Main Street Capital Corp. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Main Street Capital Corp. has filed its annual 10-K report for the fiscal year ended December 31, 2023.</b>

AI Summary

Main Street Capital CORP (MAIN) filed a Annual Report (10-K) with the SEC on February 23, 2024. Main Street Capital Corp. filed its 10-K report for the fiscal year ending December 31, 2023. The company is incorporated in Maryland (MD). Its business and mailing address is 1300 Post Oak Boulevard, 8th Floor, Houston, TX 77056. The filing was made on February 23, 2024. The company operates under the 1934 Securities Exchange Act.

Why It Matters

For investors and stakeholders tracking Main Street Capital CORP, this filing contains several important signals. This 10-K filing provides a comprehensive overview of the company's financial performance, risk factors, and business operations for the fiscal year 2023, crucial for investors to assess the company's health and future prospects. The detailed risk factors outlined in the filing highlight potential challenges such as market competition, interest rate sensitivity, and economic downturns, which are essential considerations for investment decisions.

Risk Assessment

Risk Level: — Main Street Capital CORP shows moderate risk based on this filing. The company faces significant risks including market competition, interest rate sensitivity, economic downturns impacting portfolio companies, and potential loss of investment capital, as detailed in the filing.

Analyst Insight

Investors should review the detailed risk factors and financial statements in the 10-K to understand the potential challenges and opportunities for Main Street Capital Corp.

Key Numbers

• 2023-12-31 — Fiscal Year End (CONFORMED PERIOD OF REPORT)
• 2024-02-23 — Filing Date (FILED AS OF DATE)
• 2023-01-01 — Reporting Period Start Date (Reporting Period)

Key Players & Entities

• Main Street Capital CORP (company) — FILER
• 1300 Post Oak Boulevard (location) — BUSINESS ADDRESS
• Houston (location) — BUSINESS ADDRESS CITY
• TX (location) — BUSINESS ADDRESS STATE
• 77056 (location) — BUSINESS ADDRESS ZIP
• 1934 Act (regulation) — SEC ACT

FAQ

Risk Factors

• Increasing Competition [medium — market]: The company faces increasing competition for investment opportunities.
• Interest Rate Environment [medium — financial]: The company is subject to risks associated with the interest rate environment, affecting cost of capital, net investment income, and investment value.
• Fair Value Uncertainty [medium — financial]: Uncertainty exists regarding the fair value of portfolio investments due to recording at fair value.
• Dependence on Key Personnel [medium — operational]: The company's future success depends on attracting and retaining qualified personnel in a competitive environment.
• Economic Downturns [medium — financial]: Economic recessions or downturns could impair portfolio companies' performance and harm operating results.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K filing.
• 2024-02-23: Filing Date — Date the 10-K report was officially submitted to the SEC.

Glossary

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC), which gives a comprehensive summary of a company's financial performance. (This filing provides the official annual financial and operational overview of Main Street Capital Corp.)

Key Financial Figures

• $0.01 — h Registered Common Stock, par value $0.01 per share MAIN New York Stock Exchange
• $10 million — generally have annual revenues between $10 million and $150 million and our LMM portfolio
• $150 million — annual revenues between $10 million and $150 million and our LMM portfolio investments gener
• $5 million — nvestments generally range in size from $5 million to $100 million. Our private loan ("Pri
• $100 million — erally range in size from $5 million to $100 million. Our private loan ("Private Loan") inve
• $75 million — rally range in size from $10 million to $75 million. Our Middle Market investment strategy
• $1.5 b — nues typically between $150 million and $1.5 billion, and our Middle Market investment
• $3 million — nvestments generally range in size from $3 million to $25 million. We seek to fill the fi
• $25 million — erally range in size from $3 million to $25 million. We seek to fill the financing gap for
• $33.4 m — anager to our net investment income was $33.4 million, $22.3 million and $16.5 million,
• $22.3 million — et investment income was $33.4 million, $22.3 million and $16.5 million, respectively. For th
• $16.5 m — me was $33.4 million, $22.3 million and $16.5 million, respectively. For the years ende
• $22.4 m — the External Investment Manager earned $22.4 million, $21.8 million and $17.7 million
• $21.8 million — nvestment Manager earned $22.4 million, $21.8 million and $17.7 million in base management fe
• $17.7 million — earned $22.4 million, $21.8 million and $17.7 million in base management fees, respectively,

Filing Documents

• main-20231231.htm (10-K) — 13575KB
• main-20231231xex211.htm (EX-21.1) — 3KB
• main-20231231xexx231.htm (EX-23.1) — 2KB
• main-20231231xexx311.htm (EX-31.1) — 10KB
• main-20231231xexx312.htm (EX-31.2) — 10KB
• main-20231231xexx321.htm (EX-32.1) — 5KB
• main-20231231xexx322.htm (EX-32.2) — 5KB
• mainclawbackpolicy12-1x23v.htm (EX-97.1) — 39KB
• ar1940actcodeofethics2_202.htm (EX-99.1) — 123KB
• main-20231231_g1.jpg (GRAPHIC) — 120KB
• 0001396440-24-000055.txt (&nbsp;) — 54759KB
• main-20231231.xsd (EX-101.SCH) — 154KB
• main-20231231_cal.xml (EX-101.CAL) — 71KB
• main-20231231_def.xml (EX-101.DEF) — 900KB
• main-20231231_lab.xml (EX-101.LAB) — 1310KB
• main-20231231_pre.xml (EX-101.PRE) — 932KB
• main-20231231_htm.xml (XML) — 13882KB

Business

Business 2 Item 1A.

Risk Factors

Risk Factors 22 Item 1B. Unresolved Staff Comments 45 Item 1C. C ybersecurity 45 Item 2.

Properties

Properties 46 Item 3.

Legal Proceedings

Legal Proceedings 46 Item 4. Mine Safety Disclosures 46 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 47 Item 6. [Reserved.] 50 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 51 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 66 Item 8. Consolidated Financial Statements and Supplementary Data 68 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 211 Item 9A.

Controls and Procedures

Controls and Procedures 211 Item 9B. Other Information 211 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 213 PART III Item 10. Directors, Executive Officers and Corporate Governance 213 Item 11.

Executive Compensation

Executive Compensation 213 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 214 Item 13. Certain Relationships and Related Transactions, and Director Independence 214 Item 14. Principal Accountant Fees and Services 214 PART IV Item 15. Exhibits and Consolidated Financial Statement Schedules 215

Signatures

Signatures 219 Table of contents CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K contains forward-looking statements regarding the plans and objectives of management for future operations and which relate to future events or our future performance or financial condition. Any such forward-looking statements may involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by any forward-looking statements. Forward-looking statements, which involve assumptions and describe our future plans, strategies and expectations, are generally identifiable by use of the words "may," "will," "should," "expect," "anticipate," "estimate," "believe," "intend" or "project" or the negative of these words or other variations on these words or comparable terminology. These forward-looking statements are based on assumptions that may be incorrect, and we cannot assure you that the projections included in these forward-looking statements will come to pass. Our actual results could differ materially from those expressed or implied by the forward-looking statements as a result of various factors, including, without limitation, the factors discussed in Item 1A entitled "Risk Factors" in this Annual Report on Form 10-K and elsewhere in this Annual Report on Form 10-K and in other filings we may make with the Securities and Exchange Commission ("SEC") from time to time. Other factors that could cause actual results to differ materially include changes in the economy and future changes in laws or regulations and conditions in our operating areas. We have based the forward-looking statements included in this Annual Report on Form 10-K on information available to us on the date of this Annual Report on Form 10-K, and we assume no obligation to update any such forward-looking statements,

Business

Item 1. Business ORGANIZATION Main Street Capital Corporation ("MSCC" or, together with its consolidated subsidiaries, "Main Street" or the "Company") is a principal investment firm primarily focused on providing customized debt and equity financing to lower middle market ("LMM") companies and debt capital to middle market ("Middle Market") companies. Main Street's portfolio investments are typically made to support management buyouts, recapitalizations, growth financings, refinancings and acquisitions of companies that operate in a variety of industry sectors. Main Street seeks to partner with entrepreneurs, business owners and management teams and generally provides "one-stop" financing alternatives within its LMM investment strategy. Main Street invests primarily in secured debt investments, equity investments, warrants and other securities of LMM companies based in the United States and in secured debt investments of Middle Market companies generally headquartered in the United States. MSCC was formed in March 2007 to operate as an internally managed business development company ("BDC") under the Investment Company Act of 1940, as amended (the "1940 Act"). Because MSCC is internally managed, all of the executive officers and other employees are employed by MSCC. Therefore, MSCC does not pay any external investment advisory fees, but instead directly incurs the operating costs associated with employing investment and portfolio management professionals. MSCC wholly owns several investment funds, including Main Street Mezzanine Fund, LP ("MSMF") and Main Street Capital III, LP ("MSC III" and, together with MSMF, the "Funds"), and each of their general partners. The Funds are each licensed as a Small Business Investment Company ("SBIC") by the United States Small Business Administration ("SBA"). MSC Adviser I, LLC (the "External Investment Manager") was formed in November 2013 as a wholly-owned subsidiary of Main Street to provide investment management and othe

View Full Filing

View this 10-K filing on SEC EDGAR