Msc Income Fund, Inc. · NYSE:MSIF
Msc Income Fund — HMS Income Fund — Shareholder Meeting (September 2015)
12 slides from Msc Income Fund's shareholder meeting presentation, Sep 24, 2015
Slide 1: HMS Income Fund 2015 Stockholder Meeting
>HMS Income Fund 2015 Stockholder Meeting September 24, 2015 Sherri W. Schugart Chairman, CEO and President Alejandro Palomo Investment Committee Chair
Slide 2: Company Overview
HMS INCOME FUND - 2015 STOCKHOLDER MEETING COMPANY OVERVIEW = HMS Income Fund, Inc. (“HMS” or the “Company”) was formed in 2011 as a public, non-listed business development company that focuses on providing investors current income and moderate long-term capital appreciation = The Company’s primary
Slide 3: Company Overview (Cont'd): The Sponsor
HMS INCOME FUND - 2015 STOCKHOLDER MEETING COMPANY OVERVIEW (CONT’D) The Sponsor = Hines is responsible for capital raising, reviewing and approving all investments, and all other corporate operations and administration = Hines has sponsored and manages three public, non-listed real estate investmen
Slide 4: Company Overview (Cont'd): The Sub-Adviser
HMS INCOME FUND - 2015 STOCKHOLDER MEETING COMPANY OVERVIEW (CONT’D) The Sub-Adviser = Main Street is responsible for identifying, evaluating and recommending investments to the Adviser as well as overall portfolio management = Main Street is a publicly traded business development company with over
Slide 5: Flexible Investment Strategy
HMS INCOME FUND - 2015 STOCKHOLDER MEETING FLEXIBLE INVESTMENT STRATEGY = Primary objective: Generate income through debt and equity investments = Secondary objective: Generate long-term capital appreciation, primarily through equity investments = Moderate leverage = Total Return — Pay regular cash
Slide 6: Flexible Investment Strategy (Cont'd)
HMS INCOME FUND - 2015 STOCKHOLDER MEETING FLEXIBLE INVESTMENT S$ TTEGY (CONT’D) TYPICAL BDC HMS INCOME FUND Loans of: Loans of: POTENTIAL RETURN POTENTIAL RETURN Income from interest ‘eamed on loans HMS Income Fund Competitive Advantage Potential for capital appreciation and gains from ‘equity inve
Slide 7: Target Investments
HMS INCOME FUND - 2015 STOCKHOLDER MEETING TARGET INVESTMENTS = Established companies with histories of positive and stable free cash flow = Firms with experienced and committed management teams = Strong franchises with sustainable competitive advantages and niche or market leadership positions = In
Slide 8: Portfolio Highlights as of June 30, 2015
HMS INCOME FUND - 2015 STOCKHOLDER MEETING HMS INCOME FUND AS OF JUNE 30, 2015 Portfolio Highlights Gross Offering $474.0M NAV per Share $8.69 Proceeds! $754.2M rer ~43% Weighted Avg. Distribution per $0.70 Effective Yield of 8.5% Share 7.07% current Investments - eee ence) (Unlevered)? +83 MM debe
Slide 9: HMS Income Fund as of June 30, 2015 (Cont'd)
HMS INCOME FUND - 2015 STOCKHOLDER MEETING => HMS INCOME FUND AS OF JUNE 30, 2015 (CONT’D) Asset Mix Variable v. Fixed =MM Debt Private Loans = Variable LMM Debt Fixed sEquity = Credit Fund ‘Note Alldat based on feirmarketvaluens of 6/50/15.
Slide 10: Industry Diversification and Collateral Priority
HMS INCOME FUND - 2015 STOCKHOLDER MEETING HMS INCOME FUND AS OF JUNE 30, 2015 (CONT’D) Industry Diversification Collateral Priority Hotels, Restaununts, & Leisure = Media Divemified Consumer Services BIT Services = First Lien = Of, Gas, and Consumable Fuels = Second Lien | « Health Care Providers &
Slide 11: 2015 Accomplishments & Priorities
HMS INCOME FUND - 2015 STOCKHOLDER MEETING 2015 ACCOMPLISHMENTS & PRIORITIES Accomplishments = Significant fund growth = Raised over $500 million of retail equity since inception Additional debt financing and capital availability = Completed 4 LMM transactions with Main Street, representing approx.
Slide 12: Slide 12
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