Main Street Announces Exit of Portfolio Investment

Rhea-AI Summary

Main Street Capital Corporation (NYSE: MAIN) has successfully exited its debt and equity investments in IDX Broker, LLC, earning a gain of $9.3 million from the sale to a strategic acquirer. Main Street initially invested $10.6 million in debt and $5.0 million in equity in 2013, and subsequent follow-on investments supported IDX's capital changes and growth. The cumulative annual internal rate of return from this investment stands at 15.8%, achieving a 1.9 times money invested return.

Positive

• Realized a $9.3 million gain from the exit of IDX investment.
• Achieved a 15.8% annual internal rate of return since 2013.
• Returned 1.9 times the invested amount on IDX.

Negative

• None.

HOUSTON, June 24, 2020 /PRNewswire/ -- Main Street Capital Corporation (NYSE: MAIN) ("Main Street") is pleased to announce that it recently fully exited its debt and equity investments in IDX Broker, LLC ("IDX" or the "Company") upon the sale of IDX to a sponsor-backed strategic acquirer.  Founded in 2003 and headquartered in Eugene, Oregon, IDX offers the industry's leading software-as-a-service ("SaaS") search and lead management solution which integrates data feeds from multiple listing services ("MLS") into websites for real estate professionals.  Main Street realized a gain of $9.3 million on the exit of its equity investment in IDX. 

Main Street made its initial investment in IDX in 2013, consisting of a $10.6 million first lien, senior secured debt investment and a direct equity investment of $5.0 million.  After its initial investment, Main Street made several additional follow-on debt and equity investments in IDX to facilitate certain changes to the Company's capital structure and to support the Company's ongoing operations and growth initiatives. On a cumulative basis since Main Street made its initial investment in 2013, Main Street realized an annual internal rate of return of 15.8% and a 1.9 times money invested return on its cumulative debt and equity investments in IDX.

ABOUT MAIN STREET CAPITAL CORPORATION
Main Street (-1%26h%3D1859060701%26u%3Dhttp%253A%252F%252Fwww.mainstcapital.com%252F%26a%3Dwww.mainstcapital.com&a=www.mainstcapital.com" rel="nofollow">www.mainstcapital.com) is a principal investment firm that primarily provides long-term debt and equity capital to lower middle market companies and debt capital to 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 diverse industry sectors.  Main Street seeks to partner with entrepreneurs, business owners and management teams and generally provides "one stop" financing alternatives within its lower middle market portfolio.  Main Street's lower middle market companies generally have annual revenues between $10 million and $150 million.  Main Street's middle market debt investments are made in businesses that are generally larger in size than its lower middle market portfolio companies.

Contacts:
Main Street Capital Corporation
Dwayne L. Hyzak, CEO, dhyzak@mainstcapital.com  
Brent D. Smith, CFO, bsmith@mainstcapital.com                 
713-350-6000

Dennard Lascar Investor Relations
Ken Dennard | ken@dennardlascar.com
Zach Vaughan | zvaughan@dennardlascar.com  
713-529-6600

View original content:http://www.prnewswire.com/news-releases/main-street-announces-exit-of-portfolio-investment-301082567.html

SOURCE Main Street Capital Corporation

FAQ

What was the financial gain from Main Street's investment in IDX Broker?

Main Street Capital realized a financial gain of $9.3 million from its exit of IDX Broker.

When did Main Street Capital invest in IDX Broker?

Main Street Capital made its initial investment in IDX Broker in 2013.

What was the annual internal rate of return on the IDX investment?

The annual internal rate of return on the IDX investment was 15.8%.

How much did Main Street initially invest in IDX Broker?

Main Street initially invested $10.6 million in debt and $5.0 million in equity in IDX Broker.

What is the stock symbol for Main Street Capital Corporation?

The stock symbol for Main Street Capital Corporation is MAIN.