MFIC reduced its quarterly dividend by 18% to $0.31 per share, aiming to bolster its capital position after mounting loan impairments. The cut reflects the board’s response to increased credit risk and the need for greater liquidity.

Recent losses were driven by several mid-market software companies in MFIC’s loan book that faced compressed valuations and covenant breaches. This concentration in technology sector credits highlighted the BDC’s exposure to a segment under stress.

Apollo CEO Marc Rowan warned that the $1.8 trillion private-credit market is entering a prolonged shakeout, emphasizing the importance of prudent underwriting and risk management. Elevated default rates and sector-specific stress have pressured asset managers across the industry.