Main Street Announces New Portfolio Investment

Rhea-AI Summary

Main Street Capital (NYSE: MAIN) has completed a new portfolio investment of $11.2 million to facilitate the majority recapitalization of MoneyThumb, Inc., a leading software-as-a-service provider of financial file conversion, reconciliation, and analysis software. The investment includes a combination of first lien, senior secured debt with equity warrant participation and a direct minority equity investment.

MoneyThumb, founded in 2014 and based in Encinitas, California, primarily supports merchant cash advance (MCA) customers through document automation products that analyze applicant bank statements for underwriting processes. The company also offers a proprietary fraud detection product called Thumbprint and serves accounting and bookkeeping customers with document conversion services. MoneyThumb is expanding its product offerings into adjacent segments, including the small to medium business lending industry.

Invests $11.2 Million in Recapitalization of MoneyThumb, Inc.

HOUSTON, Aug. 29, 2024 /PRNewswire/ -- Main Street Capital Corporation (NYSE: MAIN) ("Main Street") is pleased to announce that it recently completed a new portfolio investment totaling $11.2 million to facilitate the majority recapitalization of MoneyThumb, Inc. ("MoneyThumb" or the "Company"), a leading software-as-a-service provider of financial file conversion, reconciliation and analysis software to end customers primarily in the merchant cash advance ("MCA") and accounting industries. Main Street, along with its co-investor, partnered with Iron Creek Partners, LLC, the majority equity investor in the recapitalization transaction and a sector-focused private investment firm that Main Street has partnered with on several prior investments, and MoneyThumb's founder and senior management team to facilitate the transaction. Main Street's portion of the funding for the recapitalization was a total of $11.2 million and included a combination of first lien, senior secured debt with equity warrant participation and a direct minority equity investment.

Founded in 2014 and headquartered in Encinitas, California, MoneyThumb supports its MCA customers primarily through a set of document automation products that read and analyze an applicant's bank statements as part of the customers' MCA underwriting processes, facilitating faster and more accurate underwriting decisions. MoneyThumb also provides a proprietary fraud detection product, Thumbprint, which helps its customers detect fraudulent or fabricated source documents. The Company's accounting and bookkeeping customers most frequently use MoneyThumb for standard document conversion. The Company is also expanding its product offerings into adjacent segments including the small to medium business lending industry.

ABOUT MAIN STREET CAPITAL CORPORATION
Main Street (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 investment strategy. Main Street's lower middle market portfolio companies generally have annual revenues between $10 million and $150 million. Main Street's middle market portfolio companies are generally larger in size than its lower middle market portfolio companies.

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 & Treasurer, 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

FAQ

What is the value of Main Street Capital's investment in MoneyThumb?

Main Street Capital (NYSE: MAIN) invested $11.2 million in MoneyThumb, Inc. as part of a majority recapitalization deal announced on August 29, 2024.

What type of company is MoneyThumb, and what services does it provide?

MoneyThumb is a software-as-a-service provider offering financial file conversion, reconciliation, and analysis software. It primarily serves the merchant cash advance (MCA) and accounting industries with document automation and fraud detection products.

Who partnered with Main Street Capital in the MoneyThumb investment?

Main Street Capital partnered with Iron Creek Partners, , the majority equity investor in the recapitalization transaction, and MoneyThumb's founder and senior management team to facilitate the investment.

What is the structure of Main Street Capital's investment in MoneyThumb?

Main Street Capital's $11.2 million investment in MoneyThumb includes a combination of first lien, senior secured debt with equity warrant participation and a direct minority equity investment.

When was MoneyThumb founded and where is it headquartered?

MoneyThumb was founded in 2014 and is headquartered in Encinitas, California.