MSC Income Fund dokončil soukromé umístění dluhopisů za 150 mil. USD s fixním úrokem 6,83 % ročně a splatností 30. září 2029. Výnos použije na splacení dluhu splatného 30. října 2026.
, /PRNewswire/ -- MSC Income Fund, Inc. (NYSE: MSIF) ("MSC Income" or the "Fund") is pleased to announce the closing of a private notes offering totaling $150.0 million in aggregate principal amount (the "Notes"). The Notes are unsecured and bear interest at a fixed rate of 6.83% per year, payable semiannually, mature on September 30, 2029 and may be redeemed in whole or in part at any time or from time to time at MSC Income's option at par plus accrued interest to the prepayment date and, if applicable, a make-whole premium. The Notes will be issued in two separate closings. The initial issuance of $75.0 million of Notes closed today, and the Fund will issue the remaining $75.0 million of Notes in October 2026, subject to customary closing conditions.
MSC Income intends to use the net proceeds from this offering to repay the $150.0 million of outstanding 4.04% Series A Senior Notes due 2026 on or before their maturity on October 30, 2026. Pending such use, MSC Income intends to repay a portion of the outstanding debt borrowed under its floating rate multi-year revolving credit facility (the "Corporate Facility") and its special purpose vehicle revolving credit facility (the "SPV Facility" and, together with the Corporate Facility, the "Credit Facilities") and then, through re-borrowing under its Credit Facilities, to fund investments in accordance with its investment objective and strategies, to pay operating expenses and other cash obligations and for general corporate purposes.
The Notes have not been and will not be registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws. This news release shall not constitute an offer to sell or a solicitation of an offer to purchase the Notes or any other securities and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful.
ABOUT MSC INCOME FUND, INC.
The Fund (www.mscincomefund.com) is a principal investment firm that primarily provides debt capital to private companies owned by or in the process of being acquired by a private equity fund. The Fund's portfolio investments are typically made to support leveraged buyouts, recapitalizations, growth financings, refinancings and acquisitions of companies that operate in diverse industry sectors. The Fund seeks to partner with private equity fund sponsors and primarily invests in secured debt investments within its private loan investment strategy. The Fund also maintains a portfolio of customized long-term debt and equity investments in lower middle market companies, and through those investments, the Fund has partnered with entrepreneurs, business owners and management teams in co-investments with Main Street Capital Corporation (NYSE: MAIN) ("Main Street") utilizing the customized "one-stop" debt and equity financing solutions provided in Main Street's lower middle market investment strategy. The Fund's private loan portfolio companies generally have annual revenues between $25 million and $500 million. The Fund's lower middle market portfolio companies generally have annual revenues between $10 million and $150 million.
ABOUT MSC ADVISER I, LLC
MSC Adviser I, LLC ("MSCA") is a wholly-owned subsidiary of Main Street that is registered as an investment adviser under the Investment Advisers Act of 1940, as amended. MSCA serves as the investment adviser and administrator of the Fund in addition to several other advisory clients.
FORWARD-LOOKING STATEMENTS
This news release may contain certain forward-looking statements, including but not limited to the availability of future financing capacity under the Fund's Credit Facilities. Any such statements other than statements of historical fact are likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under the Fund's control, and that the Fund may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual performance and results could vary materially from these estimates and projections of the future as a result of a number of factors, including those described from time to time in the Fund's filings with the U.S. Securities and Exchange Commission. Such statements speak only as of the time when made and are based on information available to the Fund as of the date hereof and are qualified in their entirety by this cautionary statement. The Fund assumes no obligation to revise or update any such statement now or in the future.
Main Street Capital v roce 2026 vyplácí čtvrtletní doplňkovou dividendu 0,30 USD na akcii navíc k rostoucí měsíční dividendě 0,265 USD. Doplňkovou dividendu udržuje už 20 čtvrtletí v řadě.
Main Street Capital (MAIN -0.07%) has paid a $0.30-per-share supplemental dividend to investors each quarter in 2026. That's on top of its steadily rising monthly dividend. The business development company (BDC) currently pays $0.265 per share each month, 3.9% above the year-ago level.
Here's a look at this supplemental income stream, which makes the BDC an even more compelling passive income investment.
Image source: Getty Images.
Dual income streams Main Street Capital's dividend policy aims to provide investors with a recurring monthly dividend they can bank on, along with significant additional value through supplemental dividends. It has paid supplemental dividends for 20 straight quarters, maintaining the current $0.30-per-share rate since early 2024. It has declared cumulative supplemental dividends of $8.74 per share since its 2007 IPO. The company pays supplemental dividends when its distributable net investment income (DNII) significantly exceeds its monthly dividend, or when it generates net realized gains and can maintain a stable or positive net asset value per share. It doesn't always make supplemental payments and has cut and suspended this additional dividend in the past.
The flexibility of the supplemental dividend enables Main Street Capital to pay a more secure monthly dividend. It sets this payment at a sustainable level. During the second quarter, its DNII covered the monthly dividend by 1.4 times. That gives it a comfortable cushion and room to grow. The BDC has grown its monthly dividend by 141% since its IPO, including 12 increases since the fourth quarter of 2021. It has never cut its monthly dividend since its IPO.
Premium Feature
Moneyball Superscore
68/100
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Income comfort plus a bonus As a BDC, Main Street Capital must distribute 90% of its taxable net income to shareholders to remain in compliance with IRS regulations. Most BDCs pay one large dividend, typically quarterly, to reach their targeted payout level. If their income falls, which is common when interest rates decline, or the economy deteriorates, they need to reduce their dividends.
Main Street Capital's two-part dividend policy aims to address income sustainability issues while ensuring compliance. The base monthly dividend provides investors with significant comfort knowing that they can rely on this income stream. It grows steadily, which helps provide real income growth after inflation.
Meanwhile, the supplemental dividend serves two functions. It provides an outlet for the Main Street Capital to return excess taxable income to investors to remain compliant. That additional payment gives investors another meaningful income stream. It's not as durable as the monthly dividend, so they should view it as a bonus. However, there is some near-term visibility on this payment. The BDC has already announced it will pay a $0.30-per-share supplemental dividend in September. Additionally, CEO Dwayne Hyzak stated on the second quarter call that "we currently anticipate proposing an additional significant supplemental dividend payable in December 2026."
Get paid up to 16 times a year Main Street Capital offers two distinct income streams. It pays a base dividend on the 15th of every month, built on almost two decades of dependability. It tops that off with a supplemental dividend payment near the end of each quarter. While that second payment isn't guaranteed, Main Street has paid these dividends for 20 straight quarters and expects that trend to continue. That's up to 16 dividend payments each year. Main Street Capital's unique policy and frequent payments make it an enticing passive income investment.
Main Street Capital kryje pravidelnou dividendu z úrokových výnosů; ve 2. čtvrtletí dosáhla distribučního příjmu 1,04 USD na akcii oproti 0,795 USD na akcii na běžných dividendách. Doplňková dividenda ale závisí na ziscích z investic a není jistá.
Main Street Capital (MAIN -0.19%) is a business development company (BDC). Its 7.5% yield is well above the market's roughly 1%. But there are some issues to consider before you buy this stock. And the biggest comes down to how the dividend payment is made. Here's what you need to know.
What's Main Street's real yield? Some online quote services will show Main Street's yield as 5.4%. Which isn't wrong, because the monthly dividend is $0.265 per share. If you multiply that number by 12 and divide by the recent stock price, you get roughly 5.4%. But Main Street has also paid an additional $0.30 per share in dividends each quarter in 2026. That same amount was paid every quarter in 2025 and 2024, as well. If you add that quarterly payment to the monthly dividend, you get a 7.5% yield.
Image source: Getty Images.
Main Street describes that extra payment as a supplemental dividend. It is paid out of "undistributed taxable income." While it has been reliably paid for several years, you can't count on it. The big-picture story here is that this business development company funds its regular dividend with the interest income it earns from loans to smaller, non-public businesses. In the second quarter, the company generated distributable income of $1.04 per share, easily covering the $0.795 per share in regular dividends it paid.
From this perspective, the dividend is fine. But what about the supplemental dividend? That will get lowered if there are headwinds. For example, during the COVID pandemic in 2020, no supplemental dividends were paid. Making loans to smaller, non-public companies is inherently risky, so an economic downturn could very easily lead the company to pull back on the supplemental dividend or eliminate it altogether. Recessions often result in an increase in troubled loans for a BDC.
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Main Street's business model has two parts What's interesting is that Main Street's dividend is similar to its business: it has two parts. The regular monthly dividend is funded by the interest income generated by its loans. There is plenty of leeway for adversity before that dividend would be at risk. The supplemental dividend is best understood as arising from the gains the BDC earns on equity stakes it takes when it makes a loan.
This is a normal part of the company's business and a bonus for Main Street if the investment works out well. The BDC is simply passing on its success to investors through the supplemental dividend, which you can think of as coming out of the balance sheet. Main Street's approach to its dividend is actually quite conservative. And if you understand what it is doing, you'll likely find the stock an attractive addition to your income portfolio. Just go in knowing that the supplemental dividend can't be counted on.
Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Main Street Capital od roku 2007 nesnížila základní měsíční dividendu a od roku 2021 ji zvýšila už 12krát. K tomu vyplácí i doplňkovou čtvrtletní dividendu, kterou drží 20 kvartálů v řadě.
Main Street Capital (MAIN +0.14%) has been a very reliable income stock. The business development company (BDC) has never cut its base monthly dividend since going public in 2007, something most of its peers have done at least once. Instead, it has increased this payment by 141% overall, including 12 raises since 2021.
Here's a closer look at what makes it such a bankable monthly dividend stock.
Image source: Getty Images.
A stable and steadily rising income base Main Street Capital currently pays a base monthly dividend of $0.265 per share ($3.18 annualized). At its current annualized rate and share price, it yields 5.4%. The base rate has grown by 3.9% over the past year and by over 29% since 2021.
Several factors have helped drive its stable, growing dividend. Main Street Capital set its base monthly dividend at a conservative level. Its distributable net investment income (DNII) before taxes currently covers the payout by a comfy 1.4 times. Meanwhile, its investment portfolio primarily consists of secured loans that generate recurring interest income to support the dividend. Additionally, Main Street Capital will make equity investments in its portfolio companies that generate dividend income and provide capital appreciation. The upside from those equity investments has been a key driver of dividend growth over the years, as Main Street can monetize gains and reinvest the proceeds to expand its portfolio of income-generating investments. They've helped grow its net asset value per share by 164% since 2007.
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But wait, there's even more income here As a BDC, Main Street Capital must distribute at least 90% of its taxable net income to shareholders in dividends. Given its conservative monthly dividend level, the company needs to return additional income to shareholders, which it does by periodically paying supplemental quarterly dividends. Main Street has paid one for 20 consecutive quarters, including maintaining its current rate of $0.30 per share since early 2024. Add that to the monthly payments ($4.38 annualized), and Main Street's total current income yield is 7.4%.
Unlike the monthly dividend, Main Street Capital has cut and suspended this supplemental payment in the past due to market conditions. However, this dual dividend structure provides investors with a bankable recurring monthly income stream and the potential for meaningful additional income each quarter from supplemental payments. It has already declared its next supplemental dividend of $0.30 per share, payable in September. It currently expects to pay an additional significant supplemental dividend in December, based on its expectation of continued strong performance in the third quarter.
One bankable payment plus a potential income bonus Main Street Capital offers investors the opportunity to earn two income streams. It pays a base dividend set at a level it can sustain and grow. Additionally, it periodically pays supplemental dividends from its excess income. The BDC has increased its base payment 12 times since 2021, while making 20 straight supplemental quarterly payments. While there might be a time in the future when it doesn't make a supplemental payment, the BDC should continue to sustain and grow its base payment. Its unique dividend policy makes it an excellent passive-income stock to hold over the long term.
Main Street Capital dokončila novou portfoliovou investici ve výši 39,3 milionu USD do rekapitalizace Midstream Valve Partners. Investice zahrnuje první zástavní seniorně zajištěný termínovaný dluh i přímý minoritní podíl.
Invests $39.3 Million in Recapitalization of Midstream Valve Partners, LLC
, /PRNewswire/ -- Main Street Capital Corporation (NYSE: MAIN) ("Main Street") is pleased to announce that it recently completed a new portfolio investment totaling $39.3 million to facilitate the minority recapitalization of Midstream Valve Partners, LLC ("MVP" or the "Company"), a leading value-added distributor of valves, actuators and related flow-control accessories for the energy infrastructure and refining industries. Main Street partnered with MVP's founder to facilitate the transaction, with Main Street's investment in the Company including a combination of first lien, senior secured term debt and a direct minority equity investment.
Founded in 2019 and headquartered in Tomball, Texas, MVP is a leading value-added distributor of valve, actuator and related flow-control accessory solutions to midstream pipeline operators, engineering, procurement & construction firms, fabricators and other distributors that serve the energy infrastructure, pipeline and refining industries primarily in the continental United States.
ABOUT MAIN STREET CAPITAL CORPORATION
Main Street (www.mainstcapital.com) is a principal investment firm that primarily provides customized long-term debt and equity capital solutions to lower middle market companies and debt capital to private companies owned by or in the process of being acquired by a private equity fund. Main Street's portfolio investments are typically made to support management buyouts, recapitalizations, growth financings, refinancings and acquisitions of companies that operate in diverse industry sectors. Main Street seeks to partner with entrepreneurs, business owners and management teams and generally provides customized "one-stop" debt and equity financing solutions within its lower middle market investment strategy. Main Street seeks to partner with private equity fund sponsors and primarily invests in secured debt investments in its private loan investment strategy. Main Street's lower middle market portfolio companies generally have annual revenues between $10 million and $150 million. Main Street's private loan portfolio companies generally have annual revenues between $25 million and $500 million.
Main Street, through its wholly-owned portfolio company MSC Adviser I, LLC ("MSC Adviser"), also maintains an asset management business through which it manages investments for external parties. MSC Adviser is registered as an investment adviser under the Investment Advisers Act of 1940, as amended.
Contacts:
Main Street Capital Corporation
Dwayne L. Hyzak, CEO, [email protected]
Ryan R. Nelson, CFO, [email protected]
713-350-6000
CoreCap Advisors snížila ve 2. čtvrtletí podíl v Main Street Capital o 98,2 % a prodala 85 352 akcií. Po prodeji držela 1 583 akcií v hodnotě 82 000 USD.
CoreCap Advisors LLC lowered its position in Main Street Capital Corporation (NYSE:MAIN – Free Report) by 98.2% in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 1,583 shares of the financial services provider’s stock after selling 85,352 shares during the period. CoreCap Advisors LLC’s holdings in Main Street Capital were worth $82,000 at the end of the most recent reporting period.
A number of other hedge funds also recently bought and sold shares of the company. Garner Asset Management Corp bought a new position in Main Street Capital in the fourth quarter valued at about $28,000. MassMutual Private Wealth & Trust FSB bought a new stake in shares of Main Street Capital during the 2nd quarter valued at about $28,000. Smartleaf Asset Management LLC grew its stake in shares of Main Street Capital by 109.6% during the 2nd quarter. Smartleaf Asset Management LLC now owns 478 shares of the financial services provider’s stock valued at $28,000 after purchasing an additional 250 shares during the period. Sankala Group LLC purchased a new stake in shares of Main Street Capital during the 4th quarter valued at about $29,000. Finally, Gilpin Wealth Management LLC purchased a new stake in shares of Main Street Capital during the 4th quarter valued at about $31,000. Hedge funds and other institutional investors own 20.31% of the company’s stock.
Main Street Capital Trading Down 0.8% Shares of MAIN opened at $58.57 on Thursday. The firm has a market cap of $5.48 billion, a P/E ratio of 11.81 and a beta of 0.71. The company has a debt-to-equity ratio of 0.11, a current ratio of 0.06 and a quick ratio of 0.06. Main Street Capital Corporation has a 1 year low of $48.95 and a 1 year high of $67.77. The company has a 50 day simple moving average of $53.23 and a two-hundred day simple moving average of $54.92.
Main Street Capital (NYSE:MAIN – Get Free Report) last released its earnings results on Thursday, August 6th. The financial services provider reported $0.97 EPS for the quarter, topping the consensus estimate of $0.96 by $0.01. The firm had revenue of $327.56 million for the quarter, compared to the consensus estimate of $144.59 million. Main Street Capital had a net margin of 78.49% and a return on equity of 11.95%. On average, equities analysts expect that Main Street Capital Corporation will post 3.78 earnings per share for the current fiscal year.
Main Street Capital Announces Dividend The business also recently declared a monthly dividend, which will be paid on Tuesday, December 15th. Shareholders of record on Tuesday, December 8th will be paid a $0.265 dividend. The ex-dividend date is Tuesday, December 8th. This represents a c) annualized dividend and a yield of 5.4%. Main Street Capital’s payout ratio is presently 64.11%.
Wall Street Analysts Forecast Growth A number of research firms recently issued reports on MAIN. Truist Financial raised their price objective on shares of Main Street Capital from $53.00 to $57.00 and gave the stock a “hold” rating in a report on Monday. Citigroup reaffirmed a “market outperform” rating on shares of Main Street Capital in a report on Monday. Citizens Jmp decreased their price target on shares of Main Street Capital from $74.00 to $70.00 and set a “market outperform” rating on the stock in a research report on Wednesday, April 22nd. Royal Bank Of Canada decreased their price target on shares of Main Street Capital from $66.00 to $58.00 and set an “outperform” rating on the stock in a research report on Thursday, May 14th. Finally, Zacks Research upgraded shares of Main Street Capital from a “strong sell” rating to a “hold” rating in a research note on Monday, July 20th. Four investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat, Main Street Capital currently has a consensus rating of “Hold” and a consensus price target of $60.83.
View Our Latest Stock Report on Main Street Capital
Insider Buying and Selling In other Main Street Capital news, EVP Jason B. Beauvais sold 6,830 shares of the stock in a transaction dated Tuesday, June 30th. The shares were sold at an average price of $51.73, for a total transaction of $353,315.90. Following the completion of the transaction, the executive vice president owned 196,185 shares of the company’s stock, valued at $10,148,650.05. This represents a 3.36% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 3.83% of the stock is currently owned by insiders.
Main Street Capital Profile (Free Report)
Main Street Capital Corporation (NYSE: MAIN) is a publicly traded business development company that provides flexible debt and equity capital to lower middle market companies in the United States. Headquartered in Houston, Texas, Main Street Capital was formed in 2007 and operates under the Investment Company Act of 1940. The firm’s management services are provided by Main Street Capital Management, L.P., which focuses on identifying growing private companies with enterprise values typically between $10 million and $150 million.
Main Street Capital’s primary offerings include first-lien senior secured loans, second-lien loans, subordinated debt, and equity co-investments or minority equity positions.
Recommended Stories Five stocks we like better than Main Street Capital GE Vernova’s AI Power Boom Faces a Profit Test Cardinal Health Earnings: Can Perfection Get Priced In Twice? Nebius’ Q2 Beat Shows the AI Bottleneck Is Capacity, Not Demand Legacy Jet Builders Stall While Embraer Accelerates to New Highs Want to see what other hedge funds are holding MAIN? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Main Street Capital Corporation (NYSE:MAIN – Free Report).
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Main Street Capital (MAIN - Free Report) came out with quarterly earnings of $0.97 per share, missing the Zacks Consensus Estimate of $1 per share. This compares to earnings of $0.99 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -3.00%. A quarter ago, it was expected that this investment firm would post earnings of $1.04 per share when it actually produced earnings of $0.93, delivering a surprise of -10.58%.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
Main Street Capital, which belongs to the Zacks Financial - SBIC & Commercial Industry industry, posted revenues of $149.57 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 4.50%. This compares to year-ago revenues of $143.97 million. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Main Street Capital shares have lost about 7.1% since the beginning of the year versus the S&P 500's gain of 12.8%.
What's Next for Main Street Capital?While Main Street Capital has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Main Street Capital was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.99 on $146.92 million in revenues for the coming quarter and $3.99 on $580.66 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - SBIC & Commercial Industry is currently in the bottom 31% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the broader Zacks Finance sector, Nu Holdings Ltd. (NU - Free Report) , is yet to report results for the quarter ended June 2026.
This company is expected to post quarterly earnings of $0.20 per share in its upcoming report, which represents a year-over-year change of +42.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Nu Holdings Ltd.'s revenues are expected to be $5.45 billion, up 48.7% from the year-ago quarter.
Main Street ve 2. čtvrtletí zvýšila čistý investiční výnos na 0,97 USD na akcii a čistá hodnota aktiv na akcii vzrostla na 33,92 USD. Firma zároveň vyhlásila mimořádnou dividendu ve výši 0,30 USD na akcii.
Second Quarter 2026 Net Investment Income of $0.97 Per Share
Second Quarter 2026 Distributable Net Investment Income(1) of $1.04 Per Share
Second Quarter 2026 Distributable Net Investment Income Before Taxes(2) of $1.08 Per Share
Net Asset Value of $33.92 Per Share
, /PRNewswire/ -- Main Street Capital Corporation (NYSE: MAIN) ("Main Street") is pleased to announce its financial results for the second quarter ended June 30, 2026. Unless otherwise noted or the context otherwise indicates, the terms "we," "us," "our" and the "Company" refer to Main Street and its consolidated subsidiaries.
Second Quarter 2026 Highlights
Net investment income ("NII") of $90.3 million, or $0.97 per share Distributable net investment income ("DNII")(1) of $97.4 million, or $1.04 per share DNII before taxes(2) of $100.9 million, or $1.08 per share Total investment income of $149.6 million An industry leading position in cost efficiency, with a ratio of total non-interest operating expenses as a percentage of quarterly average total assets ("Operating Expenses to Assets Ratio") of 1.3% on both an annualized basis for the quarter and for the trailing twelve-month ("TTM") period ended June 30, 2026 Net increase in net assets resulting from operations of $147.6 million, or $1.58 per share Return on equity(3) of 18.9% on an annualized basis for the quarter and 15.0% for the TTM period ended June 30, 2026 Net asset value of $33.92 per share as of June 30, 2026, representing an increase of $0.46 per share, or 1.4%, compared to $33.46 per share as of March 31, 2026 and $0.59 per share, or 1.8%, compared to $33.33 per share as of December 31, 2025 Declared regular monthly dividends totaling $0.795 per share for the third quarter of 2026, or $0.265 per share for each of July, August and September 2026, representing a 3.9% increase from the regular monthly dividends paid in the third quarter of 2025 Declared and paid a supplemental dividend of $0.30 per share, resulting in total dividends paid in the second quarter of 2026 of $1.08 per share and representing a 2.9% increase from the total dividends paid in the second quarter of 2025 Completed $99.7 million in total lower middle market ("LMM") portfolio investments, including investments totaling $45.8 million in two new portfolio companies, which after aggregate repayments and return of invested equity capital resulted in a net decrease of $30.6 million in the total cost basis of the LMM investment portfolio Completed $238.9 million in total private loan portfolio investments, which after aggregate repayments, return of invested equity capital and a decrease in cost basis due to a realized loss resulted in a net increase of $60.2 million in the total cost basis of the private loan investment portfolio Fully exited investments in Centre Technologies Holdings, LLC, realizing a gain of $46.4 million, which in addition to the total dividends received over the life of the equity investment, resulted in an annual internal rate of return and times money invested return of 40.1% and 8.8 times, respectively, on the equity investment, and 23.2% and 2.4 times, respectively, including all debt and equity investments in the company on a cumulative basis since Main Street's initial investment in 2019 Further enhanced our liquidity position and strengthened our capital structure by (i) amending the Corporate Facility to increase the total commitments by $65.0 million to $1.240 billion and extend the maturity date to June 2031 and (ii) issuing a principal amount of $150.0 million of the April 2031 Notes (with the Corporate Facility and the April 2031 Notes each as defined in the Liquidity and Capital Resources section below) In commenting on the Company's operating results for the second quarter of 2026, Dwayne L. Hyzak, Main Street's Chief Executive Officer, stated, "We are very pleased with our performance in the second quarter, which resulted in strong quarterly operating results highlighted by an annualized return on equity of 18.9%. The results included favorable levels of net investment income per share and distributable net investment income before taxes per share and a significant increase in net asset value per share, primarily driven by significant net fair value appreciation on our lower middle market and private loan investment portfolios, including the benefit of another material realized gain in our lower middle market investment portfolio. We believe that these results continue to demonstrate the sustainable strength of our overall platform, the benefits of our differentiated and diversified investment strategies and the continued underlying strength and quality of our portfolio companies."
Mr. Hyzak continued, "Our strong second quarter results and continued positive outlook for the future resulted in the declaration of another $0.30 per share supplemental dividend to be paid in September 2026, representing our twentieth consecutive quarterly supplemental dividend, to go with the 12 increases to our regular monthly dividends declared since the fourth quarter of 2021. Additionally, with the continued support from our long-term lender relationships as evidenced by the recent expansion and extension of our Corporate Facility and our recent investment grade notes offering in April 2026, we continue to maintain strong liquidity and a conservative leverage profile, which we believe is important in the current economic environment. We remain confident that our diversified lower middle market and private loan investment strategies, together with the benefits of our asset management business, cost efficient operating structure and conservative capital structure, will allow us to continue to deliver superior results for our shareholders."
Second Quarter 2026 Operating Results
The following table provides a summary of our operating results for the second quarter of 2026:
Three Months Ended June 30,
2026
2025
Change
Change (%)
(dollars in thousands, except per share amounts)
Interest income
$ 112,633
$ 100,857
$ 11,776
12 %
Dividend income
27,398
37,845
(10,447)
(28) %
Fee income
9,541
5,271
4,270
81 %
Total investment income
$ 149,572
$ 143,973
$ 5,599
4 %
Net investment income
$ 90,324
$ 88,183
$ 2,141
2 %
Net investment income per share
$ 0.97
$ 0.99
$ (0.02)
(2) %
Distributable net investment income (1)
$ 97,392
$ 94,344
$ 3,048
3 %
Distributable net investment income per share (1)
$ 1.04
$ 1.06
$ (0.02)
(2) %
Distributable net investment income before taxes (2)
$ 100,865
$ 99,495
$ 1,370
1 %
Distributable net investment income before taxes per share (2)
$ 1.08
$ 1.11
$ (0.03)
(3) %
Net increase in net assets resulting from operations
$ 147,577
$ 122,534
$ 25,043
20 %
Net increase in net assets resulting from operations per share
$ 1.58
$ 1.37
$ 0.21
15 %
Return on equity - quarter annualized (3)
18.9 %
17.1 %
1.8 %
11 %
The $5.6 million increase in total investment income in the second quarter of 2026 from the comparable period of the prior year was principally attributable to (i) an $11.8 million increase in interest income, primarily due to higher average levels of income producing investment portfolio debt investments, partially offset by a decrease in interest rates, primarily resulting from decreases in benchmark index rates on floating rate investment portfolio debt investments, and the negative impact from investment portfolio debt investments on non-accrual status and (ii) a $4.3 million increase in fee income, primarily due to a $2.8 million increase in fee income from the refinancing and prepayment of investment portfolio debt investments and a $1.5 million increase in fee income related to increased investment activity. These increases were partially offset by a $10.4 million decrease in dividend income, primarily due to an $8.8 million decrease in dividend income from our LMM portfolio companies, a $0.8 million decrease in dividend income from our External Investment Manager (as defined in the External Investment Manager section below) and a $0.5 million decrease in dividend income from our other portfolio investments. The $5.6 million increase in total investment income in the second quarter of 2026 includes the impact of an increase of $1.4 million in certain income considered less consistent or non-recurring, primarily related to increases of (i) $3.1 million in such fee income and (ii) $0.8 million in such interest income from accelerated prepayment, repricing and other activity related to certain investment portfolio debt investments, partially offset by a decrease of $2.5 million in such dividend income, in each case when compared to the same period in 2025.
Total cash expenses(4) increased $4.2 million, or 9.5%, to $48.7 million in the second quarter of 2026 from $44.5 million for the same period in 2025. This increase in total cash expenses was principally attributable to (i) a $4.1 million increase in interest expense and (ii) a $1.0 million increase in cash compensation expenses,(4) partially offset by a $0.7 million increase in expenses allocated to our External Investment Manager. The increase in interest expense was primarily related to an increase in average borrowings outstanding used to fund a portion of the growth of our investment portfolio, partially offset by a decreased weighted-average interest rate on our Credit Facilities due to decreases in benchmark index rates. The increase in cash compensation expenses(4) is primarily related to increases in employee headcount to support our growing investment portfolio and asset management activities, base compensation rates and other compensation related accruals. The increase in expenses allocated to the External Investment Manager was primarily driven by the increased compensation expenses.
Non-cash compensation expenses(4) increased $0.9 million in the second quarter of 2026 from the comparable period of the prior year, primarily driven by a $0.5 million increase in deferred compensation expense.
Our Operating Expenses to Assets Ratio (which includes non-cash compensation expenses(4)) on an annualized basis was 1.3% for the second quarter of 2026, a decrease from 1.4% for the second quarter of 2025.
Excise tax expense decreased $0.2 million and NII related federal and state income and other tax expenses decreased $1.5 million in the second quarter of 2026 compared to the same period in 2025, resulting in a decrease in tax expenses included in NII of $1.7 million. The decrease in excise tax was due to a decrease in undistributed taxable income as of June 30, 2026 and the decrease in NII related federal and state income and other tax expenses was due to a decrease in taxable NII between the comparable periods.
The $2.1 million increase in NII and the $3.0 million increase in DNII(1) in the second quarter of 2026 from the comparable period of the prior year were both principally attributable to (i) the increase in total investment income and (ii) the decrease in NII related tax expenses, partially offset by an increase in total cash expenses, each as discussed above. NII and DNII(1) on a per share basis each decreased by $0.02 per share for the second quarter of 2026 as compared to the second quarter of 2025, to $0.97 per share and $1.04 per share, respectively. These decreases include the impact of a 4.5% increase in the weighted-average shares outstanding compared to the second quarter of 2025, primarily due to shares issued since the beginning of the comparable period of the prior year through our (i) at-the-market ("ATM") equity issuance program, (ii) dividend reinvestment plan and (iii) equity incentive compensation plans. The decreases in NII and DNII(1) on a per share basis in the second quarter of 2026 are after a net increase of $0.01 per share resulting from an increase in investment income considered less consistent or non-recurring in nature compared to the second quarter of 2025, as discussed above.
The $147.6 million net increase in net assets resulting from operations in the second quarter of 2026 represents a $25.0 million increase from the second quarter of 2025. This increase was primarily the result of (i) a $31.6 million increase in the net fair value change of our portfolio investments resulting from the net impact of net realized gains/losses and net unrealized appreciation/depreciation, with the increase resulting from a net fair value increase of $65.0 million in the second quarter of 2026 compared to a net fair value increase of $33.5 million in the prior year and (ii) a $2.1 million increase in NII as discussed above, with these increases partially offset by an $8.7 million increase in the net tax provision on the net fair value change of our portfolio investments, resulting from a net tax provision of $7.8 million in the second quarter of 2026 compared to a net tax benefit of $0.9 million in the comparable period of the prior year. The $65.0 million net fair value increase in the second quarter of 2026 was the result of a net realized gain of $32.8 million and net unrealized appreciation (including the reversal of net fair value appreciation recognized in prior periods due to the net realized gain in the quarter) of $32.2 million. The $33.5 million net fair value increase in the second quarter of 2025 was the result of a net realized gain of $52.4 million, partially offset by net unrealized depreciation of $19.0 million. The $32.8 million net realized gain from investments for the second quarter of 2026 was primarily the result of a $46.4 million realized gain on the full exit of a LMM portfolio investment, partially offset by a $13.3 million realized loss on the restructure of a private loan portfolio investment.
The following table provides a summary of the total net unrealized appreciation of $32.2 million for the second quarter of 2026:
Three Months Ended June 30, 2026
LMM (a)
Private Loan
Middle Market
Other
Total
(in millions)
Accounting reversals of net unrealized (appreciation) depreciation recognized in prior periods due to net realized (gains / income) losses recognized during the current period
$ (47.2)
$ 11.0
$ —
$ 0.5
$ (35.7)
Net unrealized appreciation (depreciation) relating to portfolio investments
54.8
20.2
(0.5)
(6.6)
(b)
67.9
Total net unrealized appreciation (depreciation) relating to portfolio investments
$ 7.6
$ 31.2
$ (0.5)
$ (6.1)
$ 32.2
___________________________
(a)
Includes unrealized appreciation on 38 LMM portfolio investments and unrealized depreciation on 28 LMM portfolio investments.
(b)
Includes $7.9 million of unrealized depreciation related to the External Investment Manager.
Liquidity and Capital Resources
As of June 30, 2026, we had aggregate liquidity of $1.153 billion, including (i) $58.3 million in cash and cash equivalents and (ii) $1.095 billion of aggregate unused capacity, which is after a reduction of $500.0 million to provide for the scheduled repayment of the July 2026 Notes (as defined below) at maturity, under our corporate revolving credit facility (the "Corporate Facility") and our special purpose vehicle revolving credit facility (the "SPV Facility" and, together with the Corporate Facility, the "Credit Facilities"), which we maintain to support our investment and operating activities.
Several details regarding our capital structure as of June 30, 2026 are as follows:
The Corporate Facility included $1.240 billion in total commitments from a diversified group of 18 participating lenders, plus an accordion feature that allows us to request an increase in the total commitments under the facility to up to $1.860 billion. $26.0 million in outstanding borrowings under the Corporate Facility, with an interest rate of 5.5% based on the applicable Secured Overnight Financing Rate ("SOFR") effective for the contractual reset date of July 1, 2026. The SPV Facility included $600.0 million in total commitments from a diversified group of six participating lenders, plus an accordion feature that allows us to request an increase in the total commitments under the facility to up to $800.0 million. $215.0 million in outstanding borrowings under the SPV Facility, with an interest rate of 5.6% based on the applicable SOFR effective for the contractual reset date of July 1, 2026. $550.0 million of unsecured notes outstanding that bear interest at a rate of 6.95% per year (the "March 2029 Notes") with a yield-to-maturity of 6.68%. The March 2029 Notes mature on March 1, 2029 and may be redeemed in whole or in part at any time at our option subject to certain make-whole provisions. $500.0 million of unsecured notes outstanding that bear interest at a rate of 3.00% per year (the "July 2026 Notes"). The July 2026 Notes mature on July 14, 2026 and may be redeemed in whole or in part at any time at our option subject to certain make-whole provisions. $400.0 million of unsecured notes outstanding that bear interest at a rate of 6.50% per year with a yield-to-maturity of 6.34% (the "June 2027 Notes"). The June 2027 Notes mature on June 4, 2027 and may be redeemed in whole or in part at any time at our option subject to certain make-whole provisions. $350.0 million of unsecured notes outstanding that bear interest at a rate of 5.40% per year (the "August 2028 Notes"). The August 2028 Notes mature on August 15, 2028 and may be redeemed in whole or in part at any time at our option subject to certain make-whole provisions. $350.0 million of outstanding Small Business Investment Company ("SBIC") debentures through our wholly-owned SBIC subsidiaries. These debentures, which are guaranteed by the U.S. Small Business Administration (the "SBA"), had a weighted-average annual fixed interest rate of 3.26% and mature ten years from original issuance. The first maturity related to our existing SBIC debentures occurs in the first quarter of 2027, and the weighted-average remaining duration was 4.1 years. $150.0 million of unsecured notes outstanding that bear interest at a rate of 6.93% per year (the "April 2031 Notes"). The April 2031 Notes mature on April 15, 2031 and may be redeemed in whole or in part at any time at our option subject to certain make-whole provisions. We maintain investment grade credit ratings from each of Fitch Ratings and S&P Global Ratings, both of which have assigned us investment grade credit ratings of BBB- with a stable outlook. Our net asset value totaled $3.2 billion, or $33.92 per share. Investment Portfolio Information as of June 30, 2026(5)
The following table provides a summary of the investments in our LMM portfolio and private loan portfolio as of June 30, 2026:
June 30, 2026
LMM (a)
Private Loan
(dollars in millions)
Number of portfolio companies
94
86
Fair value
$ 3,205.6
$ 2,090.9
Cost
$ 2,547.7
$ 2,123.5
Debt investments as a % of portfolio (at cost)
71.1 %
94.3 %
Equity investments as a % of portfolio (at cost)
28.9 %
5.7 %
% of debt investments at cost secured by first priority lien
99.4 %
99.3 %
Weighted-average annual effective yield (b)
12.6 %
10.2 %
Average EBITDA (c)
$ 11.8
$ 39.3
___________________________
(a)
We had equity ownership in all of our LMM portfolio companies, and our average fully diluted equity ownership in those portfolio companies was 36%.
(b)
The weighted-average annual effective yields were computed using the effective interest rates for all debt investments as of June 30, 2026, including amortization of deferred debt origination fees and accretion of original issue discount but excluding fees payable upon repayment of the debt investments and any debt investments on non-accrual status, and are weighted based upon the principal amount of each applicable debt investment as of June 30, 2026.
(c)
The average EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is calculated using a simple average for the LMM portfolio companies and a weighted-average for the private loan portfolio companies. These calculations exclude certain portfolio companies, including six LMM portfolio companies and five private loan portfolio companies, as EBITDA is not a meaningful valuation metric for our investments in these portfolio companies, and those portfolio companies whose primary purpose is to own real estate and those portfolio companies whose primary operations have ceased and only residual value remains.
The fair value of our LMM portfolio company equity investments was 196% of the related cost basis of such equity investments, and our LMM portfolio companies had a median net senior debt (senior interest-bearing debt through our debt position less cash and cash equivalents) to EBITDA ratio of 2.7 to 1.0 and a median total EBITDA to senior interest expense ratio of 2.9 to 1.0. Including all debt that is junior in priority to our debt position, these median ratios were 2.7 to 1.0 and 2.8 to 1.0, respectively.(5)(6)
As of June 30, 2026, our investment portfolio also included:
Other portfolio investments in 34 entities, spread across 13 investment managers, collectively totaling $141.3 million in fair value and $150.8 million in cost basis, which comprised 2.5% and 3.0% of our investment portfolio at fair value and cost, respectively; Middle market portfolio investments in 11 portfolio companies, collectively totaling $83.1 million in fair value and $123.1 million in cost basis, which comprised 1.4% and 2.5% of our investment portfolio at fair value and cost, respectively; and Our investment in the External Investment Manager, with a fair value of $225.2 million and a cost basis of $29.5 million, which comprised 3.9% and 0.6% of our investment portfolio at fair value and cost, respectively. As of June 30, 2026, investments on non-accrual status comprised 1.1% of the total investment portfolio at fair value and 4.0% at cost, and our total portfolio investments at fair value were 116% of the related cost basis.
External Investment Manager
MSC Adviser I, LLC is our wholly-owned portfolio company and registered investment adviser that provides investment management services to external parties (the "External Investment Manager"). We share employees with the External Investment Manager and allocate costs related to such shared employees and other operating expenses to the External Investment Manager. The total contribution of the External Investment Manager to our NII consists of the combination of the expenses we allocate to the External Investment Manager and the dividend income we earn from the External Investment Manager. During the second quarter of 2026, the External Investment Manager earned $9.6 million of total fee income, and waived $0.3 million of incentive fees, resulting in total fee income, net of waivers, of $9.4 million, a decrease of $0.2 million from the second quarter of 2025. The fee income earned by the External Investment Manager in the second quarter of 2026 included (i) $6.2 million of management fee income, an increase of $0.5 million from the second quarter of 2025, and (ii) incentive fees, net of waivers, of $3.0 million, a decrease of $0.7 million from the second quarter of 2025. As discussed above, we allocated $6.6 million of total expenses to the External Investment Manager during the second quarter of 2026, an increase of $0.7 million from the second quarter of 2025. The increase in management fee income was primarily attributable to an increase in total assets managed for clients. The decrease in incentive fees, net of waivers, is the result of (i) a decrease in gross incentive fees of $0.5 million and (ii) the $0.3 million incentive fee waiver. The decrease in gross incentive fees was attributable to changes in the performance and operating results from the assets managed for clients in the second quarter of 2026 relative to the second quarter of 2025. The combination of the dividend income we earned from the External Investment Manager and expenses we allocated to it resulted in a total contribution to our NII of $8.7 million, which is consistent with the total contribution to our NII from the second quarter of 2025.
The External Investment Manager ended the second quarter of 2026 with total assets under management of $1.8 billion.
Second Quarter 2026 Financial Results Conference Call / Webcast
Main Street has scheduled a conference call for Friday, August 7, 2026 at 10:00 a.m. Eastern time to discuss the second quarter 2026 financial results.(7)
You may access the conference call by dialing 412-902-0030 at least 10 minutes prior to the start time. The conference call can also be accessed via a simultaneous webcast by logging into the investor relations section of the Main Street website at https://www.mainstcapital.com.
A telephonic replay of the conference call will be available through Friday, August 14, 2026 and may be accessed by dialing 201-612-7415 and using the passcode 13761583#. An audio archive of the conference call will also be available on the investor relations section of the Company's website at https://www.mainstcapital.com shortly after the call and will be accessible until the date of Main Street's earnings release for the next quarter.
For a more detailed discussion of the financial and other information included in this press release, please refer to the Main Street Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2026 to be filed with the U.S. Securities and Exchange Commission (the "SEC") (www.sec.gov) and Main Street's Second Quarter 2026 Investor Presentation to be posted on the investor relations section of the Main Street website at https://www.mainstcapital.com.
ABOUT MAIN STREET CAPITAL CORPORATION
Main Street (www.mainstcapital.com) is a principal investment firm that primarily provides customized long-term debt and equity capital solutions to lower middle market companies and debt capital to private companies owned by or in the process of being acquired by a private equity fund. Main Street's portfolio investments are typically made to support management buyouts, recapitalizations, growth financings, refinancings and acquisitions of companies that operate in diverse industry sectors. Main Street seeks to partner with entrepreneurs, business owners and management teams and generally provides customized "one-stop" debt and equity financing solutions within its lower middle market investment strategy. Main Street seeks to partner with private equity fund sponsors and primarily invests in secured debt investments in its private loan investment strategy. Main Street's lower middle market portfolio companies generally have annual revenues between $10 million and $150 million. Main Street's private loan portfolio companies generally have annual revenues between $25 million and $500 million.
Main Street, through its wholly-owned portfolio company MSC Adviser I, LLC ("MSC Adviser"), also maintains an asset management business through which it manages investments for external parties. MSC Adviser is registered as an investment adviser under the Investment Advisers Act of 1940, as amended.
FORWARD-LOOKING STATEMENTS
Main Street cautions that statements in this press release which are forward‑looking and provide other than historical information, including but not limited to Main Street's ability to successfully source and execute on new portfolio investments and deliver future financial performance and results, are based on current conditions and information available to Main Street as of the date hereof and include statements regarding Main Street's goals, beliefs, strategies and future operating results and cash flows. Although its management believes that the expectations reflected in those forward‑looking statements are reasonable, Main Street can give no assurance that those expectations will prove to be correct. Those forward-looking statements are made based on various underlying assumptions and are subject to numerous uncertainties and risks, including, without limitation: Main Street's continued effectiveness in raising, investing and managing capital; adverse changes in the economy generally or in the industries in which Main Street's portfolio companies operate; the impacts of macroeconomic factors on Main Street and its portfolio companies' businesses and operations, liquidity and access to capital, and on the U.S. and global economies, including impacts related to pandemics and other public health crises, global conflicts, risk of recession, tariffs and trade disputes, inflation, supply chain constraints or disruptions and changes in market index interest rates; changes in laws and regulations or business, political and/or regulatory conditions that may adversely impact Main Street's operations or the operations of its portfolio companies; the operating and financial performance of Main Street's portfolio companies and their access to capital; retention of key investment personnel; competitive factors; and such other factors described under the captions "Cautionary Statement Concerning Forward-Looking Statements" and "Risk Factors" included in Main Street's filings with the SEC (www.sec.gov). Main Street undertakes no obligation to update the information contained herein to reflect subsequently occurring events or circumstances, except as required by applicable securities laws and regulations.
MAIN STREET CAPITAL CORPORATION
Consolidated Statements of Operations
(in thousands, except shares and per share amounts)
(Unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
INVESTMENT INCOME:
Interest, dividend and fee income:
Control investments
$ 58,182
$ 60,212
$ 119,846
$ 116,454
Affiliate investments
32,236
25,767
58,417
49,501
Non‑Control/Non‑Affiliate investments
59,154
57,994
111,415
115,064
Total investment income
149,572
143,973
289,678
281,019
EXPENSES:
Interest
(36,637)
(32,519)
(70,680)
(63,687)
Compensation
(14,239)
(12,677)
(27,424)
(24,153)
General and administrative
(5,718)
(5,919)
(11,114)
(11,005)
Share-based compensation
(5,807)
(5,416)
(10,912)
(10,258)
Expenses allocated to the External Investment Manager
6,626
5,892
12,092
11,228
Total expenses
(55,775)
(50,639)
(108,038)
(97,875)
NET INVESTMENT INCOME BEFORE TAXES
93,797
93,334
181,640
183,144
Excise tax expense
(659)
(818)
(1,040)
(2,159)
Federal and state income and other tax expenses
(2,814)
(4,333)
(5,697)
(6,905)
NET INVESTMENT INCOME
90,324
88,183
174,903
174,080
NET REALIZED GAIN (LOSS):
Control investments
46,326
(2,998)
56,361
(2,976)
Affiliate investments
—
55,647
—
57,711
Non‑Control/Non‑Affiliate investments
(13,498)
(229)
(5,560)
(31,860)
Total net realized gain
32,828
52,420
50,801
22,875
NET UNREALIZED APPRECIATION (DEPRECIATION):
Control investments
(13,398)
33,154
(60,606)
33,555
Affiliate investments
12,046
(47,745)
17,227
(8,742)
Non‑Control/Non‑Affiliate investments
33,572
(4,360)
25,000
19,426
Total net unrealized appreciation (depreciation)
32,220
(18,951)
(18,379)
44,239
Income tax benefit (provision) on net realized gain and net unrealized appreciation (depreciation)
(7,795)
882
(10,767)
(2,578)
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS
$ 147,577
$ 122,534
$ 196,558
$ 238,616
NET INVESTMENT INCOME PER SHARE—BASIC AND DILUTED
$ 0.97
$ 0.99
$ 1.90
$ 1.96
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS PER SHARE—BASIC AND DILUTED
$ 1.58
$ 1.37
$ 2.14
$ 2.68
WEIGHTED-AVERAGE SHARES OUTSTANDING—BASIC AND DILUTED
93,253,619
89,258,390
91,961,399
88,986,215
MAIN STREET CAPITAL CORPORATION
Consolidated Balance Sheets
(in thousands, except per share amounts)
June 30,
December 31,
2026
2025
(Unaudited)
ASSETS
Investments at fair value:
Control investments
$ 2,587,784
$ 2,569,626
Affiliate investments
1,005,158
965,179
Non‑Control/Non‑Affiliate investments
2,153,102
1,983,312
Total investments
5,746,044
5,518,117
Cash and cash equivalents
58,306
41,959
Interest and dividend receivable
51,541
48,719
Prepaids and other assets
70,147
59,186
Deferred financing costs, net
15,003
13,720
Total assets
$ 5,941,041
$ 5,681,701
LIABILITIES
Credit Facilities
$ 241,000
$ 518,000
March 2029 Notes
550,612
347,721
July 2026 Notes
499,978
499,715
June 2027 Notes
399,713
399,569
August 2028 Notes
348,378
347,996
SBIC debentures
345,181
344,593
April 2031 Notes
148,991
—
Accounts payable and other liabilities
54,941
67,799
Interest payable
36,711
30,094
Dividend payable
24,740
23,358
Deferred tax liability, net
124,258
108,963
Total liabilities
2,774,503
2,687,808
NET ASSETS
Common stock
934
898
Additional paid‑in capital
2,633,935
2,457,660
Total undistributed earnings
531,669
535,335
Total net assets
3,166,538
2,993,893
Total liabilities and net assets
$ 5,941,041
$ 5,681,701
NET ASSET VALUE PER SHARE
$ 33.92
$ 33.33
MAIN STREET CAPITAL CORPORATION
Reconciliation of Distributable Net Investment Income, Distributable Net Investment Income Before Taxes,
Total Non-Cash Compensation Expenses, Total Cash Expenses
and Total Cash Compensation Expenses
(in thousands, except per share amounts)
(Unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2026
2025
2026
2025
Net investment income
$ 90,324
$ 88,183
$ 174,903
$ 174,080
Non-cash compensation expenses (4)
7,068
6,161
13,275
11,183
Distributable net investment income (1)
$ 97,392
$ 94,344
$ 188,178
$ 185,263
Excise tax expense
659
818
1,040
2,159
Federal and state income and other tax expenses
2,814
4,333
5,697
6,905
Distributable net investment income before taxes (2)
$ 100,865
$ 99,495
$ 194,915
$ 194,327
Per share amounts:
Net investment income per share -
Basic and diluted
$ 0.97
$ 0.99
$ 1.90
$ 1.96
Distributable net investment income per share -
Basic and diluted (1)
$ 1.04
$ 1.06
$ 2.05
$ 2.08
Distributable net investment income before taxes per share -
Basic and diluted (2)
$ 1.08
$ 1.11
$ 2.12
$ 2.18
Three Months Ended
Six Months Ended
June 30,
June 30,
2026
2025
2026
2025
Share‑based compensation
$ (5,807)
$ (5,416)
$ (10,912)
$ (10,258)
Deferred compensation expense
(1,261)
(745)
(2,363)
(925)
Total non-cash compensation expenses (4)
(7,068)
(6,161)
(13,275)
(11,183)
Total expenses
(55,775)
(50,639)
(108,038)
(97,875)
Less non-cash compensation expenses (4)
7,068
6,161
13,275
11,183
Total cash expenses (4)
$ (48,707)
$ (44,478)
$ (94,763)
$ (86,692)
Compensation
$ (14,239)
$ (12,677)
$ (27,424)
$ (24,153)
Share-based compensation
(5,807)
(5,416)
(10,912)
(10,258)
Total compensation expenses
(20,046)
(18,093)
(38,336)
(34,411)
Non-cash compensation expenses (4)
7,068
6,161
13,275
11,183
Total cash compensation expenses (4)
$ (12,978)
$ (11,932)
$ (25,061)
$ (23,228)
MAIN STREET CAPITAL CORPORATION
Endnotes
(1)
DNII is NII as determined in accordance with U.S. Generally Accepted Accounting Principles, or U.S. GAAP, excluding the impact of non-cash compensation expenses.(4) Main Street believes presenting DNII and the related per share amount is useful and appropriate supplemental disclosure for analyzing its financial performance since non-cash compensation expenses(4) do not result in a net cash impact to Main Street upon settlement. However, DNII is a non-U.S. GAAP measure and should not be considered as a replacement for NII or other earnings measures presented in accordance with U.S. GAAP and should be reviewed only in connection with such U.S. GAAP measures in analyzing Main Street's financial performance. A reconciliation of NII in accordance with U.S. GAAP to DNII is detailed in the financial tables included with this press release.
(2)
DNII before taxes is NII as determined in accordance with U.S. GAAP, excluding the impact of non-cash compensation expenses(4) and any tax expenses included in NII. Main Street believes presenting DNII before taxes and the related per share amount is useful and appropriate supplemental disclosure for analyzing its financial performance since (i) non-cash compensation expenses(4) do not result in a net cash impact to Main Street upon settlement and (ii) tax expenses included in NII may include (a) excise tax expense, which is not solely attributable to NII, and (b) deferred taxes, which are not payable in the current period. However, DNII before taxes is a non-U.S. GAAP measure and should not be considered as a replacement for NII, NII before taxes or other earnings measures presented in accordance with U.S. GAAP and should be reviewed only in connection with such U.S. GAAP measures in analyzing Main Street's financial performance. A reconciliation of NII in accordance with U.S. GAAP to DNII before taxes is detailed in the financial tables included with this press release.
(3)
Return on equity equals the net increase in net assets resulting from operations divided by the average quarterly total net assets.
(4)
Non-cash compensation expenses consist of (i) share-based compensation and (ii) deferred compensation expense or benefit, both of which are non-cash in nature. Share-based compensation does not require settlement in cash. Deferred compensation expense or benefit does not result in a net cash impact to Main Street upon settlement. The appreciation (depreciation) in the fair value of deferred compensation plan assets is reflected in Main Street's Consolidated Statements of Operations as unrealized appreciation (depreciation) and an increase (decrease) in compensation expenses, respectively. Cash compensation expenses are total compensation expenses as determined in accordance with U.S. GAAP, less non-cash compensation expenses. Total cash expenses are total expenses, as determined in accordance with U.S. GAAP, excluding non-cash compensation expenses. Main Street believes presenting cash compensation expenses, non-cash compensation expenses and total cash expenses is useful and appropriate supplemental disclosure for analyzing its financial performance since non-cash compensation expenses do not result in a net cash impact to Main Street upon settlement. However, cash compensation expenses, non-cash compensation expenses and total cash expenses are non-U.S. GAAP measures and should not be considered as a replacement for compensation expenses, total expenses or other earnings measures presented in accordance with U.S. GAAP and should be reviewed only in connection with such U.S. GAAP measures in analyzing Main Street's financial performance. A reconciliation of compensation expenses and total expenses in accordance with U.S. GAAP to cash compensation expenses, non-cash compensation expenses and total cash expenses is detailed in the financial tables included with this press release.
(5)
Portfolio company financial information has not been independently verified by Main Street.
(6)
These credit statistics exclude portfolio companies on non-accrual status and portfolio companies for which EBITDA is not a meaningful metric.
(7)
No information contained on the Company's website or disclosed on the August 7, 2026 conference call, including the webcast and the archived versions, is incorporated by reference in this press release or any of the Company's filings with the SEC, and you should not consider that information to be part of this press release or any other such filing.
MSC Income Fund za 2. čtvrtletí vykázal čistý investiční výnos 0,26 USD na akcii a NAV 16,51 USD na akcii. Čistý nárůst čistých aktiv z operací stoupl na 29,3 mil. USD díky realizovanému zisku 11,6 mil. USD.
Second Quarter 2026 Net Investment Income of $0.26 Per Share
Second Quarter 2026 Adjusted Net Investment Income(1) of $0.33 Per Share
Second Quarter 2026 Adjusted Net Investment Income Before Taxes(2) of $0.36 Per Share
Net Asset Value of $16.51 Per Share
, /PRNewswire/ -- MSC Income Fund, Inc. (NYSE: MSIF) ("MSC Income" or the "Fund") is pleased to announce its financial results for the second quarter ended June 30, 2026.
Second Quarter 2026 Highlights
Net investment income ("NII") of $12.0 million, or $0.26 per share Adjusted net investment income ("ANII")(1) of $14.9 million, or $0.33 per share ANII before taxes(2) of $16.3 million, or $0.36 per share Total investment income of $35.7 million Net increase in net assets resulting from operations of $29.3 million, or $0.65 per share Return on equity(4) of 15.9% on an annualized basis for the quarter and 13.5% for the trailing twelve-month period ended June 30, 2026 Net asset value of $16.51 per share as of June 30, 2026, representing an increase of $0.64 per share, or 4.0%, compared to $15.87 per share as of March 31, 2026 and $0.66 per share, or 4.2%, compared to $15.85 per share as of December 31, 2025 Announced a change to the Fund's regular dividend payment frequency from quarterly to monthly, beginning in July 2026, and declared regular monthly dividends totaling $0.33 per share for the third quarter of 2026, or $0.11 per share for each of July, August and September 2026 Declared a supplemental dividend of $0.03 per share, payable in September 2026, resulting in total dividends declared in the second quarter of 2026 of $0.36 per share Completed $62.2 million in total private loan portfolio investments, which after aggregate repayments, return of invested equity capital and a decrease in cost basis due to a realized loss resulted in a net increase of $9.7 million in the total cost basis of the private loan investment portfolio Completed $13.1 million in total lower middle market ("LMM") portfolio follow-on investments, which after aggregate repayments and return of invested equity capital resulted in a net decrease of $2.2 million in the total cost basis of the LMM investment portfolio Realized a gain of $11.6 million on the exit of investments in Centre Technologies Holdings, LLC, a LMM portfolio company In commenting on the Fund's operating results for the second quarter of 2026, Dwayne L. Hyzak, MSC Income's Chief Executive Officer, stated, "We are pleased with the Fund's performance in the second quarter, which resulted in an annualized return on equity of 15.9%. The positive results included significant net fair value appreciation of the Fund's investment portfolio, including net fair value appreciation of both the private loan and lower middle market investment portfolios and including the benefit of a material realized gain in the Fund's lower middle market investment portfolio. Based upon the quality of the Fund's existing investment portfolio, together with the favorable liquidity position and the current investment pipeline, we remain excited about our future expectations for the Fund."
Second Quarter 2026 Operating Results
The following table provides a summary of the Fund's operating results for the second quarter of 2026:
Three Months Ended June 30,
2026
2025
Change
Change (%)
(dollars in thousands, except per share amounts)
Interest income
$ 30,040
$ 29,349
$ 691
2 %
Dividend income
3,829
4,956
(1,127)
(23) %
Fee income
1,831
1,338
493
37 %
Total investment income
$ 35,700
$ 35,643
$ 57
— %
Net investment income
$ 11,999
$ 16,307
$ (4,308)
(26) %
Net investment income per share
$ 0.26
$ 0.35
$ (0.09)
(26) %
Adjusted net investment income (1)
$ 14,948
$ 16,307
$ (1,359)
(8) %
Adjusted net investment income per share (1)
$ 0.33
$ 0.35
$ (0.02)
(6) %
Adjusted net investment income before taxes (2)
$ 16,323
$ 17,306
$ (983)
(6) %
Adjusted net investment income before taxes per share (2)
$ 0.36
$ 0.37
$ (0.01)
(3) %
Net increase in net assets resulting from operations
$ 29,272
$ 16,289
$ 12,983
80 %
Net increase in net assets resulting from operations per share
$ 0.65
$ 0.35
$ 0.30
86 %
Return on equity - quarter annualized (4)
15.9 %
9.0 %
6.9 %
77 %
The $0.1 million increase in total investment income in the second quarter of 2026 from the comparable period of the prior year was principally attributable to (i) a $0.7 million increase in interest income, primarily due to higher average levels of income producing investment portfolio debt investments, partially offset by a decrease in interest rates, primarily resulting from decreases in benchmark index rates on floating rate investment portfolio debt investments, and the negative impact from investment portfolio debt investments on non-accrual status and (ii) a $0.5 million increase in fee income, primarily due to an increase in fee income from the refinancing and prepayment of investment portfolio debt investments. These increases were partially offset by a $1.1 million decrease in dividend income, primarily due to a $0.9 million decrease in dividend income from the Fund's LMM portfolio companies. The $0.1 million increase in total investment income in the second quarter of 2026 includes the impact of an increase of $1.4 million in certain income considered less consistent or non-recurring, primarily related to increases of (i) $0.7 million in such fee income and (ii) $0.5 million in such dividend income, in each case when compared to the same period in 2025.
Total expenses, net of waivers, increased by $4.0 million, or 21.8%, to $22.3 million in the second quarter of 2026 from $18.3 million for the same period in 2025. This increase was principally attributable to (i) a $2.9 million increase in the ending accrual for the accrued capital gains incentive fee(3) as of June 30, 2026, (ii) a $1.2 million increase in interest expense and (iii) a $0.4 million increase in base management fees, partially offset by a $0.6 million decrease in incentive fee on income, net of waivers. The increase in the capital gains incentive fee accrual(3) was due to the net fair value appreciation of the Fund's investments in the second quarter of 2026. The increase in interest expense was primarily related to (i) an increase in average borrowings outstanding used to fund a portion of the growth of the Fund's investment portfolio and (ii) an increased weighted-average interest rate on the Fund's unsecured debt obligations, driven by the issuance of the May 2029 Notes in the first quarter of 2026, partially offset by a decreased weighted-average interest rate on the Credit Facilities due to decreases in benchmark floating index interest rates (with the May 2029 Notes and the Credit Facilities each defined in the Liquidity and Capital Resources section below). The increase in base management fees was primarily the result of the Fund's increased average total assets. The decrease in incentive fee on income, net of waivers, was the result of (a) a decrease in the gross calculated incentive fee on income of $0.3 million, primarily driven by a decrease in pre-incentive NII, and (b) a $0.3 million voluntary waiver of incentive fee on income by the Adviser (defined below).
The Fund's ratio of total non-interest operating expenses, excluding incentive fees, net of waivers, as a percentage of quarterly average total assets, or the Operating Expenses to Assets Ratio, was 1.9% on an annualized basis for the second quarter of 2026, consistent with the second quarter of 2025.
The $4.3 million decrease in NII in the second quarter of 2026 from the comparable period of the prior year was principally attributable to an increase in total expenses, net of waivers, partially offset by an increase in total investment income, each as discussed above. NII on a per share basis decreased by $0.09 per share for the second quarter of 2026 as compared to the second quarter of 2025, to $0.26 per share, reflecting the impact of the $0.07 per share capital gains incentive fee accrual(3) in the second quarter of 2026.
The $1.4 million, or $0.02 per share, decrease in ANII(1) in the second quarter of 2026 to $14.9 million, or $0.33 per share, from $16.3 million, or $0.35 per share, in the second quarter of 2025 was principally attributable to the same factors noted above for the change in NII, but excluding the impact of the $2.9 million increase in the capital gains incentive fee accrual.(3)
The per share changes in NII and ANII(1) in the second quarter of 2026 from the comparable period of the prior year include the impact of a 3.6% decrease in the weighted-average shares outstanding, primarily due to shares repurchased by the Fund, partially offset by shares issued through the dividend reinvestment plan, in each case since the beginning of the comparable period of the prior year. NII and ANII(1) on a per share basis in the second quarter of 2026 each include an increase of $0.03 per share resulting from an increase in investment income considered less consistent or non-recurring in nature compared to the second quarter of 2025, as discussed above.
The $29.3 million net increase in net assets resulting from operations in the second quarter of 2026 represents a $13.0 million increase from the second quarter of 2025. This increase was primarily the result of an $18.1 million increase in the net fair value change of the Fund's portfolio investments resulting from the net impact of net realized gains/losses and net unrealized appreciation/depreciation, with the increase resulting from a net fair value increase of $19.0 million in the second quarter of 2026 compared to a net fair value increase of $0.9 million in the comparable period of the prior year, partially offset by (i) a $4.3 million decrease in NII as discussed above and (ii) a $0.8 million increase in the net tax provision on the net fair value change of the portfolio investments, resulting from a net tax provision of $1.7 million in the second quarter of 2026 compared to a net tax provision of $0.9 million in the comparable period of the prior year. The $19.0 million net fair value increase in the second quarter of 2026 was the result of a net realized gain of $9.9 million and net unrealized appreciation (including the reversal of net fair value appreciation recognized in prior periods due to the net realized gain in the quarter) of $9.1 million. The $0.9 million net fair value increase in the second quarter of 2025 was the result of a net realized gain of $4.8 million, partially offset by net unrealized depreciation of $3.9 million. The $9.9 million net realized gain from investments for the second quarter of 2026 was primarily the result of an $11.6 million realized gain on the full exit of a LMM portfolio investment, partially offset by a $1.9 million realized loss on the restructure of a private loan portfolio investment.
The following table provides a summary of the total net unrealized appreciation of $9.1 million for the second quarter of 2026:
Three Months Ended June 30, 2026
Private
Loan
LMM (a)
Middle
Market
Other
Total
(in millions)
Accounting reversals of net unrealized (appreciation)
depreciation recognized in prior periods due to net realized
(gains / income) losses recognized during the current period
$ 1.3
$ (11.9)
$ —
$ —
$ (10.6)
Net unrealized appreciation (depreciation) relating to portfolio
investments
11.2
10.3
(1.6)
(0.2)
19.7
Total net unrealized appreciation (depreciation) relating to
portfolio investments
$ 12.5
$ (1.6)
$ (1.6)
$ (0.2)
$ 9.1
(a)
Includes unrealized appreciation on 27 LMM portfolio investments and unrealized depreciation on 17 LMM portfolio investments.
Liquidity and Capital Resources
As of June 30, 2026, the Fund had aggregate liquidity of $210.5 million, including (i) $28.1 million in cash and cash equivalents and (ii) $182.4 million of aggregate unused capacity under the Fund's corporate revolving credit facility (the "Corporate Facility") and the Fund's special purpose vehicle revolving credit facility (the "SPV Facility" and, together with the Corporate Facility, the "Credit Facilities"), which the Fund maintains to support its investment and operating activities.
Several details regarding the Fund's capital structure as of June 30, 2026 are as follows:
The SPV Facility included $300.0 million in total commitments plus an accordion feature that allows the Fund to request an increase in the total commitments under the facility to up to $450.0 million. $249.0 million in outstanding borrowings under the SPV Facility, with an interest rate of 5.9% based on the applicable Secured Overnight Financing Rate ("SOFR") effective for the contractual reset date of July 1, 2026. The Corporate Facility included $245.0 million in total commitments from a diversified group of seven participating lenders, plus an accordion feature that allows the Fund to request an increase in the total commitments under the facility to up to $300.0 million. $113.0 million in outstanding borrowings under the Corporate Facility, with an interest rate of 5.7% based on the applicable SOFR effective for the contractual reset date of July 1, 2026. $150.0 million of unsecured notes outstanding that bear interest at a rate of 4.04% per year (the "October 2026 Notes"). The October 2026 Notes mature on October 30, 2026 and may be redeemed in whole or in part at any time at the Fund's option subject to certain make-whole provisions. $150.0 million of May 2029 Notes outstanding that bear interest at a rate of 6.34% per year. The May 2029 Notes mature on May 31, 2029 and may be redeemed in whole or in part at any time at the Fund's option subject to certain make-whole provisions. The Fund maintains an investment grade rating from Kroll Bond Rating Agency, LLC ("KBRA") of BBB- with a stable outlook. The Fund's net asset value totaled $748.8 million, or $16.51 per share. The Fund's debt-to-equity ratio was 0.88x as of June 30, 2026. Share Purchase Plan
In August 2026, the Fund's board of directors authorized a share repurchase plan pursuant to which the Fund may repurchase up to $20.0 million of shares of its common stock for a period beginning in September 2026 and ending in February 2027, at times when the market price per share of the common stock is trading below the most recently reported net asset value per share of the common stock by certain pre-determined levels. Pursuant to such authorization, the Fund intends to enter into a share repurchase plan (the "Fund Rule 10b5-1 Stock Repurchase Plan") to facilitate the repurchase of up to the full $20.0 million of shares of its common stock authorized under the share repurchase program. The repurchases of any shares pursuant to the Fund Rule 10b5-1 Stock Repurchase Plan will be implemented in accordance with Rule 10b5-1 and Rule 10b-18 under the Securities Exchange Act of 1934 (the "Exchange Act").
In August 2026, Main Street Capital Corporation (NYSE: MAIN) ("Main Street"), parent company of the Adviser, authorized a plan pursuant to which Main Street may purchase up to $20.0 million of shares of the Fund's common stock in the open market during the same time period, pursuant to the terms of a share purchase plan (the "Main Street Rule 10b5-1 Stock Purchase Plan") that Main Street intends to enter into in connection with the Fund Rule 10b5-1 Stock Repurchase Plan. The purchases of any shares pursuant to the Main Street Rule 10b5-1 Stock Purchase Plan will be implemented in accordance with Rule 10b5-1 and Rule 10b-18 under the Exchange Act.
The terms and conditions of the Fund Rule 10b5-1 Stock Repurchase Plan and of the Main Street Rule 10b5-1 Purchase Plan will be substantially similar. Subject to the limitations under Rule 10b-18 under the Exchange Act and market conditions, the Fund expects that the aggregate amount of shares (i) repurchased under the Fund Rule 10b5-1 Stock Repurchase Plan and (ii) purchased under the Main Street Rule 10b5-1 Purchase Plan on any single trading day will be split among the Fund and Main Street on a pro rata basis (or as close thereto as reasonably possible) based upon the proportion of the aggregate $40.0 million repurchase/purchase commitment represented by the respective share repurchase/purchase program. There is no assurance that the Fund will repurchase or Main Street will purchase any shares of the Fund's common stock at any specific discount levels or in any specific amounts under the Fund Rule 10b5-1 Stock Repurchase Plan or the Main Street Rule 10b5-1 Purchase Plan, as applicable. There is also no assurance that the market price of the Fund's shares of common stock, either absolutely or relative to net asset value per share, will increase as a result of any share repurchases/purchases, or that the Fund Rule 10b5-1 Stock Repurchase Plan or the Main Street Rule 10b5-1 Purchase Plan will enhance stockholder value over the long term.
Investment Portfolio Information as of June 30, 2026(5)
The following table provides a summary of the investments in the Fund's private loan portfolio and LMM portfolio as of June 30, 2026:
June 30, 2026
Private Loan
LMM (a)
(dollars in millions)
Number of portfolio companies
81
55
Fair value
$ 848.5
$ 503.9
Cost
$ 856.3
$ 397.6
Debt investments as a % of portfolio (at cost)
92.9 %
71.1 %
Equity investments as a % of portfolio (at cost)
7.1 %
28.9 %
% of debt investments at cost secured by first priority lien
99.5 %
99.9 %
Weighted-average annual effective yield (b)
10.4 %
12.7 %
Average EBITDA (c)
$ 32.9
$ 13.1
(a)
The Fund had equity ownership in all of its LMM portfolio companies, and the Fund's average fully diluted equity ownership in those portfolio companies was 8%.
(b)
The weighted-average annual effective yields were computed using the effective interest rates for all debt investments as of June 30, 2026, including amortization of deferred debt origination fees and accretion of original issue discount but excluding fees payable upon repayment of the debt investments and any debt investments on non-accrual status, and are weighted based upon the principal amount of each applicable debt investment as of June 30, 2026.
(c)
The average EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is calculated using a weighted-average for the private loan portfolio companies and a simple average for the LMM portfolio companies. These calculations exclude certain portfolio companies, including three private loan portfolio companies and four LMM portfolio companies, as EBITDA is not a meaningful valuation metric for the Fund's investments in these portfolio companies, and those portfolio companies whose primary operations have ceased and only residual value remains.
The Fund's total investment portfolio at fair value consists of approximately 61% private loan, 36% LMM, 2% middle market and 1% other portfolio investments.
The fair value of the Fund's LMM portfolio company equity investments was 202% of the related cost basis of such equity investments, and the Fund's LMM portfolio companies had a median net senior debt (senior interest-bearing debt through the Fund's debt position less cash and cash equivalents) to EBITDA ratio of 2.7 to 1.0 and a median total EBITDA to senior interest expense ratio of 3.0 to 1.0. Including all debt that is junior in priority to the Fund's debt position, these median ratios were 2.7 to 1.0 and 2.9 to 1.0, respectively.(5)(6)
As of June 30, 2026, the Fund's investment portfolio also included:
Middle market portfolio investments in eight portfolio companies, collectively totaling $21.9 million in fair value and $40.8 million in cost basis, which comprised 1.6% and 3.1% of the Fund's investment portfolio at fair value and cost, respectively; and Other portfolio investments in seven entities, spread across four investment managers, collectively totaling $15.2 million in fair value and $13.2 million in cost basis, which comprised 1.1% and 1.0% of the Fund's investment portfolio at fair value and cost, respectively. As of June 30, 2026, investments on non-accrual status comprised 1.9% of the total investment portfolio at fair value and 5.8% at cost, and the Fund's total portfolio investments at fair value were 106% of the related cost basis.
Second Quarter 2026 Financial Results Conference Call / Webcast
MSC Income has scheduled a conference call for Friday, August 7, 2026 at 11:00 a.m. Eastern time to discuss the second quarter 2026 financial results.(7)
You may access the conference call by dialing 412-902-0030 at least 10 minutes prior to the start time. The conference call can also be accessed via a simultaneous webcast by logging into the investor relations section of the Fund's website at https://www.mscincomefund.com.
A telephonic replay of the conference call will be available through Friday, August 14, 2026 and may be accessed by dialing 201-612-7415 and using the passcode 13761585#. An audio archive of the conference call will also be available on the investor relations section of the Fund's website at https://www.mscincomefund.com shortly after the call and will be accessible until the date of MSC Income's earnings release for the next quarter.
For a more detailed discussion of the financial and other information included in this press release, please refer to the MSC Income Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2026 to be filed with the U.S. Securities and Exchange Commission (the "SEC") (www.sec.gov) and MSC Income's Second Quarter 2026 Investor Presentation to be posted on the investor relations section of the MSC Income website at https://www.mscincomefund.com.
ABOUT MSC INCOME FUND, INC.
The Fund (www.mscincomefund.com) is a principal investment firm that primarily provides debt capital to private companies owned by or in the process of being acquired by a private equity fund. The Fund's portfolio investments are typically made to support leveraged buyouts, recapitalizations, growth financings, refinancings and acquisitions of companies that operate in diverse industry sectors. The Fund seeks to partner with private equity fund sponsors and primarily invests in secured debt investments within its private loan investment strategy. The Fund also maintains a portfolio of customized long-term debt and equity investments in lower middle market companies, and through those investments, the Fund has partnered with entrepreneurs, business owners and management teams in co-investments with Main Street Capital Corporation (NYSE: MAIN) ("Main Street") utilizing the customized "one-stop" debt and equity financing solutions provided in Main Street's lower middle market investment strategy. The Fund's private loan portfolio companies generally have annual revenues between $25 million and $500 million. The Fund's lower middle market portfolio companies generally have annual revenues between $10 million and $150 million.
ABOUT MSC ADVISER I, LLC
MSC Adviser I, LLC (the "Adviser") is a wholly-owned subsidiary of Main Street that is registered as an investment adviser under the Investment Advisers Act of 1940, as amended. The Adviser serves as the investment adviser and administrator of the Fund in addition to several other advisory clients.
FORWARD-LOOKING STATEMENTS
MSC Income cautions that statements in this press release which are forward‑looking and provide other than historical information, including but not limited to MSC Income's ability to successfully source and execute on new portfolio investments and deliver future financial performance and results, are based on current conditions and information available to MSC Income as of the date hereof and include statements regarding MSC Income's goals, beliefs, strategies and future operating results and cash flows. Although its management believes that the expectations reflected in those forward‑looking statements are reasonable, MSC Income can give no assurance that those expectations will prove to be correct. Those forward-looking statements are made based on various underlying assumptions and are subject to numerous uncertainties and risks, including, without limitation: MSC Income's continued effectiveness in raising, investing and managing capital; adverse changes in the economy generally or in the industries in which MSC Income's portfolio companies operate; the impacts of macroeconomic factors on MSC Income and its portfolio companies' businesses and operations, liquidity and access to capital, and on the U.S. and global economies, including impacts related to pandemics and other public health crises, global conflicts, risk of recession, tariffs and trade disputes, inflation, supply chain constraints or disruptions and changes in market index interest rates; changes in laws and regulations or business, political and/or regulatory conditions that may adversely impact MSC Income's operations or the operations of its portfolio companies; the operating and financial performance of MSC Income's portfolio companies and their access to capital; retention of key investment personnel by the Adviser; competitive factors; and such other factors described under the captions "Cautionary Statement Concerning Forward-Looking Statements" and "Risk Factors" included in MSC Income's filings with the SEC (www.sec.gov). MSC Income undertakes no obligation to update the information contained herein to reflect subsequently occurring events or circumstances, except as required by applicable securities laws and regulations.
MSC INCOME FUND, INC.
Consolidated Statements of Operations
(in thousands, except shares and per share amounts)
(Unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
INVESTMENT INCOME:
Interest, dividend and fee income:
Control investments
$ 1,032
$ 1,514
$ 2,227
$ 2,956
Affiliate investments
9,602
9,617
18,849
18,952
Non-Control/Non-Affiliate investments
25,066
24,512
48,711
46,962
Total investment income
35,700
35,643
69,787
68,870
EXPENSES:
Interest
(9,865)
(8,678)
(18,785)
(16,921)
Base management fee
(5,341)
(4,907)
(10,566)
(9,879)
Incentive fee on income
(3,117)
(3,431)
(6,216)
(5,454)
Incentive fee on capital gains (3)
(2,949)
—
(2,311)
—
General and administrative
(1,124)
(1,149)
(2,163)
(2,176)
Internal administrative services expenses
(188)
(172)
(374)
(346)
Total expenses before expense waivers
(22,584)
(18,337)
(40,415)
(34,776)
Waiver of incentive fee on income
258
—
1,243
—
Total expenses, net of expense waivers
(22,326)
(18,337)
(39,172)
(34,776)
NET INVESTMENT INCOME BEFORE TAXES
13,374
17,306
30,615
34,094
Excise tax expense
(239)
(87)
(289)
(279)
Federal and state income and other tax expenses
(1,136)
(912)
(2,092)
(1,761)
NET INVESTMENT INCOME
11,999
16,307
28,234
32,054
NET REALIZED GAIN (LOSS):
Control investments
—
5,296
—
5,305
Affiliate investments
11,595
2
9,939
2
Non‑Control/Non‑Affiliate investments
(1,738)
(519)
(323)
(21,594)
Total net realized gain (loss)
9,857
4,779
9,616
(16,287)
NET UNREALIZED APPRECIATION (DEPRECIATION):
Control investments
(1,529)
(5,068)
(5,981)
(5,901)
Affiliate investments
(1,459)
(69)
6,964
2,767
Non‑Control/Non‑Affiliate investments
12,092
1,233
5,478
18,013
Total net unrealized appreciation (depreciation)
9,104
(3,904)
6,461
14,879
Income tax benefit (provision) on net realized gain (loss) and net
unrealized appreciation (depreciation)
(1,688)
(893)
(1,816)
1,518
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS
$ 29,272
$ 16,289
$ 42,495
$ 32,164
NET INVESTMENT INCOME BEFORE TAXES PER
SHARE—BASIC AND DILUTED
$ 0.29
$ 0.37
$ 0.67
$ 0.74
NET INVESTMENT INCOME PER SHARE—BASIC AND
DILUTED
$ 0.26
$ 0.35
$ 0.62
$ 0.70
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS PER SHARE—BASIC AND DILUTED
$ 0.65
$ 0.35
$ 0.93
$ 0.70
WEIGHTED-AVERAGE SHARES
OUTSTANDING—BASIC AND DILUTED
45,345,229
47,047,888
45,728,932
45,870,527
MSC INCOME FUND, INC.
Consolidated Balance Sheets
(in thousands, except per share amounts)
June 30,
2026
December 31,
2025
(Unaudited)
ASSETS
Investments at fair value:
Control investments
$ 52,620
$ 58,372
Affiliate investments
418,827
406,771
Non‑Control/Non‑Affiliate investments
917,956
870,244
Total investments
1,389,403
1,335,387
Cash and cash equivalents
28,055
20,635
Interest and dividend receivable
11,722
12,273
Prepaids and other assets
11,740
9,546
Deferred financing costs
2,909
3,190
Total assets
$ 1,443,829
$ 1,381,031
LIABILITIES
Credit Facilities
$ 362,000
$ 453,000
October 2026 Notes
149,901
149,751
May 2029 Notes
149,279
—
Accounts payable and other liabilities
2,428
786
Interest payable
8,295
5,946
Dividend payable
—
16,772
Base management and incentive fees payable
8,198
8,388
Capital gains incentive fee accrual (3)
5,074
2,763
Deferred tax liability, net
9,854
4,966
Total liabilities
695,029
642,372
NET ASSETS
Common stock
45
47
Additional paid-in capital
765,979
782,007
Total overdistributed earnings
(17,224)
(43,395)
Total net assets
748,800
738,659
Total liabilities and net assets
$ 1,443,829
$ 1,381,031
NET ASSET VALUE PER SHARE
$ 16.51
$ 15.85
MSC INCOME FUND, INC.
Reconciliation of Adjusted Net Investment Income and Adjusted Net Investment Income Before Taxes
(in thousands, except per share amounts)
(Unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2026
2025
2026
2025
Net investment income
$ 11,999
$ 16,307
$ 28,234
$ 32,054
Incentive fee on capital gains (3)
2,949
—
2,311
—
Adjusted net investment income (1)
14,948
16,307
30,545
32,054
Excise tax expense
239
87
289
279
Federal and state income and other tax expenses
1,136
912
2,092
1,761
Adjusted net investment income before taxes (2)
$ 16,323
$ 17,306
$ 32,926
$ 34,094
Per share amounts:
Net investment income per share -
Basic and diluted
$ 0.26
$ 0.35
$ 0.62
$ 0.70
Adjusted net investment income per share -
Basic and diluted (1)
$ 0.33
$ 0.35
$ 0.67
$ 0.70
Adjusted net investment income before taxes per share -
Basic and diluted (2)
$ 0.36
$ 0.37
$ 0.72
$ 0.74
MSC INCOME FUND, INC.
Endnotes
(1)
ANII is NII as determined in accordance with U.S. Generally Accepted Accounting Principles, or U.S. GAAP, excluding the impact of the capital gains incentive fee(3). MSC Income believes presenting ANII and the related per share amount is useful and appropriate supplemental disclosure for analyzing the Fund's financial performance since the calculation of the capital gains incentive fee is based on realized gains and losses and unrealized fair value appreciation and depreciation, none of which are included in NII. However, ANII is a non-U.S. GAAP measure and should not be considered as a replacement for NII or other earnings measures presented in accordance with U.S. GAAP and should be reviewed only in connection with such U.S. GAAP measures in analyzing MSC Income's financial performance. A reconciliation of NII in accordance with U.S. GAAP to ANII is detailed in the financial tables included with this press release.
(2)
ANII before taxes is NII as determined in accordance with U.S. GAAP, excluding the impact of any tax expenses included in NII and the capital gains incentive fee(3). MSC Income believes presenting ANII before taxes and the related per share amount is useful and appropriate supplemental disclosure for analyzing the Fund's financial performance since (i) the calculation of the capital gains incentive fee is based on realized gains and losses and unrealized fair value appreciation and depreciation, none of which are included in NII, and (ii) tax expenses included in NII may include (a) excise tax expense, which is not solely attributable to NII, and (b) deferred taxes, which are not payable in the current period. However, ANII before taxes is a non-U.S. GAAP measure and should not be considered as a replacement for NII, NII before taxes or other earnings measures presented in accordance with U.S. GAAP and should be reviewed only in connection with such U.S. GAAP measures in analyzing MSC Income's financial performance. A reconciliation of NII in accordance with U.S. GAAP to ANII before taxes is detailed in the financial tables included with this press release.
(3)
Pursuant to the Fund's amended advisory agreement, the incentive fee on capital gains is determined and payable to the Adviser in arrears, if any, as of the end of each calendar year. This fee equals (a) 17.5% of the Fund's incentive fee capital gain, which is calculated as the Fund's (i) cumulative net realized gains (net of any related net income tax expense), minus (ii) cumulative unrealized depreciation (net of any related income tax benefit, and excluding any unrealized appreciation), minus (b) the aggregate amount of any previously paid capital gains incentive fee, in each case from the MSC Income Listing date through the applicable calendar year ended. In accordance with U.S. GAAP, at the end of each reporting period, the Fund estimates the capital gains incentive fee and adjusts the accrual for the fee based upon a hypothetical liquidation of its investment portfolio at the then current fair value. Therefore, the calculation of the accrual equals (a) 17.5% of the Fund's cumulative change in net fair value, including both (i) the cumulative net realized gain/loss and (ii) the cumulative net unrealized appreciation/depreciation (in both cases, net of any related cumulative net income tax expense or benefit), minus (b) the aggregate amount of any previously paid capital gains incentive fee, in each case from the date of the listing of the Fund's common stock on the New York Stock Exchange on January 29, 2025 through the applicable period ended. However, any capital gains incentive fee accrued related to the unrealized appreciation is neither earned nor payable to the Adviser until such time that it is realized, and assuming at the end of a calendar year such incentive fee capital gain exists excluding any cumulative unrealized appreciation (in each case, net of any related net income tax expense or benefits). If the calculation results in an increase in the accrual compared to the previous quarter, the Fund records an increase to the capital gains incentive fee accrual. If the calculation results in a decrease to the estimated incentive fee on capital gains when compared to the previous quarter, the accrual for the incentive fee on capital gains is reduced to the extent of such decrease. For the second quarter of 2026, the Fund increased the accrual on the capital gains incentive fee by $2.9 million. For further discussion, see Note I — Related Party Transactions and Arrangements in the notes to the consolidated financial statements included in Item 1. Consolidated Financial Statements and Supplementary Data of the Fund's Quarterly Report on Form 10-Q to be filed with the SEC on August 7, 2026.
(4)
Return on equity equals the net increase in net assets resulting from operations divided by the average quarterly total net assets.
(5)
Portfolio company financial information has not been independently verified by MSC Income.
(6)
These credit statistics exclude portfolio companies on non-accrual status and portfolio companies for which EBITDA is not a meaningful metric.
(7)
No information contained on the Fund's website or disclosed on the August 7, 2026 conference call, including the webcast and the archived versions, is incorporated by reference in this press release or any of the Fund's filings with the SEC, and you should not consider that information to be part of this press release or any other such filing.
Contacts:
MSC Income Fund, Inc.
Dwayne L. Hyzak, CEO, [email protected]
Cory E. Gilbert, CFO, [email protected]
713-350-6000
MSC Income Fund oznámil čtvrtletní dividendu ve výši 0,11 USD na akcii za říjen, listopad a prosinec 2026. V prosinci přidá i mimořádnou dividendu ve výši 0,03 USD na akcii.
Regular Monthly Dividends of $0.11 Per Share for each of October, November and December 2026
Supplemental Dividend of $0.03 Per Share Payable in December 2026
, /PRNewswire/ -- MSC Income Fund, Inc. (NYSE: MSIF) (the "Fund") is pleased to announce that its Board of Directors declared regular monthly cash dividends of $0.11 per share for each of October, November and December 2026. These monthly dividends, which will be payable pursuant to the table below, total $0.33 per share for the fourth quarter of 2026.
Summary of Fourth Quarter 2026 Regular Monthly Dividends
Declared
Ex-Dividend Date
Record Date
Payment Date
Amount Per Share
8/5/2026
10/2/2026
10/2/2026
10/9/2026
$0.11
8/5/2026
11/2/2026
11/2/2026
11/9/2026
$0.11
8/5/2026
12/2/2026
12/2/2026
12/9/2026
$0.11
Total for Fourth Quarter 2026:
$0.33
In addition to the regular monthly dividends for the fourth quarter of 2026, the Board of Directors declared a supplemental cash dividend of $0.03 per share payable in December 2026. This supplemental cash dividend, which will be payable as set forth in the table below, will be paid out of the Fund's undistributed taxable income (taxable income in excess of dividends paid) as of June 30, 2026.
Supplemental Cash Dividend Payable in December 2026
Declared
Ex-Dividend Date
Record Date
Payment Date
Amount Per Share
8/5/2026
12/16/2026
12/16/2026
12/23/2026
$0.03
The final determination of the tax attributes for dividends each year are made after the close of the tax year. The final tax attributes for 2026 dividends are currently expected to include a combination of ordinary taxable income and qualified dividends and may include capital gains and return of capital.
The Fund maintains a dividend reinvestment plan (the "DRIP") which provides for the reinvestment of dividends on behalf of its registered stockholders who hold their shares with the Fund's transfer agent and registrar or certain brokerage firms that have elected to participate in the DRIP. Under the DRIP, if the Fund declares a dividend, registered stockholders who have not "opted out" of the DRIP at least ten days prior to the next dividend payment date will have their dividend automatically reinvested into additional shares of the Fund's common stock.
ABOUT MSC INCOME FUND, INC.
The Fund (www.mscincomefund.com) is a principal investment firm that primarily provides debt capital to private companies owned by or in the process of being acquired by a private equity fund. The Fund's portfolio investments are typically made to support leveraged buyouts, recapitalizations, growth financings, refinancings and acquisitions of companies that operate in diverse industry sectors. The Fund seeks to partner with private equity fund sponsors and primarily invests in secured debt investments within its private loan investment strategy. The Fund also maintains a portfolio of customized long-term debt and equity investments in lower middle market companies, and through those investments, the Fund has partnered with entrepreneurs, business owners and management teams in co-investments with Main Street Capital Corporation (NYSE: MAIN) ("Main Street") utilizing the customized "one-stop" debt and equity financing solutions provided in Main Street's lower middle market investment strategy. The Fund's private loan portfolio companies generally have annual revenues between $25 million and $500 million. The Fund's lower middle market portfolio companies generally have annual revenues between $10 million and $150 million.
ABOUT MSC ADVISER I, LLC
MSC Adviser I, LLC ("MSCA") is a wholly-owned subsidiary of Main Street that is registered as an investment adviser under the Investment Advisers Act of 1940, as amended. MSCA serves as the investment adviser and administrator of the Fund in addition to several other advisory clients.
FORWARD-LOOKING STATEMENTS
This press release contains certain forward-looking statements, including but not limited to the continued payment of future dividends and the potential tax attributes for 2026 dividends, which are based upon the Fund management's current expectations and are inherently uncertain. Any such statements other than statements of historical fact are likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under the Fund's control, and that the Fund may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual performance, events and results could vary materially from these estimates and projections of the future as a result of a number of factors, including those described from time to time in the Fund's filings with the U.S. Securities and Exchange Commission. Such statements speak only as of the time when made and are based on information available to the Fund as of the date hereof and are qualified in their entirety by this cautionary statement. The Fund assumes no obligation to revise or update any such statement now or in the future.
Main Street Capital oznámila čtvrtletní běžné měsíční dividendy ve výši 0,265 USD na akcii za říjen, listopad a prosinec 2026. V září 2026 vyplatí také mimořádnou dividendu 0,30 USD na akcii.
Regular Monthly Dividends of $0.265 Per Share for each of October, November and December 2026
Supplemental Dividend of $0.30 Per Share Payable in September 2026
, /PRNewswire/ -- Main Street Capital Corporation (NYSE: MAIN) ("Main Street") is pleased to announce that its Board of Directors declared regular monthly cash dividends of $0.265 per share for each of October, November and December 2026. These monthly dividends, which will be payable pursuant to the table below, total $0.795 per share for the fourth quarter of 2026 and are consistent with the regular monthly dividends declared for the third quarter of 2026 and represent a 3.9% increase from the regular monthly dividends paid in the fourth quarter of 2025. Since its October 2007 initial public offering, Main Street has periodically increased the amount of its regular monthly dividends paid per share and has never reduced its regular monthly dividend amount per share.
Summary of Fourth Quarter 2026 Regular Monthly Dividends
Declared
Ex-Dividend Date
Record Date
Payment Date
Amount Per Share
8/3/2026
10/8/2026
10/8/2026
10/15/2026
$0.265
8/3/2026
11/6/2026
11/6/2026
11/13/2026
$0.265
8/3/2026
12/8/2026
12/8/2026
12/15/2026
$0.265
Total for Fourth Quarter 2026:
$0.795
In addition to the regular monthly dividends for the fourth quarter of 2026, the Board of Directors declared a supplemental cash dividend of $0.30 per share payable in September 2026. This supplemental cash dividend, which will be payable as set forth in the table below, will be paid out of Main Street's undistributed taxable income (taxable income in excess of dividends paid) as of June 30, 2026.
Supplemental Cash Dividend Payable in September 2026
Declared
Ex-Dividend Date
Record Date
Payment Date
Amount Per Share
8/3/2026
9/21/2026
9/21/2026
9/28/2026
$0.30
Including all dividends declared to date, including the fourth quarter 2026 regular monthly dividends and the September 2026 supplemental dividend, Main Street will have paid $51.205 per share in cumulative cash dividends since its October 2007 initial public offering at $15.00 per share. Including the fourth quarter 2026 regular monthly dividends and the September 2026 supplemental dividend, these most recent dividend declarations represent total dividends to Main Street shareholders of $1.095 per share, representing an annualized current yield of 7.9% based on the closing price of $55.75 per share on August 3, 2026.
The final determination of the tax attributes for dividends each year are made after the close of the tax year. The final tax attributes for 2026 dividends are currently expected to include a combination of ordinary taxable income and qualified dividends and may include capital gains and return of capital.
Main Street maintains a dividend reinvestment and direct stock purchase plan (the "Plan"). The dividend reinvestment feature of the Plan (the "DRIP") provides for the reinvestment of dividends on behalf of Main Street's registered stockholders who hold their shares with Main Street's transfer agent and registrar, Equiniti Trust Company, LLC, or certain brokerage firms that have elected to participate in the DRIP. Under the DRIP, if Main Street declares a dividend, registered stockholders who have not "opted out" of the DRIP by the dividend record date will have their dividend automatically reinvested into additional shares of Main Street common stock. The direct stock purchase feature of the Plan (the "DSPP") provides investors with a convenient and economical method to purchase shares of Main Street common stock. More information about the Plan (including the DSPP prospectus) can be found on the Main Street website (https://ir.mainstcapital.com/dividend-reinvestment-and-direct-stock-purchase-plan).
ABOUT MAIN STREET CAPITAL CORPORATION
Main Street (www.mainstcapital.com) is a principal investment firm that primarily provides customized long-term debt and equity capital solutions to lower middle market companies and debt capital to private companies owned by or in the process of being acquired by a private equity fund. Main Street's portfolio investments are typically made to support management buyouts, recapitalizations, growth financings, refinancings and acquisitions of companies that operate in diverse industry sectors. Main Street seeks to partner with entrepreneurs, business owners and management teams and generally provides customized "one-stop" debt and equity financing solutions within its lower middle market investment strategy. Main Street seeks to partner with private equity fund sponsors and primarily invests in secured debt investments in its private loan investment strategy. Main Street's lower middle market portfolio companies generally have annual revenues between $10 million and $150 million. Main Street's private loan portfolio companies generally have annual revenues between $25 million and $500 million.
Main Street, through its wholly-owned portfolio company MSC Adviser I, LLC ("MSC Adviser"), also maintains an asset management business through which it manages investments for external parties. MSC Adviser is registered as an investment adviser under the Investment Advisers Act of 1940, as amended.
FORWARD-LOOKING STATEMENTS
This press release contains certain forward-looking statements, including but not limited to the continued payment and growth of future dividends and the potential tax attributes for 2026 dividends, which are based upon Main Street management's current expectations and are inherently uncertain. Any such statements other than statements of historical fact are likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under Main Street's control, and that Main Street may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual performance, events and results could vary materially from these estimates and projections of the future as a result of a number of factors, including those described from time to time in Main Street's filings with the U.S. Securities and Exchange Commission. Such statements speak only as of the time when made and are based on information available to Main Street as of the date hereof and are qualified in their entirety by this cautionary statement. Main Street assumes no obligation to revise or update any such statement now or in the future.
In the latest trading session, Main Street Capital (MAIN - Free Report) closed at $55.32, marking a +2.83% move from the previous day. This move outpaced the S&P 500's daily gain of 0.21%. Elsewhere, the Dow saw an upswing of 1.03%, while the tech-heavy Nasdaq depreciated by 0.22%.
The investment firm's stock has climbed by 4.34% in the past month, exceeding the Finance sector's gain of 3.31% and the S&P 500's gain of 1.7%.
The investment community will be closely monitoring the performance of Main Street Capital in its forthcoming earnings report. The company is scheduled to release its earnings on August 6, 2026. The company is expected to report EPS of $1.01, up 2.02% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $143.23 million, showing a 0.52% drop compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.99 per share and a revenue of $580.63 million, representing changes of -5.23% and +2.51%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Main Street Capital. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.2% upward. Right now, Main Street Capital possesses a Zacks Rank of #3 (Hold).
Digging into valuation, Main Street Capital currently has a Forward P/E ratio of 13.48. For comparison, its industry has an average Forward P/E of 7.9, which means Main Street Capital is trading at a premium to the group.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. With its current Zacks Industry Rank of 188, this industry ranks in the bottom 24% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Main Street odhaduje za 2. čtvrtletí 2026 čistý investiční výnos 0,95 až 0,99 USD na akcii a NAV 33,88 až 33,96 USD na akcii. Zároveň čeká anualizovanou návratnost vlastního kapitálu přes 18 %.
Announces Second Quarter 2026 Earnings Release and Conference Call Schedule
, /PRNewswire/ -- Main Street Capital Corporation (NYSE: MAIN) ("Main Street" or the "Company") is pleased to announce its preliminary operating results for the second quarter of 2026 and its second quarter 2026 earnings release and conference call schedule.
In commenting on the Company's preliminary operating results for the second quarter of 2026, Dwayne L. Hyzak, Main Street's Chief Executive Officer, stated, "We are very pleased with our performance in the second quarter, which resulted in another strong quarter of operating results, including favorable distributable net investment income before taxes and an increase to our net asset value per share for the sixteenth consecutive quarter. The increase in net asset value per share was primarily driven by significant net fair value appreciation on our lower middle market and private loan investment portfolios, including the benefit of another material realized gain in our lower middle market portfolio. Our strong second quarter results are highlighted by a favorable estimated return on equity of over 18% for the quarter. We look forward to sharing the full details of our second quarter 2026 results in a few weeks."
Preliminary Estimates of Second Quarter 2026 Results
Main Street's preliminary estimate of second quarter 2026 net investment income ("NII") is $0.95 to $0.99 per share, distributable net investment income ("DNII")(1) is $1.02 to $1.06 per share and DNII before taxes(2) is $1.06 to $1.10 per share.
Main Street's preliminary estimate of net asset value ("NAV") per share as of June 30, 2026 is $33.88 to $33.96, representing an increase of $0.42 to $0.50 per share, or 1.2% to 1.5%, from the NAV per share of $33.46 as of March 31, 2026, with this increase after the impact of the supplemental dividend paid in June 2026 of $0.30 per share. The estimated NAV per share increase is primarily due to the net fair value appreciation on the investment portfolio and the accretive impact of equity issuances, partially offset by a decrease due to the issuance of restricted stock, the total dividends per share paid in the second quarter in excess of NII per share and the net tax provision. The net fair value appreciation on the investment portfolio is primarily the result of net fair value appreciation on the lower middle market ("LMM") investment portfolio, private loan investment portfolio and other portfolio investments, partially offset by fair value depreciation of the wholly-owned external investment manager.
As a result of Main Street's preliminary estimates of NII, net fair value appreciation and the net tax provision as noted above, Main Street estimates that it generated an annualized return on equity of over 18% for the second quarter.(3)
Main Street preliminarily estimates that investments on non-accrual status comprised 1.1% of the total investment portfolio at fair value and 4.0% at cost as of June 30, 2026.
Investment Portfolio Activity
The Company's second quarter 2026 operating activities include the following investment activity in the LMM and private loan investment strategies:
$95.7 million in total LMM portfolio investments, which after aggregate repayments and return of invested equity capital resulted in a net decrease of $30.6 million in the total cost basis of the LMM investment portfolio; and $238.9 million in total private loan portfolio investments, which after aggregate repayments, return of invested equity capital and a decrease in cost basis due to a realized loss resulted in a net increase of $60.2 million in the total cost basis of the private loan investment portfolio. Second Quarter 2026 Earnings Release and Conference Call Schedule
Main Street will release its second quarter 2026 results on Thursday, August 6, 2026, after the financial markets close. In conjunction with the release, Main Street has scheduled a conference call, which will be broadcast live via phone and over the Internet, on Friday, August 7, 2026, at 10:00 a.m. Eastern time. Investors may participate either by phone or audio webcast.(4)
By Phone:
Dial 412-902-0030 at least 10 minutes before the call. A replay will be available through August 14, 2026 by dialing 201-612-7415 and using the access code 13761583#.
By Webcast:
Connect to the webcast via the Investor Relations section of Main Street's website at www.mainstcapital.com. Please log in at least 10 minutes in advance to register and download any necessary software. A replay of the conference call will be available on Main Street's website shortly after the call and will be accessible until the date of Main Street's earnings release for the next quarter.
ABOUT MAIN STREET CAPITAL CORPORATION
Main Street (www.mainstcapital.com) is a principal investment firm that primarily provides customized long-term debt and equity capital solutions to lower middle market companies and debt capital to private companies owned by or in the process of being acquired by a private equity fund. Main Street's portfolio investments are typically made to support management buyouts, recapitalizations, growth financings, refinancings and acquisitions of companies that operate in diverse industry sectors. Main Street seeks to partner with entrepreneurs, business owners and management teams and generally provides customized "one-stop" debt and equity financing solutions within its lower middle market investment strategy. Main Street seeks to partner with private equity fund sponsors and primarily invests in secured debt investments in its private loan investment strategy. Main Street's lower middle market portfolio companies generally have annual revenues between $10 million and $150 million. Main Street's private loan portfolio companies generally have annual revenues between $25 million and $500 million.
Main Street, through its wholly-owned portfolio company MSC Adviser I, LLC ("MSC Adviser"), also maintains an asset management business through which it manages investments for external parties. MSC Adviser is registered as an investment adviser under the Investment Advisers Act of 1940, as amended.
FORWARD-LOOKING STATEMENTS AND OTHER MATTERS
Main Street cautions that statements in this press release which are forward-looking and provide other than historical information, including but not limited to the preliminary estimates of second quarter 2026 financial information and results, are based on current conditions and information available to Main Street as of the date hereof. Although its management believes that the expectations reflected in those forward-looking statements are reasonable, Main Street can give no assurance that those expectations will prove to be correct. Those forward-looking statements are made based on various underlying assumptions and are subject to numerous uncertainties and risks, including, without limitation, such factors described under the captions "Cautionary Statement Concerning Forward-Looking Statements" and "Risk Factors" included in Main Street's filings with the U.S. Securities and Exchange Commission (the "SEC") (www.sec.gov). Main Street undertakes no obligation to update the information contained herein to reflect subsequently occurring events or circumstances, except as required by applicable securities laws and regulations.
The preliminary estimates of second quarter 2026 financial information and results furnished above are based on Main Street management's preliminary determinations and current expectations, and such information is inherently uncertain. The preliminary estimates provided herein have been prepared by, and are the responsibility of, management and are subject to completion of Main Street's customary quarter-end closing and review procedures and third-party review, including the determination of the fair value of Main Street's portfolio investments. As a result, actual results could differ materially from the current preliminary estimates based on adjustments made during Main Street's quarter-end closing and review procedures and third-party review, and Main Street's reported information in its Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 may differ from this information, and any such differences may be material. In addition, the information furnished above does not include all of the information regarding Main Street's financial condition and results of operations for the quarter ended June 30, 2026 that may be important to readers. As a result, readers are cautioned not to place undue reliance on the information furnished in this press release and should view this information in the context of Main Street's full second quarter 2026 results when such results are disclosed by Main Street in its Quarterly Report on Form 10-Q for the quarter ended June 30, 2026. The information furnished in this press release is based on Main Street management's current expectations that involve substantial risks and uncertainties that could cause actual results to differ materially from the results expressed in, or implied by, such information.
Main Street has an existing effective Registration Statement on Form N-2 on file with the SEC relating to the offer and sale from time to time of its securities. Investors are advised to carefully consider the investment objective, risks and charges and expenses of Main Street before investing in any of Main Street's securities. The prospectus included in the Registration Statement on Form N-2, together with any related prospectus supplement, contain this and other information about Main Street and should be read carefully before investing. A copy of the prospectus and any related prospectus supplement may be obtained by contacting Main Street.
Endnotes
(1) DNII is NII as determined in accordance with U.S. Generally Accepted Accounting Principles, or U.S. GAAP, excluding the impact of non-cash compensation expenses, which includes both share-based compensation expenses and deferred compensation expense or benefit. Main Street believes presenting DNII per share is useful and appropriate supplemental disclosure for analyzing its financial performance since (i) share-based compensation does not require settlement in cash and (ii) deferred compensation expense or benefit does not result in a net cash impact to Main Street upon settlement. However, DNII is a non-U.S. GAAP measure and should not be considered as a replacement for NII or other earnings measures presented in accordance with U.S. GAAP. Instead, DNII should be reviewed only in connection with such U.S. GAAP measures in analyzing Main Street's financial performance. In order to reconcile estimated DNII per share to estimated NII per share in accordance with U.S. GAAP for the second quarter of 2026, an estimated $0.07 to $0.08 per share of non-cash compensation expenses are added back to estimated NII per share to calculate estimated DNII per share.
(2) DNII before taxes is NII as determined in accordance with U.S. GAAP, excluding the impact of non-cash compensation expenses, which includes both share-based compensation expenses and deferred compensation expense or benefit, and any tax expenses included in NII. Main Street believes presenting DNII before taxes per share is useful and appropriate supplemental disclosure for analyzing its financial performance since (i) share-based compensation does not require settlement in cash, (ii) deferred compensation expense or benefit does not result in a net cash impact to Main Street upon settlement and (iii) tax expenses included in NII may include (a) excise tax expense, which is not solely attributable to NII, and (b) deferred taxes, which are not payable in the current period. However, DNII before taxes is a non-U.S. GAAP measure and should not be considered as a replacement for NII, NII before taxes or other earnings measures presented in accordance with U.S. GAAP. Instead, DNII before taxes should be reviewed only in connection with such U.S. GAAP measures in analyzing Main Street's financial performance. In order to reconcile estimated DNII before taxes per share to estimated NII per share in accordance with U.S. GAAP for the second quarter of 2026, an estimated $0.07 to $0.08 per share of non-cash compensation expenses and an estimated $0.04 per share of NII related tax expenses are added back to estimated NII per share to calculate estimated DNII before taxes per share.
(3) Return on equity equals the net increase in net assets resulting from operations divided by the average quarterly total net assets.
(4) No information contained on the Company's website or disclosed on the August 7, 2026 conference call, including the webcast and the archived versions, is incorporated by reference in this press release or any of the Company's filings with the SEC, and you should not consider that information to be part of this press release or any other such filing.
Contacts:
Main Street Capital Corporation
Dwayne L. Hyzak, CEO, [email protected]
Ryan R. Nelson, CFO, [email protected]
713-350-6000
Main Street Capital zvýšila měsíční dividendu o 1,9 % oproti předchozímu měsíci na 0,265 USD na akcii. Dividendový výnos přesahuje 8 %, i když DNII v 1. čtvrtletí klesl na 1,00 USD na akcii.
Main Street Capital (MAIN 0.63%) will make its latest monthly dividend payment this week. That payment will be 1.9% above last month's level (and 3.9% higher than the year-ago payment). It's the 12th dividend increase since the end of 2021.
When adding in the business development company's (BDC) recently paid supplemental quarterly dividend, its annualized yield is up over 8% at the recent share price. Here's a look at the safety of this high-yielding payout as its earnings soften.
Image source: Getty Images.
Earnings are softening while the dividend keeps rising Main Street Capital reported its first-quarter earnings in early May. The BDC generated $90.8 million in distributable net investment income (DNII), or $1.00 per share. DNII is a good proxy for the dividends the company can afford to pay.
The concern with that number is two-fold. DNII is down from $1.09 per share in the fourth quarter and $1.02 per share in the year-ago period. That's due to higher total expenses and the impact of a 2.2% increase in its weighted-average shares outstanding resulting from equity issuances, dividend reinvestment plans, and equity compensation plans, partially offset by higher total investment income.
While earnings are falling, the dividend continues to rise. Main Street Capital's monthly dividend payment is up to $0.265 per share, while it has continued to maintain its supplemental quarterly payment of $0.30 per share. The combined quarterly outlay is now up to $1.095 per share, well above DNII.
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Two different types of dividends Main Street Capital has a unique dividend policy among BDCs. It set its monthly dividend payment at a level it can sustain. At the current level, the payment adds up to $0.795 per share each quarter, comfortably below its DNII. As a result of this strategy of setting the base monthly dividend at a lower level, Main Street Capital has never reduced its monthly dividend since its 2007 IPO. Instead, this base payment has grown by 141%.
The quarterly supplemental dividends are extra payments intended to ensure the BDC remains compliant with IRS regulations requiring it to distribute at least 90% of its taxable net income to shareholders. This supplemental payment can rise and fall based on its earnings. Main Street has currently made 19 consecutive supplemental quarterly payments, including maintaining the $0.30 per share rate since early 2023.
While this rate could fall in the future, Main Street Capital's management team currently expects to continue paying significant supplemental dividends, including another one in September. That's due to its expected strong performance in the second quarter, which included the profitable exit of an equity investment. The BDC realized a $46.4 million gain on a $6.4 million investment during the period. Gains on equity investments are a key driver of monthly dividend increases and supplemental dividend payments.
One dividend you can bank on, and another extra payment Main Street Capital aims to provide investors with a sustainable and growing monthly dividend. It also offers the potential to collect a supplemental quarterly income stream when it has extra income to distribute. While its earnings have softened recently, a profitable equity investment exit in the second quarter should boost its DNII, enabling it to continue paying a significant supplemental quarterly dividend. That makes the more than 8% yield safe for now.
Ares Capital vyplatila čtvrtletní dividendu ve výši 48 centů, kterou pokryl core EPS 47 centů. Akcie se obchodují s mírnou slevou vůči Q1 NAV 19,59 USD.
With the Federal Reserve’s benchmark funds rate parked at 3.75% since Dec. 11, 2025, and the 10-year Treasury offering just 4.38%, income investors entering July are still hunting for yield well above the risk-free rate. Business development companies remain one of the cleanest ways to get it. BDCs are required to distribute at least 90% of taxable income to maintain their pass-through tax status, which forces consistent payouts but also makes their distributions vulnerable in credit downturns. With Q1 2026 results now in hand for all three names below, here is where the risk/reward looks most defensible heading into July.
Ares Capital (ARCC) Ares Capital (NASDAQ:ARCC | ARCC Price Prediction) is the scale play. At a $18.70 share price against ARCC’s reported Q1 NAV of $19.59, the stock trades at a modest discount to book. Market cap sits near $13.43 billion, making it the largest publicly traded BDC.
The income story is straightforward. ARCC paid a 48-cent quarterly dividend on June 30, the same rate it has held since at least Q1 2024, and well above the 40-to-42-cent range it paid during 2020 to 2021. Core EPS of 47 cents covered the payout. The weighted average yield on debt investments was 10% at amortized cost, with 91% of new commitments in floating rate paper and 95% carrying rate floors. CEO Kort Schnabel pointed to “improving lending conditions with enhanced spreads and fees, lower leverage” on the Q1 call.
Bull case: Scale, a diversified portfolio, roughly $6 billion in available liquidity, and a well-covered dividend through a softer rate cycle.
Risk: Q1 carried $412 million in net unrealized losses, NAV slipped from $19.94, and non-accruals ticked up to 2% at amortized cost. GAAP EPS came in at just 13 cents. The stock is down more than 16% over the past year.
Main Street Capital (MAIN) Main Street Capital (NYSE:MAIN) is the quality compounder of the group. Shares trade at $52.46, a premium to Q1 NAV of $33.46, which is the market’s verdict on internal management, cost discipline and a dividend record that has never been cut since the 2007 IPO.
MAIN’s payout stack is what separates it. The company paid 26 cents monthly across April, May, and June 2026, then layered a 30-cent supplemental on June 30, marking the 19th consecutive quarterly supplemental. The regular monthly dividend is up 4% year over year, and the regular monthly component has grown from 20 cents in 2020 to 26 cents today. Q1 distributable net investment income of $1 per share just missed the $1.01 estimate, but NAV still climbed from $33.33 at year-end 2025, aided by an $18.0 million net realized gain.
Bull case: Monthly base plus quarterly supplementals, internally managed structure with a 1% operating expenses to assets ratio, a growing $1.8 billion external AUM business, and FY25 ROE of 17%.
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Risk: Q1 revenue fell 18% year over year to $140.1 million, a $32.6 million net fair value decrease was recorded, and management flagged tariff and macro risk. The stock is down 11% year to date.
Trinity Capital (TRIN) Trinity Capital (NASDAQ:TRIN) is the high-yield, higher-risk leg of this basket. The venture and growth-stage lender trades at $17.78, a premium to Q1 NAV of $13.27 and has rallied more than 18% year to date and over 25% in the past year.
TRIN transitioned from quarterly to monthly distributions in January, and pays 17 cents per share each month, locked in through at least September via the June 17, declaration. That works out to roughly 51 cents per quarter, the 26th consecutive quarter at that level. The effective yield on average debt investments hit 16%, the highest of the three. Q1 NII of $44.49 million grew 37% year over year and covered the dividend at 104% of NII per share, with a $68.50 million undistributed income buffer behind it.
Bull case: Highest portfolio yield in the group, a $2.48 billion portfolio across 180 companies, 83% floating rate debt, and a managed funds platform that pushed fee income to $6.8 million from $2.7 million a year ago.
Risk: NAV slid from $13.42, Q1 logged $9.9 million in net realized losses, the weighted average risk rating ticked up to 3.0 from 2.9, and ATM share issuance of $78.4 million adds dilution risk. Venture lending also tends to crack first in credit downturns.
What to Watch in July The setup for July is favorable on the surface: The Fed has cut 75 basis points over the past year and the 10-year sits at a 77th percentile rank within its 12-month range, which keeps spreads attractive on floating-rate paper. Watch non-accrual trends and NAV direction in the next round of earnings reports. Any meaningful uptick in credit stress is the single variable that turns a 10% to 15% headline yield into a dividend cut.
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, /PRNewswire/ -- Main Street Capital Corporation (NYSE: MAIN) ("Main Street") is pleased to announce the amendment of its revolving credit facility (the "Corporate Facility"). The recently closed amendment provides an increase in total commitments from $1.175 billion to $1.240 billion, while maintaining an expanded accordion feature that allows for an increase up to $1.860 billion of total commitments from new and existing lenders on the same terms and conditions as the existing commitments and maintaining the benefits of a diversified group of 18 lenders. The amendment also extends both the revolving period, or reinvestment period, and the final maturity date through June 2030 and to June 2031, respectively. In addition, Main Street continues to maintain options under the amended Corporate Facility which could extend each of the revolving period and the final maturity of the Corporate Facility for up to two additional years, subject to certain conditions, including lender approval.
ABOUT MAIN STREET CAPITAL CORPORATION
Main Street (www.mainstcapital.com) is a principal investment firm that primarily provides customized long-term debt and equity capital solutions to lower middle market companies and debt capital to private companies owned by or in the process of being acquired by a private equity fund. Main Street's portfolio investments are typically made to support management buyouts, recapitalizations, growth financings, refinancings and acquisitions of companies that operate in diverse industry sectors. Main Street seeks to partner with entrepreneurs, business owners and management teams and generally provides customized "one-stop" debt and equity financing solutions within its lower middle market investment strategy. Main Street seeks to partner with private equity fund sponsors and primarily invests in secured debt investments in its private loan investment strategy. Main Street's lower middle market portfolio companies generally have annual revenues between $10 million and $150 million. Main Street's private loan portfolio companies generally have annual revenues between $25 million and $500 million.
Main Street, through its wholly-owned portfolio company MSC Adviser I, LLC ("MSC Adviser"), also maintains an asset management business through which it manages investments for external parties. MSC Adviser is registered as an investment adviser under the Investment Advisers Act of 1940, as amended.
FORWARD-LOOKING STATEMENTS
This press release contains certain forward-looking statements, including but not limited to the availability of future financing capacity under the Corporate Facility, which are based upon Main Street management's current expectations and are inherently uncertain. Any such statements other than statements of historical fact are likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under Main Street's control, and that Main Street may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual performance, events and results could vary materially from these estimates and projections of the future as a result of a number of factors, including those described from time to time in Main Street's filings with the Securities and Exchange Commission. Such statements speak only as of the time when made and are based on information available to Main Street as of the date hereof and are qualified in their entirety by this cautionary statement. Main Street assumes no obligation to revise or update any such statement now or in the future.
Contacts:
Main Street Capital Corporation
Dwayne L. Hyzak, CEO, [email protected]
Ryan R Nelson, CFO, [email protected]
713-350-6000
Main Street Capital ukončila dluhovou i akciovou investici do Centre Technologies po dokončení většinové rekapitalizace s novým finančním sponzorem. Z prodeje akciové investice vykázala realizovaný zisk 46,4 milionu USD.
Generates $46.4 Million Realized Gain from Exit of Equity Investment in Centre Technologies Holdings, LLC
, /PRNewswire/ -- Main Street Capital Corporation (NYSE: MAIN) ("Main Street") is pleased to announce that it recently exited its debt investments and equity investment in Centre Technologies Holdings, LLC ("Centre" or the "Company") upon the completion of a majority recapitalization with a new financial sponsor. Founded in 2006 and headquartered in Houston, Texas, Centre is a provider of information technology (IT) services, including managed services, cloud solutions, cyber security, IT consulting and business intelligence (BI) services to lower and middle market businesses, often serving as a fully outsourced IT department.
Main Street partnered with Centre's existing owners and senior management team in January 2019 to facilitate a minority recapitalization of the Company and provide growth capital to help facilitate the Company's acquisition growth strategy. Main Street's initial investment consisted of a $2.4 million revolving line of credit, a $12.2 million first lien, senior secured term loan and a $5.8 million direct equity investment. After Main Street's initial investment, Centre completed seven follow-on acquisitions with Main Street funding an additional cumulative $27.7 million under the first lien, senior secured term loan facility and $0.5 million in direct equity investments to support the Company's acquisition strategy and other corporate activities, resulting in Main Street's total debt investments and total equity investments growing to $42.3 million and $6.4 million, respectively.
Main Street realized a gain of $46.4 million on the exit of its equity investment in Centre, including a minority equity ownership position in Centre's acquirer that Main Street received as part of the sale proceeds, with this realized value representing an increase of $6.8 million above Main Street's fair market value for this equity investment as of March 31, 2026. Main Street also received total dividends of $2.2 million over the life of its equity investment in the Company. As a result, on a cumulative basis since Main Street's initial investment in January 2019 and taking the realized gain, dividends and fees into consideration, Main Street realized an annual internal rate of return ("IRR") of 40.1% and an 8.8 times money invested ("TMI") return on its equity investment in Centre. On a cumulative basis including both Main Street's debt and equity investments in the Company, Main Street realized an IRR of 23.2% and a 2.4 TMI return.
ABOUT MAIN STREET CAPITAL CORPORATION
Main Street (www.mainstcapital.com) is a principal investment firm that primarily provides customized long-term debt and equity capital solutions to lower middle market companies and debt capital to private companies owned by or in the process of being acquired by a private equity fund. Main Street's portfolio investments are typically made to support management buyouts, recapitalizations, growth financings, refinancings and acquisitions of companies that operate in diverse industry sectors. Main Street seeks to partner with entrepreneurs, business owners and management teams and generally provides customized "one-stop" debt and equity financing solutions within its lower middle market investment strategy. Main Street seeks to partner with private equity fund sponsors and primarily invests in secured debt investments in its private loan investment strategy. Main Street's lower middle market portfolio companies generally have annual revenues between $10 million and $150 million. Main Street's private loan portfolio companies generally have annual revenues between $25 million and $500 million.
Main Street, through its wholly-owned portfolio company MSC Adviser I, LLC ("MSC Adviser"), also maintains an asset management business through which it manages investments for external parties. MSC Adviser is registered as an investment adviser under the Investment Advisers Act of 1940, as amended.
Contacts:
Main Street Capital Corporation
Dwayne L. Hyzak, CEO, [email protected]
Ryan R. Nelson, CFO, [email protected]
713-350-6000
Main Street Capital navzdory obavám z private credit stále obchoduje s výraznou prémií vůči čisté hodnotě aktiv (NAV). Trh oceňuje i růst hodnoty portfolia a správu aktiv.
The private credit market has been in the financial news a lot this year. Investors are worried that more borrowers will default on their loans following a string of high-profile bankruptcies in the sector. That's causing them to pull funds from private credit investments, including business development companies (BDCs).
Main Street Capital (MAIN 0.26%) hasn't been immune to these concerns. The BDC stock has lost about a quarter of its value from its 52-week high. Despite that, it still trades at a significant premium to its net asset value (NAV). Here's why investors continue to pay a premium for this BDC.
Image source: Getty Images.
A look at Main Street's portfolio Main Street Capital is an investment firm that provides capital (debt and equity) to lower-middle-market (LMM) companies ($10 million to $150 million in annual revenue). It aims to be a one-stop shop by providing customized debt and equity financing solutions to small private companies. Additionally, Main Street provides debt capital to companies (with $25 million to $500 million in revenue) owned by or being acquired by a private equity fund.
Main Street Capital has invested nearly $2.6 billion across 93 LMM companies as of the end of the first quarter and almost $2.1 billion across 85 private loans. However, its LMM investment portfolio had a fair value of over $3.2 billion, driven by gains in its equity investments (about 28% of the portfolio). Meanwhile, its private loan portfolio's value was under $2 billion due to changes in fair value. The portfolios currently have a weighted-average annual effective yield in the double digits, which helps support Main Street's dividends (it pays a monthly dividend and periodically pays supplemental quarterly dividends).
After subtracting its debt, Main Street Capital had about $3.1 billion in net assets at the end of the period, or $33.46 per share (up about 0.4% since the end of the fourth quarter). With its stock price currently above $50 a share, the company trades at a significant premium to its NAV.
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What's driving the premium? Main Street Capital differs from other BDCs in two ways. First, the company will also make equity investments in some of its LMM portfolio companies. These investments generate dividend income to support the BDC's dual dividend streams and provide capital appreciation. The company's equity investments have helped grow its NAV per share by 160% since its launch in 2007. The BDC has routinely harvested gains by selling its equity investments, providing additional capital to grow its portfolio. These value-enhancing equity investments are one reason why Main Street trades at a hefty premium to its NAV.
Additionally, Main Street Capital has a wholly owned asset manager, MSC Advisor. It manages investments for external parties, including MSC Income Fund, a public fund that invests in private loans and has $1.6 billion in capital. When including these managed assets, Main Street Capital has over $9.2 billion in investment capital under management. The company's asset management business generates additional investment income and shareholder returns, which also contribute to its premium value.
While private credit concerns have eroded some of the premium, Main Street Capital still trades well above its NAV. That's due to the potential for value appreciation in its equity portfolio and the value contributed by its growing asset management business. Those additional value drivers set the BDC apart in the sector, as it can deliver growth in addition to its two dividend streams.
