Main Street Capital is Under Attack

Date: 2025-10-14 19:00:09

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Main Street Capital, ticker MAIN, is the best-performing business development company of all time. Since going public in October of 2007, their stock has delivered an average annual return of 17.83%, crushing the S&P 500, as well as every other BDC for that period of time. They’re one of only a couple of BDCs that have never gone through a dividend cut, and they’re the only company in this sector to not have to cut their dividend during the financial crisis. By prioritizing more equity positions in their portfolio as opposed to mostly first lien debt like most of their peers, they’ve done a fantastic job at picking good companies to invest in, and their results clearly show that.

As we all know at this point, Main Street Capital has had a brutal month so far. As of the making of this video, shares of MAIN are currently down over 15%, which I know a lot of investors are not used to seeing with this stock. It’s been a fantastic grower for a BDC, as most companies in this asset class don’t experience this consistent amount of share price appreciation. And likely most of my viewers know that it’s not just Main Street; the entire BDC sector has been falling hard over the past couple of weeks. But Main Street has fallen the hardest when compared to other companies in this sector, including Ares Capital, Hercules Capital, and Capital Southwest.  So this is going to be a good opportunity to talk about why this sell-off is happening in the BDC sector and why it’s more intense for Main Street Capital.

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