Msc Income Fund, Inc. · NYSE:MSIF
Msc Income Fund — Q3 2024 Earnings Presentation
29 slides from Msc Income Fund's earnings presentation, Nov 14, 2024
Slide 1: Investor Presentation Third Quarter 2024
Investor Presentation Third Quarter – 2024 MSC MSCIncome Fund, Income Fund, Inc. Inc. mscincomefund.com mscincomefund.com Page 1
Slide 2: Disclaimers
Disclaimers MSC Income Fund, Inc. (MSIF or the Company) cautions that statements in You should read the documents MSIF has filed with the SEC for more this presentation that are forward-looking, and provide other than historical complete information about MSIF. You may access these documents for fre
Slide 3: Corporate Overview and Investment Strategy
MSC Income Fund, Inc. Corporate Overview and Investment Strategy 3rd Quarter – 2024 MSC Income Fund, Inc. mscincomefund.com Page 3
Slide 4: MSIF is a Principal Investor in Private Debt and Equity
MSIF is a Principal Investor in Private Debt and Equity Business Development Company (BDC) with diversified Diversified investment investment strategy strategy and resulting • $1.3 billion of capital(1) investment portfolio and – Managed by a wholly-owned subsidiary(2) of Main Street Capital Corpora
Slide 5: Private Loan Investment Strategy
Private Loan Investment Strategy Private Loan portfolio Investment objectives investments are primarily • Access proprietary investments with attractive risk-adjusted return debt investments in characteristics privately held companies • Generate cash yield to support MSIF’s quarterly dividend which
Slide 6: LMM Investment Strategy
LMM Investment Strategy LMM investment Investment objectives strategy differentiates • High cash yield from secured debt investments (12.7%(1) weighted- MSIF from its average cash coupon as of September 30, 2024); plus competitors and • Dividend income, fair value appreciation and periodic capital g
Slide 7: LMM Investment Opportunity
LMM Investment Opportunity MSIF targets LMM Large and critical portion of U.S. economy investments in • 195,000+ domestic LMM businesses(1) established, profitable companies LMM is under-served from a capital perspective and less competitive Characteristics of LMM provide beneficial risk- Inefficien
Slide 8: MSIF Executive Management Team
MSIF Executive Management Team Dwayne Hyzak(1)(2) • Co-founded MAIN in 2002; affiliated with Main Street group since 1999 CEO and Chairman of • Director of Acquisitions & Integration with Quanta Services (NYSE: PWR) the Board • Manager with a Big 5 Accounting Firm’s audit and transaction services gr
Slide 9: Investment Portfolio
MSC Income Fund, Inc. Investment Portfolio 3rd Quarter – 2024 MSC Income Fund, Inc. mscincomefund.com Page 9
Slide 10: Total Investment Portfolio
Total Investment Portfolio Includes complementary Private Loan debt investments and LMM debt and Diversity provides equity investments structural protection to investment portfolio, Total investment portfolio at fair value consists of approximately 59% Private revenue sources, income, Loan / 35% LMM
Slide 11: Total Portfolio by Industry (as a Percentage of Cost)
Total Portfolio by Industry (as a Percentage of Cost)(1) (1) Excluding MSIF’s Other Portfolio investments, as described in MSIF’s SEC filings, which in aggregate represent approximately 2% of the total investment portfolio at cost MSC Income Fund, Inc. mscincomefund.com Page 11
Slide 12: Diversified Total Portfolio (as a Percentage of Cost)
Diversified Total Portfolio (as a Percentage of Cost)(1) Invested Capital by Transaction Type Invested Capital by Geography(3) (2) 35% 19% 23% 23% 40% 17% 18% 22% 3% (1) Excluding MSIF’s Other Portfolio investments, as described in MSIF’s SEC filings, which in aggregate represent approximately 2% of
Slide 13: Private Loan Investment Portfolio
Private Loan Investment Portfolio Private Loan investment 84 investments / $679.9 million in fair value portfolio provides a • 59% of total investment portfolio at fair value diversified mix of investments and Average investment size of $8.3 million(1) (less than 1% of total sources of income to por
Slide 14: Private Loan Portfolio by Industry (as a Percentage of Cost)
Private Loan Portfolio by Industry (as a Percentage of Cost) MSC Income Fund, Inc. mscincomefund.com Page 14
Slide 15: Diversified Private Loan Portfolio (as a Percentage of Cost)
Diversified Private Loan Portfolio (as a Percentage of Cost) Invested Capital by Transaction Type Invested Capital by Geography(2) Recapitalization/ Refinancing LBO/MBO(1) 33% 21% 19% 31% 32% 16% 13% 3% 32% Acquisition Growth Capital (1) Leveraged Buyout / Management Buyout (2) Based upon portfolio
Slide 16: LMM Investment Portfolio
LMM Investment Portfolio LMM investment 55 portfolio companies / $411.0 million in fair value portfolio consists of a • 35% of total investment portfolio at fair value diversified mix of secured debt and lower Average investment size of $6.2 million at cost (less than 1% of cost basis equity total p
Slide 17: LMM Portfolio by Industry (as a Percentage of Cost)
LMM Portfolio by Industry (as a Percentage of Cost) MSC Income Fund, Inc. mscincomefund.com Page 17
Slide 18: Diversified LMM Portfolio (as a Percentage of Cost)
Diversified LMM Portfolio (as a Percentage of Cost) Invested Capital by Transaction Type Invested Capital by Geography(2) Recapitalization/ Refinancing LBO/MBO(1) 35% 15% 33% 9% 54% 26% 17% 7% 4% Acquisition Growth Capital (1) Leveraged Buyout / Management Buyout (2) Based upon portfolio company hea
Slide 19: Shareholder Liquidity Event Activity
MSC Income Fund, Inc. Shareholder Liquidity Event Activity 3rd Quarter – 2024 MSC Income Fund, Inc. mscincomefund.com Page 19
Slide 20: Shareholder Liquidity Event Activity
Shareholder Liquidity Event Activity Since the change in MSIF regularly explores potential liquidity events for its shareholders MSIF’s investment adviser • MSIF’s management has frequent discussions with industry experts regarding the market conditions for a favorable outcome through various liquid
Slide 21: Financial Overview
MSC Income Fund, Inc. Financial Overview 3rd Quarter – 2024 MSC Income Fund, Inc. mscincomefund.com Page 21
Slide 22: MSIF Financial Performance
MSIF Financial Performance Total Investment Income ($ in millions) Net Investment Income ($ in millions) Year over Year Change Year over Year Change (1) (1) (22)% 4% 15% 27% 5% (16)% 14% (1)% 9% 1% $135.0 $70.0 $131.4 $120.0 $60.0 $105.0 $111.8 $57.7 $55.9 $103.8 $50.0 $53.4 $52.9 $101.4 $90.0 $90.1
Slide 23: MSIF Income Statement Summary
MSIF Income Statement Summary Q3 24 vs. Q3 23 ($ in 000s, except per share amounts) Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 % Change(1) Total Investment Income $ 32,351 $ 34,761 $ 33,950 $ 33,946 $ 33,477 3% Expenses: Interest Expense (9,403) (9,859) (9,549) (9,546) (10,374) (10)% G&A Expense(2) (6,254) (6,18
Slide 24: MSIF Per Share Change in Net Asset Value (NAV)
MSIF Per Share Change in Net Asset Value (NAV) ($ per share) Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Beginning NAV $ 7.67 $ 7.67 $ 7.77 $ 7.72 $ 7.78 Net Investment Income 0.18 0.19 0.18 0.18 0.18 Net Realized Gain/(Loss) 0.01 (0.11) (0.02) — 0.32 Net Unrealized Appreciation/(Depreciation) (0.02) 0.19 (0.02)
Slide 25: MSIF Balance Sheet Summary
MSIF Balance Sheet Summary ($ in 000s) Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Private Loan Portfolio Investments $ 608,953 $ 595,326 $ 631,447 $ 665,860 $ 679,863 LMM Portfolio Investments 367,565 386,956 391,575 406,252 411,030 Middle Market Portfolio Investments 101,104 85,990 68,352 49,898 46,062 Other Po
Slide 26: MSIF Capitalization
MSIF Capitalization ($ in 000s) Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Corporate Facility(1)(3) $ 92,000 $ 132,000 $ 79,000 $ 151,000 $ 147,000 SPV Facility(2)(3) 264,688 203,688 275,688 250,688 259,688 Series A Notes(4) 150,000 150,000 150,000 150,000 150,000 Total Debt at Par Value $ 506,688 $ 485,688 $ 50
Slide 27: Interest Rate Impact and Sensitivity
Interest Rate Impact and Sensitivity MSIF’s financial results are The following table illustrates the approximate annual changes in the components of MSIF’s NII due to hypothetical increases (decreases) in interest rates(1)(2) (dollars in thousands, except per share data): subject to impact from cha
Slide 28: Non-GAAP Information
Non-GAAP Information Net Debt to NAV Ratio is calculated as the Debt to NAV Ratio as determined in accordance with U.S. GAAP, except that total debt is reduced by cash and cash equivalents. MSIF believes presenting the Net Debt to NAV Ratio is useful and appropriate supplemental disclosure for analy
Slide 29: MSC Income Fund, Inc. Corporate Data
MSC Income Fund, Inc. Corporate Data Please visit MSIF’s website at www.mscincomefund.com for additional information Board of Directors Executive Officers Corporate Headquarters Investor Relation Contacts th Dwayne L. Hyzak Dwayne L. Hyzak 1300 Post Oak Blvd, 8 Floor Dwayne L. Hyzak CEO and Chairman