Main Street Capital Corporation announced the full exit of its debt and equity investments in KBK Industries, LLC following the sale of the company to a strategic acquiror. Founded in 1975 and based in Rush Center, Kansas, KBK is a manufacturer of large-volume aboveground and belowground fiberglass and steel tanks serving diversified end markets across the United States. The exit generated a realized gain of $17.3 million on Main Street’s equity stake.

Main Street led a majority recapitalization of KBK in January 2006 with an initial commitment of $5.75 million in first-lien, senior secured term debt paired with equity warrant participation and a $0.25 million direct minority equity investment. Over a 20-year partnership, Main Street extended revolving credit facilities, added $9.9 million in senior secured term debt and invested an incremental $0.4 million in equity. These capital infusions funded expanded manufacturing facilities, a new plant to broaden production capabilities, several patented product developments and entry into new end markets.

In addition to the $17.3 million realized gain on equity, Main Street received cumulative dividends totaling $25.1 million over the life of its equity investment. On an equity-only basis, the company achieved an annual internal rate of return of 127.2% and a 62.7× money-multiple. Including all debt, warrant and equity investments in KBK, Main Street realized a 27.7% IRR and a 3.5× money-multiple, underscoring the strength of its lower middle market investment strategy and long-term capital solutions.