HOUSTON – November 05, 2026 -- MSC Income Fund (NYSE: MSIF) reported third-quarter 2026 net investment income of $14.4 million, or $0.32 per share, with net asset value rising 0.3% quarter on quarter to $16.56 per share.
Income and returns: ANII slips to $0.34 per share as annualized ROE reaches 9.7%
Adjusted net investment income was $15.3 million, or $0.34 per share, versus $16.6 million, or $0.35 per share, a year earlier. Adjusted net investment income before taxes was $16.3 million, or $0.36 per share. Total investment income was $35.5 million, up $0.2 million year on year.
Net increase in net assets from operations was $18.1 million, or $0.40 per share. That is $8.4 million below the third quarter of 2025. Return on equity was 9.7% annualized for the quarter and 12.3% for the twelve months ended September 30, 2026.
Net investment income fell $2.2 million year on year, and the per-share figure dropped $0.03. The Fund attributed the decline to higher expenses and higher tax costs, partly offset by higher investment income. A 4.2% reduction in weighted-average shares outstanding, driven mainly by buybacks, was reflected in the per-share comparisons.
Costs: Expenses climb 9.6% to $20.1 million on interest and incentive fee accruals
Total expenses, net of waivers, rose $1.8 million from $18.3 million. Interest expense added $1.3 million, reflecting higher average borrowings and the May 2029 and September 2029 unsecured notes. The accrued capital gains incentive fee rose $0.9 million on net fair value appreciation, and base management fees rose $0.5 million. Incentive fee on income, net of waivers, fell $0.8 million.
Tax expenses included in net investment income rose $0.6 million. The operating expenses to assets ratio improved to 1.9% annualized from 2.0%.
Portfolio: Core Transformers exit delivers $11.0 million gain
The Fund completed $61.4 million of private loan portfolio investments in the quarter. After repayments, return of invested equity capital and a cost-basis decrease from realized losses, the private loan portfolio's total cost basis fell a net $10.5 million. The Fund also realized an $11.0 million gain on its exit from Core Transformers, a private loan portfolio company.
NAV per share is up $0.71, or 4.5%, from $15.85 at December 31, 2025, and up $0.05 from $16.51 at June 30, 2026.
Capital: $75 million of 6.83% notes issued and $20 million buyback authorized
The Fund issued $75.0 million of 6.83% unsecured notes due September 30, 2029. This is the first of two $75.0 million issuances under a $150.0 million private notes offering. It also adopted a share repurchase plan for up to $20.0 million, running from September 2026 to February 2027. Purchases are triggered when the market price trades below the latest reported NAV per share by predetermined levels.
Regular monthly dividends of $0.11 per share were declared for each of October, November and December 2026, totaling $0.33. A $0.03 supplemental dividend payable in December brought total dividends declared in the third quarter to $0.36 per share.
Leadership: Nick Meserve becomes CEO on November 9
Nick Meserve, head of Main Street's private credit investment strategy and a Managing Director there since 2012, takes over as CEO effective November 9, 2026. Dwayne L. Hyzak will become Executive Chairman. Hyzak said the portfolio quality, liquidity position and investment pipeline support the Fund's outlook.