MAIN - Earnings call transcript Q3 2020 | Main Street Capital Corporation

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Operator

Greetings and welcome to Main Street Capital Corporation’s Third Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host Zach Vaughan with Dennard Lascar, Investors Relations. ahead. go Please

Zach Vaughan

yesterday will and is us operator XXXX everyone. you operating press Thank conference third the Thank financial on quarter Main an was good Investors the remain access the will Street joining be call and release a replay issued of for Main This Relations section quarter that Capital today’s for XX. of details November of until call. the yesterday’s company’s completion the beginning document you, available results. Street morning company’s afternoon release. available hour, in Corporation’s Information website earnings third call to the and at included mainstcapital.com. A how earnings after available on in replay

is date no Many and Please longer use call of the as therefore being materially risks, broadcast or We advised anticipates, statements. Actual November and replay Today’s expressed forward-looking based advise management’s performance. on result from contain information these of projections accurate call on Street can also of required of live estimates, today words factors statements the with this Commission that intends, and Securities are can the be as in any expects, company’s XXXX and any unless homepage. accessed in other X, statements company’s call Internet on Main the or note assumes including, results the the statements which not that only as the this call are may reported should, and by on forth no obligation of and you implied that the expressions. factors speaks law. update will, conference set of are statements found similar be will identified website to transcript any These sec.gov. through such the listening can by or limited time differ uncertainties you these of these of no assumptions there company’s the may believes, reading. time-sensitive at may Exchange results but or future forward-looking of to be a information at be filings guarantees this as

Main will refer management investment GAAP information financial yesterday’s for including a press call, Hyzak. measures, comparable of discussed I Certain And has on and information distributable verified. this to to directly today’s including net independently not the from portfolio call, will was third-party non-GAAP income. discuss the financial now, companies Dwayne related to Street’s During been CEO, reconciliation these measures over to Please turn most derived call measures. release sources

Dwayne Hyzak

today. Thanks, thank you Zach. joining us Good everyone and for morning,

portion Chief our Q&A Joining during us Chairman everyone Executive Investment are Also our Nick for to and today our David times. safe Officer; the me call Managing want healthy and and staying hope Head we is unusual our start Market Middle Group. saying Meserve, President that are Director by Vince Smith, our our these of Investment and very call Foster, our prepared Magdol, joining for comments with CFO. and Brent of I

comment to for impact the Given comments few announcement dividend the the business, pipeline, quarters, the calls start some pandemic, our I the ongoing of management our quarters, and will our recent COVID-XX next pandemic. our two some and outlook investment updates. several other in for within regarding asset investment call impact overall performance third quarter, the activities similar will our I of with developments current today’s the our then last on

health portfolio questions. to future call, and expectations. take to our will After ongoing working and impacts prioritize employees of have employees We of continue through efforts and the investment happy the pandemic. the we we portfolio. conference my will results on these and companies, teams throughout comments, actions the efforts Following be our our greatly David continued we of be the last our to appreciate management provide ongoing additional portfolio, while Since financial investment their your the pleased comments with strategy, Brent in and investment well-being individuals pandemic which of proactively and and very

year, recover a in million the the be meaningful increase stabilized our performance we last allowing environment and a us in the our across investments per quarter. $XX our call improve with the net of pleased to of vast this depreciation started experienced share While majority that companies third across appreciation economic X% to challenging, net portion has unrealized earlier since and value are has of we to continued asset very the portfolio

We provided by the in leadership continued to portfolio we these investment of feel the value about currently quality good overall the improvement our expect and see recovery and continue to future teams fair companies and quarters. management of

manage in that the confident are continued on In and investments pleased we liquidity exist and impacts companies of current to strategies the our our both capital despite loan will private middle-market lower we strong with allow structure execute addition, our executing we continue and new to the portfolio to opportunities. the conservative investment and have success remain our that and in pandemic, have and successfully loan lower us of on through position attractive, private to pipeline challenges middle-market that opportunities

to been which pleased we agreement through very investment the recent MSC Fund, our Income as with renamed Fund. are advisor of Income sole which We an HMS also became closing has

this the to while to grow plans about positioning this managed excited and We asset fund Street unique within our to strategy stakeholders. overall management our are executing benefit internally future, our our business our Main for continue also provide for structure

our and in growth asset progress have portfolio the organically details look grow our we positive private pleased report are in confident good asset are in and we business of to the more our in the Brent we our management middle-market DNII quarters, new continue that to to that and we will future the our management opportunities internal and make are sharing companies, business in initiatives coupled quarter near see also benefits upon additional developments forward third Based seen future to to we quarter strategies, which existing future. for with We in increases our expect the point cover investment income, investment the our low the in DNII and we attractive lower fourth represented loan net detail. or seeing distributable in the

decrease reflect liquidity pandemic overall partly in due is a the impacts an back the income status we in dividend significant our from that approaches third And amount portfolio pandemic the income issue, response the the results of number to most the turning the pandemic. many Now, managing the in realized of investments for results quarter, these decrease subside. conservative the dividend of increase investments impact taking on as will confident our continued temporary remain specifically at We of and are in their we negative non-accrual end. economy, believe the equity our this on to and in companies dividend capital the recover in to quarter of income the

also benefits advantages shareholders, March, these regular and an level alignment significant underperforming best XXXX unchanged result quarter each first of our week, possible operating our interest $X.XXX business, capital focus together end, strong continues management comfortable through dividends our investments pipeline, maintaining of a from our share that of investment increasing of strong diversified with the as stable our strategy, monthly those Despite payment the the declared conservative To our maintain of our our with the negative position, our fourth and structure quarter our to that Board liquidity forward. to combined amount Our quarter. on with per asset is portfolio, our this differentiated outcome monthly impact earlier investment the we and in payable our investment efficient DNII with resulting going February dividends to January, the dividend from stakeholders. and items in monthly working team for of structure realize commitment for remain a of level the

turning our Now, above the by activities company pipeline, $XX one in completed today, two middle-market our as investments quarter and And pipeline, our as an characterize lower in middle-market I of investment to financing of investment portfolio million including new would average. existing lower quarter, acquisitions investment the for we current of our and third investment companies. in

several in follow-on current business various growth be are existing on expect as strategy and are in increasingly in actively in investments lower attractive pipeline additional execute we companies this the our to close we middle-market opportunities. Also with continue comfortable have investment companies new to are looking opportunities to portfolio pipeline our investment conditions that We their several active in more and included the very fourth quarter.

partner leading debt permanent last partner two for and business ability believe and low in and to combined over investment investment with that equity have for companies believe owners favorite we the to their estate decades the our to planning that management also owners their and experiences environment. invest us teams, as We entrepreneur the the partner refocus in we caused our offering last many middle-market and the months these long-term current the be positions priorities. as unique a And industry consistent financial historical companies few for our

on third the loan consistent our in our quarter, During net by investment stated with in on million portfolio portfolio, our of decreased this objectives. growing the focus resulting $X.X while we quarter, non middle-market portfolio a our private $XX continued lower basis by middle-market the growth successful million, previously

and Street in would I to to at closing, a that, I investing continued million basis, today, collective officer quarter. the $XXX,XXX On loan investment characterize private our during $XX regular turn Main the approximately And our of approximately owns and director shares of as end. be group call has valued average. at pipeline purchases As over our With quarter David. shares, group will officer our director

David Magdol

good Thanks, everyone. Dwayne morning and

third portfolio quarter, and in for visibility companies. negative his remarks improved lessen of of As during Dwayne to highlighted our impact began the COVID-XX the

companies As a for this to compared saw stabilized year. environment result, general portfolio as existing we our earlier the

the perceived a new negative close in quarter, tax loan to sale due saw around meaningful lower to which private also to we we owners uncertainty We investment the uptick held our portfolios, in of their opportunities of significant fourth privately Presidential and expect consequences the actionable part quarter. and attribute of businesses. concerns the related seeking portion this in business a middle-market for increase election potential During

fourth growth of continue of and value quarter, the companies the several middle-market middle-market can saw existing the to a initiatives. external the quarter XXXX. further should we believe accomplish in opportunistic we beginning acquisitions, expect trend acquisitions we these will Opportunistic in achieved companies creation our lower the lower appreciation through our make contribute from also During portfolio tuck-in long-term portfolio equity

a seasoned Our prolonged type. security public and company. of dislocation This serve us a this of adjusted as leverage portfolio our nature to differentiated of portfolio, investment senior in cornerstone and over middle-market intentional this X. debt modest, the business our has of company EBITDA portfolio lower with time industry of continues segment median X.X our diversification ratio during of with X the vintage Because end-market, net market XX well-diversified ratio well strategy and a to of median to philosophy our by to years our been adjusted interest X.X total EBITDA to remains senior

XX, more September spanning than of XX XXX industries. had across companies we As investments in portfolio

investment largest last our total of investment The X.X% of majority and income less portfolio our assets represented our Our investments portfolio the X% investment end than XX company income. for and quarter value our of of fair of our at represented company X.X% total approximately months. vast portfolio

fourth only the earlier as covering our of have be of consistently to for to instead our companies intend disruption purposes support to equity year. we from we those quarter achieve having from appreciation the the period third continued is make health have view We have quarter, consistent and the of back our maintain they quarter. continue quarter, expected contributions was encourage with appropriate goal at an as to resume overall lower do distributions to was and not our in XX to lower managers’ dividends distributions companies end. year distributions portfolio companies this now that portfolio are with of Street distributions as portfolio of done cash During compared decided comfortably as Street lower be to our our certain received assist our continues Main when to the as a Management, so. of positive in same our companies last Main to in the when make choose the it with we recent making indication most evolve effort experienced investments prudent to well-diversified, in to past. portfolio XX unrealized our market this with portfolio This significantly companies income In distributions companies monthly companies get to portfolio periods from the what It portfolio middle-market to we prior dividend middle-market our liquidity

middle-market investment investments after our quarter including $XX principal aggregate million approximately lower included resulted investment, which and approximately one Our in third an activity investment million, of several $XX of of in repayments capital increase return middle-market in of middle-market new invested debt portfolio. equity million net of lower in investments $XX a middle-market the from lower lower

XXX% At We our and cost companies investments middle-market our aggregates end, is billion gain a of our representing also basis. lower $X of river approximately middle-market fair lower debt $X.X quarter portfolio exited investments million. in equity in realizing which included of value, XX

basis. in in $XX cost investments private million portfolio loan activity commitments in approximately X companies, new and Our investment representing in third $XX million quarter included the

As fair we portfolio quarter, status value on $XXX The during of this of cost. in a of fair fair we had the XX end related In the middle-market decrease unique of private in in companies during XX total investment at $XXX across investments of X.X% Street’s the non-accrual loan investment Main a of portfolio, million. of the investments of portfolio quarter, portfolio of net XXX% total XX X.X% and million we quarter million approximately basis $X.X XX, had increase and and comprised companies approximately $XX our approximately And was fair net had portfolio value. representing basis which cost at million. included September this value approximately we at value approximately portfolio of total cost had investments the

reduce proactively sponsors management these financial status we with X investments companies. the investments Our current of to and on through expectation of X to by work during non-accrual continue is that will quarter the as number fourth investments teams non-accrual these we

new the intend private make investments and thoughtfully outlook of loan opportunities. focus primarily XXXX, lower the for remainder our efforts we in During to continuing to on middle-market

to capital been lower debt is and in us and ability to the businesses environment, differentiator important solutions and always middle-market of our flexible debt provide their to advisors. move for equity Our outside provide privately transaction long-term close ability particularly the quickly held and has XXX% equity key a business. for In smaller current our a

to results, deploy shareholder proven and profiles capital we very We Brent will be are to strategy. investment to that, confident create adjusted current cover structure the attractive turn significant and liquidity able this value I With that risk environment position. in with return prudently our the with we capital to financial intend will call over

Brent Smith

Thanks, David.

debt primarily a investment in for the decrease Our third in certain when last change due investments income includes investment million quarter income, of LIBOR income impacts in a lower lower total levels The a to XXXX interest driven same of of income by from due COVID also third income decrease year. the rates. of to the million decreased quarter period a in and $XX to related $X.X the accelerated total to in compared total decrease dividend to primarily over pandemic negative the the

$XX.X activities excluding assets. period and unrealized three on million income. of The million a on the gain increase $XX.X portfolio, net Our partially expense, dividend million share-based operating prior of investment related loss related net primarily the of our quarter, appreciation of due non-cash deferred to to plan We deferred total expense $X fair exit appreciation ratio realized during expenses, third the primarily expenses, appreciation investment increased during on excluding million middle-market $X.X million recorded our million of compensation our net a to interest portfolio, compensation to a of third our as the the appreciation of over to $XX.X allocation $X.X losses XX-month quarter net the our net middle-market our of We of a third lower value appreciation an annualized of net loan by the external compensation lower investment, a appreciation investment of quarter, in portfolio, operating middle-market $X.X total middle-market it million offset of of $XX.X increase in on year income to private on a $XX.X same from investments by net $X.X realized of trailing percentage the expense, portfolio manager during on third related primarily of of $XX and million services middle investment. we basis. a on provided operating $X.X benefited and basis by our relating market assets recorded million expenses our was an restructure total through investment approximately the for other for portfolio, realized to to X.X% average million of the our manager. relating X.X% million million and the the of external The a quarter

for $XX.X increase net results assets operating the Our in a million $X.XX per third quarter share. or in resulted net of

overall strong liquidity million. our approximately total is $XXX currently and as liquidity Our capitalization remains

continued increased that quarter, $XXX third notes equity also the our on we position to were by have outstanding We continue in our continue credit issuing have grade XXXX and follow-on in overall mature investment enhance future. our that to strong us well-positioned $XX program. our approximately we the issuance capacity April feel million and access proceeds raising our leverage, revolving the by During conservative facility ATM $X for to under liquidity net million to million liquidity to and capital pleased recently

now and pandemic we forward our income of of to to we $X.XX as begin the to recover distributable to operator over the few $X.XX expect impacts us from next over generate so rate on the call distributable net With the back investment will quarter, income can the set per net expectation with our the share questions. results pace to dividend look monthly we that, quarters. take fourth will any I As investment turn a that and cover we

Operator

Instructions] comes first Please go from ahead. question Dodd Thank [Operator Our Robert you. Raymond James. with

Robert Dodd

guys. Hi,

of On the talking that rebound same recession, from situation that’s and a depressed three the your for level, overall the because sustainable dividend up balance income X-year to and catch first we to XXXX? confidence out now that’s dividend of beginning a depressed was was in distributions quarters not has the last dividend of QX, levels a versus what’s companies some that in starting terms and X of years, not obviously for it into about income which just your is are have portfolio trend recession, you

Dwayne Hyzak

Thanks, Robert. that significantly part recovering there we of management it teams conditions portfolio touched business that reason that their is about is on What is couple view I the would the start say we ago. the that of dividend today as comments income across our prior current expect better have quarters our was the to than

built more they that have to more get they over in months couple take will opposed business. So be all they liquidity. and that will the their We liquidity in approach in comfortable, expect fourth of think retain pay that liquidity they don’t be quarter, out paying to to we them utilizing to continue out the that as as their it gradual last continue dividends their to comfortable for

continue the one-time four that results and the more to expect of quarters that three to X be don’t to over and retained comfortable think be will releasing economy be we we something continue that So more as will our and liquidity play they the overall they event, next last will heals have months. improve over that some out it it a

Robert Dodd

that. appreciate I it. Got

potentially week be planning changes in now in tax change pipeline, an QX there low quickly? or but the on as that to kind I capital the around different, motivated things by that won’t uptick but given retirement you Is expectations was changing tax, comment seems that and seems pipeline likely David’s maybe the a of things pretty part and tax It gains dramatically, granted the we seem of net David, changes ago thought it to seem shape of seem that tax. middle-market, else probably to more any that, expectation through On material next was about year know, pipeline pretty to go be year. – into there as might or next anything the

Dwayne Hyzak

Yes.

decision-making business folks and So, the are this of owners take year to with that earlier far in tend at place taxes keenly community as as private looking a we on focused liquidity. deal lot their

election, that majority anyway, those shift you we looking their disruption people went that are minority top impacted a taxes in business perhaps, from really when for sale and sale, So, but in owners get liquidity noise mind. the to were the of for to will find around

with awareness And again, closed think end. of to get I fear who the is year certainly irrespective a a push of before some is tax not office, lot offers activity happens, there what forward that So, what we and of exclusive to more actually heightened and and of a of uncertainty in it a than transactions is move that’s But changes, see. else. it’s to anything

Robert Dodd

filed you expect quick, expect Got expect expect back to to is got of can I XX? of that bankruptcy, obviously you because real XX off exit or off put and I the QX? you to approval? X your is have then more your them appreciate ones have you if said companies you or there on restructure to drop mean, are that. those I it. drop And some in X One in non-accruals those portfolio and that it,

Dwayne Hyzak

have to be company specific combination upon had over I both of think and the of couple financial last equity sits have with will teams doing will owners sponsors deal through company the of all the management and it we quarters. and with where a what the of to today the issues that companies It those. work been those they based be

and driver. his that just It’s a expect quarter. through move said fourth of will of one decreases drive expect would would outcomes. in do other, comments, non-accruals We David don’t there see is that a the a company-specific those I So into issues number of we combination have, think the to or number to work that the real as

Robert Dodd

Thank it. appreciate I you.

Dwayne Hyzak

you. Thank

Operator

comes question Bryce Next ahead. Rowe Please with National from Securities. go

Bryce Rowe

morning, Dwayne Brent. David Thanks. and Good and

Dwayne Hyzak

morning, Bryce. Good

Bryce Rowe

I maybe the to morning, – sole HMS. And you to wanted wanted advisor. wanted of but maybe there, good change being follow-up to some Yes, the to on I follow-up talk Dwayne. Robert’s about on questions the all a now from first

the you management obviously At there. am the charge that the, your fee decrease saw in of structure? to wrong. that Can will base that? about earning I I So perspective, kind changes incentive for am you what, from guess, services Now talk not have I I point, made the And are this assuming an fee you fee. the you any incentive maybe

Dwayne Hyzak

Yes, Bryce, of fees. there is to incentive portion no management the, changes the to fee the

we said, as So reduce fee, made to was only the X% to the X.XX%. base from change you

terms visibility it. have earning to the not been In fee, incentive earning of we

relationship. before both well, broader be, main dividend have you there we quarters few touched change incentive from any but as expect it with to fee to impacts economy to to last And given the But side, upon fees any Over we believe so dependent several there. the it’s have quarters, incentive fees XX, going obviously, that COVID, be visibility earned last QX is just will quarters, we XXXX the of couple to street was expect either and since recovery, on, income just that or of a earned the calculation, in don’t the it’s QX earn we the the on of I from the QX time then that incentive income of no XX. we been in as

Bryce Rowe

that’s Okay, helpful.

third focus the last several picked activity In the mean, all pipeline, maybe been And terms the over activity, years. of for obviously, you the private the quarter. more in up here I loan of a it’s,

have seeing will could looks deals? of perspective terms kind like now, within participation And firms then from other in you network with, maybe do what of you expand terms of, So firms? recent you pricing have those tried that touch in deals curious, you are club on, up what to these your a to other the, you

Dwayne Hyzak

of with minute, provide either bringing the just we of said the in party’s us the with, will participating opportunities. investments. you more we new pricing other it’s relationships a us on to this Nick, party touch one doing that consistent at participate been I is, say their I opportunities factors. so a you would let couple with I are a in that, few we as combination here when we think activities and Sure, activity, or it’s or have for look for just leading, leading third the seeing years, Because have participate been where those parties a

I a side, they bring are say, with direct relationships the also you because people on been future would with a lead more senior have partner pricing, some, and ago, have that’s give Nick, good where seen in We seeing, let the a commentary on couple to have direct. we seeing to more been participate than on in you’re some go we seeing as transaction where And opportunities other we would them, years to have sponsors, lender with opportunities as that. have us what would opportunities, I are we

Nick Meserve

terms a kind and a much a overall, a less better turn company, not leverage, and points a is, year what say half that XX ago. combined that document is for of better also leverage. it’s lets together, we impacted less Yes pricing a a with probably better to maybe It’s and is non seeing are than But higher pure structures maybe basis XX you huge basis. to little movement. like But put you are on all COVID quarter seeing a

XX it’s straight loan overall range weaker basis are just same than are structure. point XXX same we basis as better XX more points, to potentially, If document, which but leverage, a doing is you reality probably seeing in a the

Bryce Rowe

you Obviously around any come dividend was you dividend curious or see if kind more of But increase. and quarter we did sometimes. more XHMS couple income dividend when of huge it a your middle than portfolio year? you in a the participants the you have think was More market I there solid contribute pick might second Maybe, am the half bit about digit that happens in it, up companies. companies Dwayne, Nick. thanks, quarter. were portfolio From saw a there Okay, in a it lot as Not discussion the see third don’t pickup, this Or level if Yes. did first Nice distributions to in of from pickup lower a all income a chunky, there more? quarter. of mind. the first

Dwayne Hyzak

dividends will to have a would think movement number There but change don’t individual the prior quarters. When companies I composition quarter composition QX at look or have a way significant per versus the in look contribute income, you the a companies, I material across wasn’t in if Yes, in and say see that different may at companies of do would where you portfolio the one see had that. of we another. they prior quarters, you difference overall higher dividend

Bryce Rowe

for kind or talked opportunities then and up the investment on below you a to but have in leverage, last appetite And bit bit, the okay. Okay, when one times, well targeted there BDC leverage in might space? about over the continue you is sheet are of just little a leverage are what me advantage take us seen within are year others go more So, past take leverage level operating more attractive have a still think we trying to on about to next help at be a balance what recessionary-like so? more little

Brent Smith

have quarters, to a after what And maintain benefits that, views our think we conservative position last with over doing I think I significant with dealt always of have we Yes, have of been couple the liquidity. of Bryce. reinforced. I the would that, wanted say

you a you to see a activity expect a a our if a our to new you increases overall, liquidity or not have look see as move two. for quarter in would would we But at around see basis, bit not I it we think from leverage may little on significant that in significant quarter-to-quarter, or long-term standpoint. profile, change I expect change expectations investment a

Bryce Rowe

it. Appreciate lot. a thanks Okay,

Brent Smith

Bryce. you, Thank

Operator

with Please [Operator Instruction] question next Our go Lee Kenneth comes from RBC. ahead.

Kenneth Lee

being net distributable further for near-term, what investment upon to Hi, just kind the terms in? potential your income assumptions foreseeing just am thanks wondering you expand key drivers question. I could of are of taking comments improving over my potentially for built improving Thanks. the in curious as if

Dwayne Hyzak

Ken. Thanks,

there So that which of completed we advisor is obviously, the sole a the to drivers is HMS. became One, there. through couple we transaction

relationship So release on in really we press week XX. to have last we that as not announced starts our X/XX October had that prior

QX, to have So, that be a full QX, in both will as as opposed driver for QX that versus X benefit quarter months. we income with the also additional incremental in benefit but

the one that’s drivers. So, of

we from our that, middle-market his our the companies improvement I will another responses given do gradual think, comments that seeing We quarters, dividend be some of we there. that David benefit but and on driver. here lower multiple income him are have expect improvement big be over to questions, touched or to

new driver mean, QX The So, QX in we the expect increase both is from where – and number to to investment we see big forward the sorry, continue I that move over been just QX last couple quarters. as we continue and activity. of have going to last forward

seeing robust activity lower we we are both business our As opportunities in private attractive and loans. touched middle-market very and on,

and improvement. QX in will see a we those then those investment incremental driver new that well, that on of come income that as from key as investments be QX So comes also investments

Kenneth Lee

That’s have. helpful. all Very Great. Thank very much. you I

Dwayne Hyzak

you. thank Okay,

Operator

We Please follow-up ahead. have go from Rowe. a Bryce

Bryce Rowe

Thanks.

to he am I is the could Sorry involved Dwayne, is I to just not Vince he I And there. belabor if sure back-up if try thought might play you available. call, get

AFFE all point know the start. We with we now that proposed have very the have have involved from comment changes. process moved the you come to the past for where I period been

wanted perspective all just so to or that Thanks. have related you to update get might that? And any

David Magdol

Bryce. Good question. Yes,

the are began the I run which We to officially period appeared were comment proposals the the is Federal when period, they past period in – released before because it in XX-day think are not fairly comment appeared begin recent. the Register actually until comment we didn’t Federal not Register, the and

So, we in are working others with industry SBIA the and comments. on-draft

comments SBIA’s expect and have as comment We others to turned draft I –we a first have actually made actually well. of a

So real us feel think and And proposed I of see way good objection there. we that again, pretty the well any think about don’t I rule we the all part anywhere it. gets

eligibility the probably to more there, in to get in more want that the complete back in applaud we so try will on encourage see that days. XX, that eligibility get us, to, we so next effort, effort us of, And industry, and to further XX terms you want

Bryce Rowe

Okay. there, group? you is that particular Or all index being with the S&P does with by on fall eligibility, way the spearheaded is And and it speak, a Vince that, getting to to, so of that kind will individual Russell? BDCs lobby

Vince Foster

are to we work. trying Well,

contacts direct, to enter with trying them. try to to into with our use negotiations and parent best to Russell company are try or discussions its substantive We

really refer. have hand, On they to the view, constituents their independent an per what want they se, know other don’t

disclosure, etcetera, is That a is there they so, And in so or than it? If funds, strongly XX%, XX% polling, try see to say I over funds, have on the process is don’t there? that and we are, relief. subscribers think portfolio, How has now they get that So acquired BDCs, it a probably is some fund there you to if are view? neutral how the Is their if you strong your if what pretty the other of topic. mutual in terms footnote held? consistency you, get reason you of are less they

why here. that’s are we so And

be they about how were expense funds is positive going to it footnote. know less have it’s tables, XX%, concerned out the Russell’s So general should don’t the that, than it part so. we of into way going and it movement. are the expense since in those positive that’s table to react of a that, having And to funds for but are, it’s in most We

Bryce Rowe

Got it.

a Okay, thanks lot.

Operator

I Q&A floor turn today’s concludes to like the closing to over session. management would for remarks. This

Dwayne Hyzak

look forward everyone our earnings everyone We thank morning. us to again joining talking release. We after to for yearend this

Operator

concludes This teleconference. today’s

lines You your participation. time. you at disconnect for may this Thank your

Main Street Capital (MAIN) 6 Nov 202020 Q3 Earnings call transcript