Msc Income Fund, Inc. · NYSE:MSIF
Msc Income Fund — Q1 2025 Earnings Presentation
30 slides from Msc Income Fund's earnings presentation, May 13, 2025
Slide 1: Investor Presentation First Quarter 2025
Investor Presentation First Quarter – 2025 MSC MSCIncome Fund, Income Fund, Inc. Inc. NYSE: MSIF NYSE: MSIF mscincomefund.com mscincomefund.com Page 1
Slide 2: Disclaimers
Disclaimers MSC Income Fund, Inc. (MSIF) cautions that statements in this presentation MSIF is classified as a non-diversified investment company within the that are forward-looking, and provide other than historical information, involve meaning of the 1940 Act, which means that it is not limited by
Slide 3: Corporate Overview and Investment Strategy
MSC Income Fund, Inc. Corporate Overview and Investment Strategy 1st Quarter – 2025 MSC Income Fund, Inc. NYSE: MSIF 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 Diversified investment Publicly traded Business Development Company (BDC) with strategy and resulting diversified investment strategy investment portfolio and • $1.4 billion of capital(1) relationship with best-in- – MSIF began trading on the N
Slide 5: Private Loan Investment Strategy
Private Loan Investment Strategy Private Loan portfolio MSIF’s investments in new portfolio companies are solely focused on its investments are Private Loan investment strategy primarily debt Investment objectives investments in privately • Access proprietary investments with attractive risk-adjuste
Slide 6: LMM Investment Portfolio
LMM Investment Portfolio LMM investment Investment objectives portfolio differentiates • High cash yield from secured debt investments (12.6%(1) weighted-average cash MSIF from its coupon as of March 31, 2025); plus competitors and • Dividend income, fair value appreciation and periodic capital gain
Slide 7: 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 8: Investment Portfolio
MSC Income Fund, Inc. Investment Portfolio 1st Quarter – 2025 MSC Income Fund, Inc. NYSE: MSIF mscincomefund.com Page 8
Slide 9: Total Investment Portfolio
Total Investment Portfolio Diversity provides Includes complementary Private Loan debt investments and LMM debt and structural protection to equity investments investment portfolio, revenue sources, income, Total investment(1)portfolio at fair value(2)consists of approximately (2) 61% Private cash f
Slide 10: 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 1% of the total investment portfolio at cost MSC Income Fund, Inc. NYSE: MSIF mscincomefund.com Page 10
Slide 11: 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% 18% 23% 24% 21% 14% 23% 39% 3% (1) Excluding MSIF’s Other Portfolio investments, as described in MSIF’s SEC filings, which in aggregate represent approximately 1% of
Slide 12: Private Loan Investment Portfolio
Private Loan Investment Portfolio Private Loan investment 84 investments / $767.8 million in fair value portfolio provides a • 61% of total investment portfolio at fair value diversified mix of investments and Average investment size of $9.4 million(1) (less than 1% of total sources of income to por
Slide 13: Private Loan Portfolio by Industry (as a Percentage of Cost)
Private Loan Portfolio by Industry (as a Percentage of Cost) MSC Income Fund, Inc. NYSE: MSIF mscincomefund.com Page 13
Slide 14: 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) 36% 20% 19% 31% 30% 12% 18% 32% 2% Acquisition Growth Capital (1) Leveraged Buyout / Management Buyout (2) Based upon portfolio
Slide 15: LMM Investment Portfolio
LMM Investment Portfolio LMM investment 57 portfolio companies / $439.7 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 $6.3 million at cost (less than 1% of cost basis equity total p
Slide 16: LMM Portfolio by Industry (as a Percentage of Cost)
LMM Portfolio by Industry (as a Percentage of Cost) MSC Income Fund, Inc. NYSE: MSIF mscincomefund.com Page 16
Slide 17: Diversified LMM Portfolio (as a Percentage of Cost)
Diversified LMM Portfolio (as a Percentage of Cost) Invested Capital by Transaction Type Invested Capital by Geography(2) Recapitalization/ Refinancing LBO/MBO(1) 34% 14% 31% 9% 55% 28% 18% 7% 4% Acquisition Growth Capital (1) Leveraged Buyout / Management Buyout (2) Based upon portfolio company hea
Slide 18: Shareholder Liquidity Event Activity
MSC Income Fund, Inc. Shareholder Liquidity Event Activity 1st Quarter – 2025 MSC Income Fund, Inc. NYSE: MSIF mscincomefund.com Page 18
Slide 19: Historical Shareholder Liquidity Event Activity
Historical Shareholder Liquidity Event Activity Since the change in MSIF History MSIF’s investment • Since becoming the sole adviser in October 2020, the Adviser(1) has made adviser in October providing options for liquidity for MSIF’s shareholders one of its priority 2020, MSIF has actively goals p
Slide 20: Financial Overview
MSC Income Fund, Inc. Financial Overview 1st Quarter – 2025 MSC Income Fund, Inc. NYSE: MSIF mscincomefund.com Page 20
Slide 21: MSIF Financial Performance
MSIF Financial Performance Total Investment Income ($ in millions) Net Investment Income ($ in millions) Year over Year Change Year over Year Change (1) (1) 4% 15% 27% 3% (2)% 14% (1)% 9% (1)% 15% $135.0 $70.0 $134.8 $131.4 $120.0 $60.0 $105.0 $57.7 $57.3 $103.8 $50.0 $53.4 $52.9 $90.0 $90.1 $46.8 $
Slide 22: MSIF Income Statement Summary
MSIF Income Statement Summary Q1 25 vs. Q1 24 ($ in 000s, except per share amounts) Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 % Change(1) Total Investment Income $ 33,950 $ 33,946 $ 33,477 $ 33,455 $ 33,227 (2)% Expenses: Interest Expense (9,549) (9,546) (10,374) (9,565) (8,243) 14% G&A Expense(2) (6,218) (6,44
Slide 23: MSIF Per Share Change in Net Asset Value (NAV)
MSIF Per Share Change in Net Asset Value (NAV)(1) ($ per share) Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Beginning NAV $ 15.54 $ 15.44 $ 15.55 $ 15.38 $ 15.53 Net Investment Income 0.36 0.36 0.35 0.35 0.38 Net Realized Gain/(Loss) (0.05) 0.01 0.63 (0.20) (0.47) Net Unrealized Appreciation/(Depreciation) (0.03)
Slide 24: MSIF Balance Sheet Summary
MSIF Balance Sheet Summary ($ in 000s) Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Private Loan Portfolio Investments $ 631,447 $ 665,860 $ 679,863 $ 677,878 $ 767,780 LMM Portfolio Investments 391,575 406,252 411,030 436,150 439,689 Middle Market Portfolio Investments 68,352 49,898 46,062 39,402 30,781 Other Por
Slide 25: MSIF Capitalization
MSIF Capitalization ($ in 000s) Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 SPV Facility(1) $ 275,688 $ 250,688 $ 259,688 $ 266,688 $ 260,688 Corporate Facility(1) 79,000 151,000 147,000 149,000 160,000 Series A Notes(2) 150,000 150,000 150,000 150,000 150,000 Total Debt at Par Value $ 504,688 $ 551,688 $ 556,688
Slide 26: Stable, Long-Term Leverage
Stable, Long-Term Leverage MSIF maintains a Principal Drawn Borrowing conservative capital Facility Interest Rate Maturity as of 3/31/2025 Availability(5) structure, with limited overall SOFR+2.20% floating February 2030 (fully SPV Facility(1)(3) revolving until $260.7 million $39.3 million leverage
Slide 27: Long-term Maturity of Debt Obligations
Long-term Maturity of Debt Obligations MSIF maintains a $300.0 conservative capital structure, with limited overall leverage and $250.0 an intentional mix of short-term and long- term debt $200.0 Capital structure is (in millions) designed to correlate $150.0 to and complement the $260.7 expected du
Slide 28: 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 Bas
Slide 29: 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 30: MSC Income Fund, Inc. Corporate Information
MSC Income Fund, Inc. Corporate Information Please visit MSIF’s website at www.mscincomefund.com for additional information Board of Directors Executive Officers Research Coverage Corporate Headquarters Investor Relation Contacts th Dwayne L. Hyzak Dwayne L. Hyzak Robert J. Dodd 1300 Post Oak Blvd,