Main Street Announces Follow-On Investment

Rhea-AI Summary

Main Street (NYSE: MAIN) completed a follow-on investment totaling $25.6 million in portfolio company DMS Holdco LLC to support DMS's acquisition of Johnson & Quin and other growth initiatives. Main Street provided $20.8 million in first‑lien senior secured term debt and $4.8 million in direct equity. Main Street and co‑investor MSC Income Fund, Inc. funded part of the acquisition financing, with J&Q owners receiving equity in DMS. Main Street and MSIF initially invested in DMS in February 2018.

Positive

• Follow-on investment of $25.6M reinforces portfolio support
• $20.8M first‑lien senior secured debt improves loan priority
• $4.8M direct equity increases ownership alignment with DMS
• Financing enabled DMS acquisition of Johnson & Quin, expanding services

Negative

• Additional $20.8M debt increases Main Street's credit exposure to DMS
• Equity injection of $4.8M causes incremental capital deployment away from other opportunities

Key Figures

Total follow-on investment: $25.6 million Term debt investment: $20.8 million Equity investment: $4.8 million +4 more

7 metrics

Total follow-on investment $25.6 million Additional capital into DMS Holdco LLC

Term debt investment $20.8 million First lien, senior secured term debt to DMS

Equity investment $4.8 million Direct equity investment in DMS

Initial DMS investment date February 2018 Original investment by Main Street and MSIF

DMS founding year 1982 Year DMS was founded

J&Q founding year 1876 Year Johnson & Quin, Inc. was founded

J&Q operating history 150-year history Continuous operations in the printing industry

Market Reality Check

Price: $61.59 Vol: Volume 481,067 is slightl...

normal vol

$61.59 Last Close

Volume Volume 481,067 is slightly below 20-day average of 528,426 (relative volume 0.91). normal

Technical Price $62.06 is trading above 200-day MA of $60.61, and 8.43% below the 52-week high.

Peers on Argus

MAIN was up 2.06% with mixed peer moves: BXSL +1.7%, FSK +1.58%, OBDC +1.53%, JH...

MAIN was up 2.06% with mixed peer moves: BXSL +1.7%, FSK +1.58%, OBDC +1.53%, JHG +0.17%, while AMG slipped 0.46%. This points to a stock-specific move rather than a broad sector rotation.

Historical Context

5 past events · Latest: Feb 05 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 05	New portfolio investment	Positive	-2.4%	MAIN funded a $15.3M debt and minority equity investment in a healthcare data firm.
Feb 04	Board appointment	Neutral	-1.1%	MSIF added an independent director with extensive banking and leadership experience.
Jan 27	Portfolio exit support	Positive	+1.3%	Partner Ashland exited KBK with strong returns, citing long-term support from MAIN.
Jan 20	Preliminary results	Positive	-1.3%	MSIF released preliminary Q4 2025 operating metrics and dividend details.
Jan 15	Dividend declaration	Positive	-0.4%	Costco announced a quarterly cash dividend and provided updated store counts.

Pattern Detected

Recent MAIN-related updates on new investments and financial results often saw muted or negative next-day moves, even when news skewed positive.

Recent Company History

Over the past month, MAIN-related news has focused on new portfolio investments and capital deployment, along with partner and affiliate updates. A $15.3 million portfolio investment on Feb 5, 2026 and strong Ashland exit economics supported MAIN’s role as a financing partner, yet price reactions ranged from -2.41% to +1.27%. Today’s follow-on investment in DMS continues this pattern of incremental portfolio growth and add-on transactions within existing relationships.

Market Pulse Summary

This announcement highlighted MAIN’s continued capital deployment into an existing portfolio company...

Analysis

This announcement highlighted MAIN’s continued capital deployment into an existing portfolio company, with a follow-on $25.6 million investment in DMS split between $20.8 million first lien, senior secured term debt and $4.8 million direct equity. It supports DMS’s acquisition of Johnson & Quin and broader growth initiatives. In context of recent investment news and regulatory filings, investors may track portfolio credit performance, deployment pace, and subsequent updates on DMS’s integration and growth.

Key Terms

first lien, senior secured term debt, direct equity investment, omni-channel

4 terms

first lien financial

"an additional $20.8 million first lien, senior secured term debt investment"

A first lien is a legal claim that gives a lender the top priority to be repaid from specific collateral if a borrower defaults or liquidates assets. Think of it as being first in line for the proceeds from a sale—investors who hold a first lien are more likely to recover their money than holders of later claims, so these loans generally carry lower risk and different pricing compared with unsecured or subordinated debt.

senior secured term debt financial

"an additional $20.8 million first lien, senior secured term debt investment"

Senior secured term debt is a loan a company must repay on a set schedule that is backed by specific assets as collateral and has top priority over other creditors if the company cannot pay. Think of it like a mortgage where the lender has first dibs on the pledged property; because it is both secured and senior, it is generally lower risk than unsecured or junior debt and affects a company’s interest costs, borrowing capacity and investor risk.

direct equity investment financial

"and a $4.8 million direct equity investment."

A direct equity investment is buying ownership shares in a single company with your own money, rather than through a pooled fund or fund manager. It matters to investors because it offers the potential for higher returns and dividend income if the company grows, but also concentrates risk, affects how quickly you can sell your holding, and can give you voting rights or influence—like owning a slice of a business instead of a slice of a bakery’s income.

omni-channel technical

"an industry leading provider of omni-channel direct marketing services."

Omni-channel is a business approach that connects all ways a customer can interact or buy—such as websites, mobile apps, physical stores, social media and call centers—so the experience feels seamless no matter which path they choose. For investors, omni-channel matters because it can increase sales, customer loyalty and operational efficiency by making it easier to buy and by collecting better data on behavior; think of it as a coordinated orchestra where every instrument helps sell more smoothly and predictably.

AI-generated analysis. Not financial advice.

Invests an Additional $25.6 Million in DMS Holdco LLC to Support Strategic Acquisition and Other Growth Initiatives

HOUSTON, Feb. 11, 2026 /PRNewswire/ -- Main Street Capital Corporation (NYSE: MAIN) ("Main Street") is pleased to announce that it recently completed a follow-on investment in its existing portfolio company, DMS Holdco LLC ("DMS" or the "Company"), an industry leading provider of omni-channel direct marketing services. Main Street, along with its co-investor MSC Income Fund, Inc. (NYSE: MSIF) ("MSIF"), made the follow-on investment in DMS to support the Company's strategic acquisition of Johnson & Quin, Inc. ("J&Q"), which is a direct marketing services business strategically located in Chicago, Illinois, and to support other strategic growth initiatives. Main Street and MSIF provided a portion of the financing necessary to facilitate the acquisition, with the owners of J&Q receiving a portion of the acquisition purchase price in equity ownership in DMS. Main Street's portion of the investment consisted of an additional $20.8 million first lien, senior secured term debt investment and a $4.8 million direct equity investment. Main Street and MSIF initially invested in DMS in February 2018.

Founded in 1982, DMS develops and executes end-to-end, omni-channel direct marketing services including strategy, creative design, direct mail production/fulfillment and digital marketing to various end markets including the FinTech, banking, telecom and technology industries. Founded in 1876, J&Q is a family-owned business with a 150-year history of continuous operations in the printing industry. J&Q has a similar and complementary expertise to DMS in the omni-channel direct marketing services industry.

ABOUT MAIN STREET CAPITAL CORPORATION
Main Street (www.mainstcapital.com) is a principal investment firm that primarily provides customized long-term debt and equity capital solutions to lower middle market companies and debt capital to private companies owned by or in the process of being acquired by a private equity fund. Main Street's portfolio investments are typically made to support management buyouts, recapitalizations, growth financings, refinancings and acquisitions of companies that operate in diverse industry sectors. Main Street seeks to partner with entrepreneurs, business owners and management teams and generally provides customized "one-stop" debt and equity financing solutions within its lower middle market investment strategy. Main Street seeks to partner with private equity fund sponsors and primarily invests in secured debt investments in its private loan investment strategy. Main Street's lower middle market portfolio companies generally have annual revenues between $10 million and $150 million. Main Street's private loan portfolio companies generally have annual revenues between $25 million and $500 million.

Main Street, through its wholly-owned portfolio company MSC Adviser I, LLC ("MSC Adviser"), also maintains an asset management business through which it manages investments for external parties, including MSIF. MSC Adviser is registered as an investment adviser under the Investment Advisers Act of 1940, as amended.

ABOUT MSC INCOME FUND, INC.
MSIF (www.mscincomefund.com) is a principal investment firm that primarily provides debt capital to private companies owned by or in the process of being acquired by a private equity fund. MSIF's portfolio investments are typically made to support leveraged buyouts, recapitalizations, growth financings, refinancings and acquisitions of companies that operate in diverse industry sectors. MSIF seeks to partner with private equity fund sponsors and primarily invests in secured debt investments within its private loan investment strategy. MSIF also maintains a portfolio of customized long-term debt and equity investments in lower middle market companies, and through those investments, MSIF has partnered with entrepreneurs, business owners and management teams in co-investments with Main Street utilizing the customized "one-stop" debt and equity financing solutions provided in Main Street's lower middle market investment strategy. MSIF's private loan portfolio companies generally have annual revenues between $25 million and $500 million. MSIF's lower middle market portfolio companies generally have annual revenues between $10 million and $150 million.

Contacts:
Main Street Capital Corporation
Dwayne L. Hyzak, CEO, dhyzak@mainstcapital.com
Ryan R. Nelson, CFO, rnelson@mainstcapital.com
713-350-6000

Dennard Lascar Investor Relations
Ken Dennard | ken@dennardlascar.com
Zach Vaughan | zvaughan@dennardlascar.com
713-529-6600

 

View original content:https://www.prnewswire.com/news-releases/main-street-announces-follow-on-investment-302684731.html

SOURCE Main Street Capital Corporation

FAQ

What did Main Street announce about its investment in DMS on February 11, 2026 (MAIN)?

Main Street announced a follow-on investment of $25.6 million in DMS to support an acquisition and growth. According to the company, the investment included $20.8 million in first‑lien debt and $4.8 million in direct equity to fund the J&Q purchase.

How much of Main Street's follow-on investment in DMS was debt versus equity (MAIN)?

Main Street's portion comprised $20.8 million in first‑lien senior secured term debt and $4.8 million in equity. According to the company, the split was intended to provide senior financing while preserving equity upside in DMS.

Why did Main Street fund DMS's acquisition of Johnson & Quin (MAIN)?

Main Street funded the deal to support DMS's strategic acquisition and other growth initiatives. According to the company, the J&Q acquisition adds complementary printing and direct‑marketing capabilities to DMS's omni‑channel services.

Will the J&Q owners retain any stake in DMS after the acquisition financed by MAIN?

Yes, J&Q owners received a portion of the acquisition purchase price in equity ownership in DMS. According to the company, part of the consideration was equity to align interests post‑transaction.

When did Main Street and MSIF first invest in DMS prior to this follow-on (MAIN)?

Main Street and MSIF initially invested in DMS in February 2018. According to the company, the follow‑on continues a multi‑year partnership supporting DMS's growth and acquisitions.