Main Street Capital announced a $47 million minority recapitalization of a leading swim‑school franchise headquartered in Houston. The deal includes a first‑lien secured term debt and a minority equity stake, providing the franchisee with working capital and growth capital to expand its network of 40 locations across ten states.
The transaction aligns with Main Street’s strategy of delivering customized, long‑term debt and equity solutions to lower‑middle‑market companies. With more than $8.7 billion in capital under management, the firm recently reported Q3 2025 net investment income of $86.5 million and distributable net investment income of $92.7 million, underscoring its capacity to deploy capital efficiently.
Strategically, the franchisee’s strong brand presence and growth trajectory in the consumer‑service sector fit well with Main Street’s focus on diversified, high‑quality assets. The recapitalization supports the franchisee’s expansion plans, reinforcing its market position and providing a platform for further growth.
The transaction was completed on or around November 18 2025, the same day the investment was disclosed. While the equity stake remains minority, the exact percentage is not publicly disclosed. The deal adds to Main Street’s portfolio of lower‑middle‑market investments, which includes recent $81 million investment in a musculoskeletal care MSO and a $14 million investment in The Financial Risk Group.
The investment demonstrates Main Street’s continued ability to deploy capital in a diversified portfolio while maintaining a focus on consumer‑service businesses. It signals confidence in the franchisee’s growth prospects and the resilience of the sector, supporting the firm’s goal of delivering superior returns to shareholders.
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