#United States #Houston #Main Street Capital #KBK Industries #investment exit

Main Street Capital Corporation Completes Successful Exit from KBK Industries, LLC

Main Street Capital Corporation (NYSE: MAIN), based in Houston, Texas, recently made headlines with its successful exit from investments in KBK Industries, LLC, a key player in the manufacturing sector. Founded in 1975 and located in Rush Center, Kansas, KBK specializes in providing large-volume fiberglass and steel tanks for various industries across the United States.

In an announcement dated January 13, 2026, Main Street revealed that it had fully exited its debt and equity investments in KBK upon the company's sale to a strategic acquirer. This marks a significant milestone for Main Street, which has been involved with KBK since 2006, when it led a major recapitalization effort. The initial investment included $5.75 million in first lien, senior secured term debt accompanied by equity warrant participation, as well as a direct minority equity investment of $0.25 million.

Over the years, KBK underwent remarkable growth and expansion, significantly broadening its operational capabilities and product offerings. Main Street’s involvement played a crucial role in supporting these developments. It helped facilitate the construction of new manufacturing facilities, expanded the company’s operational footprint, and introduced numerous innovations, including several patented technologies and new product advancements.

During the period of Main Street's investment, the firm committed additional resources, providing a total of $15.6 million in cumulative debt investments along with a combined equity investment of approximately $0.7 million. This financial backing has helped KBK reach new markets and solidify its position as a leader in its field.

Upon the exit, Main Street Capital Corporation reported an impressive realized gain of $17.3 million on its equity investment. Additionally, the firm amassed cumulative dividends totaling $25.1 million over the investment's lifetime. This resulted in a staggering annual internal rate of return (IRR) of 127.2% on the equity investment and an extraordinary 62.7 times return on the money invested in KBK. When considering the overall financial strategy, which included debt, warrant, and equity investments, Main Street achieved a 27.7% IRR along with a 3.5 times return overall.

About Main Street Capital Corporation

Main Street Capital Corporation operates as a principal investment firm dedicated to providing tailored long-term debt and equity solutions to lower middle market businesses. Typically, Main Street invests in sectors such as management buyouts, recapitalizations, and growth financings. The firm prides itself on partnering closely with entrepreneurs and management teams to create customized financing strategies that drive growth.

Main Street's investments generally focus on companies that exhibit annual revenues ranging from $10 million to $150 million. Furthermore, through its wholly-owned subsidiary, MSC Adviser I, LLC, Main Street also manages investments for external parties, continuing its commitment to fostering growth and innovation in the marketplace.

In conclusion, Main Street Capital Corporation’s exit from KBK Industries not only showcases the firm's effective investment strategy but also highlights its ability to yield substantial returns for its stakeholders. As the company agrees to partner with a new strategic acquirer, the future looks promising for KBK and Main Street alike, setting a positive benchmark for future investments.