Main Street Capital Corporation · NYSE:MAIN
Main Street Capital — IPO Roadshow (August 2020)
90 slides from Main Street Capital's IPO roadshow presentation, Aug 7, 2020
Slide 1: Investor Presentation Second Quarter 2020
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 1 Investor Presentation Second Quarter – 2020 Main Street Capital Corporation NYSE: MAIN mainstcapital.com
Slide 2: Disclaimers
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 2 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 r
Slide 3: Corporate Overview and Investment Strategy
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 3 Main Street Capital Corporation Corporate Overview and Investment Strategy 2 nd Quarter – 2020
Slide 4: MAIN is a Principal Investor in Private Debt and Equity
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 4 MAIN is a Principal Investor in Private Debt and Equity Hybrid debt and equity investment strategy, internally managed operating structure and focus on Lower Middle Market differentiates MAIN from other investment firms (1) Capital
Slide 5: MAIN is a Principal Investor in Private Debt and Equity: Long-term focus
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 5 MAIN is a Principal Investor in Private Debt and Equity Long - term focus on delivering our shareholders sustainable growth in net asset value and recurring dividends per share Consistent cash dividend yield – dividends paid monthly
Slide 6: Equity investments in LMM
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 6 MAIN is a Principal Investor in Private Debt and Equity Equity investments in LMM portfolio provide both the opportunity to grow net asset value (NAV) per share and generate recurring dividend income and periodic realized gains to s
Slide 7: MAIN Strategy Produces Differentiated Returns
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 7 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 inv
Slide 8: Historical Monthly Dividends, NAV and DNII Per Share
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 8 $8.00 $10.00 $12.00 $14.00 $16.00 $18.00 $20.00 $22.00 $24.00 $26.00 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 $0.80 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 NAV Per Share DNII and Dividends Per Share Monthly Divid
Slide 9: Lower Middle Market (LMM) Investment Strategy
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 9 Lower Middle Market (LMM) Investment Strategy Investment Objectives • High cash yield from secured debt investments (10.9% weighted - average cash coupon as of June 30, 2020); plus • Dividend income and periodic capital gains from e
Slide 10: LMM Investment Opportunity
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 10 LMM Investment Opportunity 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 Inefficient asset class generates pricing inefficien
Slide 11: Private Loan Investment Strategy
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 11 Private Loan Investment Strategy Investment Objectives • Access proprietary investments with attractive risk - adjusted return characteristics • Generate cash yield to support MAIN monthly dividend Investment Characteristics • Inve
Slide 12: Middle Market Debt Investment Strategy
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 12 Middle Market Debt Investment Strategy 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 d
Slide 13: Asset Management Business
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 13 Asset Management Business In May 2012, MAIN (1) entered into an investment sub - advisory agreement with the investment adviser to HMS Income Fund, Inc. (“HMS”), a non - listed BDC • MAIN (1) provides asset management services, inc
Slide 14: MAIN Regulatory Framework
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 14 MAIN Regulatory Framework Operates as a Business Development Company • Regulated by Securities and Exchange Commission - 1940 Act • Publicly - traded, private investment company Regulated Investment Company (RIC) tax structure • El
Slide 15: MAIN Corporate Structure – Internally Managed
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 15 MAIN Corporate Structure – Internally Managed “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 c
Slide 16: MAIN Co-Founders and Executive Management Team
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 16 MAIN Co - Founders and Executive Management Team (1) Member of MAIN Executive Committee (2) Member of MAIN Investment Committee (3) Chief Investment Officer (4) Chief Operating Officer (5) Chief Compliance Officer • Co - founded MA
Slide 17: Monthly Dividends Per Share – Sustainable Growth
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 17 Monthly Dividends Per Share – Sustainable Growth Recurring monthly dividend has never been decreased and has shown meaningful (86%) growth since IPO Based upon the current annualized monthly dividends for the fourth quarter of 2020
Slide 18: Investment Portfolio
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 18 Main Street Capital Corporation Investment Portfolio 2 nd Quarter – 2020
Slide 19: Total Investment Portfolio
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 19 Total Investment Portfolio 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 49% LMM / 27% Pr
Slide 20: Total Portfolio by Industry
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 20 Total Portfolio by Industry (as a Percentage of Cost) (1) (1) Excluding MAIN’s Other Portfolio investments and the External Investment Manager, as described in MAIN’s public filings, whic h r epresent approximately 5% of the total
Slide 21: Total Portfolio by Transaction Type and Geography
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 21 LBO/MBO Acquisition Recapitalization/ Refinancing Diversified Total Portfolio (as a Percentage of Cost) (1) Invested Capital by Transaction Type Invested Capital by Geography (2) 22% 20% 26% 13% 19% (1) Excluding MAIN’s Other Portf
Slide 22: LMM Investment Portfolio
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 22 LMM Investment Portfolio 69 portfolio companies / $1,188.0 million in fair value • 49% of total investment portfolio at fair value Debt yielding 11.6% (1) (65% of LMM portfolio at cost) • 98% of debt investments have first lien pos
Slide 23: LMM Investment Portfolio credit statistics
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 23 LMM Investment Portfolio Median LMM portfolio credit statistics: • Senior leverage of 2 .7 x EBITDA through MAIN debt position • 2.8 x EBITDA to senior interest coverage • Total leverage of 3.0 x EBITDA including debt junior in pri
Slide 24: LMM Portfolio by Industry
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 24 LMM Portfolio by Industry (as a Percentage of Cost) Machinery, 10% Professional Services, 10% Energy Equipment & Services, 8% Electronic Equipment, Instruments & Components, 7% Food Products, 6% Construction & Engineering, 6% Leisu
Slide 25: LMM Portfolio by Transaction Type and Geography
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 25 Acquisition LBO/MBO Growth Capital Recapitalization/ Refinancing Diversified LMM Portfolio (as a Percentage of Cost) Invested Capital by Geography (1) 23% 19% 33% 11% 14% Invested Capital by Transaction Type (1) Based upon portfoli
Slide 26: LMM Portfolio Attributes Reflect Investment Strategy
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 26 Security Position on Debt Capital as a Percentage of Cost LMM Portfolio Attributes Reflect Investment Strategy High yielding secured debt investments coupled with significant equity participation = Attractive risk - adjusted return
Slide 27: Term and Total Interest Coupon of Existing LMM Debt Investments
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 27 Total Interest Coupon (1) 10% Current Interest 14% Current Interest Term and Total Interest Coupon of Existing LMM Debt Investments Original Term 11% Current Interest 13% Current Interest <10% Current Interest 12% Current Interest
Slide 28: Private Loan Investment Portfolio
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 28 Private Loan Investment Portfolio 64 investments / $653.8 million in fair value • 27% of total investment portfolio at fair value Average investment size of $11.7 million (1) (less than 1% of total portfolio) Investments in secured
Slide 29: Middle Market Investment Portfolio
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 29 Middle Market Investment Portfolio 44 investments / $410.5 million in fair value • 17% of total investment portfolio at fair value Average investment size of $11.7 million (1) (less than 1% of total portfolio) Investments in secure
Slide 30: Private Loan & Middle Market Portfolios by Industry
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 30 Aerospace & Defense, 9% Health Care Providers & Services, 8% Commercial Services & Supplies, 7% Communications Equipment, 6% IT Services, 6% Diversified Telecommunication Services, 5% Machinery, 5% Oil, Gas & Consumable Fuels, 5% I
Slide 31: Private Loan & Middle Market Investments by Transaction Type and Geography
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 31 LBO/MBO Acquisition Recapitalization/ Refinancing Diversified Private Loan & Middle Market Investments (as a Percentage of Cost) Invested Capital by Transaction Type Invested Capital by Geography (1) 21% 21% 21% 15% 22% (1) Based u
Slide 32: Financial Overview
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 32 Main Street Capital Corporation Financial Overview 2 nd Quarter – 2020
Slide 33: MAIN Financial Performance
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 33 MAIN Financial Performance Total Investment Income ($ in millions) $164.6 $178.3 $205.7 $233.4 $243.4 $108.2 2015 2016 2017 2018 2019 YTD 2020 $0.0 $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 $160.0 $180.0 $200.0 $220.0 $240.0 $26
Slide 34: Long-Term Portfolio and DNII Per Share Growth
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 34 $106 $127 $159 $408 $658 $924 $1,286 $1,563 $1,800 $1,997 $2,171 $2,454 $2,602 $2,420 $0.76 $1.19 $1.02 $1.25 $1.77 $2.09 $2.17 $2.29 $2.31 $2.39 $2.56 $2.76 $2.66 $2.45 $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 $1.60 $1.80 $
Slide 35: Efficient and Leverageable Operating Structure
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 35 Efficient and Leverageable Operating Structure “Internally managed” structure means no external management fees or expenses are paid Alignment of interest between management and investors • Greater incentives to maximize increases
Slide 36: MAIN Maintains a Significant Operating Cost Advantage
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 36 MAIN Maintains a Significant Operating Cost Advantage (1) Total operating expenses excluding interest expense (2) For the trailing twelve month period ended June 30, 2020 (3) For the trailing twelve month period ended June 30, 2020
Slide 37: MAIN Income Statement Summary
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 37 MAIN Income Statement Summary (1) Excludes the effect of the $0.5 million realized loss recognized in the first quarter of 2020 on the repayment of the SBIC de ben tures issued prior to the date of the Main Street Capital II, LP ac
Slide 38: MAIN Per Share Change in Net Asset Value
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 38 MAIN Per Share Change in Net Asset Value (NAV) (1) Excludes the effect of the $0.5 million realized loss recognized in the first quarter of 2020 on the repayment of the SBIC de ben tures issued prior to the date of the Main Street
Slide 39: MAIN Balance Sheet Summary
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 39 MAIN Balance Sheet Summary (1) Includes adjustment to the face value of MSC II SBIC debentures pursuant to the fair value method of accounting elected for s uch MSC II SBIC borrowings for the periods from Q2 19 to Q1 20; Total par
Slide 40: MAIN Liquidity and Capitalization
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 40 MAIN Liquidity and Capitalization (1) As of June 30, 2020, MAIN’s credit facility had $740.0 million in total commitments with an accordion feature to increase up to $800.0 million; Borrowings under this facility are available to p
Slide 41: Stable, Long-Term Leverage – Significant Unused Capacity
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 41 Stable, Long - Term Leverage – Significant Unused Capacity MAIN maintains a conservative capital structure, with limited overall leverage and low cost, long - term debt Capital structure is designed to correlate and compliment expe
Slide 42: Long-term Maturity of Debt Obligations
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 42 MAIN (2) Internally Managed BDC’s (3)(5) Externally Managed BDC’s (4)(5) Long - term Maturity of Debt Obligations MAIN’s conservative capital structure provides long - term access to attractively - priced and structured debt facili
Slide 43: Interest Rate Impact and Sensitivity
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 43 Interest Rate Impact and Sensitivity The following table illustrates the approximate annual changes in the components of MAIN’s net investment income due to hypothetical increases (decreases) in interest rates (1)(2) (dollars in th
Slide 44: Significant Management Ownership / Investment
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 44 June 30, 2020 (3) Management (1) 3,308,235 $102,985,356 # of Shares (2) Significant Management Ownership / Investment Significant equity ownership by MAIN’s management team, coupled with internally managed structure, provides align
Slide 45: MAIN Total Return Performance Since IPO
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 45 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 gre ater than $500 million based on individual
Slide 46: Executive Summary
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 46 Executive 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 in
Slide 47: Non-GAAP Information
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 47 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 compensa
Slide 48: MAIN Corporate Data
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 48 MAIN Corporate Data Board of Directors Valerie L. Banner SVP, General Counsel & Corporate Secretary Exterran Corporation Vincent D. Foster Executive Chairman Main Street Capital Corporation Arthur L. French Retired CEO/Executive J.
Slide 49: Debt Capital Markets Presentation Second Quarter 2020
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 1 Debt Capital Markets Presentation Second Quarter – 2020 Main Street Capital Corporation NYSE: MAIN mainstcapital.com
Slide 50: Disclaimers
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 2 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 r
Slide 51: Main Street Capital Corporation
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 3 Main Street Capital Corporation 2 nd Quarter – 2020
Slide 52: MAIN is a Principal Investor in Private Debt and Equity
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 4 MAIN is a Principal Investor in Private Debt and Equity Internally - managed Business Development Company (BDC) • IPO in 2007 • $4.0 billion in capital under management (1) – $ 3.0 billion internally at MAIN (1) – $1.0 billion as a
Slide 53: Investment Portfolio – By Type of Investment
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 5 First Lien Debt, 95.4%, $1,569.9m Junior Debt, 4.6%, $75.5m Total Debt Investments $1,645.4 million Investment Portfolio – By Type of Investment (1) Equity, 27.9%, $676.0m Other Portfolio, 4.1%, $98.2m Total Investment Portfolio $2,
Slide 54: Unique Investment Strategy
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 6 Unique Investment Strategy Middle Market • Larger companies than LMM strategy, with EBITDA between $20 - $100 million • First lien, senior secured debt investments • Floating rate debt investments • Large addressable market • Can pr
Slide 55: Portfolio Highlights
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 7 Portfolio Highlights (1) Middle Market • $410.5 million of total investments • 44 companies • $399.0 million of debt investments (97% of Middle Market portfolio) • 92% of debt investments are first lien (2) • Average investment size
Slide 56: Business Development Company (BDC) Background
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 8 Business Development Company (BDC) Background Leverage • Regulatory restrictions on debt leverage levels require BDCs to maintain conservative leverage • Must maintain an asset to debt coverage ratio of at least 2.0x, unless the BDC
Slide 57: MAIN Capital Structure
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 9 MAIN Capital Structure (1) Debt amounts reflected at par value (2) Based on stock price of $31.13 as of June 30, 2020 Current capitalization ($ in 000's) June 30, 2020 % of Capitalization Cash 68,539$ Debt at parent Credit Facility
Slide 58: Conservative Leverage
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 10 Conservative Leverage (1) Assets at the BDC/RIC parent level represent the collateral available to MAIN’s debt capital market investors (2) As of June 30, 2020, MAIN’s credit facility had $740.0 million in total commitments with an
Slide 59: Conservative Leverage - Regulatory
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 11 Conservative Leverage - Regulatory 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 requi
Slide 60: Conservative Leverage - Excess Collateral Improves Over Time
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 12 Conservative Leverage - Excess Collateral Improves Over Time MAIN’s conservative use of leverage and use of equity to fund its growth results in significant excess collateral that provides protection to lenders MAIN’s management of
Slide 61: Key Credit Highlights
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 13 Key Credit Highlights • Core executive management team has been together as a team for 15+ years • Extensive investment expertise and relationships • Significant management equity ownership • Meaningful operating cost advantage thr
Slide 62: MAIN Co-Founders and Executive Management Team
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 14 MAIN Co - Founders and Executive Management Team (1) Member of MAIN Executive Committee (2) Member of MAIN Investment Committee (3) Chief Investment Officer (4) Chief Operating Officer (5) Chief Compliance Officer • Co - founded MA
Slide 63: Significant Management Ownership / Investment
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 15 June 30, 2020 (3) Management (1) 3,308,235 $102,985,356 # of Shares (2) Significant Management Ownership / Investment Significant equity ownership by MAIN’s management team, coupled with internally managed structure, provides align
Slide 64: Efficient and Leverageable Operating Structure
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 16 Efficient and Leverageable Operating Structure “Internally managed” structure means no external management fees or expenses are paid Alignment of interest between management and investors • Greater incentives to maximize increases
Slide 65: MAIN Maintains a Significant Operating Cost Advantage
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 17 MAIN Maintains a Significant Operating Cost Advantage (1) Total operating expenses excluding interest expense (2) For the trailing twelve month period ended June 30, 2020 (3) For the trailing twelve month period ended June 30, 2020
Slide 66: Stable, Long-Term Leverage – Significant Unused Capacity
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 18 Stable, Long - Term Leverage – Significant Unused Capacity MAIN maintains a conservative capital structure, with limited overall leverage and low cost, long - term debt Capital structure is designed to correlate and compliment expe
Slide 67: Long-term Maturity of Debt Obligations
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 19 MAIN (2) Internally Managed BDC’s (3)(5) Externally Managed BDC’s (4)(5) Long - term Maturity of Debt Obligations MAIN’s conservative capital structure provides long - term access to attractively - priced and structured debt facili
Slide 68: Interest Rate Impact and Sensitivity
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 20 Interest Rate Impact and Sensitivity The following table illustrates the approximate annual changes in the components of MAIN’s net investment income due to hypothetical increases (decreases) in interest rates (1)(2) (dollars in th
Slide 69: At-The-Market (ATM) Equity Program
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 21 At - The - Market (ATM) Equity Program Provides permanent capital to match indefinite or long - term holding period for LMM investments Facilitates maintenance of conservative leverage position Issued equity is accretive to NAV per
Slide 70: Lower Middle Market (LMM) Investment Strategy
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 22 Lower Middle Market (LMM) Investment Strategy Investment Objectives • High cash yield from secured debt investments (10.9% weighted - average cash coupon as of June 30, 2020); plus • Dividend income and periodic capital gains from
Slide 71: LMM Investment Opportunity
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 23 LMM Investment Opportunity 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 Inefficient asset class generates pricing inefficien
Slide 72: Private Loan Investment Strategy
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 24 Private Loan Investment Strategy Investment Objectives • Access proprietary investments with attractive risk - adjusted return characteristics • Generate cash yield to support MAIN monthly dividend Investment Characteristics • Inve
Slide 73: Middle Market Debt Investment Strategy
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 25 Middle Market Debt Investment Strategy 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 d
Slide 74: Asset Management Business
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 26 Asset Management Business In May 2012, MAIN (1) entered into an investment sub - advisory agreement with the investment adviser to HMS Income Fund, Inc. (“HMS”), a non - listed BDC • MAIN (1) provides asset management services, inc
Slide 75: Total Investment Portfolio
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 27 Total Investment Portfolio 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 49% LMM / 27% Pr
Slide 76: Portfolio Snapshot – Significant Diversification
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 28 Portfolio Snapshot – Significant Diversification (1) Excludes the External Investment Manager, as described in MAIN’s public filings 12/31/2017 12/31/2018 12/31/2019 6/30/2020 Number of Portfolio Companies Lower Middle Market 70 69
Slide 77: Portfolio Snapshot – Significant Diversification (cont.)
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 29 Portfolio Snapshot – Significant Diversification (cont.) (1) Excludes the External Investment Manager, as described in MAIN’s public filings 12/31/2017 12/31/2018 12/31/2019 6/30/2020 $ Invested - Fair Value Lower Middle Market 948
Slide 78: Portfolio Snapshot – Significant Diversification (cont.)
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 30 Portfolio Snapshot – Significant Diversification (cont.) 12/31/2017 12/31/2018 12/31/2019 6/30/2020 % of Total $ Invested in Debt that is First Lien (Cost Basis) Lower Middle Market 511.0$ $ 670.5 $ 647.4 $ 663.6 % of Lower Middle
Slide 79: Total Portfolio by Industry
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 31 Total Portfolio by Industry (as a Percentage of Cost) (1) (1) Excluding MAIN’s Other Portfolio investments and the External Investment Manager, as described in MAIN’s public filings, whic h r epresent approximately 5% of the total
Slide 80: Total Portfolio by Transaction Type and Geography
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 32 LBO/MBO Acquisition Recapitalization/ Refinancing Diversified Total Portfolio (as a Percentage of Cost) (1) Invested Capital by Transaction Type Invested Capital by Geography (2) 22% 20% 26% 13% 19% (1) Excluding MAIN’s Other Portf
Slide 81: LMM Investment Portfolio
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 33 LMM Investment Portfolio 69 portfolio companies / $1,188.0 million in fair value • 49% of total investment portfolio at fair value Debt yielding 11.6% (1) (65% of LMM portfolio at cost) • 98% of debt investments have first lien pos
Slide 82: LMM Investment Portfolio credit statistics
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 34 LMM Investment Portfolio Median LMM portfolio credit statistics: • Senior leverage of 2 .7 x EBITDA through MAIN debt position • 2.8 x EBITDA to senior interest coverage • Total leverage of 3.0 x EBITDA including debt junior in pri
Slide 83: Private Loan Investment Portfolio
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 35 Private Loan Investment Portfolio 64 investments / $653.8 million in fair value • 27% of total investment portfolio at fair value Average investment size of $11.7 million (1) (less than 1% of total portfolio) Investments in secured
Slide 84: Middle Market Investment Portfolio
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 36 Middle Market Investment Portfolio 44 investments / $410.5 million in fair value • 17% of total investment portfolio at fair value Average investment size of $11.7 million (1) (less than 1% of total portfolio) Investments in secure
Slide 85: Non-GAAP Information
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 37 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 compensa
Slide 86: Appendix
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 38 Main Street Capital Corporation Appendix
Slide 87: MAIN Income Statement Summary
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 39 MAIN Income Statement Summary (1) Excludes the effect of the $0.5 million realized loss recognized in the first quarter of 2020 on the repayment of the SBIC de ben tures issued prior to the date of the Main Street Capital II, LP ac
Slide 88: MAIN Per Share Change in Net Asset Value
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 40 MAIN Per Share Change in Net Asset Value (NAV) (1) Excludes the effect of the $0.5 million realized loss recognized in the first quarter of 2020 on the repayment of the SBIC de ben tures issued prior to the date of the Main Street
Slide 89: MAIN Balance Sheet Summary
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 41 MAIN Balance Sheet Summary (1) Includes adjustment to the face value of MSC II SBIC debentures pursuant to the fair value method of accounting elected for s uch MSC II SBIC borrowings for the periods from Q2 19 to Q1 20; Total par
Slide 90: MAIN Corporate Data
mainstcapital.com NYSE: MAIN Main Street Capital Corporation Page 42 MAIN Corporate Data Board of Directors Valerie L. Banner SVP, General Counsel & Corporate Secretary Exterran Corporation Vincent D. Foster Executive Chairman Main Street Capital Corporation Arthur L. French Retired CEO/Executive J.