Main Street Capital Investor Day Presentation Deck
Lower Middle Market (LMM) Investments Overview (cont.)
Investment Objectives
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Achieve high relative cash yield from secured debt
investments
Debt Profile (2) (73% of MAIN's portfolio at cost)
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Lower leverage profiles than available in larger credits
Attractive equity investment valuation levels
(1)
Benefit from dividend income, unrealized appreciation and
periodic capital gains as equity investments mature over
tim e
Equity Profile (2)
Opportunity for cash dividend income, fair value appreciation
and capital gains
99% of debt investments have first lien position
Attractive yields averaging 12.6%
Equity Ownership 100% of LMM portfolio companies
41% (2) average MAIN ownership (and 50% (2)
combined for MAIN and MSC Income Fund)
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(3)
64% of LMM companies with direct equity investment are
currently paying dividends and 63% have fair value
(2)
appreciation
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
2.0x 4.0x EBITDA at entry
(2)
Current average leverage of 3.1x
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I
Target of $3 million $20 million
Current average of $8.3 million (2)
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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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