Main Street Announces New Portfolio Investment and Partial Exit of Portfolio Investments in an Existing Portfolio Company

Investment in Nello Industries - Main Street Capital Corporation invested $36.9 million in Nello Industries, LLC to support a management-led buyout, which includes first lien, senior secured term debt and direct equity investment [1] - Nello Industries is a manufacturer of engineered steel poles and structures for electric utility and telecommunications markets, with a diverse product range [2] Exit from Existing Company - Main Street partially exited its investments in a Lower Middle Market portfolio company through the sale of the company's operating assets to a strategic acquirer, realizing a gain of$10.4 million [3][6] - The Existing Company, which specializes in decorative planters and home décor items, sold a subsidiary in May 2023, allowing it to focus on product innovation and customer service [4][5] Financial Performance - Main Street's investment in the Existing Company since March 2020 has yielded an annual internal rate of return (IRR) of 53.2% and a 4.6 times money invested (TMI) return on equity [6] - Cumulatively, including both debt and equity investments, Main Street achieved an IRR of 22.1% and a 1.7 TMI return [6] Company Overview - Main Street Capital Corporation primarily provides long-term debt and equity capital to lower middle market companies, focusing on management buyouts, recapitalizations, and growth financings [8] - The company targets portfolio companies with annual revenues between $10 million and$150 million [8]