MSC Income Fund, Inc. (MSIF) reported fourth‑quarter 2025 net investment income of $13.1 million, or $0.28 per share, and adjusted net investment income of $15.9 million, or $0.34 per share. The adjusted net investment income before taxes reached $17.2 million, or $0.37 per share, while total investment income for the quarter was $34.9 million. Net asset value per share increased to $15.85, up from $15.54 at the end of the third quarter, driven by a $16.6 million fair‑value gain that included realized gains from full exits of two private‑loan portfolio investments and a lower‑middle‑market (LMM) portfolio investment.
The quarter’s net investment income per share fell $0.06 from $0.35 in Q4 2024, reflecting the impact of capital‑gains incentive‑fee accruals. Despite the decline in NII, total investment income rose $1.5 million YoY, largely due to a $2.6 million increase in dividend income from LMM companies. The company’s portfolio composition remained heavily weighted toward private loans (61 %) and LMM (36 %), with middle‑market and other investments making up the remaining 3 %.
The $16.6 million fair‑value gain was primarily the result of realized gains from the full exits of the private‑loan and LMM investments, partially offset by realized losses on a private‑loan portfolio restructure and another private‑loan exit. This gain contributed to the 2.0 % increase in NAV per share and supported the Fund’s 16.3 % annualized return on equity for the quarter.
Full‑year 2025 results showed net investment income of $61.8 million, or $1.33 per share, and adjusted net investment income of $64.5 million, or $1.39 per share. Adjusted net investment income before taxes reached $68.3 million, or $1.47 per share. GAAP earnings per share of $0.28 fell short of analyst expectations, while the adjusted EPS of $0.37 matched the consensus estimate of $0.3701, indicating that the capital‑gains incentive‑fee structure was the primary driver of the GAAP miss. Total investment income of $34.9 million was $1.77 million below the analyst estimate of $36.69 million, a 4.8 % miss largely attributable to lower-than‑expected income from other portfolio segments.
Management highlighted the Fund’s strong portfolio quality and liquidity, noting that expanded regulatory leverage capacity became effective in January 2026. CEO Dwayne L. Hyzak said, “Based upon the quality of the Fund’s existing investment portfolio, combined with the Fund’s existing liquidity and expanded regulatory leverage capacity which became effective for the Fund at the end of January 2026, we remain excited about our future expectations for the Fund.” He added, “We are very pleased with the Fund’s performance in the fourth quarter, which resulted in an annualized return on equity of 16.3%, favorable adjusted net investment income per share and a significant net increase in the fair value of the Fund’s investments, including the benefits of net realized gains in both the Fund’s private loan and lower middle market investments, which resulted in a significant increase in net asset value per share.” The Fund declared a regular quarterly dividend of $0.35 per share and a supplemental dividend of $0.01 per share, totaling $1.44 per share for the year.
Market reaction to the earnings was muted. Investors appeared cautious, likely weighing the revenue miss against the in‑line adjusted earnings and the positive portfolio‑valuation gains. The announcement did not trigger a significant shift in investor sentiment, suggesting that the market viewed the results as broadly consistent with the Fund’s long‑term strategy and outlook.
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