Main Street Capital : 1st Quarter 2024 Debt Capital Markets Presentation

Debt Capital Markets Presentation

First Quarter - 2024

Main Street Capital Corporation

NYSE: MAIN

mainstcapital.com

Disclaimers

Main Street Capital Corporation (MAIN) 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 presentation are based on current conditions as of May 10, 2024, and include, but are not limited to, statements regarding our goals, beliefs, strategies, future operating results and cash flows, operating expenses, investment originations and performance, available capital, payment and the tax attributes of future dividends and shareholder returns. Although our management believes that the expectations reflected in any forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made based on various underlying assumptions and are subject to numerous uncertainties and risks, including, without limitation: our continued effectiveness in raising, investing and managing capital; adverse changes in the economy generally or in the industries in which our portfolio companies operate; the impacts of macroeconomic factors on MAIN and its portfolio companies' business and operations, liquidity and access to capital, and on the U.S. and global economies, including impacts related to pandemics and other public health crises, risk of recession, inflation, supply chain constraints or disruptions and changes in market index interest rates; changes in laws and regulations or business, political and/or regulatory conditions that may adversely impact our operations or the operations of our portfolio companies; the operating and financial performance of our portfolio companies and their access to capital; retention of key investment personnel; competitive factors; and such other factors described under the captions "Cautionary Statement Concerning Forward-Looking Statements," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" included in our filings with the Securities and Exchange Commission (the SEC)(www.sec.gov), including our most recent annual report on Form 10-K and subsequently filed quarterly reports on Form 10-Q. We undertake no obligation to update the information contained herein to reflect subsequently occurring events or circumstances, except as required by applicable securities laws and regulations.

Main Street Capital Corporation

MAIN has filed a registration statement (which includes a prospectus) with the SEC for any offering to which this communication may relate and may file one or more supplements to the prospectus in the future.

MAIN is classified as a non-diversified investment company within the meaning of the 1940 Act, which means that it is not limited by the 1940 Act with respect to the proportion of its assets that it may invest in securities of a single issuer. Before you invest in any of MAIN's securities, you should read the registration statement, the prospectus and the applicable prospectus supplement(s) in order to fully understand all of the implications and risks of an offering of MAIN's securities. You should also read other documents MAIN has filed with the SEC for more complete information about MAIN and its securities offerings. You may access these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, MAIN will arrange to send you any applicable prospectus and prospectus supplement if you request such materials by calling us at [phone]. These materials are also made available, free of charge, on our website at www.mainstcapital.com. Information contained on our website is not incorporated by reference into this communication.

The summary descriptions and other information included herein are intended only for informational purposes and convenient reference. The information contained herein is not intended to provide, and should not be relied upon for, accounting, legal or tax advice or investment recommendations. Before making an investment decision with respect to MAIN, investors are advised consult with their tax, financial, investment and legal advisors.

NYSE: MAIN

mainstcapital.com

Page 2

Main Street Capital Corporation

1st Quarter - 2024

Main Street Capital Corporation

NYSE: MAIN

mainstcapital.com

Page 3

MAIN is a Principal Investor in Private Debt and Equity

Focus on unique Lower Middle Market debt and equity investment strategy, Asset Management Business and internally managed operating structure differentiates MAIN from other investment firms

Conservative capital structure with multiple issuer investment grade ratings

• Fitch - BBB-/stable outlook
• S&P - BBB-/stable outlook

Internally-managed Business Development Company (BDC)

• IPO in 2007
• Over $7.4 billion in capital under management(1)
• • Over $5.8 billion internally at MAIN(1)
  • Over $1.6 billion as the investment adviser to external parties(1)

Primarily invests in the under-served Lower Middle Market (LMM)

• Targets companies with revenue between $10 million - $150 million; EBITDA between $3 million - $20 million
• Provides single source solutions, including a combination of first lien, senior secured debt and equity financing

Proprietary debt investments in privately held companies typically owned by private equity sponsors (Private Loans)

• Originated directly by MAIN or through strategic relationships with other investment funds
• First lien, senior secured debt investments
• Companies consistent with size of the companies in MAIN's LMM and Middle Market investment strategies

Debt investments in Middle Market companies

• First lien, senior secured and/or rated debt investments
• Larger companies than LMM investment strategy

Attractive asset management advisory business Significant management ownership / investment in MAIN Headquartered in Houston, Texas

1. Capital under management includes undrawn portion of debt capital as of March 31, 2024

Main Street Capital Corporation

NYSE: MAIN

mainstcapital.com

Page 4

Investment Portfolio - By Type of Investment(1)

1. Fair value as of March 31, 2024
2. Excludes $103.4 million of fair value of short-term portfolio investments, as described in MAIN's SEC filings, as these investments are deemed to be short-term in nature, as opposed to a long-term component of MAIN's investment portfolio
3. Other portfolio investments, as described in MAIN's SEC filings

Main Street Capital Corporation

NYSE: MAIN

mainstcapital.com

Page 5

Unique Investment Strategy

MAIN's investment strategy differentiates MAIN from its competitors and provides highly attractive risk-adjusted returns

Lower Middle Market (LMM)

• Proprietary investments that are difficult for investors to access
• Companies with $10 million - $150 million of revenues and $3 million - $20 million of EBITDA
• Customized financing solutions which include a combination of first lien, senior secured debt and equity
• Large addressable market
• High cash yield from debt investments
• Dividend income, NAV growth and net realized gains from equity investments

Private Loans

• Companies that are similar in size to companies in LMM and Middle Market
• First lien, senior secured debt investments in privately held companies originated directly by MAIN or through strategic relationships with other investment funds
• Floating rate debt investments
• Proprietary investments that can be difficult for investors to access
• Investments with attractive risk-adjusted returns

Middle Market

• Larger companies than LMM strategy, with EBITDA between $20 million - $100 million

• First lien, senior secured debt investments

• Floating rate debt investments

• Large addressable market

• MAIN has been de-emphasizing this strategy for the last few years and expects to continue to do so in the future

Main Street Capital Corporation

NYSE: MAIN

Asset Management Business

• MAIN serves as the investment adviser to several third-party clients
• Monetizing value of MAIN's intangible assets
• Significant contribution to net investment income
• Source of stable, recurring fee income
• Returns benefit MAIN stakeholders due to internally managed structure

mainstcapital.com

Page 6

Portfolio Highlights(1)

The benefits of MAIN's unique investment strategy have resulted in a high quality, diversified and mature investment portfolio

Lower Middle Market

• $2.4 billion of total investments
• 81 companies
• $1.3 billion of debt investments (56%)
• $1.1 billion of equity investments (44%)
• Typical initial investment target of 75% debt / 25% equity
• Over 99% of debt investments are first lien(2)
• Average investment size of $29.2 million at fair value or $22.8 million at cost
• Weighted-averageeffective yield on debt of 12.8%(3)

Private Loans

• $1.5 billion of total investments
• 88 companies
• $1.4 billion of debt investments (93% of Private Loan portfolio)
• Over 99% of debt investments are first lien(2)
• Average investment size of $17.5 million(2)
• 96% of debt investments bear interest at floating rates(2)
• Weighted-averageeffective yield of 12.8%(3)

Middle Market

Total Portfolio(4)

• $238.6 million of total investments

• 22 companies

• $231.6 million of debt investments (97% of Middle Market portfolio)

• Over 99% of debt investments are first lien(2)

• Average investment size of $12.9 million(2)

• 86% of debt investments bear interest at floating rates(2)

• Weighted-average effective yield of 12.9%(3)

• MAIN has been and expects to continue to deemphasize this strategy

1. As of March 31, 2024; investment amounts at fair value, unless otherwise noted
2. As of March 31, 2024; based on cost

• $4.4 billion of total investments
• 206 companies and entities
• $3.0 billion of debt investments (67%)
• $1.4 billion of equity investments (33%), including $109.9 million of Other Portfolio investments
• Over 99% of debt investments are first lien(2)
• 67% of debt investments bear interest at floating rates(2)
• Weighted-averageeffective yield on debt investments of 12.8%(3)

1. As of March 31, 2024; weighted-average effective yield is calculated using the applicable interest rate as of March 31, 2024 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
2. Includes $185.3 million of fair value ($29.5 million of cost basis) of equity investment relating to MAIN's wholly-owned unconsolidated subsidiary, MSC Adviser I, LLC (the External Investment Manager); excludes $103.4 million of fair value of short-term portfolio investments, as described in MAIN's SEC filings, as these investments are deemed to be short-term in nature, as opposed to a long-term component of MAIN's investment portfolio

Main Street Capital Corporation

NYSE: MAIN

mainstcapital.com

Page 7

Business Development Company (BDC) Background

Created by Congress in 1980 through the Small Business Investment Incentive Act of 1980 to facilitate the flow of capital to small and mid- sized U.S. businesses

Highly regulated by the SEC under the Investment Company Act of 1940 (1940 Act)

Provide a way for individual investors to participate in debt and equity investments in private companies

Leverage

• Regulatory restrictions on debt leverage levels require BDCs to maintain conservative leverage
• Must maintain an asset to debt coverage ratio of at least 1.5x

Full Transparency

• Detailed schedule of all investments (and related key terms) in quarterly and annual reporting
• Quarterly fair value mark to market accounting

Income Tax Treatment

• As a Regulated Investment Company (RIC), BDCs generally do not pay corporate income taxes
• To maintain RIC status and avoid paying corporate income taxes, BDCs must distribute at least 90% of taxable income (other than net capital gain) to investors
• To avoid a 4% federal excise tax on undistributed income, BDCs must distribute in each calendar year the sum of (1) 98% of their net ordinary income for the calendar year and (2) 98.2% of their realized capital gains (both long-term and short-term)
• Tax treatment is similar to Real Estate Investment Trusts (REITs)

Main Street Capital Corporation

NYSE: MAIN

mainstcapital.com

Page 8

MAIN Capital Structure

Current capitalization ($ in 000's)		3/31/2024		% of
		Capitalization
Cash	$	114,984
Credit Facilities(1)(3)		323,000	7.1 %
July 2026 Notes(2)		500,000	10.9 %
May 2024 Notes(2)(3)		450,000	9.8 %
March 2029 Notes(2)		350,000	7.6 %
December 2025 Notes(2)		150,000		3.3 %
Total non-SBIC debt	$	1,773,000	38.7 %
SBIC Debentures(2)		286,200		6.3 %
Total debt		$2,059,200	45.0 %
Book value of equity		2,515,970		55.0 %
Total capitalization		$4,575,170	100.0 %
Debt / Capitalization		0.45x
Debt / Book equity		0.82x
Debt / Enterprise value(4)		0.34x
Debt / Market capitalization(4)		0.51x
Stock price / Net asset value per share(4)		1.60x

1. Includes MAIN's Corporate Facility and SPV Facility (together, the Credit Facilities); see page 18 for further detail related to MAIN's Credit Facilities
2. Debt amounts reflected at par value
3. On May 1, 2024, MAIN repaid the May 2024 Notes at maturity with borrowings under its Credit Facilities
4. Based on stock price of $47.31 as of March 31, 2024

Main Street Capital Corporation

NYSE: MAIN

mainstcapital.com

Page 9

Conservative Leverage

As of March 31, 2024 ($ in 000's)		Non-SBIC			SBICs			Total
Total Assets	$	4,198,077	$	560,741	$	4,758,818
Debt Capital:
Credit Facilities(1)(3)		323,000			-			323,000
SBIC Debentures		-			281,013			281,013
Notes Payable(2)(3)		1,444,402			-			1,444,402
Total Debt	$	1,767,402		$	281,013		$	2,048,415
Net Asset Value (NAV)	$	2,237,784	$	278,186	$	2,515,970
Key Leverage Stats
Interest Coverage Ratio(4)(9)		4.28x			6.38x			4.50x
Asset Coverage Ratio(5)		2.37x			1.96x			2.31x
Consolidated Asset Coverage Ratio - Regulatory(6)		N/A			N/A			2.41x
Debt to Assets Ratio		0.42x			0.50x			0.43x
Regulatory Debt to NAV Ratio(6)(7)		N/A			N/A			0.70x
Debt to NAV Ratio(7)		0.79x			1.03x			0.82x
Net Debt to NAV Ratio(8)(9)		0.75x			0.98x			0.77x

1. See page 18 for further detail related to MAIN's Credit Facilities
2. Includes the carry value of the July 2026 Notes ($498.8 million; $500.0 million par), the May 2024 Notes ($450.0 million; $450.0 million par), the March 2029 Notes ($346.5 million; $350.0 million par) and the December 2025 Notes ($149.1 million; $150.0 million par)
3. On May 1, 2024, MAIN repaid the May 2024 Notes at maturity with borrowings under its Credit Facilities
4. Distributable Net Investment Income (DNII)(8) + interest expense / interest expense on a trailing twelve-month basis
5. Calculated as total assets divided by total debt at par, including July 2026 Notes ($500.0 million), May 2024 Notes ($450.0 million), March 2029 Notes ($350.0 million), SBIC Debentures ($286.2 million) and December 2025 Notes ($150.0 million)
6. Calculated per BDC regulations; SBIC Debentures are not included as "senior debt" for purposes of the BDC asset coverage requirements, and thereby are excluded from Regulatory Debt to NAV Ratio, pursuant to exemptive relief received by MAIN
7. Debt to NAV Ratio is calculated based upon the par value of debt
8. Net debt in this ratio includes par value of debt less cash and cash equivalents of $100.9 million, $14.1 million and $115.0 million for the Non-SBIC, SBICs and Total, respectively
9. See Non-GAAP Information disclosures on page 37 and reconciliation of DNII to Net Investment Income on page 39 of this presentation

Main Street Capital Corporation

NYSE: MAIN

mainstcapital.com

Page 10