Main Street Capital Corporation · NYSE:MAIN
Main Street Capital — IPO Roadshow (February 2021)
90 slides from Main Street Capital's IPO roadshow presentation, Feb 26, 2021
Slide 1: Investor Presentation Fourth Quarter 2020
Investor Presentation Fourth Quarter – 2020 MaMinainStSrtreeetCCaapiptailtaClorCporraptionration NYSNEY:SEM: MAAININ mmaaiinnstccaappitaitl.aclo.mcom Page 1
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 4th Quarter – 2020 Main Street Capital Corporation NYSE: MAIN mainstcapital.com Page 3
Slide 4: MAIN is a Principal Investor in Private Debt and Equity
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 Internally-managed Business Development Company (BDC) • • IPO in 2007 $4.3 billi
Slide 5: MAIN is a Principal Investor in Private Debt and Equity
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 MAIN’s unique investment strategy, efficient operating structure and conservative capitalization are designed to provide sust
Slide 6: MAIN is a Principal Investor in Private Debt and Equity
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 support MAIN’s dividend growth Focus on LMM equity investments and ef
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 tota
Slide 8: Historical Monthly Dividends, NAV and DNII Per Share
Historical Monthly Dividends, Net Asset Value (“NAV”) and Distributable Net Investment Income (“DNII”)(1) Per Share $0.80 $26.00 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 pro
Slide 9: Lower Middle Market (LMM) 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 (10.9% weighted-average cash coupon as of December 31, 2020); plus Divide
Slide 10: LMM Investment Opportunity
LMM Investment Opportunity 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 a
Slide 11: Private Loan Investment Strategy
Private Loan Investment Strategy Investment Objectives 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
Slide 12: Middle Market Debt Investment Strategy
Middle Market Debt Investment Strategy Investment Objective •Generate cash yield to support MAIN monthly dividend MAIN maintains a portfolio of debt investments in Middle Market companies Investments in secured and/or rated debt investments •First lien, senior secured debt investments •Floating rate
Slide 13: 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 14: MAIN Regulatory Framework
MAIN Regulatory Framework 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 •
Slide 15: MAIN Corporate Structure – Internally Managed
MAIN Corporate Structure – Internally Managed “Internally managed” structure means no external management fees or expenses ar providing operating leverage to MAIN’s business; MAIN targets total operating administrative less than 2% of assets (1) As of December 31, 2020, MAIN’s credit facility had $7
Slide 16: MAIN Co-Founders and Executive Management Team
MAIN Co-Founders and Executive Management Team • 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 • • •
Slide 17: Monthly Dividends Per Share – Sustainable Growth
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 second quarter of 2021, the annual effective yield on MAIN’s stock is 6.7%(1) MAIN has also
Slide 18: Investment Portfolio
Main Street Capital Corporation Investment Portfolio 4th Quarter – 2020 Main Street Capital Corporation NYSE: MAIN mainstcapital.com Page 18
Slide 19: Total Investment Portfolio
Total Investment Portfolio Includes complementary LMM debt and equity investments, Private Loan debt investments and Middle Market debt investments Diversity provides structural protection to investment portfolio, revenue sources, income, cash flows and shareholder dividends Total investment portfol
Slide 20: Total Portfolio by Industry
(1) Total Portfolio by Industry (as a Percentage of Cost) Machinery, 6% Aerospace & Defense, 6% Health Care Providers & Services, 5% Commercial Services & Supplies, 5% Software, 5% IT Services, 4% Oil, Gas & Consumable Fuels, 3% Hotels, Restaurants & Leisure, 3% Food Products, 3% Media, 2% Diversifi
Slide 21: Diversified Total Portfolio
(1) Diversified Total Portfolio (as a Percentage of Cost) tion/ (1) Excluding MAIN’s Other Portfolio investments and the External Investment Manager, as described in MAIN’s public filings, which represent approximately 6% of the total portfolio (2) Based upon portfolio company headquarters and exclu
Slide 22: LMM Investment Portfolio
LMM Investment Portfolio 70 portfolio companies / $1,285.5 million in fair value •48% of total investment portfolio at fair value LMM Investment Portfolio consists of a diversified mix of secured debt and lower cost basis equity investments Debt yielding 11.6%(1) (66% of LMM portfolio at cost) • • •
Slide 23: LMM Investment Portfolio
LMM Investment Portfolio 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 3.0x EBITDA through MAIN debt position 2.4x EBITDA to senior interest coverage Total leve
Slide 24: LMM Portfolio by Industry
LMM Portfolio by Industry (as a Percentage of Cost) Professional Services, 9% Energy Equipment & Services, 8% Software, 7% Leisure Equipment & Products, 5% Internet Software & Services, 4% Containers & Packaging, 3% Computers & Peripherals, 3% Commercial Services & Supplies, 3% Health Care Providers
Slide 25: Diversified LMM Portfolio
Diversified LMM Portfolio (as a Percentage of Cost) (1) Based upon portfolio company headquarters Main Street Capital Corporation NYSE: MAIN mainstcapital.com Page 25 Invested Capital by Transaction Type LBO/MBORecapitalization/ Refinancing 35% 54% 6% 5% Acquisition Growth Capital Invested Capital b
Slide 26: LMM Portfolio Attributes Reflect Investment Strategy
LMM Portfolio Attributes Reflect Investment Strategy High yielding secured debt investments coupled with significant equity participation = Attractive risk-adjusted returns Weighted-Average Effective Yield = 11.6% Average Fully Diluted Equity Ownership = 38% Main Street Capital Corporation NYSE: MAI
Slide 27: Term and Total Interest Coupon of Existing LMM Debt Investments
Term and Total Interest Coupon of Existing LMM Debt Investments 38% <10% Current Interest Interest Debt Investments generally have a 5-Year Original Term and ~2.5 Year Weighted-Average Remaining Duration;Weighted-Average Effective Yield of 11.6% on Debt Portfolio (1) Interest coupon excludes amortiz
Slide 28: 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 63 investments / $740.4 million in fair value •27% of total investment portfolio at fair value Average investment size of $12
Slide 29: Middle Market Investment Portfolio
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 / $445.6 million in fair
Slide 30: Private Loan & Middle Market Portfolios by Industry
Private Loan & Middle Market Portfolios by Industry (as a Percentage of Cost) Aerospace & Defense, 11% Internet Software & Services, 7% Communications Equipment, 6% Machinery, 5% Construction & Engineering, 5% Leisure Equipment & Products, 4% Diversified Financial Services, 3% Trading Companies & Di
Slide 31: Diversified Private Loan & Middle Market Investments
Diversified Private Loan & Middle Market Investments (as a Percentage of Cost) (1) Based upon portfolio company headquarters and excluding any MAIN investments headquartered outside the U.S., which represent approximately 2% of the combined Private Loan and Middle Market portfolios Main Street Capit
Slide 32: Financial Overview
Main Street Capital Corporation Financial Overview 4th Quarter – 2020 Main Street Capital Corporation NYSE: MAIN mainstcapital.com Page 32
Slide 33: MAIN Financial Performance
MAIN Financial Performance Year over Year Growth Year over Year Growth (9)% 14% 1% (11)% 8% 15% 13% 4% 10% 17% $260.0 $240.0 $220.0 $200.0 $180.0 $160.0 $140.0 $120.0 $100.0 $80.0 $60.0 $40.0 $20.0 $0.0 $180.0 $160.0 $140.0 $120.0 $100.0 $80.0 $60.0 $40.0 $20.0 $0.0 2015 2016 2017 2018 2019 2020 201
Slide 34: Long-Term Portfolio and DNII Per Share Growth
Long-Term Portfolio and DNII(1) Per Share Growth MAIN has grown Portfolio Investments and DNII per share ($ in millions, except per share data) $2.76 $2.66 $2,800 $2,600 $2,400 $2,200 $2,000 $1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 $2.80 $2.60 $2.40 $2.20 $2.00 $1.80 $1.60 $1.40 $1.
Slide 35: Efficient and Leverageable Operating Structure
Efficient and Leverageable Operating Structure 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
Slide 36: MAIN Maintains a 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% (1) (2) (3) (4) Total operating expenses excluding interest expense For the year ended December 31, 2020 For the year ended December 31, 2020, excl
Slide 37: MAIN Income Statement Summary
MAIN Income Statement Summary Total Investment Income $ 60,649 $56,150 $ 52,007 $ 51,954 $ 62,504 3% Expenses: Interest Expense G&A Expense (13,122) (5,477) (12,441) (4,327) (11,898) (5,998) (12,489) (6,442) (12,761) (7,488) 3% (37)% Distributable Net Investment Income (DNII)(3) DNII Margin % 42,050
Slide 38: MAIN Per Share Change in Net Asset Value
MAIN Per Share Change in Net Asset Value (NAV) Beginning NAV Distributable Net Investment Income(4) Share-Based Compensation Expense Net Realized Loss Net Unrealized Appreciation (Depreciation) $ 24.20 $ 23.91 $ 20.73 $ 20.85 $ 21.52 0.66 (0.04) (0.01) (0.37) 0.61 (0.04) (0.34) (3.01) 0.52 (0.04) (0
Slide 39: MAIN Balance Sheet Summary
MAIN Balance Sheet Summary LMM Portfolio Investments Middle Market Portfolio Investments $ 1,206,865 522,083 $ 1,168,150 418,442 $ 1,188,006 410,501 $ 1,228,060 441,292 $ 1,285,521 445,610 Private Loan Investments 692,117 629,094 653,824 743,684 740,371 Other Portfolio Investments External Investmen
Slide 40: MAIN Liquidity and Capitalization
MAIN Liquidity and Capitalization Cash and Cash Equivalents $ 55,246 $ 54,188 $ 68,539 $ 27,121 $ 31,919 Availability Under Credit Facility (1) 405,000 463,000 425,000 487,000 511,000 Remaining SBIC Debentures Capacity 35,200 20,200 35,200 45,200 40,200 Total Liquidity $ 495,446 $ 537,388 $ 528,739
Slide 41: Stable, Long-Term Leverage – Significant Unused Capacity
Stable, Long-Term Leverage – Significant Unused Capacity Facility MAIN maintains a conservative capital structure, with limited overall leverage and low cost, long-term debt Capital structure is designed to correlate to and complement the expected duration and fixed/floating rate nature of investmen
Slide 42: Long-term Maturity of Debt Obligations
Long-term Maturity of Debt Obligations MAIN’s conservative capital structure provides long-term access to attractively-priced and structured debt facilities $400 $350 $300 • Allows for investments in assets with long-term holding periods / illiquid positions and greater yields and overall returns Pr
Slide 43: Interest Rate Impact and Sensitivity
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 thousands): While MAIN’s financial results are subject to significant im
Slide 44: Significant Management Ownership / Investment
Significant Management Ownership / Investment Significant equity ownership by MAIN’s management team, coupled with internally managed structure, provides alignment of interest between MAIN’s management and our shareholders Management (1) 3,334,330 $107,565,486 (1) (2) Includes members of MAIN’s exec
Slide 45: MAIN Total Return Performance Since IPO
MAIN Total Return Performance Since IPO COVID Pandemic Recessionary Period Notes: (1) (2) Assumes dividends reinvested on date paid 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 individu
Slide 46: Executive Summary
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 investments plus meaningful equity participation Invest in complementary in
Slide 47: Non-GAAP Information
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 distributabl
Slide 48: MAIN Corporate Data
MAIN Corporate Data Please visit our website at www.mainstcapital.com for additional information Board of Directors Board of Directors (cont.) Research Coverage Corporate Headquarters Investor Relation Contacts Valerie L. Banner SVP, Governance & Risk Exterran Corporation Stephen B. Solcher Executiv
Slide 49: Debt Capital Markets Presentation Fourth Quarter 2020
Debt Capital Markets Presentation Fourth Quarter – 2020 MaMinainStSrtreeetCCaapiptailtaClorCporraptionration NYSNEY:SEM: MAAININ mmaaiinnstccaappitaitl.aclo.mcom Page 1
Slide 50: 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 51: Main Street Capital Corporation 4th Quarter – 2020
Main Street Capital Corporation 4th Quarter – 2020 Main Street Capital Corporation NYSE: MAIN mainstcapital.com Page 3
Slide 52: MAIN is a Principal Investor in Private Debt and Equity
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 Conservative capital structure with S&P rating of BBB-/Stable outlook Internally
Slide 53: Investment Portfolio – By Type of Investment
Investment(1) Investment Portfolio – By Type of Total Investment Portfolio $2,684.9 million Total Debt Investments $1,807.1 million Debt Investments, 67.3%, $1,807.1m First Lien Debt, 95.6%, $1,728.0m Other Portfolio, 3.6%, $96.6m Equity, 29.1%, $781.2m Junior Debt, 4.4%, $79.1m (1) Fair value as of
Slide 54: Unique Investment Strategy
Unique Investment Strategy MAIN’s investment strategy differentiates MAIN from its competitors and provides highly attractive risk-adjusted returns Business Main Street Capital Corporation NYSE: MAIN mainstcapital.com Page 6 Asset Management •Monetizing value of MAIN’s intangible assets •Significant
Slide 55: Portfolio Highlights
Portfolio Highlights(1) The benefits of MAIN’s unique investment strategy has resulted in a high quality, diversified and mature investment portfolio floating rates(2) 8.7%(3) including $96.6 million of Other Portfolio • 96% of debt investments are first lien(2) floating rates(2) investments of 9.5%
Slide 56: Business Development Company (BDC) Background
Business Development Company (BDC) Background 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 o
Slide 57: MAIN Capital Structure
MAIN Capital Structure Cash $ 31,919 Debt at parent(1) Credit Facility 5.20% Notes due 2024(2) 4.50% Notes due 2022(2) 269,000 450,000 185,000 9.9% 16.5% 6.8% Debt at subsidiaries SBIC Debentures(2) 309,800 11.4% Book value of equity 1,514,767 55.5% Debt / Capitalization 0.44x Debt / Book equity 0.8
Slide 58: Conservative Leverage
Conservative Leverage Total Assets $ 2,250,232 $ 519,132 $ 2,769,364 Debt Capital: Revolving Credit Facility(2) SBIC Debentures 269,000 - 269,000 - 303,972 303,972 Notes Payable(3) 635,653 - 635,653 Total Debt 904,653 303,972 1,208,625 Net Asset Value (NAV) 1,304,261 210,506 1,514,767 Ke y Le ve ra
Slide 59: Conservative Leverage - Regulatory
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 required asset coverage to 1.50x (from 2.00x) MAIN has historically operat
Slide 60: Conservative Leverage - Excess Collateral Improves Over Time
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 Total Assets Excluding SBIC Assets Add: Equity Value of SBIC Entities (2) Total Collatera
Slide 61: Key Credit Highlights
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 through efficient internally managed structure • Significant benefits th
Slide 62: MAIN Co-Founders and Executive Management Team
MAIN Co-Founders and Executive Management Team • 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 • • •
Slide 63: Significant Management Ownership / Investment
Significant Management Ownership / Investment Significant equity ownership by MAIN’s management team, coupled with internally managed structure, provides alignment of interest between MAIN’s management and our stakeholders Management (1) 3,334,330 $107,565,486 (1) (2) Includes members of MAIN’s exec
Slide 64: Efficient and Leverageable Operating Structure
Efficient and Leverageable 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
Slide 65: MAIN Maintains a 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% (1) (2) (3) (4) Total operating expenses excluding interest expense For the year ended December 31, 2020 For the year ended December 31, 2020, excl
Slide 66: Stable, Long-Term Leverage – Significant Unused Capacity
Stable, Long-Term Leverage – Significant Unused Capacity Facility MAIN maintains a conservative capital structure, with limited overall leverage and low cost, long-term debt Capital structure is designed to correlate to and complement the expected duration and fixed/floating rate nature of investmen
Slide 67: Long-term Maturity of Debt Obligations
Long-term Maturity of Debt Obligations MAIN’s conservative capital structure provides long-term access to attractively-priced and structured debt facilities $400 $350 $300 • Allows for investments in assets with long-term holding periods / illiquid positions and greater yields and overall returns Pr
Slide 68: Interest Rate Impact and Sensitivity
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 thousands): While MAIN’s financial results are subject to significant im
Slide 69: At-The-Market (ATM) Equity Program
At-The-Market (ATM) Equity Program Provides permanent capital to match indefinite or long-term holding period for LMM investments ATM Equity Program provides efficient, low cost capital Facilitates maintenance of conservative leverage position • Provides permanent capital to match growth of LMM inve
Slide 70: Lower Middle Market (LMM) 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 (10.9% weighted-average cash coupon as of December 31, 2020); plus Divide
Slide 71: LMM Investment Opportunity
LMM Investment Opportunity 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 a
Slide 72: Private Loan Investment Strategy
Private Loan Investment Strategy Investment Objectives 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
Slide 73: Middle Market Debt Investment Strategy
Middle Market Debt Investment Strategy Investment Objective •Generate cash yield to support MAIN monthly dividend MAIN maintains a portfolio of debt investments in Middle Market companies Investments in secured and/or rated debt investments •First lien, senior secured debt investments •Floating rate
Slide 74: Asset Management Business
Asset Management Business MAIN’s asset management business represents additional income diversification and the opportunity for greater stakeholder returns MAIN’s internally managed operating structure provides MAIN’s stakeholders the benefits of this asset management business In May 2012, MAIN(1) e
Slide 75: Total Investment Portfolio
Total Investment Portfolio Includes complementary LMM debt and equity investments, Private Loan debt investments and Middle Market debt investments Diversity provides structural protection to investment portfolio, revenue sources, income, cash flows Total investment portfolio at fair value consists
Slide 76: Portfolio Snapshot – Significant Diversification
Portfolio Snapshot – Significant Diversification (1) Excludes the External Investment Manager, as described in MAIN’s public filings Main Street Capital Corporation NYSE: MAIN mainstcapital.com Page 28 12/31/201712/31/201812/31/201912/31/2020 Number of Portfolio Companies Lower Middle Market70696970
Slide 77: Portfolio Snapshot – Significant Diversification (cont.)
Portfolio Snapshot – Significant Diversification (cont.) (1) Excludes the External Investment Manager, as described in MAIN’s public filings Main Street Capital Corporation NYSE: MAIN mainstcapital.com Page 29 12/31/2017 12/31/2018 12/31/2019 12/31/2020 $ Invested - Fair Value Lower Middle Market $
Slide 78: Portfolio Snapshot – Significant Diversification (cont.)
Portfolio Snapshot – Significant Diversification (cont.) Main Street Capital Corporation NYSE: MAIN mainstcapital.com Page 30 12/31/201712/31/201812/31/201912/31/2020 % of Total $ Invested in Debt that is First Lien (Cost Basis) Lower Middle Market$511.0$670.5$647.4$712.6 % of Lower Middle Market98.
Slide 79: Total Portfolio by Industry
(1) Total Portfolio by Industry (as a Percentage of Cost) Machinery, 6% Aerospace & Defense, 6% Health Care Providers & Services, 5% Commercial Services & Supplies, 5% Software, 5% IT Services, 4% Oil, Gas & Consumable Fuels, 3% Hotels, Restaurants & Leisure, 3% Food Products, 3% Media, 2% Diversifi
Slide 80: Diversified Total Portfolio
(1) Diversified Total Portfolio (as a Percentage of Cost) tion/ (1) Excluding MAIN’s Other Portfolio investments and the External Investment Manager, as described in MAIN’s public filings, which represent approximately 6% of the total portfolio (2) Based upon portfolio company headquarters and exclu
Slide 81: LMM Investment Portfolio
LMM Investment Portfolio 70 portfolio companies / $1,285.5 million in fair value •48% of total investment portfolio at fair value LMM Investment Portfolio consists of a diversified mix of secured debt and lower cost basis equity investments Debt yielding 11.6%(1) (66% of LMM portfolio at cost) • • •
Slide 82: LMM Investment Portfolio
LMM Investment Portfolio 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 3.0x EBITDA through MAIN debt position 2.4x EBITDA to senior interest coverage Total leve
Slide 83: 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 63 investments / $740.4 million in fair value •27% of total investment portfolio at fair value Average investment size of $12
Slide 84: Middle Market Investment Portfolio
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 / $445.6 million in fair
Slide 85: Non-GAAP Information
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 distributabl
Slide 86: Appendix
Main Street Capital Corporation Appendix Main Street Capital Corporation NYSE: MAIN mainstcapital.com Page 38
Slide 87: MAIN Income Statement Summary
MAIN Income Statement Summary Total Investment Income $ 60,649 $56,150 $ 52,007 $ 51,954 $ 62,504 3% Expenses: Interest Expense G&A Expense (13,122) (5,477) (12,441) (4,327) (11,898) (5,998) (12,489) (6,442) (12,761) (7,488) 3% (37)% Distributable Net Investment Income (DNII)(3) DNII Margin % 42,050
Slide 88: MAIN Per Share Change in Net Asset Value
MAIN Per Share Change in Net Asset Value (NAV) Beginning NAV Distributable Net Investment Income(4) Share-Based Compensation Expense Net Realized Loss Net Unrealized Appreciation (Depreciation) $ 24.20 $ 23.91 $ 20.73 $ 20.85 $ 21.52 0.66 (0.04) (0.01) (0.37) 0.61 (0.04) (0.34) (3.01) 0.52 (0.04) (0
Slide 89: MAIN Balance Sheet Summary
MAIN Balance Sheet Summary LMM Portfolio Investments Middle Market Portfolio Investments $ 1,206,865 522,083 $ 1,168,150 418,442 $ 1,188,006 410,501 $ 1,228,060 441,292 $ 1,285,521 445,610 Private Loan Investments 692,117 629,094 653,824 743,684 740,371 Other Portfolio Investments External Investmen
Slide 90: MAIN Corporate Data
MAIN Corporate Data Please visit our website at www.mainstcapital.com for additional information Board of Directors Board of Directors (cont.) Research Coverage Corporate Headquarters Investor Relation Contacts Valerie L. Banner SVP, Governance & Risk Exterran Corporation Stephen B. Solcher Executiv