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FAIR VALUE HIERARCHY FOR INVESTMENTS—PORTFOLIO COMPOSITION (Tables)
 9 Months Ended
Sep. 30, 2025
Fair Value Disclosures [Abstract]  
Schedule of Fair Value Measurement Inputs and Valuation Techniques
The following tables provide a summary of the significant unobservable inputs used in the fair value measurement of MSC Income’s Level 3 portfolio investments as of September 30, 2025 and December 31, 2024:
Type of
Investment
Fair Value as of
September 30,
2025
(in thousands)
Valuation TechniqueSignificant
Unobservable Inputs		Range (3)Weighted-Average
(3)(4)		Median (3)
Equity investments$312,604 Discounted cash flowWACC
11.4% - 22.2%
14.6 %15.0 %
Market comparable / Enterprise valueEBITDA multiple (1)
5.1x - 8.9x (2)
6.9x6.8x
Debt investments$942,830 Discounted cash flowRisk adjusted discount rate (5)
8.0% - 18.1% (2)
12.6 %11.8 %
Expected principal recovery percentage
0.1% - 500.0%
99.5 %100.0 %
Debt investments$4,768 Market approachThird-party quote
14.5 - 70.0
47.940.5
Total Level 3 investments$1,260,202 
_____________________
(1)EBITDA may include pro forma adjustments and/or other add-backs based on specific circumstances related to each investment.
(2)Range excludes outliers that are greater than one standard deviation from the mean. Including these outliers, the range for EBITDA multiple is 2.0x - 13.5x and the range for risk adjusted discount rate is 5.7% - 40.6%.
(3)Does not include investments for which the valuation technique does not include the use of the applicable fair value input.
(4)Weighted-average is calculated for each significant unobservable input based on the applicable security’s fair value.
(5)Discount rate includes the effect of the standard SOFR base rate, as applicable.
Type of
Investment
Fair Value as of
December 31, 2024
(in thousands)
Valuation TechniqueSignificant
Unobservable Inputs		Range (3)Weighted-Average
(3)(4)		Median (3)
Equity investments$281,831 Discounted cash flowWACC
11.5% - 22.5%
14.8 %15.1 %
Market comparable / Enterprise valueEBITDA multiple (1)
4.9x - 9.0x (2)
6.6x6.5x
Debt investments$862,813 Discounted cash flowRisk adjusted discount rate (5)
8.5% - 18.0% (2)
13.2 %12.1 %
Expected principal recovery percentage
0.3% - 100.0%
99.7 %100.0 %
Debt investments$32,863 Market approachThird-party quote
21.0 - 99.4
82.984.5
Total Level 3 investments$1,177,507 
_____________________
(1)EBITDA may include pro forma adjustments and/or other add-backs based on specific circumstances related to each investment.
(2)Range excludes outliers that are greater than one standard deviation from the mean. Including these outliers, the range for EBITDA multiple is 2.0x - 17.0x and the range for risk adjusted discount rate is 6.8% - 38.3%.
(3)Does not include investments for which the valuation technique does not include the use of the applicable fair value input.
(4)Weighted-average is calculated for each significant unobservable input based on the applicable security’s fair value.
(5)Discount rate includes the effect of the standard SOFR base rate, as applicable.
Schedule of MSC Income Fund’s Level 3 Portfolio Investments
The following tables provide a summary of changes in fair value of MSC Income’s Level 3 portfolio investments for the nine months ended September 30, 2025 and 2024 (amounts in thousands):
Type of
Investment
Fair Value
as of
December 31,
2024
Transfers
Into
Level 3
Hierarchy		Redemptions/
Repayments		New
Investments		Net
Changes
from
Unrealized
to Realized		Net
Unrealized
Appreciation
(Depreciation)		Other (1)
Fair Value
as of
September 30,
2025
Debt$895,676 $— $(239,393)$292,734 $31,628 $(15,676)$(17,370)$947,599 
Equity277,553 — (12,627)5,909 (7,267)24,367 17,370 305,305 
Equity Warrant4,278 — — — — 3,020 — 7,298 
$1,177,507 $— $(252,020)$298,643 $24,361 $11,711 $— $1,260,202 
______________________
(1)Includes the impact of non-cash conversions. These transactions represent non-cash investing activities. See additional cash flow information in the Consolidated Statements of Cash Flows.
Type of
Investment
Fair Value
as of
December 31,
2023
Transfers
Into
Level 3
Hierarchy		Redemptions/
Repayments		New
Investments		Net
Changes
from
Unrealized
to Realized		Net
Unrealized
Appreciation
(Depreciation)		Other (1)
Fair Value
as of
September 30,
2024
Debt$838,125 $— $(169,492)$264,572 $2,180 $(17,380)$(166)$917,839 
Equity254,029 — (12,075)10,127 (27,394)17,987 166 242,840 
Equity Warrant741 — — 1,128 (90)169 — 1,948 
$1,092,895 $— $(181,567)$275,827 $(25,304)$776 $— $1,162,627 
_____________________
(1)Includes the impact of non-cash conversions. These transactions represent non-cash investing activities. See additional cash flow information in the Consolidated Statements of Cash Flows.
Schedule of MSC Income Fund's Investments at Fair Value Hierarchy
As of September 30, 2025 and December 31, 2024, MSC Income’s investments at fair value were categorized as follows in the fair value hierarchy for ASC 820 purposes:
Fair Value Measurements
(in thousands)
As of September 30, 2025
Fair ValueQuoted Prices in
Active Markets for
Identical Assets
(Level 1)		Significant Other
Observable Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Private Loan portfolio investments$750,912 $— $— $750,912 
LMM portfolio investments466,671 — — 466,671 
Middle Market portfolio investments26,631 — — 26,631 
Other Portfolio investments15,988 — — 15,988 
Total investments$1,260,202 $— $— $1,260,202 
Fair Value Measurements
(in thousands)
As of December 31, 2024
Fair ValueQuoted Prices in
Active Markets for
Identical Assets
(Level 1)		Significant Other
Observable Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Private Loan portfolio investments$677,878 $— $— $677,878 
LMM portfolio investments436,150 — — 436,150 
Middle Market portfolio investments39,402 — — 39,402 
Other Portfolio investments24,077 — — 24,077 
Total investments$1,177,507 $— $— $1,177,507 
Schedule of Investment Holdings
The following tables provide a summary of MSC Income’s investments in the Private Loan and LMM portfolios as of September 30, 2025 and December 31, 2024 (this information excludes Middle Market and Other Portfolio investments, which are discussed further below).
As of September 30, 2025
Private LoanLMM (a)
(dollars in millions)
Number of portfolio companies81 55 
Fair value$750.9 $466.7 
Cost$761.1 $369.9 
Debt investments as a % of portfolio (at cost)92.0 %69.8 %
Equity investments as a % of portfolio (at cost)8.0 %30.2 %
% of debt investments at cost secured by first priority lien99.9 %99.9 %
Weighted-average annual effective yield (b)11.3 %12.9 %
Average EBITDA (c)$31.5 $10.7 
___________________
(a)As of September 30, 2025, MSC Income had equity ownership in all of its LMM portfolio companies, and the average fully diluted equity ownership in those portfolio companies was 9%.
(b)The weighted-average annual effective yields were computed using the effective interest rates for all debt investments as of September 30, 2025, including amortization of deferred debt origination fees and accretion of original issue discount but excluding fees payable upon repayment of the debt instruments and any debt investments on non-accrual status, and are weighted based upon the principal amount of each applicable debt investment as of September 30, 2025. The weighted-average annual effective yield on MSC Income’s debt portfolio as of September 30, 2025, including debt investments on non-accrual status, was 10.4% for its Private Loan portfolio and 12.1% for its LMM portfolio. The weighted-average annual effective yield is not reflective of what an investor in shares of MSC Income’s common stock will realize on its investment because it does not reflect changes in the market value of MSC Income’s stock, MSC Income’s utilization of debt capital in its capital structure, MSC Income’s expenses or any sales load paid by an investor.
(c)The average EBITDA is calculated using a weighted-average for the Private Loan portfolio and a simple average for the LMM portfolio. These calculations exclude certain portfolio companies, including four Private Loan portfolio companies and three LMM portfolio companies, as EBITDA is not a meaningful valuation metric for MSC Income’s investments in these portfolio companies, and those portfolio companies whose primary purpose is to own real estate and those portfolio companies whose primary operations have ceased and only residual value remains.
As of December 31, 2024
Private LoanLMM (a)
(dollars in millions)
Number of portfolio companies84 57 
Fair value$677.9 $436.1 
Cost$697.5 $357.1 
Debt investments as a % of portfolio (at cost)93.9 %67.8 %
Equity investments as a % of portfolio (at cost)6.1 %32.2 %
% of debt investments at cost secured by first priority lien99.9 %99.9 %
Weighted-average annual effective yield (b)12.0 %13.0 %
Average EBITDA (c)$28.6 $10.8 
___________________
(a)As of December 31, 2024, MSC Income had equity ownership in all of its LMM portfolio companies, and the average fully diluted equity ownership in those portfolio companies was 9%.
(b)The weighted-average annual effective yields were computed using the effective interest rates for all debt investments as of December 31, 2024, including amortization of deferred debt origination fees and accretion of original issue discount but excluding fees payable upon repayment of the debt instruments and any debt investments on non-accrual status, and are weighted based upon the principal amount of each applicable debt investment as of December 31, 2024. The weighted-average annual effective yield on MSC Income’s debt portfolio as of December 31, 2024, including debt investments on non-accrual status, was 11.4% for its Private Loan portfolio and 12.2% for its LMM portfolio. The weighted-average annual effective yield is not reflective of what an investor in shares of MSC Income’s common stock will realize on its investment because it does not reflect MSC Income’s utilization of debt capital in its capital structure, MSC Income’s expenses or any sales load paid by an investor.
(c)The average EBITDA is calculated using a weighted-average for the Private Loan portfolio and a simple average for the LMM portfolio. These calculations exclude certain portfolio companies, including two Private Loan portfolio companies and three LMM portfolio companies, as EBITDA is not a meaningful valuation metric for MSC Income’s investments in these portfolio companies, and those portfolio companies whose primary purpose is to own real estate and those portfolio companies whose primary operations have ceased and only residual value remains.
The following tables summarize the composition of MSC Income’s total combined Private Loan, LMM and Middle Market portfolio investments at cost and fair value by type of investment as a percentage of the total combined Private Loan, LMM and Middle Market portfolio investments, as of September 30, 2025 and December 31, 2024 (this information excludes Other Portfolio investments, which are discussed above).
Cost:September 30, 2025December 31, 2024
First lien debt84.6 %85.2 %
Equity15.2 14.5 
Equity warrants0.2 0.3 
Other— — 
100.0 %100.0 %
Fair Value:September 30, 2025December 31, 2024
First lien debt76.2 %77.6 %
Equity23.2 22.0 
Equity warrants0.6 0.4 
Other— — 
100.0 %100.0 %
The following tables summarize the composition of MSC Income’s total combined Private Loan, LMM and Middle Market portfolio investments by geographic region of the United States and other countries at cost and fair value as a percentage of the total combined Private Loan, LMM and Middle Market portfolio investments, as of September 30, 2025 and December 31, 2024 (this information excludes Other Portfolio investments). The geographic composition is determined by the location of the corporate headquarters of the portfolio company.
Cost:September 30, 2025December 31, 2024
Midwest21.3 %21.5 %
West20.8 18.7 
Southwest20.1 18.2 
Northeast18.6 22.4 
Southeast17.1 17.0 
Canada1.1 1.2 
Other Non-United States1.0 1.0 
100.0 %100.0 %
Fair Value:September 30, 2025December 31, 2024
Southwest22.5 %20.4 %
Midwest21.8 22.7 
West20.8 18.4 
Northeast17.5 22.6 
Southeast15.4 13.8 
Canada1.0 1.1 
Other Non-United States1.0 1.0 
100.0 %100.0 %
MSC Income’s Private Loan, LMM and Middle Market portfolio investments are in companies conducting business in a variety of industries. The following tables summarize the composition of MSC Income’s total combined Private Loan, LMM and Middle Market portfolio investments by industry at cost and fair value as of September 30, 2025 and December 31, 2024 (this information excludes Other Portfolio investments).
Cost:September 30, 2025December 31, 2024
Electrical Equipment8.8 %4.6 %
Commercial Services & Supplies7.9 7.6 
Machinery7.4 7.8 
Professional Services5.8 6.1 
Internet Software & Services5.2 7.2 
Construction & Engineering5.0 2.1 
Distributors4.8 4.3 
Containers & Packaging4.6 4.5 
Diversified Consumer Services4.6 5.2 
IT Services4.6 4.6 
Chemicals3.4 0.4 
Leisure Equipment & Products3.3 3.5 
Auto Components3.0 1.7 
Hotels, Restaurants & Leisure2.8 2.8 
Textiles, Apparel & Luxury Goods2.7 2.8 
Specialty Retail2.5 2.0 
Communications Equipment2.3 2.9 
Health Care Providers & Services2.1 4.2 
Computers & Peripherals1.9 3.0 
Software1.7 1.6 
Energy Equipment & Services1.6 1.6 
Marine1.6 1.5 
Internet & Catalog Retail1.5 1.6 
Household Products1.4 1.7 
Food & Staples Retailing1.3 1.6 
Trading Companies & Distributors1.3 1.3 
Aerospace & Defense1.2 1.7 
Air Freight & Logistics1.1 0.9 
Diversified Financial Services1.1 2.3 
Media1.0 1.2 
Health Care Equipment & Supplies0.6 1.1 
Building Products0.4 2.2 
Other (1)1.5 2.4 
100.0 %100.0 %
___________________
(1)Includes various industries with each industry individually less than 1.0% of the total combined Private Loan, LMM and Middle Market portfolio investments at each date.
Fair Value:September 30, 2025December 31, 2024
Electrical Equipment9.0 %4.7 %
Machinery8.5 9.1 
Commercial Services & Supplies7.4 6.6 
Construction & Engineering5.7 3.0 
Professional Services5.7 6.1 
Distributors5.5 4.3 
Diversified Consumer Services5.1 6.0 
Containers & Packaging4.7 4.8 
IT Services4.4 4.5 
Computers & Peripherals3.8 5.1 
Internet Software & Services3.8 6.3 
Chemicals3.2 0.4 
Auto Components3.0 1.7 
Leisure Equipment & Products2.6 2.9 
Textiles, Apparel & Luxury Goods2.5 2.6 
Communications Equipment2.3 1.4 
Specialty Retail2.3 2.2 
Software2.1 2.1 
Health Care Providers & Services1.9 3.8 
Hotels, Restaurants & Leisure1.8 2.0 
Air Freight & Logistics1.5 1.4 
Energy Equipment & Services1.5 1.3 
Marine1.5 1.4 
Household Products1.4 1.8 
Aerospace & Defense1.2 1.7 
Trading Companies & Distributors1.2 1.3 
Diversified Financial Services1.1 2.3 
Food & Staples Retailing1.1 1.3 
Media1.0 1.5 
Internet & Catalog Retail0.9 1.4 
Building Products0.5 2.3 
Other (1)1.8 2.7 
100.0 %100.0 %
___________________
(1)Includes various industries with each industry individually less than 1.0% of the total combined Private Loan, LMM and Middle Market portfolio investments at each date.