MFIC experienced substantially higher interest expenses that compressed profitability despite maintaining a stable debt growth trajectory.

The business development company saw interest expenses roughly double while net income declined by over one-third, indicating either rising interest rates on floating-rate debt or increased borrowing costs impacting portfolio returns. The portfolio composition shows active turnover with multiple new investments across healthcare, technology, and consumer sectors, suggesting ongoing deployment of capital but at potentially higher financing costs.

Interest expenses substantially increased from $55.0M to $104.2M, likely reflecting higher SOFR rates given the company's floating-rate debt structure, while net income fell 36% to $63.2M as financing costs outpaced investment returns. Total debt grew modestly from $1.8B to $2.0B, and cash increased 32% to $98.2M, suggesting the company maintained liquidity while managing through a higher rate environment. The overall picture reflects a BDC navigating interest rate headwinds that compressed net investment income despite continued capital deployment activity.

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