MSC Income Fund Completes Successful Exit from Centre Technologies Investment

In a strategic move, MSC Income Fund, Inc. (NYSE: MSIF) has recently announced that it has concluded its investment in Centre Technologies Holdings, LLC, realizing a substantial gain as part of this exit. The decision follows the completion of a recapitalization phase backed by a new financing partner, which positions Centre for future growth.

Located in Houston, Texas, Centre Technologies, established in 2006, specializes in providing a range of information technology (IT) services. These services include managed IT operations, cloud solutions, cybersecurity, IT consulting, and business intelligence, catering particularly to lower and middle-market enterprises. Often acting as an outsourced IT department, Centre has been pivotal for its clients in navigating the complexities of modern technology landscapes.

The MSC Income Fund initially entered a partnership with Centre's current owners and senior management team in early 2019. This partnership was aimed at facilitating a minority recapitalization, which would provide the necessary growth capital to further the company's acquisition strategies. At that time, the Fund made an investment consisting of a revolving credit line of $0.6 million, alongside a first lien, senior secured term loan worth $3.1 million, and a direct equity investment totaling $1.5 million.

Since the initial investment, Centre has successfully executed seven further acquisitions. To support these endeavors, MSC Income Fund injected an additional $6.9 million through the first lien, senior secured loan facility and further invested $0.1 million in direct equity. As a result, the Fund's total investments in Centre have reached $10.6 million in debt and $1.6 million in equity, showcasing their significant commitment to the company's growth.

MSC Income Fund reported a realized gain of $11.6 million upon exiting its equity stake in Centre. This figure includes a minority equity share in Centre's acquiring entity received as part of the proceeds from the sale. Notably, this successful exit has led to an increase of $1.7 million above the fair market value of the Fund's equity investment as of March 31, 2026. Furthermore, the Fund has accrued a total of $0.5 million in dividends throughout its investment tenure.

The overall returns on the investment have been impressive, with an annual internal rate of return (IRR) of 40.1% calculated on a cumulative basis since the Fund's initial investment. In terms of money invested, the Fund has achieved an 8.8 times return on its equity alongside the debt and equity investments, culminating in an overall IRR of 23.2% and a 2.4 times return on money invested.

About MSC Income Fund, Inc.

MSC Income Fund is a principal investment organization primarily focused on providing debt capital to privately owned companies that are owned by or being acquired by private equity funds. The Fund typically invests in various sectors, supporting leveraged buyouts, recapitalizations, growth financing, refinancing, and company acquisitions. Their portfolio comprises tailored long-term debt and equity investments directed towards lower middle-market businesses, with annual revenues typically ranging between $10 million and $500 million.

Through its collaborations, the Fund leverages its ability to forge strong partnerships with private equity sponsors and offers customized debt and equity financing solutions through its assessments of potential investments. The strategic foresight of MSC Income Fund is evident in their meticulous selection of portfolio companies and the active role they assume in driving growth and maximizing returns. As MSC continues to identify lucrative opportunities, its recent successful exit reinforces the Fund’s commitment to delivering substantial benefits for its stakeholders.