MSC Income Fund Q1 net investment income $16.2M, declares $0.36 dividend
MSIF•MSC Income Fund generated net investment income of $16.2 million ($0.35/share) and adjusted net investment income of $15.6 million ($0.34/share) in Q1 2026, closing the quarter at a $15.87 NAV per share. The fund declared $0.36 per share in dividends, repurchased $16 million of shares below NAV, and issued $150 million of 6.34% notes.
1. Q1 2026 Financial Results
MSC Income Fund reported net investment income of $16.2 million ($0.35 per share), adjusted net investment income of $15.6 million ($0.34 per share), and adjusted net investment income before taxes of $16.6 million ($0.36 per share). Total investment income reached $34.1 million, net assets increased by $13.2 million ($0.29 per share), NAV stood at $15.87 per share, and return on equity was 7.3% annualized.
2. Dividends and Share Repurchases
The fund declared a regular quarterly dividend of $0.35 per share and a supplemental dividend of $0.01 per share, totaling $0.36 per share payable in Q2 2026. It also repurchased $16 million of common stock at prices below NAV, boosting NAV by approximately $0.08 per share.
3. Portfolio Investments
During the quarter, the fund completed $54.8 million in private loan portfolio investments, resulting in a net increase of $17.4 million in cost basis after repayments and realized losses. It also invested $19.4 million in lower middle market follow-on financings, driving a $15.1 million net increase in that portfolio’s cost basis.
4. Capital Structure and Leverage
Effective January 29, 2026, the fund’s minimum regulatory asset coverage requirement was reduced from 200% to 150%, expanding leverage capacity. To further diversify its capital structure, it issued $150 million of 6.34% unsecured notes maturing May 31, 2029.
