HMS Income Fund is a public, non-traded business development company (BDC) that focuses on income and capital appreciation. The company’s strategy is to make debt investments in syndicated middle-market companies as well as self-originated debt and equity investments in lower middle-market companies.
HMS Income Fund taps the experience and resources of Main Street Capital Corporation (“Main Street”), a publicly-traded BDC (NYSE: MAIN), through MSC Adviser I, LLC, a wholly-owned subsidiary that is the sub-adviser to the fund. The sub-adviser recommends and monitors all of HMS Income Fund’s investments, targeting investment opportunities that arise from ownership transitions, strategic acquisitions, business expansions and other growth initiatives, primarily for later stage businesses. Since its inception, Main Street has specialized in providing long-term loans and equity capital to middle-market and lower middle-market U.S. companies.
There are substantial costs associated with an investment in this offering. An investor must review the fees and expenses in the prospectus prior to investing.
Please note: Investors are not acquiring an interest in Main Street.
1There is no assurance that the Fund will pay distributions. The amount and timing of distributions are not guaranteed. Investment income has been insufficient to fund distributions due to the incentive fee on income, which the Adviser and Sub-Adviser have agreed to waive. For the six months ended June 30, 2016, 61% of distributions were paid from net realized income from operations (before the waiver of the incentive fee on income), 2% came from the waiver of the incentive fee on income, and 37% came from distributions in excess of net investment income, which represents adjustments made to GAAP basis net investment income to arrive at taxable income available for distributions. If the advisors had not agreed to waive their fees, these distributions would have come from investors' paid in capital. Paying distributions from sources other than net realized income lowers an investor's overall return.
2Based upon the calculated NAV, the pricing committee reviews the offering price to ensure that shares are not being offered at a price, after deduction of selling commissions and dealer manager fees, below NAV per share. Periodic valuations will cause offering price to fluctuate.
Annualized Distribution Rate1
Current Per-Share Offering Price2
For more information, read the prospectus for HMS Income Fund. Copies of the prospectus may be obtained from Hines Securities, Inc., 2800 Post Oak Blvd., Suite 4700, Houston, Texas 77056 or by calling 888.446.3773. You should read the prospectus carefully in order to fully understand the objectives, risks, sales charges, fees and expenses of HMS Income Fund before investing or sending money.