Main Street Capital

Main Street Capital (MSCC) is a publicly traded Business Development Company (BDC) based in Houston, Texas, specializing in providing long-term debt and private equity capital to lower middle market (LMM) companies. Their investment strategy is designed to generate current income and capital appreciation by partnering with established businesses that demonstrate stable cash flows and strong management teams. As a BDC, Main Street offers a unique investment vehicle that provides capital to businesses often underserved by traditional lending institutions, while also distributing a significant portion of its taxable income to shareholders.

Main Street's primary focus is on providing flexible financing solutions, including first lien, second lien, and subordinated debt, alongside equity investments such as common equity, preferred equity, and warrants. They typically target LMM companies with annual revenues ranging from $10 million to $150 million and EBITDA between $3 million and $20 million. This broad range allows them to support a diverse set of industries and business models, emphasizing a collaborative approach with management teams to foster growth and operational improvements.

For their core lower middle market investments, Main Street Capital typically deploys initial capital ranging from $5 million to $50 million per company. This strategic approach enables them to be a significant capital partner for growth initiatives, acquisitions, or recapitalizations within their target market. As of December 31, 2023, their robust LMM portfolio comprised investments in 88 distinct companies, showcasing their extensive reach and commitment to this segment. The firm's total investment capital at fair value stood at approximately $3.7 billion at the end of 2023, underscoring its substantial capacity to fund new opportunities.