MSC Income Fund Announces Exit of Portfolio Investment

Rhea-AI Summary

MSC Income Fund (NYSE: MSIF) exited its debt and equity investments in Centre Technologies Holdings following a majority recapitalization. The Fund generated an $11.6 million realized gain on its equity stake, exceeding the March 31, 2026 fair value by $1.7 million.

Including dividends and fees, MSC Income reported a 40.1% annual IRR and 8.8x TMI on its equity investment, and a 23.2% IRR and 2.4x TMI on combined debt and equity since the initial 2019 investment.

Positive

• Realized $11.6 million gain on Centre equity exit
• $1.7 million above March 31, 2026 equity fair value
• Equity investment produced 40.1% annual IRR since 2019
• Equity stake generated 8.8x total money invested return
• Combined debt and equity achieved 23.2% IRR and 2.4x TMI
• $0.5 million in total dividends received from Centre

Negative

• None.

News Market Reaction – MAIN

-0.44%

-0.44% Session close to close

In the Jun 24 session, MAIN declined 0.44%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement highlights a successful Centre exit with a realized equity gain of $11.6 million a...

Analysis

This announcement highlights a successful Centre exit with a realized equity gain of $11.6 million and strong IRRs. Prior portfolio news drew modestly positive reactions; elevated short interest remains a key risk to monitor around future updates.

Key Figures

Realized equity gain: $11.6 million Initial term loan: $3.1 million Initial equity investment: $1.5 million +5 more

8 metrics

Realized equity gain $11.6 million Gain from exit of equity investment in Centre

Initial term loan $3.1 million First lien, senior secured term loan at initial 2019 investment

Initial equity investment $1.5 million Direct equity stake in Centre at initial investment

Follow-on debt funding $6.9 million Additional funding under first lien, senior secured term loan

Total debt investments $10.6 million Cumulative debt exposure to Centre

Total equity investments $1.6 million Cumulative direct equity invested in Centre

Equity IRR 40.1% Annual IRR on equity investment since January 2019

Equity TMI 8.8x Times money invested on Centre equity position

Historical Context

5 past events · Latest: May 07 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
May 07	Q1 2026 earnings	Positive	-4.6%	Reported higher NII, DNII and NAV with expanded debt facilities and deployments.
May 07	Fund earnings	Positive	-4.6%	MSC Income reported solid NII, NAV, new notes and expanded leverage capacity.
May 07	Dividend change	Positive	-1.3%	Announced transition to monthly dividends plus a supplemental cash dividend.
May 05	Dividend increase	Positive	+2.9%	Declared higher monthly dividends and supplemental payout funded by taxable income.
Apr 28	New investment	Positive	+1.3%	Completed $40M portfolio investment in Shift Transit with debt and equity stake.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent MAIN/MSC Income headlines show mixed reactions, with several positive earnings/dividend updates met by negative price moves while portfolio activity has skewed modestly positive.

Key Terms

majority recapitalization, minority recapitalization, first lien, senior secured term loan, internal rate of return, +1 more

5 terms

majority recapitalization financial

"upon the completion of a majority recapitalization with a new financial sponsor"

A majority recapitalization is a transaction in which new or existing investors acquire more than half of a company’s ownership while reshaping its mix of debt and equity. For investors, it matters because it usually signals a change in control and strategy, can alter the company’s risk and cash flow profile (for example by adding or paying down debt), and affects potential returns and liquidity much like replacing a home’s owners and renegotiating its mortgage can change how the property is run and financed.

minority recapitalization financial

"to facilitate a minority recapitalization of the Company and provide growth capital"

A minority recapitalization is a financing move where a company raises money that lets some non-controlling shareholders convert part of their ownership into cash while the main owners keep control. Imagine a homeowner refinancing and paying a roommate for their share without selling the house — the business gets new funding and some investors get liquidity, which can change future returns and the distribution of risk for remaining shareholders.

first lien, senior secured term loan financial

"a $3.1 million first lien, senior secured term loan and a $1.5 million direct equity"

A first lien, senior secured term loan is a fixed-schedule loan backed by specific company assets where lenders have the top legal claim (first lien) ahead of other creditors. For investors this matters because these lenders are first in line to be repaid if the company faces financial trouble, which generally makes the loan lower risk than unsecured debt and influences a company’s borrowing costs and balance-sheet resilience—like a first mortgage on a house giving that lender priority repayment.

internal rate of return financial

"the Fund realized an annual internal rate of return ("IRR") of 40.1%"

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 an 8.8 times money invested ("TMI") return on its equity investment"

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. How Rhea-AI works. Not financial advice.

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Generates $11.6 Million Realized Gain from Exit of Equity Investment in Centre Technologies Holdings, LLC

HOUSTON, June 24, 2026 /PRNewswire/ -- MSC Income Fund, Inc. (NYSE: MSIF) ("MSC Income" or the "Fund") is pleased to announce that it recently exited its debt investments and equity investment in Centre Technologies Holdings, LLC ("Centre" or the "Company") upon the completion of a majority recapitalization with a new financial sponsor. Founded in 2006 and headquartered in Houston, Texas, Centre is a provider of information technology (IT) services, including managed services, cloud solutions, cyber security, IT consulting and business intelligence (BI) services to lower and middle market businesses, often serving as a fully outsourced IT department.  

The Fund partnered with Centre's existing owners and senior management team and Main Street Capital Corporation (NYSE: MAIN) ("Main Street") in January 2019 to facilitate a minority recapitalization of the Company and provide growth capital to help facilitate the Company's acquisition growth strategy. The Fund's initial investment consisted of a $0.6 million revolving line of credit, a $3.1 million first lien, senior secured term loan and a $1.5 million direct equity investment. After the Fund's initial investment, Centre completed seven follow-on acquisitions with MSC Income funding an additional cumulative $6.9 million under the first lien, senior secured term loan facility and $0.1 million in direct equity investments to support the Company's acquisition strategy and other corporate activities, resulting in the Fund's total debt investments and total equity investments growing to $10.6 million and $1.6 million, respectively.

The Fund realized a gain of $11.6 million on the exit of its equity investment in Centre, including a minority equity ownership position in Centre's acquirer that the Fund received as part of the sale proceeds, with this realized value representing an increase of $1.7 million above the Fund's fair market value for this equity investment as of March 31, 2026. The Fund also received total dividends of $0.5 million over the life of its equity investment in the Company. As a result, on a cumulative basis since the Fund's initial investment in January 2019 and taking the realized gain, dividends and fees into consideration, the Fund realized an annual internal rate of return ("IRR") of 40.1% and an 8.8 times money invested ("TMI") return on its equity investment in Centre. On a cumulative basis including both the Fund's debt and equity investments in the Company, the Fund realized an IRR of 23.2% and a 2.4 TMI return.

ABOUT MSC INCOME FUND, INC.
The Fund (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. The Fund's portfolio investments are typically made to support leveraged buyouts, recapitalizations, growth financings, refinancings and acquisitions of companies that operate in diverse industry sectors. The Fund seeks to partner with private equity fund sponsors and primarily invests in secured debt investments within its private loan investment strategy. The Fund also maintains a portfolio of customized long-term debt and equity investments in lower middle market companies, and through those investments, the Fund 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. The Fund's private loan portfolio companies generally have annual revenues between $25 million and $500 million. The Fund's lower middle market portfolio companies generally have annual revenues between $10 million and $150 million.

MSC Adviser I, LLC (the "Adviser") is a wholly-owned subsidiary of Main Street that is registered as an investment adviser under the Investment Advisers Act of 1940, as amended. The Adviser serves as the investment adviser and administrator of the Fund in addition to several other advisory clients.

Contacts:
MSC Income Fund, Inc.
Dwayne L. Hyzak, CEO, dhyzak@mainstcapital.com  
Cory E. Gilbert, CFO, cgilbert@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/msc-income-fund-announces-exit-of-portfolio-investment-302808568.html

SOURCE MSC Income Fund, Inc.

FAQ

What did MSC Income Fund (NYSE: MSIF) announce on June 24, 2026 regarding Centre Technologies?

MSC Income Fund announced it exited its debt and equity investments in Centre Technologies. According to MSC Income, the exit followed a majority recapitalization with a new financial sponsor and resulted in a realized gain, dividends and strong IRR and TMI metrics.

How much realized gain did MSC Income Fund generate from its Centre Technologies equity exit?

MSC Income Fund realized an $11.6 million gain from exiting its equity investment in Centre Technologies. According to MSC Income, this realized value was $1.7 million higher than the equity fair market value reported as of March 31, 2026.

What were the IRR and TMI results on MSC Income Fund’s Centre Technologies equity investment?

MSC Income Fund reported a 40.1% annual internal rate of return and an 8.8 times money invested return on its equity in Centre. According to MSC Income, these figures include realized gains, dividends and fees since the initial January 2019 investment.

What total returns did MSC Income Fund achieve on combined debt and equity investments in Centre Technologies?

On a combined basis, MSC Income Fund achieved a 23.2% IRR and a 2.4 times money invested return across its debt and equity in Centre. According to MSC Income, these metrics cover the full investment period from January 2019 through the exit.

How much did MSC Income Fund originally invest in Centre Technologies through debt and equity?

MSC Income Fund’s initial investment included a $0.6 million revolver, a $3.1 million first-lien term loan, and $1.5 million of equity. According to MSC Income, subsequent fundings increased total debt to $10.6 million and total equity to $1.6 million.

What dividends did MSC Income Fund receive from its Centre Technologies equity position?

MSC Income Fund received total dividends of $0.5 million over the life of its equity investment in Centre Technologies. According to MSC Income, these dividends contributed to the overall return profile alongside the realized gain, fees and minority equity in the acquirer.