Main Street Capital Investor Day Presentation Deck
Private Loan Investment Strategy
Private Loan portfolio
investments are primarily
debt investments in
privately held companies
which have primarily been
originated directly by MAIN
or to a lesser extent
through strategic
relationships with other
credit funds on a
collaborative basis (often
referred to in the debt
markets as "club deals"
because of the small
lender group size)
MAIN's Private Loan
investments are typically
made to a company owned
by or being acquired by a
private equity sponsor
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Investment Objectives
Access proprietary investments with attractive risk-adjusted return
characteristics
Generate cash yield to support MAIN monthly dividend
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Investment Characteristics
Investments in companies that are consistent with the size of
companies in our LMM and Middle Market portfolios
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Investments in secured debt investments
First lien, senior secured debt investments
Floating rate debt investments
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8% -12% targeted gross yields
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MAINST
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CAPITAL CORPORATION
Proprietary investments originated directly by MAIN or through
strategic relationships with other investment funds on a collaborative
basis
Current Private Loan portfolio companies have weighted-average
EBITDA of approximately $38.1 million(1)
Weighted-average effective yield of 12.4% (2)
Net returns positively impacted by lower overhead requirements and
modest use of leverage
Floating rate debt investments provide matching with MAIN's floating
rate Credit Facilities (3)
(1) As of March 31, 2023; this calculation excludes two Private Loan portfolio companies as EBITDA is not a meaningful metric for these portfolio companies
(2) Weighted-average effective yield is calculated using the applicable interest rate as of March 31, 2023 and includes amortization of deferred debt origination fees and accretion of
original issue discount, but excludes fees payable upon repayment of the debt instruments and any debt investments on non-accrual status
NYSE: MAIN
(3) See Main Street Investor Presentation, available on the MAIN website, for the definition of MAIN's Credit Facilities (page 11) and for additional details about MAIN's Credit
Facilities (page 42)
Main Street Capital Corporation
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