Main Street Capital Corporation · NYSE:MAIN
Main Street Capital — Q1 2025 Earnings Presentation
47 slides from Main Street Capital's earnings presentation, May 9, 2025
Slide 1: Investor Presentation First Quarter 2025
Investor Presentation First Quarter – 2025 Main MainStreet Capital Street Capital Corporation Corporation NYSE: NYSE: MAIN MAIN mainstcapital.com mainstcapital.com Page 1
Slide 2: Disclaimers
Disclaimers Main Street Capital Corporation (MAIN) cautions that statements in this MAIN has filed a registration statement (which includes a prospectus) with presentation that are forward-looking, and provide other than historical the SEC for any offering to which this communication may relate and
Slide 3: Corporate Overview and Investment Strategy
Main Street Capital Corporation Corporate Overview and Investment Strategy 1st Quarter – 2025 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 Focus on unique Lower Internally-managed Business Development Company (BDC) Middle Market debt and • IPO in 2007 equity investment • Over $8.2 billion in capital under management(1) strategy, Asset – Over $6.4 billion internally at MAIN(1) Mana
Slide 5: MAIN is a Principal Investor in Private Debt and Equity
MAIN is a Principal Investor in Private Debt and Equity MAIN’s unique investment Long-term focus on delivering our shareholders sustainable strategy, efficient growth in net asset value and recurring dividends per share operating structure and conservative Consistent cash dividend yield – dividends
Slide 6: MAIN is a Principal Investor in Private Debt and Equity
MAIN is a Principal Investor in Private Debt and Equity Focus on LMM equity Equity investments in LMM portfolio provide the opportunity to grow investments and net asset value (NAV) per share and generate recurring dividend efficient operating income and periodic realized gains to support MAIN’s div
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 (DNII)(1), and dividends paid, as investment portfoli
Slide 8: Historical Monthly Dividends, NAV and DNII Per Share
Historical Monthly Dividends, NAV and DNII(1) Per Share MAIN’s unique focus on LMM equity investments provides the opportunity for significant NAV per share growth MAIN’s efficient operating structure provides significant operating leverage, greater dividends and greater overall returns for our shar
Slide 9: LMM Investment Strategy
LMM Investment Strategy LMM investment Investment Objectives strategy differentiates • High cash yield from secured debt investments (12.4%(1) MAIN from its weighted-average cash coupon as of March 31, 2025); plus competitors and • Dividend income, fair value appreciation and periodic capital gains
Slide 10: LMM Investment Opportunity
LMM Investment Opportunity MAIN targets LMM Large and critical portion of U.S. economy investments in • 245,000+ domestic LMM businesses(1) established, profitable companies LMM is under-served from a capital perspective and less competitive Characteristics of LMM provide beneficial risk- reward inv
Slide 11: Private Loan Investment Strategy
Private Loan Investment Strategy Private Loan portfolio Investment Objectives investments are primarily • Access proprietary investments with attractive risk-adjusted return debt investments in characteristics privately held companies • Generate cash yield to support MAIN’s monthly dividend which ha
Slide 12: Asset Management Business
Asset Management Business MAIN’s Asset MAIN(1) is the investment adviser to several third party clients in its AMB Management Business MAIN(1) is the investment adviser to and administrator of MSC Income Fund, (AMB) represents Inc. (NYSE: MSIF), a publicly traded BDC solely focused on MAIN’s Private
Slide 13: MAIN Regulatory Framework
MAIN Regulatory Framework Highly regulated Operates as a Business Development Company structure provides • Regulated by the SEC - 1940 Act significant advantages • Publicly-traded, private investment company and protections to our shareholders, including Regulated Investment Company (RIC) tax struct
Slide 14: MAIN Corporate Structure – Internally Managed
MAIN Corporate Structure – Internally Managed “Internally managed” structure means no Main Street Capital external management fees Corporation or expenses are paid, (BDC/RIC) providing operating leverage to MAIN’s Assets: ~$4.7 billion business; MAIN targets Credit Facilities: $514 million total ope
Slide 15: MAIN Executive Management Team
MAIN Executive Management Team • Co-founded MAIN in 2002; affiliated with Main Street group since 1999 Dwayne Hyzak(1)(2) CEO • Director of Acquisitions & Integration with Quanta Services (NYSE: PWR) • Manager with a Big 5 Accounting Firm’s audit and transaction services groups • Co-founded MAIN in
Slide 16: Monthly Dividends Per Share – Sustainable Growth
Monthly Dividends Per Share – Sustainable Growth Recurring monthly dividend has Trailing Twelve Months Monthly Dividends Per Share never been decreased and has grown meaningfully (132%) since IPO(1) Based upon the most recently declared monthly dividends, the annual effective yield on MAIN’s stock i
Slide 17: Total Dividends per Share – Significant Incremental Value to Shareholders
Total Dividends per Share – Significant Incremental Value to Shareholders MAIN’s dividend policy Trailing Twelve Months Total Dividends Per Share includes an expectation for consistent annual growth of its monthly dividends and meaningful coverage of such monthly dividends with recurring Distributab
Slide 18: Investment Portfolio
Main Street Capital Corporation Investment Portfolio 1st Quarter – 2025 Main Street Capital Corporation NYSE: MAIN mainstcapital.com Page 18
Slide 19: Total Investment Portfolio
Total Investment Portfolio Diversity provides Includes complementary LMM debt and equity investments and Private structural protection to Loan debt investments investment portfolio, revenue sources, income, Total investment portfolio at fair value consists of approximately 52% LMM / cash flows and 3
Slide 20: Total Portfolio by Industry (as a Percentage of Cost)
Total Portfolio by Industry (as a Percentage of Cost)(1) (1) Excluding MAIN’s Other Portfolio investments and the External Investment Manager, each as described in MAIN’s SEC filings, which in aggregate represent approximately 4% of the total investment portfolio at cost Main Street Capital Corporat
Slide 21: Diversified Total Portfolio (as a Percentage of Cost)
Diversified Total Portfolio (as a Percentage of Cost)(1) Invested Capital by Transaction Type Invested Capital by Geography(3) (2) 33% 25% 23% 21% 45% 11% 19% 20% 3% (1) Excluding MAIN’s Other Portfolio investments and the External Investment Manager, each as described in MAIN’s SEC filings, which i
Slide 22: LMM Investment Portfolio
LMM Investment Portfolio LMM investment 86 portfolio companies / $2.6 billion in fair value portfolio consists of a • 52% of total investment portfolio at fair value diversified mix of secured debt and lower Debt yielding 12.7%(1) (71% of LMM portfolio at cost) cost basis equity • Over 99% of debt i
Slide 23: LMM Investment Portfolio
LMM Investment Portfolio LMM investment portfolio Median LMM portfolio credit statistics(1): is a pool of high quality, • Senior leverage of 2.6x EBITDA through MAIN’s debt position seasoned assets with • 3.0x EBITDA to senior interest coverage attractive risk-adjusted • Total leverage of 2.6x EBITD
Slide 24: LMM Portfolio by Industry (as a Percentage of Cost)
LMM Portfolio by Industry (as a Percentage of Cost) Main Street Capital Corporation NYSE: MAIN mainstcapital.com Page 24
Slide 25: Diversified LMM Portfolio (as a Percentage of Cost)
Diversified LMM Portfolio (as a Percentage of Cost) Invested Capital by Transaction Type Invested Capital by Geography(2) LBO/MBO(1) Recapitalization/ Refinancing 27% 22% 29% 10% 59% 29% 10% 10% 4% Acquisition Growth Capital (1) Leveraged Buyout / Management Buyout (2) Based upon portfolio company h
Slide 26: LMM Portfolio Attributes Reflect Investment Strategy
LMM Portfolio Attributes Reflect Investment Strategy High yielding secured Security Position on Debt Fully Diluted Equity Ownership %(2) debt investments coupled Investments as a % of Cost with significant equity participation = Attractive risk-adjusted returns 1st Lien 1% Weighted-Average Effective
Slide 27: Term and Total Interest Coupon of Existing LMM Debt Investments
Term and Total Interest Coupon of Existing LMM Debt Investments Original Term(1) Total Interest Coupon(2) 15% Current Interest Original Term 14% Current Floating Interest 7% Interest Rate 2% 9% (Wtd. Avg. of 11% 12.5%)(3) 28% 13% Current Interest <10% Current Interest 2% 4% 10% Current 40% 1% Intere
Slide 28: Private Loan Investment Portfolio
Private Loan Investment Portfolio Private Loan investment 90 investments / $1.9 billion in fair value portfolio provides a • 38% of total investment portfolio at fair value diversified mix of investments and Average investment size of $22.1 million(1) (less than 1% of total sources of income to port
Slide 29: Private Loan Portfolio by Industry (as a Percentage of Cost)
Private Loan Portfolio by Industry (as a Percentage of Cost) Main Street Capital Corporation NYSE: MAIN mainstcapital.com Page 29
Slide 30: Diversified Private Loan Portfolio (as a Percentage of Cost)
Diversified Private Loan Portfolio (as a Percentage of Cost) Invested Capital by Transaction Type Invested Capital by Geography(2) LBO/MBO(1) 38% Recapitalization / Refinancing 27% 20% 30% 30% 11% 12% 3% 29% Acquisition Growth Capital (1) Leveraged Buyout / Management Buyout (2) Based upon portfolio
Slide 31: Financial Overview
Main Street Capital Corporation Financial Overview 1st Quarter – 2025 Main Street Capital Corporation NYSE: MAIN mainstcapital.com Page 31
Slide 32: MAIN Financial Performance
MAIN Financial Performance Total Investment Income ($ in millions) Distributable Net Investment Income(1) ($ in millions) Year over Year Change Year over Year Change (2) (2) 30% 30% 33% 8% 4% 30% 32% 39% 5% 0.5% $560.0 $400.0 $520.0 $541.0 $375.0 $375.0 $480.0 $350.0 $500.4 $356.8 $325.0 $440.0 $300
Slide 33: Long-Term Portfolio and DNII Per Share Growth
Long-Term Portfolio and DNII(1) Per Share Growth MAIN has consistently grown portfolio investments and DNII(1) per share over its long-term history (1) See reconciliation of DNII per share to Net Investment Income per share on page 36 and Non-GAAP Information disclosures on page 46 of this presentat
Slide 34: Efficient and Leverageable Operating Structure
Efficient and Leverageable Operating Structure MAIN’s internally “Internally managed” structure means no external management managed operating fees or expenses are paid structure provides significant operating Alignment of interest between management and investors leverage and greater • Greater ince
Slide 35: MAIN Maintains a Significant Operating Cost Advantage
MAIN Maintains a Significant Operating Cost Advantage Operating Expenses(1) as a Percentage of Total Assets 3.0% 2.5% 2.0% 1.5% 1.0% Other BDCs 0.5% MAIN Excl. Excl. Non-cash Non-cash Comp Exp Other BDCs Comp Exp Commercial (5)(6) MAIN (2) (3)(4) (5)(7) Banks (8) 0.0% (1) Total expenses excluding in
Slide 36: MAIN Income Statement Summary
MAIN Income Statement Summary Q1 25 vs. Q1 24 ($ in 000s, except per share amounts) Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Change(1) Total Investment Income $ 131,606 $ 132,154 $ 136,824 $ 140,442 $ 137,046 4% Expenses: Interest Expense (26,776) (29,161) (33,474) (34,018) (31,168) (16)% G&A Expense(2) (10,45
Slide 37: MAIN Per Share Change in Net Asset Value (NAV)
MAIN Per Share Change in Net Asset Value (NAV) ($ per share) Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Beginning NAV $ 29.20 $ 29.54 $ 29.80 $ 30.57 $ 31.65 Distributable Net Investment Income(1) 1.11 1.07 1.06 1.08 1.07 Non-Cash Compensation Expenses(1) (0.06) (0.06) (0.06) (0.06) (0.06) Net Realized Gain (Los
Slide 38: MAIN Balance Sheet Summary
MAIN Balance Sheet Summary ($ in 000s, except per share amounts) Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 LMM Portfolio Investments $ 2,361,511 $ 2,439,993 $ 2,468,794 $ 2,502,872 $ 2,610,960 Private Loan Portfolio Investments 1,519,538 1,747,502 1,883,291 1,904,324 1,942,178 Middle Market Portfolio Investment
Slide 39: MAIN Liquidity and Capitalization
MAIN Liquidity and Capitalization ($ in 000s) Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Cash and Cash Equivalents $ 114,984 $ 30,472 $ 84,421 $ 78,251 $ 109,180 (1) Availability Under Credit Facilities 1,102,000 915,000 1,250,000 1,326,000 1,193,300 Total Liquidity $ 1,216,984 $ 945,472 $ 1,334,421 $ 1,404,251
Slide 40: Stable, Long-Term Leverage – Significant Unused Capacity
Stable, Long-Term Leverage – Significant Unused Capacity MAIN maintains a Facility Interest Rate Maturity Principal Drawn conservative capital $1.11 billion August 2027(1) SOFR+1.875%(1) floating (6.3%(4)) $338.0 million structure, with limited Corporate Facility(1)(3) June 2029(1) overall leverage
Slide 41: Long-term Maturity of Debt Obligations
Long-term Maturity of Debt Obligations MAIN’s conservative $900.0 capital structure $850.0 provides long-term $800.0 $491.1 $750.0 access to attractively- $700.0 priced and structured $650.0 debt facilities $600.0 $550.0 • Allows for investments in (in millions) $500.0 assets with long-term $450.0 $
Slide 42: Interest Rate Impact and Sensitivity
Interest Rate Impact and Sensitivity MAIN’s financial results are The following table illustrates the approximate annual changes in the components of MAIN’s net investment income (NII) due to hypothetical increases (decreases) in interest rates(1)(2) (dollars in subject to impact from changes in tho
Slide 43: Significant Management and Board of Directors Ownership / Investment
Significant Management and Board of Directors Ownership / Investment Significant equity # of Shares (2) Market Value (3) ownership by MAIN’s Management (1) 3,410,039 $192,871,782 management team and its Board of Directors, coupled with internally managed structure, provides alignment of interest bet
Slide 44: MAIN Total Return Performance Since IPO
MAIN Total Return(1) Performance Since IPO Notes: (1) Indexed as of October 5, 2007 and last trading date is March 31, 2025 (2) Assumes dividends reinvested on date paid (3) The KBW Nasdaq Regional Banking Index is a modified market capitalization weighted index designed to track the performance of
Slide 45: 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 46: Non-GAAP Information
Non-GAAP Information Distributable net investment income is net investment income as Net Debt to NAV Ratio is calculated as the Debt to NAV Ratio as determined in accordance with U.S. Generally Accepted Accounting Principles, determined in accordance with U.S. GAAP, except that total debt is reduced
Slide 47: MAIN Corporate Data
MAIN Corporate Data Please visit our website at www.mainstcapital.com for additional information Board of Directors Executive Officers Research Coverage Corporate Headquarters Investor Relation Contacts th Vincent D. Foster Dwayne L. Hyzak Sean-Paul Adams 1300 Post Oak Blvd, 8 Floor Chairman of the