MidCap Apollo Institutional Private Lending 10-Q: NAV $22.29 at Sep 30, 2026, Debt 1.48 Times Net Assets

What the vehicle is, and what it is not

The fund is a Delaware statutory trust organized on November 6, 2023. It operated as a private fund under Section 3(c)(7) of the Investment Company Act of 1940 until it elected to be a BDC on March 15, 2024, and it was called Middle Market Apollo Institutional Private Lending until a name change on March 17, 2025. It is externally managed by Apollo Credit Management, LLC, which the 10-Q describes as an affiliate of Apollo Global Management, Inc. It elected to be taxed as a regulated investment company (RIC), which means it generally passes income through to holders.

On the 10-K’s wording, “there is not, and will likely not be, a secondary market at any time prior to a public offering and listing of our shares on a national securities exchange.” That is the practical answer to “can I hold it”: only through a private placement, and without a way to sell.

How it differs from MFIC. MidCap Financial Investment Corporation (Nasdaq: MFIC) is a different company. It is a separate public BDC with its own CIK (1278752), its own shareholders and its own NAV; see our page on MFIC’s dividend, NAV and Apollo fees and, for the October 26, 2026 merger agreement with Ares Capital, our Ares Capital and MFIC deal page. The two share a platform and an Apollo-affiliated adviser: the Form 10 lists MFIC among the “Apollo BDCs” that co-invest alongside the fund, and the 10-K says MFIC is “a public business development company managed by an affiliate of the Adviser.” The shared name is the only thing that makes this fund look like MFIC. The 10-Q we read for September 30, 2026 does not mention MFIC or the Ares agreement, so nothing on this page changes with that deal. The other Apollo BDC named in the Form 10 is the non-traded Apollo Debt Solutions BDC, covered in our redemptions page; it is open to retail through advisers, which this fund is not.

NAV per share, six readings

The nine-month bridge in the financial highlights is $23.24 at the start, plus NII of $1.96, minus $1.60 of net realized and unrealized loss, minus $1.31 of distributions, equals $22.29. Total return on NAV for the period is 1.66%, not annualized, against 6.27% a year earlier. The loss is credit-driven in the 10-Q’s own account: unrealized losses came from “credit-related weakness in a limited number of positions, including Midwest Vision, LAV Gear Holdings INC and Congruex”, and net change in unrealized gains (losses) was a loss of $22,279 thousand for the nine months. The third-quarter recovery from $21.95 to $22.29 came with a smaller unrealized loss of $1,377 thousand and the reversal of earlier markdowns on the restructured borrower.

Portfolio: 159 companies, first lien, floating

By industry heading in the schedule of investments, health care providers and services is the largest, at about 13.8% of fair value, followed by commercial services and supplies (6.2%) and diversified consumer services (5.3%). This is our tally of the schedule: it captures $925.6 million of the $928.0 million total, so treat it as approximate. No one borrower is large; the point of a 159-name book is that no single loss moves NAV much, and also that a reader cannot judge it from a handful of positions.

Credit: non-accruals and realized losses

The 10-Q attributes the rise to five portfolio companies placed on non-accrual during the nine months and says the higher share of non-accruals reduced interest income. Total investment income was $68,185 thousand for the nine months against $74,688 thousand a year earlier (down 8.7%, our arithmetic), with the yield on the debt portfolio falling and a larger average debt book only partly offsetting it. PIK (interest added to the loan balance) is small here, $1,696 thousand or 2.5% of nine-month income (our arithmetic), which is one clean point against the pattern seen at other private BDCs. A gap between cost and fair value of 4.4% (our arithmetic) is the market’s, or the Adviser’s, measure of what the loans are worth now.

Leverage and the credit facility

The fund has one credit facility, the AP Leaf Secured Credit Facility, borrowed by a subsidiary, AP Leaf, with Wells Fargo as administrative agent. The Third Amendment of March 6, 2025 raised the maximum to $750,000 thousand, cut the spread to 2.05% a year and moved the maturity to five years after that date (March 2030 on our reading). Availability depends on a borrowing base.

At September 30, 2026, $568,168 thousand of the $750,000 thousand was drawn, leaving $181,832 thousand of nominal room (our arithmetic, subject to the borrowing base). The 150% floor is the limit the 10-K cites for a BDC to issue debt. At 167.4% the fund is 17.4 points above it. Interest and other debt expenses were $9,032 thousand in the third quarter and $26,498 thousand for nine months; the weighted average annualized interest cost was 5.98% and the total annualized cost, with issuance costs, 6.28%.

Worked example (our arithmetic, illustrative, not the fund’s result). With $100 of equity and 1.48 times in debt, $248 is invested. At the 9.2% yield on the total portfolio that earns $22.82; the debt at 6.28% costs $9.29, leaving $13.53 before fees, other expenses and credit losses. The same leverage works the other way: a 5% fall in the value of the $248 is $12.40, which is 12.4% of the equity.

Fees, waivers and who gets paid first

Nine-month management fees were $2,898 thousand and incentive fees $4,305 thousand before waivers, $7,203 thousand together; waivers were $1,360 thousand and $2,033 thousand. The third quarter includes a catch-up: $1,199 thousand of waivers related to the quarter ended June 30, 2026 were booked in the third quarter. The incentive fee is on income before credit losses, which is why the Adviser earned $4,305 thousand of it in a nine-month period when NAV fell. The fund’s own risk factor says valuation can create a conflict, because fees depend on values the Adviser sets. The 10-Q puts the total expense ratio, annualized, at 12.06% of average net assets with waivers and 13.24% without, most of it interest.

Income and distributions

The first three add to $1.8977 a share declared in 2026, against $2.2883 for the same stretch of 2025 (down 17.1%, our arithmetic). The third was recorded on October 6, 2026, after quarter-end, which is why the statement of changes in net assets shows no third-quarter distribution and only $22,399 thousand for the nine months; the $10,123 thousand is in the fourth quarter. NII was $12,389 thousand in the third quarter ($0.72 a share) and $33,526 thousand for nine months ($1.96 a share), against $39,105 thousand a year earlier. The annualized ratio of NII to average net assets was 11.66%, against 13.61%. The board says there can be no assurance it will keep declaring $0.8154.

What a reader can do with this

• Use it as a reference for the private-BDC group. This is what a mature, first lien-only private BDC from a large manager looks like in the filings: 159 names, 100% floating, one bank facility, fee waivers, and NAV drifting down with non-accruals. Set it beside 5C Lending Partners Corp, Third Point Private Capital Partners and the non-traded BDC list, and read our explainer on what a BDC is first if the terms are new.
• If you hold shares or a commitment through an institution or family office: compare the NAV on your statement with $22.29 at September 30, 2026; compare your drawdown price with the NAV at the drawdown date; and ask how much of the uncalled $85,123 thousand of the fund’s commitments applies to you.
• Watch five lines in the 10-K for 2026: debt over net assets (1.48 times), asset coverage (167.4%), non-accruals (3.8% at cost), the fee waivers (to June 30, 2027) and distributions against NII.
• If you meant MFIC: that is a listed stock with a price, a dividend and a merger agreement; use the MFIC pages linked above.
• Taxes: the fund intends to be a RIC, so distributions are taxable to holders as its year-end reporting describes. See our guides to estimated tax payments for REIT, BDC and K-1 income and 1099-DIV due dates.

If a meaningful share of your savings sits in a private BDC with no way to sell on a schedule, a conversation with a qualified adviser about how it fits the rest of your holdings may be worth having.

FAQ

All figures are from SEC EDGAR filings of MidCap Apollo Institutional Private Lending (CIK 2006758) read on November 7, 2026: the Forms 10-Q for September 30, 2026 (accession 0001193125-26-451806), June 30, 2026 (0001193125-26-349327), March 31, 2026 (0001193125-26-214580) and September 30, 2025 (0001193125-25-274253), the Form 10-K for 2025 (0001193125-26-104070) and the Form 10 of March 15, 2024 (0001193125-24-069284). The last filing on this CIK was the Form 10-Q of November 6, 2026. Ratios, sums, percentages, the industry tally and the worked example are our arithmetic. This is analysis of public documents, not investment, legal or tax advice.