Main Street Capital’s $42.5M Bet on Doral Corporation: A Masterstroke in Specialized Industrial Services

The industrial services sector may not grab headlines like tech or biotech, but it’s the backbone of global infrastructure. Main Street Capital’s $42.5 million investment in Doral Corporation, announced on May 22, 2025, isn’t just a financial transaction—it’s a strategic play on an undervalued niche with outsized growth potential. Let’s unpack why this deal matters and why investors should take note.

The Investment Structure: Debt + Equity = Smart Risk Management

Main Street’s recapitalization of Doral combines first lien senior secured debt and equity, a classic “one-stop” financing approach that minimizes execution risk. The debt component provides immediate liquidity for operations, while the equity stake aligns Main Street’s interests with Doral’s long-term success. This structure is particularly effective for lower middle-market companies like Doral, which lack the scale to attract institutional investors but are too specialized for generic financing.

Doral Corporation: The Undervalued Specialist

Founded in 1972, Doral is a Milwaukee-based firm specializing in rigging, millwrighting, machinery moving, and material handling installation—services that underpin critical industries like construction, supply chain logistics, and food production. These are not glamorous businesses, but they’re indispensable. Consider this: every new factory built, every piece of heavy equipment relocated, or every warehouse upgraded relies on Doral’s expertise.

The company’s client roster spans sectors with steady demand—supply chain, wastewater, and food & beverage—sectors less prone to cyclical volatility. In a world where infrastructure spending is accelerating, Doral’s niche services are poised for growth.

Main Street’s Playbook: A Proven Model for Mid-Market Gems

Main Street Capital has built its reputation on identifying undervalued companies in overlooked sectors. Its portfolio targets firms with $10M–$150M in annual revenue, precisely Doral’s size. The firm’s strategy—recapitalizations, management buyouts, and growth equity—is tailor-made for businesses like Doral, which can scale with targeted capital but lack access to public markets.

The 9.38 P/E ratio and 6.79% revenue growth reflect Main Street’s disciplined approach. Even the recent Jehoshaphat Research report alleging valuation discrepancies is a red herring: the firm’s 19-year dividend streak and supplemental $0.30/share dividend in June 2025 underscore its financial resilience.

Why This Deal Signals Opportunity Now

1. Structural Tailwinds: Infrastructure spending, manufacturing recovery, and supply chain resilience are global priorities. Doral’s services are non-discretionary and recession-resistant.
2. Main Street’s Credibility: The firm’s track record of “one-stop” financing reduces execution risk and ensures Doral can focus on growth, not capital constraints.
3. Valuation Dynamics: With a P/E under 10, Main Street trades at a discount to its growth trajectory. The Doral deal adds another high-potential asset to its portfolio.

The Risks? Manageable, Not Deal-Breakers

Critics might point to Main Street’s valuation scrutiny or Doral’s narrow industry focus. But the risks are mitigated:
- Doral’s diversified client base reduces dependency on any single sector.
- Main Street’s conservative leverage and $284M liquidity buffer (as of Q1 2025) provide a safety net.

The Bottom Line: This Is a Buy-and-Hold Opportunity

Main Street’s investment in Doral isn’t just a bet on a single company—it’s a bet on the industrial backbone of the economy. With a $42.5M infusion and a financial partner that’s mastered the mid-market, Doral is positioned to capitalize on its niche.

For investors, this deal offers two entry points:
1. Direct exposure to Doral’s growth through Main Street’s equity stake.
2. Leverage Main Street’s broader portfolio, which now includes another high-margin, recession-resistant asset.

The data is clear: Main Street’s strategy works. Now is the time to act—before the market catches on to this undervalued gem.

Invest now in Main Street Capital (MAIN) to secure a stake in Doral’s growth—and the infrastructure boom.