MSC Income Fund Inc (MSIF) 2026 Q1 法說會逐字稿

Greetings, and welcome to the MSC Income Fund first quarter earnings conference call. (Operator Instructions)

各位好，歡迎參加 MSC Income Fund 第一季財報電話會議。（接線員指示）

As a reminder, this conference is being recorded. It is now my pleasure to introduce Zach Vaughan. Please go ahead.

提醒各位，本次會議將被錄音。現在很榮幸為各位介紹 Zach Vaughan。請開始。

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 Dwayne Hyzak, Chief Executive Officer; David Magdol, President and Chief Investment Officer; Nick Meserve, Managing Director and Head of Private Credit Investment Group; and Cory Gilbert, Chief Financial Officer.

謝謝接線員，各位早安。感謝各位參加 MSC Income Fund 2026 年第一季財報電話會議。今天與我一同進行預先準備發言的有：執行長 Dwayne Hyzak；總裁兼投資長 David Magdol；董事總經理暨私募信貸投資團隊主管 Nick Meserve；以及財務長 Cory Gilbert。

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. A replay of today's call will be available beginning an hour after the completion of the call and will remain available until May 15. Information on how to access the replay was included in yesterday's earnings release. We 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 listening or transcript reading.

MSC Income Fund 昨天下午發布新聞稿，詳述本基金第一季的財務與營運成果。該文件可於本基金網站 mscincomefund.com 的投資人關係專區取得。今日電話會議結束一小時後將提供重播，並將持續提供至 5 月 15 日。如何收聽重播的資訊已包含於昨日的財報新聞稿中。我們也提醒各位，本次電話會議正透過網際網路進行即時直播，可於本基金首頁收聽。請注意，本次電話會議所揭露之資訊僅截至今日（2026 年 5 月 8 日）為止，因此在日後收聽重播或閱讀逐字稿時，部分具時效性的資訊可能已不再準確。

Today's 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.

今日電話會議可能包含前瞻性陳述。許多前瞻性陳述可透過使用「預期」、「相信」、「預估」、「打算」、「將」、「應」、「可能」或類似用語加以辨識。這些陳述係基於管理階層截至本次電話會議日期之估計、假設與預測，且不保證未來績效。由於風險、不確定性及其他因素，實際結果可能與這些陳述所明示或暗示之結果有重大差異，包括但不限於本基金向美國證券交易委員會（SEC）提交之文件中所載之因素；相關文件可於本基金網站或 sec.gov 查閱。

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.

除非法律要求，MSC Income Fund 不承擔更新任何此等陳述之義務。在今日電話會議中，管理階層將討論非 GAAP 財務衡量指標，包括調整後淨投資收益（adjusted net investment income，或 ANII）以及稅前 ANII。ANII 係依美國一般公認會計原則（GAAP）所決定之淨投資收益（net investment income，或 NII），排除資本利得績效費用（capital gains incentive fee）之影響。稅前 ANII 係依 GAAP 所決定之 NII，排除 NII 中所包含之任何稅費以及資本利得績效費用之影響。

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 for a reconciliation of these non-GAAP measures to the most directly comparable GAAP financial measures.

MSC Income 認為，揭露 ANII、稅前 ANII 及其每股金額，作為分析本基金財務表現之補充揭露，具有實用性且適切，因為資本利得績效費用之計算係以已實現損益及未實現公允價值增減為基礎，而上述項目均未包含於 NII 中。此外，NII 中所包含之稅費可能包括消費稅（excise tax）費用，其並非僅可歸因於 NII，以及遞延所得稅，其於當期並不需支付。請參閱昨日新聞稿，以取得這些非 GAAP 指標與最直接可比較之 GAAP 財務指標之調節表。

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.

管理階層在本次電話會議中將討論的另一項關鍵財務指標為淨資產價值（net asset value，或 NAV）。NAV 定義為總資產減總負債，並同時以每股基礎揭露。請注意，本次電話會議中討論之部分資訊（包括與投資組合公司相關之資訊）係取自第三方來源，且未經獨立查證。

And now, I'll turn the call over to MSC Income Fund's CEO, Dwayne Hyzak.

接下來，我將把電話會議交給 MSC Income Fund 執行長 Dwayne Hyzak。

Thanks, Zach. Good morning, everyone, and thank you for joining us. We appreciate your participation on this morning's call. We hope that everyone is doing well.

謝謝你，Zach。各位早安，感謝各位加入。我們感謝各位參與今天早上的電話會議。希望大家一切都好。

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.

在今天的電話會議中，我們將向各位提供本基金本季的重點更新，之後很樂意回答各位的問題。鑑於重大的經濟與地緣政治不確定性背景，我們對本基金第一季的表現感到滿意。儘管這些不確定性仍在持續，我們看到放款環境有所改善，且本基金私募貸款投資策略的機會增加；我們相信本基金已具備良好條件把握這些機會並創造具吸引力的報酬。

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 of 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 base management fee reductions as the fund's lower middle market investments decrease as a percentage of its total investment portfolio, which strengthen the fund's ability to deliver attractive recurring dividends and favorable total returns to the fund's shareholders in the future.

基於本基金既有投資組合的品質、良好的流動性部位、以及擴增的監管槓桿能力（已於 2026 年 1 月底生效）與目前的投資案源，我們對本基金未來展望仍感到振奮。我們也對本基金在新投資組合公司投資方面專注於私募貸款策略、以及此類債務投資帶來的經常性利息收入成長充滿信心；同時，隨著本基金較低中型市場（lower middle market）投資占其總投資組合的比例下降，本基金依合約約定之未來基本管理費（base management fee）調降亦將生效，進一步強化本基金未來為股東提供具吸引力的經常性股利與良好總報酬的能力。

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.

本基金本季每股調整後淨投資收益（ANII）為 0.34 美元；以稅前 ANII 計算則為每股 0.36 美元。這些結果，加上我們對未來的正向展望，促成了我們最近的股利公告，我稍後將更詳細說明。

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. Cory 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.

本基金本季每股 NAV 為 15.87 美元，較前一季增加 0.02 美元；我們持續對本基金投資組合的表現感到滿意。Cory 將更詳細說明我們的財務結果。本基金第一季的私募貸款投資活動低於我們預期的正常季度水準，主要係因私募股權產業整體投資活動水準較低，並使私募貸款投資淨增加 1,700 萬美元。

Despite this slower 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.

儘管投資活動較慢，本基金仍高度專注於執行符合其歷史私募貸款投資特性的新增投資機會，以推動本基金投資組合成長。本基金亦專注於最大化其既有較低中型市場投資組合的效益，並在投資退出或償還後，最終將該等資本再投入至私募貸款投資。

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.

作為此一重點的一部分，本基金持續受益於對既有較低中型市場投資組合公司的具吸引力後續投資（follow-on investments）；我們相信這些投資同時有利於目前的投資收益，以及對既有投資在未來創造價值。我們也持續看到多家本基金較低中型市場投資組合公司受到潛在買方的高度興趣，預期將在未來幾季帶來有利的實現（realizations）。Nick 與 David 將更詳細說明本基金的投資活動。

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 $0.11 per share payable in each of July, August and September and a supplemental dividend of $0.03 per share payable in September, resulting in total dividends payable in the third quarter of $0.36 per share, consistent with the fund's total quarterly dividends for each quarter since the fund's listing in January 2025.

本週稍早，本基金宣布自 2026 年 7 月起，將例行股利發放頻率由按季改為按月；我們認為此舉更有利於股東，並回應特定股東的意見回饋。基於本基金第一季的結果，本基金董事會宣告第三季每月例行股利為每股 0.11 美元，分別於 7 月、8 月與 9 月支付，並宣告每股 0.03 美元的補充股利（supplemental dividend）於 9 月支付，使第三季合計應付股利為每股 0.36 美元，與本基金自 2025 年 1 月上市以來每一季的季度總股利一致。

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 fund's ANII 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%.

展望未來，本基金預期將持續維持一項股利政策，以提供其季度總股利；該等季度總股利預期將包含每月例行股利與補充股利，而補充股利水準通常將與本基金每股稅前 ANII 大致一致。以第三季應付股利總額及目前股價計算，本基金目前為股東提供 11% 的股利殖利率。

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.

就本基金近期投資活動而言，截至今日，我會將私募貸款投資案源（pipeline）形容為一般水準。我們對目前新增投資機會與對既有投資組合公司的後續投資機會案源感到振奮，並持續對我們在未來幾季創造具吸引力的新私募貸款投資機會、以及擴大本基金投資組合的能力充滿信心。

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 adviser 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.

我最後幾點說明是提醒各位，本基金持續獲得 Main Street Capital Corporation 的支持。自 Main Street 的全資子公司於 2020 年 10 月被任命為本基金唯一顧問（sole adviser）以來，Main Street 已購買超過 3,000 萬美元的本基金普通股。配合本基金於 2025 年 1 月的股權發行，Main Street 亦簽訂公開市場股份購買計畫（open market share purchase plan），於本基金股價在特定時點低於本基金每股 NAV 且達到預先設定水準時買進本基金股份；該計畫條款與本基金的公開市場股份回購計畫（open market share repurchase plan）完全相同，且任何股份買進將由本基金與 Main Street 依比例（pro rata basis）分攤。

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 stock. As an additional show of support for the fund, Main Street through its wholly owned investment adviser voluntarily agreed to permanently waive $1 million of the incentive fees 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.

依據這些計畫（均於三月底到期），Main Street 買入超過 800 萬美元，而本基金回購超過 2,700 萬美元的基金股票。為進一步展現對本基金的支持，Main Street 透過其全資投資顧問自願同意永久免除第一季所賺取之 100 萬美元績效報酬（incentive fees），以支持本基金因此產生之每股稅前 ANII。我們相信，這些行動展現本基金對未來成功的承諾，並強化 Main Street 對本基金投資組合與投資策略之強度與品質的信心。

With that, I will turn the call over to Nick.

接下來，我把電話會議交給 Nick。

Thanks, Dwayne, and good morning, everyone. We are pleased with the performance of the fund's private loan investment portfolio in the first quarter, which represents the largest portion of the fund's investment portfolio and which, as a reminder, is now the fund's sole focus with respect to new portfolio company investments. The overall operating performance for most of the fund's private loan portfolio companies continued to be positive, which contributed to fund's first quarter financial results.

謝謝你，Dwayne，各位早安。我們對本基金第一季私募貸款投資組合的表現感到滿意；該組合為本基金投資組合中占比最大的一部分，並且提醒各位，現階段就新增投資組合公司投資而言，私募貸款已是本基金唯一的重點。基金私募貸款投資組合公司中多數的整體營運表現持續正向，進而帶動本基金第一季的財務結果。

The fund benefited from a realized gain of $3.1 million from the exit of one of its equity investments in a private loan portfolio company in the first quarter, which illustrates for the second quarter in a row the opportunity that can be available from these equity co-investments. Given the current economic uncertainty that exists across certain parts of the economy, we are diligently working to stay in front of the fund's portfolio companies to understand their exposures to changing environments. To date, based upon these ever-evolving discussions, we are comfortable with the future outlook for the portfolio.

本基金於第一季因退出其在一家私募貸款投資組合公司之股權投資而實現 310 萬美元的已實現收益，這也連續第二季顯示此類股權共同投資可能帶來的機會。鑑於目前經濟在部分領域存在不確定性，我們正勤勉地與本基金投資組合公司保持密切互動，以了解其對環境變化的曝險。迄今為止，基於這些持續演變的討論，我們對投資組合的未來展望感到放心。

At quarter end, 93% of the private loan portfolio was comprised of secured debt investments, over 99% of which were first lien and 96% of which were floating rate loans. Portfolio had an attractive weighted average yield of 10.5%, which was down 20 basis points from the end of 2025, as a result of decreases in the SOFR rates for these floating rate debt investments and tighter spreads on new investments over the past year.

截至季末，私募貸款投資組合中 93% 為擔保債務投資，其中超過 99% 為第一順位擔保（first lien），且其中 96% 為浮動利率貸款。投資組合的加權平均收益率為 10.5%，較 2025 年底下降 20 個基點，主要係因這些浮動利率債務投資的 SOFR 利率下降，以及過去一年新投資利差收窄所致。

During the first quarter, the fund invested $55 million in the private loan portfolio, which after aggregate investment activity resulted in a net increase of $17 million. Fund ended the first quarter investments in 80 private loan portfolio companies, totaling $823 million of fair value and representing 60% of the fund's total investment portfolio at fair value.

第一季期間，本基金於私募貸款投資組合投資 5,500 萬美元；在彙總投資活動後，淨增加 1,700 萬美元。本基金於第一季末投資於 80 家私募貸款投資組合公司，公允價值合計 8.23 億美元，占本基金按公允價值計之總投資組合的 60%。

As Dwayne mentioned, our private loan pipeline is average. While we began the year seeing increased private equity activity, the current backdrop of economic and geopolitical uncertainties has slowed the pace of new deal processes that were launched in the second half of the first quarter. While the volume of deal flow has softened, we do believe the overall spread environment has widened, and we expect overall terms to be more lender-friendly the rest of the year, and we continue to see what we believe are attractive opportunities.

如 Dwayne 所提及，我們的私募貸款案源管線屬於平均水準。雖然年初我們看到私募股權活動增加，但目前經濟與地緣政治不確定性的背景，使得第一季後半段啟動的新交易流程步調放緩。儘管交易流量有所轉弱，我們確實認為整體利差環境已擴大，並預期今年其餘時間整體條款將更偏向放款人，同時我們仍持續看到我們認為具吸引力的機會。

With that, I'll turn the call over to David.

接下來，我把電話會議交給 David。

Thanks, Nick, and good morning, everyone. In addition to the private loan portfolio that Nick covered, the fund also maintains a portfolio of legacy lower middle market investments. As a reminder, these are combined debt and equity investments in smaller privately held companies, whereby the fund partnered directly with the company's existing business owners and management team through co-investments at Main Street Capital Corporation utilizing the customized one-stop debt and equity financing solutions provided in Main Street's lower middle market investment strategy.

謝謝你，Nick，各位早安。除了 Nick 所說明的私募貸款投資組合外，本基金亦維持一個既有的低中型市場（lower middle market）投資組合。提醒各位，這些投資為對較小型非上市公司的債務與股權合併投資；本基金透過與 Main Street Capital Corporation 的共同投資，直接與該公司的既有業主及管理團隊合作，並運用 Main Street 低中型市場投資策略所提供的客製化一站式債務與股權融資解決方案。

After the listing of the fund's shares on New York Stock Exchange in January 2025, the fund no longer makes investments in new lower middle market portfolio companies, but continues to participate in follow-on investments in its existing lower middle market portfolio companies. We are pleased to report that the overall operating performance for the fund's lower middle market portfolio companies continues to be positive, which contributed to the fund's first quarter results.

在本基金股份於 2025 年 1 月於紐約證券交易所上市後，本基金不再對新的低中型市場投資組合公司進行投資，但仍持續參與其既有低中型市場投資組合公司的後續投資。我們很高興報告，本基金低中型市場投資組合公司的整體營運表現持續正向，並對本基金第一季結果有所貢獻。

Despite the continued heightened level of uncertainty in the overall economy, we remain confident in the ability of these lower middle market portfolio companies to continue to successfully navigate the current environment. During the first quarter, the fund completed $19 million in total lower middle market follow-on investments, which after aggregate investment activity resulted in a net increase in the lower middle market portfolio of $15 million.

儘管整體經濟的不確定性仍處於較高水準，我們仍對這些低中型市場投資組合公司持續成功因應當前環境的能力保持信心。第一季期間，本基金完成低中型市場後續投資合計 1,900 萬美元；在彙總投資活動後，低中型市場投資組合淨增加 1,500 萬美元。

At quarter end, the lower middle market portfolio had investments in 55 portfolio companies totaling $508 million of fair value and representing 37% of the fund's total investment portfolio. The lower middle market portfolio at fair value is comprised of 54% debt investments and 46% equity investments, 99% of these debt investments were first lien loans, and they had an attractive weighted average yield of 12.6%. The fund had equity ownership positions in all of its lower middle market portfolio companies, representing an average 8% ownership position.

截至季末，低中型市場投資組合投資於 55 家投資組合公司，公允價值合計 5.08 億美元，占本基金總投資組合的 37%。按公允價值計，低中型市場投資組合由 54% 的債務投資與 46% 的股權投資構成；其中 99% 的債務投資為第一順位擔保貸款，且其加權平均收益率為 12.6%，具吸引力。本基金在其所有低中型市場投資組合公司均持有股權，平均持股比例為 8%。

We expect that these investments will continue to provide significant benefits in the future, including the opportunity for continued dividend income, fair value appreciation and eventually meaningful realized gains upon the future exit of these lower middle market investments. As Dwayne mentioned, we continue to see interest from potential buyers in some of the fund's lower middle market portfolio companies, which we expect will lead to favorable outcomes over the next few quarters.

我們預期這些投資未來將持續帶來顯著效益，包括持續股利收入的機會、公允價值上升，以及在未來退出這些低中型市場投資時最終實現可觀的已實現收益。如 Dwayne 所提及，我們持續看到潛在買方對本基金部分低中型市場投資組合公司有興趣，我們預期這將在未來幾季帶來有利結果。

Turning to the fund's total investment portfolio as of March 31, the fund continued to maintain a highly diversified portfolio with investments in 143 portfolio companies spanning across numerous industries and end markets. Fund's largest portfolio companies represented less than 4% of the total investment portfolio at fair value at quarter end and less than 4% of the total investment income for the trailing 12-month period, with most portfolio investments representing less than 1% of the fund's income and assets.

談到截至 3 月 31 日的本基金總投資組合，本基金持續維持高度分散的投資組合，投資於 143 家投資組合公司，涵蓋眾多產業與終端市場。截至季末，本基金最大之投資組合公司按公允價值計占總投資組合比例低於 4%，且在過去 12 個月期間占總投資收入亦低於 4%；多數投資組合投資占本基金收入與資產的比例均低於 1%。

With that, I will turn the call over to Cory.

接下來，我把電話會議交給 Cory。

Thank you, David, and thank you to everyone who has joined us today. The fund's total investment income for the first quarter was $34.1 million, an increase of $0.9 million or 2.6% from the first quarter of 2025 and a decrease of $0.8 million or 2.4% from the fourth quarter. Interest income for the first quarter increased by $2 million from a year ago and by $0.5 million from the fourth quarter. The increase in interest income from the prior year and from the fourth quarter was principally attributable to higher average levels of income-producing investment portfolio debt investments, partially offset by a decrease in interest rates, primarily resulting from decreases in benchmark index rates on floating rate debt investments.

謝謝你，David，也感謝今天加入我們的各位。本基金第一季總投資收入為 3,410 萬美元，較 2025 年第一季增加 90 萬美元（2.6%），較第四季減少 80 萬美元（2.4%）。第一季利息收入較去年同期增加 200 萬美元，較第四季增加 50 萬美元。相較去年同期與第四季，利息收入的增加主要歸因於可產生收益之投資組合債務投資的平均水準較高，但部分被利率下降所抵銷；利率下降主要源自浮動利率債務投資之基準指數利率下滑。

Fee income for the first quarter increased by $0.5 million from a year ago and by $0.4 million from the fourth quarter. The increase in fee income from both the prior year and the fourth quarter was primarily due to an increase in fees related to increased investment activity.

第一季費用收入較去年同期增加 50 萬美元，較第四季增加 40 萬美元。相較去年同期與第四季，費用收入增加主要係因投資活動增加而帶動相關費用上升。

Dividend income for the first quarter decreased by $1.6 million from a year ago and by $1.8 million from the fourth quarter. The decrease in dividend income from both the prior year and the fourth quarter was primarily due to a decrease in dividends from the lower middle market equity investments and included decreases related to certain nonrecurring items of $0.2 million from a year ago and $1.2 million from the fourth quarter.

第一季股利收入較去年同期減少 160 萬美元，較第四季減少 180 萬美元。相較去年同期與第四季，股利收入下降主要係因低中型市場股權投資的股利減少，並包含與若干一次性項目相關的減少：較去年同期減少 20 萬美元，較第四季減少 120 萬美元。

As we previously discussed, dividend income will fluctuate quarter-to-quarter based on the underlying performance, cash flows and capital allocation activities of the fund's portfolio companies and certain nonrecurring items. The first quarter included income considered less consistent or nonrecurring in nature of $0.6 million.

如我們先前所討論，股利收入將依本基金投資組合公司的基本表現、現金流與資本配置活動，以及若干一次性項目而呈現季度間波動。第一季包含被視為較不穩定或屬一次性性質的收入 60 萬美元。

As we previously discussed, these nonrecurring items vary quarter-to-quarter and can include dividend income from equity investments and interest and fee incomes from accelerated prepayment, repricing and other activity related to debt investments. These items were $0.2 million lower than the first quarter of 2025 and $1.3 million lower than the fourth quarter and $0.6 million lower than the average of the prior four quarters.

如我們先前所討論，這些一次性項目會隨季度而變動，可能包括股權投資的股利收入，以及因債務投資提前償還、重新定價（repricing）及其他活動所產生的利息與費用收入。這些項目較 2025 年第一季少 20 萬美元，較第四季少 130 萬美元，且較前四季平均少 60 萬美元。

The fund's expenses net of waivers for the first quarter increased by $0.4 million from the first quarter of 2025 and decreased by $3.7 million from the fourth quarter. The increase from prior year was principally attributable to increases of $0.7 million in interest expense, $0.3 million in base management fee and $0.1 million in the incentive fee, net of waivers, partially offset by a decrease of $0.6 million in the capital gains incentive fee accrual.

本基金第一季在扣除減免（waivers）後的費用，較 2025 年第一季增加 40 萬美元，較第四季減少 370 萬美元。較去年同期增加主要歸因於利息費用增加 70 萬美元、基本管理費增加 30 萬美元，以及（扣除減免後）績效報酬增加 10 萬美元；部分被資本利得績效報酬應計數減少 60 萬美元所抵銷。

The increase in interest expense from a year ago was largely driven by an increase in average borrowings outstanding used to fund a portion of the growth of the fund's investment portfolio, partially offset by a decreased weighted average interest rate on the credit facilities due to decreases in benchmark index rates and decrease to the applicable spread resulting from the amendment on the SPV Facility in March of 2025.

利息費用較去年同期增加，主要係因為用以支應本基金投資組合部分成長的平均未償借款增加；但部分被信貸融資工具的加權平均利率下降所抵銷，該下降係因基準指數利率下滑，以及 2025 年 3 月對 SPV 融資工具（SPV Facility）修訂所導致之適用利差下降。

The decrease in base management fees from a year ago is primarily the result of increased average total assets, partially offset by the full quarter benefit of the lower base management fee percentage under the amended advisory agreement compared to a partial quarter benefit in the first quarter of 2025. $0.1 million increase in incentive fee on income net of waivers is a result of an increase in the gross calculated incentive fee on income of $1.1 million, partially offset by a $1 million voluntary waiver of incentive fee on income by the fund's investment adviser.

與去年同期相比，基本管理費的下降主要是由於平均總資產增加所致，但部分被經修訂之投顧協議下較低的基本管理費率在2025年第一季僅享有部分季度效益、而本期享有整個季度效益所抵銷。扣除豁免後之按收入計提的激勵費增加0.1百萬美元，係因按收入計算之激勵費毛額增加1.1百萬美元所致，但部分被基金投資顧問自願豁免1百萬美元按收入計提之激勵費所抵銷。

The increase in the gross calculated incentive fee on income is the result of the amended advisory agreement. The capital gains incentive fee accrual was reduced by $0.6 million in the first quarter compared to no accrual a year ago due to the net fair value depreciation of the fund's investments in the first quarter of 2026. The $3.7 million decrease from the fourth quarter in the fund's expenses net of waivers was primarily driven by decreases of $3.4 million in the capital gains incentive fee and $1.3 million in the incentive fee on income, net of waivers, partially offset by a $0.8 million increase in interest expense and base management fees.

按收入計算之激勵費毛額增加係經修訂之投顧協議所致。由於基金於2026年第一季投資出現淨公允價值減損，第一季資本利得激勵費應計數較去年同期（當時無應計）減少0.6百萬美元。基金扣除豁免後之費用較第四季減少3.7百萬美元，主要由資本利得激勵費減少3.4百萬美元及扣除豁免後之按收入計提激勵費減少1.3百萬美元所帶動，但部分被利息費用及基本管理費增加0.8百萬美元所抵銷。

$3.4 million decrease in the capital gains incentive fee accrual from the fourth quarter reflects a $0.6 million reduction to the accrual recorded in the first quarter of 2026, compared to the $2.8 million accrual in the fourth quarter. The accrual reduction was the result of the net fair value depreciation of the fund's investments in the first quarter.

資本利得激勵費應計數較第四季減少3.4百萬美元，反映2026年第一季對已計提應計數減少0.6百萬美元，相較之下第四季計提2.8百萬美元。該應計數減少係基金於第一季投資出現淨公允價值減損所致。

Increase in interest expense was primarily driven by an increase in average borrowings outstanding, partially offset by a decreased weighted average interest rate on the credit facilities due to decreases in benchmark index rates. The decrease in incentive fee on income was primarily due to the voluntary incentive fee waiver by the adviser.

利息費用增加主要由於平均未償借款增加所致，但部分被基準指數利率下降導致信貸融資安排之加權平均利率下降所抵銷。按收入計提之激勵費下降主要係因顧問自願豁免激勵費所致。

The fund's expense ratio calculated as the ratio of total noninterest operating expenses, excluding incentive fees, net of waivers, as a percentage of the fund's average total assets was 1.8% on an annualized basis for the first quarter, a decrease from 1.9% in the prior year and was consistent with the fourth quarter. The fund's adjusted NII before taxes in the first quarter was $16.6 million, or $0.36 per share, decreasing from $16.8 million, or $0.38 per share, from the prior year.

基金費用率係以扣除豁免後之總非利息營運費用（不含激勵費）占基金平均總資產之比率計算，第一季年化為1.8%，較去年同期之1.9%下降，且與第四季一致。基金第一季稅前調整後淨投資收益（NII）為16.6百萬美元（每股0.36美元），較去年同期之16.8百萬美元（每股0.38美元）下降。

During the quarter, the fund recorded a net decrease in the fair value of its investments of $2.9 million, representing the impact of $0.2 million of net realized losses and $2.6 million of net unrealized depreciation. The net fair value decrease was attributable to a decrease of $7.5 million in the private loan portfolio, $0.8 million in the residual middle market portfolio, partially offset by an increase of $5.1 million in the lower middle market portfolio.

本季基金投資公允價值淨減少2.9百萬美元，反映0.2百萬美元之已實現淨損失及2.6百萬美元之未實現淨減損之影響。該公允價值淨減少主要歸因於私募貸款投資組合減少7.5百萬美元及殘餘中型市場投資組合減少0.8百萬美元，但部分被較低中型市場投資組合增加5.1百萬美元所抵銷。

Overall, the fund's operating results from the first quarter resulted in a net increase in net assets of $13.2 million. After giving effect to the capital transactions, including dividends to shareholders and the repurchase of $16 million of the fund's common stock at prices below net asset value, the fund's NAV per share was $15.87, a $0.02 increase from the fourth quarter and $0.34 above the fund's public offering -- price per share in the public offering and listing on the New York Stock Exchange in January of 2025.

整體而言，基金第一季營運結果使淨資產增加13.2百萬美元。計入資本交易影響（包括向股東派發股利，以及以低於淨資產價值的價格回購16百萬美元之基金普通股）後，基金每股淨資產價值（NAV）為15.87美元，較第四季增加0.02美元，並較基金於2025年1月在紐約證券交易所公開發行及上市之公開發行價（每股價格）高出0.34美元。

Share repurchases were accretive to NAV per share, contributing approximately $0.08 per share to the fund's NAV per share during the quarter. As of quarter end, the fund had investments on nonaccrual status, comprising 1.1% of the total investment portfolio at fair value and 4.2% at cost.

股份回購對每股NAV具增厚效果，本季約為基金每股NAV貢獻0.08美元。截至季末，基金有處於停計息（nonaccrual）狀態之投資，按公允價值占總投資組合之1.1%，按成本占4.2%。

As of quarter end, the fund's regulatory asset coverage ratio was 2.11, and its net debt to NAV ratio was 0.88. During the first quarter, we strengthened our capital structure by issuing $150 million of privately placed unsecured notes in March at a 6.34% rate, maturing in May of 2029, as we continue to address near-term maturities and improve the fund's capital structure.

截至季末，基金之監管資產覆蓋率為2.11，淨負債對NAV比率為0.88。第一季期間，我們於3月以6.34%利率發行1.5億美元私募無擔保票據，於2029年5月到期，以持續因應近期到期債務並改善基金資本結構，從而強化我們的資本結構。

With that, I will now turn the call back over to the operator so we can take any questions.

接下來，我將把電話交回給接線員，以便我們回答任何問題。

(Operator Instructions)

（接線員指示）

Robert Dodd, Raymond James.

Robert Dodd，Raymond James。

Just -- I sort of asked this on the other call earlier, but just looking at the forward outlook, I mean, over the -- this was obviously on the private loan side, a slower quarter, but there's been several of those in and above when we talked about it before. Actually, there's a sort of pricing activity levels.

我只是——我之前在另一通電話上也問過這個，但就前瞻展望來看，我的意思是，在——這顯然是在私募貸款那一側，這是一個較慢的季度，但我們之前談到時，這種情況已經出現過好幾次，甚至更常見。其實，這有點像是定價活動的水準。

I mean, what's the confidence, especially now that you have the higher leverage limit? What's the confidence you can actually really increase the size of the private loan book to kind of optimize ROE of this? I mean, obviously, more short, medium term rather than -- obviously, you can get there long term, but what's the confidence that, that can meaningfully grow this year?

我的意思是，你們現在有更高的槓桿上限，信心如何？你們有多大把握能夠真正擴大私募貸款帳簿的規模，以某種程度上優化其ROE？我的意思是，顯然是偏短、中期，而不是——當然，長期你們可以達到，但你們有多大信心今年能有意義地成長？

Sure, Robert. I think it's going to be somewhat dictated by the market opportunity. The fund, as you know, is solely focused on private loan for new investments. So the pace in the amount of growth that the fund has is going to be subject to what we see in the broader market. So I think we have confidence.

當然，Robert。我認為這在某種程度上將取決於市場機會。如你所知，基金的新投資完全聚焦於私募貸款。因此，基金成長的速度與幅度將取決於我們在更廣泛市場中所看到的情況。所以我認為我們是有信心的。

We do think that the overall environment has improved. But a lot of the pace is going to be dictated by how active private equity sponsors are in this environment. I think right now, we think there will be activity, but that will play out over the next couple of quarters. So I think there is some you kind of uncertain nature of that activity because it is going to be dictated by the sponsors. Nick, I don't know if you want to add anything to that?

我們確實認為整體環境已有所改善。但很多節奏將取決於私募股權贊助方在此環境下的活躍程度。我認為目前我們覺得會有活動，但這會在接下來幾個季度逐步展開。因此，這些活動帶有某種不確定性，因為它將由贊助方所主導。Nick，你是否想補充一下？

No, I think that pretty much covers it. Like we said earlier, I think it's going to be a -- the pricing has come towards us. And so I think there were some pricing in the last 6, 12 months that just didn't fit us, and we thought it was too low for the risk, and we pass on those deals of lowering our pricing. I think that's come in to us now. And now, we seem to have the deal volume pick up to match the overall origination.

不，我想這基本上已涵蓋了。如我們先前所說，我認為——定價已經朝我們有利的方向靠攏。因此，過去6到12個月有一些定價並不符合我們的要求，我們認為在該風險水準下利差太低，所以我們選擇放棄那些交易，而不是降低我們的定價。我認為現在定價已經回到我們可接受的範圍。現在，我們似乎也看到交易量回升，與整體承作（origination）相匹配。

Brian McKenna, Citizens.

Brian McKenna，Citizens。

So somewhat related, but just trying to think through the trajectory of ROEs over the next year or so. So I think you're in a great position to deploy capital, I think it'll be pretty prudent, but that's been running the ROE on a net NII basis. It's been running about 8.5% the last couple of quarters. I mean, should we start -- should we expect that will start to expand here back to 9% plus just as leverage is optimized? Like, I'm just trying to think through the trajectory from here for that.

這有點相關，但我只是想思考一下未來一年左右ROE的走勢。我認為你們在部署資本方面處於很好的位置，我想你們會相當審慎，但這一直在拖累以淨NII為基礎的ROE。過去幾個季度大約在8.5%左右。我的意思是，我們是否應該開始——是否應該預期隨著槓桿最佳化，這裡會開始擴張回到9%以上？我只是想從現在起思考其走勢。

Sure, Brian. You mentioned kind of the concept of NII ROE. I think that's going to be dictated by two things: one, you and Robert hit on is that the pace of growth and deployments and how much new activity we have there that could drive some incremental net investment income ROE.

當然，Brian。你提到NII ROE這個概念。我認為這將由兩件事所決定：第一，你和Robert提到的成長與部署的節奏，以及我們在新活動方面有多少，這可能推動淨投資收益ROE的增量提升。

The other piece will be any movement in nonaccruals, whether it's an existing nonaccrual going back on accrual or something that's on accrual today going the other direction. Those would be the big drivers. I don't think that's a surprise when you look at the drivers there, but those are the two big catalysts.

另一個因素是停計息資產（nonaccrual）的任何變動，無論是既有停計息資產恢復計息，或是目前仍在計息的資產轉為停計息。這些將是主要驅動因素。我認為當你看這些驅動因素時並不令人意外，但這兩個是最大的催化劑。

I think on the net income ROE, which is the number we typically spend more time on, that will be dictated also by the performance of the private loans, but we still have about 1/3 of the portfolio invested in lower middle market assets. And to the extent we have good outcomes on any of those equity investments, that will be -- continue to be a catalyst or a positive driver on net income ROE. I think that's the way we would look at it, Brian.

我認為就淨收益ROE（這通常是我們花更多時間關注的指標）而言，它也將取決於私募貸款的表現，但我們仍有約三分之一的投資組合配置於較低中型市場資產。而在那些股權投資上，只要我們取得良好結果，就將——持續成為淨收益ROE的催化劑或正向驅動因素。我認為這就是我們看待它的方式，Brian。

Got it. All right. That's helpful. And then just in terms of the lower middle market equity portfolio, David, I think you mentioned there's still a pipeline there for some additional realization markup events. Is there any way just to kind of quantify that?

了解。好，這很有幫助。接著關於較低中型市場股權投資組合，David，我想你提到那邊仍有一些管線，可能會出現額外的已實現（realization）加價（markup）事件。有沒有什麼方式可以大致量化一下？

And then, just thinking through the overall mix of the book, private loans versus the lower middle market, like when does that ultimately kind of hit that next threshold that will start to lower the fee to the adviser? I'm just trying to think through the mix here over the next couple of years for the portfolio.

然後，從整體投資組合的配置來看，私募貸款相對於低中端市場（lower middle market），最終大概在什麼時點會達到下一個門檻，從而開始降低支付給投顧的費用？我只是想釐清未來幾年投資組合的配置走向。

Yes, Brian. I would say when you look at the catalyst to get it -- get the portfolio to where the lower middle market is less than 20%, there has to be a lot of turnover. The good news for the portfolio is that it's very diversified. The bad news is that it's very diversified. So even if you have two, three or four lower middle market investments exit in the near term, while they will move that 33% plus or minus number down, it's going to take a while before it moves down below 20%.

是的，Brian。我會說，當你看要把投資組合推進到低中端市場占比低於 20% 的觸發因素時，必須要有相當多的周轉。對投資組合而言，好消息是它非常分散；壞消息也是它非常分散。所以即便短期內有兩、三或四筆低中端市場投資退出，雖然會把那個約 33%（上下浮動）的數字往下拉，但要降到 20% 以下仍需要一段時間。

So the real catalyst will be more the growth of the portfolio, deployment of private loans and continued access to capital. We have to continue to raise additional capital to make sure we can have access to the full leverage capacity. You have to have each of those things get addressed, but it's really going to be a driver -- it's going to be driven more by the deployment of new private loans and less at least near term by the turnover of the lower middle market portfolio.

因此，真正的催化劑會更偏向於投資組合的成長、私募貸款的投放，以及持續取得資本。我們必須持續募集更多資本，以確保能夠使用完整的槓桿額度。這些事情都必須逐一到位，但主要驅動因素——至少在短期內——會更多來自新增私募貸款的投放，而較少來自低中端市場投資組合的周轉。

Arren Cyganovich, Truist Securities.

Arren Cyganovich，Truist Securities。

Just following up on the last question about the lower middle market potential sales of those loans. What type of buyers are these? Are these institutional buyers that you're looking to potentially sell these investments to?

我想接續上一題，關於低中端市場那些貸款可能出售的問題。這些買方通常是什麼類型？你們考慮把這些投資賣給機構型買方嗎？

Yes. So just to kind of clarify that, Arren, we -- if we have exits there, it's not us selling our investment, selling the loan to a third party, this would be a result of the portfolio company going through a change of control transaction. And as a result of that change of control, our debt is repaid and then our equity is also sold. So that would be the driver of the activity.

是的。Arren，先稍微釐清一下——如果那邊出現退出，並不是我們把投資賣掉、把貸款賣給第三方；而是投資組合公司發生控制權變更交易所導致的結果。因為控制權變更，我們的債務會被償還，然後我們的股權也會被出售。所以活動的驅動因素會是這個。

And those buyers would typically be one of two sets of buyers, either a traditional private equity firm that is the buyer or it's a strategic that may or may not be backed by a private equity firm, but it would be more of a traditional private company buyer. But David, feel free to add on.

而這些買方通常會是兩類之一：要嘛是傳統私募股權基金作為買方；要嘛是策略型買方，可能有也可能沒有私募股權基金支持，但會更偏向傳統的私人公司買方。不過 David，你也可以補充。

One thing I'd add is that we have companies that get tracked for a long time by various buyers. The management teams take incoming calls, and it's a really powerful position for us to be in, where we're not necessarily actively managing or the company is not actively marketing the company. But as buyers come in both financial and strategic, we're monitoring them and developing relationships at the portfolio company level over a number of years. And when you hear us giving guidance, it's when the portfolio company execs have come to the conclusion that they can maximize their value, either through a process or through an incoming phone call.

我想補充的是，我們有些公司會被各類買方長期追蹤。管理團隊會接聽來電，這讓我們處在非常有利的位置：我們不一定在主動管理出售流程，或公司也不一定在主動對外推銷；但當財務型與策略型買方陸續出現時，我們會持續觀察並在投資組合公司層面建立多年關係。當你聽到我們給出指引時，通常是投資組合公司的高層已經判斷，他們可以在某個流程中或透過某通來電，把價值最大化。

So it's very much dictated by them and their sense of how the windshield looks versus the rearview mirror when they can maximize value. But it is not -- it's different than institutional investors looking at private loan portfolios like Dwayne said for the majority of the industry.

所以這很大程度取決於他們，以及他們對於「前方擋風玻璃」相對於「後視鏡」的判斷——也就是何時能把價值最大化。但這並不是——它不同於像 Dwayne 所說、產業中多數情況下機構投資人去看私募貸款投資組合的那種模式。

Okay. Sorry, I just misheard whenever you were discussing it. So that makes much more sense to me. That's all I have.

好的。抱歉，我剛剛在你們討論時聽錯了。所以這樣我就更能理解了。我沒有其他問題了。

(Operator Instructions)

（接線員指示）

Cory Johnson, UBS.

Cory Johnson，UBS。

Yes. So I just want to talk a little bit about like, I guess, the competition in the lower middle market. I have been hearing that there is sort of an increased competition there, but your yield sort of held up, and it seems like your term you're saying are, if anything, strengthening.

是的。我想稍微談一下低中端市場的競爭情況。我聽到一些說法是那邊競爭有所加劇，但你們的收益率似乎仍維持住了，而且你們也提到條款如果有變化的話，反而是在走強。

So I guess, are you seeing any increased competition? And then also, is there -- given your platform and low leverage that you currently have and maybe a little bit of hampered competition from some of the other players, are you seeing any opportunity to possibly move upmarket and do deals? And is that something you would actually look to do?

所以我想問，你們是否看到競爭加劇？另外，考量你們的平台以及目前較低的槓桿，且其他一些參與者的競爭可能受到些限制，你們是否看到有機會往更高端市場做交易？這會是你們實際會考慮的方向嗎？

Yes, Cory, maybe I'll -- thanks for the question, maybe I'll address that a couple of ways, and I'll let Nick or David add on here. So I think when we look at Main Street's description of our strategies, lower middle market is very different than what you would hear from other BDCs. Other BDCs use the term lower middle market. And I think they're referring purely to size.

是的，Cory，謝謝你的問題。我可能會從幾個角度來回答，然後也讓 Nick 或 David 補充。我認為當我們看 Main Street 對自身策略的描述時，我們所說的低中端市場，和你從其他 BDC 聽到的很不一樣。其他 BDC 也會用「低中端市場」這個詞，而我認為他們指的純粹是規模大小。

In the case of the Main Street platform, we're referencing more of a strategy where we are partnering just like we have for the last 20-plus years with the existing owner-operator and their management team to provide a structured transaction, where the Main Street platform is an investor in both the debt and the equity.

在 Main Street 平台的情況下，我們更多是在指一種策略：就像過去 20 多年一樣，我們與既有的業主經營者（owner-operator）及其管理團隊合作，提供一個結構化交易，使 Main Street 平台同時在債務與股權上進行投資。

So again, something that's very different than what you would see at other BDCs execute from an investment strategy standpoint. If you look at the lower middle market strategy, again, which is not private -- it's not the MSC Income Fund's strategy going forward, they do have an existing portfolio. About 1/3 of the portfolio is in lower middle market, and we do see follow-on opportunities in those companies. And when we see those, the fund will continue to participate in that, and we think those are great opportunities to create value, both from an interest income standpoint and a long-term equity value creation standpoint.

所以再次強調，這在投資策略執行層面，與你在其他 BDC 看到的非常不同。若看低中端市場策略——同樣地，這不是私募——這不是 MSC Income Fund 未來的策略；他們確實有一個既有投資組合，約三分之一在低中端市場，我們也在那些公司看到後續追加投資的機會。當我們看到這些機會時，基金會持續參與，我們認為這些是很好的機會，能同時在利息收入面與長期股權價值創造面創造價值。

But the sole strategy from a new portfolio company standpoint is in private loan, which is also lower middle market from a size standpoint. The size of those companies at initial investment are broadly between kind of 7.5% and 15% is where most of them fit. Most of it would be on the bottom 1/3 of that range. I'd say that's where we do compete with other BDCs or other private credit firms. And I think we've long been in that space, just like we have in our lower middle market strategy, and we haven't seen a lot of changes, kind of new entrants into that space.

但從新增投資組合公司的角度來看，唯一的策略是私募貸款；就規模而言，這也屬於低中端市場。這些公司在初始投資時的規模，大致落在約 7.5% 到 15% 之間，多數會在該區間的下三分之一。我會說，在那個區間，我們確實會與其他 BDC 或其他私募信貸機構競爭。我們長期以來一直在這個領域，就像我們在低中端市場策略中一樣，而我們沒有看到太多變化，也沒有看到很多新的參與者進入這個領域。

And I'd say we haven't seen a lot in the current environment. It is a market or a part of the segment that does have competition. So it's not something that Main Street is the only party that's providing debt financing or debt capital to those private equity sponsors. So it is -- it does have competition. But I'd say we continue to view it as a market that's attractive, both from a spread standpoint and a structure standpoint relative to the upper -- kind of upper middle market.

而且我會說，在目前環境下我們也沒有看到太多變化。這個市場或這個細分領域確實存在競爭，所以並不是只有 Main Street 在向那些私募股權贊助方提供債務融資或債務資本；它確實有競爭。但我會說，相較於更高端——也就是上中端市場——我們仍認為這個市場在利差與結構條款方面都很有吸引力。

And as a result, we do not have plans today across the Main Street platform, MSC Income Fund, Main Street or private loan kind of private funds that are focused on the private loan strategy. We don't have an expectation to move upmarket across any of those different entities. But Nick, on the new private loan side, if you want to give some additional color on the competitive landscape or the marketplace?

因此，目前在 Main Street 平台整體上——不論是 MSC Income Fund、Main Street，或是專注私募貸款策略的私募貸款類私募基金——我們都沒有計畫要往更高端市場移動。但 Nick，就新增私募貸款這一塊，如果你想就競爭態勢或市場情況再補充一些細節？

I'd say over the last, call it, 12 to 24 months, we really haven't seen any new entrants in the market, I think, from a combination there of a fundraising difficulty for smaller or new entrants. We just haven't seen that happen. I think a lot of the fundraising has really drifted towards the upper middle market, and the larger side is competing in the broad syndicated side.

我會說在過去大約 12 到 24 個月，我們確實沒有看到新的參與者進入市場，原因可能是小型或新進者募資困難等多重因素。我們沒有看到那種情況發生。我認為很多募資其實已經漂移到上中端市場，而規模更大的那一端則在廣泛聯貸市場（broad syndicated）競爭。

And so we're seeing the same handful of players. One interesting one on the lower middle market and the private credit side is we don't see the same six or seven or eight firms in every single transaction. There will be five or six people bidding for each transaction, but it's a very different group on any individual deal.

因此我們看到的仍是同一小撮參與者。有趣的是，在低中端市場與私募信貸這一側，我們不會在每一筆交易都看到同樣那六、七或八家機構。每筆交易可能會有五、六家競標，但在任何單一案子上，參與的群體都會很不一樣。

Cory, did we answer your question or address the topics you're trying to hit on?

Cory，我們有回答到你的問題，或涵蓋到你想談的主題嗎？

Yes, you did.

有的，你們回答到了。

This concludes our question-and-answer session. I would now like to turn the floor back over to management for any closing remarks.

問答環節到此結束。現在我想把時間交還給管理層，請其做任何結語。

I just want to thank everybody for joining us this morning, and we look forward to talking to you again in early August after our second quarter earnings release. Thank you.

我只想感謝各位今天早上參與，我們期待在 8 月初、於我們發布第二季財報之後，再與各位交流。謝謝。

This concludes today's conference. You may disconnect your lines at this time. Thank you.

今天的電話會議到此結束。您現在可以掛斷電話線。謝謝。