Main Street Announces Exit of Portfolio Investment
Generates $6.0 Million Realized Gain From Exit of Investment in Lamb Ventures, LLC
HOUSTON, July 11, 2019 /PRNewswire/ -- Main Street Capital Corporation (NYSE: MAIN) ("Main Street") is pleased to announce that it recently fully exited its debt and equity investments in Lamb Ventures, LLC ("Lamb's" or the "Company") upon the sale of Lamb's to a sponsor-backed strategic acquirer. Founded in 1987 and headquartered in Austin, Texas, Lamb's operates 18 tire and automotive repair retail locations throughout the greater Austin area, offering a full range of automotive aftermarket repair and maintenance services under the Lamb's Tire and Automotive brand. Main Street realized a gain of $6.0 million on the exit of its equity investment in Lamb's, with this realized value representing an increase in value of $0.1 million above Main Street's fair market value of this investment as of March 31, 2019.
Main Street made its initial investment in Lamb's in 2008, consisting of a $4.0 million first lien, senior secured debt investment and a direct equity investment of $2.0 million. After the initial investment, Main Street made several follow-on debt and equity investments in Lamb's to support the Company's ongoing operations, and more recently, to support the Company's growth initiatives. On a cumulative basis since Main Street made its initial investment in 2008, Main Street realized an annual internal rate of return of 11.0% and a 2.2x times money invested return on its cumulative debt and equity investments in Lamb's, excluding debt and equity investments for real estate related to Lamb's operations.
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 portfolio. Main Street's lower middle market companies generally have annual revenues between $10 million and $150 million. Main Street's middle market debt investments are made in businesses that are generally larger in size than its lower middle market portfolio companies.
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SOURCE Main Street Capital Corporation
Released July 11, 2019