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Main Street Announces Exit of Portfolio Investment
MAINMSCC(MAIN) Prnewswire·2025-01-07 12:00

Core Insights - Main Street Capital Corporation has successfully exited its debt and equity investments in Pearl Meyer & Partners, LLC, realizing a gain of 53.7millionfromthisexit[1][3]−Theexitfollowedamajorityrecapitalizationwithanewfinancialsponsor,highlightingPearlMeyer′sgrowthandstrategicinitiativessinceMainStreet′sinitialinvestment[1][2]InvestmentDetails−MainStreet′sinitialinvestmentinPearlMeyerincludeda53.7 million from this exit [1][3] - The exit followed a majority recapitalization with a new financial sponsor, highlighting Pearl Meyer's growth and strategic initiatives since Main Street's initial investment [1][2] Investment Details - Main Street's initial investment in Pearl Meyer included a 35.0 million first lien, senior secured term loan and a direct equity investment of 13.0million[2]−Followingtheinitialinvestment,PearlMeyerexpandeditsclientbaseandcompletedfivefollow−onacquisitions,withMainStreetprovidinganadditional13.0 million [2] - Following the initial investment, Pearl Meyer expanded its client base and completed five follow-on acquisitions, with Main Street providing an additional 43.2 million to support these initiatives, raising total debt investments to 78.2million[2]FinancialPerformance−Therealizedgainof78.2 million [2] Financial Performance - The realized gain of 53.7 million represents an increase of 6.2millionoverMainStreet′sfairmarketvalueasofSeptember30,2024[3]−Overthelifeoftheequityinvestment,MainStreetreceivedtotaldividendsof6.2 million over Main Street's fair market value as of September 30, 2024 [3] - Over the life of the equity investment, Main Street received total dividends of 31.6 million, resulting in an annual internal rate of return (IRR) of 69.0% and a 7.7 times money invested (TMI) return on the equity investment [3] - Including both debt and equity investments, Main Street achieved a cumulative IRR of 32.7% and a 2.1 TMI return [3]