MSC Income Fund : First Quarter 2025 Executive Summary
MSIF
Published on 05/13/2025 at 14:15
MSC Income Fund, Inc. (MSC Income or the Fund) (NYSE: MSIF) is a business development company (BDC) that provides capital to private U.S. companies. MSC Income has been externally managed by a wholly-owned subsidiary of Main Street Capital Corporation (NYSE: MAIN) (Main Street) since October 2020. Main Street is a publicly traded BDC with over $8.2 billion(1)in capital under management. Main Street, through its wholly-owned subsidiary, was previously a sub-adviser to MSC Income since May 2012. MSC Income has $1.4 billion(2)of capital.
MSC Income began trading on the New York Stock Exchange (NYSE) on January 29, 2025 under the ticker symbol "MSIF" in connection with a follow-on public offering of its common stock, including the full exercise of the underwriters' overallotment option, for total net proceeds of $90.5 million
Primarily to generate current income through debt investments and secondarily to generate current income and long-term capital appreciation through equity and equity-related investments
Attractive yield from secured debt investments (11.9%(3)weighted-average effective yield as of March 31, 2025)
Dividend income, fair value appreciation and periodic capital gains from equity investments
Primary investment focus on attractive Private Loan investment strategy focused on first lien debt investments in privately held companies typically owned or being acquired by a private equity fund
Attractive existing lower middle market (LMM) investment portfolio
Maintains a diversified investment portfolio across multiple companies, industries, regions and end markets
Benefit from strong and growing "Main Street" brand recognition and strong transaction sourcing network
Management team has over 100 years of collective investment experience and long-term working relationships dating back over 20 years
Conservative, well capitalized balance sheet (net debt to NAV ratio(4)of 0.74)
Primarily focused on Private Loan investment strategy, which generally includes debt investments in privately held companies typically owned or being acquired by a private equity fund
Primarily originated by Main Street directly or, to a lesser extent, through Main Street's strategic relationships with other investment funds on a collaborative basis through investments that are often referred to in the debt markets as "club deals" because of the small lender group size
Generally first lien, senior secured debt securities
Generally companies with annual revenues between $25 million and $500 million and annual EBITDA between $7.5 million and $50 million
Maintains portfolio of debt and equity investments in LMM companies
Combination of secured debt investments and equity investments which provide meaningful equity participation
Low leverage and enterprise valuation multiples provide attractive risk-adjusted returns
Generally companies with annual revenues between $10 million and $150 million and annual EBITDA between $3 million and $20 million
In May 2025, MSIF declared a regular quarterly dividend of $0.35 per share and a supplemental quarterly dividend of $0.01 per share
Payable on August 1, 2025 to shareholders of record as of June 30, 2025
Currently expect to continue paying regular quarterly dividends and supplemental quarterly dividends in the future, with the goal that such dividends will increase over time based upon the level of MSIF's operating performance and financial results, and subject to the approval of MSIF's Board of Directors
MSIF's total dividends, including the regular quarterly dividend and the supplemental quarterly dividend payable on August 1, 2025, represent an annualized current yield of 9.4%(1)
Note: See endnotes on the last page of this presentation. Page 2
Diversity adds structural protection to portfolio, revenue sources, income, cash flows and dividends
Investments in 149 portfolio companies(1)(84 Private Loan, 57 LMM(2)and 8 Middle Market(3))
Significant diversification
Average investment size of $8.0 million(1)(4)
Largest total investment in an individual portfolio company represents 2.8%(5)of total investment income and 3.7% of total portfolio fair value (with most investments representing less than 1.0% of income and fair value)
Investments on non-accrual status represent 2.8% of the total investment portfolio at fair value and 6.1% at cost
Total portfolio investments at fair value equal approximately 105% of cost basis
INDUSTRY(1)(4)
Note: See endnotes on the last page of this presentation. Page 3
Total Investment Income ($ in millions)
Net Investment Income (NII) ($ in millions)
Year over Year Change Year over Year Change
$135.0
$120.0
$105.0
$90.0
$75.0
$60.0
$45.0
$30.0
$15.0
$0.0
4% 15%
27%
3% (2)%(1)
$70.0
$60.0
$50.0
$40.0
$30.0
$20.0
$10.0
$0.0
14%
(1)%
9% (1)%
(1)
15%
$57.7
$57.3
$53.4
$52.9
$46.8
$16.8
$134.8
$131.4
$103.8
$86.7
$90.1
$33.2
2020 2021 2022 2023 2024 YTD
2025
2020 2021 2022 2023 2024 YTD
(2) (2)
2025
$1,400
$1,200
(3)
Portfolio Investments
$1,000
$800
$600
$400
$200
Total Portfolio Investments(3)and NII per share(4)($ in millions, except per share data)
$1.48
$1.42
$1.44
$1.43
$1.44
$1.34
$1.32
$1,261
$1.18
$1,178
$1,107
$1,077
$1,093
$1,028
$1,068
$826
$1.60
$1.40
$1.20
(4)
NII Per Share
$1.00
$0.80
$0.60
$0.40
$0.20
$0
2018 2019 2020 2021 2022 2023 2024 March (5)
31, 2025
$0.00
(3) (4)
Note: See endnotes on the last page of this presentation.
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Dwayne L. Hyzak, Chief Executive Officer & Chairman of the Board - [email protected]
Cory E. Gilbert, Chief Financial Officer - [email protected]
Ali Palomo, VP, Investor Relations, Asset Management Business - [email protected]
1300 Post Oak Blvd, 8thFloor Houston, Texas 77056
(713) 350-6000
https://www.mscincomefund.com
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Disclaimer
MSC Income Fund Inc. published this content on May 13, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 13, 2025 at 18:14 UTC.