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Main Street Announces Exit of Investments in an Existing Portfolio Company
Prnewswire· 2026-01-13 12:00
Core Insights - Main Street Capital Corporation has successfully exited its investments in KBK Industries, LLC, realizing a gain of $17.3 million from the sale of the company to a strategic acquirer [1][3] Investment Overview - Main Street initially invested $5.75 million in first lien, senior secured term debt and $0.25 million in direct minority equity in KBK in January 2006 [2] - Over the 20-year investment period, Main Street provided additional support totaling $15.6 million in debt and $0.7 million in equity, facilitating KBK's growth and expansion [2] Financial Performance - The exit from KBK resulted in cumulative dividends of $25.1 million, leading to an annual internal rate of return (IRR) of 127.2% and a 62.7 times money invested (TMI) return on the equity investment [3] - Including all investments, Main Street achieved a cumulative IRR of 27.7% and a 3.5 TMI return [3] Company Profile - Main Street Capital Corporation specializes in providing customized long-term debt and equity capital solutions to lower middle market companies, with portfolio companies typically generating annual revenues between $10 million and $150 million [4] - The firm also manages investments for external parties through its wholly-owned subsidiary, MSC Adviser I, LLC, which is registered as an investment adviser [5]