Main Street Announces Exit of Investments in an Existing Portfolio Company
Generates $17.3 Million Realized Gain from the Exit of Equity Investment in KBK Industries, LLC
HOUSTON, Jan. 13, 2026 /PRNewswire/ -- Main Street Capital Corporation (NYSE: MAIN) ("Main Street") is pleased to announce that it recently fully exited its debt and equity investments in KBK Industries, LLC ("KBK" or the "Company") upon the sale of the Company to a strategic acquiror. Founded in 1975 and headquartered in Rush Center, Kansas, KBK is a leading manufacturer of large-volume aboveground and belowground fiberglass and steel tanks for a diversified set of end markets throughout the United States.
Main Street led the majority recapitalization of the Company in January 2006 and partnered with KBK's existing owners and senior management and several co-investors to facilitate the transaction. Main Street's initial investment in the Company consisted of $5.75 million in first lien, senior secured term debt with equity warrant participation and a direct minority equity investment of $0.25 million. After Main Street's initial investment, KBK significantly expanded its operations and product offerings, including the construction of expanded manufacturing facilities, the addition of a new manufacturing facility which expanded the Company's manufacturing footprint and capabilities, the addition of several patents and new product developments and the expansion into several new end markets. Over the life of its 20-year investment in the Company, Main Street extended revolving line of credit commitments, invested an additional $9.9 million in first lien, senior secured term debt, and invested an additional $0.4 million in equity to support the Company's growth strategy, resulting in cumulative debt investments of $15.6 million and a total equity investment of $0.7 million.
Main Street realized a gain of $17.3 million on the exit of its equity investment in KBK and also received cumulative dividends of $25.1 million over the life of its equity investment. As a result, on a cumulative basis since Main Street's initial investment in January 2006 and taking the realized gain and dividends into consideration, Main Street realized an annual internal rate of return ("IRR") of 127.2% and a 62.7 times money invested ("TMI") return on its equity investment in KBK. On a cumulative basis including Main Street's debt, warrant and equity investments in the Company, Main Street realized an IRR of 27.7% and a 3.5 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 solutions 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
View original content:https://www.prnewswire.com/news-releases/main-street-announces-exit-of-investments-in-an-existing-portfolio-company-302659416.html
SOURCE Main Street Capital Corporation
Generates $17.3 Million Realized Gain from the Exit of Equity Investment in KBK Industries, LLC
HOUSTON, Jan. 13, 2026 /PRNewswire/ -- Main Street Capital Corporation (NYSE: MAIN) ("Main Street") is pleased to announce that it recently fully exited its debt and equity investments in KBK Industries, LLC ("KBK" or the "Company") upon the sale of the Company to a strategic acquiror. Founded in 1975 and headquartered in Rush Center, Kansas, KBK is a leading manufacturer of large-volume aboveground and belowground fiberglass and steel tanks for a diversified set of end markets throughout the United States.
Main Street led the majority recapitalization of the Company in January 2006 and partnered with KBK's existing owners and senior management and several co-investors to facilitate the transaction. Main Street's initial investment in the Company consisted of $5.75 million in first lien, senior secured term debt with equity warrant participation and a direct minority equity investment of $0.25 million. After Main Street's initial investment, KBK significantly expanded its operations and product offerings, including the construction of expanded manufacturing facilities, the addition of a new manufacturing facility which expanded the Company's manufacturing footprint and capabilities, the addition of several patents and new product developments and the expansion into several new end markets. Over the life of its 20-year investment in the Company, Main Street extended revolving line of credit commitments, invested an additional $9.9 million in first lien, senior secured term debt, and invested an additional $0.4 million in equity to support the Company's growth strategy, resulting in cumulative debt investments of $15.6 million and a total equity investment of $0.7 million.
Main Street realized a gain of $17.3 million on the exit of its equity investment in KBK and also received cumulative dividends of $25.1 million over the life of its equity investment. As a result, on a cumulative basis since Main Street's initial investment in January 2006 and taking the realized gain and dividends into consideration, Main Street realized an annual internal rate of return ("IRR") of 127.2% and a 62.7 times money invested ("TMI") return on its equity investment in KBK. On a cumulative basis including Main Street's debt, warrant and equity investments in the Company, Main Street realized an IRR of 27.7% and a 3.5 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 solutions 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
View original content:https://www.prnewswire.com/news-releases/main-street-announces-exit-of-investments-in-an-existing-portfolio-company-302659416.html
SOURCE Main Street Capital Corporation