Main Street Capital Investor Day Presentation Deck
Lower Middle Market (LMM) Investments Overview
LMM Dynamics
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Invest in generally underserved market of smaller
companies with attractive risk-adjusted return profiles
Large market with 195,000+ domestic businesses (1)
Portfolio Composition
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Self-sponsored investment thesis whereby MAIN partners
with existing portfolio company management teams, owners
and operators
(1)
Highly diverse portfolio:
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Differentiated Strategy
Generalist strategy to with no significant exposure
to any specific industries or end markets
Highly diversified with 79 companies, with no
individual company representing more than 3.1% of
MAIN's assets, or 3.7% of MAIN's income
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"One-Stop-Shop" strategy of investing in both the debt
and equity in LMM companies
Equity investments provide upside, while debt
investments protect the downside
Public company vehicle allows for long-term to permeant
hold positions, which our LMM partners value
Investment Size
Target Purchase
Price Multiple
Target Leverage
MAIN Equity
Ownership
EBITDA
Interest Rate
Target Investment Profile
$25 million $75 million
Current average size of $26.7 million
value
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MAINST
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4.5x6.5x Enterprise Value / EBITDA
CAPITAL CORPORATION
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2.0x 4.0x EBITDA at entry
(2)
Current average leverage of 3.1x
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Target of $3 million $20 million
Current average of $8.3 million (2)
15% - 85%
(2)
Current average ownership position of
41% (2)
(and 50% including MSC Income
Fund)
(2)
at fair
10.0% - 14.0%; 12.0%+ at initial investment
Current weighted average cash-coupon of
(2)
12.4%
(2)
Existing portfolio as of March 31, 2023
(3) Includes companies which (a) MAIN is invested in direct equity and (b) are flow-through entities for tax purposes; based upon dividend income for TTM period ended March 31, 2023
Main Street Capital Corporation
NYSE: MAIN
Source: U.S. Census 2017 - U.S. Data Table by Enterprise Receipt Size; 2017 County Business Patterns and 2017 Economic Census; includes Number of Firms with Enterprise Receipt Size between
$10,000,000 and $99,999,999
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