Apollo's MFIC Slashes Dividend, Marks Down Assets, Announces $100M Buyback - Apollo Global Management (NYSE:APO), MidCap Financial (NASDAQ:MFIC)

Core Viewpoint - Apollo Global Management's private credit fund, MidCap Financial Investment Corp., is facing challenges in its loan portfolio, leading to a reduction in its dividend and a re-evaluation of asset values [1] Group 1: Dividend and Asset Valuation - MidCap Financial has reduced its quarterly dividend from 38 cents to 31 cents per share [2] - The company reported a roughly 3% markdown in its asset base, attributed to underperforming legacy loans and a changing interest rate environment [2] - A new $100 million stock repurchase plan has been authorized by the Board of Directors [2] Group 2: Portfolio Composition and Risks - As of December 31, 2025, software represents only 11.4% of MidCap Financial's portfolio at fair value, indicating lower exposure compared to the broader BDC industry [3] - The company emphasizes a portfolio resilient to AI-related risks, focusing on businesses with long-standing customer relationships [3] Group 3: Market Performance and Investor Sentiment - MidCap Financial's stock has decreased by 8.5% on Friday and 14.5% this month, reflecting investor concerns [4] - Apollo's stock has also declined by 20% this month, marking its worst performance since 2011 [4]