MSC Income Fund sees net asset value rise on robust credit performance

MSC Income Fund (NYSE:MAIN) signaled a strong finish to 2025, providing preliminary fourth-quarter results that point to rising asset values and double-digit returns on equity as it navigates a stabilizing interest rate environment.

The Houston-based business development company (BDC) estimated its net asset value (NAV) per share as of Dec. 31, 2025, to be between $15.81 and $15.89.

This represents a quarterly increase of as much as 2.3%, driven primarily by net fair value appreciation within its investment portfolio.

Preliminary net investment income (NII) is expected to range from $0.26 to $0.30 per share, while adjusted net investment income—which excludes capital gains incentive fees—is estimated at $0.32 to $0.36 per share.

The fund, which is externally managed by a subsidiary of Main Street Capital Corp., estimated its annualized return on equity for the fourth quarter exceeded 16%, bringing its full-year ROE to over 12%.

Throughout 2025, the fund paid total dividends of $1.44 per share, maintaining a high yield for its shareholders.

Asset quality remained a highlight of the update, with non-accruals—loans where interest payments have stopped—representing only 1% of the total portfolio at fair value.

MSC Income is scheduled to release its finalized year-end financial results after the market closes on Feb. 26.