MSC Income Fund, Inc. reported a net increase in net assets resulting from operations of $26.5 million, or $0.56 per share, for the three months ended September 30, 2025, compared to $7.4 million, or $0.18 per share, for the same period in 2024. The Fund's total investment income for the third quarter of 2025 was $35.4 million, a 6% increase from $33.5 million in the prior year. This growth was driven by a 47% rise in dividend income, which reached $3.7 million, and a significant increase in fee income, which rose to $1.6 million, up 111% from the previous year. Interest income, however, saw a slight decline, totaling $30.1 million, down from $30.2 million.

For the nine months ended September 30, 2025, MSC Income's total investment income increased by 3% to $104.2 million, compared to $101.4 million in the same period of 2024. The Fund's net investment income for this period was $48.6 million, or $1.05 per share, reflecting a 21% increase from $40.3 million, or $1.00 per share, in the prior year. The increase in net investment income was attributed to reduced expenses and higher total investment income. Total expenses, net of waivers, decreased by 9% to $53.1 million, primarily due to lower interest expenses and a reduction in base management fees.

As of September 30, 2025, MSC Income's total assets were valued at $1.3 billion, with total investments at fair value amounting to $1.26 billion. The Fund's net assets increased to $734.4 million, with a net asset value per share of $15.54, slightly up from $15.53 at the end of the previous fiscal year. The Fund's investment portfolio is primarily focused on Private Loan investments, which accounted for 59.6% of the total portfolio, while lower middle market (LMM) investments made up 37.0%. The Fund's debt investments were predominantly secured by first priority liens, with a weighted-average annual effective yield of 11.3% for the Private Loan portfolio and 12.9% for the LMM portfolio.

In terms of operational developments, MSC Income's investment strategy has shifted to focus solely on Private Loan investments following its listing on the NYSE in January 2025. The Fund has ceased making new Middle Market investments and expects the size of its Middle Market portfolio to decline as existing investments are repaid or sold. As of September 30, 2025, the Fund had 81 Private Loan portfolio companies and 55 LMM portfolio companies, with a fair value of $750.9 million and $466.7 million, respectively. The Fund's total commitments stood at $96.8 million, with a significant portion allocated to funding revolving loans and term loans.

Looking ahead, MSC Income aims to continue growing its investment portfolio while managing its cost structure and liquidity in response to economic conditions. The Fund's management remains cautious about potential impacts from macroeconomic factors, including inflation and market volatility, which could affect the performance of its portfolio companies and overall investment returns.

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 8 months ago.

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