC (Delayed Draw) (e) (f)                          |  | L+5.50%                          |  |                        | 8.01                                                           | %   |          | 10/26/2022 |           |  | 477    |                         |  |   | —                       |  |  |                              | —     
|Toojay's
    Management LLC (Revolver) (e)                                  |  | L+5.50%                          |  |                        | 8.01                                                           | %   |          | 10/26/2022 |           |  | 159    |                         |  |   | 79                      |  |  |                              | 79    
|                                                                            |  |                                  |  |                        |                                                                |     |          |            |           |  | 10,979 |                         |  |   | 10,305                  |  |  |                              | 10,230
|Chemicals,
    Plastics & Rubber                                            |  |                                  |  |                        |                                                                |     |          |            |           |  |        |                         |  |   |                         |  |  |                              |       
|Midwest
    Composite Technologies, LLC                                     |  | L+6.75%                          |  |                        | 9.26                                                           | %   |          | 8/31/2023  |           |  | 898    |                         |  |   | 881                     |  |  |                              | 907   
|Midwest
    Composite Technologies, LLC (Delayed Draw) (e) (f)              |  | L+6.75%                          |  |                        | 9.26                                                           | %   |          | 8/31/2023  |           |  | 600    |                         |  |   | —                       |  |  |                              | —     
|Midwest
    Composite Technologies, LLC (Revolver) (e)                      |  | L+6.75%                          |  |                        | 9.26                                                           | %   |          | 8/31/2023  |           |  | 90     |                         |  |   | —                       |  |  |                              | —     
|Valudor
    Products LLC                                                    |  | L+7.50%                          |  |                        | 10.01                                                          | %   |          | 6/19/2023  |           |  | 1,604  |                         |  |   | 1,575                   |  |  |                              | 1,600 
|Valudor
    Products LLC (i)                                                |  | L+7.50%                          |  |                        | 10.01                                                          | %   |          | 6/19/2023  |           |  | 211    |                         |  |   | 205                     |  |  |                              | 210   
|Valudor
    Products LLC (Revolver) (e)                                     |  | L+9.50%                          |  |                        | 12.01                                                          | %   |          | 6/19/2023  |           |  | 818    |                         |  |   | 606                     |  |  |                              | 607   
|                                                                            |  |                                  |  |                        |                                                                |     |          |            |           |  | 4,221  |                         |  |   | 3,267                   |  |  |                              | 3,324 



15









MONROE CAPITAL CORPORATION



CONSOLIDATED SCHEDULE OF
INVESTMENTS – (continued)

December 31, 2018

(in thousands, except for shares and
units)



|Portfolio
    Company (a)                                               |  | Spread
    
    Above  Index (b) |  | Interest
    
    Rate |                                                                                                                                                                                    |      | Maturity |            | Principal |  |        | Amortized
    
    Cost |  |   | Fair
    
    Value (c) |  |  | %
    of Net 
    Assets (d) |       
|----------------------------------------------------------------------- |  | -------------------------------- |  | ---------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---- | -------- | ---------- | --------- |  | ------ | ----------------------- |  | - | ----------------------- |  |  | ---------------------------- | ------
|Construction
    & Building                                             |  |                                  |  |                        |                                                                                                                                                                                    |      |          |            |           |  |        |                         |  |   |                         |  |  |                              |       
|Cali
    Bamboo, LLC                                                    |  | L+6.25%                          |  |                        | 8.76                                                                                                                                                                               | %    |          | 7/10/2020  |           |  | 5,264  |                         |  | $ | 5,231                   |  |  | $                            | 5,264 
|Cali
    Bamboo, LLC (Revolver) (e)                                     |  | L+6.25%                          |  |                        | 8.76                                                                                                                                                                               | %    |          | 7/10/2020  |           |  | 2,165  |                         |  |   | 1,689                   |  |  |                              | 1,689 
|Construction
    Supply Acquisition, LLC                                |  | L+6.00%                          |  |                        | 8.62                                                                                                                                                                               | %    |          | 6/30/2023  |           |  | 4,791  |                         |  |   | 4,767                   |  |  |                              | 4,779 
|Cornerstone
    Detention Products, Inc. (j)                            |  | L+11.83%                         |  |                        | 11.01%
                                         Cash/3.33% PIK                                                                                                                     | (k)  |          | 4/8/2019   |           |  | 3,350  |                         |  |   | 3,346                   |  |  |                              | 3,350 
|Cornerstone
    Detention Products, Inc. (Revolver) (e)                 |  | L+8.50%                          |  |                        | 11.01                                                                                                                                                                              | %    |          | 4/8/2019   |           |  | 1,000  |                         |  |   | 200                     |  |  |                              | 200   
|Inland
                                         Pipe Rehabilitation LLC |  | L+5.50%                          |  |                        | 8.29                                                                                                                                                                               | %    |          | 12/26/2024 |           |  | 12,500 |                         |  |   | 12,251                  |  |  |                              | 12,250
|Inland
    Pipe Rehabilitation LLC (Revolver) (e)                       |  | L+5.50%                          |  |                        | 7.87                                                                                                                                                                               | %    |          | 12/26/2024 |           |  | 4,118  |                         |  |   | 2,305                   |  |  |                              | 2,259 
|                                                                        |  |                                  |  |                        |                                                                                                                                                                                    |      |          |            |           |  | 33,188 |                         |  |   | 29,789                  |  |  |                              | 29,791
|Consumer
    Goods: Durable                                             |  |                                  |  |                        |                                                                                                                                                                                    |      |          |            |           |  |        |                         |  |   |                         |  |  |                              |       
|Nova
                                         Wildcat Amerock, LLC      |  | L+5.75%                          |  |                        | 8.26                                                                                                                                                                               | %    |          | 10/12/2023 |           |  | 9,500  |                         |  |   | 9,317                   |  |  |                              | 9,372 
|Nova
    Wildcat Amerock, LLC (Revolver) (e)                            |  | L+5.75%                          |  |                        | 8.26                                                                                                                                                                               | %    |          | 10/12/2023 |           |  | 931    |                         |  |   | 292                     |  |  |                              | 288   
|Parterre
    Flooring & Surface Systems, LLC (l)                        |  | L+7.25%                          |  |                        | 9.76                                                                                                                                                                               | %    |          | 8/22/2022  |           |  | 11,250 |                         |  |   | 11,076                  |  |  |                              | 10,879
|Parterre
    Flooring & Surface Systems, LLC (Revolver)  (e)            |  | L+7.25%                          |  |                        | 9.76                                                                                                                                                                               | %    |          | 8/22/2022  |           |  | 2,400  |                         |  |   | 696                     |  |  |                              | 671   
|                                                                        |  |                                  |  |                        |                                                                                                                                                                                    |      |          |            |           |  | 24,081 |                         |  |   | 21,381                  |  |  |                              | 21,210
|Energy:
    Oil & Gas                                                   |  |                                  |  |                        |                                                                                                                                                                                    |      |          |            |           |  |        |                         |  |   |                         |  |  |                              |       
|Landpoint,
    LLC                                                      |  | L+12.75%                         |  |                        | 13.01%
                                         Cash/
                                                                          2.25%
                                         PIK | (m)  |          | 12/20/2019 |           |  | 2,256  |                         |  |   | 2,253                   |  |  |                              | 2,244 
|Landpoint,
    LLC (Revolver) (e)                                       |  | L+10.50%                         |  |                        | 13.01                                                                                                                                                                              | %    |          | 12/20/2019 |           |  | 313    |                         |  |   | 274                     |  |  |                              | 272   
|                                                                        |  |                                  |  |                        |                                                                                                                                                                                    |      |          |            |           |  | 2,569  |                         |  |   | 2,527                   |  |  |                              | 2,516 
|Environmental
    Industries                                            |  |                                  |  |                        |                                                                                                                                                                                    |      |          |            |           |  |        |                         |  |   |                         |  |  |                              |       
|StormTrap,
    LLC                                                      |  | L+5.50%                          |  |                        | 8.01                                                                                                                                                                               | %    |          | 12/8/2023  |           |  | 8,000  |                         |  |   | 7,861                   |  |  |                              | 7,860 
|StormTrap,
    LLC (Revolver) (e)                                       |  | L+5.50%                          |  |                        | 8.01                                                                                                                                                                               | %    |          | 12/8/2023  |           |  | 432    |                         |  |   | —                       |  |  |                              | —     
|Synergy
    Environmental Corporation (l)                               |  | L+6.50%                          |  |                        | 9.01                                                                                                                                                                               | %    |          | 4/29/2021  |           |  | 2,932  |                         |  |   | 2,893                   |  |  |                              | 2,919 
|Synergy
    Environmental Corporation (l)                               |  | L+6.50%                          |  |                        | 9.01                                                                                                                                                                               | %    |          | 4/29/2021  |           |  | 490    |                         |  |   | 484                     |  |  |                              | 488   
|Synergy
    Environmental Corporation (Delayed Draw) (e) (f)            |  | L+6.50%                          |  |                        | 9.01                                                                                                                                                                               | %    |          | 4/29/2021  |           |  | 1,320  |                         |  |   | 837                     |  |  |                              | 834   
|Synergy
    Environmental Corporation (Revolver) (e)                    |  | L+6.50%                          |  |                        | 9.01                                                                                                                                                                               | %    |          | 4/29/2021  |           |  | 671    |                         |  |   | 94                      |  |  |                              | 94    
|                                                                        |  |                                  |  |                        |                                                                                                                                                                                    |      |          |            |           |  | 13,845 |                         |  |   | 12,169                  |  |  |                              | 12,195
|Healthcare
    & Pharmaceuticals                                        |  |                                  |  |                        |                                                                                                                                                                                    |      |          |            |           |  |        |                         |  |   |                         |  |  |                              |       
|American
    Optics Holdco, Inc. (g) (n)                                |  | L+8.00%                          |  |                        | 10.51                                                                                                                                                                              | %    |          | 9/13/2022  |           |  | 4,076  |                         |  |   | 4,012                   |  |  |                              | 4,127 
|American
    Optics Holdco, Inc. (g) (n)                                |  | L+8.00%                          |  |                        | 10.51                                                                                                                                                                              | %    |          | 9/13/2022  |           |  | 750    |                         |  |   | 738                     |  |  |                              | 759   
|American
    Optics Holdco, Inc. (Revolver) (e) (g) (n)                 |  | L+8.00%                          |  |                        | 10.51                                                                                                                                                                              | %    |          | 9/13/2022  |           |  | 440    |                         |  |   | 242                     |  |  |                              | 242   
|American
    Optics Holdco, Inc. (Revolver) (e) (g) (n)                 |  | L+8.00%                          |  |                        | 10.51                                                                                                                                                                              | %    |          | 9/13/2022  |           |  | 440    |                         |  |   | 165                     |  |  |                              | 165   
|Familia
    Dental Group Holdings, LLC (l)                              |  | L+8.00%                          |  |                        | 10.51                                                                                                                                                                              | %    |          | 4/8/2021   |           |  | 5,053  |                         |  |   | 5,011                   |  |  |                              | 5,083 
|Familia
    Dental Group Holdings, LLC                                  |  | L+8.00%                          |  |                        | 10.51                                                                                                                                                                              | %    |          | 4/8/2021   |           |  | 486    |                         |  |   | 486                     |  |  |                              | 489   
|Familia
    Dental Group Holdings, LLC (Revolver) (e)                   |  | L+8.00%                          |  |                        | 10.51                                                                                                                                                                              | %    |          | 4/8/2021   |           |  | 573    |                         |  |   | 229                     |  |  |                              | 229   
|Rockdale
    Blackhawk, LLC (DIP Facility)                              |  | n/a                              |  |                        | 15.10                                                                                                                                                                              | %    |          | n/a        | (o)       |  | 226    |                         |  |   | 226                     |  |  |                              | 226   
|Rockdale
    Blackhawk, LLC (DIP Facility)                              |  | n/a                              |  |                        | 15.10                                                                                                                                                                              | %    |          | n/a        | (o)       |  | 8,877  |                         |  |   | 8,877                   |  |  |                              | 8,877 
|Rockdale
    Blackhawk, LLC                                             |  | L+13.00%                         |  |                        | 15.51                                                                                                                                                                              | %(p) |          | 3/31/2020  |           |  | 10,923 |                         |  |   | 10,465                  |  |  |                              | 8,667 
|                                                                        |  |                                  |  |                        |                                                                                                                                                                                    |      |          |            |           |  | 31,844 |                         |  |   | 30,451                  |  |  |                              | 28,864





16







MONROE CAPITAL CORPORATION



CONSOLIDATED SCHEDULE OF
INVESTMENTS – (continued)

December 31, 2018

(in thousands, except for shares and
units)



|Portfolio
    Company (a)                                       |  | Spread
    
    Above  Index (b) |  | Interest
    
    Rate |                                                                                                         |     | Maturity |            | Principal |  |        | Amortized
    
    Cost |  |   | Fair
    
    Value (c) |  |  | %
    of Net 
    Assets (d) |       
|--------------------------------------------------------------- |  | -------------------------------- |  | ---------------------- | ------------------------------------------------------------------------------------------------------- | --- | -------- | ---------- | --------- |  | ------ | ----------------------- |  | - | ----------------------- |  |  | ---------------------------- | ------
|High
    Tech Industries                                        |  |                                  |  |                        |                                                                                                         |     |          |            |           |  |        |                         |  |   |                         |  |  |                              |       
|Corbett
    Technology Solutions, Inc. (l)                      |  | L+7.00%                          |  |                        | 9.51                                                                                                    | %   |          | 11/8/2021  |           |  | 4,917  |                         |  | $ | 4,868                   |  |  | $                            | 4,956 
|Corbett
    Technology Solutions, Inc. (Revolver) (e)           |  | L+7.00%                          |  |                        | 9.51                                                                                                    | %   |          | 11/8/2021  |           |  | 867    |                         |  |   | —                       |  |  |                              | —     
|Energy
    Services Group, LLC                                  |  | L+8.42%                          |  |                        | 10.94                                                                                                   | %   |          | 5/4/2022   |           |  | 4,393  |                         |  |   | 4,349                   |  |  |                              | 4,404 
|Energy
    Services Group, LLC (g) (q)                          |  | L+8.42%                          |  |                        | 9.42                                                                                                    | %   |          | 5/4/2022   |           |  | 5,046  |                         |  |   | 5,186                   |  |  |                              | 5,033 
|Energy
    Services Group, LLC                                  |  | L+8.42%                          |  |                        | 10.94                                                                                                   | %   |          | 5/4/2022   |           |  | 1,250  |                         |  |   | 1,235                   |  |  |                              | 1,253 
|Host
    Analytics, Inc.                                        |  | L+6.00%                          |  |                        | 8.51                                                                                                    | %   |          | 12/28/2023 |           |  | 9,500  |                         |  |   | 9,310                   |  |  |                              | 9,310 
|Host
    Analytics, Inc. (Revolver) (e)                         |  | L+6.00%                          |  |                        | 8.51                                                                                                    | %   |          | 12/28/2023 |           |  | 442    |                         |  |   | —                       |  |  |                              | —     
|Newforma,
    Inc. (l)                                          |  | L+5.50%                          |  |                        | 8.31                                                                                                    | %   |          | 6/30/2022  |           |  | 14,813 |                         |  |   | 14,649                  |  |  |                              | 14,961
|Newforma,
    Inc. (Revolver) (e)                               |  | L+5.50%                          |  |                        | 8.31                                                                                                    | %   |          | 6/30/2022  |           |  | 1,250  |                         |  |   | —                       |  |  |                              | —     
|Prototek
    Sheetmetal Fabrication, LLC                        |  | L+7.00%                          |  |                        | 9.51                                                                                                    | %   |          | 12/12/2022 |           |  | 3,465  |                         |  |   | 3,408                   |  |  |                              | 3,451 
|Prototek
    Sheetmetal Fabrication, LLC (Delayed Draw) (e) (f) |  | L+7.00%                          |  |                        | 9.51                                                                                                    | %   |          | 12/12/2022 |           |  | 2,329  |                         |  |   | 813                     |  |  |                              | 809   
|Prototek
    Sheetmetal Fabrication, LLC (Revolver) (e)         |  | L+7.00%                          |  |                        | 9.51                                                                                                    | %   |          | 12/12/2022 |           |  | 233    |                         |  |   | —                       |  |  |                              | —     
|RPL
    Bidco Limited  (g) (n) (q)                              |  | L+7.50%                          |  |                        | 8.39                                                                                                    | %   |          | 11/9/2023  |           |  | 13,774 |                         |  |   | 14,122                  |  |  |                              | 13,912
|RPL
    Bidco Limited (Delayed Draw) (e) (f) (g) (n) (q)        |  | L+7.50%                          |  |                        | 8.39                                                                                                    | %   |          | 11/9/2023  |           |  | 2,041  |                         |  |   | —                       |  |  |                              | —     
|RPL
    Bidco Limited (Revolver) (e) (g) (n) (q)                |  | L+7.50%                          |  |                        | 8.39                                                                                                    | %   |          | 11/9/2023  |           |  | 510    |                         |  |   | —                       |  |  |                              | —     
|WillowTree,
    LLC                                             |  | L+5.50%                          |  |                        | 8.01                                                                                                    | %   |          | 10/9/2023  |           |  | 7,980  |                         |  |   | 7,846                   |  |  |                              | 7,972 
|WillowTree,
    LLC (Revolver) (e)                              |  | L+5.50%                          |  |                        | 8.01                                                                                                    | %   |          | 10/9/2023  |           |  | 1,000  |                         |  |   | 480                     |  |  |                              | 479   
|                                                                |  |                                  |  |                        |                                                                                                         |     |          |            |           |  | 73,810 |                         |  |   | 66,266                  |  |  |                              | 66,540
|Hotels,
    Gaming & Leisure                                    |  |                                  |  |                        |                                                                                                         |     |          |            |           |  |        |                         |  |   |                         |  |  |                              |       
|TRG,
    LLC                                                    |  | L+12.79%                         |  |                        | 9.85%
                                         Cash/
                                         5.29% PIK | (r) |          | 3/31/2021  |           |  | 17,144 |                         |  |   | 17,086                  |  |  |                              | 18,636
|TRG,
    LLC (CapEx)                                            |  | L+9.50%                          |  |                        | 9.85%
                                         Cash/
                                         2.00% PIK |     |          | 3/31/2021  |           |  | 1,367  |                         |  |   | 1,363                   |  |  |                              | 1,486 
|TRG,
    LLC (Revolver) (e)                                     |  | L+9.50%                          |  |                        | 11.85                                                                                                   | %   |          | 3/31/2021  |           |  | 262    |                         |  |   | 131                     |  |  |                              | 142   
|                                                                |  |                                  |  |                        |                                                                                                         |     |          |            |           |  | 18,773 |                         |  |   | 18,580                  |  |  |                              | 20,264
|Media:
    Advertising, Printing & Publishing                   |  |                                  |  |                        |                                                                                                         |     |          |            |           |  |        |                         |  |   |                         |  |  |                              |       
|AdTheorent,
    Inc.                                            |  | L+8.50%                          |  |                        | 10.85                                                                                                   | %   |          | 12/22/2021 |           |  | 4,092  |                         |  |   | 4,039                   |  |  |                              | 4,098 
|Destination
    Media, Inc. (l)                                 |  | L+6.50%                          |  |                        | 9.01                                                                                                    | %   |          | 4/7/2022   |           |  | 7,366  |                         |  |   | 7,289                   |  |  |                              | 7,421 
|Destination
    Media, Inc. (Revolver) (e)                      |  | L+6.50%                          |  |                        | 9.01                                                                                                    | %   |          | 4/7/2022   |           |  | 542    |                         |  |   | —                       |  |  |                              | —     
|MC
    Sign Lessor Corp.                                        |  | L+7.00%                          |  |                        | 9.35                                                                                                    | %   |          | 12/22/2022 |           |  | 9,925  |                         |  |   | 9,760                   |  |  |                              | 10,024
|MC
    Sign Lessor Corp. (Delayed Draw) (e) (f)                 |  | L+7.00%                          |  |                        | 9.35                                                                                                    | %   |          | 12/22/2022 |           |  | 2,083  |                         |  |   | —                       |  |  |                              | —     
|MC
    Sign Lessor Corp. (Revolver) (e)                         |  | L+7.00%                          |  |                        | 9.35                                                                                                    | %   |          | 12/22/2022 |           |  | 625    |                         |  |   | —                       |  |  |                              | —     
|                                                                |  |                                  |  |                        |                                                                                                         |     |          |            |           |  | 24,633 |                         |  |   | 21,088                  |  |  |                              | 21,543



17







MONROE CAPITAL CORPORATION



CONSOLIDATED SCHEDULE OF
INVESTMENTS – (continued)

December 31, 2018

(in thousands, except for shares and
units)





|Portfolio
    Company (a)                                      |  | SpreadAboveIndex
    (b) |  | InterestRate |                                                                |   | Maturity |            | Principal |  |        | AmortizedCost |  |   | FairValue (c) |  |  | %
    of NetAssets (d) |       
|-------------------------------------------------------------- |  | ------------------------ |  | ------------ | -------------------------------------------------------------- | - | -------- | ---------- | --------- |  | ------ | ------------- |  | - | ------------- |  |  | ---------------------- | ------
|Retail                                                         |  |                          |  |              |                                                                |   |          |            |           |  |        |               |  |   |               |  |  |                        |       
|Bluestem
    Brands, Inc.                                      |  | L+7.50%                  |  |              | 10.03                                                          | % |          | 11/6/2020  |           |  | 2,436  |               |  | $ | 2,426         |  |  | $                      | 1,575 
|Forman
    Mills, Inc. (l)                                     |  | L+9.50%                  |  |              | 10.01%
                                         Cash/2.00% PIK |   |          | 10/4/2021  |           |  | 8,362  |               |  |   | 8,261         |  |  |                        | 8,149 
|LuLu's
    Fashion Lounge, LLC                                 |  | L+7.00%                  |  |              | 9.52                                                           | % |          | 8/29/2022  |           |  | 4,531  |               |  |   | 4,426         |  |  |                        | 4,606 
|The
    Worth Collection, Ltd. (l)                             |  | L+8.50%                  |  |              | 11.01                                                          | % |          | 9/29/2021  |           |  | 10,588 |               |  |   | 10,459        |  |  |                        | 8,639 
|Yandy
    Holding, LLC                                         |  | L+11.00%                 |  |              | 13.51                                                          | % |          | 9/30/2019  |           |  | 3,643  |               |  |   | 3,633         |  |  |                        | 3,632 
|Yandy
    Holding, LLC (Revolver) (e)                          |  | L+11.00%                 |  |              | 13.51                                                          | % |          | 9/30/2019  |           |  | 907    |               |  |   | —             |  |  |                        | —     
|                                                               |  |                          |  |              |                                                                |   |          |            |           |  | 30,467 |               |  |   | 29,205        |  |  |                        | 26,601
|Services:
    Business                                         |  |                          |  |              |                                                                |   |          |            |           |  |        |               |  |   |               |  |  |                        |       
|APCO
    Worldwide, Inc.                                       |  | L+8.00%                  |  |              | 10.51                                                          | % |          | 6/30/2022  |           |  | 4,875  |               |  |   | 4,802         |  |  |                        | 4,790 
|Atlas
    Sign Industries of FLA, LLC (l)                      |  | L+10.50%                 |  |              | 13.01                                                          | % |          | 5/15/2023  |           |  | 3,500  |               |  |   | 3,305         |  |  |                        | 3,336 
|Burroughs,
    Inc. (l)                                        |  | L+7.50%                  |  |              | 9.85                                                           | % |          | 12/22/2022 |           |  | 5,888  |               |  |   | 5,814         |  |  |                        | 5,767 
|Burroughs,
    Inc. (Revolver) (e)                             |  | L+7.50%                  |  |              | 9.85                                                           | % |          | 12/22/2022 |           |  | 1,215  |               |  |   | 975           |  |  |                        | 975   
|First
    Call Resolution, LLC (l)                             |  | L+7.00%                  |  |              | 9.35                                                           | % |          | 9/22/2022  |           |  | 4,097  |               |  |   | 4,042         |  |  |                        | 4,101 
|First
    Call Resolution, LLC                                 |  | L+7.00%                  |  |              | 9.35                                                           | % |          | 9/22/2022  |           |  | 10,000 |               |  |   | 9,842         |  |  |                        | 10,010
|IT
                                         Global Holding LLC |  | L+7.00%                  |  |              | 9.51                                                           | % |          | 11/10/2023 |           |  | 10,500 |               |  |   | 10,294        |  |  |                        | 10,421
|IT
    Global Holding LLC (Revolver) (e)                       |  | L+7.00%                  |  |              | 9.51                                                           | % |          | 11/10/2023 |           |  | 875    |               |  |   | 263           |  |  |                        | 263   
|Madison
    Logic, Inc. (l)                                    |  | L+8.00%                  |  |              | 10.51                                                          | % |          | 11/30/2021 |           |  | 9,933  |               |  |   | 9,805         |  |  |                        | 9,933 
|Madison
    Logic, Inc. (Revolver) (e)                         |  | L+8.00%                  |  |              | 10.51                                                          | % |          | 11/30/2021 |           |  | 988    |               |  |   | —             |  |  |                        | —     
|RedZone
    Robotics, Inc.                                     |  | L+6.75%                  |  |              | 9.26                                                           | % |          | 6/5/2023   |           |  | 946    |               |  |   | 929           |  |  |                        | 868   
|RedZone
    Robotics, Inc. (Revolver) (e)                      |  | L+6.75%                  |  |              | 9.26                                                           | % |          | 6/5/2023   |           |  | 158    |               |  |   | —             |  |  |                        | —     
|TRP
    Construction Group, LLC (l)                            |  | L+6.50%                  |  |              | 9.01                                                           | % |          | 10/5/2022  |           |  | 7,960  |               |  |   | 7,834         |  |  |                        | 7,920 
|TRP
    Construction Group, LLC (Delayed Draw) (e) (f)         |  | L+6.50%                  |  |              | 9.01                                                           | % |          | 10/5/2022  |           |  | 7,000  |               |  |   | 5,684         |  |  |                        | 5,656 
|TRP
    Construction Group, LLC (Revolver) (e)                 |  | L+6.50%                  |  |              | 9.01                                                           | % |          | 10/5/2022  |           |  | 2,133  |               |  |   | —             |  |  |                        | —     
|VPS
                                         Holdings, LLC     |  | L+7.00%                  |  |              | 9.51                                                           | % |          | 10/4/2024  |           |  | 5,000  |               |  |   | 4,902         |  |  |                        | 4,960 
|VPS
    Holdings, LLC (Delayed Draw) (e) (f)                   |  | L+7.00%                  |  |              | 9.51                                                           | % |          | 10/4/2024  |           |  | 4,000  |               |  |   | —             |  |  |                        | —     
|VPS
    Holdings, LLC (Revolver) (e)                           |  | L+7.00%                  |  |              | 9.51                                                           | % |          | 10/4/2024  |           |  | 1,000  |               |  |   | 100           |  |  |                        | 100   
|                                                               |  |                          |  |              |                                                                |   |          |            |           |  | 80,068 |               |  |   | 68,591        |  |  |                        | 69,100
|Services:
    Consumer                                         |  |                          |  |              |                                                                |   |          |            |           |  |        |               |  |   |               |  |  |                        |       
|Mammoth
                                         Holdings, LLC |  | L+6.00%                  |  |              | 8.44                                                           | % |          | 10/16/2023 |           |  | 2,000  |               |  |   | 1,961         |  |  |                        | 1,997 
|Mammoth
    Holdings, LLC (Delayed Draw) (e) (f)               |  | L+6.00%                  |  |              | 8.44                                                           | % |          | 10/16/2023 |           |  | 4,167  |               |  |   | —             |  |  |                        | —     
|Mammoth
    Holdings, LLC (Revolver) (e)                       |  | L+6.00%                  |  |              | 8.44                                                           | % |          | 10/16/2023 |           |  | 500    |               |  |   | —             |  |  |                        | —     
|PeopleConnect
    Intermediate, LLC                            |  | L+6.50%                  |  |              | 9.30                                                           | % |          | 7/1/2020   |           |  | 4,272  |               |  |   | 4,239         |  |  |                        | 4,253 
|PeopleConnect
    Intermediate, LLC                            |  | L+12.50%                 |  |              | 15.30                                                          | % |          | 7/1/2020   |           |  | 4,636  |               |  |   | 4,597         |  |  |                        | 4,603 
|PeopleConnect
    Intermediate, LLC (Revolver) (e)             |  | L+9.50%                  |  |              | 12.30                                                          | % |          | 7/1/2020   |           |  | 236    |               |  |   | 118           |  |  |                        | 118   
|                                                               |  |                          |  |              |                                                                |   |          |            |           |  | 15,811 |               |  |   | 10,915        |  |  |                        | 10,971





18







MONROE CAPITAL CORPORATION



CONSOLIDATED SCHEDULE OF
INVESTMENTS – (continued)

December 31, 2018

(in thousands, except for shares and
units)







|Portfolio
    Company (a)                                       |  | Spread
    
    Above  Index (b) |        | Interest
    
    Rate |                                                                                                           |   | Maturity |            | Principal |  |        | Amortized
    
    Cost |         |   | Fair
    
    Value (c) |   |       | %
    of Net 
    Assets (d) |       
|--------------------------------------------------------------- |  | -------------------------------- | ------ | ---------------------- | --------------------------------------------------------------------------------------------------------- | - | -------- | ---------- | --------- |  | ------ | ----------------------- | ------- | - | ----------------------- | - | ----- | ---------------------------- | ------
|Wholesale                                                       |  |                                  |        |                        |                                                                                                           |   |          |            |           |  |        |                         |         |   |                         |   |       |                              |       
|Mid-West
    Wholesale Hardware Co. (l)                         |  | L+8.00%                          |        |                        | 10.51                                                                                                     | % |          | 2/9/2022   |           |  | 16,402 |                         |         | $ | 16,173                  |   |       | $                            | 16,312
|Mid-West
    Wholesale Hardware Co. (Revolver) (e)              |  | L+8.00%                          |        |                        | 10.51                                                                                                     | % |          | 2/9/2022   |           |  | 4,421  |                         |         |   | 3,789                   |   |       |                              | 3,767 
|Nearly
    Natural, Inc. (l)                                    |  | L+7.00%                          |        |                        | 9.81                                                                                                      | % |          | 12/15/2022 |           |  | 6,930  |                         |         |   | 6,816                   |   |       |                              | 6,906 
|Nearly
    Natural, Inc. (Revolver) (e)                         |  | L+7.00%                          |        |                        | 9.81                                                                                                      | % |          | 12/15/2022 |           |  | 1,522  |                         |         |   | 609                     |   |       |                              | 609   
|                                                                |  |                                  |        |                        |                                                                                                           |   |          |            |           |  | 29,275 |                         |         |   | 27,387                  |   |       |                              | 27,594
|Total
    Non-Controlled/Non-Affiliate Senior Secured Loans     |  |                                  |        |                        | 457,492                                                                                                   |   |          |            | 402,281   |  |        |                         | 401,289 |   |                         |   | 155.0 | %                           
|                                                                |  |                                  |        |                        |                                                                                                           |   |          |            |           |  |        |                         |         |   |                         |   |       |                              |       
|Unitranche
    Secured Loans (s)                                |  |                                  |        |                        |                                                                                                           |   |          |            |           |  |        |                         |         |   |                         |   |       |                              |       
|Chemicals,
    Plastics & Rubber                                |  |                                  |        |                        |                                                                                                           |   |          |            |           |  |        |                         |         |   |                         |   |       |                              |       
|MFG
    Chemical, LLC (l)                                       |  | L+6.00%                          |        |                        | 8.51                                                                                                      | % |          | 6/23/2022  |           |  | 10,477 |                         |         |   | 10,359                  |   |       |                              | 10,319
|MFG
    Chemical, LLC                                           |  | L+6.00%                          |        |                        | 8.51                                                                                                      | % |          | 6/23/2022  |           |  | 1,132  |                         |         |   | 1,132                   |   |       |                              | 1,115 
|                                                                |  |                                  |        |                        |                                                                                                           |   |          |            |           |  | 11,609 |                         |         |   | 11,491                  |   |       |                              | 11,434
|Consumer
    Goods: Durable                                     |  |                                  |        |                        |                                                                                                           |   |          |            |           |  |        |                         |         |   |                         |   |       |                              |       
|RugsUSA,
    LLC                                                |  | L+6.50%                          |        |                        | 9.31                                                                                                      | % |          | 4/28/2023  |           |  | 4,000  |                         |         |   | 3,964                   |   |       |                              | 4,002 
|                                                                |  |                                  |        |                        |                                                                                                           |   |          |            |           |  | 4,000  |                         |         |   | 3,964                   |   |       |                              | 4,002 
|Healthcare
    & Pharmaceuticals                                |  |                                  |        |                        |                                                                                                           |   |          |            |           |  |        |                         |         |   |                         |   |       |                              |       
|Collaborative
    Neuroscience Network, LLC                     |  | L+11.50%                         |        |                        | 14.01                                                                                                     | % |          | n/a        | (o)       |  | 6,120  |                         |         |   | 6,096                   |   |       |                              | 5,894 
|Collaborative
    Neuroscience Network, LLC                     |  | n/a                              |        |                        | 12.00%
                                         Cash/ 
                                         3.00% PIK |   |          | n/a        | (o)       |  | 304    |                         |         |   | 304                     |   |       |                              | 304   
|Collaborative
    Neuroscience Network, LLC (Revolver)          |  | L+10.00%                         |        |                        | 12.51                                                                                                     | % |          | n/a        | (o)       |  | 200    |                         |         |   | 193                     |   |       |                              | 200   
|Priority
    Ambulance, LLC (t)                                 |  | L+6.50%                          |        |                        | 9.31                                                                                                      | % |          | 4/12/2022  |           |  | 10,015 |                         |         |   | 10,015                  |   |       |                              | 9,905 
|Priority
    Ambulance, LLC (u)                                 |  | L+6.50%                          |        |                        | 9.31                                                                                                      | % |          | 4/12/2022  |           |  | 1,253  |                         |         |   | 1,226                   |   |       |                              | 1,240 
|Priority
    Ambulance, LLC (Delayed Draw) (e) (f)              |  | L+6.50%                          |        |                        | 9.31                                                                                                      | % |          | 4/12/2022  |           |  | 246    |                         |         |   | —                       |   |       |                              | —     
|Priority
    Ambulance, LLC (Delayed Draw) (e) (f)              |  | L+6.50%                          |        |                        | 9.31                                                                                                      | % |          | 4/12/2022  |           |  | 2,485  |                         |         |   | —                       |   |       |                              | —     
|                                                                |  |                                  |        |                        |                                                                                                           |   |          |            |           |  | 20,623 |                         |         |   | 17,834                  |   |       |                              | 17,543
|High
    Tech Industries                                        |  |                                  |        |                        |                                                                                                           |   |          |            |           |  |        |                         |         |   |                         |   |       |                              |       
|Mnine
    Holdings, Inc.                                        |  | L+6.75%                          |        |                        | 9.31                                                                                                      | % |          | 11/2/2023  |           |  | 8,000  |                         |         |   | 7,843                   |   |       |                              | 7,952 
|                                                                |  |                                  |        |                        |                                                                                                           |   |          |            |           |  | 8,000  |                         |         |   | 7,843                   |   |       |                              | 7,952 
|Total
    Non-Controlled/Non-Affiliate Unitranche Secured Loans |  |                                  | 44,232 |                        |                                                                                                           |   | 41,132   |            |           |  | 40,931 |                         |         |   | 15.8                    | %
|                                                                |  |                                  |        |                        |                                                                                                           |   |          |            |           |  |        |                         |         |   |                         |   |       |                              |       
|Junior
    Secured Loans                                        |  |                                  |        |                        |                                                                                                           |   |          |            |           |  |        |                         |         |   |                         |   |       |                              |       
|Beverage,
    Food & Tobacco                                    |  |                                  |        |                        |                                                                                                           |   |          |            |           |  |        |                         |         |   |                         |   |       |                              |       
|CSM
    Bakery Supplies, LLC                                    |  | L+7.75%                          |        |                        | 10.16                                                                                                     | % |          | 7/5/2021   |           |  | 5,792  |                         |         |   | 5,792                   |   |       |                              | 5,314 
|                                                                |  |                                  |        |                        |                                                                                                           |   |          |            |           |  | 5,792  |                         |         |   | 5,792                   |   |       |                              | 5,314 
|High
    Tech Industries                                        |  |                                  |        |                        |                                                                                                           |   |          |            |           |  |        |                         |         |   |                         |   |       |                              |       
|Micro
    Holdings Corp.                                        |  | L+7.50%                          |        |                        | 10.00                                                                                                     | % |          | 8/18/2025  |           |  | 3,000  |                         |         |   | 2,972                   |   |       |                              | 2,805 
|                                                                |  |                                  |        |                        |                                                                                                           |   |          |            |           |  | 3,000  |                         |         |   | 2,972                   |   |       |                              | 2,805 







19







MONROE CAPITAL CORPORATION



CONSOLIDATED SCHEDULE OF
INVESTMENTS – (continued)

December 31, 2018

(in thousands, except for shares and
units)





|Portfolio
    Company (a)                                                                  |  | Spread
    
    Above  Index (b) |        |  | Interest
    
    Rate        |     |        | Maturity   |  | Principal |        |  | Amortized
    
    Cost |   |       | Fair
    
    Value (c) |  |   | %
    of Net 
    Assets (d) | 
|------------------------------------------------------------------------------------------ |  | -------------------------------- | ------ |  | ----------------------------- | --- | ------ | ---------- |  | --------- | ------ |  | ----------------------- | - | ----- | ----------------------- |  | - | ---------------------------- | 
|Media:
    Broadcasting & Subscription                                                     |  |                                  |        |  |                               |     |        |            |  |           |        |  |                         |   |       |                         |  |   |                              | 
|Mergermarket
    Bidco Limited                                                             |  | L+7.25%                          |        |  | 9.76                          | %   |        | 8/4/2025   |  |           | 4,500  |  |                         | $ | 4,458 |                         |  | $ | 4,483                        | 
|                                                                                           |  |                                  |        |  |                               |     |        |            |  |           | 4,500  |  |                         |   | 4,458 |                         |  |   | 4,483                        | 
|Media:
    Diversified & Production                                                        |  |                                  |        |  |                               |     |        |            |  |           |        |  |                         |   |       |                         |  |   |                              | 
|The
    Octave Music Group, Inc.                                                           |  | L+8.25%                          |        |  | 10.63                         | %   |        | 5/27/2022  |  |           | 5,000  |  |                         |   | 4,957 |                         |  |   | 5,000                        | 
|                                                                                           |  |                                  |        |  |                               |     |        |            |  |           | 5,000  |  |                         |   | 4,957 |                         |  |   | 5,000                        | 
|Services:
    Consumer                                                                     |  |                                  |        |  |                               |     |        |            |  |           |        |  |                         |   |       |                         |  |   |                              | 
|Education
    Corporation of America                                                       |  | L+11.00%                         |        |  | 8.31%
    Cash/
    5.50% PIK | (p) |        | 3/31/2020  |  |           | 2,292  |  |                         |   | 2,288 |                         |  |   | 2,292                        | 
|                                                                                           |  |                                  |        |  |                               |     |        |            |  |           | 2,292  |  |                         |   | 2,288 |                         |  |   | 2,292                        | 
|Total
    Non-Controlled/Non-Affiliate Junior Secured Loans                                |  |                                  | 20,584 |  |                               |     | 20,467 |            |  |           | 19,894 |  |                         |   | 7.7   | %                      
|                                                                                           |  |                                  |        |  |                               |     |        |            |  |           |        |  |                         |   |       |                         |  |   |                              | 
|Equity
    Securities(v) (w)                                                               |  |                                  |        |  |                               |     |        |            |  |           |        |  |                         |   |       |                         |  |   |                              | 
|Banking,
    Finance, Insurance & Real Estate                                              |  |                                  |        |  |                               |     |        |            |  |           |        |  |                         |   |       |                         |  |   |                              | 
|PKS
    Holdings, LLC (warrant to purchase up to 0.8% of the equity) (g)                   |  | —                                |        |  | —                             | (x) |        | 11/30/2027 |  |           | —      |  |                         |   | 116   |                         |  |   | 18                           | 
|                                                                                           |  |                                  |        |  |                               |     |        |            |  |           |        |  |                         |   | 116   |                         |  |   | 18                           | 
|Chemicals,
    Plastics & Rubber                                                           |  |                                  |        |  |                               |     |        |            |  |           |        |  |                         |   |       |                         |  |   |                              | 
|Valudor
    Products, LLC (501,014 class A-1 units)                                        |  | n/a                              |        |  | 10.00%
    PIK                |     |        | —          |  |           | —      |  |                         |   | 501   |                         |  |   | 213                          | 
|                                                                                           |  |                                  |        |  |                               |     |        |            |  |           |        |  |                         |   | 501   |                         |  |   | 213                          | 
|Healthcare
    & Pharmaceuticals                                                           |  |                                  |        |  |                               |     |        |            |  |           |        |  |                         |   |       |                         |  |   |                              | 
|Collaborative
    Neuroscience Network, LLC (warrant to purchase up to 1.5% of the equity) |  | —                                |        |  | —                             | (x) |        | 12/27/2022 |  |           | —      |  |                         |   | —     |                         |  |   | 115                          | 
|Collaborative
    Neuroscience Network, LLC (warrant to purchase up to 2.1% of the equity) |  | —                                |        |  | —                             | (x) |        | 12/31/2027 |  |           | —      |  |                         |   | —     |                         |  |   | —                            | 
|                                                                                           |  |                                  |        |  |                               |     |        |            |  |           |        |  |                         |   | —     |                         |  |   | 115                          | 
|High
    Tech Industries                                                                   |  |                                  |        |  |                               |     |        |            |  |           |        |  |                         |   |       |                         |  |   |                              | 
|Answers
    Finance, LLC (76,539 shares of common stock)                                   |  | —                                |        |  | —                             | (x) |        | —          |  |           | —      |  |                         |   | 2,413 |                         |  |   | 215                          | 
|Host
    Analytics, Inc. (441,860 class A Units)                                           |  | —                                |        |  | —                             | (x) |        | —          |  |           | —      |  |                         |   | 442   |                         |  |   | 442                          | 
|                                                                                           |  |                                  |        |  |                               |     |        |            |  |           |        |  |                         |   | 2,855 |                         |  |   | 657                          | 
|Hotels,
    Gaming & Leisure                                                               |  |                                  |        |  |                               |     |        |            |  |           |        |  |                         |   |       |                         |  |   |                              | 
|Playtime,
    LLC - Preferred Units (8,665 units)                                          |  | —                                |        |  | —                             | (x) |        | —          |  |           | —      |  |                         |   | 200   |                         |  |   | —                            | 
|                                                                                           |  |                                  |        |  |                               |     |        |            |  |           |        |  |                         |   | 200   |                         |  |   | —                            | 
|Media:
    Advertising, Printing & Publishing                                              |  |                                  |        |  |                               |     |        |            |  |           |        |  |                         |   |       |                         |  |   |                              | 
|AdTheorent,
    Inc. (128,866 class A voting units)                                        |  | —                                |        |  | —                             | (x) |        | —          |  |           | —      |  |                         |   | 129   |                         |  |   | 156                          | 
|InMobi
    Pte, Ltd. (warrant to purchase up to 2.8% of the equity) (g) (n)                |  | —                                |        |  | —                             | (x) |        | 9/18/2025  |  |           | —      |  |                         |   | —     |                         |  |   | 209                          | 
|                                                                                           |  |                                  |        |  |                               |     |        |            |  |           |        |  |                         |   | 129   |                         |  |   | 365                          | 
|Retail                                                                                     |  |                                  |        |  |                               |     |        |            |  |           |        |  |                         |   |       |                         |  |   |                              | 
|The
    Tie Bar Operating Company, LLC - Class A Preferred Units (1,275 units)             |  | —                                |        |  | —                             |     |        | —          |  |           | —      |  |                         |   | 87    |                         |  |   | 109                          | 
|The
    Tie Bar Operating Company, LLC - Class B Preferred Units (1,275 units)             |  | —                                |        |  | —                             |     |        | —          |  |           | —      |  |                         |   | —     |                         |  |   | —                            | 
|                                                                                           |  |                                  |        |  |                               |     |        |            |  |           |        |  |                         |   | 87    |                         |  |   | 109                          | 





20







MONROE CAPITAL CORPORATION



CONSOLIDATED SCHEDULE OF
INVESTMENTS – (continued)

December 31, 2018

(in thousands, except for shares and
units)



|Portfolio
    Company (a)                                                             |  | Spread
    
    Above  Index (b) |  |  | Interest
    
    Rate |     |         | Maturity  |  | Principal |         |  | Amortized
    
    Cost |   |        | Fair
    
    Value (c) |  |   | %
    of Net 
    Assets (d) | 
|------------------------------------------------------------------------------------- |  | -------------------------------- |  |  | ---------------------- | --- | ------- | --------- |  | --------- | ------- |  | ----------------------- | - | ------ | ----------------------- |  | - | ---------------------------- | 
|Services:
    Business                                                                |  |                                  |  |  |                        |     |         |           |  |           |         |  |                         |   |        |                         |  |   |                              | 
|APCO
    Worldwide, Inc. (100 shares class A voting common stock)                     |  | —                                |  |  | —                      | (x) |         | —         |  |           | —       |  |                         | $ | 395    |                         |  | $ | 317                          | 
|Atlas
    Sign Industries of FLA, LLC (warrants to purchase up to 0.8% of the equity) |  | —                                |  |  | —                      | (x) |         | 5/14/2026 |  |           | —       |  |                         |   | 125    |                         |  |   | 83                           | 
|                                                                                      |  |                                  |  |  |                        |     |         |           |  |           |         |  |                         |   | 520    |                         |  |   | 400                          | 
|Services:
    Consumer                                                                |  |                                  |  |  |                        |     |         |           |  |           |         |  |                         |   |        |                         |  |   |                              | 
|Education
    Corporation of America - Series G Preferred Stock (8,333 shares)        |  | n/a                              |  |  | 12.00%
    PIK         | (p) |         | —         |  |           | —       |  |                         |   | 7,492  |                         |  |   | 4,583                        | 
|                                                                                      |  |                                  |  |  |                        |     |         |           |  |           |         |  |                         |   | 7,492  |                         |  |   | 4,583                        | 
|Wholesale                                                                             |  |                                  |  |  |                        |     |         |           |  |           |         |  |                         |   |        |                         |  |   |                              | 
|Nearly
    Natural, Inc. (152,174 class A units)                                      |  | —                                |  |  | —                      | (x) |         | —         |  |           | —       |  |                         |   | 152    |                         |  |   | 146                          | 
|                                                                                      |  |                                  |  |  |                        |     |         |           |  |           |         |  |                         |   | 152    |                         |  |   | 146                          | 
|Total
    Non-Controlled/Non-Affiliate Equity Securities                              |  |                                  |  |  |                        |     | 12,052  |           |  |           | 6,606   |  |                         |   | 2.6    | %                      
|Total
    Non-Controlled/Non-Affiliate Company Investments                            |  |                                  |  |  |                        | $   | 475,932 |           |  | $         | 468,720 |  |                         |   | 181.1  | %                      
|                                                                                      |  |                                  |  |  |                        |     |         |           |  |           |         |  |                         |   |        |                         |  |   |                              | 
|Non-Controlled Affiliate Company Investments(y)                                       |  |                                  |  |  |                        |     |         |           |  |           |         |  |                         |   |        |                        
|Senior
    Secured Loans                                                              |  |                                  |  |  |                        |     |         |           |  |           |         |  |                         |   |        |                         |  |   |                              | 
|Banking,
    Finance, Insurance & Real Estate                                         |  |                                  |  |  |                        |     |         |           |  |           |         |  |                         |   |        |                        
|American
    Community Homes, Inc.                                                    |  | L+10.00%                         |  |  | 12.51% PIK             |     |         | 7/22/2019 |  |           | 7,797   |  |                         | $ | 7,770  |                         |  | $ | 6,596                        | 
|American
    Community Homes, Inc.                                                    |  | L+14.50%                         |  |  | 17.01% PIK             |     |         | 7/22/2019 |  |           | 4,725   |  |                         |   | 4,711  |                         |  |   | 3,997                        | 
|American
    Community Homes, Inc.                                                    |  | L+10.00%                         |  |  | 12.51% PIK             |     |         | 7/22/2019 |  |           | 590     |  |                         |   | 587    |                         |  |   | 499                          | 
|American
    Community Homes, Inc.                                                    |  | L+10.00%                         |  |  | 12.51% PIK             |     |         | 7/22/2019 |  |           | 473     |  |                         |   | 469    |                         |  |   | 400                          | 
|American
    Community Homes, Inc.                                                    |  | L+14.50%                         |  |  | 17.01% PIK             |     |         | 7/22/2019 |  |           | 254     |  |                         |   | 252    |                         |  |   | 215                          | 
|American
    Community Homes, Inc.                                                    |  | L+8.00%                          |  |  | 10.51%
    PIK         |     |         | 7/22/2019 |  |           | 1,710   |  |                         |   | 1,710  |                         |  |   | 1,446                        | 
|                                                                                      |  |                                  |  |  |                        |     |         |           |  |           | 15,549  |  |                         |   | 15,499 |                         |  |   | 13,153                       | 
|Containers,
    Packaging & Glass                                                     |  |                                  |  |  |                        |     |         |           |  |           |         |  |                         |   |        |                         |  |   |                              | 
|Summit
    Container Corporation (l)                                                  |  | L+8.00%                          |  |  | 10.51                  | %   |         | 1/6/2021  |  |           | 3,259   |  |                         |   | 3,269  |                         |  |   | 3,034                        | 
|Summit
    Container Corporation (Revolver) (e) (l)                                   |  | L+8.00%                          |  |  | 10.51                  | %   |         | 1/6/2021  |  |           | 8,000   |  |                         |   | 6,714  |                         |  |   | 6,660                        | 
|                                                                                      |  |                                  |  |  |                        |     |         |           |  |           | 11,259  |  |                         |   | 9,983  |                         |  |   | 9,694                        | 
|Healthcare
    & Pharmaceuticals                                                      |  |                                  |  |  |                        |     |         |           |  |           |         |  |                         |   |        |                         |  |   |                              | 
|SHI
    Holdings, Inc. (l)                                                            |  | L+10.25%                         |  |  | 12.76                  | %   |         | 7/10/2019 |  |           | 2,598   |  |                         |   | 2,592  |                         |  |   | 2,598                        | 
|SHI
    Holdings, Inc. (Revolver) (e)                                                 |  | L+10.25%                         |  |  | 12.76                  | %   |         | 7/10/2019 |  |           | 4,227   |  |                         |   | 3,339  |                         |  |   | 3,342                        | 
|                                                                                      |  |                                  |  |  |                        |     |         |           |  |           | 6,825   |  |                         |   | 5,931  |                         |  |   | 5,940                        | 
|Retail                                                                                |  |                                  |  |  |                        |     |         |           |  |           |         |  |                         |   |        |                         |  |   |                              | 
|Luxury
    Optical Holdings Co.                                                       |  | L+8.00%                          |  |  | 10.51% PIK             |     |         | 9/12/2019 |  |           | 4,698   |  |                         |   | 4,684  |                         |  |   | 4,334                        | 
|Luxury
    Optical Holdings Co. (Delayed Draw) (e) (f)                                |  | L+11.50%                         |  |  | 14.01                  | %   |         | 9/12/2019 |  |           | 1,059   |  |                         |   | 624    |                         |  |   | 622                          | 
|Luxury
    Optical Holdings Co. (Revolver)                                            |  | L+8.00%                          |  |  | 10.51%
    PIK         |     |         | 9/12/2019 |  |           | 217     |  |                         |   | 217    |                         |  |   | 200                          | 
|                                                                                      |  |                                  |  |  |                        |     |         |           |  |           | 5,974   |  |                         |   | 5,525  |                         |  |   | 5,156                        | 



21







MONROE CAPITAL CORPORATION



CONSOLIDATED SCHEDULE OF
INVESTMENTS – (continued)

December 31, 2018

(in thousands, except for shares and
units)



|Portfolio
    Company (a)                                                          |  | SpreadAboveIndex (b) |        |  | InterestRate          |        |        | Maturity   |  | Principal |        |  | AmortizedCost |     |        | FairValue (c) |  |   | %
    of NetAssets (d) | 
|---------------------------------------------------------------------------------- |  | -------------------- | ------ |  | --------------------- | ------ | ------ | ---------- |  | --------- | ------ |  | ------------- | --- | ------ | ------------- |  | - | ---------------------- | 
|Services: Business                                                                 |  |                      |        |  |                       |        |        |            |  |           |        |  |               |     |        |               |  |   |                        | 
|Curion
    Holdings, LLC (l)                                                       |  | n/a                  |        |  | 4.00% Cash/10.00% PIK |        |        | 5/2/2022   |  |           | 3,953  |  |               | $   | 3,912  |               |  | $ | 3,592                  | 
|Curion
    Holdings, LLC (Revolver) (e)                                            |  | n/a                  |        |  | 14.00                 | %      |        | 5/2/2022   |  |           | 308    |  |               |     | 250    |               |  |   | 244                    | 
|                                                                                   |  |                      |        |  |                       |        |        |            |  |           | 4,261  |  |               |     | 4,162  |               |  |   | 3,836                  | 
|Total
    Non-Controlled Affiliate Senior Secured Loans                            |  |                      | 43,868 |  |                       |        | 41,100 |            |  |           | 37,779 |  |               |     | 14.6   | %            
|                                                                                   |  |                      |        |  |                       |        |        |            |  |           |        |  |               |     |        |               |  |   |                        | 
|Unitranche Secured
    Loans (s)                                                   |  |                      |        |  |                       |        |        |            |  |           |        |  |               |     |        |               |  |   |                        | 
|Consumer
    Goods: Non-Durable                                                    |  |                      |        |  |                       |        |        |            |  |           |        |  |               |     |        |               |  |   |                        | 
|Incipio, LLC (z)                                                                   |  | L+9.06%              |        |  | 11.01% Cash/0.56% PIK | (aa)   |        | 7/1/2019   |  |           | 13,803 |  |               |     | 13,749 |               |  |   | 12,830                 | 
|Incipio, LLC (ab)                                                                  |  | L+8.50%              |        |  | 11.01                 | %      |        | 7/1/2019   |  |           | 3,613  |  |               |     | 3,613  |               |  |   | 3,573                  | 
|Incipio, LLC                                                                       |  | L+8.50%              |        |  | 11.01                 | %      |        | 7/1/2019   |  |           | 1,535  |  |               |     | 1,535  |               |  |   | 1,518                  | 
|                                                                                   |  |                      |        |  |                       |        |        |            |  |           | 18,951 |  |               |     | 18,897 |               |  |   | 17,921                 | 
|Total
    Non-Controlled Affiliate Unitranche Secured Loans                        |  | 18,951               |        |  |                       | 18,897 |        |            |  | 17,921    |        |  |               | 7.0 | %     
|                                                                                   |  |                      |        |  |                       |        |        |            |  |           |        |  |               |     |        |               |  |   |                        | 
|                                                                                   |  |                      |        |  |                       |        |        |            |  |           |        |  |               |     |        |               |  |   |                        | 
|Junior Secured Loans                                                               |  |                      |        |  |                       |        |        |            |  |           |        |  |               |     |        |               |  |   |                        | 
|Consumer Goods:
    Non-Durable                                                    |  |                      |        |  |                       |        |        |            |  |           |        |  |               |     |        |               |  |   |                        | 
|Incipio, LLC (ac)                                                                  |  | n/a                  |        |  | 10.70% PIK            | (p)    |        | 12/31/2020 |  |           | 3,766  |  |               |     | —      |               |  |   | 1,260                  | 
|Incipio, LLC (ad)                                                                  |  | n/a                  |        |  | 10.70% PIK            | (p)    |        | 12/31/2020 |  |           | 7,194  |  |               |     | —      |               |  |   | —                      | 
|                                                                                   |  |                      |        |  |                       |        |        |            |  |           | 10,960 |  |               |     | —      |               |  |   | 1,260                  | 
|Services: Business                                                                 |  |                      |        |  |                       |        |        |            |  |           |        |  |               |     |        |               |  |   |                        | 
|Curion
    Holdings, LLC (l)                                                       |  | n/a                  |        |  | 15.00% PIK            | (p)    |        | 1/2/2023   |  |           | 1,720  |  |               |     | 1      |               |  |   | —                      | 
|Curion
    Holdings, LLC (l)                                                       |  | n/a                  |        |  | 15.00% PIK            | (p)    |        | 1/2/2023   |  |           | 44     |  |               |     | —      |               |  |   | —                      | 
|                                                                                   |  |                      |        |  |                       |        |        |            |  |           | 1,764  |  |               |     | 1      |               |  |   | —                      | 
|Total
    Non-Controlled Affiliate Company Junior Secured Loans                    |  | 12,724               |        |  |                       | 1      |        |            |  | 1,260     |        |  |               | 0.4 | %     
|                                                                                   |  |                      |        |  |                       |        |        |            |  |           |        |  |               |     |        |               |  |   |                        | 
|Equity Securities
    (w)                                                          |  |                      |        |  |                       |        |        |            |  |           |        |  |               |     |        |               |  |   |                        | 
|Banking, Finance, Insurance & Real Estate                                          |  |                      |        |  |                       |        |        |            |  |           |        |  |               |     |        |              
|American
    Community Homes, Inc. (warrant to purchase up to 22.3% of the equity) |  | —                    |        |  | —                     | (x)    |        | 12/18/2024 |  |           | —      |  |               |     | —      |               |  |   | —                      | 
|                                                                                   |  |                      |        |  |                       |        |        |            |  |           |        |  |               |     | —      |               |  |   | —                      | 
|Consumer
    Goods: Non-Durable                                                    |  |                      |        |  |                       |        |        |            |  |           |        |  |               |     |        |               |  |   |                        | 
|Incipio,
    LLC (1,774 shares of series C common units)                           |  | —                    |        |  | —                     | (x)    |        | —          |  |           | —      |  |               |     | —      |               |  |   | —                      | 
|Millennial
    Brands LLC (10 preferred units)                                     |  | —                    |        |  | —                     | (x)    |        | —          |  |           | —      |  |               |     | 967    |               |  |   | —                      | 
|Millennial
    Brands LLC (75,502 common units)                                    |  | —                    |        |  | —                     | (x)    |        | —          |  |           | —      |  |               |     | —      |               |  |   | —                      | 
|                                                                                   |  |                      |        |  |                       |        |        |            |  |           |        |  |               |     | 967    |               |  |   | —                      | 
|Containers,
    Packaging & Glass                                                  |  |                      |        |  |                       |        |        |            |  |           |        |  |               |     |        |               |  |   |                        | 
|Summit
    Container Corporation (warrant to purchase up to 19.5% of the equity)   |  | —                    |        |  | —                     | (x)    |        | 1/6/2024   |  |           | —      |  |               |     | —      |               |  |   | —                      | 
|                                                                                   |  |                      |        |  |                       |        |        |            |  |           |        |  |               |     | —      |               |  |   | —                      | 









22







MONROE CAPITAL CORPORATION



CONSOLIDATED SCHEDULE OF
INVESTMENTS – (continued)

December 31, 2018

(in thousands, except for shares and
units)



|Portfolio
    Company (a)                                            |  | Spread
    
    Above  Index (b) |  | Interest
    
    Rate |   |     | Maturity |   | Principal |   |        | Amortized
    
    Cost |  |   | Fair
    
    Value (c) |   |  | %
    of Net 
    Assets (d) |        
|-------------------------------------------------------------------- |  | -------------------------------- |  | ---------------------- | - | --- | -------- | - | --------- | - | ------ | ----------------------- |  | - | ----------------------- | - |  | ---------------------------- | -------
|Healthcare
    & Pharmaceuticals                                     |  |                                  |  |                        |   |     |          |   |           |   |        |                         |  |   |                         |   |  |                              |        
|SHI
    Holdings, Inc. (24 shares of common stock)                   |  | —                                |  |                        | — | (x) |          | — |           |   | —      |                         |  | $ | 27                      |   |  | $                            | 307    
|                                                                     |  |                                  |  |                        |   |     |          |   |           |   |        |                         |  |   | 27                      |   |  |                              | 307    
|Retail                                                               |  |                                  |  |                        |   |     |          |   |           |   |        |                         |  |   |                         |   |  |                              |        
|Luxury
    Optical Holdings Co. (86 shares of common stock)          |  | —                                |  |                        | — | (x) |          | — |           |   | —      |                         |  |   | —                       |   |  |                              | —      
|                                                                     |  |                                  |  |                        |   |     |          |   |           |   |        |                         |  |   | —                       |   |  |                              | —      
|Services:
    Business                                               |  |                                  |  |                        |   |     |          |   |           |   |        |                         |  |   |                         |   |  |                              |        
|Curion
    Holdings, LLC (58,779 shares of common stock)             |  | —                                |  |                        | — | (x) |          | — |           |   | —      |                         |  |   | —                       |   |  |                              | —      
|                                                                     |  |                                  |  |                        |   |     |          |   |           |   |        |                         |  |   | —                       |   |  |                              | —      
|Total
    Non-Controlled Affiliate Equity Securities                 |  |                                  |  |                        |   |     | 994      |   |           |   | 307    |                         |  |   | 0.1                     | %
|Total
    Non-Controlled Affiliate Company Investments               |  |                                  |  |                        |   | $   | 60,992   |   |           | $ | 57,267 |                         |  |   | 22.1                    | %
|                                                                     |  |                                  |  |                        |   |     |          |   |           |   |        |                         |  |   |                         |   |  |                              |        
|Controlled
    Affiliate Company Investments (ae)                    |  |                                  |  |                        |   |     |          |   |           |   |        |                         |  |   |                         |   |  |                              |        
|Equity
    Securities                                                |  |                                  |  |                        |   |     |          |   |           |   |        |                         |  |   |                         |   |  |                              |        
|Investment
    Funds & Vehicles                                      |  |                                  |  |                        |   |     |          |   |           |   |        |                         |  |   |                         |   |  |                              |        
|MRCC
    Senior Loan Fund I, LLC (50.0% of the equity interests) (g) |  | —                                |  |                        | — |     |          | — |           |   | —      |                         |  | $ | 27,200                  |   |  | $                            | 27,634 
|Total
    Controlled Affiliate Equity Securities                     |  |                                  |  |                        |   |     | 27,200   |   |           |   | 27,634 |                         |  |   | 10.7                    | %
|Total
    Controlled Affiliate Company Investments                   |  |                                  |  |                        |   | $   | 27,200   |   |           | $ | 27,634 |                         |  |   | 10.7                    | %
|                                                                     |  |                                  |  |                        |   |     |          |   |           |   |        |                         |  |   |                         |   |  |                              |        
|                                                                     |  |                                  |  |                        |   |     |          |   |           |   |        |                         |  |   |                         |   |  |                              |        
|TOTAL
    INVESTMENTS                                                |  |                                  |  |                        |   |     |          |   |           |   |        |                         |  | $ | 564,124                 |   |  | $                            | 553,621





Derivative Instruments



|Foreign currency forward contracts |  |                     |     |  |                
|---------------------------------- |  | ------------------- | --- |  | ---------------
|                                   |  |                     |     |  |                
|                                   |  | Notional Amount     |     |  | Notional Amount
|Description                        |  | to
    be Purchased |     |  | to
    be Sold 
|Foreign currency forward contract  |  | $                   | 137 |  |                
|Foreign currency forward contract  |  | $                   | 292 |  |                
|Foreign currency forward contract  |  | $                   | 136 |  |                
|Foreign currency forward contract  |  | $                   | 293 |  |                
|Foreign currency forward contract  |  | $                   | 136 |  |                
|Foreign currency forward contract  |  | $                   | 294 |  |                
|Foreign currency forward contract  |  | $                   | 134 |  |                
|Foreign currency forward contract  |  | $                   | 295 |  |                
|Foreign currency forward contract  |  | $                   | 133 |  |                
|Foreign currency forward contract  |  | $                   | 296 |  |                
|Foreign currency forward contract  |  | $                   | 132 |  |                
|Foreign currency forward contract  |  | $                   | 130 |  |                
|Foreign currency forward contract  |  | $                   | 296 |  |                
|Foreign currency forward contract  |  | $                   | 295 |  |                
|Foreign currency forward contract  |  | $                   | 294 |  |                
|                                   |  |                     |     |  |                







23







MONROE CAPITAL CORPORATION



CONSOLIDATED SCHEDULE OF
INVESTMENTS – (continued)

December 31, 2018

(in thousands, except for shares and
units)



| | (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 the 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, 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.)
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d) | Percentages are based on net assets of $258,767 as of December
31, 2018.
| | --- | ------------------------------------------------------------------------

| | (e) | All or a portion of this commitment was unfunded at December
31, 2018. As such, interest is earned only on the funded portion of this commitment.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------

| | (f) | This delayed draw loan requires that certain financial
covenants be met by the portfolio company prior to any fundings.
| | --- | -----------------------------------------------------------------------------------------------------------------------

| | (g) | 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, 2018,
non-qualifying assets totaled 16.36% of the Company’s total assets.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (h) | The PIK portion of the interest rate for HFZ Capital Group,
LLC is structured as a fee paid upon the termination of the commitment. The fee currently accrues at 0.17% per annum.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | This investment represents a note convertible to preferred
shares of the borrower.
| | --- | ----------------------------------------------------------------------------------

| | (j) | A portion of this loan (principal of $2,010) 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.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (k) | 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.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (l) | 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.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (m) | 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.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

| | (o) | This is a demand note with no stated maturity.
| | --- | ----------------------------------------------

| | (p) | This position was on non-accrual status as of December
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.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

| | (r) | 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 3.29% per annum.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (s) | 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.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (t) | A portion of this loan (principal of $9,258) 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.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (u) | A portion of this loan (principal of $525) 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.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





24







MONROE CAPITAL CORPORATION



CONSOLIDATED SCHEDULE OF
INVESTMENTS – (continued)

December 31, 2018

(in thousands, except for shares and
units)



| | (v) | Represents less than 5% ownership of the portfolio company’s
voting securities.
| | --- | -------------------------------------------------------------------------------

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

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

| | (y) | 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).
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (z) | 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.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (aa) | 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 0.56% per annum.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ab) | A portion of this loan (principal of $46) 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.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ac) | A portion of this loan (principal of $1,015) 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.
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ad) | A portion of this loan (principal of $1,938) 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.
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ae) | 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.
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

n/a - not applicable



See Notes to Consolidated Financial Statements.





25







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 (together
with its subsidiaries, the “Company”) is 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’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. The Company 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, the Company 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. See Note 7 for additional information.



On September 12, 2018, the Company closed
a public offering of $69,000 in aggregate principal amount of senior unsecured notes (“2023 Notes”). On March 20, 2019,
the Company completed a registered direct offering of
$40,000 in additional aggregate principal amount of the 2023 Notes. 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,
MRCC Holding Company I, LLC, MRCC Holding Company II, LLC, and MRCC Holding Company III, 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.



26







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.



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. 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 the service has been completed.



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, 2019 and 2018, the Company
received return of capital distributions from its preferred equity investments and its investment in LLC equity interests in SLF
of zero and $9,500, 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
$5,748 and $5,172 as of March 31, 2019 and December 31, 2018, respectively. Upfront loan origination and closing fees
received for the three months ended March 31, 2019 and 2018 totaled $916 and $316, respectively. For the three months ended
March 31, 2019 and 2018, interest income included $426 and $1,032 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, 2019 and 2018,
interest income included $113 and $133 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, 2019 and 2018, interest income
included $1,054 and $329 of PIK interest, respectively. For the three months ended March 31, 2019 and 2018, dividend income included
$13 and $260 of PIK dividends, respectively. The Company stops accruing PIK interest or PIK dividend when it is determined that
PIK interest or PIK dividend 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 or losses previously
recognized. Realized gains and losses are recorded within net realized gain (loss) 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) in the
consolidated statements of operations.



27







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. 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 $16,676 and $16,802
at March 31, 2019 and December 31, 2018, 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 as an investment on the Company’s consolidated statements
of assets and liabilities and the proceeds are recorded as a secured borrowing in the liabilities section of the consolidated statements
of assets and liabilities until the definition of a sale 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. There were no partial loan sales for the periods reported.



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.



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 9 for additional information on the Company’s distributions.



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 10 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.



28







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, 2019 and December
31, 2018, the Company had unamortized deferred financing costs of $9,265 and $6,262, 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, 2019 and 2018 was $433 and $281, respectively.



Offering Costs



Offering costs include, among other things,
fees paid in relation to legal, accounting, regulatory and printing work completed in preparation of debt and equity offerings.
Offering costs from equity offerings are charged against the proceeds from the offering within the consolidated statements of changes
in net assets. Offering costs from debt offerings are reclassified to deferred financing costs on the consolidated statements of assets
and liabilities as noted above. As of March 31, 2019 and December 31, 2018, other assets on the consolidated statements of assets
and liabilities included $195 and $328, respectively, of deferred offering costs which will be charged against the proceeds from
future debt or equity offerings when completed.



Investments Denominated in Foreign Currency



As of both March 31, 2019 and December 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.



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



Derivative Instruments



The Company may enter into foreign currency
forward contracts to reduce the Company’s exposure to foreign currency exchange rate fluctuations. In a foreign currency
forward contract, the Company agrees to receive or deliver a fixed quantity of one currency for another, at a pre-determined price
at a future date. Foreign currency forward contracts are marked-to-market based on the difference between the forward rate and
the exchange rate at the current period end. Unrealized gain (loss) on foreign currency forward contracts are recorded on the Company’s
consolidated statements of assets and liabilities by counterparty on a net basis.



The Company does not utilize hedge
accounting and as such values its foreign currency forward contracts at fair value with the unrealized gain or loss recorded
in net change in unrealized gain (loss) from foreign currency forward contracts and the realized gain or loss recorded in
net realized gain (loss) from foreign currency forward contracts in the Company’s consolidated statements
of operations.



29







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 is also 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, calculated as 4% of the estimated excess
taxable income, if any, as taxable income is earned. For the three months ended March 31, 2019 and 2018, ($7) and $11,
respectively, were recorded on the consolidated statements of operations for U.S. federal excise taxes. As of March 31, 2019
and December 31, 2018, receivables for excise taxes of $137 and zero, respectively, were included in other assets 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, 2019. The 2015 through 2018 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. 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, 2019.



Recent Accounting Pronouncements



In August 2018, the FASB issued ASU 2018-13,
Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement(“ASU 2018-13”). The primary objective of ASU 2018-13 is to improve the effectiveness of the disclosure requirements
for fair value measurements in the notes to the financial statements. ASU 2018-13 is effective for interim and annual reporting
periods beginning after December 15, 2019, although early adoption is permitted. Management is currently evaluating the impact
these changes will have on the Company’s consolidated financial statements and disclosures.



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, 2019 |         |  | December 31, 2018 | 
|-------------------------- |  | -------------- | ------- |  | ----------------- | 
|Amortized Cost:            |  |                |         |  |                   | 
|Senior secured loans       |  | $              | 470,393 |  |                   | 
|Unitranche secured loans   |  |                | 71,145  |  |                   | 
|Junior secured loans       |  |                | 20,472  |  |                   | 
|LLC equity interest in SLF |  |                | 31,275  |  |                   | 
|Equity securities          |  |                | 13,306  |  |                   | 
|Total                      |  | $              | 606,591 |  |                   | 



30







|                           |  | March 31, 2019 |         |  | December 31, 2018 | 
|-------------------------- |  | -------------- | ------- |  | ----------------- | 
|Fair Value:                |  |                |         |  |                   | 
|Senior secured loans       |  | $              | 466,300 |  |                   | 
|Unitranche secured loans   |  |                | 70,126  |  |                   | 
|Junior secured loans       |  |                | 21,266  |  |                   | 
|LLC equity interest in SLF |  |                | 32,032  |  |                   | 
|Equity securities          |  |                | 7,221   |  |                   | 
|Total                      |  | $              | 596,945 |  |                   | 



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, 2019 |         |  | December 31, 2018 | 
|--------------- |  | -------------- | ------- |  | ----------------- | 
|Amortized Cost: |  |                |         |  |                   | 
|International   |  | $              | 19,975  |  |                   | 
|Midwest         |  |                | 134,094 |  |                   | 
|Northeast       |  |                | 145,828 |  |                   | 
|Southeast       |  |                | 117,361 |  |                   | 
|Southwest       |  |                | 57,656  |  |                   | 
|West            |  |                | 131,677 |  |                   | 
|Total           |  | $              | 606,591 |  |                   | 



|              |  | March 31, 2019 |         |  | December 31, 2018 | 
|------------- |  | -------------- | ------- |  | ----------------- | 
|Fair Value:   |  |                |         |  |                   | 
|International |  | $              | 20,119  |  |                   | 
|Midwest       |  |                | 130,393 |  |                   | 
|Northeast     |  |                | 144,274 |  |                   | 
|Southeast     |  |                | 114,832 |  |                   | 
|Southwest     |  |                | 56,236  |  |                   | 
|West          |  |                | 131,091 |  |                   | 
|Total         |  | $              | 596,945 |  |                   | 



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, 2019 |         |  | December 31, 2018 | 
|----------------------------------------- |  | -------------- | ------- |  | ----------------- | 
|Amortized Cost:                           |  |                |         |  |                   | 
|Automotive                                |  | $              | 7,862   |  |                   | 
|Banking, Finance, Insurance & Real Estate |  |                | 62,899  |  |                   | 
|Beverage, Food & Tobacco                  |  |                | 16,317  |  |                   | 
|Chemicals, Plastics & Rubber              |  |                | 15,268  |  |                   | 
|Construction & Building                   |  |                | 28,353  |  |                   | 
|Consumer Goods: Durable                   |  |                | 25,008  |  |                   | 
|Consumer Goods: Non-Durable               |  |                | 21,867  |  |                   | 
|Containers, Packaging & Glass             |  |                | 8,954   |  |                   | 
|Energy: Oil & Gas                         |  |                | 6,712   |  |                   | 
|Environmental Industries                  |  |                | 12,658  |  |                   | 
|Healthcare & Pharmaceuticals              |  |                | 55,656  |  |                   | 
|High Tech Industries                      |  |                | 81,219  |  |                   | 
|Hotels, Gaming & Leisure                  |  |                | 18,720  |  |                   | 
|Investment Funds & Vehicles               |  |                | 31,275  |  |                   | 
|Media: Advertising, Printing & Publishing |  |                | 20,183  |  |                   | 
|Media: Broadcasting & Subscription        |  |                | 4,459   |  |                   | 
|Media: Diversified & Production           |  |                | 11,099  |  |                   | 
|Retail                                    |  |                | 34,796  |  |                   | 
|Services: Business                        |  |                | 95,419  |  |                   | 
|Services: Consumer                        |  |                | 20,705  |  |                   | 
|Wholesale                                 |  |                | 27,162  |  |                   | 
|Total                                     |  | $              | 606,591 |  |                   | 



31







|                                          |  | March 31, 2019 |         |  | December 31, 2018 | 
|----------------------------------------- |  | -------------- | ------- |  | ----------------- | 
|Fair Value:                               |  |                |         |  |                   | 
|Automotive                                |  | $              | 7,846   |  |                   | 
|Banking, Finance, Insurance & Real Estate |  |                | 59,563  |  |                   | 
|Beverage, Food & Tobacco                  |  |                | 15,850  |  |                   | 
|Chemicals, Plastics & Rubber              |  |                | 15,106  |  |                   | 
|Construction & Building                   |  |                | 28,640  |  |                   | 
|Consumer Goods: Durable                   |  |                | 24,979  |  |                   | 
|Consumer Goods: Non-Durable               |  |                | 20,927  |  |                   | 
|Containers, Packaging & Glass             |  |                | 8,663   |  |                   | 
|Energy: Oil & Gas                         |  |                | 6,749   |  |                   | 
|Environmental Industries                  |  |                | 12,790  |  |                   | 
|Healthcare & Pharmaceuticals              |  |                | 53,984  |  |                   | 
|High Tech Industries                      |  |                | 79,911  |  |                   | 
|Hotels, Gaming & Leisure                  |  |                | 20,043  |  |                   | 
|Investment Funds & Vehicles               |  |                | 32,032  |  |                   | 
|Media: Advertising, Printing & Publishing |  |                | 20,935  |  |                   | 
|Media: Broadcasting & Subscription        |  |                | 4,472   |  |                   | 
|Media: Diversified & Production           |  |                | 11,263  |  |                   | 
|Retail                                    |  |                | 31,950  |  |                   | 
|Services: Business                        |  |                | 96,099  |  |                   | 
|Services: Consumer                        |  |                | 17,850  |  |                   | 
|Wholesale                                 |  |                | 27,293  |  |                   | 
|Total                                     |  | $              | 596,945 |  |                   | 



MRCC Senior Loan Fund I, LLC



The Company co-invests with NLV Financial
Corporation (“NLV”) in senior secured loans through SLF, an unconsolidated Delaware LLC. 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
from the Company and one representative from 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. The Company’s investment is illiquid in nature
as SLF does not allow for withdrawal from the LLC or the sale of a member’s interest unless approved by the board of members
of SLF. The full withdrawal of a member would result in an orderly wind-down of SLF.



SLF’s profits and losses are allocated
to the Company and NLV in accordance with their respective ownership interests. As of both March 31, 2019 and December 31, 2018,
the Company and NLV each owned 50.0% of the LLC equity interests of SLF. As of March 31, 2019, SLF had $100,000 in equity commitments
from its members (in the aggregate), of which $62,550 was funded. As of December 31, 2018, SLF had $100,000 in commitments from
its members (in the aggregate), of which $54,400 was funded.



As of both March 31, 2019 and December 31,
2018, the Company had committed to fund $50,000 of LLC equity interest subscriptions to SLF. As of March 31, 2019 and December
31, 2018, $31,275 and $27,200 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, 2019
and 2018, the Company received dividend income of $770 and $175 from its SLF LLC equity interests, respectively.



32







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, 2019 allowed SLF SPV to borrow up to
$170,000 at any one time, subject to leverage and borrowing base restrictions. On January 9, 2019, the SLF SPV closed a $20,000
upsize to the SLF Credit Facility, bringing the maximum amount the SLF SPV is able to borrow up to the now current $170,000. 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.



SLF does not pay any fees to MC Advisors
or its affiliates; however, SLF has entered into an administration agreement with Monroe Capital Management Advisors, LLC (“MC
Management”), pursuant to which certain loan servicing and administrative functions are delegated to MC Management. SLF may
reimburse MC Management for its allocable share of overhead and other expenses incurred by MC Management. For the three months
ended March 31, 2019 and 2018, SLF incurred $46 and zero, respectively, of allocable expenses. There are no agreements or understandings
by which the Company guarantees any SLF obligations.



As of March 31, 2019 and December 31, 2018,
SLF had total assets at fair value of $199,433 and $177,122, respectively. As of both March 31, 2019 and December 31, 2018, SLF
had zero portfolio company investments on non-accrual status. 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, 2019 and December 31, 2018, SLF had commitments
to fund various undrawn revolvers and delayed draw investments to its portfolio companies totaling $6,868 and $5,466, 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, 2019 and December 31, 2018:



|                                                                   |  | As of          |        
|------------------------------------------------------------------ |  | -------------- | -------
|                                                                   |  | March 31, 2019 |        
|Senior secured loans (1)                                           |  |                | 191,232
|Weighted average current interest rate on senior secured loans (2) |  |                | 7.6    
|Number of borrowers in SLF                                         |  |                | 55     
|Largest portfolio company investment (1)                           |  |                | 6,913  
|Total of five largest portfolio company investments (1)            |  |                | 27,442 










| | (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 senior secured loans at outstanding principal amount.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------



33







MRCC SENIOR LOAN FUND I, LLC

CONSOLIDATED SCHEDULE OF INVESTMENTS

(unaudited)

March 31, 2019

(in thousands)



|Portfolio Company (a)                                           |  | Spread
    AboveIndex(b) |  | InterestRate (b) |       |   | Maturity |            | Principal |  |        | Fair Value | 
|--------------------------------------------------------------- |  | ------------------------ |  | ---------------- | ----- | - | -------- | ---------- | --------- |  | ------ | ---------- | 
|Non-Controlled/Non-Affiliate Company Investments                |  |                          |  |                  |       |   |          |            |           |  |        |            | 
|Senior Secured Loans                                            |  |                          |  |                  |       |   |          |            |           |  |        |            | 
|Aerospace & Defense                                             |  |                          |  |                  |       |   |          |            |           |  |        |            | 
|IMIA Holdings, Inc.                                             |  | L+4.50%                  |  |                  | 7.10  | % |          | 10/28/2024 |           |  | 4,309  |            | 
|IMIA Holdings, Inc. (Revolver) (c)                              |  | L+4.50%                  |  |                  | 7.10  | % |          | 10/28/2024 |           |  | 680    |            | 
|MAG Aerospace Industries, Inc.                                  |  | L+4.75%                  |  |                  | 7.25  | % |          | 6/6/2025   |           |  | 3,275  |            | 
|Novaria Holding, LLC                                            |  | L+4.75%                  |  |                  | 7.25  | % |          | 12/19/2024 |           |  | 3,122  |            | 
|Novaria Holdings, LLC (Delayed Draw) (c) (d)                    |  | L+4.75%                  |  |                  | 7.25  | % |          | 12/19/2024 |           |  | 1,204  |            | 
|The KEYW Corporation                                            |  | L+4.50%                  |  |                  | 6.99  | % |          | 5/8/2024   |           |  | 1,488  |            | 
|Trident Maritime SH, Inc.                                       |  | L+5.50%                  |  |                  | 8.10  | % |          | 6/4/2024   |           |  | 4,625  |            | 
|Trident Maritime SH, Inc. (Revolver) (c)                        |  | L+5.50%                  |  |                  | 8.10  | % |          | 6/4/2024   |           |  | 340    |            | 
|                                                                |  |                          |  |                  |       |   |          |            |           |  | 19,043 |            | 
|Automotive                                                      |  |                          |  |                  |       |   |          |            |           |  |        |            | 
|Innovative Aftermarket Systems                                  |  | L+5.50%                  |  |                  | 8.00  | % |          | 1/25/2021  |           |  | 1,973  |            | 
|Wheel Pros, LLC                                                 |  | L+4.75%                  |  |                  | 7.25  | % |          | 4/4/2025   |           |  | 3,970  |            | 
|                                                                |  |                          |  |                  |       |   |          |            |           |  | 5,943  |            | 
|Banking, Finance, Insurance & Real Estate                       |  |                          |  |                  |       |   |          |            |           |  |        |            | 
|Avison Young (USA) Inc. (d)                                     |  | L+5.00%                  |  |                  | 7.50  | % |          | 1/30/2026  |           |  | 4,988  |            | 
|Kestra Financial, Inc.                                          |  | L+4.25%                  |  |                  | 6.88  | % |          | 6/24/2022  |           |  | 3,556  |            | 
|Minotaur Acquisition, Inc. (d)                                  |  | L+5.00%                  |  |                  | 7.50  | % |          | 3/27/2026  |           |  | 3,000  |            | 
|Pivotal Payments Inc.                                           |  | P+3.50%                  |  |                  | 9.00  | % |          | 9/26/2025  |           |  | 2,895  |            | 
|Pivotal Payments Inc. (Delayed Draw) (c)                        |  | P+3.50%                  |  |                  | 9.00  | % |          | 9/26/2025  |           |  | 839    |            | 
|Zenith Merger Sub, Inc.                                         |  | L+5.25%                  |  |                  | 7.85  | % |          | 12/13/2024 |           |  | 4,735  |            | 
|Zenith Merger Sub, Inc. (Delayed Draw) (c)                      |  | L+5.25%                  |  |                  | 7.85  | % |          | 12/13/2024 |           |  | 265    |            | 
|                                                                |  |                          |  |                  |       |   |          |            |           |  | 20,278 |            | 
|Beverage, Food & Tobacco                                        |  |                          |  |                  |       |   |          |            |           |  |        |            | 
|Il Fornaio (America) Corporation                                |  | L+6.50%                  |  |                  | 9.00  | % |          | 11/10/2022 |           |  | 4,867  |            | 
|SW Ingredients Holdings, LLC                                    |  | L+4.25%                  |  |                  | 6.75  | % |          | 7/3/2025   |           |  | 3,722  |            | 
|US Salt, LLC                                                    |  | L+4.75%                  |  |                  | 7.23  | % |          | 1/16/2026  |           |  | 2,750  |            | 
|                                                                |  |                          |  |                  |       |   |          |            |           |  | 11,339 |            | 
|Capital Equipment                                               |  |                          |  |                  |       |   |          |            |           |  |        |            | 
|Analogic Corporation                                            |  | L+6.00%                  |  |                  | 8.50  | % |          | 6/24/2024  |           |  | 4,975  |            | 
|                                                                |  |                          |  |                  |       |   |          |            |           |  | 4,975  |            | 
|Chemicals, Plastics & Rubber                                    |  |                          |  |                  |       |   |          |            |           |  |        |            | 
|Loparex International B.V.                                      |  | L+4.25%                  |  |                  | 6.75  | % |          | 4/11/2025  |           |  | 496    |            | 
|Peach State Labs, LLC                                           |  | L+6.50%                  |  |                  | 8.99  | % |          | 6/30/2021  |           |  | 2,843  |            | 
|                                                                |  |                          |  |                  |       |   |          |            |           |  | 3,339  |            | 
|Construction & Building                                         |  |                          |  |                  |       |   |          |            |           |  |        |            | 
|Fastener Acquisition, Inc.                                      |  | L+4.25%                  |  |                  | 6.75  | % |          | 3/28/2025  |           |  | 1,320  |            | 
|The Cook & Boardman Group, LLC                                  |  | L+5.75%                  |  |                  | 8.24  | % |          | 10/20/2025 |           |  | 2,992  |            | 
|                                                                |  |                          |  |                  |       |   |          |            |           |  | 4,312  |            | 
|Consumer Goods: Durable                                         |  |                          |  |                  |       |   |          |            |           |  |        |            | 
|International Textile Group, Inc.                               |  | L+5.00%                  |  |                  | 7.49  | % |          | 5/1/2024   |           |  | 1,840  |            | 
|SSH Group Holdings, Inc.                                        |  | L+4.25%                  |  |                  | 6.75  | % |          | 7/30/2025  |           |  | 2,322  |            | 
|                                                                |  |                          |  |                  |       |   |          |            |           |  | 4,162  |            | 
|Consumer Goods: Non-Durable                                     |  |                          |  |                  |       |   |          |            |           |  |        |            | 
|PH Beauty Holdings III, Inc.                                    |  | L+5.00%                  |  |                  | 7.50  | % |          | 9/26/2025  |           |  | 2,486  |            | 
|                                                                |  |                          |  |                  |       |   |          |            |           |  | 2,486  |            | 
|Containers, Packaging & Glass                                   |  |                          |  |                  |       |   |          |            |           |  |        |            | 
|Port Townsend Holdings Company, Inc.                            |  | L+4.75%                  |  |                  | 7.25  | % |          | 4/3/2024   |           |  | 4,875  |            | 
|PVHC Holding Corp                                               |  | L+4.75%                  |  |                  | 7.36  | % |          | 8/5/2024   |           |  | 3,308  |            | 
|PVHC Holding Corp (Delayed Draw) (c)                            |  | L+4.75%                  |  |                  | 7.36  | % |          | 8/5/2024   |           |  | 425    |            | 
|                                                                |  |                          |  |                  |       |   |          |            |           |  | 8,608  |            | 
|Energy: Oil & Gas                                               |  |                          |  |                  |       |   |          |            |           |  |        |            | 
|Drilling Info Holdings, Inc.                                    |  | L+4.25%                  |  |                  | 6.75  | % |          | 7/30/2025  |           |  | 4,630  |            | 
|Drilling Info Holdings, Inc. (Delayed Draw) (c)                 |  | L+4.25%                  |  |                  | 6.75  | % |          | 7/30/2025  |           |  | 16     |            | 
|                                                                |  |                          |  |                  |       |   |          |            |           |  | 4,646  |            | 
|Healthcare & Pharmaceuticals                                    |  |                          |  |                  |       |   |          |            |           |  |        |            | 
|LSCS Holdings, Inc.                                             |  | L+4.25%                  |  |                  | 6.75  | % |          | 3/17/2025  |           |  | 2,328  |            | 
|LSCS Holdings, Inc.                                             |  | L+4.25%                  |  |                  | 6.85  | % |          | 3/17/2025  |           |  | 601    |            | 
|Radiology Partners, Inc.                                        |  | L+4.75%                  |  |                  | 7.37  | % |          | 7/9/2025   |           |  | 4,975  |            | 
|Solara Medical Supplies, LLC                                    |  | L+6.00%                  |  |                  | 8.50  | % |          | 2/27/2024  |           |  | 5,557  |            | 
|Solara Medical Supplies, LLC (Delayed Draw) (c)                 |  | L+6.00%                  |  |                  | 8.50  | % |          | 2/27/2024  |           |  | 1,071  |            | 
|Solara Medical Supplies, LLC (Revolver) (c)                     |  | L+6.00%                  |  |                  | 8.50  | % |          | 2/27/2024  |           |  | 714    |            | 
|                                                                |  |                          |  |                  |       |   |          |            |           |  | 15,246 |            | 
|High Tech Industries                                            |  |                          |  |                  |       |   |          |            |           |  |        |            | 
|AQA Acquisition Holding, Inc.                                   |  | L+4.25%                  |  |                  | 6.85  | % |          | 5/24/2023  |           |  | 3,316  |            | 
|Corel Corporation                                               |  | L+5.00%                  |  |                  | 7.63  | % |          | 6/4/2024   |           |  | 3,714  |            | 
|Datto, Inc. (d)                                                 |  | L+4.25%                  |  |                  | 6.75  | % |          | 4/2/2026   |           |  | 3,333  |            | 
|Gigamon, Inc.                                                   |  | L+4.25%                  |  |                  | 6.85  | % |          | 12/27/2024 |           |  | 2,963  |            | 
|Perforce Software, Inc.                                         |  | L+4.50%                  |  |                  | 7.00  | % |          | 12/27/2024 |           |  | 1,995  |            | 
|TGG TS Acquisition Company                                      |  | L+6.50%                  |  |                  | 9.09  | % |          | 12/12/2025 |           |  | 4,345  |            | 
|                                                                |  |                          |  |                  |       |   |          |            |           |  | 19,666 |            | 
|Hotel, Gaming & Leisure                                         |  |                          |  |                  |       |   |          |            |           |  |        |            | 
|Tait Tower (d)                                                  |  | L+5.00%                  |  |                  | 7.50  | % |          | 4/2/2025   |           |  | 4,231  |            | 
|Tait Tower (Revolver) (c) (d)                                   |  | L+5.00%                  |  |                  | 7.50  | % |          | 4/2/2025   |           |  | 769    |            | 
|                                                                |  |                          |  |                  |       |   |          |            |           |  | 5,000  |            | 
|Media: Advertising, Printing & Publishing                       |  |                          |  |                  |       |   |          |            |           |  |        |            | 
|Cadent, LLC                                                     |  | L+5.25%                  |  |                  | 7.73  | % |          | 9/11/2023  |           |  | 4,975  |            | 
|Cadent, LLC (Revolver) (c)                                      |  | L+5.25%                  |  |                  | 7.73  | % |          | 9/11/2023  |           |  | 167    |            | 
|                                                                |  |                          |  |                  |       |   |          |            |           |  | 5,142  |            | 
|Media: Diversified & Production                                 |  |                          |  |                  |       |   |          |            |           |  |        |            | 
|Research Now Group, Inc. and Survey Sampling International, LLC |  | L+5.50%                  |  |                  | 8.00  | % |          | 12/20/2024 |           |  | 6,913  |            | 
|                                                                |  |                          |  |                  |       |   |          |            |           |  | 6,913  |            | 
|Services: Business                                              |  |                          |  |                  |       |   |          |            |           |  |        |            | 
|CHA Holdings, Inc.                                              |  | L+4.50%                  |  |                  | 7.10  | % |          | 4/10/2025  |           |  | 2,038  |            | 
|CHA Holdings, Inc. (Delayed Draw) (c)                           |  | L+4.50%                  |  |                  | 7.10  | % |          | 4/10/2025  |           |  | 446    |            | 
|Eliassen Group, LLC                                             |  | L+4.50%                  |  |                  | 7.00  | % |          | 11/5/2024  |           |  | 2,497  |            | 
|Engage2Excel, Inc.                                              |  | L+6.50%                  |  |                  | 9.10  | % |          | 3/7/2023   |           |  | 4,331  |            | 
|Engage2Excel, Inc. (Revolver) (c)                               |  | P+5.50%                  |  |                  | 11.00 | % |          | 3/7/2023   |           |  | 545    |            | 
|GI Revelation Acquisition LLC                                   |  | L+5.00%                  |  |                  | 7.50  | % |          | 4/16/2025  |           |  | 1,390  |            | 
|North Haven CA Holdings, Inc.                                   |  | L+4.50%                  |  |                  | 7.10  | % |          | 9/29/2023  |           |  | 4,987  |            | 
|Orion Business Innovation                                       |  | L+4.50%                  |  |                  | 7.18  | % |          | 10/21/2024 |           |  | 2,500  |            | 
|Orion Business Innovation                                       |  | L+4.50%                  |  |                  | 7.17  | % |          | 10/21/2024 |           |  | 1,931  |            | 
|Orion Business Innovation                                       |  | L+4.50%                  |  |                  | 7.19  | % |          | 10/21/2024 |           |  | 565    |            | 
|Output Services Group, Inc.                                     |  | L+4.25%                  |  |                  | 6.75  | % |          | 3/27/2024  |           |  | 4,952  |            | 
|SIRVA Worldwide, Inc.                                           |  | L+5.50%                  |  |                  | 8.00  | % |          | 8/4/2025   |           |  | 1,987  |            | 
|The Kleinfelder Group, Inc.                                     |  | L+4.75%                  |  |                  | 7.16  | % |          | 11/29/2024 |           |  | 2,494  |            | 
|                                                                |  |                          |  |                  |       |   |          |            |           |  | 30,663 |            | 
|Services: Consumer                                              |  |                          |  |                  |       |   |          |            |           |  |        |            | 
|Cambium Learning Group, Inc.                                    |  | L+4.50%                  |  |                  | 7.00  | % |          | 12/18/2025 |           |  | 4,988  |            | 
|LegalZoom.com, Inc.                                             |  | L+4.50%                  |  |                  | 6.99  | % |          | 11/21/2024 |           |  | 2,742  |            | 
|WeddingWire, Inc.                                               |  | L+4.50%                  |  |                  | 6.99  | % |          | 12/19/2025 |           |  | 1,164  |            | 
|                                                                |  |                          |  |                  |       |   |          |            |           |  | 8,894  |            | 
|Telecommunications                                              |  |                          |  |                  |       |   |          |            |           |  |        |            | 
|Intermedia Holdings, Inc.                                       |  | L+6.00%                  |  |                  | 8.50  | % |          | 7/21/2025  |           |  | 1,829  |            | 
|Mavenir Systems, Inc.                                           |  | L+6.00%                  |  |                  | 8.50  | % |          | 5/8/2025   |           |  | 3,970  |            | 
|                                                                |  |                          |  |                  |       |   |          |            |           |  | 5,799  |            | 
|Utilities: Oil & Gas                                            |  |                          |  |                  |       |   |          |            |           |  |        |            | 
|NGS US Finco, LLC                                               |  | L+4.25%                  |  |                  | 6.75  | % |          | 10/1/2025  |           |  | 1,746  |            | 
|                                                                |  |                          |  |                  |       |   |          |            |           |  | 1,746  |            | 
|Wholesale                                                       |  |                          |  |                  |       |   |          |            |           |  |        |            | 
|BMC Acquisition, Inc.                                           |  | L+5.25%                  |  |                  | 7.90  | % |          | 12/30/2024 |           |  | 4,937  |            | 
|Halo Buyer, Inc.                                                |  | L+4.50%                  |  |                  | 7.00  | % |          | 6/27/2025  |           |  | 3,492  |            | 
|Halo Buyer, Inc.                                                |  | L+4.50%                  |  |                  | 7.00  | % |          | 6/27/2025  |           |  | 1,471  |            | 
|                                                                |  |                          |  |                  |       |   |          |            |           |  | 9,900  |            | 
|                                                                |  |                          |  |                  |       |   |          |            |           |  |        |            | 
|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 (“P”) which reset daily, monthly, 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, 2019. Certain investments are subject to a LIBOR
or Prime interest rate floor.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (c) | All or a portion of this
commitment was unfunded as of March 31, 2019. Principal reflects the commitment outstanding.
| | --- | ---------------------------------------------------------------------------------------------------------------------



| | (d) | Investment position or
portion thereof unsettled as of March 31, 2019.
| | --- | ----------------------------------------------------------------------



34







MRCC SENIOR LOAN FUND I, LLC

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2018

(in thousands)



|Portfolio
    Company (a)                                       |  | Spread
    AboveIndex (b) |  | InterestRate (b) |      |   | Maturity |            | Principal |  |        | Fair Value | 
|--------------------------------------------------------------- |  | ------------------------- |  | ---------------- | ---- | - | -------- | ---------- | --------- |  | ------ | ---------- | 
|Non-Controlled/Non-Affiliate Company Investments                |  |                           |  |                  |      |   |          |            |           |  |       
|Senior Secured Loans                                            |  |                           |  |                  |      |   |          |            |           |  |        |            | 
|Aerospace & Defense                                             |  |                           |  |                  |      |   |          |            |           |  |        |            | 
|IMIA Holdings, Inc.                                             |  | L+4.50%                   |  |                  | 7.30 | % |          | 10/28/2024 |           |  | 4,320  |            | 
|IMIA Holdings, Inc. (Revolver) (c)                              |  | L+4.50%                   |  |                  | 7.30 | % |          | 10/28/2024 |           |  | 680    |            | 
|MAG Aerospace Industries, Inc.                                  |  | L+4.75%                   |  |                  | 7.27 | % |          | 6/6/2025   |           |  | 3,284  |            | 
|Novaria Holding, LLC (d)                                        |  | L+4.75%                   |  |                  | 7.27 | % |          | 12/19/2024 |           |  | 4,333  |            | 
|The KEYW Corporation                                            |  | L+4.50%                   |  |                  | 6.89 | % |          | 5/8/2024   |           |  | 1,488  |            | 
|Trident Maritime SH, Inc.                                       |  | L+5.50%                   |  |                  | 8.30 | % |          | 6/4/2024   |           |  | 4,637  |            | 
|Trident Maritime SH, Inc. (Revolver) (c)                        |  | L+5.50%                   |  |                  | 8.30 | % |          | 6/4/2024   |           |  | 340    |            | 
|                                                                |  |                           |  |                  |      |   |          |            |           |  | 19,082 |            | 
|Automotive                                                      |  |                           |  |                  |      |   |          |            |           |  |        |            | 
|Wheel Pros, LLC                                                 |  | L+4.75%                   |  |                  | 7.27 | % |          | 4/4/2025   |           |  | 3,980  |            | 
|                                                                |  |                           |  |                  |      |   |          |            |           |  | 3,980  |            | 
|Banking, Finance, Insurance & Real Estate                       |  |                           |  |                  |      |   |          |            |           |  |        |            | 
|Kestra Financial, Inc. (d)                                      |  | L+4.25%                   |  |                  | 6.77 | % |          | 6/24/2022  |           |  | 3,564  |            | 
|MTC Intermediate Holdco, Inc.                                   |  | L+4.50%                   |  |                  | 7.02 | % |          | 1/30/2023  |           |  | 4,963  |            | 
|Pivotal Payments Inc.                                           |  | P+3.50%                   |  |                  | 9.00 | % |          | 9/26/2025  |           |  | 2,902  |            | 
|Pivotal Payments Inc. (Delayed Draw) (c)                        |  | L+4.50%                   |  |                  | 6.98 | % |          | 9/26/2025  |           |  | 841    |            | 
|Zenith Merger Sub, Inc.                                         |  | L+5.50%                   |  |                  | 8.30 | % |          | 12/13/2023 |           |  | 3,713  |            | 
|                                                                |  |                           |  |                  |      |   |          |            |           |  | 15,983 |            | 
|Beverage, Food & Tobacco                                        |  |                           |  |                  |      |   |          |            |           |  |        |            | 
|Il Fornaio (America) Corporation                                |  | L+6.50%                   |  |                  | 9.02 | % |          | 11/10/2022 |           |  | 4,894  |            | 
|SW Ingredients Holdings, LLC                                    |  | L+4.25%                   |  |                  | 7.05 | % |          | 7/3/2025   |           |  | 3,731  |            | 
|US Salt, LLC                                                    |  | L+4.75%                   |  |                  | 7.27 | % |          | 11/30/2023 |           |  | 3,474  |            | 
|                                                                |  |                           |  |                  |      |   |          |            |           |  | 12,099 |            | 
|Capital Equipment                                               |  |                           |  |                  |      |   |          |            |           |  |        |            | 
|Analogic Corporation                                            |  | L+6.00%                   |  |                  | 8.52 | % |          | 6/24/2024  |           |  | 4,988  |            | 
|                                                                |  |                           |  |                  |      |   |          |            |           |  | 4,988  |            | 
|Chemicals, Plastics & Rubber                                    |  |                           |  |                  |      |   |          |            |           |  |        |            | 
|Loparex International B.V.                                      |  | L+4.25%                   |  |                  | 7.05 | % |          | 4/11/2025  |           |  | 498    |            | 
|Peach State Labs, LLC                                           |  | L+6.50%                   |  |                  | 8.85 | % |          | 6/30/2021  |           |  | 2,850  |            | 
|                                                                |  |                           |  |                  |      |   |          |            |           |  | 3,348  |            | 
|Construction & Building                                         |  |                           |  |                  |      |   |          |            |           |  |        |            | 
|Fastener Acquisition, Inc.                                      |  | L+4.25%                   |  |                  | 7.05 | % |          | 3/28/2025  |           |  | 1,323  |            | 
|The Cook & Boardman Group, LLC                                  |  | L+5.75%                   |  |                  | 8.55 | % |          | 10/20/2025 |           |  | 3,000  |            | 
|                                                                |  |                           |  |                  |      |   |          |            |           |  | 4,323  |            | 
|Consumer Goods: Durable                                         |  |                           |  |                  |      |   |          |            |           |  |        |            | 
|International Textile Group, Inc.                               |  | L+5.00%                   |  |                  | 7.35 | % |          | 5/1/2024   |           |  | 1,852  |            | 
|SSH Group Holdings, Inc.                                        |  | L+4.25%                   |  |                  | 6.77 | % |          | 7/30/2025  |           |  | 2,327  |            | 
|                                                                |  |                           |  |                  |      |   |          |            |           |  | 4,179  |            | 
|Consumer Goods: Non-Durable                                     |  |                           |  |                  |      |   |          |            |           |  |        |            | 
|PH Beauty Holdings III, Inc.                                    |  | L+5.00%                   |  |                  | 7.52 | % |          | 9/26/2025  |           |  | 1,995  |            | 
|                                                                |  |                           |  |                  |      |   |          |            |           |  | 1,995  |            | 
|Containers, Packaging & Glass                                   |  |                           |  |                  |      |   |          |            |           |  |        |            | 
|Port Townsend Holdings Company, Inc.                            |  | L+4.75%                   |  |                  | 7.27 | % |          | 4/3/2024   |           |  | 4,887  |            | 
|PVHC Holding Corp                                               |  | L+4.75%                   |  |                  | 7.57 | % |          | 8/5/2024   |           |  | 3,317  |            | 
|PVHC Holding Corp (Delayed Draw) (c)                            |  | L+4.75%                   |  |                  | 7.57 | % |          | 8/5/2024   |           |  | 425    |            | 
|                                                                |  |                           |  |                  |      |   |          |            |           |  | 8,629  |            | 
|Energy: Oil & Gas                                               |  |                           |  |                  |      |   |          |            |           |  |        |            | 
|Drilling Info Holdings, Inc.                                    |  | L+4.25%                   |  |                  | 6.77 | % |          | 7/30/2025  |           |  | 4,307  |            | 
|Drilling Info Holdings, Inc. (Delayed Draw) (c)                 |  | L+4.25%                   |  |                  | 6.77 | % |          | 7/30/2025  |           |  | 350    |            | 
|                                                                |  |                           |  |                  |      |   |          |            |           |  | 4,657  |            | 
|Healthcare & Pharmaceuticals                                    |  |                           |  |                  |      |   |          |            |           |  |        |            | 
|LSCS Holdings, Inc.                                             |  | L+4.25%                   |  |                  | 6.77 | % |          | 3/17/2025  |           |  | 2,328  |            | 
|LSCS Holdings, Inc.                                             |  | L+4.25%                   |  |                  | 6.96 | % |          | 3/17/2025  |           |  | 601    |            | 
|Radiology Partners, Inc.                                        |  | L+4.25%                   |  |                  | 6.87 | % |          | 7/9/2025   |           |  | 4,988  |            | 
|Solara Medical Supplies, LLC                                    |  | L+6.00%                   |  |                  | 8.52 | % |          | 5/31/2023  |           |  | 5,571  |            | 
|Solara Medical Supplies, LLC (Delayed Draw) (c)                 |  | L+6.00%                   |  |                  | 8.52 | % |          | 5/31/2023  |           |  | 1,071  |            | 
|Solara Medical Supplies, LLC (Revolver) (c)                     |  | L+6.00%                   |  |                  | 8.52 | % |          | 5/31/2023  |           |  | 714    |            | 
|                                                                |  |                           |  |                  |      |   |          |            |           |  | 15,273 |            | 
|High Tech Industries                                            |  |                           |  |                  |      |   |          |            |           |  |        |            | 
|AQA Acquisition Holding, Inc.                                   |  | L+4.25%                   |  |                  | 7.05 | % |          | 5/24/2023  |           |  | 3,325  |            | 
|Corel Corporation (d)                                           |  | L+5.00%                   |  |                  | 7.71 | % |          | 6/4/2024   |           |  | 3,786  |            | 
|Gigamon, Inc.                                                   |  | L+4.25%                   |  |                  | 7.05 | % |          | 12/27/2024 |           |  | 2,970  |            | 
|TGG TS Acquisition Company (d)                                  |  | L+6.50%                   |  |                  | 9.02 | % |          | 12/12/2025 |           |  | 4,400  |            | 
|                                                                |  |                           |  |                  |      |   |          |            |           |  | 14,481 |            | 
|Media: Advertising, Printing & Publishing                       |  |                           |  |                  |      |   |          |            |           |  |        |            | 
|Cadent, LLC                                                     |  | L+5.25%                   |  |                  | 7.71 | % |          | 9/11/2023  |           |  | 4,988  |            | 
|Cadent, LLC (Revolver) (c)                                      |  | L+5.25%                   |  |                  | 7.71 | % |          | 9/11/2023  |           |  | 167    |            | 
|                                                                |  |                           |  |                  |      |   |          |            |           |  | 5,155  |            | 
|Media: Diversified & Production                                 |  |                           |  |                  |      |   |          |            |           |  |        |            | 
|Research Now Group, Inc. and Survey Sampling International, LLC |  | L+5.50%                   |  |                  | 8.02 | % |          | 12/20/2024 |           |  | 6,930  |            | 
|                                                                |  |                           |  |                  |      |   |          |            |           |  | 6,930  |            | 
|Services: Business                                              |  |                           |  |                  |      |   |          |            |           |  |        |            | 
|CHA Holdings, Inc.                                              |  | L+4.50%                   |  |                  | 7.30 | % |          | 4/10/2025  |           |  | 2,043  |            | 
|CHA Holdings, Inc. (Delayed Draw) (c)                           |  | L+4.50%                   |  |                  | 7.30 | % |          | 4/10/2025  |           |  | 446    |            | 
|Eliassen Group, LLC                                             |  | L+4.50%                   |  |                  | 7.02 | % |          | 11/5/2024  |           |  | 2,500  |            | 
|Engage2Excel, Inc.                                              |  | L+6.50%                   |  |                  | 8.93 | % |          | 3/7/2023   |           |  | 4,342  |            | 
|Engage2Excel, Inc. (Revolver) (c)                               |  | L+6.50%                   |  |                  | 8.95 | % |          | 3/7/2023   |           |  | 545    |            | 
|GI Revelation Acquisition LLC                                   |  | L+5.00%                   |  |                  | 7.52 | % |          | 4/16/2025  |           |  | 1,393  |            | 
|North Haven CA Holdings, Inc.                                   |  | L+4.50%                   |  |                  | 7.02 | % |          | 9/29/2023  |           |  | 5,000  |            | 
|Orion Business Innovation                                       |  | L+4.50%                   |  |                  | 7.17 | % |          | 10/21/2024 |           |  | 1,931  |            | 
|Orion Business Innovation (Delayed Draw) (c)                    |  | L+4.50%                   |  |                  | 7.17 | % |          | 10/21/2024 |           |  | 565    |            | 
|Output Services Group, Inc.                                     |  | L+4.25%                   |  |                  | 6.77 | % |          | 3/27/2024  |           |  | 4,965  |            | 
|SIRVA Worldwide, Inc.                                           |  | L+5.50%                   |  |                  | 8.02 | % |          | 8/4/2025   |           |  | 2,000  |            | 
|The Kleinfelder Group, Inc. (d)                                 |  | L+4.75%                   |  |                  | 7.27 | % |          | 11/29/2024 |           |  | 2,500  |            | 
|                                                                |  |                           |  |                  |      |   |          |            |           |  | 28,230 |            | 
|Services: Consumer                                              |  |                           |  |                  |      |   |          |            |           |  |        |            | 
|Cambium Learning Group, Inc. (d)                                |  | L+4.50%                   |  |                  | 7.02 | % |          | 12/18/2025 |           |  | 5,000  |            | 
|LegalZoom.com, Inc.                                             |  | L+4.50%                   |  |                  | 7.00 | % |          | 11/21/2024 |           |  | 2,749  |            | 
|WeddingWire, Inc. (d)                                           |  | L+4.50%                   |  |                  | 7.02 | % |          | 12/19/2025 |           |  | 1,167  |            | 
|                                                                |  |                           |  |                  |      |   |          |            |           |  | 8,916  |            | 
|Telecommunications                                              |  |                           |  |                  |      |   |          |            |           |  |        |            | 
|Intermedia Holdings, Inc.                                       |  | L+6.00%                   |  |                  | 8.52 | % |          | 7/21/2025  |           |  | 1,833  |            | 
|Mavenir Systems, Inc.                                           |  | L+6.00%                   |  |                  | 8.39 | % |          | 5/8/2025   |           |  | 3,980  |            | 
|                                                                |  |                           |  |                  |      |   |          |            |           |  | 5,813  |            | 
|Utilities: Oil & Gas                                            |  |                           |  |                  |      |   |          |            |           |  |        |            | 
|NGS US Finco, LLC                                               |  | L+4.25%                   |  |                  | 6.76 | % |          | 10/1/2025  |           |  | 1,750  |            | 
|                                                                |  |                           |  |                  |      |   |          |            |           |  | 1,750  |            | 
|Wholesale                                                       |  |                           |  |                  |      |   |          |            |           |  |        |            | 
|BMC Acquisition, Inc.                                           |  | L+5.25%                   |  |                  | 8.13 | % |          | 12/30/2024 |           |  | 4,950  |            | 
|Halo Buyer, Inc.                                                |  | L+4.50%                   |  |                  | 7.02 | % |          | 6/27/2025  |           |  | 3,501  |            | 
|Halo Buyer, Inc.                                                |  | L+4.50%                   |  |                  | 7.02 | % |          | 6/27/2025  |           |  | 1,474  |            | 
|                                                                |  |                           |  |                  |      |   |          |            |           |  | 9,925  |            | 
|                                                                |  |                           |  |                  |      |   |          |            |           |  |        |            | 
|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, monthly, 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, 2018. Certain investments
are subject to a LIBOR or Prime interest rate floor.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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



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





35







Below is certain summarized financial information
for SLF as of March 31, 2019 and December 31, 2018 and for the three months ended March 31, 2019 and 2018:



|                                                      |  | March 31, 2019 |             |   | December 31, 2018 |  
|----------------------------------------------------- |  | -------------- | ----------- | - | ----------------- | -
|                                                      |  |                | (unaudited) |   |                   |  
|Assets                                                |  |                |             |   |                   |  
|Investments, at fair value                            |  | $              | 189,648     |   |                   | $
|Cash                                                  |  |                | 477         |   |                   |  
|Restricted cash                                       |  |                | 8,742       |   |                   |  
|Interest receivable                                   |  |                | 566         |   |                   |  
|Other assets                                          |  |                | —           |   |                   |  
|Total assets                                          |  | $              | 199,433     |   |                   | $
|Liabilities                                           |  |                |             |   |                   |  
|Revolving credit facility                             |  | $              | 121,037     |   |                   | $
|Less: Unamortized deferred financing costs            |  |                | (1,736      | ) |                   |  
|Total debt, less unamortized deferred financing costs |  |                | 119,301     |   |                   |  
|Payable for open trades                               |  |                | 15,290      |   |                   |  
|Interest payable                                      |  |                | 529         |   |                   |  
|Accounts payable and accrued expenses                 |  |                | 248         |   |                   |  
|Total liabilities                                     |  |                | 135,368     |   |                   |  
|Members’ capital                                      |  |                | 64,065      |   |                   |  
|Total liabilities and members’ capital                |  | $              | 199,433     |   |                   | $



|                                            |  | Three months ended March 31, |      
|------------------------------------------- |  | ---------------------------- | -----
|                                            |  | 2019                         |      
|                                            |  | (unaudited)                  |      
|Investment income:                          |  |                              |      
|Interest income                             |  | $                            | 3,448
|Total investment income                     |  |                              | 3,448
|Expenses:                                   |  |                              |      
|Interest and other debt financing expenses  |  |                              | 1,598
|Organizational costs                        |  |                              | —    
|Professional fees                           |  |                              | 176  
|Total expenses                              |  |                              | 1,774
|Net investment income (loss)                |  |                              | 1,674
|Net gain (loss):                            |  |                              |      
|Net change in unrealized gain (loss)        |  |                              | 512  
|Net gain (loss)                             |  |                              | 512  
|Net increase (decrease) in members’ capital |  | $                            | 2,186



36







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, 2019 and December 31, 2018 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;                                                                                                                                                
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                                                                                                                                                                                                                              
| | · | the Board 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;



37







| | · | to the extent an independent valuation firm is not engaged to conduct an investment appraisal on an investment for which market quotations are not readily available, the investment will be valued by the MC Advisors investment professional responsible for the credit monitoring;
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                                                                                                                                                      
| | · | preliminary valuation conclusions are then documented and discussed with the investment committee of the Company;                                                                                                                                                                    
| |   |                                                                                                                                                                                                                                                                                      
| | · | 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 income 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. This liquidation analysis may include probability weighting of alternative outcomes. 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, 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 income 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 income 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.



Foreign Currency Forward Contracts



The valuation for the Company’s foreign
currency forward contracts is based on the difference between the exchange rate associated with the forward contract and the exchange
rate at the current period end. Foreign currency forward contracts are categorized as Level 2 in the fair value hierarchy.



38







Fair Value Disclosures



The following table presents fair value
measurements of investments and foreign currency forward contracts, by major class, as of March 31, 2019, 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                                    |  | $                           | —
|Foreign currency forward contracts asset (liability) |  | $                           | —










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



The following table presents fair value
measurements of investments, by major class, as of December 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                                    |  | $                       | —
|Foreign currency forward contracts asset (liability) |  | $                       | —










| | (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 secured, unitranche secured 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 8.00% to 17.00% at March 31, 2019 and 7.87% to
17.01% at December 31, 2018. The maturity dates on the loans outstanding at March 31, 2019 range between May 2019 and December
2025.



The following tables provide a reconciliation
of the beginning and ending balances for investments that use Level 3 inputs for the three months ended March 31, 2019 and 2018:



|                                                              |  | Investments          |        
|------------------------------------------------------------- |  | -------------------- | -------
|                                                              |  | Senior secured loans |        
|Balance as of December 31, 2018                               |  | $                    | 439,068
|Net change in unrealized gain (loss)                          |  |                      | 142    
|Purchases of investments and other adjustments to cost (1)    |  |                      | 66,757 
|Proceeds from principal payments and sales on investments (2) |  |                      | (28,977
|Reclassifications                                             |  |                      | (10,690
|Balance as of March 31, 2019                                  |  | $                    | 466,300



39







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










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



The total change in unrealized gain (loss)
included in the consolidated statements of operations for the three months ended March 31, 2019 and 2018, attributable to Level
3 investments still held at March 31, 2019 and 2018, was $626 and ($6,219), 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, 2019 and 2018.



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.



40







The valuation techniques and significant
unobservable inputs used in recurring Level 3 fair value measurements of assets and liabilities as of March 31, 2019 were as follows:



|                         |  |            |         |     |                     |                      | Unobservable |                                               | Weighted Average |  |      | Range   | 
|------------------------ |  | ---------- | ------- | --- | ------------------- | -------------------- | ------------ | --------------------------------------------- | ---------------- |  | ---- | ------- | 
|                         |  | Fair Value |         |     | Valuation Technique |                      | Input        |                                               | Mean             |  |      | Minimum | 
|Assets:                  |  |            |         |     |                     |                      |              |                                               |                  |  |      |         | 
|Senior secured loans     |  | $          | 340,376 |     |                     | Discounted cash flow |              | EBITDA multiples                              |                  |  | 6.8  | x       | 
|                         |  |            |         |     |                     |                      |              | Market yields                                 |                  |  | 11.0 | %       | 
|Senior secured loans     |  |            | 57,800  |     |                     | Discounted cash flow |              | Revenue multiples                             |                  |  | 5.0  | x       | 
|                         |  |            |         |     |                     |                      |              | Market yields                                 |                  |  | 8.4  | %       | 
|Senior secured loans     |  |            | 17,767  |     |                     | Liquidation          |              | Probability weighting of alternative outcomes |                  |  | 90.0 | %       | 
|Senior secured loans     |  |            | 15,890  |     |                     | Enterprise value     |              | Tangible book value multiples                 |                  |  | 1.5  | x       | 
|Senior secured loans     |  |            | 10,760  |     |                     | Enterprise value     |              | EBITDA multiples                              |                  |  | 7.5  | x       | 
|Senior secured loans     |  |            | 8,682   |     |                     | Enterprise value     |              | Revenue multiples                             |                  |  | 0.3  | x       | 
|Unitranche secured loans |  |            | 49,111  |     |                     | Discounted cash flow |              | EBITDA multiples                              |                  |  | 7.8  | x       | 
|                         |  |            |         |     |                     |                      |              | Market yields                                 |                  |  | 11.8 | %       | 
|Unitranche secured loans |  |            | 12,991  |     |                     | Enterprise value     |              | EBITDA multiples                              |                  |  | 3.5  | x       | 
|Unitranche secured loans |  |            | 8,024   |     |                     | Discounted cash flow |              | Revenue multiples                             |                  |  | 4.8  | x       | 
|                         |  |            |         |     |                     |                      |              | Market yields                                 |                  |  | 10.2 | %       | 
|Junior secured loans     |  |            | 2,292   |     |                     | Liquidation          |              | Probability weighting of alternative outcomes |                  |  | 77.8 | %       | 
|Junior secured loans     |  |            | 1,109   |     |                     | Enterprise value     |              | EBITDA multiples                              |                  |  | 3.4  | x       | 
|Equity securities        |  |            | 4,583   |     |                     | Liquidation          |              | Probability weighting of alterative outcomes  |                  |  | 59.0 | %       | 
|Equity securities        |  |            | 1,804   |     |                     | Enterprise value     |              | EBITDA multiples                              |                  |  | 7.9  | x       | 
|Equity securities        |  |            | 662     |     |                     | Enterprise value     |              | Revenue multiples                             |                  |  | 3.7  | x       | 
|Total Level 3 Assets     |  | $          | 531,851 | (1) |                     |                      |              |                                               |                  |  |      |         | 










| | (1) | Excludes loans of $33,062
at fair value where valuation (unadjusted) is obtained from a third-party pricing service for which such disclosure is not required.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------



The valuation techniques and significant
unobservable inputs used in recurring Level 3 fair value measurements of assets and liabilities as of December 31, 2018 were
as follows:



|                         |  |            |         |     |                     |                      | Unobservable |                                               | Weighted Average |  |      | Range   | 
|------------------------ |  | ---------- | ------- | --- | ------------------- | -------------------- | ------------ | --------------------------------------------- | ---------------- |  | ---- | ------- | 
|                         |  | Fair Value |         |     | Valuation Technique |                      | Input        |                                               | Mean             |  |      | Minimum | 
|Assets:                  |  |            |         |     |                     |                      |              |                                               |                  |  |      |         | 
|Senior secured loans     |  | $          | 337,840 |     |                     | Discounted cash flow |              | EBITDA multiples                              |                  |  | 6.8  | x       | 
|                         |  |            |         |     |                     |                      |              | Market yields                                 |                  |  | 11.1 | %       | 
|Senior secured loans     |  |            | 38,183  |     |                     | Discounted cash flow |              | Revenue multiples                             |                  |  | 3.5  | x       | 
|                         |  |            |         |     |                     |                      |              | Market yields                                 |                  |  | 8.1  | %       | 
|Senior secured loans     |  |            | 17,770  |     |                     | Liquidation          |              | Probability weighting of alternative outcomes |                  |  | 90.0 | %       | 
|Senior secured loans     |  |            | 13,153  |     |                     | Enterprise value     |              | Tangible book value multiples                 |                  |  | 1.5  | x       | 
|Senior secured loans     |  |            | 10,474  |     |                     | Enterprise value     |              | EBITDA multiples                              |                  |  | 7.5  | x       | 
|Senior secured loans     |  |            | 8,639   |     |                     | Enterprise value     |              | Revenue multiples                             |                  |  | 0.4  | x       | 
|Unitranche secured loans |  |            | 37,766  |     |                     | Discounted cash flow |              | EBITDA multiples                              |                  |  | 7.3  | x       | 
|                         |  |            |         |     |                     |                      |              | Market yields                                 |                  |  | 12.6 | %       | 
|Unitranche secured loans |  |            | 13,134  |     |                     | Enterprise value     |              | EBITDA multiples                              |                  |  | 4.6  | x       | 
|Unitranche secured loans |  |            | 7,952   |     |                     | Enterprise value     |              | Revenue multiples                             |                  |  | 4.5  | x       | 
|Junior secured loans     |  |            | 2,292   |     |                     | Liquidation          |              | Probability weighting of alternative outcomes |                  |  | 78.5 | %       | 
|Junior secured loans     |  |            | 1,260   |     |                     | Enterprise value     |              | EBITDA multiples                              |                  |  | 4.5  | x       | 
|Equity securities        |  |            | 4,583   |     |                     | Liquidation          |              | Probability weighting of alternative outcomes |                  |  | 59.0 | %       | 
|Equity securities        |  |            | 1,465   |     |                     | Enterprise value     |              | EBITDA multiples                              |                  |  | 7.2  | x       | 
|Equity securities        |  |            | 650     |     |                     | Enterprise value     |              | Revenue multiples                             |                  |  | 3.7  | x       | 
|Total Level 3 Assets     |  | $          | 495,161 | (1) |                     |                      |              |                                               |                  |  |      |         | 










| | (1) | Excludes loans of $30,826
at fair value where valuation (unadjusted) is obtained from a third-party pricing service for which such disclosure is not required.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------



41







The significant unobservable inputs used
in the income 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.



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.



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. As of March 31, 2019, the 2023 Notes
were trading on The Nasdaq Global Select Market for $24.92 per unit at par value. The par value at underwriting for the 2023 Notes
was $25.00 per unit. Based on this Level 1 input, the fair value of the $109,000 in principal outstanding 2023 Notes was $108,651.
SBA 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 both March 31, 2019 and December 31, 2018, the fair value of the Company’s SBA
debentures using Level 3 inputs were estimated at $115,000, which is the same as the Company’s carrying value of the SBA
debentures.



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, 2019 and 2018 were as follows:



42







|Portfolio Company                                                                  |  | Fair value at
    December 31, 2018 |        |  | Transfers
    in (out) |   |   | Purchases
    (cost) |  |   | Sales and
    paydowns (cost) |  |  | PIK
    interest (cost) |        |   | Discount
    accretion |   |     | Net
    realized gain (loss) |  |   | Net
    unrealized gain (loss) |  |  | Fair value at
    March 31, 2019 |  
|---------------------------------------------------------------------------------- |  | ----------------------------------- | ------ |  | ---------------------- | - | - | -------------------- |  | - | ----------------------------- |  |  | ----------------------- | ------ | - | ---------------------- | - | --- | ---------------------------- |  | - | ------------------------------ |  |  | -------------------------------- | -
|Non-controlled
    affiliate company investments:                                  |  |                                     |        |  |                        |   |   |                      |  |   |                               |  |  |                         |        |   |                        |   |     |                              |  |   |                                |  |  |                                  |  
|American
    Community Homes, Inc.                                                 |  | $                                   | 6,596  |  |                        | $ | — |                      |  | $ | —                             |  |  | $                       | —      |   |                        | $ | 249 |                              |  | $ | 12                             |  |  | $                                | —
|American Community Homes,
    Inc.                                                 |  |                                     | 3,997  |  |                        |   | — |                      |  |   | —                             |  |  |                         | —      |   |                        |   | 206 |                              |  |   | 6                              |  |  |                                  | —
|American Community Homes,
    Inc.                                                 |  |                                     | 499    |  |                        |   | — |                      |  |   | —                             |  |  |                         | —      |   |                        |   | 19  |                              |  |   | 1                              |  |  |                                  | —
|American Community Homes,
    Inc.                                                 |  |                                     | 400    |  |                        |   | — |                      |  |   | —                             |  |  |                         | —      |   |                        |   | 15  |                              |  |   | 2                              |  |  |                                  | —
|American Community Homes,
    Inc.                                                 |  |                                     | 215    |  |                        |   | — |                      |  |   | —                             |  |  |                         | —      |   |                        |   | 11  |                              |  |   | 1                              |  |  |                                  | —
|American Community Homes,
    Inc.                                                 |  |                                     | 1,446  |  |                        |   | — |                      |  |   | —                             |  |  |                         | —      |   |                        |   | 68  |                              |  |   | —                              |  |  |                                  | —
|American Community Homes,
    Inc.                                                 |  |                                     | —      |  |                        |   | — |                      |  |   | 3,333                         |  |  |                         | —      |   |                        |   | —   |                              |  |   | —                              |  |  |                                  | —
|American
    Community Homes, Inc. (warrant to purchase up to 22.3% of the equity) |  |                                     | —      |  |                        |   | — |                      |  |   | —                             |  |  |                         | —      |   |                        |   | —   |                              |  |   | —                              |  |  |                                  | —
|                                                                                   |  |                                     | 13,153 |  |                        |   | — |                      |  |   | 3,333                         |  |  |                         | —      |   |                        |   | 568 |                              |  |   | 22                             |  |  |                                  | —
|                                                                                   |  |                                     |        |  |                        |   |   |                      |  |   |                               |  |  |                         |        |   |                        |   |     |                              |  |   |                                |  |  |                                  |  
|Curion Holdings, LLC                                                               |  |                                     | 3,592  |  |                        |   | — |                      |  |   | —                             |  |  |                         | —      |   |                        |   | 127 |                              |  |   | 2                              |  |  |                                  | —
|Curion Holdings, LLC
    (Revolver)                                                |  |                                     | 244    |  |                        |   | — |                      |  |   | —                             |  |  |                         | —      |   |                        |   | 6   |                              |  |   | —                              |  |  |                                  | —
|Curion Holdings, LLC                                                               |  |                                     | —      |  |                        |   | — |                      |  |   | —                             |  |  |                         | —      |   |                        |   | —   |                              |  |   | —                              |  |  |                                  | —
|Curion Holdings, LLC                                                               |  |                                     | —      |  |                        |   | — |                      |  |   | —                             |  |  |                         | —      |   |                        |   | —   |                              |  |   | —                              |  |  |                                  | —
|Curion
    Holdings, LLC (58,779 shares of common stock)                           |  |                                     | —      |  |                        |   | — |                      |  |   | —                             |  |  |                         | —      |   |                        |   | —   |                              |  |   | —                              |  |  |                                  | —
|                                                                                   |  |                                     | 3,836  |  |                        |   | — |                      |  |   | —                             |  |  |                         | —      |   |                        |   | 133 |                              |  |   | 2                              |  |  |                                  | —
|                                                                                   |  |                                     |        |  |                        |   |   |                      |  |   |                               |  |  |                         |        |   |                        |   |     |                              |  |   |                                |  |  |                                  |  
|Incipio, LLC                                                                       |  |                                     | 12,830 |  |                        |   | — |                      |  |   | —                             |  |  |                         | —      |   |                        |   | —   |                              |  |   | 28                             |  |  |                                  | —
|Incipio, LLC                                                                       |  |                                     | 3,573  |  |                        |   | — |                      |  |   | —                             |  |  |                         | —      |   |                        |   | —   |                              |  |   | —                              |  |  |                                  | —
|Incipio, LLC                                                                       |  |                                     | 1,518  |  |                        |   | — |                      |  |   | —                             |  |  |                         | —      |   |                        |   | —   |                              |  |   | —                              |  |  |                                  | —
|Incipio, LLC                                                                       |  |                                     | 1,260  |  |                        |   | — |                      |  |   | —                             |  |  |                         | —      |   |                        |   | —   |                              |  |   | —                              |  |  |                                  | —
|Incipio, LLC                                                                       |  |                                     | —      |  |                        |   | — |                      |  |   | —                             |  |  |                         | —      |   |                        |   | —   |                              |  |   | —                              |  |  |                                  | —
|Incipio,
    LLC (1,774 shares of Series C common units)                           |  |                                     | —      |  |                        |   | — |                      |  |   | —                             |  |  |                         | —      |   |                        |   | —   |                              |  |   | —                              |  |  |                                  | —
|                                                                                   |  |                                     | 19,181 |  |                        |   | — |                      |  |   | —                             |  |  |                         | —      |   |                        |   | —   |                              |  |   | 28                             |  |  |                                  | —
|                                                                                   |  |                                     |        |  |                        |   |   |                      |  |   |                               |  |  |                         |        |   |                        |   |     |                              |  |   |                                |  |  |                                  |  
|Luxury Optical Holdings
    Co.                                                    |  |                                     | 4,334  |  |                        |   | — |                      |  |   | —                             |  |  |                         | —      |   |                        |   | 126 |                              |  |   | 5                              |  |  |                                  | —
|Luxury Optical Holdings
    Co. (Delayed Draw)                                     |  |                                     | 622    |  |                        |   | — |                      |  |   | —                             |  |  |                         | —      |   |                        |   | —   |                              |  |   | —                              |  |  |                                  | —
|Luxury Optical Holdings
    Co. (Revolver)                                         |  |                                     | 200    |  |                        |   | — |                      |  |   | —                             |  |  |                         | —      |   |                        |   | 5   |                              |  |   | —                              |  |  |                                  | —
|Luxury
    Optical Holdings Co. (86 shares of common stock)                        |  |                                     | —      |  |                        |   | — |                      |  |   | —                             |  |  |                         | —      |   |                        |   | —   |                              |  |   | —                              |  |  |                                  | —
|                                                                                   |  |                                     | 5,156  |  |                        |   | — |                      |  |   | —                             |  |  |                         | —      |   |                        |   | 131 |                              |  |   | 5                              |  |  |                                  | —
|                                                                                   |  |                                     |        |  |                        |   |   |                      |  |   |                               |  |  |                         |        |   |                        |   |     |                              |  |   |                                |  |  |                                  |  
|Millennial Brands LLC
    (10 preferred units)                                     |  |                                     | —      |  |                        |   | — |                      |  |   | —                             |  |  |                         | —      |   |                        |   | —   |                              |  |   | —                              |  |  |                                  | —
|Millennial
    Brands LLC (75,502 common units)                                    |  |                                     | —      |  |                        |   | — |                      |  |   | —                             |  |  |                         | —      |   |                        |   | —   |                              |  |   | —                              |  |  |                                  | —
|                                                                                   |  |                                     | —      |  |                        |   | — |                      |  |   | —                             |  |  |                         | —      |   |                        |   | —   |                              |  |   | —                              |  |  |                                  | —
|                                                                                   |  |                                     |        |  |                        |   |   |                      |  |   |                               |  |  |                         |        |   |                        |   |     |                              |  |   |                                |  |  |                                  |  
|SHI Holdings, Inc.                                                                 |  |                                     | 2,598  |  |                        |   | — |                      |  |   | —                             |  |  |                         | (14    | ) |                        |   | 53  |                              |  |   | 3                              |  |  |                                  | —
|SHI Holdings, Inc. (Revolver)                                                      |  |                                     | 3,342  |  |                        |   | — |                      |  |   | 136                           |  |  |                         | —      |   |                        |   | 71  |                              |  |   | 1                              |  |  |                                  | —
|SHI
    Holdings, Inc. (24 shares of common stock)                                 |  |                                     | 307    |  |                        |   | — |                      |  |   | —                             |  |  |                         | —      |   |                        |   | —   |                              |  |   | —                              |  |  |                                  | —
|                                                                                   |  |                                     | 6,247  |  |                        |   | — |                      |  |   | 136                           |  |  |                         | (14    | ) |                        |   | 124 |                              |  |   | 4                              |  |  |                                  | —
|                                                                                   |  |                                     |        |  |                        |   |   |                      |  |   |                               |  |  |                         |        |   |                        |   |     |                              |  |   |                                |  |  |                                  |  
|Summit Container Corporation                                                       |  |                                     | 3,034  |  |                        |   | — |                      |  |   | —                             |  |  |                         | —      |   |                        |   | —   |                              |  |   | —                              |  |  |                                  | —
|Summit Container Corporation
    (Revolver)                                        |  |                                     | 6,660  |  |                        |   | — |                      |  |   | 8,541                         |  |  |                         | (9,570 | ) |                        |   | —   |                              |  |   | —                              |  |  |                                  | —
|Summit
    Container Corporation (warrant to purchase up to 19.5% of the equity)   |  |                                     | —      |  |                        |   | — |                      |  |   | —                             |  |  |                         | —      |   |                        |   | —   |                              |  |   | —                              |  |  |                                  | —
|                                                                                   |  |                                     | 9,694  |  |                        |   | — |                      |  |   | 8,541                         |  |  |                         | (9,570 | ) |                        |   | —   |                              |  |   | —                              |  |  |                                  | —
|Total
    non-controlled affiliate company investments                             |  | $                                   | 57,267 |  |                        | $ | — |                      |  | $ | 12,010                        |  |  | $                       | (9,584 | ) |                        | $ | 956 |                              |  | $ | 61                             |  |  | $                                | —
|                                                                                   |  |                                     |        |  |                        |   |   |                      |  |   |                               |  |  |                         |        |   |                        |   |     |                              |  |   |                                |  |  |                                  |  
|Controlled
    affiliate company investments:                                      |  |                                     |        |  |                        |   |   |                      |  |   |                               |  |  |                         |        |   |                        |   |     |                              |  |   |                                |  |  |                                  |  
|MRCC
    Senior Loan Fund I, LLC                                                   |  | $                                   | 27,634 |  |                        | $ | — |                      |  | $ | 4,075                         |  |  | $                       | —      |   |                        | $ | —   |                              |  | $ | —                              |  |  | $                                | —
|                                                                                   |  |                                     | 27,634 |  |                        |   | — |                      |  |   | 4,075                         |  |  |                         | —      |   |                        |   | —   |                              |  |   | —                              |  |  |                                  | —
|Total
    controlled affiliate company investments                                 |  | $                                   | 27,634 |  |                        | $ | — |                      |  | $ | 4,075                         |  |  | $                       | —      |   |                        | $ | —   |                              |  | $ | —                              |  |  | $                                | —



43







|Portfolio Company                                                                 |  | Fair value at
    December 31, 2017 |        |  | Transfers
    in (out) |   |      | Purchases
    (cost) |  |   | Sales and
    paydowns (cost) |  |  | PIK
    interest (cost) |        |   | Discount
    accretion |   |     | Net
    realized gain (loss) |  |   | Net
    unrealized gain (loss) |  |  | Fair value at
    March 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 (22.7% 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)                                                           |  |                                     | —      |  |                        |   | —    |                      |  |   | —                             |  |  |                         | —      |   |                        |   | —   |                              |  |   | —                              |  |  |                                  | —
|TPP Operating, Inc. (2)                                                           |  |                                     | 3,373  |  |                        |   | 724  |                      |  |   | 63                            |  |  |                         | (42    | ) |                        |   | —   |                              |  |   | —                              |  |  |                                  | —
|TPP Operating, Inc. (2)                                                           |  |                                     | 4,593  |  |                        |   | (724 | )                    |  |   | 467                           |  |  |                         | (47    | ) |                        |   | —   |                              |  |   | —                              |  |  |                                  | —
|TPP Operating, Inc. (24
    shares of common stock) (2)                           |  |                                     | —      |  |                        |   | —    |                      |  |   | —                             |  |  |                         | —      |   |                        |   | —   |                              |  |   | —                              |  |  |                                  | —
|TPP
    Acquisition, Inc. (16 shares of common stock) (2)                         |  |                                     | —      |  |                        |   | —    |                      |  |   | —                             |  |  |                         | —      |   |                        |   | —   |                              |  |   | —                              |  |  |                                  | —
|                                                                                  |  |                                     | 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 | ) |                        | $ | —   |                              |  | $ | —                              |  |  | $                                | —












| | (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 4.6% of the equity in Rockdale, increasing total equity ownership to 22.7%. On July 20, 2018, the Company put back its 22.7% equity investment in Rockdale in advance of a bankruptcy filing and therefore it is no longer an affiliated investment.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (2) | In December 2017, the Company transferred 16.0% of the equity interest in TPP Operating, Inc. (“TPP”) 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. As a result, the Company then only controlled 24.0% of the voting interests in TPP, which is presented as a non-controlled affiliate company investment. During the twelve months ended December 31, 2018, TPP ceased operations and the Company, along with the other owners, appointed an assignee and pursuant to Delaware state law completed a General Assignment for the Benefit of Creditors to the assignee. The purpose of the assignment was to wind down the TPP business and distribute the assets to its creditors. The assignee informed the Company that it will have de minimis assets, if any, to distribute to its creditors. As a result, the Company realized a loss on TPP of $24,503 during the year ended December 31, 2018.



44







|                                                       |  | For the three months ended March
    31, |      
|------------------------------------------------------ |  | ---------------------------------------- | -----
|                                                       |  | 2019                                     |      
|Portfolio Company                                      |  | Interestincome                           |      
|Non-controlled affiliate
    company investments:      |  |                                          |      
|American Community
    Homes, Inc.                     |  | $                                        | 258  
|American Community
    Homes, Inc.                     |  |                                          | 210  
|American Community
    Homes, Inc.                     |  |                                          | 20   
|American Community
    Homes, Inc.                     |  |                                          | 17   
|American Community
    Homes, Inc.                     |  |                                          | 12   
|American Community
    Homes, Inc.                     |  |                                          | 47   
|American Community
    Homes, Inc.                     |  |                                          | 3    
|American
    Community Homes, Inc. (Warrant)           |  |                                          | —    
|                                                       |  |                                          | 567  
|                                                       |  |                                          |      
|Curion Holdings,
    LLC                               |  |                                          | 142  
|Curion Holdings,
    LLC (Revolver)                    |  |                                          | 9    
|Curion Holdings,
    LLC                               |  |                                          | —    
|Curion Holdings,
    LLC                               |  |                                          | —    
|Curion Holdings,
    LLC (Common stock)                |  |                                          | —    
|                                                       |  |                                          | 151  
|                                                       |  |                                          |      
|Incipio, LLC                                           |  |                                          | 426  
|Incipio, LLC                                           |  |                                          | 102  
|Incipio, LLC (Delayed Draw)                            |  |                                          | 42   
|Incipio, LLC                                           |  |                                          | —    
|Incipio, LLC                                           |  |                                          | —    
|Incipio, LLC (Common
    stock)                        |  |                                          | —    
|                                                       |  |                                          | 570  
|                                                       |  |                                          |      
|Luxury Optical Holdings Co.                            |  |                                          | 129  
|Luxury Optical Holdings Co. (Delayed
    Draw)         |  |                                          | 22   
|Luxury Optical Holdings Co. (Revolver)                 |  |                                          | 6    
|Luxury Optical Holdings
    Co. (Common stock)         |  |                                          | —    
|                                                       |  |                                          | 157  
|                                                       |  |                                          |      
|Millennial Brands
LLC (Preferred units)                |  |                                          | —    
|Millennial
    Brands LLC (Common units)               |  |                                          | —    
|                                                       |  |                                          | —    
|                                                       |  |                                          |      
|Rockdale Blackhawk, LLC                                |  |                                          | —    
|Rockdale Blackhawk, LLC (Capex)                        |  |                                          | —    
|Rockdale Blackhawk, LLC (Revolver)                     |  |                                          | —    
|Rockdale Blackhawk, LLC (Revolver)                     |  |                                          | —    
|Rockdale Blackhawk, LLC (Revolver)                     |  |                                          | —    
|Rockdale Blackhawk,
    LLC (LLC interest)             |  |                                          | —    
|                                                       |  |                                          | —    
|                                                       |  |                                          |      
|SHI Holdings, Inc.                                     |  |                                          | 86   
|SHI Holdings, Inc. (Revolver)                          |  |                                          | 113  
|SHI Holdings, Inc.
    (Common stock)                  |  |                                          | —    
|                                                       |  |                                          | 199  
|                                                       |  |                                          |      
|Summit Container
    Corporation                       |  |                                          | 86   
|Summit Container
    Corporation                       |  |                                          | —    
|Summit Container
    Corporation (Revolver)            |  |                                          | 149  
|Summit
    Container Corporation (Warrant)             |  |                                          | —    
|                                                       |  |                                          | 235  
|                                                       |  |                                          |      
|Total non-controlled
    affiliate company investments |  | $                                        | 1,879
|                                                       |  |                                          |      
|Controlled affiliate company investments:              |  |                                          |      
|MRCC Senior Loan Fund I, LLC                           |  | $                                        | —    
|                                                       |  |                                          | —    
|Total controlled
    affiliate company investments     |  | $                                        | —    





45











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, 2019 and 2018 were
$2,521 and $2,163, 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.



The composition of the Company’s incentive
fees was as follows:



|                                                                 |  | For the three months ended March 31, |      
|---------------------------------------------------------------- |  | ------------------------------------ | -----
|                                                                 |  | 2019                                 |      
|Part one incentive fees (1)                                      |  | $                                    | 1,678
|Part two incentive fees (2)                                      |  |                                      | —    
|Incentive Fee Limitation                                         |  |                                      | (78  
|Incentive fees, excluding the impact of the incentive fee waiver |  |                                      | 1,600
|Incentive fee waiver (3)                                         |  |                                      | (281 
|Total incentive fees, net of incentive fee waiver                |  | $                                    | 1,319










| | (1) | Based on net investment
income.
| | --- | -------------------------------

| | (2) | Based upon net realized
and unrealized gains and losses, or capital gains. 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).
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (3) | Represents part one incentive
fees waived by MC Advisors.
| | --- | ---------------------------------------------------------



The Company has entered into an Administration
Agreement with 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, 2019 and 2018, the Company
incurred $863 and $807, 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
$347 and $324, respectively, was related to MC Management overhead and salary allocation and paid directly to MC Management. As
of March 31, 2019 and December 31, 2018, $338 and $342, 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.



46









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, 2019 and December 31, 2018,
the Company had accounts payable to members of the Board of $35 and zero, respectively, representing accrued and unpaid fees for
their services.



Note 7. Borrowings



On June 20, 2018, the Company’s
stockholders approved the application of the modified asset coverage requirements set forth in Section 61(a)(2) of the 1940
Act to the Company. As a result of this approval, the Company is now permitted to borrow amounts such that its asset coverage ratio,
as defined in the 1940 Act, is at least 150% after such borrowing (if certain requirements are met), rather than 200%, as previously
required. As of March 31, 2019 and December 31, 2018, the Company’s asset coverage ratio based on aggregate borrowings
outstanding was 198% and 223%, respectively.



Revolving Credit Facility: On March
1, 2019, the Company amended and restated its revolving credit facility (as amended and restated and further amended on March 20,
2019, the “Amended Credit Agreement”) with ING Capital LLC, as agent. Among other things, the Amended Credit Agreement
increased the size of the facility from $200,000 to $255,000 (with an accordion feature that permits the Company, under certain
circumstances, to increase the size of the facility up to $400,000), extended the period during which the Company may make draws
under the revolving credit facility from expiring on December 14, 2019 to expiring on March 1, 2023, extended the final maturity
date from December 14, 2020 to March 1, 2024, lowered the interest rate margins (a) for LIBOR loans (which may be one, three or
six month, at the Company’s option), from 2.75% to 2.375% and (b) for alternate base rate loans, from 1.75% to 1.375%, reduced
the asset coverage covenant from 2.1 to 1 to 1.5 to 1, replaced the consolidated interest coverage ratio with a minimum senior
debt coverage ratio of 2 to 1 (in addition to the asset coverage ratio noted above), and increased the advance rate against certain
types of assets in the Company’s portfolio. The Company incurred expenses of $1,751 in conjunction with the amendment which
have been capitalized within unamortized deferred financing costs and are amortized into interest expense over the estimated average
life of the borrowings.



As of March 31, 2019, the maximum amount
the Company was able to borrow was $255,000 and this borrowing can be increased to $400,000 pursuant to an accordion feature (subject
to maintaining 150% asset coverage, as defined by the 1940 Act). 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 may make draws under the revolving credit facility to make or purchase additional investments through March 1, 2023
and for general working capital purposes until March 1, 2024, the maturity date of the revolving credit facility.



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 72.5%
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 $175,000 plus 65% of the net proceeds to the Company from sales of its
equity securities after March 1, 2019; (2) a ratio of total assets (less total liabilities other than indebtedness) to total indebtedness
of not less than 1.5 to 1; and (3) a senior debt coverage ratio of at least 2 to 1. 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
the Company’s 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.



47







`

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.



As of March 31, 2019, the Company had U.S.
dollar borrowings of $127,050 and non-U.S. dollar borrowings denominated in Great Britain pounds of £14,800 ($19,292 in U.S.
dollars) under the revolving credit facility. As of December 31, 2018, the Company had U.S. dollar borrowings of $117,150 and non-U.S.
dollar borrowings denominated in Great Britain pounds of £14,800 ($18,876 in U.S. dollars) under the revolving credit facility.
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.
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 and other transactions in the Company’s consolidated statements of operations and totaled ($416) and ($442) for
the three months ended March 31, 2019 and 2018, respectively.



Borrowings under the revolving credit facility
bear interest, at the Company’s election, at an annual rate of LIBOR (one-month, three-month or six-month at the Company’s
discretion based on the term of the borrowing) plus 2.375% or at a daily rate equal to 1.375% 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 35% 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 35% of the then available maximum borrowing. As of March 31, 2019 and December 31, 2018, the outstanding borrowings were accruing
at a weighted average interest rate of 4.7% and 5.0%, respectively.



2023 Notes: On September
12, 2018, the Company closed a public offering of 2,760,000 units of senior unsecured notes at a public offering price of
$25.00 per unit, resulting in aggregate principal and gross proceeds of $69,000. Aggregate underwriters’ discounts
and commissions were $2,156 and deferred financing costs were $450, resulting in net proceeds of approximately $66,394. On
March 20, 2019, the Company closed a registered direct offering of 1,600,000 units of 2023 Notes at an offering price of
$24.75 per unit, resulting in additional aggregate principal of $40,000 and gross proceeds of $39,600. Placement agent fees were
$530 and deferred financing costs were $754, resulting in net proceeds of approximately $38,316. The 2023 Notes will mature
on October 31, 2023. Interest on the 2023 Notes is paid quarterly on January 31, April 30, July 31, and October 31, at an
annual rate of 5.75%, commencing on October 31, 2018. The Company may redeem the 2023 Notes in whole or in part at any time
or from time to time on or after October 31, 2020. The 2023 Notes are general, unsecured obligations and rank equal in right
of payment with all of the Company’s existing and future unsecured indebtedness. The 2023 Notes are listed on The
Nasdaq Global Select Market under the trading symbol MRCCL.



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 debentures, subject to the issuance of a leverage commitment by the SBA and other customary procedures.
SBA debentures are non-recourse, interest only debentures with interest payable semi-annually and have a ten-year maturity. The
principal amount of SBA debentures is not required to be paid prior to maturity but may be prepaid at any time without penalty.
The interest rate of SBA 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 $175,000 when it has at least $87,500 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 limits a related
group of SBICs (commonly referred to as a “family of funds”) to a maximum of $350,000 in total borrowings.



48







As of both March 31, 2019 and December 31,
2018, MRCC SBIC had $57,624 in leverageable capital and the following SBA debentures outstanding:



|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     |  |               | 3.9 | % |        |  
|September 2028 |  |               | 4.2 | % |        |  
|Total          |  |               |     |   |        | $



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 asset coverage test
under the 1940 Act. The receipt of this exemption for this SBA debt increases flexibility under the asset coverage test.



Components of interest expense: The
components of the Company’s interest expense and other debt financing expenses, average outstanding balances and average
stated interest rates (i.e. the rate in effect plus spread) were as follows:



|                                                 |  | Three months ended March 31, |        
|------------------------------------------------ |  | ---------------------------- | -------
|                                                 |  | 2019                         |        
|Interest expense – revolving credit facility     |  | $                            | 1,895  
|Interest expense – 2023 Notes                    |  |                              | 1,056  
|Interest expense – SBA debentures                |  |                              | 970    
|Amortization of deferred financing costs         |  |                              | 433    
|Total interest and other debt financing expenses |  | $                            | 4,354  
|Average outstanding balance                      |  | $                            | 338,741
|Average stated interest rate                     |  |                              | 4.7    



Note 8. Derivative Instruments



The Company enters into foreign
currency forward contracts from time to time to help mitigate the impact that an adverse change in foreign exchange rates
would have on future interest cash flows from the Company’s investments denominated in foreign currencies. As of March
31, 2019 and December 31, 2018, the counterparty to these foreign currency forward contracts was Bannockburn Global Forex, LLC.
Net unrealized gain or loss on foreign currency forward contracts are included in net change in unrealized gain (loss)
from foreign currency forward contracts and net realized gain or loss on forward currency forward contracts are included in
net realized gain (loss) from foreign currency forward contracts in the accompanying consolidated statements of
operations.



Certain information related to the
Company’s foreign currency forward contracts is presented below as of March 31, 2019 and December 31, 2018.



|                                  |  | As of March 31, 2019                      
|--------------------------------- |  | ------------------------------------------
|                                  |  | Notional
        Amount to be
        Sold
|Foreign currency forward contract |  | £                                         
|Foreign currency forward contract |  | £                                         
|Foreign currency forward contract |  | £                                         
|Foreign currency forward contract |  | £                                         
|Foreign currency forward contract |  | £                                         
|Foreign currency forward contract |  | £                                         
|Foreign currency forward contract |  | £                                         
|Foreign currency forward contract |  | £                                         
|Foreign currency forward contract |  | £                                         
|Foreign currency forward contract |  | £                                         
|Foreign currency forward contract |  | £                                         
|Foreign currency forward contract |  | £                                         
|Foreign currency forward contract |  | £                                         
|Total                             |  | £                                         



49







|                                  |  | As of December 31, 2018                   
|--------------------------------- |  | ------------------------------------------
|                                  |  | Notional
        Amount to be
        Sold
|Foreign currency forward contract |  | £                                         
|Foreign currency forward contract |  | £                                         
|Foreign currency forward contract |  | £                                         
|Foreign currency forward contract |  | £                                         
|Foreign currency forward contract |  | £                                         
|Foreign currency forward contract |  | £                                         
|Foreign currency forward contract |  | £                                         
|Foreign currency forward contract |  | £                                         
|Foreign currency forward contract |  | £                                         
|Foreign currency forward contract |  | £                                         
|Foreign currency forward contract |  | £                                         
|Foreign currency forward contract |  | £                                         
|Foreign currency forward contract |  | £                                         
|Foreign currency forward contract |  | £                                         
|Foreign currency forward contract |  | £                                         
|Total                             |  | £                                         



For the three months ended March 31, 2019
and 2018, the Company recognized net change in unrealized gain (loss) on foreign currency forward contracts of ($65) and zero,
respectively. For the three months ended March 31, 2019 and 2018, the Company recognized net realized gain (loss) on foreign currency
forward contracts of ($8) and zero, respectively.



Note 9. Distributions



The Company’s distributions are recorded
on the record date. The following table summarizes distributions declared during the three months ended March 31, 2019 and 2018:



|Date
    Declared                      |  | Record
    Date |  | Payment
    Date |  | Amount
    Per Share |      |  | Cash
    Distribution |   |       | DRIP
    Shares Issued |  |  | DRIP
    Shares Value |  |  | DRIP
    Shares Repurchased in the Open Market |   |  | Cost
    of DRIP Shares Repurchased | 
|-------------------------------------- |  | --------------- |  | ---------------- |  | -------------------- | ---- |  | --------------------- | - | ----- | ---------------------- |  |  | --------------------- |  |  | ---------------------------------------------- | - |  | ----------------------------------- | 
|Three months ended March
    31, 2019: |  |                 |  |                  |  |                      |      |  |                       |   |       |                        |  |  |                       |  |  |                                                |   |  |                                     | 
|March 5,
    2019                      |  | March 15, 2019  |  | March 29, 2019   |  | $                    | 0.35 |  |                       | $ | 7,156 |                        |  |  | —                     |  |  | $                                              | — |  |                                     | 
|Total distributions declared           |  |                 |  |                  |  | $                    | 0.35 |  |                       | $ | 7,156 |                        |  |  | —                     |  |  | $                                              | — |  |                                     | 
|                                       |  |                 |  |                  |  |                      |      |  |                       |   |       |                        |  |  |                       |  |  |                                                |   |  |                                     | 
|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 |                        |  |  | —                     |  |  | $                                              | — |  |                                     | 



Note 10. Stock Issuances and Repurchases



Stock Issuances:On May 12,
2017, the Company entered into its current at-the-market (“ATM”) securities offering program with JMP Securities
LLC (“JMP”) and FBR Capital Markets & Co. (“FBR”) (the “ATM Program”). There were no
stock issuances during the three months ended March 31, 2019 and 2018.



Note 11. Commitments and Contingencies



Commitments: As of March
31, 2019 and December 31, 2018, the Company had $57,551 and $56,041, 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 unfunded commitments of $18,725 and $22,800, respectively, to SLF, as of March 31, 2019 and December 31, 2018
that may be contributed primarily for the purpose of funding new investments approved by the SLF investment committee.
Drawdowns of the commitments  to SLF require authorization from one of the Company’s representatives on SLF’s
board of managers.



50







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.



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 12. Financial Highlights



The following is a schedule of financial
highlights for the three months ended March 31, 2019 and 2018:



|                                                                                    |  | March 31, 2019 |            |   | March 31, 2018 |  
|----------------------------------------------------------------------------------- |  | -------------- | ---------- | - | -------------- | -
|Per share data:                                                                     |  |                |            |   |                |  
|Net asset value at beginning of period                                              |  | $              | 12.66      |   |                | $
|Net investment income (1)                                                           |  |                | 0.35       |   |                |  
|Net gain (loss) (1)                                                                 |  |                | 0.01       |   |                |  
|Net increase in net assets from operations (1)                                      |  |                | 0.36       |   |                |  
|Stockholder distributions — income (2)                                              |  |                | (0.35      | ) |                |  
|Net asset value at end of period                                                    |  | $              | 12.67      |   |                | $
|Net assets at end of period                                                         |  | $              | 259,052    |   |                | $
|Shares outstanding at end of period                                                 |  |                | 20,444,564 |   |                |  
|Per share market value at end of period                                             |  | $              | 12.14      |   |                | $
|Total return based on market value (3)                                              |  |                | 30.02      | % |                |  
|Total return based on average net asset value (4)                                   |  |                | 2.87       | % |                |  
|Ratio/Supplemental data:                                                            |  |                |            |   |                |  
|Ratio of net investment income to average net assets (5)                            |  |                | 12.64      | % |                |  
|Ratio of total expenses, net of incentive fee waiver, to average net assets (5) (6) |  |                | 12.67      | % |                |  
|Portfolio turnover (7)                                                              |  |                | 5.06       | % |                |  










|(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, 2019 and 2018, 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) | 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.                                                                                                                                                                                                                                                                                                                                                                                                                    



51







|(4) | 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.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(5) | Ratios are annualized. Incentive fees included within the ratio are not annualized.                                                                                                           
|(6) | The following is a schedule of supplemental ratios for the three months ended March 31, 2019 and 2018. These ratios have been annualized unless otherwise noted.                              



|                                                                                                 |  | March 31, 2019 |       |   | March 31, 2018 | 
|------------------------------------------------------------------------------------------------ |  | -------------- | ----- | - | -------------- | 
|Ratio of interest and other debt financing expenses to average net assets                        |  |                | 6.82  | % |                | 
|Ratio of total expenses (without incentive fees) to average net assets                           |  |                | 12.16 | % |                | 
|Ratio of incentive fees, net of incentive fee waiver, to average net assets (not annualized) (8) |  |                | 0.51  | % |                | 



|(7) | Ratios are not annualized.                                                                                                               
|--- | -----------------------------------------------------------------------------------------------------------------------------------------
|(8) | The ratio of waived incentive fees to average net assets was 0.11% and zero for three months ended March 31, 2019 and 2018, respectively.





52







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, 2018, filed with the U.S. Securities and Exchange Commission (“SEC”) on March 5,
2019. 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” 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.



53







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.



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 may file in the future with the Securities
and Exchange Commission (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 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 secured,
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 secured,
unitranche secured and junior secured debt of middle-market companies. Our investments will generally 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,
2019, our portfolio included approximately 78.1% senior secured debt, 11.7% unitranche secured debt, 3.6% junior secured debt and
6.6% equity securities, compared to December 31, 2018, when our portfolio included approximately 79.3% senior secured debt, 10.6%
unitranche secured debt, 3.8% junior secured debt and 6.3% 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. See “SBA Debentures”
below for more information.



On September 12, 2018, we closed a public
offering of $69.0 million in aggregate principal amount of senior unsecured notes (“2023 Notes”). On March 20, 2019,
we completed a registered direct offering of $40.0 million
in additional aggregate principal amount of our 2023 Notes. See “2023 Notes” below for more information.



54







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
secured, unitranche secured or junior 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 are 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. 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 the service has been completed.



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.



Expenses



Our primary operating expenses include the
payment of fees to Monroe Capital BDC Advisors, LLC (“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 various forms of indebtedness. We bear all other out-of-pocket costs and expenses of our operations and transactions.



Net gain (loss)



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, foreign currency and other transactions within net change in unrealized gain (loss) in the consolidated statements
of operations.



Portfolio and Investment Activity



During the three months ended March 31,
2019, we invested $36.2 million in eight new portfolio companies and $33.9 million in 21 existing portfolio companies and had $29.1
million in aggregate amount of sales and principal repayments, resulting in net investments of $41.0 million for the period.



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.



55







The following table shows portfolio yield
by security type:



|                            |  | March 31, 2019                                       |      |   | December 31, 2018                           | 
|--------------------------- |  | ---------------------------------------------------- | ---- | - | ------------------------------------------- | 
|                            |  | Weighted AverageAnnualizedContractualCouponYield (1) |      |   | WeightedAverageAnnualizedEffectiveYield (2) | 
|Senior secured loans        |  |                                                      | 10.0 | % |                                             | 
|Unitranche secured loans    |  |                                                      | 10.4 |   |                                             | 
|Junior secured loans        |  |                                                      | 10.0 |   |                                             | 
|Preferred equity securities |  |                                                      | 0.5  |   |                                             | 
|Total                       |  |                                                      | 9.9  | % |                                             | 










|(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 investments (excluding debt investments acquired for no cost in a restructuring on non-accrual status) and the cost basis of our preferred equity investments. We exclude loans acquired for no cost in a restructuring on non-accrual within this metric as management believes this disclosure provides a better indication of return on invested capital. This exclusion impacts only the junior secured loans and total disclosed above. The weighted average contractual coupon yield including debt investments acquired for no cost in a restructuring on non-accrual status was 6.0% for junior secured loans and 9.7% in total as of March 31, 2019. The weighted average contractual coupon yield including debt investments acquired for no cost in a restructuring on non-accrual status was 5.6% for junior secured loans and 9.8% in total as of December 31, 2018.                                                                                                                                                                                                                                                                                                                                                     
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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 (excluding debt investments
    acquired for no cost in a restructuring on non-accrual status) and the cost basis of our preferred equity investments. We
    exclude loans acquired for no cost in a restructuring on non-accrual within this metric as management believes this
    disclosure provides a better indication of return on invested capital. This exclusion impacts only the junior secured loans
    and total disclosed above. The weighted average effective yield including debt investments acquired for no cost in a
    restructuring on non-accrual status was 6.0% for junior secured loans and 9.7% in total as of March 31, 2019. The weighted
    average effective yield including debt investments acquired for no cost in a restructuring on non-accrual status was 5.6% for
    junior secured loans and 9.8% in total as of December 31, 2018. 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 (in thousands):



|                           |  | March 31, 2019 |         |  | December 31, 2018 | 
|-------------------------- |  | -------------- | ------- |  | ----------------- | 
|Fair Value:                |  |                |         |  |                   | 
|Senior secured loans       |  | $              | 466,300 |  |                   | 
|Unitranche secured loans   |  |                | 70,126  |  |                   | 
|Junior secured loans       |  |                | 21,266  |  |                   | 
|LLC equity interest in SLF |  |                | 32,032  |  |                   | 
|Equity securities          |  |                | 7,221   |  |                   | 
|Total                      |  | $              | 596,945 |  |                   | 



Our portfolio composition remained relatively
consistent with December 31, 2018. The overall decrease in contractual and effective yields on the portfolio during the three months
ended March 31, 2019 was primarily attributed to general decreases in LIBOR combined with market spread compression, as new portfolio
investments were at a slightly lower average spread than the average spread in the existing portfolio.



56







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



|                                          |  | March 31, 2019 |         |  | December 31, 2018 | 
|----------------------------------------- |  | -------------- | ------- |  | ----------------- | 
|Fair Value:                               |  |                |         |  |                   | 
|Automotive                                |  | $              | 7,846   |  |                   | 
|Banking, Finance, Insurance & Real Estate |  |                | 59,563  |  |                   | 
|Beverage, Food & Tobacco                  |  |                | 15,850  |  |                   | 
|Chemicals, Plastics & Rubber              |  |                | 15,106  |  |                   | 
|Construction & Building                   |  |                | 28,640  |  |                   | 
|Consumer Goods: Durable                   |  |                | 24,979  |  |                   | 
|Consumer Goods: Non-Durable               |  |                | 20,927  |  |                   | 
|Containers, Packaging & Glass             |  |                | 8,663   |  |                   | 
|Energy: Oil & Gas                         |  |                | 6,749   |  |                   | 
|Environmental Industries                  |  |                | 12,790  |  |                   | 
|Healthcare & Pharmaceuticals              |  |                | 53,984  |  |                   | 
|High Tech Industries                      |  |                | 79,911  |  |                   | 
|Hotels, Gaming & Leisure                  |  |                | 20,043  |  |                   | 
|Investment Funds & Vehicles               |  |                | 32,032  |  |                   | 
|Media: Advertising, Printing & Publishing |  |                | 20,935  |  |                   | 
|Media: Broadcasting & Subscription        |  |                | 4,472   |  |                   | 
|Media: Diversified & Production           |  |                | 11,263  |  |                   | 
|Retail                                    |  |                | 31,950  |  |                   | 
|Services: Business                        |  |                | 96,099  |  |                   | 
|Services: Consumer                        |  |                | 17,850  |  |                   | 
|Wholesale                                 |  |                | 27,293  |  |                   | 
|Total                                     |  | $              | 596,945 |  |                   | 



Portfolio Asset Quality



MC Advisors’ portfolio management
staff closely monitors all credits, with senior portfolio managers covering agented and more complex investments. 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. 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, through its internal Portfolio Management Group (“PMG”), 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. The PMG is responsible for oversight and management of any investments rated in grades
3, 4, or 5. 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:



|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).
|                                 |  |                                                                                                                                                                                                                                                                                                                         
|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.        



57







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 PMG, in consultation with 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 amendments and waivers that may be required. In
the event of a dramatic deterioration of a credit, MC Advisors and the PMG form a team or engage outside advisors to analyze, evaluate
and take further steps to preserve our 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. The PMG and the investment committee have extensive experience in running debt
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, 2019 (in thousands):



|Investment Performance Rating |  | Investments at Fair Value |         |  | Percentage of Total Investments | 
|----------------------------- |  | ------------------------- | ------- |  | ------------------------------- | 
|1                             |  | $                         | —       |  |                                 | 
|2                             |  |                           | 493,833 |  |                                 | 
|3                             |  |                           | 60,579  |  |                                 | 
|4                             |  |                           | 42,533  |  |                                 | 
|5                             |  |                           | —       |  |                                 | 
|Total                         |  | $                         | 596,945 |  |                                 | 



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



|Investment Performance Rating |  | Investments at Fair Value |         |  | Percentage of Total Investments | 
|----------------------------- |  | ------------------------- | ------- |  | ------------------------------- | 
|1                             |  | $                         | —       |  |                                 | 
|2                             |  |                           | 452,549 |  |                                 | 
|3                             |  |                           | 57,741  |  |                                 | 
|4                             |  |                           | 43,331  |  |                                 | 
|5                             |  |                           | —       |  |                                 | 
|Total                         |  | $                         | 553,621 |  |                                 | 



As of March 31, 2019, we had five borrowers
with loans or preferred equity securities on non-accrual status (Curion Holdings, LLC (“Curion”) promissory notes,
Education Corporation of America (“ECA”), Incipio, LLC (“Incipio”) third lien tranches, Millennial Brands
LLC (“Millennial”), and Rockdale Blackhawk, LLC (“Rockdale”) pre-petition debt), and these investments
totaled $16.7 million in fair value, or 2.8% of our total investments at fair value. As of December 31, 2018, we had five borrowers
with loans or preferred equity securities on non-accrual status (Curion promissory notes, ECA, Incipio third lien tranches, Millennial,
and Rockdale pre-petition debt), and these investments totaled $16.8 million in fair value, or 3.0% of our total investments at
fair value. The Curion promissory notes and the Incipio third lien tranches were obtained in restructurings during the year ended
December 31, 2018 for no cost. 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.



58







Results of Operations



Operating results were as follows (in thousands):



|                                                                                |  | Three months ended March 31, |       
|------------------------------------------------------------------------------- |  | ---------------------------- | ------
|                                                                                |  | 2019                         |       
|Total investment income                                                         |  | $                            | 16,159
|Total expenses, net of incentive fee waiver                                     |  |                              | 9,085 
|Net investment income                                                           |  |                              | 7,074 
|Net realized gain (loss) on foreign currency forward contracts                  |  |                              | (8    
|Net realized gain (loss) on foreign currency and other transactions             |  |                              | (1    
|Net realized gain (loss)                                                        |  |                              | (9    
|Net change in unrealized gain (loss) on investments                             |  |                              | 857   
|Net change in unrealized gain (loss) on foreign currency forward contracts      |  |                              | (65   
|Net change in unrealized gain (loss) on foreign currency and other transactions |  |                              | (416  
|Net change in unrealized gain (loss)                                            |  |                              | 376   
|Net increase (decrease) in net assets resulting from operations                 |  | $                            | 7,441 



Investment Income



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



|                                                   |  | Three months ended March 31, |       
|-------------------------------------------------- |  | ---------------------------- | ------
|                                                   |  | 2019                         |       
|Interest income                                    |  | $                            | 13,214
|Payment-in-kind interest income                    |  |                              | 1,054 
|Dividend income                                    |  |                              | 783   
|Fee income                                         |  |                              | 569   
|Prepayment gain (loss)                             |  |                              | 113   
|Accretion of discounts and amortization of premium |  |                              | 426   
|Total investment income                            |  | $                            | 16,159



The increase in investment income of $1.2
million during the three months ended March 31, 2019 as compared to the three months ended March 31, 2018, is primarily due to
an increase in average outstanding loan balances and an increase in dividend income from our investment in SLF, partially offset
by a decrease in fee income and a decline in effective rate on the portfolio as compared to the prior year period.



Operating Expenses



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



|                                               |  | Three months ended March 31, |      
|---------------------------------------------- |  | ---------------------------- | -----
|                                               |  | 2019                         |      
|Interest and other debt financing expenses     |  | $                            | 4,354
|Base management fees                           |  |                              | 2,521
|Incentive fees, net of incentive fee waiver(1) |  |                              | 1,319
|Professional fees                              |  |                              | 289  
|Administrative service fees                    |  |                              | 347  
|General and administrative expenses            |  |                              | 227  
|Excise taxes                                   |  |                              | (7   
|Directors’ fees                                |  |                              | 35   
|Total expenses, net of incentive fee waiver    |  | $                            | 9,085



| | (1) | During the three months
ended March 31, 2019 and 2018, MC Advisors waived part one incentive fees (based on net investment income) of $281 thousand and
zero, respectively. Incentive fees during the three months ended March 31, 2019 and 2018 were limited by $78 thousand and $1,084
thousand, respectively, due to the Incentive Fee Limitation. See Note 6 in our attached consolidated financial statements for
additional information on the Incentive Fee Limitation.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



59







The composition of our interest and other
debt financing expenses, average outstanding balances and average stated interest rates (i.e. the rate in effect plus spread) were
as follows (in thousands):



|                                                 |  | Three months ended March 31, |        
|------------------------------------------------ |  | ---------------------------- | -------
|                                                 |  | 2019                         |        
|Interest expense – revolving credit facility     |  | $                            | 1,895  
|Interest expense – 2023 Notes                    |  |                              | 1,056  
|Interest expense – SBA debentures                |  |                              | 970    
|Amortization of deferred financing costs         |  |                              | 433    
|Total interest and other debt financing expenses |  | $                            | 4,354  
|Average outstanding balance                      |  | $                            | 338,741
|Average stated interest rate                     |  |                              | 4.7    



The increase in expenses of $2.6 million
during the three months ended March 31, 2019, as compared to the three months ended March 31, 2018, is primarily due to an increase
in interest expense as a result of additional borrowings (primarily the 2023 Notes) to support the larger average portfolio size
and by an increase in incentive fees due to a reduction of the Incentive Fee Limitation during the three months ended March 31,
2019.



Net Realized Gain (Loss)



During both the three months ended March
31, 2019 and 2018, we had no sales or dispositions of investments, resulting in no net realized gains (losses) on investments.



We may enter into foreign currency forward contracts to reduce our exposure
to foreign currency exchange rate fluctuations. During the three months ended March
31, 2019 and 2018, we had ($8) thousand and zero of net realized gains (losses) on foreign currency forward contracts,
respectively. During the three months ended March 31, 2019 and 2018, we had ($1) thousand and $12 thousand of net
realized gains (losses) on foreign currency and other transactions, respectively.



Net Change in Unrealized Gain (Loss)



For the three months ended March 31, 2019
and 2018, our investments had $0.9 million and ($6.6) 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. Tightening of credit spreads
contributed to the net unrealized mark-to-market gains on the portfolio during the three months ended March 31, 2019.



For the three months ended March 31, 2019
and 2018, our foreign currency forward contracts had ($65) thousand and zero of net change in unrealized gain (loss), respectively.
For the three months ended March 31, 2019 and 2018, our foreign currency borrowings had ($0.4) million and ($0.4) million of net
change in unrealized gain (loss), respectively.



Net Increase (Decrease) in Net Assets Resulting from Operations



For the three months ended March 31, 2019
and 2018, the net increase (decrease) in net assets from operations was $7.4 million and $1.4 million, respectively. Based on the
weighted average shares of common stock outstanding for the three months ended March 31, 2019 and 2018, our per share net increase
(decrease) in net assets resulting from operations was $0.36 and $0.07, respectively. The $6.0 million increase during the three
months ended March 31, 2019 as compared to the three months ended March 31, 2018, is primarily the result of relatively stable
portfolio valuations during the three months ended March 31, 2019 as compared with the three months ended March 31, 2018.



60







Liquidity and Capital Resources



As of March 31, 2019, we had $4.7 million
in cash, $17.3 million in cash at MRCC SBIC, $146.3 million of total debt outstanding on our revolving credit facility, $109.0
million in 2023 Notes and $115.0 million in outstanding SBA debentures. We had $108.7 million available for additional borrowings
on our revolving credit facility. See “Borrowings” below for additional information.



Cash Flows



For the three months ended March 31, 2019
and 2018, we experienced a net increase in cash and restricted cash of $4.3 million and $3.0 million, respectively. For the three
months ended March 31, 2019, operating activities used $35.0 million, primarily as a result of purchases of portfolio investments,
partially offset by principal repayments on portfolio investments. 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 principal repayments on portfolio
investments. During the three months ended March 31, 2019, we generated $39.3 million from financing activities, primarily as a
result of net proceeds from net borrowings on our revolving credit facility and 2023 Notes, partially offset by distributions to
stockholders. 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.



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 June 20, 2018 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. As of both March 31,
2019 and December 31, 2018, we had 20,444,564 shares outstanding.



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 June 20, 2018, our stockholders approved
the application of the modified asset coverage requirements set forth in Section 61(a)(2) of the 1940 Act. As a result of this
approval, we are now permitted to borrow amounts such that our asset coverage ratio, as defined in the 1940 Act, is at least 150%
after such borrowing (if certain requirements are met), rather than 200%, as previously required. As of March 31, 2019 and December
31, 2018, our asset coverage ratio based on aggregate borrowings outstanding was 198% and 223%, respectively.



Stock Issuances: On May
12, 2017, we entered into our current at-the-market (“ATM”) securities offering program with JMP Securities LLC
(“JMP”) and FBR Capital Markets & Co. (“FBR”) (the “ATM Program”). There were no
stock issuances during the three months ended March 31, 2019 and 2018.



Borrowings



Revolving Credit Facility: On March
1, 2019, we amended and restated our revolving credit facility (as amended and restated and further amended on March 20, 2019,
the “Amended Credit Agreement”) with ING Capital LLC, as agent. Among other things, the Amended Credit Agreement increased
the size of the facility from $200.0 million to $255.0 million (with an accordion feature that permits us, under certain circumstances,
to increase the size of the facility up to $400.0 million), extended the period during which we may make draws under the revolving
credit facility from expiring on December 14, 2019 to expiring on March 1, 2023, extended the final maturity date from December
14, 2020 to March 1, 2024, lowered the interest rate margins (a) for LIBOR loans (which may be one, three or six month, at the
Company’s option), from 2.75% to 2.375% and (b) for alternate base rate loans, from 1.75% to 1.375%, reduced the asset coverage
covenant from 2.1 to 1 to 1.5 to 1, replaced the consolidated interest coverage ratio with a minimum senior debt coverage ratio
of 2 to 1 (in addition to the asset coverage ratio noted above), and increased the advance rate against certain types of assets
in our portfolio. We incurred expenses of $1.8 million in conjunction with the amendment which have been capitalized within unamortized
deferred financing costs and are amortized into interest expense over the estimated average life of the borrowings.



61







As of March 31, 2019, the maximum amount
we are able to borrow was $255.0 million and this borrowing can be increased to $400.0 million pursuant to an accordion feature
(subject to maintaining 150% asset coverage, as defined by the 1940 Act). 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. We may make draws
under the revolving credit facility to make or purchase additional investments through March 1, 2023 and for general working capital
purposes until March 1, 2024, the maturity date of the revolving credit facility.



Our ability to borrow under the revolving
credit facility is subject to availability under the borrowing base, which permits us to borrow up to 72.5% 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 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 $175.0 million
plus 65% of the net proceeds to us from sales of our equity securities after March 1, 2019; (2) a ratio of total assets (less total
liabilities other than indebtedness) to total indebtedness of not less than 1.5 to 1; and (3) a senior debt coverage ratio of at
least 2 to 1. 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.



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.



As of March 31, 2019, we had U.S. dollar
borrowings of $127.0 million and non-U.S. dollar borrowings denominated in Great Britain pounds of £14.8 million ($19.3 million
in U.S. dollars) under the revolving credit facility. As of December 31, 2018, we had U.S. dollar borrowings of $117.1 million
and non-U.S. dollar borrowings denominated in Great Britain pounds of £14.8 million ($18.9 million in U.S. dollars) under
the revolving credit facility. 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. 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 and other transactions in our consolidated statements of operations and totaled ($0.4) million and ($0.4)
million for the three months ended March 31, 2019 and 2018, respectively.



Borrowings under the revolving credit facility
bear interest, at our election, at an annual rate of LIBOR (one-month, three-month or six-month at our discretion based on the
term of the borrowing) plus 2.375% or at a daily rate equal to 1.375% 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 35% 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 35% of the then available maximum borrowing.
As of March 31, 2019 and December 31, 2018, the outstanding borrowings were accruing at a weighted average interest rate of 4.7%
and 5.0%, respectively.



2023 Notes:On September
12, 2018, we closed a public offering of 2,760,000 units of senior unsecured notes at a public offering price of $25.00 per
unit, resulting in aggregate principal and gross proceeds of $69.0 million. Aggregate underwriter’s discounts and
commissions were $2.2 million and deferred financing costs were $0.4 million, resulting in net proceeds of approximately
$66.4 million. On March 20, 2019, we closed a registered direct offering of 1,600,000 units of 2023 Notes at an offering
price of $24.75 per unit, resulting in additional aggregate principal of $40.0 million and gross proceeds of $39.6 million.
Placement agent fees were $0.5 million and deferred financing costs were $0.8 million, resulting in net proceeds of
approximately $38.3 million. The 2023 Notes mature on October 31, 2023. Interest on the 2023 Notes is paid quarterly on
January 31, April 30, July 31, and October 31, at an annual rate of 5.75%, commencing on October 31, 2018. We may redeem the
2023 Notes in whole or in part at any time or from time to time on or after October 31, 2020. The 2023 Notes are general,
unsecured obligations and rank equal in right of payment with all of our existing and future unsecured indebtedness. The 2023
Notes are listed on The Nasdaq Global Select Market under the trading symbol MRCCL.



62







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 debentures, subject to the issuance of a leverage commitment by the SBA and other customary procedures.
SBA debentures are non-recourse, interest only debentures with interest payable semi-annually and have a ten-year maturity. The
principal amount of SBA debentures is not required to be paid prior to maturity but may be prepaid at any time without penalty.
The interest rate of SBA 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 $175.0 million when it has at least $87.5 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 limits
a related group of SBICs (commonly referred to as a “family of funds”) to a maximum of $350.0 million in total borrowings.



As of both March 31, 2019 and December 31,
2018, MRCC SBIC had $57.6 million in leverageable capital and the following SBA debentures outstanding (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     |  |               | 3.9 | % |        |  
|September 2028 |  |               | 4.2 | % |        |  
|Total          |  |               |     |   |        | $



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



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, 2019 and 2018, totaled $7.2 million
($0.35 per share) and $7.1 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, 2019 and 2018, 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.



63







MRCC Senior Loan Fund I, LLC



We co-invest with NLV Financial Corporation
(“NLV”), in senior secured loans through SLF, an unconsolidated Delaware LLC. 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. Our investment is illiquid in nature as SLF does not allow for withdrawal
from the LLC or the sale of a member’s interest unless approved by the board of members of SLF. The full withdrawal of a
member would result in an orderly wind-down of SLF.



SLF’s profits and losses are
allocated to us and NLV in accordance with the respective ownership interests. As of both March 31, 2019 and December 31, 2018,
we and NLV each owned 50.0% of the LLC equity interests of SLF. As of March 31, 2019, SLF had $100.0 million in equity commitments
from its members (in the aggregate), of which $62.6 million was funded. As of December 31, 2018, SLF had $100.0 million in equity
commitments from its members (in the aggregate), of which $54.4 million was funded.



As of both March 31, 2019 and December 31,
2018, we have committed to fund $50.0 million of LLC equity interest subscriptions to SLF. As of March 31, 2019 and December 31,
2018, $31.3 million and $27.2 million of our 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, 2019
and 2018, we received $0.8 million and $0.2 million of dividend income from our SLF LLC equity interests, respectively.



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, 2019 allowed SLF SPV to borrow up to
$170.0 million at any one time, subject to leverage and borrowing base restrictions. On January 9, 2019, the SLF SPV closed a $20.0
million upsize to the SLF Credit Facility, bringing the maximum amount the SLF SPV is able to borrow up to the now current $170.0
million. 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.



SLF does not pay any fees to MC Advisors
or its affiliates; however, SLF has entered into an administration agreement with MC Management, pursuant to which certain loan
servicing and administrative functions are delegated to MC Management. SLF may reimburse MC Management for its allocable share
of overhead and other expenses incurred by MC Management. For the three months ended March 31, 2019 and 2018, SLF incurred $46
thousand and zero respectively, of allocable expenses. There are no agreements or understandings by which we guarantee any SLF
obligations.



As of March 31, 2019 and December 31, 2018,
SLF had total assets at fair value of $199.4 million and $177.1 million, respectively. As of both March 31, 2019 and December 31,
2018, SLF had zero portfolio company investments on non-accrual status. The portfolio companies in SLF are in industries and geographies
similar to those in which we may invest directly. Additionally, as of March 31, 2019 and December 31, 2018, SLF had commitments
to fund various undrawn revolvers and delayed draw loans to its portfolio companies totaling $6.9 million and $5.5 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, 2019 and December 31, 2018:



|                                                                   |  | As of          |        
|------------------------------------------------------------------ |  | -------------- | -------
|                                                                   |  | March 31, 2019 |        
|Senior secured loans (1)                                           |  |                | 191,232
|Weighted average current interest rate on senior secured loans (2) |  |                | 7.6    
|Number of borrowers in SLF                                         |  |                | 55     
|Largest portfolio company investment (1)                           |  |                | 6,913  
|Total of five largest portfolio company investments (1)            |  |                | 27,442 










|(1) | Represents outstanding principal amount, excluding unfunded commitments. Principal amounts in thousands.                                                   
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | Computed as the (a) annual stated interest rate on accruing senior secured loans divided by (b) total senior secured loans at outstanding principal amount.



64







MRCC SENIOR LOAN FUND I, LLC

CONSOLIDATED SCHEDULE OF INVESTMENTS

(unaudited)

March 31, 2019

(in thousands)



|Portfolio Company (a)                                           |  | Spread AboveIndex(b) |  | InterestRate (b) |       |   | Maturity |            | Principal |  |        | Fair Value | 
|--------------------------------------------------------------- |  | -------------------- |  | ---------------- | ----- | - | -------- | ---------- | --------- |  | ------ | ---------- | 
|Non-Controlled/Non-Affiliate Company Investments                |  |                      |  |                  |       |   |          |            |           |  |        |            | 
|Senior Secured Loans                                            |  |                      |  |                  |       |   |          |            |           |  |        |            | 
|Aerospace & Defense                                             |  |                      |  |                  |       |   |          |            |           |  |        |            | 
|IMIA Holdings, Inc.                                             |  | L+4.50%              |  |                  | 7.10  | % |          | 10/28/2024 |           |  | 4,309  |            | 
|IMIA Holdings, Inc. (Revolver) (c)                              |  | L+4.50%              |  |                  | 7.10  | % |          | 10/28/2024 |           |  | 680    |            | 
|MAG Aerospace Industries, Inc.                                  |  | L+4.75%              |  |                  | 7.25  | % |          | 6/6/2025   |           |  | 3,275  |            | 
|Novaria Holding, LLC                                            |  | L+4.75%              |  |                  | 7.25  | % |          | 12/19/2024 |           |  | 3,122  |            | 
|Novaria Holdings, LLC (Delayed Draw) (c) (d)                    |  | L+4.75%              |  |                  | 7.25  | % |          | 12/19/2024 |           |  | 1,204  |            | 
|The KEYW Corporation                                            |  | L+4.50%              |  |                  | 6.99  | % |          | 5/8/2024   |           |  | 1,488  |            | 
|Trident Maritime SH, Inc.                                       |  | L+5.50%              |  |                  | 8.10  | % |          | 6/4/2024   |           |  | 4,625  |            | 
|Trident Maritime SH, Inc. (Revolver) (c)                        |  | L+5.50%              |  |                  | 8.10  | % |          | 6/4/2024   |           |  | 340    |            | 
|                                                                |  |                      |  |                  |       |   |          |            |           |  | 19,043 |            | 
|Automotive                                                      |  |                      |  |                  |       |   |          |            |           |  |        |            | 
|Innovative Aftermarket Systems                                  |  | L+5.50%              |  |                  | 8.00  | % |          | 1/25/2021  |           |  | 1,973  |            | 
|Wheel Pros, LLC                                                 |  | L+4.75%              |  |                  | 7.25  | % |          | 4/4/2025   |           |  | 3,970  |            | 
|                                                                |  |                      |  |                  |       |   |          |            |           |  | 5,943  |            | 
|Banking, Finance, Insurance & Real Estate                       |  |                      |  |                  |       |   |          |            |           |  |        |            | 
|Avison Young (USA) Inc. (d)                                     |  | L+5.00%              |  |                  | 7.50  | % |          | 1/30/2026  |           |  | 4,988  |            | 
|Kestra Financial, Inc.                                          |  | L+4.25%              |  |                  | 6.88  | % |          | 6/24/2022  |           |  | 3,556  |            | 
|Minotaur Acquisition, Inc. (d)                                  |  | L+5.00%              |  |                  | 7.50  | % |          | 3/27/2026  |           |  | 3,000  |            | 
|Pivotal Payments Inc.                                           |  | P+3.50%              |  |                  | 9.00  | % |          | 9/26/2025  |           |  | 2,895  |            | 
|Pivotal Payments Inc. (Delayed Draw) (c)                        |  | P+3.50%              |  |                  | 9.00  | % |          | 9/26/2025  |           |  | 839    |            | 
|Zenith Merger Sub, Inc.                                         |  | L+5.25%              |  |                  | 7.85  | % |          | 12/13/2024 |           |  | 4,735  |            | 
|Zenith Merger Sub, Inc. (Delayed Draw) (c)                      |  | L+5.25%              |  |                  | 7.85  | % |          | 12/13/2024 |           |  | 265    |            | 
|                                                                |  |                      |  |                  |       |   |          |            |           |  | 20,278 |            | 
|Beverage, Food & Tobacco                                        |  |                      |  |                  |       |   |          |            |           |  |        |            | 
|Il Fornaio (America) Corporation                                |  | L+6.50%              |  |                  | 9.00  | % |          | 11/10/2022 |           |  | 4,867  |            | 
|SW Ingredients Holdings, LLC                                    |  | L+4.25%              |  |                  | 6.75  | % |          | 7/3/2025   |           |  | 3,722  |            | 
|US Salt, LLC                                                    |  | L+4.75%              |  |                  | 7.23  | % |          | 1/16/2026  |           |  | 2,750  |            | 
|                                                                |  |                      |  |                  |       |   |          |            |           |  | 11,339 |            | 
|Capital Equipment                                               |  |                      |  |                  |       |   |          |            |           |  |        |            | 
|Analogic Corporation                                            |  | L+6.00%              |  |                  | 8.50  | % |          | 6/24/2024  |           |  | 4,975  |            | 
|                                                                |  |                      |  |                  |       |   |          |            |           |  | 4,975  |            | 
|Chemicals, Plastics & Rubber                                    |  |                      |  |                  |       |   |          |            |           |  |        |            | 
|Loparex International B.V.                                      |  | L+4.25%              |  |                  | 6.75  | % |          | 4/11/2025  |           |  | 496    |            | 
|Peach State Labs, LLC                                           |  | L+6.50%              |  |                  | 8.99  | % |          | 6/30/2021  |           |  | 2,843  |            | 
|                                                                |  |                      |  |                  |       |   |          |            |           |  | 3,339  |            | 
|Construction & Building                                         |  |                      |  |                  |       |   |          |            |           |  |        |            | 
|Fastener Acquisition, Inc.                                      |  | L+4.25%              |  |                  | 6.75  | % |          | 3/28/2025  |           |  | 1,320  |            | 
|The Cook & Boardman Group, LLC                                  |  | L+5.75%              |  |                  | 8.24  | % |          | 10/20/2025 |           |  | 2,992  |            | 
|                                                                |  |                      |  |                  |       |   |          |            |           |  | 4,312  |            | 
|Consumer Goods: Durable                                         |  |                      |  |                  |       |   |          |            |           |  |        |            | 
|International Textile Group, Inc.                               |  | L+5.00%              |  |                  | 7.49  | % |          | 5/1/2024   |           |  | 1,840  |            | 
|SSH Group Holdings, Inc.                                        |  | L+4.25%              |  |                  | 6.75  | % |          | 7/30/2025  |           |  | 2,322  |            | 
|                                                                |  |                      |  |                  |       |   |          |            |           |  | 4,162  |            | 
|Consumer Goods: Non-Durable                                     |  |                      |  |                  |       |   |          |            |           |  |        |            | 
|PH Beauty Holdings III, Inc.                                    |  | L+5.00%              |  |                  | 7.50  | % |          | 9/26/2025  |           |  | 2,486  |            | 
|                                                                |  |                      |  |                  |       |   |          |            |           |  | 2,486  |            | 
|Containers, Packaging & Glass                                   |  |                      |  |                  |       |   |          |            |           |  |        |            | 
|Port Townsend Holdings Company, Inc.                            |  | L+4.75%              |  |                  | 7.25  | % |          | 4/3/2024   |           |  | 4,875  |            | 
|PVHC Holding Corp                                               |  | L+4.75%              |  |                  | 7.36  | % |          | 8/5/2024   |           |  | 3,308  |            | 
|PVHC Holding Corp (Delayed Draw) (c)                            |  | L+4.75%              |  |                  | 7.36  | % |          | 8/5/2024   |           |  | 425    |            | 
|                                                                |  |                      |  |                  |       |   |          |            |           |  | 8,608  |            | 
|Energy: Oil & Gas                                               |  |                      |  |                  |       |   |          |            |           |  |        |            | 
|Drilling Info Holdings, Inc.                                    |  | L+4.25%              |  |                  | 6.75  | % |          | 7/30/2025  |           |  | 4,630  |            | 
|Drilling Info Holdings, Inc. (Delayed Draw) (c)                 |  | L+4.25%              |  |                  | 6.75  | % |          | 7/30/2025  |           |  | 16     |            | 
|                                                                |  |                      |  |                  |       |   |          |            |           |  | 4,646  |            | 
|Healthcare & Pharmaceuticals                                    |  |                      |  |                  |       |   |          |            |           |  |        |            | 
|LSCS Holdings, Inc.                                             |  | L+4.25%              |  |                  | 6.75  | % |          | 3/17/2025  |           |  | 2,328  |            | 
|LSCS Holdings, Inc.                                             |  | L+4.25%              |  |                  | 6.85  | % |          | 3/17/2025  |           |  | 601    |            | 
|Radiology Partners, Inc.                                        |  | L+4.75%              |  |                  | 7.37  | % |          | 7/9/2025   |           |  | 4,975  |            | 
|Solara Medical Supplies, LLC                                    |  | L+6.00%              |  |                  | 8.50  | % |          | 2/27/2024  |           |  | 5,557  |            | 
|Solara Medical Supplies, LLC (Delayed Draw) (c)                 |  | L+6.00%              |  |                  | 8.50  | % |          | 2/27/2024  |           |  | 1,071  |            | 
|Solara Medical Supplies, LLC (Revolver) (c)                     |  | L+6.00%              |  |                  | 8.50  | % |          | 2/27/2024  |           |  | 714    |            | 
|                                                                |  |                      |  |                  |       |   |          |            |           |  | 15,246 |            | 
|High Tech Industries                                            |  |                      |  |                  |       |   |          |            |           |  |        |            | 
|AQA Acquisition Holding, Inc.                                   |  | L+4.25%              |  |                  | 6.85  | % |          | 5/24/2023  |           |  | 3,316  |            | 
|Corel Corporation                                               |  | L+5.00%              |  |                  | 7.63  | % |          | 6/4/2024   |           |  | 3,714  |            | 
|Datto, Inc. (d)                                                 |  | L+4.25%              |  |                  | 6.75  | % |          | 4/2/2026   |           |  | 3,333  |            | 
|Gigamon, Inc.                                                   |  | L+4.25%              |  |                  | 6.85  | % |          | 12/27/2024 |           |  | 2,963  |            | 
|Perforce Software, Inc.                                         |  | L+4.50%              |  |                  | 7.00  | % |          | 12/27/2024 |           |  | 1,995  |            | 
|TGG TS Acquisition Company                                      |  | L+6.50%              |  |                  | 9.09  | % |          | 12/12/2025 |           |  | 4,345  |            | 
|                                                                |  |                      |  |                  |       |   |          |            |           |  | 19,666 |            | 
|Hotel, Gaming & Leisure                                         |  |                      |  |                  |       |   |          |            |           |  |        |            | 
|Tait Tower (d)                                                  |  | L+5.00%              |  |                  | 7.50  | % |          | 4/2/2025   |           |  | 4,231  |            | 
|Tait Tower (Revolver) (c) (d)                                   |  | L+5.00%              |  |                  | 7.50  | % |          | 4/2/2025   |           |  | 769    |            | 
|                                                                |  |                      |  |                  |       |   |          |            |           |  | 5,000  |            | 
|Media: Advertising, Printing & Publishing                       |  |                      |  |                  |       |   |          |            |           |  |        |            | 
|Cadent, LLC                                                     |  | L+5.25%              |  |                  | 7.73  | % |          | 9/11/2023  |           |  | 4,975  |            | 
|Cadent, LLC (Revolver) (c)                                      |  | L+5.25%              |  |                  | 7.73  | % |          | 9/11/2023  |           |  | 167    |            | 
|                                                                |  |                      |  |                  |       |   |          |            |           |  | 5,142  |            | 
|Media: Diversified & Production                                 |  |                      |  |                  |       |   |          |            |           |  |        |            | 
|Research Now Group, Inc. and Survey Sampling International, LLC |  | L+5.50%              |  |                  | 8.00  | % |          | 12/20/2024 |           |  | 6,913  |            | 
|                                                                |  |                      |  |                  |       |   |          |            |           |  | 6,913  |            | 
|Services: Business                                              |  |                      |  |                  |       |   |          |            |           |  |        |            | 
|CHA Holdings, Inc.                                              |  | L+4.50%              |  |                  | 7.10  | % |          | 4/10/2025  |           |  | 2,038  |            | 
|CHA Holdings, Inc. (Delayed Draw) (c)                           |  | L+4.50%              |  |                  | 7.10  | % |          | 4/10/2025  |           |  | 446    |            | 
|Eliassen Group, LLC                                             |  | L+4.50%              |  |                  | 7.00  | % |          | 11/5/2024  |           |  | 2,497  |            | 
|Engage2Excel, Inc.                                              |  | L+6.50%              |  |                  | 9.10  | % |          | 3/7/2023   |           |  | 4,331  |            | 
|Engage2Excel, Inc. (Revolver) (c)                               |  | P+5.50%              |  |                  | 11.00 | % |          | 3/7/2023   |           |  | 545    |            | 
|GI Revelation Acquisition LLC                                   |  | L+5.00%              |  |                  | 7.50  | % |          | 4/16/2025  |           |  | 1,390  |            | 
|North Haven CA Holdings, Inc.                                   |  | L+4.50%              |  |                  | 7.10  | % |          | 9/29/2023  |           |  | 4,987  |            | 
|Orion Business Innovation                                       |  | L+4.50%              |  |                  | 7.18  | % |          | 10/21/2024 |           |  | 2,500  |            | 
|Orion Business Innovation                                       |  | L+4.50%              |  |                  | 7.17  | % |          | 10/21/2024 |           |  | 1,931  |            | 
|Orion Business Innovation                                       |  | L+4.50%              |  |                  | 7.19  | % |          | 10/21/2024 |           |  | 565    |            | 
|Output Services Group, Inc.                                     |  | L+4.25%              |  |                  | 6.75  | % |          | 3/27/2024  |           |  | 4,952  |            | 
|SIRVA Worldwide, Inc.                                           |  | L+5.50%              |  |                  | 8.00  | % |          | 8/4/2025   |           |  | 1,987  |            | 
|The Kleinfelder Group, Inc.                                     |  | L+4.75%              |  |                  | 7.16  | % |          | 11/29/2024 |           |  | 2,494  |            | 
|                                                                |  |                      |  |                  |       |   |          |            |           |  | 30,663 |            | 
|Services: Consumer                                              |  |                      |  |                  |       |   |          |            |           |  |        |            | 
|Cambium Learning Group, Inc.                                    |  | L+4.50%              |  |                  | 7.00  | % |          | 12/18/2025 |           |  | 4,988  |            | 
|LegalZoom.com, Inc.                                             |  | L+4.50%              |  |                  | 6.99  | % |          | 11/21/2024 |           |  | 2,742  |            | 
|WeddingWire, Inc.                                               |  | L+4.50%              |  |                  | 6.99  | % |          | 12/19/2025 |           |  | 1,164  |            | 
|                                                                |  |                      |  |                  |       |   |          |            |           |  | 8,894  |            | 
|Telecommunications                                              |  |                      |  |                  |       |   |          |            |           |  |        |            | 
|Intermedia Holdings, Inc.                                       |  | L+6.00%              |  |                  | 8.50  | % |          | 7/21/2025  |           |  | 1,829  |            | 
|Mavenir Systems, Inc.                                           |  | L+6.00%              |  |                  | 8.50  | % |          | 5/8/2025   |           |  | 3,970  |            | 
|                                                                |  |                      |  |                  |       |   |          |            |           |  | 5,799  |            | 
|Utilities: Oil & Gas                                            |  |                      |  |                  |       |   |          |            |           |  |        |            | 
|NGS US Finco, LLC                                               |  | L+4.25%              |  |                  | 6.75  | % |          | 10/1/2025  |           |  | 1,746  |            | 
|                                                                |  |                      |  |                  |       |   |          |            |           |  | 1,746  |            | 
|Wholesale                                                       |  |                      |  |                  |       |   |          |            |           |  |        |            | 
|BMC Acquisition, Inc.                                           |  | L+5.25%              |  |                  | 7.90  | % |          | 12/30/2024 |           |  | 4,937  |            | 
|Halo Buyer, Inc.                                                |  | L+4.50%              |  |                  | 7.00  | % |          | 6/27/2025  |           |  | 3,492  |            | 
|Halo Buyer, Inc.                                                |  | L+4.50%              |  |                  | 7.00  | % |          | 6/27/2025  |           |  | 1,471  |            | 
|                                                                |  |                      |  |                  |       |   |          |            |           |  | 9,900  |            | 
|                                                                |  |                      |  |                  |       |   |          |            |           |  |        |            | 
|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 (“P”) which reset daily, monthly, quarterly or semiannually. We have provided the spread over LIBOR or Prime
and the current contractual rate of interest in effect at March 31, 2019. Certain investments are subject to a LIBOR or Prime
interest rate floor.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (c) | All or a portion of this
commitment was unfunded as of March 31, 2019. Principal reflects the commitment outstanding.
| | --- | ---------------------------------------------------------------------------------------------------------------------



| | (d) | Investment position or
portion thereof unsettled as of March 31, 2019.
| | --- | ----------------------------------------------------------------------



65







MRCC SENIOR LOAN FUND I, LLC

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2018

(in thousands)



|Portfolio Company (a)                                           |  | Spread AboveIndex (b) |  | InterestRate (b) |      |   | Maturity |            | Principal |  |        | Fair Value | 
|--------------------------------------------------------------- |  | --------------------- |  | ---------------- | ---- | - | -------- | ---------- | --------- |  | ------ | ---------- | 
|Non-Controlled/Non-Affiliate Company Investments                |  |                       |  |                  |      |   |          |            |           |  |        |            | 
|Senior Secured Loans                                            |  |                       |  |                  |      |   |          |            |           |  |        |            | 
|Aerospace & Defense                                             |  |                       |  |                  |      |   |          |            |           |  |        |            | 
|IMIA Holdings, Inc.                                             |  | L+4.50%               |  |                  | 7.30 | % |          | 10/28/2024 |           |  | 4,320  |            | 
|IMIA Holdings, Inc. (Revolver) (c)                              |  | L+4.50%               |  |                  | 7.30 | % |          | 10/28/2024 |           |  | 680    |            | 
|MAG Aerospace Industries, Inc.                                  |  | L+4.75%               |  |                  | 7.27 | % |          | 6/6/2025   |           |  | 3,284  |            | 
|Novaria Holding, LLC (d)                                        |  | L+4.75%               |  |                  | 7.27 | % |          | 12/19/2024 |           |  | 4,333  |            | 
|The KEYW Corporation                                            |  | L+4.50%               |  |                  | 6.89 | % |          | 5/8/2024   |           |  | 1,488  |            | 
|Trident Maritime SH, Inc.                                       |  | L+5.50%               |  |                  | 8.30 | % |          | 6/4/2024   |           |  | 4,637  |            | 
|Trident Maritime SH, Inc. (Revolver) (c)                        |  | L+5.50%               |  |                  | 8.30 | % |          | 6/4/2024   |           |  | 340    |            | 
|                                                                |  |                       |  |                  |      |   |          |            |           |  | 19,082 |            | 
|Automotive                                                      |  |                       |  |                  |      |   |          |            |           |  |        |            | 
|Wheel Pros, LLC                                                 |  | L+4.75%               |  |                  | 7.27 | % |          | 4/4/2025   |           |  | 3,980  |            | 
|                                                                |  |                       |  |                  |      |   |          |            |           |  | 3,980  |            | 
|Banking, Finance, Insurance & Real Estate                       |  |                       |  |                  |      |   |          |            |           |  |        |            | 
|Kestra Financial, Inc. (d)                                      |  | L+4.25%               |  |                  | 6.77 | % |          | 6/24/2022  |           |  | 3,564  |            | 
|MTC Intermediate Holdco, Inc.                                   |  | L+4.50%               |  |                  | 7.02 | % |          | 1/30/2023  |           |  | 4,963  |            | 
|Pivotal Payments Inc.                                           |  | P+3.50%               |  |                  | 9.00 | % |          | 9/26/2025  |           |  | 2,902  |            | 
|Pivotal Payments Inc. (Delayed Draw) (c)                        |  | L+4.50%               |  |                  | 6.98 | % |          | 9/26/2025  |           |  | 841    |            | 
|Zenith Merger Sub, Inc.                                         |  | L+5.50%               |  |                  | 8.30 | % |          | 12/13/2023 |           |  | 3,713  |            | 
|                                                                |  |                       |  |                  |      |   |          |            |           |  | 15,983 |            | 
|Beverage, Food & Tobacco                                        |  |                       |  |                  |      |   |          |            |           |  |        |            | 
|Il Fornaio (America) Corporation                                |  | L+6.50%               |  |                  | 9.02 | % |          | 11/10/2022 |           |  | 4,894  |            | 
|SW Ingredients Holdings, LLC                                    |  | L+4.25%               |  |                  | 7.05 | % |          | 7/3/2025   |           |  | 3,731  |            | 
|US Salt, LLC                                                    |  | L+4.75%               |  |                  | 7.27 | % |          | 11/30/2023 |           |  | 3,474  |            | 
|                                                                |  |                       |  |                  |      |   |          |            |           |  | 12,099 |            | 
|Capital Equipment                                               |  |                       |  |                  |      |   |          |            |           |  |        |            | 
|Analogic Corporation                                            |  | L+6.00%               |  |                  | 8.52 | % |          | 6/24/2024  |           |  | 4,988  |            | 
|                                                                |  |                       |  |                  |      |   |          |            |           |  | 4,988  |            | 
|Chemicals, Plastics & Rubber                                    |  |                       |  |                  |      |   |          |            |           |  |        |            | 
|Loparex International B.V.                                      |  | L+4.25%               |  |                  | 7.05 | % |          | 4/11/2025  |           |  | 498    |            | 
|Peach State Labs, LLC                                           |  | L+6.50%               |  |                  | 8.85 | % |          | 6/30/2021  |           |  | 2,850  |            | 
|                                                                |  |                       |  |                  |      |   |          |            |           |  | 3,348  |            | 
|Construction & Building                                         |  |                       |  |                  |      |   |          |            |           |  |        |            | 
|Fastener Acquisition, Inc.                                      |  | L+4.25%               |  |                  | 7.05 | % |          | 3/28/2025  |           |  | 1,323  |            | 
|The Cook & Boardman Group, LLC                                  |  | L+5.75%               |  |                  | 8.55 | % |          | 10/20/2025 |           |  | 3,000  |            | 
|                                                                |  |                       |  |                  |      |   |          |            |           |  | 4,323  |            | 
|Consumer Goods: Durable                                         |  |                       |  |                  |      |   |          |            |           |  |        |            | 
|International Textile Group, Inc.                               |  | L+5.00%               |  |                  | 7.35 | % |          | 5/1/2024   |           |  | 1,852  |            | 
|SSH Group Holdings, Inc.                                        |  | L+4.25%               |  |                  | 6.77 | % |          | 7/30/2025  |           |  | 2,327  |            | 
|                                                                |  |                       |  |                  |      |   |          |            |           |  | 4,179  |            | 
|Consumer Goods: Non-Durable                                     |  |                       |  |                  |      |   |          |            |           |  |        |            | 
|PH Beauty Holdings III, Inc.                                    |  | L+5.00%               |  |                  | 7.52 | % |          | 9/26/2025  |           |  | 1,995  |            | 
|                                                                |  |                       |  |                  |      |   |          |            |           |  | 1,995  |            | 
|Containers, Packaging & Glass                                   |  |                       |  |                  |      |   |          |            |           |  |        |            | 
|Port Townsend Holdings Company, Inc.                            |  | L+4.75%               |  |                  | 7.27 | % |          | 4/3/2024   |           |  | 4,887  |            | 
|PVHC Holding Corp                                               |  | L+4.75%               |  |                  | 7.57 | % |          | 8/5/2024   |           |  | 3,317  |            | 
|PVHC Holding Corp (Delayed Draw) (c)                            |  | L+4.75%               |  |                  | 7.57 | % |          | 8/5/2024   |           |  | 425    |            | 
|                                                                |  |                       |  |                  |      |   |          |            |           |  | 8,629  |            | 
|Energy: Oil & Gas                                               |  |                       |  |                  |      |   |          |            |           |  |        |            | 
|Drilling Info Holdings, Inc.                                    |  | L+4.25%               |  |                  | 6.77 | % |          | 7/30/2025  |           |  | 4,307  |            | 
|Drilling Info Holdings, Inc. (Delayed Draw) (c)                 |  | L+4.25%               |  |                  | 6.77 | % |          | 7/30/2025  |           |  | 350    |            | 
|                                                                |  |                       |  |                  |      |   |          |            |           |  | 4,657  |            | 
|Healthcare & Pharmaceuticals                                    |  |                       |  |                  |      |   |          |            |           |  |        |            | 
|LSCS Holdings, Inc.                                             |  | L+4.25%               |  |                  | 6.77 | % |          | 3/17/2025  |           |  | 2,328  |            | 
|LSCS Holdings, Inc.                                             |  | L+4.25%               |  |                  | 6.96 | % |          | 3/17/2025  |           |  | 601    |            | 
|Radiology Partners, Inc.                                        |  | L+4.25%               |  |                  | 6.87 | % |          | 7/9/2025   |           |  | 4,988  |            | 
|Solara Medical Supplies, LLC                                    |  | L+6.00%               |  |                  | 8.52 | % |          | 5/31/2023  |           |  | 5,571  |            | 
|Solara Medical Supplies, LLC (Delayed Draw) (c)                 |  | L+6.00%               |  |                  | 8.52 | % |          | 5/31/2023  |           |  | 1,071  |            | 
|Solara Medical Supplies, LLC (Revolver) (c)                     |  | L+6.00%               |  |                  | 8.52 | % |          | 5/31/2023  |           |  | 714    |            | 
|                                                                |  |                       |  |                  |      |   |          |            |           |  | 15,273 |            | 
|High Tech Industries                                            |  |                       |  |                  |      |   |          |            |           |  |        |            | 
|AQA Acquisition Holding, Inc.                                   |  | L+4.25%               |  |                  | 7.05 | % |          | 5/24/2023  |           |  | 3,325  |            | 
|Corel Corporation (d)                                           |  | L+5.00%               |  |                  | 7.71 | % |          | 6/4/2024   |           |  | 3,786  |            | 
|Gigamon, Inc.                                                   |  | L+4.25%               |  |                  | 7.05 | % |          | 12/27/2024 |           |  | 2,970  |            | 
|TGG TS Acquisition Company (d)                                  |  | L+6.50%               |  |                  | 9.02 | % |          | 12/12/2025 |           |  | 4,400  |            | 
|                                                                |  |                       |  |                  |      |   |          |            |           |  | 14,481 |            | 
|Media: Advertising, Printing & Publishing                       |  |                       |  |                  |      |   |          |            |           |  |        |            | 
|Cadent, LLC                                                     |  | L+5.25%               |  |                  | 7.71 | % |          | 9/11/2023  |           |  | 4,988  |            | 
|Cadent, LLC (Revolver) (c)                                      |  | L+5.25%               |  |                  | 7.71 | % |          | 9/11/2023  |           |  | 167    |            | 
|                                                                |  |                       |  |                  |      |   |          |            |           |  | 5,155  |            | 
|Media: Diversified & Production                                 |  |                       |  |                  |      |   |          |            |           |  |        |            | 
|Research Now Group, Inc. and Survey Sampling International, LLC |  | L+5.50%               |  |                  | 8.02 | % |          | 12/20/2024 |           |  | 6,930  |            | 
|                                                                |  |                       |  |                  |      |   |          |            |           |  | 6,930  |            | 
|Services: Business                                              |  |                       |  |                  |      |   |          |            |           |  |        |            | 
|CHA Holdings, Inc.                                              |  | L+4.50%               |  |                  | 7.30 | % |          | 4/10/2025  |           |  | 2,043  |            | 
|CHA Holdings, Inc. (Delayed Draw) (c)                           |  | L+4.50%               |  |                  | 7.30 | % |          | 4/10/2025  |           |  | 446    |            | 
|Eliassen Group, LLC                                             |  | L+4.50%               |  |                  | 7.02 | % |          | 11/5/2024  |           |  | 2,500  |            | 
|Engage2Excel, Inc.                                              |  | L+6.50%               |  |                  | 8.93 | % |          | 3/7/2023   |           |  | 4,342  |            | 
|Engage2Excel, Inc. (Revolver) (c)                               |  | L+6.50%               |  |                  | 8.95 | % |          | 3/7/2023   |           |  | 545    |            | 
|GI Revelation Acquisition LLC                                   |  | L+5.00%               |  |                  | 7.52 | % |          | 4/16/2025  |           |  | 1,393  |            | 
|North Haven CA Holdings, Inc.                                   |  | L+4.50%               |  |                  | 7.02 | % |          | 9/29/2023  |           |  | 5,000  |            | 
|Orion Business Innovation                                       |  | L+4.50%               |  |                  | 7.17 | % |          | 10/21/2024 |           |  | 1,931  |            | 
|Orion Business Innovation (Delayed Draw) (c)                    |  | L+4.50%               |  |                  | 7.17 | % |          | 10/21/2024 |           |  | 565    |            | 
|Output Services Group, Inc.                                     |  | L+4.25%               |  |                  | 6.77 | % |          | 3/27/2024  |           |  | 4,965  |            | 
|SIRVA Worldwide, Inc.                                           |  | L+5.50%               |  |                  | 8.02 | % |          | 8/4/2025   |           |  | 2,000  |            | 
|The Kleinfelder Group, Inc. (d)                                 |  | L+4.75%               |  |                  | 7.27 | % |          | 11/29/2024 |           |  | 2,500  |            | 
|                                                                |  |                       |  |                  |      |   |          |            |           |  | 28,230 |            | 
|Services: Consumer                                              |  |                       |  |                  |      |   |          |            |           |  |        |            | 
|Cambium Learning Group, Inc. (d)                                |  | L+4.50%               |  |                  | 7.02 | % |          | 12/18/2025 |           |  | 5,000  |            | 
|LegalZoom.com, Inc.                                             |  | L+4.50%               |  |                  | 7.00 | % |          | 11/21/2024 |           |  | 2,749  |            | 
|WeddingWire, Inc. (d)                                           |  | L+4.50%               |  |                  | 7.02 | % |          | 12/19/2025 |           |  | 1,167  |            | 
|                                                                |  |                       |  |                  |      |   |          |            |           |  | 8,916  |            | 
|Telecommunications                                              |  |                       |  |                  |      |   |          |            |           |  |        |            | 
|Intermedia Holdings, Inc.                                       |  | L+6.00%               |  |                  | 8.52 | % |          | 7/21/2025  |           |  | 1,833  |            | 
|Mavenir Systems, Inc.                                           |  | L+6.00%               |  |                  | 8.39 | % |          | 5/8/2025   |           |  | 3,980  |            | 
|                                                                |  |                       |  |                  |      |   |          |            |           |  | 5,813  |            | 
|Utilities: Oil & Gas                                            |  |                       |  |                  |      |   |          |            |           |  |        |            | 
|NGS US Finco, LLC                                               |  | L+4.25%               |  |                  | 6.76 | % |          | 10/1/2025  |           |  | 1,750  |            | 
|                                                                |  |                       |  |                  |      |   |          |            |           |  | 1,750  |            | 
|Wholesale                                                       |  |                       |  |                  |      |   |          |            |           |  |        |            | 
|BMC Acquisition, Inc.                                           |  | L+5.25%               |  |                  | 8.13 | % |          | 12/30/2024 |           |  | 4,950  |            | 
|Halo Buyer, Inc.                                                |  | L+4.50%               |  |                  | 7.02 | % |          | 6/27/2025  |           |  | 3,501  |            | 
|Halo Buyer, Inc.                                                |  | L+4.50%               |  |                  | 7.02 | % |          | 6/27/2025  |           |  | 1,474  |            | 
|                                                                |  |                       |  |                  |      |   |          |            |           |  | 9,925  |            | 
|                                                                |  |                       |  |                  |      |   |          |            |           |  |        |            | 
|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 (“P”) which reset daily, monthly, quarterly or semiannually. We have provided the spread over LIBOR or Prime and the current contractual rate of interest in effect at December 31, 2018. Certain investments are subject to a LIBOR or Prime interest rate floor.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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



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



66







Below is certain summarized financial information
for SLF as of March 31, 2019 and December 31, 2018 and for the three months ended March 31, 2019 and 2018 (in thousands):



|                                                      |  | March 31, 2019 |         |   | December 31, 2018 |  
|----------------------------------------------------- |  | -------------- | ------- | - | ----------------- | -
|                                                      |  | (unaudited)    |         |   |                   |  
|Assets                                                |  |                |         |   |                   |  
|Investments, at fair value                            |  | $              | 189,648 |   |                   | $
|Cash                                                  |  |                | 477     |   |                   |  
|Restricted cash                                       |  |                | 8,742   |   |                   |  
|Interest receivable                                   |  |                | 566     |   |                   |  
|Other assets                                          |  |                | —       |   |                   |  
|Total assets                                          |  | $              | 199,433 |   |                   | $
|Liabilities                                           |  |                |         |   |                   |  
|Revolving credit facility                             |  | $              | 121,037 |   |                   | $
|Less: Unamortized deferred financing costs            |  |                | (1,736  | ) |                   |  
|Total debt, less unamortized deferred financing costs |  |                | 119,301 |   |                   |  
|Payable for open trades                               |  |                | 15,290  |   |                   |  
|Interest payable                                      |  |                | 529     |   |                   |  
|Accounts payable and accrued expenses                 |  |                | 248     |   |                   |  
|Total liabilities                                     |  |                | 135,368 |   |                   |  
|Members’ capital                                      |  |                | 64,065  |   |                   |  
|Total liabilities and members’ capital                |  | $              | 199,433 |   |                   | $



|                                            |  | Three months ended March 31, |      
|------------------------------------------- |  | ---------------------------- | -----
|                                            |  | 2019                         |      
|                                            |  | (unaudited)                  |      
|Investment income:                          |  |                              |      
|Interest income                             |  | $                            | 3,448
|Total investment income                     |  |                              | 3,448
|Expenses:                                   |  |                              |      
|Interest and other debt financing expenses  |  |                              | 1,598
|Organizational costs                        |  |                              | —    
|Professional fees                           |  |                              | 176  
|Total expenses                              |  |                              | 1,774
|Net investment income (loss)                |  |                              | 1,674
|Net gain (loss):                            |  |                              |      
|Net change in unrealized gain (loss)        |  |                              | 512  
|Net gain (loss)                             |  |                              | 512  
|Net increase (decrease) in members’ capital |  | $                            | 2,186



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.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | SLF has an Administration Agreement with MC Management to provide SLF with certain loan
    servicing and administrative functions. SLF may reimburse MC Management for its allocable share of overhead and other expenses
    incurred by MC Management. See Note 3 to our consolidated financial statements and “Liquidity and Capital Resources
    — MRCC Senior Loan Fund I, LLC” 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.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



67







| | · | 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.



Commitments and Contingencies and Off-Balance Sheet Arrangements



Commitments and Contingencies



As of March 31, 2019, and December 31,
2018, we had outstanding commitments to fund investments, excluding investments in SLF, totaling $57.6 million and
$56.0 million, respectively. As of March 31, 2019, and December 31, 2018, we had unfunded commitments to SLF of $18.7 million
and $22.8 million, respectively, that may be contributed primarily for the purpose of funding new investments approved by the
SLF investment committee. Drawdowns of the commitments to SLF require authorization from one of our representatives on
SLF’s board of managers. 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 United States 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 has been a significant amount
of capital raised over the past several years dedicated to middle market lending which has increased competitive pressure in
the BDC and investment company marketplace for senior and subordinated debt which could result in lower yields and weaker
financial covenants for new assets.



Pricing and Deal Structures: We
believe that the volatility in global markets over the last several years and current macroeconomic issues including
changes in bank regulations for middle-market banks 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.



68







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. 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 the service has been completed.



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 LLC and 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.
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.



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;
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | 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;
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



69







| | · | to the extent an independent valuation firm is not engaged to conduct an investment appraisal on an investment for which market quotations are not readily available, the investment will be valued by the MC Advisors investment professional responsible for the credit monitoring;
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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



| | · | 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 generally uses the income 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, 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 or the proceeds that would be received in a liquidation analysis. This liquidation
analysis may also include probability weighting of alternative outcomes. We generally consider our 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 and
is otherwise not deemed to be impaired. In determining the fair value of the performing debt, we consider fluctuations in current
interest rates, 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 debt instrument.



Under the income 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 income 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.



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 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 net change in unrealized gain (loss) on foreign currency and other transactions.



70







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 each of the three months ended
March 31, 2019 and 2018, we did not have any further reductions in accrued capital gains incentive fees as they were already
at zero, primarily as a result of accumulated realized and unrealized losses on the portfolio.



New Accounting Pronouncements



In August 2018, the FASB issued ASU 2018-13,
Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement(“ASU 2018-13”). The primary objective of ASU 2018-13 is to improve the effectiveness of the disclosure requirements
for fair value measurements in the notes to the financial statements. ASU 2018-13 is effective for interim and annual reporting
periods beginning after December 15, 2019, although early adoption is permitted. We are currently evaluating the impact these changes
will have on our consolidated financial statements and disclosures.



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 will effectively convert
the loans to fixed rate loans in the event interest rates decrease. In addition, our revolving credit facility has a floating interest
rate provision, whereas our SBA debentures and the 2023 Notes have fixed interest rates until maturity. 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, 2019 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 (in thousands):



|                         |  | Increase
        (decrease) in |        |   | Increase
        (decrease) in |   |       | Net increase
        (decrease) in net | 
|------------------------ |  | ------------------------------ | ------ | - | ------------------------------ | - | ----- | -------------------------------------- | 
|Change in Interest Rates |  | interest income                |        |   | interest expense               |   |       | investment income                      | 
|Down 25 basis points     |  | $                              | (1,339 | ) |                                | $ | (366  | )                                      | 
|Up 100 basis points      |  |                                | 5,244  |   |                                |   | 1,463 |                                        | 
|Up 200 basis points      |  |                                | 10,653 |   |                                |   | 2,927 |                                        | 
|Up 300 basis points      |  |                                | 16,061 |   |                                |   | 4,390 |                                        | 



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.



71







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, 2019, we have non-U.S. dollar borrowings denominated in Great Britain pounds of £14.8 million ($19.3 million
U.S. dollars) outstanding under the revolving credit facility. We may also enter into foreign currency forward contracts to mitigate
foreign currency exposure. As of March 31, 2019 we had foreign currency forward contracts in place for £2.2 million associated
with future interest payments on certain investments.



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 Rules 13a-15(f) and 15d-15(f) of the Exchange Act) during the three months ended March
31, 2019 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.



72







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



In addition to the other information set forth in this report, you should carefully consider the risk
factors disclosed in our Annual Report on Form 10-K for the year ended December 31, 2018 filed with the SEC on March 5, 2019, which
could materially affect our business, financial condition and/or operating results. The risks described in our Annual Report on
Form 10-K are not the only risks facing us. Additional risks and uncertainties not currently known to us or that we currently deem
to be immaterial also may materially and adversely affect our business, financial condition and/or operating results. Other than
as set forth below, there have been no material changes during the three months ended March 31, 2019 to the risk factors discussed
in Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2018.



Recently-enacted legislation allows us to incur additional
leverage, which could increase the risk of investing in us.



The 1940 Act generally prohibits us from
incurring indebtedness unless immediately after such borrowing we have an asset coverage for total borrowings of at least 200%
(i.e., the amount of debt may not exceed 50% of the value of our total assets). However, on March 23, 2018, the Small Business
Credit Availability Act (the “SBCAA”) was signed into law, which included various changes to regulations under the
federal securities laws that impact BDCs. The SBCAA amended the 1940 Act to allow BDCs to decrease their asset coverage requirement
from 200% to 150% (i.e. the amount of debt may not exceed 66.7% of the value of our total assets), if certain requirements are
met. Under the SBCAA, BDCs are allowed to reduce their asset coverage requirement to 150%, and thereby increase leverage capacity,
if shareholders representing at least a majority of the votes cast, when quorum is met, approve a proposal to do so. If a BDC receives
stockholder approval, it would be allowed to reduce its asset coverage requirement to 150% on the first day after such approval.
Alternatively, the SBCAA allows the majority of a BDCs independent directors to approve the reduction in its asset coverage requirement
to 150%, and such approval would become effective after one year. In either case, a BDC would be required to make certain disclosures
on its website and in SEC filings regarding, among other things, the receipt of approval to reduce its asset coverage requirement
to 150%, its leverage capacity and usage, and risks related to leverage.



On March 27, 2018, our board of directors
unanimously approved the application of the modified asset coverage requirements set forth in Section 61(a)(2) of the 1940 Act,
as amended by the SBCAA. On March 27, 2018, our board of directors also recommended the submission of a proposal for stockholders
to approve the application of the 150% minimum asset coverage requirements at our annual meeting of stockholders held on June 20,
2018. At the annual meeting, our stockholders approved this proposal, and we became subject to the 150% minimum asset coverage
ratio, effective June 21, 2018.



Leverage is generally considered a speculative
investment technique and increases the risk of investing in our securities. Leverage magnifies the potential for loss on investments
in our indebtedness and on invested equity capital. As we use leverage to partially finance our investments, you will experience
increased risks of investing in our securities. If the value of our assets increases, then leveraging would cause the net asset
value attributable to our common stock to increase more sharply than it would have had we not leveraged. Conversely, if the value
of our assets decreases, leveraging would cause net asset value to decline more sharply than it otherwise would have had we not
leveraged our business. Similarly, any increase in our income in excess of interest payable on the borrowed funds would cause
our net investment income to increase more than it would without the leverage, while any decrease in our income would cause net
investment income to decline more sharply than it would have had we not borrowed. Such a decline could negatively affect our ability
to pay distributions, scheduled debt payments or other payments related to our securities. The effects of leverage would cause
any decrease in net asset value for any losses to be greater than any increase in net asset value for any corresponding gains.
If we incur additional leverage, you will experience increased risks of investing in our common stock.



We maintain a revolving credit facility and
use other borrowed funds to make investments or fund our business operations, which exposes us to risks typically associated with
leverage and increases the risk of investing in us.



We maintain a revolving credit
facility, have issued debt securities and may borrow money, including through the issuance of additional debt securities or preferred
stock, to leverage our capital structure, which is generally considered a speculative investment technique. As a result:



| | • | our
common stock is exposed to an increased risk of loss because a decrease in the value of our investments would have a greater negative
impact on the value of our common stock than if we did not use leverage;
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | • | if
we do not appropriately match the assets and liabilities of our business, adverse changes in interest rates could reduce or eliminate
the incremental income we make with the proceeds of any leverage;
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | • | our
ability to pay distributions on our common stock may be restricted if our asset coverage ratio, as provided in the 1940 Act, is
not at least 150% and any amounts used to service indebtedness or preferred stock would not be available for such distributions;
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | • | any
credit facility is subject to periodic renewal by its lenders, whose continued participation cannot be guaranteed;
| | - | ----------------------------------------------------------------------------------------------------------------------



| | • | our
revolving credit facility with ING Capital LLC, as agent, is, and any other credit facility we may enter into would be, subject
to various financial and operating covenants, including that our portfolio of investments satisfies certain eligibility and concentration
limits as well as valuation methodologies;
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | • | such
securities would be governed by an indenture or other instrument containing covenants restricting our operating flexibility;
| | - | ---------------------------------------------------------------------------------------------------------------------------------



| | • | we
bear the cost of issuing and paying interest or distributions on such securities, which costs are entirely borne by our common
stockholders; and
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------



| | • | any
convertible or exchangeable securities that we issue may have rights, preferences and privileges more favorable than those of
our common stock.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------



The following table illustrates
the effect of leverage on returns from an investment in our common stock assuming various annual returns, net of expenses. The
calculations in the table below are hypothetical and actual returns may be higher or lower than those appearing in the table below.



|                                                  |  | Assumed Return on Our Portfolio (Net of Expenses) (1) |       
|------------------------------------------------- |  | ----------------------------------------------------- | ------
|                                                  |  | -10%                                                  |       
|Corresponding return to common stockholder (2)(3) |  |                                                       | -28.11








| | (1) | The assumed return on our portfolio is required by regulation of the SEC to assist investors in understanding the effects of leverage and is not a prediction of, and does not represent, our projected or actual performance.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (2) | Assumes $579.8 million in
    total assets, $321.0 million in debt outstanding, of which $205.0 million is senior securities outstanding, $258.8 million
    in     net assets and an average cost of funds of 4.60%, which was the weighted average interest rate of borrowing on our
    revolving     credit facility, SBA debentures and 2023 Notes as of December 31, 2018. The interest rate on our revolving
    credit     facility is a     variable rate. Actual interest payments may be different.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (3) | In order for us to cover
    our annual interest payments on indebtedness, we must achieve annual returns on our December 31, 2018 total portfolio assets
    of at least 2.55%.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 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.



73







Item 6. Exhibits



|Exhibit |  |                                                                                                                                                                                                                                                                       
|------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Number  |  | Description of Document                                                                                                                                                                                                                                               
|        |  |                                                                                                                                                                                                                                                                       
|3.1     |  | Amended and Restated Articles of Incorporation of Monroe Capital Corporation (Incorporated by reference to Exhibit (a)(1) of the Registrant’s Pre-Effective Amendment No. 8 to the Registration Statement on Form N-2 (File No. 333-172601) filed on October 18, 2012)
|        |  |                                                                                                                                                                                                                                                                       
|3.2     |  | Bylaws of Monroe Capital Corporation (Incorporated by reference to Exhibit (b)(1) of the Registrant’s Pre-Effective Amendment No. 8 to the Registration Statement on Form N-2 (File No. 333-172601) filed on October 18, 2012)                                        
|        |  |                                                                                                                                                                                                                                                                       
|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                                                                                                                                                



74







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 7, 2019 | By | /s/ Theodore L. Koenig                                        
|----------------- | -- | --------------------------------------------------------------
|                  |    | Theodore L. Koenig                                            
|                  |    | Chairman, Chief Executive Officer and Director                
|                  |    | (Principal Executive Officer)                                 
|                  |    | Monroe Capital Corporation                                    
|                  |    |                                                               
|Date: May 7, 2019 | By | /s/ Aaron D. Peck                                             
|                  |    | Aaron D. Peck                                                 
|                  |    | Chief Financial Officer, Chief Investment Officer and Director
|                  |    | (Principal Financial and Accounting Officer)                  
|                  |    | Monroe Capital Corporation                                    



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