MSC Income Fund, Inc. Q1 FY2026 earnings call

• Pleased with the fund's performance in the first quarter despite economic and geopolitical uncertainties. - Saw an improved lending environment and increased opportunities in private loan investment strategy. - Fund generated adjusted net investment income of $0.34 per share and ANII before taxes of $0.36 per share. - NAV per share was $15.87, a $0.02 increase from prior quarter. - Changed regular dividend payment frequency from quarterly to monthly starting in July 2026. - Main Street Capital Corporation has provided support including purchasing fund shares and waiving incentives.

Private loan investment portfolio: In the first quarter, the fund invested $55 million in the private loan portfolio, resulting in a net increase of $17 million. It accounts for 60% of the fund's total investment portfolio at fair value, with a weighted average yield of 10.5%. Legacy lower middle market investment portfolio: The fund completed $19 million in total lower middle market follow-on investments in the first quarter, resulting in a net increase of $15 million. It represents 37% of the fund's total investment portfolio, with 54% debt investments and 46% equity investments. The debt investments have a weighted average yield of 12.6%.

• Private loan investment pipeline is average, but excited about current pipeline of new and follow-on investment opportunities. - Expect to continue maintaining a dividend policy with total quarterly dividends generally consistent with ANII before taxes per share.

Q: From Robert Dodd with Raymond James about forward outlook on private loan book growth.

A: Pace dictated by market opportunity, reliant on private equity sponsor activity.

Q: From Brian McKenna with Citizen about trajectory of ROEs.

A: Dictated by pace of growth/deployments and movement in non-accruals.

Q: From Aaron Siganovich with Truist Securities about lower middle market potential sales.

A: Exits result from portfolio company change of control, buyers are private equity firms or strategic buyers.

Q: From Corey Johnson with UBS about competition in lower middle market and moving up market.

A: Lower middle market has competition but still attractive, no plans to move up market.