MCG Capital Corporation (MCGC) is a business development company that provides capital to lower middle-market companies in the United States. The company primarily invests in debt and equity securities of private companies with revenues between $20 million and $200 million. MCGC was founded in 1998 and is headquartered in Arlington, Virginia.
MCGC's investment strategy focuses on providing debt and equity financing to support the growth and expansion of lower middle-market companies. The company's portfolio includes investments in a diverse range of industries, including healthcare, technology, consumer products, and business services. MCGC typically invests between $5 million and $50 million in its portfolio companies.
MCGC has historically paid a dividend to its shareholders, reflecting the income generated by its investment portfolio. However, in 2015, the company announced that it would suspend its dividend payments as part of a strategic review aimed at enhancing shareholder value.
Investors in MCGC should be aware of the risks associated with investing in business development companies. These risks include the potential for default or bankruptcy of portfolio companies, changes in market conditions that may affect the performance of the underlying investments, and the impact of interest rate fluctuations on the company's financing costs and investment returns. Additionally, the suspension of the company's dividend payments may negatively affect investor sentiment and the stock price.
In summary, MCG Capital Corporation is a business development company that provides capital to lower middle-market companies in the United States. The company's investment strategy focuses on providing debt and equity financing to support the growth and expansion of lower middle-market companies. Investors in MCGC should be aware of the risks associated with investing in business development companies and the impact of the suspension of dividend payments on the company's financial performance.
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