Main Street Announces Investments in New Portfolio Company and Exit of Investments in an Existing Portfolio Company

Rhea-AI Summary

Main Street Capital (NYSE: MAIN) announced a $50.8 million financing to UBM ParentCo, LLC to support UBM's merger with Mystic Logistics Holdings, LLC and concurrently exited its prior investments in Mystic on Jan. 6, 2026. The new investment combines first lien, senior secured term debt and direct minority equity, leaving Main Street as a lender and minority equity owner in UBM.

Main Street reported a $23.8 million realized gain on the Mystic equity exit and total dividends of $22.1 million received during the investment. For Mystic equity alone, Main Street disclosed a 32.9% annual IRR and a 17.9x money‑multiple; including debt and equity, Main Street reported a 22.9% IRR and a 5.1x cumulative return.

Positive

• $50.8M new financing to UBM
• Realized equity gain of $23.8M from Mystic exit
• Total dividends received of $22.1M
• Equity IRR of 32.9% and 17.9x TMI on Mystic investment
• Combined debt+equity IRR of 22.9% and 5.1x TMI

Negative

• None.

Key Figures

UBM financing $50.8 million New portfolio investment in UBM ParentCo, LLC

Realized gain $23.8 million Exit of equity investment in Mystic

Dividends received $22.1 million Total dividends over life of Mystic equity investment

Initial term loan $10.0 million First lien, senior secured term loan to Mystic in August 2014

Initial equity $2.7 million Majority equity investment in Mystic in August 2014

Equity IRR 32.9% Annual IRR on Mystic equity investment since August 2014

Equity TMI 17.9x Times money invested on Mystic equity position

Total IRR 22.9% IRR on combined Mystic debt and equity investments

Market Reality Check

$62.31 Last Close

Volume Volume 536,176 vs 20-day average 583,024 (relative volume 0.92) ahead of this news. normal

Technical Shares at $62.44, trading above the 200-day MA of $59.61 and 7.86% below the 52-week high.

Peers on Argus

MAIN was up 1.12% while peers were mixed: AMG rose 5.07%, BXSL, JHG, OBDC were modestly positive, and FSK fell 1.33%. Moves were not uniformly in one direction, indicating stock-specific drivers for MAIN.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 02	Follow-on investment	Positive	+0.2%	Additional <b>$20.0M</b> term debt funding for Chamberlin acquisition.
Nov 19	New portfolio investment	Positive	-1.1%	<b>$27.2M</b> Nearshore Company investment for cross-border logistics acquisition.
Nov 18	New portfolio investment	Positive	-0.2%	<b>$47.0M</b> investment to recapitalize a leading swim school franchisee.
Nov 13	Earnings update	Neutral	-0.8%	MSC Income Fund Q3 <b>2025</b> NII and NAV update with mixed components.
Nov 12	Dividend declaration	Positive	-0.1%	Regular <b>$0.35</b> plus <b>$0.01</b> supplemental quarterly dividend announcement.

Pattern Detected

MAIN frequently announces new and follow-on portfolio investments; share reactions to these generally have been modest, with several positive corporate developments followed by small or negative next-day moves.

Recent Company History

Over the last few months, Main Street Capital has repeatedly deployed capital into new and existing portfolio companies, including a $47.0 million investment in a swim school franchisee and a $27.2 million investment in The Nearshore Company. A $20.0 million follow-on investment in Chamberlin Holding LLC further emphasized this growth-oriented deployment strategy. Separate MSC Income Fund items covered Q3 2025 results and dividend declarations. Today’s announcement of a $50.8 million UBM financing and a sizable realized gain on Mystic continues this pattern of active portfolio management and profitable exits.

Market Pulse Summary

This announcement details an active portfolio rotation, with $50.8 million of new financing to UBM alongside a full exit from Mystic that generated a $23.8 million realized gain and $22.1 million in dividends. The reported 32.9% equity IRR and 17.9x TMI underscore strong historical value creation. Investors may watch future deployment updates, credit performance of UBM, and additional exit realizations to gauge consistency of these returns.

Key Terms

first lien financial

"investment including a combination of first lien, senior secured term debt"

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

"combination of first lien, senior secured term debt and direct minority equity"

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.

internal rate of return financial

"realized an annual internal rate of return ("IRR") of 32.9%"

A percentage that represents the annualized yield an investment would earn, taking into account the timing and amount of all cash inflows and outflows; mathematically it is the rate that makes the discounted sum of future cash flows equal the initial cost. Investors use it to compare different projects or deals the way they compare interest rates — a higher internal rate of return suggests a stronger potential payoff, but it does not by itself show risk, scale, or timing nuances.

times money invested financial

"and a 17.9 times money invested ("TMI") return on its equity"

Times money invested, often called the investment multiple, measures how many times an investor’s original cash has been returned or is expected to be returned. Think of putting $1 in and getting $3 back — that would be three times money invested; it shows the scale of profit but doesn’t tell you how long it took or the annual speed of return. Investors use it to compare how much value an investment has delivered regardless of timing.

AI-generated analysis. Not financial advice.

Provides $50.8 Million of Financing to UBM ParentCo, LLC

Generates $23.8 Million Realized Gain from the Exit of Equity Investment in Mystic Logistics Holdings, LLC

HOUSTON, Jan. 6, 2026 /PRNewswire/ -- Main Street Capital Corporation (NYSE: MAIN) ("Main Street") is pleased to announce that it recently completed a new portfolio investment totaling $50.8 million in UBM ParentCo, LLC, doing business as United Business Mail ("UBM" or the "Company"), to facilitate UBM's merger with Mystic Logistics Holdings, LLC ("Mystic"), an existing Main Street portfolio company. Main Street partnered with both the Company's and Mystic's existing owners and management teams to facilitate the transaction, with Main Street's new investment including a combination of first lien, senior secured term debt and direct minority equity. As a result of the transaction, Main Street fully exited its debt and equity investments in Mystic and is now a lender and minority equity owner in UBM.

UBM is a leading provider of "marketing mail" commingle services, specializing in optimizing postage, transportation and delivery performance for large-scale mailers. Through a nationwide logistics network and technology-driven processes, UBM helps clients improve speed-to-market, visibility and cost efficiency across their marketing mail programs.

Mystic specializes in marketing mail consolidation and logistics solutions designed to support precise, date-driven in-home delivery performance. Through disciplined transportation planning, mail flow optimization and performance tracking, Mystic helps clients align marketing campaigns with targeted in-home delivery windows to drive consistent and measurable results.

Main Street originally partnered with Mystic's executive management team to facilitate a majority recapitalization in August 2014. Main Street's initial investment consisted of a $10.0 million first lien, senior secured term loan and a $2.7 million majority equity investment. After Main Street's initial investment, Mystic experienced significant growth as the company expanded its customer base and strengthened its postal and commercial partnerships.

Main Street realized a gain of $23.8 million on the exit of its equity investment in Mystic and also received total dividends of $22.1 million over the life of its equity investment. As a result, on a cumulative basis since Main Street's initial investment in August 2014 and taking the realized gain and dividends into consideration, Main Street realized an annual internal rate of return ("IRR") of 32.9% and a 17.9 times money invested ("TMI") return on its equity investment in Mystic. On a cumulative basis including both Main Street's debt and equity investments, Main Street realized an IRR of 22.9% and a 5.1 TMI return.

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. MSC Adviser is registered as an investment adviser under the Investment Advisers Act of 1940, as amended.

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-investments-in-new-portfolio-company-and-exit-of-investments-in-an-existing-portfolio-company-302653375.html

SOURCE Main Street Capital Corporation

FAQ

What did Main Street (MAIN) announce on January 6, 2026?

Main Street announced a $50.8M financing to UBM to support its merger with Mystic and reported a $23.8M realized gain from exiting Mystic.

How was Main Street's $50.8M investment in UBM structured?

The investment includes a combination of first lien, senior secured term debt and direct minority equity.

What returns did Main Street report from its Mystic investment?

Main Street reported an equity IRR of 32.9% and 17.9x money on equity; combined debt and equity IRR was 22.9% with a 5.1x money multiple.

How much cash did Main Street receive from Mystic before exit?

Main Street received total dividends of $22.1M over the life of its equity investment in Mystic.

What is Main Street's role in UBM after the transaction?

Following the transaction, Main Street is a lender and a minority equity owner in UBM.

Which companies were involved in the transaction announced by MAIN?

The transaction involved Main Street, UBM ParentCo, LLC (United Business Mail) and Mystic Logistics Holdings, LLC.