**MSC Income Fund Reports Fiscal Year Results, Highlights Strategic Shift**

MSC Income Fund, Inc. (NYSE: MSIF), a principal investment firm, has released its 10-K filing, detailing its financial performance and strategic developments. The fund, primarily focused on providing debt capital to private equity-backed companies, reported total investment income of $139.2 million for the year ended December 31, 2025, a 3% increase from $134.8 million in the prior year. This growth was driven by a $7.4 million increase in dividend income, partially offset by a $2.1 million decrease in interest income and a $1.0 million decrease in fee income. Net investment income increased by 15% to $61.8 million, or $1.33 per share, compared to $53.9 million, or $1.34 per share, in the previous year.

The filing also revealed a net realized loss of $9.5 million, a significant shift from the $15.8 million net realized gain in the prior year. However, this was offset by a substantial increase in net unrealized appreciation, which reached $36.4 million compared to a $15.4 million depreciation in the previous fiscal period. The company's total return on investments was 13.9% for 2025, compared to 12.4% for 2024. Total expenses, net of expense waivers, decreased by 5% to $73.6 million, primarily due to lower interest expenses and base management fees.

A key strategic development highlighted in the filing was the change in investment strategy, effective upon the MSC Income Listing on January 29, 2025. The fund shifted its focus solely to its Private Loan investment strategy, moving away from its historical emphasis on both Private Loan and Lower Middle Market (LMM) investments. As a result, the size of the LMM investment portfolio is expected to decrease over time as existing investments are repaid or sold. The company also closed a follow-on public offering of 5,500,000 shares of its common stock at $15.53 per share on January 30, 2025, and an additional 825,000 shares on February 3, 2025, generating net cash proceeds of $90.5 million.

Operationally, the filing indicated that as of December 31, 2025, investments on non-accrual status comprised 1.4% of the total investment portfolio at fair value and 4.6% at cost. The weighted-average annual effective yield on debt investments was 10.7% for the Private Loan portfolio and 12.4% for the LMM portfolio. The company also reported a decrease in the weighted-average interest rates on the Credit Facilities due to decreases in benchmark index interest rates and applicable spreads. As of December 31, 2025, the fund had $20.6 million in cash and cash equivalents and $91.4 million of unused capacity under its Credit Facilities. The fund also entered into a share repurchase plan to purchase up to $65.0 million of its common stock in the open market.

About MSC INCOME FUND, INC.

MSC Income Fund, Inc. is a principal investment firm specializing in providing secured debt and equity financing to private companies, primarily in the U.S. private equity and lower middle market sectors. It focuses on supporting leveraged buyouts, recapitalizations, and growth financings through its Private Loan and LMM strategies. The company partners with private equity sponsors, emphasizes established companies, and aims to maximize total return via income and capital appreciation.

This description was generated via AI from an annual report. Updated 9 months ago.

About 10-K Filings

A 10-K form is a comprehensive annual report that public companies in the United States must file with the SEC, providing a detailed overview of the company's financial condition, performance, and business strategies.

Key points about the 10-K:

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