#United States #Houston #New York Stock Exchange #MSC Income Fund #Dwayne L. Hyzak

MSC Income Fund's Strong Performance in 2024

MSC Income Fund, Inc. (NYSE: MSIF) recently disclosed its financial results for the fourth quarter and the entire year ended December 31, 2024. The results highlight the Fund's financial robustness, showcasing both steady investment income and a strategic positioning for future growth.

Fourth Quarter Highlights

In the fourth quarter of 2024, MSC Income Fund recorded net investment income of $14.2 million, translating to $0.35 per share. The total investment income stood at $33.5 million. Notably, the net assets resulting from operations rose by $20.5 million, or $0.51 per share, representing a 13.2% annualized return on equity.

As of December 31, 2024, the net asset value was $15.53 per share, marking a $0.15 per share increase from the previous quarter. Furthermore, the Fund announced a regular quarterly dividend of $0.36 per share for the first quarter of 2025, a 2.9% increase from the previous year. This steady growth reflects MSC Income's effective management and strategic investments.

Investment Portfolio Developments

During the quarter, MSC Income Fund completed a total of $29.5 million in private loan portfolio investments. However, there was a net decrease of $5.5 million in the total cost basis of the private loan investment portfolio due to repayments and valuation adjustments. In contrast, the lower middle market portfolio saw a more favorable outcome, with $30.5 million in investments and a net increase of $16.4 million in its total cost basis.

Despite some challenges, including a $7.5 million decrease in the middle market investment portfolio, the overall performance demonstrates a significant recovery and strategic navigation through the market's ups and downs.

Yearly Overview

For the entire year of 2024, MSC Income Fund's net investment income totaled $57.3 million, or $1.43 per share, along with a remarkable total investment income of $134.8 million. The Fund achieved a net increase in net assets of $56.6 million for the year, which amounted to $1.41 per share.

The overall return on equity for 2024 stood at 9.1%, and the net asset value was stable at $15.53 per share, slightly decreasing from $15.54 per share at the end of 2023. The Fund reported a total of $241.8 million in private loan portfolio investments and an increase of over $40 million in the lower middle market segment.

Future Directions

Dwayne L. Hyzak, the Chief Executive Officer of MSC Income, expressed satisfaction with the Fund’s operational results for both the fourth quarter and the full year. He emphasized that these outcomes present a clear path for strategic growth as the Fund transitions into a publicly listed entity following its recent New York Stock Exchange listing. The increased liquidity and enhanced debt capacity position MSC Income favorably for anticipated growth in 2025 and beyond.

The fourth quarter results underscore MSC Income's ability to adapt to changing market conditions and continue generating value for its investors. With ongoing strategic initiatives and investment opportunities, the Fund looks promising for the years ahead.

Conclusion

The MSC Income Fund continues to maintain a strong performance trajectory. As the Fund embarks on its new chapter as a publicly listed entity, stakeholders remain optimistic about its potential for further growth and profitability. Investors and market analysts will closely monitor the Fund's upcoming performance and its execution on strategic initiatives to maximize shareholder value.