Generates $53.7
Million Realized Gain from Exit of Equity Investment
in Pearl Meyer & Partners,
LLC
HOUSTON, Jan. 7, 2025
/PRNewswire/ -- Main Street Capital Corporation (NYSE: MAIN) ("Main
Street") is pleased to announce that it recently fully exited its
debt and equity investments in Pearl
Meyer & Partners, LLC ("Pearl
Meyer" or the "Company") upon the completion of a majority
recapitalization with a new financial sponsor. Founded in 1989,
Pearl Meyer is the leading provider
of executive compensation and leadership & development
consulting services to a broad client base comprised of public
company boards of directors, executive management teams, financial
sponsors and private companies operating in a diverse set of
industries.
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 $35.0
million first lien, senior secured term loan and a direct
equity investment of $13.0 million.
After Main Street's initial investment, Pearl Meyer experienced significant growth as
the Company expanded its client base and service offerings through
organic and acquisition-related strategic initiatives. Pearl Meyer also completed five follow-on
acquisitions subsequent to Main Street's initial investment, with
Main Street funding an additional cumulative $43.2 million under the first lien, senior
secured term loan facility to support the Company's acquisition
strategy and facilitate a subsequent recapitalization of the
Company, resulting in Main Street's total debt investments
increasing to $78.2 million.
Main Street realized a gain of $53.7
million on the exit of its equity investment in Pearl Meyer with this realized value
representing an increase of $6.2
million above Main Street's fair market value for this
investment as of September 30, 2024.
Main Street also received total dividends of $31.6 million over the life of its equity
investment in the Company. As a result, on a cumulative basis since
Main Street's initial investment in April
2020 and taking the realized gain and dividends into
consideration, Main Street realized an annual internal rate of
return ("IRR") of 69.0% and a 7.7 times money invested ("TMI")
return on its equity investment in Pearl
Meyer. On a cumulative basis including both Main Street's
debt and equity investments in the Company, Main Street realized an
IRR of 32.7% and a 2.1 TMI return.
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 $10 million and $150
million. Main Street's private loan portfolio companies
generally have annual revenues between $25
million and $500 million.
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