MSC Income Fund Q2 2025 Financial Results

MSC Income Fund, Inc. has released its financial results for the second quarter of 2025, providing insights into its performance and strategic initiatives. The company, which primarily provides debt capital to private companies, reported notable financial metrics and operational highlights for the period ending June 30, 2025.

Financial Highlights

For the second quarter of 2025, MSC Income Fund reported a net investment income of $16.3 million, translating to $0.35 per share. This represents a 22% increase from the $13.4 million reported in the same period last year. The company's net asset value (NAV) stood at $15.33 per share as of June 30, 2025. Total investment income for the quarter was $35.6 million, a 5% increase from the previous year's $33.9 million.

Despite the increase in investment income, the net increase in net assets resulting from operations was $16.3 million, down from $18.1 million in the second quarter of 2024. This decrease was primarily due to a $5.7 million reduction in the net fair value change of portfolio investments.

Business and Operational Highlights

During the second quarter, MSC Income Fund completed $44.0 million in private loan portfolio investments, resulting in a net decrease of $29.6 million in the total cost basis of the private loan investment portfolio. Additionally, the company completed $20.3 million in lower middle market (LMM) portfolio follow-on investments, leading to a net increase of $15.9 million in the total cost basis of the LMM investment portfolio.

The company declared a regular quarterly dividend of $0.35 per share and a supplemental quarterly dividend of $0.01 per share, both payable in the third quarter of 2025. This brings the total dividends declared in the second quarter to $0.36 per share.

Strategic Initiatives and Corporate Developments

MSC Income Fund maintained a strong liquidity position with $183.7 million in aggregate liquidity, including $28.3 million in cash and cash equivalents and $155.4 million of unused capacity under its credit facilities. The company's debt-to-equity ratio was 0.75x as of June 30, 2025, below its targeted leverage range.

The company also highlighted its investment grade rating from Kroll Bond Rating Agency, LLC of BBB- with a stable outlook, reflecting its solid financial standing and prudent capital management.

Management's Perspective

Dwayne L. Hyzak, CEO of MSC Income Fund, expressed satisfaction with the company's performance, noting the annualized return on equity of 9% and the favorable level of net investment income per share. He emphasized the potential for increased net investment income and dividends as the company works to expand its investment portfolio over the next several quarters.

Future Outlook

Looking ahead, MSC Income Fund aims to continue its favorable performance by expanding its investment portfolio. The company remains focused on sourcing and executing new portfolio investments to deliver future financial performance and results.

SEC Filing: MSC INCOME FUND, INC. [ MSCF ] - 8-K - Aug. 13, 2025