MSC Income Fund, Inc.

Greetings and welcome to the MSC Income Fund First Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the 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 first quarter 2026 earnings conference call. Joining me today with prepared comments are Duane Hijak, Chief Executive Officer, David Magdahl, President and Chief Investment Officer, Nick Meserve, Managing Director and Head of Private Credit Investment Group, and Corey Gilbert, Chief Financial Officer. MSC Income Fund issued a press release yesterday afternoon that details the fund's first quarter financial and operating results. This document is available on 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 May 15th. 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 through the Internet and can be accessed on the fund's homepage. Please note that information reported on this call speaks only as of today, May 8, 2026, and therefore, you are advised that time-sensitive information may no longer be accurate at the time of any replay listing or transcript reading. This call may contain forward-looking statements. Many 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 MSC 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, and ANII before taxes. ANII is net investment income, or NII, as determined in accordance with U.S. Generally Accepted Accounting Principles, or GAAP, excluding the impact of capital gains incentive fee. ANII before taxes is NII, as determined in accordance with GAAP, excluding the impact of any tax expenses included in NII and the capital gains incentive fee. MSC Income believes that presenting ANII and ANII before taxes and the related per share amounts 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 the realized gains and losses and unrealized fair value appreciation and depreciation, none of which are included in the NII, and tax expenses included in NII may include excise tax expense, which is not solely attributable to NII, and deferred taxes, which are not payable in the current period. Please refer to yesterday's press release reconciliation of these non-GAAP measures to the most directly comparable GAAP financial measures. An additional key financial metric that management will be discussing on this call is net asset value or NAV. NAV is defined as total assets minus total liabilities and is also reported on a per share basis. 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. And now I'll turn the call over to MSC Income Fund CEO, Duane Hijak.

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, after which we'll be happy to take your questions. We are pleased with the fund's performance in the first quarter, given the backdrop of significant economic and geopolitical uncertainties. Despite these ongoing uncertainties, We're seeing an improved lending environment and increased opportunities in the fund's private loan investment strategy, and we believe the fund is well-positioned to capitalize on and generate attractive returns on those opportunities. Based upon the quality of the fund's existing investment portfolio, together with a favorable liquidity position and expanded regulatory leverage capacity, which became effective at the end of January 2026, and the current investment pipeline, we remain excited about our 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's shareholders in the future. The fund generated adjusted net investment income, or ANII, of $0.34 per share in the quarter, or $0.36 per share on an ANII before taxes 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 an NAV per share of $15.87, a $0.02 increase from the prior quarter, and we continue to be pleased with the performance of the fund's investment portfolio. where we will discuss our financial results in more detail. The fund's private loan investment activity in the first quarter was slower than our expected normal quarterly activity, primarily due to lower overall levels of private equity industry investment activity, and resulted in a net increase in private loan investments of $17 million. Despite this lower investment activity, 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. The fund is also focused on maximizing the benefits from its legacy lower middle market investment portfolio and eventually recycling this capital into private loan investments as investments are exited or repaid. As part of this focus, the fund 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 on those existing investments. 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 favorable realizations over the next few quarters. Nick and David will cover the fund's investment activity in more detail. Earlier this week, the fund announced a change to its regular dividend payment frequency from quarterly to monthly beginning in July, 2026, which we believe is more shareholder friendly and is responsive to specific shareholder feedback. Based upon the fund's results for the first quarter, the fund's board of directors declared regular monthly dividends for the third quarter of 11 cents per share, payable in each of July, August, and September, and a supplemental dividend of 3 cents per share, payable in September, resulting in total dividends payable in the third quarter of 36 cents per share, consistent with the fund's total quarterly dividends for each quarter since the fund's listing in January 2025. Going forward, the fund expects to continue to maintain a dividend policy that provides for its total quarterly dividends, which are expected to include regular monthly dividends and a supplemental dividend, to be set at a level generally consistent with the funds A and II before taxes per share. Based upon the total dividends payable for the third quarter and the current stock price, the fund is currently providing its shareholders a dividend yield of 11%. As we look forward to the fund's near-term investment activities, as of today I would characterize the private loan investment pipeline as average. We are 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. Since Main Street's wholly-owned subsidiary was appointed the sole advisor to the fund in October 2020, Main Street has purchased over $30 million of the fund's common stock. In conjunction with the fund's equity offering in January 2025, Main Street entered into an open market share purchase plan to purchase fund shares at times when the fund shares were 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, and with any share purchases being split by the fund and Main Street on a pro-rata basis. Under these plans, each of which expired at the end of March, Main Street purchased over $8 million and the fund repurchased over $27 million of the fund's stock. As an additional show of support for the fund, Main Street, through its wholly owned investment advisor, voluntarily agreed to permanently waive $1 million of the incentives earned for the first quarter to support the fund's resulting ANII before taxes per share. We believe these actions demonstrate the fund's commitment to the future success of the fund and reinforce 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.