Main Street Capital Corporation (MAIN): Business Model Canvas [Dec-2025 Updated]

You're looking to dissect exactly how Main Street Capital Corporation consistently delivers high-yield income while financing the lower middle market (LMM), and honestly, their model is built on disciplined, hands-on partnership. As someone who's mapped these engines for years, I can tell you their secret sauce isn't just providing customized debt and equity; it's their structural efficiency, evidenced by that industry-leading 1.4% Operating Expenses to Assets Ratio annualized as of Q3 2025, all while managing a portfolio worth $2.8 billion in LMM fair value. Dive into the full Business Model Canvas below to see the nine building blocks-from their key partnerships with lenders to their recurring fee income streams-that power this machine for both portfolio companies and shareholders.

Main Street Capital Corporation (MAIN) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that fuel Main Street Capital Corporation's investment engine. These aren't just casual acquaintances; these are deep, structural partnerships that provide capital access and deal flow. Honestly, for a BDC like Main Street Capital Corporation, the quality of these partners directly impacts its cost of capital and deal sourcing.

The financing side relies heavily on established banking relationships and government-backed leverage. As of the second quarter of 2025, Main Street Capital Corporation maintained a robust capital structure supported by these key debt partners.

The equity and investment sourcing side is built on collaboration with the private equity ecosystem. Main Street Capital Corporation actively seeks out these relationships to feed its Private Loan strategy.

• Private equity fund sponsors for the Private Loan strategy: Main Street Capital Corporation seeks to partner with these sponsors, primarily investing in secured debt investments within this strategy.
• Portfolio company management teams and entrepreneurs: Main Street Capital Corporation partners with these groups to provide customized 'one-stop' debt and equity financing solutions for its Lower Middle Market (LMM) investments.
• LMM Portfolio Company Revenue Profile: The LMM companies Main Street Capital Corporation partners with generally have annual revenues between $10 million and $150 million.
• Private Loan Portfolio Scale: As of September 30, 2025, the private loan portfolio included total investments at cost of approximately $1.9 billion across 86 unique companies.
• Recent Deal Example: In September 2025, Main Street Capital Corporation partnered with the founders and management team of The Financial Risk Group, LLC, funding $14.0 million in debt and equity for a minority recapitalization.

Finally, Main Street Capital Corporation is a publicly traded entity, meaning it is also accountable to a broad base of institutional shareholders who provide significant capital backing. These investors are crucial for maintaining market confidence and access to public equity markets.

As of late 2025, Main Street Capital Corporation had 448 institutional owners and shareholders filing the necessary forms with the SEC. You see major names in this group, which shows broad institutional acceptance of the model.

• Institutional investors like Franklin Resources Inc. are noted shareholders.
• Other significant institutional holders include Price T Rowe Associates Inc. /md/ and Van Eck Associates Corp.
• The share price as of December 2, 2025, was $58.06 per share.

Main Street Capital Corporation (MAIN) - Canvas Business Model: Key Activities

You're looking at the engine room of Main Street Capital Corporation, the day-to-day work that turns capital into returns. This isn't just about writing checks; it's a continuous cycle of sourcing, structuring, managing, and optimizing. Here's a breakdown of the core functions based on their late 2025 performance data.

Origination and underwriting of new LMM and Private Loan investments

This is where Main Street Capital Corporation finds the deals and vets the risk. The activity level in the third quarter of 2025 shows consistent deployment across both segments. They are actively underwriting and funding new partnerships while managing the existing book.

For the private loan portfolio during the third quarter of 2025, Main Street Capital Corporation originated or increased commitments totaling $117.3 million and funded total investments with a cost basis of $113.3 million across 86 unique companies. The lower middle market (LMM) segment saw $69.0 million invested in three new LMM portfolio companies, as part of a total LMM portfolio investment of $106.2 million in Q3 2025. To give you a sense of scale, as of September 30, 2025, the private loan portfolio represented approximately $1.9 billion at cost.

Here's a look at the recent investment deployment:

The private loan portfolio structure remains heavily weighted toward seniority, with 94.0% invested in first lien senior secured debt investments as of September 30, 2025.

Providing customized one-stop debt and equity capital solutions

Main Street Capital Corporation focuses on providing tailored financing, which means the activity involves structuring complex, integrated debt and equity packages. They partner with companies that fit specific size profiles, which dictates the type of solution offered.

• Lower Middle Market (LMM) portfolio companies generally have annual revenues between $10 million and $150 million.
• Private loan portfolio companies generally have annual revenues between $25 million and $500 million.
• As of Q3 2025, the LMM portfolio included investments in 88 companies, representing $2.8 billion of fair value.

The value proposition here is the relationship and the flexibility; they are not Wall Street, they are Main Street.

Active management and strategic support for portfolio companies

Once the capital is deployed, the activity shifts to monitoring and adding value. This is reflected in the strong performance metrics Main Street Capital Corporation reports. You see this support translating directly into shareholder value.

The results for the third quarter ended September 30, 2025, showed an annualized Return on Equity (ROE) of 17.0% for the quarter. The Net Asset Value (NAV) per share reached a record of $32.78 as of September 30, 2025, up from $31.65 per share on December 31, 2024. This represents a 3.6% increase in NAV per share since year-end 2024. The total investment portfolio at fair value was 18% above the related cost basis at quarter end.

Managing investments for external parties via MSC Adviser I, LLC

This activity involves operating the asset management arm, MSC Adviser I, LLC, which generates fee income by managing capital for external clients. This is a distinct revenue driver that requires separate operational focus.

As of the end of the third quarter of 2025, MSC Adviser I, LLC ended the quarter with total assets under management of $1.6 billion. For that same quarter, the External Investment Manager earned $9.7 million in total fee income, which included $5.6 million of management fee income and $3.9 million in incentive fees. Main Street Capital Corporation allocates expenses related to shared employees to this External Investment Manager, with $5.7 million of total expenses allocated in Q3 2025.

Maintaining a cost-efficent operating structure, a key defintely differentiator

Keeping operating costs low relative to assets is a core activity that directly impacts distributable net investment income. Main Street Capital Corporation consistently highlights its efficiency.

For the third quarter of 2025, the ratio of total non-interest operating expenses as a percentage of quarterly average total assets (Operating Expenses to Assets Ratio) was 1.4% on an annualized basis. For the trailing twelve-month period ending September 30, 2025, this ratio stood at 1.3%. Total cash expenses for Q3 2025 were $44.1 million. For the twelve months ending September 30, 2025, Main Street Capital Corporation's annual operating expenses were $0.198B (or $198 million).

Main Street Capital Corporation (MAIN) - Canvas Business Model: Key Resources

You're looking at the core assets Main Street Capital Corporation uses to execute its investment strategy as of late 2025. These aren't just line items; they are the engine for their value creation.

Permanent capital structure as a publicly traded BDC

Main Street Capital Corporation operates as a publicly traded Business Development Company (BDC). This structure allows for access to public equity and debt markets to fund its investment activities. As part of managing this structure in the third quarter of 2025, Main Street Capital Corporation further diversified its capital base by issuing $350.0 million of 5.40% unsecured notes due August 15, 2028.

The firm's net asset value (NAV) per share as of September 30, 2025, stood at $32.78.

$1.145 billion Corporate Facility commitment (as of Q3 2025)

Liquidity is maintained through credit facilities to support investment and operating needs. As of September 30, 2025, Main Street Capital Corporation had aggregate liquidity of $1.561 billion. This included $1.530 billion of aggregate unused capacity across its credit facilities. Specifically, the Corporate Facility had total commitments of $1.145 billion from a group of 19 participating lenders. This facility also carries an accordion feature allowing for a potential increase in total commitments up to $1.718 billion. Borrowings outstanding under the Corporate Facility as of that date were $135.0 million.

Experienced in-house investment and management team

The firm relies on its human capital to source, underwrite, and manage its portfolio. This team is central to Main Street Capital Corporation's ability to provide customized financing solutions. The firm's investment focus targets lower middle market companies, generally those with annual revenues between $10 million and $150 million.

Wholly-owned External Investment Manager (MSC Adviser I, LLC)

Main Street Capital Corporation owns MSC Adviser I, LLC, which acts as the External Investment Manager, providing asset management services to external parties. This entity is a significant resource, as it ended the third quarter of 2025 with total assets under management of $1.6 billion. The investment Main Street Capital Corporation holds in this External Investment Manager was valued at a fair value of $266.4 million against a cost basis of $29.5 million as of September 30, 2025.

Diversified investment portfolio with $2.8 billion LMM fair value

The investment portfolio is the primary asset. As of September 30, 2025, the total investment portfolio at fair value was 18% above its related cost basis. The Lower Middle Market (LMM) portfolio is a key component, with investments in 88 companies totaling $2.8 billion in fair value. The Private Loan portfolio, consisting of 86 unique companies, had total investments at cost of approximately $1.9 billion.

Here's a quick look at the portfolio composition as of September 30, 2025, focusing on the largest reported segments:

The LMM portfolio equity investments showed a fair value that was 204% of their cost basis.

The firm's investment activity in the third quarter of 2025 included several key resource deployments:

• Total investments in the lower middle market portfolio of $106 million at cost.
• Net increase in the total cost basis of the LMM investment portfolio of $61.3 million after repayments and adjustments.
• Total funded investments across the private loan portfolio of $113.3 million at cost.
• Originated new or increased commitments in the private loan portfolio totaling $117.3 million.

Finance: draft updated capital allocation plan for Q4 2025 by next Tuesday.

Main Street Capital Corporation (MAIN) - Canvas Business Model: Value Propositions

You're an owner of a growing lower middle market (LMM) business, and traditional bank financing just isn't flexible enough for your next big move. Main Street Capital Corporation steps in with a specific value proposition tailored for you.

Customized one-stop financing (debt and equity) for LMM companies

Main Street Capital Corporation provides customized debt and equity financing solutions, acting as a one-stop shop for LMM portfolio companies. This approach is designed to support various transaction types, including management buyouts, recapitalizations, growth financings, refinancings, and acquisitions. Main Street Capital Corporation generally seeks to invest in LMM companies that have annual revenues between $10 million and $150 million. As of September 30, 2025, the LMM portfolio included 88 companies with a fair value of $2,782.2 million.

Long-term, patient capital and strategic partnership for business owners

Unlike many private equity firms with fixed investment horizons, Main Street Capital Corporation, as a publicly traded business development company, is not required to return capital by a specific date. This allows Main Street Capital Corporation to be a long-term partner, seeing through growth strategies that might extend 5, 10, or even 15 years in duration. The firm seeks to structure financial partnerships that align its interests with the business, management, and existing owners to maintain operational and strategic control while offering flexibility. Main Street Capital Corporation aims to partner with entrepreneurs, business owners, and management teams.

Industry-leading cost efficiency: 1.4% Operating Expenses to Assets Ratio (Q3 2025 annualized)

A key differentiator for Main Street Capital Corporation is its cost structure, which is among the lowest in its industry. This efficiency is partly due to its internally managed structure, avoiding external investment advisory fees. For the third quarter ended September 30, 2025, the ratio of total non-interest operating expenses as a percentage of quarterly average total assets (Operating Expenses to Assets Ratio) was 1.4% on an annualized basis. For the trailing twelve-month period ended September 30, 2025, this ratio was even lower at 1.3%.

Here's a quick look at some key Q3 2025 operational metrics that underpin this value proposition:

Consistent, reliable monthly and supplemental dividends for shareholders

For you as an investor, Main Street Capital Corporation offers a history of consistent shareholder returns. The company has maintained dividend payments for 19 consecutive years. For the fourth quarter of 2025, the Board of Directors declared regular monthly cash dividends of $0.255 per share for each of October, November, and December 2025, totaling $0.765 per share for the quarter. Furthermore, a supplemental cash dividend of $0.30 per share was declared payable in September 2025. This resulted in total dividends paid in Q3 2025 of $1.065 per share. The Total Dividends for the full year 2025 are reported as $4.230 per share.

The recent dividend declarations show this commitment:

• Regular Monthly Dividend (Oct, Nov, Dec 2025): $0.255 per share each month.
• Supplemental Dividend (September 2025): $0.30 per share.
• Total Regular Monthly Dividends for Q4 2025: $0.765 per share.
• Total Dividends Paid in Q3 2025: $1.065 per share.

Operational support to help portfolio companies hire and grow

Main Street Capital Corporation goes beyond just capital; it offers active management and strategic guidance. The team of investment professionals provides practical solutions necessary to meet unique transaction goals. Main Street Capital Corporation can offer strategic insight and make valuable connections with industry experts and other technical experts to help portfolio companies grow. This hands-on approach is designed to improve operational efficiency and profitability within the companies it invests in, helping them navigate challenges and capitalize on growth opportunities. All new LMM portfolio investments initially receive an Investment Rating of 3, representing performance generally in accordance with expectations, which guides the level of initial support and monitoring.

Main Street Capital Corporation (MAIN) - Canvas Business Model: Customer Relationships

You're looking at how Main Street Capital Corporation (MAIN) builds and maintains its relationships with its portfolio companies-the core of its business. It's defintely not a passive, hands-off approach; they position themselves as an embedded, long-term partner, which is a key differentiator from many other capital providers.

High-touch, collaborative partnership with LMM management teams

Main Street Capital Corporation focuses its lower middle market (LMM) strategy on companies with annual revenues generally between $10 million and $150 million. This size segment naturally lends itself to more direct engagement. They seek to partner directly with entrepreneurs, business owners, and management teams, offering customized "one-stop" debt and equity financing solutions. This partnership model is evident in their portfolio structure; as of the third quarter of 2025, the LMM portfolio included 88 companies with a fair value of $2.8 billion. They added three new LMM portfolio companies in Q3 2025 alone, investing $61 million net into that segment. The relationship is built on providing capital for events like management buyouts, recapitalizations, and growth financings.

Here's a quick look at the scale of their LMM customer base and investment activity as of late 2025:

Long-term relationship focus enabled by permanent capital

The structure of Main Street Capital Corporation as a Business Development Company (BDC) provides it with a form of permanent capital, which allows it to tell management teams they are a long-term fixture, not a fund with a fixed life that needs an exit in five to seven years. This stability is a core part of the relationship pitch. They highlight a proven track record established over 20 years of partnering with companies. This long-term view supports consistent shareholder returns, which in turn reinforces the stability offered to portfolio companies. For instance, Main Street Capital Corporation has a record NAV per share for the 13th consecutive quarter as of Q3 2025, and they declared a supplemental dividend for the 17th consecutive quarter. This consistency signals reliability to management teams.

The commitment to long-term capital deployment is also reflected in their balance sheet activities, such as issuing 5.40% unsecured notes due August 15, 2028, which locks in financing costs over a multi-year horizon.

Investor Relations providing transparency and regular communication

While the primary customer is the portfolio company management, the relationship with investors-your relationship-is managed through a high degree of transparency. Main Street Capital Corporation maintains regular communication cadence. They host quarterly conference calls, such as the one for Q3 2025 on November 7, 2025, and provide detailed materials like Investor Presentations and Summary Fact Sheets on the same day. The CFO noted that their capital activities are aided by strong relationships, which speaks to the trust built with both capital providers and borrowers. You can track their ongoing dialogue through:

• Quarterly Conference Calls and Earnings Releases.
• Publicly available Investor Presentations and Summary Fact Sheets.
• Email Alerts and RSS News Feeds for timely updates.
• Reporting 174 Cumulative Investments to date.

Direct, hands-on involvement in portfolio company strategy

Main Street Capital Corporation goes beyond just providing capital by actively engaging in portfolio company strategy. They partner with management teams to facilitate major events, but also offer strategic guidance. For example, the President and Chief Investment Officer discussed how the annual Main Street President's Meeting focused on critical strategic topics like artificial intelligence, disaster recovery planning, and acquisition strategies. This hands-on strategic support is a key value-add. It's reported that the vast majority of their portfolio companies are actively engaged in utilizing AI tools in their businesses, suggesting Main Street Capital Corporation is driving adoption of modern strategies.

The involvement is tailored to the investment type. For LMM equity investments, they partner with management teams, while for their private loan strategy, they primarily invest in secured debt, often alongside private equity fund sponsors. Even in a debt-heavy investment, like the $10.0 million investment to facilitate a leveraged buyout of a tax collection service provider, Main Street Capital Corporation's role is collaborative, partnering with the new majority equity investor.

Main Street Capital Corporation (MAIN) - Canvas Business Model: Channels

You're looking at how Main Street Capital Corporation gets its capital solutions and its stock information out to the world. It's a multi-pronged approach, blending direct deal-sourcing with public market access and a separate asset management channel.

Direct origination efforts by the in-house investment team

The core channel for deploying capital is the in-house investment team, which focuses on direct origination within the lower middle market (LMM). This team is actively sourcing and closing deals. For instance, during the third quarter of 2025, Main Street Capital Corporation originated new or increased commitments in its private loan portfolio totaling $117.3 million. The actual funded investments for that same quarter had a cost basis of $113.3 million. This direct effort feeds the main investment portfolio.

Here's a quick look at the structure of that private loan portfolio as of September 30, 2025:

The private loan portfolio, at cost, stood at approximately $1.9 billion across 86 unique companies as of that September 30, 2025 date. To give you context on recent deployment, in the second quarter of 2025, the team originated $196.2 million in new or increased commitments.

The team also manages the LMM portfolio, which, as of the end of Q3 2025, included investments in 88 companies with a fair value of $2.8 billion. The total investment portfolio across all segments at fair value was 18% above its related cost basis at that quarter-end.

New York Stock Exchange (NYSE: MAIN) for public shareholders

For public shareholders, the primary channel is the listing on the New York Stock Exchange under the ticker MAIN. This provides liquidity and a mechanism for capital raising. As of December 3, 2025, the market capitalization stood at $5.32 billion, with 89.59 million shares outstanding. The stock price on that date was $59.35.

Shareholders access capital structure information and distributions through this public forum. For instance, the Net Asset Value (NAV) per share as of September 30, 2025, was reported at $32.78. The regular monthly dividend declared for payment on December 15, 2025, was $0.2550 per share, supplemented by a declared dividend of $0.30 payable on December 29, 2025.

The ownership base is quite broad, involving a significant retail component:

• Institutional shareholders hold 22.31%.
• Retail investors hold 70.11%.
• Insiders hold 7.58%.

There are 448 institutional owners and shareholders filing 13D/G or 13F forms, collectively holding 22,081,699 shares.

Corporate website and Investor Relations for financial data and reporting

The corporate website, www.mainstcapital.com, serves as the central hub for official disclosures and detailed performance metrics. Investor Relations uses this platform to disseminate mandatory and voluntary disclosures, such as the Q3 2025 financial results released on November 6, 2025. You can pull specific operational efficiency metrics directly from these reports.

For example, Main Street Capital Corporation reported an industry-leading ratio of total non-interest operating expenses as a percentage of quarterly average total assets ('Operating Expenses to Assets Ratio') of 1.4% on an annualized basis for the third quarter of 2025. The trailing twelve-month figure for that same ratio, ending September 30, 2025, was 1.3%. Total investment income for Q3 2025 was $139.8 million.

External Investment Manager (MSC Adviser I, LLC) for external clients

Main Street Capital Corporation channels capital from external clients through its wholly-owned subsidiary, MSC Adviser I, LLC (MSC Adviser). This entity acts as the investment adviser and administrator for external funds, most notably MSC Income Fund, Inc. (NYSE: MSIF). MSC Adviser is registered under the Investment Advisers Act of 1940.

The scale of this external management business is substantial. As of March 29, 2025, the Total AUM for MSC Adviser I, LLC was reported at $1.6 B.

The activity within the managed fund, MSC Income Fund (MSIF), reflects this channel's deployment:

• MSIF originated new or increased commitments of $94.2 million in Q3 2025.
• MSIF funded total investments with a cost basis of $74.6 million in Q3 2025.
• As of September 30, 2025, MSIF's private loan portfolio cost basis was approximately $761.1 million across 81 companies.

The composition of MSIF's private loan portfolio as of that date was 92.0% in first lien senior secured debt investments and 8.0% in equity investments or other securities.

Main Street Capital Corporation (MAIN) - Canvas Business Model: Customer Segments

You're looking at the core groups Main Street Capital Corporation serves across its two primary business lines: direct investment and asset management. Honestly, the segmentation is quite clear, focusing on the lower end of the middle market for direct capital and external capital providers for the asset management side.

The direct investment business targets two main corporate customer groups, defined by their revenue scale and the nature of the financing required.

• Lower Middle Market (LMM) companies with annual revenues between $10 million and $150 million.
• Private Loan companies, typically backed by private equity fund sponsors, with annual revenues between $25 million and $500 million.

Here's a quick look at how those investment segments are characterized as of late 2025, based on recent portfolio activity data:

The private loan portfolio, as of September 30, 2025, represented total investments at cost of approximately $1.9 billion, with 94.0% invested in first lien senior secured debt investments. That's where the bulk of the Private Loan segment exposure lies.

For the equity side of the business, Main Street Capital Corporation also serves external capital providers through its wholly-owned portfolio company, MSC Adviser I, LLC, which acts as the External Investment Manager.

• External limited partners for the Asset Management business.

This segment is focused on managing capital for others, primarily in the private loan strategy. As of the end of the first quarter of 2025, the External Investment Manager had total assets under management of $1.6 billion. The company was actively executing fund-raising activities for its second private loan fund managed by this entity.

Finally, you have the public market customer base, which is composed of individual and professional investors seeking yield.

• Retail and institutional public shareholders seeking high-yield income.

These shareholders are interested in the regular monthly dividends and supplemental distributions Main Street Capital Corporation provides. As of December 2, 2025, the share price stood at $58.06 per share, with a total Market Cap around $4.77B. Institutional interest is significant; as of late 2025, 448 institutional owners and shareholders had filed 13D/G or 13F forms, collectively holding 22,081,699 shares.

The company's focus on providing a high, consistent yield is a direct value proposition to this segment. For instance, regular monthly dividends declared for the third quarter of 2025 totaled $0.765 per share.

Main Street Capital Corporation (MAIN) - Canvas Business Model: Cost Structure

You're looking at the core costs that drive Main Street Capital Corporation's operations as of late 2025. For a business development company like Main Street Capital Corporation, the cost of capital and personnel are the two biggest levers, so tracking these is key to understanding their efficiency.

The cost structure is heavily influenced by the interest paid on its borrowings, which is managed through facilities like the Corporate Facility. As of the reset date of October 1, 2025, borrowings under the Corporate Facility carried an interest rate of 6.0% based on the applicable Secured Overnight Financing Rate (SOFR). It's worth noting that in the third quarter of 2025, Main Street Capital Corporation experienced a $1.0 million decrease in interest expense compared to the same period in 2024, which partially offset rising cash expenses.

Personnel costs are a direct reflection of supporting their growing investment portfolio and asset management activities. Cash compensation expenses saw an increase in Q3 2025. Specifically, total cash expenses for the third quarter of 2025 rose by $0.3 million, or 0.7%, to $44.1 million from $43.9 million in Q3 2024, principally due to a $1.3 million increase in cash compensation expenses. This rise in compensation is tied to increased incentive compensation accruals, higher base rates, and increased headcount.

Main Street Capital Corporation maintains an industry-leading position in cost efficiency, a structural advantage that flows directly to distributable net investment income (DNII). For the trailing twelve-month (TTM) period ended September 30, 2025, the company reported operating expenses (excluding interest expense) totaling $0.198 billion. This figure corresponds to a ratio of total non-interest operating expenses to quarterly average total assets of 1.3% for that TTM period.

The commitment to shareholders is a significant cash outflow that must be factored into the overall cost base. For Q3 2025, Main Street Capital Corporation declared and paid total dividends to shareholders of $1.065 per share. This total included the regular monthly dividends and a supplemental dividend of $0.30 per share.

Here is a quick look at the key cost-related metrics we just discussed:

The efficiency ratio is definitely a competitive edge. You can see the components that make up the total shareholder return commitment:

• Regular Monthly Dividends Declared for Q4 2025: $0.765 per share
• Supplemental Dividend Paid in Q3 2025: $0.30 per share
• Total Dividends Paid in Q3 2025: $1.065 per share

Finance: draft sensitivity analysis on a 50 basis point shift in SOFR impacting the Corporate Facility by Friday.

Main Street Capital Corporation (MAIN) - Canvas Business Model: Revenue Streams

You're looking at how Main Street Capital Corporation (MAIN) actually brings in the money that fuels its operations and dividends as of late 2025. It's a mix of pure lending income, equity upside, and fees from its asset management arm. Honestly, the structure shows a clear focus on the lower middle market (LMM) for the highest returns.

The total investment income for Main Street Capital Corporation in the third quarter of 2025 hit $139.8 million. This total is built from several distinct streams, which you can see broken down below.

Let's look closer at the components that make up that total investment income for the third quarter of 2025.

• Interest income from debt investments (e.g., first lien senior secured loans): This stream saw a headwind, decreasing by $7.3 million compared to the third quarter of 2024, mainly due to lower benchmark index rates on floating rate debt and investments moving to non-accrual status. However, it was up $2.4 million from the second quarter of 2025.
• Dividend income from equity investments in LMM portfolio companies: This was a strong point, increasing by $8.0 million year-over-year, which management attributed to the continued positive underlying performance of the LMM portfolio companies.

The asset management business is a key differentiator for Main Street Capital Corporation, providing a steady stream of fees.

• Fee income from the External Investment Manager: This totaled $9.7 million in Q3 2025, an increase of $1.0 million from Q3 2024. This income is further detailed:
  • Management fee income: $5.6 million in Q3 2025.
  • Incentive fees: $3.9 million in Q3 2025.
• The External Investment Manager ended Q3 2025 with total assets under management of $1.6 billion.

Realized gains from successful exits provide lumpy but significant boosts to overall results. You saw a major example of this in the second quarter.

• Realized gains from the successful exit of equity investments (e.g., first lien senior secured loans): Main Street Capital Corporation recognized a net realized gain of $52.4 million in Q2 2025, which was noted as the largest realized gain in the company's history at that time.
• For context, Q3 2025 activity included $19.1 million in realized losses tied to restructurings and exits, which partially offset gains on other exits.

Finally, transaction-based fees contribute to the overall fee income bucket.

• Fee income from investment activity (prepayment, amendment, and exit fees): Total fee income in Q3 2025 was up $2.2 million from the prior year, driven by higher closing fees on new and follow-on investments, plus an increase in exit and prepayment fees from investment activity.

Finance: draft 13-week cash view by Friday.