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MSC Income Fund Reports Robust Q3 2025 Results

MSC Income Fund, Inc. (NYSE: MSIF) has announced its financial performance for the third quarter of 2025, ending September 30. In a climate of fluctuating market conditions, the Fund demonstrated resilience and growth, achieving a notable net investment income (NII) of $16.6 million, which equates to $0.35 per share. This accomplishment highlights the strength of the Fund's investment strategy and its ongoing commitment to enhancing shareholder value.

Key Financial Highlights

• - Net Investment Income: The Fund reported NII before taxes of $17.0 million, amounting to $0.36 per share. This marks a significant increase from the prior year's results.
• - Total Investment Income: With total investments yielding $35.4 million, the Fund's revenue streams are diversifying and strengthening.
• - Net Asset Value (NAV): As of September 30, 2025, the net asset value stands at an impressive $15.54 per share. This reflects the positive trajectory of the Fund’s portfolio amidst ongoing investments.
• - Dividends: MSC Income declared a regular quarterly dividend of $0.35 per share and an additional supplemental dividend of $0.01 for the fourth quarter.

Operational Insights

In discussing the quarterly results, CEO Dwayne L. Hyzak remarked, “Our annualized return on equity stands at 14.6%, reinforcing our strategy and the quality of our investment portfolio. Coupled with our existing liquidity and an encouraging pipeline of new loan opportunities, we anticipate continued growth in net investment income and dividend payouts.”

The Fund recorded a total increase in net assets resulting from operations of $26.5 million, translating to $0.56 per share, an increase of 260% from the previous year. This growth was driven predominantly by favorable movements in portfolio valuations and a boost in dividend income from lower middle market (LMM) investments, which rose significantly by 47% to $3.7 million.

Investment Portfolio Overview

As of the end of Q3, the Fund maintained a diversified portfolio comprising 81 private loan investments and 55 lower middle market portfolio companies. The fair value of these investments totaled around $1.3 billion, with a notable yield from debt investments, emphasizing a strong income-generating capability. The Fund continues to maintain an investment-grade rating from Kroll Bond Rating Agency, which underscores its financial stability and creditworthiness.

Focus on Future Opportunities

Looking ahead, MSC Income is poised for a strategic evolution with several regulatory changes expected by early 2026 that could enhance its operational leverage. The outlook for new investments remains optimistic as the Fund actively seeks out attractive opportunities across various sectors, intending to bolster its portfolio and drive shareholder returns further.

In a challenging economic landscape, MSC Income Fund's Q3 results represent a noteworthy achievement, signaling sustainable growth and a commitment to value creation for its investors. Investors are encouraged to participate in the upcoming conference call scheduled for November 14, 2025, to gain further insights into the Fund's strategy and financial outlook.

For a detailed review, stakeholders may refer to the Fund's upcoming quarterly report for the full financial disclosures and market commentary. This transparent communication reinforces MSC Income Fund's dedication to maintaining robust investor relations and market engagement.