MSC INCOME FUND ANNOUNCES THIRD QUARTER 2025 RESULTS
Financial Performance: MSC Income Fund reported a net investment income of $16.6 million ($0.35 per share) for Q3 2025, with a total investment income of $35.4 million and a net increase in net assets of $26.5 million ($0.56 per share).
Dividends Declared: The Fund declared a regular quarterly dividend of $0.35 per share and a supplemental dividend of $0.01 per share, totaling $0.36 per share for the third quarter.
Investment Portfolio: As of September 30, 2025, the Fund's net asset value was $15.54 per share, with a total investment portfolio valued at approximately $1.3 billion, primarily in private loans and lower middle market companies.
Liquidity and Capital Structure: The Fund maintained liquidity of $183.5 million, with a debt-to-equity ratio of 0.72x, and continues to hold an investment grade rating of BBB- from Kroll Bond Rating Agency.
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- Strategic Investment: Main Street Capital Corporation, alongside MSC Income Fund, has invested an additional $25.6 million in DMS Holdco LLC, comprising $20.8 million in first lien, senior secured debt and $4.8 million in direct equity, aimed at facilitating DMS's acquisition of Johnson & Quin, thereby enhancing its market position.
- Acquisition Context: As an industry leader in omni-channel direct marketing services, DMS's acquisition of J&Q will bolster its service capabilities across various markets including FinTech, banking, telecom, and technology, thus driving future growth potential.
- Legacy Background: Founded in 1876, Johnson & Quin boasts a 150-year operational history in the printing industry, and its complementary expertise in omni-channel direct marketing services will create synergies with DMS, enhancing competitive strength in the market.
- Investment Strategy: Main Street's investment strategy focuses on providing customized long-term debt and equity capital solutions to lower middle-market companies with annual revenues between $10 million and $150 million, and this investment not only solidifies its position in the private equity market but also lays the groundwork for future acquisitions and financing activities.
- New Board Appointment: MSC Income Fund has appointed Nataly M. Marks as a new independent director, who will also serve on the Audit Committee, bringing a unique perspective to the Fund's investment activities based on her leadership experience at Triple-S Steel.
- Industry Expertise: As President of Triple-S Steel since 2022, Marks oversees finance, HR, and operations, driving strategic growth in the construction and manufacturing sectors, which is expected to enhance the Fund's investment decision-making capabilities in these areas.
- Financial Sector Experience: With 13 years at JPMorgan Chase in various senior roles, Marks has developed extensive middle-market and corporate banking expertise that will aid the Fund's strategic execution in private equity investments.
- Community Engagement: Marks has served on the boards of several non-profit organizations, reflecting her commitment to social responsibility, which is likely to enhance MSC Income Fund's image and impact in socially responsible investing.

- Earnings Outlook: MSC Income Fund estimates its Q4 adjusted net investment income to be between $0.32 and $0.36 per share, slightly fluctuating from $0.35 in Q3, indicating potential stability in the fund's earnings.
- Net Asset Value Growth: The preliminary net asset value per share is projected to be between $15.81 and $15.89 as of December 31, 2025, reflecting a 1.8% to 2.3% increase from $15.54 on September 30, 2025, driven by net fair value increases and the positive impact of stock repurchases.
- Return on Equity: MSC Income Fund anticipates a return on equity exceeding 16% for Q4, demonstrating effective capital management that may attract more investor interest in its long-term income potential.
- Market Reaction: Despite the optimistic earnings outlook, MSC Income Fund's shares fell 0.61% pre-market to $13.00, indicating market concerns regarding its discount, which could affect investor confidence.

- Strong Performance: MSC Income's preliminary operating results for Q4 2025 indicate an estimated adjusted net investment income (ANII) of $0.32 to $0.36 per share, reflecting robust portfolio performance and significant net asset value growth, with an expected return on equity exceeding 16%.
- Dividend Tax Treatment: The total dividend for 2025 is projected at $1.44 per share, with approximately 81% taxed as ordinary income, 18% as qualified dividends, and 1% as long-term capital gains, highlighting the company's focus on tax optimization and enhancing investor appeal.
- Portfolio Growth: As of December 31, 2025, MSC Income estimates its net asset value (NAV) per share to be between $15.81 and $15.89, representing a 1.8% to 2.3% increase from $15.54 as of September 30, 2025, primarily driven by fair value increases in private loan and lower middle market investment portfolios.
- Earnings Release Schedule: MSC Income plans to release its Q4 and full-year 2025 results on February 26, 2026, followed by a conference call on February 27, 2026, to provide further financial details, enhancing transparency and investor confidence.

- Strong Q4 Performance: MSC Income estimates its Q4 2025 net investment income (NII) to be between $0.26 and $0.30 per share, reflecting robust portfolio performance and an over 16% return on equity, indicating significant gains in its private loan and lower middle market investment portfolios.
- NAV Increase: As of December 31, 2025, MSC Income's estimated net asset value (NAV) per share is projected to be between $15.81 and $15.89, representing a 1.8% to 2.3% increase from $15.54 on September 30, 2025, primarily driven by fair value increases in its investment portfolio and the positive impact of stock repurchases.
- Dividend Tax Treatment: MSC Income announced a total dividend of $1.44 per share for 2025, with approximately 81% taxed as ordinary income, 18% as qualified dividends, and 1% as long-term capital gains, demonstrating the company's transparency and compliance in tax planning.
- Earnings Release Schedule: MSC Income plans to release its Q4 and full-year 2025 results on February 26, 2026, followed by a conference call on February 27, which is expected to attract investor interest regarding its financial performance and future outlook.
- Loan Portfolio Growth: In Q4 2025, MSC Income Fund originated or increased private loan commitments totaling $131.8 million, indicating strong demand in the private market, which is expected to enhance the fund's revenue-generating capacity.
- Investment Cost Analysis: The fund's total investment cost in its private loan portfolio reached $100.9 million, demonstrating its ongoing commitment to a diversified investment strategy that helps mitigate risks and strengthen portfolio stability.
- Portfolio Scale Expansion: As of December 31, 2025, the fund's private loan portfolio had total investments at cost of approximately $821.7 million across 81 unique companies, showcasing its extensive footprint and influence in the private market.
- Secured Debt Investment Ratio: Within the private loan portfolio, 92.1% of investments are in first lien senior secured debt, while 7.9% are in equity investments or other securities, reflecting the fund's focus on security and yield, aimed at providing stable returns for investors.




