Main Street Capital Corporation Reports 8% Increase in Total Investment Income for 2024

Main Street Capital Corporation (MSCC) reported total investment income of $541.0 million for the year ended December 31, 2024, an 8% increase compared to $500.4 million in 2023. This increase stemmed from higher average income-producing debt investments and increased weighted-average interest rates on floating-rate investments, partially offset by an increase in investments on non-accrual status. Dividend income rose by 3% to $97.2 million, primarily due to increased income from LMM portfolio companies, while fee income surged 56% to $23.1 million, reflecting increased investment activity and refinancing/prepayment of debt investments. Total expenses increased by 15% to $186.0 million, primarily due to higher cash compensation, general and administrative expenses, and interest expense.

Net investment income for 2024 reached $355.1 million (a 5% increase), or $4.09 per share, compared to $339.0 million ($4.14 per share) in 2023. Distributable net investment income, a non-GAAP measure excluding share-based and deferred compensation, increased by 5% to $375.0 million ($4.32 per share). Net realized gain on investments totaled $46.0 million in 2024, a significant improvement from a net realized loss of $120.5 million in 2023. Net unrealized appreciation was $137.7 million in 2024, down from $232.6 million in 2023. The income tax provision for 2024 was $30.6 million, compared to $22.6 million in 2023. The net increase in net assets resulting from operations was $508.1 million ($5.85 per share) in 2024, a 19% increase from $428.4 million ($5.23 per share) in 2023.

As of December 31, 2024, MSCC's Investment Portfolio (excluding Other Portfolio and the External Investment Manager) included 84 LMM companies with a fair value of $2,502.9 million, 91 Private Loan companies with a fair value of $1,904.3 million, and 15 Middle Market companies with a fair value of $155.3 million. The company's Other Portfolio investments totaled $124.1 million in fair value, and its investment in the External Investment Manager was valued at $246.0 million. MSCC's total assets were $5,121.3 million, and its net asset value (NAV) was $2,797.8 million ($31.65 per share). The company's total debt outstanding was $2,134.0 million.

MSCC's liquidity and capital resources included $78.3 million in cash and cash equivalents and $1.326 billion of unused capacity under its credit facilities. During 2024, the company issued $700 million in unsecured notes and utilized its ATM program to raise $122.2 million in net proceeds from equity offerings. The company also repaid $450 million in notes and issued $63.8 million in SBIC debentures. MSCC intends to continue funding its investment activities through cash flow, credit facilities, and debt and equity issuances. The company declared a supplemental dividend of $0.30 per share in addition to regular monthly dividends of $0.25 per share for the first quarter of 2025.

The company's 10-K filing also details significant risk factors, including those related to fair value measurements of its investment portfolio, interest rate sensitivity, competition, reliance on key personnel, and regulatory compliance as a BDC and RIC. The filing includes forward-looking statements regarding future plans and strategies, but cautions that actual results may differ materially due to various uncertainties and risks.