#USA #Houston #financial results #MSC Income Fund #MSIF

MSC Income Fund's Second Quarter 2025 Results Report

MSC Income Fund, Inc. (NYSE: MSIF) has recently disclosed its financial results for the second quarter ending June 30, 2025. The firm showcased a positive trend, with total net investment income reported at $16.3 million, equating to $0.35 per share. This represents a 22% increase from the previous year, bolstered by solid performances across its investment portfolios.

Key Highlights

• - Net Investment Income & Asset Value: MSC Income's net investment income before taxes came in at $17.3 million, or $0.37 per share, indicating a healthy increase attributed to higher dividend revenues from portfolio investments. The fund's net asset value stood at $15.33 per share, demonstrating stability.
• - Dividends: A consistent quarterly dividend of $0.35 was declared, along with a supplemental dividend of $0.01, highlighting the fund’s commitment to returning value to shareholders.
• - Investment Performance: The fund recorded $35.6 million in total investment income, reflecting a 5% increase from the previous year. This growth was largely driven by a $0.9 million rise in dividend income from lower middle market investments and a $0.5 million increase in interest income due to improved portfolio debt yields.

Operational Insights

Dwayne L. Hyzak, the CEO of MSC Income, expressed optimism about the fund's performance, noting the 9% annualized return on equity obtained in Q2. The quarterly results reveal not just a sustainable income stream, but also potential for growth as the fund plans to expand its investment portfolio further.

Despite a slight decrease in the net increase of net assets compared to last year’s figures, attributed to fluctuations in realized gains, the fund's ability to maintain robust dividend payouts reflects a strategic balance between growth and income generation.

Investment Portfolio Overview

As of June 30, 2025, MSC Income's investment portfolio showed a fair value breakdown with approximately 60% allocated to private loans, 37% to lower middle market assets, and the remaining balance in other investments. These allocations highlight MSC's strategic focus on securing high-quality, yielding investments while maintaining a fortified capital structure.

The fund's large private loan portfolio indicates a concerted effort to provide necessary capital to private firms navigating growth phases or recent acquisitions. The weighted-average effective yields from this portfolio were impressive, further solidifying MSC Income's reputation in the private equity sector.

Looking Forward

The management team at MSC Income remains cautiously optimistic amid ongoing economic challenges, highlighting the importance of maintaining flexibility and strategic foresight as they navigate potential market shifts. MSC Income has a firm plan to leverage its liquidity effectively, with a strong cash position and unused credit capacity to capitalize on forthcoming investment opportunities.

A conference call is scheduled for August 14, 2025, for investors to discuss these results further, signaling MSC Income's commitment to transparency and stakeholder engagement.

• ---

For a detailed discussion on the financial specifics and further data points, stakeholders are encouraged to review the upcoming quarterly report and investor presentations available via MSC's investor relations website.