Apollo Considers $3 Billion MFIC Sale, as Loan Defaults Climb

Apollo Global Management is in discussions to sell its publicly traded business development company, MidCap Financial Investment Corp (MFIC). The potential deal values the fund at approximately $3 billion.

Loan defaults within the portfolio rose to 5.3% in the first quarter of 2026. This represents an increase from 3.9% at the end of 2025. The fund reported a net loss of $61 million for the quarter.

MFIC shares currently trade at a significant discount to their net asset value. A potential buyer would likely be another business development company using its own shares for the acquisition.