Main Street Capital Corporation exited its debt and equity investments in Centre Technologies Holdings, LLC following a majority recapitalization, realizing a $46.4 million gain on its equity stake. Since January 2019, Main Street deployed $42.3 million in debt and $6.4 million in equity, achieving a 40.1% annual IRR with an 8.8x money invested return on equity and a 23.2% IRR with a 2.4x TMI overall.
Main Street exited its debt and equity positions in Centre Technologies Holdings, LLC after the completion of a majority recapitalization with a new financial sponsor, generating a $46.4 million realized gain on its equity investment and acquiring a minority equity stake in the acquirer as part of sale proceeds.
Initial deployment in January 2019 included a $2.4 million revolving line of credit, a $12.2 million first-lien term loan and a $5.8 million direct equity investment; follow-on funding added $27.7 million in debt and $0.5 million in equity, bringing total commitments to $42.3 million in debt and $6.4 million in equity.
The equity investment delivered a 40.1% annual internal rate of return and an 8.8x multiple on money invested, while combined debt and equity realized a 23.2% IRR and a 2.4x total money invested return, along with $2.2 million in dividends and various fees over the investment life.
