Advanced Flower Capital Inc. · NASDAQ:AFCG
Advanced Flower Capital — Q1 2026 Earnings Presentation
28 slides from Advanced Flower Capital's earnings presentation, May 7, 2026
Slide 1: Investor Presentation
AAFC Investor Presentation
Slide 2: Important Information
IMPORTANT INFORMATION Some of the statements contained in this presentation constitute forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934
Slide 3: Important Information: Important Notices
IMPORTANT INFORMATION Important Notices This presentation is by Advanced Flower Capital, a publicly traded company that is a non-diversified, externally managed, closed-end management investment company that has elected to be regulated as a BDC and intends to elect to be taxed as a regulated investm
Slide 4: Overview
OVERVIEW AFC is an institutional capital provider specializing in debt investments to lower middle-market businesses across various industries We aim to provide attractive risk-adjusted returns through debt investments structured with significant collateral, high interest coverage and favorable pric
Slide 5: Leadership
LEADERSHIP LEONARD DANIEL ROBYN BRANDON GABRIEL JAMES TANNENBAUM NEVILLE TANNENBAUM HETZEL KATZ VELGOT Chief Executive Chief Investment Chief Financial Chief Legal Chief Marketing Chairman Officer Officer, President Officer, Treasurer Officer Officer 30+ YEARS EXPERIENCE 15+ YEARS EXPERIENCE 15+ YEA
Slide 6: Investment Highlights
INVESTMENT HIGHLIGHTS Cycle-Tested Seeking Compelling Disciplined Active Portfolio Strong Balance Management Investment Returns Process Management Sheet & Liquidity › AFC’s ability to › Working to capture › Rigorous, repeatable › Detailed performance › Prudent cash navigate fast- the benefits from a
Slide 7: What is a Business Development Company?
BENEFICIAL STRUCTURE What is a Business A closed-end management investment company that has elected to be regulated under the 1940 Act required to invest at least 70% of assets in private or small public companies via long-term debt or equity Development Company? capital What are the Invest at least
Slide 8: Focused Strategy
FOCUSED STRATEGY Target Characteristics Investment Focus Origination Focus › Private companies headquartered or › Focus on originated loans as opposed to CHECK SIZE At least $10 million mostly operating in the United States broadly syndicated financings › Generating EBITDA of $5 to $50 million › Typ
Slide 9: Sponsor-Agnostic Originations
SPONSOR-AGNOSTIC ORIGINATIONS Sponsor-Backed Lending Non-Sponsor-Backed Lending Financing the businesses of issuers owned by PE Financing the businesses of issuers under any ownership Institutional Governance & Reporting Owner-Operator Alignment Sponsors typically require regular reporting, clear KP
Slide 10: Our Approach
OUR APPROACH AFC is involved in each phase of the lending process, aiming to source loans with high return potential and downside protection Sourcing & Selection & Investment Portfolio Originations Underwriting Committee Management Multi-channel direct Advance detailed term sheet Investment Committe
Slide 11: Direct Originations Platform
DIRECT ORIGINATIONS PLATFORM Multiple Channels Driving Originations High-Quality, Actionable Pipeline › Co-lenders › BDCs or REITs NETWORK-BASED › Owners/operators › Banks DEAL FLOW › Brokers › Advisory firms $ › PE firms › Service providers bn Deals Sourced Since Inception1 › Internal direct origin
Slide 12: Portfolio
PORTFOLIO 1 In $ millions $375 $370 $376 $381 $350 $361 $345 $10 $9 $10 $333 $14 $3 $20 $12 $10 $351 $366 $360 $362 $378 $330 $333 $323 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 5/1/2026 Funded Unfunded Note: Past performance does not predict future returns. Investing involves the risk
Slide 13: Portfolio
PORTFOLIO AFC’s adviser has reviewed 1,161 deals, representing approximately $31 billion in aggregate value* Deals Current Deals Current Deals Rejected* in Review Funded As of 5/1/2026; In $ millions unless otherwise noted Funding Loan AFC Loan As % of Total Principal Cash Interest Paid In-Kind Fixe
Slide 14: First Quarter 2026
NASDAQ:AFCG | FIRST QUARTER 2026
Slide 15: Since Last Quarter
SINCE LAST QUARTER Net asset value (NAV) as of NET ASSET March 31, 2026, was $7.90 Total loan commitments per share as compared to ORIGINATIONS originated during the first VALUE $7.46 as of December 31, quarter were $89.7 million 2025 Net investment income for NET INVESTMENT As of March 31, 2026, th
Slide 16: Q1 2026 Balance Sheet Highlights
(Dollar amounts in thousands except per-share data) Q1 2026 Balance Sheet Highlights: Total Debt Outstanding (Principal) $203,000 Total Net Assets (Equity) $185,819 Cash and Cash Equivalents $112,731 Net Debt-to-Equity Ratio 0.48x Income Statement Highlights: Total Investment Income $9,813 Net Inves
Slide 17: NAV Per Share / Net Investment Income
$0.28 ($0.05) $7.90 $0.21 $7.46 12/31/2025 Net Investment Net Unrealized Distributions 3/31/2026 NAV Per Share Income Gains on Investments Declared NAV Per Share Note: Past performance does not predict future returns. Investing involves the risk of loss, and there is no guarantee that the Adviser's
Slide 18: Portfolio Key Metrics and Floating Rate Mix
(At quarter end; dollar amounts in millions) Q4 2025 Q1 2026 5/1/2026 Key Metrics: Portfolio Loan Commitments $332,631 $375,661 $380,661 Number of Portfolio Companies 15 15 17 Average Investment Size $22,175 $25,044 $22,392 Asset Class: First-Lien Debt Investments 100% 100% 100% Interest Rate Type:
Slide 19: Non-accrual investments and internal ratings
As of March 31, 2026, non-accrual investments as a percentage of the total fair value of the portfolio was 23.5%1 Internal March 31, 2026 Rating Fair Value As % of Portfolio Number of Companies 1 $– – – 2 78.1 28.0% 2 3 135.4 48.5% 10 4 – – – 5 65.8 23.5% 3 Total $279.2 100.0% 15 Rating 1 Very Low R
Slide 20: Funding Sources
FUNDING SOURCES (Dollar amounts in millions) Issue Date Commitment Principal 1 Interest Rate Maturity Date Interest Due Dates 2027 Senior Notes2 Nov-21 $77.0 $77.0 5.75% Coupon May-27 May 1 and November 1 Revolving Credit Facility 3 Apr-22 $80.0 $18.0 7.25% Apr-28 Payable monthly TCGSL Credit Facili
Slide 21: Quarterly Financial Results
QUARTERLY FINANCIAL RESULTS As of March 31, 2026 (Unaudited) Assets Non-controlled, non-affiliated investments at fair value (cost of $345,918,978) $ 279,237,624 Cash and cash equivalents 112,730,935 Interest receivable 1,290,660 Prepaid expenses and other assets 1,617,704 Total assets $ 394,876,923
Slide 22: Quarterly Financial Results
QUARTERLY FINANCIAL RESULTS Three Months Ended (Unaudited) March 31, 2026 Investment income: From non-controlled/non-affiliated investments: Interest income $ 7,670,790 Payment-in-kind interest income 332,640 Other income 1,809,788 Total investment income 9,813,218 Expenses: Interest expense 1,726,5
Slide 23: Quarterly Financial Results
QUARTERLY FINANCIAL RESULTS Three Months Ended (Unaudited) March 31, 2026 Increase in net assets resulting from operations: Net investment income $ 4,826,131 Net change in unrealized appreciation on investments 6,601,216 Net increase in net assets resulting from operations 11,427,347 Distributions t
Slide 24: First Quarter 2026
NASDAQ:AFCG | FIRST QUARTER 2026
Slide 25: BDC Overview and Qualifications
BDC Overview BDC Qualifications BDCs are closed-end investment companies regulated To qualify as a BDC, companies must be registered in compliance by the Securities and Exchange Commission with Section 54 of the Investment Company Act of 1940 Created by Congress in 1980 in order to: Leverage Const
Slide 26: Board of Directors, Management Team, Research Coverage
BOARD OF DIRECTORS MANAGEMENT TEAM RESEARCH COVERAGE GENERAL Leonard M. Tannenbaum, CFA Daniel Neville Alliance Global Partners Corporate Headquarters Chairman of the Board Chief Executive Officer Aaron Grey 477 S. Rosemary Avenue (Class I) Suite 301 Robyn Tannenbaum Seaport Global Securities LLC We
Slide 27: Original Issue Discount and Yield to Maturity
Original Issue Discount (“OID”) Original Issue Discount (“OID”) is recognized as a discount to the funded loan principal and is accreted to income over the term of the loan. Loans originated before July 31, 2020 were acquired by us, net of unaccreted OID, which we accrete to income over the remainin
Slide 28: Contact Us
Contact Us ir@advancedflowercapital.com www.advancedflowercapital.com
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