MSC Income Fund Co-Invests in $25.6M DMS Holdco Acquisition Funding
MSC Income Fund provided a co-investment in a $25.6 million follow-on round for DMS Holdco LLC to fund its acquisition of Johnson & Quin and other growth initiatives. Main Street Capital’s share included $20.8 million in senior secured term debt and $4.8 million in equity, with MSIF covering the balance.
1. Investment Breakdown
MSC Income Fund joined Main Street Capital in a $25.6 million follow-on financing for DMS Holdco LLC. Main Street contributed $20.8 million in first-lien senior secured term debt and $4.8 million in direct equity, while MSIF provided the remaining capital to complete the round.
2. Acquisition of Johnson & Quin
The financing supports DMS Holdco’s strategic acquisition of Johnson & Quin, a Chicago-based direct marketing services firm with 150 years of continuous operations. The deal expands DMS’s omni-channel capabilities and client base in fintech, banking, telecom and technology sectors.
3. Impact on MSC Income Fund Portfolio
This co-investment aligns with MSIF’s strategy of providing debt capital to private companies undergoing acquisitions and growth financings. The transaction is expected to enhance MSIF’s secured debt yields and diversify its exposure within the lower middle market direct marketing segment.