Main Street Capital Corporation announced a complete exit of its debt and equity investments in KBK Industries, LLC following the sale of the company to a strategic acquiror. The transaction resulted in a $17.3 million realized gain on Main Street’s equity investment, representing the culmination of a 20-year partnership with KBK, a leading U.S. manufacturer of large-volume fiberglass and steel tanks headquartered in Rush Center, Kansas.

Over the life of its equity stake, Main Street received cumulative dividends totaling $25.1 million. The firm’s commitment began in January 2006 with $5.75 million in first-lien senior secured term debt and a $0.25 million direct equity investment. Subsequent support included $9.9 million in additional term debt and $0.4 million in equity, bringing total debt investments to $15.6 million and total equity invested to $0.7 million. These capital infusions funded expanded manufacturing capacity, new product patents and entry into diversified end markets.

Main Street’s equity investment in KBK delivered an annual internal rate of return of 127.2% and a 62.7‐times money-invested multiple. When including all debt, warrant and equity commitments, the overall investment achieved a 27.7% IRR and a 3.5-times money-invested multiple. These metrics underscore Main Street’s ability to generate outsized returns through customized long-term financing solutions for lower middle market businesses.