MSC Income Fund, Inc.

Greetings and welcome to the MSC Income Fund Fourth Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow a formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Zach Vaughn. Please go ahead.

Thank you, Operator, and good morning, everyone. Thank you for joining us for MSC Income Fund's fourth quarter 2025 earnings conference call. Joining me with prepared comments are Dwayne Hijak, Chief Executive Officer, David Magdolf, President and Chief Investment Officer, Nick Meserve, Managing Director and Head of the Private Credit Investment Group, and Corey Gilbert, Chief Financial Officer. MSC Income Fund issued a press release yesterday afternoon that details the fund's fourth quarter and full year financial and operating results. This document is available in the investor relations section of the fund's website at mscincomefund.com. The replay of today's call will be available beginning an hour after the completion of the call and will remain available until March 6th. Information on how to access the replay was included in yesterday's earnings release. I also advise you that this conference call is being broadcast live to the internet and can be accessed on the fund's homepage. Please note that information reported on this call speaks only as of today. February 27, 2026, and therefore you are advised that time-sensitive information may no longer be accurate at the time of any replay listening or transcript reading. Today's call may contain forward-looking statements. Any of these forward-looking statements can be identified by the use of words such as anticipates, believes, expects, intends, will, should, may, or similar expressions. These statements are based on management's estimates, assumptions, and projections as of the date of this call, and there are no guarantees of future performance. Actual results may differ materially from the results expressed or implied in these statements as a result of risks, uncertainties, and other factors, including, but not limited to, the factors set forth in the fund's filings with the Securities and Exchange Commission, which can be found on the fund's website or at sec.gov. The SEC Income Fund assumes no obligation to update any of these statements unless required by law. During today's call, management will discuss non-GAAP financial measures, including Adjusted Net Investment Income, or ANII. ANII is net investment income, or NII, as determined in accordance with U.S. generally accepted accounting principles, or GAAP, excluding the impact of the capital gains incentive fee. The MSC Income Fund believes presenting ANII and the related per share amount is useful and appropriate supplemental disclosure for analyzing the fund's financial performance since the calculation of the capital gains incentive fee is based on realized gains and losses and unrealized fair value appreciation and depreciation. none of which are included in NII. These refer to yesterday's press release for reconciliation of these non-GAAP measures to the most directly comparable GAAP financial measures. Two additional key performance indicators that management will be discussing on this call are net asset value, or NAV, and return on equity, or ROE. NAV is defined as total assets minus total liabilities and is also reported on a per share basis. The Missing Income Fund defines ROE as the net increase in net assets resulting from operations divided by average quarterly NAV. As a reminder, the fund effectuated a two-for-one reverse stock split on December 16, 2024. All per-share amounts, share data, related information discussed on this call today reflect the effect of the reverse stock split. Please note that certain information discussed on this call, including information related to portfolio companies, was derived from third-party sources and has not been independently verified. Now I'll turn the call over to MSC Income Fund CEO, Dwayne Ejok.

Thanks, Zach. Good morning, everyone, and thank you for joining us. We appreciate your participation on this morning's call. We hope that everyone's doing well. On today's call, we will provide you with the fund's key quarterly updates. We're also providing a few updates on the fund's performance for the full year. Following our comments, we'll be happy to take your questions. We're very pleased with the fund's performance in the fourth quarter, which resulted in a return on equity of 16.3%, favorable adjusted net investment income per share, and a significant increase in the fair value of the fund's investments, including the benefits of net realized gains in both the fund's private loan and lower middle market portfolios, which resulted in a significant increase in NAV per share. The fund also produced favorable investment activity in the fourth quarter, which generated meaningful growth of its investment portfolio. After the fund's positive performance in the first three quarters of 2025, the fund's strong performance in the fourth quarter resulted in an ROE of 12.5% for the full year and pre-tax adjusted NII per share in excess of the fund's total dividends paid. Based upon the quality of the fund's existing investment portfolio, combined with the fund's expanded regulatory leverage capacity, which became effective at the end of January, 2026, and which provides the fund significant capacity to add additional debt to fund the future growth of its investment portfolio, and the current attractive pipeline of new private loan investment opportunities, we remain excited about the future expectations for the fund. We are also confident that the fund's sole focus on its private loan strategy with respect to new portfolio company investments and the growth of recurring interest income from such debt investments, together with the fund's contractual future-based management fee reductions as the fund's lower middle market investments decrease as a percentage of its total investment portfolio, will strengthen the fund's ability to deliver attractive recurring dividends and favorable total returns to the fund shareholders in the future. Fund-generated adjusted net investment income, or ANII, which is NII excluding the impact of the capital gains incentive fee of $0.34 per share on the quarter, or $0.37 per share on a pre-tax ANII basis. These results, combined with our positive outlook for the future, resulted in our most recent dividend announcements, which I will discuss in more detail later. The fund finished the quarter with NAV per share of $15.85, a $0.31 increase from the prior quarter, and we continue to be pleased with the performance of the fund's investment portfolio, including both the private loan and lower middle market portfolios. Corey will discuss our financial results in more detail. Consistent with our guidance last quarter, the fund's private loan investment activity in the fourth quarter returned to our expected normal level of quarterly activity, and resulted in a net increase in private loan investments of $57 million. The fund remains highly focused on executing new investment opportunities that are consistent with its historical private loan investments as we work to grow the fund's investment portfolio. Consistent with my comments last quarter, we're pleased that the fund successfully exited two private loan portfolio equity investments in the fourth quarter, with these activities resulting in total realized gains of $16 million, or 34 cents per share, both at meaningful premiums to the fund's third quarter fair values. The fund is also focused on maximizing the benefits from its legacy lower middle market investment portfolio and recycling this existing capital into private loan investments as investments are exited or repaid. As part of these activities, the fund fully exited its investments in one high-performing lower middle market portfolio company, Mystic Logistics, in the first quarter, resulting in a $6 million realized gain. We also continue to see significant interest from potential buyers in several of the fund's lower middle market portfolio companies, which we expect will lead to additional favorable realizations over the next few quarters. The fund also continues to benefit from attractive follow-on investments in existing lower middle market portfolio companies, which we believe are beneficial to both current investment income and future value creation. Nick and David will cover the fund's investment activity in more detail. Based upon the fund's results for the quarter and its future outlook, Earlier this week, the fund's Board of Directors declared a regular quarterly dividend of $0.35 per share and a supplemental dividend of $0.01 per share, both of which are payable on May 1, 2026 to shareholders of record as of March 31, 2026. Going forward, the fund expects to continue to maintain a dividend policy that provides for its total quarterly dividends, which are expected to include a regular quarterly dividend and a supplemental dividend. to be set at a level generally consistent with the fund's pre-tax ANII per share. Based upon the total dividends payable on May 1st and the current stock price, the fund is currently providing its shareholders a dividend yield of 11.5%. As we look forward to the fund's near-term investment activities, as of today, I would characterize the private loan investment pipeline as above average. We're excited about the current pipeline of new investment opportunities and follow-on investment opportunities in existing portfolio companies. and we remain confident in our ability to generate attractive new private loan investment opportunities and grow the fund's investment portfolio over the next several quarters. My last few comments are reminders of the continued support the fund has received from Main Street Capital Corporation. Main Street's wholly owned subsidiary was appointed the sole advisor to the fund in October 2020. Main Street has purchased over $27 million of the fund's common stock. In junction with the fund's equity offering in January 2025, Main Street entered into an open market share purchase plan to purchase up to $20 million of the fund's shares for a 12-month period beginning in March 2025, at times when the fund's shares are trading at predetermined levels below the fund's NAV per share, with the terms of such plan being identical to the fund's open market share repurchase plan to purchase up to $65 million of the fund's shares, and with any open market share purchases being split by the fund and Main Street on a pro-rata basis. Through today, Main Street has purchased over $5 million, and the fund has repurchased over $18 million under these plans. We believe Main Street's significant equity ownership in the fund and its participation in the post-listing share purchase plan demonstrates Main Street's commitment to the future success of the fund and reinforces Main Street's confidence in the strength and quality of the fund's investment portfolio and investment strategy. With that, I will turn the call over to Nick.