Companies: 10,652     total market cap: $140.500 T
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Main Street Capital
MAIN
#3051
Rank
$5.32 B
Marketcap
๐Ÿ‡บ๐Ÿ‡ธ United States
Country
$59.44
Share price
-2.38%
Change (1 day)
-0.70%
Change (1 year)
๐Ÿ’ณ Financial services
Categories
  1. Main Street Capital
  2. Annual Reports (10-K)
  3. Financial Year 2023

Main Street Capital - 10-K annual report 2023


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Interests2023-12-310001396440main:MSPrivateLoanFundILPMember2023-12-310001396440MS Private Loan Fund II, LP, Secured Debt2023-12-310001396440MS Private Loan Fund II, LP, LP Interests2023-12-310001396440main:MSPrivateLoanFundIILPMember2023-12-310001396440MSC Adviser I, LLC, Member Units2023-12-310001396440MSC Income Fund, Inc., Common Equity2023-12-310001396440Mystic Logistics Holdings, LLC, Secured Debt 12023-12-310001396440Mystic Logistics Holdings, LLC, Secured Debt 22023-12-310001396440Mystic Logistics Holdings, LLC, Common Stock2023-12-310001396440main:MysticLogisticsHoldingsLLCMember2023-12-310001396440NAPCO Precast, LLC, Member Units2023-12-310001396440Nebraska Vet AcquireCo, LLC, Secured Debt 12023-12-310001396440Nebraska Vet AcquireCo, LLC, Secured Debt 22023-12-310001396440Nebraska Vet AcquireCo, LLC, Secured Debt 32023-12-310001396440Nebraska Vet AcquireCo, LLC, Preferred Member Units2023-12-310001396440main:NebraskaVetAcquireCoLLCMember2023-12-310001396440NexRev LLC, Secured Debt 12023-12-310001396440NexRev LLC, Secured Debt 22023-12-310001396440NexRev LLC, Preferred Member Units2023-12-310001396440main:NexRevLLCMember2023-12-310001396440NRP Jones, LLC, Secured Debt2023-12-310001396440NRP Jones, LLC, Member Units 12023-12-310001396440NRP Jones, LLC, Member Units 22023-12-310001396440main:NRPJonesLLCMember2023-12-310001396440NuStep, LLC, Secured Debt 12023-12-310001396440NuStep, LLC, Secured Debt 22023-12-310001396440NuStep, LLC, Preferred Member Units 12023-12-310001396440NuStep, LLC, Preferred Member Units 22023-12-310001396440main:NuStepLLCMember2023-12-310001396440OMi Topco, LLC, Secured Debt2023-12-310001396440OMi Topco, LLC, Preferred Member Units2023-12-310001396440main:OMiTopcoLLCMember2023-12-310001396440Orttech Holdings, LLC, Secured Debt 12023-12-310001396440Orttech Holdings, LLC, Secured Debt 22023-12-310001396440Orttech Holdings, LLC, Preferred Stock2023-12-310001396440main:OrttechHoldingsLLCMember2023-12-310001396440Pearl Meyer Topco LLC, Secured Debt 12023-12-310001396440Pearl Meyer Topco LLC, Secured Debt 22023-12-310001396440Pearl Meyer Topco LLC, Secured Debt 32023-12-310001396440Pearl Meyer Topco LLC, Preferred Equity2023-12-310001396440main:PearlMeyerTopcoLLCMember2023-12-310001396440Pinnacle TopCo, LLC, Secured Debt 12023-12-310001396440Pinnacle TopCo, LLC, Secured Debt 22023-12-310001396440Pinnacle TopCo, LLC, Preferred Equity2023-12-310001396440main:PinnacleTopCoLLCMember2023-12-310001396440PPL RVs, Inc., Secured Debt 12023-12-310001396440PPL RVs, Inc., Secured Debt 22023-12-310001396440PPL RVs, Inc., Common Stock 12023-12-310001396440PPL RVs, Inc., Common Stock 22023-12-310001396440main:PPLRVsIncMember2023-12-310001396440Principle Environmental, LLC, Secured Debt 12023-12-310001396440Principle Environmental, LLC, Secured Debt 22023-12-310001396440Principle Environmental, LLC, Preferred Member Units2023-12-310001396440Principle Environmental, LLC, Common Stock2023-12-310001396440main:PrincipleEnvironmentalLLCMember2023-12-310001396440Quality Lease Service, LLC, Member Units2023-12-310001396440River Aggregates, LLC, Member Units2023-12-310001396440Robbins Bros. Jewelry, Inc., Secured Debt 12023-12-310001396440Robbins Bros. Jewelry, Inc., Secured Debt 22023-12-310001396440Robbins Bros. Jewelry, Inc., Preferred Equity2023-12-310001396440main:RobbinsBrosJewelryIncMember2023-12-310001396440Tedder Industries, LLC, Secured Debt 12023-12-310001396440Tedder Industries, LLC, Secured Debt 22023-12-310001396440Tedder Industries, LLC, Preferred Member Units 12023-12-310001396440Tedder Industries, LLC, Preferred Member Units 22023-12-310001396440Tedder Industries, LLC, Preferred Member Units 32023-12-310001396440main:TedderIndustriesLLCMember2023-12-310001396440Televerde, LLC, Preferred Stock2023-12-310001396440Televerde, LLC, Member Units2023-12-310001396440main:TeleverdeLLCMember2023-12-310001396440Trantech Radiator Topco, LLC, Secured Debt 12023-12-310001396440Trantech Radiator Topco, LLC, Secured Debt 22023-12-310001396440Trantech Radiator Topco, LLC, Common Stock2023-12-310001396440main:TrantechRadiatorTopcoLLCMember2023-12-310001396440Vision Interests, Inc., Series A Preferred Stock2023-12-310001396440Volusion, LLC, Secured Debt2023-12-310001396440Volusion, LLC, Preferred Member Units 12023-12-310001396440Volusion, LLC, Preferred Member Units 22023-12-310001396440Volusion, LLC, Preferred Member Units 32023-12-310001396440Volusion, LLC, Common Stock2023-12-310001396440main:VolusionLLCMember2023-12-310001396440VVS Holdco LLC, Secured Debt 12023-12-310001396440VVS Holdco LLC, Secured Debt 22023-12-310001396440VVS Holdco LLC, Preferred Equity2023-12-310001396440main:VVSHoldcoLLCMember2023-12-310001396440Ziegler’s NYPD, LLC, Secured Debt 12023-12-310001396440Ziegler’s NYPD, LLC, Secured Debt 22023-12-310001396440Ziegler’s NYPD, LLC, Secured Debt 32023-12-310001396440Ziegler’s NYPD, LLC, Preferred Member Units2023-12-310001396440Ziegler’s NYPD, LLC, Warrants2023-12-310001396440main:ZieglersNYPDLLCMember2023-12-310001396440AAC Holdings, Inc., Secured Debt 12023-12-310001396440AAC Holdings, Inc., Secured Debt 22023-12-310001396440AAC Holdings, Inc., Common Stock2023-12-310001396440AAC Holdings, Inc., Warrants2023-12-310001396440main:AACHoldingsIncMember2023-12-310001396440Boccella Precast Products LLC, Secured Debt2023-12-310001396440Boccella Precast Products LLC, Member Units2023-12-310001396440main:BoccellaPrecastProductsLLCMember2023-12-310001396440Buca C, LLC, Secured Debt2023-12-310001396440Buca C, LLC, Preferred Member Units2023-12-310001396440main:BucaCLLCMember2023-12-310001396440Career Team Holdings, LLC, Secured Debt 12023-12-310001396440Career Team Holdings, LLC, Secured Debt 22023-12-310001396440Career Team Holdings, LLC, Common Stock2023-12-310001396440main:CareerTeamHoldingsLLCMember2023-12-310001396440Classic H&G Holdings, LLC, Secured Debt 12023-12-310001396440Classic H&G Holdings, LLC, Secured Debt 22023-12-310001396440Classic H&G Holdings, LLC, Preferred Member Units2023-12-310001396440main:ClassicHGHoldingsLLCMember2023-12-310001396440Congruent Credit Opportunities Funds, LP Interests (Congruent Credit Opportunities Fund III, LP)2023-12-310001396440DMA Industries, LLC, Secured Debt2023-12-310001396440DMA Industries, LLC, Preferred Equity2023-12-310001396440main:DMAIndustriesLLCMember2023-12-310001396440Dos Rios Partners, LP Interests (Dos Rios Partners, LP)2023-12-310001396440Dos Rios Partners, LP Interests (Dos Rios Partners - A, LP)2023-12-310001396440main:DosRiosPartnersMember2023-12-310001396440Dos Rios Stone Products LLC, Class A Preferred Units2023-12-310001396440EIG Fund Investments, LP Interests (EIG Global Private Debt Fund-A, L.P.)2023-12-310001396440Flame King Holdings, LLC, Preferred Equity2023-12-310001396440Freeport Financial Funds, LP Interests (Freeport Financial SBIC Fund LP)2023-12-310001396440Freeport Financial Funds, LP Interests (Freeport First Lien Loan Fund III LP)2023-12-310001396440main:FreeportFinancialFundsMember2023-12-310001396440GFG Group, LLC, Secured Debt2023-12-310001396440GFG Group, LLC, Preferred Member Units2023-12-310001396440main:GFGGroupLLCMember2023-12-310001396440Harris Preston Fund Investments, LP Interests (HPEP 3, L.P.)2023-12-310001396440Harris Preston Fund Investments, LP Interests (HPEP 4, L.P.)2023-12-310001396440Harris Preston Fund Investments, LP Interests (423 COR, L.P.)2023-12-310001396440Harris Preston Fund Investments, LP Interests (423 HAR, L.P.)2023-12-310001396440main:HarrisPrestonFundInvestmentsTwoMember2023-12-310001396440Hawk Ridge Systems, LLC, Secured Debt 12023-12-310001396440Hawk Ridge Systems, LLC, Secured Debt 22023-12-310001396440Hawk Ridge Systems, LLC, Preferred Member Units 12023-12-310001396440Hawk Ridge Systems, LLC, Preferred Member Units 22023-12-310001396440main:HawkRidgeSystemsLLCMember2023-12-310001396440Houston Plating and Coatings, LLC, Unsecured Convertible Debt2023-12-310001396440Houston Plating and Coatings, LLC, Member Units2023-12-310001396440main:HoustonPlatingAndCoatingsLLCMember2023-12-310001396440I-45 SLF LLC, Member Units (Fully diluted 20.0%; 21.75% profits interest)2023-12-310001396440Independent Pet Partners Intermediate Holdings, LLC, Common Equity2023-12-310001396440Infinity X1 Holdings, LLC, Secured Debt2023-12-310001396440Infinity X1 Holdings, LLC, Preferred Equity2023-12-310001396440main:InfinityX1HoldingsLLCMember2023-12-310001396440Integral Energy Services, Secured Debt2023-12-310001396440Integral Energy Services, Preferred Equity2023-12-310001396440Integral Energy Services, Common Stock2023-12-310001396440main:IntegralEnergyServicesMember2023-12-310001396440Iron-Main Investments, LLC, Secured Debt 12023-12-310001396440Iron-Main Investments, LLC, Secured Debt 22023-12-310001396440Iron-Main Investments, LLC, Secured Debt 32023-12-310001396440Iron-Main Investments, LLC, Secured Debt 42023-12-310001396440Iron-Main Investments, LLC, Secured Debt 52023-12-310001396440Iron-Main Investments, LLC, Common Stock2023-12-310001396440main:IronMainInvestmentsLLCMember2023-12-310001396440ITA Holdings Group, LLC, Secured Debt 12023-12-310001396440ITA Holdings Group, LLC, Secured Debt 22023-12-310001396440ITA Holdings Group, LLC, Secured Debt 32023-12-310001396440ITA Holdings Group, LLC, Secured Debt 42023-12-310001396440ITA Holdings Group, LLC, Warrants2023-12-310001396440main:ITAHoldingsGroupLLCMember2023-12-310001396440Johnson Downie Opco, LLC, Secured Debt 12023-12-310001396440Johnson Downie Opco, LLC, Secured Debt 22023-12-310001396440Johnson Downie Opco, LLC, Preferred Equity2023-12-310001396440main:JohnsonDownieOpcoLLCMember2023-12-310001396440OnAsset Intelligence, Inc., Secured Debt 12023-12-310001396440OnAsset Intelligence, Inc., Secured Debt 22023-12-310001396440OnAsset Intelligence, Inc., Secured Debt 32023-12-310001396440OnAsset Intelligence, Inc., Secured Debt 42023-12-310001396440OnAsset Intelligence, Inc., Unsecured Debt2023-12-310001396440OnAsset Intelligence, Inc., Preferred Stock2023-12-310001396440OnAsset Intelligence, Inc., Common Stock2023-12-310001396440OnAsset Intelligence, Inc., Warrants2023-12-310001396440main:OnAssetIntelligenceIncMember2023-12-310001396440Oneliance, LLC, Secured Debt 12023-12-310001396440Oneliance, LLC, Secured Debt 22023-12-310001396440Oneliance, LLC, Preferred Stock2023-12-310001396440main:OnelianceLLCMember2023-12-310001396440Rocaceia, LLC (Quality Lease and Rental Holdings, LLC), Preferred Member Units2023-12-310001396440SI East, LLC, Secured Debt 12023-12-310001396440SI East, LLC, Secured Debt 22023-12-310001396440SI East, LLC, Preferred Member Units2023-12-310001396440main:SIEastLLCMember2023-12-310001396440Slick Innovations, LLC, Secured Debt2023-12-310001396440Slick Innovations, LLC, Common Stock2023-12-310001396440main:SlickInnovationsLLCMember2023-12-310001396440Student Resource Center, LLC, Secured Debt2023-12-310001396440Student Resource Center, LLC, Preferred Equity2023-12-310001396440main:StudentResourceCenterLLCMember2023-12-310001396440Superior Rigging & Erecting Co., Secured Debt2023-12-310001396440Superior Rigging & Erecting Co., Preferred Member Units2023-12-310001396440main:SuperiorRiggingErectingCoMember2023-12-310001396440The Affiliati Network, LLC, Secured Debt 12023-12-310001396440The Affiliati Network, LLC, Secured Debt 22023-12-310001396440The Affiliati Network, LLC, Preferred Stock 12023-12-310001396440The Affiliati Network, LLC, Preferred Stock 22023-12-310001396440main:TheAffiliatiNetworkLLCMember2023-12-310001396440UnionRock Energy Fund II, LP, LP Interests2023-12-310001396440UnionRock Energy Fund III, LP, LP Interests2023-12-310001396440UniTek Global Services, Inc., Secured Convertible Debt 12023-12-310001396440UniTek Global Services, Inc., Secured Convertible Debt 22023-12-310001396440UniTek Global Services, Inc., Preferred Stock 12023-12-310001396440UniTek Global Services, Inc., Preferred Stock 22023-12-310001396440UniTek Global Services, Inc., Preferred Stock 32023-12-310001396440UniTek Global Services, Inc., Preferred Stock 42023-12-310001396440UniTek Global Services, Inc., Common Stock2023-12-310001396440main:UniTekGlobalServicesIncMember2023-12-310001396440Universal Wellhead Services Holdings, LLC, Preferred Member Units2023-12-310001396440Universal Wellhead Services Holdings, LLC, Member Units2023-12-310001396440main:UniversalWellheadServicesHoldingsLLCMember2023-12-310001396440World Micro Holdings, LLC, Secured Debt2023-12-310001396440World Micro Holdings, LLC, Preferred Equity2023-12-310001396440main:WorldMicroHoldingsLLCMember2023-12-310001396440AB Centers Acquisition Corporation, Secured Debt 12023-12-310001396440AB Centers Acquisition Corporation, Secured Debt 22023-12-310001396440AB Centers Acquisition Corporation, Secured Debt 32023-12-310001396440AB Centers Acquisition Corporation, Secured Debt 42023-12-310001396440main:ABCentersAcquisitionCorporationMember2023-12-310001396440Acumera, Inc., Secured Debt 12023-12-310001396440Acumera, Inc., Secured Debt 22023-12-310001396440Acumera, Inc., Warrants2023-12-310001396440main:AcumeraIncMember2023-12-310001396440Adams Publishing Group, LLC, Secured Debt 12023-12-310001396440Adams Publishing Group, LLC, Secured Debt 22023-12-310001396440main:AdamsPublishingGroupLLCMember2023-12-310001396440ADS Tactical, Inc., Secured Debt2023-12-310001396440AMEREQUIP LLC., Secured Debt 12023-12-310001396440AMEREQUIP LLC., Secured Debt 22023-12-310001396440AMEREQUIP LLC., Common Stock2023-12-310001396440main:AMEREQUIPLLCMember2023-12-310001396440American Health Staffing Group, Inc., Secured Debt 12023-12-310001396440American Health Staffing Group, Inc., Secured Debt 22023-12-310001396440main:AmericanHealthStaffingGroupIncMember2023-12-310001396440American Nuts, LLC, Secured Debt 12023-12-310001396440American Nuts, LLC, Secured Debt 22023-12-310001396440American Nuts, LLC, Secured Debt 32023-12-310001396440American Nuts, LLC, Secured Debt 42023-12-310001396440main:AmericanNutsLLCMember2023-12-310001396440American Teleconferencing Services, Ltd., Secured Debt 12023-12-310001396440American Teleconferencing Services, Ltd., Secured Debt 22023-12-310001396440main:AmericanTeleconferencingServicesLtdMember2023-12-310001396440ArborWorks, LLC, Secured Debt 12023-12-310001396440ArborWorks, LLC, Secured Debt 22023-12-310001396440ArborWorks, LLC, Preferred Equity 12023-12-310001396440ArborWorks, LLC, Preferred Equity 22023-12-310001396440ArborWorks, LLC, Common Equity2023-12-310001396440main:ArborWorksLLCMember2023-12-310001396440Archer Systems, LLC, Common Stock2023-12-310001396440ATS Operating, LLC, Secured Debt 12023-12-310001396440ATS Operating, LLC, Secured Debt 22023-12-310001396440ATS Operating, LLC, Secured Debt 32023-12-310001396440ATS Operating, LLC, Common Stock2023-12-310001396440main:ATSOperatingLLCMember2023-12-310001396440AVEX Aviation Holdings, LLC, Secured Debt 12023-12-310001396440AVEX Aviation Holdings, LLC, Secured Debt 22023-12-310001396440AVEX Aviation Holdings, LLC, Common Equity2023-12-310001396440main:AVEXAviationHoldingsLLCMember2023-12-310001396440Berry Aviation, Inc., Preferred Member Units 12023-12-310001396440Berry Aviation, Inc., Preferred Member Units 22023-12-310001396440main:BerryAviationIncMember2023-12-310001396440Bettercloud, Inc., Secured Debt 12023-12-310001396440Bettercloud, Inc., Secured Debt 22023-12-310001396440main:BettercloudIncMember2023-12-310001396440Binswanger Enterprises, LLC, Member Units2023-12-310001396440Bluestem Brands, Inc., Secured Debt 12023-12-310001396440Bluestem Brands, Inc., Secured Debt 22023-12-310001396440Bluestem Brands, Inc., Common Stock2023-12-310001396440Bluestem Brands, Inc., Warrants2023-12-310001396440main:BluestemBrandsIncMember2023-12-310001396440Bond Brand Loyalty ULC, Secured Debt 12023-12-310001396440Bond Brand Loyalty ULC, Secured Debt 22023-12-310001396440Bond Brand Loyalty ULC, Secured Debt 32023-12-310001396440Bond Brand Loyalty ULC, Preferred Equity2023-12-310001396440Bond Brand Loyalty ULC, Common Equity2023-12-310001396440main:BondBrandLoyaltyULCMember2023-12-310001396440Brainworks Software, LLC, Secured Debt 12023-12-310001396440Brainworks Software, LLC, Secured Debt 22023-12-310001396440main:BrainworksSoftwareLLCMember2023-12-310001396440Brightwood Capital Fund Investments, LP Interests (Brightwood Capital Fund III, LP)2023-12-310001396440Brightwood Capital Fund Investments, LP Interests (Brightwood Capital Fund IV, LP)2023-12-310001396440Brightwood Capital Fund Investments, LP Interests (Brightwood Capital Fund V, LP)2023-12-310001396440main:BrightwoodCapitalFundInvestmentsMember2023-12-310001396440Burning Glass Intermediate Holding Company, Inc., Secured Debt 12023-12-310001396440Burning Glass Intermediate Holding Company, Inc., Secured Debt 22023-12-310001396440main:BurningGlassIntermediateHoldingCompanyIncMember2023-12-310001396440CAI Software LLC, Preferred Equity 12023-12-310001396440CAI Software LLC, Preferred Equity 22023-12-310001396440main:CAISoftwareLLCMember2023-12-310001396440CaseWorthy, Inc., Secured Debt 12023-12-310001396440CaseWorthy, Inc., Secured Debt 22023-12-310001396440CaseWorthy, Inc., Secured Debt 32023-12-310001396440CaseWorthy, Inc., Common Equity2023-12-310001396440main:CaseWorthyIncMember2023-12-310001396440Channel Partners Intermediateco, LLC, Secured Debt 12023-12-310001396440Channel Partners Intermediateco, LLC, Secured Debt 22023-12-310001396440Channel Partners Intermediateco, LLC, Secured Debt 32023-12-310001396440Channel Partners Intermediateco, LLC, Secured Debt 42023-12-310001396440main:ChannelPartnersIntermediatecoLLCMember2023-12-310001396440Clarius BIGS, LLC, Secured Debt2023-12-310001396440Computer Data Source, LLC, Secured Debt 12023-12-310001396440Computer Data Source, LLC, Secured Debt 22023-12-310001396440main:ComputerDataSourceLLCMember2023-12-310001396440Construction Supply Investments, LLC, Member Units2023-12-310001396440CQ Fluency, LLC, Secured Debt 12023-12-310001396440CQ Fluency, LLC, Secured Debt 22023-12-310001396440CQ Fluency, LLC, Secured Debt 32023-12-310001396440main:CQFluencyLLCMember2023-12-310001396440Dalton US Inc., Common Stock2023-12-310001396440DTE Enterprises, LLC, Class AA Preferred Member Units (non-voting)2023-12-310001396440DTE Enterprises, LLC, Class A Preferred Member Units2023-12-310001396440main:DTEEnterprisesLLCMember2023-12-310001396440Dynamic Communities, LLC, Secured Debt 12023-12-310001396440Dynamic Communities, LLC, Secured Debt 22023-12-310001396440Dynamic Communities, LLC, Preferred Equity 12023-12-310001396440Dynamic Communities, LLC, Preferred Equity 22023-12-310001396440Dynamic Communities, LLC, Common Equity2023-12-310001396440main:DynamicCommunitiesLLCMember2023-12-310001396440Eastern Wholesale Fence LLC, Secured Debt 12023-12-310001396440Eastern Wholesale Fence LLC, Secured Debt 22023-12-310001396440Eastern Wholesale Fence LLC, Secured Debt 32023-12-310001396440Eastern Wholesale Fence LLC, Secured Debt 42023-12-310001396440Eastern Wholesale Fence LLC, Secured Debt 52023-12-310001396440main:EasternWholesaleFenceLLCMember2023-12-310001396440Emerald Technologies Acquisition Co, Inc., Secured Debt2023-12-310001396440EnCap Energy Fund Investments, LP Interests (EnCap Energy Capital Fund VIII, L.P.)2023-12-310001396440EnCap Energy Fund Investments, LP Interests (EnCap Energy Capital Fund VIII Co-Investors, L.P.)2023-12-310001396440EnCap Energy Fund Investments, LP Interests (EnCap Energy Capital Fund IX, L.P.)2023-12-310001396440EnCap Energy Fund Investments, LP Interests (EnCap Energy Capital Fund X, L.P.)2023-12-310001396440EnCap Energy Fund Investments, LP Interests (EnCap Flatrock Midstream Fund II, L.P.)2023-12-310001396440EnCap Energy Fund Investments, LP Interests (EnCap Flatrock Midstream Fund III, L.P.)2023-12-310001396440main:EnCapEnergyFundInvestmentsMember2023-12-310001396440Engineering Research & Consulting, LLC, Secured Debt 12023-12-310001396440Engineering Research & Consulting, LLC, Secured Debt 22023-12-310001396440main:EngineeringResearchConsultingLLCMember2023-12-310001396440Escalent, Inc., Secured Debt 12023-12-310001396440Escalent, Inc., Secured Debt 22023-12-310001396440Escalent, Inc., Common Equity2023-12-310001396440main:EscalentInc.Member2023-12-310001396440Event Holdco, LLC, Secured Debt 12023-12-310001396440Event Holdco, LLC, Secured Debt 22023-12-310001396440main:EventHoldcoLLCMember2023-12-310001396440Fuse, LLC, Secured Debt2023-12-310001396440Fuse, LLC, Common Stock2023-12-310001396440main:FuseLLCMember2023-12-310001396440Garyline, LLC, Secured Debt 12023-12-310001396440Garyline, LLC, Secured Debt 22023-12-310001396440Garyline, LLC, Common Equity2023-12-310001396440main:GarylineLLCMember2023-12-310001396440GS HVAM Intermediate, LLC, Secured Debt 12023-12-310001396440GS HVAM Intermediate, LLC, Secured Debt 22023-12-310001396440GS HVAM Intermediate, LLC, Secured Debt 32023-12-310001396440GS HVAM Intermediate, LLC, Secured Debt 42023-12-310001396440GS HVAM Intermediate, LLC, Secured Debt 52023-12-310001396440main:GSHVAMIntermediateLLCMember2023-12-310001396440GULF PACIFIC ACQUISITION, LLC, Secured Debt 12023-12-310001396440GULF PACIFIC ACQUISITION, LLC, Secured Debt 22023-12-310001396440GULF PACIFIC ACQUISITION, LLC, Secured Debt 32023-12-310001396440main:GULFPACIFICACQUISITIONLLCMember2023-12-310001396440HDC/HW Intermediate Holdings, Secured Debt 12023-12-310001396440HDC/HW Intermediate Holdings, Secured Debt 22023-12-310001396440main:HDCHWIntermediateHoldingsMember2023-12-310001396440HEADLANDS OP-CO LLC, Secured Debt 12023-12-310001396440HEADLANDS OP-CO LLC, Secured Debt 22023-12-310001396440HEADLANDS OP-CO LLC, Secured Debt 32023-12-310001396440main:HEADLANDSOPCOLLCMember2023-12-310001396440HOWLCO LLC, Secured Debt2023-12-310001396440Hybrid Promotions, LLC, Secured Debt2023-12-310001396440IG Parent Corporation, Secured Debt 12023-12-310001396440IG Parent Corporation, Secured Debt 22023-12-310001396440IG Parent Corporation, Secured Debt 32023-12-310001396440main:IGParentCorporationMember2023-12-310001396440Imaging Business Machines, L.L.C., Secured Debt 12023-12-310001396440Imaging Business Machines, L.L.C., Secured Debt 22023-12-310001396440Imaging Business Machines, L.L.C., Common Equity2023-12-310001396440main:ImagingBusinessMachinesL.L.C.Member2023-12-310001396440Implus Footcare, LLC, Secured Debt2023-12-310001396440Industrial Services Acquisition, LLC, Secured Debt 12023-12-310001396440Industrial Services Acquisition, LLC, Secured Debt 22023-12-310001396440Industrial Services Acquisition, LLC, Preferred Member Units 12023-12-310001396440Industrial Services Acquisition, LLC, Preferred Member Units 22023-12-310001396440Industrial Services Acquisition, LLC, Member Units2023-12-310001396440main:IndustrialServicesAcquisitionLLCMember2023-12-310001396440Infolinks Media Buyco, LLC, Secured Debt 12023-12-310001396440Infolinks Media Buyco, LLC, Secured Debt 22023-12-310001396440main:InfolinksMediaBuycoLLCMember2023-12-310001396440Insight Borrower Corporation, Secured Debt 12023-12-310001396440Insight Borrower Corporation, Secured Debt 22023-12-310001396440Insight Borrower Corporation, Secured Debt 32023-12-310001396440Insight Borrower Corporation, Common Equity2023-12-310001396440main:InsightBorrowerCorporationMember2023-12-310001396440Inspire Aesthetics Management, LLC, Secured Debt 12023-12-310001396440Inspire Aesthetics Management, LLC, Secured Debt 22023-12-310001396440Inspire Aesthetics Management, LLC, Secured Debt 32023-12-310001396440Inspire Aesthetics Management, LLC, Common Equity2023-12-310001396440main:InspireAestheticsManagementLLCMember2023-12-310001396440Interface Security Systems, L.L.C, Secured Debt 12023-12-310001396440Interface Security Systems, L.L.C, Secured Debt 22023-12-310001396440Interface Security Systems, L.L.C, Common Stock2023-12-310001396440main:InterfaceSecuritySystemsLLCMember2023-12-310001396440Intermedia Holdings, Inc., Secured Debt2023-12-310001396440Invincible Boat Company, LLC., Secured Debt 12023-12-310001396440Invincible Boat Company, LLC., Secured Debt 22023-12-310001396440main:InvincibleBoatCompanyLLCMember2023-12-310001396440INW Manufacturing, LLC, Secured Debt2023-12-310001396440Isagenix International, LLC, Secured Debt2023-12-310001396440Isagenix International, LLC, Common Equity2023-12-310001396440main:IsagenixInternationalLLCMember2023-12-310001396440Jackmont Hospitality, Inc., Secured Debt 12023-12-310001396440Jackmont Hospitality, Inc., Secured Debt 22023-12-310001396440Jackmont Hospitality, Inc., Preferred Equity2023-12-310001396440main:JackmontHospitalityIncMember2023-12-310001396440Joerns Healthcare, LLC, Secured Debt 12023-12-310001396440Joerns Healthcare, LLC, Secured Debt 22023-12-310001396440Joerns Healthcare, LLC, Secured Debt 32023-12-310001396440Joerns Healthcare, LLC, Common Stock2023-12-310001396440main:JoernsHealthcareLLCMember2023-12-310001396440JTI Electrical & Mechanical, LLC, Secured Debt 12023-12-310001396440JTI Electrical & Mechanical, LLC, Secured Debt 22023-12-310001396440JTI Electrical & Mechanical, LLC, Common Equity2023-12-310001396440main:JTIElectricalMechanicalLLCMember2023-12-310001396440KMS, LLC, Secured Debt 12023-12-310001396440KMS, LLC, Secured Debt 22023-12-310001396440main:KMSLLCMember2023-12-310001396440Lightbox Holdings, L.P., Secured Debt2023-12-310001396440LKCM Headwater Investments I, L.P., LP Interests2023-12-310001396440LL Management, Inc., Secured Debt 12023-12-310001396440LL Management, Inc., Secured Debt 22023-12-310001396440LL Management, Inc., Secured Debt 32023-12-310001396440LL Management, Inc., Secured Debt 42023-12-310001396440LL Management, Inc., Secured Debt 52023-12-310001396440main:LLManagementIncMember2023-12-310001396440LLFlex, LLC, Secured Debt2023-12-310001396440Logix Acquisition Company, LLC, Secured Debt2023-12-310001396440Looking Glass Investments, LLC, Member Units2023-12-310001396440Mako Steel, LP, Secured Debt 12023-12-310001396440Mako Steel, LP, Secured Debt 22023-12-310001396440main:MakoSteelLPMember2023-12-310001396440MB2 Dental Solutions, LLC, Secured Debt 12023-12-310001396440MB2 Dental Solutions, LLC, Secured Debt 22023-12-310001396440MB2 Dental Solutions, LLC, Secured Debt 32023-12-310001396440MB2 Dental Solutions, LLC, Secured Debt 42023-12-310001396440main:MB2DentalSolutionsLLCMember2023-12-310001396440Microbe Formulas, LLC, Secured Debt 12023-12-310001396440Microbe Formulas, LLC, Secured Debt 22023-12-310001396440main:MicrobeFormulasLLCMember2023-12-310001396440Mills Fleet Farm Group, LLC, Secured Debt2023-12-310001396440Mini Melts of America, LLC, Secured Debt 12023-12-310001396440Mini Melts of America, LLC, Secured Debt 22023-12-310001396440Mini Melts of America, LLC, Secured Debt 32023-12-310001396440Mini Melts of America, LLC, Secured Debt 42023-12-310001396440Mini Melts of America, LLC, Common Equity2023-12-310001396440main:MiniMeltsOfAmericaLLCMember2023-12-310001396440MonitorUS Holding, LLC, Secured Debt 12023-12-310001396440MonitorUS Holding, LLC, Secured Debt 22023-12-310001396440MonitorUS Holding, LLC, Secured Debt 32023-12-310001396440MonitorUS Holding, LLC, Common Stock2023-12-310001396440main:MonitorUSHoldingLLCMember2023-12-310001396440NBG Acquisition Inc, Secured Debt2023-12-310001396440NinjaTrader, LLC, Secured Debt 12023-12-310001396440NinjaTrader, LLC, Secured Debt 22023-12-310001396440NinjaTrader, LLC, Secured Debt 32023-12-310001396440NinjaTrader, LLC, Secured Debt 42023-12-310001396440main:NinjaTraderLLCMember2023-12-310001396440Obra Capital, Inc. (f/k/a Vida Capital, Inc.), Inc, Secured Debt2023-12-310001396440Ospemifene Royalty Sub LLC, Secured Debt2023-12-310001396440Paragon Healthcare, Inc., Secured Debt 12023-12-310001396440Paragon Healthcare, Inc., Secured Debt 22023-12-310001396440Paragon Healthcare, Inc., Secured Debt 32023-12-310001396440main:ParagonHealthcareIncMember2023-12-310001396440Power System Solutions, Secured Debt 12023-12-310001396440Power System Solutions, Secured Debt 22023-12-310001396440Power System Solutions, Secured Debt 32023-12-310001396440Power System Solutions, Common Equity2023-12-310001396440main:PowerSystemSolutionsMember2023-12-310001396440PrimeFlight Aviation Services, Secured Debt 12023-12-310001396440PrimeFlight Aviation Services, Secured Debt 22023-12-310001396440main:PrimeFlightAviationServicesMember2023-12-310001396440PTL US Bidco, Inc, Secured Debt 12023-12-310001396440PTL US Bidco, Inc, Secured Debt 22023-12-310001396440main:PTLUSBidcoIncMember2023-12-310001396440Purge Rite, LLC, Secured Debt 12023-12-310001396440Purge Rite, LLC, Secured Debt 22023-12-310001396440Purge Rite, LLC, Preferred Equity2023-12-310001396440main:PurgeRiteLLCMember2023-12-310001396440RA Outdoors LLC, Secured Debt 12023-12-310001396440RA Outdoors LLC, Secured Debt 22023-12-310001396440main:RAOutdoorsLLCMember2023-12-310001396440Research Now Group, Inc. and Survey Sampling International, LLC, Secured Debt2023-12-310001396440Richardson Sales Solutions, Secured Debt 12023-12-310001396440Richardson Sales Solutions, Secured Debt 22023-12-310001396440main:RichardsonSalesSolutionsMember2023-12-310001396440Roof Opco, LLC, Secured Debt 12023-12-310001396440Roof Opco, LLC, Secured Debt 22023-12-310001396440Roof Opco, LLC, Secured Debt 32023-12-310001396440main:RoofOpcoLLCMember2023-12-310001396440RTIC Subsidiary Holdings, LLC, Secured Debt 12023-12-310001396440RTIC Subsidiary Holdings, LLC, Secured Debt 22023-12-310001396440RTIC Subsidiary Holdings, LLC, Secured Debt 32023-12-310001396440main:RTICSubsidiaryHoldingsLLCMember2023-12-310001396440Rug Doctor, LLC., Secured Debt 12023-12-310001396440Rug Doctor, LLC., Secured Debt 22023-12-310001396440main:RugDoctorLLCMember2023-12-310001396440South Coast Terminals Holdings, LLC, Secured Debt 12023-12-310001396440South Coast Terminals Holdings, LLC, Secured Debt 22023-12-310001396440South Coast Terminals Holdings, LLC, Common Equity2023-12-310001396440main:SouthCoastTerminalsHoldingsLLCMember2023-12-310001396440SPAU Holdings, LLC, Secured Debt 12023-12-310001396440SPAU Holdings, LLC, Secured Debt 22023-12-310001396440SPAU Holdings, LLC, Common Stock2023-12-310001396440main:SPAUHoldingsLLCMember2023-12-310001396440Stellant Systems, Inc., Secured Debt 12023-12-310001396440Stellant Systems, Inc., Secured Debt 22023-12-310001396440main:StellantSystemsInc.Member2023-12-310001396440Team Public Choices, LLC, Secured Debt2023-12-310001396440Tectonic Financial, LLC, Common Stock2023-12-310001396440Tex Tech Tennis, LLC, Preferred Equity2023-12-310001396440U.S. TelePacific Corp., Secured Debt 12023-12-310001396440U.S. TelePacific Corp., Secured Debt 22023-12-310001396440main:U.S.TelePacificCorp.Member2023-12-310001396440USA DeBusk LLC, Secured Debt 12023-12-310001396440USA DeBusk LLC, Secured Debt 22023-12-310001396440USA DeBusk LLC, Secured Debt 32023-12-310001396440main:USADeBuskLLCMember2023-12-310001396440UserZoom Technologies, Inc., Secured Debt2023-12-310001396440Veregy Consolidated, Inc., Secured Debt 12023-12-310001396440Veregy Consolidated, Inc., Secured Debt 22023-12-310001396440main:VeregyConsolidatedIncMember2023-12-310001396440Vistar Media, Inc., Preferred Stock2023-12-310001396440Vitesse Systems, Secured Debt2023-12-310001396440VORTEQ Coil Finishers, LLC, Common Equity2023-12-310001396440Wall Street Prep, Inc., Secured Debt 12023-12-310001396440Wall Street Prep, Inc., Secured Debt 22023-12-310001396440Wall Street Prep, Inc., Common Stock2023-12-310001396440main:WallStreetPrepIncMember2023-12-310001396440Watterson Brands, LLC, Secured Debt 12023-12-310001396440Watterson Brands, LLC, Secured Debt 22023-12-310001396440Watterson Brands, LLC, Secured Debt 32023-12-310001396440Watterson Brands, LLC, Secured Debt 42023-12-310001396440main:WattersonBrandsLLCMember2023-12-310001396440West Star Aviation Acquisition, LLC, Secured Debt 12023-12-310001396440West Star Aviation Acquisition, LLC, Secured Debt 22023-12-310001396440West Star Aviation Acquisition, LLC, Secured Debt 32023-12-310001396440West Star Aviation Acquisition, LLC, Common Stock2023-12-310001396440main:WestStarAviationAcquisitionLLCMember2023-12-310001396440Winter Services LLC, Secured Debt 12023-12-310001396440Winter Services LLC, Secured Debt 22023-12-310001396440Winter Services LLC, Secured Debt 32023-12-310001396440main:WinterServicesLLCMember2023-12-310001396440Xenon Arc, Inc., Secured Debt 12023-12-310001396440Xenon Arc, Inc., Secured Debt 22023-12-310001396440Xenon Arc, Inc., Secured Debt 32023-12-310001396440main:XenonArcIncMember2023-12-310001396440YS Garments, LLC, Secured Debt2023-12-310001396440Zips Car Wash, LLC, Secured Debt 12023-12-310001396440Zips Car Wash, LLC, Secured Debt 22023-12-310001396440main:ZipsCarWashLLCMember2023-12-310001396440Dreyfus Government Cash Management2023-12-310001396440Fidelity Government Fund2023-12-310001396440Fidelity Treasury2023-12-310001396440us-gaap:MoneyMarketFundsMember2023-12-310001396440srt:MinimumMembermain:SecuredOvernightFinancingRateSOFROvernightIndexSwapRateOrLondonInterbankOfferedRateLIBORMember2023-12-310001396440main:SecuredOvernightFinancingRateSOFROvernightIndexSwapRateOrLondonInterbankOfferedRateLIBORMembersrt:MaximumMember2023-12-310001396440srt:WeightedAverageMembermain:SecuredOvernightFinancingRateSOFROvernightIndexSwapRateOrLondonInterbankOfferedRateLIBORMember2023-12-310001396440main:SecuredOvernightFinancingRateSOFRMembermain:BolderPantherGroupLLCMember2023-12-310001396440main:SecuredOvernightFinancingRateSOFRMembermain:JackmontHospitalityIncMember2023-12-310001396440srt:MinimumMember2023-12-310001396440srt:MaximumMember2023-12-310001396440main:SecuredOvernightFinancingRateSOFRMembermain:InterfaceSecuritySystemsLLCMember2023-12-310001396440main:SecuredOvernightFinancingRateSOFRMembermain:ImagingBusinessMachinesL.L.C.Member2023-12-310001396440main:SecuredOvernightFinancingRateSOFRMembermain:ComputerDataSourceLLCMember2023-12-310001396440main:SecuredOvernightFinancingRateSOFRMembermain:InspireAestheticsManagementLLCMember2023-12-310001396440main:SecuredOvernightFinancingRateSOFRMembermain:RichardsonSalesSolutionsMember2023-12-310001396440main:SecuredOvernightFinancingRateSOFRMembermain:VariousInvestment1Member2023-12-310001396440main:VariousInvestment1Member2023-12-310001396440main:SecuredOvernightFinancingRateSOFRMembermain:ZipsCarWashLLCMember2023-12-310001396440main:SecuredOvernightFinancingRateSOFRMembermain:PTLUSBidcoIncMember2023-12-310001396440main:SecuredOvernightFinancingRateSOFRMembermain:WinterServicesLLCMember2023-12-310001396440Acumera, Inc., Warrants2023-01-012023-12-310001396440main:DreyfusGovernmentCashManagementMember2023-12-310001396440main:FidelityGovernmentFundMember2023-12-310001396440main:FidelityTreasuryMember2023-12-310001396440main:SecuredOvernightFinancingRateSOFRMembermain:GULFPACIFICACQUISITIONLLCMember2023-12-310001396440main:SecuredOvernightFinancingRateSOFRMembermain:ParagonHealthcareIncMember2023-12-310001396440main:JTIElectricalMechanicalLLCMembermain:SecuredOvernightFinancingRateSOFRMember2023-12-310001396440main:SecuredOvernightFinancingRateSOFRMembermain:WattersonBrandsLLCMember2023-12-310001396440main:SecuredOvernightFinancingRateSOFRMembermain:WestStarAviationAcquisitionLLCMember2023-12-310001396440main:SecuredOvernightFinancingRateSOFRMembermain:ChannelPartnersIntermediatecoLLCMember2023-12-310001396440main:SecuredOvernightFinancingRateSOFRMembermain:GSHVAMIntermediateLLCMember2023-12-310001396440Analytical Systems Keco Holdings, LLC, Secured Debt 12022-12-310001396440Analytical Systems Keco Holdings, LLC, Secured Debt 22022-12-310001396440Analytical Systems Keco Holdings, LLC, Preferred Member Units 12022-12-310001396440Analytical Systems Keco Holdings, LLC, Preferred Member Units 22022-12-310001396440Analytical Systems Keco Holdings, LLC, Warrants2022-12-310001396440main:AnalyticalSystemsKecoHoldingsLLCMember2022-12-310001396440ASC Interests, LLC, Secured Debt 12022-12-310001396440ASC Interests, LLC, Secured Debt 22022-12-310001396440ASC Interests, LLC, Member Units2022-12-310001396440main:ASCInterestsLLCMember2022-12-310001396440ATS Workholding, LLC, Secured Debt 12022-12-310001396440ATS Workholding, LLC, Secured Debt 22022-12-310001396440ATS Workholding, LLC, Preferred Member Units2022-12-310001396440main:ATSWorkholdingLLCMember2022-12-310001396440Barfly Ventures, LLC, Secured Debt2022-12-310001396440Barfly Ventures, LLC, Member Units2022-12-310001396440main:BarflyVenturesLLCMember2022-12-310001396440Batjer TopCo, LLC, Secured Debt 12022-12-310001396440Batjer TopCo, LLC, Secured Debt 22022-12-310001396440Batjer TopCo, LLC, Secured Debt 32022-12-310001396440Batjer TopCo, LLC, Preferred Stock2022-12-310001396440main:BatjerTopCoLLCMember2022-12-310001396440Bolder Panther Group, LLC, Secured Debt2022-12-310001396440Bolder Panther Group, LLC, Class B Preferred Member Units2022-12-310001396440main:BolderPantherGroupLLCMember2022-12-310001396440Brewer Crane Holdings, LLC, Secured Debt2022-12-310001396440Brewer Crane Holdings, LLC, Preferred Member Units2022-12-310001396440main:BrewerCraneHoldingsLLCMember2022-12-310001396440Bridge Capital Solutions Corporation, Secured Debt 12022-12-310001396440Bridge Capital Solutions Corporation, Secured Debt 22022-12-310001396440Bridge Capital Solutions Corporation, Warrants2022-12-310001396440Bridge Capital Solutions Corporation, Preferred Member Units2022-12-310001396440main:BridgeCapitalSolutionsCorporationMember2022-12-310001396440Café Brazil, LLC, Member Units2022-12-310001396440California Splendor Holdings LLC, Secured Debt2022-12-310001396440California Splendor Holdings LLC, Preferred Member Units 12022-12-310001396440California Splendor Holdings LLC, Preferred Member Units 22022-12-310001396440main:CaliforniaSplendorHoldingsLLCMember2022-12-310001396440CBT Nuggets, LLC, Member Units2022-12-310001396440Centre Technologies Holdings, LLC, Secured Debt 12022-12-310001396440Centre Technologies Holdings, LLC, Secured Debt 22022-12-310001396440Centre Technologies Holdings, LLC, Preferred Member Units2022-12-310001396440main:CentreTechnologiesHoldingsLLCMember2022-12-310001396440Chamberlin Holding LLC, Secured Debt 12022-12-310001396440Chamberlin Holding LLC, Secured Debt 22022-12-310001396440Chamberlin Holding LLC, Member Units 12022-12-310001396440Chamberlin Holding LLC, Member Units 22022-12-310001396440main:ChamberlinHoldingLLCMember2022-12-310001396440Charps, LLC, Unsecured Debt2022-12-310001396440Charps, LLC, Preferred Member Units2022-12-310001396440main:CharpsLLCMember2022-12-310001396440Clad-Rex Steel, LLC, Secured Debt 12022-12-310001396440Clad-Rex Steel, LLC, Secured Debt 22022-12-310001396440Clad-Rex Steel, LLC, Secured Debt 32022-12-310001396440Clad-Rex Steel, LLC, Member Units 12022-12-310001396440Clad-Rex Steel, LLC, Member Units 22022-12-310001396440main:CladRexSteelLLCMember2022-12-310001396440CMS Minerals Investments, Member Units2022-12-310001396440Cody Pools, Inc., Secured Debt 12022-12-310001396440Cody Pools, Inc., Secured Debt 22022-12-310001396440Cody Pools, Inc., Preferred Member Units2022-12-310001396440main:CodyPoolsIncMember2022-12-310001396440Colonial Electric Company LLC, Secured Debt 12022-12-310001396440Colonial Electric Company LLC, Secured Debt 22022-12-310001396440Colonial Electric Company LLC, Preferred Member Units2022-12-310001396440main:ColonialElectricCompanyLLCMember2022-12-310001396440CompareNetworks Topco, LLC, Secured Debt 12022-12-310001396440CompareNetworks Topco, LLC, Secured Debt 22022-12-310001396440CompareNetworks Topco, LLC, Preferred Member Units2022-12-310001396440main:CompareNetworksTopcoLLCMember2022-12-310001396440Copper Trail Fund Investments, LP Interests (CTMH, LP)2022-12-310001396440Datacom, LLC, Secured Debt 12022-12-310001396440Datacom, LLC, Secured Debt 22022-12-310001396440Datacom, LLC, Preferred Member Units2022-12-310001396440main:DatacomLLCMember2022-12-310001396440Digital Products Holdings LLC, Secured Debt2022-12-310001396440Digital Products Holdings LLC, Preferred Member Units2022-12-310001396440main:DigitalProductsHoldingsLLCMember2022-12-310001396440Direct Marketing Solutions, Inc., Secured Debt 12022-12-310001396440Direct Marketing Solutions, Inc., Secured Debt 22022-12-310001396440Direct Marketing Solutions, Inc., Preferred Stock2022-12-310001396440main:DirectMarketingSolutionsIncMember2022-12-310001396440Elgin AcquireCo, LLC, Secured Debt 12022-12-310001396440Elgin AcquireCo, LLC, Secured Debt 22022-12-310001396440Elgin AcquireCo, LLC, Secured Debt 32022-12-310001396440Elgin AcquireCo, LLC, Common Stock 12022-12-310001396440Elgin AcquireCo, LLC, Common Stock 22022-12-310001396440main:ElginAcquireCoLLCMember2022-12-310001396440Gamber-Johnson Holdings, LLC, Secured Debt 12022-12-310001396440Gamber-Johnson Holdings, LLC, Secured Debt 22022-12-310001396440Gamber-Johnson Holdings, LLC, Member Units2022-12-310001396440main:GamberJohnsonHoldingsLLCMember2022-12-310001396440Garreco, LLC, Secured Debt2022-12-310001396440Garreco, LLC, Member Units2022-12-310001396440main:GarrecoLLCMember2022-12-310001396440GRT Rubber Technologies LLC, Secured Debt 12022-12-310001396440GRT Rubber Technologies LLC, Secured Debt 22022-12-310001396440GRT Rubber Technologies LLC, Member Units2022-12-310001396440main:GRTRubberTechnologiesLLCMember2022-12-310001396440Gulf Manufacturing, LLC, Member Units2022-12-310001396440Gulf Publishing Holdings, LLC, Secured Debt 12022-12-310001396440Gulf Publishing Holdings, LLC, Secured Debt 22022-12-310001396440Gulf Publishing Holdings, LLC, Preferred Equity2022-12-310001396440Gulf Publishing Holdings, LLC, Member Units2022-12-310001396440main:GulfPublishingHoldingsLLCMember2022-12-310001396440Harris Preston Fund Investments, LP Interests (2717 MH, L.P.)2022-12-310001396440Harris Preston Fund Investments, LP Interests (2717 HPP-MS, L.P.)2022-12-310001396440main:HarrisPrestonFundInvestmentsOneMember2022-12-310001396440Harrison Hydra-Gen, Ltd., Common Stock2022-12-310001396440Jensen Jewelers of Idaho, LLC, Secured Debt 12022-12-310001396440Jensen Jewelers of Idaho, LLC, Secured Debt 22022-12-310001396440Jensen Jewelers of Idaho, LLC, Member Units2022-12-310001396440main:JensenJewelersOfIdahoLLCMember2022-12-310001396440Johnson Downie Opco, LLC, Secured Debt 12022-12-310001396440Johnson Downie Opco, LLC, Secured Debt 22022-12-310001396440Johnson Downie Opco, LLC, Preferred Equity2022-12-310001396440main:JohnsonDownieOpcoLLCMember2022-12-310001396440JorVet Holdings, LLC, Secured Debt2022-12-310001396440JorVet Holdings, LLC, Preferred Equity2022-12-310001396440main:JorVetHoldingsLLCMember2022-12-310001396440KBK Industries, LLC, Member Units2022-12-310001396440Kickhaefer Manufacturing Company, LLC, Secured Debt 12022-12-310001396440Kickhaefer Manufacturing Company, LLC, Secured Debt 22022-12-310001396440Kickhaefer Manufacturing Company, LLC, Preferred Equity2022-12-310001396440Kickhaefer Manufacturing Company, LLC, Member Units2022-12-310001396440main:KickhaeferManufacturingCompanyLLCMember2022-12-310001396440Market Force Information, LLC, Secured Debt 12022-12-310001396440Market Force Information, LLC, Secured Debt 22022-12-310001396440Market Force Information, LLC, Member Units2022-12-310001396440main:MarketForceInformationLLCMember2022-12-310001396440MetalForming AcquireCo, LLC, Secured Debt 12022-12-310001396440MetalForming AcquireCo, LLC, Secured Debt 22022-12-310001396440MetalForming AcquireCo, LLC, Preferred Equity2022-12-310001396440MetalForming AcquireCo, LLC, Common Stock2022-12-310001396440main:MetalFormingHoldingLLCMember2022-12-310001396440MH Corbin Holding LLC, Secured Debt2022-12-310001396440MH Corbin Holding LLC, Preferred Member Units 12022-12-310001396440MH Corbin Holding LLC, Preferred Member Units 22022-12-310001396440main:MHCorbinHoldingLLCMember2022-12-310001396440MS Private Loan Fund I, LP, Secured Debt2022-12-310001396440MS Private Loan Fund I, LP, LP Interests2022-12-310001396440main:MSPrivateLoanFundILPMember2022-12-310001396440MSC Adviser I, LLC, Member Units2022-12-310001396440MSC Income Fund, Inc., Common Equity2022-12-310001396440Mystic Logistics Holdings, LLC, Secured Debt 12022-12-310001396440Mystic Logistics Holdings, LLC, Secured Debt 22022-12-310001396440Mystic Logistics Holdings, LLC, Common Stock2022-12-310001396440main:MysticLogisticsHoldingsLLCMember2022-12-310001396440NAPCO Precast, LLC, Member Units2022-12-310001396440Nebraska Vet AcquireCo, LLC, Secured Debt 12022-12-310001396440Nebraska Vet AcquireCo, LLC, Secured Debt 22022-12-310001396440Nebraska Vet AcquireCo, LLC, Secured Debt 32022-12-310001396440Nebraska Vet AcquireCo, LLC, Preferred Member Units2022-12-310001396440main:NebraskaVetAcquireCoLLCMember2022-12-310001396440NexRev LLC, Secured Debt 12022-12-310001396440NexRev LLC, Secured Debt 22022-12-310001396440NexRev LLC, Preferred Member Units2022-12-310001396440main:NexRevLLCMember2022-12-310001396440NRP Jones, LLC, Secured Debt2022-12-310001396440NRP Jones, LLC, Member Units2022-12-310001396440main:NRPJonesLLCMember2022-12-310001396440NuStep, LLC, Secured Debt 12022-12-310001396440NuStep, LLC, Secured Debt 22022-12-310001396440NuStep, LLC, Preferred Member Units 12022-12-310001396440NuStep, LLC, Preferred Member Units 22022-12-310001396440main:NuStepLLCMember2022-12-310001396440OMi Topco, LLC, Secured Debt2022-12-310001396440OMi Topco, LLC, Preferred Member Units2022-12-310001396440main:OMiTopcoLLCMember2022-12-310001396440Orttech Holdings, LLC, Secured Debt 12022-12-310001396440Orttech Holdings, LLC, Secured Debt 22022-12-310001396440Orttech Holdings, LLC, Preferred Stock2022-12-310001396440main:OrttechHoldingsLLCMember2022-12-310001396440Pearl Meyer Topco LLC, Secured Debt 12022-12-310001396440Pearl Meyer Topco LLC, Secured Debt 22022-12-310001396440Pearl Meyer Topco LLC, Secured Debt 32022-12-310001396440Pearl Meyer Topco LLC, Preferred Equity2022-12-310001396440main:PearlMeyerTopcoLLCMember2022-12-310001396440PPL RVs, Inc., Secured Debt 12022-12-310001396440PPL RVs, Inc., Secured Debt 22022-12-310001396440PPL RVs, Inc., Common Stock 12022-12-310001396440PPL RVs, Inc., Common Stock 22022-12-310001396440main:PPLRVsIncMember2022-12-310001396440Principle Environmental, LLC, Secured Debt 12022-12-310001396440Principle Environmental, LLC, Secured Debt 22022-12-310001396440Principle Environmental, LLC, Preferred Member Units2022-12-310001396440Principle Environmental, LLC, Common Stock2022-12-310001396440main:PrincipleEnvironmentalLLCMember2022-12-310001396440Quality Lease Service, LLC, Member Units2022-12-310001396440River Aggregates, LLC, Member Units2022-12-310001396440Robbins Bros. Jewelry, Inc., Secured Debt 12022-12-310001396440Robbins Bros. Jewelry, Inc., Secured Debt 22022-12-310001396440Robbins Bros. Jewelry, Inc., Preferred Equity2022-12-310001396440main:RobbinsBrosJewelryIncMember2022-12-310001396440Tedder Industries, LLC, Secured Debt 12022-12-310001396440Tedder Industries, LLC, Secured Debt 22022-12-310001396440Tedder Industries, LLC, Preferred Member Units2022-12-310001396440main:TedderIndustriesLLCMember2022-12-310001396440Televerde, LLC, Preferred Stock2022-12-310001396440Televerde, LLC, Member Units2022-12-310001396440main:TeleverdeLLCMember2022-12-310001396440Trantech Radiator Topco, LLC, Secured Debt 12022-12-310001396440Trantech Radiator Topco, LLC, Secured Debt 22022-12-310001396440Trantech Radiator Topco, LLC, Common Stock2022-12-310001396440main:TrantechRadiatorTopcoLLCMember2022-12-310001396440Vision Interests, Inc., Series A Preferred Stock2022-12-310001396440VVS Holdco LLC, Secured Debt 12022-12-310001396440VVS Holdco LLC, Secured Debt 22022-12-310001396440VVS Holdco LLC, Preferred Equity2022-12-310001396440main:VVSHoldcoLLCMember2022-12-310001396440Ziegler’s NYPD, LLC, Secured Debt 12022-12-310001396440Ziegler’s NYPD, LLC, Secured Debt 22022-12-310001396440Ziegler’s NYPD, LLC, Secured Debt 32022-12-310001396440Ziegler’s NYPD, LLC, Preferred Member Units2022-12-310001396440Ziegler’s NYPD, LLC, Warrants2022-12-310001396440main:ZieglersNYPDLLCMember2022-12-310001396440AAC Holdings, Inc., Secured Debt2022-12-310001396440AAC Holdings, Inc., Common Stock2022-12-310001396440AAC Holdings, Inc., Warrants2022-12-310001396440main:AACHoldingsIncMember2022-12-310001396440AFG Capital Group, LLC, Preferred Member Units2022-12-310001396440ATX Networks Corp., Secured Debt2022-12-310001396440ATX Networks Corp., Unsecured Debt2022-12-310001396440ATX Networks Corp., Common Stock2022-12-310001396440main:ATXNetworksCorpMember2022-12-310001396440BBB Tank Services, LLC, Unsecured Debt 12022-12-310001396440BBB Tank Services, LLC, Unsecured Debt 22022-12-310001396440BBB Tank Services, LLC, Member Units2022-12-310001396440BBB Tank Services, LLC, Preferred Stock (non-voting)2022-12-310001396440main:BBBTankServicesLLCMember2022-12-310001396440Boccella Precast Products LLC, Secured Debt2022-12-310001396440Boccella Precast Products LLC, Member Units2022-12-310001396440main:BoccellaPrecastProductsLLCMember2022-12-310001396440Buca C, LLC, Secured Debt2022-12-310001396440Buca C, LLC, Preferred Member Units2022-12-310001396440main:BucaCLLCMember2022-12-310001396440Career Team Holdings, LLC, Secured Debt 12022-12-310001396440Career Team Holdings, LLC, Secured Debt 22022-12-310001396440Career Team Holdings, LLC, Common Stock2022-12-310001396440main:CareerTeamHoldingsLLCMember2022-12-310001396440Chandler Signs Holdings, LLC, Class A Units2022-12-310001396440Classic H&G Holdings, LLC, Secured Debt 12022-12-310001396440Classic H&G Holdings, LLC, Secured Debt 22022-12-310001396440Classic H&G Holdings, LLC, Preferred Member Units2022-12-310001396440main:ClassicHGHoldingsLLCMember2022-12-310001396440Congruent Credit Opportunities Funds, LP Interests (Congruent Credit Opportunities Fund III, LP)2022-12-310001396440DMA Industries, LLC, Secured Debt2022-12-310001396440DMA Industries, LLC, Preferred Equity2022-12-310001396440main:DMAIndustriesLLCMember2022-12-310001396440Dos Rios Partners, LP Interests (Dos Rios Partners, LP)2022-12-310001396440Dos Rios Partners, LP Interests (Dos Rios Partners - A, LP)2022-12-310001396440main:DosRiosPartnersMember2022-12-310001396440Dos Rios Stone Products LLC, Class A Preferred Units2022-12-310001396440EIG Fund Investments, LP Interests (EIG Global Private Debt Fund-A, L.P.)2022-12-310001396440Flame King Holdings, LLC, Secured Debt 12022-12-310001396440Flame King Holdings, LLC, Secured Debt 22022-12-310001396440Flame King Holdings, LLC, Preferred Equity2022-12-310001396440main:FlameKingHoldingsLLCMember2022-12-310001396440Freeport Financial Funds, LP Interests (Freeport Financial SBIC Fund LP)2022-12-310001396440Freeport Financial Funds, LP Interests (Freeport First Lien Loan Fund III LP)2022-12-310001396440main:FreeportFinancialFundsMember2022-12-310001396440GFG Group, LLC., Secured Debt2022-12-310001396440GFG Group, LLC., Preferred Member Units2022-12-310001396440main:GFGGroupLLCMember2022-12-310001396440Harris Preston Fund Investments, LP Interests (HPEP 3, L.P.)2022-12-310001396440Harris Preston Fund Investments, LP Interests (HPEP 4, L.P.)2022-12-310001396440Harris Preston Fund Investments, LP Interests (423 COR, LP)2022-12-310001396440main:HarrisPrestonFundInvestmentsTwoMember2022-12-310001396440Hawk Ridge Systems, LLC, Secured Debt 12022-12-310001396440Hawk Ridge Systems, LLC, Secured Debt 22022-12-310001396440Hawk Ridge Systems, LLC, Preferred Member Units 12022-12-310001396440Hawk Ridge Systems, LLC, Preferred Member Units 22022-12-310001396440main:HawkRidgeSystemsLLCMember2022-12-310001396440Houston Plating and Coatings, LLC, Unsecured Convertible Debt2022-12-310001396440Houston Plating and Coatings, LLC, Member Units2022-12-310001396440main:HoustonPlatingAndCoatingsLLCMember2022-12-310001396440I-45 SLF LLC, Member Units (Fully diluted 20.0%; 21.75% profits interest)2022-12-310001396440Iron-Main Investments, LLC, Secured Debt 12022-12-310001396440Iron-Main Investments, LLC, Secured Debt 22022-12-310001396440Iron-Main Investments, LLC, Secured Debt 32022-12-310001396440Iron-Main Investments, LLC, Secured Debt 42022-12-310001396440Iron-Main Investments, LLC, Common Stock2022-12-310001396440main:IronMainInvestmentsLLCMember2022-12-310001396440OnAsset Intelligence, Inc., Secured Debt 12022-12-310001396440OnAsset Intelligence, Inc., Secured Debt 22022-12-310001396440OnAsset Intelligence, Inc., Secured Debt 32022-12-310001396440OnAsset Intelligence, Inc., Secured Debt 42022-12-310001396440OnAsset Intelligence, Inc., Unsecured Debt2022-12-310001396440OnAsset Intelligence, Inc., Preferred Stock2022-12-310001396440OnAsset Intelligence, Inc., Common Stock2022-12-310001396440OnAsset Intelligence, Inc., Warrants2022-12-310001396440main:OnAssetIntelligenceIncMember2022-12-310001396440Oneliance, LLC, Secured Debt 12022-12-310001396440Oneliance, LLC, Secured Debt 22022-12-310001396440Oneliance, LLC, Preferred Stock2022-12-310001396440main:OnelianceLLCMember2022-12-310001396440Rocaceia, LLC (Quality Lease and Rental Holdings, LLC), Secured Debt2022-12-310001396440Rocaceia, LLC (Quality Lease and Rental Holdings, LLC), Preferred Member Units2022-12-310001396440main:RocaceiaLLCQualityLeaseAndRentalHoldingsLLCMember2022-12-310001396440SI East, LLC, Secured Debt 12022-12-310001396440SI East, LLC, Secured Debt 22022-12-310001396440SI East, LLC, Preferred Member Units2022-12-310001396440main:SIEastLLCMember2022-12-310001396440Slick Innovations, LLC, Secured Debt2022-12-310001396440Slick Innovations, LLC, Common Stock2022-12-310001396440main:SlickInnovationsLLCMember2022-12-310001396440Sonic Systems International, LLC, Secured Debt2022-12-310001396440Sonic Systems International, LLC, Common Stock2022-12-310001396440main:SonicSystemsInternationalLLCMember2022-12-310001396440Student Resource Center, LLC, Secured Debt2022-12-310001396440Student Resource Center, LLC, Preferred Equity2022-12-310001396440main:StudentResourceCenterLLCMember2022-12-310001396440Superior Rigging & Erecting Co., Secured Debt2022-12-310001396440Superior Rigging & Erecting Co., Preferred Member Units2022-12-310001396440main:SuperiorRiggingErectingCoMember2022-12-310001396440The Affiliati Network, LLC, Secured Debt 12022-12-310001396440The Affiliati Network, LLC, Secured Debt 22022-12-310001396440The Affiliati Network, LLC, Preferred Stock2022-12-310001396440main:TheAffiliatiNetworkLLCMember2022-12-310001396440UnionRock Energy Fund II, LP, LP Interests2022-12-310001396440UniTek Global Services, Inc., Secured Debt 12022-12-310001396440UniTek Global Services, Inc., Secured Debt 22022-12-310001396440UniTek Global Services, Inc., Secured Convertible Debt2022-12-310001396440UniTek Global Services, Inc., Preferred Stock 12022-12-310001396440UniTek Global Services, Inc., Preferred Stock 22022-12-310001396440UniTek Global Services, Inc., Preferred Stock 32022-12-310001396440UniTek Global Services, Inc., Preferred Stock 42022-12-310001396440UniTek Global Services, Inc., Common Stock2022-12-310001396440main:UniTekGlobalServicesIncMember2022-12-310001396440Universal Wellhead Services Holdings, LLC, Preferred Member Units2022-12-310001396440Universal Wellhead Services Holdings, LLC, Member Units2022-12-310001396440main:UniversalWellheadServicesHoldingsLLCMember2022-12-310001396440Volusion, LLC, Secured Debt2022-12-310001396440Volusion, LLC, Unsecured Convertible Debt2022-12-310001396440Volusion, LLC, Preferred Member Units2022-12-310001396440Volusion, LLC, Warrants2022-12-310001396440main:VolusionLLCMember2022-12-310001396440World Micro Holdings, LLC, Secured Debt2022-12-310001396440World Micro Holdings, LLC, Preferred Equity2022-12-310001396440main:WorldMicroHoldingsLLCMember2022-12-310001396440AB Centers Acquisition Corporation, Secured Debt 12022-12-310001396440AB Centers Acquisition Corporation, Secured Debt 22022-12-310001396440AB Centers Acquisition Corporation, Secured Debt 32022-12-310001396440main:ABCentersAcquisitionCorporationMember2022-12-310001396440Acousti Engineering Company of Florida, Secured Debt 12022-12-310001396440Acousti Engineering Company of Florida, Secured Debt 22022-12-310001396440Acousti Engineering Company of Florida, Secured Debt 32022-12-310001396440main:AcoustiEngineeringCompanyOfFloridaMember2022-12-310001396440Acumera, Inc., Secured Debt 12022-12-310001396440Acumera, Inc., Secured Debt 22022-12-310001396440main:AcumeraIncMember2022-12-310001396440Adams Publishing Group, LLC, Secured Debt 12022-12-310001396440Adams Publishing Group, LLC, Secured Debt 22022-12-310001396440main:AdamsPublishingGroupLLCMember2022-12-310001396440ADS Tactical, Inc., Secured Debt2022-12-310001396440AMEREQUIP LLC., Secured Debt 12022-12-310001396440AMEREQUIP LLC., Secured Debt 22022-12-310001396440AMEREQUIP LLC., Common Stock2022-12-310001396440main:AMEREQUIPLLCMember2022-12-310001396440American Health Staffing Group, Inc., Secured Debt 12022-12-310001396440American Health Staffing Group, Inc., Secured Debt 22022-12-310001396440main:AmericanHealthStaffingGroupIncMember2022-12-310001396440American Nuts, LLC, Secured Debt 12022-12-310001396440American Nuts, LLC, Secured Debt 22022-12-310001396440main:AmericanNutsLLCMember2022-12-310001396440American Teleconferencing Services, Ltd., Secured Debt 12022-12-310001396440American Teleconferencing Services, Ltd., Secured Debt 22022-12-310001396440main:AmericanTeleconferencingServicesLtdMember2022-12-310001396440ArborWorks, LLC, Secured Debt 12022-12-310001396440ArborWorks, LLC, Secured Debt 22022-12-310001396440ArborWorks, LLC, Common Equity2022-12-310001396440main:ArborWorksLLCMember2022-12-310001396440Archer Systems, LLC, Secured Debt 12022-12-310001396440Archer Systems, LLC, Secured Debt 22022-12-310001396440Archer Systems, LLC, Common Stock2022-12-310001396440main:ArcherSystemsLLCMember2022-12-310001396440Arrow International, Inc, Secured Debt2022-12-310001396440ATS Operating, LLC, Secured Debt 12022-12-310001396440ATS Operating, LLC, Secured Debt 22022-12-310001396440ATS Operating, LLC, Secured Debt 32022-12-310001396440ATS Operating, LLC, Common Stock2022-12-310001396440main:ATSOperatingLLCMember2022-12-310001396440AVEX Aviation Holdings, LLC, Secured Debt 12022-12-310001396440AVEX Aviation Holdings, LLC, Secured Debt 22022-12-310001396440AVEX Aviation Holdings, LLC, Common Equity2022-12-310001396440main:AVEXAviationHoldingsLLCMember2022-12-310001396440Berry Aviation, Inc., Secured Debt2022-12-310001396440Berry Aviation, Inc., Preferred Member Units 12022-12-310001396440Berry Aviation, Inc., Preferred Member Units 22022-12-310001396440main:BerryAviationIncMember2022-12-310001396440Bettercloud, Inc., Secured Debt 12022-12-310001396440Bettercloud, Inc., Secured Debt 22022-12-310001396440main:BettercloudIncMember2022-12-310001396440Binswanger Enterprises, LLC, Member Units2022-12-310001396440Bluestem Brands, Inc., Secured Debt 12022-12-310001396440Bluestem Brands, Inc., Secured Debt 22022-12-310001396440Bluestem Brands, Inc., Common Stock2022-12-310001396440Bluestem Brands, Inc., Warrants2022-12-310001396440main:BluestemBrandsIncMember2022-12-310001396440Brainworks Software, LLC, Secured Debt 12022-12-310001396440Brainworks Software, LLC, Secured Debt 22022-12-310001396440main:BrainworksSoftwareLLCMember2022-12-310001396440Brightwood Capital Fund Investments, LP Interests (Brightwood Capital Fund III, LP)2022-12-310001396440Brightwood Capital Fund Investments, LP Interests (Brightwood Capital Fund IV, LP)2022-12-310001396440Brightwood Capital Fund Investments, LP Interests (Brightwood Capital Fund V, LP)2022-12-310001396440main:BrightwoodCapitalFundInvestmentsMember2022-12-310001396440Burning Glass Intermediate Holding Company, Inc., Secured Debt 12022-12-310001396440Burning Glass Intermediate Holding Company, Inc., Secured Debt 22022-12-310001396440main:BurningGlassIntermediateHoldingCompanyIncMember2022-12-310001396440Cadence Aerospace LLC, Secured Debt2022-12-310001396440CAI Software LLC, Preferred Equity 12022-12-310001396440CAI Software LLC, Preferred Equity 22022-12-310001396440main:CAISoftwareLLCMember2022-12-310001396440Camin Cargo Control, Inc., Secured Debt2022-12-310001396440CaseWorthy, Inc., Secured Debt 12022-12-310001396440CaseWorthy, Inc., Secured Debt 22022-12-310001396440CaseWorthy, Inc., Secured Debt 32022-12-310001396440CaseWorthy, Inc., Common Equity2022-12-310001396440main:CaseWorthyIncMember2022-12-310001396440Channel Partners Intermediateco, LLC, Secured Debt 12022-12-310001396440Channel Partners Intermediateco, LLC, Secured Debt 22022-12-310001396440main:ChannelPartnersIntermediatecoLLCMember2022-12-310001396440Clarius BIGS, LLC, Secured Debt2022-12-310001396440Computer Data Source, LLC, Secured Debt 12022-12-310001396440Computer Data Source, LLC, Secured Debt 22022-12-310001396440main:ComputerDataSourceLLCMember2022-12-310001396440Construction Supply Investments, LLC, Member Units2022-12-310001396440Dalton US Inc., Secured Debt 12022-12-310001396440Dalton US Inc., Secured Debt 22022-12-310001396440Dalton US Inc., Secured Debt 32022-12-310001396440Dalton US Inc., Common Stock2022-12-310001396440main:DaltonUSIncMember2022-12-310001396440DTE Enterprises, LLC, Secured Debt 12022-12-310001396440DTE Enterprises, LLC, Secured Debt 22022-12-310001396440DTE Enterprises, LLC, Class AA Preferred Member Units (non-voting)2022-12-310001396440DTE Enterprises, LLC, Class A Preferred Member Units2022-12-310001396440main:DTEEnterprisesLLCMember2022-12-310001396440Dynamic Communities, LLC, Secured Debt 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Warrants2022-12-310001396440main:IndependentPetPartnersIntermediateHoldingsLLCMember2022-12-310001396440Industrial Services Acquisition, LLC, Secured Debt 12022-12-310001396440Industrial Services Acquisition, LLC, Secured Debt 22022-12-310001396440Industrial Services Acquisition, LLC, Preferred Member Units 12022-12-310001396440Industrial Services Acquisition, LLC, Preferred Member Units 22022-12-310001396440Industrial Services Acquisition, LLC, Member Units2022-12-310001396440main:IndustrialServicesAcquisitionLLCMember2022-12-310001396440Infolinks Media Buyco, LLC, Secured Debt 12022-12-310001396440Infolinks Media Buyco, LLC, Secured Debt 22022-12-310001396440main:InfolinksMediaBuycoLLCMember2022-12-310001396440Interface Security Systems, L.L.C, Secured Debt 12022-12-310001396440Interface Security Systems, L.L.C, Secured Debt 22022-12-310001396440Interface Security Systems, L.L.C, Common Stock2022-12-310001396440main:InterfaceSecuritySystemsLLCMember2022-12-310001396440Intermedia Holdings, Inc., Secured Debt2022-12-310001396440Invincible Boat Company, LLC., Secured Debt 12022-12-310001396440Invincible Boat Company, LLC., Secured Debt 22022-12-310001396440main:InvincibleBoatCompanyLLCMember2022-12-310001396440INW Manufacturing, LLC, Secured Debt2022-12-310001396440Isagenix International, LLC, Secured Debt2022-12-310001396440Jackmont Hospitality, Inc., Secured Debt 12022-12-310001396440Jackmont Hospitality, Inc., Secured Debt 22022-12-310001396440Jackmont Hospitality, Inc., Preferred Equity2022-12-310001396440main:JackmontHospitalityIncMember2022-12-310001396440Joerns Healthcare, LLC, Secured Debt 12022-12-310001396440Joerns Healthcare, LLC, Secured Debt 22022-12-310001396440Joerns Healthcare, LLC, Common Stock2022-12-310001396440main:JoernsHealthcareLLCMember2022-12-310001396440JTI Electrical & Mechanical, LLC, Secured Debt 12022-12-310001396440JTI Electrical & Mechanical, LLC, Secured Debt 22022-12-310001396440JTI Electrical & Mechanical, LLC, Common Equity2022-12-310001396440main:JTIElectricalMechanicalLLCMember2022-12-310001396440KMS, LLC, Secured Debt 12022-12-310001396440KMS, LLC, Secured Debt 22022-12-310001396440main:KMSLLCMember2022-12-310001396440Kore Wireless Group Inc., Secured Debt2022-12-310001396440Lightbox Holdings, L.P., Secured Debt2022-12-310001396440LKCM Headwater Investments I, L.P., LP Interests2022-12-310001396440LL Management, Inc., Secured Debt 12022-12-310001396440LL Management, Inc., Secured Debt 22022-12-310001396440LL Management, Inc., Secured Debt 32022-12-310001396440main:LLManagementIncMember2022-12-310001396440LLFlex, LLC, Secured Debt2022-12-310001396440Logix Acquisition Company, LLC, Secured Debt2022-12-310001396440Looking Glass Investments, LLC, Member Units2022-12-310001396440Mako Steel, LP, Secured Debt 12022-12-310001396440Mako Steel, LP, Secured Debt 22022-12-310001396440main:MakoSteelLPMember2022-12-310001396440MB2 Dental Solutions, LLC, Secured Debt 12022-12-310001396440MB2 Dental Solutions, 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Equity2022-12-310001396440main:SIBHoldingsLLCMember2022-12-310001396440South Coast Terminals Holdings, LLC, Secured Debt 12022-12-310001396440South Coast Terminals Holdings, LLC, Secured Debt 22022-12-310001396440South Coast Terminals Holdings, LLC, Common Equity2022-12-310001396440main:SouthCoastTerminalsHoldingsLLCMember2022-12-310001396440SPAU Holdings, LLC, Secured Debt 12022-12-310001396440SPAU Holdings, LLC, Secured Debt 22022-12-310001396440SPAU Holdings, LLC, Common Stock2022-12-310001396440main:SPAUHoldingsLLCMember2022-12-310001396440Staples Canada ULC, Secured Debt2022-12-310001396440Stellant Systems, Inc., Secured Debt2022-12-310001396440Tacala Investment Corp., Secured Debt2022-12-310001396440Team Public Choices, LLC, Secured Debt2022-12-310001396440Tectonic Financial, LLC, Common Stock2022-12-310001396440Tex Tech Tennis, LLC, Preferred Equity2022-12-310001396440U.S. TelePacific Corp., Secured Debt2022-12-310001396440USA DeBusk LLC, Secured Debt2022-12-310001396440Veregy 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LLC, Preferred Member Units 1.12023-12-310001396440Volusion, LLC, Preferred Member Units 2.12023-01-012023-12-310001396440Volusion, LLC, Preferred Member Units 2.12022-12-310001396440Volusion, LLC, Preferred Member Units 2.12023-12-310001396440Volusion, LLC, Preferred Member Units 32023-01-012023-12-310001396440Volusion, LLC, Preferred Member Units 32022-12-310001396440Volusion, LLC, Common Stock2023-01-012023-12-310001396440Volusion, LLC, Common Stock2022-12-310001396440Volusion, LLC, Warrants2023-01-012023-12-310001396440Volusion, LLC, Warrants2023-12-310001396440Ziegler’s NYPD, LLC, Secured Debt 12023-01-012023-12-310001396440Ziegler’s NYPD, LLC, Secured Debt 22023-12-310001396440Ziegler’s NYPD, LLC, Secured Debt 22023-01-012023-12-310001396440Ziegler’s NYPD, LLC, Secured Debt 22022-12-310001396440Ziegler’s NYPD, LLC, Secured Debt 32023-01-012023-12-310001396440Ziegler’s NYPD, LLC, Preferred Member Units2023-01-012023-12-310001396440Ziegler’s NYPD, LLC, 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Corporation, Warrants 12023-12-310001396440Bridge Capital Solutions Corporation, Warrants 22023-01-012023-12-310001396440Bridge Capital Solutions Corporation, Warrants 22022-12-310001396440Bridge Capital Solutions Corporation, Warrants 22023-12-310001396440CBT Nuggets, LLC, Member Units2023-01-012023-12-310001396440Centre Technologies Holdings, LLC, Secured Debt 12023-01-012023-12-310001396440Centre Technologies Holdings, LLC, Secured Debt 22023-01-012023-12-310001396440Centre Technologies Holdings, LLC, Preferred Member Units2023-01-012023-12-310001396440Chamberlin Holding LLC, Secured Debt 12023-01-012023-12-310001396440Chamberlin Holding LLC, Secured Debt 22023-01-012023-12-310001396440Chamberlin Holding LLC, Member Units 12023-01-012023-12-310001396440Chamberlin Holding LLC, Member Units 22023-01-012023-12-310001396440Charps, LLC, Unsecured Debt2023-01-012023-12-310001396440Charps, LLC, Preferred Member Units2023-01-012023-12-310001396440Colonial Electric Company LLC, Secured Debt 12023-01-012023-12-310001396440Colonial Electric Company LLC, Secured Debt 22023-01-012023-12-310001396440Colonial Electric Company LLC, Preferred Member Units 12023-01-012023-12-310001396440Colonial Electric Company LLC, Preferred Member Units 12022-12-310001396440Colonial Electric Company LLC, Preferred Member Units 22023-01-012023-12-310001396440Colonial Electric Company LLC, Preferred Member Units 22022-12-310001396440Compass Systems & Sales, LLC, Secured Debt 12023-01-012023-12-310001396440Compass Systems & Sales, LLC, Secured Debt 12022-12-310001396440Compass Systems & Sales, LLC, Secured Debt 22023-01-012023-12-310001396440Compass Systems & Sales, LLC, Secured Debt 22022-12-310001396440Compass Systems & Sales, LLC, Preferred Equity2023-01-012023-12-310001396440Compass Systems & Sales, LLC, Preferred Equity2022-12-310001396440Copper Trail Fund Investments, LP Interests (CTMH, LP)2023-01-012023-12-310001396440Digital Products Holdings LLC, Secured Debt2023-01-012023-12-310001396440Digital Products Holdings LLC, Preferred Member Units2023-01-012023-12-310001396440Garreco, LLC, Secured Debt2023-01-012023-12-310001396440Garreco, LLC, Member Units2023-01-012023-12-310001396440Gulf Manufacturing, LLC, Member Units2023-01-012023-12-310001396440Harrison Hydra-Gen, Ltd., Common Stock2023-01-012023-12-310001396440JorVet Holdings, LLC, Secured Debt2023-01-012023-12-310001396440JorVet Holdings, LLC, Preferred Equity2023-01-012023-12-310001396440KBK Industries, LLC, Secured Debt2023-01-012023-12-310001396440KBK Industries, LLC, Secured Debt2022-12-310001396440KBK Industries, LLC, Member Units2023-01-012023-12-310001396440MS Private Loan Fund I, LP, Secured Debt2023-01-012023-12-310001396440MS Private Loan Fund I, LP, LP Interests2023-01-012023-12-310001396440MS Private Loan Fund II, LP, Secured Debt2023-01-012023-12-310001396440MS Private Loan Fund II, LP, Secured Debt2022-12-310001396440MS Private Loan Fund II, LP, LP Interests2023-01-012023-12-310001396440MS Private Loan Fund II, LP, LP Interests2022-12-310001396440MSC Income Fund, Inc., Common Equity2023-01-012023-12-310001396440NAPCO Precast, LLC, Members Units2023-01-012023-12-310001396440NAPCO Precast, LLC, Members Units2022-12-310001396440NAPCO Precast, LLC, Members Units2023-12-310001396440Nebraska Vet AcquireCo, LLC, Secured Debt 12023-01-012023-12-310001396440Nebraska Vet AcquireCo, LLC, Secured Debt 22023-01-012023-12-310001396440Nebraska Vet AcquireCo, LLC, Secured Debt 32023-01-012023-12-310001396440Nebraska Vet AcquireCo, LLC, Preferred Member Units2023-01-012023-12-310001396440NexRev LLC, Secured Debt 12023-01-012023-12-310001396440NexRev LLC, Secured Debt 22023-01-012023-12-310001396440NexRev LLC, Preferred Member Units2023-01-012023-12-310001396440NRP Jones, LLC, Secured Debt2023-01-012023-12-310001396440NRP Jones, LLC, Member Units 1.12023-01-012023-12-310001396440NRP Jones, LLC, Member Units 1.12022-12-310001396440NRP Jones, LLC, Member Units 1.12023-12-310001396440NRP Jones, LLC, Member Units 2.12023-01-012023-12-310001396440NRP Jones, LLC, Member Units 2.12022-12-310001396440NRP Jones, LLC, Member Units 2.12023-12-310001396440NuStep, LLC, Secured Debt 12023-01-012023-12-310001396440NuStep, LLC, Secured Debt 22023-01-012023-12-310001396440NuStep, LLC, Preferred Member Units 1.12023-01-012023-12-310001396440NuStep, LLC, Preferred Member Units 1.12022-12-310001396440NuStep, LLC, Preferred Member Units 1.12023-12-310001396440NuStep, LLC, Preferred Member Units 2.12023-01-012023-12-310001396440NuStep, LLC, Preferred Member Units 2.12022-12-310001396440NuStep, LLC, Preferred Member Units 2.12023-12-310001396440Orttech Holdings, LLC, Secured Debt 12023-01-012023-12-310001396440Orttech Holdings, LLC, Secured Debt 22023-01-012023-12-310001396440Orttech Holdings, LLC, Preferred Stock2023-01-012023-12-310001396440Pearl Meyer Topco LLC, Secured Debt2023-12-310001396440Pearl Meyer Topco LLC, Secured Debt2023-01-012023-12-310001396440Pearl Meyer Topco LLC, Secured Debt2022-12-310001396440Pearl Meyer Topco LLC, Secured Debt 1.12023-12-310001396440Pearl Meyer Topco LLC, Secured Debt 1.12023-01-012023-12-310001396440Pearl Meyer Topco LLC, Secured Debt 1.12022-12-310001396440Pearl Meyer Topco LLC, Secured Debt 2.12023-12-310001396440Pearl Meyer Topco LLC, Secured Debt 2.12023-01-012023-12-310001396440Pearl Meyer Topco LLC, Secured Debt 2.12022-12-310001396440Pearl Meyer Topco LLC, Preferred Equity2023-01-012023-12-310001396440Pinnacle TopCo, LLC, Secured Debt 12023-01-012023-12-310001396440Pinnacle TopCo, LLC, Secured Debt 12022-12-310001396440Pinnacle TopCo, LLC, Secured Debt 22023-01-012023-12-310001396440Pinnacle TopCo, LLC, Secured Debt 22022-12-310001396440Pinnacle TopCo, LLC, Preferred Equity2023-01-012023-12-310001396440Pinnacle TopCo, LLC, Preferred Equity2022-12-310001396440River Aggregates, LLC, Member Units2023-01-012023-12-310001396440Tedder Industries, LLC, Secured Debt 12023-01-012023-12-310001396440Tedder Industries, LLC, Secured Debt 22023-01-012023-12-310001396440Tedder Industries, LLC, Preferred Member Units 12023-01-012023-12-310001396440Tedder Industries, LLC, Preferred Member Units 12022-12-310001396440Tedder Industries, LLC, Preferred Member Units 22023-01-012023-12-310001396440Tedder Industries, LLC, Preferred Member Units 22022-12-310001396440Tedder Industries, LLC, Preferred Member Units 32023-01-012023-12-310001396440Tedder Industries, LLC, Preferred Member Units 32022-12-310001396440Televerde, LLC, Memeber Units2023-01-012023-12-310001396440Televerde, LLC, Memeber Units2022-12-310001396440Televerde, LLC, Memeber Units2023-12-310001396440Televerde, LLC, Preferred Stock2023-01-012023-12-310001396440Vision Interests, Inc., Series A Preferred Stock2023-01-012023-12-310001396440VVS Holdco LLC, Secured Debt 12023-01-012023-12-310001396440VVS Holdco LLC, Secured Debt 22023-01-012023-12-310001396440VVS Holdco LLC, Preferred Equity2023-01-012023-12-310001396440Other, Control Investments2023-01-012023-12-310001396440Other, Control Investments2022-12-310001396440Other, Control Investments2023-12-310001396440Amounts related to investments transferred to or from other 1940 Act classification during the period, Control Investments2023-01-012023-12-310001396440Amounts related to investments transferred to or from other 1940 Act classification during the period, Control Investments2022-12-310001396440Amounts related to investments transferred to or from other 1940 Act classification during the period, Control Investments2023-12-310001396440423 HAR, LP, LP Interests (423 HAR, L.P.)2023-01-012023-12-310001396440423 HAR, LP, LP Interests (423 HAR, L.P.)2022-12-310001396440423 HAR, LP, LP Interests (423 HAR, L.P.)2023-12-310001396440AAC Holdings, Inc., Secured Debt 12023-01-012023-12-310001396440AAC Holdings, Inc., Secured Debt 12022-12-310001396440AAC Holdings, Inc., Secured Debt 22023-01-012023-12-310001396440AAC Holdings, Inc., Secured Debt 22022-12-310001396440AAC Holdings, Inc., Common Stock2023-01-012023-12-310001396440AAC Holdings, Inc., Warrants2023-01-012023-12-310001396440AFG Capital Group, LLC, Preferred Member Units2023-01-012023-12-310001396440AFG Capital Group, LLC, Preferred Member Units2023-12-310001396440ATX Networks Corp., Secured Debt2023-12-310001396440ATX Networks Corp., Secured Debt2023-01-012023-12-310001396440ATX Networks Corp., Unsecured Debt2023-12-310001396440ATX Networks Corp., Unsecured Debt2023-01-012023-12-310001396440ATX Networks Corp., Common Stock2023-01-012023-12-310001396440ATX Networks Corp., Common Stock2023-12-310001396440BBB Tank Services, LLC, Unsecured Debt 12023-12-310001396440BBB Tank Services, LLC, Unsecured Debt 12023-01-012023-12-310001396440BBB Tank Services, LLC, Unsecured Debt 22023-12-310001396440BBB Tank Services, LLC, Unsecured Debt 22023-01-012023-12-310001396440BBB Tank Services, LLC, Member Units2023-01-012023-12-310001396440BBB Tank Services, LLC, Member Units2023-12-310001396440BBB Tank Services, LLC, Preferred Stock (non-voting)2023-12-310001396440BBB Tank Services, LLC, Preferred Stock (non-voting)2023-01-012023-12-310001396440Boccella Precast Products LLC, Secured Debt2023-01-012023-12-310001396440Boccella Precast Products LLC, Member Units2023-01-012023-12-310001396440Buca C, LLC, Secured Debt2023-01-012023-12-310001396440Buca C, LLC, Preferred Member Units2023-01-012023-12-310001396440Career Team Holdings, LLC, Secured Debt 12023-01-012023-12-310001396440Career Team Holdings, LLC, Secured Debt 22023-01-012023-12-310001396440Career Team Holdings, LLC, Common Stock2023-01-012023-12-310001396440Chandler Signs Holdings, LLC, Class A Units2023-01-012023-12-310001396440Chandler Signs Holdings, LLC, Class A Units2023-12-310001396440Classic H&G Holdings, LLC, Secured Debt 12023-01-012023-12-310001396440Classic H&G Holdings, LLC, Secured Debt 22023-01-012023-12-310001396440Classic H&G Holdings, LLC, Preferred Member Units2023-01-012023-12-310001396440Congruent Credit Opportunities Funds, LP Interests (Congruent Credit Opportunities Fund III, LP)2023-01-012023-12-310001396440Congruent Credit Opportunities Funds, LP Interests (Congruent Credit Opportunities Fund III, LP)2022-12-310001396440Congruent Credit Opportunities Funds, LP Interests (Congruent Credit Opportunities Fund III, LP)2023-12-310001396440DMA Industries, LLC, Secured Debt2023-01-012023-12-310001396440DMA Industries, LLC, Preferred Equity2023-01-012023-12-310001396440Dos Rios Partners, LP Interests (Dos Rios Partners, LP)2023-01-012023-12-310001396440Dos Rios Partners, LP Interests (Dos Rios Partners - A, LP)2023-01-012023-12-310001396440Dos Rios Stone Products LLC, Class A Preferred Units2023-01-012023-12-310001396440EIG Fund Investments, LP Interests (EIG Global Private Debt Fund-A, L.P.)2023-01-012023-12-310001396440Flame King Holdings, LLC, Secured Debt 12023-12-310001396440Flame King Holdings, LLC, Secured Debt 12023-01-012023-12-310001396440Flame King Holdings, LLC, Secured Debt 22023-12-310001396440Flame King Holdings, LLC, Secured Debt 22023-01-012023-12-310001396440Flame King Holdings, LLC, Preferred Equity2023-01-012023-12-310001396440Freeport Financial SBIC Fund LP, LP Interests (Freeport First Lien Loan Fund LP)2023-01-012023-12-310001396440Freeport Financial SBIC Fund LP, LP Interests (Freeport First Lien Loan Fund LP)2022-12-310001396440Freeport Financial SBIC Fund LP, LP Interests (Freeport First Lien Loan Fund LP)2023-12-310001396440Freeport Financial SBIC Fund LP, LP Interests (Freeport First Lien Loan Fund III LP)2023-01-012023-12-310001396440Freeport Financial SBIC Fund LP, LP Interests (Freeport First Lien Loan Fund III LP)2022-12-310001396440Freeport Financial SBIC Fund LP, LP Interests (Freeport First Lien Loan Fund III LP)2023-12-310001396440GFG Group, LLC, Secured Debt2023-01-012023-12-310001396440GFG Group, LLC, Secured Debt2022-12-310001396440GFG Group, LLC, Preferred Member Units2023-01-012023-12-310001396440GFG Group, LLC, Preferred Member Units2022-12-310001396440Hawk Ridge Systems, LLC, Secured Debt 12023-01-012023-12-310001396440Hawk Ridge Systems, LLC, Secured Debt 22023-01-012023-12-310001396440Hawk Ridge Systems, LLC, Preferred Member Units 12023-01-012023-12-310001396440Hawk Ridge Systems, LLC, Preferred Member Units 22023-01-012023-12-310001396440Houston Plating and Coatings, LLC, Unsecured Convertible Debt2023-01-012023-12-310001396440Houston Plating and Coatings, LLC, Member Units2023-01-012023-12-310001396440HPEP 3, L.P., LP Interests (HPEP 3, L.P.)2023-01-012023-12-310001396440HPEP 3, L.P., LP Interests (HPEP 3, L.P.)2022-12-310001396440HPEP 3, L.P., LP Interests (HPEP 3, L.P.)2023-12-310001396440HPEP 3, L.P., LP Interests (HPEP 4, L.P.)2023-01-012023-12-310001396440HPEP 3, L.P., LP Interests (HPEP 4, L.P.)2022-12-310001396440HPEP 3, L.P., LP Interests (HPEP 4, L.P.)2023-12-310001396440HPEP 3, L.P., LP Interests (423 COR, L.P.)2023-01-012023-12-310001396440HPEP 3, L.P., LP Interests (423 COR, L.P.)2022-12-310001396440HPEP 3, L.P., LP Interests (423 COR, L.P.)2023-12-310001396440I-45 SLF LLC, Member Units (Fully diluted 20.0%; 21.75% profits interest)2023-01-012023-12-310001396440I-45 SLF LLC, Member Units (Fully diluted 20.0%; 21.75% profits interest)2022-12-310001396440Independent Pet Partners Intermediate Holdings, LLC, Common Equity2023-01-012023-12-310001396440Independent Pet Partners Intermediate Holdings, LLC, Common Equity2022-12-310001396440Infinity X1 Holdings, LLC, Secured Debt2023-01-012023-12-310001396440Infinity X1 Holdings, LLC, Secured Debt2022-12-310001396440Infinity X1 Holdings, LLC, Preferred Equity2023-01-012023-12-310001396440Infinity X1 Holdings, LLC, Preferred Equity2022-12-310001396440Integral Energy Services, Secured Debt2023-01-012023-12-310001396440Integral Energy Services, Secured Debt2022-12-310001396440Integral Energy Services, Preferred Equity2023-01-012023-12-310001396440Integral Energy Services, Preferred Equity2022-12-310001396440Integral Energy Services, Common Stock2023-01-012023-12-310001396440Integral Energy Services, Common Stock2022-12-310001396440Iron-Main Investments, LLC, Secured Debt 12023-01-012023-12-310001396440Iron-Main Investments, LLC, Secured Debt 22023-01-012023-12-310001396440Iron-Main Investments, LLC, Secured Debt 32023-01-012023-12-310001396440Iron-Main Investments, LLC, Secured Debt 42023-01-012023-12-310001396440Iron-Main Investments, LLC, Secured Debt 52023-01-012023-12-310001396440Iron-Main Investments, LLC, Secured Debt 52022-12-310001396440Iron-Main Investments, LLC, Common Stock2023-01-012023-12-310001396440ITA Holdings Group, LLC, Secured Debt 12023-01-012023-12-310001396440ITA Holdings Group, LLC, Secured Debt 12022-12-310001396440ITA Holdings Group, LLC, Secured Debt 22023-01-012023-12-310001396440ITA Holdings Group, LLC, Secured Debt 22022-12-310001396440ITA Holdings Group, LLC, Secured Debt 32023-01-012023-12-310001396440ITA Holdings Group, LLC, Secured Debt 32022-12-310001396440ITA Holdings Group, LLC, Secured Debt 42023-01-012023-12-310001396440ITA Holdings Group, LLC, Secured Debt 42022-12-310001396440ITA Holdings Group, LLC, Warrants2023-01-012023-12-310001396440ITA Holdings Group, LLC, Warrants2022-12-310001396440Johnson Downie Opco, LLC, Secured Debt 12023-01-012023-12-310001396440Johnson Downie Opco, LLC, Secured Debt 22023-01-012023-12-310001396440Johnson Downie Opco, LLC, Preferred Equity2023-01-012023-12-310001396440OnAsset Intelligence, Inc., Secured Debt 1.12023-12-310001396440OnAsset Intelligence, Inc., Secured Debt 1.12023-01-012023-12-310001396440OnAsset Intelligence, Inc., Secured Debt 1.12022-12-310001396440OnAsset Intelligence, Inc., Secured Debt 2.12023-12-310001396440OnAsset Intelligence, Inc., Secured Debt 2.12023-01-012023-12-310001396440OnAsset Intelligence, Inc., Secured Debt 2.12022-12-310001396440OnAsset Intelligence, Inc., Secured Debt 3.12023-12-310001396440OnAsset Intelligence, Inc., Secured Debt 3.12023-01-012023-12-310001396440OnAsset Intelligence, Inc., Secured Debt 3.12022-12-310001396440OnAsset Intelligence, Inc., Secured Debt 4.12023-12-310001396440OnAsset Intelligence, Inc., Secured Debt 4.12023-01-012023-12-310001396440OnAsset Intelligence, Inc., Secured Debt 4.12022-12-310001396440OnAsset Intelligence, Inc., Unsecured Debt2023-01-012023-12-310001396440OnAsset Intelligence, Inc., Preferred Stock2023-01-012023-12-310001396440OnAsset Intelligence, Inc., Common Stock2023-01-012023-12-310001396440OnAsset Intelligence, Inc., Warrants2023-01-012023-12-310001396440Oneliance, LLC, Secured Debt 12023-01-012023-12-310001396440Oneliance, LLC, Secured Debt 22023-01-012023-12-310001396440Oneliance, LLC, Preferred Stock2023-01-012023-12-310001396440Quality Lease Service, LLC, Secured Debt2023-12-310001396440Quality Lease Service, LLC, Secured Debt2023-01-012023-12-310001396440Quality Lease Service, LLC, Secured Debt2022-12-310001396440Quality Lease Service, LLC, Preferred Member Units2023-01-012023-12-310001396440Quality Lease Service, LLC, Preferred Member Units2022-12-310001396440Quality Lease Service, LLC, Preferred Member Units2023-12-310001396440SI East, LLC, Secured Debt 12023-01-012023-12-310001396440SI East, LLC, Secured Debt 2.12023-12-310001396440SI East, LLC, Secured Debt 2.12023-01-012023-12-310001396440SI East, LLC, Secured Debt 2.12022-12-310001396440SI East, LLC, Secured Debt 32023-12-310001396440SI East, LLC, Secured Debt 32023-01-012023-12-310001396440SI East, LLC, Secured Debt 32022-12-310001396440SI East, LLC, Preferred Member Units2023-01-012023-12-310001396440Slick Innovations, LLC, Secured Debt2023-01-012023-12-310001396440Slick Innovations, LLC, Common Stock2023-01-012023-12-310001396440Student Resource Center, LLC, Secured Debt2023-01-012023-12-310001396440Student Resource Center, LLC, Preferred Equity2023-01-012023-12-310001396440Superior Rigging & Erecting Co., Secured Debt2023-01-012023-12-310001396440Superior Rigging & Erecting Co., Preferred Member Units2023-01-012023-12-310001396440The Affiliati Network, LLC, Secured Debt 12023-01-012023-12-310001396440The Affiliati Network, LLC, Secured Debt 22023-01-012023-12-310001396440The Affiliati Network, LLC, Preferred Stock 1.12023-01-012023-12-310001396440The Affiliati Network, LLC, Preferred Stock 1.12022-12-310001396440The Affiliati Network, LLC, Preferred Stock 1.12023-12-310001396440The Affiliati Network, LLC, Preferred Stock 2.12023-01-012023-12-310001396440The Affiliati Network, LLC, Preferred Stock 2.12022-12-310001396440The Affiliati Network, LLC, Preferred Stock 2.12023-12-310001396440UnionRock Energy Fund II, LP, LP Interests 2023-01-012023-12-310001396440UnionRock Energy Fund II, LP, LP Interests 2022-12-310001396440UnionRock Energy Fund II, LP, LP Interests 2023-12-310001396440UnionRock Energy Fund III, LP, LP Interests2023-01-012023-12-310001396440UnionRock Energy Fund III, LP, LP Interests2022-12-310001396440UniTek Global Services, Inc. Secured Convertible Debt 12023-12-310001396440UniTek Global Services, Inc. Secured Convertible Debt 12023-01-012023-12-310001396440UniTek Global Services, Inc. Secured Convertible Debt 12022-12-310001396440UniTek Global Services, Inc. Secured Convertible Debt 22023-12-310001396440UniTek Global Services, Inc. Secured Convertible Debt 22023-01-012023-12-310001396440UniTek Global Services, Inc. Secured Convertible Debt 22022-12-310001396440UniTek Global Services, Inc., Secured Debt 12023-12-310001396440UniTek Global Services, Inc., Secured Debt 12023-01-012023-12-310001396440UniTek Global Services, Inc., Secured Debt 22023-12-310001396440UniTek Global Services, Inc., Secured Debt 22023-01-012023-12-310001396440UniTek Global Services, Inc., Preferred Stock 12023-01-012023-12-310001396440UniTek Global Services, Inc., Preferred Stock 22023-01-012023-12-310001396440UniTek Global Services, Inc., Preferred Stock 32023-01-012023-12-310001396440UniTek Global Services, Inc., Preferred Stock 42023-01-012023-12-310001396440UniTek Global Services, Inc., Common Stock2023-01-012023-12-310001396440Universal Wellhead Services Holdings, LLC, Preferred Memeber Units2023-12-310001396440Universal Wellhead Services Holdings, LLC, Preferred Memeber Units2023-01-012023-12-310001396440Universal Wellhead Services Holdings, LLC, Preferred Memeber Units2022-12-310001396440Universal Wellhead Services Holdings, LLC, Member Units2023-01-012023-12-310001396440World Micro Holdings, LLC, Secured Debt2023-01-012023-12-310001396440World Micro Holdings, LLC, Preferred Equity2023-01-012023-12-310001396440Other, Affiliate Investments2023-01-012023-12-310001396440Other, Affiliate Investments2022-12-310001396440Other, Affiliate Investments2023-12-310001396440Amounts related to investments transferred to or from other 1940 Act classification during the period, Affiliate Investments2023-01-012023-12-310001396440Amounts related to investments transferred to or from other 1940 Act classification during the period, Affiliate Investments2022-12-310001396440Amounts related to investments transferred to or from other 1940 Act classification during the period, Affiliate Investments2023-12-310001396440us-gaap:MidwestRegionMemberus-gaap:InvestmentAffiliatedIssuerControlledMember2023-12-310001396440us-gaap:MidwestRegionMemberus-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2023-12-310001396440main:NortheastRegionAndCanadaMemberus-gaap:InvestmentAffiliatedIssuerControlledMember2023-12-310001396440main:NortheastRegionAndCanadaMemberus-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2023-12-310001396440us-gaap:SoutheastRegionMemberus-gaap:InvestmentAffiliatedIssuerControlledMember2023-12-310001396440us-gaap:InvestmentAffiliatedIssuerNoncontrolledMemberus-gaap:SoutheastRegionMember2023-12-310001396440us-gaap:SouthwestRegionMemberus-gaap:InvestmentAffiliatedIssuerControlledMember2023-12-310001396440us-gaap:SouthwestRegionMemberus-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2023-12-310001396440us-gaap:WestRegionMemberus-gaap:InvestmentAffiliatedIssuerControlledMember2023-12-310001396440us-gaap:InvestmentAffiliatedIssuerNoncontrolledMemberus-gaap:WestRegionMember2023-12-310001396440Analytical Systems Keco Holdings, LLC, Secured Debt 12022-01-012022-12-310001396440Analytical Systems Keco Holdings, LLC, Secured Debt 12021-12-310001396440Analytical Systems Keco Holdings, LLC, Secured Debt 22022-01-012022-12-310001396440Analytical Systems Keco Holdings, LLC, Secured Debt 22021-12-310001396440Analytical Systems Keco Holdings, LLC, Preferred Member Units 1.12022-01-012022-12-310001396440Analytical Systems Keco Holdings, LLC, Preferred Member Units 1.12021-12-310001396440Analytical Systems Keco Holdings, LLC, Preferred Member Units 2.12022-01-012022-12-310001396440Analytical Systems Keco Holdings, LLC, Preferred Member Units 2.12021-12-310001396440Analytical Systems Keco Holdings, LLC, Warrants2022-01-012022-12-310001396440Analytical Systems Keco Holdings, LLC, Warrants2021-12-310001396440Brewer Crane Holdings, LLC, Secured Debt2022-01-012022-12-310001396440Brewer Crane Holdings, LLC, Secured Debt2021-12-310001396440Brewer Crane Holdings, LLC, Preferred Member Units2022-01-012022-12-310001396440Brewer Crane Holdings, LLC, Preferred Member Units2021-12-310001396440Café Brazil, LLC, Member Units2022-01-012022-12-310001396440Café Brazil, LLC, Member Units2021-12-310001396440California Splendor Holdings LLC, Secured Debt2022-01-012022-12-310001396440California Splendor Holdings LLC, Secured Debt2021-12-310001396440California Splendor Holdings LLC, Preferred Member Units 1.12022-01-012022-12-310001396440California Splendor Holdings LLC, Preferred Member Units 1.12021-12-310001396440California Splendor Holdings LLC, Preferred Member Units 2.12022-01-012022-12-310001396440California Splendor Holdings LLC, Preferred Member Units 2.12021-12-310001396440Clad-Rex Steel, LLC, Secured Debt 12022-01-012022-12-310001396440Clad-Rex Steel, LLC, Secured Debt 12021-12-310001396440Clad-Rex Steel, LLC, Secured Debt 2.12022-12-310001396440Clad-Rex Steel, LLC, Secured Debt 2.12022-01-012022-12-310001396440Clad-Rex Steel, LLC, Secured Debt 2.12021-12-310001396440Clad-Rex Steel, LLC, Secured Debt 32022-01-012022-12-310001396440Clad-Rex Steel, LLC, Secured Debt 32021-12-310001396440Clad-Rex Steel, LLC, Member Units 12022-01-012022-12-310001396440Clad-Rex Steel, LLC, Member Units 12021-12-310001396440Clad-Rex Steel, LLC, Member Units 22022-01-012022-12-310001396440Clad-Rex Steel, LLC, Member Units 22021-12-310001396440CMS Minerals Investments, Member Units2022-01-012022-12-310001396440CMS Minerals Investments, Member Units2021-12-310001396440Cody Pools, Inc., Secured Debt 1.22022-12-310001396440Cody Pools, Inc., Secured Debt 1.22022-01-012022-12-310001396440Cody Pools, Inc., Secured Debt 1.22021-12-310001396440Cody Pools, Inc., Secured Debt 2.22022-12-310001396440Cody Pools, Inc., Secured Debt 2.22022-01-012022-12-310001396440Cody Pools, Inc., Secured Debt 2.22021-12-310001396440Cody Pools, Inc., Preferred Member Units2022-01-012022-12-310001396440Cody Pools, Inc., Preferred Member Units2021-12-310001396440CompareNetworks Topco, LLC, Secured Debt 12022-01-012022-12-310001396440CompareNetworks Topco, LLC, Secured Debt 12021-12-310001396440CompareNetworks Topco, LLC, Secured Debt 22022-01-012022-12-310001396440CompareNetworks Topco, LLC, Secured Debt 22021-12-310001396440CompareNetworks Topco, LLC, Preferred Member Units2022-01-012022-12-310001396440CompareNetworks Topco, LLC, Preferred Member Units2021-12-310001396440Datacom, LLC, Secured Debt 12022-01-012022-12-310001396440Datacom, LLC, Secured Debt 12021-12-310001396440Datacom, LLC, Secured Debt 22022-01-012022-12-310001396440Datacom, LLC, Secured Debt 22021-12-310001396440Datacom, LLC, Preferred Member Units2022-01-012022-12-310001396440Datacom, LLC, Preferred Member Units2021-12-310001396440Direct Marketing Solutions, Inc., Secured Debt 12022-01-012022-12-310001396440Direct Marketing Solutions, Inc., Secured Debt 12021-12-310001396440Direct Marketing Solutions, Inc., Secured Debt 22022-01-012022-12-310001396440Direct Marketing Solutions, Inc., Secured Debt 22021-12-310001396440Direct Marketing Solutions, Inc., Secured Debt 32022-12-310001396440Direct Marketing Solutions, Inc., Secured Debt 32022-01-012022-12-310001396440Direct Marketing Solutions, Inc., Secured Debt 32021-12-310001396440Direct Marketing Solutions, Inc., Preferred Stock2022-01-012022-12-310001396440Direct Marketing Solutions, Inc., Preferred Stock2021-12-310001396440Elgin AcquireCo, LLC, Secured Debt 12022-01-012022-12-310001396440Elgin AcquireCo, LLC, Secured Debt 12021-12-310001396440Elgin AcquireCo, LLC, Secured Debt 22022-01-012022-12-310001396440Elgin AcquireCo, LLC, Secured Debt 22021-12-310001396440Elgin AcquireCo, LLC, Secured Debt 32022-01-012022-12-310001396440Elgin AcquireCo, LLC, Secured Debt 32021-12-310001396440Elgin AcquireCo, LLC, Common Stock 12022-01-012022-12-310001396440Elgin AcquireCo, LLC, Common Stock 12021-12-310001396440Elgin AcquireCo, LLC, Common Stock 22022-01-012022-12-310001396440Elgin AcquireCo, LLC, Common Stock 22021-12-310001396440Gamber-Johnson Holdings, LLC, Secured Debt 12022-01-012022-12-310001396440Gamber-Johnson Holdings, LLC, Secured Debt 12021-12-310001396440Gamber-Johnson Holdings, LLC, Secured Debt 22022-01-012022-12-310001396440Gamber-Johnson Holdings, LLC, Secured Debt 22021-12-310001396440Gamber-Johnson Holdings, LLC, Secured Debt 32022-12-310001396440Gamber-Johnson Holdings, LLC, Secured Debt 32022-01-012022-12-310001396440Gamber-Johnson Holdings, LLC, Secured Debt 32021-12-310001396440Gamber-Johnson Holdings, LLC, Member Units2022-01-012022-12-310001396440Gamber-Johnson Holdings, LLC, Member Units2021-12-310001396440GRT Rubber Technologies LLC, Secured Debt 12022-01-012022-12-310001396440GRT Rubber Technologies LLC, Secured Debt 12021-12-310001396440GRT Rubber Technologies LLC, Secured Debt 22022-01-012022-12-310001396440GRT Rubber Technologies LLC, Secured Debt 22021-12-310001396440GRT Rubber Technologies LLC, Member Units2022-01-012022-12-310001396440GRT Rubber Technologies LLC, Member Units2021-12-310001396440Gulf Publishing Holdings, LLC, Secured Debt 12022-01-012022-12-310001396440Gulf Publishing Holdings, LLC, Secured Debt 12021-12-310001396440Gulf Publishing Holdings, LLC, Secured Debt 2.22022-12-310001396440Gulf Publishing Holdings, LLC, Secured Debt 2.22022-01-012022-12-310001396440Gulf Publishing Holdings, LLC, Secured Debt 2.22021-12-310001396440Gulf Publishing Holdings, LLC, Secured Debt 32022-12-310001396440Gulf Publishing Holdings, LLC, Secured Debt 32022-01-012022-12-310001396440Gulf Publishing Holdings, LLC, Secured Debt 32021-12-310001396440Gulf Publishing Holdings, LLC, Member Units2022-01-012022-12-310001396440Gulf Publishing Holdings, LLC, Member Units2021-12-310001396440Gulf Publishing Holdings, LLC, Preferred Equity2022-01-012022-12-310001396440Gulf Publishing Holdings, LLC, Preferred Equity2021-12-310001396440Jensen Jewelers of Idaho, LLC, Secured Debt 12022-01-012022-12-310001396440Jensen Jewelers of Idaho, LLC, Secured Debt 12021-12-310001396440Jensen Jewelers of Idaho, LLC, Secured Debt 22022-01-012022-12-310001396440Jensen Jewelers of Idaho, LLC, Secured Debt 22021-12-310001396440Jensen Jewelers of Idaho, LLC, Member Units2022-01-012022-12-310001396440Jensen Jewelers of Idaho, LLC, Member Units2021-12-310001396440Kickhaefer Manufacturing Company, LLC, Secured Debt 12022-01-012022-12-310001396440Kickhaefer Manufacturing Company, LLC, Secured Debt 12021-12-310001396440Kickhaefer Manufacturing Company, LLC, Secured Debt 22022-01-012022-12-310001396440Kickhaefer Manufacturing Company, LLC, Secured Debt 22021-12-310001396440Kickhaefer Manufacturing Company, LLC, Preferred Equity2022-01-012022-12-310001396440Kickhaefer Manufacturing Company, LLC, Preferred Equity2021-12-310001396440Kickhaefer Manufacturing Company, LLC, Member Units 12022-01-012022-12-310001396440Kickhaefer Manufacturing Company, LLC, Member Units 12021-12-310001396440Kickhaefer Manufacturing Company, LLC, Member Units 12022-12-310001396440Market Force Information, LLC, Secured Debt 12022-01-012022-12-310001396440Market Force Information, LLC, Secured Debt 12021-12-310001396440Market Force Information, LLC, Secured Debt 22022-01-012022-12-310001396440Market Force Information, LLC, Secured Debt 22021-12-310001396440Market Force Information, LLC, Member Units2022-01-012022-12-310001396440Market Force Information, LLC, Member Units2021-12-310001396440MetalForming AcquireCo, LLC, Secured Debt 12022-01-012022-12-310001396440MetalForming AcquireCo, LLC, Secured Debt 12021-12-310001396440MetalForming AcquireCo, LLC, Secured Debt 22022-01-012022-12-310001396440MetalForming AcquireCo, LLC, Secured Debt 22021-12-310001396440MetalForming AcquireCo, LLC, Preferred Equity2022-01-012022-12-310001396440MetalForming AcquireCo, LLC, Preferred Equity2021-12-310001396440MetalForming AcquireCo, LLC, Common Stock2022-01-012022-12-310001396440MetalForming AcquireCo, LLC, Common Stock2021-12-310001396440MH Corbin Holding LLC, Secured Debt2022-01-012022-12-310001396440MH Corbin Holding LLC, Secured Debt2021-12-310001396440MH Corbin Holding LLC, Preferred Member Units 12022-01-012022-12-310001396440MH Corbin Holding LLC, Preferred Member Units 12021-12-310001396440MH Corbin Holding LLC, Preferred Member Units 22022-01-012022-12-310001396440MH Corbin Holding LLC, Preferred Member Units 22021-12-310001396440MSC Adviser I, LLC, Member Units2022-01-012022-12-310001396440MSC Adviser I, LLC, Member Units2021-12-310001396440Mystic Logistics Holdings, LLC, Secured Debt 12022-01-012022-12-310001396440Mystic Logistics Holdings, LLC, Secured Debt 12021-12-310001396440Mystic Logistics Holdings, LLC, Secured Debt 22022-01-012022-12-310001396440Mystic Logistics Holdings, LLC, Secured Debt 22021-12-310001396440Mystic Logistics Holdings, LLC, Common Stock2022-01-012022-12-310001396440Mystic Logistics Holdings, LLC, Common Stock2021-12-310001396440OMi Topco, LLC, Secured Debt2022-01-012022-12-310001396440OMi Topco, LLC, Secured Debt2021-12-310001396440OMi Topco, LLC, Preferred Member Units2022-01-012022-12-310001396440OMi Topco, LLC, Preferred Member Units2021-12-310001396440PPL RVs, Inc., Secured Debt 12022-01-012022-12-310001396440PPL RVs, Inc., Secured Debt 12021-12-310001396440PPL RVs, Inc., Secured Debt 22022-01-012022-12-310001396440PPL RVs, Inc., Secured Debt 22021-12-310001396440PPL RVs, Inc., Common Stock 12022-01-012022-12-310001396440PPL RVs, Inc., Common Stock 12021-12-310001396440PPL RVs, Inc., Common Stock 22022-01-012022-12-310001396440PPL RVs, Inc., Common Stock 22021-12-310001396440Principle Environmental, LLC, Secured Debt 12022-01-012022-12-310001396440Principle Environmental, LLC, Secured Debt 12021-12-310001396440Principle Environmental, LLC, Secured Debt 22022-01-012022-12-310001396440Principle Environmental, LLC, Secured Debt 22021-12-310001396440Principle Environmental, LLC, Preferred Member Units2022-01-012022-12-310001396440Principle Environmental, LLC, Preferred Member Units2021-12-310001396440Principle Environmental, LLC, Common Stock2022-01-012022-12-310001396440Principle Environmental, LLC, Common Stock2021-12-310001396440Quality Lease Service, LLC, Member Units2022-01-012022-12-310001396440Quality Lease Service, LLC, Member Units2021-12-310001396440Robbins Bros. Jewelry, Inc., Secured Debt 12022-01-012022-12-310001396440Robbins Bros. Jewelry, Inc., Secured Debt 12021-12-310001396440Robbins Bros. Jewelry, Inc., Secured Debt 22022-01-012022-12-310001396440Robbins Bros. Jewelry, Inc., Secured Debt 22021-12-310001396440Robbins Bros. Jewelry, Inc., Preferred Equity2022-01-012022-12-310001396440Robbins Bros. Jewelry, Inc., Preferred Equity2021-12-310001396440Trantech Radiator Topco, LLC, Secured Debt 12022-01-012022-12-310001396440Trantech Radiator Topco, LLC, Secured Debt 12021-12-310001396440Trantech Radiator Topco, LLC, Secured Debt 22022-01-012022-12-310001396440Trantech Radiator Topco, LLC, Secured Debt 22021-12-310001396440Trantech Radiator Topco, LLC, Common Stock2022-01-012022-12-310001396440Trantech Radiator Topco, LLC, Common Stock2021-12-310001396440Ziegler’s NYPD, LLC, Secured Debt 12022-01-012022-12-310001396440Ziegler’s NYPD, LLC, Secured Debt 12021-12-310001396440Ziegler’s NYPD, LLC, Secured Debt 22022-01-012022-12-310001396440Ziegler’s NYPD, LLC, Secured Debt 22021-12-310001396440Ziegler’s NYPD, LLC, Secured Debt 32022-01-012022-12-310001396440Ziegler’s NYPD, LLC, Secured Debt 32021-12-310001396440Ziegler’s NYPD, LLC, Preferred Member Units2022-01-012022-12-310001396440Ziegler’s NYPD, LLC, Preferred Member Units2021-12-310001396440Ziegler’s NYPD, LLC, Warrants2022-01-012022-12-310001396440Ziegler’s NYPD, LLC, Warrants2021-12-3100013964402717 MH, L.P., LP Interests (2717 MH, L.P.)2022-01-012022-12-3100013964402717 MH, L.P., LP Interests (2717 MH, L.P.)2021-12-3100013964402717 MH, L.P., LP Interests (2717 MH, L.P.)2022-12-3100013964402717 MH, L.P., LP Interests (2717 HPP-MS, L.P.)2022-01-012022-12-3100013964402717 MH, L.P., LP Interests (2717 HPP-MS, L.P.)2021-12-310001396440ASC Interests, LLC, Secured Debt 12022-01-012022-12-310001396440ASC Interests, LLC, Secured Debt 12021-12-310001396440ASC Interests, LLC, Secured Debt 22022-01-012022-12-310001396440ASC Interests, LLC, Secured Debt 22021-12-310001396440ASC Interests, LLC, Member Units2022-01-012022-12-310001396440ASC Interests, LLC, Member Units2021-12-310001396440ATS Workholding, LLC, Secured Debt 12022-01-012022-12-310001396440ATS Workholding, LLC, Secured Debt 12021-12-310001396440ATS Workholding, LLC, Secured Debt 22022-01-012022-12-310001396440ATS Workholding, LLC, Secured Debt 22021-12-310001396440ATS Workholding, LLC, Preferred Member Units2022-01-012022-12-310001396440ATS Workholding, LLC, Preferred Member Units2021-12-310001396440Barfly Ventures, LLC, Secured Debt2022-01-012022-12-310001396440Barfly Ventures, LLC, Secured Debt2021-12-310001396440Barfly Ventures, LLC, Member Units2022-01-012022-12-310001396440Barfly Ventures, LLC, Member Units2021-12-310001396440Batjer TopCo, LLC, Secured Debt 12022-01-012022-12-310001396440Batjer TopCo, LLC, Secured Debt 12021-12-310001396440Batjer TopCo, LLC, Secured Debt 22022-01-012022-12-310001396440Batjer TopCo, LLC, Secured Debt 22021-12-310001396440Batjer TopCo, LLC, Secured Debt 32022-01-012022-12-310001396440Batjer TopCo, LLC, Secured Debt 32021-12-310001396440Batjer TopCo, LLC, Preferred Stock2022-01-012022-12-310001396440Batjer TopCo, LLC, Preferred Stock2021-12-310001396440Bolder Panther Group, LLC, Secured Debt 12022-01-012022-12-310001396440Bolder Panther Group, LLC, Secured Debt 12021-12-310001396440Bolder Panther Group, LLC, Secured Debt 12022-12-310001396440Bolder Panther Group, LLC, Secured Debt 22022-12-310001396440Bolder Panther Group, LLC, Secured Debt 22022-01-012022-12-310001396440Bolder Panther Group, LLC, Secured Debt 22021-12-310001396440Bolder Panther Group, LLC, Class A Preferred Member Units2022-01-012022-12-310001396440Bolder Panther Group, LLC, Class A Preferred Member Units2021-12-310001396440Bolder Panther Group, LLC, Class A Preferred Member Units2022-12-310001396440Bolder Panther Group, LLC, Class B Preferred Member Units2022-01-012022-12-310001396440Bolder Panther Group, LLC, Class B Preferred Member Units2021-12-310001396440Bridge Capital Solutions Corporation, Secured Debt 12022-01-012022-12-310001396440Bridge Capital Solutions Corporation, Secured Debt 12021-12-310001396440Bridge Capital Solutions Corporation, Secured Debt 22022-01-012022-12-310001396440Bridge Capital Solutions Corporation, Secured Debt 22021-12-310001396440Bridge Capital Solutions Corporation, Preferred Member Units2022-01-012022-12-310001396440Bridge Capital Solutions Corporation, Preferred Member Units2021-12-310001396440Bridge Capital Solutions Corporation, Warrants 12022-01-012022-12-310001396440Bridge Capital Solutions Corporation, Warrants 12021-12-310001396440Bridge Capital Solutions Corporation, Warrants 22022-01-012022-12-310001396440Bridge Capital Solutions Corporation, Warrants 22021-12-310001396440CBT Nuggets, LLC, Member Units2022-01-012022-12-310001396440CBT Nuggets, LLC, Member Units2021-12-310001396440Centre Technologies Holdings, LLC, Secured Debt 12022-01-012022-12-310001396440Centre Technologies Holdings, LLC, Secured Debt 12021-12-310001396440Centre Technologies Holdings, LLC, Secured Debt 22022-01-012022-12-310001396440Centre Technologies Holdings, LLC, Secured Debt 22021-12-310001396440Centre Technologies Holdings, LLC, Preferred Member Units2022-01-012022-12-310001396440Centre Technologies Holdings, LLC, Preferred Member Units2021-12-310001396440Chamberlin Holding LLC, Secured Debt 12022-01-012022-12-310001396440Chamberlin Holding LLC, Secured Debt 12021-12-310001396440Chamberlin Holding LLC, Secured Debt 22022-01-012022-12-310001396440Chamberlin Holding LLC, Secured Debt 22021-12-310001396440Chamberlin Holding LLC, Member Units 12022-01-012022-12-310001396440Chamberlin Holding LLC, Member Units 12021-12-310001396440Chamberlin Holding LLC, Member Units 22022-01-012022-12-310001396440Chamberlin Holding LLC, Member Units 22021-12-310001396440Charps, LLC, Unsecured Debt2022-01-012022-12-310001396440Charps, LLC, Unsecured Debt2021-12-310001396440Charps, LLC, Preferred Member Units2022-01-012022-12-310001396440Charps, LLC, Preferred Member Units2021-12-310001396440Colonial Electric Company LLC, Secured Debt 12022-01-012022-12-310001396440Colonial Electric Company LLC, Secured Debt 12021-12-310001396440Colonial Electric Company LLC, Secured Debt 22022-01-012022-12-310001396440Colonial Electric Company LLC, Secured Debt 22021-12-310001396440Colonial Electric Company LLC, Preferred Member Units2022-01-012022-12-310001396440Colonial Electric Company LLC, Preferred Member Units2021-12-310001396440Copper Trail Fund Investments, LP Interests (CTMH, LP)2022-01-012022-12-310001396440Copper Trail Fund Investments, LP Interests (CTMH, LP)2021-12-310001396440Digital Products Holdings LLC, Secured Debt2022-01-012022-12-310001396440Digital Products Holdings LLC, Secured Debt2021-12-310001396440Digital Products Holdings LLC, Preferred Member Units2022-01-012022-12-310001396440Digital Products Holdings LLC, Preferred Member Units2021-12-310001396440Garreco, LLC, Secured Debt2022-01-012022-12-310001396440Garreco, LLC, Secured Debt2021-12-310001396440Garreco, LLC, Member Units2022-01-012022-12-310001396440Garreco, LLC, Member Units2021-12-310001396440Gulf Manufacturing, LLC, Member Units2022-01-012022-12-310001396440Gulf Manufacturing, LLC, Member Units2021-12-310001396440Harrison Hydra-Gen, Ltd., Common Stock2022-01-012022-12-310001396440Harrison Hydra-Gen, Ltd., Common Stock2021-12-310001396440Johnson Downie Opco, LLC, Secured Debt 12022-01-012022-12-310001396440Johnson Downie Opco, LLC, Secured Debt 12021-12-310001396440Johnson Downie Opco, LLC, Secured Debt 22022-01-012022-12-310001396440Johnson Downie Opco, LLC, Secured Debt 22021-12-310001396440Johnson Downie Opco, LLC, Preferred Equity2022-01-012022-12-310001396440Johnson Downie Opco, LLC, Preferred Equity2021-12-310001396440JorVet Holdings, LLC, Secured Debt2022-01-012022-12-310001396440JorVet Holdings, LLC, Secured Debt2021-12-310001396440JorVet Holdings, LLC, Preferred Equity2022-01-012022-12-310001396440JorVet Holdings, LLC, Preferred Equity2021-12-310001396440KBK Industries, LLC, Member Units2022-01-012022-12-310001396440KBK Industries, LLC, Member Units2021-12-310001396440MS Private Loan Fund I, LP, Secured Debt 12022-01-012022-12-310001396440MS Private Loan Fund I, LP, Secured Debt 12021-12-310001396440MS Private Loan Fund I, LP, Secured Debt 12022-12-310001396440MS Private Loan Fund I, LP, Secured Debt 22022-01-012022-12-310001396440MS Private Loan Fund I, LP, Secured Debt 22021-12-310001396440MS Private Loan Fund I, LP, Secured Debt 22022-12-310001396440MS Private Loan Fund I, LP, LP Interests2022-01-012022-12-310001396440MS Private Loan Fund I, LP, LP Interests2021-12-310001396440MS Private Loan Fund I, LP, LP Interests2022-12-310001396440MSC Income Fund, Inc., Common Equity2022-01-012022-12-310001396440MSC Income Fund, Inc., Common Equity2021-12-310001396440NAPCO Precast, LLC, Member Units2022-01-012022-12-310001396440NAPCO Precast, LLC, Member Units2021-12-310001396440Nebraska Vet AcquireCo, LLC, Secured Debt 12022-01-012022-12-310001396440Nebraska Vet AcquireCo, LLC, Secured Debt 12021-12-310001396440Nebraska Vet AcquireCo, LLC, Secured Debt 22022-01-012022-12-310001396440Nebraska Vet AcquireCo, LLC, Secured Debt 22021-12-310001396440Nebraska Vet AcquireCo, LLC, , Secured Debt 32022-12-310001396440Nebraska Vet AcquireCo, LLC, , Secured Debt 32022-01-012022-12-310001396440Nebraska Vet AcquireCo, LLC, , Secured Debt 32021-12-310001396440Nebraska Vet AcquireCo, LLC, Preferred Member Units2022-01-012022-12-310001396440Nebraska Vet AcquireCo, LLC, Preferred Member Units2021-12-310001396440NexRev LLC, Secured Debt 12022-01-012022-12-310001396440NexRev LLC, Secured Debt 12021-12-310001396440NexRev LLC, Secured Debt 22022-01-012022-12-310001396440NexRev LLC, Secured Debt 22021-12-310001396440NexRev LLC, Preferred Member Units2022-01-012022-12-310001396440NexRev LLC, Preferred Member Units2021-12-310001396440NRP Jones, LLC, Secured Debt2022-01-012022-12-310001396440NRP Jones, LLC, Secured Debt2021-12-310001396440NRP Jones, LLC, Member Units 12022-01-012022-12-310001396440NRP Jones, LLC, Member Units 12021-12-310001396440NRP Jones, LLC, Member Units 12022-12-310001396440NRP Jones, LLC, Member Units 22022-01-012022-12-310001396440NRP Jones, LLC, Member Units 22021-12-310001396440NRP Jones, LLC, Member Units 22022-12-310001396440NuStep, LLC, Secured Debt 12022-01-012022-12-310001396440NuStep, LLC, Secured Debt 12021-12-310001396440NuStep, LLC, Secured Debt 22022-01-012022-12-310001396440NuStep, LLC, Secured Debt 22021-12-310001396440NuStep, LLC, Preferred Member Units 1.12022-01-012022-12-310001396440NuStep, LLC, Preferred Member Units 1.12021-12-310001396440NuStep, LLC, Preferred Member Units 2.12022-01-012022-12-310001396440NuStep, LLC, Preferred Member Units 2.12021-12-310001396440Orttech Holdings, LLC, Secured Debt 12022-01-012022-12-310001396440Orttech Holdings, LLC, Secured Debt 12021-12-310001396440Orttech Holdings, LLC, Secured Debt 22022-01-012022-12-310001396440Orttech Holdings, LLC, Secured Debt 22021-12-310001396440Orttech Holdings, LLC, Preferred Stock2022-01-012022-12-310001396440Orttech Holdings, LLC, Preferred Stock2021-12-310001396440Pearl Meyer Topco LLC, Secured Debt 12022-01-012022-12-310001396440Pearl Meyer Topco LLC, Secured Debt 12021-12-310001396440Pearl Meyer Topco LLC, Secured Debt 22022-01-012022-12-310001396440Pearl Meyer Topco LLC, Secured Debt 22021-12-310001396440Pearl Meyer Topco LLC, Secured Debt 32022-01-012022-12-310001396440Pearl Meyer Topco LLC, Secured Debt 32021-12-310001396440Pearl Meyer Topco LLC, Preferred Equity2022-01-012022-12-310001396440Pearl Meyer Topco LLC, Preferred Equity2021-12-310001396440River Aggregates, LLC, Member Units2022-01-012022-12-310001396440River Aggregates, LLC, Member Units2021-12-310001396440Tedder Industries, LLC, Secured Debt 12022-01-012022-12-310001396440Tedder Industries, LLC, Secured Debt 12021-12-310001396440Tedder Industries, LLC, Secured Debt 22022-01-012022-12-310001396440Tedder Industries, LLC, Secured Debt 22021-12-310001396440Tedder Industries, LLC, Preferred Member Units2022-01-012022-12-310001396440Tedder Industries, LLC, Preferred Member Units2021-12-310001396440Televerde, LLC, Member Units2022-01-012022-12-310001396440Televerde, LLC, Member Units2021-12-310001396440Televerde, LLC, Preferred Stock2022-01-012022-12-310001396440Televerde, LLC, Preferred Stock2021-12-310001396440Vision Interests, Inc., Series A Preferred Stock2022-01-012022-12-310001396440Vision Interests, Inc., Series A Preferred Stock2021-12-310001396440VVS Holdco LLC, Secured Debt 12022-01-012022-12-310001396440VVS Holdco LLC, Secured Debt 12021-12-310001396440VVS Holdco LLC, Secured Debt 22022-01-012022-12-310001396440VVS Holdco LLC, Secured Debt 22021-12-310001396440VVS Holdco LLC, Preferred Equity2022-01-012022-12-310001396440VVS Holdco LLC, Preferred Equity2021-12-310001396440Other, Control Investments2022-01-012022-12-310001396440Other, Control Investments2021-12-310001396440Amounts related to investments transferred to or from other 1940 Act classification during the period, Control Investments.12022-01-012022-12-310001396440Amounts related to investments transferred to or from other 1940 Act classification during the period, Control Investments.12021-12-310001396440Amounts related to investments transferred to or from other 1940 Act classification during the period, Control Investments.12022-12-310001396440us-gaap:InvestmentAffiliatedIssuerControlledMember2021-12-310001396440AAC Holdings, Inc., Secured Debt2022-01-012022-12-310001396440AAC Holdings, Inc., Secured Debt2021-12-310001396440AAC Holdings, Inc., Common Stock2022-01-012022-12-310001396440AAC Holdings, Inc., Common Stock2021-12-310001396440AAC Holdings, Inc., Warrants2022-01-012022-12-310001396440AAC Holdings, Inc., Warrants2021-12-310001396440AFG Capital Group, LLC, Secured Debt2022-01-012022-12-310001396440AFG Capital Group, LLC, Secured Debt2021-12-310001396440AFG Capital Group, LLC, Secured Debt2022-12-310001396440AFG Capital Group, LLC, Preferred Member Units2022-01-012022-12-310001396440AFG Capital Group, LLC, Preferred Member Units2021-12-310001396440ATX Networks Corp., Secured Debt2022-01-012022-12-310001396440ATX Networks Corp., Secured Debt2021-12-310001396440ATX Networks Corp., Unsecured Debt2022-01-012022-12-310001396440ATX Networks Corp., Unsecured Debt2021-12-310001396440ATX Networks Corp., Common Stock2022-01-012022-12-310001396440ATX Networks Corp., Common Stock2021-12-310001396440BBB Tank Services, LLC, Unsecured Debt 12022-01-012022-12-310001396440BBB Tank Services, LLC, Unsecured Debt 12021-12-310001396440BBB Tank Services, LLC, Unsecured Debt 22022-01-012022-12-310001396440BBB Tank Services, LLC, Unsecured Debt 22021-12-310001396440BBB Tank Services, LLC, Member Units2022-01-012022-12-310001396440BBB Tank Services, LLC, Member Units2021-12-310001396440BBB Tank Services, LLC, Preferred Stock (non-voting)2022-01-012022-12-310001396440BBB Tank Services, LLC, Preferred Stock (non-voting)2021-12-310001396440Boccella Precast Products LLC, Secured Debt2022-01-012022-12-310001396440Boccella Precast Products LLC, Secured Debt2021-12-310001396440Boccella Precast Products LLC, Member Units2022-01-012022-12-310001396440Boccella Precast Products LLC, Member Units2021-12-310001396440Buca C, LLC, Secured Debt2022-01-012022-12-310001396440Buca C, LLC, Secured Debt2021-12-310001396440Buca C, LLC, Preferred Member Units2022-01-012022-12-310001396440Buca C, LLC, Preferred Member Units2021-12-310001396440Career Team Holdings, LLC, Secured Debt 12022-01-012022-12-310001396440Career Team Holdings, LLC, Secured Debt 12021-12-310001396440Career Team Holdings, LLC, Secured Debt 22022-01-012022-12-310001396440Career Team Holdings, LLC, Secured Debt 22021-12-310001396440Career Team Holdings, LLC, Common Stock2022-01-012022-12-310001396440Career Team Holdings, LLC, Common Stock2021-12-310001396440Chandler Signs Holdings, LLC, Class A Units2022-01-012022-12-310001396440Chandler Signs Holdings, LLC, Class A Units2021-12-310001396440Classic H&G Holdings, LLC, Secured Debt 12022-01-012022-12-310001396440Classic H&G Holdings, LLC, Secured Debt 12021-12-310001396440Classic H&G Holdings, LLC, Secured Debt 22022-01-012022-12-310001396440Classic H&G Holdings, LLC, Secured Debt 22021-12-310001396440Classic H&G Holdings, LLC, Preferred Member Units2022-01-012022-12-310001396440Classic H&G Holdings, LLC, Preferred Member Units2021-12-310001396440Congruent Credit Opportunities Funds, LP Interests (Congruent Credit Opportunities Fund III, LP)2022-01-012022-12-310001396440Congruent Credit Opportunities Funds, LP Interests (Congruent Credit Opportunities Fund III, LP)2021-12-310001396440Congruent Credit Opportunities Funds, LP Interests (Congruent Credit Opportunities Fund III, LP)2022-12-310001396440DMA Industries, LLC, Secured Debt2022-01-012022-12-310001396440DMA Industries, LLC, Secured Debt2021-12-310001396440DMA Industries, LLC, Preferred Equity2022-01-012022-12-310001396440DMA Industries, LLC, Preferred Equity2021-12-310001396440Dos Rios Partners, LP Interests (Dos Rios Partners, LP)2022-01-012022-12-310001396440Dos Rios Partners, LP Interests (Dos Rios Partners, LP)2021-12-310001396440Dos Rios Partners, LP Interests (Dos Rios Partners - A, LP)2022-01-012022-12-310001396440Dos Rios Partners, LP Interests (Dos Rios Partners - A, LP)2021-12-310001396440Dos Rios Stone Products LLC, Class A Preferred Units2022-01-012022-12-310001396440Dos Rios Stone Products LLC, Class A Preferred Units2021-12-310001396440EIG Fund Investments, LP Interests (EIG Global Private Debt Fund-A, L.P.)2022-01-012022-12-310001396440EIG Fund Investments, LP Interests (EIG Global Private Debt Fund-A, L.P.)2021-12-310001396440Flame King Holdings, LLC, Secured Debt 12022-01-012022-12-310001396440Flame King Holdings, LLC, Secured Debt 12021-12-310001396440Flame King Holdings, LLC, Secured Debt 22022-01-012022-12-310001396440Flame King Holdings, LLC, Secured Debt 22021-12-310001396440Flame King Holdings, LLC, Preferred Equity2022-01-012022-12-310001396440Flame King Holdings, LLC, Preferred Equity2021-12-310001396440Freeport Financial SBIC Fund LP, LP Interests (Freeport Financial SBIC Fund LP)2022-01-012022-12-310001396440Freeport Financial SBIC Fund LP, LP Interests (Freeport Financial SBIC Fund LP)2021-12-310001396440Freeport Financial SBIC Fund LP, LP Interests (Freeport Financial SBIC Fund LP)2022-12-310001396440Freeport Financial SBIC Fund LP, LP Interests (Freeport First Lien Loan Fund III LP)2022-01-012022-12-310001396440Freeport Financial SBIC Fund LP, LP Interests (Freeport First Lien Loan Fund III LP)2021-12-310001396440GFG Group, LLC., Secured Debt2022-01-012022-12-310001396440GFG Group, LLC., Secured Debt2021-12-310001396440GFG Group, LLC., Preferred Member Units2022-01-012022-12-310001396440GFG Group, LLC., Preferred Member Units2021-12-310001396440Hawk Ridge Systems, LLC, Secured Debt 12022-01-012022-12-310001396440Hawk Ridge Systems, LLC, Secured Debt 12021-12-310001396440Hawk Ridge Systems, LLC, Secured Debt 22022-01-012022-12-310001396440Hawk Ridge Systems, LLC, Secured Debt 22021-12-310001396440Hawk Ridge Systems, LLC, Preferred Member Units 12022-01-012022-12-310001396440Hawk Ridge Systems, LLC, Preferred Member Units 12021-12-310001396440Hawk Ridge Systems, LLC, Preferred Member Units 22022-01-012022-12-310001396440Hawk Ridge Systems, LLC, Preferred Member Units 22021-12-310001396440Houston Plating and Coatings, LLC, Unsecured Convertible Debt2022-01-012022-12-310001396440Houston Plating and Coatings, LLC, Unsecured Convertible Debt2021-12-310001396440Houston Plating and Coatings, LLC, Member Units2022-01-012022-12-310001396440Houston Plating and Coatings, LLC, Member Units2021-12-310001396440HPEP 3, L.P., LP Interests (HPEP 3, L.P.)2022-01-012022-12-310001396440HPEP 3, L.P., LP Interests (HPEP 3, L.P.)2021-12-310001396440HPEP 3, L.P., LP Interests (HPEP 4, L.P.)2022-01-012022-12-310001396440HPEP 3, L.P., LP Interests (HPEP 4, L.P.)2021-12-310001396440HPEP 3, L.P., LP Interests (423 COR, LP)2022-01-012022-12-310001396440HPEP 3, L.P., LP Interests (423 COR, LP)2021-12-310001396440HPEP 3, L.P., LP Interests (423 COR, LP)2022-12-310001396440I-45 SLF LLC, Member Units (Fully diluted 20.0%; 21.75% profits interest)2022-01-012022-12-310001396440I-45 SLF LLC, Member Units (Fully diluted 20.0%; 21.75% profits interest)2021-12-310001396440Iron-Main Investments, LLC, Secured Debt 12022-01-012022-12-310001396440Iron-Main Investments, LLC, Secured Debt 12021-12-310001396440Iron-Main Investments, LLC, Secured Debt 22022-01-012022-12-310001396440Iron-Main Investments, LLC, Secured Debt 22021-12-310001396440Iron-Main Investments, LLC, Secured Debt 32022-01-012022-12-310001396440Iron-Main Investments, LLC, Secured Debt 32021-12-310001396440Iron-Main Investments, LLC, Secured Debt 42022-01-012022-12-310001396440Iron-Main Investments, LLC, Secured Debt 42021-12-310001396440Iron-Main Investments, LLC, Common Stock2022-01-012022-12-310001396440Iron-Main Investments, LLC, Common Stock2021-12-310001396440L.F. Manufacturing Holdings, LLC, Preferred Member Units (non-voting)2022-12-310001396440L.F. Manufacturing Holdings, LLC, Preferred Member Units (non-voting)2022-01-012022-12-310001396440L.F. Manufacturing Holdings, LLC, Preferred Member Units (non-voting)2021-12-310001396440L.F. Manufacturing Holdings, LLC, Member Units2022-01-012022-12-310001396440L.F. Manufacturing Holdings, LLC, Member Units2021-12-310001396440L.F. Manufacturing Holdings, LLC, Member Units2022-12-310001396440OnAsset Intelligence, Inc., Secured Debt 1.12022-01-012022-12-310001396440OnAsset Intelligence, Inc., Secured Debt 1.12021-12-310001396440OnAsset Intelligence, Inc., Secured Debt 2.12022-01-012022-12-310001396440OnAsset Intelligence, Inc., Secured Debt 2.12021-12-310001396440OnAsset Intelligence, Inc., Secured Debt 3.12022-01-012022-12-310001396440OnAsset Intelligence, Inc., Secured Debt 3.12021-12-310001396440OnAsset Intelligence, Inc., Secured Debt 4.12022-01-012022-12-310001396440OnAsset Intelligence, Inc., Secured Debt 4.12021-12-310001396440OnAsset Intelligence, Inc., Unsecured Debt2022-01-012022-12-310001396440OnAsset Intelligence, Inc., Unsecured Debt2021-12-310001396440OnAsset Intelligence, Inc., Preferred Stock2022-01-012022-12-310001396440OnAsset Intelligence, Inc., Preferred Stock2021-12-310001396440OnAsset Intelligence, Inc., Common Stock2022-01-012022-12-310001396440OnAsset Intelligence, Inc., Common Stock2021-12-310001396440OnAsset Intelligence, Inc., Warrants2022-01-012022-12-310001396440OnAsset Intelligence, Inc., Warrants2021-12-310001396440Oneliance, LLC, Secured Debt 12022-01-012022-12-310001396440Oneliance, LLC, Secured Debt 12021-12-310001396440Oneliance, LLC, Secured Debt 22022-01-012022-12-310001396440Oneliance, LLC, Secured Debt 22021-12-310001396440Oneliance, LLC, Preferred Stock2022-01-012022-12-310001396440Oneliance, LLC, Preferred Stock2021-12-310001396440Quality Lease Service, LCC, Secured Debt2022-12-310001396440Quality Lease Service, LCC, Secured Debt2022-01-012022-12-310001396440Quality Lease Service, LCC, Secured Debt2021-12-310001396440Quality Lease Service, LCC, Preferred Member Units2022-01-012022-12-310001396440Quality Lease Service, LCC, Preferred Member Units2021-12-310001396440Quality Lease Service, LCC, Preferred Member Units2022-12-310001396440SI East, LLC, Secured Debt 12022-01-012022-12-310001396440SI East, LLC, Secured Debt 12021-12-310001396440SI East, LLC, Secured Debt 2.22022-12-310001396440SI East, LLC, Secured Debt 2.22022-01-012022-12-310001396440SI East, LLC, Secured Debt 2.22021-12-310001396440SI East, LLC, Preferred Member Units2022-01-012022-12-310001396440SI East, LLC, Preferred Member Units2021-12-310001396440Slick Innovations, LLC, Secured Debt2022-01-012022-12-310001396440Slick Innovations, LLC, Secured Debt2021-12-310001396440Slick Innovations, LLC, Common Stock2022-01-012022-12-310001396440Slick Innovations, LLC, Common Stock2021-12-310001396440Slick Innovations, LLC, Warrants2022-01-012022-12-310001396440Slick Innovations, LLC, Warrants2021-12-310001396440Slick Innovations, LLC, Warrants2022-12-310001396440Sonic Systems International, LLC, Secured Debt2022-01-012022-12-310001396440Sonic Systems International, LLC, Secured Debt2021-12-310001396440Sonic Systems International, LLC, Common Stock2022-01-012022-12-310001396440Sonic Systems International, LLC, Common Stock2021-12-310001396440Student Resource Center, LLC, Secured Debt 12022-12-310001396440Student Resource Center, LLC, Secured Debt 12022-01-012022-12-310001396440Student Resource Center, LLC, Secured Debt 12021-12-310001396440Student Resource Center, LLC, Secured Debt 22022-01-012022-12-310001396440Student Resource Center, LLC, Secured Debt 22021-12-310001396440Student Resource Center, LLC, Secured Debt 22022-12-310001396440Student Resource Center, LLC, Preferred Equity2022-01-012022-12-310001396440Student Resource Center, LLC, Preferred Equity2021-12-310001396440Superior Rigging & Erecting Co., Secured Debt2022-01-012022-12-310001396440Superior Rigging & Erecting Co., Secured Debt2021-12-310001396440Superior Rigging & Erecting Co., Preferred Member Units2022-01-012022-12-310001396440Superior Rigging & Erecting Co., Preferred Member Units2021-12-310001396440The Affiliati Network, LLC, Secured Debt 12022-01-012022-12-310001396440The Affiliati Network, LLC, Secured Debt 12021-12-310001396440The Affiliati Network, LLC, Secured Debt 22022-01-012022-12-310001396440The Affiliati Network, LLC, Secured Debt 22021-12-310001396440The Affiliati Network, LLC, Preferred Stock2022-01-012022-12-310001396440The Affiliati Network, LLC, Preferred Stock2021-12-310001396440UnionRock Energy Fund II, LP, LP Interests2022-01-012022-12-310001396440UnionRock Energy Fund II, LP, LP Interests2021-12-310001396440UniTek Global Services, Inc., Secured Debt 12022-01-012022-12-310001396440UniTek Global Services, Inc., Secured Debt 12021-12-310001396440UniTek Global Services, Inc., Secured Debt 22022-01-012022-12-310001396440UniTek Global Services, Inc., Secured Debt 22021-12-310001396440UniTek Global Services, Inc., Secured Convertible Debt2022-01-012022-12-310001396440UniTek Global Services, Inc., Secured Convertible Debt2021-12-310001396440UniTek Global Services, Inc., Preferred Stock 12022-01-012022-12-310001396440UniTek Global Services, Inc., Preferred Stock 12021-12-310001396440UniTek Global Services, Inc., Preferred Stock 22022-01-012022-12-310001396440UniTek Global Services, Inc., Preferred Stock 22021-12-310001396440UniTek Global Services, Inc., Preferred Stock 32022-01-012022-12-310001396440UniTek Global Services, Inc., Preferred Stock 32021-12-310001396440UniTek Global Services, Inc., Preferred Stock 42022-01-012022-12-310001396440UniTek Global Services, Inc., Preferred Stock 42021-12-310001396440UniTek Global Services, Inc., Common Stock2022-01-012022-12-310001396440UniTek Global Services, Inc., Common Stock2021-12-310001396440Universal Wellhead Services Holdings, LLC, Preferred Member Units2022-01-012022-12-310001396440Universal Wellhead Services Holdings, LLC, Preferred Member Units2021-12-310001396440Universal Wellhead Services Holdings, LLC, Member Units2022-01-012022-12-310001396440Universal Wellhead Services Holdings, LLC, Member Units2021-12-310001396440Volusion, LLC, Secured Debt2022-01-012022-12-310001396440Volusion, LLC, Secured Debt2021-12-310001396440Volusion, LLC, Unsecured Convertible Debt2022-01-012022-12-310001396440Volusion, LLC, Unsecured Convertible Debt2021-12-310001396440Volusion, LLC, Preferred Member Units2022-01-012022-12-310001396440Volusion, LLC, Preferred Member Units2021-12-310001396440Volusion, LLC, Warrants2022-01-012022-12-310001396440Volusion, LLC, Warrants2021-12-310001396440World Micro Holdings, LLC, Secured Debt2022-01-012022-12-310001396440World Micro Holdings, LLC, Secured Debt2021-12-310001396440World Micro Holdings, LLC, Preferred Equity2022-01-012022-12-310001396440World Micro Holdings, LLC, Preferred Equity2021-12-310001396440Other, Affiliate Investments2022-01-012022-12-310001396440Other, Affiliate Investments2021-12-310001396440Amounts related to investments transferred to or from other 1940 Act classification during the period, Affiliate Investments.12022-01-012022-12-310001396440Amounts related to investments transferred to or from other 1940 Act classification during the period, Affiliate Investments.12021-12-310001396440Amounts 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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-K
(Mark One)
xANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2023
OR
oTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from:        to        
Commission File Number: 001-33723
Main Street Capital Corporation
(Exact name of registrant as specified in its charter)
Maryland
41-2230745
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
1300 Post Oak Boulevard, 8th Floor
Houston, TX
77056
(Address of principal executive offices)
(Zip Code)
(713) 350-6000
(Registrant’s telephone number including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol
Name of Each Exchange on Which
Registered
Common Stock, par value $0.01 per shareMAINNew York Stock Exchange
Securities registered pursuant to Section 12(g) of the Act:
None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes x No o
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes o No x
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
x
Accelerated filer
o
Non-accelerated filer
o
Smaller reporting company
o
Emerging growth company
o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. x
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. o
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x
The aggregate market value of the registrant’s common stock held by non-affiliates of the registrant as of June 30, 2023, was $3,111.8 million based upon the last sale price for the registrant’s common stock on that date.
The number of shares outstanding of the issuer’s common stock as of February 21, 2024 was 84,980,145.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the registrants’ definitive Proxy Statement for its 2024 Annual Meeting of Stockholders, to be filed with the Securities and Exchange Commission, are incorporated by reference in this Annual Report on Form 10-K in response to Part III.

Table of contents
TABLE OF CONTENTS
Page
PART I
Item 1.
2
Item 1A.
22
Item 1B.
45
Item 1C.
45
Item 2.
46
Item 3.
46
Item 4.
46
PART II
Item 5.
47
Item 6.
50
Item 7.
51
Item 7A.
66
Item 8.
68
Item 9.
211
Item 9A.
211
Item 9B.
211
Item 9C.
213
PART III
Item 10.
213
Item 11.
213
Item 12.
214
Item 13.
214
Item 14.
214
PART IV
Item 15.
215
Signatures
219

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CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS
This Annual Report on Form 10-K contains forward-looking statements regarding the plans and objectives of management for future operations and which relate to future events or our future performance or financial condition. Any such forward-looking statements may involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by any forward-looking statements. Forward-looking statements, which involve assumptions and describe our future plans, strategies and expectations, are generally identifiable by use of the words “may,” “will,” “should,” “expect,” “anticipate,” “estimate,” “believe,” “intend” or “project” or the negative of these words or other variations on these words or comparable terminology. These forward-looking statements are based on assumptions that may be incorrect, and we cannot assure you that the projections included in these forward-looking statements will come to pass. Our actual results could differ materially from those expressed or implied by the forward-looking statements as a result of various factors, including, without limitation, the factors discussed in Item 1A entitled “Risk Factors” in this Annual Report on Form 10-K and elsewhere in this Annual Report on Form 10-K and in other filings we may make with the Securities and Exchange Commission (“SEC”) from time to time. Other factors that could cause actual results to differ materially include changes in the economy and future changes in laws or regulations and conditions in our operating areas.
We have based the forward-looking statements included in this Annual Report on Form 10-K on information available to us on the date of this Annual Report on Form 10-K, and we assume no obligation to update any such forward-looking statements, unless we are required to do so by applicable law. However, you are advised to refer to any additional disclosures that we may make directly to you or through reports that we in the future may file with the SEC, including subsequent annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.
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PART I
Item 1. Business
ORGANIZATION
Main Street Capital Corporation (“MSCC” or, together with its consolidated subsidiaries, “Main Street” or the “Company”) is a principal investment firm primarily focused on providing customized debt and equity financing to lower middle market (“LMM”) companies and debt capital to middle market (“Middle Market”) companies. Main Street’s portfolio investments are typically made to support management buyouts, recapitalizations, growth financings, refinancings and acquisitions of companies that operate in a variety of industry sectors. Main Street seeks to partner with entrepreneurs, business owners and management teams and generally provides “one-stop” financing alternatives within its LMM investment strategy. Main Street invests primarily in secured debt investments, equity investments, warrants and other securities of LMM companies based in the United States and in secured debt investments of Middle Market companies generally headquartered in the United States.
MSCC was formed in March 2007 to operate as an internally managed business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). Because MSCC is internally managed, all of the executive officers and other employees are employed by MSCC. Therefore, MSCC does not pay any external investment advisory fees, but instead directly incurs the operating costs associated with employing investment and portfolio management professionals.
MSCC wholly owns several investment funds, including Main Street Mezzanine Fund, LP (“MSMF”) and Main Street Capital III, LP (“MSC III” and, together with MSMF, the “Funds”), and each of their general partners. The Funds are each licensed as a Small Business Investment Company (“SBIC”) by the United States Small Business Administration (“SBA”).
MSC Adviser I, LLC (the “External Investment Manager”) was formed in November 2013 as a wholly-owned subsidiary of Main Street to provide investment management and other services to parties other than Main Street (“External Parties”) and receives fee income for such services. MSCC has been granted no-action relief by the Securities and Exchange Commission (“SEC”) to allow the External Investment Manager to register as a registered investment adviser under the Investment Advisers Act of 1940, as amended. Since the External Investment Manager conducts all of its investment management activities for External Parties, it is accounted for as a portfolio investment of Main Street and is not included as a consolidated subsidiary in Main Street’s consolidated financial statements.
MSCC has elected to be treated for U.S. federal income tax purposes as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). As a result, MSCC generally does not pay corporate-level U.S. federal income taxes on any net ordinary taxable income or capital gains that it distributes to its stockholders.
MSCC has certain direct and indirect wholly-owned subsidiaries that have elected to be taxable entities (the “Taxable Subsidiaries”). The primary purpose of the Taxable Subsidiaries is to permit MSCC to hold equity investments in portfolio companies which are “pass-through” entities for tax purposes. MSCC also has certain direct and indirect wholly-owned subsidiaries formed for financing purposes (the “Structured Subsidiaries”).
Unless otherwise noted or the context otherwise indicates, the terms “we,” “us,” “our,” the “Company” and “Main Street” refer to MSCC and its consolidated subsidiaries, which include the Funds, the Taxable Subsidiaries and the Structured Subsidiaries.
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The following diagram depicts our organizational structure:
Main Street Capital Corporation (“MSCC”)
100%100%100%
Main Street Mezzanine Management, LLC Main Street Capital III GP, LLCOther Holding Companies*
99.6%0.4%1%99%100%
Main Street Mezzanine Fund, LP (“MSMF”)Main Street Capital III, LP (“MSC III”)MSC Adviser I, LLC (“External Investment Manager”)**
    
______________________
*    Other Holding Companies includes the Taxable Subsidiaries, the Structured Subsidiaries and other entities formed for operational purposes. Each of these companies is directly or indirectly wholly-owned by MSCC.
**    The External Investment Manager is accounted for as a portfolio investment at fair value, as opposed to a consolidated subsidiary, and is indirectly wholly-owned by MSCC.
CORPORATE INFORMATION
Our principal executive offices are located at 1300 Post Oak Boulevard, 8th Floor, Houston, Texas 77056. We maintain a website on the Internet at www.mainstcapital.com. We make available free of charge on our website our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and all amendments to those reports as soon as reasonably practicable after such material is electronically filed with or furnished to the SEC. Information contained on our website is not incorporated by reference into this Annual Report on Form 10-K, and you should not consider that information to be part of this Annual Report on Form 10-K. Our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and all amendments to those reports and other public filings are also available free of charge on the EDGAR Database on the SEC’s website at www.sec.gov.
OVERVIEW OF OUR BUSINESS
Our principal investment objective is to maximize our portfolio’s total return by generating current income from our debt investments and current income and capital appreciation from our equity and equity-related investments, including warrants, convertible securities and other rights to acquire equity securities in a portfolio company. We seek to achieve our investment objective through our LMM, Private Loan (as defined below) and Middle Market investment strategies. Our LMM investment strategy involves investments in companies that generally have annual revenues between $10 million and $150 million and our LMM portfolio investments generally range in size from $5 million to $100 million. Our private loan (“Private Loan”) investment strategy involves investments in companies that are generally consistent with the size of the companies in our LMM and Middle Market investment strategies, and our Private Loan investments generally range in size from $10 million to $75 million. Our Middle Market investment strategy involves investments in companies that are generally larger in size than our LMM companies, with annual revenues typically between $150 million and $1.5 billion, and our Middle Market investments generally range in size from $3 million to $25 million.
We seek to fill the financing gap for LMM businesses, which, historically, have had limited access to financing from commercial banks and other traditional sources. The underserved nature of the LMM creates the opportunity for us to meet the financing needs of LMM companies while also negotiating favorable transaction terms and equity participation. Our ability to invest across a company’s capital structure, from secured loans to equity securities, allows us to offer portfolio companies a comprehensive suite of financing options, or a “one-stop” financing solution. Providing customized,
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“one-stop” financing solutions is important to LMM portfolio companies. We generally seek to partner directly with entrepreneurs, management teams and business owners in making our investments. Our LMM portfolio debt investments are generally secured by a first lien on the assets of the portfolio company and typically have a term of between five and seven years from the original investment date.
Private Loan investments primarily consist of debt securities that have primarily been originated directly by us or, to a lesser extent, through our strategic relationships with other investment funds on a collaborative basis through investments that are often referred to in the debt markets as “club deals” because of the small lender group size. Our Private Loan investments are typically made to support a company owned by or in the process of being acquired by a private equity sponsor. Private Loan investments are typically similar in size, structure, terms and conditions to investments we hold in our LMM portfolio and Middle Market portfolio. Our Private Loan portfolio debt investments are generally secured by a first priority lien on the assets of the portfolio company and typically have a term of between three and seven years from the original investment date. We may also co-invest with the private equity sponsors in the equity securities of our Private Loan portfolio companies.
Our Middle Market portfolio investments primarily consist of direct investments in or secondary purchases of debt securities acquired through a syndicated process in privately held companies based in the United States that are generally larger in size than the companies included in our LMM portfolio. Our Middle Market portfolio debt investments are generally secured by a first priority lien on the assets of the portfolio company and typically have an expected duration of between three and seven years from the original investment date.
Our other portfolio (“Other Portfolio”) investments primarily consist of investments that are not consistent with the typical profiles for our LMM, Private Loan or Middle Market portfolio investments, including investments which may be managed by third parties. In our Other Portfolio, we may incur indirect fees and expenses in connection with investments managed by third parties, such as investments in other investment companies or private funds.
Subject to changes in our cash and overall liquidity, our Investment Portfolio (as defined below) may also include short-term portfolio investments that are atypical of our LMM, Private Loan and Middle Market portfolio investments in that they are intended to be a short-term deployment of capital. These assets are typically expected to be liquidated in one year or less and are not expected to be a significant portion of the overall Investment Portfolio. The “Investment Portfolio,” as used herein, refers to all of our investments in LMM companies (including both our LMM and Private Loan portfolio investments) and investments in Middle Market companies (including both our Private Loan and Middle Market portfolio investments), Other Portfolio investments, short-term portfolio investments and our investment in the External Investment Manager.
Our external asset management business is conducted through the External Investment Manager. The External Investment Manager earns management fees based on the assets of the funds under management and may earn incentive fees, or a carried interest, based on the performance of the funds managed.
Our portfolio investments are generally made through MSCC, the Taxable Subsidiaries, the Funds and the Structured Subsidiaries. MSCC, the Taxable Subsidiaries, the Funds and the Structured Subsidiaries share the same investment strategies and criteria, although they are subject to different regulatory regimes (see Regulation). An investor’s return in MSCC will depend, in part, on the Taxable Subsidiaries’, the Funds’ and the Structured Subsidiaries’ investment returns as they are wholly-owned subsidiaries of MSCC.
The level of new portfolio investment activity will fluctuate from period to period based upon our view of the current economic fundamentals, our ability to identify new investment opportunities that meet our investment criteria, and our ability to consummate the identified opportunities. The level of new investment activity, and associated interest and fee income, will directly impact future investment income. In addition, the level of dividends paid by portfolio companies and the portion of our portfolio debt investments on non-accrual status will directly impact future investment income. While we intend to grow our portfolio and our investment income over the long term, our growth and our operating results may be more limited during depressed economic periods. However, we intend to appropriately manage our cost structure and liquidity position based on applicable economic conditions and our investment outlook. The level of realized gains or losses and unrealized appreciation or depreciation on our investments will also fluctuate depending upon portfolio activity, economic conditions and the performance of our individual portfolio companies. The changes in realized gains and losses and unrealized appreciation or depreciation could have a material impact on our operating results.
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Because we are internally managed, we do not pay any external investment advisory fees, but instead directly incur the operating costs associated with employing investment and portfolio management professionals. We believe that our internally managed structure provides us with a better alignment of interests between our management team and our employees and our shareholders and a beneficial operating expense structure when compared to other publicly traded and privately held investment firms which are externally managed, and our internally managed structure allows us the opportunity to leverage our non-interest operating expenses as we grow our Investment Portfolio and our External Investment Manager’s asset management business (as defined below). For the years ended December 31, 2023 and 2022, the ratio of our total operating expenses, excluding interest expense, as a percentage of our quarterly average total assets was 1.3% and 1.4%, respectively. The ratio of our total operating expenses, including interest expense, as a percentage of our quarterly average total assets was 3.7% and 3.3%, respectively, for the years ended December 31, 2023 and 2022. Our ratio of expenses as a percentage of our average net asset value is described in greater detail in Note F - Financial Highlights to the consolidated financial statements included in Item 8. Consolidated Financial Statements and Supplementary Data of this Annual Report on Form 10-K.
The External Investment Manager serves as the investment adviser and administrator to MSC Income Fund, Inc. (“MSC Income”) pursuant to an Investment Advisory and Administrative Services Agreement entered into in October 2020 between the External Investment Manager and MSC Income (the “Advisory Agreement”). Under the Advisory Agreement, the External Investment Manager earns a 1.75% annual base management fee on MSC Income’s average total assets, an incentive fee equal to 20% of pre-investment fee net investment income above a specified investment return hurdle rate and a 20% incentive fee on cumulative net realized capital gains in exchange for providing advisory services to MSC Income.
Additionally, the External Investment Manager has entered into investment management agreements with MS Private Loan Fund I, LP (the “Private Loan Fund”) and MS Private Loan Fund II, LP (the “Private Loan Fund II”), each a private investment fund with a strategy to co-invest with Main Street in Private Loan portfolio investments, pursuant to which the External Investment Manager provides investment advisory and management services to each fund in exchange for an asset-based fee and certain incentive fees. The External Investment Manager may also advise other clients, including funds and separately managed accounts, pursuant to advisory and services agreements with such clients in exchange for asset-based and incentive fees.
The External Investment Manager earns management fees based on the assets of the funds and accounts under management and may earn incentive fees, or a carried interest, based on the performance of the funds and accounts managed. The total contribution of the External Investment Manager to our net investment income consists of the combination of the expenses allocated to the External Investment Manager and the dividend income earned from the External Investment Manager. For the years ended December 31, 2023, 2022 and 2021, the total contribution of the External Investment Manager to our net investment income was $33.4 million, $22.3 million and $16.5 million, respectively. For the years ended December 31, 2023, 2022 and 2021, the External Investment Manager earned $22.4 million, $21.8 million and $17.7 million in base management fees, respectively, $13.4 million, $2.5 million and $0.6 million in incentive fees, respectively, and $0.6 million, $0.6 million and $0 of administrative service fee income, respectively.
We have entered into an agreement with the External Investment Manager to share employees in connection with its asset management business generally, and specifically for its relationship with MSC Income and its other clients. Through this agreement, we share employees with the External Investment Manager, including their related infrastructure, business relationships, management expertise and capital raising capabilities, and we allocate the related expenses to the External Investment Manager pursuant to the sharing agreement. Our total expenses for the years ended December 31, 2023, 2022 and 2021 are net of expenses allocated to the External Investment Manager of $22.1 million, $13.0 million and $10.3 million, respectively.
We have received an exemptive order from the SEC permitting co-investments among us, MSC Income and other funds and clients advised by the External Investment Manager in certain negotiated transactions where co-investing would otherwise be prohibited under the 1940 Act. We have made co-investments with, and in the future intend to continue to make co-investments with MSC Income, the Private Loan Fund, the Private Loan Fund II and other funds and clients advised by the External Investment Manager, in accordance with the conditions of the order. The order requires, among other things, that we and the External Investment Manager consider whether each such investment opportunity is appropriate for us and the External Investment Manager’s advised clients, as applicable, and if it is appropriate, to propose an allocation of the investment opportunity between such parties. Because the External Investment Manager may receive performance-based fee compensation from funds and clients advised by the External Investment Manager, this may provide the Company and the External Investment Manager an incentive to allocate opportunities to other participating funds and
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clients instead of us. However, both we and the External Investment Manager have policies and procedures in place to manage this conflict, including oversight by the independent members of our Board of Directors. In addition to the co-investment program described above, we also co-invest in syndicated deals and other transactions where price is the only negotiated point by us and our affiliates.
BUSINESS STRATEGIES
Our principal investment objective is to maximize our portfolio’s total return by generating current income from our debt investments and current income and capital appreciation from our equity and equity-related investments, including warrants, convertible securities and other rights to acquire equity securities in a portfolio company. We have adopted the following business strategies to achieve our investment objective:
•Deliver Customized Financing Solutions in the Lower Middle Market. We offer LMM portfolio companies customized debt and equity financing solutions that are tailored to the facts and circumstances of each situation. We believe our ability to provide a broad range of customized financing solutions to LMM companies sets us apart from other capital providers that focus on providing a limited number of financing solutions. Our ability to invest across a company’s capital structure, from senior secured loans to subordinated debt to equity securities, allows us to offer LMM portfolio companies a comprehensive suite of financing options, or a “one-stop” financing solution.
•Focus on Established Companies. We generally invest in companies with established market positions, experienced management teams and proven revenue streams. We believe that those companies generally possess better risk-adjusted return profiles than newer companies that are building their management teams or are in the early stages of building a revenue base. We also believe that established companies in our targeted size range also generally provide opportunities for capital appreciation.
•Leverage the Skills and Experience of our Investment Team. Our investment team has significant experience in lending to and investing in LMM and Middle Market companies. The members of our investment team have broad investment backgrounds, with prior experience at private investment funds, corporate entities with active acquisition growth strategies and activities, investment banks and other financial services companies. The expertise of our investment team in analyzing, valuing, structuring, negotiating and closing transactions should provide us with competitive advantages by allowing us to consider customized financing solutions and non-traditional or complex structures for our portfolio companies. Also, the reputation of our investment team has and should continue to enable us to generate additional revenue in the form of management and incentive fees in connection with us providing advisory services to other investment funds.
•Invest Across Multiple Companies, Industries, Regions and End Markets. We seek to maintain a portfolio of investments that is appropriately balanced among various companies, industries, geographic regions and end markets. This portfolio balance is intended to mitigate the potential effects of negative economic events for particular companies, regions, industries and end markets.
•Capitalize on Strong Transaction Sourcing Network. Our investment team seeks to leverage its extensive network of referral sources for portfolio company investments. We have developed a reputation in our marketplace as a responsive, efficient and reliable source of financing, which has created a growing stream of proprietary deal flow for us.
•Grow our Asset Management Business. Our asset management business provides us with a recurring source of income, additional income diversification from sources of income directly tied to invested capital and the opportunity for greater stockholder returns through the utilization of our existing investment expertise, strong historical track record and favorable reputation. We seek to grow our asset management business within our internally managed BDC structure in order to increase the value of this unique benefit to our stakeholders. We expect such growth to come organically through the expansion of the investment capital that we manage for third parties and the potential extension of our asset management business to new investment strategies, and potentially through mergers and acquisition activities.
•Benefit from Lower, Fixed, Long-Term Cost of Capital. The SBIC licenses held by the Funds have allowed them to issue SBA-guaranteed debentures. SBA-guaranteed debentures carry long-term fixed interest rates that are generally lower than interest rates on comparable bank loans and other debt. Because lower-cost SBA
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leverage is, and will continue to be, a significant part of our capital base through the Funds, our relative cost of debt capital should be lower than many of our competitors. In addition, the SBIC leverage that we receive through the Funds represents a stable, long-term component of our capital structure with proper matching of duration and cost compared to our LMM portfolio investments. We also maintain investment grade ratings from both Standard & Poor’s Ratings Services and Fitch Ratings, which provide us the opportunity and flexibility to obtain additional, attractive long-term financing options to supplement our capital structure, including the unsecured notes with fixed interest rates we issue.
INVESTMENT CRITERIA
Our investment team has identified the following investment criteria that it believes are important in evaluating prospective portfolio companies. Our investment team uses these criteria in evaluating investment opportunities. However, not all of these criteria have been, or will be, met in connection with each of our investments:
•Proven Management Team with Meaningful Equity Stake. We look for operationally-oriented management with direct industry experience and a successful track record. In addition, we expect the management team of each LMM portfolio company to have meaningful equity ownership in the portfolio company to better align our respective economic interests. We believe management teams with these attributes are more likely to manage the companies in a manner that both protects our debt investment and enhances the value of our equity investment.
•Established Companies with Positive Cash Flow. We seek to invest in established companies with sound historical financial performance. We typically focus on LMM companies that have historically generated earnings before interest, taxes, depreciation and amortization (“EBITDA”) of $3 million to $20 million and commensurate levels of free cash flow. We also pursue investments in debt securities of Middle Market companies that are generally established companies with sound historical financial performance that are generally larger in size than LMM companies. We generally do not invest in start-up companies or companies with speculative business plans.
•Defensible Competitive Advantages/Favorable Industry Position. We primarily focus on companies having competitive advantages in their respective markets and/or operating in industries with barriers to entry, which may help to protect their market position and profitability.
•Exit Alternatives. We exit our debt investments primarily through the repayment of our investment from internally generated cash flow of the portfolio company and/or a refinancing. In addition, we seek to invest in companies whose business models and expected future cash flows may provide alternate methods of repaying our investment, such as through a strategic acquisition by other industry participants or a recapitalization.
INVESTMENT PORTFOLIO
Our LMM portfolio investments primarily consist of secured debt, direct equity investments and equity warrants in privately held, LMM companies based in the United States. Our Private Loan portfolio investments primarily consist of investments in debt securities in companies that are consistent with the size of the companies in our LMM portfolio and Middle Market portfolio. Our Private Loan portfolio investments are primarily originated directly by us, or to a lesser extent, through our strategic relationships with other investment funds on a collaborative basis through investments that are often referred to in the debt markets as “club deals” because of the small lender group size. In both cases, our Private Loan investments are typically made to support a company owned by or in the process of being acquired by a private equity sponsor. Our Middle Market portfolio investments primarily consist of direct investments in or secondary purchases of debt securities acquired through a syndicated process in privately held companies based in the United States that are generally larger in size than the companies included in our LMM portfolio. Our Other Portfolio investments primarily consist of investments that are not consistent with the typical profiles for our LMM, Private Loan and Middle Market portfolio investments, including investments which may be managed by third parties. In our Other Portfolio, we may incur indirect fees and expenses in connection with investments managed by third parties, such as investments in other investment companies or private funds.
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Debt Investments
Historically, we have made LMM debt investments principally in the form of single tranche debt. Single tranche debt financing involves issuing one debt security that blends the risk and return profiles of both first lien secured and subordinated debt. We believe that single tranche debt is more appropriate for many LMM companies given their size in order to reduce structural complexity and potential conflicts among creditors.
Our LMM debt investments generally have a term of five to seven years from the original investment date, with limited required amortization prior to maturity, and provide for monthly or quarterly payment of interest at interest rates generally between 10% and 14% per annum, payable currently in cash. Interest rate terms can include either fixed or floating rate terms. The LMM debt investments with floating interest rates will generally bear interest at the Secured Overnight Financing Rate (“SOFR”) or the Prime rate typically subject to a contractual minimum interest rate (an “interest rate floor”), plus a margin. In addition, certain LMM debt investments may have a form of interest that is not paid currently but is accrued and added to the loan balance and paid at maturity. We refer to this form of interest as payment-in-kind, or PIK, interest. We typically structure our LMM debt investments with the maximum seniority and collateral that we can reasonably obtain while seeking to achieve our total return target. In most cases, our LMM debt investment will be collateralized by a first priority lien on substantially all the assets of the portfolio company. In addition to seeking a senior lien position in the capital structure of our LMM portfolio companies, we seek to limit the downside potential of our LMM debt investments by negotiating covenants that are designed to protect our LMM debt investments while affording our portfolio companies as much flexibility in managing their businesses as is reasonable. Such restrictions may include affirmative and negative covenants, default penalties, lien protection, change of control or change of management provisions, key-man life insurance, guarantees, equity pledges, personal guaranties, where appropriate, and put rights. In addition, we typically seek board representation or observation rights in all of our LMM portfolio companies.
While we will continue to focus our LMM debt investments primarily on single tranche debt investments, we may structure some of our debt investments as mezzanine loans. These mezzanine loans would be primarily junior secured or unsecured, subordinated loans that would provide for relatively high interest rates, payable currently in cash, and would provide us with significant interest income. These mezzanine loans would afford us the additional opportunity for income and gains through PIK interest and equity warrants and other similar equity instruments issued in conjunction with these mezzanine loans. These loans typically would have interest-only payments in the early years, with amortization of principal deferred to the later years of the mezzanine loan term. Typically, these mezzanine loans would have maturities of three to five years. We would generally target interest rates of 12% to 14%, payable currently in cash, for our mezzanine loan investments with higher targeted total returns from equity warrants or PIK interest.
The debt investments in our Private Loan portfolio have rights and protections that are similar to those in our LMM debt investments, which may include affirmative and negative covenants, default penalties, lien protection, change of control provisions, guarantees and equity pledges. Our Private Loan portfolio debt investments are generally secured by a first priority lien and typically have a term of between three and seven years from the original investment date. Our Private Loan debt investments generally have floating interest rates at SOFR or Prime rate typically subject to an interest rate floor, plus a margin.
Our Middle Market portfolio investments primarily consist of direct investments or secondary purchases of debt securities acquired through a syndicated process in privately held companies based in the United States that are generally larger in size than the companies included in our LMM portfolio. Our Middle Market portfolio debt investments are generally secured by a first priority lien on the assets of the portfolio company and typically have a term of between three and seven years from the original investment date. The debt investments in our Middle Market portfolio usually have rights and protections that are similar to those in our LMM and Private Loan debt investments. The Middle Market debt investments generally have floating interest rates at SOFR or Prime rate typically subject to an interest rate floor, plus a margin.
Direct Equity Investments
We also seek to make direct equity investments to align our interests with key management and stockholders of our LMM portfolio companies, and to allow for participation in the appreciation in the equity values of our LMM portfolio companies. We usually make our direct equity investments in connection with debt investments in our LMM portfolio companies. In addition, we may have both equity warrants and direct equity positions in some of our LMM portfolio companies. We seek to maintain fully diluted equity positions in our LMM portfolio companies of 5% to 50%, and may have controlling equity interests in some instances. We have a value orientation toward our direct equity investments and have traditionally been able to purchase our equity investments at reasonable valuations. We will also have, from time to
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time, the opportunity to co-invest with the private equity sponsors in the equity securities of our Private Loan portfolio companies. The equity co-investment aligns our interests with those of the private equity sponsor and provides us with the opportunity to benefit from appreciation in the equity values of our Private Loan portfolio companies.
Warrants
In connection with our LMM debt investments, we occasionally receive equity warrants to establish or increase our equity interest in the portfolio company. Warrants that we receive in connection with a debt investment typically require only a nominal cost to exercise, and thus, as a portfolio company appreciates in value, we may achieve additional investment return from this equity interest. We typically structure the warrants to provide provisions protecting our rights as a minority-interest holder, as well as secured or unsecured put rights, or rights to sell such securities back to the portfolio company, upon the occurrence of specified events. In certain cases, we also may obtain registration rights in connection with these equity interests, which may include demand and “piggyback” registration rights.
INVESTMENT PROCESS
Our management team’s investment committee is responsible for all aspects of our investment processes. The current members of our investment committee are Dwayne L. Hyzak, our Chief Executive Officer, David Magdol, our President and Chief Investment Officer, and Vincent D. Foster, our Senior Advisor and Chairman of the Board.
The investment processes for LMM, Private Loan and Middle Market portfolio investments are outlined below. Our investment strategy involves a “team” approach, whereby potential transactions are screened by several members of our investment team before being presented to the investment committee. Our investment committee meets on an as-needed basis depending on transaction volume. We generally categorize our investment process into seven distinct stages:
Deal Generation/Origination
Deal generation and origination is maximized through long-standing and extensive relationships with industry contacts, brokers, commercial and investment bankers, entrepreneurs, service providers such as lawyers, financial advisors and accountants, and current and former portfolio companies and investors. Our investment team has focused its deal generation and origination efforts on LMM, Private Loan and Middle Market investments, and we have developed a reputation as a knowledgeable, reliable and active source of capital and assistance in these markets.
Screening
During the screening process, if a transaction initially meets our investment criteria, we will perform preliminary due diligence, taking into consideration some or all of the following information:
•a comprehensive financial model based on quantitative analysis of historical financial performance, projections and pro forma adjustments to determine the estimated internal rate of return;
•a brief industry and market analysis;
•direct industry expertise imported from other portfolio companies or investors;
•preliminary qualitative analysis of the management team’s competencies and backgrounds;
•potential investment structures and pricing terms; and
•regulatory compliance.
Upon successful screening of a proposed LMM transaction, the investment team makes a recommendation to our investment committee. If our investment committee concurs with moving forward on the proposed LMM transaction, we typically issue a non-binding term sheet or letter of intent to the company. Upon successful screening of a proposed Private Loan transaction, the investment team makes a recommendation to our investment committee. If our investment committee concurs with moving forward on the proposed Private Loan transaction, we typically issue a non-binding term sheet to the company. For Middle Market portfolio investments, the initial term sheet is typically issued by the borrower, through the syndicating bank, and is screened by the investment team which makes a recommendation to our investment committee.
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Term Sheet
For proposed LMM transactions, the non-binding term sheet or letter of intent will include the key economic terms based upon our analysis performed during the screening process, as well as a proposed timeline and our qualitative expectation for the transaction. While the term sheet or letter of intent for LMM investments is non-binding, we typically receive an expense deposit in order to move the transaction to the due diligence phase. Upon execution of a term sheet or letter of intent, we begin our formal due diligence process.
For proposed Private Loan transactions, the non-binding term sheet will include the key economic terms based upon our analysis performed during the screening process, as well as a proposed timeline and our qualitative expectation for the transaction. Upon execution of a term sheet, we begin our formal due diligence process.
For proposed Middle Market transactions, the initial term sheet will include key economic terms and other conditions proposed by the borrower and its representatives and the proposed timeline for the investment, which are reviewed by our investment team to determine if such terms and conditions are in agreement with our investment objectives.
Due Diligence
Due diligence on a proposed LMM investment is performed by a minimum of three of our investment professionals, whom we refer to collectively as the investment team, and certain external resources, who together conduct due diligence to understand the relationships among the prospective portfolio company’s business plan, operations and financial performance. Our LMM due diligence review includes some or all of the following:
•site visits with management and key personnel;
•detailed review of historical and projected financial statements;
•operational reviews and analysis;
•interviews with customers and suppliers;
•detailed evaluation of company management, including background checks;
•review of material contracts;
•in-depth industry, market and strategy analysis;
•regulatory compliance analysis; and
•review by legal, environmental or other consultants, if applicable.
Due diligence on a proposed Private Loan or Middle Market investment is generally performed on materials and information obtained from certain external resources and assessed internally by a minimum of three of our investment professionals, who work to understand the relationships among the prospective portfolio company’s business plan, operations and financial performance using the accumulated due diligence information. Our typical Private Loan and Middle Market due diligence review includes some or all of the following:
•detailed review of historical and projected financial statements
•site visits or other discussions with management and key personnel;
•in-depth industry, market, operational and strategy analysis;
•regulatory compliance analysis; and
•detailed review of the company’s management team and their capabilities.
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During the due diligence process, significant attention is given to sensitivity analyses and how the company might be expected to perform given downside, base-case and upside scenarios. In certain cases, we may decide not to make an investment based on the results of the diligence process.
Document and Close
Upon completion of a satisfactory due diligence review of a proposed LMM portfolio investment, the investment team presents the findings and a recommendation to our investment committee. The presentation contains information which can include, but is not limited to, the following:
•company history and overview;
•transaction overview, history and rationale, including an analysis of transaction strengths and risks;
•analysis of key customers and suppliers and key contracts;
•a working capital analysis;
•an analysis of the company’s business strategy;
•a management and key equity investor background check and assessment;
•third-party accounting, legal, environmental or other due diligence findings;
•investment structure and expected returns;
•anticipated sources of repayment and potential exit strategies;
•pro forma capitalization and ownership;
•an analysis of historical financial results and key financial ratios;
•sensitivities to management’s financial projections;
•regulatory compliance analysis findings; and
•detailed reconciliations of historical to pro forma results.
Upon completion of a satisfactory due diligence review of a proposed Private Loan or Middle Market portfolio investment, the investment team presents the findings and a recommendation to our investment committee. The presentation contains information which can include, but is not limited to, the following:
•company history and overview;
•transaction overview, history and rationale, including an analysis of transaction strengths and risks;
•overview and history of the private equity sponsor as the company’s equity owner;
•analysis of key customers and suppliers;
•an analysis of the company’s business strategy;
•investment structure and expected returns;
•anticipated sources of repayment and potential exit strategies;
•pro forma capitalization and ownership;
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•regulatory compliance analysis findings; and
•an analysis of historical financial results and key financial ratios.
If any adjustments to the transaction terms or structures are proposed by the investment committee, such changes are made and applicable analyses are updated prior to approval of the transaction. Approval for the transaction must be made by the affirmative vote from a majority of the members of the investment committee, with the committee member managing the transaction, if any, abstaining from the vote. Upon receipt of transaction approval, the investment team will re-confirm regulatory compliance, process and finalize all required legal documents, and fund the investment.
Post-Investment
We continuously monitor the status and progress of the portfolio companies. We generally offer managerial assistance to our portfolio companies, giving them access to our investment experience, direct industry expertise and contacts. The same investment team that was involved in the investment process will continue its involvement in the portfolio company post-investment. This provides for continuity of knowledge and allows the investment team to maintain a strong business relationship with key management of our portfolio companies for post-investment assistance and monitoring purposes.
As part of the monitoring process of LMM portfolio investments, the investment team will analyze monthly and quarterly financial statements versus the previous periods and year, review financial projections, meet and discuss issues or opportunities with management, attend board meetings and review all compliance certificates and covenants. While we maintain limited involvement in the ordinary course operations of our LMM portfolio companies, we maintain a higher level of involvement in non-ordinary course financing or strategic activities and any non-performing scenarios.
As part of the monitoring process of our Private Loan and Middle Market portfolio investments, the investment team will analyze monthly and quarterly financial statements versus the previous periods and year, review financial projections and review all compliance certificates and covenants. Depending upon the nature of our Private Loan portfolio investments, our investment team may also attend board meetings, and meet and discuss issues or opportunities with the portfolio company’s management team or private equity owners, however, due to the larger size and nature of our “lender only” relationship with these Private Loan and Middle Market companies in comparison to our LMM portfolio companies, it is not necessary or practical to have as much direct management interface.
We utilize an internally developed investment rating system to rate the performance of each LMM, Private Loan and Middle Market portfolio company and to monitor our expected level of returns on each of our LMM, Private Loan and Middle Market investments in relation to our expectations for the portfolio company. The investment rating system takes into consideration various factors, including, but not limited to, each investment’s expected level of returns, the collectability of our debt investments and the ability to receive a return of the invested capital in our equity investments, comparisons to competitors and other industry participants, the portfolio company’s future outlook and other factors that are deemed to be significant to the portfolio company.
Exit Strategies/Refinancing
While we generally exit most investments through the refinancing or repayment of our debt and redemption or sale of our equity positions, we typically assist our LMM portfolio companies in developing and planning exit opportunities, including any sale or merger of our portfolio companies. We may also assist in the structure, timing, execution and transition of the exit strategy. The refinancing or repayment of Private Loan investments and Middle Market debt investments typically do not require our assistance due to the additional resources available to these larger Private Loan and Middle Market companies.
DETERMINATION OF NET ASSET VALUE AND INVESTMENT PORTFOLIO VALUATION PROCESS
We determine the net asset value (“NAV”) per share of our common stock on a quarterly basis. The NAV per share is equal to our total assets minus total liabilities divided by the total number of shares of common stock outstanding.
We are required to report our investments at fair value. As a result, the most significant determination inherent in the preparation of our consolidated financial statements is the valuation of our Investment Portfolio and the related amounts of unrealized appreciation and depreciation. We follow the provisions of the Financial Accounting Standards Board
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Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosures (“ASC 820”). ASC 820 defines fair value, establishes a framework for measuring fair value, establishes a fair value hierarchy based on the quality of inputs used to measure fair value and enhances disclosure requirements for fair value measurements. ASC 820 requires us to assume that the portfolio investment is to be sold in the principal market to independent market participants, which may be a hypothetical market. Market participants are defined as buyers and sellers in the principal market that are independent, knowledgeable and willing and able to transact.
We determine in good faith the fair value of our Investment Portfolio pursuant to a valuation policy in accordance with ASC 820 and a valuation process approved by our Board of Directors and in accordance with the 1940 Act. Our valuation policies and processes are intended to provide a consistent basis for determining the fair value of our Investment Portfolio. See Note B.1. — Summary of Significant Accounting Policies — Valuation of the Investment Portfolio included in Item 8. Consolidated Financial Statements and Supplementary Data of this Annual Report on Form 10-K for a detailed discussion of our Investment Portfolio valuation process and procedures.
Due to the inherent uncertainty in the valuation process, our determination of fair value for our Investment Portfolio may differ materially from the values that would have been determined had a ready market for the securities existed. In addition, changes in the market environment, portfolio company performance and other events that may occur over the lives of the investments may cause the gains or losses ultimately realized on these investments to be materially different than the valuations currently assigned. We determine the fair value of each individual investment and record changes in fair value as unrealized appreciation or depreciation.
The 1940 Act requires valuation of a portfolio security at “market value” if market quotations for the security are “readily available.” Portfolio securities for which market quotations are not readily available must be valued at fair value as determined in good faith by the board of directors. Rule 2a-5 under the 1940 Act permits a BDC’s board of directors to designate its executive officers or investment adviser as a valuation designee to determine the fair value for its investment portfolio, subject to the active oversight of the board.
Our Board of Directors has approved policies and procedures pursuant to Rule 2a-5 (the “Valuation Procedures”) and designated a group of our executive officers to serve as the Board’s valuation designee thereunder (the “Valuation Committee”). Pursuant to the Valuation Procedures, we undertake a multi-step process each quarter in connection with determining the fair value of our investments.
The following outlines our valuation process as established under the Valuation Procedures:
•Our quarterly process begins with an initial valuation of each portfolio investment performed by the valuation team consisting of several professionals who apply the appropriate valuation methodology depending on the type of investment.
•Each valuation model is then reviewed by the investment team responsible for monitoring the portfolio investment for accuracy, with any recommended changes reviewed by the valuation team.
•Updated valuation conclusions are then reviewed by and discussed with the Valuation Committee at quarterly valuation meetings. Valuation meetings are generally attended by the Valuation Committee, the valuation team, members of the investment team responsible for each investment and members of the compliance team. Valuation models and valuation conclusions are adjusted as necessary following such meetings.
•A nationally recognized independent financial advisory services firm analyzes and provides observations, recommendations and an assurance certification regarding the determinations of the fair value for the majority of our portfolio companies on a rotational basis.
•After incorporating commentary by the Valuation Committee and review of recommendations provided by the independent financial advisory services firm, valuation results are finalized and approved by the Valuation Committee.
•The Board of Directors oversees the process through its Audit Committee in accordance with Rule 2a-5 pursuant to the Valuation Procedures.
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Determination of fair value involves subjective judgments and estimates. The notes to our consolidated financial statements refer to the uncertainty with respect to the possible effect of such valuations, and any change in such valuations, on our financial results and financial condition.
COMPETITION
We compete for investments with a number of investment funds (including private equity funds, mezzanine funds, BDCs and SBICs), as well as traditional financial services companies such as commercial banks and other sources of financing. Many of the entities that compete with us are larger and have more resources available to them. We believe we are able to be competitive with these entities primarily on the basis of our focus toward the underserved LMM, the experience and contacts of our management team, our responsive and efficient investment analysis and decision-making processes, our comprehensive suite of customized financing solutions and the investment terms we offer.
We believe that some of our competitors make senior secured loans, junior secured loans and subordinated debt investments with interest rates and returns that are comparable to or lower than the rates and returns that we target. Therefore, we do not seek to compete primarily on the interest rates and returns that we offer to potential portfolio companies. For additional information concerning the competitive risks we face, see Item 1A. Risk Factors — Risks Related to Our Business and Structure — We face increasing competition for investment opportunities.
HUMAN CAPITAL
Our employees are vital to our success as a principal investment firm. As a human-capital intensive business, the long-term success of our company depends on our people. We strive to attract, develop and retain our employees by offering unique employment opportunities, superior advancement and promotion opportunities, attractive compensation and benefit structures and a close-knit culture. The departure of our key investment and other personnel could cause our operating results to suffer.
Our LMM business depends heavily on the business owners and management teams of our portfolio companies and their respective employees, contractors and service providers. In our investment process for LMM portfolio investments, the analysis of these individuals is a critical part of our overall investment underwriting process and as a result we carefully review the qualifications and experience of the portfolio company’s business owners and management team and their employment practices. We strive to partner with business owners and management teams whose business practices reflect our core values.
We strive to recruit talented and driven individuals who share our values. We have competitive programs dedicated to attracting and retaining new talent and enhancing the skills of our employees. Our recruiting efforts utilize strong relationships with a variety of sources from which we recruit. Among other opportunities, we offer selected students investment analyst internships, which are expected to lead to permanent roles for high performing and high potential interns. Through our internship program, individuals who want to become investment analysts have the opportunity to see the full investment process from origination to closing, as well as post-closing portfolio management activities. We routinely recruit from within, promoting current employees who have shown the technical ability, attitude, interest and the initiative to take on greater responsibility.
We have designed a compensation structure, including an array of benefit plans and programs, that we believe is attractive to our current and prospective employees. We also offer formal and informal training and mentorship programs that provide employees with access to senior level executives. Through our annual goal setting and performance review processes, our employees are annually evaluated by supervisors and our senior management team to ensure employees continue to develop and advance as expected. We are committed to having a diverse workforce, and an inclusive work environment is a natural extension of our culture. We also maintain a Women’s Initiative that provides employees with opportunities to network internally at Main Street and externally with other women in the financial services industry. Our employees have access to several programs designed to enable our employees to balance work, family and family-related situations including flexible working arrangements and parental leave for birth and adoption placement. We are committed to creating and maintaining an atmosphere where all employees feel welcomed, valued, respected and heard so that they feel motivated and encouraged to contribute fully to their careers, our company and our communities.
We seek to maintain a close-knit culture, which we believe is an important factor in employee retention, which is reinforced by our Community Building Committee. Our Community Building Committee, which is composed of a substantial cross section of employees across our organization, develops programs and initiatives that promote an open and
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inclusive atmosphere and encourage employee outreach with our community, in each case based upon feedback received from our employees. Initiatives generated by our Community Building Committee include employee well-being and engagement activities along with volunteer and donation opportunities with local charitable organizations. We encourage you to visit our website for more information about charitable organizations receiving our ongoing support. Nothing on our website, however, shall be deemed incorporated by reference into this Annual Report on Form 10-K.
We monitor and evaluate various turnover and attrition metrics throughout our management team. Our annualized voluntary turnover is relatively low, a record which we attribute to our strong corporate culture, commitment to career development and attractive compensation and benefit programs. For additional information concerning the competitive risks we face, see Item 1A. Risk Factors — Risks Related to Our Business and Structure — Our success depends on attracting and retaining qualified personnel in a competitive environment.
As of December 31, 2023, we had 100 employees, 55 of whom we characterize as investment and portfolio management professionals, and the others include operations professionals and administrative staff. None of our employees are represented by a collective bargaining agreement. As necessary, we will hire additional investment professionals and administrative personnel. All but two of our employees are located in our Houston, Texas office.
REGULATION
Regulation as a Business Development Company
We have elected to be regulated as a BDC under the 1940 Act. The 1940 Act contains prohibitions and restrictions relating to transactions between BDCs and their affiliates, principal underwriters and affiliates of those affiliates or underwriters. The 1940 Act requires that a majority of the members of the board of directors of a BDC be persons other than “interested persons,” as that term is defined in the 1940 Act. In addition, the 1940 Act provides that we may not change the nature of our business so as to cease to be, or to withdraw our election as, a BDC unless approved by a majority of our outstanding voting securities.
The 1940 Act defines “a majority of the outstanding voting securities” as the lesser of (i) 67% or more of the voting securities present at a meeting if the holders of more than 50% of our outstanding voting securities are present or represented by proxy or (ii) more than 50% of our outstanding voting securities.
Qualifying Assets
Under the 1940 Act, a BDC may not acquire any asset other than assets of the type listed in Section 55(a) of the 1940 Act, which are referred to as qualifying assets, unless, at the time the acquisition is made, qualifying assets represent at least 70% of the company’s total assets. The principal categories of qualifying assets relevant to our business are any of the following:
(1)Securities purchased in transactions not involving any public offering from the issuer of such securities, which issuer (subject to certain limited exceptions) is an eligible portfolio company (as defined below), or from any person who is, or has been during the preceding 13 months, an affiliated person of an eligible portfolio company, or from any other person, subject to such rules as may be prescribed by the SEC.
(2)Securities of any eligible portfolio company that we control.
(3)Securities purchased in a private transaction from a U.S. issuer that is not an investment company or from an affiliated person of the issuer, or in transactions incident thereto, if the issuer is in bankruptcy and subject to reorganization or if the issuer, immediately prior to the purchase of its securities was unable to meet its obligations as they came due without material assistance other than conventional lending or financing arrangements.
(4)Securities of an eligible portfolio company purchased from any person in a private transaction if there is no ready market for such securities and we already own 60% of the outstanding equity of the eligible portfolio company.
(5)Securities received in exchange for or distributed on or with respect to securities described in (1) through (4) above, or pursuant to the exercise of warrants or rights relating to such securities.
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(6)Cash, cash equivalents, U.S. government securities or high-quality debt securities maturing in one year or less from the time of investment.
In addition, a BDC must have been organized and have its principal place of business in the United States and must be operated for the purpose of making investments in the types of securities described in (1), (2) or (3) above.
An eligible portfolio company is defined in the 1940 Act as any issuer which:
(a)is organized under the laws of, and has its principal place of business in, the United States;
(b)is not an investment company (other than a small business investment company wholly-owned by the BDC) or a company that would be an investment company but for certain exclusions under the 1940 Act; and
(c)satisfies any of the following:
(i)does not have any class of securities that is traded on a national securities exchange or has a class of securities listed on a national securities exchange but has an aggregate market value of outstanding voting and non-voting common equity of less than $250 million;
(ii)is controlled by a BDC or a group of companies including a BDC and the BDC has an affiliated person who is a director of the eligible portfolio company; or
(iii)is a small and solvent company having total assets of not more than $4 million and capital and surplus of not less than $2 million.
Managerial Assistance to Portfolio Companies
As noted above, a BDC must be operated for the purpose of making investments in the type of securities described in (1), (2) or (3) above under the heading entitled “— Qualifying Assets.” In addition, BDCs must generally offer to make available to such issuer of the securities (other than small and solvent companies described above) significant managerial assistance. Making available managerial assistance means, among other things, any arrangement whereby the BDC, through its directors, officers or employees, offers to provide, and, if accepted, does so provide, significant guidance and counsel concerning the management, operations or business objectives and policies of a portfolio company. However, if a BDC purchases securities in conjunction with one or more other persons acting together, one of the other persons in the group may make available such significant managerial assistance on behalf of all investors in the group.
Temporary Investments
Pending investment in “qualifying assets,” as described above, our investments may consist of cash, cash equivalents, U.S. government securities and high-quality debt securities maturing in one year or less from time of investment therein, so that 70% of our assets are qualifying assets.
Senior Securities
Prior to 2018 legislation that modified the asset coverage requirements of the 1940 Act, we were permitted, as a BDC, to issue senior securities only in amounts such that our asset coverage, as defined in the 1940 Act, equals at least 200% of all debt and/or senior stock immediately after each such issuance. However, 2018 legislation modified the 1940 Act by allowing a BDC to increase the maximum amount of leverage it may incur from an asset coverage ratio, or BDC asset coverage ratio, of 200% to an asset coverage ratio of 150%, if certain requirements are met. In May 2022, our stockholders approved the application of the reduced BDC asset coverage ratio. As a result, the BDC asset coverage ratio applicable to us decreased from 200% to 150% effective May 3, 2022.
We have received exemptive relief from the SEC to permit us to exclude the SBA-guaranteed debentures of the Funds from our 150% asset coverage test under the 1940 Act. As such, our ratio of total consolidated assets to outstanding indebtedness may be less than 150%. This provides us with increased investment flexibility but also increases our risks related to leverage.
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In addition, while any senior securities remain outstanding (other than senior securities representing indebtedness issued in consideration of a privately arranged loan which is not intended to be publicly distributed), we must generally include provisions in the documents governing new senior securities to prohibit any cash distribution to our stockholders or the repurchase of such securities or shares unless we meet the applicable asset coverage ratios at the time of the distribution or repurchase. We may also borrow amounts up to 5% of the value of our total assets for temporary or emergency purposes without regard to asset coverage with such borrowings not constituting senior securities for purposes of the asset coverage ratio requirements of the 1940 Act. A loan is presumed to be for temporary purposes if it is repaid within sixty days and not extended or renewed. For a discussion of the risks associated with leverage, see Item 1A. Risk Factors — Risks Related to Leverage, including, without limitation, — Because we borrow money, the potential for gain or loss on amounts invested in us is magnified and may increase the risk of investing in us.
Common Stock
We are not generally able to issue and sell our common stock at a price below NAV per share. We may, however, sell our common stock, warrants, options or rights to acquire our common stock, at a price below the current NAV of the common stock if our Board of Directors determines that such sale is in our best interests and that of our stockholders, and our stockholders approve such sale. In any such case, the price at which our securities are to be issued and sold may not be less than a price which, in the determination of our Board of Directors, closely approximates the market value of such securities (less any distributing commission or discount). We did not seek stockholder authorization to sell shares of our common stock below the then current NAV per share of our common stock at our 2023 Annual Meeting of Stockholders, and have not sought such stockholder authorization since 2012, because our common stock price had been trading significantly above the NAV per share of our common stock since 2011. Our stockholders have previously approved a proposal that authorizes us to issue securities to subscribe to, convert to, or purchase shares of our common stock in one or more offerings. We may also make rights offerings to our stockholders at prices per share less than the NAV per share, subject to applicable requirements of the 1940 Act. See Item 1A. Risk Factors — Risks Related to our Securities — Stockholders may incur dilution if we sell shares of our common stock in one or more offerings at prices below the then current NAV per share of our common stock or issue securities to subscribe to, convert to or purchase shares of our common stock.
Code of Ethics
We have adopted a code of ethics pursuant to Rule 17j-1 under the 1940 Act that establishes procedures for personal investments and restricts certain personal securities transactions. Personnel subject to the code may invest in securities for their personal investment accounts, including securities that may be purchased or held by us, so long as such investments are made in accordance with the code’s requirements. The code of ethics is available on the EDGAR Database on the SEC’s website at http://www.sec.gov.
Proxy Voting Policies and Procedures
We vote proxies relating to our portfolio securities in a manner in which we believe is consistent with the best interest of our stockholders. We review on a case-by-case basis each proposal submitted to a stockholder vote to determine its impact on the portfolio securities held by us. Although we generally vote against proposals that we expect would have a negative impact on our portfolio securities, we may vote for such a proposal if there exists compelling long-term reasons to do so.
Our proxy voting decisions are made by the investment team which is responsible for monitoring each of our investments. To ensure that our vote is not the product of a conflict of interest, we require that anyone involved in the decision-making process discloses to our chief compliance officer any potential conflict regarding a proxy vote of which he or she is aware.
Stockholders may obtain information, without charge, regarding how we voted proxies with respect to our portfolio securities by making a written request for proxy voting information to: Chief Compliance Officer, 1300 Post Oak Boulevard, 8th Floor, Houston, Texas 77056.
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Other 1940 Act Regulations
We are also prohibited under the 1940 Act from knowingly participating in certain transactions with our affiliates without the prior approval of our Board of Directors who are not interested persons and, in some cases, prior approval by the SEC.
We are required to provide and maintain a bond issued by a reputable fidelity insurance company to protect us against larceny and embezzlement. Furthermore, as a BDC, we are prohibited from protecting any director or officer against any liability to us or our stockholders arising from willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of such person’s office.
We are required to adopt and implement written policies and procedures reasonably designed to prevent violation of the federal securities laws, review these policies and procedures no less frequently than annually for their adequacy and the effectiveness of their implementation, and to designate a chief compliance officer to be responsible for administering the policies and procedures.
We may be periodically examined by the SEC for compliance with the 1940 Act.
Small Business Investment Company Regulations
Each of the Funds is licensed by the SBA to operate as a SBIC under Section 301(c) of the Small Business Investment Act of 1958. MSMF obtained its SBIC license in 2002 and MSC III obtained its license in 2016.
SBICs are designed to stimulate the flow of private capital to eligible small businesses. Under SBIC regulations, SBICs may make loans to eligible small businesses, invest in the equity securities of such businesses and provide them with consulting and advisory services. Each of the Funds has typically invested in secured debt, acquired warrants and/or made equity investments in qualifying small businesses.
The Funds are subject to regulation and oversight by the SBA, including requirements with respect to reporting financial information, such as the extent of capital impairment if applicable, on a regular basis and annual examinations conducted by the SBA. The SBA, as a creditor, will have a superior claim to the Funds’ assets over our securities holders in the event the Funds are liquidated or the SBA exercises its remedies under the SBA-guaranteed debentures issued by the Funds upon an event of default.
Under present SBIC regulations, eligible small businesses generally include businesses that (together with their affiliates) have a tangible net worth not exceeding $24 million or have average annual net income after U.S. federal income taxes not exceeding $8 million (average net income to be computed without benefit of any carryover loss) for the two most recent fiscal years. In addition, an SBIC must devote 25% of its investment activity to “smaller” enterprises as defined by the SBA. A smaller enterprise generally includes businesses that have a tangible net worth not exceeding $6 million and have average annual net income after U.S. federal income taxes not exceeding $2 million (average net income to be computed without benefit of any net carryover loss) for the two most recent fiscal years. SBIC regulations also provide alternative size standard criteria to determine eligibility for designation as an eligible small business or smaller enterprise, which criteria depend on the primary industry in which the business is engaged and are based on such factors as the number of employees and gross revenue. However, once an SBIC has invested in a company, it generally may continue to make follow-on investments in the company, regardless of the size of the portfolio company at the time of the follow-on investment, up to the time of the portfolio company’s initial public offering.
The SBA prohibits an SBIC from providing funds to small businesses for certain purposes, such as relending and investment outside the United States, to businesses engaged in certain prohibited industries, and to certain “passive” (non-operating) companies. In addition, without prior SBA approval, an SBIC may not invest an amount equal to more than 30% of the SBIC’s regulatory capital, as defined by the SBA, in any one portfolio company and its affiliates.
The SBA places certain limitations on the financing terms of investments by SBICs in portfolio companies (such as limiting the permissible interest rate on debt securities held by an SBIC in a portfolio company). Included in such limitations are SBIC regulations which allow an SBIC to exercise control over a small business for a period of seven years from the date on which the SBIC initially acquires its control position. This control period may be extended for an additional period of time with the SBA’s prior written approval.
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The SBA restricts the ability of an SBIC to lend money to any of its officers, directors and employees or to invest in affiliates thereof. The SBA also prohibits, without prior SBA approval, a “change of control” of an SBIC or transfers that would result in any person (or a group of persons acting in concert) owning 10% or more of a class of equity of a licensed SBIC. A “change of control” is any event which would result in the transfer of the power, direct or indirect, to direct the management and policies of an SBIC, whether through ownership, contractual arrangements or otherwise.
The SBIC licenses allow the Funds to incur leverage by issuing SBA-guaranteed debentures, subject to the issuance of a capital commitment and certain approvals by the SBA and customary procedures. SBA-guaranteed debentures carry long-term fixed rates that are generally lower than rates on comparable bank and other debt. Under applicable regulations, an SBIC may generally have outstanding debentures guaranteed by the SBA in amounts up to twice the amount of the privately raised funds of the SBIC. Debentures guaranteed by the SBA have a maturity of ten years, require semiannual payments of interest, do not require any principal payments prior to maturity, and are not subject to prepayment penalties. As of December 31, 2023, we, through the Funds, had $350.0 million of outstanding SBA-guaranteed debentures, which had an annual weighted-average interest rate of 3.0%.
SBICs must invest idle funds that are not being used to make loans in investments permitted under SBIC regulations in the following limited types of securities: (i) direct obligations of, or obligations guaranteed as to principal and interest by, the United States government, which mature within 15 months from the date of the investment; (ii) repurchase agreements with federally insured institutions with a maturity of seven days or less (and the securities underlying the repurchase obligations must be direct obligations of or guaranteed by the federal government); (iii) certificates of deposit with a maturity of one year or less, issued by a federally insured institution; (iv) a deposit account in a federally insured institution that is subject to a withdrawal restriction of one year or less; (v) a checking account in a federally insured institution; or (vi) a reasonable petty cash fund.
SBICs are periodically examined and audited by the SBA’s staff to determine their compliance with SBIC regulations and are periodically required to file certain financial information and other documents with the SBA.
Neither the SBA nor the U.S. government or any of its agencies or officers has approved any ownership interest to be issued by us or any obligation that we or any of our subsidiaries may incur.
Securities Exchange Act of 1934 and Sarbanes-Oxley Act Compliance
We are subject to the reporting and disclosure requirements of the Securities Exchange Act of 1934 (the “Exchange Act”), including the filing of quarterly, annual and current reports, proxy statements and other required items. In addition, we are subject to the Sarbanes-Oxley Act of 2002, which imposes a wide variety of regulatory requirements on publicly-held companies and their insiders. For example:
•pursuant to Rule 13a-14 of the Exchange Act, our Chief Executive Officer and Chief Financial Officer are required to certify the accuracy of the consolidated financial statements contained in our periodic reports;
•pursuant to Item 307 of Regulation S-K, our periodic reports are required to disclose our conclusions about the effectiveness of our disclosure controls and procedures;
•pursuant to Rule 13a-15 of the Exchange Act, our management is required to prepare a report regarding its assessment of our internal control over financial reporting, and our independent registered public accounting firm separately audits our internal control over financial reporting; and
•pursuant to Item 308 of Regulation S-K and Rule 13a-15 of the Exchange Act, our periodic reports must disclose whether there were significant changes in our internal control over financial reporting or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.
The New York Stock Exchange Corporate Governance Regulations
The New York Stock Exchange (“NYSE”) has adopted corporate governance regulations that listed companies must comply with. We believe we are in compliance with such corporate governance listing standards. We intend to monitor our compliance with all future listing standards and to take all necessary actions to ensure that we stay in compliance.
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Investment Adviser Regulations
The External Investment Manager, which is wholly-owned by us, is subject to regulation under the Investment Advisers Act of 1940, as amended (the “Advisers Act”). The Advisers Act establishes, among other things, recordkeeping and reporting requirements, disclosure requirements, limitations on transactions between the adviser’s account and an advisory client’s account, limitations on transactions between the accounts of advisory clients, and general anti-fraud prohibitions. The External Investment Manager may be examined by the SEC from time to time for compliance with the Advisers Act.
Taxation as a Regulated Investment Company
MSCC has elected to be treated for U.S. federal income tax purposes as a RIC under Subchapter M of the Code. MSCC’s taxable income includes the taxable income generated by MSCC and certain of its subsidiaries, including the Funds, which are treated as disregarded entities for tax purposes. As a RIC, MSCC generally will not pay corporate-level U.S. federal income taxes on any income that we distribute to our stockholders as dividends. To qualify as a RIC, we must, among other things, meet certain source-of-income and asset diversification requirements (as described below). In addition, in order to obtain RIC tax treatment, we must distribute to our stockholders, for each taxable year, at least 90% of our “investment company taxable income,” which is generally our net ordinary taxable income plus the excess of realized net short-term capital gains over realized net long-term capital losses, and 90% of our tax-exempt income (the “Annual Distribution Requirement”). As part of maintaining RIC status, undistributed taxable income (subject to a 4% non-deductible U.S. federal excise tax) pertaining to a given fiscal year may be distributed up to 12 months subsequent to the end of that fiscal year, provided such dividends are declared on or prior to the later of (i) filing of the U.S. federal income tax return for the applicable fiscal year or (ii) the fifteenth day of the ninth month following the close of the year in which such taxable income was generated.
For any taxable year in which we qualify as a RIC and satisfy the Annual Distribution Requirement, we will not be subject to U.S. federal income tax on the portion of our income or capital gains we distribute (or are deemed to distribute) to stockholders. We will be subject to U.S. federal income tax at the regular corporate rates on any income or capital gains not distributed (or deemed distributed) to our stockholders.
We are subject to a 4% non-deductible U.S. federal excise tax on certain undistributed income unless we distribute in a timely manner an amount at least equal to the sum of (1) 98% of our net ordinary taxable income for each calendar year, (2) 98.2% of our capital gain net income for the one-year period ending December 31 in that calendar year and (3) any taxable income recognized, but not distributed, in preceding years on which we paid no U.S. federal income tax (the “Excise Tax Avoidance Requirement”). Dividends declared and paid by us in a year will generally differ from taxable income for that year as such dividends may include the distribution of current year taxable income, exclude amounts carried over into the following year, and include the distribution of prior year taxable income carried over into and distributed in the current year. For amounts we carry over into the following year, we will be required to pay the 4% U.S. federal excise tax on the excess of 98% of our annual investment company taxable income and 98.2% of our capital gain net income over our distributions for the year.
In order to qualify as a RIC for U.S. federal income tax purposes, we must, among other things:
•continue to qualify as a BDC under the 1940 Act at all times during each taxable year;
•derive in each taxable year at least 90% of our gross income from dividends, interest, payments with respect to certain securities, loans, gains from the sale of stock or other securities, net income from certain “qualified publicly traded partnerships,” or other income derived with respect to our business of investing in such stock or securities (the “90% Income Test”); and
•diversify our holdings so that at the end of each quarter of the taxable year:
•at least 50% of the value of our assets consists of cash, cash equivalents, U.S. government securities, securities of other RICs, and other securities if such other securities of any one issuer do not represent more than 5% of the value of our assets or more than 10% of the outstanding voting securities of the issuer; and
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•no more than 25% of the value of our assets is invested in the securities, other than U.S. government securities or securities of other RICs, (i) of one issuer, (ii) of two or more issuers that are controlled, as determined under applicable Code rules, by us and that are engaged in the same or similar or related trades or businesses or (iii) of certain “qualified publicly traded partnerships” (collectively, the “Diversification Tests”).
In order to comply with the 90% Income Test, we formed the Taxable Subsidiaries as wholly-owned taxable subsidiaries for the primary purpose of permitting us to own equity interests in portfolio companies which are “pass-through” entities for tax purposes. Absent the taxable status of the Taxable Subsidiaries, a portion of the gross income from such portfolio companies would flow directly to us for purposes of the 90% Income Test. To the extent such income did not consist of income derived from securities, such as dividends and interest, it could jeopardize our ability to qualify as a RIC and, therefore, cause us to incur significant U.S. federal income taxes. The Taxable Subsidiaries are consolidated with Main Street for generally accepted accounting principles in the United States of America (“U.S. GAAP”) purposes and are included in our consolidated financial statements, and the portfolio investments held by the Taxable Subsidiaries are included in our consolidated financial statements. The Taxable Subsidiaries are not consolidated with MSCC for income tax purposes and may generate income tax expense, or benefit, as a result of their ownership of the portfolio investments. The income tax expense, or benefit, if any, and any related tax assets and liabilities, are reflected in our consolidated financial statements.
The External Investment Manager is accounted for as a portfolio investment for U.S. GAAP purposes and is an indirect wholly-owned subsidiary of MSCC, owned through a Taxable Subsidiary. The External Investment Manager is owned by a Taxable Subsidiary in order to comply with the 90% Income Test, since the External Investment Manager’s income would likely not consist of income derived from securities, such as dividends and interest, and as result, it could jeopardize our ability to qualify as a RIC and, therefore, cause us to incur significant U.S. federal income taxes. As a result of its ownership by a Taxable Subsidiary, the External Investment Manager is a disregarded entity for tax purposes. The External Investment Manager has also entered into a tax sharing agreement with its Taxable Subsidiary owner. Since the External Investment Manager is accounted for as a portfolio investment of MSCC and is not included as a consolidated subsidiary of MSCC in MSCC’s consolidated financial statements, and as a result of the tax sharing agreement with its Taxable Subsidiary owner, for its stand-alone financial reporting purposes the External Investment Manager is treated as if it is taxed at normal corporate tax rates based on its taxable income and, as a result of its activities, may generate income tax expense or benefit. The income tax expense, or benefit, if any, and the related tax assets and liabilities, of the External Investment Manager are reflected in the External Investment Manager’s separate financial statements.
We may be required to recognize taxable income in circumstances in which we do not receive cash. For example, if we hold debt obligations that are treated under applicable tax rules as having original issue discount (such as debt instruments issued with warrants and debt securities invested in at a discount to par), we must include in income each year a portion of the original issue discount that accrues over the life of the obligation, regardless of whether cash representing such income is received by us in the same taxable year. We may also have to include in income other amounts that we have not yet received in cash such as PIK interest, cumulative dividends or amounts that are received in non-cash compensation such as warrants or stock. Because any original issue discount or other amounts accrued will be included in our investment company taxable income for the year of accrual, we may be required to make a distribution to our stockholders in order to satisfy the Annual Distribution Requirement, even though we will not have received any corresponding cash amount.
Although we do not presently expect to do so, we are authorized to borrow funds and to sell assets in order to satisfy distribution requirements. However, under the 1940 Act, we are not permitted to make distributions to our stockholders in certain circumstances while our debt obligations and other senior securities are outstanding unless certain “asset coverage” tests are met. See Regulation — Regulation as a Business Development Company — Senior Securities. Moreover, our ability to dispose of assets to meet our distribution requirements may be limited by (1) the illiquid nature of our portfolio and/or (2) other requirements relating to our status as a RIC, including the Diversification Tests. If we dispose of assets in order to meet the Annual Distribution Requirement or the Excise Tax Avoidance Requirement, we may make such dispositions at times that, from an investment standpoint, are not advantageous.
We may distribute taxable dividends that are payable in part in our stock. Under certain applicable provisions of the Code and the U.S. Department of the Treasury (“Treasury”) regulations, distributions payable by us in cash or in shares of stock (at the stockholders’ election) would satisfy the Annual Distribution Requirement. The Internal Revenue Service has issued guidance indicating that this rule will apply even where the total amount of cash that may be distributed is limited to no more than 20% of the total distribution. According to this guidance, if too many stockholders elect to receive their distributions in cash, each such stockholder would receive a pro rata share of the total cash to be distributed and would
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receive the remainder of their distribution in shares of stock. Taxable stockholders receiving such dividends will be required to include the full amount of the dividend (whether received in cash, our stock, or a combination thereof) as (i) ordinary income (including any qualified dividend income that, in the case of a noncorporate stockholder, may be eligible for the same reduced maximum tax rate applicable to long-term capital gains to the extent such distribution is properly reported by us as qualified dividend income and such stockholder satisfies certain minimum holding period requirements with respect to our stock) or (ii) long-term capital gain (to the extent such distribution is properly reported as a capital gain dividend), to the extent of our current and accumulated earnings and profits for U.S. federal income tax purposes. As a result, a U.S. stockholder may be required to pay tax with respect to such dividends in excess of any cash received. If a U.S. stockholder sells the stock it receives in order to pay this tax, the sales proceeds may be less than the amount included in income with respect to the dividend, depending on the market price of our stock at the time of the sale. Furthermore, with respect to non-U.S. stockholders, we may be required to withhold U.S. tax with respect to such dividends, including in respect of all or a portion of such dividend that is payable in stock. In addition, if a significant number of our stockholders determine to sell shares of our stock in order to pay taxes owed on dividends, it may put downward pressure on the trading price of our stock.
Failure to Qualify as a RIC
If we fail to satisfy the 90% Income Test or the Diversification Tests for any taxable year, we may nevertheless continue to qualify as a RIC for such year if certain relief provisions are applicable (which may, among other things, require us to pay certain corporate-level U.S. federal taxes or to dispose of certain assets). We cannot assure you that we qualify for any such relief should we fail the 90% Income Test or the Diversification Tests.
If we were unable to qualify for treatment as a RIC and the foregoing relief provisions are not applicable, we would be subject to tax on all of our taxable income at regular corporate rates. We would not be able to deduct distributions to stockholders, nor would they be required to be made. If we were subject to tax on all of our taxable income at regular corporate rates, then distributions we make after being subject to such tax would be taxable to our stockholders and, provided certain holding period and other requirements were met, could qualify for treatment as “qualified dividend income” eligible for the maximum 20% rate (plus a 3.8% Medicare surtax, if applicable) applicable to qualified dividends to the extent of our current and accumulated earnings and profits. Subject to certain limitations under the Code, corporate taxpayers would be eligible for a dividends-received deduction on distributions they receive. Distributions in excess of our current and accumulated earnings and profits would be treated first as a return of capital to the extent of the stockholder’s tax basis, and any remaining distributions would be treated as a capital gain. To requalify as a RIC in a subsequent taxable year, we would be required to satisfy the RIC qualification requirements for that year and dispose of any earnings and profits from any year in which we failed to qualify as a RIC. Subject to a limited exception applicable to RICs that qualified as such under Subchapter M of the Code for at least one year prior to disqualification and that requalify as a RIC no later than the second year following the nonqualifying year, we could be subject to tax on any unrealized net built-in gains in the assets held by us during the period in which we failed to qualify as a RIC that are recognized within the subsequent five years, unless we made a special election to pay corporate-level U.S. federal income tax on such built-in gain at the time of our requalification as a RIC.
Item 1A. Risk Factors
Investing in our securities involves a number of significant risks. In addition to the other information contained in this Annual Report on Form 10-K, you should consider carefully the following information before making an investment in our securities. The risks set out below are not the only risks we face. Additional risks and uncertainties not presently known to us or not presently deemed material by us might also impair our operations and performance. If any of the following events occur, our business, financial condition and results of operations could be materially and adversely affected. In such case, our NAV, the trading price of our common stock and the value of our other securities could decline, and you may lose all or part of your investment.
SUMMARY OF RISK FACTORS
The following is a summary of the principal risk factors associated with an investment in our securities. Further details regarding each risk included in the below summary list can be found further below.
Risks Related to our Business and Structure
•Because our Investment Portfolio is recorded at fair value, there is and will continue to be uncertainty as to the value of our portfolio investments.
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•Our financial condition and results of operations depends on our ability to effectively manage and deploy capital.
•We are subject to risks associated with the interest rate environment and changes in interest rates will affect our cost of capital, net investment income and the value of our investments.
•We face increasing competition for investment opportunities.
•We are dependent upon our key investment personnel for our future success.
•Our success depends on attracting and retaining qualified personnel in a competitive environment.
•Our business model depends to a significant extent upon strong referral relationships.
•Our Board of Directors may change our operating policies and strategies without prior notice or stockholder approval, the effects of which may be adverse.
Risks Related to our Investments
•The types of portfolio companies in which we invest involve significant risks and we could lose all or part of our investment.
•Economic recessions or downturns could impair our portfolio companies’ performance and defaults by our portfolio companies will harm our operating results.
•Rising credit spreads could affect the value of our investments, and rising interest rates make it more difficult for portfolio companies to make periodic payments on their loans.
•Inflation could adversely affect the business, results of operations and financial condition of our portfolio companies.
•We may be exposed to higher risks with respect to our investments that include original issue discount or PIK interest.
•The lack of liquidity in our investments may adversely affect our business.
•We may not have the funds or ability to make additional investments in our portfolio companies.
•There may be circumstances where our debt investments could be subordinated to claims of other creditors or we could be subject to lender liability claims.
•We generally will not control our portfolio companies.
•Defaults by our portfolio companies will harm our operating results.
•Any unrealized depreciation that we experience in our portfolio may be an indication of future realized losses, which could reduce our income and gains available for distribution.
•Prepayments of our debt investments by our portfolio companies could adversely impact our results of operations and reduce our return on equity.
•The discontinuation and replacement of LIBOR may adversely affect the value of floating-rate debt securities in our portfolio or issued by us.
•We may be subject to risks associated with “covenant-lite” loans.
•We may not realize gains from our equity investments.
Risks Related to Leverage
•Because we borrow money, the potential for gain or loss on amounts invested in us is magnified and may increase the risk of investing in us.
•All of our assets are subject to security interests under our senior securities and if we default on our obligations under our senior securities, we may suffer adverse consequences, including foreclosure on our assets.
•We are subject to risks associated with any revolving credit facility that utilizes a Structured Subsidiary as our interests in any Structured Subsidiary are subordinated and we could be prevented from receiving cash on our equity interests from a Structured Subsidiary.
Risks Related to our Investment Management Activities
•Our executive officers and employees, through the External Investment Manager, may manage other investment funds that operate in the same or a related line of business as we do, and may invest in such funds, which may result in significant conflicts of interest.
•We, through the External Investment Manager, derive revenues from managing third-party funds pursuant to management agreements that may be terminated.
Risks Related to BDCs
•Operating under the constraints imposed on us as a BDC and RIC may hinder the achievement of our investment objectives.
Risks Related to our Securities
•Investing in our securities may involve a high degree of risk.
•Shares of closed-end investment companies, including BDCs, may trade at a discount to their NAV.
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•We may not be able to pay distributions to our stockholders, our distributions may not grow over time, and a portion of distributions paid to our stockholders may be a return of capital.
Risks Related to our SBIC Funds
•We, through the Funds, issue debt securities guaranteed by the SBA and sold in the capital markets. As a result of its guarantee of the debt securities, the SBA has fixed dollar claims on the assets of the Funds that are superior to the claims of our securities holders.
Federal Income Tax Risks
•We will be subject to corporate-level U.S. federal income tax if we are unable to qualify as a RIC under Subchapter M of the Code.
•We may have difficulty paying the distributions required to maintain RIC tax treatment under the Code if we recognize income before or without receiving cash representing such income.
General Risk Factors
•Events outside of our control, including public health crises, supply chain disruptions and inflation, could negatively affect our portfolio companies and the results of our operations.
•We are currently operating in a period of capital markets disruption and economic uncertainty, and capital markets may experience periods of disruption and instability in the future.
•Failure to comply with applicable laws or regulations and changes in laws or regulations governing our operations may adversely affect our business or cause us to alter our business strategy.
•We are highly dependent on information systems and systems failures could significantly disrupt our business.
RISKS RELATED TO OUR BUSINESS AND STRUCTURE
Because our Investment Portfolio is recorded at fair value, there is and will continue to be uncertainty as to the value of our portfolio investments.
Under the 1940 Act, we are required to carry our portfolio investments at market value or, if there is no readily available market value, at fair value as determined by us pursuant to procedures established and overseen by our Board of Directors. Typically, there is not a public market for the securities of the privately held companies in which we invest through our LMM and Private Loan investment strategies. As a result, we value these securities quarterly at fair value based on inputs from management and a nationally recognized independent financial advisory services firm (on a rotational basis) pursuant to Valuation Procedures approved by our Board of Directors. In addition, the market for investments in companies that we invest through our Middle Market investment strategy is generally not a liquid market, and therefore, we primarily use a combination of observable inputs in non-active markets for which sufficient observable inputs were not available to determine the fair value of these investments and unobservable inputs, pursuant to our Valuation Procedures. See Note B.1. — Summary of Significant Accounting Policies — Valuation of the Investment Portfolio included in Item 8. Consolidated Financial Statements and Supplementary Data of this Annual Report on Form 10-K for a detailed discussion of our Investment Portfolio valuation process and procedures.
The determination of fair value and consequently, the amount of unrealized gains and losses in our portfolio, are to a certain degree, subjective and dependent on a valuation process approved by our Board of Directors. Certain factors that may be considered in determining the fair value of our investments include external events, such as private mergers, sales and acquisitions involving comparable companies. Because such valuations, and particularly valuations of securities in privately held companies, are inherently uncertain, may fluctuate over short periods of time and may be based on estimates, our determinations of fair value may differ materially from the values that would have been used if a ready market for these securities existed. Due to this uncertainty, our fair value determinations may cause our NAV on a given date to materially understate or overstate the value that we may ultimately realize on one or more of our investments. As a result, investors purchasing our securities based on an overstated NAV would pay a higher price than the value of our investments might warrant. Conversely, investors selling our securities during a period in which the NAV understates the value of our investments may receive a lower price for their securities than the value of our investments might warrant.
Our financial condition and results of operations depends on our ability to effectively manage and deploy capital.
Our ability to achieve our investment objective of maximizing our portfolio’s total return by generating current income from our debt investments and current income and capital appreciation from our equity and equity-related investments, including warrants, convertible securities and other rights to acquire equity securities in a portfolio company,
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depends on our ability to effectively manage and deploy capital, which depends, in turn, on our investment team’s ability to identify, evaluate and monitor, and our ability to finance and invest in, companies that meet our investment criteria.
Accomplishing our investment objective on a cost-effective basis is largely a function of our investment team’s handling of the investment process, its ability to provide competent, attentive and efficient services and our access to investments offering acceptable terms. In addition to monitoring the performance of our existing investments, members of our investment team are also called upon, from time to time, to provide managerial assistance to some of our portfolio companies. These demands on their time may distract them or slow the rate of investment.
Even if we are able to grow and build upon our investment operations, any failure to manage our growth effectively could have a material adverse effect on our business, financial condition, results of operations and prospects. The results of our operations will depend on many factors, including the availability of opportunities for investment, readily accessible short and long-term funding alternatives in the financial markets and economic conditions. Furthermore, if we cannot successfully operate our business or implement our investment policies and strategies as described herein, it could negatively impact our ability to pay dividends.
We are subject to risks associated with the interest rate environment and changes in interest rates will affect our cost of capital, net investment income and the value of our investments.
To the extent we borrow money or issue debt securities or preferred stock to make investments, our net investment income will depend, in part, upon the difference between the rate at which we borrow funds or pay interest or dividends on such debt securities or preferred stock and the rate at which we invest these funds. In addition, many of our debt investments and borrowings have floating interest rates that reset on a periodic basis, and many of our investments are subject to interest rate floors. As a result, a change in market interest rates could have a material adverse effect on our net investment income. In periods of rising interest rates, our cost of funds will increase because the interest rates on the amounts borrowed under our credit facilities are floating, and any new fixed rate debt may be issued at higher coupon rates, which could reduce our net investment income to the extent any debt investments have either fixed interest rates, or in periods when debt investments with floating interest rates are subject to an interest rate floor above then current levels. In periods of declining interest rates, our interest income and our net investment income could be reduced as the interest income earned on our floating rate debt investments declines and any new fixed rate debt may be issued at lower coupon rates. See further discussion and analysis at Item 7A. Quantitative and Qualitative Disclosures about Market Risk.
We can use interest rate risk management techniques in an effort to limit our exposure to interest rate fluctuations. Such techniques could include various interest rate hedging activities to the extent permitted by the 1940 Act and applicable commodities laws. These activities could limit our ability to participate in the benefits of lower interest rates with respect to the hedged borrowings. Adverse developments resulting from changes in interest rates or hedging transactions could have a material adverse effect on our business, financial condition and results of operations.
An increase in the market pricing of the spreads charged over index rates on floating rate investments could lead to a decline in the fair value of the debt securities we own, which would adversely affect our NAV. Also, an increase in interest rates available to investors could make an investment in our common stock less attractive if we are not able to increase our dividends, which could reduce the value of our common stock.
We face increasing competition for investment opportunities.
We compete for investments with other investment funds (including private equity funds, debt funds, mezzanine funds, collateralized loan obligation funds, or CLOs, BDCs and SBICs), as well as traditional financial services companies such as commercial banks and other sources of funding. Many of our competitors are substantially larger and have considerably greater financial, technical and marketing resources than we do. For example, some competitors may have a lower cost of capital and access to funding sources that are not available to us. In addition, some of our competitors may have higher risk tolerances or different risk assessments than we have. These characteristics could allow our competitors to consider a wider variety of investments, establish more relationships and offer better pricing and more flexible structuring than we are able to do. We may lose investment opportunities if we do not match our competitors’ pricing, terms and structure. If we are forced to match our competitors’ pricing, terms and structure, we may not be able to achieve acceptable returns on our investments or may bear substantial risk of capital loss. A significant part of our competitive advantage stems from the fact that the market for investments in LMM companies is underserved by traditional commercial banks and other financing sources. A significant increase in the number and/or the size of our competitors in this target market could
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force us to accept less attractive investment terms. Furthermore, many of our competitors are not subject to the regulatory restrictions that the 1940 Act imposes on us as a BDC.
We are dependent upon our key investment personnel for our future success.
We depend on the members of our investment team, particularly Dwayne L. Hyzak, David L. Magdol, Jesse E. Morris, Jaime Arreola, K. Colton Braud, III, Damian T. Burke, Samuel A. Cashiola, Diego Fernandez and Nicholas T. Meserve for the identification, review, final selection, structuring, closing and monitoring of our investments. These employees have significant investment expertise and relationships that we rely on to implement our business plan. Although we have entered into non-compete arrangements with all of our executive officers and other key employees, we cannot guarantee that any employees will remain employed with us. If we lose the services of the individuals mentioned above, we may not be able to operate our business as we expect, and our ability to compete could be harmed, which could cause our operating results to suffer.
Our success depends on attracting and retaining qualified personnel in a competitive environment.
Our growth will require that we retain new investment and administrative personnel in a competitive market. Our ability to attract and retain personnel with the requisite credentials, experience and skills depends on several factors including, but not limited to, our ability to offer competitive wages, benefits and professional growth opportunities. Many of the entities, including investment funds (such as private equity funds, debt funds and mezzanine funds) and traditional financial services companies, with which we compete for experienced personnel have greater resources than we have.
The competitive environment for qualified personnel may require us to take certain measures to ensure that we are able to attract and retain experienced personnel. Such measures may include increasing the attractiveness of our overall compensation packages, altering the structure of our compensation packages through the use of additional forms of compensation, or other steps. The inability to attract and retain experienced personnel would have a material adverse effect on our business.
Our business model depends to a significant extent upon strong referral relationships.
We expect that members of our management team will maintain their relationships with intermediaries, financial institutions, investment bankers, commercial bankers, financial advisors, attorneys, accountants, consultants and other individuals within our network, and we will rely to a significant extent upon these relationships to provide us with potential investment opportunities. If our management team fails to maintain its existing relationships or develop new relationships with sources of investment opportunities, we will not be able to grow our Investment Portfolio. In addition, individuals with whom members of our management team have relationships are not obligated to provide us with investment opportunities, and, therefore, there is no assurance that such relationships will generate investment opportunities for us.
Our Board of Directors may change our operating policies and strategies without prior notice or stockholder approval, the effects of which may be adverse.
Our Board of Directors has the authority to modify or waive our current operating policies, investment criteria and strategies without prior notice and without stockholder approval. We cannot predict the effect any changes to our current operating policies, investment criteria and strategies would have on our business, NAV, operating results and value of our stock. However, the effects might be adverse, which could negatively impact our ability to pay interest and principal payments to holders of our debt instruments and dividends to our stockholders and cause our investors to lose all or part of their investment in us.
We are a non-diversified investment company within the meaning of the 1940 Act, and therefore we are not limited with respect to the proportion of our assets that may be invested in securities of a single issuer.
We are classified as a non-diversified investment company within the meaning of the 1940 Act, which means that we are not limited by the 1940 Act with respect to the proportion of our assets that we may invest in securities of a single issuer. Under the 1940 Act, a “diversified” investment company is required to invest at least 75% of the value of its total assets in cash and cash items, government securities, securities of other investment companies and other securities limited in respect of any one issuer to an amount not greater than 5% of the value of the total assets of such company and no more than 10% of the outstanding voting securities of such issuer. As a non-diversified investment company, we are not subject to this requirement. To the extent that we assume large positions in the securities of a small number of issuers, our NAV
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may fluctuate to a greater extent than that of a diversified investment company as a result of changes in the financial condition or the market’s assessment of the issuer. We may also be more susceptible to any single economic or regulatory occurrence than a diversified investment company. Beyond our RIC asset diversification requirements, we do not have fixed guidelines for diversification, and our investments could be concentrated in relatively few portfolio companies. See Risk Factors — Federal Income Tax Risks — We will be subject to corporate-level U.S. federal income tax if we are unable to qualify as a RIC under Subchapter M of the Code.
We and our portfolio companies may maintain cash balances at financial institutions that exceed federally insured limits and may otherwise be materially affected by adverse developments affecting the financial services industry, such as actual events or concerns involving liquidity, defaults or non-performance by financial institutions or transactional counterparties.
Cash held by us and by our portfolio companies in non-interest-bearing and interest-bearing operating accounts may exceed the Federal Deposit Insurance Corporation (“FDIC”) insurance limits. If such banking institutions were to fail, we or our portfolio companies could lose all or a portion of those amounts held in excess of such insurance limitations. In addition, actual events involving limited liquidity, defaults, non-performance or other adverse developments that affect financial institutions, transactional counterparties or other companies in the financial services industry or the financial services industry generally, or concerns or rumors about any events of these kinds or other similar risks, have in the past and may in the future lead to market-wide liquidity problems, which could adversely affect our and our portfolio companies’ business, financial condition, results of operations or prospects.
Although we assess our portfolio companies’ banking relationships as we believe necessary or appropriate, our and our portfolio companies’ access to funding sources and other credit arrangements in amounts adequate to finance or capitalize our respective current and projected future business operations could be significantly impaired by factors that affect us or our portfolio companies, the financial institutions with which we or our portfolio companies have arrangements directly or the financial services industry or economy in general. These factors could include, among others, events such as liquidity constraints or failures, the ability to perform obligations under various types of financial, credit or liquidity agreements or arrangements, disruptions or instability in the financial services industry or financial markets or concerns or negative expectations about the prospects for companies in the financial services industry. These factors could involve financial institutions or financial services industry companies with which we or our portfolio companies have financial or business relationships, but could also include factors involving financial markets or the financial services industry generally.
In addition, investor concerns regarding the U.S. or international financial systems could result in less favorable commercial financing terms, including higher interest rates or costs and tighter financial and operating covenants or systemic limitations on access to credit and liquidity sources, thereby making it more difficult for us or our portfolio companies to acquire financing on acceptable terms or at all.
We are subject to risks related to corporate social responsibility.
Our business faces increasing public scrutiny related to environmental, social and governance (“ESG”) activities. We risk damage to our brand and reputation if we fail to act responsibly in a number of areas, such as diversity and inclusion, environmental stewardship, support for local communities, corporate governance and transparency and considering ESG factors in our investment processes. Adverse incidents with respect to ESG activities could impact the value of our brand, the cost of our operations and relationships with investors, all of which could adversely affect our business and results of operations. Additionally, new regulatory initiatives related to ESG could adversely affect our business.
RISKS RELATED TO OUR INVESTMENTS
The types of portfolio companies in which we invest involve significant risks and we could lose all or part of our investment.
Investing in the types of companies that comprise our portfolio companies exposes us to a number of significant risks. Among other things, these companies:
•may have limited financial resources and may be unable to meet their obligations under their debt instruments that we hold, which may be accompanied by a deterioration in the value of any collateral and a reduction in
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the likelihood of us realizing any guarantees from subsidiaries or affiliates of our portfolio companies that we may have obtained in connection with our investment, as well as a corresponding decrease in the value of the equity components of our investments;
•may have shorter operating histories, narrower product lines, smaller market shares and/or significant customer concentrations than larger businesses, which tend to render them more vulnerable to competitors’ actions and market conditions, as well as general economic downturns;
•are more likely to depend on the management talents and efforts of a small group of persons; therefore, the death, disability, resignation, termination or significant under-performance of one or more of these persons could have a material adverse impact on our portfolio company and, in turn, on us;
•generally have less predictable operating results, may from time to time be parties to litigation, may be engaged in rapidly changing businesses with products subject to a substantial risk of obsolescence, and may require substantial additional capital to support their operations, finance expansion or maintain their competitive position; and
•generally have less publicly available information about their businesses, operations and financial condition. We are required to rely on the ability of our management team and investment professionals to obtain adequate information to evaluate the potential returns from investing in these companies. If we are unable to uncover all material information about these companies, we may not make a fully informed investment decision, and may lose all or part of our investment.
In addition certain of our officers and directors may serve as directors on the boards of our portfolio companies. To the extent that litigation arises out of our investments in these companies, our officers and directors may be named as defendants in such litigation, which could result in an expenditure of funds (through our indemnification of such officers and directors) and the diversion of management time and resources.
Economic recessions or downturns could impair our portfolio companies’ performance and defaults by our portfolio companies will harm our operating results.
Many of our portfolio companies are susceptible to economic slowdowns or recessions and could be unable to repay our loans during these periods. Therefore, the number of non-performing assets are likely to increase and the value of our portfolio is likely to decrease during these periods. Adverse economic conditions could decrease the value of collateral securing any of our loans and the value of any equity investments. A severe recession could further decrease the value of such collateral and result in losses of value in our portfolio and a decrease in our revenues, net income, assets and net worth. Economic slowdowns or recessions could lead to financial losses in our portfolio and a decrease in revenues, net income and assets. Unfavorable economic conditions also could increase our funding costs, limit our access to the capital markets or result in a decision by lenders not to extend credit to us. These events could prevent us from increasing our investments and harm our operating results.
Any deterioration of general economic conditions could lead to significant declines in corporate earnings or loan performance, and the ability of corporate borrowers to service their debt, any of which could trigger a period of global economic slowdown, and have an adverse impact on our performance and financial results, and the value and the liquidity of our investments. In an economic downturn, we could have non-performing assets or an increase in non-performing assets, and we would anticipate that the value of our portfolio would decrease during these periods. Failure to satisfy financial or operating covenants imposed by lenders, including us, to a portfolio company could lead to defaults and, potentially, acceleration of payments on such loans and foreclosure on the assets representing collateral for the portfolio company’s obligations. Cross default provisions under other agreements could be triggered and thus limit the portfolio company’s ability to satisfy its obligations under any debt that we hold and affect the value of any equity securities we own. We would expect to incur expenses to the extent necessary to seek recovery upon default or to negotiate new terms with a portfolio company following or in anticipation of a default.
Rising credit spreads could affect the value of our investments, and rising interest rates make it more difficult for portfolio companies to make periodic payments on their loans.
Some of our portfolio investments are debt securities that bear interest at variable rates and may be negatively affected by changes in market interest rates. Rising interest rates make it more difficult for borrowers to repay debt, which
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could increase the risk of payment defaults and cause the portfolio companies to defer or cancel needed investment. Any failure of one or more portfolio companies to repay or refinance its debt at or prior to maturity or the inability of one or more portfolio companies to make ongoing payments following an increase in contractual interest rates could have a material adverse effect on our business, financial condition, results of operations and cash flows. The value of our securities could also be reduced from an increase in market credit spreads as rates available to investors could make an investment in our securities less attractive than alternative investments.
Conversely, decreases in market interest rates could negatively impact the interest income from our variable rate debt investments while the interest we pay on our fixed rate debt securities does not change. A decrease in market interest rates may also have an adverse impact on our returns by requiring us to accept lower yields on our debt investments and by increasing the risk that our portfolio companies will prepay our debt investments, resulting in the need to redeploy capital at potentially lower rates.
Inflation could adversely affect the business, results of operations and financial condition of our portfolio companies.
Certain of our portfolio companies are in industries that could be impacted by inflation. If such portfolio companies are unable to pass any increases in their costs of operations along to their customers, it could adversely affect their operating results and impact their ability to pay dividends on our equity investments and/or interest and principal on our loans, particularly if interest rates rise in response to inflation. In addition, any projected future decreases in our portfolio companies’ operating results due to inflation could adversely impact the fair value of those investments. Any decreases in the fair value of our investments could result in future realized or unrealized losses and therefore reduce our net increase (decrease) in net assets resulting from operations.
We may be exposed to higher risks with respect to our investments that include original issue discount or PIK interest.
Our investments may include original issue discount and contractual PIK interest, which represents contractual interest added to a loan balance and due at the end of such loan’s term. To the extent original issue discount or PIK interest constitute a portion of our income, we are exposed to typical risks associated with such income being required to be included in taxable and accounting income prior to receipt of cash, including the following:
•original issue discount and PIK instruments may have higher yields, which reflect the payment deferral and credit risk associated with these instruments;
•for accounting purposes, cash distributions to investors representing original issue discount income are not derived from paid in capital, although they may be effectively paid from any offering proceeds during any given period; thus, although the source for the cash used to pay a distribution of original issue discount income may come from the cash invested by investors, the 1940 Act does not require that investors be given notice of this fact;
•original issue discount and PIK instruments may have unreliable valuations because their continuing accruals require continuing judgments about the collectability of the deferred payments and the value of the collateral; and
•original issue discount and PIK instruments may represent a higher credit risk than coupon loans; even if the conditions for income accrual under U.S. GAAP are satisfied, a borrower could still default when actual payment is due upon the maturity of such loan.
The lack of liquidity in our investments may adversely affect our business.
We generally invest in companies whose securities are not publicly traded and whose securities will be subject to legal and other restrictions on resale or will otherwise be less liquid than publicly traded securities. The illiquidity of these investments may make it difficult for us to sell these investments when desired. In addition, if we are required to liquidate all or a portion of our portfolio quickly, we may realize significantly less than the value at which we had previously recorded these investments. As a result, we do not expect to achieve liquidity in our investments in the near-term. Our investments are usually subject to contractual or legal restrictions on resale or are otherwise illiquid because there is usually no established trading market for such investments. The illiquidity of most of our investments may make it difficult for us to dispose of them at a favorable price and, as a result, we may suffer losses.
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We may not have the funds or ability to make additional investments in our portfolio companies.
We may not have the funds or ability to make additional investments in our portfolio companies. After our initial investment in a portfolio company, we may be called upon from time to time to provide additional funds to such company or have the opportunity to increase our investment through the extension of additional loans, the exercise of a warrant to purchase equity securities, or the funding of additional equity investments. There is no assurance that we will make, or will have sufficient funds to make, follow-on investments. Any decisions not to make a follow-on investment or any inability on our part to make such an investment may have a negative impact on a portfolio company in need of such an investment, may result in a missed opportunity for us to increase our participation in a successful operation, may reduce our ability to protect an existing investment or may reduce the expected yield on the investment.
There may be circumstances where our debt investments could be subordinated to claims of other creditors or we could be subject to lender liability claims.
Our portfolio companies may have, or may be permitted to incur, other debt that ranks equally with, or senior to, the debt in which we invest. By their terms, such debt instruments may entitle the holders to receive payment of interest or principal on or before the dates on which we are entitled to receive payments with respect to the debt instruments in which we invest. Also, in the event of insolvency, liquidation, dissolution, reorganization or bankruptcy of a portfolio company, holders of debt instruments ranking senior to our investment in that portfolio company would typically be entitled to receive payment in full before we receive any distribution. After repaying such senior creditors, such portfolio company may not have any remaining assets to use for repaying its obligation to us. In the case of debt ranking equally with debt instruments in which we invest, we would have to share on an equal basis any distributions with other creditors holding such debt in the event of an insolvency, liquidation, dissolution, reorganization or bankruptcy of the relevant portfolio company.
Even if our investment is structured as a senior-secured loan, principles of equitable subordination, as defined by existing case law, could lead a bankruptcy court to subordinate all or a portion of our claim to that of other creditors and transfer any lien securing such subordinated claim to the bankruptcy estate. The principles of equitable subordination defined by case law have generally indicated that a claim may be subordinated only if its holder is guilty of misconduct or where the senior loan is re-characterized as an equity investment and the senior lender has actually provided significant managerial assistance to the bankrupt debtor. We may also be subject to lender liability claims for actions taken by us with respect to a borrower’s business or instances where we exercise control over the borrower. It is possible that we could become subject to a lender liability claim, including as a result of actions taken in rendering significant managerial assistance or actions to compel and collect payments from the borrower outside the ordinary course of business.
We generally will not control our portfolio companies.
We do not, and do not expect to, control the decision making in many of our portfolio companies, even though we may have board representation or board observation rights, and our debt agreements may contain certain restrictive covenants. As a result, we are subject to the risk that a portfolio company in which we invest will make business decisions with which we disagree and the management of such company will take risks or otherwise act in ways that do not serve our interests as debt investors or minority equity holders. Due to the lack of liquidity for our investments in non-traded companies, we may not be able to dispose of our interests in our portfolio companies as readily as we would like or at an appropriate valuation. As a result, a portfolio company may make decisions that would decrease the value of our portfolio holdings.
Defaults by our portfolio companies will harm our operating results.
A portfolio company’s failure to satisfy financial or operating covenants imposed by us or other lenders could lead to non-payment of interest and other defaults and, potentially, termination of its loans and foreclosure on its secured assets, which could trigger cross-defaults under other agreements and jeopardize a portfolio company’s ability to meet its obligations under the debt or equity securities that we hold. We may incur expenses to the extent necessary to seek recovery upon default or to negotiate new terms, which may include the waiver of certain financial covenants, with a defaulting portfolio company.
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Any unrealized depreciation that we experience in our portfolio may be an indication of future realized losses, which could reduce our income and gains available for distribution.
As a BDC, we are required to carry our investments at market value or, if no market value is ascertainable, at the fair value as determined in accordance with our Valuation Procedures adopted pursuant to Rule 2a-5 under the 1940 Act. Decreases in the market values or fair values of our investments will be recorded as unrealized depreciation. Any unrealized depreciation in our portfolio could be an indication of a portfolio company’s inability to meet its repayment obligations to us with respect to affected loans or a potential impairment of the value of affected equity investments.
This could result in realized losses in the future and ultimately in reductions of our income and gains available for distribution in future periods.
Prepayments of our debt investments by our portfolio companies could adversely impact our results of operations and reduce our return on equity.
We are subject to the risk that the investments we make in our portfolio companies may be repaid prior to maturity. When this occurs, we will generally reinvest these proceeds in temporary investments, pending their future investment in new portfolio companies. These temporary investments will typically have substantially lower yields than the debt being prepaid and we could experience significant delays in reinvesting these amounts. Any future investment in a new portfolio company may also be at lower yields than the debt that was repaid. As a result, our results of operations could be materially adversely affected if one or more of our portfolio companies elect to prepay amounts owed to us. Additionally, prepayments could negatively impact our return on equity, which could result in a decline in the market price of our securities.
The discontinuation and replacement of LIBOR may adversely affect the value of floating-rate debt securities in our portfolio or issued by us.
As of June 30, 2023, no settings of LIBOR continue to be published on a representative basis and publication of many non-U.S. dollar LIBOR settings have been entirely discontinued. On July 29, 2021, the U.S. Federal Reserve, in conjunction with the Alternative Reference Rates Committee, a steering committee comprised of large U.S. financial institutions, recommended replacing U.S. dollar LIBOR with alternative reference rates based on the Secured Overnight Financing Rate (“SOFR”). SOFR significantly differs from LIBOR, both in the actual rate and how it is calculated. Further, on March 15, 2022, the Consolidated Appropriations Act of 2022, which includes the Adjustable Interest Rate (LIBOR) Act (“LIBOR Act”), was signed into law in the United States. This legislation established a uniform benchmark replacement process for certain financial contracts that mature after June 30, 2023 that do not contain clearly defined or practicable LIBOR fallback provisions. The legislation also created a safe harbor that shields lenders from litigation if they choose to utilize a replacement rate recommended by the Board of Governors of the U.S. Federal Reserve. In addition, the U.K. Financial Conduct Authority, which regulates the publisher of LIBOR (ICR Benchmark Administration) has announced that it required the continued publication of one, three and six month tenors of U.S. dollar LIBOR on a non-representative synthetic basis until the end of September 2024, which may result in certain non-U.S. law-governed contracts and U.S. law-governed contracts not being covered by the federal legislation remaining on synthetic U.S. dollar LIBOR until the end of this period. The transition from LIBOR as a result of certain statutory regimes (e.g., N.Y. Gen. Oblig. Law § 18-401 or the Adjustable Interest Rate (LIBOR) Act) or the use of synthetic LIBOR in floating-rate debt securities in our portfolio or issued by us and could have a material and adverse impact on the value or liquidity of those instruments.
Given the inherent difference between LIBOR and SOFR, or any other alternative benchmark rate established, there are many uncertainties regarding a transition from LIBOR, including, but not limited to, the need to amend contracts which continue to reference LIBOR and how the transition from LIBOR will impact the cost of variable rate debt and certain derivative financial instruments. In addition, SOFR or other replacement rates may fail to gain market acceptance. Any failure of SOFR or alternative reference rates to gain market acceptance could adversely affect the return on or value of the market for securities linked to such rates. The elimination of LIBOR, the replacement of LIBOR with any alternative reference rate, such as SOFR (or an alternative reference rate based on SOFR) or any other changes or reforms to floating rate benchmarks could have an adverse impact on the market value of and/or transfer ability of any floating-rate debt securities in our portfolio or issued by us.
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The IRS has issued regulations regarding the tax consequences of the transition from LIBOR or another interbank offered rate (“IBOR”) to a new reference rate in debt instruments and non-debt contracts. Under the regulations, alteration or modification of the terms of a debt instrument to replace an operative rate that uses a discontinued IBOR with a qualified rate (as defined in the regulations) including true up payments equalizing the fair market value of contracts before and after such IBOR transition, to add a qualified rate as a fallback rate to a contract whose operative rate uses a discontinued IBOR or to replace a fallback rate that uses a discontinued IBOR with a qualified rate would not be taxable. The IRS may provide additional guidance, with potential retroactive effect.
We may be subject to risks associated with “covenant-lite” loans.
Some of the loans in which we invest may be “covenant-lite” loans, which means the loans contain fewer maintenance covenants than other loans (in some cases, none) and do not include terms which allow the lender to monitor the performance of the borrower and declare a default if certain criteria are breached. Generally, “covenant-lite” loans provide borrower companies more freedom to negatively impact lenders because their covenants are incurrence-based, which means they are only tested and can only be breached following an affirmative action of the borrower, rather than by a deterioration in the borrower’s financial condition. To the extent we invest in covenant-lite loans, we may have fewer rights against a borrower and may have a greater risk of loss on such investments as compared to investments in loans with finance maintenance covenants.
We may not realize gains from our equity investments.
Certain investments that we have made in the past and may make in the future include warrants or other equity securities. Investments in equity securities involve a number of significant risks, including the risk of further dilution as a result of additional issuances, inability to access additional capital and failure to pay current distributions. Investments in preferred securities involve special risks, such as the risk of deferred distributions, credit risk, illiquidity and limited voting rights. In addition, we may from time to time make non-control, equity investments in portfolio companies. Our goal is ultimately to realize gains upon our disposition of such equity interests. However, the equity interests we receive may not appreciate in value and, in fact, may decline in value. Accordingly, we may not be able to realize gains from our equity interests, and any gains that we do realize on the disposition of any equity interests may not be sufficient to offset any other losses we experience. We also may be unable to realize any value if a portfolio company does not have a liquidity event, such as a sale of the business, recapitalization or public offering, which would allow us to sell the underlying equity interests. We often seek puts or similar rights to give us the right to sell our equity securities back to the portfolio company issuer; however, we may be unable to exercise these put rights for the consideration provided in our investment documents if the issuer is in financial distress.
Our investments in foreign securities may involve significant risks in addition to the risks inherent in U.S. investments.
Our investment strategy contemplates potential investments in debt securities of foreign companies. Investing in foreign companies may expose us to additional risks not typically associated with investing in securities of U.S. companies. These risks include changes in exchange control regulations, political and social instability, expropriation, imposition of foreign taxes, less liquid markets and less available information than is generally the case in the U.S., higher transaction costs, less government supervision of exchanges, brokers and issuers, less developed bankruptcy laws, difficulty in enforcing contractual obligations, lack of uniform accounting and auditing standards and greater price volatility.
Although most of our investments will be U.S. dollar denominated, any investments denominated in a foreign currency will be subject to the risk that the value of a particular currency will change in relation to one or more other currencies. Among the factors that may affect currency values are trade balances, the level of short-term interest rates, differences in relative values of similar assets in different currencies, long-term opportunities for investment and capital appreciation, and political developments.
RISKS RELATED TO LEVERAGE
Because we borrow money, the potential for gain or loss on amounts invested in us is magnified and may increase the risk of investing in us.
Borrowings, also known as leverage, magnify the potential for loss on investments in our indebtedness and gain or loss on investments in our equity capital. As we use leverage to partially finance our investments, you will experience increased risks of investing in our securities. Accordingly, any event that adversely affects the value of an investment
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would be magnified to the extent we use leverage. Such events could result in a substantial loss to us, which would be greater than if leverage had not been used. In addition, our investment objectives are dependent on the continued availability of leverage at attractive relative interest rates.
We may also borrow from banks and other lenders and may issue debt securities or enter into other types of borrowing arrangements in the future. Lenders of these senior securities will have fixed dollar claims on our assets that are superior to the claims of our common stockholders, and we would expect such lenders to seek recovery against our assets in the event of a default. We have the ability to pledge up to 100% of our assets and can grant a security interest in all of our assets under the terms of any debt instruments we could enter into with lenders. The terms of our existing indebtedness require us to comply with certain financial and operational covenants, and we expect similar covenants in future debt instruments. Failure to comply with such covenants could result in a default under the applicable credit facility or debt instrument if we are unable to obtain a waiver from the applicable lender or holder, and such lender or holder could accelerate repayment under such indebtedness and negatively affect our business, financial condition, results of operations and cash flows. In addition, under the terms of any credit facility or other debt instrument we enter into, in the event of a default, we are likely to be required by its terms to use the net proceeds of any investments that we sell to repay a portion of the amount borrowed under such facility or instrument before applying such net proceeds to any other uses. See Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources — Capital Resources for a discussion regarding our outstanding indebtedness.
If the value of our assets decreases, leveraging would cause NAV to decline more sharply than it otherwise would have had we not leveraged our business. Similarly, any decrease in our income would cause net investment income to decline more sharply than it would have had we not leveraged our business. Such a decline could negatively affect our ability to pay common stock dividends, scheduled debt payments or other payments related to our securities.
Illustration: The following table illustrates the effect of leverage on returns from an investment in our common stock assuming various annual returns, net of expenses. The calculations in the table below are hypothetical and actual returns may be higher or lower than those appearing below.
Assumed Return on Our Portfolio(1) (net of expenses)
(10.0)%(5.0)%0.0%5.0%10.0%
Corresponding Net Return to Common Stock Holder(2)
(21.6)%(12.6)%(3.7)%5.3%14.3%
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(1)Assumes, as of December 31, 2023, $4,443.6 million in total assets, $1,810.0 million in debt outstanding, $2,477.4 million in net assets, and a weighted-average interest rate of 5.0%. Actual interest payments may be different.
(2)In order for us to cover our annual interest payments on indebtedness, we must achieve annual returns on our December 31, 2023 total assets of at least 2.1%.
Our ability to achieve our investment objective may depend in part on our ability to access additional leverage on favorable terms and there can be no assurance that such additional leverage can in fact be achieved. If we are unable to obtain leverage or if the interest rates of such leverage are not attractive, we could experience diminished returns. The number of leverage providers and the total amount of financing available could decrease or remain static.
All of our assets are subject to security interests under our senior securities and if we default on our obligations under our senior securities, we may suffer adverse consequences, including foreclosure on our assets.
Substantially all of our assets are currently pledged as collateral under our senior securities, including any credit facilities or notes. If we default on our obligations under our senior securities, our lenders may have the right to foreclose upon and sell, or otherwise transfer, the collateral subject to their security interests or their superior claim. In such event, we may be forced to sell our investments to raise funds to repay our outstanding borrowings in order to avoid foreclosure and these forced sales may be at times and at prices we would not consider advantageous. Moreover, such deleveraging of our company could significantly impair our ability to effectively operate our business in the manner in which we have historically operated. As a result, we could be forced to curtail or cease new investment activities and lower or eliminate the dividends that we have historically paid to our stockholders. In addition, if the lenders exercise their right to sell the assets pledged under our senior securities, such sales may be completed at distressed sale prices, thereby diminishing or potentially eliminating the amount of cash available to us after repayment of the amounts outstanding under the senior securities.
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If our operating performance declines and we are not able to generate sufficient cash flow to service our debt obligations, we may in the future need to refinance or restructure our debt, sell assets, reduce or delay capital investments, seek to raise additional capital or seek to obtain waivers from the required lenders under our senior securities to avoid being in default. If we are unable to implement one or more of these alternatives, we may not be able to meet our payment obligations under our senior securities. If we breach our covenants under our senior securities and seek a waiver, we may not be able to obtain a waiver from the required lenders or debt holders. If this occurs, we would be in default under our senior securities, the lenders or debt holders could exercise their rights as described above, and we could be forced into bankruptcy or liquidation. If we are unable to repay debt, lenders having secured obligations could proceed against the collateral securing the debt. Because certain of our senior securities have customary cross-default provisions, if the indebtedness under our senior securities is accelerated, we may be unable to repay or finance the amounts due.
We are subject to risks associated with any revolving credit facility that utilizes a Structured Subsidiary as our interests in any Structured Subsidiary are subordinated and we could be prevented from receiving cash on our equity interests from a Structured Subsidiary.
We own directly or indirectly 100% of the equity interests in MSCC Funding I, LLC (“MSCC Funding”), a special purpose Structured Subsidiary utilized in our senior secured special purpose vehicle revolving credit facility (the “SPV Facility”). We consolidate the financial statements of the MSCC Funding in our consolidated financial statements and treat the indebtedness under the SPV Facility as our leverage. Our interest in MSCC Funding is subordinated in priority of payment to every other obligation of MSCC Funding and is subject to certain payment restrictions set forth in the SPV Facility.
We receive cash from MSCC Funding only to the extent that we receive distributions on our equity interests therein. MSCC Funding could make distributions on its equity interests only to the extent permitted by the payment priority provisions of the SPV Facility. The SPV Facility generally provides that payments on the respective interests could not be made on any payment date unless all amounts owing to the lenders and other secured parties are paid in full. In addition, if MSCC Funding does not meet the asset coverage tests or the interest coverage test set forth in the agreement governing the SPV Facility, a default could occur. In the event of a default under the SPV Facility credit agreement, cash would be diverted from us to pay the applicable lenders and other secured parties in amounts sufficient to cause such tests to be satisfied. In the event that we fail to receive cash from MSCC Funding, we could be unable to make distributions to our stockholders in amounts sufficient to maintain our status as a RIC, or at all. We also could be forced to sell investments in portfolio companies at less than their fair value in order to continue making such distributions. We cannot assure you that distributions on the assets held by MSCC Funding will be sufficient to make any distributions to us or that such distributions will meet our expectations.
Our equity interest in MSCC Funding ranks behind all of the secured and unsecured creditors, known or unknown, including the lenders in the SPV Facility. Consequently, to the extent that the value of MSCC Funding’s portfolio of loan investments has been reduced as a result of conditions in the credit markets, defaulted loans, capital gains and losses on the underlying assets, prepayment or changes in interest rates, the returns on our investments in MSCC Funding could be reduced. Accordingly, our investments in MSCC Funding could be subject to up to 100% loss.
The ability to sell investments held by a Structured Subsidiary is limited.
The credit agreement governing the SPV Facility places significant restrictions on our ability, as servicer, to sell investments. As a result, there could be times or circumstances during which we are unable to sell investments or take other actions that might be in our best interests.
We may invest in derivatives or other assets that expose us to certain risks, including market risk, liquidity risk and other risks similar to those associated with the use of leverage.
We may invest in derivatives and other assets that are subject to many of the same types of risks related to the use of leverage. Derivative transactions, if any, will generally create leverage for us and involve significant risks. The primary risks related to derivative transactions include counterparty, correlation, liquidity, leverage, volatility, over-the-counter trading, operational and legal risks. In addition, a small investment in derivatives could have a large potential impact on our performance, effecting a form of investment leverage on our portfolio. In certain types of derivative transactions, we could lose the entire amount of our investment; in other types of derivative transactions the potential loss is theoretically unlimited.
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Under SEC Rule 18f-4 under the 1940 Act (“Rule 18f-4”), related to use of derivatives, short sales, reverse repurchase agreements and certain other transactions by registered investment companies, we are permitted to enter into derivatives and other transactions that create future payment or delivery obligations, including short sales, notwithstanding the senior security provision of the 1940 Act if we comply with certain value-at-risk leverage limits, a derivatives risk management program and board oversight and reporting requirements or comply with a “limited derivatives users” exception. Rule 18f-4 also permits us to enter into reverse repurchase agreements or similar financing transactions notwithstanding the senior security provision of the 1940 Act if we aggregate the amount of indebtedness associated with our reverse repurchase agreements or similar financing transactions with the aggregate amount of any other senior securities representing indebtedness when calculating the asset coverage ratios as discussed herein. In addition, we are permitted to invest in a security on a when-issued or forward-settling basis, or with a non-standard settlement cycle, and the transaction will be deemed not to involve a senior security under the 1940 Act, provided that (i) we intend to physically settle the transaction and (ii) the transaction will settle within 35 days of its trade date (the “Delayed-Settlement Securities Provision”). We may otherwise engage in such transaction as a “derivatives transaction” for purposes of compliance with the rule. Furthermore, we are permitted to enter into an unfunded commitment agreement, and such unfunded commitment agreement will not be subject to the asset coverage requirements under the 1940 Act if we reasonably believe, at the time we enter into such agreement, that we will have sufficient cash and cash equivalents to meet our obligations with respect to all such agreements as they come due. We cannot predict the effects of these requirements.
We have adopted updated policies and procedures in compliance with Rule 18f-4. We expect to qualify as a “limited derivatives user.” Future legislation or rules may modify how we treat derivatives and other financial arrangements for purposes of our compliance with the leverage limitations of the 1940 Act. Future legislation or rules, may modify how leverage is calculated under the 1940 Act and, therefore, may increase or decrease the amount of leverage currently available to us under the 1940 Act, which may be materially adverse to us and our investors.
RISKS RELATED TO OUR INVESTMENT MANAGEMENT ACTIVITIES
Our executive officers and employees, through the External Investment Manager, may manage other investment funds that operate in the same or a related line of business as we do, and may invest in such funds, which may result in significant conflicts of interest.
Our executive officers and employees, through the External Investment Manager, may manage other investment funds or assets for other clients that operate in the same or a related line of business as we do, and which funds may be invested in by us and/or our executive officers and employees. Accordingly, they may have obligations to, or pecuniary interests in, such other entities, and the fulfillment of such obligations may not be in the best interests of us or our stockholders and may create conflicts of interest.
We have made and, in the future, intend to make co-investments with other funds or clients advised by the External Investment Manager in accordance with the conditions of an exemptive relief order from the SEC permitting such co-investment transactions. The order requires, among other things, that we and the External Investment Manager consider whether each such investment opportunity is appropriate for us and the External Investment Manager’s advised clients and, if it is appropriate, to propose an allocation of the investment opportunity between such other parties. As a consequence, it may be more difficult for us to maintain or increase the size of our Investment Portfolio in the future. Although we will endeavor to allocate investment opportunities in a fair and equitable manner, including in accordance with the conditions set forth in the order issued by the SEC when relying on such order, we may face conflicts in allocating investment opportunities between us and other funds and accounts managed by the External Investment Manager. Because the External Investment Manager may receive performance-based fee compensation from other funds and accounts it manages, this may provide the Company and the External Investment Manager an incentive to allocate opportunities to other funds and accounts the External Investment Manager manages, instead of us. We and the External Investment Manager have implemented an allocation policy to ensure the equitable distribution of investment opportunities and, as a result, may be unable to participate in certain investments based upon such allocation policy.
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We, through the External Investment Manager, derive revenues from managing third-party funds pursuant to management agreements that may be terminated.
The External Investment Manager earns management fees based on the assets of the funds or other clients under management and may earn incentive fees, or a carried interest, based on the performance of the funds or accounts managed. The terms of fund investment management agreements generally give the manager of the fund and the fund itself the right to terminate the management agreement in certain circumstances. With respect to funds that are not exempt from regulation under the 1940 Act, the fund’s investment management agreement must be approved annually by (a) such fund’s board of directors or by the vote of a majority of such fund’s stockholders and (b) the majority of the independent members of such fund’s board of directors and, in certain cases, by its stockholders, as required by law. The funds’ investment management agreements can also be terminated by the majority of such fund’s stockholders. Termination of any such management agreements would reduce the fees we earn from the relevant funds or other clients through the External Investment Manager, which could have a material adverse effect on our results of operations.
RISKS RELATED TO BDCs
Failure to maintain our status as a BDC would reduce our operating flexibility.
If we do not remain a BDC, we might be regulated as a closed-end investment company under the 1940 Act, which would subject us to substantially more regulatory restrictions under the 1940 Act and correspondingly decrease our operating flexibility.
Operating under the constraints imposed on us as a BDC and RIC may hinder the achievement of our investment objectives.
The 1940 Act and the Code impose numerous constraints on the operations of BDCs and RICs that do not apply to certain of the other investment vehicles that we may compete with. BDCs are required, for example, to invest at least 70% of their total assets in certain qualifying assets, including U.S. private or thinly traded public companies, cash, cash equivalents, U.S. government securities and other high-quality debt instruments that mature in one year or less from the date of investment. Moreover, qualification for taxation as a RIC requires satisfaction of source-of-income, asset diversification and distribution requirements. Operating under these constraints may hinder our ability to take advantage of attractive investment opportunities and to achieve our investment objective. Any failure to do so could subject us to enforcement action by the SEC, cause us to fail to satisfy the requirements associated with RIC status and subject us to entity-level corporate income taxation, cause us to fail the 70% test described above or otherwise have a material adverse effect on our business, financial condition or results of operations.
Regulations governing our operation as a BDC will affect our ability to, and the way in which we, raise additional capital.
Our business will require capital to operate and grow. We may acquire such additional capital from the following sources:
Senior Securities
We may issue debt securities or preferred stock and/or borrow money from banks or other financial institutions, which we refer to collectively as senior securities. As a result of issuing senior securities, we will be exposed to additional risks, including the following:
•Prior to the approval of our stockholders, under the provisions of the 1940 Act we were permitted, as a BDC, to issue senior securities only in amounts such that our BDC asset coverage ratio, as defined in the 1940 Act, equaled at least 200% immediately after each issuance of senior securities. Following the approval of our stockholders of the reduced asset coverage requirements in Section 61(a)(2) of the 1940 Act and subject to our compliance with certain disclosure requirements, effective as of May 3, 2022, under the provisions of the 1940 Act, we are permitted to issue senior securities in amounts such that our BDC asset coverage ratio, as defined in the 1940 Act, equals at least 150% after each issuance of senior securities. If the value of our assets declines, we may be unable to satisfy this test. If that happens, we will be prohibited from issuing debt securities or preferred stock and/or borrowing money from banks or other financial institutions and may not
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be permitted to declare a dividend or make any distribution to stockholders or repurchase shares until such time as we satisfy this test.
•Any amounts that we use to service our debt or make payments on preferred stock will not be available for dividends to our common stockholders.
•It is likely that any senior securities or other indebtedness we issue will be governed by an indenture or other instrument containing covenants restricting our operating flexibility. Additionally, some of these securities or other indebtedness may be rated by rating agencies, and in obtaining a rating for such securities and other indebtedness, we may be required to abide by operating and investment guidelines that further restrict operating and financial flexibility.
•We and, indirectly, our stockholders will bear the cost of issuing and servicing such securities and other indebtedness.
•Preferred stock or any convertible or exchangeable securities that we issue in the future may have rights, preferences and privileges more favorable than those of our common stock, including separate voting rights and could delay or prevent a transaction or a change in control to the detriment of the holders of our common stock.
•Any unsecured debt issued by us would generally rank (i) pari passu with our current and future unsecured indebtedness and effectively subordinated to all of our existing and future secured indebtedness, to the extent of the value of the assets securing such indebtedness, and (ii) structurally subordinated to all existing and future indebtedness and other obligations of any of our subsidiaries.
Additional Common Stock
We are not generally able to issue and sell our common stock at a price below NAV per share. We may, however, sell our common stock, warrants, options or rights to acquire our common stock, at a price below the current NAV of the common stock if our Board of Directors determines that such sale is in the best interests of our stockholders, and our stockholders approve such sale. See Risk Factors — Risks Related to our Securities — Stockholders may incur dilution if we sell shares of our common stock in one or more offerings at prices below the then current NAV per share of our common stock or issue securities to subscribe to, convert to or purchase shares of our common stock. for a discussion related to us issuing shares of our common stock below NAV. Our stockholders have authorized us to issue warrants, options or rights to subscribe for, convert to, or purchase shares of our common stock at a price per share below the NAV per share, subject to the applicable requirements of the 1940 Act. There is no expiration date on our ability to issue such warrants, options, rights or convertible securities based on this stockholder approval. If we raise additional funds by issuing more common stock or senior securities convertible into, or exchangeable for, our common stock, the percentage ownership of our stockholders at that time would decrease, and they may experience dilution. Moreover, we can offer no assurance that we will be able to issue and sell additional equity securities in the future, on favorable terms or at all.
RISKS RELATED TO OUR SECURITIES
Investing in our securities may involve a high degree of risk.
The investments we make in accordance with our investment objective may result in a higher amount of risk than alternative investment options and a higher risk of volatility or loss of principal. Our investments in portfolio companies involve higher levels of risk, and therefore, an investment in our securities may not be suitable for someone with lower risk tolerance.
Shares of closed-end investment companies, including BDCs, may trade at a discount to their NAV.
Shares of closed-end investment companies, including BDCs, may trade at a discount to NAV. This characteristic of closed-end investment companies and BDCs is separate and distinct from the risk that our NAV per share may decline. We cannot predict whether our common stock will trade at, above or below NAV. In addition, if our common stock trades below our NAV per share, we will generally not be able to issue additional common stock at the market price unless our stockholders approve such a sale and our Board of Directors makes certain determinations. See Risk Factors — Risks Related to our Securities — Stockholders may incur dilution if we sell shares of our common stock in one or more offerings
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at prices below the then current NAV per share of our common stock or issue securities to subscribe to, convert to or purchase shares of our common stock. for a discussion related to us issuing shares of our common stock below NAV.
The market price of our securities may be volatile and fluctuate significantly.
Fluctuations in the trading prices of our securities may adversely affect the liquidity of the trading market for our securities and, if we seek to raise capital through future securities offerings, our ability to raise such capital. The market price and liquidity of the market for our securities may be significantly affected by numerous factors, some of which are beyond our control and may not be directly related to our operating performance. These factors include:
•significant volatility in the market price and trading volume of securities of BDCs or other companies in our sector, which are not necessarily related to the operating performance of these companies;
•changes in regulatory policies, accounting pronouncements or tax guidelines;
•the exclusion of BDC common stock from certain market indices, such as what happened with respect to the Russell indices and the Standard and Poor’s indices, could reduce the ability of certain investment funds to own our common stock and limit the number of owners of our common stock and otherwise negatively impact the market price of our common stock;
•inability to obtain any exemptive relief that may be required by us in the future from the SEC;
•loss of our BDC or RIC status or any of the Funds’ status as an SBIC;
•changes in our earnings or variations in our operating results;
•changes in the value of our portfolio of investments;
•any shortfall in our investment income or net investment income or any increase in losses from levels expected by investors or securities analysts;
•loss of a major funding source;
•fluctuations in interest rates;
•the operating performance of companies comparable to us;
•departure of our key personnel;
•proposed, or completed, offerings of our securities, including classes other than our common stock;
•global or national credit market changes; and
•general economic trends and other external factors.
We may not be able to pay distributions to our stockholders, our distributions may not grow over time, and a portion of distributions paid to our stockholders may be a return of capital.
We intend to pay distributions to our stockholders out of assets legally available for distribution. We cannot assure you that we will achieve investment results that will allow us to pay a specified level of cash distributions, previously projected distributions for future periods, or year-to-year increases in cash distributions. Our ability to pay distributions might be adversely affected by, among other things, the impact of one or more of the risk factors described herein. In addition, the inability to satisfy the asset coverage test applicable to us as a BDC could limit our ability to pay distributions. All distributions will be paid at the discretion of our Board of Directors and will depend on our earnings, our financial condition, maintenance of our RIC status, compliance with applicable BDC regulations, compliance with our debt covenants and such other factors as our Board of Directors may deem relevant from time to time. We cannot assure you that we will pay distributions to our stockholders in the future.
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When we make distributions, we will be required to determine the extent to which such distributions are paid out of current or accumulated taxable earnings, recognized capital gains or capital. To the extent there is a return of capital, investors will be required to reduce their basis in our stock for U.S. federal income tax purposes, which may result in higher tax liability when the shares are sold, even if they have not increased in value or have lost value. In addition, any return of capital will be net of any sales load and offering expenses associated with sales of shares of our common stock. In the future, our distributions may include a return of capital.
Stockholders may incur dilution if we sell shares of our common stock in one or more offerings at prices below the then current NAV per share of our common stock or issue securities to subscribe to, convert to or purchase shares of our common stock.
The 1940 Act prohibits us from selling shares of our common stock at a price below the current NAV per share of such stock, with certain exceptions. One such exception is prior stockholder approval of issuances below NAV provided that our Board of Directors makes certain determinations. We did not seek stockholder authorization to sell shares of our common stock below the then current NAV per share of our common stock at our 2023 Annual Meeting of Stockholders, and have not sought such authorization since 2012, because our common stock price per share had been trading significantly above the NAV per share of our common stock since 2011. We may, however, seek such authorization at future annual or special meetings of stockholders. Our stockholders have previously approved a proposal to authorize us to issue securities to subscribe to, convert to, or purchase shares of our common stock in one or more offerings. Any decision to sell shares of our common stock below the then current NAV per share of our common stock or securities to subscribe to, convert to, or purchase shares of our common stock would be subject to the determination by our Board of Directors that such issuance is in our and our stockholders’ best interests.
If we were to sell shares of our common stock below NAV per share, such sales would result in an immediate dilution to the NAV per share. This dilution would occur as a result of the sale of shares at a price below the then current NAV per share of our common stock and a proportionately greater decrease in a stockholder’s interest in our earnings and assets and voting interest in us than the increase in our assets resulting from such issuance. In addition, if we issue securities to subscribe to, convert to or purchase shares of common stock, the exercise or conversion of such securities would increase the number of outstanding shares of our common stock. Any such exercise would be dilutive on the voting power of existing stockholders and could be dilutive with regard to dividends and our NAV, and other economic aspects of the common stock.
Because the number of shares of common stock that could be so issued and the timing of any issuance is not currently known, the actual dilutive effect cannot be predicted; however, the example below illustrates the effect of dilution to existing stockholders resulting from the sale of common stock at prices below the NAV of such shares.
Illustration: Example of Dilutive Effect of the Issuance of Shares Below NAV. Assume that Company XYZ has 1,000,000 total shares outstanding, $15,000,000 in total assets and $5,000,000 in total liabilities. The NAV per share of the common stock of Company XYZ is $10.00. The following table illustrates the reduction to NAV and the dilution experienced by Stockholder A following the sale of 40,000 shares of the common stock of Company XYZ at $9.50 per share, a price below its NAV per share.
Prior to Sale
Below NAV
Following Sale
Below NAV
Percentage
Change
Reduction to NAV
Total Shares Outstanding1,000,0001,040,0004.0%
NAV per share$10.00$9.98(0.2)%
Dilution to Existing Stockholder
Shares Held by Stockholder A10,00010,000(1)0.0%
Percentage Held by Stockholder A1.00%0.96%(4.0)%
Total Interest of Stockholder A in NAV$100,000$99,808(0.2)%
______________________
(1)Assumes that Stockholder A does not purchase additional shares in the sale of shares below NAV.
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Provisions of the Maryland General Corporation Law and our articles of incorporation and bylaws could deter takeover attempts and have an adverse impact on the price of our common stock.
The Maryland General Corporation Law and our articles of incorporation and bylaws contain provisions that may have the effect of discouraging, delaying or making difficult a change in control of our company or the removal of our incumbent directors. The existence of these provisions, among others, may have a negative impact on the price of our common stock and may discourage third-party bids for ownership of our company. These provisions may prevent any premiums being offered to you for our common stock.
We may in the future determine to issue preferred stock, which could adversely affect the market value of our common stock.
The issuance of shares of preferred stock with dividend or conversion rights, liquidation preferences or other economic terms favorable to the holders of preferred stock could adversely affect the market price for our common stock by making an investment in the common stock less attractive. In addition, the dividends on any preferred stock we issue must be cumulative. Payment of dividends and repayment of the liquidation preference of preferred stock must take preference over any dividends or other payments to our common stockholders, and holders of preferred stock are not subject to any of our expenses or losses and are not entitled to participate in any income or appreciation in excess of their stated preference (other than convertible preferred stock that converts into common stock). In addition, under the 1940 Act, preferred stock constitutes a “senior security” for purposes of the asset coverage test.
RISKS RELATED TO OUR SBIC FUNDS
We, through the Funds, issue debt securities guaranteed by the SBA and sold in the capital markets. As a result of its guarantee of the debt securities, the SBA has fixed dollar claims on the assets of the Funds that are superior to the claims of our securities holders.
We, through the Funds, have outstanding SBIC debentures guaranteed by the SBA. The debentures guaranteed by the SBA have a maturity of ten years from the date of issuance and require semiannual payments of interest. We will need to generate sufficient cash flow to make required interest payments on the debentures. If we are unable to meet the financial obligations under the debentures, the SBA, as a creditor, will have a superior claim to the assets of the Funds over our securities holders in the event we liquidate or the SBA exercises its remedies under such debentures as the result of a default by us.
The Funds are licensed by the SBA, and therefore subject to SBIC regulations.
The Funds, our wholly-owned subsidiaries, are licensed to act as SBICs and are regulated by the SBA. The SBA also places certain limitations on the financing terms of investments by SBICs in portfolio companies and prohibits SBICs from providing funds for certain purposes or to businesses in a few prohibited industries. Compliance with SBA requirements may cause the Funds to forego attractive investment opportunities that are not permitted under SBIC regulations.
Further, the SBIC regulations require, among other things, that a licensed SBIC be periodically examined by the SBA and audited by an independent auditor, in each case to determine the SBIC’s compliance with the relevant SBIC regulations. The SBA prohibits, without prior SBA approval, a “change of control” of an SBIC or transfers that would result in any person (or a group of persons acting in concert) owning 10% or more of a class of capital stock of a licensed SBIC. If the Funds fail to comply with applicable SBIC regulations, the SBA could, depending on the severity of the violation, limit or prohibit their use of SBIC debentures, declare outstanding SBIC debentures immediately due and payable, and/or limit them from making new investments. In addition, the SBA can revoke or suspend a license for willful or repeated violation of, or willful or repeated failure to observe, any provision of the Small Business Investment Act of 1958 or any rule or regulation promulgated thereunder. Such actions by the SBA would, in turn, negatively affect us.
Each of the Funds, as an SBIC, may be unable to make distributions to us that will enable us to meet or maintain RIC status, which could result in the imposition of an entity-level tax.
In order for us to continue to qualify for RIC tax treatment and to minimize corporate-level U.S. federal taxes, we will be required to distribute substantially all of our net ordinary taxable income and net capital gain income, including taxable income from certain of our subsidiaries, which includes the income from the Funds. We will be partially dependent
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on the Funds for cash distributions to enable us to meet the RIC distribution requirements. The Funds may be limited by SBIC regulations from making certain distributions to us that may be necessary to enable us to maintain our status as a RIC. We may have to request a waiver of the SBA’s restrictions for the Funds to make certain distributions to maintain our eligibility for RIC status. We cannot assure you that the SBA will grant such waiver and if the Funds are unable to obtain a waiver, compliance with the SBIC regulations may result in loss of RIC tax treatment and a consequent imposition of an entity-level tax on us.
FEDERAL INCOME TAX RISKS
We will be subject to corporate-level U.S. federal income tax if we are unable to qualify as a RIC under Subchapter M of the Code.
To maintain RIC tax treatment under the Code, we must meet the following annual distribution, income source and asset diversification requirements:
•The Annual Distribution Requirement for a RIC will be satisfied if we distribute to our stockholders on an annual basis at least 90% of our net ordinary taxable income and realized net short-term capital gains in excess of realized net long-term capital losses, if any. Depending on the level of taxable income earned in a tax year, we may choose to carry forward taxable income in excess of current year distributions into the next tax year and pay a 4% U.S. federal excise tax on such income. Any such carryover taxable income must be distributed through a dividend declared prior to filing the final tax return related to the year which generated such taxable income. For more information regarding tax treatment, see Business — Regulation — Taxation as a Regulated Investment Company. Because we use debt financing, we are subject to certain asset coverage ratio requirements under the 1940 Act and are (and may in the future become) subject to certain financial covenants under loan and credit agreements that could, under certain circumstances, restrict us from making distributions necessary to satisfy the distribution requirement. In addition, because we receive non-cash sources of income such as PIK interest which involves us recognizing taxable income without receiving the cash representing such income, we may have difficulty meeting the distribution requirement. If we are unable to obtain cash from other sources, we could fail to qualify for RIC tax treatment and thus become subject to corporate-level U.S. federal income tax.
•The source-of-income requirement will be satisfied if we obtain at least 90% of our gross income for each year from distributions, interest, gains from the sale of stock or securities or similar sources.
•The asset diversification requirement will be satisfied if we meet certain asset diversification requirements at the end of each quarter of our taxable year. To satisfy this requirement, at least 50% of the value of our assets must consist of cash, cash equivalents, U.S. government securities, securities of other RICs, and other acceptable securities; and no more than 25% of the value of our assets can be invested in the securities, other than U.S. government securities or securities of other RICs, (i) of one issuer, (ii) of two or more issuers that are controlled, as determined under applicable Code rules, by us and that are engaged in the same or similar or related trades or businesses or (iii) of certain “qualified publicly traded partnerships.”
Failure to meet these requirements may result in our having to dispose of certain investments quickly in order to prevent the loss of RIC status. Because most of our investments are in privately held companies, and therefore illiquid, any such dispositions could be made at disadvantageous prices and could result in substantial losses. Moreover, if we fail to maintain RIC tax treatment for any reason and are subject to corporate income tax, the resulting corporate taxes could substantially reduce our net assets, the amount of income available for distribution and the amount of our distributions.
We may have difficulty paying the distributions required to maintain RIC tax treatment under the Code if we recognize income before or without receiving cash representing such income.
We will include in income certain amounts that we have not yet received in cash, such as: (i) amortization of original issue discount, which may arise if we receive warrants in connection with the origination of a loan such that ascribing a value to the warrants creates original issue discount in the debt instrument, if we invest in a debt investment at a discount to the par value of the debt security or possibly in other circumstances; (ii) contractual payment-in-kind, or PIK, interest, which represents contractual interest added to the loan balance and due at the end of the loan term; (iii) contractual preferred dividends, which represents contractual dividends added to the preferred stock and due at the end of the preferred stock term, subject to adequate profitability at the portfolio company; or (iv) amortization of market discount, which is
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associated with loans purchased in the secondary market at a discount to par value. Such amortization of original issue discounts, increases in loan balances as a result of contractual PIK arrangements, cumulative preferred dividends, or amortization of market discount will be included in income before we receive the corresponding cash payments. We also may be required to include in income certain other amounts before we receive such amounts in cash. Investments structured with these features may represent a higher level of credit risk compared to investments generating income which must be paid in cash on a current basis.
Since, in certain cases, we may recognize taxable income before or without receiving cash representing such income, we may have difficulty meeting the Annual Distribution Requirement necessary to maintain RIC tax treatment under the Code. Accordingly, we may have to sell some of our investments at times and/or at prices we would not consider advantageous, raise additional debt or equity capital or forgo new investment opportunities for this purpose. If we are not able to obtain cash from other sources, we may fail to qualify for RIC tax treatment and thus become subject to corporate-level U.S. federal income tax. For additional discussion regarding the tax implications of a RIC, please see Item 1. Business — Regulation — Taxation as a Regulated Investment Company.
We may in the future choose to pay dividends in our own stock, in which case you may be required to pay tax in excess of the cash you receive.
We may distribute taxable dividends that are payable in part in our stock. Under certain applicable provisions of the Code and the Treasury regulations, distributions payable by us in cash or in shares of stock (at the stockholders’ election) would satisfy the Annual Distribution Requirement. The Internal Revenue Service has issued guidance providing that a dividend payable in stock or in cash at the election of the stockholders will be treated as a taxable dividend eligible for the dividends paid deduction provided at least 20% of the total distribution is payable in cash and certain other requirements are satisfied. Taxable stockholders receiving such dividends will be required to include the full amount of the dividend as ordinary income (or as long-term capital gain to the extent such dividend is properly reported as a capital gain dividend) to the extent of our current and accumulated earnings and profits for U.S. federal income tax purposes. As a result, a U.S. stockholder may be required to pay tax with respect to such dividends in excess of any cash received. If a U.S. stockholder sells the stock it receives as a dividend in order to pay this tax, the sales proceeds may be less than the amount included in income with respect to the dividend, depending on the market price of our stock at the time of the sale. Furthermore, with respect to non-U.S. stockholders, we may be required to withhold U.S. tax with respect to such dividends, including in respect of all or a portion of such dividend that is payable in stock. In addition, if a significant number of our stockholders determine to sell shares of our stock in order to pay taxes owed on dividends, it may put downward pressure on the trading price of our stock.
Stockholders may have current tax liability on dividends they elect to reinvest in our common stock but would not receive cash from such dividends to pay such tax liability.
If stockholders participate in our dividend reinvestment plan, they will be deemed to have received, and for federal income tax purposes will be taxed on, the amount reinvested in our common stock to the extent the amount reinvested was not a tax-free return of capital. As a result, unless a stockholder is a tax-exempt entity, it may have to use funds from other sources to pay its tax liability on the value of the dividend that they have elected to have reinvested in our common stock.
Legislative or regulatory tax changes could adversely affect our stockholders.
At any time, the federal income tax laws governing RICs or the administrative interpretations of those laws or regulations may be amended. Any new laws, regulations or interpretations may take effect retroactively and could adversely affect the taxation of us or our stockholders. Therefore, changes in tax laws, regulations or administrative interpretations or any amendments thereto could diminish the value of an investment in our shares or the value or the resale potential of our investments. If we do not comply with applicable laws and regulations, we could lose any licenses that we then hold for the conduct of our business and may be subject to civil fines and criminal penalties.
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GENERAL RISK FACTORS
Events outside of our control, including public health crises, supply chain disruptions and inflation, could negatively affect our portfolio companies and the results of our operations.
Periods of market volatility could occur in response to pandemics or other events outside of our control. We and the portfolio companies in which we invest in could be affected by force majeure events (i.e., events beyond the control of the party claiming that the event has occurred, such as acts of God, fire, flood, earthquakes, outbreaks of an infectious disease, pandemic or any other serious public health concern, war, terrorism, labor strikes, major plant breakdowns, pipeline or electricity line ruptures, failure of technology, defective design and construction, accidents, demographic changes, government macroeconomic policies, social instability, etc.). Some force majeure events could adversely affect the ability of a party (including us, a portfolio company or a counterparty to us) to perform its obligations until it is able to remedy the force majeure event. In addition, force majeure events, such as the cessation of the operation of equipment for repair or upgrade, could similarly lead to the unavailability of essential equipment and technologies. These risks could, among other effects, adversely impact the cash flows available from a portfolio company, cause personal injury or loss of life, including to an officer, director or a member of our investment team, damage property, or instigate disruptions of service. In addition, the cost to a portfolio company or us of repairing or replacing damaged assets resulting from such force majeure event could be considerable.
It will not be possible to insure against all such events, and insurance proceeds received, if any, could be inadequate to completely or even partially cover any loss of revenues or investments, any increases in operating and maintenance expenses, or any replacements or rehabilitation of property. Certain events causing catastrophic loss could be either uninsurable, or insurable at such high rates as to adversely impact us or portfolio companies, as applicable. Force majeure events that are incapable of or are too costly to cure could have permanent adverse effects. Certain force majeure events (such as war or an outbreak of an infectious disease) could have a broader negative impact on the world economy and international business activity generally, or in any of the countries in which we invest or our portfolio companies operate specifically. Such force majeure events could result in or coincide with: increased volatility in the global securities, derivatives and currency markets; a decrease in the reliability of market prices and difficulty in valuing assets; greater fluctuations in currency exchange rates; increased risk of default (by both government and private issuers); further social, economic, and political instability; nationalization of private enterprise; greater governmental involvement in the economy or in social factors that impact the economy; less governmental regulation and supervision of the securities markets and market participants and decreased monitoring of the markets by governments or self-regulatory organizations and reduced enforcement of regulations; limited, or limitations on, the activities of investors in such markets; controls or restrictions on foreign investment, capital controls and limitations on repatriation of invested capital; inability to purchase and sell investments or otherwise settle security or derivative transactions (i.e., a market freeze); unavailability of currency hedging techniques; substantial, and in some periods extremely high, rates of inflation, which can last many years and have substantial negative effects on credit and securities markets as well as the economy as a whole; recessions; and difficulties in obtaining and/or enforcing legal judgments.
We are currently operating in a period of capital markets disruption and economic uncertainty, and capital markets may experience periods of disruption and instability in the future. These market conditions may materially and adversely affect debt and equity capital markets in the United States and abroad, which may have a negative impact on our business and operations.
The success of our activities is affected by general economic and market conditions, including, among others, interest rates, availability of credit, inflation rates, economic uncertainty, changes in laws, and trade barriers. These factors could affect the level and volatility of securities prices and the liquidity of our investments. Volatility or illiquidity could impair our profitability or result in losses. These factors also could adversely affect the availability or cost of our leverage, which would result in lower returns.
These disruptions in the capital markets have increased the spread between the yields realized on risk-free and higher risk securities, resulting in illiquidity in parts of the capital markets. Such disruptions could adversely affect our business, financial condition, results of operations and cash flows, and future market disruptions and/or illiquidity could negatively impact us. These unfavorable economic conditions could increase our funding costs and limit our access to the capital markets, and could result in a decision by lenders not to extend credit to us in the future. These events could limit our investments, our ability to grow and could negatively impact our operating results and the fair values of our debt and equity investments.
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Failure to comply with applicable laws or regulations and changes in laws or regulations governing our operations may adversely affect our business or cause us to alter our business strategy.
We, the Funds, and our portfolio companies are subject to applicable local, state and federal laws and regulations. Failure to comply with any applicable local, state or federal law or regulation could negatively impact our reputation and our business results. New legislation may also be enacted or new interpretations, rulings or regulations could be adopted, including those governing the types of investments we are permitted to make, any of which could harm us and our stockholders, potentially with retroactive effect. Additionally, any changes to the laws and regulations governing our operations relating to permitted investments may cause us to alter our investment strategy in order to avail ourselves of new or different opportunities. Such changes could result in material differences to the strategies and plans set forth herein and may result in our investment focus shifting from the areas of expertise of our investment team to other types of investments in which our investment team may have less expertise or little or no experience. Thus, any such changes, if they occur, could have a material adverse effect on our results of operations and the value of your investment.
We may experience fluctuations in our operating results.
We could experience fluctuations in our operating results due to a number of factors, including our ability or inability to make investments in companies that meet our investment criteria, the interest rate payable on the debt securities we acquire, the level of portfolio dividend and fee income, the level of our expenses, variations in and the timing of the recognition of realized and unrealized gains or losses, the degree to which we encounter competition in our markets and general economic conditions. As a result of these factors, operating results for any period should not be relied upon as being indicative of performance in future periods.
Technological innovations and industry disruptions may negatively impact us.
Technological innovations have disrupted traditional approaches in multiple industries and can permit younger companies to achieve success and in the process disrupt markets and market practices. We can provide no assurance that new businesses and approaches will not be created that would compete with us and/or our portfolio companies or alter the market practices in which we have been designed to function within and on which we depend on for our investment return. New approaches could damage our investments, disrupt the market in which we operate and subject us to increased competition, which could materially and adversely affect our business, financial condition and results of investments.
We are highly dependent on information systems and systems failures could significantly disrupt our business, which may, in turn, negatively affect the market price of our common stock and our ability to pay dividends.
Our business is highly dependent on our and third parties’ communications and information systems. Any failure or interruption of those systems, including as a result of the termination of an agreement with any third-party service providers, could cause delays or other problems in our activities. Our financial, accounting, data processing, backup or other operating systems and facilities may fail to operate properly or become disabled or damaged as a result of a number of factors including events that are wholly or partially beyond our control and adversely affect our business. There could be:
•sudden electrical or telecommunications outages;
•natural disasters such as earthquakes, tornadoes and hurricanes;
•disease pandemics;
•events arising from local or larger scale political or social matters, including terrorist acts; and
•cyber attacks, including software viruses, ransomware, malware and phishing and vishing schemes.
The failure in cybersecurity systems, as well as the occurrence of events unanticipated in our disaster recovery systems and management continuity planning could impair our ability to conduct business effectively.
The occurrence of a disaster such as a cyber-attack, a natural catastrophe, an industrial accident, a terrorist attack or war, events unanticipated in our disaster recovery systems, or a support failure from external providers, could have an adverse effect on our ability to conduct business and on our results of operations and financial condition, particularly if
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those events affect our computer-based data processing, transmission, storage, and retrieval systems or destroy data. If a significant number of our managers were unavailable in the event of a disaster, our ability to effectively conduct our business could be severely compromised.
We depend heavily upon computer systems to perform necessary business functions. Despite our implementation of a variety of security measures, our computer systems could be subject to cyber-attacks and unauthorized access, such as physical and electronic break-ins or unauthorized tampering. Like other companies, we may experience threats to our data and systems, including malware and computer virus attacks, unauthorized access, system failures and disruptions. If one or more of these events occurs, it could potentially jeopardize the confidential, proprietary and other information processed and stored in, and transmitted through, our computer systems and networks, or otherwise cause interruptions or malfunctions in our operations, which could result in damage to our reputation, financial losses, litigation, increased costs, regulatory penalties and/or customer dissatisfaction or loss.
Third parties with which we do business (including, but not limited to, service providers, such as accountants, custodians, transfer agents and administrators, and the issuers of securities in which we invest) may also be sources or targets of cybersecurity or other technological risks. While we engage in actions to reduce our exposure resulting from outsourcing, we cannot control the cybersecurity plans and systems put in place by these third parties and ongoing threats may result in unauthorized access, loss, exposure or destruction of data, or other cybersecurity incidents, with increased costs and other consequences, including those described above. Privacy and information security laws and regulation changes, and compliance with those changes, may also result in cost increases due to system changes and the development of new administrative processes.
Item 1B. Unresolved Staff Comments
None.
Item 1C. Cybersecurity
The Company maintains, and routinely reviews and evaluates its information technology (“IT”) and cybersecurity policies, practices and procedures (our “Cybersecurity Program”). The Cybersecurity Program has various policies and procedures including a Cyber Incident Response Plan as part of the Company’s Crisis Management Plan. Our Cybersecurity Program is administered by our IT Manager, who is managed on a day to day basis by our General Counsel and Chief Compliance Officer and overseen by our IT Steering Committee consisting of our Chief Executive Officer, our Chief Financial Officer and Chief Operating Officer and our General Counsel and Chief Compliance Officer. Our General Counsel and Chief Compliance Officer also serves as the crisis response team leader in connection with any material cybersecurity incident under the Cyber Incident Response Plan. We also utilize the services of IT and cybersecurity advisers, consultants and experts in the evaluation and periodic testing of our IT and cybersecurity systems, to recommend improvements to our Cybersecurity Program and in connection with any cybersecurity incident. We believe that the individuals involved in our Cybersecurity Program possess the necessary skills, experience and backgrounds that, when combined with the resources of our external IT and cybersecurity advisers, consultants and experts, are sufficient to manage our Cybersecurity Program.
As part of our overall risk management process, our management engages at least annually in an enterprise risk management review and evaluation, during which management reviews the principal risks relating to our business and operations. Included in this process is a review and evaluation of our risks relating to our Cybersecurity Program. Additionally, as part of our Rule 38a-1 compliance program, we review at least annually the compliance policies and procedures of our key service providers, including documentation discussing each service providers’ information security and privacy controls. Any failure in our or our key service providers’ cybersecurity systems could have a material impact on our operating results. See Item 1A. Risk Factors — General Risk Factors — The failure in cybersecurity systems, as well as the occurrence of events unanticipated in our disaster recovery systems and management continuity planning could impair our ability to conduct business effectively.
Our Board as a whole has responsibility for the Company’s risk oversight, with reviews of certain areas being conducted by the relevant Board committees that report on their deliberations to the full Board. The oversight responsibility of the Board and its committees is enabled by management reporting processes that are designed to provide visibility to the Board about the identification, assessment and management of critical risks and management’s risk mitigation strategies. Areas of focus include competitive, economic, operational, financial (accounting, credit, liquidity and tax), legal, regulatory, compliance and other risks.
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Oversight of risks relating to IT and cybersecurity has been delegated by our Board to its Audit Committee. The Audit Committee includes members of the Board who, in addition to each being designated as an “audit committee financial expert,” possess backgrounds and experience which we believe enable them to provide effective oversight of our IT and cybersecurity risks. Our management routinely reports to the Audit Committee on the status of the Company’s Cybersecurity Program at the Audit Committee’s quarterly meetings. Routine reports generally detail any testing, observations or developments concerning the Cybersecurity Program that occurred during the prior quarter. The results of periodic testing related to the Cybersecurity Program are also described in the Chief Compliance Officer’s annual report to the Board, provided pursuant to Rule 38a-1 under the 1940 Act. The crisis response team leader also collaborates with the Audit Committee chair to ensure that the Board is apprised of any material cybersecurity incident and consults with the Audit Committee chair in connection with any material decisions or actions related thereto.
Item 2. Properties
We do not own any real estate or other physical properties materially important to our operations. Currently, we lease office space in Houston, Texas for our corporate headquarters.
Item 3. Legal Proceedings
We may, from time to time, be involved in litigation arising out of our operations in the normal course of business or otherwise. Furthermore, third parties may seek to impose liability on us in connection with the activities of our portfolio companies. While the outcome of any current legal proceedings cannot at this time be predicted with certainty, we do not expect any current matters will materially affect our financial condition or results of operations; however, there can be no assurance whether any pending legal proceedings will have a material adverse effect on our financial condition or results of operations in any future reporting period.
Item 4. Mine Safety Disclosures
Not applicable.
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PART II
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
COMMON STOCK AND HOLDERS
Our common stock is traded on the NYSE under the symbol “MAIN.”
The following table sets forth, for the periods indicated, the range of high and low closing prices of our common stock as reported on the NYSE, and the sales price as a percentage of the NAV per share of our common stock.
Price RangePremium of
High Sales
Price to		Premium of
Low Sales
Price to
NAV(1)HighLowNAV(2)NAV(2)
Year ending December 31, 2024
First Quarter (through February 21, 2024)
*$45.98 $43.45 **
Year ended December 31, 2023
Fourth Quarter$29.20 $43.80 $37.87 50 %30 %
Third Quarter28.33 42.73 39.61 51 %40 %
Second Quarter27.69 41.17 38.10 49 %38 %
First Quarter27.23 42.49 36.87 56 %35 %
Year ended December 31, 2022
Fourth Quarter$26.86 $39.50 $32.57 47 %21 %
Third Quarter25.94 45.28 33.23 75 %28 %
Second Quarter25.37 43.65 34.59 72 %36 %
First Quarter25.89 44.88 39.94 73 %54 %
______________________
*NAV has not yet been determined for the first quarter of 2024.
(1)NAV is determined as of the last day in the relevant quarter and therefore may not reflect the NAV per share on the date of the high and low closing prices. The net asset values shown are based on outstanding shares at the end of each period.
(2)Calculated for each quarter as (i) NAV subtracted from the respective high or low share price divided by (ii) NAV.
On February 21, 2024, the last sale price of our common stock on the NYSE was $44.88 per share, and there were 404 holders of record of the common stock which did not include stockholders for whom shares are held in “nominee” or “street name.” The NAV per share of our common stock on December 31, 2023 was $29.20, and the premium of the February 21, 2024 closing price of our common stock was 54% to this NAV per share.
Shares of BDCs may trade at a market price that is less than the value of the net assets attributable to those shares. The possibility that our shares of common stock will trade at a discount from NAV per share or at premiums that are unsustainable over the long term are separate and distinct from the risk that our NAV per share will decrease. It is not possible to predict whether our common stock will trade at, above, or below NAV per share. Since our IPO in October 2007, our shares of common stock have traded at prices both less than and exceeding our NAV per share.
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DIVIDEND/DISTRIBUTION POLICY
We currently intend to distribute dividends or make distributions to our stockholders out of assets legally available for distribution. Our dividends and other distributions, if any, will be determined by our Board of Directors from time to time. Our ability to declare dividends depends on our earnings, our overall financial condition (including our liquidity position), maintenance of our RIC status and such other factors as our Board of Directors may deem relevant from time to time. When we make distributions, we are required to determine the extent to which such distributions are paid out of current or accumulated earnings, recognized capital gains or capital. To the extent there is a return of capital (a distribution of the stockholders’ invested capital), investors will be required to reduce their basis in our stock for federal tax purposes. In the future, our distributions may include a return of capital.
We have adopted a dividend reinvestment and direct stock purchase plan (the “Plan”). The dividend reinvestment feature of the Plan (the “DRIP”) provides for the reinvestment of dividends on behalf of our stockholders, unless a stockholder has elected to receive dividends in cash. As a result, if we declare a cash dividend, our stockholders who have not “opted out” of the DRIP by the dividend record date will have their cash dividend automatically reinvested into additional shares of our common stock. The share requirements of the DRIP may be satisfied through the issuance of new shares of common stock or through open market purchases of common stock by the DRIP plan administrator. Newly issued shares will be valued based upon the final closing price of our common stock on a valuation date determined for each dividend by our Board of Directors. Shares purchased in the open market to satisfy the DRIP requirements will be valued based upon the average price of the applicable shares purchased by the DRIP plan administrator, before any associated brokerage or other costs. Our DRIP is administered by our transfer agent on behalf of our record holders and participating brokerage firms. Brokerage firms and other financial intermediaries may decide not to participate in our DRIP but may provide a similar dividend reinvestment plan for their clients.
SALES OF UNREGISTERED SECURITIES
During the year ended December 31, 2023, we issued a total of 765,427 shares of our common stock under the DRIP. These issuances were not subject to the registration requirements of the Securities Act of 1933, as amended. The aggregate value of the shares of our common stock issued under the DRIP during 2023 was $30.7 million.
PURCHASES OF EQUITY SECURITIES
Upon vesting of restricted stock awarded pursuant to our employee equity compensation plan, shares may be withheld to meet applicable tax withholding requirements. Any withheld shares are treated as common stock purchases by the Company in our consolidated financial statements as they reduce the number of shares received by employees upon vesting (see “Purchase of vested stock for employee payroll tax withholding” in the consolidated statements of changes in net assets for share amounts withheld).

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STOCK PERFORMANCE GRAPH
The following graph compares the stockholder return on our common stock from October 5, 2007 to December 31, 2023 with the S&P 500 Index, the Russell 2000 Index, the KBW Regional Bank Index and the S&P BDC Index. This comparison assumes $100.00 was invested on October 5, 2007 (the date our common stock began to trade in connection with our initial public offering) in our common stock and in the comparison groups and assumes the reinvestment of all cash dividends prior to any tax effect. The comparisons in the graph below are based on historical data and are not intended to forecast the possible future performance of our common stock.
COMPARISON OF STOCKHOLDER RETURN(1)
Among Main Street Capital Corporation, the S&P 500 Index, the Russell 2000 Index, the KBW
Regional Bank Index(2) and the S&P BDC Index(3)
(For the Period October 5, 2007 to December 31, 2023)
2024-02-06_17-09-26 (Total Return No COVID).jpg
______________________
(1)Total return includes reinvestment of dividends through December 31, 2023.
(2)The KBW Nasdaq Regional Banking Index is a modified market capitalization weighted index designed to track the performance of U.S. regional banks or thrifts that are publicly traded in the U.S.
(3)The S&P BDC Index measures the performance of Business Development Companies that trade on major U.S. exchanges; constituents are float-adjusted market capitalization (FMC) weighted, subject to a single constituent weight cap of 10%.
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Item 6. [Reserved.]
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Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following discussion should be read in conjunction with our consolidated financial statements and the notes thereto included elsewhere in this Annual Report on Form 10-K.
Statements we make in the following discussion which express a belief, expectation or intention, as well as those that are not historical fact, are forward-looking statements that are subject to risks, uncertainties and assumptions. Our actual results, performance or achievements, or industry results, could differ materially from those we express in the following discussion as a result of a variety of factors, including the risks and uncertainties we have referred to under the headings “Cautionary Statement Concerning Forward-Looking Statements” and “Risk Factors” in this report.
INVESTMENT PORTFOLIO SUMMARY
The following tables provide a summary of our investments in the LMM, Private Loan and Middle Market portfolios as of December 31, 2023 and 2022 (this information excludes Other Portfolio investments, short-term portfolio investments and the External Investment Manager which are discussed further below):
As of December 31, 2023
LMM (a)Private LoanMiddle Market
(dollars in millions)
Number of portfolio companies80 87 23 
Fair value$2,273.0 $1,453.5 $243.7 
Cost$1,782.9 $1,470.1 $294.4 
Debt investments as a % of portfolio (at cost)72.0 %94.7 %91.4 %
Equity investments as a % of portfolio (at cost)28.0 %5.3 %8.6 %
% of debt investments at cost secured by first priority lien 99.2 %100.0 %99.1 %
Weighted-average annual effective yield (b)13.0 %12.9 %12.5 %
Average EBITDA (c)$8.2 $27.2 $64.2 
______________________
(a)At December 31, 2023, we had equity ownership in all of our LMM portfolio companies, and the average fully diluted equity ownership in those portfolio companies was 40%.
(b)The weighted-average annual effective yields were computed using the effective interest rates for all debt investments at cost as of December 31, 2023, including amortization of deferred debt origination fees and accretion of original issue discount but excluding fees payable upon repayment of the debt instruments and any debt investments on non-accrual status. The weighted-average annual effective yield on our debt portfolio as of December 31, 2023 including debt investments on non-accrual status was 12.9% for our LMM portfolio, 12.5% for our Private Loan portfolio and 10.8% for our Middle Market portfolio. The weighted-average annual effective yield is not reflective of what an investor in shares of our common stock will realize on its investment because it does not reflect changes in the market value of our stock, our utilization of debt capital in our capital structure, our expenses or any sales load paid by an investor.
(c)The average EBITDA is calculated using a simple average for the LMM portfolio and a weighted-average for the Private Loan and Middle Market portfolios. These calculations exclude certain portfolio companies, including two LMM portfolio companies and two Private Loan portfolio companies, as EBITDA is not a meaningful valuation metric for our investments in these portfolio companies, and those portfolio companies whose primary purpose is to own real estate.
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As of December 31, 2022
LMM (a)Private LoanMiddle Market
(dollars in millions)
Number of portfolio companies78 85 31 
Fair value$2,060.5 $1,471.5 $329.1 
Cost$1,719.9 $1,500.3 $401.7 
Debt investments as a % of portfolio (at cost)73.7 %97.1 %93.8 %
Equity investments as a % of portfolio (at cost)26.3 %2.9 %6.2 %
% of debt investments at cost secured by first priority lien 99.1 %99.6 %98.8 %
Weighted-average annual effective yield (b)12.3 %11.6 %11.0 %
Average EBITDA (c)$8.0 $38.1 $68.7 
______________________
(a)At December 31, 2022, we had equity ownership in all of our LMM portfolio companies, and the average fully diluted equity ownership in those portfolio companies was 41%.
(b)The weighted-average annual effective yields were computed using the effective interest rates for all debt investments at cost as of December 31, 2022, including amortization of deferred debt origination fees and accretion of original issue discount but excluding fees payable upon repayment of the debt instruments and any debt investments on non-accrual status. The weighted-average annual effective yield on our debt portfolio as of December 31, 2022 including debt investments on non-accrual status was 11.6% for our LMM portfolio, 11.2% for our Private Loan portfolio and 10.3% for our Middle Market portfolio. The weighted-average annual effective yield is not reflective of what an investor in shares of our common stock will realize on its investment because it does not reflect changes in the market value of our stock, our utilization of debt capital in our capital structure, our expenses or any sales load paid by an investor.
(c)The average EBITDA is calculated using a simple average for the LMM portfolio and a weighted-average for the Private Loan and Middle Market portfolios. These calculations exclude certain portfolio companies, including three LMM portfolio companies and two Private Loan portfolio companies, as EBITDA is not a meaningful valuation metric for our investments in these portfolio companies, and those portfolio companies whose primary purpose is to own real estate.
For the years ended December 31, 2023 and 2022, we achieved a total return on investments of 16.3% and 11.1%, respectively. Total return on investments is calculated using the interest, dividend and fee income, as well as the realized and unrealized change in fair value of the Investment Portfolio for the specified period. Our total return on investments is not reflective of what an investor in shares of our common stock will realize on its investment because it does not reflect changes in the market value of our stock, our utilization of debt capital in our capital structure, our expenses or any sales load paid by an investor.
As of December 31, 2023, we had Other Portfolio investments in 15 entities, collectively totaling $142.0 million in fair value and $149.1 million in cost basis and which comprised 3.3% and 4.0% of our Investment Portfolio at fair value and cost, respectively. As of December 31, 2022, we had Other Portfolio investments in 14 entities, collectively totaling $116.3 million in fair value and $120.4 million in cost basis and which comprised 2.8% and 3.2% of our Investment Portfolio at fair value and cost, respectively.
As previously discussed, the External Investment Manager is a wholly-owned subsidiary that is treated as a portfolio investment. As of December 31, 2023, this investment had a fair value of $174.1 million and a cost basis of $29.5 million, which comprised 4.1% and 0.8% of our Investment Portfolio at fair value and cost, respectively. As of December 31, 2022, this investment had a fair value of $122.9 million and a cost basis of $29.5 million, which comprised 3.0% and 0.8% of our Investment Portfolio at fair value and cost, respectively.
CRITICAL ACCOUNTING POLICIES
The preparation of financial statements and related disclosures in conformity with generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and contingent assets and liabilities at the date of the financial statements, and revenues and expenses
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during the periods reported. Actual results could materially differ from those estimates. Critical accounting policies are those that require management to make subjective or complex judgments about the effect of matters that are inherently uncertain and may change in subsequent periods. Changes that may be required in the underlying assumptions or estimates in these areas could have a material impact on our current and future financial condition and results of operations.
Management has discussed the development and selection of each critical accounting policy and estimate with the Audit Committee of the Board of Directors. Our critical accounting policies and estimates include the Investment Portfolio Valuation and Revenue Recognition policies described below. Our significant accounting policies are described in greater detail in Note B — Summary of Significant Accounting Policies to the consolidated financial statements included in Item 8. Consolidated Financial Statements and Supplementary Data of this Annual Report on Form 10-K.
Investment Portfolio Valuation
The most significant determination inherent in the preparation of our consolidated financial statements is the valuation of our Investment Portfolio and the related amounts of unrealized appreciation and depreciation. We consider this determination to be a critical accounting estimate, given the significant judgments and subjective measurements required. As of December 31, 2023 and 2022, our Investment Portfolio valued at fair value represented 96% and 97% of our total assets, respectively. We are required to report our investments at fair value. We follow the provisions of FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”). ASC 820 defines fair value, establishes a framework for measuring fair value, establishes a fair value hierarchy based on the quality of inputs used to measure fair value and enhances disclosure requirements for fair value measurements. ASC 820 requires us to assume that the portfolio investment is to be sold in the principal market to independent market participants, which may be a hypothetical market. Market participants are defined as buyers and sellers in the principal market that are independent, knowledgeable and willing and able to transact. See Note B.1. — Summary of Significant Accounting Policies — Valuation of the Investment Portfolio included in Item 8. Consolidated Financial Statements and Supplementary Data of this Annual Report on Form 10-K for a detailed discussion of our Investment Portfolio valuation process and procedures.
Due to the inherent uncertainty in the valuation process, our determination of fair value for our Investment Portfolio may differ materially from the values that would have been determined had a ready market for the securities existed. In addition, changes in the market environment, portfolio company performance and other events that may occur over the lives of the investments may cause the gains or losses ultimately realized on these investments to be materially different than the valuations currently assigned. We determine the fair value of each individual investment and record changes in fair value as unrealized appreciation or depreciation.
Rule 2a-5 under the 1940 Act permits a BDC’s board of directors to designate its executive officers or investment adviser as a valuation designee to determine the fair value for its investment portfolio, subject to the active oversight of the board. Our Board of Directors has approved policies and procedures pursuant to Rule 2a-5 (the “Valuation Procedures”) and has designated a group of our executive officers to serve as the Board of Directors’ valuation designee. We believe our Investment Portfolio as of December 31, 2023 and 2022 approximates fair value as of those dates based on the markets in which we operate and other conditions in existence on those reporting dates.
Revenue Recognition
Interest and Dividend Income
We record interest and dividend income on the accrual basis to the extent amounts are expected to be collected. Dividend income is recorded as dividends are declared by the portfolio company or at the point an obligation exists for the portfolio company to make a distribution. We evaluate accrued interest and dividend income periodically for collectability. When a loan or debt security becomes 90 days or more past due, and if we otherwise do not expect the debtor to be able to service its debt obligation, we will generally place the loan or debt security on non-accrual status and cease recognizing interest income on that loan or debt security until the borrower has demonstrated the ability and intent to pay contractual amounts due. If a loan or debt security’s status significantly improves regarding the debtor’s ability to service the debt obligation, or if a loan or debt security is sold or written off, we remove it from non-accrual status.
Fee Income
We may periodically provide services, including structuring and advisory services to our portfolio companies or other third parties. For services that are separately identifiable and evidence exists to substantiate fair value, fee income is recognized as earned, which is generally when the investment or other applicable transaction closes. Fees received in
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connection with debt financing transactions for services that do not meet these criteria are treated as debt origination fees and are generally deferred and accreted into income over the life of the financing.
Payment-in-Kind (“PIK”) Interest and Cumulative Dividends
We hold certain debt and preferred equity instruments in our Investment Portfolio that contain PIK interest and cumulative dividend provisions. The PIK interest, computed at the contractual rate specified in each debt agreement, is periodically added to the principal balance of the debt and is recorded as interest income. Thus, the actual collection of this interest may be deferred until the time of debt principal repayment. Cumulative dividends are recorded as dividend income, and any dividends in arrears are added to the balance of the preferred equity investment. The actual collection of these dividends in arrears may be deferred until such time as the preferred equity is redeemed or sold. To maintain RIC tax treatment (as discussed in Note B.10. — Summary of Significant Accounting Policies — Income Taxes included in Item 8. Consolidated Financial Statements and Supplementary Data of this Annual Report on Form 10-K), these non-cash sources of income may need to be paid out to stockholders in the form of distributions, even though we may not have collected the PIK interest and cumulative dividends in cash. We stop accruing PIK interest and cumulative dividends and write off any accrued and uncollected interest and dividends in arrears when we determine that such PIK interest and dividends in arrears are no longer collectible. For the years ended December 31, 2023, 2022 and 2021 (i) 2.2%, 1.4% and 2.6%, respectively, of our total investment income was attributable to PIK interest income not paid currently in cash and (ii) 0.3%, 0.5% and 0.6%, respectively, of our total investment income was attributable to cumulative dividend income not paid currently in cash.
INVESTMENT PORTFOLIO COMPOSITION
The following tables summarize the composition of our total combined LMM, Private Loan and Middle Market portfolio investments at cost and fair value by type of investment as a percentage of the total combined LMM, Private Loan and Middle Market portfolio investments as of December 31, 2023 and 2022 (this information excludes Other Portfolio investments, short-term portfolio investments and the External Investment Manager).
Cost:December 31, 2023December 31, 2022
First lien debt82.7 %85.0 %
Equity16.8 14.2 
Second lien debt0.1 0.3 
Equity warrants0.2 0.2 
Other0.2 0.3 
100.0 %100.0 %
Fair Value:December 31, 2023December 31, 2022
First lien debt71.6 %75.2 %
Equity27.8 24.1 
Second lien debt0.2 0.3 
Equity warrants0.2 0.1 
Other0.2 0.3 
100.0 %100.0 %
Our LMM, Private Loan and Middle Market portfolio investments carry a number of risks including: (1) investing in companies which may have limited operating histories and financial resources; (2) holding investments that generally are not publicly traded and which may be subject to legal and other restrictions on resale; and (3) other risks common to investing in below investment-grade debt and equity investments in our Investment Portfolio. Please see Item 1A. Risk Factors — Risks Related to our Investments contained in this Annual Report on Form 10-K for a more complete discussion of the risks involved with investing in our Investment Portfolio.
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PORTFOLIO ASSET QUALITY
We utilize an internally developed investment rating system to rate the performance of each LMM, Private Loan and Middle Market portfolio company and to monitor our expected level of returns on each of our LMM, Private Loan and Middle Market investments in relation to our expectations for the portfolio company. The investment rating system takes into consideration various factors, including each investment’s expected level of returns, the collectability of our debt investments and the ability to receive a return of the invested capital in our equity investments, comparisons to competitors and other industry participants, the portfolio company’s future outlook and other factors that are deemed to be significant to the portfolio company.
As of December 31, 2023, investments on non-accrual status comprised 0.6% of our total Investment Portfolio at fair value and 2.3% at cost. As of December 31, 2022, investments on non-accrual status comprised 0.6% of our total Investment Portfolio at fair value and 3.7% at cost.
The operating results of our portfolio companies are impacted by changes in the broader fundamentals of the United States economy. In periods during which the United States economy contracts, it is likely that the financial results of small to mid-sized companies, like those in which we invest, could experience deterioration or limited growth from current levels, which could ultimately lead to difficulty in meeting their debt service requirements, to an increase in defaults on our debt investments or in realized losses on our investments and to difficulty in maintaining historical dividend payment rates and unrealized appreciation on our equity investments. Consequently, we can provide no assurance that the performance of certain portfolio companies will not be negatively impacted by future economic cycles or other conditions, which could also have a negative impact on our future results.
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DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS
Set forth below is a comparison of the results of operations and changes in financial condition for the years ended December 31, 2023 and 2022. The comparison of, and changes between, the fiscal years ended December 31, 2022 and 2021 can be found within Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022, which is incorporated herein by reference.
Comparison of the years ended December 31, 2023 and 2022
Year Ended
December 31,		Net Change
20232022Amount%
(dollars in thousands)
Total investment income$500,385 $376,860 $123,525 33 %
Total expenses(161,366)(131,533)(29,833)23 %
Net investment income339,019 245,327 93,692 38 %
Net realized loss from investments(120,507)(5,212)(115,295)NM
Net unrealized appreciation from investments232,577 24,816 207,761 NM
Income tax provision(22,642)(23,325)683 NM
Net increase in net assets resulting from operations$428,447 $241,606 $186,841 77 %
Year Ended
December 31,		Net Change
20232022Amount%
(dollars in thousands, except per share amounts)
Net investment income$339,019 $245,327 $93,692 38 %
Share‑based compensation expense16,520 13,629 2,891 21 %
Deferred compensation expense (benefit)1,249 (1,434)2,683 NM
Distributable net investment income (a)$356,788 $257,522 $99,266 39 %
Net investment income per share—Basic and diluted$4.14 $3.29 $0.85 26 %
Distributable net investment income per share—Basic and diluted (a)$4.36 $3.46 $0.90 26 %
______________________
NM — Net Change % not meaningful
(a)Distributable net investment income is net investment income as determined in accordance with U.S. GAAP, excluding the impacts of share-based compensation expense and deferred compensation expense or benefit. We believe presenting distributable net investment income and the related per share amounts is useful and appropriate supplemental disclosure for analyzing our financial performance since share-based compensation does not require settlement in cash and deferred compensation expense or benefit does not result in a net cash impact to Main Street upon settlement. However, distributable net investment income is a non-U.S. GAAP measure and should not be considered as a replacement for net investment income or other earnings measures presented in accordance with U.S. GAAP and should be reviewed only in connection with such U.S. GAAP measures in analyzing our financial performance. A reconciliation of net investment income in accordance with U.S. GAAP to distributable net investment income is detailed in the table above.
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Investment Income
Total investment income for the year ended December 31, 2023 was $500.4 million, a 33% increase from the $376.9 million of total investment income for the prior year. The following table provides a summary of the changes in the comparable period activity.
Year Ended
December 31,		Net Change
20232022Amount%
(dollars in thousands)
Interest income$390,737 $284,746 $105,991 37 %(a)
Dividend income94,796 76,375 18,421 24 %(b)
Fee income14,852 15,739 (887)(6)%
Total investment income$500,385 $376,860 $123,525 33 %(c)
______________________
(a)The increase in interest income was primarily due to (i) an increase in interest rates on floating rate Investment Portfolio debt investments primarily resulting from increases in benchmark index rates and (ii) higher average levels of income producing Investment Portfolio debt investments.
(b)The increase in dividend income from Investment Portfolio equity investments was primarily a result of (i) growth in dividend income from certain of our LMM portfolio companies resulting from the continued strong operating results, financial condition and liquidity positions of those portfolio companies and (ii) a $2.0 million increase in dividend income from the External Investment Manager. The increase includes a $10.0 million increase related to dividend income considered to be less consistent or non-recurring.
(c)The increase in total investment income includes a net increase of $12.8 million in the impact of certain income considered less consistent or non-recurring, including (i) a $10.0 million increase in dividend income and (ii) a $2.8 million increase in accelerated prepayments, repricing and other activity related to certain Investment Portfolio debt investments.
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Expenses
Total expenses for the year ended December 31, 2023 were $161.4 million, a 23% increase from $131.5 million in the prior year. The following table provides a summary of the changes in the comparable period activity.
Year Ended
December 31,
Net Change
2023
2022
Amount%
(dollars in thousands)
Cash compensation$45,030$37,977$7,05319%(a)
Deferred compensation plan expense (benefit)1,249(1,434)2,683(187)%(b)
Compensation46,27936,5439,73627%
General and administrative18,04216,0501,99212%
Interest102,57578,27624,29931%(c)
Share-based compensation16,52013,6292,89121%(d)
Gross expenses183,416144,49838,91827%
Expenses allocated to the External Investment Manager(22,050)(12,965)(9,085)70%(e)
Total expenses$161,366$131,533$29,83323%
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(a)The increase in cash compensation expense was primarily related to increased incentive compensation accruals, increased base compensation rates and increased headcount to support our growing Investment Portfolio and asset management activities.
(b)The change in the non-cash deferred compensation plan expense was a result of deferred compensation expense recorded during the year ended December 31, 2023 resulting from an increase in the fair value of deferred compensation plan assets and corresponding liabilities during 2023 compared to a deferred compensation benefit recorded during the year ended December 31, 2022 resulting from a decrease in such fair values during 2022.
(c)The increase in interest expense was primarily related to an increased weighted average interest rate on our debt obligations resulting from (i) increased average interest rates on our floating rate multi-year revolving credit facility (the “Corporate Facility”) and special purpose vehicle revolving credit facility (the “SPV Facility” and, together with the Corporate Facility, the “Credit Facilities”) due to increases in benchmark index rates, (ii) the addition of the SPV Facility and the December 2025 Notes at higher contractual interest rates than debt obligations repaid in the fourth quarter of 2022 and (iii) increased average outstanding borrowings.
(d)The increase in share-based compensation was principally attributable to incentive based grants related to incentive compensation awards for 2022 and the accelerated vesting of certain prior incentive grants.
(e)The increase in expenses allocated to the External Investment Manager was primarily related to (i) increased overall operating costs at Main Street, (ii) an increase in assets under management and (iii) the positive operating results from the assets managed for clients of the External Investment Manager.
Net Investment Income
Net investment income for the year ended December 31, 2023 increased 38% to $339.0 million, or $4.14 per share, compared to net investment income of $245.3 million, or $3.29 per share, in 2022. The increase in net investment income was principally attributable to the increase in total investment income, partially offset by higher operating expenses, both as discussed above. The increase in net investment income per share reflects these changes and the impact of the increase in weighted-average shares outstanding for the year ended December 31, 2023, primarily due to shares issued since the beginning of the prior year through our (i) at-the-market equity program (the “ATM Program”) and public offering in August 2022, (ii) dividend reinvestment plan and (iii) equity incentive plans. The increase in net investment income on a per share basis includes (i) a $0.15 per share increase in investment income considered less consistent or non-recurring, partially offset by an increase in deferred compensation expense of $0.03 per share resulting from the comparable period difference in the fair value of deferred compensation plan assets and corresponding liabilities, both of which are discussed above.
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Distributable Net Investment Income
Distributable net investment income for the year ended December 31, 2023 increased 39% to $356.8 million, or $4.36 per share, compared with $257.5 million, or $3.46 per share, in 2022. The increase in distributable net investment income was primarily due to the increased level of total investment income, partially offset by higher operating expenses, excluding the impact of share-based compensation expense and deferred compensation expense (benefit), both as discussed above. The increase in distributable net investment income per share also reflects the impact of the increase in weighted-average shares outstanding for the year ended December 31, 2023 as discussed above. The increase in distributable net investment income on a per share basis includes a $0.15 per share increase in investment income considered less consistent or non-recurring, as discussed above.
Net Realized Gain (Loss) from Investments
The following table provides a summary of the primary components of the total net realized loss on investments of $120.5 million for the year ended December 31, 2023.
Year Ended December 31, 2023
Full ExitsPartial ExitsRestructuresOther (a)Total
Net Gain/(Loss)# of InvestmentsNet Gain/(Loss)# of InvestmentsNet Gain/(Loss)# of InvestmentsNet Gain/(Loss)Net Gain/(Loss)
(dollars in thousands)
LMM portfolio$(44,418)3$(29,526)1$(3,597)1$283 $(77,258)
Private Loan portfolio1,777 3— —(31,453)2(440)(30,116)
Middle Market portfolio(6,386)2— —(13,520)2(289)(20,195)
Other Portfolio— —6,629 4— —468 7,097 
Short-term portfolio— —— —— —(35)(35)
Total net realized gain (loss)$(49,027)8$(22,897)5$(48,570)5$(13)$(120,507)
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(a)Other activity includes realized gains and losses from transactions involving 35 portfolio companies which are not considered to be significant individually or in the aggregate.
The following table provides a summary of the primary components of the total net realized loss on investments of $5.2 million for the year ended December 31, 2022.
Year Ended December 31, 2022
Full ExitsPartial ExitsRestructuresOther (a)Total
Net Gain/(Loss)# of InvestmentsNet Gain/(Loss)# of InvestmentsNet Gain/(Loss)# of InvestmentsNet Gain/(Loss)Net Gain/(Loss)
(dollars in thousands)
LMM portfolio$— —$1,219 1$(5,822)1$(774)$(5,377)
Private Loan portfolio10,415 4— —(8,395)2313 2,333 
Middle Market portfolio(6,265)3— —— —59 (6,206)
Other Portfolio— —3,119 2— —875 3,994 
Short-term portfolio— —— —— —44 44 
Total net realized gain (loss)$4,150 7$4,338 3$(14,217)3$517 $(5,212)
______________________
(a)Other activity includes realized gains and losses from transactions involving 17 portfolio companies which are not considered to be significant individually or in the aggregate.
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Net Unrealized Appreciation (Depreciation)
The following table provides a summary of the total net unrealized appreciation of $232.6 million for the year ended December 31, 2023.
Year Ended December 31, 2023
LMM (a)Private
Loan		Middle
Market		OtherTotal
(dollars in thousands)
Accounting reversals of net unrealized (appreciation) depreciation recognized in prior periods due to net realized (gains / income) losses recognized during the current period$76,331 $28,703 $20,274 $(7,060)$118,248 
Net unrealized appreciation (depreciation) relating to portfolio investments73,209 (16,974)1,609 56,485 (b)114,329 
Total net unrealized appreciation (depreciation) relating to portfolio investments$149,540 $11,729 $21,883 $49,425 $232,577 
______________________
(a)Includes unrealized appreciation on 36 LMM portfolio investments and unrealized depreciation on 37 LMM portfolio investments.
(b)Includes (i) $51.1 million of unrealized appreciation relating to the External Investment Manager, (ii) $4.1 million of net unrealized appreciation relating to the Other Portfolio and (iii) $1.2 million of net unrealized appreciation relating to the assets of the deferred compensation plan.
The following table provides a summary of the total net unrealized appreciation of $24.8 million for the year ended December 31, 2022.
Year Ended December 31, 2022
LMM (a)Private
Loan		Middle
Market		OtherTotal
(dollars in thousands)
Accounting reversals of net unrealized (appreciation) depreciation recognized in prior periods due to net realized (gains / income) losses recognized during the current period$6,055 $(2,008)$4,966 $(3,702)$5,311 
Net unrealized appreciation (depreciation) relating to portfolio investments73,840(10,545)(31,836)(11,955)(b)19,505
Total net unrealized appreciation (depreciation) relating to portfolio investments$79,895 $(12,553)$(26,870)$(15,657)$24,816 
______________________
(a)Includes unrealized appreciation on 38 LMM portfolio investments and unrealized depreciation on 28 LMM portfolio investments.
(b)Includes (i) $17.5 million of unrealized depreciation relating to the External Investment Manager and (ii) $1.7 million of net unrealized depreciation relating to the assets of the deferred compensation plan, partially offset by $7.2 million of net unrealized appreciation relating to the Other Portfolio.
Income Tax Provision
The income tax provision for the year ended December 31, 2023 of $22.6 million principally consisted of (i) a deferred tax provision of $16.0 million, which is primarily the result of the net activity relating to our portfolio investments held in our Taxable Subsidiaries, including changes in loss and interest expense carryforwards, changes in net unrealized appreciation/depreciation and other temporary book-tax differences and (ii) a current tax provision of $6.6 million related to a $3.4 million provision for current U.S. federal and state income taxes and a $3.2 million provision for excise tax on our estimated undistributed taxable income.
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The income tax provision for the year ended December 31, 2022 of $23.3 million principally consisted of (i) a deferred tax provision of $18.1 million and (ii) a current tax provision of $5.2 million primarily related to a $2.8 million provision for excise tax on our estimated undistributed taxable income and a $2.4 million provision for current U.S. federal and state income taxes.
Net Increase in Net Assets Resulting from Operations
The net increase in net assets resulting from operations for the year ended December 31, 2023 was $428.4 million, or $5.23 per share, compared with $241.6 million, or $3.24 per share, during the year ended December 31, 2022. The tables above provide a summary of the reasons for the change in net increase in net assets resulting from operations for the year ended December 31, 2023 as compared to the year ended December 31, 2022.
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LIQUIDITY AND CAPITAL RESOURCES
Cash Flows
For the year ended December 31, 2023, we realized a net increase in cash and cash equivalents of $10.9 million, which is the net result of $285.3 million of cash provided by our operating activities and $274.4 million of cash used in our financing activities.
The $285.3 million of cash provided by our operating activities resulted primarily from (i) cash proceeds totaling $826.0 million from the sales and repayments of debt investments and sales of and return on capital from equity investments and (ii) cash flows that we generated from the operating profits earned totaling $328.4 million, which is our distributable net investment income, excluding the non-cash effects of the accretion of unearned income, payment-in-kind interest income, cumulative dividends and the amortization expense for deferred financing costs, partially offset by cash uses totaling $867.0 million for the funding of new and follow-on portfolio company investments.
The $274.4 million of cash used in our financing activities principally consisted of (i) $271.6 million in dividends paid to stockholders of our common stock, (ii) $247.0 million in net repayments from our Credit Facilities, (iii) $6.0 million for purchases of vested restricted stock from employees to satisfy their tax withholding requirements upon the vesting of such restricted stock and (iv) $3.5 million in debt issuance costs, partially offset by (i) $203.7 million in net cash proceeds from equity offerings from our ATM Program (as described below) and direct stock purchase plan and (ii) $50.0 million in cash proceeds from the issuance of additional aggregate principal amount of the December 2025 Notes (as defined below).
For the year ended December 31, 2022, we realized a net increase in cash and cash equivalents of $16.5 million, which is the net result of $246.9 million of cash used in our operating activities and $263.4 million of cash provided by our financing activities.
The $246.9 million of cash used in our operating activities resulted primarily from (i) cash uses totaling $1,152.6 million for the funding of new and follow-on portfolio company investments and settlement of accruals for portfolio investments existing as of December 31, 2021 and (ii) cash payments of $14.2 million related to changes in other assets and liabilities, partially offset by (i) cash proceeds totaling $680.0 million from the sales and repayments of debt investments and sales of and return on capital from equity investments and (ii) cash flows that we generated from the operating profits earned totaling $239.9 million, which is our distributable net investment income, excluding the non-cash effects of the accretion of unearned income, payment-in-kind interest income, cumulative dividends and the amortization expense for deferred financing costs.
The $263.4 million of cash provided by our financing activities principally consisted of (i) $287.0 million in net proceeds from the Credit Facilities, (ii) $265.6 million in net cash proceeds from equity offerings from our ATM Program, equity offering in August 2022 and direct stock purchase plan and (iii) $100.0 million in proceeds from the initial issuance of the December 2025 Notes, partially offset by (i) $194.2 million in cash dividends paid to stockholders, (ii) $185.0 million for the redemption of the 4.50% unsecured notes (the “December 2022 Notes”), (iii) $5.1 million for payments of deferred debt issuance costs, SBIC debenture fees and other costs, net of debt issuance premiums and (iv) $4.9 million for purchases of vested restricted stock from employees to satisfy their tax withholding requirements upon the vesting of such restricted stock.
Capital Resources
As of December 31, 2023, we had $60.1 million in cash and cash equivalents and $1,065.0 million of unused capacity under the Credit Facilities which we maintain to support our investment and operating activities. As of December 31, 2023, our NAV totaled $2,477.4 million, or $29.20 per share.
As of December 31, 2023, we had $200.0 million outstanding and $795.0 million of undrawn commitments under the Corporate Facility, and $160.0 million outstanding and $270.0 million of undrawn commitments under our SPV Facility, both of which we estimated approximated fair value. Availability under the Credit Facilities is subject to certain leverage and borrowing base limitations, various covenants, reporting requirements and other customary requirements for similar credit facilities. For further information on our Credit Facilities, including key terms and financial covenants, refer to Note E — Debt included in Item 8. Consolidated Financial Statements and Supplementary Data of this Annual Report on Form 10-K.
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In January 2021, we issued $300.0 million in aggregate principal amount of 3.00% unsecured notes due July 14, 2026 (the “July 2026 Notes”). In October 2021, we issued an additional $200.0 million in aggregate principal amount of the July 2026 Notes. The outstanding aggregate principal amount of the July 2026 Notes was $500.0 million as of both December 31, 2023 and December 31, 2022.
In April 2019, we issued $250.0 million in aggregate principal amount of 5.20% unsecured notes due May 1, 2024 (the “May 2024 Notes”). In December 2019 and July 2020, we issued an additional $75.0 million and $125.0 million, respectively, in aggregate principal amount of the May 2024 Notes. The outstanding aggregate principal amount of the May 2024 Notes was $450.0 million as of both December 31, 2023 and December 31, 2022.
Through the Funds, we have the ability to issue SBIC debentures guaranteed by the SBA at favorable interest rates and favorable terms and conditions. Under existing SBIC regulations, SBA-approved SBICs under common control have the ability to issue debentures guaranteed by the SBA up to a regulatory maximum amount of $350.0 million. Under existing SBA-approved commitments, we had $350.0 million of outstanding SBIC debentures guaranteed by the SBA as of December 31, 2023 through our wholly-owned SBICs, which bear a weighted-average annual fixed interest rate of 3.0%, paid semiannually, and mature ten years from issuance. The first maturity related to our SBIC debentures occurs in March 2024, and the weighted-average remaining duration is 4.6 years as of December 31, 2023. Debentures guaranteed by the SBA have fixed interest rates that equal prevailing 10-year Treasury Note rates plus a market spread and have a maturity of ten years with interest payable semiannually. The principal amount of the debentures is not required to be paid before maturity, but may be pre-paid at any time with no prepayment penalty. We expect to maintain SBIC debentures under the SBIC program in the future, subject to periodic repayments and borrowings, in an amount up to the regulatory maximum amount for affiliated SBIC funds.
In December 2022, we issued $100.0 million in aggregate principal amount of 7.84% Series A unsecured notes due December 23, 2025 (the “December 2025 Notes”). In February 2023, we issued an additional $50.0 million in aggregate principal amount of the December 2025 Notes bearing interest at a fixed rate of 7.53% per year. The outstanding aggregate principal amount of the December 2025 Notes as of December 31, 2023 and December 31, 2022 was $150.0 million and $100.0 million, respectively.
We maintain the ATM Program with certain selling agents through which we can sell shares of our common stock by means of at-the-market offerings from time to time. During the year ended December 31, 2023, we sold 5,149,460 shares of our common stock at a weighted-average price of $39.94 per share and raised $205.7 million of gross proceeds under the ATM Program. Net proceeds were $203.3 million after commissions to the selling agents on shares sold and offering costs. As of December 31, 2023, sales transactions representing 2,323 shares had not settled and are not included in shares issued and outstanding on the face of the Consolidated Balance Sheets but are included in the weighted average shares outstanding in the Consolidated Statements of Operations and in the shares used to calculate the NAV per share. In March 2022, we entered into new distribution agreements to sell up to 15,000,000 shares through the ATM Program. As of December 31, 2023, 5,313,224 shares remained available for sale under the ATM Program. During the year ended December 31, 2022, we sold 5,407,382 shares of our common stock at a weighted-average price of $39.29 per share and raised $212.4 million of gross proceeds under the ATM Program. Net proceeds were $209.9 million after commissions to the selling agents on shares sold and offering costs.
During the year ended December 31, 2022, we completed a public equity offering of 1,345,500 shares of common stock at a public offering price of $42.85 per share, including the underwriters’ full exercise of their option to purchase 175,500 additional shares, resulting in total net proceeds, including exercise of the underwriters’ option to purchase additional shares and after deducting underwriting discounts and estimated offering expenses payable by us, of approximately $55.1 million.
We anticipate that we will continue to fund our investment activities through existing cash and cash equivalents, cash flows generated through our ongoing operating activities, utilization of available borrowings under our Credit Facilities, and a combination of future issuances of debt and equity capital. Our primary uses of funds will be investments in portfolio companies, operating expenses, cash distributions to holders of our common stock and repayments of note and debenture obligations as they come due.
We periodically invest excess cash balances into marketable securities and idle funds investments. The primary investment objective of marketable securities and idle funds investments is to generate incremental cash returns on excess cash balances prior to utilizing those funds for investment in our LMM, Private Loan and Middle Market portfolio investments. Marketable securities and idle funds investments generally consist of debt investments, independently rated
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debt investments, certificates of deposit with financial institutions, diversified bond funds and publicly traded debt and equity investments. We may also invest in short-term portfolio investments that are atypical of our LMM, Private Loan and Middle Market portfolio investments in that they are intended to be a short-term deployment of capital and are more liquid than investments within the other portfolios. Short-term portfolio investments consist primarily of investments in secured debt investments and independently rated debt investments.
If our common stock trades below our NAV per share, we will generally not be able to issue additional common stock at the market price, unless our stockholders approve such a sale and our Board of Directors makes certain determinations. We did not seek stockholder authorization to sell shares of our common stock below the then current NAV per share of our common stock at our 2023 Annual Meeting of Stockholders, and have not sought such authorization since 2012, because our common stock price per share has generally traded significantly above the NAV per share of our common stock since 2011. We would therefore need future approval from our stockholders to issue shares below the then current NAV per share.
In order to satisfy the Code requirements applicable to a RIC, we intend to distribute to our stockholders, after consideration and application of our ability under the Code to carry forward certain excess undistributed taxable income from one tax year into the next tax year, substantially all of our taxable income.
In addition, as a BDC, we generally are required to meet a coverage ratio, or BDC asset coverage ratio, of total assets to total senior securities, which include borrowings and any preferred stock we may issue in the future, of at least 200% (or 150% if certain requirements are met). In January 2008, we received an exemptive order from the SEC to exclude SBA-guaranteed debt securities issued by the Funds and any other wholly-owned subsidiaries of ours which operate as SBICs from the BDC asset coverage ratio which, in turn, enables us to fund more investments with debt capital. In May 2022, our stockholders also approved the application of the reduced BDC asset coverage ratio. As a result, the BDC asset coverage ratio applicable to us decreased from 200% to 150% effective May 3, 2022. As of December 31, 2023, our BDC asset coverage ratio was 269%.
Although we have been able to secure access to additional liquidity, including through the Credit Facilities, public and private debt issuances, leverage available through the SBIC program and equity offerings, there is no assurance that debt or equity capital will be available to us in the future on favorable terms, or at all.
Recently Issued or Adopted Accounting Standards
From time to time, new accounting pronouncements are issued by the FASB or other standards setting bodies that are adopted by us as of the specified effective date. We believe that the impact of recently issued standards and any that are not yet effective will not have a material impact on our consolidated financial statements upon adoption. For a description of recently issued or adopted accounting standards, see Note B.14. — Summary of Significant Accounting Policies — Recently Issued or Adopted Accounting Standards included in Item 8. Consolidated Financial Statements and Supplementary Data of this Annual Report on Form 10-K.
Inflation
Inflation has not historically had a significant effect on our results of operations in any of the reporting periods presented herein. However, our portfolio companies have experienced, specifically including over the last few years, as a result of recent geopolitical events, supply chain and labor issues, and may continue to experience, the increasing impacts of inflation on their operating results, including periodic escalations in their costs for labor, raw materials and third-party services and required energy consumption. These issues and challenges related to inflation are receiving significant attention from our investment teams and the management teams of our portfolio companies as we work to manage these growing challenges. Prolonged or more severe impacts of inflation to our portfolio companies could continue to affect their operating profits and, thereby, increase their borrowing costs, and as a result negatively impact their ability to service their debt obligations and/or reduce their available cash for distributions. In addition, these factors could have a negative effect on the fair value of our investments in these portfolio companies. The combined impacts therefrom in turn could negatively affect our results of operations.
Off-Balance Sheet Arrangements
We may be a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financial needs of our portfolio companies. These instruments include commitments to extend credit and fund equity
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capital and involve, to varying degrees, elements of liquidity and credit risk in excess of the amount recognized in the Consolidated Balance Sheets. At December 31, 2023, we had a total of $292.0 million in outstanding commitments comprised of (i) 79 investments with commitments to fund revolving loans that had not been fully drawn or term loans with additional commitments not yet funded and (ii) 13 investments with equity capital commitments that had not been fully called.
Contractual Obligations
As of December 31, 2023, the future fixed commitments for cash payments in connection with the July 2026 Notes, the May 2024 Notes, SBIC debentures, the December 2025 Notes and rent obligations under our office lease for each of the next five years and thereafter are as follows.
2024
2025
2026
2027
2028
Thereafter
Total
(dollars in thousands)
July 2026 Notes
$— $— $500,000 $— $— $— $500,000 
Interest due on July 2026 Notes
15,000 15,000 15,000 — — — 45,000 
May 2024 Notes
450,000 — — — — — 450,000 
Interest due on May 2024 Notes
11,700 — — — — — 11,700 
SBIC debentures63,800 — — 75,000 75,000 136,200 350,000 
Interest due on SBIC debentures9,416 8,146 8,146 7,429 4,982 9,661 47,780 
December 2025 Notes
— 150,000 — — — — 150,000 
Interest due on December 2025 Notes
11,605 11,637 — — — — 23,242 
Operating Lease Obligation (1)
1,020 1,115 1,135 1,155 1,175 6,499 12,099 
Total$562,541 $185,898 $524,281 $83,584 $81,157 $152,360 $1,589,821 
______________________
(1)Operating Lease Obligation means a rent payment obligation under a lease classified as an operating lease and disclosed pursuant to ASC 842, as may be modified or supplemented.
As of December 31, 2023, we had $200.0 million in borrowings outstanding under our Corporate Facility, and the Corporate Facility is scheduled to mature in August 2027. As of December 31, 2023, we had $160.0 million in borrowings outstanding under our SPV Facility, and the SPV Facility is scheduled to mature in November 2027.
Related Party Transactions and Agreements
We have entered into agreements and transactions with the External Investment Manager, MSC Income, the Private Loan Fund and the Private Loan Fund II, whereby we have made debt and equity investments and receive certain fees, expense reimbursements and investment income. See Note D — External Investment Manager and Note L — Related Party Transactions included in Item 8. Consolidated Financial Statements and Supplementary Data of this Annual Report on Form 10-K for additional information regarding these related party transactions and agreements.
In addition, we have a deferred compensation plan, whereby non-employee directors and certain key employees may defer receipt of some or all of their cash compensation and directors’ fees, subject to certain limitations. See Note L — Related Party Transactions included in Item 8. Consolidated Financial Statements and Supplementary Data of this Annual Report on Form 10-K for additional information regarding the deferred compensation plan.
Recent Developments
In January 2024, we issued $350.0 million in aggregate principal amount of 6.95% unsecured notes due March 1, 2029 (the “March 2029 Notes”) at an issue price of 99.865%. The total net proceeds from the offering of the March 2029 Notes were approximately $346.3 million after underwriting discounts and estimated offering expenses payable. We utilized the proceeds to repay outstanding borrowings under our Credit Facilities.
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In February 2024, we declared a supplemental cash dividend of $0.30 per share payable in March 2024. This supplemental cash dividend is in addition to the previously announced regular monthly cash dividends that we declared of $0.24 per share for each of January, February and March 2024, or total regular monthly cash dividends of $0.72 per share for the first quarter of 2024, resulting in total dividends declared for the first quarter of 2024 of $1.02 per share.
In February 2024, we declared regular monthly dividends of $0.24 per share for each of April, May and June of 2024. These regular monthly dividends equal a total of $0.72 per share for the second quarter of 2024, representing a 6.7% increase from the regular monthly dividends paid in the second quarter of 2023. Including the regular monthly and supplemental dividends declared for the first and second quarters of 2024 we will have paid $40.555 per share in cumulative dividends since our October 2007 initial public offering.
Item 7A. Quantitative and Qualitative Disclosures about Market Risk
We are subject to financial market risks, including changes in interest rates, and changes in interest rates may affect both our interest expense on the debt outstanding under our Credit Facilities and our interest income from portfolio investments. Our risk management systems and procedures are designed to identify and analyze our risk, to set appropriate policies and limits and to continually monitor these risks. Our investment income will be affected by changes in various interest rate indices, including SOFR and Prime rates, to the extent that any debt investments include floating interest rates. See Risk Factors—Risks Related to our Investments — The discontinuation and replacement of LIBOR may adversely affect the value of floating-rate debt securities in our portfolio or issued by us., Risk Factors — Risks Related to our Business and Structure — We are subject to risks associated with the interest rate environment and changes in interest rates will affect our cost of capital, net investment income and the value of our investments. and Risk Factors — Risks Related to Leverage — Because we borrow money, the potential for gain or loss on amounts invested in us is magnified and may increase the risk of investing in us. included in Item 1A. Risk Factors of this Annual Report on Form 10-K for more information regarding risks associated with our debt investments and borrowings that utilize SOFR or Prime as a reference rate.
The majority of our debt investments are made with either fixed interest rates or floating rates that are subject to contractual minimum interest rates for the term of the investment. As of December 31, 2023, 66% of our debt Investment Portfolio (at cost) bore interest at floating rates, 96% of which were subject to contractual minimum interest rates. As of December 31, 2023, 80% of our debt obligations bore interest at fixed rates. Our interest expense will be affected by changes in the published SOFR rate in connection with our Credit Facilities; however, the interest rates on our outstanding July 2026 Notes, May 2024 Notes, SBIC Debentures and December 2025 Notes which collectively comprise the majority of our outstanding debt, are fixed for the life of such debt. As of December 31, 2023, we had not entered into any interest rate hedging arrangements. Due to our limited use of derivatives, we have claimed an exclusion from the definition of the term “commodity pool operator” under the Commodity Exchange Act and, therefore, are not subject to registration or regulation as a pool operator under such Act. The Company expects to operate as a “limited derivatives user” under Rule 18f-4 under the 1940 Act.
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The following table shows the approximate annualized increase or decrease in the components of net investment income due to hypothetical base rate changes in interest rates, assuming no changes in our investments and borrowings as of December 31, 2023.
Basis Point ChangeIncrease
(Decrease)
in Interest
Income		(Increase)
Decrease
in Interest
Expense		Increase
(Decrease) in Net
Investment
Income		Increase
(Decrease) in Net
Investment
Income per Share
(dollars in thousands, except per share amounts)
(200)$(37,028)$7,200 $(29,828)$(0.35)
(175)(32,400)6,300 (26,100)(0.31)
(150)(27,771)5,400 (22,371)(0.26)
(125)(23,143)4,500 (18,643)(0.22)
(100)(18,514)3,600 (14,914)(0.18)
(75)(13,886)2,700 (11,186)(0.13)
(50)(9,257)1,800 (7,457)(0.09)
(25)(4,629)900 (3,729)(0.04)
254,629 (900)3,729 0.04 
509,257 (1,800)7,457 0.09 
7513,886 (2,700)11,186 0.13 
10018,514 (3,600)14,914 0.18 
12523,143 (4,500)18,643 0.22 
15027,771 (5,400)22,371 0.26 
17532,400 (6,300)26,100 0.31 
20037,028 (7,200)29,828 0.35 
Although we believe that this analysis is indicative of the impact of interest rate changes to our Net Investment Income as of December 31, 2023, the analysis does not take into consideration future changes in the credit market, credit quality or other business or economic developments that could affect our Net Investment Income. Accordingly, we can offer no assurances that actual results would not differ materially from the analysis above. The hypothetical results assume that all SOFR and Prime rate changes would be effective on the first day of the period. However, the contractual SOFR and Prime rate reset dates would vary throughout the period. The majority of our investments are based on contracts which reset quarterly, while our Credit Facilities reset monthly. The hypothetical results would also be impacted by the changes in the amount of debt outstanding under our Credit Facilities (with an increase (decrease) in the debt outstanding under the Credit Facilities resulting in an (increase) decrease in the hypothetical interest expense).
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Item 8. Consolidated Financial Statements and Supplementary Data
Index to Consolidated Financial Statements
69
72
73
74
75
76
110
142
190
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Report of Independent Registered Public Accounting Firm
Board of Directors and Stockholders
Main Street Capital Corporation
Opinion on the financial statements
We have audited the accompanying consolidated balance sheets of Main Street Capital Corporation (a Maryland corporation) and subsidiaries (the “Company”), including the consolidated schedules of investments, as of December 31, 2023 and 2022, the related consolidated statements of operations, changes in net assets, and cash flows for each of the three years in the period ended December 31, 2023, and the related notes and financial statement schedule included under Item 15(2) (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and 2022, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2023, in conformity with accounting principles generally accepted in the United States of America.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the Company’s internal control over financial reporting as of December 31, 2023, based on criteria established in the 2013 Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”), and our report dated February 23, 2024 expressed an unqualified opinion.
Basis for opinion
These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical audit matter
The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Fair Value of Investments
As described further in Note C to the financial statements, the Company’s investments recorded at fair value, categorized as Level 3 investments within the fair value hierarchy, totaled $4,286,271 thousand at December 31, 2023. Approximately 97% of these investments have no readily available market values and are measured using significant unobservable inputs and assumptions, and generally use valuation techniques such as the income and market approach. The significant unobservable inputs disclosed by management include, among others, weighted-average cost of capital (“WACC”) inputs and market multiples for equity investments, and risk adjusted discount rates, and percentage of expected principal recovery. Changes in these assumptions could have a significant impact on the determination of fair value. As such, we identified fair value of Level 3 investments measured using significant unobservable inputs and assumptions as a critical audit matter.
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Report of Independent Registered Public Accounting Firm
The principal considerations for our determination that fair value of Level 3 investments measured using significant unobservable inputs is a critical audit matter are the significant management judgements used in developing complex valuation techniques and inherent estimation uncertainty. Auditing these investments requires a high degree of subjective auditor judgment, including use of valuation professionals with specialized skills and knowledge, to evaluate the reasonableness of unobservable inputs and assumptions.
Our audit procedures related to the critical audit matter included the following, among others:
•Testing the design and operating effectiveness of controls over management’s process to determine investment fair value. Specifically, we identified and tested key attributes of management’s fair value determination review. These attributes addressed the relevance, adequacy and appropriateness of the data, assumptions, valuation methods, and mathematical accuracy used to determine investment fair value as of the reporting date.
•Evaluated the ability to estimate fair value by comparing prior period fair values to transaction prices of transactions occurring subsequent to the prior period valuation date.
•With the assistance of internal valuation specialists to evaluate and test management’s process to develop the valuation estimates, we performed substantive audit procedures to determine mathematical accuracy and to determine that the data, valuation methods, and significant unobservable inputs and assumptions used to determine investment fair value as of the Company’s reporting date were reasonable. We tested certain key inputs/assumptions for a selection of investments, including the following, as applicable:
•enterprise values,
•weighted-average cost of capital (“WACC”),
•discount rates,
•forecasted cash flows and long-term growth rates,
•discount for lack of marketability,
•market multiples,
•weighting between valuation techniques,
•risk adjusted discount factor, and
•percentage of expected principal recovery
In testing the above, we considered available third-party market information and published studies, current economic conditions and subsequent events, and other information that could be corroborated to source information.
/s/ GRANT THORNTON LLP
We have served as the Company’s auditor since 2007.
Houston, Texas
February 23, 2024
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Report of Independent Registered Public Accounting Firm
Board of Directors and Stockholders
Main Street Capital Corporation
Opinion on internal control over financial reporting
We have audited the internal control over financial reporting of Main Street Capital Corporation (a Maryland corporation) and subsidiaries (the “Company”) as of December 31, 2023, based on criteria established in the 2013 Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2023, based on criteria established in the 2013 Internal Control—Integrated Framework issued by COSO.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the consolidated financial statements of the Company as of and for the year ended December 31, 2023, and our report dated February 23, 2024 expressed an unqualified opinion on those financial statements.
Basis for opinion
The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
Definition and limitations of internal control over financial reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
/s/ GRANT THORNTON LLP
Houston, Texas
February 23, 2024

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MAIN STREET CAPITAL CORPORATION
Consolidated Balance Sheets
(dollars in thousands, except shares and per share amounts)
December 31, 2023
December 31, 2022
ASSETS
Investments at fair value:
Control investments (cost: $1,435,131 and $1,270,802 as of December 31, 2023 and December 31, 2022, respectively)
$2,006,698 $1,703,172 
Affiliate investments (cost: $575,894 and $635,536 as of December 31, 2023 and December 31, 2022, respectively)
615,002 618,359 
Non‑Control/Non‑Affiliate investments (cost: $1,714,935 and $1,867,414 as of December 31, 2023 and December 31, 2022, respectively)
1,664,571 1,780,646 
Total investments (cost: $3,725,960 and $3,773,752 as of December 31, 2023 and December 31, 2022, respectively)
4,286,271 4,102,177 
Cash and cash equivalents60,083 49,121 
Interest and dividend receivable and other assets89,337 82,731 
Receivable for securities sold— 381 
Deferred financing costs (net of accumulated amortization of $12,329 and $10,603 as of December 31, 2023 and December 31, 2022, respectively)
7,879 7,475 
Total assets$4,443,570 $4,241,885 
LIABILITIES
Credit Facilities$360,000 $607,000 
July 2026 Notes (par: $500,000 as of both December 31, 2023 and December 31, 2022)
498,662 498,136 
May 2024 Notes (par: $450,000 as of both December 31, 2023 and December 31, 2022)
450,182 450,727 
SBIC debentures (par: $350,000 ($63,800 due within one year) and $350,000 as of December 31, 2023 and December 31, 2022, respectively)
344,535 343,914 
December 2025 Notes (par: $150,000 and $100,000 as of December 31, 2023 and December 31, 2022, respectively)
148,965 99,325 
Accounts payable and other liabilities62,576 52,092 
Interest payable17,025 16,580 
Dividend payable20,368 17,676 
Deferred tax liability, net63,858 47,849 
Total liabilities1,966,171 2,133,299 
Commitments and contingencies (Note K)  
NET ASSETS  
Common stock, $0.01 par value per share (150,000,000 shares authorized; 84,830,679 and 78,463,599 shares issued and outstanding as of December 31, 2023 and December 31, 2022, respectively)
848 784 
Additional paid‑in capital2,270,549 2,030,531 
Total undistributed earnings206,002 77,271 
Total net assets2,477,399 2,108,586 
Total liabilities and net assets$4,443,570 $4,241,885 
NET ASSET VALUE PER SHARE$29.20 $26.86 
The accompanying notes are an integral part of these consolidated financial statements
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MAIN STREET CAPITAL CORPORATION
Consolidated Statements of Operations
(dollars in thousands, except shares and per share amounts)
Year Ended December 31,
202320222021
INVESTMENT INCOME:
Interest, fee and dividend income:
Control investments$197,150 $155,967 $122,277 
Affiliate investments69,829 54,963 51,278 
Non‑Control/Non‑Affiliate investments233,406 165,930 115,492 
Total investment income500,385 376,860 289,047 
EXPENSES:
Interest(102,575)(78,276)(58,836)
Compensation(46,279)(36,543)(34,442)
General and administrative(18,042)(16,050)(12,494)
Share‑based compensation(16,520)(13,629)(10,887)
Expenses allocated to the External Investment Manager22,050 12,965 10,277 
Total expenses(161,366)(131,533)(106,382)
NET INVESTMENT INCOME339,019 245,327 182,665 
NET REALIZED GAIN (LOSS):
Control investments(50,532)(5,822)6,494 
Affiliate investments(18,729)(3,319)17,181 
Non‑Control/Non‑Affiliate investments(51,246)3,929 21,661 
Total net realized gain (loss)(120,507)(5,212)45,336 
NET UNREALIZED APPRECIATION (DEPRECIATION):
Control investments161,793 56,682 99,420 
Affiliate investments33,689 10,314 21,989 
Non‑Control/Non‑Affiliate investments37,095 (42,180)14,215 
Total net unrealized appreciation232,577 24,816 135,624 
INCOME TAXES:
Federal and state income, excise and other taxes(6,633)(5,199)(5,732)
Deferred taxes$(16,009)$(18,126)(27,131)
Total income tax provision(22,642)(23,325)(32,863)
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS$428,447 $241,606 $330,762 
NET INVESTMENT INCOME PER SHARE—BASIC AND DILUTED$4.14 $3.29 $2.65 
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS PER SHARE—BASIC AND DILUTED$5.23 $3.24 $4.80 
WEIGHTED-AVERAGE SHARES
OUTSTANDING—BASIC AND DILUTED		81,916,66374,482,17668,960,923
The accompanying notes are an integral part of these consolidated financial statements
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MAIN STREET CAPITAL CORPORATION
Consolidated Statements of Changes in Net Assets
(dollars in thousands, except shares)
Common StockAdditional
Paid‑In
Capital		Total
Undistributed
Earnings		Total Net
Asset Value
Number of
Shares		 Par
Value		   
Balances at December 31, 202067,762,032 $677 $1,615,940 $(101,850)$1,514,767 
Public offering of common stock, net of offering costs2,345,554 2498,865—98,889
Share‑based compensation — —10,887—10,887
Purchase of vested stock for employee payroll tax withholding (134,238)(1)(5,302)—(5,303)
Dividend reinvestment 404,384 416,279—16,283
Amortization of directors’ deferred compensation — —652—652
Issuance of restricted stock, net of forfeited shares 359,289 3(3)——
Dividends to stockholders — —406(178,497)(178,091)
Reclassification for certain permanent book-to-tax differences— —(1,378)1,378—
Net increase resulting from operations— ——330,762330,762
Balances at December 31, 202170,737,021$707 $1,736,346 $51,793 $1,788,846 
Public offering of common stock, net of offering costs6,763,16667265,553—265,620
Share‑based compensation ——13,629—13,629
Purchase of vested stock for employee payroll tax withholding (116,177)(1)(4,942)—(4,943)
Dividend reinvestment 625,196624,125—24,131
Amortization of directors’ deferred compensation ——519—519
Issuance of restricted stock, net of forfeited shares 497,6105(5)——
Dividends to stockholders ——466(221,288)(220,822)
Reclassification for certain permanent book-to-tax differences——(5,160)5,160—
Net increase resulting from operations———241,606241,606
Balances at December 31, 202278,506,816$784 $2,030,531 $77,271 $2,108,586 
Public offering of common stock, net of offering costs5,159,47952203,631—203,683
Share‑based compensation ——16,520—16,520
Purchase of vested stock for employee payroll tax withholding (151,058)(1)(5,949)—(5,950)
Dividend reinvestment 765,427830,711—30,719
Amortization of directors’ deferred compensation ——434—434
Issuance of restricted stock, net of forfeited shares 552,3385(5)——
Dividends to stockholders ——623(305,663)(305,040)
Reclassification for certain permanent book-to-tax differences——(5,947)5,947—
Net increase resulting from operations———428,447428,447
Balances at December 31, 202384,833,002$848 $2,270,549 $206,002 $2,477,399 
The accompanying notes are an integral part of these consolidated financial statements
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MAIN STREET CAPITAL CORPORATION

Consolidated Statements of Cash Flows

(dollars in thousands)
Year Ended
December 31,
202320222021
CASH FLOWS FROM OPERATING ACTIVITIES
Net increase in net assets resulting from operations$428,447$241,606$330,762
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used in) operating activities:
Investments in portfolio companies(866,997)(1,152,594)(1,763,755)
Proceeds from sales and repayments of debt investments in portfolio companies782,433608,330920,828
Proceeds from sales and return of capital of equity investments in portfolio companies43,58171,695133,644
Net unrealized appreciation(232,577)(24,816)(135,624)
Net realized (gain) loss120,5075,212(45,336)
Accretion of unearned income(19,366)(13,413)(15,619)
Payment-in-kind interest(10,997)(5,352)(7,573)
Cumulative dividends(1,344)(1,770)(1,739)
Share-based compensation expense16,52013,62910,887
Amortization of deferred financing costs3,3312,8632,998
Deferred tax provision16,00918,12627,131
Changes in other assets and liabilities:
Interest and dividend receivable and other assets(8,530)(28,186)(5,504)
Interest payable4451,6546,268
Accounts payable and other liabilities10,06212,25420,289
Deferred fees and other3,7983,8266,970
Net cash provided by (used in) operating activities285,322(246,936)(515,373)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from public offering of common stock, net of offering costs203,683265,62098,889
Proceeds from public offering of July 2026 Notes
——500,000
Proceeds from public offering of December 2025 Notes
50,000100,000—
Dividends paid(271,599)(194,174)(160,537)
Proceeds from issuance of SBIC debentures16,000—80,200
Repayments of SBIC debentures(16,000)—(40,000)
Redemption of December 2022 Notes
—(185,000)—
Proceeds from credit facilities460,0001,032,0001,100,000
Repayments on credit facilities(707,000)(745,000)(1,049,000)
Debt issuance costs, net(3,494)(5,075)(8,166)
Purchases of vested stock for employee payroll tax withholding(5,950)(4,943)(5,303)
Net cash provided by (used in) financing activities(274,360)263,428516,083
Net increase in cash and cash equivalents10,96216,492710
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD49,12132,62931,919
CASH AND CASH EQUIVALENTS AT END OF PERIOD$60,083$49,121$32,629
Supplemental cash flow disclosures:
Interest paid$98,656$73,635$50,729
Taxes paid$8,444$6,596$2,233
Operating non-cash activities:
Right-of-use assets obtained in exchange for operating lease liabilities$—$5,449$—
Non-cash financing activities:
Value of shares issued pursuant to the DRIP$30,719$24,131$16,283
The accompanying notes are an integral part of these consolidated financial statements

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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2023
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (28)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
Control Investments (5)
Analytical Systems Keco Holdings, LLCManufacturer of Liquid and Gas Analyzers
Secured Debt (9) 8/16/201915.38%SF+10.00%8/16/2024$220 $219 $219 
Secured Debt (9) 8/16/201915.38%SF+10.00%8/16/20244,125 4,084 4,084 
Preferred Member Units5/20/20212,4272,427 4,860 
Preferred Member Units8/16/20193,20014.13%3,200 — 
Warrants (27) 8/16/20194208/16/2029316 — 
10,246 9,163 
ASC Interests, LLCRecreational and Educational Shooting Facility
Secured Debt12/31/201913.00%7/31/2024400 400 400 
Secured Debt8/1/201313.00%7/31/20241,650 1,649 1,597 
Preferred Member Units6/28/2023178178 266 
Member Units8/1/20131,5001,500 100 
3,727 2,363 
ATS Workholding, LLC(10)Manufacturer of Machine Cutting Tools and Accessories
Secured Debt (14) 11/16/20175.00%9/1/20242,090 2,080 328 
Secured Debt (14) 11/16/20175.00%9/1/20243,015 2,841 473 
Preferred Member Units11/16/20173,725,8623,726 — 
8,647 801 
Barfly Ventures, LLC(10)Casual Restaurant Group
Secured Debt10/15/20207.00%10/31/2024711 711 711 
Member Units10/26/2020371,584 4,140 
2,295 4,851 
Batjer TopCo, LLCHVAC Mechanical Contractor
Secured Debt (25) 3/7/20223/7/2027— (6)— 
Secured Debt 3/7/202210.00%3/7/2027270 270 270 
Secured Debt3/7/202210.00%3/7/202710,575 10,508 10,575 
Preferred Stock(8)3/7/20224,0734,095 6,150 
14,867 16,995 
Bolder Panther Group, LLCConsumer Goods and Fuel Retailer
Secured Debt (9) (22) 12/31/202014.48%SF+9.11%10/31/202796,556 96,078 96,556 
Class B Preferred Member Units (8) 12/31/2020140,0008.00%14,000 31,020 
110,078 127,576 
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2023
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (28)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
Brewer Crane Holdings, LLCProvider of Crane Rental and Operating Services
Secured Debt (9) 1/9/201815.46%L+10.00%1/9/20255,498 5,498 5,498 
Preferred Member Units (8) 1/9/20182,9504,280 5,620 
9,778 11,118 
Bridge Capital Solutions CorporationFinancial Services and Cash Flow Solutions Provider
Secured Debt7/25/201613.00%12/11/20248,813 8,813 8,813 
Secured Debt 7/25/201613.00%12/11/20241,000 1,000 1,000 
Warrants (27) 7/25/2016827/25/20262,132 4,290 
Preferred Member Units (8) (29) 7/25/201617,7421,000 1,000 
12,945 15,103 
Café Brazil, LLCCasual Restaurant Group
Member Units (8) 6/9/20061,2331,742 1,980 
California Splendor Holdings LLCProcessor of Frozen Fruits
Secured Debt (8) (9) 3/30/201815.69%SF+10.00%7/29/202628,000 27,965 27,655 
Preferred Member Units (8) 7/31/20193,67115.00%15.00%4,601 4,601 
Preferred Member Units (8) 3/30/20186,15710,775 15,695 
43,341 47,951 
CBT Nuggets, LLCProduces and Sells IT Training Certification Videos
Member Units (8) 6/1/20064161,300 50,130 
Centre Technologies Holdings, LLCProvider of IT Hardware Services and Software Solutions
Secured Debt (9) (25) 1/4/2019SF+9.00%1/4/2026— — — 
Secured Debt (9) 1/4/201914.48%SF+9.00%1/4/202617,574 17,512 17,574 
Preferred Member Units1/4/201913,3096,122 11,040 
23,634 28,614 
Chamberlin Holding LLCRoofing and Waterproofing Specialty Contractor
Secured Debt (9) (25) 2/26/2018SF+6.00%2/26/2026— (195)— 
Secured Debt (9) 2/26/201813.49%SF+8.00%2/26/202615,620 15,617 15,620 
Member Units (8) 2/26/20184,34711,440 29,320 
Member Units (8) (29) 11/2/20181,047,1461,773 2,860 
28,635 47,800 
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2023
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (28)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
Charps, LLCPipeline Maintenance and Construction
Unsecured Debt8/26/202010.00%1/31/20265,694 4,678 5,694 
Preferred Member Units (8) 2/3/20171,8291,963 15,690 
6,641 21,384 
Clad-Rex Steel, LLCSpecialty Manufacturer of Vinyl-Clad Metal
Secured Debt (25) 10/28/2022  1/15/2024— — — 
Secured Debt 12/20/201611.50%  1/15/20248,560 8,560 8,422 
Secured Debt12/20/201610.00%12/20/20361,013 1,004 1,004 
Member Units (8) 12/20/20167177,280 5,200 
Member Units (29) 12/20/2016800509 1,129 
17,353 15,755 
Cody Pools, Inc.Designer of Residential and Commercial Pools
Secured Debt (25) 3/6/202012/17/2026— (11)— 
Secured Debt3/6/202012.50%12/17/202642,073 42,042 42,073 
Preferred Member Units (8) (29) 3/6/20205878,317 72,470 
50,348 114,543 
Colonial Electric Company LLCProvider of Electrical Contracting Services
Secured Debt (25) 3/31/20213/31/2026— — — 
Secured Debt3/31/202112.00%3/31/202622,050 21,946 21,627 
Preferred Member Units 6/27/2023960960 2,400 
Preferred Member Units3/31/202117,2807,680 7,680 
30,586 31,707 
CompareNetworks Topco, LLCInternet Publishing and Web Search Portals
Secured Debt (9) (17) (25) 1/29/2019SF+9.00%1/29/2022— — — 
Secured Debt (9) 1/29/201914.48%SF+9.00%1/29/20243,454 3,454 3,454 
Preferred Member Units (8) 1/29/20191,9751,975 14,450 
5,429 17,904 
Compass Systems & Sales, LLCDesigner of End-to-End Material Handling Solutions
Secured Debt(25)11/22/202311/22/2028— — — 
Secured Debt11/22/202313.50%11/22/202817,200 17,034 17,034 
Preferred Equity11/22/20237,4547,454 7,454 
24,488 24,488 
Copper Trail Fund Investments(12) (13)Investment Partnership
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2023
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (28)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
LP Interests (CTMH, LP) (8) (30) 7/17/201738.75%568 568 
Cybermedia Technologies, LLCIT and Digital Services Provider
Secured Debt(25)5/5/20235/5/2028— — — 
Secured Debt5/5/202313.00%5/5/202828,638 28,389 28,389 
Preferred Member Units5/5/202355615,000 15,000 
43,389 43,389 
Datacom, LLCTechnology and Telecommunications Provider
Secured Debt3/1/20227.50%12/31/2025450 447 447 
Secured Debt3/31/202110.00%12/31/20258,352 8,073 7,587 
Preferred Member Units 3/31/20219,0002,610 70 
11,130 8,104 
Digital Products Holdings LLCDesigner and Distributor of Consumer Electronics
Secured Debt (9) 4/1/201815.38%SF+10.00%4/27/202614,873 14,758 14,690 
Preferred Member Units (8) 4/1/20183,8579,501 9,835 
24,259 24,525 
Direct Marketing Solutions, Inc.Provider of Omni-Channel Direct Marketing Services
Secured Debt 2/13/201814.00%  2/13/20261,233 1,174 1,233 
Secured Debt 12/27/202214.00%  2/13/202625,543 25,457 25,543 
Preferred Stock (8) 2/13/20188,4008,400 20,740 
35,031 47,516 
Elgin AcquireCo, LLCManufacturer and Distributor of Engine and Chassis Components
Secured Debt (9) (25) 10/3/2022SF+6.00%10/3/2027— (7)(7)
Secured Debt10/3/202212.00%10/3/202718,773 18,632 18,632 
Secured Debt10/3/20229.00%10/3/20526,313 6,252 6,252 
Common Stock10/3/20222855,726 6,090 
Common Stock (29) 10/3/20229391,558 1,670 
32,161 32,637 
Gamber-Johnson Holdings, LLCManufacturer of Ruggedized Computer Mounting Systems
Secured Debt (9) (25) (41)6/24/2016SF+7.50%1/1/2028— — — 
Secured Debt (9) (41)12/15/202210.50%SF+7.50%1/1/202854,078 53,813 54,078 
Member Units (8) 6/24/20169,04217,692 96,710 
71,505 150,788 
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2023
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (28)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
Garreco, LLCManufacturer and Supplier of Dental Products
Secured Debt (9) (42)7/15/20139.50%SF+8.00%1/31/20243,088 3,088 3,088 
Member Units 7/15/20131,2001,200 1,580 
4,288 4,668 
GRT Rubber Technologies LLCManufacturer of Engineered Rubber Products
Secured Debt12/21/201811.48%SF+6.00%10/29/20262,400 2,394 2,400 
Secured Debt12/19/201413.48%SF+8.00%10/29/202640,493 40,360 40,493 
Member Units 12/19/20145,879 13,065 44,440 
55,819 87,333 
Gulf Manufacturing, LLCManufacturer of Specialty Fabricated Industrial Piping Products
Member Units(8)8/31/20074382,980 9,070 
Gulf Publishing Holdings, LLCEnergy Industry Focused Media and Publishing
Secured Debt (9) (25) 9/29/2017SF+9.50%7/1/2027— — — 
Secured Debt7/1/202212.50%7/1/20272,400 2,400 2,284 
Preferred Equity7/1/202263,7205,600 2,460 
Member Units4/29/20163,6813,681 — 
11,681 4,744 
Harris Preston Fund Investments(12) (13)Investment Partnership
LP Interests (2717 MH, L.P.) (8) (30) 10/1/201749.26%3,345 6,050 
LP Interests (2717 HPP-MS, L.P.)(30)3/11/202249.26%248 315 
3,593 6,365 
Harrison Hydra-Gen, Ltd.Manufacturer of Hydraulic Generators
Common Stock6/4/2010107,456718 4,660 
IG Investor, LLCMilitary and Other Tactical Gear
Secured Debt(25)6/21/20236/21/2028— (35)(35)
Secured Debt6/21/202313.00%6/21/202837,264 36,934 36,934 
Common Equity6/21/202314,40014,400 14,400 
51,299 51,299 
Jensen Jewelers of Idaho, LLCRetail Jewelry Store
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2023
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (28)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
Secured Debt (17) (25) 8/29/2017 P+6.75% 11/14/2023— — — 
Secured Debt (9) (17) 11/14/200615.25%P+6.75%11/14/20231,998 1,998 1,998 
Member Units(8)11/14/2006627811 12,420 
2,809 14,418 
JorVet Holdings, LLCSupplier and Distributor of Veterinary Equipment and Supplies
Secured Debt3/28/202212.00%3/28/202725,650 25,483 25,483 
Preferred Equity(8)3/28/2022107,40610,741 10,741 
36,224 36,224 
KBK Industries, LLCManufacturer of Specialty Oilfield and Industrial Products
Secured Debt2/24/20239.00%2/24/20284,700 4,662 4,700 
Member Units(8)1/23/2006325783 22,770 
5,445 27,470 
Kickhaefer Manufacturing Company, LLCPrecision Metal Parts Manufacturing
Secured Debt10/31/201812.00%10/31/202619,799 19,774 19,774 
Secured Debt10/31/20189.00%10/31/20483,840 3,805 3,805 
Preferred Equity10/31/201858112,240 9,690 
Member Units(29)10/31/2018800992 2,730 
36,811 35,999 
Metalforming Holdings, LLCDistributor of Sheet Metal Folding and Metal Forming Equipment
Secured Debt(25)10/19/202210/19/2024— — — 
Secured Debt10/19/202212.75%10/19/202723,802 23,623 23,623 
Preferred Equity(8)10/19/20225,915,5858.00%8.00%6,035 6,035 
Common Stock10/19/20221,537,2191,537 1,500 
31,195 31,158 
MH Corbin Holding LLCManufacturer and Distributor of Traffic Safety Products
Secured Debt(17)8/31/201513.00%12/31/20225,400 5,400 5,022 
Preferred Member Units3/15/201966,0004,400 330 
Preferred Member Units9/1/20154,0006,000 — 
15,800 5,352 
MS Private Loan Fund I, LP(12) (13)Investment Partnership
Secured Debt(25)1/26/202112/31/2024— — — 
LP Interests  (8) (30) 1/26/202114.51%14,250 14,527 
14,250 14,527 
MS Private Loan Fund II, LP(12) (13)Investment Partnership
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2023
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (28)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
Secured Debt(9)9/5/20238.88%SF+3.50%9/5/202523,500 23,367 23,367 
LP Interests (30)9/5/202313.37%1,561 1,561 
24,928 24,928 
MSC Adviser I, LLC(16)Third Party Investment Advisory Services
Member Units(8)11/22/2013100%29,500 174,063 
MSC Income Fund, Inc.(12) (13)Business Development Company
Common Equity(8)5/2/20221,290,26710,000 10,025 
Mystic Logistics Holdings, LLCLogistics and Distribution Services Provider for Large Volume Mailers
Secured Debt(25)8/18/20141/31/2024— — — 
Secured Debt8/18/201410.00%1/31/20245,746 5,746 5,746 
Common Stock(8)8/18/20145,8732,720 26,390 
8,466 32,136 
NAPCO Precast, LLCPrecast Concrete Manufacturing
Member Units1/31/20082,9552,975 11,730 
Nebraska Vet AcquireCo, LLCMixed-Animal Veterinary and Animal Health Product Provider
Secured Debt (9) (25) 12/31/2020SF+7.00%12/31/2025— — — 
Secured Debt12/31/202012.00%12/31/202525,794 25,673 25,794 
Secured Debt12/31/202012.00%12/31/202510,500 10,456 10,500 
Preferred Member Units(8)12/31/20206,9876,987 15,020 
43,116 51,314 
NexRev LLCProvider of Energy Efficiency Products & Services
Secured Debt(25)2/28/2018 2/28/2025— — — 
Secured Debt2/28/201810.00%2/28/20259,811 9,751 9,751 
Preferred Member Units(8)2/28/2018103,144,1868,213 6,350 
17,964 16,101 
NRP Jones, LLCManufacturer of Hoses, Fittings and Assemblies
Secured Debt12/21/201712.00%3/20/20252,080 2,080 2,080 
Member Units 12/22/201165,962114 53 
Member Units(8)12/22/2011 3,603 1,466 
5,797 3,599 
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2023
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (28)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
NuStep, LLCDesigner, Manufacturer and Distributor of Fitness Equipment
Secured Debt(9)1/31/201711.98%SF+6.50%1/31/20253,600 3,600 3,600 
Secured Debt1/31/201712.00%1/31/202518,440 18,426 18,426 
Preferred Member Units11/2/20222,0622,062 5,150 
Preferred Member Units1/31/201740610,200 9,240 
34,288 36,416 
OMi Topco, LLCManufacturer of Overhead Cranes
Secured Debt8/31/202112.00%8/31/202612,750 12,682 12,750 
Preferred Member Units(8)4/1/20089001,080 36,380 
13,762 49,130 
Orttech Holdings, LLCDistributor of Industrial Clutches, Brakes and Other Components
Secured Debt (9) (25) 7/30/2021SF+11.00%7/31/2026— — — 
Secured Debt(9)7/30/202116.48%SF+11.00%7/31/202622,040 21,925 22,040 
Preferred Stock (8) (29) 7/30/202110,00010,000 17,050 
31,925 39,090 
Pearl Meyer Topco LLCProvider of Executive Compensation Consulting Services
Secured Debt 4/27/202012.00%12/31/20273,500 3,497 3,500 
Secured Debt 4/27/202012.00%12/31/202720,000 19,956 20,000 
Secured Debt4/27/202012.00%12/31/202727,681 27,601 27,681 
Preferred Equity(8)4/27/202015,06113,000 44,090 
64,054 95,271 
Pinnacle TopCo, LLCManufacturer and Distributor of Garbage Can Liners, Poly Bags, Produce Bags, and Other Similar Products
Secured Debt12/21/20238.00%12/31/2028460 444 444 
Secured Debt12/21/202313.00%12/31/202830,640 30,339 30,339 
Preferred Equity12/21/202344012,540 12,540 
43,323 43,323 
PPL RVs, Inc.Recreational Vehicle Dealer
Secured Debt (9) (25) 10/31/2019SF+8.75%11/15/2027— (7)— 
Secured Debt(9)11/15/201614.23%SF+8.75%11/15/202719,877 19,697 19,877 
Common Stock 6/10/20102,0002,150 16,980 
Common Stock(29)6/14/2022238,421238 368 
22,078 37,225 
Principle Environmental, LLCNoise Abatement Service Provider
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2023
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (28)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
Secured Debt(25)2/1/201111/15/2026— — — 
Secured Debt7/1/201113.00%11/15/20265,897 5,829 5,829 
Preferred Member Units(8)2/1/201121,8065,709 10,750 
Common Stock1/27/20211,0371,200 510 
12,738 17,089 
Quality Lease Service, LLCProvider of Rigsite Accommodation Unit Rentals and Related Services
Member Units6/8/20151,0007,546 460 
River Aggregates, LLCProcessor of Construction Aggregates
Member Units(29)12/20/20131,500369 3,710 
Robbins Bros. Jewelry, Inc.Bridal Jewelry Retailer
Secured Debt(25)12/15/2021 12/15/2026— (26)(26)
Secured Debt 12/15/202112.50% 12/15/202634,110 33,909 30,798 
Preferred Equity12/15/202111,07011,070 — 
44,953 30,772 
Tedder Industries, LLCManufacturer of Firearm Holsters and Accessories
Secured Debt(17)8/31/201812.00%8/31/20231,840 1,840 1,726 
Secured Debt(17)8/31/201812.00%8/31/202315,200 15,200 14,262 
Preferred Member Units8/28/20236,605661 — 
Preferred Member Units2/1/20235,643564 — 
Preferred Member Units8/31/20185449,245 — 
27,510 15,988 
Televerde, LLCProvider of Telemarketing and Data Services
Preferred Stock1/26/2022248718 1,794 
Member Units(8)1/6/20114601,290 4,734 
2,008 6,528 
Trantech Radiator Topco, LLCTransformer Cooling Products and Services
Secured Debt(25)5/31/20195/31/2024— (1)— 
Secured Debt5/31/201912.00%5/31/20247,920 7,911 7,920 
Common Stock(8)5/31/20196154,655 12,740 
12,565 20,660 
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2023
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (28)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
Vision Interests, Inc.Manufacturer / Installer of Commercial Signage
Series A Preferred Stock(8)12/23/20113,000,0003,000 3,000 
Volusion, LLCProvider of Online Software-as-a-Service eCommerce Solutions
Secured Debt3/31/202310.00%3/31/20252,100 2,100 2,100 
Preferred Member Units3/31/20235,097,5958,646 7,250 
Preferred Member Units3/31/2023142,512— — 
Preferred Member Units1/26/20154,876,67014,000 — 
Common Stock3/31/20231,802,7802,576 — 
27,322 9,350 
VVS Holdco LLCOmnichannel Retailer of Animal Health Products
Secured Debt (9) (17) (25) 12/1/2021 SF+6.00%12/1/2023— — — 
Secured Debt 12/1/202111.50%12/1/202628,200 28,035 28,035 
Preferred Equity (8) (29) 12/1/202112,24012,240 12,240 
40,275 40,275 
Ziegler’s NYPD, LLCCasual Restaurant Group
Secured Debt6/1/201512.00%10/1/2024450 450 450 
Secured Debt10/1/20086.50%10/1/20241,000 1,000 945 
Secured Debt10/1/200814.00%10/1/20242,750 2,750 2,080 
Preferred Member Units6/30/201510,0722,834 — 
Warrants(27)7/1/201558710/1/2025600 — 
7,634 3,475 
Subtotal Control Investments (81.0% of net assets at fair value)
$1,435,131 $2,006,698 
Affiliate Investments (6)
AAC Holdings, Inc.(11)Substance Abuse Treatment Service Provider
Secured Debt1/31/202318.00%18.00%6/25/2025$423 $419 $418 
Secured Debt12/11/202018.00%18.00%6/25/202514,053 13,970 13,895 
Common Stock12/11/2020593,9283,148 — 
Warrants(27)12/11/2020554,35312/11/2025— — 
17,537 14,313 
Boccella Precast Products LLCManufacturer of Precast Hollow Core Concrete
Secured Debt9/23/202110.00%2/28/2027320 320 320 
Member Units 6/30/20172,160,0002,256 1,990 
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2023
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (28)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
2,576 2,310 
Buca C, LLCCasual Restaurant Group
Secured Debt(17)6/30/201512.00%8/31/202316,980 16,980 12,144 
Preferred Member Units6/30/201566.00%6.00%4,770 — 
21,750 12,144 
Career Team Holdings, LLCProvider of Workforce Training and Career Development Services
Secured Debt (9) 12/17/202111.38%SF+6.00%12/17/2026900 881 881 
Secured Debt12/17/202113.00%12/17/202620,025 19,906 19,906 
Common Stock12/17/2021450,0004,500 4,500 
25,287 25,287 
Classic H&G Holdings, LLCProvider of Engineered Packaging Solutions
Secured Debt(9)3/12/202011.69%SF+6.00%3/12/20254,560 4,560 4,560 
Secured Debt3/12/20208.00%3/12/202519,274 19,224 19,274 
Preferred Member Units(8)3/12/20201545,760 16,000 
29,544 39,834 
Congruent Credit Opportunities Funds(12) (13)Investment Partnership
LP Interests (Congruent Credit Opportunities Fund
  III, LP)		 (8) (30) 2/4/201512.49%4,778 4,352 
DMA Industries, LLCDistributor of aftermarket ride control products
Secured Debt11/19/202112.00%11/19/202618,800 18,685 18,800 
Preferred Equity11/19/20215,9445,944 7,660 
24,629 26,460 
Dos Rios Partners(12) (13)Investment Partnership
LP Interests (Dos Rios Partners, LP)(30)4/25/201320.24%6,313 8,443 
LP Interests (Dos Rios Partners - A, LP)(30)4/25/20136.43%2,005 2,631 
8,318 11,074 
Dos Rios Stone Products LLC(10)Limestone and Sandstone Dimension Cut Stone Mining Quarries
Class A Preferred Units(29)6/27/20162,000,0002,000 1,580 
EIG Fund Investments(12) (13)Investment Partnership
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2023
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (28)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
LP Interests (EIG Global Private Debt Fund-A, L.P.) (8) (30) 11/6/20155,000,000808 760 
Flame King Holdings, LLCPropane Tank and Accessories Distributor
Preferred Equity(8)10/29/20219,36010,400 27,900 
Freeport Financial Funds(12) (13)Investment Partnership
LP Interests (Freeport Financial SBIC Fund LP)(30)3/23/20159.30%2,859 3,012 
LP Interests (Freeport First Lien Loan Fund III LP) (8) (30) 7/31/20155.95%4,160 3,704 
7,019 6,716 
GFG Group, LLCGrower and Distributor of a Variety of Plants and Products to Other Wholesalers, Retailers and Garden Centers
Secured Debt3/31/20218.00%3/31/20269,345 9,302 9,345 
Preferred Member Units(8)3/31/20212264,900 11,460 
14,202 20,805 
Harris Preston Fund Investments(12) (13)Investment Partnership
LP Interests (HPEP 3, L.P.)(30)8/9/20178.22%2,296 4,225 
LP Interests (HPEP 4, L.P.)(30)7/12/202211.61%3,773 3,773 
LP Interests (423 COR, L.P.) (8) (30) 6/2/202222.93%1,400 1,869 
LP Interests (423 HAR, L.P.)(30)6/2/202315.60%750 996 
8,219 10,863 
Hawk Ridge Systems, LLCValue-Added Reseller of Engineering Design and Manufacturing Solutions
Secured Debt(9)12/2/201611.65%SF+6.00%1/15/20261,974 1,972 1,974 
Secured Debt12/2/201612.50%1/15/202645,256 45,144 45,256 
Preferred Member Units 12/2/20162262,850 17,460 
Preferred Member Units(29)12/2/2016226150 920 
50,116 65,610 
Houston Plating and Coatings, LLCProvider of Plating and Industrial Coating Services
Unsecured Convertible Debt5/1/20178.00%10/2/20243,000 3,000 2,880 
Member Units(8)1/8/2003322,2972,352 3,340 
5,352 6,220 
I-45 SLF LLC(12) (13)Investment Partnership
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2023
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (28)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
Member Units (Fully diluted 20.0%; 21.75% profits interest)
(8)10/20/2015 20,200 13,490 
Independent Pet Partners Intermediate Holdings, LLC(10)Omnichannel Retailer of Specialty Pet Products
Common Equity4/7/202318,006,40718,300 17,690 
Infinity X1 Holdings, LLCManufacturer and Supplier of Personal Lighting Products
Secured Debt3/31/202313.00%3/31/202817,550 17,403 17,403 
Preferred Equity3/31/202380,0004,000 4,000 
21,403 21,403 
Integral Energy Services(10)Nuclear Power Staffing Services
Secured Debt(9)8/20/202113.16%SF+7.50%8/20/202614,485 14,323 13,891 
Preferred Equity12/7/20233,18810.00%10.00%227 300 
Common Stock8/20/20219,9681,356 160 
15,906 14,351 
Iron-Main Investments, LLCConsumer Reporting Agency Providing Employment Background Checks and Drug Testing
Secured Debt8/2/202113.50%1/31/20284,514 4,487 4,487 
Secured Debt9/1/202113.50%1/31/20282,940 2,922 2,922 
Secured Debt11/15/202113.50%1/31/20288,944 8,944 8,944 
Secured Debt11/15/202113.50%1/31/202819,624 19,503 19,503 
Secured Debt1/31/202313.50%1/31/202810,562 10,273 10,273 
Common Stock8/3/2021203,0162,756 2,680 
48,885 48,809 
ITA Holdings Group, LLCAir Ambulance Services
Secured Debt(9)6/21/202316.59%SF+9.00%2.00%6/21/2027826 816 816 
Secured Debt(9)6/21/202316.59%SF+9.00%2.00%6/21/2027711 697 697 
Secured Debt(9)6/21/202315.59%SF+8.00%2.00%6/21/20274,362 3,430 3,430 
Secured Debt(9)6/21/202317.59%SF+10.00%2.00%6/21/20274,362 3,430 3,430 
Warrants(27)6/21/2023193,3076/21/20332,091 2,091 
10,464 10,464 
Johnson Downie Opco, LLCExecutive Search Services
Secured Debt (25) 12/10/2021  12/10/2026— (18)— 
Secured Debt 12/10/202115.00%  12/10/202624,207 24,066 24,207 
Preferred Equity 12/10/20213,3103,635 9,620 
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2023
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (28)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
27,683 33,827 
OnAsset Intelligence, Inc.Provider of Transportation Monitoring / Tracking Products and Services
Secured Debt(14)4/18/201112.00%12.00%12/31/20244,415 4,415 1,493 
Secured Debt(14)5/10/201312.00%12.00%12/31/20242,116 2,116 716 
Secured Debt(14)3/21/201412.00%12.00%12/31/2024983 983 332 
Secured Debt(14)5/20/201412.00%12.00%12/31/2024964 964 326 
Unsecured Debt(14)6/5/201710.00%10.00%12/31/2024305 305 305 
Preferred Stock 4/18/20119127.00%7.00%1,981 — 
Common Stock4/15/2021635830 — 
Warrants(27)4/18/20114,6995/10/20251,089 — 
12,683 3,172 
Oneliance, LLCConstruction Cleaning Company
Secured Debt (9) (17) (25) 8/6/2021SF+11.00%8/6/2023— — — 
Secured Debt(9)8/6/202116.48%SF+11.00%8/6/20265,440 5,411 5,350 
Preferred Stock8/6/20211,1281,128 1,128 
6,539 6,478 
Rocaceia, LLC (Quality Lease and Rental Holdings, LLC)Provider of Rigsite Accommodation Unit Rentals and Related Services
Preferred Member Units1/8/20132502,500 — 
SI East, LLCRigid Industrial Packaging Manufacturing
Secured Debt 8/31/201811.25%6/16/20281,125 1,108 1,125 
Secured Debt(23)6/16/202312.47%6/16/202854,536 54,295 54,536 
Preferred Member Units(8)8/31/20181651,525 19,170 
56,928 74,831 
Slick Innovations, LLCText Message Marketing Platform
Secured Debt9/13/201814.00%12/22/202711,440 11,345 11,440 
Common Stock 9/13/201870,000456 2,310 
11,801 13,750 
Student Resource Center, LLC(10)Higher Education Services
Secured Debt(14)12/31/20228.50%  8.50%12/31/20275,327 4,884 3,190 
Preferred Equity12/31/20225,907,649— — 
4,884 3,190 
Superior Rigging & Erecting Co.Provider of Steel Erecting, Crane Rental & Rigging Services
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2023
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (28)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
Secured Debt8/31/202012.00%8/31/202520,500 20,427 20,427 
Preferred Member Units8/31/20201,6364,500 5,940 
24,927 26,367 
The Affiliati Network, LLCPerformance Marketing Solutions
Secured Debt 8/9/202113.00%8/9/2026160 150 150 
Secured Debt8/9/202113.00%8/9/20267,521 7,475 7,347 
Preferred Stock9/1/2023172,110172 172 
Preferred Stock(8)8/9/20211,280,0006,400 6,400 
14,197 14,069 
UnionRock Energy Fund II, LP(12) (13)Investment Partnership
LP Interests(30)6/15/202011.11%3,719 5,694 
UnionRock Energy Fund III, LP(12) (13)Investment Partnership
LP Interests(30)6/6/202325.00%2,493 2,838 
UniTek Global Services, Inc.(11)Provider of Outsourced Infrastructure Services
Secured Convertible Debt1/1/202115.00%15.00%6/30/20281,714 1,714 3,889 
Secured Convertible Debt1/1/202115.00%15.00%6/30/2028840 840 1,908 
Preferred Stock(8)8/29/20191,133,10220.00%20.00%2,609 2,833 
Preferred Stock8/21/20181,521,12220.00%20.00%2,188 3,698 
Preferred Stock6/30/20172,281,68219.00%19.00%3,667 — 
Preferred Stock1/15/20154,336,86613.50%13.50%7,924 — 
Common Stock4/1/2020945,507— — 
18,942 12,328 
Universal Wellhead Services Holdings, LLC(10)Provider of Wellhead Equipment, Designs, and Personnel to the Oil & Gas Industry
Preferred Member Units(29)12/7/2016716,94914.00%14.00%1,032 150 
Member Units(29)12/7/20164,000,0004,000 — 
5,032 150 
World Micro Holdings, LLCSupply Chain Management
Secured Debt12/12/202213.00%12/12/202712,123 12,028 12,028 
Preferred Equity(8)12/12/20223,8453,845 3,845 
15,873 15,873 
Subtotal Affiliate Investments (24.8% of net assets at fair value)
$575,894 $615,002 
Non-Control Investments (7)
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2023
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (28)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
AB Centers Acquisition Corporation(10)Applied Behavior Analysis Therapy Provider
Secured Debt (9) (25) 9/6/2022P+5.00%9/6/2028$— $(62)$— 
Secured Debt (9) 9/6/202211.43%SF+6.00%9/6/20281,921 1,894 1,921 
Secured Debt (9) 9/6/202211.43%SF+6.00%9/6/202819,817 19,303 19,817 
Secured Debt(9)6/21/202311.43%SF+6.00%9/6/20281,372 1,305 1,372 
22,440 23,110 
Acumera, Inc.(10)Managed Security Service Provider
Secured Debt (9) (25) 6/7/2023 SF+7.50%6/7/2028— (2)(2)
Secured Debt(9)6/7/202312.98%SF+7.50%6/7/202824,796 24,526 24,796 
Warrants(43)6/7/202317,5255/19/2028— 110 
24,524 24,904 
Adams Publishing Group, LLC(10)Local Newspaper Operator
Secured Debt (9) (41)3/11/202211.00%SF+7.00%1.00%3/11/20277,841 7,841 7,684 
Secured Debt (9) (41)3/11/202211.00%SF+7.00%1.00%3/11/202721,207 21,168 20,784 
29,009 28,468 
ADS Tactical, Inc.(11)Value-Added Logistics and Supply Chain Provider to the Defense Industry
Secured Debt(9)3/29/202111.22%SF+5.75%3/19/202610,952 10,856 10,860 
AMEREQUIP LLC.(10)Full Services Provider Including Design, Engineering and Manufacturing of Commercial and Agricultural Equipment
Secured Debt (9) (25) 8/31/2022SF+7.40%8/31/2027— (108)(108)
Secured Debt (9) 8/31/202212.76%SF+7.40%8/31/202728,422 28,018 28,422 
Common Stock(8)8/31/20222351,844 2,120 
29,754 30,434 
American Health Staffing Group, Inc.(10)Healthcare Temporary Staffing
Secured Debt (9) (25) 11/19/2021P+5.00%11/19/2026— (8)(8)
Secured Debt(9)11/19/202113.50%P+5.00%11/19/20266,550 6,512 6,550 
6,504 6,542 
American Nuts, LLC(10)Roaster, Mixer and Packager of Bulk Nuts and Seeds
Secured Debt (9) 3/11/202215.29%SF+9.75%15.29%4/10/20266,462 6,413 5,495 
Secured Debt (9) 3/11/202215.29%SF+9.75%15.29%4/10/202610,507 10,413 8,922 
Secured Debt (9) (14) 3/11/202217.29%SF+11.75%17.29%4/10/20265,705 5,645 3,369 
Secured Debt (9) (14) 3/11/202217.29%SF+11.75%17.29%4/10/20269,283 9,169 5,482 
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2023
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (28)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
31,640 23,268 
American Teleconferencing Services, Ltd.(11)Provider of Audio Conferencing and Video Collaboration Solutions
Secured Debt (14) (17) 9/17/2021   4/7/20232,980 2,980 134 
Secured Debt (14) (17) 5/19/2016   6/8/202314,370 13,706 647 
16,686 781 
ArborWorks, LLC(10)Vegetation Management Services
Secured Debt 11/6/202315.00%  15.00%11/6/20281,907 1,907 1,907 
Secured Debt (9) 11/6/202312.04%SF+6.50%12.04%11/6/20287,149 7,149 7,149 
Preferred Equity11/6/202332,50714,060 14,060 
Preferred Equity11/6/202332,507— — 
Common Equity11/9/20213,898234 — 
23,350 23,116 
Archer Systems, LLC(10)Mass Tort Settlement Administration Solutions Provider
Common Stock8/11/20221,387,8321,388 2,230 
ATS Operating, LLC(10)For-Profit Thrift Retailer
Secured Debt (9) 1/18/202212.16%SF+6.50%1/18/2027360 360 360 
Secured Debt (9) 1/18/202211.16%SF+5.50%1/18/20276,660 6,660 6,660 
Secured Debt (9) 1/18/202213.16%SF+7.50%1/18/20276,660 6,660 6,660 
Common Stock1/18/2022720,000720 670 
14,400 14,350 
AVEX Aviation Holdings, LLC(10)Specialty Aircraft Dealer & MRO Provider
Secured Debt (9) (25) 12/23/2022 SF+7.25%12/23/2027— (120)(38)
Secured Debt (9) 12/23/202212.76%SF+7.25%12/23/202724,602 23,816 24,080 
Common Equity(8)12/15/2021984965 892 
24,661 24,934 
Berry Aviation, Inc.(10)Charter Airline Services
Preferred Member Units(29)11/12/2019122,416  — 200 
Preferred Member Units (8) (29) 7/6/20181,548,387  — 2,560 
— 2,760 
Bettercloud, Inc.(10)SaaS Provider of Workflow Management and Business Application Solutions
Secured Debt (9) (25) 6/30/2022SF+7.25% 6/30/2028— (62)(62)
Secured Debt (9) 6/30/202212.64%SF+7.25%6.25%6/30/202829,403 29,006 27,550 
28,944 27,488 
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2023
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (28)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
Binswanger Enterprises, LLC(10)Glass Repair and Installation Service Provider
Member Units3/10/20171,050,0001,050 120 
Bluestem Brands, Inc.(11)Multi-Channel Retailer of General Merchandise
Secured Debt(9)10/19/202216.00%P+7.50%15.00%8/28/20251,885 1,885 1,767 
Secured Debt(9)8/28/202013.96%SF+8.50%12.96%8/28/20253,676 3,076 3,446 
Common Stock 10/1/2020723,1841 550 
Warrants(27)10/19/2022163,29510/19/20321,036 120 
5,998 5,883 
Bond Brand Loyalty ULC(10) (13) (21)Provider of Loyalty Marketing Services
Secured Debt (9) (25) 5/1/2023SF+7.00%5/1/2028— (25)(25)
Secured Debt(9)5/1/202311.54%SF+6.00%5/1/20286,405 6,294 6,405 
Secured Debt(9)5/1/202313.54%SF+8.00%5/1/20286,405 6,294 6,405 
Preferred Equity5/1/2023571571 500 
Common Equity5/1/2023571— — 
13,134 13,285 
Brainworks Software, LLC(10)Advertising Sales and Newspaper Circulation Software
Secured Debt (9) (14) (17) 8/12/201415.75%P+7.25%7/22/2019761 761 761 
Secured Debt (9) (14) (17) 8/12/201415.75%P+7.25%7/22/20197,056 7,056 1,075 
7,817 1,836 
Brightwood Capital Fund Investments(12) (13)Investment Partnership
LP Interests (Brightwood Capital Fund III, LP)(30)7/21/20141.55%6,527 4,080 
LP Interests (Brightwood Capital Fund IV, LP) (8) (30) 10/26/20160.59%4,350 4,358 
LP Interests (Brightwood Capital Fund V, LP) (8) (30) 7/12/20210.82%2,000 2,448 
12,877 10,886 
Burning Glass Intermediate Holding Company, Inc.(10)Provider of Skills-Based Labor Market Analytics
Secured Debt(9)6/14/202110.46%SF+5.00%6/10/2026465 445 465 
Secured Debt(9)6/14/202110.46%SF+5.00%6/10/202819,681 19,455 19,681 
19,900 20,146 
CAI Software LLCProvider of Specialized Enterprise Resource Planning Software
Preferred Equity 12/13/20211,788,5271,789 1,789 
Preferred Equity12/13/2021596,176— — 
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2023
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (28)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
1,789 1,789 
CaseWorthy, Inc.(10)SaaS Provider of Case Management Solutions
Secured Debt (9) (25) 5/18/2022SF+6.00%5/18/2027— (8)(8)
Secured Debt(9)5/18/202211.61%SF+6.00%5/18/20277,933 7,872 7,933 
Secured Debt(9)5/18/202211.61%SF+6.00%5/18/20276,102 6,061 6,102 
Common Equity12/30/2022245,926246 246 
14,171 14,273 
Channel Partners Intermediateco, LLC(10)Outsourced Consumer Services Provider
Secured Debt (9) (51) 2/7/202212.60%SF+7.00%2/7/20272,071 1,901 1,988 
Secured Debt(9)2/7/202212.66%SF+7.00%2/7/202736,540 36,077 35,064 
Secured Debt(9)6/24/202212.66%SF+7.00%2/7/20272,024 1,999 1,943 
Secured Debt(9)3/27/202312.66%SF+7.00%2/7/20274,893 4,792 4,695 
44,769 43,690 
Clarius BIGS, LLC(10)Prints & Advertising Film Financing
Secured Debt (14) (17) 9/23/2014  1/5/20152,677 2,677 16 
Computer Data Source, LLC(10)Third Party Maintenance Provider to the Data Center Ecosystem
Secured Debt (9) (34) 8/6/202113.52%SF+8.00%8/6/20265,000 4,948 4,848 
Secured Debt(9)8/6/202113.52%SF+8.00%8/6/202618,313 18,119 17,757 
23,067 22,605 
Construction Supply Investments, LLC(10)Distribution Platform of Specialty Construction Materials to Professional Concrete and Masonry Contractors
Member Units 12/29/2016861,6183,335 23,135 
CQ Fluency, LLC(10)Global Language Services Provider
Secured Debt (9) (25) 12/27/2023SF+7.00%6/27/2027— (66)(66)
Secured Debt (9) (25) 12/27/2023SF+7.00%6/27/2027— (66)(66)
Secured Debt(9)12/27/202312.45%SF+7.00%6/27/202711,250 10,920 10,920 
10,788 10,788 
Dalton US Inc.(10)Provider of Supplemental Labor Services
Common Stock8/16/2022515720 830 
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2023
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (28)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
DTE Enterprises, LLC(10)Industrial Powertrain Repair and Services
Class AA Preferred Member Units (non-voting)(8)4/13/201810.00%10.00%1,284 1,284 
Class A Preferred Member Units4/13/2018776,3168.00%8.00%776 260 
2,060 1,544 
Dynamic Communities, LLC(10)Developer of Business Events and Online Community Groups
Secured Debt(9)12/20/202210.45%SF+5.00%10.45%12/31/20262,071 1,912 1,912 
Secured Debt(9)12/20/202212.45%SF+7.00%12.45%12/31/20262,113 1,880 1,859 
Preferred Equity12/20/2022125,000128 60 
Preferred Equity12/20/20222,376,241— — 
Common Equity12/20/20221,250,000— — 
3,920 3,831 
Eastern Wholesale Fence LLC(10)Manufacturer and Distributor of Residential and Commercial Fencing Solutions
Secured Debt(9)11/19/202013.50%SF+8.00%10/30/2025967 930 927 
Secured Debt(9)11/19/202013.50%SF+8.00%10/30/20254,792 4,758 4,596 
Secured Debt(9)11/19/202013.50%SF+8.00%10/30/20259,557 9,483 9,167 
Secured Debt(9)4/20/202113.50%SF+8.00%10/30/20251,982 1,964 1,901 
Secured Debt(9)10/14/202113.50%SF+8.00%10/30/202510,846 10,747 10,403 
27,882 26,994 
Emerald Technologies Acquisition Co, Inc.(11)Design & Manufacturing
Secured Debt(9)2/10/202211.79%SF+6.25%12/29/20278,965 8,841 8,158 
EnCap Energy Fund Investments(12) (13)Investment Partnership
LP Interests (EnCap Energy Capital Fund VIII, L.P.) (8) (30) 1/22/20150.14%3,567 1,918 
LP Interests (EnCap Energy Capital Fund VIII Co-
Investors, L.P.)		 (8) (30) 1/21/20150.38%1,980 899 
LP Interests (EnCap Energy Capital Fund IX, L.P.) (8) (30) 1/22/20150.10%3,564 1,720 
LP Interests (EnCap Energy Capital Fund X, L.P.) (8) (30) 3/25/20150.15%6,742 5,858 
LP Interests (EnCap Flatrock Midstream Fund II, L.P.) (8) (30) 3/30/20150.84%5,083 1,413 
LP Interests (EnCap Flatrock Midstream Fund III, L.P.) (8) (30) 3/27/20150.25%4,495 4,056 
95
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2023
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (28)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
25,431 15,864 
Engineering Research & Consulting, LLC(10)Provider of Engineering & Consulting Services to US Department of Defense
Secured Debt (9) (25) 5/23/2022 P+5.50%5/23/2027— (35)— 
Secured Debt(9)5/23/202211.98%SF+6.50%5/23/202816,134 15,899 16,134 
15,864 16,134 
Escalent, Inc.(10)Market Research and Consulting Firm
Secured Debt (9) (25) 4/7/2023SF+8.00%4/7/2029— (35)(35)
Secured Debt(9)4/7/202313.45%SF+8.00%4/7/202926,313 25,620 26,313 
Common Equity4/7/2023649,794663 730 
26,248 27,008 
Event Holdco, LLC(10)Event and Learning Management Software for Healthcare Organizations and Systems
Secured Debt(9)12/22/202112.61%SF+7.00%12/22/20263,692 3,670 3,626 
Secured Debt(9)12/22/202112.61%SF+7.00%12/22/202644,169 43,905 43,373 
47,575 46,999 
Fuse, LLC(11)Cable Networks Operator
Secured Debt6/30/201912.00%12/31/20261,810 1,810 1,320 
Common Stock6/30/201910,429256 — 
2,066 1,320 
Garyline, LLC(10)Manufacturer of Consumer Plastic Products
Secured Debt (9) (25) 11/10/2023SF+6.75%11/10/2028— (256)(256)
Secured Debt(9)11/10/202312.22%SF+6.75%11/10/202832,471 31,529 31,529 
Common Equity11/10/2023705,882706 706 
31,979 31,979 
GS HVAM Intermediate, LLC(10)Specialized Food Distributor
Secured Debt (9) (52) 10/18/201911.96%SF+6.50%4/2/20251,545 1,542 1,545 
Secured Debt (9) (25) 10/18/2019SF+6.50%4/2/2025— (9)(9)
Secured Debt(9)10/18/201911.96%SF+6.50%4/2/202510,624 10,605 10,624 
Secured Debt(9)9/15/202311.96%SF+6.50%4/2/2025952 952 952 
Secured Debt(9)12/22/202311.96%SF+6.50%4/2/2025227 224 227 
13,314 13,339 
GULF PACIFIC ACQUISITION, LLC(10)Rice Processor and Merchandiser
Secured Debt (9) (47) 9/30/202211.28%SF+5.75%9/30/2028454 438 454 
Secured Debt(9)9/30/202211.38%SF+5.75%9/30/2028301 286 301 
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2023
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (28)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
Secured Debt(9)9/30/202211.25%SF+5.75%9/30/20283,615 3,558 3,615 
4,282 4,370 
HDC/HW Intermediate Holdings(10)Managed Services and Hosting Provider
Secured Debt (9) (17) 12/21/201814.34%SF+9.50%14.34%12/21/2023370 370 336 
Secured Debt (9) (17) 12/21/201814.34%SF+9.50%14.34%12/21/20233,751 3,751 3,406 
4,121 3,742 
HEADLANDS OP-CO LLC(10)Clinical Trial Sites Operator
Secured Debt (9) (25) 8/1/2022SF+6.50%8/1/2027— (48)(48)
Secured Debt(9)8/1/202211.86%SF+6.50%8/1/20276,733 6,622 6,733 
Secured Debt(9)8/1/202211.86%SF+6.50%8/1/202716,622 16,384 16,622 
22,958 23,307 
HOWLCO LLC(11) (13) (21)Provider of Accounting and Business Development Software to Real Estate End Markets
Secured Debt(9)8/19/202111.53%SF+6.00%10/23/202625,162 25,162 24,397 
Hybrid Promotions, LLC(10)Wholesaler of Licensed, Branded and Private Label Apparel
Secured Debt(9)6/30/202115.91%SF+8.25%2.00%6/30/20267,167 7,031 6,581 
IG Parent Corporation(11)Software Engineering
Secured Debt (9) (25) 7/30/2021 SF+5.75%7/30/2026— (20)— 
Secured Debt(9)7/30/202110.96%SF+5.50%7/30/20289,399 9,294 9,399 
Secured Debt(9)7/30/202110.96%SF+5.50%7/30/20284,953 4,899 4,953 
14,173 14,352 
Imaging Business Machines, L.L.C.(10)Technology Hardware & Equipment
Secured Debt (9) (33) 6/8/202312.41%SF+7.00%6/30/20281,581 1,500 1,571 
Secured Debt(9)6/8/202312.45%SF+7.00%6/30/202820,768 20,217 20,637 
Common Equity6/8/20238491,166 1,110 
22,883 23,318 
Implus Footcare, LLC(10)Provider of Footwear and Related Accessories
Secured Debt(9)6/1/201714.25%SF+7.75%1.00%7/31/202418,645 18,600 17,334 
Industrial Services Acquisition, LLC(10)Industrial Cleaning Services
Secured Debt (9) (37) 8/13/202112.22%SF+6.75%8/13/20261,390 1,367 1,390 
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2023
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (28)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
Secured Debt(9)8/13/202112.22%SF+6.75%8/13/202619,044 18,842 19,044 
Preferred Member Units (8) (29) 1/31/201814410.00%10.00%138 178 
Preferred Member Units (8) (29) 5/17/20198020.00%20.00%102 120 
Member Units(29)6/17/2016900900 690 
21,349 21,422 
Infolinks Media Buyco, LLC(10)Exclusive Placement Provider to the Advertising Ecosystem
Secured Debt(9)11/1/202111.21%SF+5.75%11/1/20261,504 1,480 1,504 
Secured Debt(9)11/1/202111.21%SF+5.75%11/1/20267,752 7,663 7,752 
9,143 9,256 
Insight Borrower Corporation(10)Test, Inspection, and Certification Instrument Provider
Secured Debt (9) (25) 7/19/2023SF+6.25%7/19/2028— (70)(70)
Secured Debt (9) (25) 7/19/2023SF+6.25%7/19/2029— (57)(57)
Secured Debt(9)7/19/202311.65%SF+6.25%7/19/202914,406 14,009 14,258 
Common Equity7/19/2023131,100656 656 
14,538 14,787 
Inspire Aesthetics Management, LLC(10)Surgical and Non-Surgical Plastic Surgery and Aesthetics Provider
Secured Debt (9) (35) 4/3/202313.53%SF+8.00%4/3/2028790 770 776 
Secured Debt(9)4/3/202313.55%SF+8.00%4/3/20287,308 7,146 7,177 
Secured Debt(9)6/14/202313.55%SF+8.00%4/3/20282,940 2,879 2,887 
Common Equity4/3/2023131,569417 240 
11,212 11,080 
Interface Security Systems, L.L.C(10)Commercial Security & Alarm Services
Secured Debt (17) (32) 12/9/202115.48%SF+10.00%8/7/20231,835 1,835 1,781 
Secured Debt (9) (14) (17) 8/7/201912.46%SF+7.00%12.46%8/7/20237,313 7,237 431 
Common Stock12/7/20212,143— — 
9,072 2,212 
Intermedia Holdings, Inc.(11)Unified Communications as a Service
Secured Debt(9)8/3/201811.47%SF+6.00%7/19/202520,201 20,172 19,570 
Invincible Boat Company, LLC.(10)Manufacturer of Sport Fishing Boats
Secured Debt(9)8/28/201912.00%SF+6.50%8/28/2025519 516 509 
Secured Debt(9)8/28/201912.00%SF+6.50%8/28/202516,812 16,747 16,515 
17,263 17,024 
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2023
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (28)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
INW Manufacturing, LLC(11)Manufacturer of Nutrition and Wellness Products
Secured Debt(9)5/19/202111.36%SF+5.75%3/25/20276,656 6,544 5,325 
Isagenix International, LLC(11)Direct Marketer of Health & Wellness Products
Secured Debt(9)4/13/202311.04%SF+5.50%8.54%4/14/20282,615 2,374 2,301 
Common Equity4/13/2023186,322— — 
2,374 2,301 
Jackmont Hospitality, Inc.(10)Franchisee of Casual Dining Restaurants
Secured Debt (9) (26) 10/26/202212.46%SF+7.00%11/4/2024835 823 835 
Secured Debt(9)11/8/202112.46%SF+7.00%11/4/20241,974 1,974 1,974 
Preferred Equity 11/8/20212,826,667  110 1,090 
2,907 3,899 
Joerns Healthcare, LLC(11)Manufacturer and Distributor of Health Care Equipment & Supplies
Secured Debt (9) (14) 11/15/202123.63%SF+18.00%23.63%1/31/20242,431 2,431 2,074 
Secured Debt (9) (14) 8/21/201921.63%SF+16.00%21.63%8/21/20242,057 2,038 143 
Secured Debt (9) (14) 8/21/201921.63%SF+16.00%21.63%8/21/20241,978 1,959 137 
Common Stock8/21/2019472,5794,429 — 
10,857 2,354 
JTI Electrical & Mechanical, LLC(10)Electrical, Mechanical and Automation Services
Secured Debt (9) (49) 12/22/202111.64%SF+6.00%12/22/20263,137 3,036 3,137 
Secured Debt(9)12/22/202111.61%SF+6.00%12/22/202636,000 35,562 36,000 
Common Equity12/22/20211,684,2111,684 1,710 
40,282 40,847 
KMS, LLC(10)Wholesaler of Closeout and Value-priced Products
Secured Debt(9)10/4/202114.75%SF+9.25%10/4/20261,034 1,002 943 
Secured Debt(9)10/4/202114.75%SF+9.25%10/4/20267,448 7,365 6,782 
8,367 7,725 
Lightbox Holdings, L.P.(11)Provider of Commercial Real Estate Software
Secured Debt5/9/201910.62%SF+5.00%5/9/202614,325 14,237 13,895 
LKCM Headwater Investments I, L.P.(12) (13)Investment Partnership
LP Interests(30)1/25/20132.27%1,746 2,988 
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2023
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (28)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
LL Management, Inc.(10)Medical Transportation Service Provider
Secured Debt(9)5/2/201912.71%SF+7.25%9/25/20247,960 7,940 7,960 
Secured Debt(9)5/2/201912.71%SF+7.25%9/25/20245,246 5,231 5,246 
Secured Debt(9)11/20/202012.71%SF+7.25%9/25/20242,803 2,796 2,803 
Secured Debt(9)2/26/202112.71%SF+7.25%9/25/20241,056 1,053 1,056 
Secured Debt(9)5/12/202212.71%SF+7.25%9/25/202410,694 10,658 10,694 
27,678 27,759 
LLFlex, LLC(10)Provider of Metal-Based Laminates
Secured Debt(9)8/16/202115.54%SF+9.00%1.00%8/16/20264,428 4,338 3,979 
Logix Acquisition Company, LLC(10)Competitive Local Exchange Carrier
Secured Debt(9)1/8/201813.25%P+4.75%12/22/202423,921 23,082 18,778 
Looking Glass Investments, LLC(12) (13)Specialty Consumer Finance
Member Units7/1/20153125 25 
Mako Steel, LP(10)Self-Storage Design & Construction
Secured Debt (9) (25) 3/15/2021 SF+6.75%3/15/2026— (28)— 
Secured Debt(9)3/15/202112.28%SF+6.75%3/15/202615,049 14,914 15,049 
14,886 15,049 
MB2 Dental Solutions, LLC(11)Dental Partnership Organization
Secured Debt(9)1/28/202111.46%SF+6.00%1/29/20272,803 2,785 2,803 
Secured Debt(9)1/28/202111.46%SF+6.00%1/29/20273,925 3,899 3,925 
Secured Debt(9)1/28/202111.46%SF+6.00%1/29/20273,464 3,440 3,464 
Secured Debt(9)1/28/202111.46%SF+6.00%1/29/20277,796 7,727 7,796 
17,851 17,988 
Microbe Formulas, LLC(10)Nutritional Supplements Provider
Secured Debt (9) (25) 4/4/2022SF+6.25%4/3/2028— (51)(51)
Secured Debt(9)4/4/202211.46%SF+6.00%4/3/202822,168 21,855 22,168 
21,804 22,117 
Mills Fleet Farm Group, LLC(10)Omnichannel Retailer of Work, Farm and Lifestyle Merchandise
Secured Debt(9)10/24/201812.52%SF+7.00%12/31/202618,152 17,883 17,524 
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2023
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (28)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
Mini Melts of America, LLC(10)Manufacturer and Distributor of Branded Premium Beaded Ice Cream
Secured Debt (9) (25) 11/30/2023SF+6.25%11/30/2028— (42)(42)
Secured Debt (9) (25) 11/30/2023SF+6.25%11/30/2028— (16)(16)
Secured Debt(9)11/30/202310.64%SF+5.25%11/30/20284,941 4,825 4,825 
Secured Debt(9)11/30/202312.64%SF+7.25%11/30/20284,941 4,820 4,820 
Common Equity11/30/2023459,657460 460 
10,047 10,047 
MonitorUS Holding, LLC(10) (13) (21)SaaS Provider of Media Intelligence Services
Secured Debt 5/24/202214.00%  4.00%5/24/20273,889 3,839 3,938 
Secured Debt 5/24/202214.00%  4.00%5/24/202710,211 10,068 11,164 
Secured Debt 5/24/202214.00%  4.00%5/24/202717,213 16,987 17,213 
Common Stock8/30/202244,445,814889 678 
31,783 32,993 
NBG Acquisition Inc(11)Wholesaler of Home Décor Products
Secured Debt(14)4/28/2017   4/26/20243,849 3,834 115 
NinjaTrader, LLC(10)Operator of Futures Trading Platform
Secured Debt (9) (25) 12/18/2019SF+7.00%12/18/2026— (9)(8)
Secured Debt (9) (25) 12/18/2019SF+7.00%12/18/2026— — — 
Secured Debt(9)12/18/201912.54%SF+7.00%12/18/202620,467 20,255 20,467 
Secured Debt(9)12/18/202312.52%SF+7.00%12/18/20267,222 7,089 7,222 
27,335 27,681 
Obra Capital, Inc. (f/k/a Vida Capital, Inc.)(11)Alternative Asset Manager
Secured Debt10/10/201911.47%SF+6.00%10/1/202617,373 16,558 14,897 
Ospemifene Royalty Sub LLC(10)Estrogen-Deficiency Drug Manufacturer and Distributor
Secured Debt(14)7/8/2013 11/15/20264,443 4,443 57 
Paragon Healthcare, Inc.(10)Infusion Therapy Treatment Provider
Secured Debt (9) (25) 1/19/2022 SF+5.75%1/19/2027— (79)— 
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2023
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (28)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
Secured Debt (9) (48) 1/19/202211.24%SF+5.75%1/19/20273,204 3,135 3,186 
Secured Debt(9)1/19/202211.25%SF+5.75%1/19/202718,597 18,265 18,490 
21,321 21,676 
Power System Solutions(10)Backup Power Generation
Secured Debt (9) (25) 6/7/2023SF+6.75%6/7/2028— (82)(82)
Secured Debt (9) (25) 6/7/2023SF+6.75%6/7/2028— (82)(82)
Secured Debt(9)6/7/202312.12%SF+6.75%6/7/202818,418 17,930 18,418 
Common Equity6/7/20231,2341,234 1,160 
19,000 19,414 
PrimeFlight Aviation Services(10)Air Freight & Logistics
Secured Debt(9)5/1/202312.28%SF+6.85%5/1/20297,960 7,750 7,960 
Secured Debt(9)9/7/202312.20%SF+6.85%5/1/2029760 738 760 
8,488 8,720 
PTL US Bidco, Inc(10) (13) (21)Manufacturers of Equipment, Including Drilling Rigs and Equipment, and Providers of Supplies and Services to Companies Involved In the Drilling, Evaluation and Completion of Oil and Gas Wells
Secured Debt (9) (39) 8/19/202212.80%SF+7.25%8/19/20273,022 2,885 2,998 
Secured Debt(9)8/19/202212.88%SF+7.25%8/19/202726,478 26,084 26,263 
28,969 29,261 
Purge Rite, LLC(10)HVAC Flushing and Filtration Services
Secured Debt (9) (25) 10/2/2023SF+8.00%10/2/2028— (47)(47)
Secured Debt(9)10/2/202313.70%SF+8.00%10/2/20289,844 9,610 9,610 
Preferred Equity10/2/20233,281,2503,281 3,281 
12,844 12,844 
RA Outdoors LLC(10)Software Solutions Provider for Outdoor Activity Management
Secured Debt (9) (37) 4/8/202112.22%SF+6.75%4/8/2026824 816 772 
Secured Debt(9)4/8/202112.21%SF+6.75%4/8/202613,369 13,280 12,512 
14,096 13,284 
Research Now Group, Inc. and Survey Sampling International, LLC(11)Provider of Outsourced Online Surveying
Secured Debt(9)12/29/201711.14%SF+5.50%12/20/202419,704 19,595 14,715 
Richardson Sales Solutions(10)Business Services
Secured Debt (9) (36) 8/24/202318.47%SF+6.50%8/24/20283,167 3,087 3,109 
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2023
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (28)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
Secured Debt(9)8/24/202311.88%SF+6.50%8/24/202840,102 38,858 39,376 
41,945 42,485 
Roof Opco, LLC(10)Residential Re-Roofing/Repair
Secured Debt (9) (25) 8/27/2021 SF+6.50%8/27/2026— (8)— 
Secured Debt(9)8/27/202112.16%SF+6.50%8/27/20263,376 3,328 3,314 
Secured Debt(9)8/27/202114.16%SF+8.50%8/27/20263,376 3,328 3,266 
6,648 6,580 
RTIC Subsidiary Holdings, LLC(10)Direct-To-Consumer eCommerce Provider of Outdoor Products
Secured Debt(9)9/1/202013.21%SF+7.75%9/1/2025548 536 534 
Secured Debt(9)9/1/202013.19%SF+7.75%9/1/202514,323 14,260 13,951 
Secured Debt(9)9/1/202013.19%SF+7.75%9/1/2025574 572 559 
15,368 15,044 
Rug Doctor, LLC.(10)Carpet Cleaning Products and Machinery
Secured Debt(9)7/16/202113.54%SF+6.00%2.00%11/16/20255,769 5,749 5,744 
Secured Debt(9)7/16/202113.54%SF+6.00%2.00%11/16/20258,121 8,059 8,086 
13,808 13,830 
South Coast Terminals Holdings, LLC(10)Specialty Toll Chemical Manufacturer
Secured Debt(9)12/10/202111.46%SF+6.00%12/13/2026446 394 394 
Secured Debt(9)12/10/202111.70%SF+6.00%12/13/202634,886 34,472 34,886 
Common Equity12/10/2021863,636864 836 
35,730 36,116 
SPAU Holdings, LLC(10)Digital Photo Product Provider
Secured Debt (9) (25) 7/1/2022SF+8.00%7/1/2027— (45)— 
Secured Debt(9)7/1/202213.72%SF+8.00%7/1/202715,728 15,506 15,728 
Common Stock7/1/2022638,710639 500 
16,100 16,228 
Stellant Systems, Inc.(11)Manufacturer of Traveling Wave Tubes and Vacuum Electronic Devices
Secured Debt(9)10/22/202111.04%SF+5.50%10/1/20287,527 7,475 7,527 
Secured Debt(9)11/7/202311.28%SF+5.75%10/1/20288,978 8,717 8,977 
16,192 16,504 
Team Public Choices, LLC(11)Home-Based Care Employment Service Provider
Secured Debt(9)12/22/202010.88%SF+5.00%12/18/202714,804 14,588 14,717 
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Consolidated Schedule of Investments (Continued)
December 31, 2023
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (28)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
Tectonic Financial, LLCFinancial Services Organization
Common Stock(8)5/15/2017200,0002,000 5,030 
Tex Tech Tennis, LLC(10)Sporting Goods & Textiles
Preferred Equity(29)7/7/20211,000,0001,000 2,840 
U.S. TelePacific Corp.(11)Provider of Communications and Managed Services
Secured Debt (9) (14) 6/1/202312.53%SF+7.15%6.00%5/2/20279,298 3,585 3,333 
Secured Debt(14)6/1/2023    5/2/2027946 20 — 
3,605 3,333 
USA DeBusk LLC(10)Provider of Industrial Cleaning Services
Secured Debt(9)10/22/201911.46%SF+6.00%9/8/202623,101 22,817 23,101 
Secured Debt(9)7/19/202311.96%SF+6.50%9/8/20269,017 8,862 9,017 
Secured Debt(9)11/21/202311.96%SF+6.50%9/8/20264,689 4,601 4,689 
36,280 36,807 
UserZoom Technologies, Inc.(10)Provider of User Experience Research Automation Software
Secured Debt(9)1/11/202312.99%SF+7.50%4/5/20294,000 3,899 4,000 
Veregy Consolidated, Inc.(11)Energy Service Company
Secured Debt (9) (25) 11/9/2020SF+5.25%11/3/2025— (408)(408)
Secured Debt(9)11/9/202011.64%SF+6.00%11/3/202717,433 17,195 15,775 
16,787 15,367 
Vistar Media, Inc.(10)Operator of Digital Out-of-Home Advertising Platform
Preferred Stock4/3/201970,207767 2,180 
Vitesse Systems(10)Component Manufacturing and Machining Platform
Secured Debt(9)12/22/202312.63%SF+7.00%12/22/202842,500 41,455 41,455 
VORTEQ Coil Finishers, LLC(10)Specialty Coating of Aluminum and Light-Gauge Steel
Common Equity(8)11/30/20211,038,4621,038 2,570 
Wall Street Prep, Inc.(10)Financial Training Services
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2023
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (28)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
Secured Debt (9) (25) 7/19/2021SF+7.00%7/19/2026— (4)(4)
Secured Debt(9)7/19/202112.54%SF+7.00%7/19/20263,723 3,685 3,723 
Common Stock7/19/2021400,000400 731 
4,081 4,450 
Watterson Brands, LLC(10)Facility Management Services
Secured Debt (9) (49) 12/17/202111.50%SF+6.00%12/17/20261,853 1,825 1,853 
Secured Debt(9)12/17/202111.50%SF+6.00%12/17/2026386 364 386 
Secured Debt(9)12/17/202111.50%SF+6.00%12/17/202615,886 15,736 15,886 
Secured Debt(9)12/17/202111.50%SF+6.00%12/17/202612,707 12,585 12,707 
30,510 30,832 
West Star Aviation Acquisition, LLC(10)Aircraft, Aircraft Engine and Engine Parts
Secured Debt (9) (50) 3/1/202211.34%SF+6.00%3/1/20282,405 2,365 2,405 
Secured Debt(9)3/1/202211.35%SF+6.00%3/1/202810,658 10,512 10,658 
Secured Debt(9)11/3/202311.35%SF+6.00%3/1/20285,303 5,199 5,303 
Common Stock3/1/20221,541,4001,541 2,990 
19,617 21,356 
Winter Services LLC(10)Provider of Snow Removal and Ice Management Services
Secured Debt (9) (40) 11/19/202112.64%SF+7.00%11/19/20262,222 2,198 2,222 
Secured Debt(9)11/19/202112.66%SF+7.00%11/19/20262,067 2,036 2,067 
Secured Debt(9)11/19/202112.66%SF+7.00%11/19/20269,300 9,193 9,300 
13,427 13,589 
Xenon Arc, Inc.(10)Tech-enabled Distribution Services to Chemicals and Food Ingredients Primary Producers
Secured Debt (9) (25) 12/17/2021SF+5.25%12/17/2026— (163)— 
Secured Debt(9)12/17/202111.22%SF+5.75%12/17/202724,057 23,713 24,057 
Secured Debt(9)12/17/202111.25%SF+5.75%12/17/202737,828 37,336 37,828 
60,886 61,885 
YS Garments, LLC(11)Designer and Provider of Branded Activewear
Secured Debt(9)8/22/201813.00%SF+7.50%8/9/202611,167 10,970 10,220 
Zips Car Wash, LLC(10)Express Car Wash Operator
Secured Debt (9) (38) 2/11/202212.71%SF+7.25%3/1/202417,279 17,246 16,380 
Secured Debt (9) (38) 2/11/202212.71%SF+7.25%3/1/20244,331 4,327 4,067 
21,573 20,447 
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2023
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (28)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
Subtotal Non-Control/Non-Affiliate Investments (67.2% of net assets at fair value)
$1,714,935 $1,664,571 
Total Portfolio Investments, December 31, 2023 (173.0% of net assets at fair value)
$3,725,960 $4,286,271 
Money market funds (included in cash and cash equivalents) (31)
Dreyfus Government Cash Management (44)$13,476 $13,476 
Fidelity Government Fund (45)1,678 1,678 
Fidelity Treasury (46)70 70 
Total money market funds$15,224 $15,224 
____________________
(1)All investments are Lower Middle Market portfolio investments, unless otherwise noted. See Note C — Fair Value Hierarchy for Investments — Portfolio Composition for a description of Lower Middle Market portfolio investments. All of the Company’s investments, unless otherwise noted, are encumbered either as security for the Company’s Corporate Facility or SPV Facility (each as defined in Note B.5. — Summary of Significant Accounting Policies — Deferred Financing Costs, and together the “Credit Facilities”) or in support of the SBA-guaranteed debentures issued by the Funds.
(2)Debt investments are income producing, unless otherwise noted by footnote (14), as described below. Equity and warrants are non-income producing, unless otherwise noted by footnote (8), as described below.
(3)See Note C — Fair Value Hierarchy for Investments — Portfolio Composition and Schedule 12-14 for a summary of geographic location of portfolio companies.
(4)Principal is net of repayments. Cost is net of repayments and accumulated unearned income. Negative cost is the result of the capitalized discount being greater than the principal amount outstanding on the loan.
(5)Control investments are defined by the 1940 Act as investments in which more than 25% of the voting securities are owned or where the ability to nominate greater than 50% of the board representation is maintained.
(6)Affiliate investments are defined by the 1940 Act as investments in which between 5% and 25% (inclusive) of the voting securities are owned and the investments are not classified as Control investments.
(7)Non-Control/Non-Affiliate investments are defined by the 1940 Act as investments that are neither Control investments nor Affiliate investments.
(8)Income producing through dividends or distributions.
(9)Index based floating interest rate is subject to contractual minimum interest rate. As noted in this schedule, 96% of these floating rate loans (based on the par amount) contain LIBOR or Term SOFR (“SOFR”) floors which range between 0.50% and 2.00%, with a weighted-average floor of 1.20%.
(10)Private Loan portfolio investment. See Note C — Fair Value Hierarchy for Investments — Portfolio Composition for a description of Private Loan portfolio investments.
(11)Middle Market portfolio investment. See Note C — Fair Value Hierarchy for Investments — Portfolio Composition for a description of Middle Market portfolio investments.
(12)Other Portfolio investment. See Note C — Fair Value Hierarchy for Investments — Portfolio Composition for a description of Other Portfolio investments.
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2023
(dollars in thousands)
(13)Investment is not a qualifying asset as defined under Section 55(a) of the 1940 Act. Qualifying assets must represent at least 70% of total assets at the time of acquisition of any additional non-qualifying assets.
(14)Non-accrual and non-income producing debt investment.
(15)All of the Company’s portfolio investments are generally subject to restrictions on resale as “restricted securities.”
(16)External Investment Manager. Investment is not encumbered as security for the Company’s Credit Facilities or in support of the SBA-guaranteed debentures issued by the Funds.
(17)Maturity date is under on-going negotiations with the portfolio company and other lenders, if applicable.
(18)Investment fair value was determined using significant unobservable inputs, unless otherwise noted. See Note C — Fair Value Hierarchy for Investments — Portfolio Composition for further discussion. Negative fair value is the result of the capitalized discount on the loan or the unfunded commitment being valued below par.
(19)Investments may have a portion, or all, of their income received from Paid-in-Kind (“PIK”) interest or dividends. PIK interest income and cumulative dividend income represent income not paid currently in cash. The difference between the Total Rate and PIK Rate represents the cash rate as of December 31, 2023.
(20)All portfolio company headquarters are based in the United States, unless otherwise noted.
(21)Portfolio company headquarters are located outside of the United States.
(22)The Company has entered into an intercreditor agreement that entitles the Company to the “last out” tranche of the first lien secured loans, whereby the “first out” tranche will receive priority as to the “last out” tranche with respect to payments of principal, interest, and any other amounts due thereunder. Therefore, the Company receives a higher interest rate than the contractual stated interest rate of SOFR plus 8.00% (Floor 1.50%) per the credit agreement and the Consolidated Schedule of Investments above reflects such higher rate.
(23)The Company has entered into an intercreditor agreement that entitles the Company to the “last out” tranche of the first lien secured loans, whereby the “first out” tranche will receive priority as to the “last out” tranche with respect to payments of principal, interest, and any other amounts due thereunder. Therefore, the Company receives a higher interest rate than the contractual stated interest rate of 11.25% per the credit agreement and the Consolidated Schedule of Investments above reflects such higher rate.
(24)Investment date represents the date of initial investment in the security position.
(25)The position is unfunded and no interest income is being earned as of December 31, 2023. The position may earn a nominal unused facility fee on committed amounts.
(26)As of December 31, 2023, borrowings under the loan facility bore interest at SOFR+7.00% (Floor 1.00%). Each new draw or funding on the facility has a different floating rate reset date. The rate presented represents a weighted-average rate for borrowings under the facility, as of December 31, 2023.
(27)Warrants are presented in equivalent shares/units with a strike price of $0.01 per share/unit.
(28)A majority of the variable rate loans in the Company’s Investment Portfolio bear interest at a rate that may be determined by reference to either LIBOR (“L”), SOFR (“SF”) or an alternate Base rate (commonly based on the Federal Funds Rate or the Prime rate (“P”)), which typically resets every one, three, or six months at the borrower’s option. SOFR based contracts may include a credit spread adjustment (the “Adjustment”) that is charged in addition to the stated spread. The Adjustment is applied when the SOFR rate, plus the Adjustment, exceeds the stated floor rate, as applicable. As of December 31, 2023, SOFR based contracts in the portfolio had Adjustments ranging from 0.10% to 0.43%.
(29)Shares/Units represent ownership in a related Real Estate or HoldCo entity.
(30)Investment is not unitized. Presentation is made in percent of fully diluted ownership unless otherwise indicated.
(31)Money market fund interests included in cash and cash equivalents.
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Consolidated Schedule of Investments (Continued)
December 31, 2023
(dollars in thousands)
(32)As of December 31, 2023, borrowings under the loan facility bore interest at SOFR+10.00%. RLOC facility permits the borrower to make an interest rate election regarding the base rate on each draw under the facility. The rate presented represents a weighted-average rate for borrowings under the facility, as of December 31, 2023.
(33)As of December 31, 2023, borrowings under the loan facility bore interest at SOFR+7.00% (Floor 1.50%). RLOC facility permits the borrower to make an interest rate election regarding the base rate on each draw under the facility. The rate presented represents a weighted-average rate for borrowings under the facility, as of December 31, 2023.
(34)As of December 31, 2023, borrowings under the loan facility bore interest at SOFR+8.00% (Floor 1.00%). RLOC facility permits the borrower to make an interest rate election regarding the base rate on each draw under the facility. The rate presented represents a weighted-average rate for borrowings under the facility, as of December 31, 2023.
(35)As of December 31, 2023, borrowings under the loan facility bore interest at SOFR+8.00% (Floor 2.00%). RLOC facility permits the borrower to make an interest rate election regarding the base rate on each draw under the facility. The rate presented represents a weighted-average rate for borrowings under the facility, as of December 31, 2023.
(36)As of December 31, 2023, borrowings under the loan facility bore interest at SOFR+6.50% (Floor 2.00%). RLOC facility permits the borrower to make an interest rate election regarding the base rate on each draw under the facility. The rate presented represents a weighted-average rate for borrowings under the facility, as of December 31, 2023.
(37)As of December 31, 2023, borrowings under the loan facility bore interest at SOFR+6.75% (Floor 1.00%). RLOC facility permits the borrower to make an interest rate election regarding the base rate on each draw under the facility. The rate presented represents a weighted-average rate for borrowings under the facility, as of December 31, 2023.
(38)As of December 31, 2023, borrowings under the loan facility bore interest at SOFR+7.25% (Floor 1.00%). Each new draw or funding on the facility has a different floating rate reset date. The rate presented represents a weighted-average rate for borrowings under the facility, as of December 31, 2023.
(39)As of December 31, 2023, borrowings under the loan facility bore interest at SOFR+7.25% (Floor 1.00%). RLOC facility permits the borrower to make an interest rate election regarding the base rate on each draw under the facility. The rate presented represents a weighted-average rate for borrowings under the facility, as of December 31, 2023.
(40)As of December 31, 2023, borrowings under the loan facility bore interest at SOFR+7.00% (Floor 1.00%). RLOC facility permits the borrower to make an interest rate election regarding the base rate on each draw under the facility. The rate presented represents a weighted-average rate for borrowings under the facility, as of December 31, 2023.
(41)Index based floating interest rate is subject to contractual maximum base rate of 3.00%.
(42)Index based floating interest rate is subject to contractual maximum base rate of 1.50%.
(43)Warrants are presented in equivalent shares/units with a strike price of $1.00 per share/unit.
(44)Effective yield as of December 31, 2023 was approximately 4.98% on the Dreyfus Government Cash Management.
(45)Effective yield as of December 31, 2023 was approximately 5.01% on the Fidelity Government Fund.
(46)Effective yield as of December 31, 2023 was approximately 4.99% on the Fidelity Treasury.
(47)As of December 31, 2023, borrowings under the loan facility bore interest at SOFR+5.75% (Floor 1.00%). RLOC facility permits the borrower to make an interest rate election regarding the base rate on each draw under the facility. The rate presented represents a weighted-average rate for borrowings under the facility, as of December 31, 2023.
(48)As of December 31, 2023, borrowings under the loan facility bore interest at SOFR+5.75% (1.00%). Each new draw or funding on the facility has a different floating rate reset date. The rate presented represents a weighted-average rate for borrowings under the facility, as of December 31, 2023.
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2023
(dollars in thousands)
(49)As of December 31, 2023, borrowings under the loan facility bore interest at SOFR+6.00% (Floor 1.00%). RLOC facility permits the borrower to make an interest rate election regarding the base rate on each draw under the facility. The rate presented represents a weighted-average rate for borrowings under the facility, as of December 31, 2023.
(50)As of December 31, 2023, borrowings under the loan facility bore interest at SOFR+6.00% (0.75%). Each new draw or funding on the facility has a different floating rate reset date. The rate presented represents a weighted-average rate for borrowings under the facility, as of December 31, 2023.
(51)As of December 31, 2023, borrowings under the loan facility bore interest at SOFR+7.00% (Floor 2.00%). RLOC facility permits the borrower to make an interest rate election regarding the base rate on each draw under the facility. The rate presented represents a weighted-average rate for borrowings under the facility, as of December 31, 2023.
(52)As of December 31, 2023, borrowings under the loan facility bore interest at SOFR+6.50% (Floor 1.00%). RLOC facility permits the borrower to make an interest rate election regarding the base rate on each draw under the facility. The rate presented represents a weighted-average rate for borrowings under the facility, as of December 31, 2023.



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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments
December 31, 2022
(dollars in thousands)

Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (29)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
Control Investments (5)
Analytical Systems Keco Holdings, LLCManufacturer of Liquid and Gas Analyzers
Secured Debt(9) (25)8/16/2019L+10.00%8/16/2024$— $(3)$(3)
Secured Debt(9)8/16/201914.13%L+10.00%8/16/20244,665 4,545 4,545 
Preferred Member Units5/20/20212,4272,427 3,504 
Preferred Member Units8/16/20193,20014.13%3,200 — 
Warrants(27)8/16/20194208/16/2029316 — 
10,485 8,046 
ASC Interests, LLCRecreational and Educational Shooting Facility
Secured Debt12/31/201913.00%7/31/2024400 400 400 
Secured Debt8/1/201313.00%7/31/20241,650 1,649 1,649 
Member Units8/1/20131,5001,500 800 
3,549 2,849 
ATS Workholding, LLC(10)Manufacturer of Machine Cutting Tools and Accessories
Secured Debt(14)11/16/20175.00%8/16/20231,901 1,901 634 
Secured Debt(14)11/16/20175.00%8/16/20233,015 2,857 1,005 
Preferred Member Units11/16/20173,725,8623,726 — 
8,484 1,639 
Barfly Ventures, LLC(10)Casual Restaurant Group
Secured Debt10/15/20207.00%10/31/2024711 711 711 
Member Units10/26/2020371,584 3,320 
2,295 4,031 
Batjer TopCo, LLCHVAC Mechanical Contractor
Secured Debt(25)3/7/20223/31/2027— (8)(8)
Secured Debt(25)3/7/20223/31/2027— — — 
Secured Debt3/7/202211.00%3/31/202711,025 10,933 10,933 
Preferred Stock(8)3/7/20224,0734,095 4,095 
15,020 15,020 
Bolder Panther Group, LLCConsumer Goods and Fuel Retailer
Secured Debt(9) (29) (40)12/31/202013.39%SF+9.26%10/31/202799,194 98,576 99,194 
Class B Preferred Member Units(8)12/31/2020140,0008.00%14,000 31,420 
112,576 130,614 
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2022
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (29)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
Brewer Crane Holdings, LLCProvider of Crane Rental and Operating Services
Secured Debt(9)1/9/201814.12%L+10.00%1/9/20235,964 5,964 5,964 
Preferred Member Units(8)1/9/20182,9504,280 7,080 
10,244 13,044 
Bridge Capital Solutions CorporationFinancial Services and Cash Flow Solutions Provider
Secured Debt7/25/201613.00%12/11/20248,813 8,813 8,813 
Secured Debt(30)7/25/201613.00%12/11/20241,000 1,000 1,000 
Warrants(27)7/25/2016827/25/20262,132 4,340 
Preferred Member Units(8) (30)7/25/201617,7421,000 1,000 
12,945 15,153 
Café Brazil, LLCCasual Restaurant Group
Member Units(8)6/9/20061,2331,742 2,210 
California Splendor Holdings LLCProcessor of Frozen Fruits
Secured Debt(9)3/30/201813.75%L+10.00%7/29/202628,000 27,951 28,000 
Preferred Member Units(8)7/31/20193,67115.00%15.00%3,994 3,994 
Preferred Member Units(8)3/30/20186,15710,775 25,495 
42,720 57,489 
CBT Nuggets, LLCProduces and Sells IT Training Certification Videos
Member Units(8)6/1/20064161,300 49,002 
Centre Technologies Holdings, LLCProvider of IT Hardware Services and Software Solutions
Secured Debt(9) (25)1/4/2019L+9.00%1/4/2026— — — 
Secured Debt(9)1/4/201913.13%L+9.00%1/4/202615,030 14,954 14,954 
Preferred Member Units1/4/201913,3096,122 8,700 
21,076 23,654 
Chamberlin Holding LLCRoofing and Waterproofing Specialty Contractor
Secured Debt(9) (25)2/26/2018L+6.00%2/26/2023— — — 
Secured Debt(9)2/26/201812.13%L+8.00%2/26/202316,945 16,935 16,945 
Member Units(8)2/26/20184,34711,440 22,920 
Member Units(8) (30)11/2/20181,047,1461,773 2,710 
30,148 42,575 
Charps, LLCPipeline Maintenance and Construction
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2022
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (29)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
Unsecured Debt8/26/202010.00%1/31/20265,694 4,643 5,694 
Preferred Member Units(8)2/3/20171,8291,963 13,340 
6,606 19,034 
Clad-Rex Steel, LLCSpecialty Manufacturer of Vinyl-Clad Metal
Secured Debt(9) (25) (29)10/28/2022SF+9.00%1/15/2024— — — 
Secured Debt(9) (29)12/20/201613.23%SF+9.00%1/15/202410,480 10,440 10,440 
Secured Debt12/20/201610.00%12/20/20361,049 1,039 1,039 
Member Units(8)12/20/20167177,280 8,220 
Member Units(30)12/20/2016800210 610 
18,969 20,309 
CMS Minerals InvestmentsOil & Gas Exploration & Production
Member Units(8) (30)4/1/20161001,304 1,670 
Cody Pools, Inc.Designer of Residential and Commercial Pools
Secured Debt(9)3/6/202015.38%L+10.50%12/17/20261,462 1,443 1,462 
Secured Debt(9)3/6/202015.38%L+10.50%12/17/202640,801 40,521 40,801 
Preferred Member Units(8) (30)3/6/20205878,317 58,180 
50,281 100,443 
Colonial Electric Company LLCProvider of Electrical Contracting Services
Secured Debt(25)3/31/20213/31/2026— — — 
Secured Debt3/31/202112.00%3/31/202623,310 23,151 23,151 
Preferred Member Units(8)3/31/202117,2807,680 9,160 
30,831 32,311 
CompareNetworks Topco, LLCInternet Publishing and Web Search Portals
Secured Debt(9) (17) (25)1/29/2019L+9.00%1/29/2022— — — 
Secured Debt(9)1/29/201913.13%L+9.00%1/29/20245,241 5,232 5,241 
Preferred Member Units(8)1/29/20191,9751,975 19,830 
7,207 25,071 
Copper Trail Fund Investments(12) (13)Investment Partnership
LP Interests (CTMH, LP)(31)7/17/201738.75%588 588 
Datacom, LLCTechnology and Telecommunications Provider
Secured Debt3/1/20227.50%12/31/2025223 223 223 
112
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2022
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (29)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
Secured Debt3/31/20217.50%12/31/20258,622 8,190 7,789 
Preferred Member Units(8)3/31/20219,0002,610 2,670 
11,023 10,682 
Digital Products Holdings LLCDesigner and Distributor of Consumer Electronics
Secured Debt(9)4/1/201814.13%L+10.00%4/1/202315,533 15,523 15,523 
Preferred Member Units(8)4/1/20183,8579,501 9,835 
25,024 25,358 
Direct Marketing Solutions, Inc.Provider of Omni-Channel Direct Marketing Services
Secured Debt(9) (25)2/13/2018L+11.00%2/13/2026— (88)— 
Secured Debt(9)12/27/202215.13%L+11.00%2/13/202627,267 27,122 27,267 
Preferred Stock(8)2/13/20188,4008,400 22,220 
35,434 49,487 
Elgin AcquireCo, LLCManufacturer and Distributor of Engine and Chassis Components
Secured Debt(9) (25) (29)10/3/2022SF+6.00%10/3/2027— (9)(9)
Secured Debt10/3/202212.00%10/3/202718,773 18,594 18,594 
Secured Debt10/3/20229.00%10/3/20526,357 6,294 6,294 
Common Stock10/3/20223787,603 7,603 
Common Stock(30)10/3/20229391,558 1,558 
34,040 34,040 
Gamber-Johnson Holdings, LLCManufacturer of Ruggedized Computer Mounting Systems
Secured Debt(9) (25) (29)6/24/2016SF+8.50%1/1/2028— — — 
Secured Debt(9) (29)12/15/202211.50%SF+8.50%1/1/202864,078 63,685 64,078 
Member Units(8)6/24/20169,04217,692 50,890 
81,377 114,968 
Garreco, LLCManufacturer and Supplier of Dental Products
Secured Debt(9) (37)7/15/20139.50%L+8.00%7/31/20233,826 3,826 3,826 
Member Units(8)7/15/20131,2001,200 1,800 
5,026 5,626 
GRT Rubber Technologies LLCManufacturer of Engineered Rubber Products
Secured Debt12/21/201810.12%L+6.00%12/21/2023670 670 670 
Secured Debt12/19/201412.12%L+8.00%10/29/202640,493 40,313 40,493 
Member Units(8)12/19/20145,87913,065 44,440 
54,048 85,603 
113
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2022
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (29)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
Gulf Manufacturing, LLCManufacturer of Specialty Fabricated Industrial Piping Products
Member Units(8)8/31/20074382,980 6,790 
Gulf Publishing Holdings, LLCEnergy Industry Focused Media and Publishing
Secured Debt(9) (25)9/29/2017L+9.50%7/1/2027— — — 
Secured Debt7/1/202212.50%7/1/20272,400 2,400 2,284 
Preferred Equity7/1/202263,7205,600 3,780 
Member Units4/29/20163,6813,681 — 
11,681 6,064 
Harris Preston Fund Investments(12) (13)Investment Partnership
LP Interests (2717 MH, L.P.)(31)10/1/201749.26%3,895 7,552 
LP Interests (2717 HPP-MS, L.P.)(31)3/11/202249.26%248 248 
4,143 7,800 
Harrison Hydra-Gen, Ltd.Manufacturer of Hydraulic Generators
Common Stock6/4/2010107,456718 3,280 
Jensen Jewelers of Idaho, LLCRetail Jewelry Store
Secured Debt(25)8/29/2017P+6.75%11/14/2023— — — 
Secured Debt(9)11/14/200613.75%P+6.75%11/14/20232,450 2,444 2,450 
Member Units(8)11/14/2006627811 14,970 
3,255 17,420 
Johnson Downie Opco, LLCExecutive Search Services
Secured Debt(9) (25)12/10/2021L+11.50%12/10/2026— (14)— 
Secured Debt(9)12/10/202115.63%L+11.50%12/10/20269,999 9,920 9,999 
Preferred Equity(8)12/10/20213,1503,150 5,540 
13,056 15,539 
JorVet Holdings, LLCSupplier and Distributor of Veterinary Equipment and Supplies
Secured Debt3/28/202212.00%3/28/202725,650 25,432 25,432 
Preferred Equity(8)3/28/2022107,40610,741 10,741 
36,173 36,173 
KBK Industries, LLCManufacturer of Specialty Oilfield and Industrial Products
Member Units(8)1/23/2006325783 15,570 
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2022
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (29)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
Kickhaefer Manufacturing Company, LLCPrecision Metal Parts Manufacturing
Secured Debt10/31/201811.50%10/31/202320,415 20,374 20,374 
Secured Debt10/31/20189.00%10/31/20483,879 3,842 3,842 
Preferred Equity10/31/201858112,240 7,220 
Member Units(8) (30)10/31/2018800992 2,850 
37,448 34,286 
Market Force Information, LLCProvider of Customer Experience Management Services
Secured Debt(9)7/28/201715.13%L+11.00%7/28/20236,275 6,253 6,090 
Secured Debt(14)7/28/201712.00%12.00%7/28/202326,079 25,952 1,610 
Member Units7/28/2017743,92116,642 — 
48,847 7,700 
MetalForming AcquireCo, LLCDistributor of Sheet Metal Folding and Metal Forming Equipment
Secured Debt(25)10/19/202210/19/2024— — — 
Secured Debt10/19/202212.75%10/19/202723,802 23,576 23,576 
Preferred Equity(8)10/19/20225,915,5858.00%8.00%6,010 6,010 
Common Stock10/19/20221,537,2191,537 1,537 
31,123 31,123 
MH Corbin Holding LLCManufacturer and Distributor of Traffic Safety Products
Secured Debt8/31/201513.00%12/31/20226,156 6,156 4,548 
Preferred Member Units3/15/201966,0004,400 — 
Preferred Member Units9/1/20154,0006,000 — 
16,556 4,548 
MS Private Loan Fund I, LP(12) (13)Investment Partnership
Secured Debt(25)1/26/202112/31/2024— — — 
LP Interests(8) (31)1/26/202114.51%14,250 14,833 
14,250 14,833 
MSC Adviser I, LLC(16)Third Party Investment Advisory Services
Member Units(8)11/22/2013129,500 122,930 
MSC Income Fund, Inc.(12) (13)Business Development Company
Common Equity(8)5/2/202294,697750 753 
115
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2022
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (29)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
Mystic Logistics Holdings, LLCLogistics and Distribution Services Provider for Large Volume Mailers
Secured Debt(25)8/18/20141/31/2024— — — 
Secured Debt8/18/201410.00%1/31/20245,746 5,746 5,746 
Common Stock(8)8/18/20145,8732,720 22,830 
8,466 28,576 
NAPCO Precast, LLCPrecast Concrete Manufacturing
Member Units1/31/20082,9552,975 11,830 
Nebraska Vet AcquireCo, LLCMixed-Animal Veterinary and Animal Health Product Provider
Secured Debt(9) (25)12/31/2020L+7.00%12/31/2025— — — 
Secured Debt12/31/202012.00%12/31/202520,094 19,972 20,094 
Secured Debt12/31/202012.00%12/31/202510,500 10,434 10,500 
Preferred Member Units12/31/20206,9876,987 7,700 
37,393 38,294 
NexRev LLCProvider of Energy Efficiency Products & Services
Secured Debt(25)2/28/20182/28/2025— — — 
Secured Debt2/28/201811.00%2/28/202511,465 11,335 8,477 
Preferred Member Units(8)2/28/2018103,144,1868,213 1,110 
19,548 9,587 
NRP Jones, LLCManufacturer of Hoses, Fittings and Assemblies
Secured Debt12/21/201712.00%3/20/20232,080 2,080 2,080 
Member Units(8)12/22/201165,9623,717 4,790 
5,797 6,870 
NuStep, LLCDesigner, Manufacturer and Distributor of Fitness Equipment
Secured Debt(9)1/31/201710.63%L+6.50%1/31/20254,400 4,399 4,399 
Secured Debt1/31/201712.00%1/31/202518,440 18,414 18,414 
Preferred Member Units11/2/20222,0622,062 5,150 
Preferred Member Units1/31/201740610,200 8,040 
35,075 36,003 
OMi Topco, LLCManufacturer of Overhead Cranes
Secured Debt8/31/202112.00%8/31/202615,750 15,634 15,750 
Preferred Member Units(8)4/1/20089001,080 22,810 
16,714 38,560 
116
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2022
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (29)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
Orttech Holdings, LLCDistributor of Industrial Clutches, Brakes and Other Components
Secured Debt(9) (25)7/30/2021L+11.00%7/31/2026— — — 
Secured Debt(9)7/30/202115.13%L+11.00%7/31/202623,600 23,429 23,429 
Preferred Stock(8) (30)7/30/202110,00010,000 11,750 
33,429 35,179 
Pearl Meyer Topco LLCProvider of Executive Compensation Consulting Services
Secured Debt(25)4/27/20204/27/2025— — — 
Secured Debt(25)4/27/20204/27/2025— — — 
Secured Debt4/27/202012.00%4/27/202528,681 28,537 28,681 
Preferred Equity(8)4/27/202013,80013,000 43,260 
41,537 71,941 
PPL RVs, Inc.Recreational Vehicle Dealer
Secured Debt(9) (25)10/31/2019L+7.00%11/15/2027— (9)— 
Secured Debt(9)11/15/201610.25%L+7.00%11/15/202721,655 21,408 21,655 
Common Stock(8)6/10/20102,0002,150 18,950 
Common Stock6/14/2022238,421238 238 
23,787 40,843 
Principle Environmental, LLCNoise Abatement Service Provider
Secured Debt(25)2/1/201111/15/2026— — — 
Secured Debt7/1/201113.00%11/15/20265,897 5,806 5,806 
Preferred Member Units(8)2/1/201121,8065,709 12,420 
Common Stock1/27/20211,0371,200 590 
12,715 18,816 
Quality Lease Service, LLCProvider of Rigsite Accommodation Unit Rentals and Related Services
Member Units6/8/20151,0007,513 525 
River Aggregates, LLCProcessor of Construction Aggregates
Member Units(30)12/20/20131,500369 3,620 
Robbins Bros. Jewelry, Inc.Bridal Jewelry Retailer
Secured Debt(9) (25)12/15/202112/15/2026— (35)(35)
Secured Debt(9)12/15/202112.50%12/15/202635,685 35,404 35,404 
Preferred Equity12/15/202111,07011,070 14,880 
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2022
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (29)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
46,439 50,249 
Tedder Industries, LLCManufacturer of Firearm Holsters and Accessories
Secured Debt8/31/201812.00%8/31/20231,840 1,840 1,840 
Secured Debt8/31/201812.00%8/31/202315,200 15,192 15,120 
Preferred Member Units8/31/20185449,245 7,681 
26,277 24,641 
Televerde, LLCProvider of Telemarketing and Data Services
Preferred Stock1/26/2022248718 1,794 
Member Units1/6/20114601,290 5,408 
2,008 7,202 
Trantech Radiator Topco, LLCTransformer Cooling Products and Services
Secured Debt(25)5/31/20195/31/2024— (5)— 
Secured Debt5/31/201912.00%5/31/20247,920 7,894 7,920 
Common Stock(8)5/31/20196154,655 7,800 
12,544 15,720 
Vision Interests, Inc.Manufacturer / Installer of Commercial Signage
Series A Preferred Stock(8)12/23/20113,000,0003,000 3,000 
VVS Holdco LLCOmnichannel Retailer of Animal Health Products
Secured Debt(9) (25) (30)12/1/2021L+6.00%12/1/2023— (21)(21)
Secured Debt(30)12/1/202111.50%12/1/202630,400 30,158 30,161 
Preferred Equity(8) (30)12/1/202111,84011,840 11,940 
41,977 42,080 
Ziegler’s NYPD, LLCCasual Restaurant Group
Secured Debt6/1/201512.00%10/1/2024450 450 450 
Secured Debt10/1/20086.50%10/1/20241,000 1,000 945 
Secured Debt10/1/200814.00%10/1/20242,750 2,750 2,676 
Preferred Member Units6/30/201510,0722,834 240 
Warrants(27)7/1/201558710/1/2025600 — 
7,634 4,311 
Subtotal Control Investments (80.8% of net assets at fair value)
$1,270,802 $1,703,172 
Affiliate Investments (6)
AAC Holdings, Inc.(11)Substance Abuse Treatment Service Provider
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2022
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (29)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
Secured Debt12/11/202018.00%18.00%6/25/2025$11,726 $11,590 $11,550 
Common Stock12/11/2020593,9283,148 — 
Warrants(27)12/11/2020554,35312/11/2025— — 
14,738 11,550 
AFG Capital Group, LLCProvider of Rent-to-Own Financing Solutions and Services
Preferred Member Units(8)11/7/20141861,200 9,400 
ATX Networks Corp.(11)Provider of Radio Frequency Management Equipment
Secured Debt(9)9/1/202112.23%L+7.50%9/1/20266,783 6,208 6,343 
Unsecured Debt9/1/202110.00%10.00%9/1/20283,396 2,291 2,598 
Common Stock9/1/2021583— 3,270 
8,499 12,211 
BBB Tank Services, LLCMaintenance, Repair and Construction Services to the Above-Ground Storage Tank Market
Unsecured Debt(9) (17)4/8/201615.12%L+11.00%4/8/2021800 800 800 
Unsecured Debt(9) (17)4/8/201615.12%L+11.00%4/8/20214,000 4,000 2,086 
Member Units4/8/2016800,000800 — 
Preferred Stock (non-voting)12/17/201815.00%162 — 
5,762 2,886 
Boccella Precast Products LLCManufacturer of Precast Hollow Core Concrete
Secured Debt9/23/202110.00%2/28/2027320 320 320 
Member Units(8)6/30/20172,160,0002,256 2,970 
2,576 3,290 
Buca C, LLCCasual Restaurant Group
Secured Debt6/30/20159.00%6/30/202317,355 17,355 12,337 
Preferred Member Units6/30/201566.00%6.00%4,770 — 
22,125 12,337 
Career Team Holdings, LLCProvider of Workforce Training and Career Development Services
Secured Debt(9) (25)12/17/2021L+6.00%12/17/2026— (9)(9)
Secured Debt12/17/202112.50%12/17/202620,250 20,090 20,090 
Common Stock12/17/2021450,0004,500 4,500 
24,581 24,581 
Chandler Signs Holdings, LLC(10)Sign Manufacturer
Class A Units1/4/20161,500,0001,500 1,790 
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2022
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (29)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
Classic H&G Holdings, LLCProvider of Engineered Packaging Solutions
Secured Debt(9)3/12/20209.75%L+6.00%3/12/20254,560 4,560 4,560 
Secured Debt3/12/20208.00%3/12/202519,274 19,182 19,274 
Preferred Member Units(8)3/12/20201545,760 24,637 
29,502 48,471 
Congruent Credit Opportunities Funds(12) (13)Investment Partnership
LP Interests (Congruent Credit Opportunities Fund
  III, LP)		(8) (31)2/4/201513.32%8,096 7,657 
DMA Industries, LLCDistributor of aftermarket ride control products
Secured Debt11/19/202112.00%11/19/202621,200 21,035 21,200 
Preferred Equity11/19/20215,9445,944 7,260 
26,979 28,460 
Dos Rios Partners(12) (13)Investment Partnership
LP Interests (Dos Rios Partners, LP)(31)4/25/201320.24%6,459 9,127 
LP Interests (Dos Rios Partners - A, LP)(31)4/25/20136.43%2,051 2,898 
8,510 12,025 
Dos Rios Stone Products LLC(10)Limestone and Sandstone Dimension Cut Stone Mining Quarries
Class A Preferred Units(30)6/27/20162,000,0002,000 1,330 
EIG Fund Investments(12) (13)Investment Partnership
LP Interests (EIG Global Private Debt Fund-A, L.P.)(8) (31)11/6/20155,000,0001,060 1,013 
Flame King Holdings, LLCPropane Tank and Accessories Distributor
Secured Debt(9)10/29/202110.75%L+6.50%10/31/20267,600 7,537 7,600 
Secured Debt(9)10/29/202113.25%L+9.00%10/31/202621,200 21,038 21,200 
Preferred Equity(8)10/29/20219,36010,400 17,580 
38,975 46,380 
Freeport Financial Funds(12) (13)Investment Partnership
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2022
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (29)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
LP Interests (Freeport Financial SBIC Fund LP)(31)3/23/20159.30%3,507 3,483 
LP Interests (Freeport First Lien Loan Fund III LP)(8) (31)7/31/20155.95%6,303 5,848 
9,810 9,331 
GFG Group, LLCGrower and Distributor of a Variety of Plants and Products to Other Wholesalers, Retailers and Garden Centers
Secured Debt3/31/20219.00%3/31/202611,345 11,269 11,345 
Preferred Member Units(8)3/31/20212264,900 7,140 
16,169 18,485 
Harris Preston Fund Investments(12) (13)Investment Partnership
LP Interests (HPEP 3, L.P.)(31)8/9/20178.22%2,558 4,331 
LP Interests (HPEP 4, L.P.)(31)7/12/20228.71%2,332 2,332 
LP Interests (423 COR, LP)(31)6/2/202222.93%1,400 1,400 
6,290 8,063 
Hawk Ridge Systems, LLCValue-Added Reseller of Engineering Design and Manufacturing Solutions
Secured Debt(9)12/2/201610.13%L+6.00%1/15/20263,185 3,183 3,185 
Secured Debt12/2/20169.00%1/15/202637,800 37,685 37,800 
Preferred Member Units(8)12/2/20162262,850 17,460 
Preferred Member Units(30)12/2/2016226150 920 
43,868 59,365 
Houston Plating and Coatings, LLCProvider of Plating and Industrial Coating Services
Unsecured Convertible Debt5/1/20178.00%10/2/20243,000 3,000 3,000 
Member Units1/8/2003322,2972,352 2,400 
5,352 5,400 
I-45 SLF LLC(12) (13)Investment Partnership
Member Units (Fully diluted 20.0%; 21.75% profits interest)
(8)10/20/201520.00%19,000 11,758 
Iron-Main Investments, LLCConsumer Reporting Agency Providing Employment Background Checks and Drug Testing
Secured Debt8/2/202112.50%11/15/20264,534 4,500 4,500 
Secured Debt9/1/202112.50%11/15/20263,154 3,130 3,130 
Secured Debt11/15/202112.50%11/15/20268,944 8,944 8,944 
Secured Debt11/15/202112.50%11/15/202619,712 19,559 19,559 
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2022
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (29)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
Common Stock8/3/2021179,7781,798 1,798 
37,931 37,931 
OnAsset Intelligence, Inc.Provider of Transportation Monitoring / Tracking Products and Services
Secured Debt(14)4/18/201112.00%12.00%12/31/20234,415 4,415 2,606 
Secured Debt(14)5/10/201312.00%12.00%12/31/20232,116 2,116 1,249 
Secured Debt(14)3/21/201412.00%12.00%12/31/2023983 983 580 
Secured Debt(14)5/20/201412.00%12.00%12/31/2023964 964 569 
Unsecured Debt(14)6/5/201710.00%10.00%12/31/2023305 305 305 
Preferred Stock4/18/20119127.00%7.00%1,981 — 
Common Stock4/15/2021635830 — 
Warrants(27)4/18/20114,69912/31/20231,089 — 
12,683 5,309 
Oneliance, LLCConstruction Cleaning Company
Secured Debt(9) (25)8/6/2021L+11.00%8/6/2023— — — 
Secured Debt(9)8/6/202115.13%L+11.00%8/6/20265,600 5,559 5,559 
Preferred Stock8/6/20211,0561,056 1,056 
6,615 6,615 
Rocaceia, LLC (Quality Lease and Rental Holdings, LLC)Provider of Rigsite Accommodation Unit Rentals and Related Services
Secured Debt(14) (17) (39)6/30/201512.00%1/8/201830,369 29,865 — 
Preferred Member Units1/8/20132502,500 — 
32,365 — 
SI East, LLCRigid Industrial Packaging Manufacturing
Secured Debt(25)8/31/20188/31/2023— — — 
Secured Debt8/31/20189.50%8/31/202389,786 89,708 89,786 
Preferred Member Units(8)8/31/20181571,218 13,650 
90,926 103,436 
Slick Innovations, LLCText Message Marketing Platform
Secured Debt9/13/201814.00%12/22/202713,840 13,698 13,840 
Common Stock(8)9/13/201870,000456 1,530 
14,154 15,370 
Sonic Systems International, LLC(10)Nuclear Power Staffing Services
Secured Debt(9)8/20/202111.24%L+7.50%8/20/202615,769 15,527 15,769 
Common Stock8/20/20219,9681,356 1,280 
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2022
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (29)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
16,883 17,049 
Student Resource Center, LLC(10)Higher Education Services
Secured Debt12/31/202213.27%L+8.50%12/31/20275,000 4,556 4,556 
Preferred Equity12/31/20225,907,649— — 
4,556 4,556 
Superior Rigging & Erecting Co.Provider of Steel Erecting, Crane Rental & Rigging Services
Secured Debt8/31/202012.00%8/31/202521,500 21,378 21,378 
Preferred Member Units8/31/20201,5714,500 4,500 
25,878 25,878 
The Affiliati Network, LLCPerformance Marketing Solutions
Secured Debt8/9/202113.00%8/9/2026120 106 106 
Secured Debt8/9/202113.00%8/9/20269,521 9,442 9,442 
Preferred Stock(8)8/9/20211,280,0006,400 6,400 
15,948 15,948 
UnionRock Energy Fund II, LP(12) (13)Investment Partnership
LP Interests(8) (31)6/15/202011.11%3,734 5,855 
UniTek Global Services, Inc.(11)Provider of Outsourced Infrastructure Services
Secured Debt(9) (29)10/15/201810.76%SF+5.50%2.00%8/20/2024406 405 382 
Secured Debt(9) (29)8/27/201810.76%SF+5.50%2.00%8/20/20241,814 1,807 1,712 
Secured Convertible Debt1/1/202115.00%15.00%2/20/20252,403 2,403 4,592 
Preferred Stock(8)8/29/20191,133,10220.00%20.00%2,141 2,833 
Preferred Stock8/21/20181,521,12220.00%20.00%2,188 1,991 
Preferred Stock6/30/20172,281,68219.00%19.00%3,667 — 
Preferred Stock1/15/20154,336,86613.50%13.50%7,924 — 
Common Stock4/1/2020945,507— — 
20,535 11,510 
Universal Wellhead Services Holdings, LLC(10)Provider of Wellhead Equipment, Designs, and Personnel to the Oil & Gas Industry
Preferred Member Units(30)12/7/2016716,94914.00%14.00%1,032 220 
Member Units(30)12/7/20164,000,0004,000 — 
5,032 220 
Volusion, LLCProvider of Online Software-as-a-Service eCommerce Solutions
Secured Debt(17)1/26/201511.50%1/26/202016,734 16,734 14,914 
Unsecured Convertible Debt5/16/20188.00%11/16/2023409 409 — 
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2022
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (29)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
Preferred Member Units1/26/20154,876,67014,000 — 
Warrants(27)1/26/20151,831,3551/26/20252,576 — 
33,719 14,914 
World Micro Holdings, LLCSupply Chain Management
Secured Debt12/12/202213.00%12/12/2027$14,280 $14,140 $14,140 
Preferred Equity12/12/20223,845$3,845 $3,845 
$17,985 $17,985 
Subtotal Affiliate Investments (29.3% of net assets at fair value)
$635,536 $618,359 
Non-Control Investments (7)
AB Centers Acquisition Corporation(10)Applied Behavior Analysis Therapy Provider
Secured Debt(9) (25) (29)9/6/2022SF+6.00%9/6/2028$— $(39)$(39)
Secured Debt(9) (29)9/6/202210.20%SF+6.00%9/6/2028741 653 741 
Secured Debt(9) (29)9/6/202210.58%SF+6.00%9/6/202817,052 16,602 17,052 
17,216 17,754 
Acousti Engineering Company of Florida(10)Interior Subcontractor Providing Acoustical Walls and Ceilings
Secured Debt(9)11/2/202013.23%L+8.50%11/2/20251,678 1,669 1,678 
Secured Debt(9)11/2/202013.23%L+8.50%11/2/20259,891 9,825 9,891 
Secured Debt(9)5/26/202116.17%L+12.50%11/2/2025807 800 807 
12,294 12,376 
Acumera, Inc.(10)Managed Security Service Provider
Secured Debt(9)6/28/202213.88%L+9.50%10/26/202714,618 14,291 14,618 
Secured Debt(9)6/28/202213.57%L+9.00%10/26/20274,368 4,270 4,368 
18,561 18,986 
Adams Publishing Group, LLC(10)Local Newspaper Operator
Secured Debt(9) (36)3/11/202210.00%L+6.00%3/11/20274,729 4,729 4,729 
Secured Debt(9) (36)3/11/202210.00%L+7.50%3/11/202724,086 24,033 24,086 
28,762 28,815 
ADS Tactical, Inc.(11)Value-Added Logistics and Supply Chain Provider to the Defense Industry
Secured Debt(9)3/29/202110.14%L+5.75%3/19/202621,077 20,781 18,969 
AMEREQUIP LLC.(10)Full Service Provider of Comprehensive Commercial Production Services, Including the Design, Engineering, and Manufacturing of Products It
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2022
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (29)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
Secured Debt(9) (25) (29)8/31/2022SF+7.40%8/31/2027— (137)(137)
Secured Debt(9) (29)8/31/202211.72%SF+7.40%8/31/202737,491 36,819 37,463 
Common Stock8/31/20222351,779 1,779 
38,461 39,105 
American Health Staffing Group, Inc.(10)Healthcare Temporary Staffing
Secured Debt(9) (25)11/19/2021L+6.00%11/19/2026— (10)(10)
Secured Debt(9)11/19/202111.12%L+6.00%11/19/20266,617 6,565 6,617 
6,555 6,607 
American Nuts, LLC(10)Roaster, Mixer and Packager of Bulk Nuts and Seeds
Secured Debt(9) (29)3/11/202210.46%SF+6.75%4/10/202615,628 15,408 14,606 
Secured Debt(9) (29)3/11/202212.46%SF+8.75%4/10/202615,628 15,408 14,654 
30,816 29,260 
American Teleconferencing Services, Ltd.(11)Provider of Audio Conferencing and Video Collaboration Solutions
Secured Debt(14)9/17/20217.50%L+6.50%1/31/20232,980 2,980 168 
Secured Debt(9) (14)5/19/20167.50%L+6.50%6/8/202314,370 13,706 808 
16,686 976 
ArborWorks, LLC(10)Vegetation Management Services
Secured Debt(9)11/9/202113.41%L+9.00%11/9/20264,678 4,569 3,945 
Secured Debt(9)11/9/202113.56%L+9.00%11/9/202629,722 29,261 25,065 
Common Equity11/9/2021234234 — 
34,064 29,010 
Archer Systems, LLC(10)Mass Tort Settlement Administration Solutions Provider
Secured Debt(9) (25) (29)8/11/2022SF+6.50%8/11/2027— (135)(135)
Secured Debt(9) (29)8/11/202210.92%SF+6.50%8/11/202767,597 66,330 66,511 
Common Stock8/11/20221,387,8321,388 1,388 
67,583 67,764 
Arrow International, Inc(10)Manufacturer and Distributor of Charitable Gaming Supplies
Secured Debt(9) (23) (29)12/21/202010.36%SF+6.60%12/21/202536,000 35,737 36,000 
ATS Operating, LLC(10)For-Profit Thrift Retailer
Secured Debt(9) (25) (29)1/18/2022SF+5.50%1/18/2027— — — 
Secured Debt(9) (29)1/18/20229.32%SF+5.50%1/18/20276,660 6,660 6,582 
Secured Debt(9) (29)1/18/202211.32%SF+7.50%1/18/20276,660 6,660 6,593 
Common Stock1/18/2022720,000720 660 
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2022
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (29)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
14,040 13,835 
AVEX Aviation Holdings, LLC(10)Specialty Aircraft Dealer
Secured Debt(9) (25) (29)12/23/2022SF+7.25%12/23/2027— (57)(57)
Secured Debt(9) (29)12/23/202212.17%SF+7.25%12/23/202729,071 27,927 27,927 
Common Equity12/15/2021360360 406 
28,230 28,276 
Berry Aviation, Inc.(10)Charter Airline Services
Secured Debt7/6/201812.00%1.50%1/6/2024195 195 195 
Preferred Member Units(8) (25) (30)11/12/2019122,41616.00%— 270 
Preferred Member Units(8) (30)7/6/20181,548,3878.00%8.00%1,161 4,561 
1,356 5,026 
Bettercloud, Inc.(10)SaaS Provider of Workflow Management and Business Application Solutions
Secured Debt(9) (25) (29)6/30/2022SF+1.00%6.00%6/30/2028— (76)(76)
Secured Debt(9) (29)6/30/202211.40%SF+1.00%6.00%6/30/202827,505 27,020 27,505 
26,944 27,429 
Binswanger Enterprises, LLC(10)Glass Repair and Installation Service Provider
Member Units3/10/20171,050,0001,050 420 
Bluestem Brands, Inc.(11)Multi-Channel Retailer of General Merchandise
Secured Debt(9) (25)10/19/2022L+8.50%8/28/2025— — — 
Secured Debt(9)8/28/202012.94%L+8.50%8/28/20253,239 2,280 3,139 
Common Stock(8)10/1/2020723,1841 4,860 
Warrants(27)10/19/2022163,29510/19/20321,036 1,095 
3,317 9,094 
Brainworks Software, LLC(10)Advertising Sales and Newspaper Circulation Software
Secured Debt(9) (14) (17)8/12/201412.50%P+9.25%7/22/2019761 761 761 
Secured Debt(9) (14) (17)8/12/201412.50%P+9.25%7/22/20197,056 7,056 2,916 
7,817 3,677 
Brightwood Capital Fund Investments(12) (13)Investment Partnership
LP Interests (Brightwood Capital Fund III, LP)(8) (31)7/21/20141.55%7,062 4,727 
LP Interests (Brightwood Capital Fund IV, LP)(8) (31)10/26/20160.59%4,350 4,541 
LP Interests (Brightwood Capital Fund V, LP)(31)7/12/20211.31%2,000 2,229 
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2022
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (29)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
13,412 11,497 
Burning Glass Intermediate Holding Company, Inc.(10)Provider of Skills-Based Labor Market Analytics
Secured Debt(9) (25)6/14/2021L+5.00%6/10/2026— (28)— 
Secured Debt(9)6/14/20218.91%L+5.00%6/10/202819,933 19,656 19,933 
19,628 19,933 
Cadence Aerospace LLC(10)Aerostructure Manufacturing
Secured Debt(9) (34)11/14/201711.99%L+8.50%0.01%11/14/202328,328 28,264 28,328 
CAI Software LLCProvider of Specialized Enterprise Resource Planning Software
Preferred Equity(8)12/13/20211,788,5271,789 1,789 
Preferred Equity12/13/2021596,176— — 
1,789 1,789 
Camin Cargo Control, Inc.(11)Provider of Mission Critical Inspection, Testing and Fuel Treatment Services
Secured Debt(9)6/14/202110.88%L+6.50%6/4/202615,218 15,110 14,685 
CaseWorthy, Inc.(10)SaaS Provider of Case Management Solutions
Secured Debt(9) (25)5/18/2022L+6.00%5/18/2027— (11)(11)
Secured Debt(9)5/18/202210.73%L+6.00%5/18/20277,993 7,914 7,914 
Secured Debt(9)5/18/202210.48%L+5.75%5/18/20276,133 6,079 6,133 
Common Equity12/30/2022245,926246 246 
14,228 14,282 
Channel Partners Intermediateco, LLC(10)Outsourced Consumer Services Provider
Secured Debt(9) (29) (42)2/7/202210.72%SF+6.25%2/7/20271,868 1,767 1,841 
Secured Debt(9) (28 ) (29)2/7/202210.71%SF+6.25%2/7/202739,047 38,396 38,484 
40,163 40,325 
Clarius BIGS, LLC(10)Prints & Advertising Film Financing
Secured Debt(14) (17)9/23/201415.00%15.00%1/5/20152,712 2,712 19 
Computer Data Source, LLC(10)Third Party Maintenance Provider to the Data Center Ecosystem
Secured Debt(9) (43)8/6/202112.56%L+8.00%8/6/20265,000 4,928 4,621 
Secured Debt(9)8/6/202112.56%L+8.00%8/6/202618,588 18,315 17,178 
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2022
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (29)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
23,243 21,799 
Construction Supply Investments, LLC(10)Distribution Platform of Specialty Construction Materials to Professional Concrete and Masonry Contractors
Member Units(8)12/29/2016861,6183,335 21,165 
Dalton US Inc.(10)Provider of Supplemental Labor Services
Secured Debt(9) (29)8/16/202211.90%SF+8.00%8/16/20271,092 871 1,077 
Secured Debt(9) (25) (29)8/16/2022SF+8.00%8/16/2027— (74)(74)
Secured Debt(9) (29)8/16/202212.56%SF+8.00%8/16/202714,389 14,125 14,186 
Common Stock8/16/2022201201 201 
15,123 15,390 
DTE Enterprises, LLC(10)Industrial Powertrain Repair and Services
Secured Debt(9) (25)4/13/2018L+7.50%4/13/2023— (1)(1)
Secured Debt(9)4/13/201812.24%L+7.50%4/13/20236,074 6,065 5,934 
Class AA Preferred Member Units (non-voting)(8)4/13/201810.00%10.00%1,161 1,161 
Class A Preferred Member Units4/13/2018776,3168.00%8.00%776 380 
8,001 7,474 
Dynamic Communities, LLC(10)Developer of Business Events and Online Community Groups
Secured Debt(9) (29)12/20/20229.18%SF+4.50%9.18%12/31/20261,875 1,717 1,717 
Secured Debt(9) (29)12/20/202211.18%SF+6.50%11.18%12/31/20261,875 1,642 1,642 
Preferred Equity12/20/2022125,000128 128 
Preferred Equity12/20/20222,376,241— — 
Common Equity12/20/20221,250,000— — 
3,487 3,487 
Eastern Wholesale Fence LLC(10)Manufacturer and Distributor of Residential and Commercial Fencing Solutions
Secured Debt(9)11/19/202011.73%L+7.00%10/30/20253,346 3,290 3,276 
Secured Debt(9)11/19/202011.73%L+7.00%10/30/20255,021 4,967 4,916 
Secured Debt(9)11/19/202011.73%L+7.00%10/30/202523,456 23,149 22,967 
31,406 31,159 
Emerald Technologies Acquisition Co, Inc.(11)Design & Manufacturing
Secured Debt(9) (29)2/10/202210.67%SF+6.25%2/10/20289,258 9,099 8,787 
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2022
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (29)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
EnCap Energy Fund Investments(12) (13)Investment Partnership
LP Interests (EnCap Energy Capital Fund VIII, L.P.)(8) (31)1/22/20150.14%3,566 2,092 
LP Interests (EnCap Energy Capital Fund VIII Co-
Investors, L.P.)		(8) (31)1/21/20150.38%1,984 1,037 
LP Interests (EnCap Energy Capital Fund IX, L.P.)(8) (31)1/22/20150.10%3,699 2,019 
LP Interests (EnCap Energy Capital Fund X, L.P.)(8) (31)3/25/20150.15%8,236 9,351 
LP Interests (EnCap Flatrock Midstream Fund II, L.P.)(31)3/30/20150.84%5,358 1,688 
LP Interests (EnCap Flatrock Midstream Fund III, L.P.)(8) (31)3/27/20150.25%6,023 5,718 
28,866 21,905 
Engineering Research & Consulting, LLC(10)Provider of Engineering & Consulting Services to US Department of Defense
Secured Debt(9) (29)5/23/202211.68%SF+6.50%5/23/2027131 85 131 
Secured Debt(9) (29)5/23/202210.92%SF+6.50%5/23/202816,338 16,047 16,338 
16,132 16,469 
EPIC Y-Grade Services, LP(11)NGL Transportation & Storage
Secured Debt(9)6/22/201810.70%L+6.00%6/30/20276,823 6,764 6,141 
Event Holdco, LLC(10)Event and Learning Management Software for Healthcare Organizations and Systems
Secured Debt(9) (30)12/22/202110.67%L+7.00%12/22/20263,692 3,663 3,507 
Secured Debt(9) (30)12/22/202110.67%L+7.00%12/22/202644,308 43,955 42,083 
47,618 45,590 
Flip Electronics LLC(10)Distributor of Hard-to-Find and Obsolete Electronic Components
Secured Debt(9) (29)3/24/202211.21%SF+7.50%1/2/2026736 736 736 
Secured Debt(9) (29)1/4/202112.19%SF+7.50%1/2/202611,095 10,852 11,095 
11,588 11,831 
Fuse, LLC(11)Cable Networks Operator
Secured Debt6/30/201912.00%6/28/20241,810 1,810 1,512 
Common Stock6/30/201910,429256 — 
2,066 1,512 
GeoStabilization International (GSI)(11)Geohazard Engineering Services & Maintenance
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2022
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (29)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
Secured Debt(29)1/2/20199.44%SF+5.25%12/19/202520,497 20,427 19,472 
GS HVAM Intermediate, LLC(10)Specialized Food Distributor
Secured Debt(9)10/18/201911.20%L+6.50%10/2/20242,177 2,169 2,171 
Secured Debt(9)10/18/201911.24%L+6.50%10/2/202410,734 10,695 10,705 
12,864 12,876 
GULF PACIFIC ACQUISITION, LLC(10)Rice Processor and Merchandiser
Secured Debt(9) (29)9/30/202210.42%SF+6.00%9/30/2028252 233 252 
Secured Debt(9) (25) (29)9/30/2022SF+6.00%9/30/2028— (15)(15)
Secured Debt(9) (29)9/30/202210.73%SF+6.00%9/30/20283,661 3,591 3,661 
3,809 3,898 
HDC/HW Intermediate Holdings(10)Managed Services and Hosting Provider
Secured Debt(9) (29)12/21/201814.34%SF+9.50%2.00%12/21/2023320 319 311 
Secured Debt(9) (29)12/21/201814.34%SF+9.50%2.00%12/21/20233,277 3,262 3,186 
3,581 3,497 
HEADLANDS OP-CO LLC(10)Clinical Trial Sites Operator
Secured Debt(9) (25) (29)8/1/2022SF+6.50%8/1/2027— (62)(62)
Secured Debt(9) (25) (29)8/1/2022SF+6.50%8/1/2027— (62)(62)
Secured Debt(9) (29)8/1/202210.62%SF+6.50%8/1/202716,791 16,483 16,791 
16,359 16,667 
Heartland Dental, LLC(10)Dental Support Organization
Secured Debt(9)9/9/202010.88%L+6.50%4/30/202514,663 14,430 13,599 
HOWLCO LLC(11) (13) (21)Provider of Accounting and Business Development Software to Real Estate End Markets
Secured Debt(9)8/19/202110.69%L+6.00%10/23/202625,290 25,290 24,381 
Hybrid Promotions, LLC(10)Wholesaler of Licensed, Branded and Private Label Apparel
Secured Debt(29)6/30/202112.07%SF+8.25%6/30/20267,088 6,986 6,144 
IG Parent Corporation(11)Software Engineering
Secured Debt(9) (29) (41)7/30/202110.17%SF+5.75%7/30/2026698 670 698 
Secured Debt(9) (29)7/30/202110.17%SF+5.75%7/30/202814,499 14,304 14,499 
14,974 15,197 
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2022
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (29)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
Implus Footcare, LLC(10)Provider of Footwear and Related Accessories
Secured Debt(9)6/1/201713.98%L+7.75%1.50%4/30/202418,515 18,384 17,464 
Independent Pet Partners Intermediate Holdings, LLC(10)Omnichannel Retailer of Specialty Pet Products
Secured Debt(29)11/28/202214.42%SF+10.00%14.42%2/27/2023806 769 769 
Secured Debt(9) (35)8/20/202013.00%P+5.50%13.00%2/27/20237,027 7,027 7,027 
Secured Debt(14)12/10/20206.00%6.00%11/20/202318,428 17,664 7,633 
Preferred Stock (non-voting)12/10/20206.00%6.00%3,235 — 
Preferred Stock (non-voting)12/10/2020— — 
Member Units11/20/20181,558,3331,558 — 
Warrants(25) (38)11/20/2018242,91411/19/2028— — 
30,253 15,429 
Industrial Services Acquisition, LLC(10)Industrial Cleaning Services
Secured Debt(9)8/13/202111.50%L+6.75%8/13/2026463 430 463 
Secured Debt(9)8/13/202111.50%L+6.75%8/13/202619,239 18,956 19,239 
Preferred Member Units(8) (30)1/31/201814410.00%10.00%129 145 
Preferred Member Units(8) (30)5/17/20198020.00%20.00%92 93 
Member Units(30)6/17/2016900900 600 
20,507 20,540 
Infolinks Media Buyco, LLC(10)Exclusive Placement Provider to the Advertising Ecosystem
Secured Debt(9) (25)11/1/2021L+5.50%11/1/2026— (19)(19)
Secured Debt(9)11/1/202110.23%L+5.50%11/1/20268,593 8,461 8,593 
8,442 8,574 
Interface Security Systems, L.L.C(10)Commercial Security & Alarm Services
Secured Debt(44)12/9/202114.22%L+10.00%8/7/20231,682 1,682 1,682 
Secured Debt(9) (14)8/7/201912.07%L+7.00%1.00%8/7/20237,313 7,237 1,082 
Common Stock12/7/20212,143— — 
8,919 2,764 
Intermedia Holdings, Inc.(11)Unified Communications as a Service
Secured Debt(9)8/3/201810.38%L+6.00%7/19/202520,467 20,418 15,811 
Invincible Boat Company, LLC.(10)Manufacturer of Sport Fishing Boats
Secured Debt(9)8/28/201910.14%L+6.50%8/28/2025622 618 622 
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2022
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (29)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
Secured Debt(9)8/28/201910.17%L+6.50%8/28/202516,889 16,784 16,889 
17,402 17,511 
INW Manufacturing, LLC(11)Manufacturer of Nutrition and Wellness Products
Secured Debt(9)5/19/202110.48%L+5.75%3/25/20277,125 6,968 6,092 
Isagenix International, LLC(11)Direct Marketer of Health & Wellness Products
Secured Debt(9) (14)6/21/20189.93%L+7.75%6/14/20255,053 5,038 1,537 
Jackmont Hospitality, Inc.(10)Franchisee of Casual Dining Restaurants
Secured Debt(9)10/26/202212.23%L+7.50%11/4/2024500 483 500 
Secured Debt(9)11/8/202112.23%L+7.50%11/4/20242,079 2,079 2,079 
Preferred Equity(8)11/8/20212,826,66712.00%12.00%123 623 
2,685 3,202 
Joerns Healthcare, LLC(11)Manufacturer and Distributor of Health Care Equipment & Supplies
Secured Debt11/15/202118.00%1/31/20242,297 2,297 2,297 
Secured Debt(14)8/21/201919.75%19.75%8/21/20244,034 3,997 504 
Common Stock8/21/2019472,5794,429 — 
10,723 2,801 
JTI Electrical & Mechanical, LLC(10)Electrical, Mechanical and Automation Services
Secured Debt(9) (25)12/22/2021L+6.00%12/22/2026— (135)(135)
Secured Debt(9)12/22/202110.73%L+6.00%12/22/202636,947 36,358 36,947 
Common Equity12/22/20211,684,2111,684 2,840 
37,907 39,652 
KMS, LLC(10)Wholesaler of Closeout and Value-priced Products
Secured Debt(9)10/4/202112.00%L+7.25%10/4/20261,064 1,019 995 
Secured Debt(9)10/4/202112.00%L+7.25%10/4/20267,505 7,391 7,022 
8,410 8,017 
Kore Wireless Group Inc.(11)Mission Critical Software Platform
Secured Debt(29)12/31/201810.08%SF+5.50%9/21/202411,326 11,280 10,930 
Lightbox Holdings, L.P.(11)Provider of Commercial Real Estate Software
Secured Debt5/9/20199.73%L+5.00%5/9/202614,475 14,349 13,968 
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2022
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (29)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
LKCM Headwater Investments I, L.P.(12) (13)Investment Partnership
LP Interests(8) (31)1/25/20132.27%1,746 3,197 
LL Management, Inc.(10)Medical Transportation Service Provider
Secured Debt(9) (29)5/2/201911.21%SF+7.25%9/25/20238,106 8,087 8,047 
Secured Debt(9) (29)5/2/201911.67%SF+7.25%9/25/20239,197 9,160 9,130 
Secured Debt(9) (29)5/12/202211.67%SF+7.25%9/25/202310,827 10,733 10,749 
27,980 27,926 
LLFlex, LLC(10)Provider of Metal-Based Laminates
Secured Debt(9)8/16/202112.74%L+9.00%8/16/20264,444 4,370 4,350 
Logix Acquisition Company, LLC(10)Competitive Local Exchange Carrier
Secured Debt(9)1/8/201810.13%L+5.75%12/22/202419,662 19,033 16,221 
Looking Glass Investments, LLC(12) (13)Specialty Consumer Finance
Member Units7/1/20153125 25 
Mako Steel, LP(10)Self-Storage Design & Construction
Secured Debt(9) (45)3/15/202111.79%L+7.25%3/15/20263,103 3,063 3,083 
Secured Debt(9)3/15/202111.09%L+7.25%3/15/202615,324 15,122 15,224 
18,185 18,307 
MB2 Dental Solutions, LLC(11)Dental Partnership Organization
Secured Debt(9) (29)1/28/202110.42%SF+6.00%1/29/20278,338 8,267 8,338 
Secured Debt(9) (29)1/28/202110.42%SF+6.00%1/29/20277,876 7,784 7,876 
16,051 16,214 
Microbe Formulas, LLC(10)Nutritional Supplements Provider
Secured Debt(9) (25) (29)4/4/2022SF+6.25%4/3/2028— (63)(63)
Secured Debt(9) (29)4/4/20229.86%SF+6.25%4/3/202826,075 25,619 25,181 
25,556 25,118 
Mills Fleet Farm Group, LLC(10)Omnichannel Retailer of Work, Farm and Lifestyle Merchandise
Secured Debt(9)10/24/201810.66%L+6.25%10/24/202418,769 18,562 18,338 
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2022
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (29)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
MonitorUS Holding, LLC(10) (13) (21)SaaS Provider of Media Intelligence Services
Secured Debt(9) (25)5/24/2022L+7.00%5/24/2027— (64)(64)
Secured Debt(9)5/24/202211.73%L+7.00%5/24/202710,107 9,923 10,714 
Secured Debt(9)5/24/202211.73%L+7.00%5/24/202717,038 16,746 17,038 
Common Stock8/30/202244,445,814889 889 
27,494 28,577 
NBG Acquisition Inc(11)Wholesaler of Home Décor Products
Secured Debt(9)4/28/20179.67%L+5.50%4/26/20243,849 3,834 1,251 
NinjaTrader, LLC(10)Operator of Futures Trading Platform
Secured Debt(9) (25)12/18/2019L+6.25%12/18/2024— (1)— 
Secured Debt(9) (25)12/18/2019L+6.25%12/18/2024— (38)(38)
Secured Debt(9)12/18/20199.99%L+6.25%12/18/202421,666 21,418 21,666 
21,379 21,628 
NTM Acquisition Corp.(11)Provider of B2B Travel Information Content
Secured Debt(9)7/12/20169.50%L+6.25%1.00%6/7/20244,358 4,358 4,228 
NWN Corporation(10)Value Added Reseller and Provider of Managed Services to a Diverse Set of Industries
Secured Debt(9) (29) (46)5/7/202110.85%SF+8.00%5/7/20263,941 3,797 3,720 
Secured Debt(9) (29)5/7/202112.56%SF+8.00%5/7/202639,851 39,094 37,616 
Secured Debt12/16/202220.00%20.00%8/6/20266,509 6,194 6,194 
49,085 47,530 
Ospemifene Royalty Sub LLC(10)Estrogen-Deficiency Drug Manufacturer and Distributor
Secured Debt(14)7/8/201311.50%11/15/20264,489 4,489 103 
OVG Business Services, LLC(10)Venue Management Services
Secured Debt(9)11/29/202110.64%L+6.25%11/19/202813,930 13,813 13,094 
Paragon Healthcare, Inc.(10)Infusion Therapy Treatment Provider
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2022
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (29)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
Secured Debt(9) (29)1/19/202210.26%SF+5.75%1/19/2027541 437 530 
Secured Debt(9) (29) (47)1/19/20229.96%SF+5.75%1/19/20272,701 2,609 2,649 
Secured Debt(9) (29)1/19/20229.81%SF+5.75%1/19/202718,293 17,852 17,939 
20,898 21,118 
Project Eagle Holdings, LLC(10)Provider of Secure Business Collaboration Software
Secured Debt(9) (25)7/6/2020L+6.25%7/6/2026— (18)(18)
Secured Debt(9)7/6/202010.64%L+6.25%7/6/202629,475 29,040 29,419 
29,022 29,401 
PTL US Bidco, Inc(10) (13) (21)Manufacturers of Equipment, Including Drilling Rigs and Equipment, and Providers of Supplies and Services to Companies Involved In the Drilling, Evaluation and Completion of Oil and Gas Wells.
Secured Debt(9) (25) (29)8/19/2022SF+7.25%8/19/2027— (174)(174)
Secured Debt(9) (29)8/19/202211.80%SF+7.25%8/19/202728,265 27,749 27,911 
27,575 27,737 
RA Outdoors LLC(10)Software Solutions Provider for Outdoor Activity Management
Secured Debt(9) (25) (29)4/8/2021SF+6.75%4/8/2026— (11)(11)
Secured Debt(9) (29)4/8/202110.56%SF+6.75%4/8/202613,369 13,241 12,094 
13,230 12,083 
Research Now Group, Inc. and Survey Sampling International, LLC(11)Provider of Outsourced Online Surveying
Secured Debt(9)12/29/20178.84%L+5.50%12/20/202419,966 19,745 15,116 
RM Bidder, LLC(10)Scripted and Unscripted TV and Digital Programming Provider
Member Units11/12/20152,77946 19 
Warrants(26)11/12/2015327,53210/20/2025425 — 
471 19 
Roof Opco, LLC(10)Residential Re-Roofing/Repair
Secured Debt(9) (29)8/27/202110.97%SF+6.50%8/27/2026311 300 311 
Secured Debt(9) (29)8/27/202110.32%SF+6.50%8/27/20262,333 2,291 2,333 
Secured Debt(9) (29)8/27/202110.32%SF+6.50%8/27/20263,173 3,125 3,173 
5,716 5,817 
RTIC Subsidiary Holdings, LLC(10)Direct-To-Consumer eCommerce Provider of Outdoor Products
Secured Debt(9) (29) (48)9/1/202012.02%SF+7.75%9/1/20251,361 1,343 1,258 
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2022
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (29)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
Secured Debt(9) (29)9/1/202011.49%SF+7.75%9/1/202516,623 16,506 15,367 
17,849 16,625 
Rug Doctor, LLC.(10)Carpet Cleaning Products and Machinery
Secured Debt(9) (29)7/16/202113.02%SF+6.25%2.00%11/16/20245,625 5,590 5,037 
Secured Debt(9) (29)7/16/202113.02%SF+6.25%2.00%11/16/20248,340 8,223 7,478 
13,813 12,515 
Savers, Inc.(11)For-Profit Thrift Retailer
Secured Debt(9) (29)5/14/202110.34%SF+5.50%4/26/202811,286 11,199 10,938 
SIB Holdings, LLC(10)Provider of Cost Reduction Services
Secured Debt(9)10/29/202111.01%L+6.25%10/29/2026417 408 393 
Secured Debt(9)10/29/202111.01%L+6.25%10/29/20261,553 1,527 1,433 
Secured Debt(9)10/29/202111.01%L+6.25%10/29/20267,750 7,626 7,151 
Common Equity10/29/202195,238200 146 
9,761 9,123 
South Coast Terminals Holdings, LLC(10)Specialty Toll Chemical Manufacturer
Secured Debt(9) (25)12/10/2021L+5.75%12/13/2026— (71)(71)
Secured Debt(9)12/10/20219.69%L+5.75%12/13/202641,255 40,603 41,255 
Common Equity12/10/2021863,636864 1,316 
41,396 42,500 
SPAU Holdings, LLC(10)Digital Photo Product Provider
Secured Debt(9) (25) (29)7/1/2022SF+7.50%7/1/2027— (57)(57)
Secured Debt(9) (29)7/1/202211.06%SF+7.50%7/1/202715,928 15,641 15,928 
Common Stock7/1/2022638,710639 639 
16,223 16,510 
Staples Canada ULC(10) (13) (21)Office Supplies Retailer
Secured Debt(9) (22)9/14/201711.83%L+7.00%9/12/202413,740 13,698 12,481 
Stellant Systems, Inc.(11)Manufacturer of Traveling Wave Tubes and Vacuum Electronic Devices
Secured Debt(9) (29)10/22/202110.05%SF+5.50%10/1/20287,623 7,559 7,166 
Tacala Investment Corp.(33)Quick Service Restaurant Group
Secured Debt(9) (32)3/19/20217.88%L+3.50%2/5/20271,974 1,974 1,904 
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2022
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (29)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
Team Public Choices, LLC(11)Home-Based Care Employment Service Provider
Secured Debt(9)12/22/20209.93%L+5.00%12/18/202714,964 14,690 14,290 
Tectonic Financial, LLCFinancial Services Organization
Common Stock(8)5/15/2017200,0002,000 5,630 
Tex Tech Tennis, LLC(10)Sporting Goods & Textiles
Preferred Equity(30)7/7/20211,000,0001,000 1,830 
U.S. TelePacific Corp.(11)Provider of Communications and Managed Services
Secured Debt(9) (29)5/17/201711.57%SF+1.25%7.25%5/2/202618,352 18,284 6,859 
USA DeBusk LLC(10)Provider of Industrial Cleaning Services
Secured Debt(9)10/22/20199.82%L+5.75%9/8/202633,577 33,031 33,577 
Veregy Consolidated, Inc.(11)Energy Service Company
Secured Debt(9) (25)11/9/2020L+5.25%11/3/2025— (630)(630)
Secured Debt(9)11/9/202010.41%L+6.00%11/3/202717,685 17,381 15,479 
16,751 14,849 
Vida Capital, Inc(11)Alternative Asset Manager
Secured Debt10/10/201910.38%L+6.00%10/1/202615,448 15,313 12,049 
Vistar Media, Inc.(10)Operator of Digital Out-of-Home Advertising Platform
Preferred Stock4/3/201970,207767 2,250 
VORTEQ Coil Finishers, LLC(10)Specialty Coating of Aluminum and Light-Gauge Steel
Common Equity(8)11/30/20211,038,4621,038 3,930 
Wahoo Fitness Acquisition L.L.C.(11)Fitness Training Equipment Provider
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2022
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (29)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
Secured Debt(9) (29)8/17/202110.64%SF+5.75%8/12/202814,625 14,268 8,409 
Wall Street Prep, Inc.(10)Financial Training Services
Secured Debt(9) (25)7/19/2021L+7.00%7/19/2026— (6)(6)
Secured Debt(9)7/19/202110.74%L+7.00%7/19/20264,235 4,173 4,146 
Common Stock7/19/2021400,000400 420 
4,567 4,560 
Watterson Brands, LLC(10)Facility Management Services
Secured Debt(9)12/17/202110.73%L+6.00%12/17/2026371 334 370 
Secured Debt(9)12/17/202110.73%L+6.00%12/17/2026391 361 391 
Secured Debt(9)12/17/202110.73%L+6.00%12/17/202628,957 28,591 28,947 
29,286 29,708 
West Star Aviation Acquisition, LLC(10)Aircraft, Aircraft Engine and Engine Parts
Secured Debt(9) (25) (29)3/1/2022SF+6.00%3/1/2028— (20)(20)
Secured Debt(9) (29)3/1/20228.59%SF+6.00%3/1/202810,794 10,608 10,685 
Common Stock3/1/20221,541,4001,541 1,950 
12,129 12,615 
Winter Services LLC(10)Provider of Snow Removal and Ice Management Services
Secured Debt(9) (25)11/19/2021L+7.00%11/19/2026— (34)— 
Secured Debt(9) (25)11/19/2021L+7.00%11/19/2026— (17)(17)
Secured Debt(9)11/19/202110.74%L+7.00%11/19/202610,000 9,848 9,992 
9,797 9,975 
Xenon Arc, Inc.(10)Tech-enabled Distribution Services to Chemicals and Food Ingredients Primary Producers
Secured Debt(25)12/17/2021L+5.25%12/17/2026— (218)(218)
Secured Debt12/17/202110.84%L+5.25%12/17/202724,300 23,864 24,135 
Secured Debt12/17/20218.63%L+5.25%12/17/202738,311 37,691 38,051 
61,337 61,968 
YS Garments, LLC(11)Designer and Provider of Branded Activewear
Secured Debt(9)8/22/20189.51%L+5.50%8/9/202412,659 12,619 12,127 
Zips Car Wash, LLC(10)Express Car Wash Operator
Secured Debt(9) (29)2/11/202211.67%SF+7.25%3/1/202417,512 17,279 17,512 
Secured Debt(9) (29) (33)2/11/202211.67%SF+7.25%3/1/20244,389 4,360 4,379 
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2022
(dollars in thousands)
Portfolio Company (1) (20)Business DescriptionType of Investment (2) (3) (15)Investment Date
(24)		Shares/UnitsTotal RateReference Rate and Spread (29)PIK Rate (19)Maturity
Date		Principal (4)Cost (4)Fair Value (18)
21,639 21,891 
Subtotal Non-Control/Non-Affiliate Investments (84.4%% of net assets at fair value)
$1,867,414 $1,780,646 
Total Portfolio Investments, December 31, 2022 (194.5%% of net assets at fair value)
$3,773,752 $4,102,177 
____________________
(1)All investments are Lower Middle Market portfolio investments, unless otherwise noted. See Note C — Fair Value Hierarchy for Investments — Portfolio Composition for a description of Lower Middle Market portfolio investments. All of the Company’s investments, unless otherwise noted, are encumbered either as security for the Company’s Corporate Facility or SPV Facility (each as defined in Note B.5. — Summary of Significant Accounting Policies — Deferred Financing Costs, and together the “Credit Facilities”) or in support of the SBA-guaranteed debentures issued by the Funds.
(2)Debt investments are income producing, unless otherwise noted by footnote (14), as described below. Equity and warrants are non-income producing, unless otherwise noted by footnote (8), as described below.
(3)See Note C — Fair Value Hierarchy for Investments — Portfolio Composition and Schedule 12-14 for a summary of geographic location of portfolio companies.
(4)Principal is net of repayments. Cost is net of repayments and accumulated unearned income. Negative cost is the result of the capitalized discount being greater than the principal amount outstanding on the loan.
(5)Control investments are defined by the 1940 Act as investments in which more than 25% of the voting securities are owned or where the ability to nominate greater than 50% of the board representation is maintained.
(6)Affiliate investments are defined by the 1940 Act as investments in which between 5% and 25% (inclusive) of the voting securities are owned and the investments are not classified as Control investments.
(7)Non-Control/Non-Affiliate investments are defined by the 1940 Act as investments that are neither Control investments nor Affiliate investments.
(8)Income producing through dividends or distributions.
(9)Index based floating interest rate is subject to contractual minimum interest rate. As noted in this schedule, 66% of these floating rate loans (based on the par amount) contain LIBOR or Term SOFR (“SOFR”) floors which range between 0.50% and 2.00%, with a weighted-average floor of 1.04%.
(10)Private Loan portfolio investment. See Note C — Fair Value Hierarchy for Investments — Portfolio Composition for a description of Private Loan portfolio investments.
(11)Middle Market portfolio investment. See Note C — Fair Value Hierarchy for Investments — Portfolio Composition for a description of Middle Market portfolio investments.
(12)Other Portfolio investment. See Note C — Fair Value Hierarchy for Investments — Portfolio Composition for a description of Other Portfolio investments.
(13)Investment is not a qualifying asset as defined under Section 55(a) of the 1940 Act. Qualifying assets must represent at least 70% of total assets at the time of acquisition of any additional non-qualifying assets.
(14)Non-accrual and non-income producing debt investment.
(15)All of the Company’s portfolio investments are generally subject to restrictions on resale as “restricted securities.”
(16)External Investment Manager. Investment is not encumbered as security for the Company’s Credit Facilities or in support of the SBA-guaranteed debentures issued by the Funds.
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments (Continued)
December 31, 2022
(dollars in thousands)
(17)Maturity date is under on-going negotiations with the portfolio company and other lenders, if applicable.
(18)Investment fair value was determined using significant unobservable inputs, unless otherwise noted. See Note C — Fair Value Hierarchy for Investments — Portfolio Composition for further discussion. Negative fair value is the result of the capitalized discount on the loan or the unfunded commitment being valued below par.
(19)Investments may have a portion, or all, of their income received from Paid-in-Kind (“PIK”) interest or dividends. PIK interest income and cumulative dividend income represent income not paid currently in cash. The difference between the Total Rate and PIK Rate represents the cash rate as of December 31, 2022.
(20)All portfolio company headquarters are based in the United States, unless otherwise noted.
(21)Portfolio company headquarters are located outside of the United States.
(22)In connection with the Company’s debt investment in Staples Canada ULC and in an attempt to mitigate any potential adverse change in foreign exchange rates during the term of the Company’s investment, the Company maintains a forward foreign currency contract with Cadence Bank to lend $16.9 million Canadian Dollars and receive $13.1 million U.S. Dollars with a settlement date of September 14, 2023. The unrealized appreciation on the forward foreign currency contract was $0.6 million as of December 31, 2022.
(23)The Company has entered into an intercreditor agreement that entitles the Company to the “last out” tranche of the first lien secured loans, whereby the “first out” tranche will receive priority as to the “last out” tranche with respect to payments of principal, interest, and any other amounts due thereunder. Therefore, the Company receives a higher interest rate than the contractual stated interest rate of SOFR+6.00% (Floor 1.00%) per the credit agreement and the Consolidated Schedule of Investments above reflects such higher rate.
(24)Investment date represents the date of initial investment in the security position.
(25)The position is unfunded and no interest income is being earned as of December 31, 2022. The position may earn a nominal unused facility fee on committed amounts.
(26)Warrants are presented in equivalent units with a strike price of $14.28 per unit.
(27)Warrants are presented in equivalent shares/units with a strike price of $0.01 per share/unit.
(28)As of December 31, 2022, borrowings under the loan facility bore interest at SOFR+6.25% (Floor 1.00%). Due to an amendment and subsequent funding during the quarter, the term loan facility has different floating rate reset dates. The rate presented represents a weighted-average rate for borrowings under the facility, as of December 31, 2022.
(29)A majority of the variable rate loans in the Company’s Investment Portfolio bear interest at a rate that may be determined by reference to either LIBOR (“L”), SOFR (“SF”) or an alternate Base rate (commonly based on the Federal Funds Rate or the Prime rate (“P”)), which typically resets every one, three, or six months at the borrower’s option. SOFR based contracts may include a credit spread adjustment (the “Adjustment”) that is charged in addition to the stated spread. The Adjustment is applied when the SOFR rate, plus the Adjustment, exceeds the stated floor rate, as applicable. As of December 31, 2022, SOFR based contracts in the portfolio had Adjustments ranging from 0.10% to 0.35%.
(30)Shares/Units represent ownership in a related Real Estate or HoldCo entity.
(31)Investment is not unitized. Presentation is made in percent of fully diluted ownership unless otherwise indicated.
(32)Short-term portfolio investments. See Note C — Fair Value Hierarchy for Investments — Portfolio Composition for a description of short-term portfolio investments.
(33)As of December 31, 2022, borrowings under the loan facility bore interest at SOFR+7.25% (Floor 1.00%). Each new draw on the delayed draw term loan facility has a different floating rate reset date. The rate presented represents a weighted-average rate for borrowings under the facility, as of December 31, 2022.
(34)The security has an effective contractual interest rate of 2.00% PIK + LIBOR+6.50%, Floor 1.00%, but the issuer may, in its discretion, elect to pay the PIK interest in cash. The rate presented represents the effective current yield based on actual payments received during the period.
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Consolidated Schedule of Investments (Continued)
December 31, 2022
(dollars in thousands)
(35)As of December 31, 2022, borrowings under the loan facility bore interest at LIBOR+6.50% PIK or Prime+5.50% PIK. Revolving facility permits the borrower to make an interest rate election regarding the base rate on each draw under the facility. The rate presented represents a weighted-average rate for borrowings under the facility, as of December 31, 2022.
(36)Index based floating interest rate is subject to contractual maximum base rate of 2.50%.
(37)Index based floating interest rate is subject to contractual maximum base rate of 1.50%.
(38)Warrants are presented in equivalent shares/units with a strike price of $1.00 per share/unit.
(39)Portfolio company is in a bankruptcy process and, as such, the maturity date of our debt investment in this portfolio company will not be finally determined until such process is complete. As noted in footnote (14), our debt investment in this portfolio company is on non-accrual status.
(40)The Company has entered into an intercreditor agreement that entitles the Company to the “last out” tranche of the first lien secured loans, whereby the “first out” tranche will receive priority as to the “last out” tranche with respect to payments of principal, interest, and any other amounts due thereunder. Therefore, the Company receives a higher interest rate than the contractual stated interest rate of SOFR+8.00% (Floor 1.50%) per the credit agreement and the Consolidated Schedule of Investments above reflects such higher rate.
(41)As of December 31, 2022, borrowings under the loan facility bore interest at SOFR+5.75% (Floor 1.00%). RLOC facility permits the borrower to make an interest rate election regarding the base rate on each draw under the facility. The rate presented represents a weighted-average rate for borrowings under the facility, as of December 31, 2022.
(42)As of December 31, 2022, borrowings under the loan facility bore interest at SOFR+6.25% (Floor 1.00%). RLOC facility permits the borrower to make an interest rate election regarding the base rate on each draw under the facility. The rate presented represents a weighted-average rate for borrowings under the facility, as of December 31, 2022.
(43)As of December 31, 2022, borrowings under the loan facility bore interest at LIBOR+8.00% (Floor 1.00%). RLOC facility permits the borrower to make an interest rate election regarding the base rate on each draw under the facility. The rate presented represents a weighted-average rate for borrowings under the facility, as of December 31, 2022.
(44)As of December 31, 2022, borrowings under the loan facility bore interest at LIBOR+10.00%. RLOC facility permits the borrower to make an interest rate election regarding the base rate on each draw under the facility. The rate presented represents a weighted-average rate for borrowings under the facility, as of December 31, 2022.
(45)As of December 31, 2022, borrowings under the loan facility bore interest at LIBOR+7.25% (Floor 0.75%). RLOC facility permits the borrower to make an interest rate election regarding the base rate on each draw under the facility. The rate presented represents a weighted-average rate for borrowings under the facility, as of December 31, 2022.
(46)As of December 31, 2022, borrowings under the loan facility bore interest at SOFR+8.00% (Floor 1.00%). RLOC facility permits the borrower to make an interest rate election regarding the base rate on each draw under the facility. The rate presented represents a weighted-average rate for borrowings under the facility, as of December 31, 2022.
(47)As of December 31, 2022, borrowings under the loan facility bore interest at SOFR+5.75% (Floor 1.00%). Delayed draw term loan facility permits the borrower to make an interest rate election regarding the base rate on each draw under the facility. The rate presented represents a weighted-average rate for borrowings under the facility, as of December 31, 2022.
(48)As of December 31, 2022, borrowings under the loan facility bore interest at SOFR+7.75% (Floor 1.25%). RLOC facility permits the borrower to make an interest rate election regarding the base rate on each draw under the facility. The rate presented represents a weighted-average rate for borrowings under the facility, as of December 31, 2022.


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Notes to the Consolidated Financial Statements



NOTE A — ORGANIZATION AND BASIS OF PRESENTATION
1.Organization
Main Street Capital Corporation (“MSCC” or, together with its consolidated subsidiaries, “Main Street” or the “Company”) is a principal investment firm primarily focused on providing customized debt and equity financing to lower middle market (“LMM”) companies and debt capital to middle market (“Middle Market”) companies. Main Street’s portfolio investments are typically made to support management buyouts, recapitalizations, growth financings, refinancings and acquisitions of companies that operate in a variety of industry sectors. Main Street seeks to partner with entrepreneurs, business owners and management teams and generally provides “one-stop” financing alternatives within its LMM investment strategy. Main Street invests primarily in secured debt investments, equity investments, warrants and other securities of LMM companies based in the United States and in secured debt investments of Middle Market companies generally headquartered in the United States.
MSCC was formed in March 2007 to operate as an internally managed business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). Because MSCC is internally managed, all of the executive officers and other employees are employed by MSCC. Therefore, MSCC does not pay any external investment advisory fees, but instead directly incurs the operating costs associated with employing investment and portfolio management professionals.
MSCC wholly owns several investment funds, including Main Street Mezzanine Fund, LP (“MSMF”) and Main Street Capital III, LP (“MSC III” and, together with MSMF, the “Funds”), and each of their general partners. The Funds are each licensed as a Small Business Investment Company (“SBIC”) by the United States Small Business Administration (“SBA”).
MSC Adviser I, LLC (the “External Investment Manager”) was formed in November 2013 as a wholly-owned subsidiary of Main Street to provide investment management and other services to parties other than Main Street (“External Parties”) and receives fee income for such services. MSCC has been granted no-action relief by the Securities and Exchange Commission (“SEC”) to allow the External Investment Manager to register as a registered investment adviser under the Investment Advisers Act of 1940, as amended. Since the External Investment Manager conducts all of its investment management activities for External Parties, it is accounted for as a portfolio investment of Main Street and is not included as a consolidated subsidiary in Main Street’s consolidated financial statements.
MSCC has elected to be treated for U.S. federal income tax purposes as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). As a result, MSCC generally does not pay corporate-level U.S. federal income taxes on any net ordinary taxable income or capital gains that it distributes to its stockholders.
MSCC has certain direct and indirect wholly-owned subsidiaries that have elected to be taxable entities (the “Taxable Subsidiaries”). The primary purpose of the Taxable Subsidiaries is to permit MSCC to hold equity investments in portfolio companies which are “pass-through” entities for tax purposes. MSCC also has certain direct and indirect wholly-owned subsidiaries formed for financing purposes (the “Structured Subsidiaries”).
Unless otherwise noted or the context otherwise indicates, the terms “we,” “us,” “our,” the “Company” and “Main Street” refer to MSCC and its consolidated subsidiaries, which include the Funds, the Taxable Subsidiaries and the Structured Subsidiaries.
2.Basis of Presentation
Main Street’s consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). The Company is an investment company following accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 946, Financial Services—Investment Companies (“ASC 946”). For each of the periods presented herein, Main Street’s consolidated financial statements include the accounts of MSCC and its consolidated subsidiaries. The Investment
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Notes to the Consolidated Financial Statements (Continued)
Portfolio, as used herein, refers to all of Main Street’s investments in LMM portfolio companies, investments in Private Loan portfolio companies, investments in Middle Market portfolio companies, Other Portfolio investments and the investment in the External Investment Manager (see Note C — Fair Value Hierarchy for Investments — Portfolio Composition — Investment Portfolio Composition for additional discussion of Main Street’s Investment Portfolio and definitions for the defined terms Private Loan and Other Portfolio). Main Street’s results of operations and cash flows for the years ended December 31, 2023, 2022 and 2021 and financial position as of December 31, 2023 and 2022, are presented on a consolidated basis. The effects of all intercompany transactions between MSCC and its consolidated subsidiaries have been eliminated in consolidation.
Principles of Consolidation
Under ASC 946, Main Street is precluded from consolidating other entities in which Main Street has equity investments, including those in which it has a controlling interest, unless the other entity is another investment company. An exception to this general principle in ASC 946 occurs if Main Street holds a controlling interest in an operating company that provides all or substantially all of its services directly to Main Street. Accordingly, as noted above, MSCC’s consolidated financial statements include the financial position and operating results for the Funds, the Taxable Subsidiaries and the Structured Subsidiaries. Main Street has determined that none of its portfolio investments qualify for this exception, including the investment in the External Investment Manager. Therefore, Main Street’s Investment Portfolio is carried on the Consolidated Balance Sheets at fair value, as discussed further in Note B.1. — Summary of Significant Accounting Policies — Valuation of the Investment Portfolio, with any adjustments to fair value recognized as “Net Unrealized Appreciation (Depreciation)” until the investment is realized, usually upon exit, resulting in any gain or loss being recognized as a “Net Realized Gain (Loss),” in both cases on the Consolidated Statements of Operations.    
Portfolio Investment Classification
Main Street classifies its Investment Portfolio in accordance with the requirements of the 1940 Act. Under the 1940 Act, (a) “Control Investments” are defined as investments in which Main Street owns more than 25% of the voting securities or has rights to maintain greater than 50% of the board representation, (b) “Affiliate Investments” are defined as investments in which Main Street owns between 5% and 25% (inclusive) of the voting securities and does not have rights to maintain greater than 50% of the board representation and (c) “Non-Control/Non-Affiliate Investments” are defined as investments that are neither Control Investments nor Affiliate Investments. For purposes of determining the classification of its Investment Portfolio, Main Street has excluded consideration of any voting securities or board appointment rights held by third-party investment funds advised by the External Investment Manager.
NOTE B — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
1.Valuation of the Investment Portfolio
Main Street accounts for its Investment Portfolio at fair value. As a result, Main Street follows the provisions of ASC 820, Fair Value Measurements and Disclosures (“ASC 820”). ASC 820 defines fair value, establishes a framework for measuring fair value, establishes a fair value hierarchy based on the quality of inputs used to measure fair value and enhances disclosure requirements for fair value measurements. ASC 820 requires Main Street to assume that the portfolio investment is to be sold in the principal market to independent market participants, which may be a hypothetical market. Market participants are defined as buyers and sellers in the principal market that are independent, knowledgeable and willing and able to transact.
Main Street’s portfolio strategy calls for it to invest primarily in illiquid debt and equity securities issued by privately held, LMM companies and debt securities issued by Middle Market companies that are generally larger in size than the LMM companies and that can be more liquid than the debt securities issued by LMM companies. Main Street categorizes some of its investments in LMM companies and Middle Market companies as Private Loan portfolio investments, which are primarily debt securities in privately held companies that have primarily been originated directly by Main Street or, to a lesser extent, through its strategic relationships with other investment funds on a collaborative basis through investments that are often referred to in the debt markets as “club deals” because of the small lender group size. In both cases, Main Street’s Private Loan investments are typically made to support a company owned by or in the process of being acquired by a private equity sponsor. Private Loan investments are made in companies that are consistent with the size of companies Main Street invests in through its LMM portfolio and Middle Market portfolio. Main Street’s portfolio
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Notes to the Consolidated Financial Statements (Continued)
also includes Other Portfolio investments which primarily consist of investments that are not consistent with the typical profiles for its LMM, Private Loan or Middle Market portfolio investments, including investments which may be managed by third parties. Main Street’s portfolio may also include short-term portfolio investments that are atypical of Main Street’s LMM, Private Loan and Middle Market portfolio investments in that they are intended to be a short-term deployment of capital and are more liquid than investments within the other portfolios. Main Street’s portfolio investments may be subject to restrictions on resale.
LMM investments and Other Portfolio investments generally have no established trading market, while Private Loan investments may include investments which have no established market or have established markets that are not active. Middle Market and short-term portfolio investments generally have established markets that are not active. Main Street determines in good faith the fair value of its Investment Portfolio pursuant to a valuation policy in accordance with ASC 820, with such valuation process approved by its Board of Directors and in accordance with the 1940 Act. Main Street’s valuation policies and processes are intended to provide a consistent basis for determining the fair value of Main Street’s Investment Portfolio.
For LMM portfolio investments, Main Street generally reviews external events, including private mergers, sales and acquisitions involving comparable companies, and includes these events in the valuation process by using an enterprise value waterfall methodology (“Waterfall”) for its LMM equity investments and an income approach using a yield-to-maturity model (“Yield-to-Maturity”) valuation method for its LMM debt investments. For Private Loan and Middle Market portfolio investments in debt securities for which it has determined that third-party quotes or other independent pricing are not available or appropriate, Main Street generally estimates the fair value based on the assumptions that it believes hypothetical market participants would use to value the investment in a current hypothetical sale using the Yield-to-Maturity valuation method. For Middle Market and short-term portfolio investments in debt securities for which it has determined that third-party quotes or other independent prices are available, Main Street primarily uses quoted prices in the valuation process. Main Street determines the appropriateness of the use of third-party broker quotes, if any, in determining fair value based on its understanding of the level of actual transactions used by the broker to develop the quote and whether the quote was an indicative price or binding offer, the depth and consistency of broker quotes and the correlation of changes in broker quotes with underlying performance of the portfolio company and other market indices. For its Other Portfolio equity investments, Main Street generally calculates the fair value of the investment primarily based on the net asset value (“NAV”) of the fund and adjusts the fair value for other factors deemed relevant that would affect the fair value of the investment. All of the valuation approaches for Main Street’s portfolio investments estimate the value of the investment as if Main Street were to sell, or exit, the investment as of the measurement date.
These valuation approaches consider the value associated with Main Street’s ability to control the capital structure of the portfolio company, as well as the timing of a potential exit. For valuation purposes, “control” portfolio investments are composed of debt and equity securities in companies for which Main Street has a controlling interest in the equity ownership of the portfolio company or the ability to nominate a majority of the portfolio company’s board of directors. For valuation purposes, “non-control” portfolio investments are generally composed of debt and equity securities in companies for which Main Street does not have a controlling interest in the equity ownership of the portfolio company or the ability to nominate a majority of the portfolio company’s board of directors.
Under the Waterfall valuation method, Main Street estimates the enterprise value of a portfolio company using a combination of market and income approaches or other appropriate valuation methods, such as considering recent transactions in the equity securities of the portfolio company or third-party valuations of the portfolio company, and then performs a Waterfall calculation by allocating the enterprise value over the portfolio company’s securities in order of their preference relative to one another. The enterprise value is the fair value at which an enterprise could be sold in a transaction between two willing parties, other than through a forced or liquidation sale. Typically, privately held companies are bought and sold based on multiples of earnings before interest, taxes, depreciation and amortization (“EBITDA”), cash flows, net income, revenues, or in limited cases, book value. There is no single methodology for estimating enterprise value. For any one portfolio company, enterprise value is generally described as a range of values from which a single estimate of enterprise value is derived. In estimating the enterprise value of a portfolio company, Main Street analyzes various factors including the portfolio company’s historical and projected financial results. Due to SEC deadlines for Main Street’s quarterly and annual financial reporting, the operating results of a portfolio company used in the current period valuation are generally the results from the period ended three months prior to such valuation date and may include unaudited, projected, budgeted or pro forma financial information and may require adjustments for non-recurring items or to normalize the operating results that may require significant judgment in determining. In addition, projecting future financial results requires significant judgment regarding future growth assumptions. In evaluating the operating results,
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Notes to the Consolidated Financial Statements (Continued)
Main Street also analyzes the impact of exposure to litigation, loss of customers or other contingencies. After determining the appropriate enterprise value, Main Street allocates the enterprise value to investments in order of the legal priority of the various components of the portfolio company’s capital structure. In applying the Waterfall valuation method, Main Street assumes the loans are paid-off at the principal amount in a change in control transaction and are not assumed by the buyer, which Main Street believes is consistent with its past transaction history and standard industry practices.
Under the Yield-to-Maturity valuation method, Main Street also uses the income approach to determine the fair value of debt securities based on projections of the discounted future free cash flows that the debt security will likely generate, including analyzing the discounted cash flows of interest and principal amounts for the debt security, as set forth in the associated loan agreements, as well as the financial position and credit risk of the portfolio company. Main Street’s estimate of the expected repayment date of its debt securities is generally the maturity date of the instrument, as Main Street generally intends to hold its loans and debt securities to maturity. The Yield-to-Maturity analysis also considers changes in leverage levels, credit quality, portfolio company performance, changes in market-based interest rates and other factors. Main Street will generally use the value determined by the Yield-to-Maturity analysis as the fair value for that security; however, because of Main Street’s general intent to hold its loans to maturity, the fair value will not exceed the principal amount of the debt security valued using the Yield-to-Maturity valuation method. A change in the assumptions that Main Street uses to estimate the fair value of its debt securities using the Yield-to-Maturity valuation method could have a material impact on the determination of fair value. If there is deterioration in credit quality or if a debt security is in workout status, Main Street may consider other factors in determining the fair value of the debt security, including the value attributable to the debt security from the enterprise value of the portfolio company or the proceeds that would most likely be received in a liquidation analysis.
Under the NAV valuation method, for an investment in an investment fund that does not have a readily determinable fair value, Main Street measures the fair value of the investment predominately based on the NAV of the investment fund as of the measurement date and adjusts the investment’s fair value for factors known to Main Street that would affect that fund’s NAV, including, but not limited to, fair values for individual investments held by the fund if Main Street holds the same investment or for a publicly traded investment. In addition, in determining the fair value of the investment, Main Street considers whether adjustments to the NAV are necessary in certain circumstances, based on the analysis of any restrictions on redemption of Main Street’s investment as of the measurement date, recent actual sales or redemptions of interests in the investment fund, and expected future cash flows available to equity holders, including the rate of return on those cash flows compared to an implied market return on equity required by market participants, or other uncertainties surrounding Main Street’s ability to realize the full NAV of its interests in the investment fund.
Pursuant to its internal valuation process and the requirements under the 1940 Act, Main Street performs valuation procedures on each of its portfolio investments quarterly. In addition to its internal valuation process, in arriving at estimates of fair value for its investments in its LMM portfolio companies, Main Street, among other things, consults with a nationally recognized independent financial advisory services firm (the “Financial Advisory Firm”). The Financial Advisory Firm analyzes and provides observations, recommendations and an assurance certification regarding Main Street’s determinations of the fair value of its LMM portfolio company investments. The Financial Advisory Firm is generally consulted relative to Main Street’s investments in each LMM portfolio company at least once every calendar year, and for Main Street’s investments in new LMM portfolio companies, at least once in the twelve-month period subsequent to the initial investment. In certain instances, Main Street may determine that it is not cost-effective, and as a result is not in its stockholders’ best interest, to consult with the Financial Advisory Firm on its investments in one or more LMM portfolio companies. Such instances include, but are not limited to, situations where the fair value of Main Street’s investment in a LMM portfolio company is determined to be insignificant relative to the total Investment Portfolio. Main Street consulted with and received an assurance certification from the Financial Advisory Firm in arriving at Main Street’s determination of fair value for its investments in a total of 70 and 66 LMM portfolio companies during the years ended December 31, 2023 and 2022, respectively, representing 95% and 94% of the total LMM portfolio at fair value as of December 31, 2023 and 2022, respectively. Excluding its investments in LMM portfolio companies that, as of December 31, 2023 and 2022, as applicable, had not been in the Investment Portfolio for at least twelve months subsequent to the initial investment or whose primary purpose is to own real estate for which a third-party appraisal is obtained on at least an annual basis, 99% of the LMM portfolio at fair value was reviewed and certified by the Financial Advisory Firm for both of the years ended December 31, 2023 and 2022.
For valuation purposes, the significant majority of Main Street’s Private Loan portfolio investments are non-control investments. For Private Loan portfolio investments for which it has determined that third-party quotes or other independent pricing are not available or appropriate, Main Street generally estimates the fair value based on the
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Notes to the Consolidated Financial Statements (Continued)
assumptions that it believes hypothetical market participants would use to value such Private Loan debt investments in a current hypothetical sale using the Yield-to-Maturity valuation method and such Private Loan equity investments in a current hypothetical sale using the Waterfall valuation method.
In addition to its internal valuation process, in arriving at estimates of fair value for its investments in its Private Loan portfolio companies, Main Street, among other things, consults with the Financial Advisory Firm. The Financial Advisory Firm analyzes and provides observations and recommendations and an assurance certification regarding Main Street’s determinations of the fair value of its Private Loan portfolio company investments. The Financial Advisory Firm is generally consulted relative to Main Street’s investments in each Private Loan portfolio company at least once every calendar year, and for Main Street’s investments in new Private Loan portfolio companies, at least once in the twelve-month period subsequent to the initial investment. In certain instances, Main Street may determine that it is not cost-effective, and as a result is not in its stockholders’ best interest, to consult with the Financial Advisory Firm on its investments in one or more Private Loan portfolio companies. Such instances include, but are not limited to, situations where the fair value of Main Street’s investment in a Private Loan portfolio company is determined to be insignificant relative to the total Investment Portfolio. Main Street consulted with and received an assurance certification from the Financial Advisory Firm in arriving at its determination of fair value for its investments in a total of 59 Private Loan portfolio companies during each of the years ended December 31, 2023 and 2022, representing 82% and 76% of the total Private Loan portfolio at fair value as of December 31, 2023 and 2022, respectively. Excluding its investments in Private Loan portfolio companies that, as of December 31, 2023 and 2022, as applicable, had not been in the Investment Portfolio for at least twelve months subsequent to the initial investment and its investments in Private Loan portfolio companies that were not reviewed because the investment is valued based upon third-party quotes or other independent pricing, 94% and 97% of the Private Loan portfolio at fair value was reviewed and certified by the Financial Advisory Firm for the years ended December 31, 2023 and 2022, respectively.
For valuation purposes, all of Main Street’s Middle Market portfolio investments are either non-control or affiliate investments. To the extent sufficient observable inputs are available to determine fair value, Main Street uses observable inputs to determine the fair value of these investments through obtaining third-party quotes or other independent pricing. For Middle Market portfolio investments for which it has determined that third-party quotes or other independent pricing are not available or appropriate, Main Street generally estimates the fair value based on the assumptions that it believes hypothetical market participants would use to value such Middle Market debt investments in a current hypothetical sale using the Yield-to-Maturity valuation method and such Middle Market equity investments in a current hypothetical sale using the Waterfall valuation method. Main Street generally consults on a limited basis with the Financial Advisory Firm in connection with determining the fair value of its Middle Market portfolio investments due to the nature of these investments. The vast majority (98% and 89% as of December 31, 2023 and 2022, respectively) of the Middle Market portfolio investments (i) are valued using third-party quotes or other independent pricing services or (ii) Main Street has consulted with and received an assurance certification from the Financial Advisory Firm within the last twelve months.
For valuation purposes, all of Main Street’s short-term portfolio investments are non-control investments. To the extent sufficient observable inputs are available to determine fair value, Main Street uses observable inputs to determine the fair value of these investments through obtaining third-party quotes or other independent pricing. Because all of the short-term portfolio investments are typically valued using third-party quotes or other independent pricing services, Main Street generally does not consult with any financial advisory services firms in connection with determining the fair value of its short-term portfolio investments.
For valuation purposes, the majority of Main Street’s Other Portfolio investments are non-control or affiliate investments. Main Street’s Other Portfolio investments comprised 3.3% and 2.8% of Main Street’s Investment Portfolio at fair value as of December 31, 2023 and 2022, respectively. Similar to the LMM investment portfolio, market quotations for Other Portfolio equity investments are generally not readily available. For its Other Portfolio equity investments, Main Street generally determines the fair value of these investments using the NAV valuation method.
For valuation purposes, Main Street’s investment in the External Investment Manager is a control investment. Market quotations are not readily available for this investment, and as a result, Main Street determines the fair value of the External Investment Manager using the Waterfall valuation method under the market approach. In estimating the enterprise value, Main Street analyzes various factors, including the entity’s historical and projected financial results, as well as its size, marketability and performance relative to the population of market comparables, and the valuations for comparable publicly traded companies and private transactions involving comparable companies. This valuation approach estimates the
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value of the investment as if Main Street were to sell, or exit, the investment. In addition, Main Street considers its ability to control the capital structure of the company, as well as the timing of a potential exit, in connection with determining the fair value of the External Investment Manager. Main Street consults with and receives an assurance certification from the Financial Advisory Firm in arriving at its determination of fair value for its investment in the External Investment Adviser on a quarterly basis, including as of December 31, 2023 and 2022.
Due to the inherent uncertainty in the valuation process, Main Street’s determination of fair value for its Investment Portfolio may differ materially from the values that would have been determined had a ready market for the securities existed. In addition, changes in the market environment, portfolio company performance and other events that may occur over the lives of the investments may cause the gains or losses ultimately realized on these investments to be materially different than the valuations currently assigned. Main Street determines the fair value of each individual investment and records changes in fair value as unrealized appreciation or depreciation.
Main Street uses an internally developed portfolio investment rating system in connection with its investment oversight, portfolio management and analysis and investment valuation procedures for its LMM, Private Loan and Middle Market portfolio companies. This system takes into account both quantitative and qualitative factors of each LMM, Private Loan and Middle Market portfolio company.
Rule 2a-5 under the 1940 Act permits a BDC’s board of directors to designate its executive officers or investment adviser as a valuation designee to determine the fair value for its investment portfolio, subject to the active oversight of the board. Main Street’s Board of Directors has approved policies and procedures pursuant to Rule 2a-5 (the “Valuation Procedures”) and has designated a group of its executive officers to serve as the Board of Directors’ valuation designee. Main Street believes its Investment Portfolio as of December 31, 2023 and 2022 approximates fair value as of those dates based on the markets in which it operates and other conditions in existence on those reporting dates.
2.Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the period. Actual results may differ from these estimates under different conditions or assumptions. Additionally, as explained in Note B.1. — Summary of Significant Accounting Policies — Valuation of the Investment Portfolio, the consolidated financial statements include investments in the Investment Portfolio whose values have been estimated by Main Street, pursuant to valuation policies and procedures approved and overseen by Main Street’s Board of Directors, in the absence of readily ascertainable market values. Because of the inherent uncertainty of the Investment Portfolio valuations, those estimated values may differ materially from the values that would have been determined had a ready market for the securities existed.
Macroeconomic factors, including pandemics, risk of recession, inflation, supply chain constraints or disruptions, geopolitical disruptions and rising market index interest rates, and the related effect on the U.S. and global economies, have impacted, and may continue to impact, the businesses and operating results of certain of Main Street’s portfolio companies. As a result of these and other current effects of macroeconomic factors, as well as the uncertainty regarding the extent and duration of their impact, the valuation of Main Street’s Investment Portfolio has and may continue to experience increased volatility.
3.Cash and Cash Equivalents
Cash and cash equivalents consist of cash and highly liquid investments with an original maturity of three months or less at the date of purchase. Cash and cash equivalents are carried at cost, which approximates fair value. At December 31, 2023, the Company had $15.2 million of cash equivalents invested in AAA-rated money market funds. These highly liquid, short-term investments are included in the Consolidated Schedule of Investments.
At December 31, 2023 and 2022, cash balances totaling $40.1 million and $46.3 million, respectively, exceeded Federal Deposit Insurance Corporation insurance protection levels, subjecting the Company to risk related to the uninsured balance.
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Notes to the Consolidated Financial Statements (Continued)
4.Interest, Dividend and Fee Income
Main Street records interest and dividend income on the accrual basis to the extent amounts are expected to be collected. Dividend income is recorded when dividends are declared by the portfolio company or at such other time that an obligation exists for the portfolio company to make a distribution. Main Street evaluates accrued interest and dividend income periodically for collectability. When a loan or debt security becomes 90 days or more past due, and if Main Street otherwise does not expect the debtor to be able to service its debt obligation, Main Street will generally place the loan or debt security on non-accrual status and cease recognizing interest income on that loan or debt security until the borrower has demonstrated the ability and intent to pay contractual amounts due. If a loan or debt security’s status significantly improves regarding the debtor’s ability to service the debt obligation, or if a loan or debt security is sold or written off, Main Street removes it from non-accrual status.
As of December 31, 2023, investments on non-accrual status comprised 0.6% of Main Street’s total Investment Portfolio at fair value and 2.3% at cost. As of December 31, 2022, investments on non-accrual status comprised 0.6% of Main Street’s total Investment Portfolio at fair value and 3.7% at cost.
Main Street holds certain debt and preferred equity instruments in its Investment Portfolio that contain payment-in-kind (“PIK”) interest and cumulative dividend provisions. The PIK interest, computed at the contractual rate specified in each debt agreement, is periodically added to the principal balance of the debt and is recorded as interest income. Thus, the actual collection of this interest may be deferred until the time of debt principal repayment. Cumulative dividends are recorded as dividend income, and any dividends in arrears are added to the balance of the preferred equity investment. The actual collection of these dividends in arrears may be deferred until such time as the preferred equity is redeemed or sold. To maintain RIC tax treatment (as discussed in Note B.10. — Summary of Significant Accounting Policies—Income Taxes below), these non-cash sources of income may need to be paid out to stockholders in the form of distributions, even though Main Street may not have collected the PIK interest and cumulative dividends in cash. Main Street stops accruing PIK interest and cumulative dividends and writes off any accrued and uncollected interest and dividends in arrears when it determines that such PIK interest and dividends in arrears are no longer collectible. For the years ended December 31, 2023, 2022 and 2021 (i) 2.2%, 1.4% and 2.6%, respectively, of Main Street’s total investment income was attributable to PIK interest income not paid currently in cash and (ii) 0.3%, 0.5% and 0.6%, respectively, of Main Street’s total investment income was attributable to cumulative dividend income not paid currently in cash.
Main Street may periodically provide services, including structuring and advisory services, to its portfolio companies or other third parties. For services that are separately identifiable and evidence exists to substantiate fair value, fee income is recognized as earned, which is generally when the investment or other applicable transaction closes. Fees received in connection with debt financing transactions for services that do not meet these criteria are treated as debt origination fees and are generally deferred and accreted into income over the life of the financing.
A presentation of total investment income Main Street received from its Investment Portfolio in each of the periods presented is as follows:
Year Ended December 31,
202320222021
(dollars in thousands)
Interest, fee and dividend income:
Interest income$390,737 $284,746 $193,667 
Dividend income94,796 76,375 81,153 
Fee income14,852 15,739 14,227 
Total interest, fee and dividend income$500,385 $376,860 $289,047 
5.Deferred Financing Costs
Deferred financing costs include commitment fees and other direct costs related to Main Street’s multi-year revolving credit facility (the “Corporate Facility”) and special purpose vehicle revolving credit facility (the “SPV Facility”
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Notes to the Consolidated Financial Statements (Continued)
and, together with the Corporate Facility, the “Credit Facilities”) and its unsecured notes, as well as the commitment fees and leverage fees (3.4% of the total commitment and draw amounts, as applicable) on the SBIC debentures. See further discussion of Main Street’s debt in Note E — Debt. Deferred financing costs in connection with the Credit Facilities are capitalized as an asset. Deferred financing costs in connection with all other debt arrangements are a direct deduction from the principal amount outstanding.
6.Equity Offering Costs
The Company’s offering costs are charged against the proceeds from equity offerings when the proceeds are received.
7.Unearned Income—Debt Origination Fees and Original Issue Discount and Discounts / Premiums to Par Value
Main Street capitalizes debt origination fees received in connection with financings and reflects such fees as unearned income netted against the applicable debt investments. The unearned income from the fees is accreted into income over the life of the financing.
In connection with its portfolio debt investments, Main Street sometimes receives nominal cost warrants or warrants with an exercise price below the fair value of the underlying equity (together, “nominal cost equity”) that are valued as part of the negotiation process with the particular portfolio company. When Main Street receives nominal cost equity, it allocates its cost basis in its investment between its debt security and its nominal cost equity at the time of origination based on amounts negotiated with the particular portfolio company. The allocated amounts are based upon the fair value of the nominal cost equity, which is then used to determine the allocation of cost to the debt security. Any discount recorded on a debt investment resulting from this allocation is reflected as unearned income, which is netted against the applicable debt investment, and accreted into interest income over the life of the debt investment. The actual collection of this interest is deferred until the time of debt principal repayment.
Main Street may also purchase debt securities at a discount or at a premium to the par value of the debt security. In the case of a purchase at a discount, Main Street records the investment at the par value of the debt security net of the discount, and the discount is accreted into interest income over the life of the debt investment. In the case of a purchase at a premium, Main Street records the investment at the par value of the debt security plus the premium, and the premium is amortized as a reduction to interest income over the life of the debt investment.
To maintain RIC tax treatment (as discussed in Note B.10. — Summary of Significant Accounting Policies — Income Taxes below), these non-cash sources of income may need to be paid out to stockholders in the form of distributions, even though Main Street may not have collected the interest income. For the years ended December 31, 2023, 2022 and 2021, 1.8%, 1.8% and 2.0%, respectively, of Main Street’s total investment income was attributable to interest income from the accretion of discounts associated with debt investments, net of any premium amortization.
8.Share-Based Compensation
Main Street accounts for its share-based compensation plans using the fair value method, as prescribed by ASC 718, Compensation — Stock Compensation. Accordingly, for restricted stock awards, Main Street measures the grant date fair value based upon the market price of its common stock on the date of the grant and amortizes the fair value of the awards as share-based compensation expense over the requisite service period, which is generally the vesting term.
Main Street recognizes all excess tax benefits and tax deficiencies (including tax benefits of dividends on share-based payment awards) as income tax expense or benefit in the income statement and does not delay recognition of a tax benefit until the tax benefit is realized through a reduction to taxes payable. As such, the tax effects of exercised or vested awards are treated as discrete items in the reporting period in which they occur. Additionally, Main Street has elected to account for forfeitures as they occur.
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Notes to the Consolidated Financial Statements (Continued)
9.     Deferred Compensation Plan
The Main Street Capital Corporation Deferred Compensation Plan (the “Deferred Compensation Plan”) allows directors and certain employees to defer receipt of some or all of their cash compensation or directors’ fees in accordance with plan terms. Deferred Compensation Plan participants elect one or more investment options, including phantom Main Street stock units, interests in affiliated funds and various mutual funds, where their deferred amounts are notionally invested, and Main Street invests the deferred amounts through a trust (except for phantom Main Street stock units), pending distribution.
Compensation deferred under the Deferred Compensation Plan is recognized on the same basis as such compensation would have been recognized if not deferred. The appreciation (depreciation) in the fair value of deferred compensation plan assets is reflected in Main Street's Consolidated Statements of Operations as unrealized appreciation (depreciation), with the recognition of a corresponding and offsetting deferred compensation expense or (benefit), respectively. Deferred compensation expense or (benefit) does not result in a net cash impact to Main Street upon settlement. Investments in the trust are recognized on the Consolidated Balance Sheets as an asset of Main Street (other assets) and as a deferred compensation liability (other liabilities).
Phantom Main Street stock units under the Deferred Compensation Plan are not issued shares of Main Street common stock and are not included as outstanding on the Consolidated Statements of Changes in Net Assets until such shares are actually distributed to the participant, but the related phantom stock units are included in weighted-average shares outstanding with the related dollar amount of the deferral included in total expenses in Main Street’s Consolidated Statements of Operations as the deferred fees represented by such phantom stock units are earned over the service period. Additional phantom stock units from dividends on phantom stock units are included in the Consolidated Statements of Changes in Net Assets as an increase to dividends to stockholders offset by a corresponding increase to additional paid-in capital.
10.     Income Taxes
MSCC has elected to be treated for U.S. federal income tax purposes as a RIC. MSCC’s taxable income includes the taxable income generated by MSCC and certain of its subsidiaries, including the Funds and Structured Subsidiaries, which are treated as disregarded entities for tax purposes. As a RIC, MSCC generally will not pay corporate-level U.S. federal income taxes on any net ordinary taxable income or capital gains that MSCC distributes to its stockholders. MSCC must generally distribute at least 90% of its “investment company taxable income” (which is generally its net ordinary taxable income and realized net short-term capital gains in excess of realized net long-term capital losses) and 90% of its tax-exempt income to maintain its RIC status (pass-through tax treatment for amounts distributed). As part of maintaining RIC status, undistributed taxable income (subject to a 4% non-deductible U.S. federal excise tax) pertaining to a given fiscal year may be distributed up to twelve months subsequent to the end of that fiscal year, provided such dividends are declared on or prior to the later of (i) the filing of the U.S. federal income tax return for the applicable fiscal year or (ii) the fifteenth day of the ninth month following the close of the year in which such taxable income was generated.
The Taxable Subsidiaries primarily hold certain equity investments for Main Street. The Taxable Subsidiaries permit Main Street to hold equity investments in portfolio companies which are “pass-through” entities for tax purposes and to continue to comply with the “source-of-income” requirements contained in the RIC tax provisions of the Code. The Taxable Subsidiaries are consolidated with Main Street for U.S. GAAP financial reporting purposes, and the portfolio investments held by the Taxable Subsidiaries are included in Main Street’s consolidated financial statements as portfolio investments and recorded at fair value. The Taxable Subsidiaries are not consolidated with MSCC for income tax purposes and may generate income tax expense, or benefit, and tax assets and liabilities, as a result of their ownership of certain portfolio investments. The taxable income, or loss, of the Taxable Subsidiaries may differ from their book income, or loss, due to temporary book and tax timing differences and permanent differences. The Taxable Subsidiaries are each taxed at corporate income tax rates based on their taxable income. The income tax expense, or benefit, if any, and the related tax assets and liabilities, of the Taxable Subsidiaries are reflected in Main Street’s consolidated financial statements.
The External Investment Manager is an indirect wholly-owned subsidiary of MSCC owned through a Taxable Subsidiary and is a disregarded entity for tax purposes. The External Investment Manager has entered into a tax sharing agreement with its Taxable Subsidiary owner. Since the External Investment Manager is accounted for as a portfolio
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investment of MSCC and is not included as a consolidated subsidiary of MSCC in MSCC’s consolidated financial statements, and as a result of the tax sharing agreement with its Taxable Subsidiary owner, for its stand-alone financial reporting purposes the External Investment Manager is treated as if it is taxed at corporate income tax rates based on its taxable income and, as a result of its activities, may generate income tax expense or benefit. The income tax expense, or benefit, if any, and the related tax assets and liabilities, of the External Investment Manager are reflected in the External Investment Manager’s separate financial statements.
The Taxable Subsidiaries and the External Investment Manager use the liability method in accounting for income taxes. Deferred tax assets and liabilities are recorded for temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements, using statutory tax rates in effect for the year in which the temporary differences are expected to reverse. A valuation allowance is provided, if necessary, against deferred tax assets when it is more likely than not that some portion or all of the deferred tax asset will not be realized. Main Street’s net assets as included on the Consolidated Balance Sheets and Consolidated Statements of Changes in Net Assets include an adjustment to classification as a result of permanent book-to-tax differences, which include differences in the book and tax treatment of income and expenses.
Taxable income generally differs from net income for financial reporting purposes due to temporary and permanent differences in the recognition of income and expenses. Taxable income generally excludes net unrealized appreciation or depreciation, as investment gains or losses are not included in taxable income until they are realized.
11.     Net Realized Gains or Losses and Net Unrealized Appreciation or Depreciation
Realized gains or losses are measured by the difference between the net proceeds from the sale or redemption of an investment or a financial instrument and the cost basis of the investment or financial instrument, without regard to unrealized appreciation or depreciation previously recognized, and includes investments written-off during the period net of recoveries and realized gains or losses from in-kind redemptions. Net unrealized appreciation or depreciation reflects the net change in the fair value of the Investment Portfolio and financial instruments and the reclassification of any prior period unrealized appreciation or depreciation on exited investments and financial instruments to realized gains or losses.
12.     Fair Value of Financial Instruments
Fair value estimates are made at discrete points in time based on relevant information. These estimates may be subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Main Street believes that the carrying amounts of its financial instruments, consisting of cash and cash equivalents, receivables, payables and other liabilities approximate the fair values of such items due to the short-term nature of these instruments.
To estimate the fair value of Main Street’s multiple tranches of unsecured debt instruments as disclosed in Note E — Debt, Main Street uses quoted market prices. For the estimated fair value of Main Street’s SBIC debentures, Main Street uses the Yield-to-Maturity valuation method based on projections of the discounted future free cash flows that the debt security will likely generate, including both the discounted cash flows of the associated interest and principal amounts for the debt security. The inputs used to value Main Street’s debt instruments are considered to be level 2 according to the ASC 820 fair value hierarchy.
13.     Earnings per Share
Basic and diluted per share calculations are computed utilizing the weighted-average number of shares of common stock outstanding for the period. In accordance with ASC 260, Earnings Per Share, the unvested shares of restricted stock awarded pursuant to Main Street’s equity compensation plans are participating securities and, therefore, are included in the basic earnings per share calculation. As a result, for all periods presented, there is no difference between diluted earnings per share and basic earnings per share amounts.
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Notes to the Consolidated Financial Statements (Continued)
14.     Recently Issued or Adopted Accounting Standards
In March 2020, the FASB issued ASU 2020-04, Reference rate reform (Topic 848) — Facilitation of the effects of reference rate reform on financial reporting. The amendments in this update provide optional expedients and exceptions for applying U.S. GAAP to certain contracts and hedging relationships that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform and became effective upon issuance for all entities. The Company has agreements that have LIBOR as a reference rate with certain portfolio companies and also with certain lenders. Many of these agreements include language for choosing an alternative successor rate if LIBOR reference is no longer considered to be appropriate. Contract modifications are required to be evaluated in determining whether the modifications result in the establishment of new contracts or the continuation of existing contracts. The Company adopted this amendment in March 2020 and plans to apply the amendments in this update to account for contract modifications due to changes in reference rates when LIBOR reference is no longer used.
In November 2022, the FASB issued ASU 2022-06, Reference rate reform (Topic 848) — Deferral of the Sunset Date of Topic 848, which deferred the sunset date of Topic 848 from December 31, 2022 to December 31, 2024 after which entities will no longer be permitted to apply the relief in Topic 848. The Company utilized the optional expedients and exceptions provided by ASU 2020-04 and extended by ASU 2022-06 during the years ended December 31, 2023 and 2022, the effect of which was not material to the consolidated financial statements and the notes thereto. The Company will continue to utilize the optional expedients provided by ASU 2020-04 and extended by ASU 2022-06 through December 31, 2024. The Company does not expect ASU 2022-06 to have a material impact to the consolidated financial statements and the notes thereto.
In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. The amendments in this update provide that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments in this update also require additional disclosures for equity securities subject to contractual sales restrictions. ASU 2022-03 is effective for years beginning after December 15, 2023, though early adoption is permitted. The Company elected to early adopt ASU 2022-03 as of December 31, 2022 and it did not have a material impact on the consolidated financial statements and the notes thereto.

In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures. The amendments in this update require more disaggregated information on income taxes paid. ASU 2023-09 is effective for years beginning after December 15, 2024. Early adoption is permitted, however the Company has not elected to adopt this provision as of the date of the financial statements contained in this report. The Company is still assessing the impact of the new guidance. However, it does not expect ASU 2023-09 to have a material impact on the consolidated financial statements and the notes thereto.
From time to time, new accounting pronouncements are issued by the FASB or other standards-setting bodies that are adopted by the Company as of the specified effective date. The Company believes that the impact of recently issued standards and any that are not yet effective will not have a material impact on its consolidated financial statements upon adoption.
NOTE C — FAIR VALUE HIERARCHY FOR INVESTMENTS — PORTFOLIO COMPOSITION
ASC 820 defines fair value, establishes a framework for measuring fair value, establishes a fair value hierarchy based on the quality of inputs used to measure fair value, and enhances disclosure requirements for fair value measurements. Main Street accounts for its investments at fair value.
Fair Value Hierarchy
In accordance with ASC 820, Main Street has categorized its investments based on the priority of the inputs to the valuation technique into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical investments (Level 1) and the lowest priority to unobservable inputs (Level 3).
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Notes to the Consolidated Financial Statements (Continued)
Investments recorded on Main Street’s Consolidated Balance Sheets are categorized based on the inputs to the valuation techniques as follows:
Level 1—Investments whose values are based on unadjusted quoted prices for identical assets in an active market that Main Street has the ability to access (examples include investments in active exchange-traded equity securities and investments in most U.S. government and agency securities).
Level 2—Investments whose values are based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly for substantially the full term of the investment. Level 2 inputs include the following:
•Quoted prices for similar assets in active markets (for example, investments in restricted stock);
•Quoted prices for identical or similar assets in non-active markets (for example, investments in thinly traded public companies);
•Pricing models whose inputs are observable for substantially the full term of the investment (for example, market interest rate indices); and
•Pricing models whose inputs are derived principally from, or corroborated by, observable market data through correlation or other means for substantially the full term of the investment.
Level 3—Investments whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement (for example, investments in illiquid securities issued by privately held companies). These inputs reflect management’s own assumptions about the assumptions a market participant would use in pricing the investment.
As required by ASC 820, when the inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement in its entirety. For example, a Level 3 fair value measurement may include inputs that are observable (Levels 1 and 2) and unobservable (Level 3). Therefore, unrealized appreciation and depreciation related to such investments categorized within the Level 3 tables below may include changes in fair value that are attributable to both observable inputs (Levels 1 and 2) and unobservable inputs (Level 3).
As of December 31, 2023 and 2022, all of Main Street’s LMM portfolio investments consisted of illiquid securities issued by privately held companies and the fair value determination for these investments primarily consisted of unobservable inputs. As a result, all of Main Street’s LMM portfolio investments were categorized as Level 3 as of December 31, 2023 and 2022.
As of December 31, 2023 and 2022, Main Street’s Private Loan portfolio investments primarily consisted of investments in secured debt investments. The fair value determination for these investments consisted of a combination of observable inputs in non-active markets for which sufficient observable inputs were not available to determine the fair value of these investments and unobservable inputs. As a result, all of Main Street’s Private Loan portfolio investments were categorized as Level 3 as of December 31, 2023 and 2022.
As of December 31, 2023 and 2022, Main Street’s Middle Market portfolio investments consisted primarily of investments in secured and unsecured debt investments and independently rated debt investments. The fair value determination for these investments consisted of a combination of observable inputs in non-active markets for which sufficient observable inputs were not available to determine the fair value of these investments and unobservable inputs. As a result, all of Main Street’s Middle Market portfolio investments were categorized as Level 3 as of December 31, 2023 and 2022.
As of December 31, 2023 and 2022, Main Street’s Other Portfolio investments consisted of illiquid securities issued by privately held entities and the fair value determination for these investments primarily consisted of unobservable
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Notes to the Consolidated Financial Statements (Continued)
inputs. As a result, all of Main Street’s Other Portfolio investments were categorized as Level 3 as of December 31, 2023 and 2022.
As of December 31, 2023, Main Street held no short-term portfolio investments. As of December 31, 2022, Main Street held one short-term portfolio investment, which was a secured debt investment. The fair value determination for this investment consisted of available observable inputs in non-active markets sufficient to determine the fair value of the investment. As a result, Main Street’s short-term portfolio investment was categorized as Level 2 as of December 31, 2022.
As of December 31, 2023, all money market funds included in cash and cash equivalents were valued using Level 1 inputs.
The fair value determination of each portfolio investment categorized as Level 3 required one or more of the following unobservable inputs:
•Financial information obtained from each portfolio company, including unaudited statements of operations and balance sheets for the most recent period available as compared to budgeted numbers;
•Current and projected financial condition of the portfolio company;
•Current and projected ability of the portfolio company to service its debt obligations;
•Type and amount of collateral, if any, underlying the investment;
•Current financial ratios (e.g., fixed charge coverage ratio, interest coverage ratio and net debt/EBITDA ratio) applicable to the investment;
•Current liquidity of the investment and related financial ratios (e.g., current ratio and quick ratio);
•Pending debt or capital restructuring of the portfolio company;
•Projected operating results of the portfolio company;
•Current information regarding any offers to purchase the investment;
•Current ability of the portfolio company to raise any additional financing as needed;
•Changes in the economic environment which may have a material impact on the operating results of the portfolio company;
•Internal occurrences that may have an impact (both positive and negative) on the operating performance of the portfolio company;
•Qualitative assessment of key management;
•Contractual rights, obligations or restrictions associated with the investment; and
•Other factors deemed relevant.
The use of significant unobservable inputs creates uncertainty in the measurement of fair value as of the reporting date. The significant unobservable inputs used in the fair value measurement of Main Street’s LMM equity securities, which are generally valued through an average of the discounted cash flow technique and the market comparable/enterprise value technique (unless one of these approaches is determined to not be appropriate), are (i) EBITDA multiples and (ii) the weighted-average cost of capital (“WACC”). Significant increases (decreases) in EBITDA multiple inputs in isolation would result in a significantly higher (lower) fair value measurement. On the contrary, significant increases (decreases) in WACC inputs in isolation would result in a significantly lower (higher) fair value measurement. The significant
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Notes to the Consolidated Financial Statements (Continued)
unobservable inputs used in the fair value measurement of Main Street’s LMM, Private Loan and Middle Market securities are (i) risk adjusted discount rates used in the Yield-to-Maturity valuation technique (see Note B.1. — Summary of Significant Accounting Policies — Valuation of the Investment Portfolio) and (ii) the percentage of expected principal recovery. Significant increases (decreases) in any of these discount rates in isolation would result in a significantly lower (higher) fair value measurement. Significant increases (decreases) in any of these expected principal recovery percentages in isolation would result in a significantly higher (lower) fair value measurement. However, due to the nature of certain investments, fair value measurements may be based on other criteria, such as third-party appraisals of collateral and fair values as determined by independent third parties, which are not presented in the tables below.
The following tables provide a summary of the significant unobservable inputs used to fair value Main Street’s Level 3 portfolio investments as of December 31, 2023 and 2022:
Type of
Investment
Fair Value as of December 31, 2023 (in thousands)
Valuation TechniqueSignificant Unobservable InputsRange (4)Weighted Average (4)Median (4)
Equity investments$1,402,354 Discounted cash flowWACC
9.7% - 22.7%
14.5 %15.5 %
Market comparable / Enterprise valueEBITDA multiple (1) (3)
4.8x - 8.9x (2)
7.1x6.4x
Debt investments$2,720,425 Discounted cash flowRisk adjusted discount factor (5)
9.8% - 18.0% (2)
12.9 %13.0 %
Expected principal recovery percentage
0.0% - 100.0%
99.7 %100.0 %
Debt investments$163,492 Market approachThird-party quote
3.0 - 100.0
89.892.4
Total Level 3 investments$4,286,271 
______________________
(1)EBITDA may include proforma adjustments and/or other addbacks based on specific circumstances related to each investment.
(2)Range excludes outliers that are greater than one standard deviation from the mean. Including these outliers, the range for EBITDA multiple is 2.0x - 15.7x and the range for risk adjusted discount factor is 7.0% - 31.6%.
(3)The fair value of the equity investment in the External Investment Manager is based on a fee multiple of 7.2x. The fair value determination is based on a discounted, blended multiple based on the multiples for similar businesses in active markets and actual multiples used in private transactions.
(4)Does not include investments for which the valuation technique does not include the use of the applicable fair value input.
(5)Discount rate includes the effect of the standard SOFR base rate, as applicable.
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Type of Investment
Fair Value as of December 31, 2022 (in thousands)
Valuation TechniqueSignificant Unobservable InputsRange (4)Weighted Average (4)Median (4)
Equity investments$1,172,077 Discounted cash flowWACC
9.4% - 22.5%
14.5 %15.4 %
Market comparable / Enterprise valueEBITDA multiple (1) (3)
4.3x - 8.3x (2)
6.7x6.0x
Debt investments$2,663,958 Discounted cash flowRisk adjusted discount factor (5)
8.5% - 18.8%(2)
12.2 %12.4 %
Expected principal recovery percentage
0.0% - 100.0%
99.4 %100.0 %
Debt investments$264,238 Market approachThird-party quote
5.6 - 98.5
87.091.4
Total Level 3 investments$4,100,273 
______________________
(1)EBITDA may include proforma adjustments and/or other addbacks based on specific circumstances related to each investment.
(2)Range excludes outliers that are greater than one standard deviation from the mean. Including these outliers, the range for EBITDA multiple is 2.0x - 15.7x and the range for risk adjusted discount factor is 6.5% - 43.3%.
(3)The fair value of the equity investment in the External Investment Manager is based on a fee multiple of 6.1x. The fair value determination is based on a discounted, blended multiple based on the multiples for similar businesses in active markets and actual multiples used in private transactions.
(4)Does not include investments for which the valuation technique does not include the use of the applicable fair value input.
(5)Discount rate includes the effect of the standard LIBOR and SOFR base rate, as applicable.
The following tables provide a summary of changes in fair value of Main Street’s Level 3 portfolio investments for the years ended December 31, 2023 and 2022 (amounts in thousands):
Type of Investment
Fair Value as of December 31, 2022
Transfers Into Level 3 HierarchyRedemptions/ RepaymentsNew InvestmentsNet Changes from Unrealized to RealizedNet Unrealized Appreciation (Depreciation)Other(1)
Fair Value as of December 31, 2023
Debt$2,928,196 $— $(891,359)$800,838 $114,759 $(24,629)$(43,888)$2,883,917 
Equity1,166,643 — (46,829)89,950 3,028 136,570 46,382 1,395,744 
Equity Warrant5,434 — (425)2,091 425 1,661 (2,576)6,610 
$4,100,273 $— $(938,613)$892,879 $118,212 $113,602 $(82)$4,286,271 
______________________
(1)Includes the impact of non-cash conversions. These transactions represent non-cash investing activities. See additional cash flow information in the Consolidated Statements of Cash Flows.
Type of Investment
Fair Value as of December 31, 2021
Transfers Into Level 3 HierarchyRedemptions/ RepaymentsNew InvestmentsNet Changes from Unrealized to RealizedNet Unrealized Appreciation (Depreciation)Other(1)
Fair Value as of December 31, 2022
Debt$2,509,568 $— $(590,740)$1,085,808 $19,674 $(89,178)$(6,936)$2,928,196 
Equity1,043,709 — (55,197)74,274 (12,234)109,154 6,936 1,166,643 
Equity Warrant6,560 — (655)1,036 (1,834)327 — 5,434 
$3,559,837 $— $(646,592)$1,161,118 $5,606 $20,303 $— $4,100,273 
______________________
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(1)Includes the impact of non-cash conversions. These transactions represent non-cash investing activities. See additional cash flow information in the Consolidated Statements of Cash Flows.
At December 31, 2023 and 2022, Main Street’s investments at fair value were categorized as follows in the fair value hierarchy for ASC 820 purposes:
Fair Value Measurements
(in thousands)
At December 31, 2023
Fair ValueQuoted Prices in
Active Markets for
Identical Assets
(Level 1)		Significant Other
Observable Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
LMM portfolio investments$2,273,000 $— $— $2,273,000 
Private Loan portfolio investments1,453,549 — — 1,453,549 
Middle Market portfolio investments243,695 — — 243,695 
Other Portfolio investments141,964 — — 141,964 
External Investment Manager174,063 — — 174,063 
Total investments$4,286,271 $— $— $4,286,271 
Fair Value Measurements
(in thousands)
At December 31, 2022
Fair ValueQuoted Prices in
Active Markets for
Identical Assets
(Level 1)		Significant Other
Observable Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
LMM portfolio investments$2,060,459 $— $— $2,060,459 
Private Loan portfolio investments1,471,466 — — 1,471,466 
Middle Market portfolio investments329,119 — — 329,119 
Other Portfolio investments116,299 — — 116,299 
External Investment Manager122,930 — — 122,930 
Short-term portfolio investments1,904 — 1,904 — 
Total investments$4,102,177 $— $1,904 $4,100,273 
Investment Portfolio Composition
Main Street’s principal investment objective is to maximize its portfolio’s total return by generating current income from its debt investments and current income and capital appreciation from its equity and equity-related investments, including warrants, convertible securities and other rights to acquire equity securities in a portfolio company. Main Street seeks to achieve its investment objective through its LMM, Private Loan and Middle Market investment strategies.
Main Street’s LMM investment strategy is focused on investments in secured debt, equity warrants and direct equity investments in privately held, LMM companies based in the United States. Main Street’s LMM portfolio companies generally have annual revenues between $10 million and $150 million, and its LMM investments generally range in size from $5 million to $100 million. The LMM debt investments are typically secured by a first priority lien on the assets of the portfolio company, can include either fixed or floating rate terms and generally have a term of between five and seven years from the original investment date. In most LMM portfolio investments, Main Street receives nominally priced equity warrants and/or makes direct equity investments in connection with a debt investment.
Main Street’s private loan (“Private Loan”) investment strategy is focused on investments in privately held companies that are generally consistent with the size of its LMM portfolio companies or Middle Market portfolio companies, and its Private Loan investments generally range in size from $10 million to $75 million. Main Street’s Private Loan investments primarily consist of debt securities that have primarily been originated directly by Main Street or, to a
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lesser extent, through its strategic relationships with other investment funds on a collaborative basis through investments that are often referred to in the debt markets as “club deals” because of the small lender group size. In both cases, our Private Loan investments are typically made to support a company owned by or in the process of being acquired by a private equity sponsor. Main Street’s Private Loan portfolio debt investments are generally secured by a first priority lien on the assets of the portfolio company and typically have a term of between three and seven years from the original investment date. Main Street may have the option to co-invest with the sponsor in the equity securities of its Private Loan portfolio companies.
Main Street’s Middle Market investment strategy is focused on investments in syndicated loans to or debt securities in Middle Market companies, which Main Street defines as companies with annual revenues between $150 million and $1.5 billion, and its Middle Market investments generally range in size from $3 million to $25 million. Main Street’s Middle Market portfolio debt investments are generally secured by a first priority lien on the assets of the portfolio company and typically have an expected duration of between three and seven years from the original investment date.
Main Street’s other portfolio (“Other Portfolio”) investments primarily consist of investments that are not consistent with the typical profiles for its LMM, Private Loan or Middle Market portfolio investments, including investments which may be managed by third parties. In the Other Portfolio, Main Street may incur indirect fees and expenses in connection with investments managed by third parties, such as investments in other investment companies or private funds. For Other Portfolio investments, Main Street generally receives distributions related to the assets held by the portfolio company. Those assets are typically expected to be liquidated over a five to ten-year period.
Based upon Main Street’s liquidity and capital structure management activities, Main Street’s Investment Portfolio may also include short-term portfolio investments that are atypical of Main Street’s LMM, Private Loan and Middle Market portfolio investments in that they are intended to be a short-term deployment of capital. Those assets are typically expected to be liquidated in one year or less. These short-term portfolio investments are not expected to be a significant portion of the overall Investment Portfolio.
Main Street’s external asset management business is conducted through its External Investment Manager. The External Investment Manager earns management fees based on the assets under management for External Parties and may earn incentive fees, or a carried interest, based on the performance of the assets managed. Main Street entered into an agreement with the External Investment Manager to share employees in connection with its asset management business generally, and specifically for its relationship with MSC Income Fund, Inc. (“MSC Income”). Through this agreement, Main Street shares employees with the External Investment Manager, including their related infrastructure, business relationships, management expertise and capital raising capabilities. Main Street allocates the related expenses to the External Investment Manager pursuant to the sharing agreement. Main Street’s total expenses for the years ended December 31, 2023, 2022 and 2021 are net of expenses allocated to the External Investment Manager of $22.1 million, $13.0 million and $10.3 million, respectively.
Investment income, consisting of interest, dividends and fees, can fluctuate dramatically due to various factors, including the level of new investment activity, repayments of debt investments or sales of equity interests. Investment income in any given year could also be highly concentrated among several portfolio companies. For the years ended December 31, 2023, 2022 and 2021, Main Street did not record investment income from any single portfolio company in excess of 10% of total investment income.
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The following tables provide a summary of Main Street’s investments in the LMM, Private Loan and Middle Market portfolios as of December 31, 2023 and 2022 (this information excludes Other Portfolio investments, short-term portfolio investments and the External Investment Manager, which are discussed further below):
As of December 31, 2023
LMM (a)Private LoanMiddle Market
(dollars in millions)
Number of portfolio companies80 87 23 
Fair value$2,273.0 $1,453.5 $243.7 
Cost$1,782.9 $1,470.1 $294.4 
Debt investments as a % of portfolio (at cost)72.0 %94.7 %91.4 %
Equity investments as a % of portfolio (at cost)28.0 %5.3 %8.6 %
% of debt investments at cost secured by first priority lien 99.2 %100.0 %99.1 %
Weighted-average annual effective yield (b)13.0 %12.9 %12.5 %
Average EBITDA (c)$8.2 $27.2 $64.2 
______________________
(a)At December 31, 2023, Main Street had equity ownership in all of its LMM portfolio companies, and the average fully diluted equity ownership in those portfolio companies was 40%.
(b)The weighted-average annual effective yields were computed using the effective interest rates for all debt investments at cost as of December 31, 2023, including amortization of deferred debt origination fees and accretion of original issue discount but excluding fees payable upon repayment of the debt instruments and any debt investments on non-accrual status. The weighted-average annual effective yield on Main Street’s debt portfolio as of December 31, 2023 including debt investments on non-accrual status was 12.9% for its LMM portfolio, 12.5% for its Private Loan portfolio and 10.8% for its Middle Market portfolio. The weighted-average annual effective yield is not reflective of what an investor in shares of Main Street’s common stock will realize on its investment because it does not reflect changes in the market value of Main Street’s stock, Main Street’s utilization of debt capital in its capital structure, Main Street’s expenses or any sales load paid by an investor.
(c)The average EBITDA is calculated using a simple average for the LMM portfolio and a weighted-average for the Private Loan and Middle Market portfolios. These calculations exclude certain portfolio companies, including two LMM portfolio companies and two Private Loan portfolio companies, as EBITDA is not a meaningful valuation metric for Main Street’s investments in these portfolio companies, and those portfolio companies whose primary purpose is to own real estate.
As of December 31, 2022
LMM (a)Private LoanMiddle Market
(dollars in millions)
Number of portfolio companies78 85 31 
Fair value$2,060.5 $1,471.5 $329.1 
Cost$1,719.9 $1,500.3 $401.7 
Debt investments as a % of portfolio (at cost)73.7 %97.1 %93.8 %
Equity investments as a % of portfolio (at cost)26.3 %2.9 %6.2 %
% of debt investments at cost secured by first priority lien 99.1 %99.6 %98.8 %
Weighted-average annual effective yield (b)12.3 %11.6 %11.0 %
Average EBITDA (c)$8.0 $38.1 $68.7 
______________________
(a)At December 31, 2022, Main Street had equity ownership in all of its LMM portfolio companies, and the average fully diluted equity ownership in those portfolio companies was 41%.
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(b)The weighted-average annual effective yields were computed using the effective interest rates for all debt investments at cost as of December 31, 2022, including amortization of deferred debt origination fees and accretion of original issue discount but excluding fees payable upon repayment of the debt instruments and any debt investments on non-accrual status. The weighted-average annual effective yield on Main Street’s debt portfolio as of December 31, 2022 including debt investments on non-accrual status was 11.6% for its LMM portfolio, 11.2% for its Private Loan portfolio and 10.3% for its Middle Market portfolio. The weighted-average annual effective yield is not reflective of what an investor in shares of Main Street’s common stock will realize on its investment because it does not reflect changes in the market value of Main Street’s stock, Main Street’s utilization of debt capital in its capital structure, Main Street’s expenses or any sales load paid by an investor.
(c)The average EBITDA is calculated using a simple average for the LMM portfolio and a weighted-average for the Private Loan and Middle Market portfolios. These calculations exclude certain portfolio companies, including three LMM portfolio companies and two Private Loan portfolio companies, as EBITDA is not a meaningful valuation metric for Main Street’s investments in these portfolio companies, and those portfolio companies whose primary purpose is to own real estate.
For the years ended December 31, 2023 and 2022, Main Street achieved a total return on investments of 16.3% and 11.1%, respectively. Total return on investments is calculated using the interest, dividend and fee income, as well as the realized and unrealized change in fair value of the Investment Portfolio for the specified period. Main Street’s total return on investments is not reflective of what an investor in shares of Main Street’s common stock will realize on its investment because it does not reflect changes in the market value of Main Street’s stock, Main Street’s utilization of debt capital in its capital structure, Main Street’s expenses or any sales load paid by an investor.
As of December 31, 2023, Main Street had Other Portfolio investments in 15 entities, collectively totaling $142.0 million in fair value and $149.1 million in cost basis and which comprised 3.3% and 4.0% of Main Street’s Investment Portfolio at fair value and cost, respectively. As of December 31, 2022, Main Street had Other Portfolio investments in 14 entities, collectively totaling $116.3 million in fair value and $120.4 million in cost basis and which comprised 2.8% and 3.2% of Main Street’s Investment Portfolio at fair value and cost, respectively.
As discussed further in Note A.1. — Organization and Basis of Presentation — Organization, Main Street holds an investment in the External Investment Manager, a wholly-owned subsidiary that is treated as a portfolio investment. As of December 31, 2023, this investment had a fair value of $174.1 million and a cost basis of $29.5 million, which comprised 4.1% and 0.8% of Main Street’s Investment Portfolio at fair value and cost, respectively. As of December 31, 2022, this investment had a fair value of $122.9 million and a cost basis of $29.5 million, which comprised 3.0% and 0.8% of Main Street’s Investment Portfolio at fair value and cost, respectively.
The following tables summarize the composition of Main Street’s total combined LMM, Private Loan and Middle Market portfolio investments at cost and fair value by type of investment as a percentage of the total combined LMM, Private Loan and Middle Market portfolio investments, as of December 31, 2023 and 2022 (this information excludes Other Portfolio investments, short-term portfolio investments and the External Investment Manager, which are discussed above).
Cost:December 31, 2023December 31, 2022
First lien debt82.7 %85.0 %
Equity16.8 14.2 
Second lien debt0.1 0.3 
Equity warrants0.2 0.2 
Other0.2 0.3 
100.0 %100.0 %
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Fair Value:December 31, 2023December 31, 2022
First lien debt71.6 %75.2 %
Equity27.8 24.1 
Second lien debt0.2 0.3 
Equity warrants0.2 0.1 
Other0.2 0.3 
100.0 %100.0 %
The following tables summarize the composition of Main Street’s total combined LMM, Private Loan and Middle Market portfolio investments by geographic region of the United States and other countries at cost and fair value as a percentage of the total combined LMM, Private Loan and Middle Market portfolio investments, as of December 31, 2023 and 2022 (this information excludes Other Portfolio investments, short-term portfolio investments and the External Investment Manager). The geographic composition is determined by the location of the corporate headquarters of the portfolio company.
Cost:December 31, 2023December 31, 2022
West25.8 %28.5 %
Northeast22.3 19.0 
Southwest19.7 20.1 
Midwest17.0 16.3 
Southeast13.1 14.0 
Canada0.4 0.6 
Other Non-United States1.7 1.5 
100.0 %100.0 %
Fair Value:December 31, 2023December 31, 2022
West25.4 %28.7 %
Southwest22.0 21.4 
Northeast21.3 18.8 
Midwest18.1 16.6 
Southeast11.3 12.4 
Canada0.3 0.6 
Other Non-United States1.6 1.5 
100.0 %100.0 %
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Main Street’s LMM, Private Loan and Middle Market portfolio investments are in companies conducting business in a variety of industries. The following tables summarize the composition of Main Street’s total combined LMM, Private Loan and Middle Market portfolio investments by industry at cost and fair value as of December 31, 2023 and 2022 (this information excludes Other Portfolio investments, short-term portfolio investments and the External Investment Manager).
Cost:December 31, 2023December 31, 2022
Machinery7.7 %7.4 %
Internet Software & Services7.6 8.0 
Professional Services6.0 4.2 
Health Care Providers & Services5.4 4.7 
IT Services5.0 3.3 
Construction & Engineering4.9 5.8 
Diversified Consumer Services4.9 4.5 
Commercial Services & Supplies4.5 6.7 
Distributors4.3 5.1 
Containers & Packaging3.8 2.6 
Textiles, Apparel & Luxury Goods3.2 1.9 
Leisure Equipment & Products3.1 4.5 
Tobacco3.1 3.1 
Aerospace & Defense2.9 2.3 
Energy Equipment & Services2.7 3.7 
Computers & Peripherals2.7 2.2 
Media2.4 2.4 
Specialty Retail2.1 3.2 
Software2.0 1.9 
Building Products1.7 1.9 
Diversified Financial Services1.7 1.5 
Electrical Equipment1.6 1.0 
Auto Components1.6 1.7 
Food Products1.6 1.6 
Food & Staples Retailing1.6 1.2 
Electronic Equipment, Instruments & Components1.5 1.6 
Internet & Catalog Retail1.3 1.3 
Health Care Equipment & Supplies1.3 1.3 
Communications Equipment1.2 1.8 
Hotels, Restaurants & Leisure1.1 1.1 
Chemicals1.0 1.1 
Household Products1.0 0.4 
Diversified Telecommunication Services0.3 1.9 
Other (1)3.2 3.1 
100.0 %100.0 %
______________________
(1)Includes various industries with each industry individually less than 1.0% of the total combined LMM, Private Loan and Middle Market portfolio investments at each date.
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Fair Value:December 31, 2023December 31, 2022
Machinery8.8 %8.4 %
Diversified Consumer Services7.1 6.8 
Professional Services6.5 3.8 
Internet Software & Services6.2 6.8 
Construction & Engineering5.1 5.7 
Health Care Providers & Services5.0 4.3 
IT Services4.6 3.1 
Distributors4.5 5.5 
Computers & Peripherals4.4 3.0 
Commercial Services & Supplies3.9 6.1 
Containers & Packaging3.9 2.8 
Tobacco3.2 3.4 
Specialty Retail2.7 3.5 
Media2.7 3.0 
Aerospace & Defense2.7 2.2 
Textiles, Apparel & Luxury Goods2.6 1.8 
Energy Equipment & Services2.5 2.7 
Leisure Equipment & Products2.5 4.0 
Software2.1 2.1 
Electrical Equipment1.7 1.0 
Diversified Financial Services1.6 1.7 
Food Products1.5 1.8 
Building Products1.5 1.9 
Auto Components1.5 1.6 
Internet & Catalog Retail1.2 1.3 
Food & Staples Retailing1.2 1.1 
Air Freight & Logistics1.1 0.9 
Construction Materials1.0 1.0 
Health Care Equipment & Supplies1.0 1.0 
Chemicals0.9 1.1 
Diversified Telecommunication Services0.2 1.8 
Other (1)4.6 4.8 
100.0 %100.0 %
______________________
(1)Includes various industries with each industry individually less than 1.0% of the total combined LMM, Private Loan and Middle Market portfolio investments at each date.
At December 31, 2023 and 2022, Main Street had no portfolio investment that was greater than 10% of the Investment Portfolio at fair value.
Unconsolidated Significant Subsidiaries
In accordance with Rules 3-09 and 4-08(g) of Regulation S-X, Main Street must determine which of its unconsolidated controlled portfolio companies, if any, are considered “significant subsidiaries.” In evaluating its unconsolidated controlled portfolio companies in accordance with Regulation S-X, there are two tests that Main Street
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must utilize to determine if any of Main Street’s Control Investments (as defined in Note A — Organization and Basis of Presentation, including those unconsolidated portfolio companies defined as Control Investments in which Main Street does not own greater than 50% of the voting securities nor have rights to maintain greater than 50% of the board representation) are considered significant subsidiaries: the investment test and the income test. The investment test is generally measured by dividing Main Street’s investment in the Control Investment by the value of Main Street’s total investments. The income test is generally measured by dividing the absolute value of the combined sum of total investment income, net realized gain (loss) and net unrealized appreciation (depreciation) from the relevant Control Investment for the period being tested by the absolute value of Main Street’s change in net assets resulting from operations for the same period. Rules 3-09 and 4-08(g) of Regulation S-X require Main Street to include (1) separate audited financial statements of an unconsolidated majority-owned subsidiary (Control Investments in which Main Street owns greater than 50% of the voting securities) in an annual report and (2) summarized financial information of a Control Investment in a quarterly report, respectively, if certain thresholds of the investment or income tests are exceeded and the unconsolidated portfolio company qualifies as a significant subsidiary.
As of December 31, 2023, 2022 and 2021, Main Street had no single investment that qualified as a significant subsidiary under either the investment or income tests.
NOTE D — EXTERNAL INVESTMENT MANAGER
As discussed further in Note A.1. — Organization and Basis of Presentation — Organization and Note C — Fair Value Hierarchy for Investments — Portfolio Composition — Investment Portfolio Composition, the External Investment Manager provides investment management and other services to External Parties. The External Investment Manager is accounted for as a portfolio investment of MSCC since the External Investment Manager conducts all of its investment management activities for External Parties.
The External Investment Manager serves as the investment adviser and administrator to MSC Income pursuant to an Investment Advisory and Administrative Services Agreement entered into in October 2020 between the External Investment Manager and MSC Income (the “Advisory Agreement”). Under the Advisory Agreement, the External Investment Manager earns a 1.75% annual base management fee on MSC Income’s average total assets, an incentive fee equal to 20% of pre-investment fee net investment income above a specified investment return hurdle rate and a 20% incentive fee on cumulative net realized capital gains in exchange for providing advisory services to MSC Income.
As described more fully in Note L — Related Party Transactions, the External Investment Manager also serves as the investment adviser and administrator to MS Private Loan Fund I, LP (the “Private Loan Fund”) and MS Private Loan Fund II, LP (the “Private Loan Fund II”), each a private investment fund with a strategy to co-invest with Main Street in Private Loan portfolio investments. The External Investment Manager entered into investment management agreements in December 2020 with the Private Loan Fund and in September 2023 with the Private Loan Fund II, pursuant to which the External Investment Manager provides investment advisory and management services to each fund in exchange for an asset-based fee and certain incentive fees. The External Investment Manager may also advise other clients, including funds and separately managed accounts, pursuant to advisory and services agreements with such clients in exchange for asset-based and incentive fees.
The External Investment Manager provides administrative services for certain External Party clients that, to the extent not waived, are reported as administrative services fees. The administrative services fees generally represent expense reimbursements for a portion of the compensation, overhead and related expenses for certain professionals directly attributable to performing administrative services for clients. These fees are recognized as other revenue in the period in which the related services are rendered.
Main Street determines the fair value of the External Investment Manager using the Waterfall valuation method under the market approach (see further discussion in Note B.1. — Summary of Significant Accounting Policies — Valuation of the Investment Portfolio). Any change in fair value of the investment in the External Investment Manager is recognized on Main Street’s Consolidated Statements of Operations in “Net Unrealized Appreciation (Depreciation)—Control investments.”
The External Investment Manager is an indirect wholly-owned subsidiary of MSCC owned through a Taxable Subsidiary and is a disregarded entity for tax purposes. The External Investment Manager has entered into a tax sharing
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agreement with its Taxable Subsidiary owner. Since the External Investment Manager is accounted for as a portfolio investment of Main Street and is not included as a consolidated subsidiary of Main Street in its consolidated financial statements, and as a result of the tax sharing agreement with its Taxable Subsidiary owner, for financial reporting purposes the External Investment Manager is treated as if it is taxed at corporate income tax rates based on its taxable income and, as a result of its activities, may generate income tax expense or benefit. Main Street owns the External Investment Manager through the Taxable Subsidiary to allow MSCC to continue to comply with the “source-of-income” requirements contained in the RIC tax provisions of the Code. The taxable income, or loss, of the External Investment Manager may differ from its book income, or loss, due to temporary book and tax timing differences and permanent differences. As a result of the above described financial reporting and tax treatment, the External Investment Manager provides for any income tax expense, or benefit, and any tax assets or liabilities in its separate financial statements.
Main Street shares employees with the External Investment Manager and allocates costs related to such shared employees to the External Investment Manager generally based on a combination of the direct time spent, new investment origination activity and assets under management, depending on the nature of the expense. The total contribution of the External Investment Manager to Main Street’s net investment income consists of the combination of the expenses allocated to the External Investment Manager and the dividend income earned from the External Investment Manager. For the years ended December 31, 2023, 2022 and 2021, the total contribution to Main Street’s net investment income was $33.4 million, $22.3 million and $16.5 million, respectively.
Summarized financial information from the separate financial statements of the External Investment Manager as of December 31, 2023 and 2022 and for the years ended December 31, 2023, 2022 and 2021 is as follows:
As of
December 31, 2023
As of
December 31, 2022
(dollars in thousands)
Accounts receivable - advisory clients$10,777 $8,130 
Intangible Asset29,500 29,500 
Total assets$40,277 $37,630 
Accounts payable to MSCC and its subsidiaries$7,551 $4,455 
Dividend payable to MSCC and its subsidiaries3,226 3,675 
Equity29,500 29,500 
Total liabilities and equity$40,277 $37,630 
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Year Ended
December 31,
202320222021
(dollars in thousands)
Management fee income$22,424 $21,776 $17,665 
Incentive fees13,442 2,516 622 
Administrative services fees608 605 — 
Total revenues36,474 24,897 18,287 
Expenses allocated from MSCC or its subsidiaries:
Salaries, share-based compensation and other personnel costs(18,794)(10,129)(8,417)
Other G&A expenses(3,256)(2,835)(1,860)
Total allocated expenses(22,050)(12,964)(10,277)
Other direct G&A expenses(260)— — 
Total expenses(22,310)(12,964)(10,277)
Pre-tax income14,164 11,933 8,010 
Tax expense(2,855)(2,636)(1,795)
Net income$11,309 $9,297 $6,215 
NOTE E — DEBT
Summary of Mains Street’s debt as of December 31, 2023 is as follows:
Outstanding
Balance
Unamortized Debt
Issuance
(Costs)/Premiums (1)
Recorded Value
Estimated Fair
Value (2)
(dollars in thousands)
Corporate Facility$200,000 $— $200,000 $200,000 
SPV Facility160,000 — 160,000 160,000 
July 2026 Notes
500,000 (1,338)498,662 458,105 
May 2024 Notes
450,000 182 450,182 447,246 
SBIC Debentures350,000 (5,465)344,535 288,468 
December 2025 Notes
150,000 (1,035)148,965 151,155 
Total Debt$1,810,000 $(7,656)$1,802,344 $1,704,974 
___________________________
(1)The unamortized debt issuance costs for the Credit Facilities are reflected as Deferred financing costs on the Consolidated Balance Sheets, while the deferred debt issuance costs related to the July 2026 Notes, May 2024 Notes, SBIC Debentures and December 2025 Notes are reflected as contra-liabilities on the Consolidated Balance Sheets.
(2)Estimated fair value for outstanding debt if Main Street had adopted the fair value option under ASC 825. See discussion of the methods used to estimate the fair value of Main Street’s debt in Note B.12. — Summary of Significant Accounting Policies — Fair Value of Financial Instruments.
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Summary of Main Street’s debt as of December 31, 2022 is as follows:
Outstanding
Balance
Unamortized Debt
Issuance
(Costs)/Premiums (1)
Recorded Value
Estimated Fair
Value (2)
(dollars in thousands)
Corporate Facility$407,000 $— $407,000 $407,000 
SPV Facility200,000 — 200,000 200,000 
July 2026 Notes
500,000 (1,864)498,136 434,250 
May 2024 Notes
450,000 727 450,727 444,749 
SBIC Debentures350,000 (6,086)343,914 290,204 
December 2025 Notes
100,000 (675)99,325 106,607 
Total Debt$2,007,000 $(7,898)$1,999,102 $1,882,810 
___________________________
(1)The unamortized debt issuance costs for the Credit Facilities are reflected as Deferred financing costs on the Consolidated Balance Sheets, while the deferred debt issuance costs related to the July 2026 Notes, May 2024 Notes, SBIC Debentures and December 2025 Notes are reflected as contra-liabilities on the Consolidated Balance Sheets.
(2)Estimated fair value for outstanding debt if Main Street had adopted the fair value option under ASC 825. See discussion of the methods used to estimate the fair value of Main Street’s debt in Note B.12. — Summary of Significant Accounting Policies — Fair Value of Financial Instruments.
Summarized interest expense for the years ended December 31, 2023, 2022 and 2021 is as follows:
Year Ended December 31,
202320222021
(dollars in thousands)
Corporate Facility$26,605 $18,820 $5,204 
SPV Facility14,491 1,375 — 
July 2026 Notes
15,526 15,526 10,988 
May 2024 Notes
22,855 22,855 22,855 
SBIC Debentures11,394 11,337 10,857 
December 2025 Notes
11,704 174 — 
December 2022 Notes
— 8,189 8,932 
Total Interest Expense$102,575 $78,276 $58,836 
Corporate Facility
Main Street maintains the Corporate Facility to provide additional liquidity to support its investment and operational activities. As of December 31, 2023, the Corporate Facility included total commitments of $995.0 million from a diversified group of 18 lenders and contained an accordion feature with the right to request an increase in commitments under the facility from new and existing lenders on the same terms and conditions as the existing commitments up to a total of $1.4 billion. The revolving period under the Corporate Facility expires in August 2026 and the Corporate Facility is scheduled to mature in August 2027.
As of December 31, 2023, borrowings under the Corporate Facility bore interest, subject to Main Street’s election and resetting on a monthly basis on the first of each month, on a per annum basis at a rate equal to the applicable SOFR rate plus an applicable credit spread adjustment of 0.10% plus (i) 1.875% (or the applicable Prime rate plus 0.875%) as long as Main Street meets certain agreed upon excess collateral and maximum leverage requirements or (ii) 2.0% (or the
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Notes to the Consolidated Financial Statements (Continued)
applicable Prime Rate plus 1.0%) otherwise. Main Street pays unused commitment fees of 0.25% per annum on the unused lender commitments under the Corporate Facility. The Corporate Facility is secured by a first lien on the assets of MSCC and its subsidiaries, excluding the equity ownership or assets of the Funds and the External Investment Manager. In connection with the Corporate Facility, MSCC has made customary representations and warranties and is required to comply with various covenants, reporting requirements and other customary requirements for similar credit facilities.
As of December 31, 2023, the interest rate on the Corporate Facility was 7.3%. The average interest rate for borrowings under the Corporate Facility was 7.0% and 3.6% for the years ended December 31, 2023 and 2022, respectively. As of December 31, 2023, Main Street was in compliance with all financial covenants of the Corporate Facility.

SPV Facility
Main Street, through MSCC Funding I, LLC (“MSCC Funding”), a wholly-owned Structured Subsidiary that primarily holds originated loan investments, maintains the SPV Facility to finance its investment and operational activities. As of December 31, 2023, the SPV Facility included total commitments of $430.0 million from a diversified group of six lenders and contained an accordion feature, subject to the satisfaction of various conditions, that could bring total commitments and borrowing availability to up to $450.0 million. The revolving period under the SPV Facility expires in November 2025 and the SPV Facility is scheduled to mature in November 2027. Advances under the SPV Facility bear interest at a per annum rate equal to the one-month SOFR in effect, plus a 0.10% credit spread adjustment plus an applicable margin of 2.50% during the revolving period and 2.625% and 2.75% during the first and second years thereafter, respectively. MSCC Funding pays a commitment fee of 0.50% per annum on the unused lender commitments up to 35% of the total lender commitments and 0.75% per annum on the unused lender commitments greater than 35% of the total lender commitments. The SPV Facility is secured by a collateral loan on the assets of MSCC Funding and its subsidiaries. In connection with the SPV Facility, MSCC Funding has made customary representations and warranties and is required to comply with various covenants, reporting requirements and other customary requirements for similar credit facilities.
As of December 31, 2023, the interest rate on the SPV Facility was 7.9%. The average interest rate for borrowings under the SPV Facility was 7.6% and 6.7% for the years ended December 31, 2023 and 2022, respectively. As of December 31, 2023, MSCC Funding was in compliance with all financial covenants of the SPV Facility.
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Notes to the Consolidated Financial Statements (Continued)
MSCC Funding’s balance sheets as of December 31, 2023 and 2022 are as follows:
Balance Sheets
(dollars in thousands)

December 31, 2023
December 31, 2022
ASSETS
Investments at fair value:
Non-Control Investments (cost: $315,373 and $314,752 as of December 31, 2023 and 2022, respectively)
$317,392 $316,507 
Cash and cash equivalents12,817 10,838 
Interest and dividend receivable and other assets2,956 2,828 
Accounts receivable to MSCC and its subsidiaries— 556 
Receivable for securities sold— 369 
Deferred financing costs (net of accumulated amortization of $783 and $141 as of December 31, 2023 and 2022, respectively)
3,829 2,630 
Total assets$336,994 $333,728 
LIABILITIES
SPV Facility$160,000 $200,000 
Accounts payable and other liabilities7,170 112 
Interest payable1,135 1,272 
Total liabilities168,305 201,384 
NET ASSETS
Contributed capital138,163 126,010 
Total undistributed earnings30,526 6,334 
Total net assets168,689 132,344 
Total liabilities and net assets$336,994 $333,728 
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Notes to the Consolidated Financial Statements (Continued)
MSCC Funding’s statements of operations for the year ended December 31, 2023 and the period from November 22, 2022 to December 31, 2022 are as follows:
Statements of Operations
(dollars in thousands)
Year Ended December 31,Period from November 22, 2022 to December 31,
20232022
INVESTMENT INCOME:
Interest, fee and dividend income:
Non‑Control/Non‑Affiliate investments$40,152 $3,454 
Total investment income40,152 3,454 
EXPENSES:
Interest(14,491)(1,414)
Management Fee to MSCC(1,603)(89)
General and administrative(130)(25)
Total expenses(16,224)(1,528)
NET INVESTMENT INCOME23,928 1,926 
NET UNREALIZED APPRECIATION (DEPRECIATION):
Non‑Control/Non‑Affiliate investments264 4,408 
Total net unrealized appreciation (depreciation)264 4,408 
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS$24,192 $6,334 
July 2026 Notes
In January 2021, Main Street issued $300.0 million in aggregate principal amount of 3.00% unsecured notes due July 14, 2026 (the “July 2026 Notes”) at an issue price of 99.004%. Subsequently, in October 2021, Main Street issued an additional $200.0 million aggregate principal amount of the July 2026 Notes at an issue price of 101.741%. The July 2026 Notes issued in October 2021 have identical terms as, and are a part of a single series with, the July 2026 Notes issued in January 2021. The July 2026 Notes are unsecured obligations and rank pari passu with Main Street’s current and future unsecured indebtedness. The July 2026 Notes may be redeemed in whole or in part at any time at Main Street’s option subject to certain make-whole provisions. The July 2026 Notes bear interest at a rate of 3.00% per year payable semiannually on January 14 and July 14 of each year.
As of December 31, 2023, Main Street was in compliance with all covenants and other requirements of the July 2026 Notes.
May 2024 Notes
In April 2019, Main Street issued $250.0 million in aggregate principal amount of 5.20% unsecured notes due May 1, 2024 (the “May 2024 Notes”) at an issue price of 99.125%. Subsequently, in December 2019, Main Street issued an additional $75.0 million aggregate principal amount of the May 2024 Notes at an issue price of 105.0% and, in July 2020, Main Street issued an additional $125.0 million aggregate principal amount at an issue price of 102.7%. The May 2024 Notes issued in December 2019 and July 2020 have identical terms as, and are a part of a single series with, the May 2024 Notes issued in April 2019. The May 2024 Notes are unsecured obligations and rank pari passu with Main Street’s current and future unsecured indebtedness. The May 2024 Notes may be redeemed in whole or in part at any time at Main Street’s option subject to certain make-whole provisions. The May 2024 Notes bear interest at a rate of 5.20% per year payable semiannually on May 1 and November 1 of each year.
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Notes to the Consolidated Financial Statements (Continued)
As of December 31, 2023, Main Street was in compliance with all covenants and other requirements of the May 2024 Notes.
SBIC Debentures
Under existing SBIC regulations, SBA-approved SBICs under common control have the ability to issue debentures guaranteed by the SBA up to a regulatory maximum amount of $350.0 million. Main Street’s SBIC debentures payable, under existing SBA-approved commitments, were $350.0 million as of both December 31, 2023 and December 31, 2022. SBIC debentures provide for interest to be paid semiannually, with principal due at the applicable 10-year maturity date of each debenture. Main Street expects to maintain SBIC debentures under the SBIC program in the future, subject to periodic repayments and borrowings, in an amount up to the regulatory maximum amount for affiliated SBIC funds. The weighted-average annual interest rate on the SBIC debentures was 3.0% and 2.9% as of December 31, 2023 and December 31, 2022, respectively. The first principal maturity due under the existing SBIC debentures is in 2024, and the weighted-average remaining duration as of December 31, 2023 was 4.6 years. In accordance with SBIC regulations, the Funds are precluded from incurring additional non-SBIC debt without the prior approval of the SBA.
As of December 31, 2023, the SBIC debentures consisted of (i) $175.0 million par value of SBIC debentures outstanding issued by MSMF, with a recorded value of $172.0 million that was net of unamortized debt issuance costs of $3.0 million, and (ii) $175.0 million par value of SBIC debentures issued by MSC III, with a recorded value of $172.5 million that was net of unamortized debt issuance costs of $2.5 million.
The maturity dates and fixed interest rates for Main Street’s SBIC debentures as of December 31, 2023 and 2022 are summarized as follows:
Maturity DateFixed Interest RatePrincipal Balance
December 31,
2023		December 31,
2022
3/1/20233.16%$— $16,000,000 
3/1/20243.95%39,000,000 39,000,000 
3/1/20243.55%24,800,000 24,800,000 
3/1/20273.52%40,400,000 40,400,000 
9/1/20273.19%34,600,000 34,600,000 
3/1/20283.41%43,000,000 43,000,000 
9/1/20283.55%32,000,000 32,000,000 
3/1/20302.35%15,000,000 15,000,000 
9/1/20301.13%10,000,000 10,000,000 
9/1/20301.31%10,000,000 10,000,000 
3/1/20311.94%25,200,000 25,200,000 
9/1/20311.58%60,000,000 60,000,000 
9/1/20335.74%16,000,000 — 
Ending Balance $350,000,000 $350,000,000 
December 2025 Notes
In December 2022, Main Street issued $100.0 million in aggregate principal amount of 7.84% Series A unsecured notes due December 23, 2025 (the “December 2025 Series A Notes”) at par. In February 2023, Main Street issued an additional $50.0 million in aggregate principal amount of 7.53% Series B unsecured notes due December 23, 2025 (the “December 2025 Series B Notes” and, together with the December 2025 Series A Notes, the “December 2025 Notes”) at par. The December 2025 Notes are unsecured obligations and rank pari passu with Main Street’s current and future unsecured indebtedness. The December 2025 Notes may be redeemed in whole or in part at any time at Main Street’s option at par plus accrued interest to the prepayment date, subject to certain make-whole provisions. The December 2025 Series A Notes and the December 2025 Series B Notes bear interest at a rate of 7.84% and 7.53% per year, respectively,
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Notes to the Consolidated Financial Statements (Continued)
payable semiannually on June 23 and December 23 of each year. In addition, Main Street is obligated to offer to repay the December 2025 Notes at par plus accrued and unpaid interest if certain change in control events occur. The December 2025 Notes will bear interest at an increased rate from the date that (i) the December 2025 Notes receive a below investment grade rating by a rating agency if there is one or two rating agencies providing ratings of the December 2025 Notes, or two-thirds of the rating agencies if there are three rating agencies who are rating the notes (a “Below Investment Grade Event”), or (ii) the ratio of the Company’s consolidated secured indebtedness (other than indebtedness of the Funds or any Structured Subsidiaries) to the value of its consolidated total assets is greater than 0.35 to 1.00 (a “Secured Debt Ratio Event”), to and until the date on which the Below Investment Grade Event and the Secured Debt Ratio Event are no longer continuing. The governing agreement for the December 2025 Notes contains customary terms and conditions for senior unsecured notes issued in a private placement, as well as customary events of default with customary cure and notice periods.
As of December 31, 2023, Main Street was in compliance with all covenants and other requirements of the December 2025 Notes.
December 2022 Notes
In November 2017, Main Street issued $185.0 million in aggregate principal amount of 4.50% unsecured notes due December 1, 2022 (the “December 2022 Notes”) at an issue price of 99.16%. The December 2022 Notes bore interest at a rate of 4.50% per year payable semiannually on June 1 and December 1 of each year. In December 2022, Main Street repaid the entire principal amount of the issued and outstanding December 2022 Notes at par value plus the accrued and unpaid interest.
Contractual Payment Obligations
A summary of Main Street’s contractual payment obligations for the repayment of outstanding indebtedness at December 31, 2023 is as follows:
20242025202620272028Thereafter Total
(dollars in thousands)
Corporate Facility$— $— $— $200,000 $— $— $200,000 
SPV Facility— — — 160,000 — — 160,000 
July 2026 Notes
— — 500,000 — — — 500,000 
May 2024 Notes
450,000 — — — — — 450,000 
SBIC debentures63,800 — — 75,000 75,000 136,200 350,000 
December 2025 Notes
— 150,000 — — — — 150,000 
Total$513,800 $150,000 $500,000 $435,000 $75,000 $136,200 $1,810,000 
Senior Securities
Information about Main Street’s senior securities is shown in the following table as of December 31 for the years indicated in the table, unless otherwise noted.
Total Amount Outstanding Exclusive of Treasury Securities(1)Asset Coverage per Unit(2)Involuntary Liquidating Preference per Unit(3)Average Market Value per Unit(4)
(dollars in thousands)
SBIC Debentures
2014$225,000 $2,323 — N/A
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Notes to the Consolidated Financial Statements (Continued)
Total Amount Outstanding Exclusive of Treasury Securities(1)Asset Coverage per Unit(2)Involuntary Liquidating Preference per Unit(3)Average Market Value per Unit(4)
(dollars in thousands)
2015225,000 2,368 — N/A
2016240,000 2,415 — N/A
2017295,800 2,687 — N/A
2018345,800 2,455 — N/A
2019311,800 2,363 — N/A
2020309,800 2,244 — N/A
2021350,000 1,985 — N/A
2022350,000 2,044 — N/A
2023350,000 2,364 — N/A
Corporate Facility
2014$218,000 $2,323 — N/A
2015291,000 2,368 — N/A
2016343,000 2,415 — N/A
201764,000 2,687 — N/A
2018301,000 2,455 — N/A
2019300,000 2,363 — N/A
2020269,000 2,244 — N/A
2021320,000 1,985 — N/A
2022407,000 2,044 — N/A
2023200,000 2,364 — N/A
SPV Facility
2022$200,000 $2,044 — N/A
2023160,000 2,364 — N/A
April 2023 Notes
2014$90,823 $2,323 — $24.78 
201590,738 2,368 — 25.40 
201690,655 2,415 — 25.76 
201790,655 2,687 — 25.93 
December 2019 Notes
2014$175,000 $2,323 — N/A
2015175,000 2,368 — N/A
2016175,000 2,415 — N/A
2017175,000 2,687 — N/A
2018175,000 2,455 — N/A
December 2022 Notes
2017$185,000 $2,687 — N/A
2018185,000 2,455 — N/A
2019185,000 2,363 — N/A
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Notes to the Consolidated Financial Statements (Continued)
Total Amount Outstanding Exclusive of Treasury Securities(1)Asset Coverage per Unit(2)Involuntary Liquidating Preference per Unit(3)Average Market Value per Unit(4)
(dollars in thousands)
2020185,000 2,244 — N/A
2021185,000 1,985 — N/A
May 2024 Notes
2019$325,000 $2,363 — N/A
2020450,000 2,244 — N/A
2021450,000 1,985 — N/A
2022450,000 2,044 — N/A
2023450,000 2,364 — N/A
July 2026 Notes
2021$500,000 $1,985 — N/A
2022500,000 2,044 — N/A
2023500,000 2,364 — N/A
December 2025 Notes
2022$100,000 $2,044 — N/A
2023150,000 2,364 — N/A
___________________________
(1)Total amount of each class of senior securities outstanding at the end of the period presented.
(2)Asset coverage per unit is the ratio of the carrying value of Main Street’s total consolidated assets, less all liabilities and indebtedness not represented by senior securities, to the aggregate amount of senior securities representing indebtedness. Asset coverage per unit is expressed in terms of dollar amounts per $1,000 of indebtedness.
(3)The amount to which such class of senior security would be entitled upon the involuntary liquidation of the issuer in preference to any security junior to it. The “—” indicates information that the SEC expressly does not require to be disclosed for certain types of senior securities.
(4)Average market value per unit for the April 2023 Notes represents the average of the daily closing prices as reported on the NYSE during the period presented. Average market value per unit for all other senior securities included in the table is not applicable because these are not registered for public trading.
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Notes to the Consolidated Financial Statements (Continued)
NOTE F — FINANCIAL HIGHLIGHTS
The following is a schedule of financial highlights of Main Street for the years ended December 31, 2023, 2022, 2021, 2020, 2019, 2018, 2017, 2016, 2015 and 2014:
Year Ended December 31,
Per Share Data:20232022202120202019
NAV at the beginning of the period$26.86 $25.29 $22.35 $23.91 $24.09 
Net investment income (1)4.14 3.29 2.65 2.10 2.50 
Net realized gain (loss) (1)(2)(1.47)(0.07)0.66 (1.77)(0.33)
Net unrealized appreciation (depreciation) (1)(2)2.84 0.33 1.97 (0.09)(0.09)
Income tax benefit (provision) (1)(2)(0.28)(0.31)(0.48)0.21 (0.02)
Net increase in net assets resulting from operations (1)5.23 3.24 4.80 0.45 2.06 
Dividends paid from net investment income(3.70)(2.95)(2.58)(2.46)(2.91)
Dividends paid(3.70)(2.95)(2.58)(2.46)(2.91)
Impact of the net change in monthly dividends declared prior to the end of the period and paid in the subsequent period(0.01)(0.01)(0.01)— (0.01)
Accretive effect of stock offerings (issuing shares above NAV per share)0.67 1.17 0.58 0.41 0.55 
Accretive effect of DRIP issuance (issuing shares above NAV per share)0.10 0.09 0.09 0.08 0.12 
Other (3)0.05 0.03 0.06 (0.04)0.01 
NAV at the end of the period$29.20 $26.86 $25.29 $22.35 $23.91 
Market value at the end of the period$43.23 $36.95 $44.86 $32.26 $43.11 
Shares outstanding at the end of the period84,833,00278,506,81670,737,02167,762,03264,252,937
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Notes to the Consolidated Financial Statements (Continued)
Year Ended December 31,
Per Share Data:20182017201620152014
NAV at the beginning of the period$23.53 $22.10 $21.24 $20.85 $19.89 
Net investment income (1)2.60 2.39 2.23 2.18 2.20 
Net realized gain (loss) (1)(2)(0.03)0.19 0.56 (0.43)0.53 
Net unrealized appreciation (depreciation) (1)(2)0.32 0.86 (0.14)0.20 (0.27)
Income tax benefit (provision) (1)(2)(0.09)(0.43)0.02 0.18 (0.15)
Net increase in net assets resulting from operations (1)2.80 3.01 2.67 2.13 2.31 
Dividends paid from net investment income(2.69)(2.47)(1.99)(2.49)(2.17)
Distributions from capital gains(0.16)(0.32)(0.74)(0.16)(0.38)
Dividends paid(2.85)(2.79)(2.73)(2.65)(2.55)
Impact of the net change in monthly dividends declared prior to the end of the period and paid in the subsequent period(0.01)(0.01)(0.01)(0.01)(0.01)
Accretive effect of stock offerings (issuing shares above NAV per share)0.47 1.07 0.76 0.74 1.07 
Accretive effect of DRIP issuance (issuing shares above NAV per share)0.09 0.06 0.08 0.12 0.12 
Other (3)0.06 0.09 0.09 0.06 0.02 
NAV at the end of the period$24.09 $23.53 $22.10 $21.24 $20.85 
Market value at the end of the period$33.81 $39.73 $36.77 $29.08 $29.24 
Shares outstanding at the end of the period61,264,86158,660,68054,354,85750,413,74445,079,150
___________________________
(1)Based on weighted-average number of common shares outstanding for the period.
(2)Net realized gains or losses, net unrealized appreciation or depreciation and income tax provision or benefit can fluctuate significantly from period to period.
(3)Includes the impact of the different share amounts as a result of calculating certain per share data based on the weighted-average basic shares outstanding during the period and certain per share data based on the shares outstanding as of a period end or transaction date.
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Notes to the Consolidated Financial Statements (Continued)
Year Ended December 31,
20232022202120202019
(dollars in thousands)
NAV at end of period$2,477,399$2,108,586$1,788,846$1,514,767$1,536,390
Average NAV$2,276,932$1,923,134$1,626,585$1,436,291$1,517,615
Average outstanding debt$1,951,923$1,882,462$1,417,831$1,152,108$1,055,800
Ratio of total expenses, including income tax expense, to average NAV (1)8.08 %8.05 %8.56 %4.95 %5.75 %
Ratio of operating expenses to average NAV (2)7.09 %6.84 %6.54 %5.89 %5.67 %
Ratio of operating expenses, excluding interest expense, to average NAV (2)2.58 %2.77 %2.92 %2.44 %2.36 %
Ratio of net investment income to average NAV14.89 %12.76 %11.23 %9.60 %10.37 %
Portfolio turnover ratio19.24 %16.79 %29.81 %18.00 %18.86 %
Total investment return (3)28.23 %(11.18)%48.24 %(19.11)%36.86 %
Total return based on change in NAV (4)20.32 %13.51 %21.84 %1.91 %8.78 %
Year Ended December 31,
20182017201620152014
(dollars in thousands)
NAV at end of period$1,476,049$1,380,368$1,201,481$1,070,894$939,982
Average NAV$1,441,163$1,287,639$1,118,567$1,053,313$885,568
Average outstanding debt$947,694$843,993$801,048$759,396$575,524
Ratio of total expenses, including income tax expense, to average NAV (1)5.75 %7.37 %5.48 %4.63 %5.82 %
Ratio of operating expenses to average NAV (2)5.32 %5.47 %5.59 %5.45 %5.11 %
Ratio of operating expenses, excluding interest expense, to average NAV (2)2.30 %2.63 %2.58 %2.41 %2.44 %
Ratio of net investment income to average NAV10.87 %10.51 %10.35 %10.15 %10.79 %
Portfolio turnover ratio29.13 %38.18 %24.63 %25.37 %35.71 %
Total investment return (3)(8.25)%16.02 %37.36 %8.49 %(3.09)%
Total return based on change in NAV (4)12.19 %14.20 %12.97 %11.11 %12.71 %
___________________________
(1)Total expenses are the sum of operating expenses and net income tax provision or benefit. Net income tax provision or benefit includes the accrual of net deferred tax provision or benefit relating to the net unrealized appreciation or depreciation on portfolio investments held in Taxable Subsidiaries and due to the change in the loss and interest expense carryforwards, which are non-cash in nature and may vary significantly from period to period. Main Street is required to include net deferred tax provision or benefit in calculating its total expenses even though these net deferred taxes are not currently payable or receivable.
(2)Unless otherwise noted, operating expenses include interest, compensation, general and administrative and share-based compensation expenses, net of expenses allocated to the External Investment Manager of $22.1 million, $13.0 million, $10.3 million, $7.4 million, $6.7 million, $6.8 million, $6.4 million, $5.1 million, $4.3 million and $2.0 million for the years ended December 31, 2023, 2022, 2021, 2020, 2019, 2018, 2017, 2016, 2015 and 2014, respectively.
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Notes to the Consolidated Financial Statements (Continued)
(3)Total investment return is based on the purchase of stock at the current market price on the first day and a sale at the current market price on the last day of each period reported on the table and assumes reinvestment of dividends at prices obtained by Main Street’s dividend reinvestment plan during the period. The return does not reflect any sales load that may be paid by an investor.
(4)Total return based on change in NAV was calculated using the sum of ending NAV plus dividends to stockholders and other non-operating changes during the period, divided by the beginning NAV. Non-operating changes include any items that affect NAV other than the net increase in net assets resulting from operations, such as the effects of stock offerings, shares issued under the DRIP and equity incentive plans and other miscellaneous items.
NOTE G — DIVIDENDS, DISTRIBUTIONS AND TAXABLE INCOME
Main Street currently pays regular monthly dividends to its stockholders and periodically pays supplemental dividends to its stockholders. Future dividends, if any, will be determined by its Board of Directors on a quarterly basis. During 2023, Main Street paid regular monthly dividends of $0.225 per share for each month of January through June, regular monthly dividends of $0.23 per share for each month of July through September and regular monthly dividends of $0.235 per share for each month of October through December. The 2023 regular monthly dividends, which total $224.3 million, or $2.745 per share, represent a 5.8% increase from the regular monthly dividends paid totaling $192.3 million, or $2.595 per share, for the year ended December 31, 2022.
During 2023, Main Street also paid supplemental dividends of $0.175 per share in March, $0.225 per share in June, $0.275 per share in September and $0.275 per share in December, totaling $78.6 million, or $0.95 per share. During 2022, Main Street paid supplemental dividends of $0.075 per share in March, $0.075 per share in June, $0.10 per share in September and $0.10 per share in December, totaling $26.4 million, or $0.35 per share.
During 2023, the regular monthly dividends and supplemental dividends paid totaled $302.9 million, or $3.695 per share, representing a 25.5% increase from the total dividends paid during the year ended December 31, 2022. During the year ended December 31, 2022, the regular monthly dividends and supplemental dividends paid totaled $218.7 million, or $2.945 per share.
For tax purposes, the 2023 dividends were comprised of (i) ordinary income totaling $3.394 per share and (ii) qualified dividend income totaling $0.301 per share. As of December 31, 2023, Main Street estimates that it has generated undistributed taxable income of $76.5 million, or $0.90 per share, that will be carried forward toward distributions to be paid in 2024.
MSCC has elected to be treated for U.S. federal income tax purposes as a RIC. MSCC’s taxable income includes the taxable income generated by MSCC and certain of its subsidiaries, including the Funds and Structured Subsidiaries, which are treated as disregarded entities for tax purposes. As a RIC, MSCC generally will not pay corporate-level U.S. federal income taxes on any net ordinary taxable income or capital gains that MSCC distributes to its stockholders. MSCC must generally distribute at least 90% of its “investment company taxable income” (which is generally its net ordinary taxable income and realized net short-term capital gains in excess of realized net long-term capital losses) and 90% of its tax-exempt income to maintain its RIC status (pass-through tax treatment for amounts distributed). As part of maintaining RIC status, undistributed taxable income (subject to a 4% non-deductible U.S. federal excise tax) pertaining to a given fiscal year may be distributed up to twelve months subsequent to the end of that fiscal year, provided such dividends are declared on or prior to the later of (i) filing of the U.S. federal income tax return for the applicable fiscal year or (ii) the fifteenth day of the ninth month following the close of the year in which such taxable income was generated.
The determination of the tax attributes for Main Street’s distributions is made annually, based upon its taxable income for the full year and distributions paid for the full year. Therefore, a determination made on an interim basis may not be representative of the actual tax attributes of distributions for a full year. Ordinary dividend distributions from a RIC do not qualify for the 20% maximum tax rate (plus a 3.8% Medicare surtax, if applicable) on dividend income from domestic corporations and qualified foreign corporations, except to the extent that the RIC received the income in the form of qualifying dividends from domestic corporations and qualified foreign corporations. The tax attributes for distributions will generally include both ordinary income and qualified dividends, but may also include either one or both of capital
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gains and return of capital. The tax character of distributions paid for the years ended December 31, 2023, 2022 and 2021 was as follows:
Year Ended December 31,
202320222021
(dollars in thousands)
Ordinary income (1)$278,165 $195,238 $129,625 
Qualified dividends24,100 22,991 47,202 
Distributions on tax basis$302,265 $218,229 $176,827 
___________________________
(1)The years ended December 31, 2023, 2022 and 2021 include $3.3 million, $2.3 million and $1.8 million, respectively, that was reported for tax purposes as compensation for services in accordance with Section 83 of the Code.
Listed below is a reconciliation of “Net increase in net assets resulting from operations” to taxable income and to total distributions declared to common stockholders for the years ended December 31, 2023, 2022 and 2021.
Year Ended December 31,
202320222021
(estimated, dollars in thousands)
Net increase in net assets resulting from operations$428,447 $241,606 $330,762 
Book-tax difference from share-based compensation expense962 142 (3,213)
Net unrealized appreciation(232,577)(24,816)(135,624)
Income tax provision22,642 23,325 32,863 
Pre-tax book loss (income) not consolidated for tax purposes20,726 (37,630)(59,634)
Book income and tax income differences, including debt origination, structuring fees, dividends, realized gains and changes in estimates72,389 17,043 39,819 
Estimated taxable income (1)312,589 219,670 204,973 
Taxable income earned in prior year and carried forward for distribution in current year49,216 50,834 24,359 
Taxable income earned prior to period end and carried forward for distribution next period(76,510)(66,892)(65,994)
Dividend payable as of period end and paid in the following period20,368 17,676 15,159 
Total distributions accrued or paid to common stockholders$305,663 $221,288 $178,497 
___________________________
(1)MSCC’s taxable income for each period is an estimate and will not be finally determined until MSCC files its tax return for each year. Therefore, the final taxable income, and the taxable income earned in each period and carried forward for distribution in the following period, may be different than this estimate.
The Taxable Subsidiaries primarily hold certain equity investments for Main Street. The Taxable Subsidiaries permit Main Street to hold equity investments in portfolio companies which are “pass-through” entities for tax purposes and to continue to comply with the “source-of-income” requirements contained in the RIC tax provisions of the Code. The Taxable Subsidiaries are consolidated with MSCC for U.S. GAAP financial reporting purposes, and the portfolio investments held by the Taxable Subsidiaries are included in Main Street’s consolidated financial statements as portfolio investments and recorded at fair value. The Taxable Subsidiaries are not consolidated with MSCC for income tax purposes and may generate income tax expense, or benefit, and tax assets and liabilities, as a result of their ownership of certain portfolio investments. The taxable income, or loss, of the Taxable Subsidiaries may differ from their book income, or loss, due to temporary book and tax timing differences and permanent differences. The Taxable Subsidiaries are each taxed at corporate income tax rates based on their taxable income. The income tax expense, or benefit, if any, and the related tax assets and liabilities, of the Taxable Subsidiaries are reflected in Main Street’s consolidated financial statements.
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Notes to the Consolidated Financial Statements (Continued)
The income tax provision for Main Street is generally composed of (i) deferred tax expense, which is primarily the result of the net activity relating to the portfolio investments held in the Taxable Subsidiaries, including changes in loss carryforwards, changes in net unrealized appreciation or depreciation and other temporary book tax differences, and (ii) current tax expense (benefit), which is primarily the result of current U.S. federal income and state taxes and excise taxes on Main Street’s estimated undistributed taxable income. The income tax expense, or benefit, and the related tax assets and liabilities generated by the Taxable Subsidiaries, if any, are reflected in Main Street’s Consolidated Statements of Operations. Main Street’s provision for income taxes was comprised of the following for the years ended December 31, 2023, 2022 and 2021:
Year Ended December 31,
202320222021
(dollars in thousands)
Current tax expense (benefit):
Federal$1,198 $516 $(235)
State2,245 1,845 3,377 
Excise3,190 2,838 2,590 
Total current tax expense6,633 5,199 5,732 
Deferred tax expense:
Federal14,181 13,176 23,205 
State1,828 4,950 3,926 
Total deferred tax expense16,009 18,126 27,131 
Total income tax provision$22,642 $23,325 $32,863 
MSCC operates in a manner to maintain its RIC status and to eliminate corporate-level U.S. federal income tax (other than the 4% excise tax) by distributing sufficient investment company taxable income and long-term capital gains. As a result, MSCC will have an effective tax rate equal to 0% before the excise tax and income taxes incurred by the Taxable Subsidiaries. As such, a reconciliation of the differences between Main Street’s reported income tax expense and its tax expense at the federal statutory rate of 21% is not meaningful.
As of December 31, 2023, the cost of investments for U.S. federal income tax purposes was $3,602.7 million, with such investments having an estimated net unrealized appreciation of $683.7 million, composed of gross unrealized appreciation of $970.4 million and gross unrealized depreciation of $286.7 million.
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Notes to the Consolidated Financial Statements (Continued)
The following table sets forth the significant components of net deferred tax assets and liabilities as of December 31, 2023 and 2022:
Year Ended December 31,
20232022
(dollars in thousands)
Deferred tax assets:
Net operating loss carryforwards$39,079 $35,043 
Interest expense carryforwards20,126 6,171 
Other4,190 3,401 
Total deferred tax assets63,395 44,615 
Deferred tax liabilities:
Net unrealized appreciation of portfolio investments(90,981)(64,219)
Net basis differences in portfolio investments(36,272)(28,245)
Total deferred tax liabilities(127,253)(92,464)
Total deferred tax liabilities, net$(63,858)$(47,849)
The net deferred tax liability at December 31, 2023 and 2022 was $63.9 million and $47.8 million, respectively, with the change primarily related to changes in net unrealized appreciation or depreciation, changes in loss or interest expense carryforwards, and other temporary book-tax differences relating to portfolio investments held by the Taxable Subsidiaries. Management believes that the realization of the deferred tax assets is more likely than not based on expectations as to future taxable income and scheduled reversals of temporary differences. Accordingly, Main Street did not record a valuation allowance related to its deferred tax assets at December 31, 2023 and 2022. At December 31, 2023, for U.S. federal income tax purposes, the Taxable Subsidiaries had a net operating loss carryforward from prior years which, if unused, will expire in various taxable years from 2035 through 2037. Any net operating losses generated in 2018 and future periods are not subject to expiration and will carryforward indefinitely until utilized. Additionally, the Taxable Subsidiaries have interest expense limitation carryforwards which have an indefinite carryforward period. In addition, as of December 31, 2023, for U.S. federal income tax purposes at the RIC level, MSCC had net capital loss carryforwards totaling $60.3 million available to offset future capital gains, to the extent available and permitted by U.S. federal income tax law. However, as long as MSCC maintains its RIC status, any capital loss carryforwards at the RIC are not subject to a federal income tax-effect and are not subject to an expiration date.
NOTE H — COMMON STOCK
Main Street maintains a program with certain selling agents through which it can sell shares of its common stock by means of at-the-market offerings from time to time (the “ATM Program”).
During the year ended December 31, 2023, Main Street sold 5,149,460 shares of its common stock at a weighted-average price of $39.94 per share and raised $205.7 million of gross proceeds under the ATM Program. Net proceeds were $203.3 million after commissions to the selling agents on shares sold and offering costs. As of December 31, 2023, sales transactions representing 2,323 shares had not settled and are not included in shares issued and outstanding on the face of the Consolidate Balance Sheets but are included in the weighted average shares outstanding in the Consolidated Statements of Operations and in the shares used to calculate the NAV per share. In March 2022, Main Street entered into new distribution agreements to sell up to 15,000,000 shares through the ATM Program. As of December 31, 2023, 5,313,224 shares remained available for sale under the ATM Program.
During the year ended December 31, 2022, Main Street sold 5,407,382 shares of its common stock at a weighted-average price of $39.29 per share and raised $212.4 million of gross proceeds under the ATM Program. Net proceeds were $209.9 million after commissions to the selling agents on shares sold and offering costs.
During August 2022, Main Street completed a public equity offering of 1,345,500 shares of common stock at a public offering price of $42.85 per share, including the underwriters’ full exercise of their option to purchase 175,500
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Notes to the Consolidated Financial Statements (Continued)
additional shares, resulting in total net proceeds, including exercise of the underwriters’ option to purchase additional shares and after deducting underwriting discounts and estimated offering expenses payable by Main Street, of approximately $55.1 million.
During the year ended December 31, 2021, Main Street sold 2,332,795 shares of its common stock at a weighted-average price of $42.71 per share and raised $99.6 million of gross proceeds under the ATM Program. Net proceeds were $98.4 million after commissions to the selling agents on shares sold and offering costs.
NOTE I — DIVIDEND REINVESTMENT PLAN
The dividend reinvestment feature of Main Street’s dividend reinvestment and direct stock purchase plan (the “DRIP”) provides for the reinvestment of dividends on behalf of its stockholders, unless a stockholder has elected to receive dividends in cash. As a result, if Main Street declares a cash dividend, its stockholders who have not “opted out” of the DRIP by the dividend record date will have their cash dividend automatically reinvested into additional shares of MSCC common stock. The share requirements of the DRIP may be satisfied through the issuance of shares of common stock or through open market purchases of common stock by the DRIP plan administrator. Newly issued shares will be valued based upon the final closing price of MSCC’s common stock on the valuation date determined for each dividend by Main Street’s Board of Directors. Shares purchased in the open market to satisfy the DRIP requirements will be valued based upon the average price of the applicable shares purchased, before any associated brokerage or other costs. Main Street’s DRIP is administered by its transfer agent on behalf of Main Street’s record holders and participating brokerage firms. Brokerage firms and other financial intermediaries may decide not to participate in Main Street’s DRIP but may provide a similar dividend reinvestment plan for their clients.
Summarized DRIP information for the years ended December 31, 2023, 2022 and 2021 is as follows:
Year Ended December 31,
202320222021
(dollars in thousands)
DRIP participation$30,719 $24,131 $16,283 
Shares issued for DRIP765,427625,196404,384
NOTE J — SHARE-BASED COMPENSATION
Main Street accounts for its share-based compensation plans using the fair value method, as prescribed by ASC 718, Compensation—Stock Compensation. Accordingly, for restricted stock awards (“RSAs”), Main Street measured the grant date fair value based upon the market price of its common stock on the date of the grant and amortizes the fair value of the awards as share-based compensation expense over the requisite service period, which is generally the vesting term.
Main Street’s Board of Directors approves the issuance of shares of restricted stock to Main Street employees pursuant to the Main Street Capital Corporation 2022 Equity and Incentive Plan (the “Equity and Incentive Plan”). These shares generally vest over a three-year or five-year period from the grant date. The fair value is expensed over the service period, starting on the grant date. The following table summarizes the restricted stock issuances approved by Main Street’s Board of Directors under the Equity and Incentive Plan, net of shares forfeited, if any, and the remaining shares of restricted stock available for issuance as of December 31, 2023.
Restricted stock authorized under the plan5,000,000
Less net restricted stock granted(558,807)
Restricted stock available for issuance as of December 31, 2023
4,441,193 
As of December 31, 2023, the following table summarizes the restricted stock issued to Main Street’s non-employee directors and the remaining shares of restricted stock available for issuance pursuant to the Main Street Capital Corporation 2022 Non-Employee Director Restricted Stock Plan. These shares are granted upon appointment or election to
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Notes to the Consolidated Financial Statements (Continued)
the board and vest on the day immediately preceding the annual meeting of stockholders following the respective grant date and are expensed over such service period.
Restricted stock authorized under the plan300,000
Less net restricted stock granted(7,525)
Restricted stock available for issuance as of December 31, 2023
292,475
For the years ended December 31, 2023, 2022 and 2021, Main Street recognized total share-based compensation expense of $16.5 million, $13.6 million and $10.9 million, respectively, related to the restricted stock issued to Main Street employees and non-employee directors.
Summarized RSA activity for the year ended December 31, 2023 is as follows:
Year Ended December 31, 2023
NumberWeighted-Average Grant-Date Fair Value
Restricted Stock Awards (RSAs):of Shares($ per share)
Non-vested, December 31, 2022
817,401 $38.78 
Granted (1)551,730 39.43 
Vested (1)(2)
(398,914)39.20 
Forfeited(11,992)40.47 
Non-vested, December 31, 2023
958,225 $40.48 
Aggregate intrinsic value as of December 31, 2023 (in thousands)
$41,424 (3)
___________________________
(1)Restricted units generally vest over a three-year or five-year period from the grant date (as noted above).
(2)Vested shares included 151,058 shares withheld for payroll taxes paid on behalf of employees.
(3)Aggregate intrinsic value is the product of total non-vested restricted shares as of December 31, 2023 and $43.23 per share, the closing price of our common stock on December 31, 2023.

The total fair value of RSAs that vested during the years ended December 31, 2023, 2022 and 2021, was $15.6 million, $10.5 million and $10.9 million, respectively.
As of December 31, 2023, there was $26.3 million of total unrecognized compensation expense related to Main Street’s non-vested restricted shares. This compensation expense is expected to be recognized over a remaining weighted-average period of 2.3 years as of December 31, 2023.
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Notes to the Consolidated Financial Statements (Continued)
NOTE K — COMMITMENTS AND CONTINGENCIES
At December 31, 2023, Main Street had the following outstanding commitments (in thousands):
Investments with equity capital commitments that have not yet funded:Amount
Brightwood Capital Fund Investments
Brightwood Capital Fund V, LP$3,000 
Brightwood Capital Fund III, LP649 
3,649 
EnCap Equity - Fund XII, LP10,000 
Freeport Fund Investments
Freeport First Lien Loan Fund III LP8,340 
Freeport Financial SBIC Fund LP4,490 
12,830 
Harris Preston Fund Investments
HPEP 4, L.P.8,378 
HPEP 3, L.P.1,308 
HPEP 423 COR, LP600 
2717 MH, L.P.52 
10,338 
MS Private Loan Fund I, LP750 
MS Private Loan Fund II, LP8,847 
UnionRock Energy Fund Investments
UnionRock Energy Fund III, LP7,500 
UnionRock Energy Fund II, LP1,465 
8,965 
     Total Equity Commitments (1)(2)$55,379 
Investments with commitments to fund revolving loans that have not been fully drawn or term loans with additional commitments not yet funded:
MS Private Loan Fund II, LP$26,500 
MS Private Loan Fund I, LP10,000 
Power System Solutions9,255 
Garyline, LLC8,824 
CQ fluency, LLC6,750 
Insight Borrower Corporation6,688 
PTL US Bidco, Inc6,520 
SI East, LLC6,375 
AB Centers Acquisition Corporation6,172 
Veregy Consolidated, Inc.5,875 
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Notes to the Consolidated Financial Statements (Continued)
JTI Electrical & Mechanical, LLC5,284 
Paragon Healthcare, Inc.4,327 
Cody Pools, Inc.4,214 
Bettercloud, Inc.4,189 
Channel Partners Intermediateco, LLC4,143 
Richardson Sales Solutions4,030 
South Coast Terminals Holdings, LLC4,018 
IG Investor, LLC4,000 
NexRev LLC4,000 
AVEX Aviation Holdings, LLC3,684 
Mako Steel, LP3,651 
Microbe Formulas, LLC3,601 
Johnson Downie Opco, LLC3,600 
Watterson Brands, LLC3,546 
Eastern Wholesale Fence LLC3,495 
Classic H&G Holdco, LLC3,440 
HEADLANDS OP-CO LLC3,375 
VVS Holdco, LLC3,200 
SPAU Holdings, LLC3,194 
Mini Melts of America, LLC3,045 
RTIC Subsidiary Holdings, LLC2,877 
Metalforming Holdings, LLC2,795 
ArborWorks, LLC2,779 
Engineering Research & Consulting, LLC2,621 
IG Parent Corporation2,500 
Nebraska Vet AcquireCo, LLC2,500 
Superior Rigging & Erecting Co.2,500 
Centre Technologies Holdings, LLC2,400 
Batjer TopCo, LLC 2,070 
Cybermedia Technologies, LLC2,000 
Purge Rite, LLC1,969 
Elgin AcquireCo, LLC1,877 
Burning Glass Intermediate Holding Company, Inc.1,859 
Career Team Holdings, LLC1,800 
GULF PACIFIC ACQUISITION, LLC1,767 
NinjaTrader, LLC1,750 
Acousti Engineering Company of Florida1,730 
Bluestem Brands, Inc.1,716 
Trantech Radiator Topco, LLC1,600 
Chamberlin Holding LLC1,600 
Acumera, Inc.1,598 
Pearl Meyer Topco LLC1,500 
ITA Holdings Group, LLC1,466 
ATS Operating, LLC1,440 
Bond Brand Loyalty ULC1,427 
Imaging Business Machines, L.L.C.1,384 
American Health Staffing Group, Inc.1,333 
Escalent, Inc.1,326 
CaseWorthy, Inc.1,230 
Gamber-Johnson Holdings, LLC1,200 
Pinnacle TopCo, LLC1,140 
Infolinks Media Buyco, LLC1,008 
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Notes to the Consolidated Financial Statements (Continued)
GRT Rubber Technologies LLC950 
Evergreen North America Acquisitions, LLC927 
Orttech Holdings, LLC800 
Mystic Logistics Holdings, LLC800 
Roof Opco, LLC778 
Project BarFly, LLC760 
GS HVAM Intermediate, LLC727 
Analytical Systems Keco Holdings, LLC580 
Invincible Boat Company, LLC.561 
RA Outdoors LLC454 
Clad-Rex Steel, LLC400 
Wall Street Prep, Inc.400 
Gulf Publishing Holdings, LLC400 
AAC Holdings, Inc.200 
Inspire Aesthetics Management, LLC50 
Adams Publishing Group, LLC41 
Interface Security Systems, L.L.C1 
      Total Loan Commitments$236,586 
      Total Commitments$291,965 
____________________
(1)This table excludes commitments related to six additional Other Portfolio investments for which the investment period has expired and remaining commitments may only be drawn to pay fund expenses. The Company does not expect any material future capital to be called on its commitment to these investments and as a result has excluded those commitments from this table.
(2)This table excludes commitments related to three additional Other Portfolio investments for which the investment period has expired and remaining commitments may only be drawn to pay fund expenses or for follow on investments in existing portfolio companies. The Company does not expect any material future capital to be called on its commitment to these investments to pay fund expenses, and based on representations from the fund manager, the Company does not expect any further capital will be called on its commitment for follow on investments. As a result, the Company has excluded those commitments from this table.
Main Street will fund its unfunded commitments from the same sources it uses to fund its investment commitments that are funded at the time they are made (which are typically through existing cash and cash equivalents and borrowings under the Credit Facilities). Main Street follows a process to manage its liquidity and ensure that it has available capital to fund its unfunded commitments as necessary. The Company had no unrealized appreciation or depreciation on the outstanding unfunded commitments as of December 31, 2023.
Main Street may, from time to time, be involved in litigation arising out of its operations in the normal course of business or otherwise. Furthermore, third parties may try to impose liability on Main Street in connection with the activities of its portfolio companies. While the outcome of any current legal proceedings cannot at this time be predicted with certainty, Main Street does not expect any current matters will materially affect its financial condition or results of operations; however, there can be no assurance whether any pending legal proceedings will have a material adverse effect on Main Street’s financial condition or results of operations in any future reporting period.
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Notes to the Consolidated Financial Statements (Continued)
NOTE L — RELATED PARTY TRANSACTIONS
As discussed further in Note D — External Investment Manager, the External Investment Manager is treated as a wholly-owned portfolio company of Main Street and is included as part of Main Street’s Investment Portfolio. At December 31, 2023, Main Street had a receivable of $10.8 million due from the External Investment Manager, which included (i) $7.6 million related primarily to operating expenses incurred by Main Street as required to support the External Investment Manager’s business and amounts due from the External Investment Manager to Main Street under a tax sharing agreement (see further discussion in Note D — External Investment Manager) and (ii) $3.2 million of dividends declared but not paid by the External Investment Manager. MSCC has entered into an agreement with the External Investment Manager to share employees in connection with its asset management business generally, and specifically for the External Investment Manager’s relationship with MSC Income and its other clients (see further discussion in Note A.1. — Organization and Basis of Presentation — Organization and Note D — External Investment Manager).
From time to time, Main Street may make investments in clients of the External Investment Manager in the form of debt or equity capital on terms approved by Main Street’s Board of Directors, including each director who is not an “interested person,” as such term is defined in Section 2(a)(19) of the 1940 Act.
In May 2022, Main Street purchased 94,697 shares of common stock of MSC Income from MSC Income at the price shares were purchased by MSC Income stockholders pursuant to MSC Income’s dividend reinvestment plan for its May 2022 dividend on such date. In May 2023, Main Street purchased an additional 255,755 shares of common stock of MSC Income from MSC Income at the price shares were purchased by MSC Income stockholders pursuant to MSC Income’s dividend reinvestment plan for its May 2023 dividend on such date. In August 2023, Main Street purchased an additional 348,542 shares of common stock of MSC Income from MSC Income at the share price at which shares were purchased by MSC Income stockholders pursuant to MSC Income’s dividend reinvestment plan for its August 2023 dividend. In September 2023, Main Street purchased an additional 115,385 shares of common stock of MSC Income at a price of $6.50 per share in the modified “Dutch Auction” tender offer commenced by MSC Income and Main Street in August 2023 to purchase, severally and not jointly, up to an aggregate of $3,500,000 of shares from stockholders of MSC Income, subject to the conditions described in the offer to purchase dated August 16, 2023. In October 2023 Main Street purchased 475,888 shares of common stock of MSC Income from MSC Income at the price shares were purchased by MSC Income stockholders pursuant to MSC Income’s dividend reinvestment plan for its October 2023 dividend on such date. Each of Main Street’s purchases of MSC Income common stock was unanimously approved by the Board of Directors and MSC Income’s board of directors, including each director who is not an “interested person,” as such term is defined in Section 2(a)(19) of the 1940 Act, of each board. As of December 31, 2023, Main Street owned 1,290,267 shares of MSC Income. In addition, certain of Main Street’s officers and employees own shares of MSC Income and therefore have direct pecuniary interests in MSC Income.
In December 2020, the External Investment Manager entered into an investment management agreement with the Private Loan Fund to provide investment advisory and management services in exchange for an asset-based fee and certain incentive fees. The Private Loan Fund is a private investment fund exempt from registration under the 1940 Act that co-invests with Main Street in Main Street’s Private Loan investment strategy. In connection with the Private Loan Fund’s initial closing in December 2020, Main Street committed to contribute up to $10.0 million as a limited partner and is entitled to distributions on such interest. In February 2022, Main Street increased its total commitment to the Private Loan Fund from $10.0 million to $15.0 million. In addition, certain of Main Street’s officers and employees (and certain of their immediate family members) have made capital commitments to the Private Loan Fund as limited partners and therefore have direct pecuniary interests in the Private Loan Fund. As of December 31, 2023, Main Street has funded $14.3 million of its limited partner commitment and Main Street’s unfunded commitment was $0.7 million. Main Street’s limited partner commitment to the Private Loan Fund was unanimously approved by the Board of Directors, including each director who is not an “interested person,” as such term is defined in Section 2(a)(19) of the 1940 Act.
Additionally, Main Street provided the Private Loan Fund with a revolving line of credit pursuant to an Unsecured Revolving Promissory Note, dated February 5, 2021 and was subsequently amended on November 30, 2021 and on December 29, 2021 (as amended, the “PL Fund 2021 Note”), in an aggregate amount equal to the amount of limited partner capital commitments to the Private Loan Fund up to $85.0 million. Borrowings under the PL Fund 2021 Note bore interest at a fixed rate of 5.00% per annum and matured on February 28, 2022. The PL Fund 2021 Note was unanimously approved by Main Street’s Board of Directors, including each director who is not an “interested person,” as such term is defined in Section 2(a)(19) of the 1940 Act. In February 2022, the Private Loan Fund fully repaid all borrowings outstanding under the PL Fund 2021 Note and the PL Fund 2021 Note was extinguished.
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Notes to the Consolidated Financial Statements (Continued)
In March 2022, Main Street provided the Private Loan Fund with a revolving line of credit pursuant to a Secured Revolving Promissory Note, dated March 17, 2022 (the “PL Fund 2022 Note”), which provides for borrowings up to $10.0 million. Borrowings under the PL Fund 2022 Note bear interest at a fixed rate of 5.00% per annum and mature on the date upon which the Private Loan Fund’s investment period concludes, which is scheduled to occur in March 2026. Available borrowings under the PL Fund 2022 Note are subject to a 0.25% non-use fee. The PL Fund 2022 Note was unanimously approved by Main Street’s Board of Directors, including each director who is not an “interested person,” as such term is defined in Section 2(a)(19) of the 1940 Act. As of December 31, 2023, there were no borrowings outstanding under the PL Fund 2022 Note.
In September 2023, the External Investment Manager entered into an investment management agreement with the Private Loan Fund II to provide investment advisory and management services in exchange for an asset-based fee and certain incentive fees. The Private Loan Fund II is a private investment fund exempt from registration under the 1940 Act that co-invests with Main Street in Main Street’s Private Loan investment strategy. In connection with the Private Loan Fund II’s initial closing in September 2023, Main Street committed to contribute up to $15.0 million (limited to 20% of total commitments) as a limited partner and is entitled to distributions on such interest. In addition, certain of Main Street’s officers and employees (and certain of their immediate family members) have made capital commitments to the Private Loan Fund II as limited partners and therefore have direct pecuniary interests in the Private Loan Fund II. As of December 31, 2023, Main Street has funded $1.6 million of its limited partner commitment and Main Street’s unfunded commitment was $8.8 million. Main Street’s limited partner commitment to the Private Loan Fund II was unanimously approved by the Board of Directors, including each director who is not an “interested person,” as such term is defined in Section 2(a)(19) of the 1940 Act.
In September 2023, Main Street provided the Private Loan Fund II with a revolving line of credit pursuant to a Secured Revolving Promissory Note, dated September 5, 2023 (the “PL Fund II 2023 Note”), which provides for borrowings up to $50.0 million. Borrowings under the PL Fund II 2023 Note bear interest at a rate of SOFR plus 3.5% per annum, subject to a 2.0% SOFR floor, and mature on September 5, 2025. Available borrowings under the PL Fund II 2023 Note are subject to a 0.25% non-use fee. The borrowings are collateralized by all assets of the Private Loan Fund II. The PL Fund II 2023 Note was unanimously approved by Main Street’s Board of Directors, including each director who is not an “interested person,” as such term is defined in Section 2(a)(19) of the 1940 Act. As of December 31, 2023, there were $23.5 million of borrowings outstanding under the PL Fund II 2023 Note.

As described in Note B.9. — Summary of Significant Accounting Policies – Deferred Compensation Plan, participants in the Deferred Compensation Plan elect one or more investment options, including phantom Main Street stock units, interests in affiliated funds and various mutual funds, where their deferred amounts are notionally invested pending distribution pursuant to participant elections and plan terms.

As of December 31, 2023, $19.4 million of compensation, plus net unrealized gains and losses and investment income, and minus previous distributions, was deferred under the Deferred Compensation Plan. As of December 31, 2023, $7.7 million was deferred into phantom Main Street stock units, representing 178,216 shares of Main Street’s common stock. In addition, as of December 31, 2023, the Company had $11.7 million of funded investments from deferred compensation in trust, including $2.1 million in the Private Loan Fund and $0.8 million in the Private Loan Fund II.
NOTE M — SUBSEQUENT EVENTS
In January 2024, Main Street issued $350.0 million in aggregate principal amount of 6.95% unsecured notes due March 1, 2029 (the “March 2029 Notes”) at an issue price of 99.865%. The total net proceeds from the offering of the March 2029 Notes were approximately $346.3 million after underwriting discounts and estimated offering expenses payable. Main street utilized the proceeds to repay outstanding borrowings under its Credit Facilities.
In February 2024, Main Street declared a supplemental cash dividend of $0.30 per share payable in March 2024. This supplemental cash dividend is in addition to the previously announced regular monthly cash dividends that Main Street declared of $0.24 per share for each of January, February and March 2024, or total regular monthly cash dividends of $0.72 per share for the first quarter of 2024.
In February 2024, Main Street also declared regular monthly dividends of $0.24 per share for each of April, May and June of 2024. These regular monthly dividends equal a total of $0.72 per share for the second quarter of 2024, representing a 6.7% increase from the regular monthly dividends paid in the second quarter of 2023. Including the
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Notes to the Consolidated Financial Statements (Continued)
regular monthly and supplemental dividends declared for the first and second quarters of 2024, Main Street will have paid $40.555 per share in cumulative dividends since its October 2007 initial public offering.
189
Table of contents                                                  Schedule 12-14
MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments In and Advances to Affiliates
December 31, 2023
(dollars in thousands)
CompanyTotal RateBase RateSpreadPIK RateType of Investment(1) (10) (11)GeographyAmount of
Realized
Gain/(Loss)		Amount of
Unrealized
Gain/(Loss)		Amount of
Interest,
Fees or
Dividends
Credited to
Income(2)		December 31,
2022 Fair Value		Gross
Additions(3)		Gross
Reductions(4)		December 31,
2023 Fair Value (13)
Majority-owned investments
Analytical Systems Keco Holdings, LLC15.38%SF+10.00%Secured Debt (12)(8)$— $— $13 $(3)$222 $— $219 
15.38%SF+10.00%Secured Debt(8)— — 748 4,545 78 539 4,084 
14.13%Preferred Member Units(8)— — — — — — — 
Preferred Member Units(8)— 1,356 — 3,504 1,356 — 4,860 
Warrants(8)— — — — — — — 
Brewer Crane Holdings, LLC15.46%L+10.00%Secured Debt(9)— — 899 5,964 30 496 5,498 
Preferred Member Units(9)— (1,460)120 7,080 — 1,460 5,620 
Café Brazil, LLCMember Units(8)— (230)149 2,210 — 230 1,980 
California Splendor Holdings LLC15.69%SF+10.00%Secured Debt(9)— (359)4,366 28,000 14 359 27,655 
Preferred Member Units(9)— (9,800)250 25,495 — 9,800 15,695 
15.00%15.00%Preferred Member Units(9)— — 607 3,994 607 — 4,601 
Clad-Rex Steel, LLC11.50%  Secured Debt (12)(5)— — 2 — — — — 
11.50%  Secured Debt(5)— (138)1,172 10,440 40 2,058 8,422 
10.00%Secured Debt(5)— — 104 1,039 1 36 1,004 
Member Units(5)— (3,020)275 8,220 — 3,020 5,200 
Member Units(5)— 220 — 610 519 — 1,129 
CMS Minerals InvestmentsMember Units(9)99 (366)44 1,670 99 1,769 — 
Cody Pools, Inc.12.50%Secured Debt (12)(8)— 11 14 — — — — 
12.50%Secured Debt(8)— 31 3,384 — 46,312 4,239 42,073 
L+10.50%Secured Debt(8)— (19)96 1,462 32 1,494 — 
L+10.50%Secured Debt(8)— (280)2,683 40,801 — 40,801 — 
Preferred Member Units(8)— 14,290 4,877 58,180 14,290 — 72,470 
CompareNetworks Topco, LLCSF+9.00%Secured Debt(9)— — — — — — — 
14.48%SF+9.00%Secured Debt(9)— (9)668 5,241 9 1,796 3,454 
Preferred Member Units(9)— (5,380)316 19,830 — 5,380 14,450 
Cybermedia Technologies, LLC10.00%Secured Debt (12)(6)— — 7 — — — — 
13.00%Secured Debt(6)— — 2,989 — 28,752 363 28,389 
Preferred Member Units(6)— — 163 — 15,000 — 15,000 
Datacom, LLC7.50%Secured Debt(8)— — 40 223 809 585 447 
10.00%Secured Debt(8)— (85)1,012 7,789 153 355 7,587 
Preferred Member Units(8)— (2,600)(96)2,670 — 2,600 70 
Direct Marketing Solutions, Inc.14.00%Secured Debt(9)— (29)91 — 1,304 71 1,233 
14.00%Secured Debt(9)— (59)3,687 27,267 59 1,783 25,543 
Preferred Stock(9)— (1,480)171 22,220 — 1,480 20,740 
Elgin AcquireCo, LLCSF+6.00%Secured Debt (12)(5)— — 9 (9)2 — (7)
12.00% Secured Debt(5)— — 2,322 18,594 38 — 18,632 
9.00% Secured Debt(5)— — 573 6,294 3 45 6,252 
190
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments In and Advances to Affiliates (Continued)
December 31, 2023
(dollars in thousands)
CompanyTotal RateBase RateSpreadPIK RateType of Investment(1) (10) (11)GeographyAmount of
Realized
Gain/(Loss)		Amount of
Unrealized
Gain/(Loss)		Amount of
Interest,
Fees or
Dividends
Credited to
Income(2)		December 31,
2022 Fair Value		Gross
Additions(3)		Gross
Reductions(4)		December 31,
2023 Fair Value (13)
Common Stock(5)— 364 — 7,603 364 1,877 6,090 
Common Stock(5)— 112 — 1,558 112 — 1,670 
Gamber-Johnson Holdings, LLCSF+7.50%Secured Debt (12)(5)— — 6 — — — — 
10.50%SF+7.50%Secured Debt(5)— (128)6,684 64,078 128 10,128 54,078 
Member Units(5)— 45,820 5,961 50,890 45,820 — 96,710 
GRT Rubber Technologies LLC11.48%SF+6.00%Secured Debt (12)(8)— 6 177 670 1,730 — 2,400 
13.48%SF+8.00%Secured Debt(8)— (47)5,428 40,493 47 47 40,493 
Member Units(8)— — 183 44,440 — — 44,440 
Gulf Publishing Holdings, LLCSF+9.50%Secured Debt (12)(8)— — — — — — — 
12.50%Secured Debt(8)— — 304 2,284 — — 2,284 
Preferred Equity(8)— (1,320)— 3,780 — 1,320 2,460 
Member Units(8)— — — — — — — 
IG Investor, LLCSecured Debt (12)(6)— — 98 — 765 800 (35)
13.00%Secured Debt(6)— — 3,428 — 37,374 440 36,934 
Common Equity(6)— — — — 15,096 696 14,400 
Jensen Jewelers of Idaho, LLCP+6.75%Secured Debt (12)(9)— — — — — — — 
15.25%P+6.75%Secured Debt(9)— (6)356 2,450 6 458 1,998 
Member Units(9)— (2,550)1,362 14,970 — 2,550 12,420 
Kickhaefer Manufacturing Company, LLC12.00%Secured Debt(5)— — 2,642 20,374 201 801 19,774 
9.00%Secured Debt(5)— — 349 3,842 2 39 3,805 
Preferred Equity(5)— 2,470 — 7,220 2,470 — 9,690 
Member Units(5)— (120)115 2,850 — 120 2,730 
Market Force Information, LLCL+11.00%Secured Debt(9)(6,662)163 453 6,090 804 6,894 — 
L+11.00%Secured Debt(9)(25,952)24,342 — 1,610 24,342 25,952 — 
Member Units(9)(16,642)16,642 — — 16,642 16,642 — 
Metalforming Holdings, LLC12.75%Secured Debt (12)(7)— — 11 — — — — 
12.75%Secured Debt(7)— — 3,092 23,576 47 — 23,623 
8.00%8.00%Preferred Equity(7)— — 505 6,010 473 448 6,035 
Common Stock(7)— (37)522 1,537 — 37 1,500 
MH Corbin Holding LLC13.00%Secured Debt(5)— 1,229 761 4,548 1,229 755 5,022 
Preferred Member Units(5)— 330 — — 330 — 330 
Preferred Member Units(5)— — — — — — — 
MSC Adviser I, LLCMember Units(8)— 51,133 11,310 122,930 51,133 — 174,063 
Mystic Logistics Holdings, LLCSecured Debt (12)(6)— — 4 — — — — 
10.00%Secured Debt(6)— — 583 5,746 — — 5,746 
Common Stock(6)— 3,560 4,523 22,830 3,560 — 26,390 
OMi Topco, LLC12.00%Secured Debt(8)— (48)1,824 15,750 48 3,048 12,750 
Preferred Member Units(8)— 13,570 2,700 22,810 13,570 — 36,380 
191
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments In and Advances to Affiliates (Continued)
December 31, 2023
(dollars in thousands)
CompanyTotal RateBase RateSpreadPIK RateType of Investment(1) (10) (11)GeographyAmount of
Realized
Gain/(Loss)		Amount of
Unrealized
Gain/(Loss)		Amount of
Interest,
Fees or
Dividends
Credited to
Income(2)		December 31,
2022 Fair Value		Gross
Additions(3)		Gross
Reductions(4)		December 31,
2023 Fair Value (13)
PPL RVs, Inc.SF+8.75%Secured Debt(8)— (2)2 — 2 2 — 
14.23%SF+8.75%Secured Debt(8)— (67)2,845 21,655 67 1,845 19,877 
Common Stock(8)— (1,970)(30)18,950 — 1,970 16,980 
Common Stock(8)— 130 — 238 130 — 368 
Principle Environmental, LLC13.00%Secured Debt(8)— — — — — — — 
13.00%Secured Debt(8)— — 801 5,806 23 — 5,829 
Preferred Member Units(8)— (1,670)743 12,420 — 1,670 10,750 
Common Stock(8)— (80)— 590 — 80 510 
Quality Lease Service, LLCMember Units(7)— (98)— 525 33 98 460 
Robbins Bros. Jewelry, Inc.12.50%  Secured Debt(9)— — 32 (35)9 — (26)
12.50%  Secured Debt(9)— (3,113)4,489 35,404 81 4,687 30,798 
Preferred Equity(9)— (14,880)— 14,880 — 14,880 — 
Trantech Radiator Topco, LLC8.00%Secured Debt (12)(7)— (3)7 — 3 3 — 
12.00%Secured Debt(7)— (18)982 7,920 18 18 7,920 
Common Stock(7)— 4,940 116 7,800 4,940 — 12,740 
Volusion, LLC10.00%Secured Debt(8)— — 161 — 2,100 — 2,100 
11.50%Secured Debt(8)(3,188)1,821 166 14,914 — 14,914 — 
8.00%Unsecured Convertible Debt(8)(409)409 — — 409 409 — 
Preferred Member Units(8)— — 2 — — — — 
Preferred Member Units(8)— (1,396)— — 11,446 4,196 7,250 
Preferred Member Units(8)— — — — — — — 
Common Stock(8)— (2,576)— — 2,576 2,576 — 
Warrants(8)— 2,576 — — — — — 
Ziegler’s NYPD, LLC12.00%Secured Debt(8)— — 55 450 — — 450 
6.50%Secured Debt(8)— — 66 945 — — 945 
14.00%Secured Debt(8)— (596)390 2,676 — 596 2,080 
Preferred Member Units(8)— (240)— 240 — 240 — 
Warrants(8)— — — — — — — 
Other controlled investments
2717 MH, L.P.LP Interests (2717 MH, L.P.)(8)2,222 (952)142 7,552 2,796 4,298 6,050 
LP Interests (2717 HPP-MS, L.P.) (12)(8)— 67 — 248 67 — 315 
ASC Interests, LLC13.00%Secured Debt(8)— — 54 400 — — 400 
13.00%Secured Debt(8)— (52)218 1,649 1 53 1,597 
Preferred Member Units(8)— 88 — — 266 — 266 
Member Units(8)— (700)— 800 — 700 100 
ATS Workholding, LLC5.00%Secured Debt(9)— (486)— 634 180 486 328 
5.00%Secured Debt(9)— (518)— 1,005 — 532 473 
Preferred Member Units(9)— — — — — — — 
192
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments In and Advances to Affiliates (Continued)
December 31, 2023
(dollars in thousands)
CompanyTotal RateBase RateSpreadPIK RateType of Investment(1) (10) (11)GeographyAmount of
Realized
Gain/(Loss)		Amount of
Unrealized
Gain/(Loss)		Amount of
Interest,
Fees or
Dividends
Credited to
Income(2)		December 31,
2022 Fair Value		Gross
Additions(3)		Gross
Reductions(4)		December 31,
2023 Fair Value (13)
Barfly Ventures, LLC7.00%Secured Debt (12)(5)— — 50 711 — — 711 
Member Units(5)— 820 1 3,320 820 — 4,140 
Batjer TopCo, LLC10.00%Secured Debt (12)(8)— 6 2 (8)8 — — 
10.00%Secured Debt (12)(8)— — 22 — 630 360 270 
10.00% Secured Debt(8)— 67 1,134 10,933 92 450 10,575 
Preferred Stock(8)— 2,055 686 4,095 2,055 — 6,150 
Bolder Panther Group, LLC14.48%SF+9.11%Secured Debt(9)— (141)14,208 99,194 141 2,779 96,556 
8.00%Class B Preferred Member Units(9)— (400)4,065 31,420 — 400 31,020 
Bridge Capital Solutions Corporation13.00%Secured Debt(6)— — 1,162 8,813 — — 8,813 
13.00%Secured Debt(6)— — 132 1,000 — — 1,000 
Preferred Member Units(6)— — 100 1,000 — — 1,000 
Warrants(6)— (21)— 1,828 — 20 1,808 
Warrants(6)— (29)— 2,512 — 30 2,482 
CBT Nuggets, LLCMember Units(9)— 1,130 2,902 49,002 1,128 — 50,130 
Centre Technologies Holdings, LLCSF+9.00%Secured Debt (12)(8)— — 12 — — — — 
14.48%SF+9.00%Secured Debt(8)— 62 2,315 14,954 2,620 — 17,574 
Preferred Member Units(8)— 2,340 120 8,700 2,340 — 11,040 
Chamberlin Holding LLCSF+6.00%Secured Debt (12)(8)— 195 45 — — — — 
13.49%SF+8.00%Secured Debt(8)— (7)2,203 16,945 7 1,332 15,620 
Member Units(8)— 6,400 4,182 22,920 6,400 — 29,320 
Member Units(8)— 150 92 2,710 150 — 2,860 
Charps, LLC10.00%Unsecured Debt(5)— (35)604 5,694 35 35 5,694 
Preferred Member Units(5)— 2,350 1,463 13,340 2,350 — 15,690 
Colonial Electric Company LLCSecured Debt(6)— — 52 — 1,600 1,600 — 
12.00%Secured Debt(6)— (319)1,804 23,151 55 1,579 21,627 
Preferred Member Units(6)— 1,440 — — 2,400 — 2,400 
Preferred Member Units(6)— (1,480)— 9,160 — 1,480 7,680 
Compass Systems & Sales, LLC13.50%Secured Debt(5)— — — — — — — 
13.50%Secured Debt(5)— — 608 — 17,034 — 17,034 
Preferred Equity(5)— — — — 7,454 — 7,454 
Copper Trail Fund InvestmentsLP Interests (CTMH, LP)(9)— — 38 588 — 20 568 
Digital Products Holdings LLC15.38%SF+10.00%Secured Debt(5)— (67)2,332 15,523 — 833 14,690 
Preferred Member Units(5)— — 200 9,835 — — 9,835 
Garreco, LLC9.50%SF+8.00%Secured Debt(8)— — 390 3,826 — 738 3,088 
Member Units(8)— (220)11 1,800 — 220 1,580 
Gulf Manufacturing, LLCMember Units(8)— 2,280 2,832 6,790 2,280 — 9,070 
Harrison Hydra-Gen, Ltd.Common Stock(8)— 1,380 — 3,280 1,380 — 4,660 
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments In and Advances to Affiliates (Continued)
December 31, 2023
(dollars in thousands)
CompanyTotal RateBase RateSpreadPIK RateType of Investment(1) (10) (11)GeographyAmount of
Realized
Gain/(Loss)		Amount of
Unrealized
Gain/(Loss)		Amount of
Interest,
Fees or
Dividends
Credited to
Income(2)		December 31,
2022 Fair Value		Gross
Additions(3)		Gross
Reductions(4)		December 31,
2023 Fair Value (13)
JorVet Holdings, LLC12.00%Secured Debt(9)— — 3,172 25,432 51 — 25,483 
Preferred Equity(9)— — 825 10,741 — — 10,741 
KBK Industries, LLC9.00%Secured Debt(5)— 38 562 — 6,000 1,300 4,700 
Member Units(5)— 7,200 9,614 15,570 7,200 — 22,770 
MS Private Loan Fund I, LP5.00%Secured Debt (12)(8)— — 25 — — — — 
LP Interests (12)(8)— (306)1,746 14,833 — 306 14,527 
MS Private Loan Fund II, LP8.88%SF+3.50%Secured Debt (12)(8)— — 515 — 23,367 — 23,367 
LP Interests (12)(8)— — — — 1,561 — 1,561 
MSC Income Fund, Inc.Common Equity(8)— 22 236 753 9,272 — 10,025 
NAPCO Precast, LLCMember Units(8)— (100)(40)11,830 — 100 11,730 
Nebraska Vet AcquireCo, LLCSF+7.00%Secured Debt (12)(5)— — 10 — — — — 
12.00% Secured Debt(5)— (1)2,910 20,094 5,701 1 25,794 
12.00% Secured Debt(5)— (22)1,299 10,500 22 22 10,500 
Preferred Member Units(5)— 7,320 591 7,700 7,320 — 15,020 
NexRev LLC10.00% Secured Debt (12)(8)— — — — — — — 
10.00% Secured Debt(8)— 2,859 1,143 8,477 2,928 1,654 9,751 
Preferred Member Units(8)— 5,240 665 1,110 5,240 — 6,350 
NRP Jones, LLC12.00%Secured Debt(5)— — 253 2,080 — — 2,080 
Member Units(5)— (3,148)23 4,615 — 3,149 1,466 
Member Units(5)— (122)— 175 — 122 53 
NuStep, LLC11.98%SF+6.50%Secured Debt(5)— — 474 4,399 — 799 3,600 
12.00% Secured Debt(5)— — 2,256 18,414 12 — 18,426 
Preferred Member Units(5)— 1,200 — 8,040 1,200 — 9,240 
Preferred Member Units(5)— — — 5,150 — — 5,150 
Orttech Holdings, LLCSF+11.00%Secured Debt (12)(5)— — — — — — — 
16.48%SF+11.00%Secured Debt(5)— 115 3,765 23,429 171 1,560 22,040 
Preferred Stock(5)— 5,300 1,094 11,750 5,300 — 17,050 
Pearl Meyer Topco LLC12.00%Secured Debt (12)(6)— 3 370 — 3,500 — 3,500 
12.00%Secured Debt(6)— 44 1,552 — 20,000 — 20,000 
12.00%Secured Debt(6)— (65)3,450 28,681 65 1,065 27,681 
Preferred Equity(6)— 830 12,110 43,260 830 — 44,090 
Pinnacle TopCo, LLC8.00%Secured Debt (12)(8)— — 26 — 444 — 444 
13.00%Secured Debt(8)— — 586 — 30,339 — 30,339 
Preferred Equity(8)— — — — 12,540 — 12,540 
River Aggregates, LLCMember Units(8)— 90 — 3,620 90 — 3,710 
Tedder Industries, LLC12.00%Secured Debt(9)— (114)224 1,840 — 114 1,726 
12.00%Secured Debt(9)— (867)1,858 15,120 8 866 14,262 
Preferred Member Units(9)— (7,681)— 7,681 — 7,681 — 
194
Table of contents                                  Schedule 12-14
MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments In and Advances to Affiliates (Continued)
December 31, 2023
(dollars in thousands)
CompanyTotal RateBase RateSpreadPIK RateType of Investment(1) (10) (11)GeographyAmount of
Realized
Gain/(Loss)		Amount of
Unrealized
Gain/(Loss)		Amount of
Interest,
Fees or
Dividends
Credited to
Income(2)		December 31,
2022 Fair Value		Gross
Additions(3)		Gross
Reductions(4)		December 31,
2023 Fair Value (13)
Preferred Member Units(9)— (564)— — 494 494 — 
Preferred Member Units(9)— (661)— — 661 661 — 
Televerde, LLCMember Units(8)— (674)333 5,408 — 674 4,734 
Preferred Stock(8)— — — 1,794 — — 1,794 
Vision Interests, Inc.Series A Preferred Stock(9)— — 168 3,000 — — 3,000 
VVS Holdco LLCSF+6.00%Secured Debt (12)(5)— — 39 (21)21 — — 
11.50%Secured Debt(5)— — 3,468 30,161 74 2,200 28,035 
Preferred Equity(5)— (100)215 11,940 400 100 12,240 
— — — — — — — 
— — — — — — — 
Other— — — — — — — 
Amounts related to investments transferred to or from other 1940 Act classification during the period— 1,308 1,469 625 21,493 1,454 — 
Total Control investments$(50,532)$161,793 $197,150 $1,703,172 $568,452 $244,262 $2,006,698 
Affiliate Investments
423 HAR, LPLP Interests (423 HAR, L.P.)(8)$— $247 $— $— $996 $— $996 
AAC Holdings, Inc.18.00%18.00%Secured Debt (12)(7)— (1)65 — 418 — 418 
18.00%18.00%Secured Debt(7)— (37)2,382 11,550 2,382 37 13,895 
Common Stock(7)— — — — — — — 
Warrants(7)— — — — — — — 
AFG Capital Group, LLCPreferred Member Units(8)7,200 (8,200)— 9,400 7,200 16,600 — 
ATX Networks Corp.L+7.50%Secured Debt(6)— (134)886 6,343 575 6,918 — 
10.00%Unsecured Debt(6)— (306)1,160 2,598 1,160 3,758 — 
Common Stock(6)3,248 (3,270)— 3,270 3,248 6,518 — 
BBB Tank Services, LLCL+11.00%Unsecured Debt(8)— — 102 800 — 800 — 
L+11.00%Unsecured Debt(8)(1,400)1,914 539 2,086 1,914 4,000 — 
Member Units(8)(800)800 — — 800 800 — 
15.00%Preferred Stock (non-voting)(8)(162)162 — — 162 162 — 
Boccella Precast Products LLC10.00%Secured Debt(6)— — 32 320 — — 320 
Member Units(6)— (980)122 2,970 — 980 1,990 
Buca C, LLC12.00% Secured Debt(7)— 183 2,188 12,337 183 376 12,144 
6.00%6.00%Preferred Member Units(7)— — — — — — — 
Career Team Holdings, LLC11.38%SF+6.00%Secured Debt (12)(6)— — 40 (9)1,340 450 881 
13.00% Secured Debt(6)— — 2,612 20,090 41 225 19,906 
Common Stock(6)— — — 4,500 — — 4,500 
Chandler Signs Holdings, LLCClass A Units(8)1,797 (290)60 1,790 1,797 3,587 — 
Classic H&G Holdings, LLC11.69%SF+6.00%Secured Debt (12)(6)— — 537 4,560 — — 4,560 
8.00% Secured Debt(6)— (43)1,606 19,274 43 43 19,274 
195
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments In and Advances to Affiliates (Continued)
December 31, 2023
(dollars in thousands)
CompanyTotal RateBase RateSpreadPIK RateType of Investment(1) (10) (11)GeographyAmount of
Realized
Gain/(Loss)		Amount of
Unrealized
Gain/(Loss)		Amount of
Interest,
Fees or
Dividends
Credited to
Income(2)		December 31,
2022 Fair Value		Gross
Additions(3)		Gross
Reductions(4)		December 31,
2023 Fair Value (13)
Preferred Member Units(6)— (8,639)5,354 24,637 — 8,637 16,000 
Congruent Credit Opportunities FundsLP Interests (Congruent Credit Opportunities Fund III, LP)(8)— 13 443 7,657 13 3,318 4,352 
DMA Industries, LLC12.00% Secured Debt(7)— (49)2,518 21,200 49 2,449 18,800 
Preferred Equity(7)— 400 — 7,260 400 — 7,660 
Dos Rios PartnersLP Interests (Dos Rios Partners, LP)(8)759 (539)— 9,127 759 1,443 8,443 
LP Interests (Dos Rios Partners - A, LP)(8)241 (221)— 2,898 241 508 2,631 
Dos Rios Stone Products LLCClass A Preferred Units(8)— 250 — 1,330 250 — 1,580 
EIG Fund InvestmentsLP Interests (EIG Global Private Debt Fund-A, L.P.)(8)33 — 89 1,013 176 429 760 
Flame King Holdings, LLCL+6.50%Secured Debt(9)— (60)484 7,600 60 7,660 — 
L+9.00%Secured Debt(9)— (162)1,583 21,200 162 21,362 — 
Preferred Equity(9)— 10,320 3,257 17,580 10,320 — 27,900 
Freeport Financial SBIC Fund LPLP Interests (Freeport Financial SBIC Fund LP) (12)(5)— 177 — 3,483 177 648 3,012 
LP Interests (Freeport First Lien Loan Fund III LP) (12)(5)— — 598 5,848 — 2,144 3,704 
GFG Group, LLC8.00% Secured Debt(5)— (33)988 11,345 33 2,033 9,345 
Preferred Member Units(5)— 4,320 802 7,140 4,320 — 11,460 
Hawk Ridge Systems, LLC11.65%SF+6.00%Secured Debt(9)— (1)317 3,185 6,037 7,248 1,974 
12.50%Secured Debt(9)— (4)5,094 37,800 7,460 4 45,256 
Preferred Member Units(9)— — 293 17,460 — — 17,460 
Preferred Member Units(9)— — — 920 — — 920 
Houston Plating and Coatings, LLC8.00%Unsecured Convertible Debt(8)— (120)243 3,000 — 120 2,880 
Member Units(8)— 940 84 2,400 940 — 3,340 
HPEP 3, L.P.LP Interests (HPEP 3, L.P.) (12)(8)— 156 4 4,331 403 509 4,225 
LP Interests (HPEP 4, L.P.) (12)(8)— — — 2,332 1,441 — 3,773 
LP Interests (423 COR, L.P.) (12)(8)— 469 130 1,400 469 — 1,869 
I-45 SLF LLC
Member Units (Fully diluted 20.0%; 21.75% profits interest)
(8)— 532 2,317 11,758 1,732 — 13,490 
Independent Pet Partners Intermediate Holdings, LLCCommon Equity(6)— (610)— — 18,300 610 17,690 
Infinity X1 Holdings, LLC13.00%Secured Debt(9)— — 1,985 — 17,853 450 17,403 
Preferred Equity(9)— — 125 — 4,000 — 4,000 
Integral Energy Services13.16%SF+7.50%Secured Debt(8)— (674)2,374 15,769 80 1,958 13,891 
10.00%10.00%Preferred Equity(8)— 73 — — 300 — 300 
Common Stock(8)— (1,120)43 1,280 — 1,120 160 
Iron-Main Investments, LLC13.50%Secured Debt(5)— — 622 4,500 7 20 4,487 
13.50%Secured Debt(5)— — 547 3,130 6 214 2,922 
13.50%Secured Debt(5)— — 1,217 8,944 — — 8,944 
196
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments In and Advances to Affiliates (Continued)
December 31, 2023
(dollars in thousands)
CompanyTotal RateBase RateSpreadPIK RateType of Investment(1) (10) (11)GeographyAmount of
Realized
Gain/(Loss)		Amount of
Unrealized
Gain/(Loss)		Amount of
Interest,
Fees or
Dividends
Credited to
Income(2)		December 31,
2022 Fair Value		Gross
Additions(3)		Gross
Reductions(4)		December 31,
2023 Fair Value (13)
13.50%Secured Debt(5)— — 2,706 19,559 32 88 19,503 
13.50%Secured Debt(5)— — 1,806 — 10,911 638 10,273 
Common Stock(5)— (76)— 1,798 958 76 2,680 
ITA Holdings Group, LLC16.59%SF+9.00%2.00%Secured Debt (12)(8)— — 20 — 816 — 816 
16.59%SF+9.00%2.00%Secured Debt (12)(8)— — 34 — 697 — 697 
15.59%SF+8.00%2.00%Secured Debt(8)— — 560 — 3,430 — 3,430 
17.59%SF+10.00%2.00%Secured Debt(8)— — 607 — 3,430 — 3,430 
Warrants(8)— — — — 2,091 — 2,091 
Johnson Downie Opco, LLC15.00%Secured Debt (12)(8)— 3 24 — — — — 
15.00%Secured Debt(8)— 63 1,888 9,999 14,850 642 24,207 
Preferred Equity(8)— 3,595 189 5,540 4,080 — 9,620 
OnAsset Intelligence, Inc.12.00%12.00%Secured Debt(8)— (243)— 569 — 243 326 
12.00%12.00%Secured Debt(8)— (248)— 580 — 248 332 
12.00%12.00%Secured Debt(8)— (533)— 1,249 — 533 716 
12.00%12.00%Secured Debt(8)— (1,112)— 2,606 — 1,113 1,493 
10.00%10.00%Unsecured Debt(8)— — — 305 — — 305 
7.00%7.00%Preferred Stock(8)— — — — — — — 
Common Stock(8)— — — — — — — 
Warrants(8)— — — — — — — 
Oneliance, LLCSF+11.00%Secured Debt(7)— — — — — — — 
16.48%SF+11.00%Secured Debt(7)— (61)914 5,559 12 221 5,350 
Preferred Stock(7)— — — 1,056 72 — 1,128 
Quality Lease Service, LLC12.00%Secured Debt(8)(29,526)29,865 — — 29,865 29,865 — 
Preferred Member Units(8)— — — — — — — 
SI East, LLC11.25%Secured Debt (12)(7)— 17 83 — 1,875 750 1,125 
12.47%Secured Debt(7)— 241 4,075 — 54,536 — 54,536 
9.50%Secured Debt(7)— (79)3,885 89,786 — 89,786 — 
Preferred Member Units(7)— 5,213 1,196 13,650 5,520 — 19,170 
Slick Innovations, LLC14.00%Secured Debt(6)— (48)1,887 13,840 48 2,448 11,440 
Common Stock(6)— 780 — 1,530 780 — 2,310 
Student Resource Center, LLC8.50%8.50%Secured Debt(6)(2)(1,694)329 4,556 221 1,587 3,190 
Preferred Equity(6)— — — — — — — 
Superior Rigging & Erecting Co.12.00%Secured Debt(7)— — 2,564 21,378 49 1,000 20,427 
Preferred Member Units(7)— 1,440 — 4,500 1,440 — 5,940 
The Affiliati Network, LLC13.00%Secured Debt(9)— — 30 106 2,764 2,720 150 
13.00%Secured Debt(9)— (129)1,176 9,442 34 2,129 7,347 
Preferred Stock(9)— — 188 6,400 — — 6,400 
Preferred Stock(9)— — — — 172 — 172 
197
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments In and Advances to Affiliates (Continued)
December 31, 2023
(dollars in thousands)
CompanyTotal RateBase RateSpreadPIK RateType of Investment(1) (10) (11)GeographyAmount of
Realized
Gain/(Loss)		Amount of
Unrealized
Gain/(Loss)		Amount of
Interest,
Fees or
Dividends
Credited to
Income(2)		December 31,
2022 Fair Value		Gross
Additions(3)		Gross
Reductions(4)		December 31,
2023 Fair Value (13)
UnionRock Energy Fund II, LPLP Interests (12)(9)— (146)53 5,855 531 692 5,694 
UnionRock Energy Fund III, LPLP Interests (12)(9)— 345 — — 2,838 — 2,838 
UniTek Global Services, Inc.15.00%15.00%Secured Convertible Debt(6)— (13)312 4,592 — 703 3,889 
15.00%15.00%Secured Convertible Debt(6)(223)1,067 66 — 2,131 223 1,908 
SF+7.50%Secured Debt(6)— 22 — 382 25 407 — 
SF+7.50%Secured Debt(6)— 96 275 1,712 112 1,824 — 
20.00%20.00%Preferred Stock(6)— (468)468 2,833 468 468 2,833 
20.00%20.00%Preferred Stock(6)— 1,707 — 1,991 1,707 — 3,698 
19.00%19.00%Preferred Stock(6)— — — — — — — 
13.50%13.50%Preferred Stock(6)— — — — — — — 
Common Stock(6)— — — — — — — 
Universal Wellhead Services Holdings, LLC14.00%14.00%Preferred Member Units(8)— (70)— 220 — 70 150 
Member Units(8)— — — — — — — 
World Micro Holdings, LLC13.00%Secured Debt(7)— — 1,895 14,140 45 2,157 12,028 
 Preferred Equity(7)— — 226 3,845 — — 3,845 
Other— — — — — — — 
Amounts related to investments transferred to or from other 1940 Act classification during the period106 (1,308)(1,469)(625)1,454 21,493 — 
Total Affiliate investments$(18,729)$33,689 $69,829 $618,359 $246,241 $270,262 $615,002 
______________________
(1)The principal amount, the ownership detail for equity investments and if the investment is income producing is included in the Consolidated Schedule of Investments included in Item 8. Consolidated Financial Statements of this Annual Report on Form 10-K.
(2)Represents the total amount of interest, fees and dividends credited to income for the portion of the period for which an investment was included in Control or Affiliate categories, respectively. For investments transferred between Control and Affiliate categories during the period, any income or investment balances related to the time period it was in the category other than the one shown at period end is included in “Amounts related to investments transferred from other 1940 Act classifications during the period.”
(3)Gross additions include increases in the cost basis of investments resulting from new portfolio investments, follow-on investments and accrued PIK interest, and the exchange of one or more existing securities for one or more new securities. Gross additions also include net increases in unrealized appreciation or net decreases in net unrealized depreciation as well as the movement of an existing portfolio company into this category and out of a different category.
(4)Gross reductions include decreases in the cost basis of investments resulting from principal repayments or sales and the exchange of one or more existing securities for one or more new securities. Gross reductions also include net increases in net unrealized depreciation or net decreases in unrealized appreciation as well as the movement of an existing portfolio company out of this category and into a different category.
198
Table of contents                                  Schedule 12-14
MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments In and Advances to Affiliates (Continued)
December 31, 2023
(dollars in thousands)
(5)Portfolio company located in the Midwest region as determined by location of the corporate headquarters. The fair value as of December 31, 2023 for control investments located in this region was $513,943. This represented 20.7% of net assets as of December 31, 2023. The fair value as of December 31, 2023 for affiliate investments located in this region was $76,330. This represented 3.1% of net assets as of December 31, 2023.
(6)Portfolio company located in the Northeast region and Canada as determined by location of the corporate headquarters. The fair value as of December 31, 2023 for control investments located in this region was $268,905. This represented 10.9% of net assets as of December 31, 2023. The fair value as of December 31, 2023 for affiliate investments located in this region was $114,389. This represented 4.6% of net assets as of December 31, 2023.
(7)Portfolio company located in the Southeast region as determined by location of the corporate headquarters. The fair value as of December 31, 2023 for control investments located in this region was $52,278. This represented 2.1% of net assets as of December 31, 2023. The fair value as of December 31, 2023 for affiliate investments located in this region was $176,466. This represented 7.1% of net assets as of December 31, 2023.
(8)Portfolio company located in the Southwest region as determined by location of the corporate headquarters. The fair value as of December 31, 2023 for control investments located in this region was $767,606. This represented 31.0% of net assets as of December 31, 2023. The fair value as of December 31, 2023 for affiliate investments located in this region was $110,303. This represented 4.5% of net assets as of December 31, 2023.
(9)Portfolio company located in the West region as determined by location of the corporate headquarters. The fair value as of December 31, 2023 for control investments located in this region was $403,966. This represented 16.3% of net assets as of December 31, 2023. The fair value as of December 31, 2023 for affiliate investments located in this region was $137,514. This represented 5.6% of net assets as of December 31, 2023.
(10)All of the Company’s portfolio investments are generally subject to restrictions on resale as “restricted securities,” unless otherwise noted.
(11)This schedule should be read in conjunction with the Consolidated Schedule of Investments and Notes to the Consolidated Financial Statements included in Item 8. Consolidated Financial Statements of this Annual Report on Form 10-K. Supplemental information can be located within the Consolidated Schedule of Investments including end of period interest rate, preferred dividend rate, maturity date, investments not paid currently in cash and investments whose value was determined using significant unobservable inputs.
(12)Investment has an unfunded commitment as of December 31, 2023 (see Note K — Commitments and Contingencies in Item 8. Consolidated Financial Statements of this Annual Report on Form 10-K). The fair value of the investment includes the impact of the fair value of any unfunded commitments.

(13)Negative fair value is the result of the capitalized discount being greater than the principal amount outstanding on the loan.
199
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments In and Advances to Affiliates
December 31, 2022
(dollars in thousands)


CompanyTotal RateBase RateSpreadPIK RateType of Investment(1)(10)(11)GeographyAmount of
Realized
Gain/(Loss)		Amount of
Unrealized
Gain/(Loss)		Amount of
Interest,
Fees or
Dividends
Credited to
Income(2)		December 31,
2021
Fair Value		Gross
Additions(3)		Gross
Reductions(4)		December 31,
2022
Fair Value (13)
Majority-owned investments
Analytical Systems Keco Holdings, LLCL+10.00%Secured Debt(8)$— $— $6 $(4)$1 $— $(3)
14.13%L+10.00%Secured Debt(8)— — 690 4,740 85 280 4,545 
14.13%Preferred Member Units(8)— — — — — — — 
Preferred Member Units(8)— (1,390)— 4,894 — 1,390 3,504 
Warrants(8)— — — — — — — 
Brewer Crane Holdings, LLC14.12%L+10.00%Secured Debt(9)— — 862 8,037 23 2,096 5,964 
Preferred Member Units(9)— (630)828 7,710 — 630 7,080 
Café Brazil, LLCMember Units(8)— (360)178 2,570 — 360 2,210 
California Splendor Holdings LLC13.75%L+10.00%Secured Debt(9)— 49 3,454 27,915 85 — 28,000 
Preferred Member Units(9)— 12,220 250 13,275 12,220 — 25,495 
15.00%15.00%Preferred Member Units(9)— — 933 9,510 933 6,449 3,994 
Clad-Rex Steel, LLCSF+9.00%Secured Debt(5)— — 4 — — — — 
13.23%SF+9.00%Secured Debt(5)— — 1,255 10,401 39 — 10,440 
10.00%Secured Debt(5)— — 107 1,071 1 33 1,039 
Member Units(5)— (2,030)758 10,250 — 2,030 8,220 
Member Units(5)— 80 — 530 80 — 610 
CMS Minerals InvestmentsMember Units(9)— 230 198 1,974 230 534 1,670 
Cody Pools, Inc.15.38%L+10.50%Secured Debt(8)— 19 119 (13)4,971 3,496 1,462 
15.38%L+10.50%Secured Debt(8)— (86)5,615 42,497 86 1,782 40,801 
Preferred Member Units(8)— 10,540 4,015 47,640 10,540 — 58,180 
CompareNetworks Topco, LLCL+9.00%Secured Debt(9)— — — — — — — 
13.13%L+9.00%Secured Debt(9)— (16)642 6,477 16 1,252 5,241 
Preferred Member Units(9)— 7,830 632 12,000 7,830 — 19,830 
Datacom, LLC7.50%Secured Debt(8)— — 4 — 223 — 223 
7.50%Secured Debt(8)— 228 829 7,668 391 270 7,789 
Preferred Member Units(8)— 60 96 2,610 60 — 2,670 
Direct Marketing Solutions, Inc.L+11.00%Secured Debt(9)— 88 235 (22)4,272 4,250 — 
15.13%L+11.00%Secured Debt(9)— 145 327 — 27,267 — 27,267 
200
Table of contents                                  Schedule 12-14
MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments In and Advances to Affiliates (Continued)
December 31, 2022
(dollars in thousands)
CompanyTotal RateBase RateSpreadPIK RateType of Investment(1)(10)(11)GeographyAmount of
Realized
Gain/(Loss)		Amount of
Unrealized
Gain/(Loss)		Amount of
Interest,
Fees or
Dividends
Credited to
Income(2)		December 31,
2021
Fair Value		Gross
Additions(3)		Gross
Reductions(4)		December 31,
2022
Fair Value (13)
L+11.00%Secured Debt(9)— (137)2,953 24,070 — 24,070 — 
Preferred Stock(9)— 3,870 1,371 18,350 3,870 — 22,220 
Elgin AcquireCo, LLCSF+6.00%Secured Debt(5)— — 2 — — 9 (9)
12.00%Secured Debt(5)— — 948 — 18,594 — 18,594 
9.00%Secured Debt(5)— — 144 — 6,301 7 6,294 
Common Stock(5)— — — — 9,668 2,065 7,603 
Common Stock(5)— — — — 1,558 — 1,558 
Gamber-Johnson Holdings, LLCSF+8.50%Secured Debt(5)— — 6 — — — — 
11.50%SF+8.50%Secured Debt(5)— 393 1,152 — 64,078 — 64,078 
L+7.50%Secured Debt(5)— (63)2,233 21,598 — 21,598 — 
Member Units(5)— 1,190 895 49,700 1,190 — 50,890 
GRT Rubber Technologies LLC10.12%L+6.00%Secured Debt(8)— — 25 — 670 — 670 
12.12%L+8.00%Secured Debt(8)— (33)3,973 38,885 1,641 33 40,493 
Member Units(8)— (1,750)2,525 46,190 — 1,750 44,440 
Gulf Publishing Holdings, LLCL+9.50%Secured Debt(8)— — 7 257 — 257 — 
6.25%Secured Debt(8)(5,822)3,848 503 9,717 — 9,717 — 
12.50%Secured Debt(8)— (116)77 — 2,400 116 2,284 
Member Units(8)— — — — — — — 
Preferred Equity(8)— (1,820)— — 5,600 1,820 3,780 
Jensen Jewelers of Idaho, LLCP+6.75%Secured Debt(9)— — 3 — — — — 
13.75%P+6.75%Secured Debt(9)— (8)292 2,550 8 108 2,450 
Member Units(9)— 2,550 2,784 12,420 2,550 — 14,970 
Kickhaefer Manufacturing Company, LLC11.50%Secured Debt(5)— — 2,430 20,324 50 — 20,374 
9.00%Secured Debt(5)— — 352 3,876 2 36 3,842 
Preferred Equity(5)— (5,090)— 12,310 — 5,090 7,220 
Member Units(5)— 390 113 2,460 390 — 2,850 
Market Force Information, LLC15.13%L+11.00%Secured Debt(9)— (163)592 3,400 2,853 163 6,090 
12.00%12.00%Secured Debt(9)— (7,325)— 8,936 — 7,326 1,610 
Member Units(9)— — — — — — — 
Metalforming Holdings, LLCSecured Debt(7)— — 16 — — — — 
201
Table of contents                                  Schedule 12-14
MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments In and Advances to Affiliates (Continued)
December 31, 2022
(dollars in thousands)
CompanyTotal RateBase RateSpreadPIK RateType of Investment(1)(10)(11)GeographyAmount of
Realized
Gain/(Loss)		Amount of
Unrealized
Gain/(Loss)		Amount of
Interest,
Fees or
Dividends
Credited to
Income(2)		December 31,
2021
Fair Value		Gross
Additions(3)		Gross
Reductions(4)		December 31,
2022
Fair Value (13)
12.75%Secured Debt(7)— — 1,143 — 23,576 — 23,576 
8.00%8.00%Preferred Equity(7)— — 95 — 6,010 — 6,010 
Common Stock(7)— — — — 1,537 — 1,537 
MH Corbin Holding LLC13.00%Secured Debt(5)— 699 999 5,934 708 2,094 4,548 
Preferred Member Units(5)— — — — — — — 
Preferred Member Units(5)— — — — — — — 
MSC Adviser I, LLCMember Units(8)— (17,470)9,297 140,400 — 17,470 122,930 
Mystic Logistics Holdings, LLCSecured Debt(6)— — 4 — — — — 
10.00%Secured Debt(6)— (1)607 6,378 1 633 5,746 
Common Stock(6)— 13,990 4,202 8,840 13,990 — 22,830 
OMi Topco, LLC12.00%Secured Debt(8)— (53)2,135 18,000 53 2,303 15,750 
Preferred Member Units(8)— 2,600 2,154 20,210 2,600 — 22,810 
PPL RVs, Inc.L+7.00%Secured Debt(8)— 9 79 727 1,273 2,000 — 
10.25%L+7.00%Secured Debt(8)— 247 1,714 11,655 10,000 — 21,655 
Common Stock(8)— 4,590 1,627 14,360 4,590 — 18,950 
Common Stock(8)— — — — 238 — 238 
Principle Environmental, LLCSecured Debt(8)— — 104 1,465 9 1,474 — 
13.00%Secured Debt(8)— — 804 5,808 24 26 5,806 
Preferred Member Units(8)— 1,260 1,355 11,160 1,260 — 12,420 
Common Stock(8)— (120)— 710 — 120 590 
Quality Lease Service, LLCMember Units(7)— 76 — 2,148 77 1,700 525 
Robbins Bros. Jewelry, Inc. Secured Debt(9)— — 32 (44)9 — (35)
12.50% Secured Debt(9)— — 4,678 36,000 78 674 35,404 
Preferred Equity(9)— 3,810 558 11,070 3,810 — 14,880 
Trantech Radiator Topco, LLCSecured Debt(7)— 5 7 (8)8 — — 
12.00%Secured Debt(7)— (23)1,044 8,720 23 823 7,920 
Common Stock(7)— (860)116 8,660 — 860 7,800 
Ziegler’s NYPD, LLC12.00%Secured Debt(8)— — 71 625 — 175 450 
6.50%Secured Debt(8)— (55)66 1,000 — 55 945 
14.00%Secured Debt(8)— (74)390 2,750 — 74 2,676 
Preferred Member Units(8)— (1,890)— 2,130 — 1,890 240 
Warrants(8)— — — — — — — 
Other controlled investments
2717 MH, L.P.LP Interests (2717 MH, L.P.)(8)— 2,389 — 3,971 3,581 — 7,552 
202
Table of contents                                  Schedule 12-14
MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments In and Advances to Affiliates (Continued)
December 31, 2022
(dollars in thousands)
CompanyTotal RateBase RateSpreadPIK RateType of Investment(1)(10)(11)GeographyAmount of
Realized
Gain/(Loss)		Amount of
Unrealized
Gain/(Loss)		Amount of
Interest,
Fees or
Dividends
Credited to
Income(2)		December 31,
2021
Fair Value		Gross
Additions(3)		Gross
Reductions(4)		December 31,
2022
Fair Value (13)
LP Interests (2717 HPP-MS, L.P.)(8)— — — — 248 — 248 
ASC Interests, LLC13.00%Secured Debt(8)— — 36 200 230 30 400 
13.00%Secured Debt(8)— — 266 1,636 13 — 1,649 
Member Units(8)— 80 — 720 80 — 800 
ATS Workholding, LLC5.00%Secured Debt(9)— (620)— 1,088 188 642 634 
5.00%Secured Debt(9)— (869)— 1,917 — 912 1,005 
Preferred Member Units(9)— — — — — — — 
Barfly Ventures, LLC7.00%Secured Debt(5)— — 51 710 1 — 711 
Member Units(5)— 1,390 — 1,930 1,390 — 3,320 
Batjer TopCo, LLCSecured Debt(8)— — 5 — 451 459 (8)
Secured Debt(8)— — — — — — — 
11.00%Secured Debt(8)— — 1,139 — 10,933 — 10,933 
  Preferred Stock(8)— — 631 — 4,095 — 4,095 
Bolder Panther Group, LLCSecured Debt(9)— — 23 — — — — 
13.39%SF+9.26%Secured Debt(9)— 305 9,164 39,000 60,194 — 99,194 
Class A Preferred Member Units(9)— — 2,466 10,194 — 10,194 — 
8.00%Class B Preferred Member Units(9)— 8,250 1,210 23,170 8,250 — 31,420 
Bridge Capital Solutions Corporation13.00%Secured Debt(6)— — 1,162 8,813 — — 8,813 
13.00%Secured Debt(6)— — 132 1,000 — — 1,000 
Preferred Member Units(6)— — 100 1,000 — — 1,000 
Warrants(6)— 117 — 1,712 116 — 1,828 
Warrants(6)— 163 — 2,348 164 — 2,512 
CBT Nuggets, LLC  Member Units(9)— (1,620)3,305 50,620 — 1,618 49,002 
Centre Technologies Holdings, LLCL+9.00%Secured Debt(8)— — 28 — 1,440 1,440 — 
13.13%L+9.00%Secured Debt(8)— 507 1,767 8,864 6,476 386 14,954 
  Preferred Member Units(8)— 2,578 120 5,840 2,860 — 8,700 
Chamberlin Holding LLCL+6.00%Secured Debt(8)— — 8 — — — — 
12.13%L+8.00%Secured Debt(8)— (68)1,845 17,817 68 940 16,945 
Member Units(8)— (1,220)1,853 24,140 — 1,220 22,920 
Member Units(8)— 719 78 1,540 1,170 — 2,710 
Charps, LLC10.00%Unsecured Debt(5)— (44)613 5,694 44 44 5,694 
Preferred Member Units(5)— (650)764 13,990 — 650 13,340 
203
Table of contents                                  Schedule 12-14
MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments In and Advances to Affiliates (Continued)
December 31, 2022
(dollars in thousands)
CompanyTotal RateBase RateSpreadPIK RateType of Investment(1)(10)(11)GeographyAmount of
Realized
Gain/(Loss)		Amount of
Unrealized
Gain/(Loss)		Amount of
Interest,
Fees or
Dividends
Credited to
Income(2)		December 31,
2021
Fair Value		Gross
Additions(3)		Gross
Reductions(4)		December 31,
2022
Fair Value (13)
Colonial Electric Company LLCSecured Debt(6)— — 48 — 1,600 1,600 — 
12.00%Secured Debt(6)— — 2,953 24,351 60 1,260 23,151 
  Preferred Member Units(6)— 30 1,397 9,130 30 — 9,160 
Copper Trail Fund InvestmentsLP Interests (CTMH, LP)(9)— — — 710 — 122 588 
Digital Products Holdings LLC14.13%L+10.00%Secured Debt(5)— — 1,991 16,801 43 1,321 15,523 
  Preferred Member Units(5)— — 200 9,835 — — 9,835 
Garreco, LLC9.50%L+8.00%Secured Debt(8)— — 383 4,196 — 370 3,826 
  Member Units(8)— (470)240 2,270 — 470 1,800 
Gulf Manufacturing, LLC Member Units(8)— 1,150 1,715 5,640 1,150 — 6,790 
Harrison Hydra-Gen, Ltd.  Common Stock(8)— (250)— 3,530 — 250 3,280 
Johnson Downie Opco, LLCL+11.50%Secured Debt(8)— 14 13 (18)18 — — 
15.63%L+11.50%Secured Debt(8)— 79 1,503 11,362 114 1,477 9,999 
Preferred Equity(8)— 2,390 1,062 3,150 2,390 — 5,540 
JorVet Holdings, LLC12.00%Secured Debt(9)— — 2,680 — 25,432 — 25,432 
Preferred Equity(9)— — 922 — 10,741 — 10,741 
KBK Industries, LLCMember Units(5)— 1,950 1,671 13,620 1,950 — 15,570 
MS Private Loan Fund I, LPSecured Debt(8)— — 28 — 5,300 5,300 — 
Secured Debt(8)— — 431 63,151 13,700 76,851 — 
LP Interests(8)— 502 742 2,581 12,252 — 14,833 
MSC Income Fund, Inc.Common Equity(8)— 3 30 — 753 — 753 
NAPCO Precast, LLCMember Units(8)— (1,730)4 13,560 — 1,730 11,830 
Nebraska Vet AcquireCo, LLCL+7.00%Secured Debt(5)— — 10 — — — — 
12.00%Secured Debt(5)— 122 1,778 4,829 15,265 — 20,094 
12.00%Secured Debt(5)— 66 1,299 10,412 88 — 10,500 
Preferred Member Units(5)— — — 7,700 — — 7,700 
NexRev LLCSecured Debt(8)— — 29 800 — 800 — 
11.00%Secured Debt(8)— (729)1,923 13,245 — 4,768 8,477 
Preferred Member Units(8)— (2,913)81 2,690 1,333 2,913 1,110 
NRP Jones, LLC12.00%Secured Debt(5)— — 253 2,080 — — 2,080 
Member Units(5)— (1,585)578 6,200 — 1,585 4,615 
  Member Units(5)— (65)17 240 — 65 175 
NuStep, LLC10.63%L+6.50%Secured Debt(5)— — 323 1,720 2,679 — 4,399 
12.00%Secured Debt(5)— (4)2,180 17,240 1,178 4 18,414 
  Preferred Member Units(5)— (5,460)— 13,500 — 5,460 8,040 
204
Table of contents                                  Schedule 12-14
MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments In and Advances to Affiliates (Continued)
December 31, 2022
(dollars in thousands)
CompanyTotal RateBase RateSpreadPIK RateType of Investment(1)(10)(11)GeographyAmount of
Realized
Gain/(Loss)		Amount of
Unrealized
Gain/(Loss)		Amount of
Interest,
Fees or
Dividends
Credited to
Income(2)		December 31,
2021
Fair Value		Gross
Additions(3)		Gross
Reductions(4)		December 31,
2022
Fair Value (13)
Preferred Member Units(5)— 3,088 — — 5,150 — 5,150 
Orttech Holdings, LLCL+11.00%Secured Debt(5)— — 16 175 — 175 — 
15.13%L+11.00%Secured Debt(5)— — 3,207 23,976 53 600 23,429 
Preferred Stock(5)— 1,750 900 10,000 1,750 — 11,750 
Pearl Meyer Topco LLCSecured Debt(6)— — 31 — 1,500 1,500 — 
Secured Debt(6)— — — — — — — 
12.00%Secured Debt(6)— (92)3,714 32,674 92 4,085 28,681 
Preferred Equity(6)— 16,290 8,204 26,970 16,290 — 43,260 
River Aggregates, LLCMember Units(8)— 340 — 3,280 340 — 3,620 
Tedder Industries, LLC12.00%Secured Debt(9)— — 215 1,040 800 — 1,840 
12.00%Secured Debt(9)— (71)1,900 15,141 51 72 15,120 
Preferred Member Units(9)— (1,564)— 8,579 666 1,564 7,681 
Televerde, LLCMember Units(8)— (1,872)2 7,280 — 1,872 5,408 
Preferred Stock(8)— 1,076 — — 1,794 — 1,794 
Vision Interests, Inc.Series A Preferred Stock(9)— — 144 3,000 — — 3,000 
VVS Holdco LLCL+6.00%Secured Debt(5)— — 55 1,169 811 2,001 (21)
11.50%Secured Debt(5)— — 3,606 30,100 61 — 30,161 
Preferred Equity(5)— 100 518 11,840 100 — 11,940 
— — — — — — — 
— — — — — — — 
Other— — — — — — — 
Amounts related to investments transferred to or from other 1940 Act classification during the period— 3,677 1,491 6,123 — — — 
Total Control investments$(5,822)$56,682 $155,967 $1,489,257 $488,176 $268,138 $1,703,172 
Affiliate Investments
AAC Holdings, Inc.18.00%18.00%Secured Debt(7)$— $178 $2,032 $9,794 $1,756 $— $11,550 
Common Stock(7)— (2,079)— 2,079 — 2,079 — 
Warrants(7)— (1,940)— 1,940 — 1,940 — 
AFG Capital Group, LLC Secured Debt(8)— — 2 144 — 144 — 
  Preferred Member Units(8)— 1,660 200 7,740 1,660 — 9,400 
ATX Networks Corp.12.23%L+7.50%Secured Debt(6)— 134 758 7,092 362 1,111 6,343 
10.00%10.00%Unsecured Debt(6)— 306 329 1,963 635 — 2,598 
   Common Stock(6)— 3,270 — — 3,270 — 3,270 
205
Table of contents                                  Schedule 12-14
MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments In and Advances to Affiliates (Continued)
December 31, 2022
(dollars in thousands)
CompanyTotal RateBase RateSpreadPIK RateType of Investment(1)(10)(11)GeographyAmount of
Realized
Gain/(Loss)		Amount of
Unrealized
Gain/(Loss)		Amount of
Interest,
Fees or
Dividends
Credited to
Income(2)		December 31,
2021
Fair Value		Gross
Additions(3)		Gross
Reductions(4)		December 31,
2022
Fair Value (13)
BBB Tank Services, LLC15.12%L+11.00%Unsecured Debt(8)— — 105 800 — — 800 
15.12%L+11.00%Unsecured Debt(8)— 379 527 1,707 379 — 2,086 
Member Units(8)— — — — — — — 
15.00%Preferred Stock (non-voting)(8)— — — — — — — 
Boccella Precast Products LLC10.00%  Secured Debt(6)— — 32 320 — — 320 
Member Units(6)— (1,860)66 4,830 — 1,860 2,970 
Buca C, LLC9.00%Secured Debt(7)— 103 1,894 14,370 103 2,136 12,337 
6.00%6.00%Preferred Member Units(7)— — — — — — — 
Career Team Holdings, LLCL+6.00%Secured Debt(6)— — 10 — 621 630 (9)
12.50%Secured Debt(6)— — 2,607 20,050 40 — 20,090 
Common Stock(6)— — — 4,500 — — 4,500 
Chandler Signs Holdings, LLCClass A Units(8)— 1,330 — 460 1,330 — 1,790 
Classic H&G Holdings, LLC9.75%L+6.00%Secured Debt(6)— — 639 4,000 11,720 11,160 4,560 
8.00%Secured Debt(6)— (43)1,606 19,274 43 43 19,274 
Preferred Member Units(6)— 9,380 1,711 15,260 9,377 — 24,637 
Congruent Credit Opportunities FundsLP Interests (Congruent Credit Opportunities Fund III, LP)(8)— (142)566 9,959 — 2,302 7,657 
DMA Industries, LLC12.00%Secured Debt(7)— 165 2,621 20,993 207 — 21,200 
Preferred Equity(7)— 1,316 — 5,944 1,316 — 7,260 
Dos Rios PartnersLP Interests (Dos Rios Partners, LP)(8)202 (1,055)1 10,329 202 1,404 9,127 
LP Interests (Dos Rios Partners - A, LP)(8)64 (335)— 3,280 64 446 2,898 
Dos Rios Stone Products LLCClass A Preferred Units(8)— 690 — 640 690 — 1,330 
EIG Fund InvestmentsLP Interests (EIG Global Private Debt Fund-A, L.P.)(8)20 — 103 547 1,102 636 1,013 
Flame King Holdings, LLC10.75%L+6.50%Secured Debt(9)— 60 669 6,324 1,276 — 7,600 
13.25%L+9.00%Secured Debt(9)— 162 2,739 20,996 204 — 21,200 
Preferred Equity(9)— 7,180 2,153 10,400 7,180 — 17,580 
Freeport Financial SBIC Fund LPLP Interests (Freeport Financial SBIC Fund LP)(5)— (128)3 6,078 — 2,595 3,483 
LP Interests (Freeport First Lien Loan Fund III LP)(5)— (57)442 7,231 — 1,383 5,848 
GFG Group, LLC9.00% Secured Debt(5)— (34)1,248 12,545 34 1,234 11,345 
Preferred Member Units(5)— 150 577 6,990 150 — 7,140 
Hawk Ridge Systems, LLC10.13%L+6.00%Secured Debt(9)— 3 230 2,585 600 — 3,185 
9.00%Secured Debt(9)— (13)3,054 34,800 3,013 13 37,800 
Preferred Member Units(9)— 2,780 803 14,680 2,780 — 17,460 
Preferred Member Units(9)— 150 — 770 150 — 920 
206
Table of contents                                  Schedule 12-14
MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments In and Advances to Affiliates (Continued)
December 31, 2022
(dollars in thousands)
CompanyTotal RateBase RateSpreadPIK RateType of Investment(1)(10)(11)GeographyAmount of
Realized
Gain/(Loss)		Amount of
Unrealized
Gain/(Loss)		Amount of
Interest,
Fees or
Dividends
Credited to
Income(2)		December 31,
2021
Fair Value		Gross
Additions(3)		Gross
Reductions(4)		December 31,
2022
Fair Value (13)
Houston Plating and Coatings, LLC8.00%Unsecured Convertible Debt(8)— 40 243 2,960 40 — 3,000 
Member Units(8)— (810)17 3,210 — 810 2,400 
HPEP 3, L.P.LP Interests (HPEP 3, L.P.)(8)779 254 (48)4,712 1,033 1,414 4,331 
LP Interests (HPEP 4, L.P.)(8)— — — — 2,332 — 2,332 
LP Interests (423 COR, LP)(8)— — — — 1,400 — 1,400 
I-45 SLF LLC 
Member Units (Fully diluted 20.0%; 21.75%profits interest)
(8)— (2,629)2,028 14,387 — 2,629 11,758 
Iron-Main Investments, LLC12.50%Secured Debt(5)— — 591 4,557 10 67 4,500 
12.50%Secured Debt(5)— — 411 3,170 7 47 3,130 
12.50%Secured Debt(5)— — 1,134 8,944 — — 8,944 
12.50%Secured Debt(5)— — 2,572 19,805 42 288 19,559 
Common Stock(5)— — — 1,798 — — 1,798 
L.F. Manufacturing Holdings, LLC14.00%Preferred Member Units (non-voting)(8)— — 9 107 10 117 — 
 Member Units(8)617 (541)224 2,560 617 3,177 — 
OnAsset Intelligence, Inc.12.00%12.00%Secured Debt(8)— (395)28 935 28 394 569 
12.00%12.00%Secured Debt(8)— (403)29 954 29 403 580 
12.00%12.00%Secured Debt(8)— (867)62 2,055 62 868 1,249 
12.00%12.00%Secured Debt(8)— (1,809)129 4,285 129 1,808 2,606 
10.00%10.00%Unsecured Debt(8)— — 5 192 113 — 305 
7.00%7.00%Preferred Stock(8)— — — — — — — 
Common Stock(8)— — — — — — — 
  Warrants(8)— — — — — — — 
Oneliance, LLCL+11.00%Secured Debt(7)— — — — — — — 
15.13%L+11.00%Secured Debt(7)— — 750 5,547 12 — 5,559 
Preferred Stock(7)— — 2 1,056 — — 1,056 
Quality Lease Service, LLC12.00%Secured Debt(8)(86)— — — — — — 
Preferred Member Units(8)— — — — — — — 
SI East, LLCSecured Debt(7)— — 237 2,250 3,750 6,000 — 
9.50%Secured Debt(7)— (34)8,409 63,600 31,159 4,973 89,786 
Preferred Member Units(7)— 2,080 647 11,570 2,080 — 13,650 
Slick Innovations, LLC14.00%Secured Debt(6)— 70 936 5,320 10,080 1,560 13,840 
Common Stock(6)— 264 456 1,510 264 244 1,530 
Warrants(6)1,219 (219)— 400 1,219 1,619 — 
Sonic Systems International, LLC11.24%L+7.50%Secured Debt(8)— 242 1,434 11,757 4,012 — 15,769 
207
Table of contents                                  Schedule 12-14
MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments In and Advances to Affiliates (Continued)
December 31, 2022
(dollars in thousands)
CompanyTotal RateBase RateSpreadPIK RateType of Investment(1)(10)(11)GeographyAmount of
Realized
Gain/(Loss)		Amount of
Unrealized
Gain/(Loss)		Amount of
Interest,
Fees or
Dividends
Credited to
Income(2)		December 31,
2021
Fair Value		Gross
Additions(3)		Gross
Reductions(4)		December 31,
2022
Fair Value (13)
Common Stock(8)— (76)43 1,070 286 76 1,280 
Student Resource Center, LLC13.27%L+8.50%Secured Debt(6)— — — — 4,556 — 4,556 
Secured Debt(6)(5,991)4,000 6 10,839 5,877 16,716 — 
Preferred Equity(6)— — — — — — — 
Superior Rigging & Erecting Co.12.00%Secured Debt(7)— — 2,662 21,332 46 — 21,378 
Preferred Member Units(7)— — — 4,500 — — 4,500 
The Affiliati Network, LLC13.00%Secured Debt(9)— — 32 262 3,764 3,920 106 
13.00%Secured Debt(9)— — 1,520 12,834 48 3,440 9,442 
 Preferred Stock(9)— — 403 6,400 — — 6,400 
UnionRock Energy Fund II, LP   LP Interests(9)— (174)596 6,123 2,491 2,759 5,855 
UniTek Global Services, Inc.10.76%SF+5.50%2.00%Secured Debt(6)— 3 40 371 11 — 382 
10.76%SF+5.50%2.00%Secured Debt(6)— 26 201 1,852 72 212 1,712 
15.00%15.00%Secured Convertible Debt(6)— 1,011 269 2,375 2,217 — 4,592 
20.00%20.00%Preferred Stock(6)— (384)384 2,832 385 384 2,833 
20.00%20.00%Preferred Stock(6)— 493 — 1,498 493 — 1,991 
19.00%19.00%Preferred Stock(6)— — — — — — — 
13.50%13.50%Preferred Stock(6)— — — — — — — 
Common Stock(6)— — — — — — — 
Universal Wellhead Services Holdings, LLC14.00%14.00%Preferred Member Units(8)— 220 — — 220 — 220 
Member Units(8)— — — — — — — 
Volusion, LLC11.50%Secured Debt(8)— (1,821)1,982 17,434 — 2,520 14,914 
8.00%Unsecured Convertible Debt(8)(143)(409)33 409 — 409 — 
Preferred Member Units(8)— (5,990)3 5,990 — 5,990 — 
Warrants(8)— — — — — — — 
World Micro Holdings, LLC13.00%Secured Debt(7)— — 248 — 14,140 — 14,140 
Preferred Equity(7)— — — — 3,845 — 3,845 
Other— — — — — — — 
Amounts related to investments transferred to or from other 1940 Act classification during the period— (3,538)(1,491)(15,962)10,853 10,853 — 
Total Affiliate investments$(3,319)$10,314 $54,963 $549,214 $157,996 $104,813 $618,359 
______________________
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments In and Advances to Affiliates (Continued)
December 31, 2022
(dollars in thousands)
(1)The principal amount, the ownership detail for equity investments and if the investment is income producing is included in the Consolidated Schedule of Investments included in Item 8. Consolidated Financial Statements of this Annual Report on Form 10-K.
(2)Represents the total amount of interest, fees and dividends credited to income for the portion of the period for which an investment was included in Control or Affiliate categories, respectively. For investments transferred between Control and Affiliate categories during the period, any income or investment balances related to the time period it was in the category other than the one shown at period end is included in “Amounts from investments transferred from other 1940 Act classifications during the period.”
(3)Gross additions include increases in the cost basis of investments resulting from new portfolio investments, follow-on investments and accrued PIK interest, and the exchange of one or more existing securities for one or more new securities. Gross additions also include net increases in unrealized appreciation or net decreases in net unrealized depreciation as well as the movement of an existing portfolio company into this category and out of a different category.
(4)Gross reductions include decreases in the cost basis of investments resulting from principal repayments or sales and the exchange of one or more existing securities for one or more new securities. Gross reductions also include net increases in net unrealized depreciation or net decreases in unrealized appreciation as well as the movement of an existing portfolio company out of this category and into a different category.
(5)Portfolio company located in the Midwest region as determined by location of the corporate headquarters. The fair value as of December 31, 2022 for control investments located in this region was $430,570. This represented 20.4% of net assets as of December 31, 2022. The fair value as of December 31, 2022 for affiliate investments located in this region was $65,747. This represented 3.1% of net assets as of December 31, 2022.
(6)Portfolio company located in the Northeast region as determined by location of the corporate headquarters. The fair value as of December 31, 2022 for control investments located in this region was $147,981. This represented 7.0% of net assets as of December 31, 2022. The fair value as of December 31, 2022 for affiliate investments located in this region was $119,989. This represented 5.7% of net assets as of December 31, 2022.
(7)Portfolio company located in the Southeast region as determined by location of the corporate headquarters. The fair value as of December 31, 2022 for control investments located in this region was $47,368. This represented 2.2% of net assets as of December 31, 2022. The fair value as of December 31, 2022 for affiliate investments located in this region was $206,261. This represented 9.8% of net assets as of December 31, 2022.
(8)Portfolio company located in the Southwest region as determined by location of the corporate headquarters. The fair value as of December 31, 2022 for control investments located in this region was $609,466. This represented 28.9% of net assets as of December 31, 2022. The fair value as of December 31, 2022 for affiliate investments located in this region was $98,814. This represented 4.7% of net assets as of December 31, 2022.
(9)Portfolio company located in the West region as determined by location of the corporate headquarters. The fair value as of December 31, 2022 for control investments located in this region was $467,787. This represented 22.2% of net assets as of December 31, 2022. The fair value as of December 31, 2022 for affiliate investments located in this region was $127,548. This represented 6.0% of net assets as of December 31, 2022.
(10)All of the Company’s portfolio investments are generally subject to restrictions on resale as “restricted securities,” unless otherwise noted.
(11)This schedule should be read in conjunction with the Consolidated Schedule of Investments and Notes to the Consolidated Financial Statements included in Item 8. Consolidated Financial Statements of this Annual Report on Form 10-K. Supplemental information can be located within the Consolidated Schedule of
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MAIN STREET CAPITAL CORPORATION
Consolidated Schedule of Investments In and Advances to Affiliates (Continued)
December 31, 2022
(dollars in thousands)
Investments including end of period interest rate, preferred dividend rate, maturity date, investments not paid currently in cash and investments whose value was determined using significant unobservable inputs.
(12)Investment has an unfunded commitment as of December 31, 2022 (see Note K — Commitments and Contingencies in Item 8. Consolidated Financial Statements of this Annual Report on Form 10-K). The fair value of the investment includes the impact of the fair value of any unfunded commitments.
(13)Negative fair value is the result of the capitalized discount being greater than the principal amount outstanding on the loan.
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Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
Not applicable.
Item 9A. Controls and Procedures
(a) Evaluation of Disclosure Controls and Procedures. As of the end of the period covered by this annual report on Form 10-K, we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer, President, Chief Financial Officer, Chief Compliance Officer and Chief Accounting Officer, of our disclosure controls and procedures (as defined in Rule 13a-15 of the Exchange Act). Based on that evaluation, our Chief Executive Officer, President, Chief Financial Officer, Chief Compliance Officer and Chief Accounting Officer have concluded that our current disclosure controls and procedures are effective in timely alerting them of material information relating to us that is required to be disclosed in the reports we file or submit under the Exchange Act.
(b) Management’s Report on Internal Control Over Financial Reporting. The management of Main Street Capital Corporation and its subsidiaries (the Company) is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f). Under the supervision and with the participation of management, including the Chief Executive Officer and Chief Financial Officer, the Company conducted an evaluation of the effectiveness of the Company’s internal control over financial reporting based on the criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on the Company’s evaluation under the framework in Internal Control — Integrated Framework, management concluded that the Company’s internal control over financial reporting was effective as of December 31, 2023. Grant Thornton LLP, the Company’s independent registered public accounting firm, has issued an attestation report on the effectiveness of the Company’s internal control over financial reporting as of December 31, 2023, as stated in its report which is included herein.
(c) Attestation Report of the Registered Public Accounting Firm. Our independent registered public accounting firm, Grant Thornton LLP, has issued an attestation report on the effectiveness of our internal control over financial reporting, which is set forth above in Reports of Independent Registered Public Accounting Firm in Item 8. Consolidated Financial Statements and Supplementary Data of this Annual Report on Form 10-K.
(d) Changes in Internal Control over Financial Reporting. There have been no changes in our internal control over financial reporting that occurred during the fiscal quarter ended December 31, 2023 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
Item 9B. Other Information
Fees and Expenses
The following table is being provided to update, as of December 31, 2023, certain information in the Company’s effective shelf registration statement on Form N-2 (File No. 333-263258) filed with the SEC on March 3, 2022 as supplemented by the prospectus supplements relating to our ATM Program and to the direct stock purchase feature of the Plan. The information is intended to assist you in understanding the costs and expenses that an investor in the Company will bear directly or indirectly. We caution you that some of the percentages indicated in the table below are estimates and may vary. Except where the context suggests otherwise, whenever this Annual Report on Form 10-K contains a reference
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to fees or expenses paid by “you,” “us” or “Main Street,” or that “we” will pay fees or expenses, stockholders will indirectly bear such fees or expenses as investors in us.
Stockholder Transaction Expenses:
Sales load (as a percentage of offering price)—%(1)
Offering expenses (as a percentage of offering price)—%(2)
Dividend reinvestment and direct stock purchase plan expenses—%(3)
Total stockholder transaction expenses (as a percentage of offering price)—%(4)
Annual Expenses of the Company (as a percentage of net assets attributable to common stock):
Operating expenses3.26%(5)
Interest payments on borrowed funds4.69%(6)
Income tax expense0.91%(7)
Acquired fund fees and expenses0.22%(8)
Total annual expenses9.08%
______________________
(1)The maximum agent commission with respect to the shares of our common stock sold by us in the ATM Program is 1.00%. Purchasers of shares of common stock through the direct stock purchase feature of the Plan will not pay any sales load. In the event that our securities are sold to or through underwriters, a corresponding prospectus or prospectus supplement will disclose the applicable sales load.
(2)Estimated offering expenses payable by us for the estimated duration of the ATM Program are $0.4 million. In the event that we conduct an offering of our securities, a corresponding prospectus or prospectus supplement will disclose the estimated offering expenses.
(3)The expenses of administering the Plan are included in operating expenses. Additional costs may be charged to participants in the direct stock purchase feature of the plan for certain types of transactions.
(4)Total stockholder transaction expenses may include sales load and will be disclosed in a future prospectus or prospectus supplement, if any.
(5)Operating expenses in this table represent our estimated expenses.
(6)Interest payments on borrowed funds represent our estimated annual interest payments on borrowed funds based on current debt levels as adjusted for projected increases (but not decreases) in debt levels over the next twelve months.
(7)Income tax expense relates to the accrual of (a) deferred tax provision (benefit) primarily related to loss carryforwards, timing differences in net unrealized appreciation or depreciation and other temporary book-tax differences from our portfolio investments held in Taxable Subsidiaries and (b) excise, state and other taxes. Deferred taxes are non-cash in nature and may vary significantly from period to period. We are required to include deferred taxes in calculating our annual expenses even though deferred taxes are not currently payable or receivable. Due to the variable nature of deferred tax expense, which can be a large portion of the income tax expense, and the difficulty in providing an estimate for future periods, this income tax expense estimate is based upon the actual amount of income tax expense for the year ended December 31, 2023.
(8)Acquired fund fees and expenses represent the estimated indirect expense incurred due to investments in other investment companies and private funds.
Example
The following example demonstrates the projected dollar amount of total cumulative expenses that would be incurred over various periods with respect to a hypothetical investment in our common stock. In calculating the following expense amounts, we have assumed we would have no additional leverage and that our annual operating expenses would
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remain at the levels set forth in the table above and that you would pay either no sales load or a sales load of up to 1.00% (the commission to be paid by us with respect to common stock sold by us in the ATM Program).
1 Year3 Years5 Years10 Years
You would pay the following expenses on a $1,000 investment, assuming a 5.0% annual return and no sales load$89$256$410$743
You would pay the following expenses on a $1,000 investment, assuming a 5.0% annual return and a 1.00% sales load$99$266$420$753
The example and the expenses in the table above should not be considered a representation of our future expenses, and actual expenses may be greater or less than those shown. While the example assumes, as required by the SEC, a 5.0% annual return, our performance will vary and may result in a return greater or less than 5.0%. In addition, while the example assumes reinvestment of all dividends at NAV, participants in our dividend reinvestment plan will receive a number of shares of our common stock, determined by dividing the total dollar amount of the dividend payable to a participant by (i) the market price per share of our common stock at the close of trading on a valuation date determined by our Board of Directors for each dividend in the event that we use newly issued shares to satisfy the share requirements of the dividend reinvestment plan or (ii) the average purchase price of all shares of common stock purchased by the plan administrator in the event that shares are purchased in the open market to satisfy the share requirements of the dividend reinvestment plan, which may be at, above or below NAV. See the description in Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities — Dividend/Distribution Policy for additional information regarding our dividend reinvestment plan.
Insider Trading Arrangements and Policies

During the quarter ended December 31, 2023, no director or officer (as defined in Rule 16a-1(f) under the Exchange Act) of the Company adopted or terminated any Rule 10b5-1 trading arrangements or non-Rule 10b5-1 trading arrangements (in each case, as defined in Item 408(a) of Regulation S-K).
Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections
Not applicable.
PART III
Item 10. Directors, Executive Officers and Corporate Governance
The information required by this Item will be contained in the definitive proxy statement relating to our 2024 Annual Meeting of Stockholders (the “Proxy Statement”) under the headings “Election of Directors,” “Corporate Governance” and “Executive Officers” to be filed with the Securities and Exchange Commission on or prior to April 29, 2024, and is incorporated herein by reference.
We have adopted a code of business conduct and ethics that applies to directors, officers and employees of Main Street. This code of ethics is published on our website at www.mainstcapital.com. We intend to disclose any substantive amendments to, or waivers from, this code of conduct within four business days of the waiver or amendment through a posting on our website.
Item 11. Executive Compensation
The information required by this Item will be contained in the Proxy Statement under the headings “Compensation of Executive Officers,” “Compensation of Directors,” “Compensation Discussion and Analysis,” “Corporate Governance — Compensation Committee Interlocks and Insider Participation” and “Compensation Committee Report,” to be filed with the Securities and Exchange Commission on or prior to April 29, 2024, and is incorporated herein by reference.
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Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
The following table provides information regarding our equity compensation plans as of December 31, 2023:
Plan CategoryNumber of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and RightsWeighted‑Average Exercise Price of Outstanding Options, Warrants and RightsNumber of securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column)
Equity compensation plans approved by security holders(1)$— $— $4,733,668 
Equity compensation plans not approved by security holders(2)178,216 — — 
Total$178,216 $— $4,733,668 
______________________
(1)Consists of our Main Street Capital Corporation 2022 Equity and Incentive Plan and our Main Street Capital Corporation 2022 Non-Employee Director Restricted Stock Plan. As of December 31, 2023, we had issued 570,565 shares of restricted stock pursuant to these plans, of which 7,239 shares had vested and 4,233 shares were forfeited. Pursuant to each of these plans, if any award issued thereunder shall for any reason expire or otherwise terminate or be forfeited, in whole or in part, the shares of stock not acquired under such award shall revert to and again become available for issuance under such plan. For more information regarding these plans, see Note J — Share-Based Compensation to the consolidated financial statements included in Item 8. Consolidated Financial Statements and Supplementary Data of this Annual Report on Form 10-K.
(2)Consists of our 2015 Deferred Compensation Plan. For more information regarding this plan, see Note L — Related Party Transactions to the consolidated financial statements included in Item 8. Consolidated Financial Statements and Supplementary Data of this Annual Report on Form 10-K.
The other information required by this Item will be contained in the Proxy Statement under the heading “Security Ownership of Certain Beneficial Owners and Management,” to be filed with the Securities and Exchange Commission on or prior to April 29, 2024, and is incorporated herein by reference.
Item 13. Certain Relationships and Related Transactions, and Director Independence
The information required by this Item will be contained in the Proxy Statement under the headings “Certain Relationships and Related Party Transactions” and “Corporate Governance,” to be filed with the Securities and Exchange Commission on or prior to April 29, 2024, and is incorporated herein by reference.
Item 14. Principal Accountant Fees and Services
The information required by this Item will be contained in the Proxy Statement under the heading “Ratification of Appointment of Independent Registered Public Accounting Firm for Year Ending December 31, 2024,” to be filed with the Securities and Exchange Commission on or prior to April 29, 2024, and is incorporated herein by reference.
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PART IV
Item 15. Exhibits and Consolidated Financial Statement Schedules
The following documents are filed or incorporated by reference as part of this Annual Report:
1.Consolidated Financial Statements
69
72
73
74
75
76
110
142
2.Consolidated Financial Statement Schedule
Schedule of Investments in and Advances to Affiliates for the Years Ended December 31, 2023 and 2022
190
3.Exhibits
Listed below are the exhibits which are filed as part of this report (according to the number assigned to them in Item 601 of Regulation S-K):
Exhibit NumberDescription
3.1*
Articles of Amendment and Restatement of Main Street Capital Corporation (previously filed as Exhibit (a) to Main Street Capital Corporation’s Pre-Effective Amendment No. 2 to the Registration Statement on Form N-2 filed on August 15, 2007 (Reg. No. 333-142879))
3.2*
Amended and Restated Bylaws of Main Street Capital Corporation (previously filed as Exhibit 3.1 to Main Street Capital Corporation’s Current Report on Form 8-K filed on March 6, 2013 (File No. 1-33723))
4.1*
Form of Common Stock Certificate (previously filed as Exhibit (d) to Main Street Capital Corporation’s Pre-Effective Amendment No. 2 to the Registration Statement on Form N-2 filed on August 15, 2007 (Reg. No. 333-142879))
4.2*
Dividend Reinvestment and Direct Stock Purchase Plan, effective May 10, 2019 (previously filed as Exhibit 99.1 to Main Street Capital Corporation’s Current Report on Form 8-K filed on May 10, 2019 (File No. 1-33723))
4.3*
Main Street Mezzanine Fund, LP SBIC debentures guaranteed by the SBA (previously filed as Exhibit (f)(1) to Main Street Capital Corporation’s Pre-Effective Amendment No. 1 to the Registration Statement on Form N-2 filed on June 22, 2007 (Reg. No. 333-142879))
4.4*
Main Street Capital III, LP SBIC debentures guaranteed by the SBA (see Exhibit (f)(1) to Main Street Capital Corporation’s Pre-Effective Amendment No. 1 to the Registration Statement on Form N-2 filed on June 22, 2007 for a substantially identical copy of the form of debentures)
4.5*
Form of Indenture between Main Street Capital Corporation and The Bank of New York Mellon Trust Company, N.A. (previously filed as Exhibit (d)(6) to Main Street Capital Corporation’s Post-Effective Amendment No. 2 to the Registration Statement on Form N-2 filed on March 28, 2013 (Reg. No. 333-183555))
4.6*
Form of Fourth Supplemental Indenture relating to the May 2024 Notes, dated April 23, 2019, between Main Street Capital Corporation and The Bank of New York Mellon Trust Company, N.A. (previously filed as Exhibit (d)(11) to Main Street Capital Corporation’s Post-Effective Amendment No. 7 to the Registration Statement on Form N-2 filed on April 18, 2019 (Reg. No. 333-223483))
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Exhibit NumberDescription
4.7*
Form of May 2024 Notes (contained in the Fourth Supplemental Indenture incorporated by reference as Exhibit 4.6 hereto)
4.8*
Fifth Supplemental Indenture relating to the July 2026 Notes, dated January 14, 2021, between Main Street Capital Corporation and The Bank of New York Mellon Trust Company, N.A., as trustee (previously filed as Exhibit 4.1 to Main Street Capital Corporation’s Current Report on Form 8-K filed on January 14, 2021 (File No. 1-33723))
4.9*
Form of July 2026 Notes (contained in the Fifth Supplemental Indenture incorporated by reference as Exhibit 4.8 hereto)
4.10*
4.11*
4.12*
Description of Main Street Capital Corporation’s securities registered pursuant to Section 12 of the Securities Exchange Act of 1934 (previously filed as Exhibit 4.11 to Main Street Capital Corporation’s Annual Report on Form 10-K filed on February 28, 2020 (File No. 1-33723))
10.1*
Omnibus Amendment No. 1, dated as of April 7, 2021, by and among Main Street, the guarantors party thereto, Truist Bank, as administrative agent, solely with respect to Section 2 thereof, the withdrawing lender, and the lenders party thereto (previously filed as Exhibit 10.1 to Main Street Capital Corporation’s Current Report on Form 8-K filed on April 8, 2021 (File No. 1-33723))
10.2*
Third Amended and Restated General Security Agreement dated June 5, 2018 (previously filed as Exhibit 10.2 to Main Street Capital Corporation’s Current Report on Form 8-K filed on June 6, 2018 (File No. 1-33723))
10.3*
Third Amended and Restated Equity Pledge Agreement dated June 5, 2018 (previously filed as Exhibit 10.3 to Main Street Capital Corporation’s Current Report on Form 8-K filed on June 6, 2018 (File No. 1-33723))
10.4*
Amended and Restated Custodial Agreement dated September 20, 2010 (previously filed as Exhibit 10.3 to Main Street Capital Corporation’s Current Report on Form 8-K filed September 21, 2010 (File No. 1-33723))
10.5*
Third Amendment to Amended and Restated Credit Agreement and First Amendment to Amended and Restated Custodial Agreement dated November 21, 2011 (previously filed as Exhibit 10.1 to Main Street Capital Corporation’s Current Report on Form 8-K filed November 22, 2011 (File No. 1-33723))
10.6*
10.7*
10.8*
10.9*
10.10*
10.11*
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Exhibit NumberDescription
10.12*
10.13*
10.14*
10.15*
10.16*
10.17*
10.18*†
Main Street Capital Corporation 2022 Equity and Incentive Plan (previously filed as Exhibit 4.4 to Main Street Capital Corporation’s Registration Statement on Form S-8 filed on May 3, 2022 (Reg. No. 333-264643))
10.19*†
Main Street Capital Corporation 2022 Non-Employee Director Restricted Stock Plan (previously filed as Exhibit 4.5 to Main Street Capital Corporation’s Registration Statement on Form S-8 filed on May 3, 2022 (Reg. No. 333-264643))
10.20*†
Form of Restricted Stock Agreement for Executive Officers — Main Street Capital Corporation 2022 Equity and Incentive Plan (previously filed as Exhibit 4.6 to Main Street Capital Corporation’s Registration Statement on Form S-8 filed on May 3, 2022 (Reg. No. 333-264643))
10.21*†
Form of Restricted Stock Agreement for Non-Employee Directors — Main Street Capital Corporation 2022 Non-Employee Director Restricted Stock Plan (previously filed as Exhibit 4.7 to Main Street Capital Corporation’s Registration Statement on Form S-8 filed on May 3, 2022 (Reg. No. 333-264643))
10.22*
Custody Agreement, dated September 17, 2007, by and between Main Street Capital Corporation and Amegy Bank National Association (previously filed as Exhibit (j) to Main Street Capital Corporation’s Pre-Effective Amendment No. 3 to the Registration Statement on Form N-2 filed on September 21, 2007 (Reg. No. 333-142879))
10.23*†
Form of Confidentiality and Non-Compete Agreement by and between Main Street Capital Corporation and Vincent D. Foster (previously filed as Exhibit (k)(12) to Main Street Capital Corporation’s Pre-Effective Amendment No. 3 to the Registration Statement on Form N-2 filed on September 21, 2007 (Reg. No. 333-142879))
10.24*†
Form of Indemnification Agreement by and between Main Street Capital Corporation and each executive officer and director (previously filed as Exhibit (k)(13) to Main Street Capital Corporation’s Pre-Effective Amendment No. 3 to the Registration Statement on Form N-2 filed on September 21, 2007 (Reg. No. 333-142879))
10.25*
Investment Advisory and Administrative Services Agreement dated October 30, 2020 by and among MSC Adviser I, LLC and MSC Income Fund, Inc. (previously filed as Exhibit 10.1 to Main Street Capital Corporation’s Current Report on Form 8-K filed on November 3, 2020 (File No. 1-33723))
10.26*†
Main Street Capital Corporation Deferred Compensation Plan Adoption Agreement and Plan Document (previously filed as Exhibit 4.1 to Main Street Capital Corporation’s Registration Statement on Form S-8 filed on December 18, 2015 (File No. 333-208643))
10.27*
Form of Equity Distribution Agreement dated March 3, 2022 (previously filed as Exhibit 1.1 to Main Street Capital Corporation’s Current Report on Form 8-K filed on March 4, 2022 (File No. 1-33723))
14.1*
Code of Business Conduct and Ethics (previously filed as Exhibit 14.1 to Main Street Capital Corporation’s Annual Report on Form 10-K filed on February 24, 2023 (File No. 1-33723))
21.1**
List of Subsidiaries
23.1**
Consent of Grant Thornton LLP, independent registered public accounting firm
31.1**
Rule 13a-14(a)/15d-14(a) certification of Chief Executive Officer
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Exhibit NumberDescription
31.2**
Rule 13a-14(a)/15d-14(a) certification of Chief Financial Officer
32.1**
Section 1350 certification of Chief Executive Officer
32.2**
Section 1350 certification of Chief Financial Officer
97.1**
99.1**
101**
The following financial information from our Annual Report on Form 10-K for the fourth quarter of fiscal year 2023, filed with the SEC on February 23, 2024, formatted in Inline Extensible Business Reporting Language (iXBRL): (i) the Consolidated Balance Sheets at December 31, 2023 and December 31, 2022, (ii) the Consolidated Statements of Operations for the years ended December 31, 2023, 2022 and 2021, (iii) the Consolidated Statements of Changes in Net Assets for the periods ended December 31, 2023, 2022 and 2021, (iv) the Consolidated Statements of Cash Flows for the years ended December 31, 2023, 2022 and 2021, (v) the Consolidated Schedule of Investments for the periods ended December 31, 2023 and December 31, 2022, (vi) the Notes to Consolidated Financial Statements and (vii) the Consolidated Schedule 12-14 for the years ended December 31, 2023 and 2022.
104**Cover Page Interactive Data File (embedded within the Inline XBRL document)
______________________
*    Exhibit previously filed with the Securities and Exchange Commission, as indicated, and incorporated herein by reference.
**    Furnished herewith.
†    Management contract or compensatory plan or arrangement.
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
MAIN STREET CAPITAL CORPORATION
By:/s/ DWAYNE L. HYZAK
Dwayne L. Hyzak
Chief Executive Officer and Director
Date: February 23, 2024
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
SignatureTitleDate
/s/ DWAYNE L. HYZAKChief Executive Officer and DirectorFebruary 23, 2024
Dwayne L. Hyzak(principal executive officer)
/s/ JESSE E. MORRISChief Financial Officer, Chief Operating OfficerFebruary 23, 2024
Jesse E. Morris(principal financial officer)
/s/ RYAN R. NELSONChief Accounting OfficerFebruary 23, 2024
Ryan R. Nelson(principal accounting officer)
/s/ VINCENT D. FOSTERChairman of the BoardFebruary 23, 2024
Vincent D. Foster
/s/ J. KEVIN GRIFFINDirectorFebruary 23, 2024
J. Kevin Griffin
/s/ JOHN E. JACKSONDirectorFebruary 23, 2024
John E. Jackson
/s/ BRIAN E. LANEDirectorFebruary 23, 2024
Brian E. Lane
/s/ DUNIA A. SHIVEDirectorFebruary 23, 2024
Dunia A. Shive
/s/ STEPHEN B. SOLCHERDirectorFebruary 23, 2024
Stephen B. Solcher
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