Core Insights - Main Street Capital Corporation reported strong performance in Q4 2025, achieving a return on equity (ROE) of 17.7% for the quarter and 17.1% for the full year, alongside record net asset value (NAV) per share for the fourteenth consecutive quarter [7][50] - The company experienced significant investment activity in the lower middle market, with a net increase of $253 million in lower middle market investments, marking the highest quarterly activity since 2021 [13][36] - A supplemental dividend of $0.30 per share was declared, reflecting strong performance and a total of $1.20 per share in supplemental dividends over the past twelve months, representing a 39% increase over regular monthly dividends [17][18] Financial Performance - Total investment income for Q4 was $145.5 million, a 3.6% increase year-over-year, driven by strong dividend and fee income [38] - Dividend income rose by $11.4 million compared to the previous year, attributed to the positive performance of lower middle market portfolio companies [41] - Operating expenses increased by $1.4 million year-over-year, primarily due to higher compensation-related expenses [44] Investment Strategy - The company invested over $700 million in the lower middle market in 2025, with $482 million allocated to new platform companies and $219 million to follow-on investments [28] - The lower middle market strategy is characterized by a focus on debt and equity investments in underserved markets, providing attractive leverage points and income yields [24][25] - The company maintains a conservative capital structure with a regulatory debt-to-equity leverage of 0.71 times, allowing for continued growth and investment opportunities [50][52] Portfolio and Market Outlook - The investment pipeline for lower middle market investments is described as above average, with expectations for strong activity in Q1 2026 [19][20] - The company has seen significant interest from potential buyers in its portfolio companies, indicating favorable realizations in the near future [12] - The private loan portfolio represented 43% of total investments at cost, with a focus on providing customized capital solutions to family-owned businesses [33][27] Management and Governance - The management team has been expanded, with several promotions to Managing Director, enhancing the company's ability to execute its investment strategy [56][87] - The company emphasizes a strong alignment of interests between employees and shareholders, with significant stock ownership among the management team [24]

Financial Data and Key Metrics Changes - The company reported a return on equity (ROE) of 17.7% for the fourth quarter and 17.1% for the full year, indicating strong performance [7] - Distributable net investment income (DNII) per share for the quarter was $1.11, which is $0.03 higher than the same quarter last year and $0.04 higher than the previous quarter [43] - Net asset value (NAV) per share increased by $0.55 from the third quarter and by $1.68, or 5.3%, year-over-year, reaching a record NAV per share of $33.33 [41] Business Line Data and Key Metrics Changes - The company achieved a net increase of $253 million in lower middle market investments, marking the highest level of quarterly net investment activity since Q4 2021 [11] - Private loan investment activity returned to expected normal levels, generating a net increase of $109 million in the private loan portfolio [12] - Total investment income for the fourth quarter was $145.5 million, a 3.6% increase from Q4 2024 and a 4.1% increase from Q3 2025 [33] Market Data and Key Metrics Changes - The company reported significant net fair value appreciation of $150 million in its lower middle market portfolio for 2025, alongside $77 million in net realized gains [26] - The private loan portfolio represented 43% of total investments at year-end, with gross investments of approximately $672 million completed in the private loan strategy [29] - Investments on non-accrual status comprised approximately 1% of the total investment portfolio at fair value [40] Company Strategy and Development Direction - The company continues to focus on its unique lower middle market investment strategy, which has proven to deliver attractive returns and significant downside protection [22][25] - The company plans to maintain a conservative capital structure and strong liquidity position, allowing for continued growth in investment portfolios despite market uncertainties [42] - The company aims to grow its Asset Management business and is optimistic about future performance and returns for investors [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength and quality of portfolio companies, anticipating continued strong contributions from lower middle market investments [9][11] - The company expects to propose an additional significant supplemental dividend in June 2026, based on favorable performance expectations [17] - Management noted that the current economic environment makes their flexible financing solutions more attractive to lower middle market companies [17] Other Important Information - The company declared a supplemental dividend of $0.30 per share, representing the 18th consecutive quarterly supplemental dividend [15] - The regular monthly dividends for Q2 2026 will be $0.26 per share, a 4% increase from the previous year [16] - The company has expanded its corporate facility commitments by $30 million, enhancing its liquidity position [42] Q&A Session Summary Question: Activity Level and Future Expectations - Analyst inquired about the high activity level in Q4 and whether it indicates a sustained increase in activity or a temporary spike [46] - Management responded that intentional growth in the lower middle market and improved execution contributed to the high activity, with expectations for continued above-average activity [49][50] Question: Resiliency of ROE - Analyst asked about the underlying drivers affecting ROE and the outlook for the intermediate term [66] - Management indicated confidence in ROE, noting that economic conditions and new investments will impact future performance [67][70] Question: Software Exposure - Analyst questioned the company's limited exposure to software and its outlook in that sector [58] - Management reiterated a cautious approach to software investments, focusing on value-based opportunities rather than high valuations [60][62] Question: Talent Pipeline and Management - Analyst asked about the talent pipeline and management's approach to promoting from within [80] - Management expressed confidence in the internal talent pool and the promotion of long-term employees to managing director positions [82]

Financial Data and Key Metrics Changes - The company reported a return on equity (ROE) of 17.7% for the fourth quarter and 17.1% for the full year, indicating strong performance [7] - Distributable net investment income (DNII) per share reached a record level, contributing to the positive financial results [9] - Net asset value (NAV) per share increased by $0.55 from the previous quarter and by $1.68, or 5.3%, year-over-year, reaching a record NAV of $33.33 [41] Business Line Data and Key Metrics Changes - The lower middle market investment strategy saw a net increase of $253 million in investments, marking the highest quarterly activity since Q4 2021 [12] - The private loan portfolio experienced a net increase of $109 million, returning to expected normal levels of activity [13] - The company achieved $150 million in net fair value appreciation from the lower middle market portfolio in 2025, along with $77 million in net realized gains [25] Market Data and Key Metrics Changes - The company maintained a conservative regulatory debt-to-equity leverage ratio of 0.71 times, with asset coverage at 2.41 times, both of which are more conservative than long-term targets [41][42] - The investment portfolio at fair value was 17% above the cost basis at year-end, indicating strong performance across investments [31] Company Strategy and Development Direction - The company aims to continue leveraging its unique investment strategies in the lower middle market and private loan sectors, focusing on providing flexible financing solutions [17][23] - There is a strong emphasis on maintaining a conservative capital structure and significant liquidity to support future growth [42] - The company plans to recommend future supplemental dividends if DNII significantly exceeds regular monthly dividends, reflecting confidence in ongoing performance [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength and quality of portfolio companies, anticipating continued strong contributions from lower middle market investments [10] - The outlook for the first quarter of 2026 is positive, with expectations for DNII before taxes of at least $1.04 per share [43] - Management noted that the current economic uncertainty may enhance the attractiveness of their investment offerings to potential partners [50] Other Important Information - The company declared a supplemental dividend of $0.30 per share, marking the 18th consecutive quarterly supplemental dividend [15] - The total supplemental dividends paid over the trailing 12-month period amounted to $1.20 per share, representing a 39% increase over regular monthly dividends [16] Q&A Session Summary Question: Activity level and future expectations - Management indicated that the high activity level in Q4 is a result of intentional growth strategies and market conditions, suggesting a potential shift in activity levels rather than a temporary spike [45][48] Question: Resiliency of ROE and current operating environment - Management acknowledged a slight decrease in ROE year-over-year but expressed confidence in the underlying strength of portfolio companies and their management teams, which are expected to outperform in various economic conditions [68][70] Question: Talent pipeline and internal promotions - Management confirmed a strong internal talent pipeline, with recent promotions of long-term employees to managing director positions, indicating confidence in the team's capabilities [82][84] Question: Investment pipeline and industry focus - Management noted a diverse investment pipeline without concentration in any specific industry, maintaining a broad-based approach to investment opportunities [85]

Investor Presentation Fourth Quarter – 2025 Main Street Capital Corporation NYSE: MAIN mainstcapital.com www.mainstcapital.com Main Street Capital Corporation NYSE: MAIN mainstcapital.com Page 1 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 ...

Investor Presentation Disclosure Fidus Investment Corporation ("Fidus") 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 and include statements regarding our goals, beliefs, strategies and future operating results and cash flows, including but not limited to the equivalent a ...

Financial Data and Key Metrics Changes - Fundings for the last quarter totaled $126.6 million, with net originations at $103.1 million, while exits and prepayments declined to $23.5 million [3][4] - Interest income rose 14% to $23.8 million, driven by a 16.2% increase in average earning assets, although the weighted average portfolio yield declined by 30 basis points to 12.5% [3][8] - Net investment income for the period was $11.4 million, with net realized losses of $6.3 million related to the exit of FES Resources [4][8] - Total assets increased to $908 million, with net assets rising to $482 million, and NAV per share increased from $21.25 to $21.34 [9][10] Business Line Data and Key Metrics Changes - The portfolio turnover did not materially impact the investment mix, with first lien debt rising to 72% of the portfolio's fair value [4] - PIC income increased to $2 million, representing 8.4% of interest income, attributed to two recent investments [5] Market Data and Key Metrics Changes - The company experienced a significant increase in fair value of the investment portfolio by $63 million for the fiscal year, despite challenges faced [5][6] - The company maintained a conservative leverage position with net debt at 82.5% of NAV [7] Company Strategy and Development Direction - The company continues to focus on investing in growth-oriented lower middle market businesses, leveraging relationships with private equity sponsors [12][13] - The strategy includes providing attractive financing solutions to the private equity market, with expectations of continued growth in the lower middle market [6][12] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the lower middle market's resilience against spread erosion and leverage escalation [6] - The company is well-positioned for future growth, with a healthy pipeline of investment opportunities and a strong balance sheet [12] Other Important Information - Monthly distributions for November and December will be $0.15 per common share, with an annual run rate of $1.80 per share [10][11] - The company has refinanced its debt, enhancing financial flexibility and maturity profile [7][12] Q&A Session Summary Question: Update on the pipeline and mix of new versus add-on opportunities - The company is tracking approximately $100 million of potential volume, with a mix of new and follow-on acquisition opportunities [16][18] Question: Decline in portfolio yield - The decline was primarily due to lower base rates, with new deals still maintaining attractive spreads [21][22] Question: Consideration of share repurchases - The company is tempted to consider share repurchases given the current stock price and low leverage [30] Question: Dividend reduction rationale - The reduction was a proactive measure to maintain financial health amid potential rate compressions [34][36] Question: Outlook for elevated repayment activity - Management believes that while some repayments may continue, the maturity of investments and extended hold periods will mitigate risks [42][44] Question: Credit concerns in the portfolio - No new non-accruals were reported, and while some assets are being monitored, the overall credit position remains strong [45][46]

Financial Data and Key Metrics Changes - The company reported total investment income of $144 million for the second quarter, an increase of $11.8 million or 8.9% year-over-year and $6.9 million or 5.1% from the previous quarter [25] - Annualized return on equity was 17.1%, and distributable net investment income (DNII) per share exceeded dividends paid to shareholders [9][30] - Net asset value (NAV) per share reached a record of $32.3, increasing by $0.27 from the previous quarter and by $2.5 or 8.4% year-over-year [30] Business Line Data and Key Metrics Changes - The lower middle market portfolio saw a net increase in investments of $108 million, while private loan investments decreased by $35 million due to lower overall private equity activity [11][24] - The company achieved significant realized gains of $109 million from equity investments in two lower middle market portfolio companies [20][21] - Dividend income increased by $11.2 million year-over-year, driven by the positive performance of lower middle market portfolio companies [26] Market Data and Key Metrics Changes - The private loan investment pipeline was characterized as slightly below average, attributed to a slowdown in overall private equity industry activity [16][18] - The company maintained a diversified portfolio with investments in 187 companies across various industries, with no single investment representing more than 3.9% of total investment income [24] Company Strategy and Development Direction - The company focuses on a differentiated investment strategy in the lower middle market, providing flexible financing solutions and maintaining a long-term investment horizon [16][19] - Plans to grow the asset management business and continue executing investment strategies in the lower middle market were highlighted [12][14] - The company remains optimistic about future investment opportunities, particularly in the lower middle market, despite current economic uncertainties [16][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability of portfolio companies to navigate economic uncertainties, with a focus on avoiding new investments in companies with significant consumer exposure [38][40] - The company anticipates continued favorable performance in the third quarter, with expectations for additional supplemental dividends if DNII significantly exceeds regular dividends [15][30] Other Important Information - The company declared a supplemental dividend of $0.30 per share, marking the sixteenth consecutive quarterly supplemental dividend [14] - The total investment portfolio at fair value was 17% above the related cost basis at quarter-end [24] Q&A Session Summary Question: Insights on the reduction in private loan investments - Management indicated that the reduction was due to a combination of lower investment activity and higher-than-expected repayments, with the overall private equity industry still slow [34][35] Question: Themes in underperformance within the portfolio - Management noted that underperformance was primarily in consumer businesses, particularly at the lower end of the market, and indicated a cautious approach to new investments in this sector [39][40] Question: Future exit opportunities and realized gains - Management believes there are potential exit opportunities in the near term, with a mature portfolio that could lead to additional realized gains [44][46] Question: Relationship between spread tightening and deal activity - Management explained that softer deal activity is linked to a decrease in M&A activity in the private equity sector, with expectations for improvement in the future [50][52] Question: Funding options for upcoming debt maturities - Management highlighted strong liquidity and a conservative capital structure, allowing flexibility in addressing upcoming debt maturities [53][55]

Company Overview and Strategy - Main Street Capital Corporation (MAIN) focuses on Lower Middle Market (LMM) debt and equity investments and has an asset management business[7] - The company manages over $8.4 billion in capital, with over $6.5 billion managed internally and approximately $1.9 billion managed for external parties[8] - MAIN aims to provide sustainable growth in recurring monthly dividends, supplemental dividends, and long-term capital appreciation to shareholders[9] Dividend and NAV Growth - Monthly dividends have increased by 132% from $0.33 per share in Q4 2007 to $0.765 per share for Q4 2025[12, 16] - Supplemental dividends of $1.20 per share were paid or declared during the last twelve months[12] - Net Asset Value (NAV) has grown by $19.45 per share (or 151%) since 2007[14, 16] Investment Portfolio - The total investment portfolio is diversified, with approximately 52% in LMM investments and 38% in Private Loan investments[50] - The LMM portfolio has 88 companies with $2.7 billion in fair value, with debt yielding 12.8% and an average equity ownership of 38%[62, 63] - The Private Loan portfolio consists of 87 investments with $1.9 billion in fair value, yielding 11.4%[81, 82] Financial Performance - Total investment income for the year-to-date 2025 is $541 million[93] - Distributable Net Investment Income (DNII) for the year-to-date 2025 is $281 million[93] - DNII per share for Q2 2025 is $1.06[104] Capital Structure and Liquidity - The company has total SBIC debentures regulatory financing capacity of $350 million[12, 35] - Total liquidity is $1.351 billion, including cash and availability under credit facilities[108] - 79% of MAIN's outstanding debt obligations have fixed interest rates[118]

Overview - Fidus Investment Corporation has a diversified investment portfolio totaling $1.1 billion as of June 30, 2025, invested in 92 companies[12] - The company targets firms with annual revenues between $10 million and $150 million[20] - Fidus' senior investment professionals have an average of over 25 years of relevant experience[31] Investment Strategy & Performance - Fidus targets investments between $5 million and $35 million per portfolio company[18] - The company's cumulative realized net capital gains from equity investments since IPO is $175.2 million[37] - The adjusted NAV per share at June 30, 2025, was $19.57, a 35.3% premium to the IPO level of $14.46[37] - Fidus has a historical annual median GAAP ROE of 12.5% since its initial IPO[41] Portfolio & Financial Review - The weighted average debt yield of the investment portfolio is 13.1%[47] - Secured debt investments constitute 82.5% of the portfolio[49] - Equity represents 12.0% of portfolio fair value versus cost of 8.0%[58] - The company maintains an attractive 11.2% dividend yield based on total LTM dividends of $2.26 per share as of June 30, 2025[68]

Core Insights - Main Street Capital Corporation reported strong financial results for the second quarter of 2025, with a net investment income of $0.99 per share and a distributable net investment income of $1.06 per share, reflecting a 2% and 3% increase respectively compared to the same period in 2024 [1][5][10] - The company achieved an annualized return on equity of 17.1% and a net asset value of $32.30 per share, marking a 0.8% increase from the previous quarter [3][5][11] - The company declared a supplemental dividend of $0.30 per share, continuing a trend of increasing dividends over the past few years [3][5] Financial Performance - Total investment income for the second quarter of 2025 was $144.0 million, an increase of 9% from $132.2 million in the same quarter of 2024, driven primarily by a $11.2 million increase in dividend income [4][6][10] - Net investment income increased by $4.3 million, or 5%, to $88.2 million, while distributable net investment income rose by $5.5 million, or 6%, to $94.3 million [5][10] - The company reported a net increase in net assets resulting from operations of $122.5 million, a 19% increase from the prior year [11][29] Investment Portfolio - As of June 30, 2025, Main Street's investment portfolio included 88 lower middle market (LMM) companies with a fair value of $2.67 billion and 87 private loan companies with a fair value of $1.92 billion [15][30] - The weighted-average annual effective yield for the LMM portfolio was 12.8%, while the private loan portfolio had a yield of 11.4% [15][16] - The company completed $209.3 million in total LMM portfolio investments and $188.6 million in private loan portfolio investments during the quarter [5][11] Capital Structure and Liquidity - Main Street had aggregate liquidity of $1.351 billion as of June 30, 2025, including $87.0 million in cash and cash equivalents [14][17] - The company maintains a diversified capital structure with total liabilities of $2.40 billion and total net assets of $2.88 billion [30][31] - Main Street has investment grade credit ratings of BBB- from both Fitch Ratings and S&P Global Ratings, reaffirmed in 2025 [17][18] Dividend Policy - The company declared regular monthly dividends totaling $0.765 per share for the third quarter of 2025, representing a 4.1% increase from the previous year [5][10] - Total dividends paid in the second quarter of 2025 amounted to $1.05 per share, a 2.9% increase from the same quarter in 2024 [5][10]