MSC Income Fund Announces Investments in New Portfolio Company and Exit of Investments in an Existing Portfolio Company

Rhea-AI Summary

MSC Income Fund (NYSE: MSIF) completed a strategic portfolio transaction on Jan. 6, 2026, providing $12.7 million of financing to UBM ParentCo, LLC (United Business Mail) to support UBM's merger with Mystic Logistics Holdings.

The Fund exited its prior debt and equity in Mystic, realizing a $6.0 million gain and having received $5.5 million in cumulative dividends. Since its initial August 2014 investment, the Fund reports an equity IRR of 32.9% with a 17.9x money multiple, and a combined debt-and-equity IRR of 22.9% with a 5.1x money multiple.

Positive

• $12.7M financing to UBM for merger support
• Realized $6.0M gain on Mystic equity exit
• Received $5.5M total dividends from Mystic
• Equity IRR of 32.9% since August 2014
• Equity returned 17.9x money invested
• Combined debt-and-equity IRR of 22.9% and 5.1x TMI

Negative

• None.

Key Figures

UBM financing $12.7 million New portfolio investment in UBM ParentCo, LLC

Realized equity gain $6.0 million Exit of equity investment in Mystic

Initial Mystic term loan $2.5 million First lien, senior secured term loan in August 2014

Initial Mystic equity $0.7 million Equity investment in Mystic in August 2014

Dividends received $5.5 million Total dividends over life of Mystic equity investment

Equity IRR Mystic 32.9% Annual IRR on Mystic equity investment since August 2014

Equity TMI Mystic 17.9x Times money invested on Mystic equity position

Total IRR Mystic 22.9% IRR including both debt and equity investments in Mystic

Market Reality Check

$13.26 Last Close

Volume Volume 536,176 is slightly below the 20-day average of 583,024 (relative 0.92x). normal

Technical Price 62.44 is trading above the 200-day MA at 59.61, reflecting a pre-news uptrend bias.

Peers on Argus

MAIN gained 1.12% while peers were mixed: AMG up 5.07%, BXSL up 0.48%, OBDC up 0.24%, JHG up 0.23%, and FSK down 1.33%, suggesting stock-specific factors rather than a broad sector move.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 02	Follow-on investment	Positive	+0.2%	Additional $20.0M term debt to support Chamberlin acquisition.
Nov 19	New investment	Positive	-1.1%	$27.2M Nearshore investment combining debt and minority equity.
Nov 18	New investment	Positive	-0.2%	$47.0M investment backing swim school minority recapitalization.
Nov 13	Earnings update	Neutral	-0.8%	Q3 2025 NII and NAV update with unrealized gains and realized losses.
Nov 12	Dividend declaration	Positive	-0.1%	Regular $0.35 and supplemental $0.01 per-share cash dividends.

Pattern Detected

Recent investment and capital allocation announcements often showed small price moves, with several positive portfolio updates met by modest divergences in the share price.

Recent Company History

Over the last few months, the company has highlighted multiple portfolio investments and capital actions. On Nov 12, 2025, MSC Income Fund declared regular and supplemental dividends. Q3 2025 results on Nov 13 detailed $35.4 million in total investment income and a NAV of $15.54 per share. Subsequent November news focused on new and follow-on investments across portfolio companies. Today’s announcement continues this pattern, emphasizing successful exits and reinvestment activity within the income fund platform.

Market Pulse Summary

This announcement details the successful exit of Mystic with a $6.0 million realized equity gain, $5.5 million in cumulative dividends, and strong IRR/TMI metrics, while redeploying $12.7 million into UBM to support a merger. The news highlights the fund’s strategy of generating attractive returns and recycling capital into new opportunities. Investors may watch future updates on UBM’s performance and how similar transactions contribute to portfolio income and realized gains.

Key Terms

first lien financial

"including a combination of first lien, senior secured term debt and direct"

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 debt financial

"including a combination of first lien, senior secured term debt and direct"

Senior secured term debt is a loan a company must repay on a set schedule that is backed by specific assets as collateral and has top priority over other creditors if the company cannot pay. Think of it like a mortgage where the lender has first dibs on the pledged property; because it is both secured and senior, it is generally lower risk than unsecured or junior debt and affects a company’s interest costs, borrowing capacity and investor risk.

internal rate of return financial

"the Fund realized an annual internal rate of return ("IRR") of 32.9%"

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 a 17.9 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. Not financial advice.

Provides $12.7 Million of Financing to UBM ParentCo, LLC

Generates $6.0 Million Realized Gain from the Exit of Equity Investment in Mystic Logistics Holdings, LLC

HOUSTON, Jan. 6, 2026 /PRNewswire/ -- MSC Income Fund, Inc. (NYSE: MSIF) ("MSC Income" or the "Fund") is pleased to announce that it recently completed a new portfolio investment totaling $12.7 million in UBM ParentCo, LLC, doing business as United Business Mail ("UBM" or the "Company"), to facilitate UBM's merger with Mystic Logistics Holdings, LLC ("Mystic"), an existing MSC Income portfolio company. The Fund partnered with the Company's and Mystic's existing owners and management teams and Main Street Capital Corporation (NYSE: MAIN) ("Main Street") to facilitate the transaction, with the Fund's new investment including a combination of first lien, senior secured term debt and direct minority equity. As a result of the transaction, the Fund fully exited its debt and equity investments in Mystic and is now a lender and minority equity owner in UBM.

UBM is a leading provider of "marketing mail" commingle services, specializing in optimizing postage, transportation and delivery performance for large-scale mailers. Through a nationwide logistics network and technology-driven processes, UBM helps clients improve speed-to-market, visibility and cost efficiency across their marketing mail programs.

Mystic specializes in marketing mail consolidation and logistics solutions designed to support precise, date-driven in-home delivery performance. Through disciplined transportation planning, mail flow optimization and performance tracking, Mystic helps clients align marketing campaigns with targeted in-home delivery windows to drive consistent and measurable results.

The Fund originally partnered with Mystic's executive management team through a co-investment with Main Street to facilitate a majority recapitalization in August 2014. The Fund's initial investment consisted of a $2.5 million first lien, senior secured term loan and a $0.7 million equity investment. After the Fund's initial investment, Mystic experienced significant growth as the company expanded its customer base and strengthened its postal and commercial partnerships.

The Fund realized a gain of $6.0 million on the exit of its equity investment in Mystic and also received total dividends of $5.5 million over the life of its equity investment. As a result, on a cumulative basis since the Fund's initial investment in August 2014 and taking the realized gain and dividends into consideration, the Fund realized an annual internal rate of return ("IRR") of 32.9% and a 17.9 times money invested ("TMI") return on its equity investment in Mystic. On a cumulative basis including both the Fund's debt and equity investments, the Fund realized an IRR of 22.9% and a 5.1 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.

ABOUT MSC ADVISER I, LLC
MSC Adviser I, LLC ("MSCA") is a wholly-owned subsidiary of Main Street that is registered as an investment adviser under the Investment Advisers Act of 1940, as amended. MSCA 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-investments-in-new-portfolio-company-and-exit-of-investments-in-an-existing-portfolio-company-302653381.html

SOURCE MSC Income Fund, Inc.

FAQ

What did MSC Income Fund (MSIF) announce on January 6, 2026?

MSC Income provided $12.7M financing to UBM to facilitate its merger with Mystic and exited its Mystic investments realizing a $6.0M gain.

How much did MSIF realize from the Mystic equity exit?

MSIF realized a $6.0M realized gain and had previously received $5.5M in dividends.

What are the reported returns on MSIF's Mystic investment since August 2014?

MSIF reported an equity IRR of 32.9% with a 17.9x money multiple; combined debt and equity IRR was 22.9% with 5.1x TMI.

How does the $12.7M investment affect MSIF's stake after the transaction?

MSIF exited Mystic and now holds a first lien senior secured debt position and a minority equity stake in UBM via the $12.7M investment.

Did MSIF partner with any firms for the UBM transaction?

Yes; MSIF partnered with the companies' existing owners, management teams and Main Street Capital (NYSE: MAIN) to complete the transaction.