MSC Income Fund Inc.
01/20/2026 | Press release | Distributed by Public on 01/20/2026 08:28
Business/Financial Results (Form 8-K)
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NEWS RELEASE
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Contacts:
MSC Income Fund, Inc.
Dwayne L. Hyzak, CEO, [email protected]
Cory E. Gilbert, CFO, [email protected]
713-350-6000
Dennard Lascar Investor Relations
Ken Dennard / [email protected]
Zach Vaughan / [email protected]
713-529-6600
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MSC Income Fund Announces Preliminary Estimate of Fourth Quarter 2025
Operating Results
Announces Federal Tax Treatment of 2025 Dividends
Announces Fourth Quarter and Full Year 2025 Earnings Release and Conference
Call Schedule
HOUSTON - January 20, 2026 - MSC Income Fund, Inc. (NYSE: MSIF) ("MSC Income" or the
"Fund") is pleased to announce its preliminary operating results for the fourth quarter of 2025, the
federal tax treatment of its 2025 dividends and its fourth quarter and full year 2025 earnings release
and conference call schedule.
In commenting on the Fund's preliminary operating results for the fourth quarter of 2025, Dwayne L.
Hyzak, MSC Income's Chief Executive Officer, stated, "We are very pleased with the Fund's
performance in the fourth quarter. The Fund's preliminary operating results highlight that the fourth
quarter performance resulted in strong operating results, including favorable adjusted net investment
income per share and a significant net increase in the fair value of the Fund's investments, including
the benefit of material net realized gains in both the Fund's private loan and lower middle market
investment portfolios, which resulted in a significant increase in net asset value per share. The Fund's
fourth quarter resulted in an estimated return on equity of over 16% for the quarter, reflecting the
overall strength of the quarter. And lastly, the favorable investment activity in the quarter generated
meaningful growth of the Fund's investment portfolio. We are pleased with the Fund's fourth quarter
and full year 2025 results and look forward to sharing the full details of the results in late February."
Preliminary Estimates of Fourth Quarter 2025 Results
MSC Income's preliminary estimate of fourth quarter 2025 net investment income ("NII") is $0.26 to
$0.30 per share, including an estimated capital gains incentive fee of $0.06 per share(1). MSC Income's
preliminary estimate of adjusted net investment income ("ANII")(2), which is NII excluding the impact
of the capital gains incentive fee, is $0.32 to $0.36 per share and ANII before taxes(3), which is NII
before taxes excluding the impact of the capital gains incentive fee, is $0.35 to $0.39 per share.
MSC Income's preliminary estimate of net asset value ("NAV") per share as of December 31, 2025 is
$15.81 to $15.89, representing an increase of $0.27 to $0.35 per share, or 1.8% to 2.3%, from the
NAV per share of $15.54 as of September 30, 2025. The estimated NAV per share increase is
primarily due to the net fair value increase of the Fund's investments and the accretive impact of
common stock repurchases, partially offset by the net tax provision for the quarter and the dividends
declared in excess of NII in the quarter. The net fair value increase of the Fund's investments is
primarily the result of net fair value increases of the investments in the lower middle market ("LMM")
and private loan investment portfolios, partially offset by the fair value decrease of the residual middle
market investment portfolio.
As a result of MSC Income's preliminary estimates of NII, the net changes in the fair value of its
investment portfolio and the net tax provision as noted above, MSC Income estimates that it generated
a return on equity of over 16% for the fourth quarter of 2025 on an annualized basis and a return on
equity of over 12% for the full year of 2025.(4)
MSC Income preliminarily estimates that investments on non-accrual status comprised 1.0% of the
total investment portfolio at fair value and 3.9% at cost as of December 31, 2025.
Investment Portfolio Activity
The Fund's fourth quarter 2025 operating activities include the following investment activity in the
private loan investment strategy and LMM investment portfolio:
•$100.9 million in total private loan portfolio investments, which after aggregate repayments,
return of invested equity capital associated with the exit of three private loan portfolio
investments and a decrease in cost basis due to realized losses on two private loan portfolio
investments resulted in a net increase of $57.1 million in the total cost basis of the private loan
investment portfolio; and
•$23.0 million in total LMM portfolio follow-on investments, which after aggregate repayments
and return of invested equity capital, including a decrease in cost basis associated with the exit
of a LMM portfolio investment, resulted in a net increase of $14.9 million in the total cost
basis of the LMM investment portfolio.
Federal Tax Treatment of 2025 Dividends
MSC Income has posted information regarding the U.S. federal income tax characteristics of its 2025
dividends on its website under "2025 Form 1099 Information" (https://www.mscincomefund.com/
investors/listed-securities-information/tax-information).(5) MSC Income's total dividends for 2025
were $1.44 per share, with approximately 81% of such dividends taxed as ordinary income,
approximately 18% taxed as qualified dividends and approximately 1% taxed as long-term capital
gains. Long-term capital gains and qualified dividends paid to non-corporate taxpayers (including
individuals) qualify for favorable tax treatment under the Internal Revenue Code ("IRC") and, for
2025, will generally be subject to a maximum 20% U.S. federal income tax rate (plus a 3.8% Medicare
surtax, if applicable).
Federal Tax Treatment of 2025 Dividends - Non-U.S. Shareholders
Non-U.S. resident and foreign corporation shareholders ("Non-U.S. Shareholders") in a Regulated
Investment Company ("RIC"), such as MSC Income, are exempt from U.S. withholding tax on both
"interest-related" dividends and short-term capital gains in accordance with the IRC Sections 871(k)
and 881(e). In addition, Non-U.S. Shareholders in a RIC are also exempt from U.S. withholding tax on
long-term capital gains. MSC Income's total dividends for 2025 were $1.44 per share, with
approximately 64% of such dividends relating to "interest-related" dividends, short-term capital gains
and long-term capital gains. See "Tax Treatment of 2025 Dividends to Non-U.S. Shareholders" posted
on MSC Income's website for more details (https://www.mscincomefund.com/investors/listed-
securities-information/tax-information).(5)
To the extent Non-U.S. Shareholder taxes were withheld on dividends distributed, this information
may be considered in connection with any claims for refund on taxes made with the U.S. Internal
Revenue Service. Non-U.S. Shareholders should contact their tax advisor with any questions regarding
this information.
Fourth Quarter and Full Year 2025 Earnings Release and Conference Call Schedule
MSC Income will release its fourth quarter and full year 2025 results on Thursday, February 26, 2026,
after the financial markets close. In conjunction with the release, MSC Income has scheduled a
conference call, which will be broadcast live via phone and over the Internet, on Friday, February 27,
2026, at 11:00 a.m. Eastern time. Investors may participate either by phone or audio webcast.(5)
By Phone:Dial 412-902-0030 at least 10 minutes before the call. A replay will be available
through March 6, 2026 by dialing 201-612-7415 and using the access code
13758250#.
By Webcast:Connect to the webcast via the Investor Relations section of the Fund's website at
www.mscincomefund.com. Please log in at least 10 minutes in advance to register
and download any necessary software. A replay of the conference call will be
available on the Fund's website shortly after the call and will be accessible until the
date of the Fund's earnings release for the next quarter.
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 Capital Corporation (NYSE: MAIN) ("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.
MSC Income Fund Inc. published this content on January 20, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on January 20, 2026 at 14:28 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]