Main Street Announces New Portfolio Investment

Rhea-AI Summary

Main Street Capital Corporation (NYSE: MAIN) has announced a new portfolio investment of $14.0 million to facilitate the minority recapitalization of The Financial Risk Group (FRG). The investment consists of first lien, senior secured term debt and a direct equity investment.

Founded in 2006 and based in Cary, North Carolina, FRG is a risk management firm providing technology-enabled advisory services, implementation solutions, and proprietary software for financial governance and regulatory compliance. The company serves blue-chip domestic and international financial institutions, insurance companies, and commercial customers.

Positive

• Strategic investment of $14.0M combining secured debt and equity
• Partnership with established risk management firm serving blue-chip clients
• Investment diversifies MAIN's portfolio in the growing risk management and compliance sector

Negative

• None.

News Market Reaction

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On the day this news was published, MAIN declined NaN%, reflecting a moderate negative market reaction.

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Invests $14.0 Million in Recapitalization of The Financial Risk Group, LLC

HOUSTON, Sept. 23, 2025 /PRNewswire/ -- Main Street Capital Corporation (NYSE: MAIN) ("Main Street") is pleased to announce that it recently completed a new portfolio investment to facilitate the minority recapitalization of The Financial Risk Group, LLC  ("FRG" or the "Company"), a premier risk management firm providing specialized technology enabled risk management advisory, implementation and software solutions to effectively manage financial governance and regulatory compliance. Main Street partnered with FRG's founders and management team to facilitate the transaction, with Main Street funding $14.0 million in a combination of first lien, senior secured term debt and a direct equity investment.

Founded in 2006 and headquartered in Cary, North Carolina, FRG (www.frgrisk.com) offers risk analytics and data management consulting services dedicated to maximizing its clients' abilities to analyze and manage risks in their business offerings and maintain strict regulatory compliance. FRG's services include strategy, data management, process and software selection advisory services, software implementation services, ongoing business analytics and technical support and cloud-based hosting managed services supported by FRG's proprietary risk modeling software solution. FRG serves a broad range of blue-chip domestic and international financial institutions, insurance companies and other commercial customers.

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-new-portfolio-investment-302563900.html

SOURCE Main Street Capital Corporation

FAQ

What is Main Street Capital's (NYSE: MAIN) new investment in FRG worth?

Main Street Capital invested $14.0 million in FRG through a combination of first lien, senior secured term debt and a direct equity investment.

What does The Financial Risk Group (FRG) do?

FRG is a risk management firm providing technology-enabled risk management advisory services, implementation solutions, and software for financial governance and regulatory compliance.

When was FRG founded and where is it located?

FRG was founded in 2006 and is headquartered in Cary, North Carolina.

Who are FRG's main clients?

FRG serves a broad range of blue-chip domestic and international financial institutions, insurance companies, and other commercial customers.

What type of investment did Main Street Capital make in FRG?

Main Street Capital made a minority recapitalization investment through a combination of first lien, senior secured term debt and a direct equity investment.