Main Street Announces Partial Exit of Portfolio Investment
Main Street Capital Corporation (NYSE: MAIN) has announced a significant partial exit from its investment in Heritage Vet Partners, resulting in a $55.5 million realized gain. The exit came through a majority recapitalization with a new financial sponsor. Main Street's initial investment in December 2020 included a $10.5 million first lien term loan and a $7.0 million direct equity investment.
The investment proved highly successful, with Heritage completing 18 follow-on acquisitions and Main Street's debt investment growing to $69.5 million. The exit generated impressive returns, including $7.4 million in total dividends and achieved a 72.2% IRR and 10.0x return on the equity investment. Combined debt and equity investments yielded a 32.2% IRR and 2.1x return.
Main Street Capital Corporation (NYSE: MAIN) ha annunciato una significativa uscita parziale dal suo investimento in Heritage Vet Partners, realizzando un guadagno di 55,5 milioni di dollari. L'uscita è avvenuta tramite una ricapitalizzazione maggioritaria con un nuovo sponsor finanziario. L'investimento iniziale di Main Street, risalente a dicembre 2020, comprendeva un prestito a termine di primo grado da 10,5 milioni di dollari e un investimento diretto in capitale di 7,0 milioni di dollari.
L'investimento si è rivelato molto redditizio, con Heritage che ha completato 18 acquisizioni successive e il debito di Main Street che è cresciuto fino a 69,5 milioni di dollari. L'uscita ha generato rendimenti impressionanti, inclusi 7,4 milioni di dollari in dividendi totali, con un IRR del 72,2% e un ritorno di 10,0 volte sull'investimento azionario. Gli investimenti combinati in debito e capitale hanno prodotto un IRR del 32,2% e un ritorno di 2,1 volte.
Main Street Capital Corporation (NYSE: MAIN) ha anunciado una salida parcial significativa de su inversión en Heritage Vet Partners, resultando en una ganancia realizada de 55,5 millones de dólares. La salida se realizó mediante una recapitalización mayoritaria con un nuevo patrocinador financiero. La inversión inicial de Main Street en diciembre de 2020 incluyó un préstamo a plazo con primer gravamen de 10,5 millones de dólares y una inversión directa en capital de 7,0 millones de dólares.
La inversión resultó altamente exitosa, con Heritage completando 18 adquisiciones adicionales y la deuda de Main Street aumentando a 69,5 millones de dólares. La salida generó rendimientos impresionantes, incluyendo 7,4 millones de dólares en dividendos totales, logrando una tasa interna de retorno (IRR) del 72,2% y un retorno de 10,0 veces sobre la inversión en capital. Las inversiones combinadas en deuda y capital produjeron una IRR del 32,2% y un retorno de 2,1 veces.
Main Street Capital Corporation (NYSE: MAIN)은 Heritage Vet Partners에 대한 투자에서 상당한 부분을 부분적으로 회수하여 5,550만 달러의 실현 이익을 발표했습니다. 이 출구는 새로운 금융 스폰서와의 다수 지분 재자본화를 통해 이루어졌습니다. Main Street의 초기 투자는 2020년 12월에 1순위 담보 대출 1,050만 달러와 직접 지분 투자 700만 달러를 포함했습니다.
이 투자는 매우 성공적이었으며, Heritage는 18건의 추가 인수를 완료했고 Main Street의 부채 투자는 6,950만 달러로 증가했습니다. 이번 출구는 총 배당금 740만 달러를 포함한 인상적인 수익을 창출했으며, 지분 투자에 대해 72.2% 내부수익률(IRR)과 10.0배 수익률을 달성했습니다. 부채 및 지분 투자를 합친 수익률은 32.2% IRR과 2.1배 수익률을 기록했습니다.
Main Street Capital Corporation (NYSE : MAIN) a annoncé une sortie partielle significative de son investissement dans Heritage Vet Partners, générant un gain réalisé de 55,5 millions de dollars. Cette sortie s’est faite via une recapitalisation majoritaire avec un nouveau sponsor financier. L’investissement initial de Main Street en décembre 2020 comprenait un prêt à terme garanti de premier rang de 10,5 millions de dollars et un investissement en actions direct de 7,0 millions de dollars.
L’investissement s’est avéré très réussi, Heritage ayant réalisé 18 acquisitions complémentaires et la dette de Main Street ayant augmenté à 69,5 millions de dollars. La sortie a généré des rendements impressionnants, incluant 7,4 millions de dollars de dividendes totaux, avec un TRI de 72,2 % et un retour sur investissement en actions de 10,0 fois. Les investissements combinés en dette et actions ont produit un TRI de 32,2 % et un retour de 2,1 fois.
Main Street Capital Corporation (NYSE: MAIN) hat einen bedeutenden teilweisen Ausstieg aus seiner Investition in Heritage Vet Partners bekanntgegeben, was zu einem realisieren Gewinn von 55,5 Millionen US-Dollar führte. Der Ausstieg erfolgte durch eine Mehrheitsrekapitalisierung mit einem neuen Finanzsponsor. Die ursprüngliche Investition von Main Street im Dezember 2020 umfasste einen vorrangigen Terminkredit in Höhe von 10,5 Millionen US-Dollar und eine direkte Eigenkapitalinvestition von 7,0 Millionen US-Dollar.
Die Investition erwies sich als sehr erfolgreich, da Heritage 18 Folgeakquisitionen abschloss und die Schuldeninvestition von Main Street auf 69,5 Millionen US-Dollar anwuchs. Der Ausstieg erzielte beeindruckende Renditen, darunter 7,4 Millionen US-Dollar an Gesamtausschüttungen, mit einer IRR von 72,2% und einer 10,0-fachen Rendite auf die Eigenkapitalinvestition. Die kombinierten Schulden- und Eigenkapitalinvestitionen erzielten eine IRR von 32,2% und eine 2,1-fache Rendite.
- Substantial realized gain of $55.5 million from equity investment exit
- Impressive 72.2% IRR and 10.0x return on equity investment
- Strong combined returns: 32.2% IRR and 2.1x return on total investment
- Additional $7.4 million received in dividends over investment period
- Retained minority equity position in Heritage's acquirer
- None.
Insights
Main Street Capital realized impressive gains from Heritage Vet Partners exit, generating 72.2% IRR and 10x return on equity investment.
Main Street Capital has executed a highly successful partial exit from its investment in Heritage Vet Partners, generating a substantial
The investment performance metrics are remarkable. On the equity portion alone, Main Street achieved a
The exit value exceeded Main Street's most recent fair market valuation by
This transaction showcases Main Street's successful investment thesis in Heritage. Their initial
The decision to retain a minority equity position in Heritage's acquirer suggests Main Street's continued confidence in the company's growth trajectory under its new ownership structure. This partial exit strategy allows Main Street to realize significant gains while maintaining exposure to future upside potential.
Generates
Partial Exit of Equity Investment in Nebraska Vet AcquireCo, LLC
Main Street partnered with Heritage's existing owners and senior management team in December 2020 to facilitate a minority recapitalization of the Company and provide growth capital to help facilitate the Company's acquisition growth strategy. Main Street's initial investment consisted of a
Main Street realized a gain of
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
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-partial-exit-of-portfolio-investment-302451766.html
SOURCE Main Street Capital Corporation
FAQ
What return did Main Street Capital (MAIN) generate from its Heritage Vet Partners investment?
How much was Main Street Capital's (MAIN) realized gain from the Heritage Vet Partners exit?
What was Main Street Capital's (MAIN) initial investment in Heritage Vet Partners?
How many acquisitions did Heritage Vet Partners complete after Main Street Capital's investment?
What was the total dividend payment received by Main Street Capital (MAIN) from Heritage Vet Partners?
