Fidus Investment Corporation · NASDAQ:FDUS
Fidus Investment — Q2 2025 Earnings Presentation
32 slides from Fidus Investment's earnings presentation, Aug 8, 2025
Slide 1: Investor Presentation
Investor Presentation NASDAQ: Common Stock – FDUS
Slide 2: Disclosure
Disclosure Fidus Investment Corporation (“Fidus”) 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: Table of Contents
Table of Contents I. Overview II. Investment Strategy & Performance III. Portfolio & Financial Review IV. Conclusion V. Appendices i. Investment Portfolio as of June 30, 2025 ii. Balance Sheet iii. Income Statement iv. Reconciliation of Adjustment Net Investment Income v. Corporate Information Capit
Slide 4: I. Overview
I. Overview Capital. Partnership. Expertise. 4 www.fdus.com
Slide 5: Fidus Investment Corporation
Fidus Investment Corporation Long term focus on delivering stable dividends, preserving capital and growing net asset value for our shareholders History Strategy • May 2007 – Closed initial fund and licensed as • Provide customized debt and equity financing Small Business Investment Company (“SBIC”)
Slide 6: II. Investment Strategy & Performance
II. Investment Strategy & Performance Capital. Partnership. Expertise. 6 www.fdus.com
Slide 7: Proven Investment Strategy
Proven Investment Strategy • Provide custom-tailored debt and equity financing solutions for lower middle market companies – Finance event-driven transactions such as leveraged buyouts, refinancings, recapitalizations, acquisitions and growth capital – Opportunistic investments in special situations
Slide 8: Lower Middle Market Focus
Lower Middle Market Focus • Large, fragmented market – More than 100,000 companies in the lower middle market – Target firms with annual revenues between $10 and $150 million • Consistent long-term need for investment capital – Lower middle market predominantly comprised of private companies – Limit
Slide 9: Investment Criteria
Investment Criteria Target established, profitable companies with the following characteristics: • Niche market leaders with defensible market positions − Products or services of enduring value and/or sustainable competitive advantages • Diversified customer and supplier bases • Proven business mode
Slide 10: Proprietary Direct Origination Platform
Proprietary Direct Origination Platform Extensive, diverse relationships across the lower middle market drive attractive deal flow and present significant growth opportunities Platform Overview Broad Origination Network • Unique platform with direct origination capabilities Committed Private Indepen
Slide 11: Disciplined Investment Process
Disciplined Investment Process • Rigorous analysis → deep, data-intensive review of investment target and industry fundamentals • Focus on minimizing risk of capital loss without forgoing opportunity for capital appreciation Investment Origination Direct sourcing across multiple channels • Consisten
Slide 12: Proactive Risk Management
Proactive Risk Management • Proactive portfolio monitoring ‒ Monthly financial review and quarterly covenant compliance ‒ Active dialogue with management teams and sponsors ‒ Board observation rights in large majority of investments ‒ Quarterly portfolio reviews with Investment Committee ‒ Objective
Slide 13: Experienced Team
Experienced Team • Fidus’ senior investment professionals have an average of >25 years of relevant experience • Founding members have worked together for the majority of the last 25+ years • 36 professionals across three offices (Charlotte, Evanston, and New York) Executive Management Investment and
Slide 14: Performance Track Record
Performance Track Record Long-term focus on maintaining dividend coverage and preserving capital Dividend and Distributions ($ per share) • Cumulative adjusted net investment income exceeds cumulative regular dividends Thirty-six special or supplemental dividends declared since IPO (aggregate of $
Slide 15: BDC Industry Performance
BDC Industry Performance FDUS has generated excellent results compared to other industry participants • Historical annual median GAAP ROE of 12.5% since initial IPO • One of the top five BDCs among 33 BDCs monitored by Raymond James (data through Q1’25) BDC Relative Performance Since IPO (Source: Ra
Slide 16: III. Portfolio & Financial Review
III. Portfolio & Financial Review Capital. Partnership. Expertise. 16 www.fdus.com
Slide 17: Measured Annual Portfolio Growth
Measured Annual Portfolio Growth (1) Portfolio count excludes residual investments in portfolio companies that have sold their underlying operations Capital. Partnership. Expertise. 17 www.fdus.com
Slide 18: Diversified Portfolio
Diversified Portfolio(1) ($ in Millions) Invested Portfolio Investments at Fair Value $1,149.3 Weighted Average Debt Yield(2) 13.1% Investments on Non-Accrual at Cost 2.9% Investments on Non-Accrual at Fair Value 0.5% Fair Value to Cost Ratio 101.8% Portfolio Companies Number of Active Portfolio Com
Slide 19: Debt Portfolio Trends
Debt Portfolio Trends • FDUS typically leads the debt structuring process Focus on maintaining attractive risk-adjusted returns and structural downside protections Emphasis on first lien, senior-secured structures • Continually targeting larger, more stable companies within the lower middle mark
Slide 20: Upside Potential from Equity Investments
Upside Potential from Equity Investments • FDUS equity investment portfolio provides additional potential upside to shareholders through capital gains and dividend income – Maintain equity investments in 87.6% of portfolio companies (avg. ownership 1.9%) – Equity represents 12.0% of portfolio fair v
Slide 21: Financial Highlights
Financial Highlights ($ in 000s, except per share data) Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Income Statement Highlights, per share (1) Adjusted Net Investment Income $ 0.57 $ 0.61 $ 0.54 $ 0.54 $ 0.57 Net Investment Income 0.53 0.64 0.55 0.53 0.53 Net Increase in Net Assets 0.75 0.49 0.52 0.58 0.72 (2) 0.
Slide 22: Diversified Liability Profile
Diversified Liability Profile • FDUS maintains an attractive and diversified liability funding structure $140 million senior secured floating-rate syndicated revolving credit facility (ING agent) Five year unsecured fixed-rate notes 10-year fixed-rate SBIC debentures • As of June 30, 2025, 100
Slide 23: IV. Conclusion
IV. Conclusion Capital. Partnership. Expertise. 23 www.fdus.com
Slide 24: Why Invest in FDUS?
Why Invest in FDUS? • Attractive 11.2% dividend yield1 based on total LTM dividends of $2.26 per share (including supplemental and special cash dividends). Spillover income of $1.39 per share as of June 30, 2025. Proven Investment Track • Average annual GAAP ROE of 12.5%, consistently exceeding aver
Slide 25: Appendices
Appendices Capital. Partnership. Expertise. 25 www.fdus.com
Slide 26: Investment Portfolio as of June 30, 2025
Investment Portfolio as of June 30, 2025 $ in '000s (1) Portfolio Company Nature of Principal Business Investment Types Cost Fair Value 2KDirect, Inc. (dba iPromote) Information Technology Services FL-Debt, Equity $ 9,816 $ 8,834 301 Edison Holdings Inc. (dba LGG Industrial) Specialty Distribution F
Slide 27: Investment Portfolio as of June 30, 2025
Investment Portfolio as of June 30, 2025 $ in '000s Portfolio Company Nature of Principal Business Investment Types (1) Cost Fair Value Janus Health Technologies, Inc. Information Technology Services Equity $ 1,500 $ 944 Jumo Health, Inc. Healthcare Services FL-Debt, Equity 6,661 6,904 Laboratory Te
Slide 28: Statements of Assets & Liabilities
Statements of Assets & Liabilities ($ in 000s, except per share data) Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Investments, at fair value Control Investments $ - $ - $ - $ - $ - Affiliate Investments 83,747 85,827 102,024 91,066 94,492 Non-control/Non-affiliate Investments 994,677 1,004,848 988,482 1,063,342 1
Slide 29: Statements of Operations
Statements of Operations ($ in 000s, except per share data) Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Total Investment Income $35,664 $38,382 $37,457 $36,496 $39,970 Expenses: Interest Expense $6,062 $6,026 $6,298 $6,773 $7,769 Base Management Fee 4,706 4,848 4,869 4,922 5,106 Incentive Fee - Income 4,546 5,059
Slide 30: Reconciliation of Adjusted Net Investment Income
Reconciliation of Adjusted Net Investment Income The following are reconciliations of net investment income (NII) and NII per share computed in accordance with GAAP to Adjusted NII, a non-GAAP measure, and Adjusted NII per share which exclude capital gains incentive fee expense or (reversal) based o
Slide 31: Corporate Data
Corporate Data Executive Officers Investment Committee Corporate Headquarters Research Coverage Edward H. Ross John H. Grigg 1603 Orrington Avenue Keefe, Bruyette & Woods, Inc. Chairman & CEO Managing Director Suite 1005 Paul Johnson, CFA Evanston, IL 60201 Thomas C. Lauer Thomas C. Lauer www.fdus.c
Slide 32: Capital. Partnership. Expertise.
Capital. Partnership. Expertise. www.fdus.com