Main Street Announces Exit of Portfolio Investment
Main Street Capital (NYSE: MAIN) has announced the complete exit of its debt and equity investments in Pearl Meyer & Partners following a majority recapitalization with a new financial sponsor. The exit generated a substantial $53.7 million realized gain from the equity investment.
Main Street's initial investment in April 2020 comprised a $35.0 million first lien senior secured term loan and a $13.0 million direct equity investment. The debt investment later increased to $78.2 million to support Pearl Meyer's expansion through five follow-on acquisitions.
The exit yielded impressive returns, with $31.6 million in total dividends received over the investment period. The equity investment achieved a 69.0% annual IRR and a 7.7 times money invested (TMI) return. Combined debt and equity investments resulted in a 32.7% IRR and a 2.1 TMI return.
Main Street Capital (NYSE: MAIN) ha annunciato l'uscita completa dei suoi investimenti in debito ed equità in Pearl Meyer & Partners, a seguito di una ricapitalizzazione majoritaria con un nuovo sponsor finanziario. L'uscita ha generato un notevole guadagno realizzato di 53,7 milioni di dollari dall'investimento azionario.
L'investimento iniziale di Main Street nell'aprile 2020 comprendeva un prestito senior garantito di prima linea di 35,0 milioni di dollari e un investimento diretto in equità di 13,0 milioni di dollari. L'investimento in debito è successivamente aumentato a 78,2 milioni di dollari per supportare l'espansione di Pearl Meyer attraverso cinque acquisizioni successive.
L'uscita ha generato ritorni impressionanti, con 31,6 milioni di dollari di dividendi totali ricevuti nel periodo di investimento. L'investimento azionario ha raggiunto un 69,0% di IRR annuale e un ritorno di 7,7 volte il denaro investito (TMI). Gli investimenti combinati di debito e capitale hanno portato a un 32,7% di IRR e un 2,1 TMI di ritorno.
Main Street Capital (NYSE: MAIN) ha anunciado la salida completa de sus inversiones en deuda y capital en Pearl Meyer & Partners tras una recapitalización mayoritaria con un nuevo patrocinador financiero. La salida generó una ganancia realizada de 53,7 millones de dólares por la inversión en capital.
La inversión inicial de Main Street en abril de 2020 consistió en un préstamo senior garantizado de primera línea de 35,0 millones de dólares y una inversión directa en capital de 13,0 millones de dólares. La inversión en deuda aumentó posteriormente a 78,2 millones de dólares para ayudar a la expansión de Pearl Meyer a través de cinco adquisiciones posteriores.
La salida generó retornos impresionantes, con 31,6 millones de dólares en dividendos totales recibidos durante el periodo de inversión. La inversión en capital logró un 69,0% de IRR anual y un retorno de 7,7 veces el dinero invertido (TMI). Las inversiones combinadas de deuda y capital resultaron en un 32,7% de IRR y un retorno de 2,1 TMI.
메인 스트리트 캐피탈 (NYSE: MAIN)은 새로운 금융 스폰서와의 다수 recapitalization 후 펄 마이어 & 파트너스에 대한 부채 및 지분 투자에서 완전하게 철수했음을 발표했습니다. 이번 철수는 5,370만 달러의 실현 이익을 창출했습니다.
메인 스트리트의 초기 투자액은 2020년 4월에 3,500만 달러의 선순위 담보 대출과 1,300만 달러의 직접 지분 투자로 구성되었습니다. 이후 부채 투자는 펄 마이어의 확장을 지원하기 위해 7,820만 달러로 증가했습니다.
철수를 통해 인상적인 수익을 얻었으며, 투자 기간 동안 총 3,160만 달러의 배당금이 수령되었습니다. 지분 투자에서 69.0%의 연간 IRR과 7.7배 투자금(TMI)의 수익을 달성했습니다. 부채 및 지분 투자에 합쳐져 32.7%의 IRR과 2.1 TMI 수익률을 기록했습니다.
Main Street Capital (NYSE: MAIN) a annoncé la sortie complète de ses investissements en dette et en capital dans Pearl Meyer & Partners suite à une recapitalisation majoritaire avec un nouveau sponsor financier. Cette sortie a généré un bénéfice réalisé de 53,7 millions de dollars provenant de l'investissement en actions.
L'investissement initial de Main Street en avril 2020 comprenait un prêt senior garanti de premier rang de 35,0 millions de dollars et un investissement direct en capital de 13,0 millions de dollars. L'investissement en dette a ensuite augmenté à 78,2 millions de dollars pour soutenir l'expansion de Pearl Meyer à travers cinq acquisitions supplémentaires.
La sortie a généré des rendements impressionnants, avec 31,6 millions de dollars de dividendes totaux reçus pendant la période d'investissement. L'investissement en capital a atteint un IRR annuel de 69,0% et un retour de 7,7 fois la somme investie (TMI). Les investissements combinés en dette et en capital ont résulté en un IRR de 32,7% et un retour de 2,1 TMI.
Main Street Capital (NYSE: MAIN) hat den vollständigen Ausstieg aus seinen Schulden- und Eigenkapitalinvestitionen in Pearl Meyer & Partners nach einer Mehrheitsrekapitalisierung mit einem neuen Finanzsponsor bekannt gegeben. Der Ausstieg erzielte einen erheblichen realisierten Gewinn von 53,7 Millionen US-Dollar aus der Eigenkapitalinvestition.
Die Anfangsinvestition von Main Street im April 2020 bestand aus einem Senior Secured Term Loan von 35,0 Millionen US-Dollar sowie einer direkten Eigenkapitalinvestition von 13,0 Millionen US-Dollar. Die Schuldeninvestition erhöhte sich später auf 78,2 Millionen US-Dollar, um Pearl Meyers Expansion durch fünf nachfolgende Akquisitionen zu unterstützen.
Der Ausstieg erzielte beeindruckende Renditen, mit 31,6 Millionen US-Dollar an Gesamtausschüttungen, die über den Investitionszeitraum erhalten wurden. Die Eigenkapitalinvestition erreichte eine jährliche IRR von 69,0% und eine 7,7-fache Rendite des investierten Geldes (TMI). Die kombinierten Schulden- und Eigenkapitalinvestitionen ergaben eine IRR von 32,7% und eine 2,1 TMI Rendite.
- Generated $53.7 million realized gain from equity investment exit
- Received $31.6 million in total dividends over investment period
- Achieved 69.0% annual IRR and 7.7x return on equity investment
- Combined debt and equity investments yielded 32.7% IRR and 2.1x return
- None.
Insights
The exit from Pearl Meyer represents an exceptional return on investment, with the
The total investment performance, including both debt and equity components, yielded a
For retail investors, this exit validates MAIN's business model of providing both debt and equity capital to middle-market companies. The
The successful exit through a majority recapitalization with a new financial sponsor highlights Pearl Meyer's evolution into an attractive M&A target. The completion of five follow-on acquisitions during MAIN's holding period demonstrates effective buy-and-build strategy execution in the professional services sector.
Pearl Meyer's positioning as a leading executive compensation and leadership consulting firm made it particularly appealing in the current market, where human capital management expertise is increasingly valuable. The expansion of service offerings and client base through both organic growth and strategic acquisitions created multiple value drivers that attracted buyer interest.
The timing of the exit, less than four years after the initial investment, suggests optimal market conditions and strong execution of value-creation initiatives. The substantial return metrics indicate the acquirer likely saw significant additional growth potential in Pearl Meyer's platform, justifying a premium valuation.
Generates
Main Street partnered with Pearl Meyer's executive management team and senior consulting partners to facilitate the recapitalization of the Company in April 2020. Main Street's initial investment consisted of a
Main Street realized a gain of
ABOUT MAIN STREET CAPITAL CORPORATION
Main Street (www.mainstcapital.com) is a principal investment firm that primarily provides customized long-term debt and equity capital solutions to lower middle market companies and debt capital to private companies owned by or in the process of being acquired by a private equity fund. 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 customized "one-stop" debt and equity financing alternatives within its lower middle market investment strategy. Main Street seeks to partner with private equity fund sponsors and primarily invests in secured debt investments in its private loan investment strategy. Main Street's lower middle market portfolio companies generally have annual revenues between
Main Street, through its wholly owned portfolio company MSC Adviser I, LLC ("MSC Adviser"), also maintains an asset management business through which it manages investments for external parties. MSC Adviser is registered as an investment adviser under the Investment Advisers Act of 1940, as amended.
Contacts:
Main Street Capital Corporation
Dwayne L. Hyzak, CEO, dhyzak@mainstcapital.com
Ryan R. Nelson, CFO, rnelson@mainstcapital.com
713-350-6000
Dennard Lascar Investor Relations
Ken Dennard | ken@dennardlascar.com
Zach Vaughan | zvaughan@dennardlascar.com
713-529-6600
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SOURCE Main Street Capital Corporation
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