MSC Income Fund : 1st Quarter 2026 Investor Presentation

Published: 2026-05-08 12:57:11 ET MSIF

Published on 05/08/2026 at 12:57 pm EDT

Investor Presentation

First Quarter - 2026

MSMCSCIInnccoomme FeunFd,uInnc.d, Inc.

NYNSYSEE:: MMSISF IF

mscincmosmcinecofmuenfudn.dc.coomm

Page 1

Corporate Overview and Investment Strategy

1st Quarter - 2026

Publicly traded Business Development Company (BDC) with diversified investment strategy

$1.6 billion of capital(1)

Managed by a wholly-owned subsidiary(2) of Main Street Capital Corporation (NYSE: MAIN) (MAIN or Main Street) since October 2020

MAIN is a publicly traded BDC with over $9.2 billion in capital under management(3)

MAIN's wholly-owned subsidiary(2) was previously a sub-adviser to MSIF since May 2012

Focused on proprietary debt investments in privately held companies typically owned by or being acquired by a private equity fund (Private Loan)

Primarily originated directly by MAIN or, to a lesser extent, through strategic relationships with other investment funds

First lien, floating rate debt investments with attractive risk-adjusted returns

Targets companies with annual revenue between $25 million and $500 million and annual EBITDA between $7.5 million and $50 million

Proprietary investments that can be difficult for investors to access

Maintains a portfolio of debt and equity investments in the underserved Lower Middle Market (LMM)

Companies with annual revenue between $10 million and $150 million and annual EBITDA between $3 million and $20 million

Provides one-stop financing solutions, including a combination of first lien debt and equity financing

Headquartered in Houston, Texas

MSIF's investments in new portfolio companies are solely focused on its Private Loan investment strategy

Investment objectives

Access proprietary investments with attractive risk-adjusted return characteristics

Generate cash yield to support MSIF's dividends to shareholders

Investment characteristics

Targets companies with annual revenue between $25 million and $500 million and annual EBITDA between $7.5 million and $50 million

Proprietary investments primarily originated directly by Main Street or, to a lesser extent, through strategic relationships with other investment funds on a collaborative basis

Current Private Loan portfolio companies have weighted-average EBITDA of approximately $30.6 million(1)

Investments primarily in secured debt investments

First lien debt investments

Floating rate debt investments

Limited equity investments

8% - 12% targeted gross yields

Weighted-average effective yield of 10.5%(2)

Net returns positively impacted by modest use of leverage

Floating rate debt investments provide matching with MSIF's floating rate Credit Facilities(3)

MSIF maintains a legacy portfolio of debt and equity investments in LMM companies

MSIF no longer makes investments in new LMM portfolio companies, but will continue to participate in follow-on investments in its existing LMM portfolio companies alongside Main Street

Investment objectives

Attractive cash yield from secured debt investments (12.1%(1) weighted-average cash coupon as of March 31, 2026); plus

Dividend income, fair value appreciation and periodic capital gains from equity investments

Investments are structured for (i) protection of capital, (ii) high recurring income and

(iii) meaningful capital gain opportunity

Typical entry enterprise values between 4.5x - 7.0x EBITDA

Typical entry leverage multiples between 2.0x - 4.0x EBITDA to MSIF debt investment

Focus on self-sponsored, "one-stop" financing opportunities

Co-investments with Main Street in partnership with business owners, management teams and entrepreneurs

Provide highly customized financing solutions

Recapitalization, buyout, growth and acquisition capital

Investments in established, profitable companies

Investments have low correlation to the broader debt and equity markets and attractive risk-adjusted returns

Unique LMM investment structures, combined with MSIF's goal to be a long-term partner, results in a highly diversified and high-quality investment portfolio

Dwayne Hyzak(1)(2) CEO and Chairman of the Board

Co-founded MAIN in 2002; affiliated with Main Street group since 1999

Director of Acquisitions & Integration with Quanta Services (NYSE: PWR)

Manager with a Big 5 Accounting Firm's audit and transaction services groups

David Magdol(1)(2)

President and CIO(3)

Co-founded MAIN in 2002

Vice President in Lazard Freres Investment Banking Division

Vice President of McMullen Group (John J. McMullen's Family Office)

Jesse Morris(1)

EVP, COO(4) and Senior Managing Director

Joined MAIN in 2019

Executive Vice President with Quanta Services (NYSE: PWR)

Vice President and CFO Foodservice Operations with Sysco Corporation (NYSE: SYY)

Manager with a Big 5 Accounting Firm

Jason Beauvais, JD(1)

EVP, GC(5) and Secretary

Joined MAIN in 2008

Attorney for Occidental Petroleum Corporation (NYSE: OXY)

Associate in the corporate and securities section at Baker Botts LLP

Nick Meserve(2) Managing Director and Head of Private Credit

Joined MAIN in 2012

Portfolio Manager at Highland Capital Management, LP

Credit Analyst at JPMorgan Chase

Cory Gilbert

CFO

Joined MAIN in 2020

CFO and Treasurer of OHA Investment Corporation (NASDAQ: OHAI)

CFO of RED Capital Group, a wholly-owned subsidiary of ORIX, U.S.A.

Manager with a Big 5 Accounting Firm

Investment Portfolio

1st Quarter - 2026

Includes complementary Private Loan debt investments and LMM debt and equity investments

Total investment portfolio at fair value consists of approximately 60% Private Loan / 37% LMM(1) / 2% Middle Market(2) / 1% Other Portfolio(2) investments

Highly diversified investment portfolio

143 Private Loan, LMM(1) and Middle Market(2) portfolio companies

Average investment size of $9.0 million(3)(4)

Largest individual portfolio companies represent 3.6%(5) of total investment income and 3.6% of total portfolio fair value (with most individual portfolio companies representing less than 1.0% of income and fair value)

Investments on non-accrual status represent 1.1% of the total investment portfolio at fair value and 4.2% at cost

Weighted-average effective yield of 11.0%(6)

Also diversified across all key investment characteristics

Issuer

Industry

Transaction type

Geography

End markets

Vintage

(2)

37%

22%

39%

Invested Capital by Transaction Type

Invested Capital by Geography(3)

23%

21%

16%

20%

80 investments / $823.1 million in fair value

60% of total investment portfolio at fair value

Average investment size of $10.5 million(1) (less than 1% of total portfolio)

Investments in secured debt instruments

93%(1) of Private Loan portfolio is secured debt

Over 99%(1) of Private Loan debt portfolio is first lien term debt

Debt yielding 10.5%(2)

96%(1) of Private Loan debt investments bear interest at floating rates(3), providing matching with MSIF's floating rate Credit Facilities(4)

Approximately 475 basis point effective interest margin vs "matched" floating rate on MSIF's Credit Facilities(4)

Recapitalization/

Refinancing

LBO/MBO(1)

43%

30%

26%

Acquisition

Growth Capital

Invested Capital by Transaction Type

Invested Capital by Geography(2)

25%

16%

21%

17%

21%

55 portfolio companies / $507.6 million in fair value

37% of total investment portfolio at fair value

Average investment size of $7.3 million at cost (less than 1% of total portfolio)

Debt yielding 12.6%(1) (71% of LMM portfolio at cost)

Over 99% of debt investments have first lien position

75% of debt investments earn fixed-rate interest

Equity ownership in all LMM portfolio companies representing an 8% average ownership position (29% of LMM portfolio at cost)

Lower entry multiple valuations, lower cost basis

Opportunity for dividend income, fair value appreciation and periodic capital gains

68% of LMM portfolio companies(2) with direct equity investment are currently paying dividends

Fair value appreciation of equity investments supports NAV per share growth

$107.8 million, or $2.38 per share, of cumulative pre-tax net unrealized appreciation as of March 31, 2026

Invested Capital by Transaction Type

Invested Capital by Geography(2)

LBO/MBO(1)

Recapitalization/ Refinancing

29%

14%

54%

17% 32% 7%

26% 18%

Acquisition

Growth Capital

Refer to Endnotes beginning on page 29 of this presentation

Financial Overview

1st Quarter - 2026

Total Investment Income ($ in millions)

Adjusted Net Investment Income (ANII)(1) ($ in millions)

Year over Year Change Year over Year Change

$135.0

$120.0

$105.0

15%

27% 3%

(2)

$70.0

$60.0

$50.0

(1)%

5% (3)% 20%

(1)%(2)

$90.0

$75.0

$60.0

$45.0

$30.0

$15.0

$40.0

$53.4

$52.9

$55.5

$53.9

$64.5

$15.6

$30.0

$20.0

$10.0

$0.0

$134.8

$103.8

$90.1

$139.2

$34.1

$131.4

2021 2022 2023 2024 2025 YTD (3)

2026

$0.0

(3)

2021 2022 2023 2024 2025 YTD

2026

($ in 000s, except per share amounts)

Q1 25

Q2 25

Q3 25

Q4 25

Q1 26

Q1 26 vs. Q1 25

Change(1)

Total Investment Income

$ 33,227 $

35,643 $

35,367 $

34,916 $

34,087

Expenses:

Interest Expense

(8,243)

(8,678)

(8,649)

(8,357)

(8,920)

(8)%

Other Expenses(2)

(6,173)

(6,228)

(6,527)

(6,027)

(6,450)

(4)%

Incentive Fee on Income

(2,023)

(3,431)

(3,321)

(3,370)

(3,099)

(53)%

Waiver of Incentive Fee on Income

- - 160 - 985

Adjusted Net Investment Income (ANII) Before Taxes(2)(3)

16,788

17,306

17,030

17,162

16,603

(1)%

ANII Before Taxes Margin %

50.5 %

48.6 %

48.2 %

49.2 %

48.7 %

(180) bps (4)

Excise, Federal and State Income and Other Tax Expense

(1,042)

(999)

(453)

(1,277)

(1,006)

ANII(2)(3)

15,746

16,307

16,577

15,885

15,597

(1)%

ANII Margin %

47.4 %

45.8 %

46.9 %

45.5 %

45.8 %

(160) bps (4)

Incentive Fee on Capital Gains(5)

- - - (2,763) 638

Net Investment Income (NII)

15,746

16,307

16,577

13,122

16,235

Net Realized Gain (Loss)

(21,066)

4,779

(9,854)

16,638

(241)

Net Unrealized Appreciation (Depreciation)

18,783

(3,904)

21,007

542

(2,643)

Income Tax Benefit (Provision) on Net Realized Gain (Loss) and Net Unrealized Appreciation (Depreciation)

2,412

(893)

(1,201)

(267)

(128)

Net Increase in Net Assets Resulting from Operations

$ 15,875 $ 16,289 $ 26,529 $ 30,035 $ 13,223

(17)%

NII Per Share

$ 0.35 $ 0.35 $ 0.35 $ 0.28 $ 0.35

ANII Per Share(2)(3)

$ 0.35 $ 0.35 $ 0.35 $ 0.34 $ 0.34

(3)%

ANII Before Taxes Per Share(2)(3)

$ 0.38 $ 0.37 $ 0.36 $ 0.37 $ 0.36

(5)%

NM - Not Measurable / Not Meaningful

MSC Income Fund, Inc. NYSE: MSIF

Disclaimer

MSC Income Fund Inc. published this content on May 08, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 08, 2026 at 16:56 UTC.