Quarterly report [Sections 13 or 15(d)]

EXTERNAL INVESTMENT MANAGER (Tables)

v3.26.1
EXTERNAL INVESTMENT MANAGER (Tables)
 3 Months Ended
Mar. 31, 2026
Investment Company [Abstract]  
Schedule of Information from External Investment Manager
Summarized financial information from the separate financial statements of the External Investment Manager as of March 31, 2026 and December 31, 2025 and for the three months ended March 31, 2026 and 2025 is as follows:
As of
March 31,
2026
As of
December 31, 2025
(in thousands)
Accounts receivable - advisory clients (1) $ 11,319  $ 11,415 
Intangible asset
 29,500  29,500 
Total assets $ 40,819  $ 40,915 
Accounts payable to MSCC and its subsidiaries $ 8,450  $ 8,734 
Dividend payable to MSCC and its subsidiaries 2,869  2,681 
Equity 29,500  29,500 
Total liabilities and equity $ 40,819  $ 40,915 
Three Months Ended
March 31,
2026 2025
(in thousands)
Management fee income $ 6,071  $ 5,752 
Incentive fees (1) 4,003  2,690 
Administrative services fees 186  174 
Total revenues before waivers 10,260  8,616 
Waiver of incentive fees (985) — 
Total revenues, net of incentive fee waivers 9,275  8,616 
Expenses allocated from MSCC or its subsidiaries:
Salaries, share-based compensation and other personnel costs (4,571) (4,551)
Other G&A expenses (895) (785)
Total allocated expenses (5,466) (5,336)
Other direct G&A expenses (10) (38)
Total expenses (5,476) (5,374)
Net income before taxes 3,799  3,242 
Tax expense (930) (748)
Net income $ 2,869  $ 2,494 
___________________________
(1)As of March 31, 2026 and December 31, 2025, MSC Income had an expense accrual of $2.1 million and $2.8 million, respectively, of incentive fees on capital gains to the External Investment Manager. MSC Income accrued $2.8 million of incentive fees on capital gains in the fourth quarter of 2025, of which $0.6 million was reversed in the first quarter of 2026. However, no capital gains incentive fees were contractually payable to the External Investment Manager as of March 31, 2026 and as a result no income accrual was recorded by the External Investment Manager during any period.