Main Street Announces Exit of Portfolio Investment

Core Insights - Main Street Capital Corporation has successfully exited its debt and equity investments in Pearl Meyer & Partners, LLC, realizing a gain of $53.7 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 $13.0 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 $78.2 million [2] Financial Performance - The realized gain of $53.7 million represents an increase of $6.2 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]