#USA #Houston #MSC Income Fund #NYSE MSIF #Dwayne Hyzak

MSC Income Fund Announces First Quarter 2025 Results

On May 12, 2025, MSC Income Fund, Inc. (ticker: MSIF) unveiled its impressive financial performance for the first quarter ending on March 31, 2025. As a principal investment firm, MSC focuses on providing debt capital primarily to private companies targeted for acquisition or growth financing.

Financial Highlights

The financial results reveal that the company achieved a net investment income of $16.8 million, equating to $0.38 per share. This indicates a 15% increase compared to the same quarter last year, where the net investment income was $14.5 million, or $0.36 per share. Additionally, the total investment income for the quarter was reported at $33.2 million, slightly down from $33.9 million in Q1 2024.

A significant point of interest is the net increase in net assets resulting from operations, amounting to $15.9 million or $0.36 per share, marking a substantial 50% rise from the previous year.

With a net asset value of $15.35 per share, investors are looking toward potential dividends. In this quarter, a regular dividend of $0.35 and a supplemental dividend of $0.01 were declared, combining for a total of $0.36 per share, to be paid in the second quarter of 2025.

Investment Strategy and Portfolio Management

The Fund's diversified investment strategy includes significant activities in private loans and lower middle market (LMM) investments. During the first quarter, MSC executed $137.5 million in total private loan portfolio investments. This growth comes alongside repayments, leading to a marked net increase to $88.8 million in the total cost basis of these private loans.

Moreover, despite facing a $25.7 million decrease in the middle market investment portfolio, the Fund continues to actively pursue portfolio diversification. The corporate facility was amended to expand total commitments from $165 million to $245 million, enhancing the liquidity and capital resources available to drive further investments.

Leadership Commentary

Dwayne L. Hyzak, the Chief Executive Officer of MSC Income, expressed his satisfaction with the Fund's performance, stating, "We are pleased with the Fund's performance in the first quarter, which delivered favorable results and a return on equity of just under 10%." Hyzak attributes this success to the enhanced liquidity position and increased investment portfolio diversification achieved through their recent listing on the New York Stock Exchange.

Forward-Looking Outlook

Looking ahead, MSC Income aims to capitalize on its strong Q1 performance. The management team is optimistic about the potential for increased net investment income and dividends, fostering growth within the investment portfolio for 2025 and beyond.

With an eye on expanding future opportunities, the Fund is moving towards a revised regulatory asset coverage requirement which will effectively increase its total leverage capacity. This strategic positioning reflects MSC's commitment to enhancing shareholder value while maintaining robust investment activity.

As of March 31, 2025, the Fund reported that its total assets stood at $1.32 billion, with a debt-to-equity ratio of 0.79x, indicating a strong balance sheet. The consequent confidence in investment performance is also bolstered by a stable investment grade rating from Kroll Bond Rating Agency.

Conclusion

In conclusion, MSC Income Fund's first-quarter report demonstrates its strong financial health and optimistic growth trajectory. Investors can look forward to the scheduled conference call on May 13, 2025, for further insights into the Fund's strategy and performance, solidifying MSC Income's position in the competitive landscape of principal investment firms.