Houston – October 12, 2026 -- MSC Income Fund (NYSE: MSIF) realized an $11.6 million gain on the exit of its equity investment in Centre Technologies Holdings, LLC, delivering a 40.1% annual internal rate of return and an 8.8x money-invested multiple on the equity position.
Majority recapitalization triggers full exit of debt and equity stakes
The Fund exited both its debt and equity investments in Centre after the Houston-based IT services provider completed a majority recapitalization with a new financial sponsor. Centre, founded in 2006, offers managed services, cloud solutions, cyber security, IT consulting and business intelligence services to lower and middle market businesses, often acting as a fully outsourced IT department.
Realized value tops March 31 fair market value by $1.7 million
The $11.6 million gain includes a minority equity ownership position in Centre's acquirer, which the Fund received as part of the sale proceeds. The realized value exceeded the Fund's fair market value for the equity investment as of March 31, 2026, by $1.7 million. The Fund also collected total dividends of $0.5 million over the life of the equity investment.
Combined debt and equity returns reach 23.2% IRR and 2.4x multiple
Counting the realized gain, dividends and fees since the January 2019 initial investment, the equity position produced a 40.1% IRR and an 8.8x return on money invested. Across both debt and equity investments, the Fund realized a 23.2% IRR and a 2.4x return.
Seven follow-on acquisitions lifted Fund exposure to $12.2 million
MSC Income partnered with Centre's existing owners, senior management and Main Street Capital Corporation (NYSE: MAIN) in January 2019 for a minority recapitalization aimed at funding the company's acquisition growth strategy. The initial investment comprised a $0.6 million revolving line of credit, a $3.1 million first lien, senior secured term loan and a $1.5 million direct equity investment.
Centre then completed seven follow-on acquisitions. MSC Income funded an additional cumulative $6.9 million under the term loan facility and $0.1 million in direct equity. Total debt investments grew to $10.6 million and total equity investments to $1.6 million.