Bain Capital Specialty Finance, Inc. Third Quarter Ended September 30, 2024 Earnings Presentation BAIN CAPITAL SPECIALTY FINANCE, INC. Disclaimer In this material Bain Capital Credit, LP, Bain Capital Credit (Asia), Limited, Bain Capital Credit (Australia), Pty. Ltd., Bain Capital Credit, Ltd., Bain Capital (Ireland) Limited, Bain Capital Investments (Europe) Limited, Bain Capital Credit CLO Advisors, LP, Bain Capital Credit U.S. CLO Manager, LLC, and BCSF Advisors, LP are collectively referred to as "Bain ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Delaware 814-01175 81-2878769 (State or Other Jurisdiction of Incorporation) (Commission File Number) (IRS Employer Identification No.) Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, par value $0.001 per share BCSF New York Stock Exchange FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): October 2 ...

Investment Activity - As of September 30, 2024, the company has invested approximately $8,132.9 million in aggregate principal amount of debt and equity investments since operations began [329]. - For the three months ended September 30, 2024, the company invested $413.1 million in 83 portfolio companies, resulting in a net increase in investments of $165.1 million for the period [350]. - For the nine months ended September 30, 2024, the company invested $1,122.9 million in 134 portfolio companies, leading to a net increase in investments of $105.2 million [352]. - During the three months ended September 30, 2023, the company invested $114.2 million in 59 portfolio companies, resulting in a net increase in investments of $11.4 million for the period [351]. - The company invested $630.8 million in 91 portfolio companies during the nine months ended September 30, 2023, resulting in a net increase of $14.6 million [353]. Portfolio Composition - As of September 30, 2024, the investment portfolio comprised 159 portfolio companies, with 90.8% of the debt bearing a floating rate [358]. - The total amortized cost of performing investments as of September 30, 2024, was $2,367.96 million, with a fair value of $2,380.57 million [360]. - The total amortized cost of the investment portfolio as of December 31, 2023, was $2,301.83 million, with a fair value of $2,298.34 million [361]. - As of December 31, 2023, the company had 137 portfolio companies, with 93.8% of the debt bearing a floating rate [359]. Financial Performance - The company's asset coverage was 187.8% as of September 30, 2024, exceeding the regulatory requirement of 150% [342]. - The weighted average yield of the investment portfolio as of September 30, 2024, was 12.1% [354]. - The company reported a weighted average yield of 13.0% for the investment portfolio as of December 31, 2023 [356]. - The total fair value of the investment portfolio as of September 30, 2024, was $2,407,950, with 95.5% rated 2 [370]. Income and Expenses - For the three months ended September 30, 2024, total investment income was $72,540, compared to $72,390 for the same period in 2023, reflecting a slight increase [372]. - Net investment income for the three months ended September 30, 2024, was $33,984, down from $35,648 in the same period of 2023 [372]. - The composition of investment income for the three months ended September 30, 2024, included interest income of $55,420, down from $57,233 in 2023 [375]. - For the nine months ended September 30, 2024, total investment income was $219,310, a decrease from $222,842 in 2023 [376]. - The total expenses for the three months ended September 30, 2024, were $37,531, compared to $36,102 in the same period of 2023 [372]. - Operating expenses for the three months ended September 30, 2024, totaled $37.5 million, an increase of 3.9% from $36.1 million in the same period of 2023 [378]. Gains and Losses - Net realized gain for the three months ended September 30, 2024, was $2,808, contrasting with a loss of $51,767 in the same period of 2023 [372]. - Net realized gains on investments for the three months ended September 30, 2024, were $4.6 million, compared to a loss of $51.8 million in the same period of 2023 [388]. - For the nine months ended September 30, 2024, net realized gains on investments were $13.9 million, compared to $2.6 million in 2023 [394]. - The net change in unrealized appreciation on investments for the three months ended September 30, 2024, was $999,000, a decrease from $43.1 million in 2023 [391]. Cash and Liquidity - As of September 30, 2024, the company had $59.8 million in cash and cash equivalents, down from $112.5 million as of December 31, 2023 [404]. - Cash used in operating activities for the nine months ended September 30, 2024, was ($7.1) million, primarily due to investments totaling $1,097.8 million [405]. - The company had approximately $501.3 million of availability on its Sumitomo Credit Facility as of September 30, 2024, compared to $343.3 million at the end of 2023 [404]. Debt and Financing - The company has total debt obligations of $1,306,199,000, with significant maturities including $352,500,000 due in more than 5 years [437]. - The base management fee under the Amended Advisory Agreement is set at 1.5% of the average value of gross assets, decreasing to 1.0% if asset coverage falls below 200% [434]. - The weighted average interest rate on borrowings for the nine months ended September 30, 2024, was 5.1%, down from 5.2% for the year ended December 31, 2023 [381]. Risk Management - The company is subject to financial market risks, particularly changes in interest rates, and expects to value many investments at fair value due to lack of readily available market [438]. - The company may engage in foreign currency-denominated investments, which are subject to exchange rate fluctuations, potentially impacting financial results [439]. - Hedging techniques may be employed to mitigate foreign exchange risks, although effectiveness cannot be guaranteed [439]. - The company may utilize instruments such as forward contracts to hedge against currency exchange rate fluctuations affecting portfolio positions [439]. Regulatory and Compliance - The company intends to operate as a RIC and must distribute at least 90% of its net ordinary income and net short-term capital gains to maintain this status [414]. - The company plans to distribute net capital gains at least annually, but may retain some for investment purposes, incurring corporate-level tax [415]. - A dividend reinvestment plan allows stockholders to automatically reinvest cash dividends into additional shares of common stock [416]. Related Party Transactions - The company has entered into related party transactions, including an Amended Advisory Agreement and an Administration Agreement [419]. - The company has adopted a documented valuation policy for investments without readily available market quotations, which includes oversight by the Board [429].

A financial researcher and avid investor with a keen eye for innovation and disruption, as well as growth buy-outs and value stocks. Keeping an eye on the pace of high tech and early growth companies, I write about current events and the biggest news surrounding the industry, and strive to provide readers with ample research and investment opportunities.Analyst’s Disclosure: I/we have a beneficial long position in the shares of BCSF either through stock ownership, options, or other derivatives. I wrote this ...

Financial Data and Key Metrics - Q2 net investment income per share was $0.51, representing an annualized yield of 11.6% on book value and covering the regular dividend by 121% [7] - Q2 earnings per share were $0.45, with an annualized return on equity of 10.2% [7] - Net asset value per share was $17.70 as of June 30, unchanged from the prior quarter [8] - Total investment income for Q2 was $72.3 million, down from $74.5 million in Q1, primarily due to a decrease in other income [21] - Net investment income for Q2 was $33.1 million or $0.51 per share, compared to $34 million or $0.53 per share in Q1 [21] - Net income for Q2 was $29.1 million or $0.45 per share [22] Business Line Data and Key Metrics - Gross originations during Q2 were $307 million, up 55% year-over-year but down 24% from Q1 levels of $403 million [10] - Q2 originations were split nearly half-and-half between new and existing borrowers [10] - 86% of new fundings were into first lien structures, with 9% into investment vehicles [17] - The investment portfolio at fair value was approximately $2.2 billion across 154 portfolio companies operating in 32 industries [17] - 63% of the investment portfolio at fair value was in first lien debt, 5% in second lien or subordinated debt, and 9% in equity and other interests [18] - The weighted average yield on the investment portfolio at amortized cost and fair value were 13.1% and 13.2% respectively, up from 12.9% and 13% in Q1 [18] Market Data and Key Metrics - The private credit market remains well positioned for future growth due to a large amount of private equity dry powder and pressure for sponsors to return capital to investors [9] - Market expectations for future rate cuts have increased, which could drive new activity levels into 2025 [9] - The median EBITDA of borrowers in the core middle market was approximately $45 million [11] - Weighted average yield on new originations was 11.6%, with median leverage levels of 4.6 times [12] Company Strategy and Industry Competition - The company remains focused on investing in first lien senior secured loans to manage downside risk and invest at the top of the capital structure [17] - The company leverages its long-standing relationships with private equity sponsors to grow and execute on longer-term business plans [16] - The company has deep restructuring and workout capabilities to maximize value for shareholders in various market environments [20] Management Commentary on Operating Environment and Future Outlook - The company believes the private credit market is well positioned for future growth despite lower new deal activity [9] - The company expects market conditions to remain favorable, with potential rate cuts driving new activity levels [9] - The company remains committed to delivering value for shareholders through attractive returns on equity [26] Other Important Information - The company declared a third quarter dividend of $0.42 per share and a special dividend, bringing the total Q3 dividend to $0.45 per share [24] - The company increased commitments under its secured revolving credit facility by nearly 30% and extended the maturity to mid-2029 [14] - The company's gross and net leverage ratios were 1.03 times and 0.95 times respectively at the end of Q2 [14] Q&A Session Summary Question: What drove the 20 basis point increase in the overall portfolio yield? - The increase in yield was driven by the optimization of assets between the balance sheet and the Senior Loan Program (SLP) joint venture, which holds lower-yielding assets off the balance sheet [29] Question: What is the interest coverage ratio for the portfolio? - The median interest coverage across the portfolio is more than 2x, with stress tests indicating that any significant degradation is limited to risk rating three and four investments [31] Question: What is the nature of the pick income and when would it become a concern? - The majority of pick income comes from original investment structures, particularly in junior capital investments, with some additional pick from amendments on underperforming companies [33] Question: How are the joint ventures performing, particularly in terms of non-accruals? - The SLP has lower non-accruals (1.5% to 2%) compared to the balance sheet, while the ISLP has seen a slight uptick in non-accruals but still maintains strong performance [38] Question: How does the company view relative value between international and US markets? - The company sees equivalent relative value between US and European markets, with Australia contributing a steady 5% plus or minus [41]

Investment Performance - Net investment income per share for Q2 2024 was $0.51, with an annualized NII yield on book value of 11.6%[5] - Net income per share for Q2 2024 was $0.45, equating to an annualized return on book value of 10.2%[5] - Total investment income for Q2 2024 was $72.3 million, a decrease from $74.5 million in Q1 2024[13] - Net investment income for Q2 2024 was $33.1 million, or $0.51 per share, compared to $34.0 million, or $0.53 per share, in Q1 2024[13] - Total investment income for the six months ended June 30, 2024, was $146,770, compared to $150,452 for the same period in 2023[24] - Net investment income before taxes for the six months ended June 30, 2024, was $69,242, compared to $72,762 for the same period in 2023[24] - Net increase in net assets resulting from operations for the six months ended June 30, 2024, was $64,185, compared to $58,456 for the same period in 2023[24] Investment Portfolio - Total fair value of investments as of June 30, 2024 was $2,237.5 million, a decrease from $2,406.0 million as of March 31, 2024[2] - Investments on non-accrual declined to 1.2% of the total investment portfolio at amortized cost and 1.0% at fair value as of June 30, 2024[5] - Net investment fundings for Q2 2024 were $(167.0) million, compared to $107.1 million in Q1 2024[8] - BCSF has invested approximately $7.8 billion in aggregate principal amount of debt and equity investments since commencing operations[25] Financial Position - Total assets decreased to $2,414,847 as of June 30, 2024, compared to $2,472,348 as of December 31, 2023[20] - Total liabilities decreased to $1,272,302 as of June 30, 2024, compared to $1,335,882 as of December 31, 2023[20] - Net asset value per share increased to $17.70 as of June 30, 2024, compared to $17.60 as of December 31, 2023[20] - The Company's debt-to-equity and net debt-to-equity ratios as of June 30, 2024 were 1.03x and 0.95x, respectively, compared to 1.19x and 1.09x as of March 31, 2024[16] Credit Facility and Commitments - The Company increased commitments under its Sumitomo Credit Facility to $855.0 million from $665.0 million and extended the maturity date to May 18, 2029[5] Dividends - The Company declared a dividend of $0.42 per share for the third quarter of 2024, payable to stockholders of record as of September 30, 2024[5] Expenses - Interest and debt financing expenses for the six months ended June 30, 2024, were $35,687, compared to $40,009 for the same period in 2023[24] - Base management fee for the six months ended June 30, 2024, was $17,587, compared to $18,026 for the same period in 2023[24] - Incentive fee for the six months ended June 30, 2024, was $17,156, compared to $15,118 for the same period in 2023[24]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 814-01175 BAIN CAPITAL SPECIALTY FINANCE, INC. Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange ...

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Bain Capital Specialty Finance, Inc. (NYSE:BCSF) Q1 2024 Results Conference Call May 7, 2024 8:00 AM ET Company Participants Katherine Schneider - Director, Investor Relations Michael Ewald - Chief Executive Officer Mike Boyle - President Amit Joshi - Chief Financial Officer Conference Call Participants Finian O'Shea - Wells Fargo Paul Johnson - KBW Derek Hewett - Bank of America Operator Good morning, ladies and gentlemen, and welcome to the Bain Capital Specialty Finance first quarter ended March 31, 2024 ...