MSC Income Fund reported its third‑quarter 2025 results, showing net investment income of $0.35 per share and a net asset value of $15.54 per share. Total investment income rose 6% to $35.367 million, driven by a $1.2 million increase in dividend income and a $0.8 million rise in fee income, while interest income fell slightly by $119 k. The fund’s net assets grew by $26.529 million, or $0.56 per share, and the annualized return on equity for the quarter was 14.6%.
The company’s private‑loan portfolio, however, did not grow as previously reported. Instead, the cost basis of the private‑loan investment portfolio decreased by $6.7 million during the quarter, bringing the total to approximately $761.1 million as of September 30, 2025. This contrasts with the $790 million figure cited in the original article and reflects net repayments and realized losses that offset new funding of $74.6 million in the quarter.
Dividend and fee income gains offset a modest decline in interest income, illustrating the fund’s continued focus on higher‑yield private‑loan assets. The $1.2 million increase in dividend income was largely due to higher distributions from the fund’s portfolio of lower‑middle‑market companies, while the $0.8 million rise in fee income came from increased management fees on newly acquired private‑loan positions.
Chief Executive Officer Dwayne L. Hyzak highlighted the results as evidence of the fund’s disciplined investment approach. He noted that the annualized return on equity of 14.6% and the net asset growth underscore the effectiveness of the private‑loan strategy, and he emphasized that the liquidity generated by the recent equity raise will support continued investment in this core segment.
Market reaction to the earnings was cautious. Investors weighed the earnings beat against the revenue miss—EPS of $0.35 per share fell short of the consensus estimate of $0.3643, and revenue of $35.367 million missed the $36.03 million estimate. The mixed performance led to a modest after‑hours increase of about 1%, but overall sentiment remained subdued as analysts focused on the top‑line shortfall despite strong profitability metrics.
The results suggest that while MSC Income’s core private‑loan strategy remains profitable, the fund faces headwinds in generating top‑line growth. The decline in the private‑loan portfolio’s cost basis and the revenue miss signal that the fund may need to adjust its sourcing or pricing strategy to sustain growth, even as it continues to benefit from disciplined cost management and a robust return on equity.
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