UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549


                                  SCHEDULE 13G
                    Under the Securities Exchange Act of 1934

                            MCG Capital Corporation
--------------------------------------------------------------------------------
                                (Name of Issuer)


                    Common Stock, $0.01 par value per share
--------------------------------------------------------------------------------
                         (Title of Class of Securities)

                                   58047P107
                  ---------------------------------------------
                                 (CUSIP Number)

                                January 14, 2002
--------------------------------------------------------------------------------
             (Date of Event Which Requires Filing of this Statement)

Check the appropriate box to designate the rule pursuant to which this Schedule
is filed:

     [X] Rule 13d-1(b)

     [ ] Rule 13d-1(c)

     [ ] Rule 13d-1(d)


         *The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class of
securities, and for any subsequent amendment containing information which would
alter disclosure provided in a prior cover page.

         The information required on the remainder of this cover page shall not
be deemed to be filed for the purpose of Section 18 of the Securities Exchange
Act of 1934, as amended ("Act"), or otherwise subject to the liabilities of that
section of the Act but shall be subject to all other provisions of the Act
(however, see the Notes).

                               Page 1 of 10 pages

CUSIP NO. 58047P107
--------------------------------------------------------------------------------
1.    NAME OF REPORTING PERSONS
      S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

      American International Group, Inc.
      I.R.S. Identification No. 13-2592361
--------------------------------------------------------------------------------
2.    CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP

                                                    (a)      [ ]
                                                    (b)      [ ]
--------------------------------------------------------------------------------
3.    SEC USE ONLY

--------------------------------------------------------------------------------
4.    CITIZENSHIP OR PLACE OF ORGANIZATION

      Incorporated under the laws of the State of Delaware
--------------------------------------------------------------------------------
                        5.    SOLE VOTING POWER
  NUMBER OF                            0
   SHARES                     --------------------------------------------------
BENEFICIALLY            6.    SHARED VOTING POWER
  OWNED BY                    2,078,720
    EACH                      --------------------------------------------------
 REPORTING              7.    SOLE DISPOSITIVE POWER
   PERSON                              0
    WITH                      --------------------------------------------------
                        8.    SHARED DISPOSITIVE POWER
                              2,078,720
--------------------------------------------------------------------------------
9.    AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

                              2,078,720
--------------------------------------------------------------------------------
10.   CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES
      CERTAIN SHARES
                                                     [ ]
--------------------------------------------------------------------------------
11.   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW  (9)

                                7.35%
--------------------------------------------------------------------------------
12.   TYPE OF REPORTING PERSON
                                       HC
--------------------------------------------------------------------------------


                                  Page 2 of 10

CUSIP NO. 58047P107
--------------------------------------------------------------------------------
1.    NAME OF REPORTING PERSONS
      S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

      AIG Global Investment Group, Inc.
      I.R.S. Identification No. 13-3870953
--------------------------------------------------------------------------------
2.    CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP

                                             (a)      [ ]
                                             (b)      [ ]
--------------------------------------------------------------------------------
3.    SEC USE ONLY

--------------------------------------------------------------------------------
4.    CITIZENSHIP OR PLACE OF ORGANIZATION

      Organized under the laws of the State of Delaware
--------------------------------------------------------------------------------
                        5.    SOLE VOTING POWER
  NUMBER OF                            0
   SHARES                     --------------------------------------------------
BENEFICIALLY            6.    SHARED VOTING POWER
  OWNED BY                    2,078,720
    EACH                      --------------------------------------------------
 REPORTING              7.    SOLE DISPOSITIVE POWER
   PERSON                              0
    WITH                      --------------------------------------------------
                        8.    SHARED DISPOSITIVE POWER
                              2,078,720
--------------------------------------------------------------------------------
9.    AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
      PERSON
                              2,078,720
--------------------------------------------------------------------------------
10.   CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES
      CERTAIN SHARES
                                                     [ ]
--------------------------------------------------------------------------------
11.   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW  (9)

                                7.35%
--------------------------------------------------------------------------------
12.   TYPE OF REPORTING PERSON
                                     HC
--------------------------------------------------------------------------------


                                  Page 3 of 10

CUSIP NO. 58047P107
--------------------------------------------------------------------------------
1.    NAME OF REPORTING PERSONS
      S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

      AIG Global Investment Corp.
      I.R.S. Identification No. 06-1078320
--------------------------------------------------------------------------------
2.    CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP

                                             (a)      [ ]
                                             (b)      [ ]
--------------------------------------------------------------------------------
3.    SEC USE ONLY

--------------------------------------------------------------------------------
4.    CITIZENSHIP OR PLACE OF ORGANIZATION

      Organized under the laws of the State of New Jersey
--------------------------------------------------------------------------------
                        5.    SOLE VOTING POWER
  NUMBER OF                            0
   SHARES                     --------------------------------------------------
BENEFICIALLY            6.    SHARED VOTING POWER
  OWNED BY                    2,078,720
    EACH                      --------------------------------------------------
 REPORTING              7.    SOLE DISPOSITIVE POWER
   PERSON                              0
    WITH                      --------------------------------------------------
                        8.    SHARED DISPOSITIVE POWER
                              2,078,720
--------------------------------------------------------------------------------
9.    AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
      PERSON
                              2,078,720
--------------------------------------------------------------------------------
10.   CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES
      CERTAIN SHARES
                                                     [ ]
--------------------------------------------------------------------------------
11.   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW  (9)

                                7.35%
--------------------------------------------------------------------------------
12.   TYPE OF REPORTING PERSON
                                     IA
--------------------------------------------------------------------------------


                                  Page 4 of 10

ITEM 1 (a).       NAME OF ISSUER:

                  MCG Capital Corporation

ITEM 1 (b).       ADDRESS OF ISSUER'S PRINCIPAL EXECUTIVE OFFICES:

                  1100 Wilson Boulevard
                  Suite 800
                  Arlington, VA 22209

ITEM 2 (a).       NAME OF PERSON(S) FILING:

                  American International Group, Inc.

                  AIG Global Investment Group, Inc.

                  AIG Global Investment Corp.

ITEM 2 (b).       ADDRESS OF PRINCIPAL BUSINESS OFFICE(S):

                  American International Group, Inc.
                  70 Pine Street
                  New York, New York  10270

                  AIG Global Investment Group, Inc.
                  70 Pine Street
                  New York, New York 10270

                  AIG Global Investment Corp.
                  175 Water Street
                  New York, New York 10038

ITEM 2 (c).       CITIZENSHIP:

                  The information requested hereunder is set forth under Item 4
                  of the cover pages to this Schedule 13G.

ITEM 2 (d).       TITLE OF CLASS OF SECURITIES:

                  Common Stock, $0.01 par value per share

ITEM 2 (e).       CUSIP NUMBER:  58047P107


                                  Page 5 of 10

ITEM 3.       TYPE OF PERSONS FILING:

                       American International Group, Inc.:

                       (g)      Parent Holding Company or Control Person, in
                                accordance with Rule 13d-1(b)(1)(ii) (G)
                                promulgated under the Securities Exchange Act of
                                1934, as amended (the "Act")

                       AIG Global Investment Group, Inc.

                       (g)      Parent Holding Company or Control Person, in
                                accordance with Rule 13d-1(b)(1)(ii) (G)
                                promulgated under the Act.

                       AIG Global Investment Corp.

                       (e)      Investment Advisor, in accordance with Rule
                                13d-1(b)(1)(ii)(E) promulgated under the Act.

ITEM 4.       OWNERSHIP.

                       The information requested hereunder is set forth under
                       Items 5 through 9 and Item 11 of the cover pages to this
                       Schedule 13G.

ITEM 5.       OWNERSHIP OF FIVE PERCENT OR LESS OF CLASS.

                       Not applicable.

ITEM 6.       OWNERSHIP OF MORE THAN FIVE PERCENT ON BEHALF OF ANOTHER PERSON.

                       Not applicable.

ITEM 7.       IDENTIFICATION AND CLASSIFICATION OF THE SUBSIDIARY
              WHICH ACQUIRED THE SECURITY BEING REPORTED ON BY THE
              PARENT HOLDING COMPANY OR CONTROL PERSON.

                       See Exhibit 1 attached hereto for the information
                       requested hereunder with respect to the relevant
                       subsidiaries of American International Group, Inc.

ITEM 8.       IDENTIFICATION AND CLASSIFICATION OF MEMBERS OF THE GROUP.

                       Not applicable.

ITEM 9.       NOTICE OF DISSOLUTION OF GROUP.

                       Not applicable.


                                  Page 6 of 10

ITEM 10.      CERTIFICATION.

                  By signing below I certify that, to the best of my knowledge
and belief, the securities referred to above were acquired and are held in the
ordinary course of business and were not acquired and are not held for the
purpose of or with the effect of changing or influencing the control of the
issuer of such securities and were not acquired in connection with or as a
participant in any transaction having that purpose or effect.

                                    SIGNATURE

                  After reasonable inquiry and to the best of my knowledge and
belief, I certify that the information set forth in this statement is true,
complete and correct.

Date: February 13, 2002

                          AMERICAN INTERNATIONAL GROUP, INC.

                          By  /s/  Kathleen E. Shannon
                          ------------------------------------
                          Name: Kathleen E. Shannon
                          Title: Vice President and
                                    Secretary


                          AIG GLOBAL INVESTMENT GROUP, INC.

                          By  /s/  Win J. Neuger
                          ------------------------------------
                          Name: Win J. Neuger
                          Title: Chairman and Chief Executive Officer


                          AIG GLOBAL INVESTMENT CORP.

                          By  /s/  Win J. Neuger
                          ------------------------------------
                          Name: Win J. Neuger
                          Title: Chairman and Chief Executive Officer


                                  Page 7 of 10

                                  EXHIBIT INDEX

Exhibit 1     Identification and Classification of the Subsidiary
              Which Acquired the Security Being Reported on by the
              Parent Holding Company

Exhibit 2     Agreement of Joint Filing

                                  Page 8 of 10