Monroe Capital (MRCC) – just two set of shareholder approvals away from having its assets acquired by a sister BDC and the proceeds re-invested in Horizon Technology Finance (HRZN) as we’ve already explained – reported its IIQ 2025 results today. Unfortunately, the key metrics were weak: recurring earnings per share were down to $0.15, more than (20%) over the prior quarter and (50%) below the level of a year ago. Net Asset Value Per Share (NAVPS) – our favorite thermometer for checking BDC health over time – fell (3.9%) and is now down (9.9%) over the past year and (28%) since 2021 when the downturn in performance began to show up. Not a great way to exit after many years on the public BDC stage. What we don’t understand is how a BDC which is trading – even after this latest book value adjustment – at a (21%) discount to book gets its assets purchased at full book value by its non-traded BDC relative? Isn’t a constantly descending NAVPS the very epitome of a “falling knife” ? Why would the buyers assume the latest book value on which their acquisition will be built is what those assets are “really worth”?