MSC Income Fund (MSIF) Q2 2024 earnings summary

Executive summary

• Principal investor in private debt and equity with a diversified investment strategy across Private Loan, Lower Middle Market (LMM), and Middle Market segments, focusing on middle market and lower middle market companies across industries and geographies.

• Managed by a subsidiary of Main Street Capital since October 2020, leveraging proprietary deal flow and strategic relationships.

• Achieved annualized total return on investments of 15.1% for Q2 2024 and 13.4% for the first half of 2024.

• Portfolio consists of 151 companies with significant diversification by industry, geography, and transaction type.

• Maintained strong liquidity and capital resources, with $29.5 million in cash and $63.3 million in unused credit facility capacity as of June 30, 2024.

Financial highlights

• Total investment income for Q2 2024 was $33.95 million, up 2% year-over-year; for the first half, $67.9 million, up 6%.

• Net investment income for Q2 2024 was $14.4 million ($0.18/share); for the first half, $28.9 million ($0.36/share).

• Net asset value (NAV) per share increased to $7.78 at the end of Q2 2024, up from $7.77 at year-end.

• Weighted-average effective yield across the portfolio was 13.2% as of June 30, 2024.

• Dividends paid or accrued were $0.18/share for Q2 and $0.365/share for the first half.

Outlook and guidance

• Continues to explore a listing on a national securities exchange to enhance shareholder liquidity and access to capital.

• Plans to maintain quarterly share repurchase program and suspend Dutch auction tender offers while evaluating listing options.

• Continues to de-emphasize Middle Market syndicated loan strategy, focusing on Private Loan and LMM strategies.

• Board declared a $0.18/share dividend payable November 1, 2024, and approved a new share repurchase offer.