Main Street Capital (NYSE:MAIN) Q4 2025 Earnings call February 27, 2026 10:00 AM ET Speaker6Greetings, welcome to the Main Street Capital fourth quarter earnings conference call. At this time, all participants are on a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Zach Vaughan. Tha ...

Group 1 - Main Street Capital stock price performed modestly well this year compared to other companies in the business development companies (BDC) industry [1] - Main Street Capital outperformed other BDCs this year [1]

Group 1 - The focus is on producing objective, data-driven research primarily about small- to mid-cap companies, which are often overlooked by many investors [1] - Occasionally, large-cap companies are analyzed to provide a broader perspective on the equity markets [1] Group 2 - There is no current stock, option, or similar derivative position in any of the companies mentioned, but there may be plans to initiate a beneficial long position in the near future [2] - The article expresses the author's own opinions and is not influenced by compensation from any company mentioned [2]

Turmoil has reached business development companies this year. Falling rates combined with some significant corporate bankruptcies have separated the wheat from the chaff as the golden children of the rising rate era begin to show cracks. TheAnalyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compe ...

Core Insights - Uncommon Equity, a private equity firm based in Chicago, has acquired Project BarFly, the parent company of the HopCat restaurant group, which operates 12 restaurants in Michigan and one in Nebraska [1][2] Company Overview - HopCat, founded in 2008, is recognized as a leader in the craft brew restaurant sector, offering scratch-made cuisine and a selection of local craft beers [2] - The company faced significant challenges during the COVID-19 pandemic, leading to a Chapter 11 bankruptcy filing in June 2020 [2] - In October 2020, HopCat's assets were sold for $17.5 million, resulting in the formation of Project BarFly LLC [2] Transaction Details - The financial specifics of the acquisition by Uncommon Equity were not disclosed [1] - Uncommon Equity's CEO, Dan Kipp, expressed enthusiasm about the acquisition and plans to grow the HopCat brand while maintaining its focus on quality food and a friendly atmosphere [3][5] - Kipp will join HopCat's board of directors, alongside existing leadership [4] Strategic Vision - HopCat's CEO, Craig Stage, emphasized that the acquisition represents a continuation of the brand's mission to bring people together, with plans for investment in team development, new locations, and innovation [5] - The transaction's senior debt was provided by OakNorth Bank PLC, with legal and financial advisory support from Much Shelist, P.C. and Mastodon Ventures, Inc. respectively [5] Uncommon Equity's Portfolio - Uncommon Equity's investment portfolio includes various restaurant franchises such as Redberry Restaurants and Rib Rack Premium BBQ [6]

Market Concerns & Credit Issues - The market is concerned about potential widespread credit issues, questioning if they are isolated incidents or a systemic problem, similar to the "cockroach issue" [1] - Underwriting standards for leveraged loans were lowered in the third quarter due to high demand, raising concerns about potential risks when the market tide recedes [8][9] - Private credit market's lack of regulation compared to traditional banks raises concerns about underwriting standards, capital adequacy, and loan loss reserves [12] Alternative Asset Manager Performance - Since September 24th, alternative asset managers have experienced declines: Aries down 22%, KKR down 20%, Blue Owl down 15%, and Blackstone down 14% [3] - Business Development Companies (BDCs) focused on direct lending and private credit have also seen declines: Aries down 6%, Main Street Capital down 11%, Blue Owl down 8%, Sixth Street specialty lending down 8%, and Blackstone secured lending down 5% [3][4] Transparency & Investment Opportunities - BDCs like Aries and Blue Owl offer transparency through quarterly earnings reports and detailed investment summaries, allowing investors to assess their loan portfolios and yields [6][7] - Brent Talkington bought Aries Capital (ARCC) and Blue Owl Tech (F), citing transparency and potential for a 20% total return within a year, with yields around 10% and trading at 8-10% below book value [4][7][8] Private Credit Market Dynamics - The private credit market has evolved over the past 15 years, becoming a primary source of lending as banks face restrictions and regional banks deal with real estate assets [18] - Private credit loans are generally riskier than those from big banks due to higher interest rates and less pristine balance sheets of borrowers [16] - Firms driven by fees may package and sell riskier loans to mutual funds, pension funds, and retail investors, increasing the potential for problems [13][14]

Core Viewpoint - The business development sector has experienced significant turmoil, with the sector index represented by the VanEck BDC Income ETF (BIZD) declining by approximately 10% over the past month [1]. Group 1 - The decline in the business development sector indicates a challenging environment for companies operating within this space [1].

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