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

News Market Reaction – MSIF

-1.07%

1 alert

-1.07% News Effect

On the day this news was published, MSIF declined 1.07%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

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.