Main Street Capital Corporation has recently released its 10-K report for the fiscal year ended December 31, 2024. The company, founded in 2007 and based in Houston, Texas, is a business development company that specializes in providing equity and debt capital to lower middle market companies. Main Street Capital Corporation prefers to invest in a wide range of industries, including air freight and logistics, consumer services, energy, technology, and transportation. The company typically invests in lower middle market companies with annual revenues between $10 million and $150 million and EBITDA ranging between $3 million and $20 million.
In the year ended December 31, 2024, Main Street Capital Corporation reported total investment income of $541.0 million, representing an 8% increase from the prior year. The increase in interest income was primarily due to higher average levels of income-producing investment portfolio debt investments and increases in weighted-average interest rates on floating rate debt investments. The company also saw a 56% increase in fee income related to increased investment activity and the refinancing and prepayment of debt investments.
Total expenses for the same period were $186.0 million, a 15% increase from the prior year. The increase in expenses was primarily attributable to higher cash compensation, general and administrative expenses, interest expenses, and share-based compensation expenses. Despite the increase in expenses, net investment income for the year increased by 5% to $355.1 million.
Main Street Capital Corporation reported a net increase in net assets resulting from operations of $508.1 million for the year ended December 31, 2024, representing a 19% increase from the prior year. The company's distributable net investment income also increased by 5% to $375.0 million. The net realized gain on investments for the year was $46.0 million, compared to a net loss of $120.5 million in the prior year.
The company also saw a net unrealized appreciation of $137.7 million in 2024, compared to $232.6 million in 2023. Additionally, Main Street Capital Corporation realized a net increase in cash and cash equivalents of $18.2 million for the year ended December 31, 2024, with $87.1 million of cash used in operating activities and $105.3 million of cash provided by financing activities.
As a result of these announcements, the company's shares have moved 2.1% on the market, and are now trading at a price of $60.16. For the full picture, make sure to review Main Street Capital's 10-K report.
