Main Street Capital Corporation · NYSE:MAIN
Main Street Capital — IPO Roadshow (November 2020)
85 slides from Main Street Capital's IPO roadshow presentation, Nov 6, 2020
Slide 1: Investor Presentation Third Quarter 2020
Main Street Capital CorporationNYSE: MAINmainstcapital.com Page 1 Investor Presentation Third Quarter – 2020 Main Street Capital CorporationNYSE: MAINmainstcapital.com
Slide 2: Disclaimers
Disclaimers Main Street Capital Corporation (MAIN) cautions that statements in this presentation that are forward-looking, and provide other than historical information, involve risks and uncertainties that may impact our future results of operations. The forward-looking statements in this presentat
Slide 3: Corporate Overview and Investment Strategy
Main Street Capital Corporation Corporate Overview and Investment Strategy 3rdQuarter–2020
Slide 4: Hybrid debt and equity investment strategy differentiates MAIN
Hybrid debt and equity investment strategy, internally managed operating structure and focus on Lower Middle Market differentiates MAIN from other investment firms Internally-managed Business Development Company (BDC) •IPO in 2007 •Over $4.3 billion in capital under management(1) – Over $3.1 billion
Slide 5: MAIN's unique strategy designed for sustainable growth in dividends
MAIN’s unique investment strategy, efficient operating structure and conservative capitalization are designed to provide sustainable, long-term growth in recurring monthly dividends and long-term capital appreciation to our shareholders Long-term focus on delivering our shareholders sustainable grow
Slide 6: Focus on LMM equity investments and efficient operating structure
Focus on LMM equity investments and efficient operating structure differentiates MAIN and provides opportunity for significant total returns for our shareholders Equity investments in LMM portfolio provide both the opportunity to grow net asset value (NAV) per share and generate recurring dividend i
Slide 7: MAIN Strategy Produces Differentiated Returns
MAIN Strategy Produces Differentiated Returns Enhanced Value Proposition - Three Ways to Win are Better Than One 1. Sustain and Grow Dividends •Efficient operating structure provides operating leverage to grow distributable net investment income, and dividends paid, as investment portfolio and total
Slide 8: Distributable Net Investment Income Per Share
Distributable Net Investment Income (“DNII”)(1) Per Share MAIN’s unique focus on equity investments in the Lower Middle Market provides the opportunity for significant NAV per share growth MAIN’s efficient operating structure provides significant operating leverage, greater dividends and greater ove
Slide 9: Lower Middle Market Investment Strategy
Lower Middle Market (LMM) Investment Strategy LMM investment strategy differentiates MAIN from its competitors and provides attractive risk-adjusted returns Investment Objectives •High cash yield from secured debt investments (10.8% weighted-average cash coupon as of September 30, 2020); plus •Divid
Slide 10: MAIN targets LMM investments in established, profitable companies
MAIN targets LMM investments in established, profitable companies Characteristics of LMM provide beneficial risk-reward investment opportunities Large and critical portion of U.S. economy •175,000+ domestic LMM businesses(1) LMM is under-served from a capital perspective and less competitive Ineffic
Slide 11: Middle Market Debt Investment Strategy
Middle Market Debt Investment Strategy MAIN maintains a portfolio of debt investments in Middle Market companies Investment Objective •Generate cash yield to support MAIN monthly dividend Investments in secured and/or rated debt investments •First lien, senior secured debt investments •Floating rate
Slide 12: Asset management business
MAIN’s asset management business represents additional income diversification and the opportunity for greater shareholder returns MAIN’s internally managed operating structure provides MAIN’s shareholders the benefits of this asset management business In May 2012, MAIN(1) entered into an investment
Slide 13: Highly regulated structure provides advantages and protections
Highly regulated structure provides significant advantages and protections to our shareholders, including investment transparency, tax efficiency and beneficial leverage Operates as a Business Development Company •Regulated by Securities and Exchange Commission - 1940 Act •Publicly-traded, private i
Slide 14: Internally managed structure
“Internally managed” structure means no external management fees or expenses are paid, providing operating leverage to MAIN’s business; MAIN targets total operating and administrative costs at or less than 2% of assets Main Street Capital Corporation (BDC/RIC) Assets: ~$2,160 million Line of Credit:
Slide 15: Management team
Dwayne Hyzak; CPA(1)(2) CEO • Co-founded MAIN; Joined Main Street group in 2002; affiliated with Main Street group since 1999 • Director of acquisitions / integration with Quanta Services (NYSE: PWR) • Manager with a Big 5 Accounting Firm’s audit and transaction services groups David Magdol(1)(2) Pr
Slide 16: Recurring monthly dividend never decreased
Recurring monthly dividend has never been decreased and has shown meaningful (86%) growth since IPO Trailing Twelve Months Monthly Dividends Per Share $2.50 Based upon the current annualized monthly dividends for the first quarter of 2021, the annual effective yield on MAIN’s stock is 8.6%(1) MAIN h
Slide 17: Investment Portfolio
Main Street Capital Corporation Investment Portfolio 3rdQuarter–2020
Slide 18: Total Investment Portfolio
Total Investment Portfolio Diversity provides structural protection to investment portfolio, revenue sources, income, cash flows and shareholder dividends Includes complementary LMM debt and equity investments, Private Loan debt investments and Middle Market debt investments Total investment portfol
Slide 19: Total portfolio by industry
Machinery, 7%Construction & Engineering, 6% Aerospace & Defense, 6%Health Care Providers & Services, 5% Internet Software & Services, 5%Commercial Services & Supplies, 5% Professional Services, 5%Energy Equipment & Services, 5% Media, 4%IT Services, 4% Leisure Equipment & Products, 4%Hotels, Restaur
Slide 20: Invested Capital by Transaction Type and Geography
Invested Capital by Transaction TypeInvested Capital by Geography (2) LBO/MBO 39% 21%20% 19% 12% 45% 26%14% 4% Acquisition Growth Capital Recapitalization/ Refinancing (1) Excluding MAIN’s Other Portfolio investments and the External Investment Manager, as described in MAIN’s public filings, which r
Slide 21: LMM Investment Portfolio
LMM Investment Portfolio consists of a diversified mix of secured debt and lower cost basis equity investments 70 portfolio companies / $1,228.1 million in fair value •47% of total investment portfolio at fair value Debt yielding 11.6%(1) (66% of LMM portfolio at cost) •97% of debt investments have
Slide 22: LMM portfolio high quality seasoned assets
LMM Investment Portfolio is a pool of high quality, seasoned assets with attractive risk-adjusted return characteristics Median LMM portfolio credit statistics: •Senior leverage of 2.7x EBITDA through MAIN debt position •2.7x EBITDA to senior interest coverage •Total leverage of 2.8x EBITDA includin
Slide 23: LMM portfolio by industry
Machinery, 10%Professional Services, 10% Construction & Engineering, 9%Energy Equipment & Services, 8% Electronic Equipment, Instruments & Components, 7%Food Products, 6% Software, 5%Leisure Equipment & Products, 5% Internet Software & Services, 4%Containers & Packaging, 4% Media, 3%Hotels, Restaura
Slide 24: LMM Invested Capital by Transaction Type and Geography
Invested Capital by Transaction Type Invested Capital by Geography (1) LBO/MBO Recapitalization/ Refinancing 38% 52% 23%19% 31%13% 14% 4% 6% Acquisition Growth Capital (1) Based upon portfolio company headquarters
Slide 25: LMM Debt Investments
LMM Debt Investments Original Term Total Interest Coupon (1) < 5 years> 5 years 1% 4% N/A – Floating Interest Rate (Wtd. Avg. of 10.4%)(2) 38% 11% 14% Current Interest 13% Current Interest 95% 1% 7% <10% Current Interest 36% 5 years 10% Current Interest 11% Current Interest 12% Current Interest Debt
Slide 26: Private Loan Investment Portfolio
Private Loan Investment Portfolio Private Loan Investment Portfolio provides a diversified mix of investments and sources of income to complement the LMM Investment Portfolio 68 investments / $743.7 million in fair value •29% of total investment portfolio at fair value Average investment size of $12
Slide 27: Middle Market Investment Portfolio
Middle Market Investment Portfolio provides a diversified mix of investments and diverse sources of income to complement the LMM Investment Portfolio and a potential source of liquidity for MAIN’s future investment activities 42 investments / $441.3 million in fair value •17% of total investment por
Slide 28: Private Loan & Middle Market Portfolios by Industry
Private Loan & Middle Market Portfolios by Industry (as a Percentage of Cost) Aerospace & Defense, 10%Health Care Providers & Services, 8% Commercial Services & Supplies, 6%Internet Software & Services, 6% Communications Equipment, 6%IT Services, 6% Machinery, 5%Diversified Telecommunication Service
Slide 29: Diversified Private Loan & Middle Market Investments
Diversified Private Loan & Middle Market Investments (as a Percentage of Cost) Invested Capital by Transaction TypeInvested Capital by Geography (1) Recapitalization/ Refinancing 39% 40% 20%20% 24% 19% 2% Growth 22%14% LBO/MBOAcquisition (1) Based upon portfolio company headquarters and excluding an
Slide 30: Financial Overview
Main Street Capital Corporation Financial Overview 3ndQuarter–2020
Slide 31: MAIN Financial Performance
MAIN Financial Performance Total Investment Income ($ in millions) Distributable Net Investment Income(1) ($ in millions) Year over Year GrowthYear over Year Growth $260.0 $240.0 8%15% 13% 4%(12)%(2) $180.0 10% 17% 14% 1%(15)%(2) $220.0 $200.0 $180.0 $160.0 $140.0 $120.0 $100.0 $80.0 $60.0 $40.0 $20
Slide 32: Growth in Portfolio Investments and DNII per share
MAIN has consistently grown Portfolio Investments and DNII per share ($ in millions, except per share data) $2,800 $2,600 $2,400 $2,200 $2,000 $1,800 $1,600 $1,400 $1,200 $2.09 $1.77 $2.17 $1,286 $2.39 $2.29 $2.31 $1,997 $1,800 $1,563 $2.56 $2,171 $2.76$2.66 $2,602 $2,454 $2,585 $2.29 $2.80 $2.60 $2
Slide 33: Internally managed operating structure provides operating leverage
MAIN’s internally managed operating structure provides significant operating leverage and greater returns for our shareholders “Internally managed” structure means no external management fees or expenses are paid Alignment of interest between management and investors •Greater incentives to maximize
Slide 34: Significant Operating Cost Advantage
MAIN Maintains a Significant Operating Cost Advantage Operating Expenses as a Percentage of Total Assets(1) 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% MAIN (2) MAIN Excl. Share-Based Comp. (3) Other BDCs (4)(5) Other BDCs Excl. Share-Based Comp. (4)(6) Commercial Banks (7) (1) Total operating expe
Slide 35: Quarterly results
Q3 20 vs. Q3 19 ($ in 000's) Q3 19 Q4 19 Q1 20(1) Q2 20 Q3 20 % Change(2) Total Investment Income $ 60,068 $ 60,649 $ 56,150 $ 52,007 $ 51,954 (14)% Expenses: Interest Expense (12,893) (13,122) (12,441) (11,898) (12,489) 3% G&A Expense (5,591) (5,477) (4,327) (5,998) (6,442) (15)% Distributable Net
Slide 36: NAV per share rollforward
($ per share) Q3 19 Q4 19 Q1 20(1) Q2 20 Q3 20 Beginning NAV $ 24.17 $ 24.20 $ 23.91 $ 20.73 $ 20.85 Distributable Net Investment Income(4) 0.66 0.66 0.61 0.52 0.50 Share-Based Compensation Expense (0.04) (0.04) (0.04) (0.04) (0.04) Net Realized Loss (0.09) (0.01) (0.34) (0.13) (0.21) Net Unrealized
Slide 37: Quarterly balance sheet summary
($ in 000's, except per share amounts) Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 LMM Portfolio Investments $ 1,199,633 $ 1,206,865 $ 1,168,150 $ 1,188,006 $ 1,228,060 Middle Market Portfolio Investments 548,710 522,083 418,442 410,501 441,292 Private Loan Investments 627,893 692,117 629,094 653,824 743,684 Othe
Slide 38: Liquidity and leverage footnotes
(1) As of September 30, 2020, MAIN’s credit facility had $740.0 million in total commitments with an accordion feature to increase up to $800.0 million; As of November 4, 2020, the total commitments under this facility were increased to $780.0 million; Borrowings under this facility are available to
Slide 39: Stable, Long-Term Leverage
Stable, Long-Term Leverage – Significant Unused Capacity MAIN maintains a conservative capital Facility Interest Rate Maturity Principal Draw n structure, with limited overall leverage and low cost, long-term debt $740.0 million Credit Facility (1) L+1.875% floating (2.0%(2)) September 2023 (fully r
Slide 40: Conservative capital structure and debt maturities
MAIN’s conservative capital structure provides long-term access to attractively-priced and structured debt facilities (in millions) •Provides downside protection and liquidity through economic cycles •Allows MAIN to be $400 $350 $300 $250 $200 $150 $100 $50 $0 $40.0 $185.0 $16.0 $253.0 $450.0 $75.0$
Slide 41: Interest rate sensitivity
While MAIN’s financial results are subject to significant impact from changes in interest rates, upside is greater than downside due to The following table illustrates the approximate annual changes in the components of MAIN’s net investment income due to hypothetical increases (decreases) in intere
Slide 42: Significant management equity ownership
Significant equity # of Shares (2) September 30, 2020 (3) ownership by MAIN’s management team, coupled with internally managed structure, provides alignment of interest between MAIN’s management and our shareholders Management (1) 3,322,151 $98,236,005 (1) Includes members of MAIN’s executive and se
Slide 43: Consistent market outperformance
Recessionary Period Notes: (1) Assumes dividends reinvested on date paid (2) The Main Street Peer Group includes all BDCs that have been publicly-traded for at least one year and that have total assets greater than $500 million based on individual SEC Filings as of December 31, 2019; specifically in
Slide 44: Investment highlights summary
Unique focus on under-served Lower Middle Market • Inefficient asset class with less competition • Unique market opportunity with attractive risk-adjusted returns • Generally first lien, senior secured debt investments plus meaningful equity participation Invest in complementary interest-bearing Pri
Slide 45: Non-GAAP information
Distributable net investment income is net investment income, as determined in accordance with U.S. generally accepted accounting principles, or U.S. GAAP, excluding the impact of share-based compensation expense which is non-cash in nature. MAIN believes presenting distributable net investment inco
Slide 46: Board of Directors and Executive Officers
Please visit our website at www.mainstcapital.com for additional information Board of Directors Valerie L. Banner SVP, Governance & Risk Exterran Corporation Vincent D. Foster Executive Chairman Main Street Capital Corporation Arthur L. French Retired CEO/Executive J. Kevin Griffin SVP, Financial Pl
Slide 47: Debt Capital Markets Presentation Third Quarter 2020
Main Street Capital CorporationNYSE: MAINmainstcapital.com Page 1 Debt Capital Markets Presentation Third Quarter – 2020 Main Street Capital CorporationNYSE: MAINmainstcapital.com
Slide 48: Disclaimers
Disclaimers Main Street Capital Corporation (MAIN) cautions that statements in this presentation that are forward-looking, and provide other than historical information, involve risks and uncertainties that may impact our future results of operations. The forward-looking statements in this presentat
Slide 49: Main Street Capital Corporation
MAINST Main Street Capital Corporation 34 Quarter — 2020
Slide 50: Unique investment strategy and conservative capital structure
Unique investment strategy, internally managed operating structure and focus on Lower Middle Market differentiates MAIN from other investment firms Conservative capital structure with S&P rating of BBB-/Stable outlook Internally-managed Business Development Company (BDC) •IPO in 2007 •$4.3 billion i
Slide 51: Investment strategy differentiates MAIN from competitors
MAIN’s investment strategy differentiates MAIN from its competitors and provides highly attractive risk-adjusted returns Lower Middle Market (LMM) •Proprietary investments that are difficult for investors to access •Companies with $10 - $150 million of revenues and $3 - $20 million of EBITDA •Custom
Slide 52: High quality, diversified and mature investment portfolio
The benefits of MAIN’s unique investment strategy has resulted in a high quality, diversified and mature investment portfolio Lower Middle Market • $1,228.1 million of total investments • 70 companies • $655.4 million of debt investments (53%) • $572.7 million of equity investments (47%) • Typical i
Slide 53: Overview of business development companies
Created by Congress in 1980 through the Small Business Investment Incentive Act of 1980 to facilitate the flow of capital to small and mid-sized U.S. businesses Highly regulated by the Securities and Exchange Commission under the Investment Company Act of 1940 (1940 Act) Provide a way for individual
Slide 54: Current capitalization
Current capitalization ($ in 000's)September 30, 2020% of Capitalization Cash $27,121 Debt at parent Credit Facility253,0009.7% 5.20% Notes due 2024(1) 450,00017.2% 4.50% Notes due 2022(1) 185,0007.1% Total debt at parent888,00033.9% Debt at subsidiaries SBIC Debentures(1)304,80011.7% Total debt at
Slide 55: Conservative Leverage
Conservative Leverage As of September 30, 2020 ($ in 000's) Parent(1) SBICs Total Total Assets $ 2,080,766 $ 576,702 $ 2,657,468 Debt Capital: Revolving Credit Facility (2) 253,000 - 253,000 SBIC Debentures - 298,835 298,835 Notes Payable(3) 635,638 - 635,638 Total Debt 888,638 298,835 1,187,473 Net
Slide 56: Small Business Credit Availability Act and asset coverage
Passage of the Small Business Credit Availability Act in December 2017 provides the opportunity for BDCs to obtain board or shareholder approval to access additional leverage by lowering the required asset coverage to 1.50x (from 2.00x) MAIN has historically operated at conservative regulatory lever
Slide 57: Excess collateral available to unsecured lenders
provides protection to lenders MAIN’s management of its capital structure Less: Secured Debt (revolver borrowings) Excess Collateral Available to Unsecured Lenders $(287)$ $1,068$ (253) 2,099 results in reduced risk profile for debt investors over time Excess collateral available to unsecured lender
Slide 58: Management team
Dwayne Hyzak; CPA(1)(2) CEO • Co-founded MAIN; Joined Main Street group in 2002; affiliated with Main Street group since 1999 • Director of acquisitions / integration with Quanta Services (NYSE: PWR) • Manager with a Big 5 Accounting Firm’s audit and transaction services groups David Magdol(1)(2) Pr
Slide 59: Significant management equity ownership
Significant equity # of Shares (2) September 30, 2020 (3) ownership by MAIN’s management team, coupled with internally managed structure, provides alignment of interest between MAIN’s management and our stakeholders Management (1) 3,322,151 $98,236,005 (1) Includes members of MAIN’s executive and se
Slide 60: Internally managed operating structure
MAIN’s internally managed operating structure provides significant operating leverage and greater returns for our stakeholders “Internally managed” structure means no external management fees or expenses are paid Alignment of interest between management and investors •Greater incentives to maximize
Slide 61: Significant Operating Cost Advantage
MAIN Maintains a Significant Operating Cost Advantage Operating Expenses as a Percentage of Total Assets(1) 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% MAIN (2) MAIN Excl. Share-Based Comp. (3) Other BDCs (4)(5) Other BDCs Excl. Share-Based Comp. (4)(6) Commercial Banks (7) (1) Total operating expe
Slide 62: Stable, Long-Term Leverage
Stable, Long-Term Leverage – Significant Unused Capacity MAIN maintains a conservative capital Facility Interest Rate Maturity Principal Draw n structure, with limited overall leverage and low cost, long-term debt $740.0 million Credit Facility (1) L+1.875% floating (2.0%(2)) September 2023 (fully r
Slide 63: Debt maturity profile
MAIN’s conservative capital structure provides long-term access to attractively-priced and structured debt facilities (in millions) •Provides downside protection and liquidity through economic cycles •Allows MAIN to be $400 $350 $300 $250 $200 $150 $100 $50 $0 $40.0 $185.0 $16.0 $253.0 $450.0 $75.0$
Slide 64: Interest rate sensitivity
While MAIN’s financial results are subject to significant impact from changes in interest rates, upside is greater than downside due to The following table illustrates the approximate annual changes in the components of MAIN’s net investment income due to hypothetical increases (decreases) in intere
Slide 65: ATM Equity Program
ATM Equity Program provides efficient, low cost capital •Provides permanent capital to match growth of LMM investments on an as-needed basis •Provides significant economic cost savings compared to traditional overnight equity offerings Provides permanent capital to match indefinite or long-term hold
Slide 66: LMM investment strategy
LMM investment strategy differentiates MAIN from its competitors and provides attractive risk-adjusted returns Investment Objectives •High cash yield from secured debt investments (10.8% weighted-average cash coupon as of September 30, 2020); plus •Dividend income and periodic capital gains from equ
Slide 67: MAIN targets LMM investments in established, profitable companies
MAIN targets LMM investments in established, profitable companies Characteristics of LMM provide beneficial risk-reward investment opportunities Large and critical portion of U.S. economy •175,000+ domestic LMM businesses(1) LMM is under-served from a capital perspective and less competitive Ineffic
Slide 68: Private Loan portfolio investments
Private Loan portfolio investments are primarily debt investments in privately held companies which have been originated through strategic relationships with other investment funds on a collaborative basis, and are often referred to in the debt markets as “club deals” Investment Objectives •Access p
Slide 69: Middle Market Debt Investment Strategy
Middle Market Debt Investment Strategy MAIN maintains a portfolio of debt investments in Middle Market companies Investment Objective •Generate cash yield to support MAIN monthly dividend Investments in secured and/or rated debt investments •First lien, senior secured debt investments •Floating rate
Slide 70: Asset Management Business
Asset Management Business MAIN’s asset management business represents additional income diversification and the opportunity for greater shareholder returns MAIN’s internally managed operating structure provides MAIN’s shareholders the benefits of this asset management business In May 2012, MAIN(1) e
Slide 71: Portfolio diversity
Diversity provides structural protection to investment portfolio, revenue sources, income, and cash flows Includes complementary LMM debt and equity investments, Private Loan debt investments and Middle Market debt investments Total investment portfolio at fair value consists of approximately 47% LM
Slide 72: Portfolio Snapshot - Significant Diversification
Portfolio Snapshot - Significant Diversification MAINST 12/31/2017 12/31/2018 12/31/2019 9/30/2020 Number of Portfolio Companies Lower Middle Market, 70 6 C) 70} Private Loans 54 59 6 6 Middle Market 2 56 51 a Other Portfolio” 1 ee uy 12| Total 197 195 196 192] I$ invested - Cost Basis Lower Middle
Slide 73: Portfolio Snapshot - Significant Diversification (cont.)
Portfolio Snapshot — Significant Diversification (cont.) MAINST 42/31/2017 12/31/2018 12/31/2019 9/30/2020 IS invested Fair Value Lower Middle Market $982 $§ 11950 $ 12069 $ 14,2281) of Total 44.5% 50.0% 41.7% 48.9% Private Loans $4675 $ S079 $ 62a $743.7 [of Total 20% 213% 27.49% 20.6% Middle Marke
Slide 74: Portfolio Snapshot - Significant Diversification (cont.)
MAINST Portfolio Snapshot — Significant Diversification (cont.) 12/31/2017 12/31/2018 12/31/2019 9/30/2020 6 of Total $ Invested in Debt that Lower Middle Market $ SO $ 6705 $ 6474 $ 683.6) % of Lower Middle Market 98.1% 98.5% 98.1% 97.1%) Private Loans $ 4326 $ 4734 $ 6632 $ 7386] %of Total Private
Slide 75: Total portfolio by industry
Machinery, 7%Construction & Engineering, 6% Aerospace & Defense, 6%Health Care Providers & Services, 5% Internet Software & Services, 5%Commercial Services & Supplies, 5% Professional Services, 5%Energy Equipment & Services, 5% Media, 4%IT Services, 4% Leisure Equipment & Products, 4%Hotels, Restaur
Slide 76: Invested Capital by Transaction Type and Geography
Invested Capital by Transaction TypeInvested Capital by Geography (2) LBO/MBO 39% 21%20% 19% 12% 45% 26%14% 4% Acquisition Growth Capital Recapitalization/ Refinancing (1) Excluding MAIN’s Other Portfolio investments and the External Investment Manager, as described in MAIN’s public filings, which r
Slide 77: LMM Investment Portfolio
LMM Investment Portfolio consists of a diversified mix of secured debt and lower cost basis equity investments 70 portfolio companies / $1,228.1 million in fair value •47% of total investment portfolio at fair value Debt yielding 11.6%(1) (66% of LMM portfolio at cost) •97% of debt investments have
Slide 78: LMM portfolio high quality seasoned assets
LMM Investment Portfolio is a pool of high quality, seasoned assets with attractive risk-adjusted return characteristics Median LMM portfolio credit statistics: •Senior leverage of 2.7x EBITDA through MAIN debt position •2.7x EBITDA to senior interest coverage •Total leverage of 2.8x EBITDA includin
Slide 79: Private Loan Investment Portfolio
Private Loan Investment Portfolio provides a diversified mix of investments and sources of income to complement the LMM Investment Portfolio 68 investments / $743.7 million in fair value •29% of total investment portfolio at fair value Average investment size of $12.1 million(1) (less than 1% of tot
Slide 80: Middle Market Investment Portfolio
Middle Market Investment Portfolio provides a diversified mix of investments and diverse sources of income to complement the LMM Investment Portfolio and a potential source of liquidity for MAIN’s future investment activities 42 investments / $441.3 million in fair value •17% of total investment por
Slide 81: Non-GAAP information
Distributable net investment income is net investment income, as determined in accordance with U.S. generally accepted accounting principles, or U.S. GAAP, excluding the impact of share-based compensation expense which is non-cash in nature. MAIN believes presenting distributable net investment inco
Slide 82: Appendix
Main Street Capital Corporation Appendix Main Street Capital Corporatior NYSE: MAIN mainstcapital.com Page 38
Slide 83: Quarterly results
Q3 20 vs. Q3 19 ($ in 000's) Q3 19 Q4 19 Q1 20(1) Q2 20 Q3 20 % Change(2) Total Investment Income $ 60,068 $ 60,649 $ 56,150 $ 52,007 $ 51,954 (14)% Expenses: Interest Expense (12,893) (13,122) (12,441) (11,898) (12,489) 3% G&A Expense (5,591) (5,477) (4,327) (5,998) (6,442) (15)% Distributable Net
Slide 84: NAV per share rollforward
($ per share) Q3 19 Q4 19 Q1 20(1) Q2 20 Q3 20 Beginning NAV $ 24.17 $ 24.20 $ 23.91 $ 20.73 $ 20.85 Distributable Net Investment Income(4) 0.66 0.66 0.61 0.52 0.50 Share-Based Compensation Expense (0.04) (0.04) (0.04) (0.04) (0.04) Net Realized Loss (0.09) (0.01) (0.34) (0.13) (0.21) Net Unrealized
Slide 85: Board of Directors and Executive Officers
Please visit our website at www.mainstcapital.com for additional information Board of Directors Valerie L. Banner SVP, Governance & Risk Exterran Corporation Vincent D. Foster Executive Chairman Main Street Capital Corporation Arthur L. French Retired CEO/Executive J. Kevin Griffin SVP, Financial Pl