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.

AI-generated analysis. Not financial advice.

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 – MSIF

-1.49%

-1.49% News Effect

On the day this news was published, MSIF declined 1.49%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Realized gain on equity: $11.6 million Equity IRR: 40.1% Equity TMI: 8.8 times money invested +5 more

8 metrics

Realized gain on equity $11.6 million Exit of equity investment in Centre Technologies Holdings, LLC

Equity IRR 40.1% Cumulative internal rate of return on Centre equity since January 2019

Equity TMI 8.8 times money invested Cumulative return on Centre equity investment

Total IRR (debt + equity) 23.2% Cumulative internal rate of return on combined Centre investments

Total TMI (debt + equity) 2.4 times money invested Cumulative return on Centre debt and equity investments

Total debt invested $10.6 million Aggregate Centre debt investments at exit

Total equity invested $1.6 million Aggregate Centre equity investments at exit

Dividends received $0.5 million Total dividends over life of Centre equity investment

Peers on Argus

MSIF was up before this news, with several asset‑management peers also higher (C...

MSIF was up before this news, with several asset‑management peers also higher (CCAP, THQ, NIE up; ACP down, DLY flat), suggesting a broader sector bid rather than a lone move.

Historical Context

5 past events · Latest: May 07 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
May 07	Earnings results	Neutral	-1.5%	First quarter 2026 earnings release with NII, NAV, leverage and liquidity details.
May 07	Dividend update	Neutral	+0.3%	Announcement of transition to monthly dividends and declaration of Q3 2026 payouts.
Apr 21	Portfolio investment	Neutral	-1.0%	Follow‑on investment in UBM ParentCo to support strategic acquisition financing.
Apr 17	Earnings schedule	Neutral	+2.7%	Announcement of timing and access details for Q1 2026 earnings call.
Apr 09	Loan portfolio update	Neutral	-0.9%	Update on Q1 2026 private loan originations, fundings and portfolio composition.

Pattern Detected

Recent news has produced mixed price reactions, with both positive and negative moves following company updates.

Regulatory & Risk Context

Short Interest: 0.68%

Short Interest

0.68% of shares outstanding

as of 2026-05-29 Days to cover: 1

Reported short interest appears relatively low, suggesting limited near‑term squeeze dynamics but also less potential fuel for short‑covering rallies.

Market Pulse Summary

This announcement highlights a successful Centre exit, with a $11.6 million realized gain and strong...

Analysis

This announcement highlights a successful Centre exit, with a $11.6 million realized gain and strong 40.1% equity IRR. Combined with recent insider net buying, it underscores portfolio execution, while potential below‑NAV share issuance remains a key risk to monitor.

Key Terms

first lien, senior secured term loan, internal rate of return, times money invested

4 terms

first lien financial

"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"

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 loan financial

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

A senior secured term loan is a type of borrowing where a company borrows money and promises to pay it back over a fixed period, with the loan secured by the company's assets as collateral. Because it is "senior," it has priority over other debts if the company faces financial trouble, and being "secured" means lenders have a claim on specific assets. For investors, this makes the loan a safer and more predictable investment compared to unsecured or subordinate debts.

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 in Centre"

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.

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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.