MCG Capital Invests $12.6 Million in Community Investors, Inc.

MCG Capital Corporation (Nasdaq: MCGC) (“MCG”) today announced the closing of a $12.6 million investment in Community Investors, Inc. (“CII”). MCG’s investment consists of a senior secured unitranche credit facility, a revolving line of credit and an equity co-investment.

CII is a leading provider of software-as-a-service (“SaaS”) based community management software tools, serving a wide range of community associations and condominium associations located throughout the United States and Canada. MCG’s investment was made to refinance CII’s existing indebtedness. CII is a portfolio company of K1 Capital (“K1”), a private equity firm focused on making investments in high growth software and technology businesses.

“We believe CII is a leading software provider within this vertical market niche. We are excited about our investments in the company and our relationship with K1,” stated Peter Malekian, Executive Vice President and Managing Director of MCG. “Based on our extensive work and diligence in partnership with K1, we believe that CII’s software stack provides meaningful value to its large customer base that leads to long-term and sticky customer relationships that form the basis for the company’s stable and predictable cash flow stream. Further, based on our study of the markets in which CII competes, we believe that CII will continue to benefit from organic and acquisitive growth. This investment continues to highlight MCG’s strategy of investing in high-quality growth businesses across a diverse range of end markets.”

“We recognize MCG’s prior software investing experience and were pleased with their ability to work quickly and efficiently to analyze and execute on this financing,” remarked Taylor Beaupain, Managing Partner at K1. “We look forward to a successful partnership with MCG.”

About MCG Capital Corporation

MCG Capital Corporation is a solutions-focused commercial finance company providing capital and advisory services to middle-market companies throughout the United States. Our investment objective is to achieve current income and capital gains. Our capital is generally used by our portfolio companies to finance acquisitions, recapitalizations, buyouts, organic growth and working capital. For more information, please visit www.mcgcapital.com.

About K1 Capital

K1 Capital is a Los Angeles-based private equity firm investing in high-growth software and technology companies. K1 helps dynamic businesses achieve successful outcomes by identifying and executing organic and acquisition-based growth opportunities that position them as industry leaders. For more information, please visit www.k1capital.com.

Forward-looking Statements:

Statements in this press release regarding management’s future expectations, beliefs, intentions, goals, strategies, plans or prospects may constitute forward-looking statements for purposes of the safe harbor protection under applicable securities laws.Forward-looking statements can be identified by terminology such as “anticipate,” “believe,” “could,” “could increase the likelihood,” “estimate,” “expect,” “intend,” “is planned,” “may,” “should,” “will,” “will enable,” “would be expected,” “look forward,” “may provide,” “would” or similar terms, variations of such terms or the negative of those terms.Such forward-looking statements involve known and unknown risks, uncertainties and other factors, including management’s beliefs regarding CII’s status within its vertical market, ability to provide meaningful value to its large customer base, stable and predictable cash flow stream and ability to benefit from organic and acquisitive growth, as well as those risks, uncertainties and factors referred to in MCG’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2013 filed with the Securities and Exchange Commission under the section “Risk Factors,” as well as other documents that may be filed by MCG from time to time with the Securities and Exchange Commission.As a result of such risks, uncertainties and factors, actual results may differ materially from any future results, performance or achievements discussed in or implied by the forward-looking statements contained herein.MCG is providing the information in this press release as of this date and assumes no obligations to update the information included in this press release or revise any forward-looking statements, whether as a result of new information, future events or otherwise.