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TABLE OF CONTENTS

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q


(Mark One)
ý		QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, ~~2017~~2018
OR
o		TRANSITION 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 (State or other jurisdiction of incorporation or organization)		41-2230745 (I.R.S. Employer Identification No.)
1300 Post Oak Boulevard, 8^th ~~floor~~Floor Houston, TX (Address of principal executive offices)		77056 (Zip Code)

(713) 350-6000

(Registrant's telephone number including area code)

n/a

(Former name, former address and former fiscal year, if changed since last report)

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 ý No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes o 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. (Check one):


Large accelerated filer ý		Accelerated filer o		Non-accelerated filer o (do not check if smaller reporting company)		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 is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No ý

The number of shares outstanding of the issuer's common stock as of May ~~4, 2017~~3, 2018 was ~~55,922,561.~~59,447,537.

Table of Contents

TABLE OF CONTENTS

PART I
FINANCIAL INFORMATION


Item 1.	Consolidated Financial Statements
	Consolidated Balance Sheets—March 31, ~~2017~~2018 (unaudited) and December 31, ~~2016~~2017	1
	Consolidated Statements of Operations (unaudited)—Three months ended March 31, ~~2017~~2018 and ~~2016~~2017	2
	Consolidated Statements of Changes in Net Assets (unaudited)—Three months ended March 31, ~~2017~~2018 and ~~2016~~2017	3
	Consolidated Statements of Cash Flows (unaudited)—Three months ended March 31, ~~2017~~2018 and ~~2016~~2017	4
	Consolidated Schedule of Investments (unaudited)—March 31, ~~2017~~2018	5
	Consolidated Schedule of Investments—December 31, ~~2016~~2017	3436
	Notes to Consolidated Financial Statements (unaudited)	6367
	Consolidated ~~Financial Statement Schedule~~	~~110~~
	~~Consolidated Schedule~~Schedules of Investments in and Advances to Affiliates (unaudited)—Three months ended March 31, 2018 and 2017	~~110~~111
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	~~115~~120
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	~~135~~141
Item 4.	Controls and Procedures	~~136~~141

PART II
OTHER INFORMATION

~~PART II~~ ~~OTHER INFORMATION~~
Item 1.	Legal Proceedings	~~137~~143
Item 1A.	Risk Factors	~~137~~143
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	~~137~~143
Item 6.	Exhibits	~~137~~143
	Signatures	~~138~~144

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Balance Sheets

(dollars in thousands, except shares and per share amounts)

	March 31, 2017			December 31, 2016			March 31, 2018			December 31, 2017

	(Unaudited)						(Unaudited)
ASSETS
Portfolio investments at fair value:
Control investments (cost: $491,749 and $439,674 as of March 31, 2017 and December 31, 2016, respectively)	$	658,239		$	594,282
Affiliate investments (cost: $373,895 and $394,699 as of March 31, 2017 and December 31, 2016, respectively)		329,024			375,948
Non-Control/Non-Affiliate investments (cost: $1,010,832 and $1,037,510 as of March 31, 2017 and December 31, 2016, respectively)		992,115			1,026,676

Investments at fair value:
Control investments (cost: $649,096 and $530,034 as of March 31, 2018 and December 31, 2017, respectively)							$	846,797		$	750,706
Affiliate investments (cost: $382,351 and $367,317 as of March 31, 2018 and December 31, 2017, respectively)								359,460			338,854
Non-Control/Non-Affiliate investments (cost: $1,126,103 and $1,107,447 as of March 31, 2018 and December 31, 2017, respectively)								1,107,777			1,081,745

Total investments (cost: $1,876,476 and $1,871,883 as of March 31, 2017 and December 31, 2016, respectively)		1,979,378			1,996,906
Total investments (cost: $2,157,550 and $2,004,798 as of March 31, 2018 and December 31, 2017, respectively)								2,314,034			2,171,305

Cash and cash equivalents		33,605			24,480			29,090			51,528
Interest receivable and other assets		37,560			35,133			40,159			36,343
Receivable for securities sold		8,604			1,990			14,311			2,382
Deferred financing costs (net of accumulated amortization of $12,205 and $11,547 as of March 31, 2017 and December 31, 2016, respectively)		12,603			12,645
Deferred tax asset, net		4,739			9,125
Deferred financing costs (net of accumulated amortization of $5,856 and $5,600 as of March 31, 2018 and December 31, 2017, respectively)								3,581			3,837

Total assets	$	2,076,489		$	2,080,279		$	2,401,175		$	2,265,395



LIABILITIES
Credit facility	$	288,000		$	343,000		$	188,000		$	64,000
SBIC debentures (par: $240,200 and $240,000 as of March 31, 2017 and December 31, 2016, respectively. Par of $50,000 and $75,200 is recorded at a fair value of $49,155 and $74,803 as of March 31, 2017 and December 31, 2016, respectively)		239,355			239,603
4.50% Notes		175,000			175,000
6.125% Notes		90,655			90,655
SBIC debentures (par: $313,800 and $295,800 as of March 31, 2018 and December 31, 2017, respectively)								306,182			288,483
4.50% Notes due 2022 (par: $185,000 as of both March 31, 2018 and December 31, 2017)								182,167			182,015
4.50% Notes due 2019 (par: $175,000 as of both March 31, 2018 and December 31, 2017)								173,796			173,616
6.125% Notes (par: $90,655 as of both March 31, 2018 and December 31, 2017)								89,133			89,057
Accounts payable and other liabilities		11,758			14,205			15,049			20,168
Payable for securities purchased		14,064			2,184			21,859			40,716
Interest payable		3,471			4,103			8,510			5,273
Dividend payable		10,252			10,048			11,192			11,146
Deferred tax liability, net								8,687			10,553

Total liabilities		832,555			878,798			1,004,575			885,027

Commitments and contingencies (Note M)
NET ASSETS
Common stock, $0.01 par value per share (150,000,000 shares authorized; 55,423,375 and 54,312,444 shares issued and outstanding as of March 31, 2017 and December 31, 2016, respectively)		554			543
Common stock, $0.01 par value per share (150,000,000 shares authorized; 58,987,330 and 58,660,680 shares issued and outstanding as of March 31, 2018 and December 31, 2017, respectively)								590			586
Additional paid-in capital		1,185,478			1,143,883			1,325,998			1,310,780
Accumulated net investment income, net of cumulative dividends of $532,336 and $521,297 as of March 31, 2017 and December 31, 2016, respectively		33,943			19,033
Accumulated net realized gain from investments (accumulated net realized gain from investments of $75,959 before cumulative dividends of $126,845 as of March 31, 2017 and accumulated net realized gain from investments of $48,394 before cumulative dividends of $107,281 as of December 31, 2016)		(50,886	)		(58,887	)
Accumulated net investment income, net of cumulative dividends of $696,070 and $662,563 as of March 31, 2018 and December 31, 2017, respectively								10,015			7,921
Accumulated net realized gain from investments (accumulated net realized gain from investments of $72,036 before cumulative dividends of $124,690 as of March 31, 2018 and accumulated net realized gain from investments of $64,576 before cumulative dividends of $124,690 as of December 31, 2017)								(52,654	)		(60,114	)
Net unrealized appreciation, net of income taxes		74,845			96,909			112,651			121,195

Total net assets		1,243,934			1,201,481			1,396,600			1,380,368

Total liabilities and net assets	$	2,076,489		$	2,080,279		$	2,401,175		$	2,265,395



NET ASSET VALUE PER SHARE	$	22.44		$	22.10		$	23.67		$	23.53

The accompanying notes are an integral part of these consolidated financial statements

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Statements of Operations

(dollars in thousands, except shares and per share amounts)

(Unaudited)

	Three Months Ended March 31,						Three Months Ended March 31,

	2017			2016			2018			2017
INVESTMENT INCOME:
Interest, fee and dividend income:
Control investments	$	12,988		$	12,615		$	21,955		$	12,988
Affiliate investments		9,899			8,523			9,071			9,899
Non-Control/Non-Affiliate investments		25,002			20,737			24,916			25,002

Interest, fee and dividend income		47,889			41,875
Interest, fee and dividend income from marketable securities and idle funds investments		—			131

Total investment income		47,889			42,006			55,942			47,889
EXPENSES:
Interest		(8,608	)		(8,182	)		(10,265	)		(8,608	)
Compensation		(4,430	)		(3,820	)		(5,491	)		(4,430	)
General and administrative		(2,940	)		(2,405	)		(2,974	)		(2,940	)
Share-based compensation		(2,269	)		(1,589	)		(2,303	)		(2,269	)
Expenses allocated to the External Investment Manager		1,524			1,154			2,066			1,524

Total expenses		(16,723	)		(14,842	)		(18,967	)		(16,723	)

NET INVESTMENT INCOME		31,166			27,164			36,975			31,166
NET REALIZED GAIN (LOSS):
Control investments		(682	)		14,358			13,094			(682	)
Affiliate investments		22,930			—			—			22,930
Non-Control/Non-Affiliate investments		5,317			818			(5,634	)		5,317
Marketable securities and idle funds investments		—			(1,573	)
SBIC debentures		(5,217	)		—			(1,374	)		(5,217	)

Total net realized gain		22,348			13,603			6,086			22,348

NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION):
Portfolio investments		(22,091	)		(27,529	)
Marketable securities and idle funds investments		—			1,457
NET UNREALIZED APPRECIATION (DEPRECIATION):
Control investments								(22,974	)		11,880
Affiliate investments								14,238			(26,121	)
Non-Control/Non-Affiliate investments								(2,146	)		(7,850	)
SBIC debentures		5,665			(146	)		1,359			5,665

Total net change in unrealized depreciation		(16,426	)		(26,218	)
Total net unrealized depreciation								(9,523	)		(16,426	)

INCOME TAXES:
Federal and state income, excise and other taxes		(1,252	)		(370	)		(887	)		(1,252	)
Deferred taxes		(4,386	)		2,633			1,866			(4,386	)

Income tax benefit (provision)		(5,638	)		2,263			979			(5,638	)

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	31,450		$	16,812		$	34,517		$	31,450



NET INVESTMENT INCOME PER SHARE—BASIC AND DILUTED	$	0.57		$	0.54		$	0.63		$	0.57



NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS PER SHARE—BASIC AND DILUTED	$	0.57		$	0.33		$	0.59		$	0.57



DIVIDENDS PAID PER SHARE:
Regular monthly dividends	$	0.555		$	0.540		$	0.570		$	0.555
Supplemental dividends		—			—			—			—

Total dividends	$	0.555		$	0.540		$	0.570		$	0.555



WEIGHTED AVERAGE SHARES OUTSTANDING—BASIC AND DILUTED		55,125,170			50,549,780			58,852,252			55,125,170

The accompanying notes are an integral part of these consolidated financial statements

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Statements of Changes in Net Assets

(dollars in thousands, except shares)

(Unaudited)

	Common Stock											Accumulated Net Realized Gain From Investments, Net of Dividends			Net Unrealized Appreciation from Investments, Net of Income Taxes						Common Stock											Accumulated Net Realized Gain From Investments, Net of Dividends			Net Unrealized Appreciation from Investments, Net of Income Taxes

	Common Stock								Accumulated Net Investment Income, Net of Dividends												Common Stock								Accumulated Net Investment Income, Net of Dividends
	Number of Shares			Par Value		Additional Paid-In Capital			Accumulated Net Investment Income, Net of Dividends									Net Unrealized Appreciation from Investments, Net of Income Taxes			Number of Shares			Par Value		Additional Paid-In Capital			Accumulated Net Investment Income, Net of Dividends									Net Unrealized Appreciation from Investments, Net of Income Taxes
Balances at December 31, 2015		50,413,744		$	504	$	1,011,467		$	7,181		$	(49,653	)	$	101,395
Public offering of common stock, net of offering costs		321,714			3		9,778			—			—			—
Share-based compensation		—			—		1,589			—			—			—			1,589
Dividend reinvestment		113,631			1		3,255			—			—			—			3,256
Amortization of directors' deferred compensation		—			—		144			—			—			—			144
Issuance of restricted stock, net of forfeited shares		(3,089	)		—		—			—			—			—			—
Dividends to stockholders		—			—		—			(27,284	)		—			—			(27,284	)
Cumulative-effect to retained earnings for excess tax benefit		—			—		—			—			—			1,806			1,806
Net increase (decrease) resulting from operations		—			—		—			27,164			13,603			(23,955	)		16,812

Balances at March 31, 2016		50,846,000		$	508	$	1,026,233		$	7,061		$	(36,050	)	$	79,246		$	1,076,998



Balances at December 31, 2016		54,354,857		$	543	$	1,143,883		$	19,033		$	(58,887	)	$	96,909		$	1,201,481			54,354,857		$	543	$	1,143,883		$	19,033		$	(58,887	)	$	96,909			$	1,201,481
Public offering of common stock, net of offering costs		1,035,286			11		37,700			—			—			—			37,711			1,035,286			11		37,700			—			—			—				37,711
Share-based compensation		—			—		2,269			—			—			—			2,269			—			—		2,269			—			—			—			2,269
Purchase of vested stock for employee payroll tax withholding		(8,964	)		—		(343	)		—			—			—			(343	)		(8,964	)		—		(343	)		—			—			—			(343	)
Dividend reinvestment		48,675			—		1,806			—			—			—			1,806			48,675			—		1,806			—			—			—			1,806
Amortization of directors' deferred compensation		—			—		163			—			—			—			163			—			—		163			—			—			—			163
Forfeited shares of terminated employees		(6,479	)		—		—			—			—			—			—			(6,479	)		—		—			—			—			—			—
Dividends to stockholders		—			—		—			(11,039	)		(19,564	)		—			(30,603	)		—			—		—			(11,039	)		(19,564	)		—			(30,603	)
Net increase (decrease) resulting from operations		—			—		—			25,949			27,565			(22,064	)		31,450			—			—		—			25,949			27,565			(22,064	)		31,450

Balances at March 31, 2017		55,423,375		$	554	$	1,185,478		$	33,943		$	(50,886	)	$	74,845		$	1,243,934			55,423,375		$	554	$	1,185,478		$	33,943		$	(50,886	)	$	74,845		$	1,243,934



Balances at December 31, 2017																						58,660,680		$	586	$	1,310,780		$	7,921		$	(60,114	)	$	121,195		$	1,380,368
Public offering of common stock, net of offering costs																						309,895			4		11,332			—			—			—			11,336
Share-based compensation																						—			—		2,303			—			—			—			2,303
Purchase of vested stock for employee payroll tax withholding																						(5,392	)		—		(212	)		—			—			—			(212	)
Dividend reinvestment																						42,423			—		1,589			—			—			—			1,589
Amortization of directors' deferred compensation																						—			—		206			—			—			—			206
Issuance of restricted stock																						124			—		—			—			—			—			—
Dividends to stockholders																						—			—		—			(33,507	)		—			—			(33,507	)
Net increase (decrease) resulting from operations																						—			—		—			35,601			7,460			(8,544	)		34,517

Balances at March 31, 2018																						59,007,730		$	590	$	1,325,998		$	10,015		$	(52,654	)	$	112,651		$	1,396,600

The accompanying notes are an integral part of these consolidated financial statements

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Statements of Cash Flows

(dollars in thousands)

(Unaudited)

	Three Months Ended March 31,						Three Months Ended March 31,

	2017			2016			2018			2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net increase in net assets resulting from operations	$	31,450		$	16,812		$	34,517		$	31,450
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used in) operating activities:
Investments in portfolio companies		(186,922	)		(113,945	)		(340,405	)		(186,922	)
Proceeds from sales and repayments of debt investments in portfolio companies		184,487			69,028			133,835			184,487
Proceeds from sales and return of capital of equity investments in portfolio companies		37,041			21,891			32,268			37,041
Proceeds from sales and repayments of marketable securities and idle funds investments		—			559
Net change in net unrealized depreciation		16,426			26,218
Net unrealized depreciation								9,523			16,426
Net realized gain		(22,348	)		(13,603	)		(6,086	)		(22,348	)
Accretion of unearned income		(4,703	)		(1,921	)		(3,238	)		(4,703	)
Payment-in-kind interest		(1,607	)		(1,303	)		(576	)		(1,607	)
Cumulative dividends		(877	)		(321	)		(562	)		(877	)
Share-based compensation expense		2,269			1,589			2,303			2,269
Amortization of deferred financing costs		658			644			881			658
Deferred tax (benefit) provision		4,386			(2,633	)		(1,866	)		4,386
Changes in other assets and liabilities:
Interest receivable and other assets		(2,175	)		(2,390	)		(3,467	)		(2,175	)
Interest payable		(632	)		1,226			3,237			(632	)
Accounts payable and other liabilities		(2,284	)		(6,269	)		(4,913	)		(2,284	)
Deferred fees and other		597			632			1,392			597

Net cash provided by (used in) operating activities		55,766			(3,786	)		(143,157	)		55,766
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from public offering of common stock, net of offering costs		37,711			9,781			11,336			37,711
Dividends paid		(28,593	)		(23,990	)		(31,872	)		(28,593	)
Proceeds from issuance of SBIC debentures		25,400			—			22,000			25,400
Repayments of SBIC debentures		(25,200	)		—			(4,000	)		(25,200	)
Proceeds from credit facility		83,000			70,000			194,000			83,000
Repayments on credit facility		(138,000	)		(55,000	)		(70,000	)		(138,000	)
Payment of deferred loan costs and SBIC debenture fees		(616	)		—
Payment of deferred issuance costs and SBIC debenture fees								(533	)		(616	)
Purchases of vested stock for employee payroll tax withholding		(343	)		—			(212	)		(343	)
Other		—			(113	)

Net cash provided by (used in) financing activities		(46,641	)		678			120,719			(46,641	)

Net increase (decrease) in cash and cash equivalents		9,125			(3,108	)		(22,438	)		9,125
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		24,480			20,331			51,528			24,480

CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	33,605		$	17,223		$	29,090		$	33,605



Supplemental cash flow disclosures:
Interest paid	$	8,552		$	6,282		$	6,116		$	8,552
Taxes paid	$	1,677		$	1,172		$	3,320		$	1,677
Non-cash financing activities:
Shares issued pursuant to the DRIP	$	1,806		$	3,256		$	1,589		$	1,806

The accompanying notes are an integral part of these consolidated financial statements

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments

March 31, ~~2017~~2018

(dollars in thousands)

~~(Unaudited)~~(unaudited)



Portfolio Company(1)	Business Description	Type of Investment(2)(3)	Principal(4)		Cost(4)		Fair Value
Portfolio Company(1)(20)									Business Description	Type of Investment(2)(3)(27)	Principal(4)		Cost(4)		Fair Value(18)
Control Investments(5)

Access Media Holdings, LLC(10)	Private Cable Operator								Private Cable Operator
		5% Current / 5% PIK Secured Debt (Maturity—July 22, 2020)	$	22,946	$	22,946	$	19,470
		Preferred Member Units (6,750,000 units; 12% cumulative)				6,644		220
		Member Units (45 units)				1		—

						29,591		19,690

Ameritech College Operations, LLC	For-Profit Nursing and Healthcare College
		10% Secured Debt (Maturity—November 30, 2019)		514		514		514
		13% Secured Debt (Maturity—November 30, 2019)		489		489		489		10% PIK Secured Debt (Maturity—July 22, 2020)(14)(19)	$	23,828	$	23,828	$	15,120
		13% Secured Debt (Maturity—January 31, 2020)		3,025		3,025		3,025		Preferred Member Units (8,550,000 units)				8,444		—
		Preferred Member Units (2,936 units)				6,191		2,810		Member Units (45 units)				1		—

						10,219		6,838						32,273		15,120

ASC Interests, LLC	Recreational and Educational Shooting Facility								Recreational and Educational Shooting Facility
		11% Secured Debt (Maturity—July 31, 2018)		2,050		2,036		2,050		11% Secured Debt (Maturity—July 31, 2018)		1,650		1,647		1,647
		Member Units (1,500 units)(8)				1,500		2,740		Member Units (1,500 units)				1,500		1,370

						3,536		4,790						3,147		3,017

ATS Workholding, LLC(10)									Manufacturer of Machine Cutting Tools and Accessories
										5% Secured Debt (Maturity—November 16, 2021)		4,186		3,735		3,735
										Preferred Member Units (3,725,862 units)				3,726		3,726

														7,461		7,461

Bond-Coat, Inc.	Casing and Tubing Coating Services								Casing and Tubing Coating Services
										12% Secured Debt (Maturity—December 28, 2020)		11,596		11,596		11,596
										Common Stock (57,508 shares)				6,350		9,370

														17,946		20,966

Brewer Crane Holdings, LLC									Provider of Crane Rental and Operating Services
		12% Secured Debt (Maturity—December 28, 2017)		11,596		11,566		11,596		LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 11.66%, Secured Debt (Maturity—January 9, 2023)(9)		9,920		9,825		9,825
		Common Stock (57,508 shares)				6,350		7,600		Preferred Member Units (2,950 units)(8)				4,280		4,280

						17,916		19,196						14,105		14,105

Café Brazil, LLC	Casual Restaurant Group								Casual Restaurant Group
		Member Units (1,233 units)(8)				1,742		5,900		Member Units (1,233 units)(8)				1,742		4,900

CBT Nuggets, LLC	Produces and Sells IT Training Certification Videos
		Member Units (416 units)(8)				1,300		60,620

Charps, LLC	Pipeline Maintenance and Construction
		LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.00%, Secured Debt (Maturity—February 3, 2022)(9)		800		781		781
		12% Secured Debt (Maturity—February 3, 2022)		18,400		18,220		18,220
		Preferred Member Units (1,600 units)				400		400

						19,401		19,401

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, ~~2017~~2018

(dollars in thousands)

~~(Unaudited)~~(unaudited)


Portfolio Company(1)	Business Description	Type of Investment(2)(3)	Principal(4)		Cost(4)		Fair Value
Portfolio Company(1)(20)									Business Description	Type of Investment(2)(3)(27)	Principal(4)		Cost(4)		Fair Value(18)

California Splendor Holdings LLC									Processor of Frozen Fruits
										LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.38%, Secured Debt (Maturity—March 30, 2023)(9)		3,730		3,610		3,610
										LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.38%, Secured Debt (Maturity—March 30, 2023)(9)		28,000		27,723		27,723
										Preferred Member Units (7,143 units)				12,500		12,500

														43,833		43,833

CBT Nuggets, LLC									Produces and Sells IT Training Certification Videos
										Member Units (416 units)(8)				1,300		67,340

Chamberlin Holding LLC									Roofing and Waterproofing Specialty Subcontractor
										LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.13%, Secured Debt (Maturity—February 26, 2023)(9)		21,600		21,389		21,389
										Member Units (4,347 units)				11,440		11,440

														32,829		32,829

Charps, LLC									Pipeline Maintenance and Construction
										12% Secured Debt (Maturity—February 3, 2022)		16,800		16,646		16,646
										Preferred Member Units (1,600 units)				400		1,190

														17,046		17,836

Clad-Rex Steel, LLC	Specialty Manufacturer of Vinyl-Clad Metal								Specialty Manufacturer of Vinyl-Clad Metal
		LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.50%, Secured Debt (Maturity—December 20, 2018)(9)		400		397		397
		LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.50%, Secured Debt (Maturity—December 20, 2021)(9)		14,080		13,946		13,946		LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 11.16%, Secured Debt (Maturity—December 20, 2021)(9)		13,280		13,174		13,280
		Member Units (717 units)				7,280		7,280		Member Units (717 units)(8)				7,280		9,780
		10% Secured Debt (Clad-Rex Steel RE Investor, LLC) (Maturity—December 20, 2036)		1,198		1,186		1,186		10% Secured Debt (Clad-Rex Steel RE Investor, LLC) (Maturity—December 20, 2036)		1,178		1,166		1,178
		Member Units (Clad-Rex Steel RE Investor, LLC) (800 units)				210		210		Member Units (Clad-Rex Steel RE Investor, LLC) (800 units)				210		280

						23,019		23,019						21,830		24,518

CMS Minerals Investments	Oil & Gas Exploration & Production								Oil & Gas Exploration & Production
		Preferred Member Units (CMS Minerals LLC) (458 units)(8)				2,009		3,271		Member Units (CMS Minerals II, LLC) (100 units)(8)				3,294		2,385
		Member Units (CMS Minerals II, LLC) (100 units)(8)				3,716		3,120

Copper Trail Energy Fund I, LP(12)(13)									Investment Partnership
						5,725		6,391		LP Interests (Fully diluted 30.1%)(8)				2,500		2,500

Datacom, LLC	Technology and Telecommunications Provider
		8% Secured Debt (Maturity—May 30, 2017)		1,080		1,080		1,080
		5.25% Current / 5.25% PIK Secured Debt (Maturity—May 30, 2019)		11,867		11,811		11,490
		Class A Preferred Member Units (15% cumulative)				1,181		1,419
		Class B Preferred Member Units (6,453 units)				6,030		1,861

						20,102		15,850

Gamber-Johnson Holdings, LLC	Manufacturer of Ruggedized Computer Mounting Systems
		LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 12.00%, Secured Debt (Maturity—June 24, 2021)(9)		24,080		23,856		24,080
		Member Units (8,619 units)(8)				14,844		22,080

						38,700		46,160

Garreco, LLC	Manufacturer and Supplier of Dental Products
		LIBOR Plus 12.00% (Floor 1.00%), Current Coupon 13.15%, Secured Debt (Maturity—March 31, 2020)(9)		6,025		5,969		5,969
		Member Units (1,200 units)				1,200		1,470

						7,169		7,439

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, ~~2017~~2018

(dollars in thousands)

~~(Unaudited)~~(unaudited)


Portfolio Company(1)	Business Description	Type of Investment(2)(3)	Principal(4)		Cost(4)		Fair Value
Portfolio Company(1)(20)									Business Description	Type of Investment(2)(3)(27)	Principal(4)		Cost(4)		Fair Value(18)

Datacom, LLC									Technology and Telecommunications Provider
										8% Secured Debt (Maturity—May 30, 2018)		1,755		1,755		1,755
										5.25% Current / 5.25% PIK Secured Debt (Maturity—May 30, 2019)(19)		12,511		12,479		10,780
										Class A Preferred Member Units				1,181		220
										Class B Preferred Member Units (6,453 units)				6,030		—

														21,445		12,755

Direct Marketing Solutions, Inc.									Provider of Omni-Channel Direct Marketing Services
										LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 12.75%, Secured Debt (Maturity—February 13, 2023)(9)		18,722		18,523		18,523
										Preferred Stock (8,400 shares)				8,400		8,400

														26,923		26,923

Gamber-Johnson Holdings, LLC									Manufacturer of Ruggedized Computer Mounting Systems
										LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 12.66%, Secured Debt (Maturity—June 24, 2021)(9)		22,910		22,737		22,910
										Member Units (8,619 units)(8)				14,844		26,530

														37,581		49,440

Garreco, LLC									Manufacturer and Supplier of Dental Products
										LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 11.69%, Secured Debt (Maturity—March 31, 2020)(9)		5,362		5,327		5,327
										Member Units (1,200 units)				1,200		1,940

														6,527		7,267

GRT Rubber Technologies LLC	Manufacturer of Engineered Rubber Products								Manufacturer of Engineered Rubber Products
		LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.00%, Secured Debt (Maturity—December 19, 2019)(9)		13,065		12,986		13,065		LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.66%, Secured Debt (Maturity—December 19, 2019)(9)		11,393		11,347		11,393
		Member Units (5,879 units)(8)				13,065		20,310		Member Units (5,879 units)(8)				13,065		23,420

						26,051		33,375						24,412		34,813

Gulf Manufacturing, LLC	Manufacturer of Specialty Fabricated Industrial Piping Products								Manufacturer of Specialty Fabricated Industrial Piping Products
		9% PIK Secured Debt (Ashland Capital IX, LLC) (Maturity—June 30, 2017)		777		777		777		Member Units (438 units)(8)				2,980		10,830
		Member Units (438 units)(8)				2,980		9,190

						3,757		9,967

Gulf Publishing Holdings, LLC	Energy Industry Focused Media and Publishing
		12.5% Secured Debt (Maturity—April 29, 2021)		10,000		9,915		9,915
		Member Units (3,124 units)				3,124		3,460

						13,039		13,375

Harborside Holdings, LLC	Real Estate Holding Company
		Member units (100 units)				6,056		9,400

Harrison Hydra-Gen, Ltd.	Manufacturer of Hydraulic Generators
		Common Stock (107,456 shares)(8)				718		2,800

Hawthorne Customs and Dispatch Services, LLC	Facilitator of Import Logistics, Brokerage, and Warehousing
		Member Units (500 units)				589		280
		Member Units (Wallisville Real Estate, LLC) (588,210 units)(8)				1,215		2,040

						1,804		2,320

HW Temps LLC	Temporary Staffing Solutions
		LIBOR Plus 13.00% (Floor 1.00%), Current Coupon 14.00%, Secured Debt (Maturity July 2, 2020)(9)		9,976		9,904		9,904
		Preferred Member Units (3,200 units)(8)				3,942		3,940

						13,846		13,844

Hydratec, Inc.	Designer and Installer of Micro-Irrigation Systems
		Common Stock (7,095 shares)(8)				7,095		15,640

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, ~~2017~~2018

(dollars in thousands)

~~(Unaudited)~~(unaudited)



Portfolio Company(1)	Business Description	Type of Investment(2)(3)	Principal(4)		Cost(4)		Fair Value
Portfolio Company(1)(20)									Business Description	Type of Investment(2)(3)(27)	Principal(4)		Cost(4)		Fair Value(18)
IDX Broker, LLC	Provider of Marketing and CRM Tools for the Real Estate Industry
Gulf Publishing Holdings, LLC									Energy Industry Focused Media and Publishing
		12.5% Secured Debt (Maturity—November 15, 2018)		10,650		10,610		10,650		12.5% Secured Debt (Maturity—April 29, 2021)		12,698		12,608		12,608
		Member Units (5,400 units)(8)				5,606		8,200		Member Units (3,681 units)				3,681		4,840

						16,216		18,850						16,289		17,448

Indianapolis Aviation Partners, LLC	Fixed Base Operator
Harborside Holdings, LLC									Real Estate Holding Company
										Member units (100 units)				6,306		9,500

Harris Preston Fund Investments(12)(13)									Investment Partnership
										LP Interests (2717 MH, L.P.) (Fully diluted 49.3%)				536		536

Harrison Hydra-Gen, Ltd.									Manufacturer of Hydraulic Generators
										Common Stock (107,456 shares)				718		4,980

HW Temps LLC									Temporary Staffing Solutions
										LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 12.66%, Secured Debt (Maturity July 2, 2020)(9)		9,976		9,922		9,922
										Preferred Member Units (3,200 units)				3,942		3,940

														13,864		13,862

IDX Broker, LLC									Provider of Marketing and CRM Tools for the Real Estate Industry
		15% Secured Debt (Maturity—April 15, 2017)		3,100		3,100		3,100		11.5% Secured Debt (Maturity—November 15, 2020)		14,950		14,828		14,950
		Warrants (1,046 equivalent units)				1,129		2,710		Preferred Member Units (5,607 units)(8)				5,952		11,550

						4,229		5,810						20,780		26,500

Jensen Jewelers of Idaho, LLC	Retail Jewelry Store								Retail Jewelry Store
		Prime Plus 6.75% (Floor 2.00%), Current Coupon 10.50%, Secured Debt (Maturity—November 14, 2019)(9)		3,905		3,850		3,905		Prime Plus 6.75% (Floor 2.00%), Current Coupon 11.25%, Secured Debt (Maturity—November 14, 2019)(9)		3,805		3,771		3,805
		Member Units (627 units)(8)				811		4,460		Member Units (627 units)(8)				811		5,100

						4,661		8,365						4,582		8,905

Lamb Ventures, LLC	Aftermarket Automotive Services Chain
		LIBOR Plus 5.75%, Current Coupon 6.56%, Secured Debt (Maturity May 30, 2018)		305		305		305
		11% Secured Debt (Maturity—May 31, 2018)		7,579		7,579		7,579
		Preferred Equity (non-voting)				400		400
KBK Industries, LLC									Manufacturer of Specialty Oilfield and Industrial Products
		Member Units (742 units)(8)				5,273		6,190		10% Secured Debt (Maturity—September 28, 2020)		75		72		75
		9.5% Secured Debt (Lamb's Real Estate Investment I, LLC) (Maturity—March 31, 2027)		432		428		428		12.5% Secured Debt (Maturity—September 28, 2020)		5,900		5,870		5,900
		Member Units (Lamb's Real Estate Investment I, LLC) (1,000 units)(8)				625		960		Member Units (325 units)(8)				783		4,740

						14,610		15,862						6,725		10,715

Marine Shelters Holdings, LLC	Fabricator of Marine and Industrial Shelters
		12% PIK Secured Debt (Maturity—December 28, 2017)(14)		3,131		3,078		—
		Preferred Member Units (3,810 units)				5,352		—

						8,430		—

MH Corbin Holding LLC	Manufacturer and Distributor of Traffic Safety Products
		10% Secured Debt (Maturity—August 31, 2020)		13,125		13,030		13,030
		Preferred Member Units (4,000 shares)				6,000		6,000

						19,030		19,030

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, ~~2017~~2018

(dollars in thousands)

~~(Unaudited)~~(unaudited)


Portfolio Company(1)	Business Description	Type of Investment(2)(3)	Principal(4)		Cost(4)		Fair Value
Portfolio Company(1)(20)									Business Description	Type of Investment(2)(3)(27)	Principal(4)		Cost(4)		Fair Value(18)

Lamb Ventures, LLC									Aftermarket Automotive Services Chain
										11% Secured Debt (Maturity—July 1, 2022)		8,339		8,298		8,339
										Preferred Equity (non-voting)				400		400
										Member Units (742 units)				5,273		6,730
										9.5% Secured Debt (Lamb's Real Estate Investment I, LLC) (Maturity—March 31, 2027)		432		428		432
										Member Units (Lamb's Real Estate Investment I, LLC) (1,000 units)(8)				625		520

														15,024		16,421

Marine Shelters Holdings, LLC									Fabricator of Marine and Industrial Shelters
										12% PIK Secured Debt (Maturity—December 28, 2017)(14)		3,131		3,078		—
										Preferred Member Units (3,810 units)				5,352		—

														8,430		—

Market Force Information, LLC									Provider of Customer Experience Management Services
										LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 13.01%, Secured Debt (Maturity—July 28, 2022)(9)		22,880		22,676		22,676
										Member Units (657,113 units)				14,700		14,700

														37,376		37,376

MH Corbin Holding LLC									Manufacturer and Distributor of Traffic Safety Products
										10% Secured Debt (Maturity—August 31, 2020)		12,425		12,238		12,238
										Preferred Member Units (4,000 shares)				6,000		6,000

														18,238		18,238

Mid-Columbia Lumber Products, LLC	Manufacturer of Finger-Jointed Lumber Products								Manufacturer of Finger-Jointed Lumber Products
		10% Secured Debt (Maturity—December 18, 2017)		1,750		1,750		1,750		10% Secured Debt (Maturity—January 15, 2020)		1,750		1,743		1,743
		12% Secured Debt (Maturity—December 18, 2017)		3,900		3,900		3,900		12% Secured Debt (Maturity—January 15, 2020)		3,900		3,867		3,867
		Member Units (3,554 units)				1,810		1,980		Member Units (7,874 units)				3,001		2,171
		9.5% Secured Debt (Mid-Columbia Real Estate, LLC) (Maturity—May 13, 2025)		825		825		825		9.5% Secured Debt (Mid-Columbia Real Estate, LLC) (Maturity—May 13, 2025)		780		780		780
		Member Units (Mid-Columbia Real Estate, LLC) (500 units)(8)				790		1,220		Member Units (Mid-Columbia Real Estate, LLC) (500 units)(8)				790		1,290

						9,075		9,675						10,181		9,851

MSC Adviser I, LLC(16)	Third Party Investment Advisory Services								Third Party Investment Advisory Services
		Member Units (Fully diluted 100.0%)(8)				—		33,472		Member Units (Fully diluted 100.0%)(8)				—		48,722

Mystic Logistics Holdings, LLC	Logistics and Distribution Services Provider for Large Volume Mailers
		12% Secured Debt (Maturity—August 15, 2019)		9,164		9,051		9,164
		Common Stock (5,873 shares)				2,720		6,170

						11,771		15,334

NAPCO Precast, LLC	Precast Concrete Manufacturing
		Prime Plus 2.00% (Floor 7.00%), Current Coupon 9.00%, Secured Debt (Maturity—February 1, 2019)(9)		2,713		2,695		2,713
		18% Secured Debt (Maturity—February 1, 2019)		3,952		3,925		3,952
		Member Units (2,955 units)(8)				2,975		10,920

						9,595		17,585

NRI Clinical Research, LLC	Clinical Research Service Provider
		LIBOR Plus 6.50% (Floor 1.50%), Current Coupon 8.00%, Secured Debt (Maturity—September 8, 2017)(9)		400		400		400
		14% Secured Debt (Maturity—September 8, 2017)		4,261		4,239		4,261
		Warrants (251,723 equivalent units)				252		680
		Member Units (500,000 units)				765		2,462

						5,656		7,803

NRP Jones, LLC	Manufacturer of Hoses, Fittings and Assemblies
		8% Current / 4% PIK Secured Debt (Maturity—December 22, 2016)(17)		14,054		14,054		14,054
		Warrants (14,331 equivalent units)				817		130
		Member Units (50,877 units)				2,900		410

						17,771		14,594

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, ~~2017~~2018

(dollars in thousands)

~~(Unaudited)~~(unaudited)


Portfolio Company(1)	Business Description	Type of Investment(2)(3)	Principal(4)		Cost(4)		Fair Value
Portfolio Company(1)(20)									Business Description	Type of Investment(2)(3)(27)	Principal(4)		Cost(4)		Fair Value(18)

Mystic Logistics Holdings, LLC									Logistics and Distribution Services Provider for Large Volume Mailers
										12% Secured Debt (Maturity—August 15, 2019)		7,562		7,501		7,501
										Common Stock (5,873 shares)				2,720		6,050

														10,221		13,551

NAPCO Precast, LLC									Precast Concrete Manufacturing
										LIBOR Plus 8.50%, Current Coupon 10.51%, Secured Debt (Maturity—May 31, 2019)		11,475		11,445		11,475
										Member Units (2,955 units)(8)				2,975		12,180

														14,420		23,655

NexRev LLC									Provider of Energy Efficiency Products & Services
										11% Secured Debt (Maturity—February 28, 2023)		17,440		17,268		17,268
										Preferred Member Units (86,400,000 units)				6,880		6,880

														24,148		24,148

NRI Clinical Research, LLC									Clinical Research Service Provider
										LIBOR Plus 6.50% (Floor 1.50%), Current Coupon 8.19%, Secured Debt (Maturity—January 15, 2019)(9)		400		400		400
										14% Secured Debt (Maturity—January 15, 2019)		3,865		3,836		3,865
										Warrants (251,723 equivalent units; Expiration—January 15, 2026; Strike price—$0.01 per unit)				252		500
										Member Units (1,454,167 units)				765		2,500

														5,253		7,265

NRP Jones, LLC									Manufacturer of Hoses, Fittings and Assemblies
										12% Secured Debt (Maturity—March 20, 2023)		6,376		6,376		6,376
										Member Units (65,962 units)(8)				3,717		4,130

														10,093		10,506

NuStep, LLC	Designer, Manufacturer and Distributor of Fitness Equipment								Designer, Manufacturer and Distributor of Fitness Equipment
		12% Secured Debt (Maturity—January 31, 2022)		20,600		20,394		20,394		12% Secured Debt (Maturity—January 31, 2022)		20,600		20,429		20,429
		Preferred Member Units (406 units)				10,200		10,200		Preferred Member Units (406 units)				10,200		10,200

						30,594		30,594						30,629		30,629

OMi Holdings, Inc.	Manufacturer of Overhead Cranes								Manufacturer of Overhead Cranes
		Common Stock (1,500 shares)(8)				1,080		13,080		Common Stock (1,500 shares)(8)				1,080		14,290

Pegasus Research Group, LLC	Provider of Telemarketing and Data Services
		Member Units (460 units)(8)				1,290		8,440

PPL RVs, Inc.	Recreational Vehicle Dealer
		LIBOR Plus 7.00% (Floor 0.50%), Current Coupon 8.05%, Secured Debt (Maturity—November 15, 2021)(9)		18,000		17,834		17,834
		Common Stock (1,962 shares)(8)				2,150		11,780

						19,984		29,614

Principle Environmental, LLC	Noise Abatement Service Provider
		12% Secured Debt (Maturity—April 30, 2017)		4,060		4,060		4,060
		12% Current / 2% PIK Secured Debt (Maturity—April 30, 2017)		3,394		3,394		3,394
		Preferred Member Units (19,631 units)				4,600		6,260
		Warrants (1,036 equivalent units)				1,200		320

						13,254		14,034

Quality Lease Service, LLC	Provider of Rigsite Accommodation Unit Rentals and Related Services
		8% PIK Secured Debt (Maturity—June 8, 2020)		7,204		7,204		7,204
		Member Units (1,000 units)				2,168		4,239

						9,372		11,443

River Aggregates, LLC	Processor of Construction Aggregates
		Zero Coupon Secured Debt (Maturity—June 30, 2018)		750		646		646
		Member Units (1,150 units)(8)				1,150		4,600
		Member Units (RA Properties, LLC) (1,500 units)				369		2,510

						2,165		7,756

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, ~~2017~~2018

(dollars in thousands)

~~(Unaudited)~~(unaudited)



Portfolio Company(1)	Business Description	Type of Investment(2)(3)	Principal(4)		Cost(4)		Fair Value
Portfolio Company(1)(20)									Business Description	Type of Investment(2)(3)(27)	Principal(4)		Cost(4)		Fair Value(18)
SoftTouch Medical Holdings LLC	Provider of In-Home Pediatric Durable Medical Equipment
Pegasus Research Group, LLC									Provider of Telemarketing and Data Services
										Member Units (460 units)(8)				1,290		10,310

PPL RVs, Inc.									Recreational Vehicle Dealer
		LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.00%, Secured Debt (Maturity—October 31, 2019)(9)		7,140		7,099		7,140		LIBOR Plus 7.00% (Floor 0.50%), Current Coupon 8.69%, Secured Debt (Maturity—November 15, 2021)(9)		16,100		15,978		16,100
		Member Units (4,450 units)(8)				4,930		9,170		Common Stock (1,962 shares)(8)				2,150		11,660

						12,029		16,310						18,128		27,760

The MPI Group, LLC	Manufacturer of Custom Hollow Metal Doors, Frames and Accessories
		9% Secured Debt (Maturity—October 2, 2018)		2,924		2,922		2,922
Principle Environmental, LLC (d/b/a TruHorizon Environmental Solutions)									Noise Abatement Service Provider
		Series A Preferred Units (2,500 units; 10% Cumulative)				2,500		—		13% Secured Debt (Maturity—April 30, 2020)		7,477		7,359		7,477
		Warrants (1,424 equivalent units)				1,096		—		Preferred Member Units (19,631 units)(8)				4,600		13,090
		Member Units (MPI Real Estate Holdings, LLC) (100 units)(8)				2,300		2,390		Warrants (1,018 equivalent units; Expiration—January 31, 2021; Strike price—$0.01 per unit)				1,200		780

						8,818		5,312						13,159		21,347

Uvalco Supply, LLC	Farm and Ranch Supply Store
Quality Lease Service, LLC									Provider of Rigsite Accommodation Unit Rentals and Related Services
		9% Secured Debt (Maturity—January 1, 2019)		756		756		756		Zero Coupon Secured Debt (Maturity—June 8, 2020)		7,341		7,341		6,950
		Member Units (1,867 units)(8)				3,579		4,307		Member Units (1,000 units)				3,293		5,363

						4,335		5,063						10,634		12,313

Vision Interests, Inc.	Manufacturer / Installer of Commercial Signage
River Aggregates, LLC									Processor of Construction Aggregates
		13% Secured Debt (Maturity—December 23, 2018)		2,814		2,814		2,814		Zero Coupon Secured Debt (Maturity—June 30, 2018)		750		728		728
		Series A Preferred Stock (3,000,000 shares)				3,000		3,000		Member Units (1,150 units)				1,150		4,610
		Common Stock (1,126,242 shares)				3,706		—		Member Units (RA Properties, LLC) (1,500 units)				369		2,670

						9,520		5,814						2,247		8,008

Ziegler's NYPD, LLC	Casual Restaurant Group
		6.5% Secured Debt (Maturity—October 1, 2019)		1,000		994		994
		12% Secured Debt (Maturity—October 1, 2019)		300		300		300
		14% Secured Debt (Maturity—October 1, 2019)		2,750		2,750		2,750
		Warrants (587 equivalent units)				600		240
		Preferred Member Units (10,072 units)				2,834		4,100

						7,478		8,384

Subtotal Control Investments (33.3% of total investments at fair value)					$	491,749	$	658,239

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, 2018

(dollars in thousands)

(unaudited)

Portfolio Company(1)(20)	Business Description	Type of Investment(2)(3)(27)		Cost(4)		Fair Value(18)


The MPI Group, LLC	Manufacturer of Custom Hollow Metal Doors, Frames and Accessories
		9% Secured Debt (Maturity—October 2, 2018)	2,924		2,924		1,510
		Series A Preferred Units (2,500 units)			2,500		—
		Warrants (1,424 equivalent units; Expiration—July 1, 2024; Strike price—$0.01 per unit)			1,096		—
		Member Units (MPI Real Estate Holdings, LLC) (100 units)(8)			2,300		2,480

					8,820		3,990

Uvalco Supply, LLC	Farm and Ranch Supply Store
		9% Secured Debt (Maturity—January 1, 2019)	184		184		184
		Member Units (1,867 units)(8)			3,579		3,880

					3,763		4,064

Vision Interests, Inc.	Manufacturer / Installer of Commercial Signage
		13% Secured Debt (Maturity—December 23, 2018)	2,814		2,801		2,801
		Series A Preferred Stock (3,000,000 shares)			3,000		3,000
		Common Stock (1,126,242 shares)			3,706		—

					9,507		5,801

Ziegler's NYPD, LLC	Casual Restaurant Group
		6.5% Secured Debt (Maturity—October 1, 2019)	1,000		997		997
		12% Secured Debt (Maturity—October 1, 2019)	300		300		300
		14% Secured Debt (Maturity—October 1, 2019)	2,750		2,750		2,750
		Warrants (587 equivalent units; Expiration—September 29, 2018; Strike price—$0.01 per unit)			600		—
		Preferred Member Units (10,072 units)			2,834		3,221

					7,481		7,268

Subtotal Control Investments (36.6% of total investments at fair value)				$	649,096	$	846,797

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, ~~2017~~2018

(dollars in thousands)

~~(Unaudited)~~(unaudited)



Portfolio Company(1)	Business Description	Type of Investment(2)(3)	Principal(4)		Cost(4)		Fair Value
Portfolio Company(1)(20)									Business Description	Type of Investment(2)(3)(27)	Principal(4)		Cost(4)		Fair Value(18)
Affiliate Investments(6)

AFG Capital Group, LLC	Provider of Rent-to-Own Financing Solutions and Services								Provider of Rent-to-Own Financing Solutions and Services
		Warrants (42 equivalent units)			$	259	$	690		Warrants (42 equivalent units; Expiration—November 7, 2024; Strike price—$0.01 per unit)			$	259	$	900
		Member Units (186 units)(8)				1,200		2,850		Preferred Member Units (186 units)(8)				1,200		3,760

						1,459		3,540						1,459		4,660

Barfly Ventures, LLC(10)	Casual Restaurant Group								Casual Restaurant Group
		12% Secured Debt (Maturity—August 31, 2020)		7,796		7,667		7,635		12% Secured Debt (Maturity—August 31, 2020)		8,715		8,576		8,715
		Options (2 equivalent units)				397		490		Options (2 equivalent units)				397		920
		Warrant (1 equivalent unit)				473		280		Warrant (1 equivalent unit; Expiration—August 31, 2025; Strike price—$1.00 per unit)				473		520

						8,537		8,405						9,446		10,155

BBB Tank Services, LLC	Maintenance, Repair and Construction Services to the Above-Ground Storage Tank Market								Maintenance, Repair and Construction Services to the Above-Ground Storage Tank Market
		LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.50%, Secured Debt (Maturity—April 8, 2021)(9)		800		797		797		LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.66%, Secured Debt (Maturity—April 8, 2021)(9)		720		700		700
		15% Secured Debt (Maturity—April 8, 2021)		4,027		3,992		3,992		15% Secured Debt (Maturity—April 8, 2021)		4,000		3,883		3,883
		Member Units (800,000 units)				800		800		Member Units (800,000 units)				800		550

						5,589		5,589						5,383		5,133

Boss Industries, LLC	Manufacturer and Distributor of Air, Power and Other Industrial Equipment
		Preferred Member Units (2,242 units)(8)				2,473		2,920

Bridge Capital Solutions Corporation	Financial Services and Cash Flow Solutions Provider
		13% Secured Debt (Maturity—July 25, 2021)		7,500		5,673		5,673
		Warrants (63 equivalent shares)				2,132		3,370
Boccella Precast Products LLC									Manufacturer of Precast Hollow Core Concrete
		13% Secured Debt (Mercury Service Group, LLC) (Maturity—July 25, 2021)		1,000		991		1,000		LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 11.69%, Secured Debt (Maturity—June 30, 2022)(9)		16,582		16,426		16,582
		Preferred Member Units (Mercury Service Group, LLC) (17,742 units)(8)				1,000		1,000		Member Units (2,160,000 units)(8)				2,160		4,860

						9,796		11,043						18,586		21,442

Buca C, LLC	Casual Restaurant Group
Boss Industries, LLC									Manufacturer and Distributor of Air, Power and Other Industrial Equipment
		LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.25%, Secured Debt (Maturity—June 30, 2020)(9)		21,204		21,058		21,058		Preferred Member Units (2,242 units)(8)				2,120		4,740
		Preferred Member Units (6 units; 6% cumulative)(8)				3,995		3,990

						25,053		25,048

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, ~~2017~~2018

(dollars in thousands)

~~(Unaudited)~~(unaudited)



Portfolio Company(1)	Business Description	Type of Investment(2)(3)	Principal(4)		Cost(4)		Fair Value
Portfolio Company(1)(20)									Business Description	Type of Investment(2)(3)(27)	Principal(4)		Cost(4)		Fair Value(18)
CAI Software LLC	Provider of Specialized Enterprise Resource Planning Software
Bridge Capital Solutions Corporation									Financial Services and Cash Flow Solutions Provider
										13% Secured Debt (Maturity—July 25, 2021)		7,500		5,962		5,962
										Warrants (82 equivalent shares; Expiration—July 25, 2026; Strike price—$0.01 per share)				2,132		4,020
		12% Secured Debt (Maturity—October 10, 2019)		3,483		3,463		3,483		13% Secured Debt (Mercury Service Group, LLC) (Maturity—July 25, 2021)		1,000		993		1,000
		Member Units (65,356 units)(8)				654		2,580		Preferred Member Units (Mercury Service Group, LLC) (17,742 units)(8)				1,000		1,000

						4,117		6,063						10,087		11,982

CapFusion, LLC(13)	Non-Bank Lender to Small Businesses
Buca C, LLC									Casual Restaurant Group
										LIBOR Plus 9.25% (Floor 1.00%), Current Coupon 10.94%, Secured Debt (Maturity—June 30, 2020)(9)		20,004		19,904		19,904
										Preferred Member Units (6 units; 6% cumulative)(8)(19)				4,238		4,233

														24,142		24,137

CAI Software LLC									Provider of Specialized Enterprise Resource Planning Software
		13% Secured Debt (Maturity—March 25, 2021)		14,400		13,252		13,252		12% Secured Debt (Maturity—October 10, 2019)		4,083		4,063		4,083
		Warrants (1,600 equivalent units)				1,200		1,200		Member Units (65,356 units)(8)				654		3,230

						14,452		14,452						4,717		7,313

Chandler Signs Holdings, LLC(10)	Sign Manufacturer								Sign Manufacturer
		12% Secured Debt (Maturity—July 4, 2021)		4,500		4,463		4,500		12% Secured Debt (Maturity—July 4, 2021)		4,500		4,470		4,500
		Class A Units (1,500,000 units)(8)				1,500		3,240		Class A Units (1,500,000 units)				1,500		2,180

						5,963		7,740						5,970		6,680

Condit Exhibits, LLC	Tradeshow Exhibits / Custom Displays Provider
		Member Units (3,936 units)(8)				100		1,840

Congruent Credit Opportunities Funds(12)(13)	Investment Partnership
Charlotte Russe, Inc(11)									Fast-Fashion Retailer to Young Women
		LP Interests (Congruent Credit Opportunities Fund II, LP) (Fully diluted 19.8%)(8)				5,730		1,377		8.50% Secured Debt (Maturity—February 2, 2023)		7,992		7,992		7,912
		LP Interests (Congruent Credit Opportunities Fund III, LP) (Fully diluted 17.4%)(8)				17,869		18,577		Common Stock (19,041 shares)				3,141		3,141

						23,599		19,954						11,133		11,053

Dos Rios Partners(12)(13)	Investment Partnership
Condit Exhibits, LLC									Tradeshow Exhibits / Custom Displays Provider
		LP Interests (Dos Rios Partners, LP) (Fully diluted 20.2%)				5,996		5,629		Member Units (3,936 units)(8)				100		1,950
		LP Interests (Dos Rios Partners—A, LP) (Fully diluted 6.4%)				1,904		1,651

						7,900		7,280

Dos Rios Stone Products LLC(10)	Limestone and Sandstone Dimension Cut Stone Mining Quarries
		Class A Units (2,000,000 units)(8)				2,000		2,070

East Teak Fine Hardwoods, Inc.	Distributor of Hardwood Products
		Common Stock (6,250 shares)(8)				480		750

East West Copolymer & Rubber, LLC	Manufacturer of Synthetic Rubbers
		12% Current / 2% PIK Secured Debt (Maturity—October 17, 2019)(14)		9,699		9,591		2,240
		Warrants (2,510,790 equivalent units)				50		—

						9,641		2,240

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, ~~2017~~2018

(dollars in thousands)

~~(Unaudited)~~(unaudited)



Portfolio Company(1)	Business Description	Type of Investment(2)(3)	Principal(4)		Cost(4)		Fair Value
Portfolio Company(1)(20)									Business Description	Type of Investment(2)(3)(27)	Principal(4)		Cost(4)		Fair Value(18)
EIG Fund Investments(12)(13)	Investment Partnership
Congruent Credit Opportunities Funds(12)(13)									Investment Partnership
		LP Interests (EIG Global Private Debt Fund-A, L.P.) (Fully diluted 11.1%)(8)				1,565		1,466		LP Interests (Congruent Credit Opportunities Fund II, LP) (Fully diluted 19.8%)(8)				5,210		480
		LP Interests (EIG Traverse Co-Investment, L.P.) (Fully diluted 22.2%)(8)				9,805		9,973		LP Interests (Congruent Credit Opportunities Fund III, LP) (Fully diluted 17.4%)(8)				17,869		18,754

														23,079		19,234

Dos Rios Partners(12)(13)									Investment Partnership
										LP Interests (Dos Rios Partners, LP) (Fully diluted 20.2%)				5,996		7,246
										LP Interests (Dos Rios Partners—A, LP) (Fully diluted 6.4%)				1,904		2,182

														7,900		9,428

Dos Rios Stone Products LLC(10)									Limestone and Sandstone Dimension Cut Stone Mining Quarries
										Class A Preferred Units (2,000,000 units)(8)				2,000		1,350

East Teak Fine Hardwoods, Inc.									Distributor of Hardwood Products
										Common Stock (6,250 shares)(8)				480		630

EIG Fund Investments(12)(13)									Investment Partnership
						11,370		11,439		LP Interests (EIG Global Private Debt Fund-A, L.P.) (Fully diluted 11.1%)(8)				451		403

Freeport Financial Funds(12)(13)	Investment Partnership								Investment Partnership
		LP Interests (Freeport Financial SBIC Fund LP) (Fully diluted 9.3%)(8)				5,974		5,675		LP Interests (Freeport Financial SBIC Fund LP) (Fully diluted 9.3%)(8)				5,974		5,554
		LP Interests (Freeport First Lien Loan Fund III LP) (Fully diluted 6.0%)(8)				7,559		7,507		LP Interests (Freeport First Lien Loan Fund III LP) (Fully diluted 6.0%)(8)				8,558		8,506

						13,533		13,182						14,532		14,060

Gault Financial, LLC (RMB Capital, LLC)	Purchases and Manages Collection of Healthcare and other Business Receivables								Purchases and Manages Collection of Healthcare and other Business Receivables
		10.5% Secured Debt (Maturity—January 1, 2019)		12,900		12,900		11,950		8% Secured Debt (Maturity—January 1, 2019)		12,483		12,483		11,532
		Warrants (29,032 equivalent units)				400		—		Warrants (29,032 equivalent units; Expiration—February 9, 2022; Strike price—$0.01 per unit)				400		—

						13,300		11,950						12,883		11,532

Glowpoint, Inc.	Provider of Cloud Managed Video Collaboration Services
		12% Secured Debt (Maturity—October 18, 2018)		9,000		8,957		3,010
		Common Stock (7,711,517 shares)				3,958		2,270

						12,915		5,280

Guerdon Modular Holdings, Inc.	Multi-Family and Commercial Modular Construction Company
		13% Secured Debt (Maturity—August 13, 2019)		10,708		10,603		10,603
		Preferred Stock (404,998 shares)				1,140		1,140
		Common Stock (212,033 shares)				2,983		80

						14,726		11,823

Hawk Ridge Systems, LLC(13)	Value-Added Reseller of Engineering Design and Manufacturing Solutions
		10% Secured Debt (Maturity—December 2, 2021)		10,000		9,905		9,905
		Preferred Member Units (226 units)(8)				2,850		2,850
		Preferred Member Units (HRS Services, ULC) (226 units)				150		150

						12,905		12,905

Houston Plating and Coatings, LLC	Provider of Plating and Industrial Coating Services
		Member Units (265,756 units)				1,429		4,230

I-45 SLF LLC(12)(13)	Investment Partnership
		Member Units (Fully diluted 20.0%; 24.4% profits interest)(8)				15,200		15,907

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, ~~2017~~2018

(dollars in thousands)

~~(Unaudited)~~(unaudited)



Portfolio Company(1)	Business Description	Type of Investment(2)(3)	Principal(4)		Cost(4)		Fair Value
Portfolio Company(1)(20)									Business Description	Type of Investment(2)(3)(27)	Principal(4)		Cost(4)		Fair Value(18)
Indianhead Pipeline Services, LLC	Provider of Pipeline Support Services
Guerdon Modular Holdings, Inc.									Multi-Family and Commercial Modular Construction Company
		12% Secured Debt (Maturity—February 6, 2018)		5,417		5,417		5,417		LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.19%, Secured Debt (Maturity—March 1, 2019)(9)		400		394		394
		Preferred Member Units (33,819 units; 8% cumulative)(8)				2,437		2,775		13% Secured Debt (Maturity—March 1, 2019)		10,988		10,926		10,926
		Warrants (31,928 equivalent units)				459		—		Preferred Stock (404,998 shares)				1,140		—
		Member Units (14,732 units)				1		—		Common Stock (212,033 shares)				2,983		—

						8,314		8,192						15,443		11,320

KBK Industries, LLC	Manufacturer of Specialty Oilfield and Industrial Products
Harris Preston Fund Investments(12)(13)									Investment Partnership
										LP Interests (HPEP 3, L.P.) (Fully diluted 9.9%)				1,033		1,033

Hawk Ridge Systems, LLC(13)									Value-Added Reseller of Engineering Design and Manufacturing Solutions
		10% Secured Debt (Maturity—September 28, 2017)		1,175		1,175		1,175		10.5% Secured Debt (Maturity—December 2, 2021)		14,300		14,181		14,300
		12.5% Secured Debt (Maturity—September 28, 2017)		5,900		5,892		5,892		Preferred Member Units (226 units)(8)				2,850		6,223
		Member Units (250 units)				341		2,780		Preferred Member Units (HRS Services, ULC) (226 units)(8)				150		328

						7,408		9,847						17,181		20,851

L.F. Manufacturing Holdings, LLC(10)	Manufacturer of Fiberglass Products
		Member Units (2,179,001 units)				2,019		1,380

OnAsset Intelligence, Inc.	Provider of Transportation Monitoring / Tracking Products and Services
		12% PIK Secured Debt (Maturity—December 31, 2015)(17)		4,654		4,654		4,654
Houston Plating and Coatings, LLC									Provider of Plating and Industrial Coating Services
		Preferred Stock (912 shares; 7% cumulative)				1,981		—		8% Unsecured Convertible Debt (Maturity—May 1, 2022)		3,000		3,000		3,200
		Warrants (5,333 equivalent shares)				1,919		—		Member Units (315,756 units)(8)				2,179		6,660

						8,554		4,654						5,179		9,860

OPI International Ltd.(13)	Provider of Man Camp and Industrial Storage Services
I-45 SLF LLC(12)(13)									Investment Partnership
										Member Units (Fully diluted 20.0%; 24.4% profits interest)(8)				16,200		16,841

L.F. Manufacturing Holdings, LLC(10)									Manufacturer of Fiberglass Products
										Member Units (2,179,001 units)				2,019		2,000

Meisler Operating LLC									Provider of Short-term Trailer and Container Rental
		10% Unsecured Debt (Maturity—April 8, 2018)		473		473		473		LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.20%, Secured Debt (Maturity—June 7, 2022)(9)		18,960		18,779		18,779
		Common Stock (20,766,317 shares)				1,371		380		Member Units (Milton Meisler Holdings LLC) (48,555 units)				4,855		5,570

						1,844		853						23,634		24,349

PCI Holding Company, Inc.	Manufacturer of Industrial Gas Generating Systems
		12% Secured Debt (Maturity—March 31, 2019)		13,000		12,908		13,000
		Preferred Stock (1,500,000 shares; 20% cumulative)(8)				3,551		5,540

						16,459		18,540

Rocaceia, LLC (Quality Lease and Rental Holdings, LLC)	Provider of Rigsite Accommodation Unit Rentals and Related Services
		12% Secured Debt (Maturity—January 8, 2018)(14)(15)		30,785		30,281		250
		Preferred Member Units (250 units)				2,500		—

						32,781		250

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, ~~2017~~2018

(dollars in thousands)

~~(Unaudited)~~(unaudited)


Portfolio Company(1)	Business Description	Type of Investment(2)(3)	Principal(4)		Cost(4)		Fair Value
Portfolio Company(1)(20)									Business Description	Type of Investment(2)(3)(27)	Principal(4)		Cost(4)		Fair Value(18)

OnAsset Intelligence, Inc.									Provider of Transportation Monitoring / Tracking Products and Services
										12% PIK Secured Debt (Maturity—June 30, 2021)(19)		5,247		5,247		5,247
										10% PIK Unsecured Debt (Maturity—June 30, 2021)(19)		49		49		49
										Preferred Stock (912 shares)				1,981		—
										Warrants (5,333 equivalent shares; Expiration—April 18, 2021; Strike price—$0.01 per share)				1,919		—

														9,196		5,296

OPI International Ltd.(13)									Provider of Man Camp and Industrial Storage Services
										Common Stock (20,766,317 shares)				1,371		—

PCI Holding Company, Inc.									Manufacturer of Industrial Gas Generating Systems
										12% Current / 3% PIK Secured Debt (Maturity—March 31, 2019)(19)		12,617		12,571		12,571
										Preferred Stock (1,740,000 shares) (non-voting)				1,740		3,480
										Preferred Stock (1,500,000 shares; 20% cumulative)(8)(19)				3,927		290

														18,238		16,341

Rocaceia, LLC (Quality Lease and Rental Holdings, LLC)									Provider of Rigsite Accommodation Unit Rentals and Related Services
										12% Secured Debt (Maturity—January 8, 2018)(14)(15)		30,785		30,281		250
										Preferred Member Units (250 units)				2,500		—

														32,781		250

Tin Roof Acquisition Company	Casual Restaurant Group								Casual Restaurant Group
		12% Secured Debt (Maturity—November 13, 2018)		13,342		13,232		13,232		12% Secured Debt (Maturity—November 13, 2018)		12,559		12,515		12,515
		Class C Preferred Stock (Fully diluted 10.0%; 10% cumulative)(8)				2,807		2,807		Class C Preferred Stock (Fully diluted 10.0%; 10% cumulative)(8)(19)				3,102		3,102

						16,039		16,039						15,617		15,617

UniTek Global Services, Inc.(11)	Provider of Outsourced Infrastructure Services
		LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity—January 13, 2019)(9)		5,021		5,011		5,021
		LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity—January 13, 2019)(9)		826		826		826
		15% PIK Unsecured Debt (Maturity—July 13, 2019)		773		773		773
		Preferred Stock (4,935,377 shares; 13.5% cumulative)(8)				6,248		6,620
		Common Stock (705,054 shares)				—		2,810

						12,858		16,050

Universal Wellhead Services Holdings, LLC(10)	Provider of Wellhead Equipment, Designs, and Personnel to the Oil & Gas Industry
		Preferred Member Units (UWS Investments, LLC) (716,949 units; 14% cumulative)				717		720
		Member Units (UWS Investments, LLC) (4,000,000 units)				4,000		610

						4,717		1,330

Valley Healthcare Group, LLC	Provider of Durable Medical Equipment
		LIBOR Plus 12.50% (Floor 0.50%), Current Coupon 13.28%, Secured Debt (Maturity—December 29, 2020)(9)		12,856		12,750		12,750
		Preferred Member Units (Valley Healthcare Holding, LLC) (1,600 units)				1,600		1,600

						14,350		14,350

Volusion, LLC	Provider of Online Software-as-a-Service eCommerce Solutions
		11.5% Secured Debt (Maturity—January 26, 2020)		17,500		15,439		15,439
		Preferred Member Units (4,876,670 units)				14,000		14,000
		Warrants (1,831,355 equivalent units)				2,576		2,450

						32,015		31,889

Subtotal Affiliate Investments (16.6% of total investments at fair value)					$	373,895	$	329,024

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, 2018

(dollars in thousands)

(unaudited)

Portfolio Company(1)(20)	Business Description	Type of Investment(2)(3)(27)		Cost(4)		Fair Value(18)


UniTek Global Services, Inc.(11)	Provider of Outsourced Infrastructure Services
		LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.81%, Secured Debt (Maturity—January 13, 2019)(9)	8,535		8,531		8,535
		LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 9.81% / 1.00% PIK, Current Coupon Plus PIK 10.81%, Secured Debt (Maturity—January 13, 2019)(9)(19)	138		138		138
		15% PIK Unsecured Debt (Maturity—July 13, 2019)(19)	897		897		897
		Preferred Stock (2,596,567 shares; 19% cumulative)(8)(19)			2,993		2,980
		Preferred Stock (4,935,377 shares; 13.5% cumulative)(8)(19)			7,609		7,560
		Common Stock (1,075,992 shares)			—		2,680

					20,168		22,790

Universal Wellhead Services Holdings, LLC(10)	Provider of Wellhead Equipment, Designs, and Personnel to the Oil & Gas Industry
		Preferred Member Units (UWS Investments, LLC) (716,949 units)			717		860
		Member Units (UWS Investments, LLC) (4,000,000 units)			4,000		2,030

					4,717		2,890

Valley Healthcare Group, LLC	Provider of Durable Medical Equipment
		LIBOR Plus 12.50% (Floor 0.50%), Current Coupon 14.16%, Secured Debt (Maturity—December 29, 2020)(9)	11,646		11,571		11,571
		Preferred Member Units (Valley Healthcare Holding, LLC) (1,600 units)			1,600		1,740

					13,171		13,311

Volusion, LLC	Provider of Online Software-as-a-Service eCommerce Solutions
		11.5% Secured Debt (Maturity—January 26, 2020)	16,734		15,358		15,358
		Preferred Member Units (4,876,670 units)			14,000		14,000
		Warrants (1,831,355 equivalent units; Expiration—January 26, 2025; Strike price—$0.01 per unit)			2,577		1,471

					31,935		30,829

Subtotal Affiliate Investments (15.5% of total investments at fair value)				$	382,351	$	359,460

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, ~~2017~~2018

(dollars in thousands)

~~(Unaudited)~~(unaudited)



Portfolio Company(1)		Business Description	Type of Investment(2)(3)	Principal(4)		Cost(4)		Fair Value
Portfolio Company(1)(20)											Business Description	Type of Investment(2)(3)(27)	Principal(4)		Cost(4)		Fair Value(18)
Non-Control/Non-Affiliate Investments(7)	Non-Control/Non-Affiliate Investments(7)									Non-Control/Non-Affiliate Investments(7)

AAC Holdings, Inc.(11)(13)											Substance Abuse Treatment Service Provider
												LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 8.52%, Secured Debt (Maturity—June 30, 2023)(9)	$	14,782	$	14,489	$	15,041

Adams Publishing Group, LLC(10)		Local Newspaper Operator									Local Newspaper Operator
			LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.00%, Secured Debt (Maturity—November 3, 2020)(9)	$	7,589	$	7,478	$	7,589			LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.30%, Secured Debt (Maturity—November 3, 2020)(9)		9,894		9,678		9,894

ADS Tactical, Inc.(10)		Value-Added Logistics and Supply Chain Provider to the Defense Industry									Value-Added Logistics and Supply Chain Provider to the Defense Industry
												LIBOR Plus 7.50% (Floor 0.75%), Current Coupon 9.81%, Secured Debt (Maturity—December 31, 2022)(9)		12,948		12,712		12,778

Aethon United BR LP(10)											Oil & Gas Exploration & Production
			LIBOR Plus 7.50% (Floor 0.75%), Current Coupon 8.50%, Secured Debt (Maturity—December 31, 2022)(9)		11,500		11,258		11,258			LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 8.46%, Secured Debt (Maturity—September 8, 2023)(9)		3,438		3,390		3,390

Ahead, LLC(10)		IT Infrastructure Value Added Reseller									IT Infrastructure Value Added Reseller
			LIBOR Plus 6.50%, Current Coupon 7.65%, Secured Debt (Maturity—November 2, 2020)		14,063		13,742		13,922			LIBOR Plus 6.50%, Current Coupon 8.81%, Secured Debt (Maturity—November 2, 2020)		8,434		8,283		8,487

Allflex Holdings III Inc.(11)		Manufacturer of Livestock Identification Products									Manufacturer of Livestock Identification Products
			LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.00%, Secured Debt (Maturity—July 19, 2021)(9)		14,795		14,710		14,826			LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.74%, Secured Debt (Maturity—July 19, 2021)(9)		13,846		13,785		13,935

American Scaffold Holdings, Inc.(10)		Marine Scaffolding Service Provider									Marine Scaffolding Service Provider
			LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—March 31, 2022)(9)		7,313		7,216		7,276			LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.80%, Secured Debt (Maturity—March 31, 2022)(9)		6,938		6,858		6,903

American Teleconferencing Services, Ltd.(11)		Provider of Audio Conferencing and Video Collaboration Solutions									Provider of Audio Conferencing and Video Collaboration Solutions
			LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—December 8, 2021)(9)		11,018		10,242		11,018			LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.29%, Secured Debt (Maturity—December 8, 2021)(9)		15,592		14,964		15,588
			LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.50%, Secured Debt (Maturity—June 6, 2022)(9)		3,714		3,573		3,573

							13,815		14,591

Anchor Hocking, LLC(11)		Household Products Manufacturer									Household Products Manufacturer
			LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.00%, Secured Debt (Maturity—June 4, 2018)(9)		2,271		2,271		2,226			LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 11.02%, Secured Debt (Maturity—June 4, 2020)(9)		2,248		2,209		2,226
			Member Units (440,620 units)				4,928		3,305			Member Units (440,620 units)				4,928		3,718

							7,199		5,531							7,137		5,944

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, ~~2017~~2018

(dollars in thousands)

~~(Unaudited)~~(unaudited)


Portfolio Company(1)	Business Description	Type of Investment(2)(3)	Principal(4)		Cost(4)		Fair Value

AP Gaming I, LLC(10)	Developer, Manufacturer, and Operator of Gaming Machines
		LIBOR Plus 8.25% (Floor 1.00%), Current Coupon 9.25%, Secured Debt (Maturity—December 20, 2020)(9)		7,190		7,086		7,258
Portfolio Company(1)(20)									Business Description	Type of Investment(2)(3)(27)	Principal(4)		Cost(4)		Fair Value(18)

Apex Linen Service, Inc.	Industrial Launderers								Industrial Launderers
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—October 30, 2022)(9)		2,400		2,400		2,400		LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.66%, Secured Debt (Maturity—October 30, 2022)(9)		2,400		2,400		2,400
		13% Secured Debt (Maturity—October 30, 2022)		14,416		14,340		14,340		16% Secured Debt (Maturity—October 30, 2022)		14,416		14,349		14,349

						16,740		16,740						16,749		16,749

Arcus Hunting LLC.(10)	Manufacturer of Bowhunting and Archery Products and Accessories								Manufacturer of Bowhunting and Archery Products and Accessories
		LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.00%, Secured Debt (Maturity—November 13, 2019)(9)		13,912		13,773		13,912		LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.69%, Secured Debt (Maturity—November 13, 2019)(9)		14,175		14,091		14,175

Artel, LLC(11)	Provider of Secure Satellite Network and IT Solutions
Arise Holdings, Inc.(10)									Tech-Enabled Business Process Outsourcing
		LIBOR Plus 7.00% (Floor 1.25%), Current Coupon 8.25%, Secured Debt (Maturity—November 27, 2017)(9)		7,330		7,215		7,330		Preferred Stock (1,000,000 shares)				1,000		1,000

ATI Investment Sub, Inc.(11)	Manufacturer of Solar Tracking Systems								Manufacturer of Solar Tracking Systems
		LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.25%, Secured Debt (Maturity—June 22, 2021)(9)		9,250		9,083		9,227		LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 9.13%, Secured Debt (Maturity—June 22, 2021)(9)		7,114		6,974		7,106

ATS Workholding, Inc.(10)	Manufacturer of Machine Cutting Tools and Accessories
		LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.50%, Secured Debt (Maturity—March 10, 2019)(9)		6,173		6,149		5,659

ATX Networks Corp.(11)(13)	Provider of Radio Frequency Management Equipment
ATX Networks Corp.(11)(13)(21)									Provider of Radio Frequency Management Equipment
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.15%, Secured Debt (Maturity—June 11, 2021)(9)		9,765		9,620		9,668		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.31% / 1.00% PIK, Current Coupon Plus PIK 8.31%, Secured Debt (Maturity—June 11, 2021)(9)(19)		9,515		9,414		8,849

Berry Aviation, Inc.(10)	Airline Charter Service Operator								Airline Charter Service Operator
		12.00% Current / 1.75% PIK Secured Debt (Maturity—January 30, 2020)		5,627		5,590		5,627		Common Stock (553 shares)				400		1,470
		Common Stock (553 shares)				400		820
BigName Commerce, LLC(10)									Provider of Envelopes and Complimentary Stationery Products
										LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.94%, Secured Debt (Maturity—May 11, 2022)(9)		2,472		2,446		2,446

Binswanger Enterprises, LLC(10)									Glass Repair and Installation Service Provider
										LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.31%, Secured Debt (Maturity—March 9, 2022)(9)		15,267		15,016		15,148
										Member Units (1,050,000 units)				1,050		1,000

						5,990		6,447						16,066		16,148

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, ~~2017~~2018

(dollars in thousands)

~~(Unaudited)~~(unaudited)


Portfolio Company(1)	Business Description	Type of Investment(2)(3)	Principal(4)		Cost(4)		Fair Value

Binswanger Enterprises, LLC(10)	Glass Repair and Installation Service Provider
		LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.06%, Secured Debt (Maturity—March 9, 2022)(9)		15,460		15,155		15,155
		Member Units (1,050,000 units)				1,050		1,050

						16,205		16,205
Portfolio Company(1)(20)									Business Description	Type of Investment(2)(3)(27)	Principal(4)		Cost(4)		Fair Value(18)

Bluestem Brands, Inc.(11)	Multi-Channel Retailer of General Merchandise								Multi-Channel Retailer of General Merchandise
		LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity—November 6, 2020)(9)		12,692		12,466		10,471		LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 9.38%, Secured Debt (Maturity—November 6, 2020)(9)		11,939		11,781		8,417

Brainworks Software, LLC(10)	Advertising Sales and Newspaper Circulation Software								Advertising Sales and Newspaper Circulation Software
		Prime Plus 9.25% (Floor 3.25%), Current Coupon 13.25%, Secured Debt (Maturity—July 22, 2019)(9)		6,733		6,688		6,491		Prime Plus 9.25% (Floor 3.25%), Current Coupon 14.00%, Secured Debt (Maturity—July 22, 2019)(9)		6,733		6,709		6,577

Brightwood Capital Fund Investments(12)(13)	Investment Partnership								Investment Partnership
		LP Interests (Brightwood Capital Fund III, LP) (Fully diluted 1.6%)(8)				12,000		10,271		LP Interests (Brightwood Capital Fund III, LP) (Fully diluted 1.6%)(8)				12,000		10,463
		LP Interests (Brightwood Capital Fund IV, LP) (Fully diluted 0.9%)				500		500		LP Interests (Brightwood Capital Fund IV, LP) (Fully diluted 0.8%)(8)				1,000		1,063

						12,500		10,771						13,000		11,526

Brundage-Bone Concrete Pumping, Inc.(11)	Construction Services Provider								Construction Services Provider
		10.375% Secured Debt (Maturity—September 1, 2021)		3,000		2,986		3,150		10.375% Secured Debt (Maturity—September 1, 2023)		3,000		2,988		3,195

Cadence Aerospace LLC(10)									Aerostructure Manufacturing
										LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.33%, Secured Debt (Maturity—November 14, 2023)(9)		14,963		14,820		14,820

California Pizza Kitchen, Inc.(11)	Casual Restaurant Group								Casual Restaurant Group
										LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.88%, Secured Debt (Maturity—August 23, 2022)(9)		12,837		12,799		12,606

CapFusion, LLC(13)									Non-Bank Lender to Small Businesses
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—August 23, 2022)(9)		7,967		7,922		7,969		13% Secured Debt (Maturity—March 25, 2021)(14)		6,266		5,206		1,432

CDHA Management, LLC(10)	Dental Services								Dental Services
		LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.25%, Secured Debt (Maturity—December 5, 2021)(9)		4,227		4,154		4,154		LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.76%, Secured Debt (Maturity—December 5, 2021)(9)		5,062		5,006		5,062

Cengage Learning Acquisitions, Inc.(11)	Provider of Educational Print and Digital Services
Central Security Group, Inc.(11)									Security Alarm Monitoring Service Provider
		LIBOR Plus 4.25% (Floor 1.00%), Current Coupon 5.25%, Secured Debt (Maturity—June 7, 2023)(9)		9,459		8,854		9,049		LIBOR Plus 5.63% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—October 6, 2021)(9)		7,461		7,444		7,480

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, ~~2017~~2018

(dollars in thousands)

~~(Unaudited)~~(unaudited)

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

Cenveo Corporation(11)

Provider of Commercial Printing, Envelopes, Labels, and Printed Office Products

6% Secured Debt (Maturity—August 1, 2019)
15,130 13,073 12,482

Charlotte Russe, Inc(11)

Fast-Fashion Retailer to Young Women

LIBOR Plus 5.50% (Floor 1.25%), Current Coupon 6.75%, Secured Debt (Maturity—May 22, 2019)(9)
14,346 14,160 9,134

Clarius BIGS, LLC(10)

Prints & Advertising Film Financing

15% PIK Secured Debt (Maturity—January 5, 2015)(14)(17)
2,928 2,928 88

Compact Power Equipment, Inc.

Equipment / Tool Rental

12% Secured Debt (Maturity—October 1, 2017)
4,100 4,097 4,100

Series A Preferred Stock (4,298,435 shares)
1,079 4,580

5,176 8,680

Construction Supply Investments, LLC(10)(13)

Distribution Platform of Specialty Construction Materials to Professional Concrete and Masonry Contractors

LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.50%, Secured Debt (Maturity—June 30, 2023)(9)
8,500 8,418 8,418

Member Units (20,000 units)
2,000 2,000

10,418 10,418

ContextMedia Health, LLC(11)

Provider of Healthcare Media Content

LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—December 23, 2021)(9)
7,900 7,132 7,900

Covenant Surgical Partners, Inc.(11)

Ambulatory Surgical Centers

8.75% Secured Debt (Maturity—August 1, 2019)
2,800 2,744 2,660

CST Industries Inc.(11)

Storage Tank Manufacturer

LIBOR Plus 6.25% (Floor 1.50%), Current Coupon 7.75%, Secured Debt (Maturity—May 22, 2017)(9)
9,102 9,096 9,011

Portfolio Company(1)(20)	Business Description	Type of Investment(2)(3)(27)


Cenveo Corporation(11)	Provider of Commercial Printing, Envelopes, Labels, and Printed Office Products
		LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.79%, Secured Debt (Maturity—November 2, 2018)(9)	6,089	6,038	6,119
		6% Secured Debt (Maturity—August 1, 2019)	19,130	17,126	8,609

				23,164	14,728

Chloe Ox Parent, LLC(11)	In-Home Health Risk Assessment Provider
		LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 7.30%, Secured Debt (Maturity—December 23, 2024)(9)	7,400	7,328	7,492

Clarius BIGS, LLC(10)	Prints & Advertising Film Financing
		15% PIK Secured Debt (Maturity—January 5, 2015)(14)(17)	2,924	2,924	82

Clickbooth.com, LLC(10)	Provider of Digital Advertising Performance Marketing Solutions
		LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.19%, Secured Debt (Maturity—December 5, 2022)(9)	2,981	2,925	2,925

Community Care Health Network, LLC(11)	In-Home Health Risk Assessment Provider
		LIBOR Plus 4.75% (Floor 1.00%), Current Coupon 6.74%, Secured Debt (Maturity—February 16, 2025)(9)	3,188	3,180	3,215

Construction Supply Investments, LLC(10)	Distribution Platform of Specialty Construction Materials to Professional Concrete and Masonry Contractors
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.88%, Secured Debt (Maturity—June 30, 2023)(9)	6,938	6,905	6,920
		Member Units (28,000 units)		3,723	3,723

				10,628	10,643

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, ~~2017~~2018

(dollars in thousands)

~~(Unaudited)~~(unaudited)


Portfolio Company(1)	Business Description	Type of Investment(2)(3)	Principal(4)		Cost(4)		Fair Value
Portfolio Company(1)(20)									Business Description	Type of Investment(2)(3)(27)	Principal(4)		Cost(4)		Fair Value(18)

CTVSH, PLLC(10)									Emergency Care and Specialty Service Animal Hospital
										LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.01%, Secured Debt (Maturity—August 3, 2022)(9)		11,700		11,595		11,595

Darr Equipment LP(10)	Heavy Equipment Dealer								Heavy Equipment Dealer
		12% Current / 2% PIK Secured Debt (Maturity—April 15, 2020)		21,236		20,828		20,879		11.5% Current / 1% PIK Secured Debt (Maturity—June 22, 2023)(19)		7,247		7,247		7,247
		Warrants (915,734 equivalent units)				474		10		Warrants (915,734 equivalent units; Expiration—December 23, 2023; Strike price—$1.50 per unit)				474		10

						21,302		20,889						7,721		7,257

Digital River, Inc.(11)	Provider of Outsourced e-Commerce Solutions and Services								Provider of Outsourced e-Commerce Solutions and Services
		LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.63%, Secured Debt (Maturity—February 12, 2021)(9)		15,184		15,091		15,260		LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.61%, Secured Debt (Maturity—February 12, 2021)(9)		10,146		10,052		10,146

Digital Room LLC(11)	Pure-Play e-Commerce Print Business
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—November 21, 2022)(9)		7,530		7,385		7,454

Drilling Info Holdings, Inc.	Information Services for the Oil and Gas Industry								Information Services for the Oil and Gas Industry
		Common Stock (3,788,865 shares)				1,335		10,100

ECP-PF Holdings Group, Inc.(10)	Fitness Club Operator
		LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.00%, Secured Debt (Maturity—November 26, 2019)(9)		5,625		5,592		5,625		Common Stock (3,788,865 shares)(8)				—		9,010

EnCap Energy Fund Investments(12)(13)	Investment Partnership								Investment Partnership
		LP Interests (EnCap Energy Capital Fund VIII, L.P.) (Fully diluted 0.1%)(8)				3,791		2,225		LP Interests (EnCap Energy Capital Fund VIII, L.P.) (Fully diluted 0.1%)(8)				3,487		1,623
		LP Interests (EnCap Energy Capital Fund VIII Co-Investors, L.P.) (Fully diluted 0.4%)				2,200		1,413		LP Interests (EnCap Energy Capital Fund VIII Co-Investors, L.P.) (Fully diluted 0.4%)(8)				2,072		1,122
		LP Interests (EnCap Energy Capital Fund IX, L.P.) (Fully diluted 0.1%)(8)				3,908		3,696		LP Interests (EnCap Energy Capital Fund IX, L.P.) (Fully diluted 0.1%)(8)				4,317		3,732
		LP Interests (Encap Energy Capital Fund X, L.P.) (Fully diluted 0.1%)(8)				3,353		3,353		LP Interests (EnCap Energy Capital Fund X, L.P.) (Fully diluted 0.1%)(8)				6,870		6,933
		LP Interests (EnCap Flatrock Midstream Fund II, L.P.) (Fully diluted 0.8%)(8)				8,757		9,983		LP Interests (EnCap Flatrock Midstream Fund II, L.P.) (Fully diluted 0.8%)(8)				5,864		5,015
		LP Interests (EnCap Flatrock Midstream Fund III, L.P.) (Fully diluted 0.2%)(8)				2,715		2,716		LP Interests (EnCap Flatrock Midstream Fund III, L.P.) (Fully diluted 0.2%)(8)				3,015		2,716

						24,724		23,386						25,625		21,141

Evergreen Skills Lux S.á r.l. (d/b/a Skillsoft)(11)(13)	Technology-based Performance Support Solutions								Technology-based Performance Support Solutions
		LIBOR Plus 8.25% (Floor 1.00%), Current Coupon 9.25%, Secured Debt (Maturity—April 28, 2022)(9)		7,000		6,862		4,888		LIBOR Plus 8.25% (Floor 1.00%), Current Coupon 10.13%, Secured Debt (Maturity—April 28, 2022)(9)		6,999		6,883		6,264

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, ~~2017~~2018

(dollars in thousands)

~~(Unaudited)~~(unaudited)


Portfolio Company(1)	Business Description	Type of Investment(2)(3)	Principal(4)		Cost(4)		Fair Value
Portfolio Company(1)(20)									Business Description	Type of Investment(2)(3)(27)	Principal(4)		Cost(4)		Fair Value(18)

Extreme Reach, Inc.(11)									Integrated TV and Video Advertising Platform
										LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 8.13%, Secured Debt (Maturity—February 7, 2020)(9)		14,217		14,205		14,199

Felix Investments Holdings II(10)									Oil & Gas Exploration & Production
										LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.30%, Secured Debt (Maturity—August 9, 2022)(9)		3,333		3,270		3,270

Flavors Holdings Inc.(11)	Global Provider of Flavoring and Sweetening Products and Solutions								Global Provider of Flavoring and Sweetening Products
		LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 6.90%, Secured Debt (Maturity—April 3, 2020)(9)		13,661		13,056		11,800		LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 8.05%, Secured Debt (Maturity—April 3, 2020)(9)		12,881		12,470		11,657

GI KBS Merger Sub LLC(11)	Outsourced Janitorial Services to Retail/Grocery Customers								Outsourced Janitorial Services to Retail/Grocery Customers
		LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.00%, Secured Debt (Maturity—October 29, 2021)(9)		6,900		6,812		6,814		LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.98%, Secured Debt (Maturity—October 29, 2021)(9)		9,270		9,200		9,351
		LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity—April 29, 2022)(9)		3,800		3,642		3,648		LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.27%, Secured Debt (Maturity—April 29, 2022)(9)		3,915		3,775		3,974

						10,454		10,462						12,975		13,325

Grace Hill, LLC(10)	Online Training Tools for the Multi-Family Housing Industry
		Prime Plus 5.25% (Floor 1.00%), Current Coupon 9.25%, Secured Debt (Maturity—August 15, 2019)(9)		883		873		883
		LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.36%, Secured Debt (Maturity—August 15, 2019)(9)		11,494		11,421		11,494

GoWireless Holdings, Inc.(11)									Provider of Wireless Telecommunications Carrier Services
						12,294		12,377		LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.38%, Secured Debt (Maturity—December 22, 2024)(9)		17,775		17,601		17,753

Great Circle Family Foods, LLC(10)	Quick Service Restaurant Franchise								Quick Service Restaurant Franchise
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—October 28, 2019)(9)		7,547		7,502		7,547		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.69%, Secured Debt (Maturity—October 28, 2019)(9)		7,119		7,091		7,119

Grupo Hima San Pablo, Inc.(11)	Tertiary Care Hospitals								Tertiary Care Hospitals
		LIBOR Plus 7.00% (Floor 1.50%), Current Coupon 8.50%, Secured Debt (Maturity—January 31, 2018)(9)		4,800		4,780		3,456		LIBOR Plus 7.00% (Floor 1.50%), Current Coupon 8.77%, Secured Debt (Maturity—January 31, 2018)(9)(17)		4,750		4,750		3,543
		13.75% Secured Debt (Maturity—July 31, 2018)		2,000		1,967		300		13.75% Secured Debt (Maturity—July 31, 2018)		2,055		2,040		226

						6,747		3,756						6,790		3,769

GST Autoleather, Inc.(11)	Automotive Leather Manufacturer
		LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 6.65%, Secured Debt (Maturity—July 10, 2020)(9)		14,305		14,188		14,001

Guitar Center, Inc.(11)	Musical Instruments Retailer
		6.5% Secured Debt (Maturity—April 15, 2019)		15,625		14,863		13,125

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, ~~2017~~2018

(dollars in thousands)

~~(Unaudited)~~(unaudited)

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

Hojeij Branded Foods, LLC(10)

Multi-Airport, Multi- Concept Restaurant Operator

LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—July 27, 2021)(9)
5,776 5,732 5,776

Hoover Group, Inc.(10)(13)

Provider of Storage Tanks and Related Products to the Energy and Petrochemical Markets

LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.30%, Secured Debt (Maturity—January 28, 2021)(9)
8,524 7,972 7,928

Hostway Corporation(11)

Managed Services and Hosting Provider

LIBOR Plus 6.75% (Floor 1.25%), Current Coupon 8.00%, Secured Debt (Maturity—December 13, 2019)(9)
10,426 10,370 10,215

Hunter Defense Technologies, Inc.(11)

Provider of Military and Commercial Shelters and Systems

LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—August 5, 2019)(9)
9,400 8,960 8,742

iEnergizer Limited(11)(13)

Provider of Business Outsourcing Solutions

LIBOR Plus 6.00% (Floor 1.25%), Current Coupon 7.25%, Secured Debt (Maturity—May 1, 2019)(9)
13,128 12,726 13,079

Indivior Finance LLC(11)(13)

Specialty Pharmaceutical Company Treating Opioid Dependence

LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—December 19, 2019)(9)
3,646 3,490 3,673

Industrial Container Services, LLC(10)

Steel Drum Reconditioner

LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 6.75%, Secured Debt (Maturity—December 31, 2018)(9)
8,688 8,673 8,688

Industrial Services Acquisition, LLC(10)

Industrial Cleaning Services

11.25% Current / 0.75% PIK Unsecured Debt (Maturity— December 17, 2022)
4,527 4,444 4,444

Member Units (Industrial Services Investments, LLC) (900,000 units)
900 810

5,344 5,254

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Consolidated Schedule of Investments (Continued)~~

~~March 31, 2017~~

~~(dollars in thousands)~~

~~(Unaudited)~~

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

Infinity Acquisition Finance Corp.(11)

Application Software for Capital Markets

7.25% Unsecured Debt (Maturity—August 1, 2022)
5,700 5,378 5,216

Inn of the Mountain Gods Resort and Casino(11)

Hotel & Casino Owner & Operator

9.25% Secured Debt (Maturity—November 30, 2020)
6,249 5,941 5,624

Intertain Group Limited(11)(13)

Business-to-Consumer Online Gaming Operator

LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—April 8, 2022)(9)
4,301 4,243 4,344

iPayment, Inc.(11)

Provider of Merchant Acquisition

LIBOR Plus 5.25% (Floor 1.50%), Current Coupon 6.75%, Secured Debt (Maturity—May 8, 2017)(9)
16,918 16,909 16,833

iQor US Inc.(11)

Business Process Outsourcing Services Provider

LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.00%, Secured Debt (Maturity—April 1, 2021)(9)
9,787 9,653 9,566

irth Solutions, LLC

Provider of Damage Prevention Information Technology Services

Member Units (27,893 units)
1,441 1,920

Jackmont Hospitality, Inc.(10)

Franchisee of Casual Dining Restaurants

LIBOR Plus 4.25% (Floor 1.00%), Current Coupon 5.25% / 2.50% PIK, Current Coupon Plus PIK 7.75%, Secured Debt (Maturity—May 26, 2021)(9)
4,473 4,457 4,473

Joerns Healthcare, LLC(11)

Manufacturer and Distributor of Health Care Equipment & Supplies

LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.05% / 0.50% PIK, Current Coupon Plus PIK 7.55%, Secured Debt (Maturity—May 9, 2020)(9)
14,617 14,493 13,156

Portfolio Company(1)(20)	Business Description	Type of Investment(2)(3)(27)


Guitar Center, Inc.(11)	Musical Instruments Retailer
		6.5% Secured Debt (Maturity—April 15, 2019)	16,625	16,118	16,558

Hojeij Branded Foods, LLC(10)	Multi-Airport, Multi- Concept Restaurant Operator
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.89%, Secured Debt (Maturity—July 20, 2022)(9)	12,107	11,999	12,107

Hoover Group, Inc.(10)(13)	Provider of Storage Tanks and Related Products to the Energy and Petrochemical Markets
		LIBOR Plus 6.00%, Current Coupon 7.75%, Secured Debt (Maturity—January 28, 2020)	7,500	6,744	6,703
		LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 9.15%, Secured Debt (Maturity—January 28, 2021)(9)	8,438	7,995	7,805

				14,739	14,508

Hostway Corporation(11)	Managed Services and Hosting Provider
		LIBOR Plus 5.25% (Floor 1.25%), Current Coupon 6.94% / 0.50% PIK, Current Coupon Plus PIK 7.44%, Secured Debt (Maturity—December 13, 2019)(9)(19)	30,610	29,860	29,769

Houghton Mifflin Harcourt Publishers Inc.(11)(13)	Provider of Educational Print and Digital Services
		LIBOR Plus 3.00% (Floor 1.00%), Current Coupon 4.88%, Secured Debt (Maturity—May 28, 2021)(9)	15,224	14,279	13,949

Hunter Defense Technologies, Inc.(10)	Provider of Military and Commercial Shelters and Systems
		LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.30%, Secured Debt (Maturity—March 29, 2023)(9)	41,022	40,099	40,099

Hydrofarm Holdings LLC(10)	Wholesaler of Horticultural Products
		LIBOR Plus 7.00%, Current Coupon 8.73%, Secured Debt (Maturity—May 12, 2022)	6,623	6,510	6,236

iEnergizer Limited(11)(13)(21)	Provider of Business Outsourcing Solutions
		LIBOR Plus 6.00% (Floor 1.25%), Current Coupon 7.88%, Secured Debt (Maturity—May 1, 2019)(9)	11,758	11,571	11,773

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, ~~2017~~2018

(dollars in thousands)

~~(Unaudited)~~(unaudited)

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

Keypoint Government Solutions, Inc.(11)

Provider of Pre-Employment Screening Services

LIBOR Plus 6.50% (Floor 1.25%), Current Coupon 7.75%, Secured Debt (Maturity—November 13, 2017)(9)
5,248 5,236 5,221

LaMi Products, LLC(10)

General Merchandise Distribution

LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.62%, Secured Debt (Maturity—September 16, 2020)(9)
11,044 10,971 11,044

Larchmont Resources, LLC(11)

Oil & Gas Exploration & Production

LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.00%, PIK Secured Debt (Maturity—August 7, 2020)(9)
2,316 2,316 2,308

Member Units (Larchmont Intermediate Holdco, LLC) (2,828 units)
353 954

2,669 3,262

LKCM Headwater Investments I, L.P.(12)(13)

Investment Partnership

LP Interests (Fully diluted 2.3%)
2,500 3,967

Logix Acquisition Company, LLC(10)

Competitive Local Exchange Carrier

LIBOR Plus 8.28% (Floor 1.00%), Current Coupon 9.28%, Secured Debt (Maturity—June 24, 2021)(9)
8,515 8,386 8,515

Looking Glass Investments, LLC(12)(13)

Specialty Consumer Finance

9% Unsecured Debt (Maturity—June 30, 2020)
188 188 188

Member Units (2.5 units)
125 125

Member Units (LGI Predictive Analytics LLC) (190,712 units)(8)
132 132

445 445

Messenger, LLC(10)

Supplier of Specialty Stationery and Related Products to the Funeral Industry

LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.25%, Secured Debt (Maturity—September 9, 2020)(9)
14,403 14,331 14,403

Portfolio Company(1)(20)	Business Description	Type of Investment(2)(3)(27)


Implus Footcare, LLC(10)	Provider of Footwear and Related Accessories
		LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 8.74%, Secured Debt (Maturity—April 30, 2021)(9)	19,270	19,029	19,156

Industrial Services Acquisition, LLC(10)	Industrial Cleaning Services
		6% Current / 7% PIK Unsecured Debt (Maturity—December 17, 2022)(19)	4,633	4,561	4,414
		Preferred Member Units (Industrial Services Investments, LLC) (144 units; 10% cumulative)(8)(19)		88	86
		Member Units (Industrial Services Investments, LLC) (900 units)		900	300

				5,549	4,800

Inn of the Mountain Gods Resort and Casino(11)	Hotel & Casino Owner & Operator
		9.25% Secured Debt (Maturity—November 30, 2020)	6,249	6,013	5,687

iPayment, Inc.(11)	Provider of Merchant Acquisition
		LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.62%, Secured Debt (Maturity—April 11, 2023)(9)	11,970	11,865	12,120

irth Solutions, LLC	Provider of Damage Prevention Information Technology Services
		Member Units (27,893 units)		1,441	1,970

Jacent Strategic Merchandising, LLC(10)	General Merchandise Distribution
		LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.53%, Secured Debt (Maturity—September 16, 2020)(9)	10,982	10,931	10,982

Jackmont Hospitality, Inc.(10)	Franchisee of Casual Dining Restaurants
		LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 8.40%, Secured Debt (Maturity—May 26, 2021)(9)	4,275	4,265	4,275

Jacuzzi Brands LLC(11)	Manufacturer of Bath and Spa Products
		LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.30%, Secured Debt (Maturity—June 28, 2023)(9)	3,925	3,854	3,964

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, ~~2017~~2018

(dollars in thousands)

~~(Unaudited)~~(unaudited)

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

Minute Key, Inc.

Operator of Automated Key Duplication Kiosks

10% Current / 2% PIK Secured Debt (Maturity—September 19, 2019)
15,778 15,505 15,505

Warrants (1,437,409 equivalent units)
280 800

15,785 16,305

Mood Media Corporation(11)(13)

Provider of Electronic Equipment

LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.15%, Secured Debt (Maturity—May 1, 2019)(9)
14,767 14,623 14,700

New Media Holdings II LLC(11)(13)

Local Newspaper Operator

LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.25%, Secured Debt (Maturity—June 4, 2020)(9)
14,850 14,610 14,775

NNE Partners, LLC(10)

Oil & Gas Exploration & Production

LIBOR Plus 8.00%, Current Coupon 9.07%, Secured Debt (Maturity—March 2, 2022)
7,292 7,220 7,220

North American Lifting Holdings, Inc.(11)

Crane Service Provider

LIBOR Plus 4.50% (Floor 1.00%), Current Coupon 5.65%, Secured Debt (Maturity—November 27, 2020)(9)
7,805 6,792 7,370

NTM Acquisition Corp.(11)

Provider of B2B Travel Information Content

LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.25%, Secured Debt (Maturity—June 7, 2022)(9)
4,091 4,035 4,070

Ospemifene Royalty Sub LLC (QuatRx)(10)

Estrogen-Deficiency Drug Manufacturer and Distributor

11.5% Secured Debt (Maturity—November 15, 2026)(14)
5,071 5,071 1,779

Pardus Oil and Gas, LLC(11)

Oil & Gas Exploration & Production

13% PIK Secured Debt (Maturity—November 12, 2021)
1,928 1,928 1,809

5% PIK Secured Debt (Maturity—May 13, 2022)
1,004 1,004 489

Member Units (2,472 units)
2,472 —

5,404 2,298

Paris Presents Incorporated(11)

Branded Cosmetic and Bath Accessories

LIBOR Plus 8.75% (Floor 1.00%), Current Coupon 9.75%, Secured Debt (Maturity—December 31, 2021)(9)
2,000 1,970 1,960

Portfolio Company(1)(20)	Business Description	Type of Investment(2)(3)(27)


Joerns Healthcare, LLC(11)	Manufacturer and Distributor of Health Care Equipment & Supplies
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.98% Secured Debt (Maturity—May 9, 2020)(9)	13,387	13,307	12,439

Keypoint Government Solutions, Inc.(10)	Provider of Pre-Employment Screening Services
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.73%, Secured Debt (Maturity—April 18, 2024)(9)	11,875	11,769	11,875

Larchmont Resources, LLC(11)	Oil & Gas Exploration & Production
		LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.53%, PIK Secured Debt (Maturity—August 7, 2020)(9)(19)	2,504	2,504	2,479
		Member Units (Larchmont Intermediate Holdco, LLC) (2,828 units)		353	919

				2,857	3,398

LKCM Headwater Investments I, L.P.(12)(13)	Investment Partnership
		LP Interests (Fully diluted 2.3%)		2,069	4,234

Logix Acquisition Company, LLC(10)	Competitive Local Exchange Carrier
		LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 7.60%, Secured Debt (Maturity—December 22, 2024)(9)	9,704	9,500	9,753

Looking Glass Investments, LLC(12)(13)	Specialty Consumer Finance
		Member Units (2.5 units)		125	57
		Member Units (LGI Predictive Analytics LLC) (190,712 units)		89	72

				214	129

LSF9 Atlantis Holdings, LLC(11)	Provider of Wireless Telecommunications Carrier Services
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.69%, Secured Debt (Maturity—May 1, 2023)(9)	9,899	9,872	9,879

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, ~~2017~~2018

(dollars in thousands)

~~(Unaudited)~~(unaudited)

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

Parq Holdings Limited Partnership(11)(13)

Hotel & Casino Operator

LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity—December 17, 2020)(9)
7,500 7,399 7,481

Permian Holdco 2, Inc.(11)

Storage Tank Manufacturer

14% PIK Unsecured Debt (Maturity—October 15, 2021)
205 205 205

Preferred Stock (Permian Holdco 1, Inc.) (154,558 units)
799 799

Common Stock (Permian Holdco 1, Inc.) (154,558 units)
— —

1,004 1,004

Pernix Therapeutics Holdings, Inc.(10)

Pharmaceutical Royalty

12% Secured Debt (Maturity—August 1, 2020)
3,214 3,214 1,151

Pike Corporation(11)

Construction and Maintenance Services for Electric Transmission and Distribution Infrastructure

LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.00%, Secured Debt (Maturity—September 10, 2024)(9)
3,000 2,970 3,053

Point.360(10)

Fully Integrated Provider of Digital Media Services

Warrants (65,463 equivalent shares)
69 —

Common Stock (163,658 shares)
273 34

342 34

PPC/SHIFT LLC(10)

Provider of Digital Solutions to Automotive Industry

LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—December 22, 2021)(9)
6,956 6,815 6,815

Prowler Acquisition Corp.(11)

Specialty Distributor to the Energy Sector

LIBOR Plus 4.50% (Floor 1.00%), Current Coupon 5.65%, Secured Debt (Maturity—January 28, 2020)(9)
10,706 8,942 8,832

Portfolio Company(1)(20)	Business Description	Type of Investment(2)(3)(27)


Lulu's Fashion Lounge, LLC(10)	Fast Fashion E-Commerce Retailer
		LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.88%, Secured Debt (Maturity—August 28, 2022)(9)	13,125	12,753	13,519

Messenger, LLC(10)	Supplier of Specialty Stationery and Related Products to the Funeral Industry
		LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.36%, Secured Debt (Maturity—September 9, 2020)(9)	17,283	17,208	17,283

Minute Key, Inc.	Operator of Automated Key Duplication Kiosks
		Warrants (1,437,409 equivalent shares; Expiration—May 20, 2025; Strike price—$0.01 per share)		280	1,170

NBG Acquisition Inc(11)	Wholesaler of Home Décor Products
		LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 7.95%, Secured Debt (Maturity—April 26, 2024)(9)	4,375	4,311	4,391

New Media Holdings II LLC(11)(13)	Local Newspaper Operator
		LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 8.13%,	19,965	19,594	20,096
		Secured Debt (Maturity—July 14, 2022)(9)

NNE Partners, LLC(10)	Oil & Gas Exploration & Production
		LIBOR Plus 8.00%, Current Coupon 10.02%, Secured Debt (Maturity—March 2, 2022)	15,458	15,326	15,326

North American Lifting Holdings, Inc.(11)	Crane Service Provider
		LIBOR Plus 4.50% (Floor 1.00%), Current Coupon 6.80%, Secured Debt (Maturity—November 27, 2020)(9)	7,725	6,956	7,308

Novetta Solutions, LLC(11)	Provider of Advanced Analytics Solutions for Defense Agencies
		LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.88%, Secured Debt (Maturity—October 17, 2022)(9)	15,559	15,105	15,144

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, ~~2017~~2018

(dollars in thousands)

~~(Unaudited)~~(unaudited)

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

PT Network, LLC(10)

Provider of Outpatient Physical Therapy and Sports Medicine Services

LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.55%, Secured Debt (Maturity—November 30, 2021)(9)
17,700 17,465 17,465

QBS Parent, Inc.(11)

Provider of Software and Services to the Oil & Gas Industry

LIBOR Plus 4.75% (Floor 1.00%), Current Coupon 5.75%, Secured Debt (Maturity—August 7, 2021)(9)
11,245 11,176 10,908

Raley's(11)

Family-Owned Supermarket Chain

LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.25%, Secured Debt (Maturity—May 18, 2022)(9)
4,160 4,093 4,197

Redbox Automated Retail, LLC(11)

Operator of Home Media Entertainment Kiosks

LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity—September 27, 2021)(9)
13,125 12,754 13,141

Renaissance Learning, Inc.(11)

Technology-based K-12 Learning Solutions

LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.15%, Secured Debt (Maturity—April 11, 2022)(9)
3,000 2,979 2,999

RGL Reservoir Operations Inc.(11)(13)

Oil & Gas Equipment and Services

LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.00%, Secured Debt (Maturity—August 13, 2021)(9)
3,910 3,830 1,036

RM Bidder, LLC(10)

Scripted and Unscripted TV and Digital Programming Provider

Warrants (327,532 equivalent units)
425 —

Member Units (2,779 units)
46 33

471 33

SAExploration, Inc.(10)(13)

Geophysical Services Provider

Common Stock (50 shares)
65 —

SAFETY Investment Holdings, LLC

Provider of Intelligent Driver Record Monitoring Software and Services

Member Units (2,000,000 units)
2,000 2,000

Portfolio Company(1)(20)	Business Description	Type of Investment(2)(3)(27)


NTM Acquisition Corp.(11)	Provider of B2B Travel Information Content
		LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 8.55%, Secured Debt (Maturity—June 7, 2022)(9)	6,104	6,050	6,073

Ospemifene Royalty Sub LLC (QuatRx)(10)	Estrogen-Deficiency Drug Manufacturer and Distributor
		11.5% Secured Debt (Maturity—November 15, 2026)(14)	5,058	5,058	1,020

Paris Presents Incorporated(11)	Branded Cosmetic and Bath Accessories
		LIBOR Plus 8.75% (Floor 1.00%), Current Coupon 10.63%, Secured Debt (Maturity—December 31, 2021)(9)	4,500	4,472	4,556

Permian Holdco 2, Inc.(11)	Storage Tank Manufacturer
		14% PIK Unsecured Debt (Maturity—October 15, 2021)(19)	357	357	357
		Preferred Stock (Permian Holdco 1, Inc.) (154,558 units)		799	1,010
		Common Stock (Permian Holdco 1, Inc.) (154,558 units)		—	10

				1,156	1,377

Pernix Therapeutics Holdings, Inc.(10)	Pharmaceutical Royalty
		12% Secured Debt (Maturity—August 1, 2020)	3,031	3,031	1,958

Pier 1 Imports, Inc.(11)(13)	Decorative Home Furnishings Retailer
		LIBOR Plus 3.50% (Floor 1.00%), Current Coupon 5.95%, Secured Debt (Maturity—April 30, 2021)(9)	7,513	7,137	7,156

Point.360(10)	Fully Integrated Provider of Digital Media Services
		Warrants (65,463 equivalent shares; Expiration—July 7, 2020; Strike price—$0.75 per share)		69	—
		Common Stock (163,658 shares)		273	10

				342	10

PPC/SHIFT LLC(10)	Provider of Digital Solutions to Automotive Industry
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.84%, Secured Debt (Maturity—December 22, 2021)(9)	6,781	6,667	6,781

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, ~~2017~~2018

(dollars in thousands)

~~(Unaudited)~~(unaudited)

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

Salient Partners L.P.(11)

Provider of Asset Management Services

LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity—June 9, 2021)(9)
10,812 10,554 10,379

School Specialty, Inc.(11)

Distributor of Education Supplies and Furniture

LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity—June 11, 2019)(9)
5,456 5,388 5,469

Sigma Electric Manufacturing Corporation(10)(13)

Manufacturer and Distributor of Electrical Fittings and Parts

LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.25%, Secured Debt (Maturity—October 13, 2021)(9)
12,500 12,212 12,212

SG Acquisition Inc.(11)

Finance and Insurance Services to the Automotive Industry

LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.00%, Secured Debt (Maturity—March 30, 2024)(9)
4,875 4,729 4,802

Sorenson Communications, Inc.(11)

Manufacturer of Communication Products for Hearing Impaired

LIBOR Plus 5.75% (Floor 2.25%), Current Coupon 8.00%, Secured Debt (Maturity—April 30, 2020)(9)
13,337 13,254 13,387

9% Secured Debt (Maturity—October 31, 2020)
3,000 2,805 2,790

16,059 16,177

Strike, LLC(11)

Pipeline Construction and Maintenance Services

LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.00%, Secured Debt (Maturity—November 30, 2022)(9)
10,000 9,682 10,167

Subsea Global Solutions, LLC(10)

Underwater Maintenance and Repair Services

LIBOR Plus 6.00% (Floor 1.50%), Current Coupon 7.50%, Secured Debt (Maturity—March 17, 2020)(9)
7,429 7,365 7,397

Synagro Infrastructure Company, Inc(11)

Waste Management Services

LIBOR Plus 5.25% (Floor 1.00%), Current Coupon 6.40%, Secured Debt (Maturity—August 22, 2020)(9)
4,714 4,662 4,348

Portfolio Company(1)(20)	Business Description	Type of Investment(2)(3)(27)


Prowler Acquisition Corp.(11)	Specialty Distributor to the Energy Sector
		LIBOR Plus 4.50% (Floor 1.00%), Current Coupon 6.34%, Secured Debt (Maturity—January 28, 2020)(9)	16,872	15,432	16,493

PT Network, LLC(10)	Provider of Outpatient Physical Therapy and Sports Medicine Services
		LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 7.21%, Secured Debt (Maturity—November 30, 2021)(9)	8,839	8,839	8,839

QBS Parent, Inc.(11)	Provider of Software and Services to the Oil & Gas Industry
		LIBOR Plus 4.75% (Floor 1.00%), Current Coupon 6.52%, Secured Debt (Maturity—August 7, 2021)(9)	14,272	14,124	14,201

Radiology Partners, Inc.(10)	Radiology Practice Providing Scan Interpretations
		LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 7.59%, Secured Debt (Maturity—December 4, 2023)(9)	9,731	9,635	9,749

Research Now Group, Inc. and Survey Sampling International, LLC(11)	Provider of Outsourced Online Surveying
		LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 7.86%, Secured Debt (Maturity—December 20, 2024)(9)	13,500	12,845	13,437

Resolute Industrial, LLC(10)	HVAC Equipment Rental and Remanufacturing
		LIBOR Plus 7.62% (Floor 1.00%), Current Coupon 9.31%, Secured Debt (Maturity—July 26, 2022)(9)(25)	17,088	16,785	16,785
		Member Units (601 units)		750	750

				17,535	17,535

RGL Reservoir Operations Inc.(11)(13)(21)	Oil & Gas Equipment and Services
		1% Current / 9% PIK Secured Debt (Maturity—December 21, 2024)(19)	721	407	400

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, ~~2017~~2018

(dollars in thousands)

~~(Unaudited)~~(unaudited)

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

Targus International, LLC(11)

Distributor of Protective Cases for Mobile Devices

15% PIK Secured Debt (Maturity—December 31, 2019)
1,182 1,182 1,182

Common Stock (Targus Cayman HoldCo Limited) (249,614 shares)(13)
2,555 440

3,737 1,622

TE Holdings, LLC(11)

Oil & Gas Exploration & Production

Member Units (97,048 units)
970 691

TeleGuam Holdings, LLC(11)

Cable and Telecom Services Provider

LIBOR Plus 4.00% (Floor 1.25%), Current Coupon 5.25%, Secured Debt (Maturity—December 10, 2018)(9)
7,602 7,594 7,607

LIBOR Plus 7.50% (Floor 1.25%), Current Coupon 8.75%, Secured Debt (Maturity—June 10, 2019)(9)
10,500 10,447 10,526

18,041 18,133

TMC Merger Sub Corp.(11)

Refractory & Maintenance Services Provider

LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.25%, Secured Debt (Maturity—October 31, 2022)(9)
14,922 14,778 14,922

TOMS Shoes, LLC(11)

Global Designer, Distributor, and Retailer of Casual Footwear

LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 6.55%, Secured Debt (Maturity—October 30, 2020)(9)
4,900 4,573 3,315

Truck Bodies and Equipment International, Inc.(10)

Manufacturer of Dump Truck Bodies and Dump Trailers

LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity—March 31, 2021)(9)
20,564 20,201 20,564

Turning Point Brands, Inc.(10)(13)

Marketer/Distributor of Tobacco Products

LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.15%, Secured Debt (Maturity—May 17, 2022)(9)
8,500 8,417 8,479

Portfolio Company(1)(20)	Business Description	Type of Investment(2)(3)(27)			Fair Value(18)


RM Bidder, LLC(10)	Scripted and Unscripted TV and Digital Programming Provider
		Warrants (327,532 equivalent units; Expiration—October 20, 2025; Strike price—$14.28 per unit)		425		—
		Member Units (2,779 units)		46		16

				471		16

SAFETY Investment Holdings, LLC	Provider of Intelligent Driver Record Monitoring Software and Services
		Member Units (2,000,000 units)		2,000		1,670

Salient Partners L.P.(11)	Provider of Asset Management Services
		LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.32%, Secured Debt (Maturity—June 9, 2021)(9)	12,002	11,770	��	11,852

SiTV, LLC(11)	Cable Networks Operator
		10.375% Secured Debt (Maturity—July 1, 2019)	10,429	7,051		6,336

SMART Modular Technologies, Inc.(10)(13)	Provider of Specialty Memory Solutions
		LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.66%, Secured Debt (Maturity—August 9, 2022)(9)	14,250	13,993		14,179

Sorenson Communications, Inc.(11)	Manufacturer of Communication Products for Hearing Impaired
		LIBOR Plus 5.75% (Floor 2.25%), Current Coupon 8.06%, Secured Debt (Maturity—April 30, 2020)(9)	13,199	13,142		13,257

Staples Canada ULC(10)(13)(21)	Office Supplies Retailer
		LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.68%, Secured Debt (Maturity—September 12, 2023)(9)(22)	20,000	19,630		18,487

Strike, LLC(11)	Pipeline Construction and Maintenance Services
		LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.45%, Secured Debt (Maturity—November 30, 2022)(9)	9,500	9,262		9,642
		LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.02%, Secured Debt (Maturity—May 30, 2019)(9)	409	392		411

				9,654		10,053

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, ~~2017~~2018

(dollars in thousands)

~~(Unaudited)~~(unaudited)

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

TVG-I-E CMN ACQUISITION, LLC(10)

Organic Lead Generation for Online Postsecondary Schools

LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—November 3, 2021)(9)
6,419 6,299 6,299

Tweddle Group, Inc.(11)

Provider of Technical Information Services to Automotive OEMs

LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—October 21, 2022)(9)
8,356 8,197 8,418

US Joiner Holding Company(11)

Marine Interior Design and Installation

LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—April 16, 2020)(9)
11,484 11,411 11,427

U.S. TelePacific Corp.(10)

Provider of Communications and Managed Services

LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.62%, Secured Debt (Maturity—February 24, 2021)(9)
7,500 7,383 7,500

VCVH Holding Corp. (Verisk)(11)

Healthcare Technology Services Focused on Revenue Maximization

LIBOR Plus 9.25% (Floor 1.00%), Current Coupon 10.40%, Secured Debt (Maturity—June 1, 2024)(9)
1,500 1,465 1,489

VIP Cinema Holdings, Inc.(11)

Supplier of Luxury Seating to the Cinema Industry

LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—March 1, 2023)(9)
10,000 9,951 10,118

Virtex Enterprises, LP(10)

Specialty, Full-Service Provider of Complex Electronic Manufacturing Services

12% Secured Debt (Maturity—December 27, 2018)
1,667 1,571 1,571

Preferred Class A Units (14 units; 5% cumulative)(8)
333 773

Warrants (11 equivalent units)
186 351

2,090 2,695

Portfolio Company(1)(20)	Business Description	Type of Investment(2)(3)(27)


Synagro Infrastructure Company, Inc(11)	Waste Management Services
		LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 7.80%, Secured Debt (Maturity—August 22, 2020)(9)	11,662	11,259	11,021

TE Holdings, LLC(11)	Oil & Gas Exploration & Production
		Member Units (97,048 units)		970	121

Tectonic Holdings, LLC	Financial Services Organization
		Member Units (200,000 units)(8)		2,000	2,320

TeleGuam Holdings, LLC(11)	Cable and Telecom Services Provider
		LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.38%, Secured Debt (Maturity—April 12, 2024)(9)	7,750	7,606	7,808

TGP Holdings III LLC(11)	Outdoor Cooking & Accessories
		LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 7.30%, Secured Debt (Maturity—September 25, 2024)(9)	6,881	6,806	6,935
		LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.80%, Secured Debt (Maturity—September 25, 2025)(9)	5,000	4,928	5,075

				11,734	12,010

The Container Store, Inc.(11)(13)	Operator of Stores Offering Storage and Organizational Products
		LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.31%, Secured Debt (Maturity—August 18, 2021)(9)	6,831	6,650	6,840

The Pasha Group(11)	Diversified Logistics and Transportation Provided
		LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 9.37%, Secured Debt (Maturity—January 26, 2023)(9)	12,109	11,756	12,230

TMC Merger Sub Corp.(11)	Refractory & Maintenance Services Provider
		LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 8.19%, Secured Debt (Maturity—October 31, 2022)(9)(26)	17,545	17,415	17,676

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, ~~2017~~2018

(dollars in thousands)

~~(Unaudited)~~(unaudited)

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

Vistar Media, Inc.(10)

Operator of Digital Out-of-Home Advertising Platform

LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 11.06%, Secured Debt (Maturity—February 16, 2022)(9)
4,500 4,089 4,089

Warrants (64,025 equivalent shares)
331 331

4,420 4,420

Wellnext, LLC(10)

Manufacturer of Supplements and Vitamins

LIBOR Plus 9.00% (Floor 0.50%), Current Coupon 10.00%, Secured Debt (Maturity—May 23, 2021)(9)
9,994 9,908 9,994

Western Dental Services, Inc.(11)

Dental Care Services

LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—November 1, 2018)(9)
4,904 4,903 4,891

Wilton Brands LLC(11)

Specialty Housewares Retailer

LIBOR Plus 7.25% (Floor 1.25%), Current Coupon 8.50%, Secured Debt (Maturity—August 30, 2018)(9)
1,147 1,142 1,120

Worley Claims Services, LLC(10)

Insurance Adjustment Management and Services Provider

LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.00%, Secured Debt (Maturity—October 31, 2020)(9)
6,354 6,312 6,354

YP Holdings LLC(11)

Online and Offline Advertising Operator

LIBOR Plus 11.00% (Floor 1.25%), Current Coupon 12.25%, Secured Debt (Maturity—June 4, 2018)(9)
14,785 14,438 14,756

Zilliant Incorporated

Price Optimization and Margin Management Solutions

Preferred Stock (186,777 shares)
154 260

Warrants (952,500 equivalent shares)
1,071 1,190

1,225 1,450

Subtotal Non-Control/Non-Affiliate Investments (50.1% of total investments at fair value)
$ 1,010,832 $ 992,115

Total Portfolio Investments, March 31, 2017
$ 1,876,476 $ 1,979,378

Portfolio Company(1)(20)	Business Description	Type of Investment(2)(3)(27)


TOMS Shoes, LLC(11)	Global Designer, Distributor, and Retailer of Casual Footwear
		LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 7.48%, Secured Debt (Maturity—October 30, 2020)(9)	4,850	4,606	2,861

Turning Point Brands, Inc.(10)(13)	Marketer/Distributor of Tobacco Products
		LIBOR Plus 7.00%, Current Coupon 8.70%, Secured Debt (Maturity—March 7, 2024)	8,500	8,415	8,670

TVG-I-E CMN ACQUISITION, LLC(10)	Organic Lead Generation for Online Postsecondary Schools
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.88%, Secured Debt (Maturity—November 3, 2021)(9)	11,099	10,910	11,099

U.S. TelePacific Corp.(11)	Provider of Communications and Managed Services
		LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 7.30%, Secured Debt (Maturity—May 2, 2023)(9)	20,651	20,463	20,104

US Joiner Holding Company(11)	Marine Interior Design and Installation
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.88%, Secured Debt (Maturity—April 16, 2020)(9)	13,430	13,341	13,363

VIP Cinema Holdings, Inc.(11)	Supplier of Luxury Seating to the Cinema Industry
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.31%, Secured Debt (Maturity—March 1, 2023)(9)	7,600	7,567	7,688

Vistar Media, Inc.(10)	Operator of Digital Out-of-Home Advertising Platform
		LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.31%, Secured Debt (Maturity—February 16, 2022)(9)	3,319	3,060	3,114
		Warrants (70,207 equivalent shares; Expiration—February 17, 2027; Strike price—$0.01 per share)		331	600

				3,391	3,714

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, 2018

(dollars in thousands)

(unaudited)

Portfolio Company(1)(20)	Business Description	Type of Investment(2)(3)(27)		Cost(4)		Fair Value(18)


Wellnext, LLC(10)	Manufacturer of Supplements and Vitamins
		LIBOR Plus 10.10% (Floor 1.00%), Current Coupon 11.98%, Secured Debt (Maturity—July 21, 2022)(9)(23)	9,930		9,861		10,228

Wireless Vision Holdings, LLC(10)	Provider of Wireless Telecommunications Carrier Services
		LIBOR Plus 8.91% (Floor 1.00%), Current Coupon 10.80%, Secured Debt (Maturity—September 29, 2022)(9)(24)	12,899		12,634		12,634

Zilliant Incorporated	Price Optimization and Margin Management Solutions
		Preferred Stock (186,777 shares)			154		260
		Warrants (952,500 equivalent shares; Expiration—June 15, 2022; Strike price—$0.001 per share)			1,071		1,190

					1,225		1,450

Subtotal Non-Control/Non-Affiliate Investments (47.9% of total investments at fair value)				$	1,126,103	$	1,107,777

Total Portfolio Investments, March 31, 2018				$	2,157,550	$	2,314,034

(1): All investments are Lower Middle Market portfolio investments, unless otherwise noted. See Note B 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 Credit Agreement or in support of the SBA-guaranteed debentures issued by the Funds.
(2): Debt investments are income producing, unless otherwise noted. Equity and warrants are non-income producing, unless otherwise noted.
(3): See Note C for a summary of geographic location of portfolio companies.
(4): Principal is net of repayments. Cost is net of repayments and accumulated unearned income.

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Consolidated Schedule of Investments (Continued)~~

~~March 31, 2017~~

~~(dollars in thousands)~~

~~(Unaudited)~~

(5): Control investments are defined by the Investment Company Act of 1940, as amended ("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% 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. 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 or an alternate Base Rate (commonly based on the Federal Funds Rate or the Prime Rate), which typically resets semi-annually, quarterly, or monthly at the borrower's option. The borrower may also elect to have multiple interest reset periods for each loan. For each such loan, the Company has provided the weighted average annual stated interest rate in effect at March 31, ~~2017.~~2018. As noted in this schedule, ~~62%~~69% of the loans (based on the par ~~amount of the loans) of the loans~~amount) contain LIBOR floors which range between 0.50% and 2.25%, with a weighted-average LIBOR floor of approximately ~~1.04%~~1.01%.
(10): Private Loan portfolio investment. See Note B for a description of Private Loan portfolio investments.
(11): Middle Market portfolio investment. See Note B for a description of Middle Market portfolio investments.
(12): Other Portfolio investment. See Note B 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.

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, 2018

(dollars in thousands)

(unaudited)

(14): Non-accrual and non-income producing investment.
(15): Portfolio company is in a bankruptcy process and, as such, the maturity date of our debt investments in this portfolio company will not be finally determined until such process is complete. As noted in footnote (14), our debt investments in this portfolio company are on non-accrual status.
(16): External Investment Manager. Investment is not encumbered as security for the Company's Credit Agreement 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 for further discussion.
(19): PIK interest income and cumulative dividend income represent income not paid currently in cash.
(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 to help mitigate any potential adverse change in foreign exchange rates during the term of the Company's investment, the Company entered into a forward foreign currency contract with Cadence Bank to lend $24.2 million Canadian Dollars and receive $20.0 million U.S. Dollars with a settlement date of September 12, 2018. The unrealized appreciation on the forward foreign currency contract is $1.1 million as of March 31, 2018. This unrealized appreciation is offset by the foreign currency translation depreciation on the investment.
(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 LIBOR plus 7.50% (Floor 1.00%) per the Credit Agreement and the Consolidated Schedule of Investments above reflects such higher rate.
(24): 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 LIBOR plus 8.50% (Floor 1.00%) per the Credit Agreement and the Consolidated Schedule of Investments above reflects such higher rate.
(25): As part of the credit agreement with the portfolio company, the Company is entitled to the "last out" tranche of the first lien secured loans, whereby the "first out" tranche receives priority over the "last out" tranche with respect to payments of principal, interest, and any other amounts due thereunder. The rate the Company receives per the Credit Agreement is the same as the rate reflected in the Consolidated Schedule of Investments above.
(26): The Company has entered into an intercreditor agreement that entitles the Company to the "first 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 lower interest rate than the contractual stated interest rate of LIBOR plus 6.64% (Floor 1.00%) per the Credit Agreement and the Consolidated Schedule of Investments above reflects such lower rate.
(27): All Company's portfolio investments are generally subject to restrictions on resale as "restricted securities", unless otherwise noted.

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments

December 31, ~~2016~~2017

(dollars in thousands)



Portfolio Company(1)	Business Description	Type of Investment(2)(3)	Principal(4)		Cost(4)		Fair Value
Portfolio Company(1)(20)									Business Description	Type of Investment(2)(3)(27)	Principal(4)		Cost(4)		Fair Value(18)
Control Investments(5)

Access Media Holdings, LLC(10)	Private Cable Operator								Private Cable Operator
		5% Current / 5% PIK Secured Debt (Maturity—July 22, 2020)	$	22,664	$	22,664	$	19,700		5% Current / 5% PIK Secured Debt (Maturity—July 22, 2020)(19)	$	23,828	$	23,828	$	17,150
		Preferred Member Units (6,581,250 units; 12% cumulative)				6,475		240		Preferred Member Units (8,248,500 units)				8,142		—
		Member Units (45 units)				1		—		Member Units (45 units)				1		—

						29,140		19,940						31,971		17,150

Ameritech College Operations, LLC	For-Profit Nursing and Healthcare College
		10% Secured Debt (Maturity—November 30, 2019)		514		514		514
		13% Secured Debt (Maturity—November 30, 2019)		489		489		489
ASC Interests, LLC									Recreational and Educational Shooting Facility
		13% Secured Debt (Maturity—January 31, 2020)		3,025		3,025		3,025		11% Secured Debt (Maturity—July 31, 2018)		1,800		1,795		1,795
		Preferred Member Units (294 units)				2,291		2,291		Member Units (1,500 units)				1,500		1,530

						6,319		6,319						3,295		3,325

ASC Interests, LLC	Recreational and Educational Shooting Facility
ATS Workholding, LLC(10)									Manufacturer of Machine Cutting Tools and Accessories
		11% Secured Debt (Maturity—July 31, 2018)		2,100		2,084		2,100		5% Secured Debt (Maturity—November 16, 2021)		3,726		3,249		3,249
		Member Units (1,500 units)(8)				1,500		2,680		Preferred Member Units (3,725,862 units)				3,726		3,726

						3,584		4,780						6,975		6,975

Bond-Coat, Inc.	Casing and Tubing Coating Services								Casing and Tubing Coating Services
		12% Secured Debt (Maturity—December 28, 2017)		11,596		11,556		11,596		12% Secured Debt (Maturity—December 28, 2017)(17)		11,596		11,596		11,596
		Common Stock (57,508 shares)				6,350		6,660		Common Stock (57,508 shares)				6,350		9,370

						17,906		18,256						17,946		20,966

Café Brazil, LLC	Casual Restaurant Group								Casual Restaurant Group
		Member Units (1,233 units)(8)				1,742		6,040		Member Units (1,233 units)(8)				1,742		4,900

CBT Nuggets, LLC	Produces and Sells IT Training Certification Videos								Produces and Sells IT
		Member Units (416 units)(8)				1,300		55,480	Training Certification
									Videos
										Member Units (416 units)(8)				1,300		89,560

Charps, LLC									Pipeline Maintenance and Construction
										12% Secured Debt (Maturity—February 3, 2022)		18,400		18,225		18,225
										Preferred Member Units (1,600 units)				400		650

														18,625		18,875

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, ~~2016~~2017

(dollars in thousands)



Portfolio Company(1)	Business Description	Type of Investment(2)(3)	Principal(4)		Cost(4)		Fair Value
Portfolio Company(1)(20)									Business Description	Type of Investment(2)(3)(27)	Principal(4)		Cost(4)		Fair Value(18)
Clad-Rex Steel, LLC	Specialty Manufacturer of Vinyl-Clad Metal								Specialty Manufacturer of Vinyl-Clad Metal
		LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.50%, Secured Debt (Maturity—December 20, 2018)(9)		400		396		396
		LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.50%, Secured Debt (Maturity—December 20, 2021)(9)		14,080		13,941		13,941		LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.86%, Secured Debt (Maturity—December 20, 2021)(9)		13,280		13,168		13,280
		Member Units (717 units)				7,280		7,280		Member Units (717 units)(8)				7,280		9,500
		10% Secured Debt (Clad-Rex Steel RE Investor, LLC) (Maturity—December 20, 2036)		1,202		1,190		1,190		10% Secured Debt (Clad-Rex Steel RE Investor, LLC) (Maturity—December 20, 2036)		1,183		1,171		1,183
		Member Units (Clad-Rex Steel RE Investor, LLC) (800 units)				210		210		Member Units (Clad-Rex Steel RE Investor, LLC) (800 units)				210		280

						23,017		23,017						21,829		24,243

CMS Minerals Investments	Oil & Gas Exploration & Production								Oil & Gas Exploration & Production
		Preferred Member Units (CMS Minerals LLC) (458 units)(8)				2,104		3,682		Member Units (CMS Minerals II, LLC) (100 units)(8)				3,440		2,392
		Member Units (CMS Minerals II, LLC) (100 units)(8)				3,829		3,381

Copper Trail Energy Fund I, LP(12)(13)									Investment Partnership
						5,933		7,063		LP Interests (Fully diluted 30.1%)				2,500		2,500

Datacom, LLC	Technology and Telecommunications Provider								Technology and Telecommunications Provider
		8% Secured Debt (Maturity—May 30, 2017)		900		900		900		8% Secured Debt (Maturity—May 30, 2018)		1,575		1,575		1,575
		5.25% Current / 5.25% PIK Secured Debt (Maturity—May 30, 2019)		11,713		11,651		11,049		5.25% Current / 5.25% PIK Secured Debt (Maturity—May 30, 2019)(19)		12,349		12,311		11,110
		Class A Preferred Member Units (15% cumulative)				1,181		1,368		Class A Preferred Member Units				1,181		730
		Class B Preferred Member Units (6,453 units)				6,030		1,529		Class B Preferred Member Units (6,453 units)				6,030		—

						19,762		14,846						21,097		13,415

Gamber-Johnson Holdings, LLC	Manufacturer of Ruggedized Computer Mounting Systems								Manufacturer of
		LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 12.00%, Secured Debt (Maturity—June 24, 2021)(9)		24,080		23,846		23,846	Ruggedized Computer
		Member Units (8,619 units)				14,844		18,920	Mounting Systems
										LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 12.36%, Secured Debt (Maturity—June 24, 2021)(9)		23,400		23,213		23,400
										Member Units (8,619 units)(8)				14,844		23,370

						38,690		42,766						38,057		46,770

Garreco, LLC	Manufacturer and Supplier of Dental Products								Manufacturer and Supplier of Dental Products
		14% Secured Debt (Maturity—January 12, 2018)		5,250		5,219		5,219		LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 11.34%, Secured Debt (Maturity—March 31, 2020)(9)		5,483		5,443		5,443
		Member Units (1,200 units)				1,200		1,150		Member Units (1,200 units)				1,200		1,940

						6,419		6,369						6,643		7,383

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, ~~2016~~2017

(dollars in thousands)



Portfolio Company(1)	Business Description	Type of Investment(2)(3)	Principal(4)		Cost(4)		Fair Value
Portfolio Company(1)(20)									Business Description	Type of Investment(2)(3)(27)	Principal(4)		Cost(4)		Fair Value(18)
GRT Rubber Technologies LLC	Manufacturer of Engineered Rubber Products								Manufacturer of Engineered Rubber Products
		LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.00%, Secured Debt (Maturity—December 19, 2019)(9)		13,274		13,188		13,274		LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.36%, Secured Debt (Maturity—December 19, 2019)(9)		11,603		11,550		11,603
		Member Units (5,879 units)(8)				13,065		20,310		Member Units (5,879 units)(8)				13,065		21,970

						26,253		33,584						24,615		33,573

Gulf Manufacturing, LLC	Manufacturer of Specialty Fabricated Industrial Piping Products								Manufacturer of Specialty Fabricated Industrial Piping Products
		9% PIK Secured Debt (Ashland Capital IX, LLC) (Maturity—June 30, 2017)		777		777		777		Member Units (438 units)(8)				2,980		10,060
		Member Units (438 units)(8)				2,980		8,770

Gulf Publishing Holdings, LLC									Energy Industry Focused Media and Publishing
						3,757		9,547		LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.86%, Secured Debt (Maturity—September 30, 2020)(9)		80		80		80

Gulf Publishing Holdings, LLC	Energy Industry Focused Media and Publishing
		12.5% Secured Debt (Maturity—April 29, 2021)		10,000		9,911		9,911		12.5% Secured Debt (Maturity—April 29, 2021)		12,800		12,703		12,703
		Member Units (3,124 units)				3,124		3,124		Member Units (3,681 units)				3,681		4,840

						13,035		13,035						16,464		17,623

Harrison Hydra-Gen, Ltd.	Manufacturer of Hydraulic Generators
Harborside Holdings, LLC									Real Estate Holding Company
		Common Stock (107,456 shares)(8)				718		3,120		Member units (100 units)				6,206		9,400

Hawthorne Customs and Dispatch Services, LLC	Facilitator of Import Logistics, Brokerage, and Warehousing
Harris Preston Fund Investments(12)(13)									Investment Partnership
		Member Units (500 units)				589		280		LP Interests (2717 MH, L.P.) (Fully diluted 49.3%)				536		536
		Member Units (Wallisville Real Estate, LLC) (588,210 units)(8)				1,215		2,040

Harrison Hydra-Gen, Ltd.									Manufacturer of Hydraulic Generators
						1,804		2,320		Common Stock (107,456 shares)				718		3,580

HW Temps LLC	Temporary Staffing Solutions								Temporary Staffing Solutions
		LIBOR Plus 13.00% (Floor 1.00%), Current Coupon 14.00%, Secured Debt (Maturity July 2, 2020)(9)		10,576		10,500		10,500		LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 12.36%, Secured Debt (Maturity July 2, 2020)(9)		9,976		9,918		9,918
		Preferred Member Units (3,200 units)(8)				3,942		3,940		Preferred Member Units (3,200 units)				3,942		3,940

						14,442		14,440						13,860		13,858

Hydratec, Inc.	Designer and Installer of Micro-Irrigation Systems								Designer and Installer of Micro-Irrigation Systems
		Common Stock (7,095 shares)(8)				7,095		15,640		Common Stock (7,095 shares)(8)				7,095		15,000

IDX Broker, LLC	Provider of Marketing and CRM Tools for the Real Estate Industry								Provider of Marketing and CRM Tools for the Real Estate Industry
		12.5% Secured Debt (Maturity—November 15, 2018)		10,950		10,904		10,950		11.5% Secured Debt (Maturity—November 15, 2020)		15,250		15,116		15,250
		Member Units (5,400 units)(8)				5,606		7,040		Preferred Member Units (5,607 units)(8)				5,952		11,660

						16,510		17,990						21,068		26,910

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, ~~2016~~2017

(dollars in thousands)



Portfolio Company(1)	Business Description	Type of Investment(2)(3)	Principal(4)		Cost(4)		Fair Value
Portfolio Company(1)(20)									Business Description	Type of Investment(2)(3)(27)	Principal(4)		Cost(4)		Fair Value(18)
Indianapolis Aviation Partners, LLC	Fixed Base Operator
Jensen Jewelers of Idaho, LLC									Retail Jewelry Store
		15% Secured Debt (Maturity—January 15, 2017)		3,100		3,100		3,100		Prime Plus 6.75% (Floor 2.00%), Current Coupon 11.00%, Secured Debt (Maturity—November 14, 2019)(9)		3,955		3,917		3,955
		Warrants (1,046 equivalent units)				1,129		2,649		Member Units (627 units)(8)				811		5,100

						4,229		5,749						4,728		9,055

Jensen Jewelers of Idaho, LLC	Retail Jewelry Store
KBK Industries, LLC									Manufacturer of Specialty Oilfield and Industrial Products
										10% Secured Debt (Maturity—September 28, 2020)		375		372		375
		Prime Plus 6.75% (Floor 2.00%), Current Coupon 10.25%, Secured Debt (Maturity—November 14, 2019)(9)		4,055		3,996		4,055		12.5% Secured Debt (Maturity—September 28, 2020)		5,900		5,867		5,900
		Member Units (627 units)(8)				811		4,460		Member Units (325 units)(8)				783		4,420

						4,807		8,515						7,022		10,695

Lamb Ventures, LLC	Aftermarket Automotive Services Chain								Aftermarket Automotive Services Chain
		11% Secured Debt (Maturity—May 31, 2018)		7,657		7,657		7,657		11% Secured Debt (Maturity—July 1, 2022)		9,942		9,890		9,942
		Preferred Equity (non-voting)				400		400		Preferred Equity (non-voting)				400		400
		Member Units (742 units)(8)				5,273		5,990		Member Units (742 units)(8)				5,273		6,790
		9.5% Secured Debt (Lamb's Real Estate Investment I, LLC) (Maturity—December 31, 2041)		1,170		1,170		1,170		9.5% Secured Debt (Lamb's Real Estate Investment I, LLC) (Maturity—March 31, 2027)		432		428		432
		Member Units (Lamb's Real Estate Investment I, LLC) (1,000 units)(8)				625		1,340		Member Units (Lamb's Real Estate Investment I, LLC) (1,000 units)(8)				625		520

						15,125		16,557						16,616		18,084

Lighting Unlimited, LLC	Commercial and Residential Lighting Products and Design Services
		8% Secured Debt (Maturity—August 22, 2017)		1,514		1,514		1,514
		Preferred Equity (non-voting)				434		410
Marine Shelters Holdings, LLC									Fabricator of Marine and Industrial Shelters
		Warrants (71 equivalent units)				54		—		12% PIK Secured Debt (Maturity—December 28, 2017)(14)		3,131		3,078		—
		Member Units (700 units)				100		—		Preferred Member Units (3,810 units)				5,352		—

						2,102		1,924						8,430		—

Marine Shelters Holdings, LLC	Fabricator of Marine and Industrial Shelters
Market Force Information, LLC									Provider of Customer Experience Management Services
		12% PIK Secured Debt (Maturity—December 28, 2017)(14)		9,967		9,914		9,387		LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 12.48%, Secured Debt (Maturity—July 28, 2022)(9)		23,360		23,143		23,143
		Preferred Member Units (3,810 units)				5,352		—		Member Units (657,113 units)				14,700		14,700

						15,266		9,387						37,843		37,843

MH Corbin Holding LLC	Manufacturer and Distributor of Traffic Safety Products								Manufacturer and Distributor of Traffic Safety Products
		10% Secured Debt (Maturity—August 31, 2020)		13,300		13,197		13,197		13% Secured Debt (Maturity—August 31, 2020)		12,600		12,526		12,526
		Preferred Member Units (4,000 shares)				6,000		6,000		Preferred Member Units (4,000 shares)				6,000		6,000

						19,197		19,197						18,526		18,526

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, ~~2016~~2017

(dollars in thousands)



Portfolio Company(1)	Business Description	Type of Investment(2)(3)	Principal(4)		Cost(4)		Fair Value
Portfolio Company(1)(20)									Business Description	Type of Investment(2)(3)(27)	Principal(4)		Cost(4)		Fair Value(18)
Mid-Columbia Lumber Products, LLC	Manufacturer of Finger-Jointed Lumber Products								Manufacturer of Finger-Jointed Lumber Products
		10% Secured Debt (Maturity—December 18, 2017)		1,750		1,750		1,750		10% Secured Debt (Maturity—January 15, 2020)		1,398		1,390		1,390
		12% Secured Debt (Maturity—December 18, 2017)		3,900		3,900		3,900		12% Secured Debt (Maturity—January 15, 2020)		3,900		3,863		3,863
		Member Units (3,554 units)				1,810		2,480		Member Units (5,714 units)				2,405		1,575
		9.5% Secured Debt (Mid-Columbia Real Estate, LLC) (Maturity—May 13, 2025)		836		836		836		9.5% Secured Debt (Mid-Columbia Real Estate, LLC) (Maturity—May 13, 2025)		791		791		791
		Member Units (Mid-Columbia Real Estate, LLC) (250 units)(8)				250		600		Member Units (Mid-Columbia Real Estate, LLC) (500 units)(8)				790		1,290

						8,546		9,566						9,239		8,909

MSC Adviser I, LLC(16)	Third Party Investment Advisory Services								Third Party Investment Advisory Services
		Member Units (Fully diluted 100.0%)(8)				—		30,617		Member Units (Fully diluted 100.0%)(8)				—		41,768

Mystic Logistics Holdings, LLC	Logistics and Distribution Services Provider for Large Volume Mailers								Logistics and Distribution Services Provider for Large Volume Mailers
		12% Secured Debt (Maturity—August 15, 2019)		9,176		9,053		9,176		12% Secured Debt (Maturity—August 15, 2019)		7,768		7,696		7,696
		Common Stock (5,873 shares)				2,720		5,780		Common Stock (5,873 shares)				2,720		6,820

						11,773		14,956						10,416		14,516

NAPCO Precast, LLC	Precast Concrete Manufacturing								Precast Concrete Manufacturing
		Prime Plus 2.00% (Floor 7.00%), Current Coupon 9.00%, Secured Debt (Maturity—February 1, 2019)(9)		2,713		2,693		2,713		LIBOR Plus 8.50%, Current Coupon 9.98%, Secured Debt (Maturity—May 31, 2019)		11,475		11,439		11,475
		18% Secured Debt (Maturity—February 1, 2019)		3,952		3,922		3,952		Member Units (2,955 units)(8)				2,975		11,670
		Member Units (2,955 units)(8)				2,975		10,920

						9,590		17,585						14,414		23,145

NRI Clinical Research, LLC	Clinical Research Service Provider								Clinical Research Service Provider
		LIBOR Plus 6.50% (Floor 1.50%), Current Coupon 8.00%, Secured Debt (Maturity—September 8, 2017)(9)		200		200		200		LIBOR Plus 6.50% (Floor 1.50%), Current Coupon 8.00%, Secured Debt (Maturity—January 15, 2018)(9)		400		400		400
		14% Secured Debt (Maturity—September 8, 2017)		4,261		4,228		4,261		14% Secured Debt (Maturity—January 15, 2018)		3,865		3,865		3,865
		Warrants (251,723 equivalent units)				252		680		Warrants (251,723 equivalent units; Expiration—September 8, 2021; Strike price—$0.01 per unit)				252		500
		Member Units (1,454,167 units)				765		2,462		Member Units (1,454,167 units)				765		2,500

						5,445		7,603						5,282		7,265

NRP Jones, LLC	Manufacturer of Hoses, Fittings and Assemblies								Manufacturer of Hoses, Fittings and Assemblies
		6% Current / 6% PIK Secured Debt (Maturity—December 22, 2016)(17)		13,915		13,915		13,915		12% Secured Debt (Maturity—March 20, 2023)		6,376		6,376		6,376
		Warrants (14,331 equivalent units)				817		130		Member Units (65,208 units)(8)				3,717		3,250
		Member Units (50,877 units)				2,900		410

						17,632		14,455						10,093		9,626

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, ~~2016~~2017

(dollars in thousands)


Portfolio Company(1)	Business Description	Type of Investment(2)(3)	Principal(4)		Cost(4)		Fair Value
Portfolio Company(1)(20)									Business Description	Type of Investment(2)(3)(27)	Principal(4)		Cost(4)		Fair Value(18)

NuStep, LLC									Designer, Manufacturer and Distributor of Fitness Equipment
										12% Secured Debt (Maturity—January 31, 2022)		20,600		20,420		20,420
										Preferred Member Units (406 units)				10,200		10,200

														30,620		30,620

OMi Holdings, Inc.	Manufacturer of Overhead Cranes								Manufacturer of Overhead Cranes
		Common Stock (1,500 shares)(8)				1,080		13,080		Common Stock (1,500 shares)(8)				1,080		14,110

Pegasus Research Group, LLC	Provider of Telemarketing and Data Services								Provider of Telemarketing and Data Services
		Member Units (460 units)(8)				1,290		8,620		Member Units (460 units)(8)				1,290		10,310

PPL RVs, Inc.	Recreational Vehicle Dealer								Recreational Vehicle Dealer
		LIBOR Plus 7.00% (Floor 0.50%), Current Coupon 7.93%, Secured Debt (Maturity—November 15, 2021)(9)		18,000		17,826		17,826		LIBOR Plus 7.00% (Floor 0.50%), Current Coupon 8.34%, Secured Debt (Maturity—November 15, 2021)(9)		16,100		15,972		16,100
		Common Stock (1,962 shares)(8)				2,150		11,780		Common Stock (1,962 shares)(8)				2,150		12,440

						19,976		29,606						18,122		28,540

Principle Environmental, LLC	Noise Abatement Service Provider
		12% Secured Debt (Maturity—April 30, 2017)		4,060		4,060		4,060
Principle Environmental, LLC (d/b/a TruHorizon Environmental Solutions)									Noise Abatement Service Provider
		12% Current / 2% PIK Secured Debt (Maturity—April 30, 2017)		3,378		3,378		3,378		13% Secured Debt (Maturity—April 30, 2020)		7,477		7,347		7,477
		Preferred Member Units (19,631 units)				4,663		5,370		Preferred Member Units (19,631 units)				4,600		11,490
		Warrants (1,036 equivalent units)				1,200		270		Warrants (1,018 equivalent units; Expiration—January 31, 2021; Strike price—$0.01 per unit)				1,200		650

						13,301		13,078						13,147		19,617

Quality Lease Service, LLC	Provider of Rigsite Accommodation Unit Rentals and Related Services								Provider of Rigsite Accommodation Unit Rentals and Related Services
		8% PIK Secured Debt (Maturity—June 8, 2020)		7,068		7,068		7,068		Zero Coupon Secured Debt (Maturity—June 8, 2020)		7,341		7,341		6,950
		Member Units (1,000 units)				1,118		3,188		Member Units (1,000 units)				2,868		4,938

						8,186		10,256						10,209		11,888

River Aggregates, LLC	Processor of Construction Aggregates								Processor of Construction Aggregates
		Zero Coupon Secured Debt (Maturity—June 30, 2018)		750		627		627		Zero Coupon Secured Debt (Maturity—June 30, 2018)		750		707		707
		Member Units (1,150 units)(8)				1,150		4,600		Member Units (1,150 units)				1,150		4,610
		Member Units (RA Properties, LLC) (1,500 units)				369		2,510		Member Units (RA Properties, LLC) (1,500 units)				369		2,559

						2,146		7,737						2,226		7,876

SoftTouch Medical Holdings LLC	Provider of In-Home Pediatric Durable Medical Equipment
		LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.00%, Secured Debt (Maturity—October 31, 2019)(9)		7,140		7,096		7,140
		Member Units (4,450 units)(8)				4,930		9,170

						12,026		16,310

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, ~~2016~~2017

(dollars in thousands)


Portfolio Company(1)	Business Description	Type of Investment(2)(3)	Principal(4)		Cost(4)		Fair Value
Portfolio Company(1)(20)										Business Description	Type of Investment(2)(3)(27)	Principal(4)		Cost(4)		Fair Value(18)

SoftTouch Medical Holdings LLC										Provider of In-Home Pediatric Durable Medical Equipment
											LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.36%, Secured Debt (Maturity—October 31, 2019)(9)		7,140		7,110		7,140
											Member Units (4,450 units)(8)				4,930		10,089

															12,040		17,229

The MPI Group, LLC	Manufacturer of Custom Hollow Metal Doors, Frames and Accessories									Manufacturer of Custom Hollow Metal Doors, Frames and Accessories
		9% Secured Debt (Maturity—October 2, 2018)		2,924		2,922		2,922			9% Secured Debt (Maturity—October 2, 2018)		2,924		2,923		2,410
		Series A Preferred Units (2,500 units; 10% Cumulative)				2,500		—			Series A Preferred Units (2,500 units)				2,500		—
		Warrants (1,424 equivalent units)				1,096		—			Warrants (1,424 equivalent units; Expiration—July 1, 2024; Strike price—$0.01 per unit)				1,096		—
		Member Units (MPI Real Estate Holdings, LLC) (100 units)(8)				2,300		2,300			Member Units (MPI Real Estate Holdings, LLC) (100 units)(8)				2,300		2,389

						8,818		5,222							8,819		4,799

Uvalco Supply, LLC	Farm and Ranch Supply Store									Farm and Ranch Supply Store
		9% Secured Debt (Maturity—January 1, 2019)		872		872		872			9% Secured Debt (Maturity—January 1, 2019)		348		348		348
		Member Units (2,011 units)(8)				3,843		4,640			Member Units (1,867 units)(8)				3,579		3,880

						4,715		5,512							3,927		4,228

Vision Interests, Inc.	Manufacturer / Installer of Commercial Signage									Manufacturer / Installer of Commercial Signage
		13% Secured Debt (Maturity—December 23, 2018)		2,814		2,814		2,814			13% Secured Debt (Maturity—December 23, 2018)		2,814		2,797		2,797
		Series A Preferred Stock (3,000,000 shares)				3,000		3,000			Series A Preferred Stock (3,000,000 shares)				3,000		3,000
		Common Stock (1,126,242 shares)				3,706		—			Common Stock (1,126,242 shares)				3,706		—

						9,520		5,814							9,503		5,797

Ziegler's NYPD, LLC	Casual Restaurant Group									Casual Restaurant Group
		6.5% Secured Debt (Maturity—October 1, 2019)		1,000		994		994			6.5% Secured Debt (Maturity—October 1, 2019)		1,000		996		996
		12% Secured Debt (Maturity—October 1, 2019)		300		300		300			12% Secured Debt (Maturity—October 1, 2019)		300		300		300
		14% Secured Debt (Maturity—October 1, 2019)		2,750		2,750		2,750			14% Secured Debt (Maturity—October 1, 2019)		2,750		2,750		2,750
		Warrants (587 equivalent units)				600		240			Warrants (587 equivalent units; Expiration—September 29, 2018; Strike price—$0.01 per unit)				600		—
		Preferred Member Units (10,072 units)				2,834		4,100			Preferred Member Units (10,072 units)				2,834		3,220

						7,478		8,384							7,480		7,266

Subtotal Control Investments (29.8% of total investments at fair value)					$	439,674	$	594,282
Subtotal Control Investments (34.6% of total investments at fair value)									Subtotal Control Investments (34.6% of total investments at fair value)					$	530,034	$	750,706

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, ~~2016~~2017

(dollars in thousands)



Portfolio Company(1)	Business Description	Type of Investment(2)(3)	Principal(4)		Cost(4)		Fair Value
Portfolio Company(1)(20)									Business Description	Type of Investment(2)(3)(27)	Principal(4)		Cost(4)		Fair Value(18)
Affiliate Investments(6)

AFG Capital Group, LLC	Provider of Rent-to-Own Financing Solutions and Services								Provider of Rent-to-Own Financing Solutions and Services
		Warrants (42 equivalent units)			$	259	$	670		Warrants (42 equivalent units; Expiration—November 7, 2024; Strike price—$0.01 per unit)			$	259	$	860
		Member Units (186 units)(8)				1,200		2,750		Preferred Member Units (186 units)(8)				1,200		3,590

						1,459		3,420						1,459		4,450

Barfly Ventures, LLC(10)	Casual Restaurant Group								Casual Restaurant Group
		12% Secured Debt (Maturity—August 31, 2020)		5,958		5,860		5,827		12% Secured Debt (Maturity—August 31, 2020)		8,715		8,572		8,715
		Options (2 equivalent units)				397		490		Options (2 equivalent units)				397		920
		Warrant (1 equivalent unit)				473		280		Warrant (1 equivalent unit; Expiration—August 31, 2025; Strike price—$1.00 per unit)				473		520

						6,730		6,597						9,442		10,155

BBB Tank Services, LLC	Maintenance, Repair and Construction Services to the Above-Ground Storage Tank Market								Maintenance, Repair and Construction Services to the Above-Ground Storage Tank Market
		LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.50%, Secured Debt (Maturity—April 8, 2021)(9)		800		797		797		LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.36%, Secured Debt (Maturity—April 8, 2021)(9)		800		778		778
		15% Current Secured Debt (Maturity—April 8, 2021)		4,027		3,991		3,991		15% Secured Debt (Maturity—April 8, 2021)		4,000		3,876		3,876
		Member Units (800,000 units)				800		800		Member Units (800,000 units)				800		500

						5,588		5,588						5,454		5,154

Boss Industries, LLC	Manufacturer and Distributor of Air, Power and Other Industrial Equipment
		Preferred Member Units (2,242 units)(8)				2,426		2,800

Bridge Capital Solutions Corporation	Financial Services and Cash Flow Solutions Provider
		13% Secured Debt (Maturity—July 25, 2021)		7,500		5,610		5,610
		Warrants (63 equivalent shares)				2,132		3,370
Boccella Precast Products LLC									Manufacturer of Precast Hollow Core Concrete
		13% Secured Debt (Mercury Service Group, LLC) (Maturity—July 25, 2021)		1,000		991		1,000		LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 11.34%, Secured Debt (Maturity—June 30, 2022)(9)		16,400		16,230		16,400
		Preferred Member Units (Mercury Service Group, LLC) (17,742 units)(8)				1,000		1,000		Member Units (2,160,000 units)				2,160		3,440

						9,733		10,980						18,390		19,840

Buca C, LLC	Casual Restaurant Group
Boss Industries, LLC									Manufacturer and Distributor of Air, Power and Other Industrial Equipment
		LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.25%, Secured Debt (Maturity—June 30, 2020)(9)		22,671		22,504		22,671		Preferred Member Units (2,242 units)(8)				2,080		3,930
		Preferred Member Units (6 units; 6% cumulative)(8)				3,937		4,660

						26,441		27,331

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, ~~2016~~2017

(dollars in thousands)



Portfolio Company(1)	Business Description	Type of Investment(2)(3)	Principal(4)		Cost(4)		Fair Value
Portfolio Company(1)(20)										Business Description	Type of Investment(2)(3)(27)	Principal(4)		Cost(4)		Fair Value(18)
CAI Software LLC	Provider of Specialized Enterprise Resource Planning Software
Bridge Capital Solutions Corporation										Financial Services and Cash Flow Solutions Provider
											13% Secured Debt (Maturity—July 25, 2021)		7,500		5,884		5,884
											Warrants (63 equivalent shares; Expiration—July 25, 2026; Strike price—$0.01 per share)				2,132		3,520
		12% Secured Debt (Maturity—October 10, 2019)		3,683		3,660		3,683			13% Secured Debt (Mercury Service Group, LLC) (Maturity—July 25, 2021)		1,000		992		1,000
		Member Units (65,356 units)(8)				654		2,480			Preferred Member Units (Mercury Service Group, LLC) (17,742 units)(8)				1,000		1,000

						4,314		6,163							10,008		11,404

CapFusion, LLC(13)	Non-Bank Lender to Small Businesses
Buca C, LLC										Casual Restaurant Group
											LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.63%, Secured Debt (Maturity—June 30, 2020)(9)		20,304		20,193		20,193
											Preferred Member Units (6 units; 6% cumulative)(8)(19)				4,177		4,172

															24,370		24,365

CAI Software LLC										Provider of Specialized Enterprise Resource Planning Software
		13% Secured Debt (Maturity—March 25, 2021)		14,400		13,202		13,202			12% Secured Debt (Maturity—October 10, 2019)		4,083		4,060		4,083
		Warrants (1,600 equivalent units)				1,200		1,200			Member Units (65,356 units)(8)				654		3,230

						14,402		14,402							4,714		7,313

Chandler Signs Holdings, LLC(10)	Sign Manufacturer									Sign Manufacturer
		12% Secured Debt (Maturity—July 4, 2021)		4,500		4,461		4,500			12% Secured Debt (Maturity—July 4, 2021)		4,500		4,468		4,500
		Class A Units (1,500,000 units)(8)				1,500		3,240			Class A Units (1,500,000 units)(8)				1,500		2,650
									��
						5,961		7,740							5,968		7,150

Condit Exhibits, LLC	Tradeshow Exhibits / Custom Displays Provider									Tradeshow Exhibits / Custom Displays Provider
		Member Units (3,936 units)(8)				100		1,840			Member Units (3,936 units)(8)				100		1,950

Congruent Credit Opportunities Funds(12)(13)	Investment Partnership									Investment Partnership
		LP Interests (Congruent Credit Opportunities Fund II, LP) (Fully diluted 19.8%)(8)				5,730		1,518			LP Interests (Congruent Credit Opportunities Fund II, LP) (Fully diluted 19.8%)(8)				5,730		1,515
		LP Interests (Congruent Credit Opportunities Fund III, LP) (Fully diluted 17.4%)(8)				15,754		16,181			LP Interests (Congruent Credit Opportunities Fund III, LP) (Fully diluted 17.4%)(8)				17,869		18,632

						21,484		17,699							23,599		20,147

Daseke, Inc.	Specialty Transportation Provider
		12% Current / 2.5% PIK Secured Debt (Maturity—July 31, 2018)		21,799		21,632		21,799
		Common Stock (19,467 shares)				5,213		24,063

						26,845		45,862

Dos Rios Partners(12)(13)	Investment Partnership
		LP Interests (Dos Rios Partners, LP) (Fully diluted 20.2%)				5,996		4,925
		LP Interests (Dos Rios Partners—A, LP) (Fully diluted 6.4%)				1,904		1,444

						7,900		6,369

Dos Rios Stone Products LLC(10)	Limestone and Sandstone Dimension Cut Stone Mining Quarries
		Class A Units (2,000,000 units)(8)				2,000		2,070

East Teak Fine Hardwoods, Inc.	Distributor of Hardwood Products
		Common Stock (6,250 shares)(8)				480		860

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, ~~2016~~2017

(dollars in thousands)



Portfolio Company(1)	Business Description	Type of Investment(2)(3)	Principal(4)		Cost(4)		Fair Value
Portfolio Company(1)(20)									Business Description	Type of Investment(2)(3)(27)	Principal(4)		Cost(4)		Fair Value(18)
East West Copolymer & Rubber, LLC	Manufacturer of Synthetic Rubbers
Dos Rios Partners(12)(13)									Investment Partnership
		12% Current / 2% PIK Secured Debt (Maturity—October 17, 2019)		9,699		9,591		8,630		LP Interests (Dos Rios Partners, LP) (Fully diluted 20.2%)				5,996		7,165
		Warrants (2,510,790 equivalent units)				50		—		LP Interests (Dos Rios Partners—A, LP) (Fully diluted 6.4%)				1,904		1,889

						9,641		8,630						7,900		9,054

EIG Fund Investments(12)(13)	Investment Partnership
Dos Rios Stone Products LLC(10)									Limestone and Sandstone Dimension Cut Stone Mining Quarries
		LP Interests (EIG Global Private Debt fund-A, L.P.) (Fully diluted 11.1%)(8)				2,804		2,804		Class A Preferred Units (2,000,000 units)(8)				2,000		1,790

EIG Traverse Co-Investment, L.P.(12)(13)	Investment Partnership
East Teak Fine Hardwoods, Inc.									Distributor of Hardwood Products
										Common Stock (6,250 shares)(8)				480		630

EIG Fund Investments(12)(13)									Investment Partnership
		LP Interests (Fully diluted 22.2%)(8)				9,805		9,905		LP Interests (EIG Global Private Debt Fund-A, L.P.) (Fully diluted 11.1%)(8)				1,103		1,055

Freeport Financial Funds(12)(13)	Investment Partnership								Investment Partnership
		LP Interests (Freeport Financial SBIC Fund LP) (Fully diluted 9.3%)(8)				5,974		5,620		LP Interests (Freeport Financial SBIC Fund LP) (Fully diluted 9.3%)(8)				5,974		5,614
		LP Interests (Freeport First Lien Loan Fund III LP) (Fully diluted 6.0%)(8)				4,763		4,763		LP Interests (Freeport First Lien Loan Fund III LP) (Fully diluted 6.0%)(8)				8,558		8,506

						10,737		10,383						14,532		14,120

Gault Financial, LLC (RMB Capital, LLC)	Purchases and Manages Collection of Healthcare and other Business Receivables								Purchases and Manages Collection of Healthcare and other Business Receivables
		10% Current Secured Debt (Maturity—January 1, 2019)		13,046		13,046		11,079		10.5% Secured Debt (Maturity—January 1, 2019)		12,483		12,483		11,532
		Warrants (29,025 equivalent units)				400		—		Warrants (29,032 equivalent units; Expiration—February 9, 2022; Strike price—$0.01 per unit)				400		—

						13,446		11,079						12,883		11,532

Glowpoint, Inc.	Provider of Cloud Managed Video Collaboration Services
		12% Secured Debt (Maturity—October 18, 2018)		9,000		8,949		3,997
		Common Stock (7,711,517 shares)				3,958		2,080

						12,907		6,077

Guerdon Modular Holdings, Inc.	Multi-Family and Commercial Modular Construction Company								Multi-Family and Commercial Modular Construction Company
		9% Current / 4% PIK Secured Debt (Maturity—August 13, 2019)		10,708		10,594		10,594		13% Secured Debt (Maturity—August 13, 2019)		10,708		10,632		10,632
		Preferred Stock (404,998 shares)				1,140		1,140		Preferred Stock (404,998 shares)				1,140		—
		Common Stock (212,033 shares)				2,983		80		Common Stock (212,033 shares)				2,983		—

						14,717		11,814						14,755		10,632

Hawk Ridge Systems, LLC(13)	Value-Added Reseller of Engineering Design and Manufacturing Solutions
Harris Preston Fund Investments(12)(13)									Investment Partnership
		10% Secured Debt (Maturity—December 2, 2021)		10,000		9,901		9,901		LP Interests (HPEP 3, L.P.) (Fully diluted 9.9%)				943		943
		Preferred Member Units (226 units)(8)				2,850		2,850
		Preferred Member Units (HRS Services, ULC) (226 units)				150		150

						12,901		12,901

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, ~~2016~~2017

(dollars in thousands)



Portfolio Company(1)	Business Description	Type of Investment(2)(3)	Principal(4)		Cost(4)		Fair Value
Portfolio Company(1)(20)									Business Description	Type of Investment(2)(3)(27)	Principal(4)		Cost(4)		Fair Value(18)
Houston Plating and Coatings, LLC	Provider of Plating and Industrial Coating Services
		Member Units (265,756 units)				1,429		4,000

I-45 SLF LLC(12)(13)	Investment Partnership
		Member units (Fully diluted 20.0%; 24.4% profits interest)(8)				14,200		14,586

Indianhead Pipeline Services, LLC	Provider of Pipeline Support Services
		12% Secured Debt (Maturity—February 6, 2017)		5,100		5,079		5,079
Hawk Ridge Systems, LLC(13)									Value-Added Reseller of Engineering Design and Manufacturing Solutions
		Preferred Member Units (33,819 units; 8% cumulative)(8)				2,339		2,677		11% Secured Debt (Maturity—December 2, 2021)		14,300		14,175		14,300
		Warrants (31,928 equivalent units)				459		—		Preferred Member Units (226 units)(8)				2,850		3,800
		Member Units (14,732 units)				1		—		Preferred Member Units (HRS Services, ULC) (226 units)(8)				150		200

						7,878		7,756						17,175		18,300

KBK Industries, LLC	Manufacturer of Specialty Oilfield and Industrial Products
		10% Secured Debt (Maturity—September 28, 2017)		1,250		1,250		1,250
Houston Plating and Coatings, LLC									Provider of Plating and Industrial Coating Services
		12.5% Secured Debt (Maturity—September 28, 2017)		5,900		5,889		5,889		8% Unsecured Convertible Debt (Maturity—May 1, 2022)		3,000		3,000		3,200
		Member Units (250 units)				341		2,780		Member Units (315,756 units)				2,179		6,140

						7,480		9,919						5,179		9,340

I-45 SLF LLC(12)(13)									Investment Partnership
										Member Units (Fully diluted 20.0%; 24.4% profits interest)(8)				16,200		16,841

L.F. Manufacturing Holdings, LLC(10)	Manufacturer of Fiberglass Products								Manufacturer of Fiberglass Products
		Member Units (2,179,001 units)				2,019		1,380		Member Units (2,179,001 units)				2,019		2,000

Meisler Operating LLC									Provider of Short-term Trailer and Container Rental
										LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.84%, Secured Debt (Maturity—June 7, 2022)(9)		16,800		16,633		16,633
										Member Units (Milton Meisler Holdings LLC) (31,976 units)				3,200		3,390

														19,833		20,023

OnAsset Intelligence, Inc.	Provider of Transportation Monitoring / Tracking Products and Services								Provider of Transportation Monitoring / Tracking Products and Services
										12% PIK Secured Debt (Maturity—June 30, 2021)(19)		5,094		5,094		5,094
		12% PIK Secured Debt (Maturity—December 31, 2015)(17)		4,519		4,519		4,519		10% PIK Unsecured Debt (Maturity—June 30, 2021)(19)		48		48		48
		Preferred Stock (912 shares; 7% cumulative)				1,981		—		Preferred Stock (912 shares)				1,981		—
		Warrants (5,333 equivalent shares)				1,919		—		Warrants (5,333 equivalent shares; Expiration—April 18, 2021; Strike price—$0.01 per share)				1,919		—

						8,419		4,519						9,042		5,142

OPI International Ltd.(13)	Provider of Man Camp and Industrial Storage Services								Provider of Man Camp and Industrial Storage Services
		10% Unsecured Debt (Maturity—April 8, 2018)		473		473		473		Common Stock (20,766,317 shares)				1,371		—
		Common Stock (20,766,317 shares)				1,371		1,600

						1,844		2,073

PCI Holding Company, Inc.	Manufacturer of Industrial Gas Generating Systems
		12% Secured Debt (Maturity—March 31, 2019)		13,000		12,898		13,000
		Preferred Stock (1,500,000 shares; 20% cumulative)(8)				3,379		5,370

						16,277		18,370

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, ~~2016~~2017

(dollars in thousands)


Portfolio Company(1)	Business Description	Type of Investment(2)(3)	Principal(4)		Cost(4)		Fair Value
Portfolio Company(1)(20)									Business Description	Type of Investment(2)(3)(27)	Principal(4)		Cost(4)		Fair Value(18)

PCI Holding Company, Inc.									Manufacturer of Industrial Gas Generating Systems
										12% Secured Debt (Maturity—March 31, 2019)		12,650		12,593		12,593
										Preferred Stock (1,740,000 shares) (non-voting)				1,740		2,610
										Preferred Stock (1,500,000 shares; 20% cumulative)(8)(19)				3,927		890

														18,260		16,093

Rocaceia, LLC (Quality Lease and Rental Holdings, LLC)	Provider of Rigsite Accommodation Unit Rentals and Related Services								Provider of Rigsite Accommodation Unit Rentals and Related Services
		12% Secured Debt (Maturity—January 8, 2018)(14)(15)		30,785		30,281		250		12% Secured Debt (Maturity—January 8, 2018)(14)(15)		30,785		30,281		250
		Preferred Member Units (250 units)				2,500		—		Preferred Member Units (250 units)				2,500		—

						32,781		250						32,781		250

Tin Roof Acquisition Company	Casual Restaurant Group								Casual Restaurant Group
		12% Secured Debt (Maturity—November 13, 2018)		13,511		13,385		13,385		12% Secured Debt (Maturity—November 13, 2018)		12,783		12,722		12,722
		Class C Preferred Stock (Fully diluted 10.0%; 10% cumulative)(8)				2,738		2,738		Class C Preferred Stock (Fully diluted 10.0%; 10% cumulative)(8)(19)				3,027		3,027

						16,123		16,123						15,749		15,749

UniTek Global Services, Inc.(11)	Provider of Outsourced Infrastructure Services								Provider of Outsourced Infrastructure Services
		LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity—January 13, 2019)(9)		5,021		5,010		5,021		LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.20%, Secured Debt (Maturity—January 13, 2019)(9)		8,535		8,529		8,535
		LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity—January 13, 2019)(9)		824		824		824		LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 9.20% / 1.00% PIK, Current Coupon Plus PIK 10.20%, Secured Debt (Maturity—January 13, 2019)(9)(19)		137		137		137
		15% PIK Unsecured Debt (Maturity—July 13, 2019)		745		745		745		15% PIK Unsecured Debt (Maturity—July 13, 2019)(19)		865		865		865
		Preferred Stock (4,935,377 shares; 13.5% cumulative)(8)				5,814		6,410		Preferred Stock (2,596,567 shares; 19% cumulative)(8)(19)				2,858		2,850
		Common Stock (705,054 shares)				—		3,010		Preferred Stock (4,935,377 shares; 13.5% cumulative)(8)(19)				7,361		7,320

						12,393		16,010

Universal Wellhead Services Holdings, LLC(10)	Provider of Wellhead Equipment, Designs, and Personnel to the Oil & Gas Industry
		Preferred Member Units (UWS Investments, LLC) (716,949 units; 14% cumulative)				717		720
		Member Units (UWS Investments, LLC) (4,000,000 units)				4,000		610		Common Stock (1,075,992 shares)				—		2,490

						4,717		1,330						19,750		22,197

Valley Healthcare Group, LLC	Provider of Durable Medical Equipment
		LIBOR Plus 12.50% (Floor 0.50%), Current Coupon 13.12%, Secured Debt (Maturity—December 29, 2020)(9)		12,956		12,844		12,844
		Preferred Member Units (Valley Healthcare Holding, LLC) (1,600 units)				1,600		1,600

						14,444		14,444

Volusion, LLC	Provider of Online Software-as-a-Service eCommerce Solutions
		11.5% Secured Debt (Maturity—January 26, 2020)		17,500		15,298		15,298
		Preferred Member Units (4,876,670 units)				14,000		14,000
		Warrants (1,831,355 equivalent units)				2,576		2,576

						31,874		31,874

Subtotal Affiliate Investments (18.8% of total investments at fair value)					$	394,699	$	375,948

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, 2017

(dollars in thousands)

Portfolio Company(1)(20)	Business Description	Type of Investment(2)(3)(27)		Cost(4)		Fair Value(18)


Universal Wellhead Services Holdings, LLC(10)	Provider of Wellhead Equipment, Designs, and Personnel to the Oil & Gas Industry
		Preferred Member Units (UWS Investments, LLC) (716,949 units)			717		830
		Member Units (UWS Investments, LLC) (4,000,000 units)			4,000		1,910

					4,717		2,740

Valley Healthcare Group, LLC	Provider of Durable Medical Equipment
		LIBOR Plus 12.50% (Floor 0.50%), Current Coupon 13.86%, Secured Debt (Maturity—December 29, 2020)(9)	11,766		11,685		11,685
		Preferred Member Units (Valley Healthcare Holding, LLC) (1,600 units)			1,600		1,600

					13,285		13,285

Volusion, LLC	Provider of Online Software-as-a-Service eCommerce Solutions
		11.5% Secured Debt (Maturity—January 26, 2020)	16,734		15,200		15,200
		Preferred Member Units (4,876,670 units)			14,000		14,000
		Warrants (1,831,355 equivalent units; Expiration—January 26, 2025; Strike price—$0.01 per unit)			2,576		2,080

					31,776		31,280

Subtotal Affiliate Investments (15.6% of total investments at fair value)				$	367,317	$	338,854

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, ~~2016~~2017

(dollars in thousands)

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

Non-Control/Non-Affiliate Investments(7)

Adams Publishing Group, LLC(10)

Local Newspaper Operator

LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.00%, Secured Debt (Maturity—November 3, 2020)(9)
$ 7,662 $ 7,544 $ 7,662

Ahead, LLC(10)

IT Infrastructure Value Added Reseller

LIBOR Plus 6.50%, Current Coupon 7.50%, Secured Debt (Maturity—November 2, 2020)
14,250 13,906 14,303

Allflex Holdings III Inc.(11)

Manufacturer of Livestock Identification Products

LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.00%, Secured Debt (Maturity—July 19, 2021)(9)
14,795 14,706 14,809

American Scaffold Holdings, Inc.(10)

Marine Scaffolding Service Provider

LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—March 31, 2022)(9)
7,359 7,258 7,323

American Seafoods Group, LLC(11)

Catcher and Processor of Alaskan Pollock

LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.00%, Secured Debt (Maturity—August 19, 2021)(9)
9,634 9,624 9,634

American Teleconferencing Services, Ltd.(11)

Provider of Audio Conferencing and Video Collaboration Solutions

LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—December 8, 2021)(9)
11,163 10,345 10,933

LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.50%, Secured Debt (Maturity—June 6, 2022)(9)
3,714 3,569 3,569

13,914 14,502

Anchor Hocking, LLC(11)

Household Products Manufacturer

LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.00%, Secured Debt (Maturity—June 4, 2018)(9)
2,277 2,277 2,231

Member Units (440,620 units)
4,928 3,305

7,205 5,536

Portfolio Company(1)(20)	Business Description	Type of Investment(2)(3)(27)	Principal(4)		Cost(4)		Fair Value(18)


Non-Control/Non-Affiliate Investments(7)

AAC Holdings, Inc.(11)	Substance Abuse Treatment Service Provider
		LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 8.13%, Secured Debt (Maturity—June 30, 2023)(9)	$	11,751	$	11,475	$	11,810

Adams Publishing Group, LLC(10)	Local Newspaper Operator
		LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.69%, Secured Debt (Maturity—November 3, 2020)(9)		10,341		10,116		10,147

ADS Tactical, Inc.(10)	Value-Added Logistics and Supply Chain Provider to the Defense Industry
		LIBOR Plus 7.50% (Floor 0.75%), Current Coupon 9.19%, Secured Debt (Maturity—December 31, 2022)(9)		13,014		12,767		12,833

Aethon United BR LP(10)	Oil & Gas Exploration & Production
		LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 8.15%, Secured Debt (Maturity—September 8, 2023)(9)		3,438		3,388		3,388

Ahead, LLC(10)	IT Infrastructure Value Added Reseller
		LIBOR Plus 6.50%, Current Coupon 8.20%, Secured Debt (Maturity—November 2, 2020)		11,061		10,848		11,130

Allflex Holdings III Inc.(11)	Manufacturer of Livestock Identification Products
		LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.36%, Secured Debt (Maturity—July 19, 2021)(9)		13,846		13,781		13,955

American Scaffold Holdings, Inc.(10)	Marine Scaffolding Service Provider
		LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.19%, Secured Debt (Maturity—March 31, 2022)(9)		7,031		6,947		6,996

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, ~~2016~~2017

(dollars in thousands)

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

AP Gaming I, LLC(10)

Developer, Manufacturer, and Operator of Gaming Machines

LIBOR Plus 8.25% (Floor 1.00%), Current Coupon 9.25%, Secured Debt (Maturity—December 20, 2020)(9)
7,209 7,099 7,194

Apex Linen Service, Inc.

Industrial Launderers

LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—October 30, 2022)(9)
2,400 2,400 2,400

13% Secured Debt (Maturity—October 30, 2022)
14,416 14,337 14,337

16,737 16,737

Applied Products, Inc.(10)

Adhesives Distributor

LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—September 30, 2019)(9)
3,527 3,499 3,518

Arcus Hunting LLC.(10)

Manufacturer of Bowhunting and Archery Products and Accessories

LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.00%, Secured Debt (Maturity—November 13, 2019)(9)
13,947 13,796 13,947

Artel, LLC(11)

Provider of Secure Satellite Network and IT Solutions

LIBOR Plus 7.00% (Floor 1.25%), Current Coupon 8.25%, Secured Debt (Maturity—November 27, 2017)(9)
7,050 6,920 6,592

ATI Investment Sub, Inc.(11)

Manufacturer of Solar Tracking Systems

LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.25%, Secured Debt (Maturity—June 22, 2021)(9)
9,500 9,322 9,476

ATS Workholding, Inc.(10)

Manufacturer of Machine Cutting Tools and Accessories

LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.50%, Secured Debt (Maturity—March 10, 2019)(9)
6,173 6,146 5,924

ATX Networks Corp.(11)(13)

Provider of Radio Frequency Management Equipment

LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—June 11, 2021)(9)
11,790 11,604 11,584

Portfolio Company(1)(20)	Business Description	Type of Investment(2)(3)(27)


American Teleconferencing Services, Ltd.(11)	Provider of Audio Conferencing and Video Collaboration Solutions
		LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.90%, Secured Debt (Maturity—December 8, 2021)(9)	10,582	9,934	10,443
		LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.85%, Secured Debt (Maturity—June 6, 2022)(9)	3,714	3,589	3,507

				13,523	13,950

Anchor Hocking, LLC(11)	Household Products Manufacturer
		LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.49%, Secured Debt (Maturity—June 4, 2020)(9)	2,254	2,211	2,248
		Member Units (440,620 units)		4,928	3,745

				7,139	5,993

Apex Linen Service, Inc.	Industrial Launderers
		LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.36%, Secured Debt (Maturity—October 30, 2022)(9)	2,400	2,400	2,400
		16% Secured Debt (Maturity—October 30, 2022)	14,416	14,347	14,347

				16,747	16,747

Arcus Hunting LLC.(10)	Manufacturer of Bowhunting and Archery Products and Accessories
		LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.34%, Secured Debt (Maturity—November 13, 2019)(9)	15,391	15,294	15,391

ATI Investment Sub, Inc.(11)	Manufacturer of Solar Tracking Systems
		LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.82%, Secured Debt (Maturity—June 22, 2021)(9)	7,364	7,215	7,346

ATX Networks Corp.(11)(13)(21)	Provider of Radio Frequency Management Equipment
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.33% / 1.00% PIK, Current Coupon Plus PIK 8.33%, Secured Debt (Maturity—June 11, 2021)(9)(19)	9,567	9,454	9,507

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, ~~2016~~2017

(dollars in thousands)



Portfolio Company(1)	Business Description	Type of Investment(2)(3)	Principal(4)		Cost(4)		Fair Value
Portfolio Company(1)(20)									Business Description	Type of Investment(2)(3)(27)	Principal(4)		Cost(4)		Fair Value(18)
Berry Aviation, Inc.(10)	Airline Charter Service Operator								Airline Charter Service Operator
										13.75% Secured Debt (Maturity—January 30, 2020)		5,627		5,598		5,627
										Common Stock (553 shares)				400		1,010

														5,998		6,637

BigName Commerce, LLC(10)									Provider of Envelopes and Complimentary Stationery Products
										LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.59%, Secured Debt (Maturity—May 11, 2022)(9)		2,488		2,461		2,461

Binswanger Enterprises, LLC(10)									Glass Repair and Installation Service Provider
		12.00% Current / 1.75% PIK Secured Debt (Maturity—January 30, 2020)		5,627		5,588		5,627		LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.69%, Secured Debt (Maturity—March 9, 2022)(9)		15,325		15,060		15,192
		Common Stock (553 shares)				400		820		Member Units (1,050,000 units)				1,050		1,000

						5,988		6,447						16,110		16,192

Bluestem Brands, Inc.(11)	Multi-Channel Retailer of General Merchandise								Multi-Channel Retailer of General Merchandise
		LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity—November 6, 2020)(9)		12,880		12,635		11,227		LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 9.07%, Secured Debt (Maturity—November 6, 2020)(9)		12,127		11,955		8,540

Brainworks Software, LLC(10)	Advertising Sales and Newspaper Circulation Software								Advertising Sales and Newspaper Circulation Software
		Prime Plus 9.25% (Floor 3.25%), Current Coupon 13.00%, Secured Debt (Maturity—July 22, 2019)(9)		6,733		6,684		6,733		Prime Plus 9.25% (Floor 3.25%), Current Coupon 13.75%, Secured Debt (Maturity—July 22, 2019)(9)		6,733		6,705		6,573

Brightwood Capital Fund Investments(12)(13)	Investment Partnership								Investment Partnership
		LP Interests (Brightwood Capital Fund III, LP) (Fully diluted 1.6%)(8)				12,000		11,094		LP Interests (Brightwood Capital Fund III, LP) (Fully diluted 1.6%)(8)				12,000		10,328
		LP Interests (Brightwood Capital Fund IV, LP) (Fully diluted 0.9%)				500		500		LP Interests (Brightwood Capital Fund IV, LP) (Fully diluted 0.8%)(8)				1,000		1,063

						12,500		11,594						13,000		11,391

Brundage-Bone Concrete Pumping, Inc.(11)	Construction Services Provider								Construction Services Provider
		10.375% Secured Debt (Maturity—September 1, 2021)		3,000		2,985		3,240		10.375% Secured Debt (Maturity—September 1, 2023)		3,000		2,987		3,180

California Pizza Kitchen, Inc.(11)	Casual Restaurant Group
Cadence Aerospace LLC(10)									Aerostructure Manufacturing
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—August 23, 2022)(9)		4,988		4,940		4,976		LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.91%, Secured Debt (Maturity—November 14, 2023)(9)		15,000		14,853		14,853

Cenveo Corporation(11)	Provider of Commercial Printing, Envelopes, Labels, and Printed Office Products
		6% Secured Debt (Maturity—August 1, 2019)		13,130		11,097		11,719

CDHA Management, LLC(10)	Dental Services
		LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.25%, Secured Debt (Maturity—December 5, 2021)(9)		4,491		4,415		4,415

Charlotte Russe, Inc(11)	Fast-Fashion Retailer to Young Women
		LIBOR Plus 5.50% (Floor 1.25%), Current Coupon 6.75%, Secured Debt (Maturity—May 22, 2019)(9)		14,346		14,141		8,724

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, ~~2016~~2017

(dollars in thousands)

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

Clarius BIGS, LLC(10)

Prints & Advertising Film Financing

15% PIK Secured Debt (Maturity—January 5, 2015)(14)(17)
2,928 2,928 88

Compact Power Equipment, Inc.

Equipment / Tool Rental

12% Secured Debt (Maturity—October 1, 2017)
4,100 4,095 4,100

Series A Preferred Stock (4,298,435 shares)
1,079 4,180

5,174 8,280

Compuware Corporation(11)

Provider of Software and Supporting Services

LIBOR Plus 5.25% (Floor 1.00%), Current Coupon 6.25%, Secured Debt (Maturity—December 15, 2019)(9)
8,345 8,187 8,398

Construction Supply Investments, LLC(10)

Distribution Platform of Specialty Construction Materials to Professional Concrete and Masonry Contractors

LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.50%, Secured Debt (Maturity—June 30, 2023)(9)
8,500 8,416 8,416

Member Units (20,000 units)
2,000 2,000

10,416 10,416

ContextMedia Health, LLC(11)

Provider of Healthcare Media Content

LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—December 23, 2021)(9)
8,000 7,201 7,320

Covenant Surgical Partners, Inc.(11)

Ambulatory Surgical Centers

8.75% Secured Debt (Maturity—August 1, 2019)
800 800 772

CRGT Inc.(11)

Provider of Custom Software Development

LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—December 19, 2020)(9)
6,366 6,286 6,382

CST Industries Inc.(11)

Storage Tank Manufacturer

LIBOR Plus 6.25% (Floor 1.50%), Current Coupon 7.75%, Secured Debt (Maturity—May 22, 2017)(9)
9,102 9,084 9,102

Portfolio Company(1)(20)	Business Description	Type of Investment(2)(3)(27)


CapFusion, LLC(13)	Non-Bank Lender to Small Businesses
		13% Secured Debt (Maturity—March 25, 2021)(14)	6,705	5,645	1,871

California Pizza Kitchen, Inc.(11)	Casual Restaurant Group
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.57%, Secured Debt (Maturity—August 23, 2022)(9)	12,902	12,862	12,677

CDHA Management, LLC(10)	Dental Services
		LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.76%, Secured Debt (Maturity—December 5, 2021)(9)	5,365	5,303	5,365

Central Security Group, Inc.(11)	Security Alarm Monitoring Service Provider
		LIBOR Plus 5.63% (Floor 1.00%), Current Coupon 7.19%, Secured Debt (Maturity—October 6, 2021)(9)	7,481	7,462	7,518

Cenveo Corporation(11)	Provider of Commercial Printing, Envelopes, Labels, and Printed Office Products
		6% Secured Debt (Maturity—August 1, 2019)	19,130	17,126	13,582

Charlotte Russe, Inc(11)	Fast-Fashion Retailer to Young Women
		LIBOR Plus 5.50% (Floor 1.25%), Current Coupon 6.89%, Secured Debt (Maturity—May 22, 2019)(9)	19,041	16,473	7,807

Clarius BIGS, LLC(10)	Prints & Advertising Film Financing
		15% PIK Secured Debt (Maturity—January 5, 2015)(14)(17)	2,924	2,924	85

Clickbooth.com, LLC(10)	Provider of Digital Advertising Performance Marketing Solutions
		LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.01%, Secured Debt (Maturity—December 5, 2022)(9)	3,000	2,941	2,941

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, ~~2016~~2017

(dollars in thousands)


Portfolio Company(1)	Business Description	Type of Investment(2)(3)	Principal(4)		Cost(4)		Fair Value
Portfolio Company(1)(20)									Business Description	Type of Investment(2)(3)(27)	Principal(4)		Cost(4)		Fair Value(18)

Construction Supply Investments, LLC(10)									Distribution Platform of Specialty Construction Materials to Professional Concrete and Masonry Contractors
										LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.57%, Secured Debt (Maturity—June 30, 2023)(9)		7,125		7,090		7,090
										Member Units (28,000 units)				3,723		3,723

														10,813		10,813

CTVSH, PLLC(10)									Emergency Care and Specialty Service Animal Hospital
										LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.48%, Secured Debt (Maturity—August 3, 2022)(9)		11,850		11,739		11,739

Darr Equipment LP(10)	Heavy Equipment Dealer								Heavy Equipment Dealer
		12% Current / 2% PIK Secured Debt (Maturity—April 15, 2020)		21,130		20,697		20,748		11.5% Current / 1% PIK Secured Debt (Maturity—June 22, 2023)(19)		7,229		7,229		7,229
		Warrants (915,734 equivalent units)				474		10		Warrants (915,734 equivalent units; Expiration—December 23, 2023; Strike price—$1.50 per unit)				474		10

						21,171		20,758						7,703		7,239

Digital River, Inc.(11)	Provider of Outsourced e-Commerce Solutions and Services								Provider of Outsourced e-Commerce Solutions and Services
		LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—February 12, 2021)(9)		15,184		15,086		15,317		LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.08%, Secured Debt (Maturity—February 12, 2021)(9)		9,313		9,266		9,337

Digital Room LLC(11)	Pure-Play e-Commerce Print Business
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—November 21, 2022)(9)		7,625		7,475		7,549

Drilling Info Holdings, Inc.	Information Services for the Oil and Gas Industry								Information Services for the Oil and Gas Industry
		Common Stock (3,788,865 shares)				1,335		10,410		Common Stock (3,788,865 shares)(8)				—		8,610

ECP-PF Holdings Group, Inc.(10)	Fitness Club Operator
		LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.00%, Secured Debt (Maturity—November 26, 2019)(9)		5,625		5,589		5,625

EnCap Energy Fund Investments(12)(13)	Investment Partnership
		LP Interests (EnCap Energy Capital Fund VIII, L.P.) (Fully diluted 0.1%)(8)				3,877		1,955
		LP Interests (EnCap Energy Capital Fund VIII Co-Investors, L.P.) (Fully diluted 0.4%)				2,200		1,225
		LP Interests (EnCap Energy Capital Fund IX, L.P.) (Fully diluted 0.1%)(8)				3,957		3,680
		LP Interests (Encap Energy Capital Fund X, L.P.) (Fully diluted 0.1%)				3,039		3,039
		LP Interests (EnCap Flatrock Midstream Fund II, L.P.) (Fully diluted 0.8%)(8)				9,116		10,452
		LP Interests (EnCap Flatrock Midstream Fund III, L.P.) (Fully diluted 0.2%)(8)				2,513		2,461

						24,702		22,812

Evergreen Skills Lux S.á r.l. (d/b/a Skillsoft)(11)(13)	Technology-based Performance Support Solutions
		LIBOR Plus 8.25% (Floor 1.00%), Current Coupon 9.25%, Secured Debt (Maturity—April 28, 2022)(9)		7,000		6,857		5,274

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, ~~2016~~2017

(dollars in thousands)

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

Flavors Holdings Inc.(11)

Global Provider of Flavoring and Sweetening Products and Solutions

LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 6.75%, Secured Debt (Maturity—April 3, 2020)(9)
12,483 12,082 10,174

GI KBS Merger Sub LLC(11)

Outsourced Janitorial Services to Retail/Grocery Customers

LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.00%, Secured Debt (Maturity—October 29, 2021)(9)
3,900 3,851 3,842

LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity—April 29, 2022)(9)
800 787 760

4,638 4,602

Grace Hill, LLC(10)

Online Training Tools for the Multi-Family Housing Industry

Prime Plus 5.25% (Floor 1.00%), Current Coupon 9.00%, Secured Debt (Maturity—August 15, 2019)(9)
634 623 634

LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.25%, Secured Debt (Maturity—August 15, 2019)(9)
11,552 11,472 11,552

12,095 12,186

Great Circle Family Foods, LLC(10)

Quick Service Restaurant Franchise

LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—October 28, 2019)(9)
7,648 7,598 7,648

Grupo Hima San Pablo, Inc.(11)

Tertiary Care Hospitals

LIBOR Plus 7.00% (Floor 1.50%), Current Coupon 8.50%, Secured Debt (Maturity—January 31, 2018)(9)
4,813 4,787 3,734

13.75% Secured Debt (Maturity—July 31, 2018)
2,000 1,962 1,205

6,749 4,939

GST Autoleather, Inc.(11)

Automotive Leather Manufacturer

LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 6.50%, Secured Debt (Maturity—July 10, 2020)(9)
13,317 13,215 13,017

Guitar Center, Inc.(11)

Musical Instruments Retailer

6.5% Secured Debt (Maturity—April 15, 2019)
14,625 13,890 13,272

Portfolio Company(1)(20)	Business Description	Type of Investment(2)(3)(27)


EnCap Energy Fund Investments(12)(13)	Investment Partnership
		LP Interests (EnCap Energy Capital Fund VIII, L.P.) (Fully diluted 0.1%)(8)		3,906	2,202
		LP Interests (EnCap Energy Capital Fund VIII Co-Investors, L.P.) (Fully diluted 0.4%)		2,227	1,549
		LP Interests (EnCap Energy Capital Fund IX, L.P.) (Fully diluted 0.1%)(8)		4,305	3,720
		LP Interests (EnCap Energy Capital Fund X, L.P.) (Fully diluted 0.1%)(8)		6,277	6,225
		LP Interests (EnCap Flatrock Midstream Fund II, L.P.) (Fully diluted 0.8%)(8)		6,138	6,116
		LP Interests (EnCap Flatrock Midstream Fund III, L.P.) (Fully diluted 0.2%)		3,458	3,828

				26,311	23,640

Evergreen Skills Lux S.á r.l. (d/b/a Skillsoft)(11)(13)	Technology-based Performance Support Solutions
		LIBOR Plus 8.25% (Floor 1.00%), Current Coupon 9.82%, Secured Debt (Maturity—April 28, 2022)(9)	6,999	6,878	6,244

Extreme Reach, Inc.(11)	Integrated TV and Video Advertising Platform
		LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.95%, Secured Debt (Maturity—February 7, 2020)(9)	10,411	10,397	10,398

Felix Investments Holdings II(10)	Oil & Gas Exploration & Production
		LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.90%, Secured Debt (Maturity—August 9, 2022)(9)	3,333	3,267	3,267

Flavors Holdings Inc.(11)	Global Provider of Flavoring and Sweetening Products
		LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 7.44%, Secured Debt (Maturity—April 3, 2020)(9)	13,076	12,616	12,128

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, ~~2016~~2017

(dollars in thousands)

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

Hojeij Branded Foods, LLC(10)

Multi-Airport, Multi- Concept Restaurant Operator

LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—July 27, 2021)(9)
5,432 5,390 5,432

Hoover Group, Inc.(10)(13)

Provider of Storage Tanks and Related Products to the Energy and Petrochemical Markets

LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.25%, Secured Debt (Maturity—January 28, 2021)(9)
8,546 7,963 7,963

Horizon Global Corporation(11)(13)

Auto Parts Manufacturer

LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—June 30, 2021)(9)
9,375 9,249 9,551

Hostway Corporation(11)

Managed Services and Hosting Provider

LIBOR Plus 6.75% (Floor 1.25%), Current Coupon 8.00%, Secured Debt (Maturity—December 13, 2019)(9)
10,577 10,515 10,028

Hunter Defense Technologies, Inc.(11)

Provider of Military and Commercial Shelters and Systems

LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—August 5, 2019)(9)
9,606 9,120 8,933

Hygea Holdings, Corp.(10)

Provider of Physician Services

LIBOR Plus 9.25%, Current Coupon 10.17%, Secured Debt (Maturity—February 24, 2019)
7,875 7,381 7,615

Warrants (5,990,452 equivalent shares)
369 1,530

7,750 9,145

iEnergizer Limited(11)(13)

Provider of Business Outsourcing Solutions

LIBOR Plus 6.00% (Floor 1.25%), Current Coupon 7.25%, Secured Debt (Maturity—May 1, 2019)(9)
9,918 9,467 9,621

Indivior Finance LLC(11)(13)

Specialty Pharmaceutical Company Treating Opioid Dependence

LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—December 19, 2019)(9)
6,750 6,455 6,809

Portfolio Company(1)(20)	Business Description	Type of Investment(2)(3)(27)


GI KBS Merger Sub LLC(11)	Outsourced Janitorial Services to Retail/Grocery Customers
		LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.48%, Secured Debt (Maturity—October 29, 2021)(9)	6,807	6,733	6,833
		LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.88%, Secured Debt (Maturity—April 29, 2022)(9)	3,915	3,769	3,793

				10,502	10,626

GoWireless Holdings, Inc.(11)	Provider of Wireless Telecommunications Carrier Services
		LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.16%, Secured Debt (Maturity—December 22, 2024)(9)	18,000	17,820	17,865

Grace Hill, LLC(10)	Online Training Tools for the Multi-Family Housing Industry
		Prime Plus 5.25% (Floor 1.00%), Current Coupon 9.75%, Secured Debt (Maturity—August 15, 2019)(9)	1,215	1,208	1,215
		LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.58%, Secured Debt (Maturity—August 15, 2019)(9)	11,407	11,356	11,407

				12,564	12,622

Great Circle Family Foods, LLC(10)	Quick Service Restaurant Franchise
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.34%, Secured Debt (Maturity—October 28, 2019)(9)	7,219	7,187	7,219

Grupo Hima San Pablo, Inc.(11)	Tertiary Care Hospitals
		LIBOR Plus 7.00% (Floor 1.50%), Current Coupon 8.50%, Secured Debt (Maturity—January 31, 2018)(9)	4,750	4,748	3,541
		13.75% Secured Debt (Maturity—July 31, 2018)	2,055	2,040	226

				6,788	3,767

GST Autoleather, Inc.(11)	Automotive Leather Manufacturer
		PRIME Plus 6.50% (Floor 2.25%), Current Coupon 11.00%, Secured Debt (Maturity—April 5, 2018)(9)	7,578	7,500	7,500
		PRIME Plus 6.50% (Floor 2.00%), Current Coupon 11.00%, Secured Debt (Maturity—July 10, 2020)(9)	15,619	15,120	11,813

				22,620	19,313

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, ~~2016~~2017

(dollars in thousands)

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

Industrial Container Services, LLC(10)

Steel Drum Reconditioner

LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 6.75%, Secured Debt (Maturity—December 31, 2018)(9)
8,949 8,932 8,949

Industrial Services Acquisition, LLC(10)

Industrial Cleaning Services

11.25% Current / 0.75% PIK Unsecured Debt (Maturity—December 17, 2022)
4,519 4,433 4,433

Member Units (Industrial Services Investments, LLC) (900,000 units)
900 900

5,333 5,333

Infinity Acquisition Finance Corp.(11)

Application Software for Capital Markets

7.25% Unsecured Debt (Maturity—August 1, 2022)
5,700 5,366 4,802

Inn of the Mountain Gods Resort and Casino(11)

Hotel & Casino Owner & Operator

9.25% Secured Debt (Maturity—November 30, 2020)
6,249 5,924 5,687

Intertain Group Limited(11)(13)

Business-to-Consumer Online Gaming Operator

LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—April 8, 2022)(9)
4,426 4,364 4,465

iPayment, Inc.(11)

Provider of Merchant Acquisition

LIBOR Plus 5.25% (Floor 1.50%), Current Coupon 6.75%, Secured Debt (Maturity—May 8, 2017)(9)
14,918 14,907 14,395

iQor US Inc.(11)

Business Process Outsourcing Services Provider

LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.00%, Secured Debt (Maturity—April 1, 2021)(9)
9,812 9,671 9,413

irth Solutions, LLC

Provider of Damage Prevention Information Technology Services

Member Units (27,893 units)
1,441 1,790

Jackmont Hospitality, Inc.(10)

Franchisee of Casual Dining Restaurants

LIBOR Plus 4.25% (Floor 1.00%), Current Coupon 5.25% / 2.50% PIK, Current Coupon Plus PIK 7.75%, Secured Debt (Maturity—May 26, 2021)(9)
4,445 4,429 4,445

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Consolidated Schedule of Investments (Continued)~~

~~December 31, 2016~~

~~(dollars in thousands)~~

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

Joerns Healthcare, LLC(11)

Manufacturer and Distributor of Health Care Equipment & Supplies

LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.00%, Secured Debt (Maturity—May 9, 2020)(9)
14,655 14,560 13,776

JSS Holdings, Inc.(11)

Aircraft Maintenance Program Provider

LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—August 31, 2021)(9)
12,829 12,562 12,765

Kendra Scott, LLC(11)

Jewelry Retail Stores

LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—July 17, 2020)(9)
5,578 5,536 5,550

Keypoint Government Solutions, Inc.(11)

Provider of Pre-Employment Screening Services

LIBOR Plus 6.50% (Floor 1.25%), Current Coupon 7.75%, Secured Debt (Maturity—November 13, 2017)(9)
5,459 5,443 5,431

LaMi Products, LLC(10)

General Merchandise Distribution

LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—September 16, 2020)(9)
10,735 10,658 10,735

Larchmont Resources, LLC(11)

Oil & Gas Exploration & Production

LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.00%, PIK Secured Debt (Maturity—August 7, 2020)(9)
2,260 2,260 2,209

Member Units (Larchmont Intermediate Holdco, LLC) (2,828 units)
353 1,193

2,613 3,402

LKCM Headwater Investments I, L.P.(12)(13)

Investment Partnership

LP Interests (Fully diluted 2.3%)
2,500 3,627

Logix Acquisition Company, LLC(10)

Competitive Local Exchange Carrier

LIBOR Plus 8.28% (Floor 1.00%), Current Coupon 9.28%, Secured Debt (Maturity—June 24, 2021)(9)
8,593 8,457 8,593

Portfolio Company(1)(20)	Business Description	Type of Investment(2)(3)(27)


Guitar Center, Inc.(11)	Musical Instruments Retailer
		6.5% Secured Debt (Maturity—April 15, 2019)	16,625	16,009	15,378

Hojeij Branded Foods, LLC(10)	Multi-Airport, Multi-Concept Restaurant Operator
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.57%, Secured Debt (Maturity—July 20, 2022)(9)	12,137	12,022	12,137

Hoover Group, Inc.(10)(13)	Provider of Storage Tanks and Related Products to the Energy and Petrochemical Markets
		LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.70%, Secured Debt (Maturity—January 28, 2021)(9)	8,460	7,986	7,783

Hostway Corporation(11)	Managed Services and Hosting Provider
		LIBOR Plus 6.75% (Floor 1.25%), Current Coupon 8.44%, Secured Debt (Maturity—December 13, 2019)(9)	20,150	19,796	19,621
		LIBOR Plus 6.75% (Floor 1.25%), Current Coupon 8.44%, Secured Debt (Maturity—December 13, 2018)(9)	12,406	11,575	11,692

				31,371	31,313

Hunter Defense Technologies, Inc.(11)	Provider of Military and Commercial Shelters and Systems
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.70%, Secured Debt (Maturity—August 5, 2019)(9)	20,224	19,851	19,997

Hydrofarm Holdings LLC(10)	Wholesaler of Horticultural Products
		LIBOR Plus 7.00%, Current Coupon 8.49%, Secured Debt (Maturity—May 12, 2022)	6,708	6,588	6,699

iEnergizer Limited(11)(13)(21)	Provider of Business Outsourcing Solutions
		LIBOR Plus 6.00% (Floor 1.25%), Current Coupon 7.57%, Secured Debt (Maturity—May 1, 2019)(9)	11,005	10,764	10,977

Implus Footcare, LLC(10)	Provider of Footwear and Related Accessories
		LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 8.44%, Secured Debt (Maturity—April 30, 2021)(9)	19,372	19,115	19,243

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, ~~2016~~2017

(dollars in thousands)

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

Looking Glass Investments, LLC(12)(13)

Specialty Consumer Finance

9% Unsecured Debt (Maturity—June 30, 2020)
188 188 188

Member Units (2.5 units)
125 125

Member Units (LGI Predictive Analytics LLC) (190,712 units)(8)
160 160

473 473

Messenger, LLC(10)

Supplier of Specialty Stationery and Related Products to the Funeral Industry

LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.25%, Secured Debt (Maturity—September 9, 2020)(9)
14,403 14,326 14,403

Minute Key, Inc.

Operator of Automated Key Duplication Kiosks

10% Current / 2% PIK Secured Debt (Maturity—September 19, 2019)
15,700 15,404 15,404

Warrants (1,437,409 equivalent units)
280 470

15,684 15,874

Mood Media Corporation(11)(13)

Provider of Electronic Equipment

LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—May 1, 2019)(9)
14,805 14,645 14,312

New Media Holdings II LLC(11)(13)

Local Newspaper Operator

LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.25%, Secured Debt (Maturity—June 4, 2020)(9)
14,888 14,632 14,813

North American Lifting Holdings, Inc.(11)

Crane Service Provider

LIBOR Plus 4.50% (Floor 1.00%), Current Coupon 5.50%, Secured Debt (Maturity—November 27, 2020)(9)
3,865 3,235 3,375

North Atlantic Trading Company, Inc.(11)

Marketer/Distributor of Tobacco Products

LIBOR Plus 6.50% (Floor 1.25%), Current Coupon 7.75%, Secured Debt (Maturity—January 13, 2020)(9)
9,396 9,343 9,337

Novitex Intermediate, LLC(11)

Provider of Document Management Services

LIBOR Plus 6.75% (Floor 1.25%), Current Coupon 8.00%, Secured Debt (Maturity—July 7, 2020)(9)
9,335 9,175 8,985

Portfolio Company(1)(20)	Business Description	Type of Investment(2)(3)(27)


Indivior Finance LLC(11)(13)	Specialty Pharmaceutical Company Treating Opioid Dependence
		LIBOR Plus 4.50% (Floor 1.00%), Current Coupon 5.50%, Secured Debt (Maturity—December 18, 2022)(9)	1,176	1,171	1,182

Industrial Services Acquisition, LLC(10)	Industrial Cleaning Services
		11.25% Current / 0.75% PIK Unsecured Debt (Maturity—December 17, 2022)(19)	4,553	4,478	4,553
		Member Units (Industrial Services Investments, LLC) (900,000 units)		900	810

				5,378	5,363

Inn of the Mountain Gods Resort and Casino(11)	Hotel & Casino Owner & Operator
		9.25% Secured Debt (Maturity—November 30, 2020)	6,249	5,994	5,687

iPayment, Inc.(11)	Provider of Merchant Acquisition
		LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.62%, Secured Debt (Maturity—April 11, 2023)(9)	11,970	11,861	12,090

iQor US Inc.(11)	Business Process Outsourcing Services Provider
		LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.69%, Secured Debt (Maturity—April 1, 2021)(9)	990	983	986

irth Solutions, LLC	Provider of Damage Prevention Information Technology Services
		Member Units (27,893 units)		1,441	1,920

Jacent Strategic Merchandising, LLC(10)	General Merchandise Distribution
		LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.01%, Secured Debt (Maturity—September 16, 2020)(9)	11,110	11,054	11,110

Jackmont Hospitality, Inc.(10)	Franchisee of Casual Dining Restaurants
		LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 8.32%, Secured Debt (Maturity—May 26, 2021)(9)	4,390	4,379	4,390

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, ~~2016~~2017

(dollars in thousands)

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

NTM Acquisition Corp.(11)

Provider of B2B Travel Information Content

LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.25%, Secured Debt (Maturity—June 7, 2022)(9)
4,144 4,085 4,128

Ospemifene Royalty Sub LLC (QuatRx)(10)

Estrogen-Deficiency Drug Manufacturer and Distributor

11.5% Secured Debt (Maturity—November 15, 2026)(14)
5,071 5,071 2,088

Pardus Oil and Gas, LLC(11)

Oil & Gas Exploration & Production

13% PIK Secured Debt (Maturity—November 12, 2021)
1,869 1,869 1,869

5% PIK Secured Debt (Maturity—May 13, 2022)
992 992 562

Member Units (2,472 units)
2,472 970

5,333 3,401

Paris Presents Incorporated(11)

Branded Cosmetic and Bath Accessories

LIBOR Plus 8.75% (Floor 1.00%), Current Coupon 9.75%, Secured Debt (Maturity—December 31, 2021)(9)
2,000 1,969 1,960

Parq Holdings Limited Partnership(11)(13)

Hotel & Casino Operator

LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity—December 17, 2020)(9)
7,500 7,394 7,388

Permian Holdco 2, Inc.(11)

Storage Tank Manufacturer

14% PIK Unsecured Debt (Maturity—October 15, 2021)
198 198 198

Preferred Stock (Permian Holdco 1, Inc.) (154,558 units)
799 799

Common Stock (Permian Holdco 1, Inc.) (154,558 units)
— —

997 997

Pernix Therapeutics Holdings, Inc.(10)

Pharmaceutical Royalty

12% Secured Debt (Maturity—August 1, 2020)
3,447 3,447 3,326

Pet Holdings ULC(11)(13)

Retailer of Pet Products and Supplies to Consumers

LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 6.50%, Secured Debt (Maturity—July 5, 2022)(9)
2,494 2,470 2,503

Portfolio Company(1)(20)	Business Description	Type of Investment(2)(3)(27)


Jacuzzi Brands LLC(11)	Manufacturer of Bath and Spa Products
		LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.69%, Secured Debt (Maturity—June 28, 2023)(9)	3,950	3,876	3,980

Joerns Healthcare, LLC(11)	Manufacturer and Distributor of Health Care Equipment & Supplies
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.48% Secured Debt (Maturity—May 9, 2020)(9)	13,387	13,299	12,472

Keypoint Government Solutions, Inc.(10)	Provider of Pre-Employment Screening Services
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.35%, Secured Debt (Maturity—April 18, 2024)(9)	12,031	11,921	12,031

Larchmont Resources, LLC(11)	Oil & Gas Exploration & Production
		LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.53%, PIK Secured Debt (Maturity—August 7, 2020)(9)(19)	2,418	2,418	2,394
		Member Units (Larchmont Intermediate Holdco, LLC) (2,828 units)		353	976

				2,771	3,370

LKCM Headwater Investments I, L.P.(12)(13)	Investment Partnership
		LP Interests (Fully diluted 2.3%)		2,500	4,234

Logix Acquisition Company, LLC(10)	Competitive Local Exchange Carrier
		LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 7.28%, Secured Debt (Maturity—August 9, 2024)(9)	10,135	9,921	9,921

Looking Glass Investments, LLC(12)(13)	Specialty Consumer Finance
		Member Units (2.5 units)		125	57
		Member Units (LGI Predictive Analytics LLC) (190,712 units)(8)		108	92

				233	149

LSF9 Atlantis Holdings, LLC(11)	Provider of Wireless Telecommunications Carrier Services
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.57%, Secured Debt (Maturity—May 1, 2023)(9)	2,963	2,931	2,978

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, ~~2016~~2017

(dollars in thousands)

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

Pike Corporation(11)

Construction and Maintenance Services for Electric Transmission and Distribution Infrastructure

LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity—June 22, 2022)(9)
14,000 13,720 14,082

Point.360(10)

Fully Integrated Provider of Digital Media Services

Warrants (65,463 equivalent shares)
69 —

Common Stock (163,658 shares)
273 63

342 63

Polycom, Inc.(11)

Provider of Audio and Video Communication Solutions

LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—September 27, 2023)(9)
12,089 11,617 12,194

PPC/SHIFT LLC(10)

Provider of Digital Solutions to Automotive Industry

LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—June 6, 2022)(9)
7,000 6,852 6,852

Prowler Acquisition Corp.(11)

Specialty Distributor to the Energy Sector

LIBOR Plus 4.50% (Floor 1.00%), Current Coupon 5.50%, Secured Debt (Maturity—January 28, 2020)(9)
9,519 7,904 7,044

PT Network, LLC(10)

Provider of Outpatient Physical Therapy and Sports Medicine Services

LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—November 30, 2021)(9)
16,225 15,979 15,979

QBS Parent, Inc.(11)

Provider of Software and Services to the Oil & Gas Industry

LIBOR Plus 4.75% (Floor 1.00%), Current Coupon 5.75%, Secured Debt (Maturity—August 7, 2021)(9)
11,274 11,201 11,161

Raley's(11)

Family-Owned Supermarket Chain

LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.25%, Secured Debt (Maturity—May 18, 2022)(9)
4,195 4,125 4,242

Portfolio Company(1)(20)	Business Description	Type of Investment(2)(3)(27)


Lulu's Fashion Lounge, LLC(10)	Fast Fashion E-Commerce Retailer
		LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.57%, Secured Debt (Maturity—August 28, 2022)(9)	13,381	12,993	13,531

Messenger, LLC(10)	Supplier of Specialty Stationery and Related Products to the Funeral Industry
		LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.74%, Secured Debt (Maturity—September 9, 2020)(9)	17,331	17,249	17,331

Minute Key, Inc.	Operator of Automated Key Duplication Kiosks
		Warrants (1,437,409 equivalent shares; Expiration—May 20, 2025; Strike price—$0.01 per share)		280	1,170

NBG Acquisition Inc(11)	Wholesaler of Home Décor Products
		LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 7.19%, Secured Debt (Maturity—April 26, 2024)(9)	4,402	4,336	4,452

New Media Holdings II LLC(11)(13)	Local Newspaper Operator
		LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.82%, Secured Debt (Maturity—July 14, 2022)(9)	17,715	17,342	17,864

NNE Partners, LLC(10)	Oil & Gas Exploration & Production
		LIBOR Plus 8.00%, Current Coupon 9.49%, Secured Debt (Maturity—March 2, 2022)	11,958	11,854	11,854

North American Lifting Holdings, Inc.(11)	Crane Service Provider
		LIBOR Plus 4.50% (Floor 1.00%), Current Coupon 6.19%, Secured Debt (Maturity—November 27, 2020)(9)	7,745	6,913	7,256

Novetta Solutions, LLC(11)	Provider of Advanced Analytics Solutions for Defense Agencies
		LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.70%, Secured Debt (Maturity—October 17, 2022)(9)	14,636	14,189	14,239

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, ~~2016~~2017

(dollars in thousands)

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

Redbox Automated Retail, LLC(11)

Operator of Home Media Entertainment Kiosks

LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity—September 27, 2021)(9)
15,000 14,581 14,629

Renaissance Learning, Inc.(11)

Technology-based K-12 Learning Solutions

LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.00%, Secured Debt (Maturity—April 11, 2022)(9)
3,000 2,978 2,987

RGL Reservoir Operations Inc.(11)(13)

Oil & Gas Equipment and Services

LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.00%, Secured Debt (Maturity—August 13, 2021)(9)
3,910 3,826 880

RM Bidder, LLC(10)

Scripted and Unscripted TV and Digital Programming Provider

Warrants (327,532 equivalent units)
425 300

Member Units (2,779 units)
46 44

471 344

SAExploration, Inc.(10)(13)

Geophysical Services Provider

Common Stock (50 shares)
65 3

SAFETY Investment Holdings, LLC

Provider of Intelligent Driver Record Monitoring Software and Services

Member Units (2,000,000 units)
2,000 2,000

Salient Partners L.P.(11)

Provider of Asset Management Services

LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity—June 9, 2021)(9)
10,812 10,538 10,352

School Specialty, Inc.(11)

Distributor of Education Supplies and Furniture

LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity—June 11, 2019)(9)
5,712 5,632 5,784

Sigma Electric Manufacturing Corporation(10)(13)

Manufacturer and Distributor of Electrical Fittings and Parts

LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.25%, Secured Debt (Maturity—October 13, 2021)(9)
12,500 12,200 12,200

Portfolio Company(1)(20)	Business Description	Type of Investment(2)(3)(27)


NTM Acquisition Corp.(11)	Provider of B2B Travel Information Content
		LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.94%, Secured Debt (Maturity—June 7, 2022)(9)	6,186	6,126	6,155

Ospemifene Royalty Sub LLC (QuatRx)(10)	Estrogen-Deficiency Drug Manufacturer and Distributor
		11.5% Secured Debt (Maturity—November 15, 2026)(14)	5,071	5,071	1,198

P.F. Chang's China Bistro, Inc.(11)	Casual Restaurant Group
		LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.51%, Secured Debt (Maturity—September 1, 2022)(9)	4,988	4,846	4,715

Paris Presents Incorporated(11)	Branded Cosmetic and Bath Accessories
		LIBOR Plus 8.75% (Floor 1.00%), Current Coupon 10.32%, Secured Debt (Maturity—December 31, 2021)(9)	4,500	4,471	4,477

Parq Holdings Limited Partnership(11)(13)(21)	Hotel & Casino Operator
		LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 9.19%, Secured Debt (Maturity—December 17, 2020)(9)	7,481	7,399	7,528

Permian Holdco 2, Inc.(11)	Storage Tank Manufacturer
		14% PIK Unsecured Debt (Maturity—October 15, 2021)(19)	306	306	306
		Preferred Stock (Permian Holdco 1, Inc.) (154,558 units)		799	980
		Common Stock (Permian Holdco 1, Inc.) (154,558 units)		—	140

				1,105	1,426

Pernix Therapeutics Holdings, Inc.(10)	Pharmaceutical Royalty
		12% Secured Debt (Maturity—August 1, 2020)	3,129	3,129	1,971

Point.360(10)	Fully Integrated Provider of Digital Media Services
		Warrants (65,463 equivalent shares; Expiration—July 7, 2020; Strike price—$0.75 per share)		69	—
		Common Stock (163,658 shares)		273	11

				342	11

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, ~~2016~~2017

(dollars in thousands)

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

Sorenson Communications, Inc.(11)

Manufacturer of Communication Products for Hearing Impaired

LIBOR Plus 5.75% (Floor 2.25%), Current Coupon 8.00%, Secured Debt (Maturity—April 30, 2020)(9)
13,371 13,283 13,271

Strike, LLC(11)

Pipeline Construction and Maintenance Services

LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.00%, Secured Debt (Maturity—November 30, 2022)(9)
10,000 9,666 9,864

Subsea Global Solutions, LLC(10)

Underwater Maintenance and Repair Services

LIBOR Plus 6.00% (Floor 1.50%), Current Coupon 7.50%, Secured Debt (Maturity—March 17, 2020)(9)
5,629 5,588 5,624

Synagro Infrastructure Company, Inc(11)

Waste Management Services

LIBOR Plus 5.25% (Floor 1.00%), Current Coupon 6.25%, Secured Debt (Maturity—August 22, 2020)(9)
4,714 4,659 4,136

Targus International, LLC(11)

Distributor of Protective Cases for Mobile Devices

15% PIK Secured Debt (Maturity—December 31, 2019)
1,140 1,140 1,140

Common Stock (Targus Cayman HoldCo Limited) (249,614 shares)(13)
2,555 2,260

3,695 3,400

TE Holdings, LLC(11)

Oil & Gas Exploration & Production

Member Units (97,048 units)
970 728

TeleGuam Holdings, LLC(11)

Cable and Telecom Services Provider

LIBOR Plus 4.00% (Floor 1.25%), Current Coupon 5.25%, Secured Debt (Maturity—December 10, 2018)(9)
7,622 7,613 7,546

LIBOR Plus 7.50% (Floor 1.25%), Current Coupon 8.75%, Secured Debt (Maturity—June 10, 2019)(9)
10,500 10,442 10,290

18,055 17,836

The Topps Company, Inc.(11)

Trading Cards & Confectionary

LIBOR Plus 6.00% (Floor 1.25%), Current Coupon 7.25%, Secured Debt (Maturity—October 2, 2020)(9)
2,218 2,208 2,226

Portfolio Company(1)(20)	Business Description	Type of Investment(2)(3)(27)


PPC/SHIFT LLC(10)	Provider of Digital Solutions to Automotive Industry
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.69%, Secured Debt (Maturity—December 22, 2021)(9)	6,869	6,748	6,869

Prowler Acquisition Corp.(11)	Specialty Distributor to the Energy Sector
		LIBOR Plus 4.50% (Floor 1.00%), Current Coupon 6.19%, Secured Debt (Maturity—January 28, 2020)(9)	12,830	11,332	12,253

PT Network, LLC(10)	Provider of Outpatient Physical Therapy and Sports Medicine Services
		LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 6.86%, Secured Debt (Maturity—November 30, 2021)(9)	8,553	8,553	8,553

QBS Parent, Inc.(11)	Provider of Software and Services to the Oil & Gas Industry
		LIBOR Plus 4.75% (Floor 1.00%), Current Coupon 6.13%, Secured Debt (Maturity—August 7, 2021)(9)	14,272	14,114	14,165

Research Now Group, Inc. and Survey Sampling International, LLC(11)	Provider of Outsourced Online Surveying
		LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 7.13%, Secured Debt (Maturity—December 20, 2024)(9)	13,500	12,826	12,826

Resolute Industrial, LLC(10)	HVAC Equipment Rental and Remanufacturing
		LIBOR Plus 7.62% (Floor 1.00%), Current Coupon 8.95%, Secured Debt (Maturity—July 26, 2022)(9)(25)	17,088	16,770	16,770
		Member Units (601 units)		750	750

				17,520	17,520

RGL Reservoir Operations Inc.(11)(13)(21)	Oil & Gas Equipment and Services
		1% Current / 9% PIK Secured Debt (Maturity—December 21, 2024)(19)	721	407	407

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, ~~2016~~2017

(dollars in thousands)

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

TMC Merger Sub Corp.(11)

Refractory & Maintenance Services Provider

LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.25%, Secured Debt (Maturity—October 31, 2022)(9)
12,500 12,376 12,438

TOMS Shoes, LLC(11)

Global Designer, Distributor, and Retailer of Casual Footwear

LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 6.50%, Secured Debt (Maturity—October 30, 2020)(9)
4,913 4,567 3,635

Travel Leaders Group, LLC(11)

Travel Agency Network Provider

LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—December 7, 2020)(9)
10,994 10,936 10,975

Truck Bodies and Equipment International, Inc.(10)

Manufacturer of Dump Truck Bodies and Dump Trailers

LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity—March 31, 2021)(9)
15,750 15,602 15,602

TVG-I-E CMN ACQUISITION, LLC(10)

Organic Lead Generation for Online Postsecondary Schools

LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—November 3, 2021)(9)
6,459 6,334 6,334

Tweddle Group, Inc.(11)

Provider of Technical Information Services to Automotive OEMs

LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—October 21, 2022)(9)
8,462 8,295 8,419

UniRush, LLC

Provider of Prepaid Debit Card Solutions

12% Secured Debt (Maturity—February 1, 2019)
12,000 10,981 12,000

Warrants (444,725 equivalent units)
1,250 1,250

12,231 13,250

US Joiner Holding Company(11)

Marine Interior Design and Installation

LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—April 16, 2020)(9)
11,514 11,435 11,456

Portfolio Company(1)(20)	Business Description	Type of Investment(2)(3)(27)


RM Bidder, LLC(10)	Scripted and Unscripted TV and Digital Programming Provider
		Warrants (327,532 equivalent units; Expiration—October 20, 2025; Strike price—$14.28 per unit)		425	—
		Member Units (2,779 units)		46	20

				471	20

SAFETY Investment Holdings, LLC	Provider of Intelligent Driver Record Monitoring Software and Services
		Member Units (2,000,000 units)		2,000	1,670

Salient Partners L.P.(11)	Provider of Asset Management Services
		LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.85%, Secured Debt (Maturity—June 9, 2021)(9)	10,081	9,870	9,778

SiTV, LLC(11)	Cable Networks Operator
		10.375% Secured Debt (Maturity—July 1, 2019)	10,429	7,006	7,040

SMART Modular Technologies, Inc.(10)(13)	Provider of Specialty Memory Solutions
		LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.66%, Secured Debt (Maturity—August 9, 2022)(9)	14,625	14,351	14,552

Sorenson Communications, Inc.(11)	Manufacturer of Communication Products for Hearing Impaired
		LIBOR Plus 5.75% (Floor 2.25%), Current Coupon 8.00%, Secured Debt (Maturity—April 30, 2020)(9)	13,234	13,170	13,341

Staples Canada ULC(10)(13)(21)	Office Supplies Retailer
		LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.43%, Secured Debt (Maturity—September 12, 2023)(9)(22)	20,000	19,617	18,891

Strike, LLC(11)	Pipeline Construction and Maintenance Services
		LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity—November 30, 2022)(9)	9,500	9,250	9,643
		LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.45%, Secured Debt (Maturity—May 30, 2019)(9)	2,500	2,479	2,513

				11,729	12,156

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, ~~2016~~2017

(dollars in thousands)

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

U.S. TelePacific Corp.(10)

Provider of Communications and Managed Services

LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity—February 24, 2021)(9)
7,500 7,377 7,377

VCVH Holding Corp. (Verisk)(11)

Healthcare Technology Services Focused on Revenue Maximization

LIBOR Plus 9.25% (Floor 1.00%), Current Coupon 10.25%, Secured Debt (Maturity—June 1, 2024)(9)
1,500 1,464 1,488

Virtex Enterprises, LP(10)

Specialty, Full-Service Provider of Complex Electronic Manufacturing Services

12% Secured Debt (Maturity—December 27, 2018)
1,667 1,559 1,559

Preferred Class A Units (14 units; 5% cumulative)(8)
333 612

Warrants (11 equivalent units)
186 220

2,078 2,391

Wellnext, LLC(10)

Manufacturer of Supplements and Vitamins

LIBOR Plus 9.00% (Floor 0.50%), Current Coupon 9.85%, Secured Debt (Maturity—May 23, 2021)(9)
10,058 9,968 10,058

Western Dental Services, Inc.(11)

Dental Care Services

LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—November 1, 2018)(9)
4,904 4,902 4,885

Wilton Brands LLC(11)

Specialty Housewares Retailer

LIBOR Plus 7.25% (Floor 1.25%), Current Coupon 8.50%, Secured Debt (Maturity—August 30, 2018)(9)
1,153 1,147 1,093

Worley Claims Services, LLC(10)

Insurance Adjustment Management and Services Provider

LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.00%, Secured Debt (Maturity—October 31, 2020)(9)
6,386 6,342 6,386

YP Holdings LLC(11)

Online and Offline Advertising Operator

LIBOR Plus 11.00% (Floor 1.25%), Current Coupon 12.25%, Secured Debt (Maturity—June 4, 2018)(9)
11,428 10,969 11,398

Portfolio Company(1)(20)	Business Description	Type of Investment(2)(3)(27)


Subsea Global Solutions, LLC(10)	Underwater Maintenance and Repair Services
		LIBOR Plus 6.00% (Floor 1.50%), Current Coupon 7.50%, Secured Debt (Maturity—March 17, 2020)(9)	7,687	7,637	7,687

Synagro Infrastructure Company, Inc(11)	Waste Management Services
		LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 7.19%, Secured Debt (Maturity—August 22, 2020)(9)	9,161	8,933	8,608

Tectonic Holdings, LLC	Financial Services Organization
		Member Units (200,000 units)(8)		2,000	2,320

TE Holdings, LLC(11)	Oil & Gas Exploration & Production
		Member Units (97,048 units)		970	158

TeleGuam Holdings, LLC(11)	Cable and Telecom Services Provider
		LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.07%, Secured Debt (Maturity—April 12, 2024)(9)	7,750	7,602	7,808

TGP Holdings III LLC(11)	Outdoor Cooking & Accessories
		LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.69%, Secured Debt (Maturity—September 25, 2024)(9)	6,898	6,820	6,969
		LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.19%, Secured Debt (Maturity—September 25, 2025)(9)	5,000	4,927	5,075

				11,747	12,044

The Container Store, Inc.(11)	Operator of Stores Offering Storage and Organizational Products
		LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.69%, Secured Debt (Maturity—August 15, 2021)(9)	9,938	9,660	9,652

TMC Merger Sub Corp.(11)	Refractory & Maintenance Services Provider
		LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.88%, Secured Debt (Maturity—October 31, 2022)(9)(26)	17,653	17,516	17,741

TOMS Shoes, LLC(11)	Global Designer, Distributor, and Retailer of Casual Footwear
		LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 6.98%, Secured Debt (Maturity—October 30, 2020)(9)	4,875	4,610	2,901

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, ~~2016~~2017

(dollars in thousands)

Portfolio Company(1)(20)	Business Description	Type of Investment(2)(3)(27)


Turning Point Brands, Inc.(10)(13)	Marketer/Distributor of Tobacco Products
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.61%, Secured Debt (Maturity—May 17, 2022)(9)(25)	8,436	8,364	8,605

TVG-I-E CMN ACQUISITION, LLC(10)	Organic Lead Generation for Online Postsecondary Schools
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.56%, Secured Debt (Maturity—November 3, 2021)(9)	8,170	8,031	8,170

Tweddle Group, Inc.(11)	Provider of Technical Information Services to Automotive OEMs
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.38%, Secured Debt (Maturity—October 21, 2022)(9)	6,114	6,011	6,023

U.S. TelePacific Corp.(11)	Provider of Communications and Managed Services
		LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.69%, Secured Debt (Maturity—May 2, 2023)(9)	20,703	20,507	19,862

US Joiner Holding Company(11)	Marine Interior Design and Installation
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.70%, Secured Debt (Maturity—April 16, 2020)(9)	13,465	13,366	13,398

VIP Cinema Holdings, Inc.(11)	Supplier of Luxury Seating to the Cinema Industry
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.70%, Secured Debt (Maturity—March 1, 2023)(9)	7,700	7,666	7,777

Vistar Media, Inc.(10)	Operator of Digital Out-of-Home Advertising Platform
		LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 11.69%, Secured Debt (Maturity—February 16, 2022)(9)	3,319	3,048	3,102
		Warrants (70,207 equivalent shares; Expiration—February 17, 2027; Strike price—$0.01 per share)		331	499

				3,379	3,601

Wellnext, LLC(10)	Manufacturer of Supplements and Vitamins
		LIBOR Plus 10.10% (Floor 1.00%), Current Coupon 11.67%, Secured Debt (Maturity—July 21, 2022)(9)(23)	9,930	9,857	9,930

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, 2017

(dollars in thousands)

Portfolio Company(1)
Business Description
Type of Investment(2)(3)
Principal(4)
Cost(4)
Fair Value

Zilliant Incorporated

Price Optimization and Margin Management Solutions

Preferred Stock (186,777 shares)
154 260

Warrants (952,500 equivalent shares)
1,071 1,190

1,225 1,450

Subtotal Non-Control/Non-Affiliate Investments (51.4% of total investments at fair value)
$ 1,037,510 $ 1,026,676

Total Portfolio Investments, December 31, 2016
$ 1,871,883 $ 1,996,906

Portfolio Company(1)(20)	Business Description	Type of Investment(2)(3)(27)		Cost(4)		Fair Value(18)


Wireless Vision Holdings, LLC(10)	Provider of Wireless Telecommunications Carrier Services
		LIBOR Plus 8.91% (Floor 1.00%), Current Coupon 10.27%, Secured Debt (Maturity—September 29, 2022)(9)(24)	12,932		12,654		12,654

Wirepath LLC(11)	E-Commerce Provider into Connected Home Market
		LIBOR Plus 5.25% (Floor 1.00%), Current Coupon 6.87%, Secured Debt (Maturity—August 5, 2024)(9)	4,988		4,964		5,055

Zilliant Incorporated	Price Optimization and Margin Management Solutions
		Preferred Stock (186,777 shares)			154		260
		Warrants (952,500 equivalent shares; Expiration—June 15, 2022; Strike price—$0.001 per share)			1,071		1,189

					1,225		1,449

Subtotal Non-Control/Non-Affiliate Investments (49.8% of total investments at fair value)				$	1,107,447	$	1,081,745

Total Portfolio Investments, December 31, 2017				$	2,004,798	$	2,171,305

(1): All investments are Lower Middle Market portfolio investments, unless otherwise noted. See Note B 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 Credit Agreement or in support of the SBA-guaranteed debentures issued by the Funds.
(2): Debt investments are income producing, unless otherwise noted. Equity and warrants are non-income producing, unless otherwise noted.
(3): See Note C for a summary of geographic location of portfolio companies.
(4): Principal is net of repayments. Cost is net of repayments and accumulated unearned income.
(5): Control investments are defined by the Investment Company Act of 1940, as amended ("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% 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. 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 or an alternate Base Rate (commonly based on the Federal Funds Rate or the Prime Rate), which typically resets semi-annually, quarterly, or monthly at the borrower's option. The borrower may also elect to have multiple interest reset periods for each loan. For each such loan, the Company has provided the weighted average annual stated interest rate in effect at December 31, ~~2016.~~2017. As noted in this schedule, ~~64%~~67% of the loans (based on the par ~~amount of the loans) of the loans~~amount) contain LIBOR floors which range between 0.50% and 2.25%, with a weighted-average LIBOR floor of approximately ~~1.04%~~1.02%.
(10): Private Loan portfolio investment. See Note B for a description of Private Loan portfolio investments.
(11): Middle Market portfolio investment. See Note B for a description of Middle Market portfolio investments.
(12): Other Portfolio investment. See Note B 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 investment.

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, 2017

(dollars in thousands)

(15): Portfolio company is in a bankruptcy process and, as such, the maturity date of our debt investments in this portfolio company will not be finally determined until such process is complete. As noted in footnote (14), our debt investments in this portfolio company are on non-accrual status.
(16): External Investment Manager. Investment is not encumbered as security for the Company's Credit Agreement 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 for further discussion.
(19): PIK interest income and cumulative dividend income represent income not paid currently in cash.
(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 to help mitigate any potential adverse change in foreign exchange rates during the term of the Company's investment, the Company entered into a forward foreign currency contract with Cadence Bank to lend $24.2 million Canadian Dollars and receive $20.0 million U.S. Dollars with a settlement date of September 12, 2018. The unrealized appreciation on the forward foreign currency contract is $0.7 million as of December 31, 2017. This unrealized appreciation is offset by the foreign currency translation depreciation on the investment.
(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 LIBOR plus 7.50% (Floor 1.00%) per the Credit Agreement and the Consolidated Schedule of Investments above reflects such higher rate.
(24): 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 LIBOR plus 8.50% (Floor 1.00%) per the Credit Agreement and the Consolidated Schedule of Investments above reflects such higher rate.
(25): As part of the credit agreement with the portfolio company, the Company is entitled to the "last out" tranche of the first lien secured loans, whereby the "first out" tranche receives priority over the "last out" tranche with respect to payments of principal, interest, and any other amounts due thereunder. The rate the Company receives per the Credit Agreement is the same as the rate reflected in the Consolidated Schedule of Investments above.
(26): The Company has entered into an intercreditor agreement that entitles the Company to the "first 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 lower interest rate than the contractual stated interest rate of LIBOR plus 6.64% (Floor 1.00%) per the Credit Agreement and the Consolidated Schedule of Investments above reflects such lower rate.
(27): All Company's portfolio investments are generally subject to restrictions on resale as "restricted securities", unless otherwise noted.

Table of Contents

MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements

(Unaudited)

NOTE A—ORGANIZATION AND BASIS OF PRESENTATION

1. Organization

Main Street Capital Corporation ("MSCC") 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. The portfolio investments of MSCC and its consolidated subsidiaries are typically made to support management buyouts, recapitalizations, growth financings, refinancings and acquisitions of companies that operate in a variety of industry sectors. MSCC seeks to partner with entrepreneurs, business owners and management teams and generally provides "one stop" financing alternatives within its LMM portfolio. MSCC and its consolidated subsidiaries invest 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"). MSCC wholly owns several investment funds, including Main Street Mezzanine Fund, LP ("MSMF"), Main Street Capital II, LP ("MSC II") and Main Street Capital III, LP ("MSC III" and, collectively with MSMF and MSC II, 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"). 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.

MSC Adviser I, LLC (the "External Investment Manager") was formed in November 2013 as a wholly owned subsidiary of MSCC to provide investment management and other services to parties other than MSCC and its subsidiaries or their portfolio companies ("External Parties") and ~~receive~~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 MSCC and is not included as a consolidated subsidiary of MSCC in MSCC'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 will 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. The External Investment Manager is also a direct wholly owned subsidiary that has elected to be a taxable entity. The Taxable Subsidiaries and the External Investment Manager are each taxed at their normal corporate tax rates based on their taxable income.

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Notes to Consolidated Financial Statements (Continued)~~

~~(Unaudited)~~

~~NOTE A—ORGANIZATION AND BASIS OF PRESENTATION (Continued)~~

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 and the Taxable Subsidiaries.

Table of Contents

MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements (Continued)

(Unaudited)

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 Portfolio, as used herein, refers to all of Main Street's investments in LMM portfolio companies, investments in Middle Market portfolio companies, Private Loan portfolio investments, Other Portfolio investments and the investment in the External Investment Manager (see Note C—Fair Value Hierarchy for Investments and Debentures—Portfolio Composition—Investment Portfolio Composition for additional discussion of Main Street's Investment Portfolio and definitions for the terms Private Loan and Other Portfolio). Main Street's results of operations and cash flows for the three months ended March 31, ~~2017~~2018 and ~~2016,~~2017, and financial position as of March 31, ~~2017~~2018 and December 31, ~~2016,~~2017, are presented on a consolidated basis. The effects of all intercompany transactions between Main Street and its consolidated subsidiaries have been eliminated in consolidation. Certain reclassifications have been made to prior period balances to conform with the current presentation.

The accompanying unaudited consolidated financial statements of Main Street are presented in conformity with U.S. GAAP for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain disclosures accompanying annual financial statements prepared in accordance with U.S. GAAP are omitted. In the opinion of management, the unaudited consolidated financial results included herein contain all adjustments, consisting solely of normal recurring accruals, considered necessary for the fair presentation of financial statements for the interim periods included herein. The results of operations for the three months ended March 31, ~~2017~~2018 and ~~2016~~2017 are not necessarily indicative of the operating results to be expected for the full year. Also, the unaudited financial statements and notes should be read in conjunction with the audited financial statements and notes thereto for the year ended December 31, ~~2016.~~2017. Financial statements prepared on a U.S. GAAP basis require management to make estimates and assumptions that affect the amounts and disclosures reported in the financial statements and accompanying notes. Such estimates and assumptions could change in the future as more information becomes known, which could impact the amounts reported and disclosed herein.

Under regulations pursuant to Article 6 of Regulation S-X applicable to BDCs and ~~the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC")~~ASC 946,~~Financial Services—Investment Companies~~ ~~("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 or to its portfolio companies. Accordingly, as noted above, MSCC's consolidated financial statements include the financial position and operating results for the Funds and the Taxable Subsidiaries. Main Street has determined that all of its portfolio investments do not qualify for this exception, including the investment in the External Investment

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~~NOTE A—ORGANIZATION AND BASIS OF PRESENTATION (Continued)~~

Manager. Therefore, Main Street's Investment Portfolio is carried on the consolidated balance sheet at fair value, as discussed further in Note B, with any adjustments to fair value recognized as "Net ~~Change in~~ Unrealized Appreciation (Depreciation)" on the consolidated statements of operations until the investment is realized, usually upon exit, resulting in any gain or loss being recognized as a "Net Realized Gain (Loss)."

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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% 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.

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 more liquid debt securities issued by Middle Market companies that are generally larger in size than the 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 which have been originated through strategic relationships with other investment funds on a collaborative basis, and are often referred to in the debt markets as "club deals." Private Loan investments are typically similar in size, structure, terms and conditions to investments Main Street holds in its LMM portfolio and Middle Market portfolio. Main Street's portfolio also includes Other Portfolio investments which primarily consist of investments that are not consistent with the typical profiles for its LMM portfolio investments, Middle Market portfolio investments or Private Loan portfolio investments, including investments which may be managed by third parties. 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 Middle Market securities generally have established markets that are not active. Private Loan investments may include investments which have no established trading market or have established

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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 and a 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

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investments and an income approach using a yield-to-maturity model ("Yield-to-Maturity") for its LMM debt investments. For Middle Market portfolio investments, 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 Middle Market and Private Loan 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 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 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, ~~private~~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

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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 its determination. In addition, projecting future financial results requires significant judgment regarding future growth assumptions. In evaluating the operating results, 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

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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 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

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~~NOTE B—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)~~

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 nationally recognized independent financial advisory services firm analyzes and provides observations, recommendations and an assurance certification regarding the Company's determinations of the fair value of its LMM portfolio company investments. The nationally recognized independent financial advisory services 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 nationally recognized independent

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financial advisory services 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 its independent financial advisory services firm in arriving at Main Street's determination of fair value on its investments in a total of 13 LMM portfolio companies for the three months ended March 31, 2018, representing approximately 17% of the total LMM portfolio at fair value as of March 31, 2018, and on a total of 12 LMM portfolio companies for the three months ended March 31, 2017, representing approximately 16% of the total LMM portfolio at fair value as of March 31, ~~2017, and on a total of 11 LMM portfolio companies for the three months ended March 31, 2016, representing approximately 18% of the total LMM portfolio at fair value as of March 31, 2016.~~2017. Excluding its investments in new LMM portfolio companies which have not been in the Investment Portfolio for at least twelve months subsequent to the initial investment decision as of March 31, ~~2017~~2018 and ~~2016,~~2017, as applicable, and its investments in the LMM portfolio companies that were not reviewed because their equity is publicly traded, which represented one LMM portfolio company as of March 31, 2017, or they hold real estate for which a third-party appraisal is obtained on at least an annual basis, the percentage of the LMM portfolio reviewed and certified by its independent financial advisory services firm for the three months ended March 31, 2018 and 2017 was 20% and ~~2016 was~~ 18% ~~and 19%~~ of the total LMM portfolio at fair value as of March 31, ~~2017~~2018 and ~~2016,~~2017, respectively.

For valuation purposes, all of Main Street's Middle Market 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. 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. Because the vast majority of the Middle Market portfolio investments are typically valued using third-party quotes or other independent pricing services (including 95% ~~and 94%~~ of the Middle Market portfolio investments as of both March 31, ~~2017~~2018 and December 31, ~~2016, respectively)~~2017), Main Street does not generally consult with any financial advisory services firms in connection with determining the fair value of its Middle Market investments.

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~~NOTE B—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)~~

For valuation purposes, all 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 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 a nationally recognized independent financial advisory services firm. The nationally recognized independent financial advisory services firm analyzes and provides observations and recommendations and an assurance certification regarding the Company's determinations of the fair value of its Private Loan portfolio company investments. The nationally recognized independent financial advisory services 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

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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 nationally recognized independent financial advisory services 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 its independent financial advisory services firm in arriving at its determination of fair value on its investments in a total of 9six Private Loan portfolio companies for the three months ended March 31, 2018, representing approximately 16% of the total Private Loan portfolio at fair value as of March 31, 2018, and on a total of nine Private Loan portfolio companies for the three months ended March 31, 2017, representing approximately 27% of the total Private Loan portfolio at fair value as of March 31, 2017, and on a total of 10 Private Loan portfolio companies for the three months ended March 31, 2016, representing approximately 36% of the total Private Loan portfolio at fair value as of March 31, 2016.2017. Excluding its investments in new Private Loan portfolio companies which have not been in the Investment Portfolio for at least twelve months subsequent to the initial investment decision as of March 31, ~~2017~~2018 and ~~2016,~~2017, as applicable, and its investments in its Private Loan portfolio companies that were not reviewed because the investment is valued based upon third-party quotes or other independent pricing, the percentage of the Private Loan portfolio reviewed and certified by its independent financial advisory services firm for the three months ended March 31, 2018 and 2017 was 27% and ~~2016 was~~ 44% ~~and 51%~~ of the total Private Loan portfolio at fair value as of March 31, ~~2017~~2018 and ~~2016,~~2017, respectively.

For valuation purposes, all of Main Street's Other Portfolio investments are non-control investments. Main Street's Other Portfolio investments comprised ~~5.4%~~4.4% and ~~5.0%, respectively,~~4.8% of Main Street's Investment Portfolio at fair value as of March 31, ~~2017~~2018 and December 31, ~~2016.~~2017, 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 ~~its~~these investments using the NAV valuation method. For its Other Portfolio debt 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 Other Portfolio debt investments in a current

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~~NOTE B—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)~~

hypothetical sale using the Yield-to-Maturity valuation method. For its Other Portfolio debt investments for which third-party quotes or other independent pricing are available and appropriate, Main Street determines the fair value of these investments through obtaining third-party quotes or other independent pricing to the extent that these inputs are available and appropriate to determine fair value.

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. This valuation approach estimates the 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.

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

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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 portfolio companies. This system takes into account both quantitative and qualitative factors of the LMM portfolio company and the investments held therein.

The Board of Directors of Main Street has the final responsibility for overseeing, reviewing and approving, in good faith, Main Street's determination of the fair value for its Investment Portfolio, as well as its valuation procedures, consistent with 1940 Act requirements. Main Street believes its Investment Portfolio as of March 31, ~~2017~~2018 and December 31, ~~2016~~2017 approximates fair value as of those dates based on the markets in which Main Street 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., the consolidated financial statements include investments in the Investment Portfolio whose values have been estimated by Main Street with the oversight, review and approval 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,

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those estimated values may differ materially from the values that would have been determined had a ready market for the securities existed.

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 March 31, ~~2017,~~2018, cash balances totaling ~~$29.9~~$25.1 million exceeded Federal Deposit Insurance Corporation insurance protection levels, subjecting the Company to risk related to the uninsured balance. All of the Company's cash deposits are held at large established high credit quality financial institutions and management believes that the risk of loss associated with any uninsured balances is remote.

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 as dividends are declared by the portfolio company or at the point an obligation exists for the portfolio company to make a distribution. In accordance with Main Street's valuation policies, Main Street evaluates accrued interest and dividend

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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 all of its debt or other obligations, 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 or other obligations, or if a loan or debt security is sold or written off, Main Street removes it from non-accrual status.

As of March 31, 2018, Main Street's total Investment Portfolio had six investments on non-accrual status, which comprised approximately 0.8% of its fair value and 3.3% of its cost. As of December 31, 2017, Main Street's total Investment Portfolio had five investments on non-accrual status, which comprised approximately 0.2% of its fair value and ~~2.7% of its cost. As of December 31, 2016, Main Street's total Investment Portfolio had four investments on non-accrual status, which comprised approximately 0.6% of its fair value and 3.0%~~2.3% of its 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.8.~~B.9. 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

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~~NOTE B—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)~~

arrears are no longer collectible. For the three months ended March 31, ~~2017~~2018 and ~~2016,~~2017, (i) approximately ~~3.4%~~1.0% and ~~3.1%~~3.4%, respectively, of Main Street's total investment income was attributable to PIK interest income not paid currently in cash and (ii) approximately ~~1.8%~~1.0% and ~~0.8%~~1.8%, 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 deferred and accreted into income over the life of the financing.

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A presentation of the investment income Main Street received from its Investment Portfolio in each of the periods presented is as follows:

	Three Months Ended March 31,				Three Months Ended March 31,

	2017		2016		2018		2017
	(dollars in thousands)				(dollars in thousands)
Interest, fee and dividend income:
Interest income	$	38,463	$	32,182	$	39,612	$	38,463
Dividend income		6,982		7,629		13,831		6,982
Fee income		2,444		2,064		2,499		2,444

Total interest, fee and dividend income	$	47,889	$	41,875	$	55,942	$	47,889

5. Deferred Financing Costs

Deferred financing costs include SBIC debenture commitment fees and SBIC debenture leverage fees on the SBIC debentures which are not accounted for under the fair value option under ASC 825 (as discussed further in Note B.10.). These fees are approximately 3.4% of the total commitment and draw amounts, as applicable. These deferred financing costs have been capitalized and are being amortized into interest expense over the ten year term of each debenture agreement.

~~Deferred financing costs also~~ include commitment fees and other costs related to Main Street's multi-year revolving credit facility (the "Credit Facility", as discussed further in Note F) and its notes (as discussed further in Note G)~~. These costs have been capitalized~~, as well as the commitment fees and ~~are amortized into interest expense over the term~~leverage fees (approximately 3.4% of the ~~individual instrument.~~total commitment and draw amounts, as applicable) on the SBIC debentures (as discussed further in Note E) which are not accounted for under the fair value option under ASC 825 (as discussed further in Note B.11.). Deferred financing costs in connection with the Credit Facility are capitalized as an asset. Deferred financing costs in connection with all other debt arrangements not using the fair value option are a direct deduction from the related debt liability.

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 based on the effective interest method over the life of the financing.

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~~NOTE B—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)~~

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, Main Street 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

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income based on the effective interest method 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 based on the effective interest method 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 based on the effective interest method over the life of the debt investment.

To maintain RIC tax treatment (as discussed in Note ~~B.8.~~B.9. 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 three months ended March 31, 2018 and 2017, approximately 2.9% and ~~2016, approximately~~ 3.5% ~~and 2.6%~~, 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 reduction.

7.8. 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.

~~Effective January 1, 2016, Main Street elected early adoption of Accounting Standards Update ("ASU") 2016-09,~~~~Compensation—Stock Compensation: Improvements to Employee Share-Based Payment Accounting~~ ("ASU 2016-09," as discussed further below in Note B.12.). ASU 2016-09 requires that all excess tax benefits and tax deficiencies (including tax benefits of dividends on share-based payment awards) should be recognized as income tax expense or benefit in the income statement and no longer delay recognition of a tax benefit until the tax benefit is realized through a reduction to taxes payable. The tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. Additionally, ASU 2016-09 allows an entity to make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest, net of forfeitures, (current GAAP) or account for forfeitures when they occur. Amendments related to the timing of when excess tax benefits are recognized, minimum statutory withholding requirements, forfeitures and

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~~(Unaudited)~~

~~NOTE B—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)~~

intrinsic value should be applied using a modified retrospective transition method by means of a cumulative-effect adjustment to equity as of the beginning of the period in which the guidance is adopted. As such, Main Street has recorded a $1.8 million adjustment to "Net Unrealized Appreciation, Net of Income Taxes" on the consolidated balance sheet to capture the cumulative tax effect as of January 1, 2016. The company has elected to account for forfeitures as they occur and this change had no impact on its consolidated financial statements. The additional amendments (cash flows classification, minimum statutory tax withholding requirements and classification of awards as either a liability or equity) did not have an effect on Main Street's consolidated financial statements.

8.9. 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, 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 12 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.

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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 its book income, or loss, due to temporary book and tax timing differences and permanent differences. ~~This~~The Taxable Subsidiaries are each taxed at their normal corporate 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 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.

In December 2017, the "Tax Cuts and Jobs Act" legislation was enacted. The Tax Cuts and Jobs Act includes significant changes to the U.S. corporate tax system, including a U.S. federal corporate income tax rate reduction from 35% to 21% and other changes. ASC 740,Income Taxes, requires the effects of changes in tax rates and laws on deferred tax balances to be recognized in the period in which the legislation was enacted. As such, Main Street has accounted for the tax effects as a result of the enactment of the Tax Cuts and Jobs Act beginning with the period ended December 31, 2017.

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.

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~~NOTE B—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)~~

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.

9.10. Net Realized Gains or Losses and Net ~~Change in~~ 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 ~~change in~~ 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.

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11. 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.

As part of Main Street's acquisition of the majority of the equity interests of MSC II in January 2010 (the "MSC II Acquisition"), Main Street elected the fair value option under ASC 825,Financial Instruments ("ASC 825"), relating to accounting for debt obligations at their fair value, for the MSC II SBIC debentures acquired as part of the acquisition accounting related to the MSC II Acquisition and values those obligations as discussed further in Note C. In order to provide for a more consistent basis of presentation, Main Street has continued to elect the fair value option for SBIC debentures issued by MSC II subsequent to the MSC II Acquisition. When the fair value option is elected for a given SBIC debenture, the deferred loan costs associated with the debenture are fully expensed in the current period to "Net ~~Change in~~ Unrealized Appreciation (Depreciation)—SBIC debentures" as part of the fair value adjustment. Interest incurred in connection with SBIC debentures which are valued at fair value is included in interest expense.

~~11.~~12. 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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~~NOTE B—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)~~

~~12.~~13. Recently Issued or Adopted Accounting Standards

In May 2014, the FASB issued ASU 2014-09,Revenue from Contracts with Customers (Topic 606)). ASU 2014-09 supersedes the revenue recognition requirements under ASC 605,Revenue Recognition, and most industry-specific guidance throughout the Industry Topics of the ASC. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. Under the new guidance, an entity is required to perform the following five steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation. The new guidance will significantly enhance comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets. Additionally, the guidance requires improved disclosures as to the nature, amount, timing and uncertainty of revenue that is recognized. In March 2016, the FASB issued ASU 2016-08,Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which clarified the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU 2016-10,Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, which clarified the implementation guidance regarding performance

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obligations and licensing arrangements. In May 2016, the FASB issued ASU No. 2016-12,Revenue from Contracts with Customers (Topic 606)—Narrow-Scope Improvements and Practical Expedients, which clarified guidance on assessing collectability, presenting sales tax, measuring noncash consideration, and certain transition matters. In December 2016, the FASB issued ASU No. 2016-20,Revenue from Contracts with Customers (Topic 606)—Technical Corrections and Improvements, which provided disclosure relief, and clarified the scope and application of the new revenue standard and related cost guidance. The ~~new~~ guidance ~~will be~~is effective for the annual reporting period beginning after December 15, 2017, including interim periods within that reporting period. ~~Early adoption would be permitted for annual reporting periods beginning after December 15, 2016.~~Substantially all of Main Street's income is not within the scope of ASU 2014-09. For those income items that are within the scope (primarily fee income), Main Street ~~expects to identify~~has similar performance obligations ~~under ASC 606~~ as compared with deliverables and separate units of account previously identified. As a result, Main ~~Street expects~~Street's timing of its ~~revenue~~income recognition ~~to remain~~remains the ~~same.~~

~~In May 2015, the FASB issued ASU 2015-07,~~~~Fair Value Measurements—Disclosures for Certain Entities that Calculate Net Asset Value per Share~~. This amendment updates guidance intended to eliminate the diversity in practice surrounding how investments measured at net asset value under the practical expedient with future redemption dates have been categorized in the fair value hierarchy. Under the updated guidance, investments for which fair value is measured at net asset value per share using the practical expedient should no longer be categorized in the fair value hierarchy, while investments for which fair value is measured at net asset value per share but the practical expedient is not applied should continue to be categorized in the fair value hierarchy. The updated guidance requires retrospective adoption for all periods presentedsame and is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted. The Company adopted this standard during the three months ended March 31, 2016. There was no impact of the adoption of ~~this new accounting~~the standard ~~on Main Street's consolidated financial statements as none of its investments are measured through the use of the practical expedient.~~

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~~(Unaudited)~~

~~NOTE B—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)~~was not material.

In February 2016, the FASB issued ASU 2016-02,Leases, which requires lessees to recognize on the balance sheet a right-of-use asset, representing its right to use the underlying asset for the lease term, and a lease liability for all leases with terms greater than 12 months. The guidance also requires qualitative and quantitative disclosures designed to assess the amount, timing, and uncertainty of cash flows arising from leases. The standard requires the use of a modified retrospective transition approach, which includes a number of optional practical expedients that entities may elect to apply. The new guidance is effective for annual periods beginning after December 15, 2018, and interim periods therein. Early application is permitted. While Main Street continues to assess the effect of adoption, Main Street currently believes the most significant change relates to the recognition of a new right-of-use asset and lease liability on its consolidated balance sheet for its office space operating lease. Main Street currently has one operating lease for office space and does not expect a significant change in the leasing activity between now and adoption. See further discussion of the operating lease obligation in Note M.

In March 2016, the FASB issued ASU 2016-09, which is intended to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The new guidance is effective for annual periods beginning after December 15, 2016, and interim periods therein. Early application is permitted. The Company elected to early adopt this standard during the three months ended March 31, 2016. See further discussion of the impact of the adoption of this standard in Note B.7.

In August 2016, the FASB issued ASU 2016-15,Statement of Cash Flows (Topic 230), which is intended to reduce the existing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The guidance is effective for annual periods beginning after December 15, 2017, and interim periods therein. Early application is permitted. The impact of the adoption of this new accounting standard on Main Street's consolidated financial statements iswas not ~~expected to be~~ material.

From time to time, new accounting pronouncements are issued by the FASB or other standards setting bodies that are adopted by Main Street as of the specified effective date. Main Street 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 AND DEBENTURES—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.

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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

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~~NOTE C—FAIR VALUE HIERARCHY FOR INVESTMENTS AND DEBENTURES—PORTFOLIO COMPOSITION (Continued)~~

gives the highest priority to quoted prices in active markets for identical investments (Level 1) and the lowest priority to unobservable inputs (Level 3).

Investments recorded on Main Street's balance sheet 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 ~~private~~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). Main Street conducts reviews of fair value hierarchy classifications on a quarterly basis. During the classification process, Main Street may determine that it is appropriate to transfer investments between fair value hierarchy Levels. These transfers occur when Main Street has concluded that it is appropriate for the classification of an individual asset to be changed due to a change in the factors used to determine the selection of the Level. Any such changes are deemed to be effective during the quarter in which the transfer occurs.

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(Unaudited)

~~NOTE C—FAIR VALUE HIERARCHY FOR INVESTMENTS AND DEBENTURES—PORTFOLIO COMPOSITION (Continued)~~

As of March 31, ~~2017~~2018 and December 31, ~~2016,~~2017, all of Main Street's LMM portfolio investments ~~except for the equity investment in one portfolio company~~ consisted of illiquid securities issued by ~~private~~privately held companies. ~~The investment which was the exception was in a company with publicly traded equity.~~ As a result, the fair value determination for ~~the~~all of Main Street's LMM portfolio investments primarily consisted of unobservable inputs. The fair value determination for the publicly traded equity security consisted of observable inputs in non-active markets for which sufficient observable inputs were available to determine the fair value. As a result, all of Main Street's LMM portfolio investments were categorized as Level 3 as of March 31, ~~2017~~2018 and December 31, ~~2016, except for the one publicly traded equity security which was categorized as Level 2.~~2017.

As of March 31, ~~2017~~2018 and December 31, ~~2016,~~2017, 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 March 31, ~~2017~~2018 and December 31, ~~2016.~~2017.

As of March 31, ~~2017~~2018 and December 31, ~~2016,~~2017, Main Street's Private Loan portfolio investments primarily consisted of investments in interest-bearing 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 March 31, ~~2017~~2018 and December 31, ~~2016.~~2017.

As of March 31, ~~2017~~2018 and December 31, ~~2016,~~2017, Main Street's Other Portfolio investments consisted of illiquid securities issued by ~~private~~privately held companies. The fair value determination for these investments primarily consisted of unobservable inputs. As a result, all of Main Street's Other Portfolio investments were categorized as Level 3 as of March 31, ~~2017~~2018 and December 31, ~~2016.~~2017.

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);

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~~NOTE C—FAIR VALUE HIERARCHY FOR INVESTMENTS AND DEBENTURES—PORTFOLIO COMPOSITION (Continued)~~

•: 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;

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(Unaudited)

•: 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 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 unobservable inputs used in the fair value measurement of Main Street's LMM, Middle Market, Private Loan and Other Portfolio debt securities are (i) risk adjusted discount rates used in the Yield-to-Maturity valuation technique (described in Note B.1.—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.

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~~(Unaudited)~~

~~NOTE C—FAIR VALUE HIERARCHY FOR INVESTMENTS AND DEBENTURES—PORTFOLIO COMPOSITION (Continued)~~

The following tables provide a summary of the significant unobservable inputs used to fair value Main Street's Level 3 portfolio investments as of March 31, ~~2017~~2018 and December 31, ~~2016:~~2017:

Type of Investment	Fair Value as of March 31, 2017 (in thousands)		Valuation Technique	Significant Unobservable Inputs	Range(3)			Fair Value as of March 31, 2018 (in thousands)		Valuation Technique	Significant Unobservable Inputs	Range(3)

Equity investments	$	579,449	Discounted cash flow	Weighted-average cost of capital	10.1% - 22.7%	12.7%	13.3%	$	675,229	Discounted cash flow	WACC	11.3% - 23.6%	13.9%	14.3%
			Market comparable / Enterprise Value	EBITDA multiple(1)	4.5x - 8.5x(2)	7.1x	6.0x			Market comparable / Enterprise Value	EBITDA multiple(1)	4.5x - 8.5x(2)	7.3x	6.0x
Debt investments	$	818,956	Discounted cash flow	Risk adjusted discount factor	7.4% - 16.0%(2)	11.4%	11.1%	$	943,653	Discounted cash flow	Risk adjusted discount factor	7.1% - 16.8%(2)	11.3%	11.3%
				Expected principal recovery percentage	3.0% - 100.0%	99.8%	100.0%				Expected principal recovery percentage	2.9% - 100.0%	99.7%	100.0%
Debt investments	$	578,703	Market approach	Third-party quote	15.0 - 105.0			$	695,152	Market approach	Third-party quote	11.0 - 106.5

Total Level 3 investments	$	1,977,108						$	2,314,034

(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 ~~3.5x~~4.0x - 17.5x and the range for risk adjusted discount factor is ~~4.8%~~4.3% - ~~43.0%~~35.0%.

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(Unaudited)

(3): Does not include investments for which the valuation technique does not include the use of the applicable fair value input.

Type of Investment	Fair Value as of December 31, 2016 (in thousands)		Valuation Technique	Significant Unobservable Inputs	Range(3)			Fair Value as of December 31, 2017 (in thousands)		Valuation Technique	Significant Unobservable Inputs	Range(3)

Equity investments	$	567,003	Discounted cash flow	Weighted-average cost of capital	10.4% - 23.1%	13.0%	13.7%	$	653,008	Discounted cash flow	WACC	11.1% - 23.2%	13.7%	14.0%
			Market comparable / Enterprise Value	EBITDA multiple(1)	4.5x - 8.5x(2)	7.1x	6.0x			Market comparable / Enterprise Value	EBITDA multiple(1)	4.3x - 8.5x(2)	7.3x	6.0x
Debt investments	$	808,895	Discounted cash flow	Risk adjusted discount factor	7.4% - 15.9%(2)	11.8%	11.6%	$	858,816	Discounted cash flow	Risk adjusted discount factor	6.7% - 16.1%(2)	11.2%	11.0%
				Expected principal recovery percentage	3.0% - 100.0%	99.7%	100.0%				Expected principal recovery percentage	2.9% - 100.0%	99.8%	100.0%
Debt investments	$	618,928	Market approach	Third-party quote	22.5 - 108.0			$	659,481	Market approach	Third-party quote	11.0 - 106.0

Total Level 3 investments	$	1,994,826						$	2,171,305

(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 ~~3.3x~~4.0x - 17.5x and the range for risk adjusted discount factor is ~~4.8%~~4.3% - ~~38.0%~~30.0%.
(3): Does not include investments for which the valuation technique does not include the use of the applicable fair value input.

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~~Notes to Consolidated Financial Statements (Continued)~~

~~(Unaudited)~~

~~NOTE C—FAIR VALUE HIERARCHY FOR INVESTMENTS AND DEBENTURES—PORTFOLIO COMPOSITION (Continued)~~

The following tables provide a summary of changes in fair value of Main Street's Level 3 portfolio investments for the three month periods ended March 31, ~~2017~~2018 and ~~2016~~2017 (amounts in thousands):

Type of Investment	Fair Value as of December 31, 2016		Transfers Into Level 3 Hierarchy		Redemptions/ Repayments			New Investments		Net Changes from Unrealized to Realized			Net Unrealized Appreciation (Depreciation)			Other(1)			Fair Value as of March 31, 2017		Fair Value as of December 31, 2017		Transfers Into Level 3 Hierarchy		Redemptions/ Repayments			New Investments		Net Changes from Unrealized to Realized			Net Unrealized Appreciation (Depreciation)			Other(1)			Fair Value as of March 31, 2018

Debt	$	1,427,823	$	—	$	(190,366	)	$	175,026	$	1,340		$	(10,108	)	$	(6,056	)	$	1,397,659	$	1,518,297	$	—	$	(154,935	)	$	270,617	$	11,615		$	(3,648	)	$	(3,141	)	$	1,638,805
Equity		549,453		—		(9,119	)		25,691		(19,775	)		11,876			6,056			564,182		641,493		—		(17,191	)		51,027		(19,069	)		4,153			3,141			663,554
Equity Warrant		17,550		—		(1,673	)		331		(1,107	)		166			—			15,267		11,515		—		—			—		—			160			—			11,675

	$	1,994,826	$	—	$	(201,158	)	$	201,048	$	(19,542	)	$	1,934		$	—		$	1,977,108	$	2,171,305	$	—	$	(172,126	)	$	321,644	$	(7,454	)	$	665		$	—		$	2,314,034

(1): Includes the impact of non-cash conversions. These transactions represent non-cash investing activities. See additional cash flow information at the consolidated statements of cash flows.

Type of Investment	Fair Value as of December 31, 2015		Transfers Into Level 3 Hierarchy		Redemptions/ Repayments			New Investments		Net Changes from Unrealized to Realized			Net Unrealized Appreciation (Depreciation)			Other(1)			Fair Value as of March 31, 2016		Fair Value as of December 31, 2016		Transfers Into Level 3 Hierarchy		Redemptions/ Repayments			New Investments		Net Changes from Unrealized to Realized			Net Unrealized Appreciation (Depreciation)			Other(1)			Fair Value as of March 31, 2017

Debt	$	1,265,544	$	—	$	(70,061	)	$	101,465	$	4,510		$	(11,905	)	$	(2,556	)	$	1,286,997	$	1,427,823	$	—	$	(190,366	)	$	175,026	$	1,340		$	(10,108	)	$	(6,056	)	$	1,397,659
Equity		519,966		—		(5,987	)		16,959		(16,816	)		(1,035	)		2,556			515,643		549,453		—		(9,119	)		25,691		(19,775	)		11,876			6,056			564,182
Equity Warrant		10,646		—		—			2,819		—			(1,044	)		—			12,421		17,550		—		(1,673	)		331		(1,107	)		166			—			15,267

	$	1,796,156	$	—	$	(76,048	)	$	121,243	$	(12,306	)	$	(13,984	)	$	—		$	1,815,061	$	1,994,826	$	—	$	(201,158	)	$	201,048	$	(19,542	)	$	1,934		$	—		$	1,977,108

(1): Includes the impact of non-cash conversions. These transactions represent non-cash investing activities. See additional cash flow information at the consolidated statements of cash flows.

As of March 31, ~~2017~~2018 and December 31, ~~2016,~~2017, the fair value determination for the SBIC debentures recorded at fair value primarily consisted of unobservable inputs. As a result, the SBIC debentures which are recorded at fair value were categorized as Level 3. Main Street determines the fair value of these instruments primarily using a Yield-to-Maturity approach that analyzes the discounted cash flows of interest and principal for each SBIC debenture recorded at fair value based on estimated market interest rates for debt instruments of similar structure, terms, and maturity. Main Street's estimate of the expected repayment date of principal for each SBIC debenture recorded at fair

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Notes to Consolidated Financial Statements (Continued)

(Unaudited)

value is the legal maturity date of the instrument. The significant unobservable inputs used in the fair value measurement of Main Street's SBIC debentures recorded at fair value are the estimated market interest rates used to fair value each debenture using the yield valuation technique described above. Significant increases (decreases) in the estimated market interest rates in isolation would result in a significantly lower (higher) fair value measurement.

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~~MAIN STREET CAPITAL CORPORATION~~

~~Notes to Consolidated Financial Statements (Continued)~~

~~(Unaudited)~~

~~NOTE C—FAIR VALUE HIERARCHY FOR INVESTMENTS AND DEBENTURES—PORTFOLIO COMPOSITION (Continued)~~

The following tables provide a summary of the significant unobservable inputs used to fair value Main Street's Level 3 SBIC debentures as of March 31, ~~2017~~2018 and December 31, ~~2016~~2017 (amounts in thousands):

Type of Instrument		Fair Value as of March 31, 2017			Valuation Technique		Significant Unobservable Inputs		Range		Weighted Average				Fair Value as of March 31, 2018			Valuation Technique		Significant Unobservable Inputs		Range		Weighted Average

SBIC debentures		$	49,155		Discounted cash flow		Estimated market interest rates		4.2% - 5.2%			4.5	%		$	44,623		Discounted cash flow		Estimated market interest rates		4.9% - 5.7%			5.1%

Type of Instrument		Fair Value as of December 31, 2016			Valuation Technique		Significant Unobservable Inputs		Range		Weighted Average				Fair Value as of December 31, 2017			Valuation Technique		Significant Unobservable Inputs		Range			Weighted Average

SBIC debentures		$	74,803		Discounted cash flow		Estimated market interest rates		3.4% - 5.3%			4.2	%		$	48,608		Discounted cash flow		Estimated market interest rates			4.9% - 5.5%			5.1%

The following tables provide a summary of changes for the Level 3 SBIC debentures recorded at fair value for the three month periods ended March 31, ~~2017~~2018 and ~~2016~~2017 (amounts in thousands):

Type of Instrument	Fair Value as of December 31, 2016		Repayments			Net Realized Loss		New SBIC Debentures		Net Unrealized (Appreciation) Depreciation			Fair Value as of March 31, 2017		Fair Value as of December 31, 2017		Repayments			Net Realized Loss		New SBIC Debentures		Net Unrealized (Appreciation) Depreciation			Fair Value as of March 31, 2018

SBIC debentures at fair value	$	74,803	$	(25,200	)	$	5,217	$	—	$	(5,665	)	$	49,155	$	48,608	$	(4,000	)	$	1,374	$	—	$	(1,359	)	$	44,623

Type of Instrument	Fair Value as of December 31, 2015		Repayments		New SBIC Debentures		Net Unrealized (Appreciation) Depreciation		Fair Value as of March 31, 2016		Fair Value as of December 31, 2016		Repayments			Net Realized Loss		New SBIC Debentures		Net Unrealized (Appreciation) Depreciation			Fair Value as of March 31, 2017

SBIC debentures at fair value	$	73,860	$	—	$	—	$	146	$	74,006	$	74,803	$	(25,200	)	$	5,217	$	—	$	(5,665	)	$	49,155

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Notes to Consolidated Financial Statements (Continued)

(Unaudited)

~~NOTE C—FAIR VALUE HIERARCHY FOR INVESTMENTS AND DEBENTURES—PORTFOLIO COMPOSITION (Continued)~~

At March 31, ~~2017~~2018 and December 31, ~~2016,~~2017, Main Street's investments and SBIC debentures at fair value were categorized as follows in the fair value hierarchy for ASC 820 purposes:

			Fair Value Measurements								Fair Value Measurements

			(in thousands)								(in thousands)
At March 31, 2017	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
At March 31, 2018									Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
LMM portfolio investments	$	886,559	$	—	$	2,270	$	884,289	$	1,049,772	$	—	$	—	$	1,049,772
Middle Market portfolio investments		568,796		—		—		568,796		617,941		—		—		617,941
Private Loan portfolio investments		384,220		—		—		384,220		496,533		—		—		496,533
Other Portfolio investments		106,331		—		—		106,331		101,066		—		—		101,066
External Investment Manager		33,472		—		—		33,472		48,722		—		—		48,722

Total portfolio investments		1,979,378		—		2,270		1,977,108
Marketable securities and idle funds investments		—		—		—		—

Total investments	$	1,979,378	$	—	$	2,270	$	1,977,108	$	2,314,034	$	—	$	—	$	2,314,034



SBIC debentures at fair value	$	49,155	$	—	$	—	$	49,155	$	44,623	$	—	$	—	$	44,623

			Fair Value Measurements								Fair Value Measurements

			(in thousands)								(in thousands)
At December 31, 2016	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
At December 31, 2017									Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
LMM portfolio investments	$	892,592	$	—	$	2,080	$	890,512	$	948,196	$	—	$	—	$	948,196
Middle Market portfolio investments		630,578		—		—		630,578		609,256		—		—		609,256
Private Loan portfolio investments		342,867		—		—		342,867		467,475		—		—		467,475
Other Portfolio investments		100,252		—		—		100,252		104,610		—		—		104,610
External Investment Manager		30,617		—		—		30,617		41,768		—		—		41,768

Total portfolio investments		1,996,906		—		2,080		1,994,826
Marketable securities and idle funds investments		—		—		—		—

Total investments	$	1,996,906	$	—	$	2,080	$	1,994,826	$	2,171,305	$	—	$	—	$	2,171,305



SBIC debentures at fair value	$	74,803	$	—	$	—	$	74,803	$	48,608	$	—	$	—	$	48,608

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~~Notes to Consolidated Financial Statements (Continued)~~

~~(Unaudited)~~

~~NOTE C—FAIR VALUE HIERARCHY FOR INVESTMENTS AND DEBENTURES—PORTFOLIO COMPOSITION (Continued)~~

Investment Portfolio Composition

Main Street's LMM portfolio investments primarily consist of 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 $50 million. The LMM debt investments are typically secured by either a first or second priority lien on the assets of the portfolio company, generally bear interest at fixed rates, 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 Middle Market portfolio investments primarily consist of direct investments in or secondary purchases of interest-bearing debt securities in privately held companies based in the United

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Notes to Consolidated Financial Statements (Continued)

(Unaudited)

States that are generally larger in size than the companies included in Main Street's LMM portfolio. Main Street's Middle Market portfolio companies generally have annual revenues between $150 million and $1.5 billion, and its Middle Market investments generally range in size from $3 million to ~~$15~~$20 million. Main Street's Middle Market portfolio debt investments are generally secured by either a first or second 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's private loan ("Private Loan") portfolio investments are primarily debt securities in privately held companies which have been originated through strategic relationships with other investment funds on a collaborative basis, and are often referred to in the debt markets as "club deals." Private Loan investments are typically similar in size, structure, terms and conditions to investments Main Street holds in its LMM portfolio and Middle Market portfolio. Main Street's Private Loan portfolio debt investments are generally secured by either a first or second 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's other portfolio ("Other Portfolio") investments primarily consist of investments which are not consistent with the typical profiles for LMM, Middle Market and Private Loan 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.

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 of the funds under management and may earn incentive fees, or a carried interest, based on the performance of the funds 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 HMS Income Fund, Inc. ("HMS Income"). Through this agreement, Main Street shares employees with the External Investment Manager, including their related infrastructure, business

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~~Notes to Consolidated Financial Statements (Continued)~~

~~(Unaudited)~~

~~NOTE C—FAIR VALUE HIERARCHY FOR INVESTMENTS AND DEBENTURES—PORTFOLIO COMPOSITION (Continued)~~

relationships, management expertise and capital raising capabilities. ~~In the first quarter of 2014,~~ Main Street ~~began allocating cost~~allocates the related expenses to the External Investment Manager pursuant to the sharing agreement. Main Street's total expenses for the three months ended March 31, ~~2017~~2018 and ~~2016~~2017 are net of expenses allocated to the External Investment Manager of ~~$1.5~~$2.1 million and ~~$1.2~~$1.5 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 three months ended March 31, 2018, Main Street recorded investment income from one portfolio company in excess of 10% of total investment income. For the three months ended March 31, 2017, ~~and 2016,~~ Main Street did not record investment income from any single portfolio company in excess of 10% of total investment income.

The following tables provide a summary of Main Street's investments in the LMM, Middle Market and Private Loan portfolios as of March 31, ~~2017~~2018 and December 31, ~~2016~~2017 (this information excludes

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Notes to Consolidated Financial Statements (Continued)

(Unaudited)

the Other Portfolio investments and the External Investment Manager which are discussed further below):

	As of March 31, 2017						As of March 31, 2018

	LMM(a)		Middle Market		Private Loan		LMM(a)		Middle Market		Private Loan
	(dollars in millions)						(dollars in millions)
Number of portfolio companies		73		69		49		73		59		55
Fair value	$	886.6	$	568.8	$	384.2	$	1,049.8	$	617.9	$	496.5
Cost	$	772.1	$	588.9	$	403.7	$	898.9	$	629.9	$	521.6
% of portfolio at cost—debt		67.6%		96.9%		94.0%		67.7%		96.7%		93.7%
% of portfolio at cost—equity		32.4%		3.1%		6.0%		32.3%		3.3%		6.3%
% of debt investments at cost secured by first priority lien		96.1%		88.8%		90.2%		98.4%		91.0%		94.3%
Weighted-average annual effective yield(b)		12.2%		8.6%		9.6%		12.1%		9.2%		9.4%
Average EBITDA(c)	$	4.6	$	95.5	$	24.8	$	4.8	$	86.3	$	43.0

(a): At March 31, ~~2017,~~2018, Main Street had equity ownership in approximately ~~99%~~97% of its LMM portfolio companies, and the average fully diluted equity ownership in those portfolio companies was approximately ~~37%~~38%.
(b): The weighted-average annual effective yields were computed using the effective interest rates for all debt investments at cost as of March 31, ~~2017,~~2018, 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. ~~Weighted-average~~The weighted-average annual effective yield is higher than what an investor in shares of Main Street's common stock will realize on its investment because it does not reflect 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 Middle Market and Private Loan portfolios. These calculations exclude certain portfolio companies, including ~~five~~six LMM portfolio companies ~~one Middle~~

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~~MAIN STREET CAPITAL CORPORATION~~

~~Notes to Consolidated Financial Statements (Continued)~~

~~(Unaudited)~~

~~NOTE C—FAIR VALUE HIERARCHY FOR INVESTMENTS AND DEBENTURES—PORTFOLIO COMPOSITION (Continued)~~

~~Market portfolio company~~ and three 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, 2016						As of December 31, 2017

	LMM(a)		Middle Market		Private Loan		LMM(a)		Middle Market		Private Loan
	(dollars in millions)						(dollars in millions)
Number of portfolio companies		73		78		46		70		62		54
Fair value	$	892.6	$	630.6	$	342.9	$	948.2	$	609.3	$	467.5
Cost	$	760.3	$	646.8	$	357.7	$	776.5	$	629.7	$	489.2
% of total investments at cost—debt		69.1%		97.2%		93.5%
% of total investments at cost—equity		30.9%		2.8%		6.5%
% of portfolio at cost—debt								67.1%		97.3%		93.6%
% of portfolio at cost—equity								32.9%		2.7%		6.4%
% of debt investments at cost secured by first priority lien		92.1%		89.1%		89.0%		98.1%		90.5%		94.5%
Weighted-average annual effective yield(b)		12.5%		8.5%		9.6%		12.0%		9.0%		9.2%
Average EBITDA(c)	$	5.9	$	98.6	$	22.7	$	4.4	$	78.3	$	39.6

(a): At December 31, ~~2016,~~2017, Main Street had equity ownership in approximately ~~99%~~97% of its LMM portfolio companies, and the average fully diluted equity ownership in those portfolio companies was approximately ~~36%~~39%.

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Notes to Consolidated Financial Statements (Continued)

(Unaudited)

(b): The weighted-average annual effective yields were computed using the effective interest rates for all debt investments at cost as of December 31, ~~2016,~~2017, 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. ~~Weighted-average~~The weighted-average annual effective yield is higher than what an investor in shares of Main Street's common stock will realize on its investment because it does not reflect 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 Middle Market and Private Loan portfolios. These calculations exclude certain portfolio companies, including ~~five~~six LMM portfolio companies, one Middle Market portfolio company and three Private Loan portfolio companies, as EBITDA is not a meaningful valuation metric for Main Street's investments in these portfolio ~~companies.~~companies, and those portfolio companies whose primary purpose is to own real estate.

As of March 31, ~~2017,~~2018, Main Street had Other Portfolio investments in ~~ten~~eleven companies, collectively totaling approximately $106.3 million in fair value and approximately $111.8 million in cost basis and which comprised approximately 5.4% of Main Street's Investment Portfolio at fair value. As of December 31, 2016, Main Street had Other Portfolio investments in ten companies, collectively totaling approximately $100.3$101.1 million in fair value and approximately $107.1 million in cost basis and which comprised approximately ~~5.0%~~4.4% of Main Street's Investment Portfolio at fair value.

~~Table~~ As of ~~Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Notes to Consolidated Financial Statements (Continued)~~

~~(Unaudited)~~

~~NOTE C—FAIR VALUE HIERARCHY FOR INVESTMENTS AND DEBENTURES—PORTFOLIO COMPOSITION (Continued)~~December 31, 2017, Main Street had Other Portfolio investments in eleven companies, collectively totaling approximately $104.6 million in fair value and approximately $109.4 million in cost basis and which comprised approximately 4.8% of Main Street's Investment Portfolio at fair value.

As discussed further in Note A.1., Main Street holds an investment in the External Investment Manager, a wholly owned subsidiary that is treated as a portfolio investment. As of March 31, 2018, there was no cost basis in this investment and the investment had a fair value of approximately $48.7 million, which comprised approximately 2.1% of Main Street's Investment Portfolio at fair value. As of December 31, 2017, there was no cost basis in this investment and the investment had a fair value of approximately ~~$33.5~~$41.8 million, which comprised approximately 1.7% of Main Street's Investment Portfolio at fair value. As of December 31, 2016, there was no cost basis in this investment and the investment had a fair value of approximately $30.6 million, which comprised approximately 1.5%1.9% of Main Street's Investment Portfolio at fair value.

The following tables summarize the composition of Main Street's total combined LMM portfolio investments, Middle Market portfolio investments and Private Loan portfolio investments at cost and fair value by type of investment as a percentage of the total combined LMM portfolio investments, Middle Market portfolio investments and Private Loan portfolio investments, as of March 31, ~~2017~~2018 and December 31, ~~2016~~2017 (this information excludes the Other Portfolio investments and the External Investment Manager).

Cost:

First lien debt	76.6%	76.1%	78.7%	79.0%
Equity	15.6%	14.5%	16.1%	15.3%
Second lien debt	6.2%	7.7%	4.1%	4.5%
Equity warrants	1.0%	1.1%	0.7%	0.7%
Other	0.6%	0.6%	0.4%	0.5%

	100.0%	100.0%	100.0%	100.0%

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Notes to Consolidated Financial Statements (Continued)

(Unaudited)

Fair Value:

First lien debt	69.6%	68.7%	71.5%	70.5%
Equity	23.2%	22.6%	23.7%	24.4%
Second lien debt	5.8%	7.2%	3.8%	4.1%
Equity warrants	0.8%	0.9%	0.6%	0.6%
Other	0.6%	0.6%	0.4%	0.4%

	100.0%	100.0%	100.0%	100.0%

The following tables summarize the composition of Main Street's total combined LMM portfolio investments, Middle Market portfolio investments and Private Loan 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 portfolio investments, Middle Market portfolio investments and Private Loan portfolio investments, as of March 31, ~~2017~~2018 and December 31, ~~2016~~2017 (this information excludes the Other

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Notes to Consolidated Financial Statements (Continued)~~

~~(Unaudited)~~

~~NOTE C—FAIR VALUE HIERARCHY FOR INVESTMENTS AND DEBENTURES—PORTFOLIO COMPOSITION (Continued)~~

Portfolio investments and the External Investment Manager). The geographic composition is determined by the location of the corporate headquarters of the portfolio company.

Cost:

Southwest	28.3%	29.7%	27.4%	26.1%
West			24.1%	20.7%
Midwest	23.4%	23.0%	20.4%	22.3%
West	15.9%	16.1%
Northeast	15.2%	14.8%	15.6%	15.2%
Southeast	14.1%	13.1%	10.2%	12.8%
Canada	1.4%	1.7%	1.4%	1.9%
Other Non-United States	1.7%	1.6%	0.9%	1.0%

	100.0%	100.0%	100.0%	100.0%

Fair Value:

Southwest	28.6%	31.0%	28.4%	26.8%
West			26.0%	23.7%
Midwest	22.1%	21.2%	19.1%	20.3%
West	18.4%	18.3%
Northeast	14.4%	13.9%	14.9%	14.6%
Southeast	13.6%	12.7%	9.4%	11.9%
Canada	1.2%	1.4%	1.3%	1.8%
Other Non-United States	1.7%	1.5%	0.9%	0.9%

	100.0%	100.0%	100.0%	100.0%

Main Street's LMM portfolio investments, Middle Market portfolio investments and Private Loan 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 portfolio investments, Middle Market portfolio investments and Private Loan portfolio investments by industry at cost and fair value

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MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements (Continued)

(Unaudited)

~~NOTE C—FAIR VALUE HIERARCHY FOR INVESTMENTS AND DEBENTURES—PORTFOLIO COMPOSITION (Continued)~~

as of March 31, ~~2017~~2018 and December 31, ~~2016~~2017 (this information excludes the Other Portfolio investments and the External Investment Manager).

Cost:

Construction & Engineering			8.2%	6.4%
Energy Equipment & Services	7.7%	7.5%	7.0%	6.9%
Commercial Services & Supplies			5.4%	4.5%
Media			5.4%	4.4%
Hotels, Restaurants & Leisure	6.7%	6.5%	5.1%	6.2%
Construction & Engineering	6.3%	5.3%
Media	6.0%	5.7%
Specialty Retail			4.8%	5.3%
Machinery	5.8%	5.6%	4.8%	5.2%
Commercial Services & Supplies	4.9%	5.0%
Diversified Telecommunication Services			4.1%	4.1%
Aerospace & Defense			4.0%	3.3%
Food Products			3.9%	1.9%
Health Care Providers & Services			3.8%	2.9%
IT Services			3.7%	3.9%
Professional Services			3.4%	3.7%
Internet Software & Services			3.3%	3.4%
Electronic Equipment, Instruments & Components	4.5%	4.5%	2.8%	3.4%
Specialty Retail	3.9%	4.4%
Leisure Equipment & Products			2.7%	3.0%
Computers & Peripherals			2.5%	2.8%
Software			2.4%	2.5%
Communications Equipment			2.2%	2.3%
Diversified Consumer Services	3.5%	2.8%	2.2%	1.6%
Diversified Telecommunication Services	3.3%	3.3%
IT Services	3.1%	3.9%
Leisure Equipment & Products	3.1%	0.9%
Internet Software & Services	3.0%	3.6%
Auto Components	2.8%	3.0%
Health Care Providers & Services	2.8%	3.0%
Distributors			1.8%	1.9%
Building Products			1.8%	1.9%
Oil, Gas & Consumable Fuels			1.7%	1.6%
Construction Materials			1.5%	1.7%
Diversified Financial Services	2.4%	2.3%	1.5%	1.6%
Health Care Equipment & Supplies	2.3%	2.3%	1.3%	2.0%
Software	2.2%	2.6%
Computers & Peripherals	2.2%	2.2%
Food Products	2.1%	2.6%
Building Products	2.1%	2.1%
Communications Equipment	1.7%	2.3%
Oil, Gas & Consumable Fuels	1.6%	1.2%
Aerospace & Defense	1.6%	0.9%
Professional Services	1.3%	1.4%
Consumer Finance	1.0%	1.5%
Air Freight & Logistics	1.0%	1.0%
Internet & Catalog Retail			1.2%	1.3%
Road & Rail			1.2%	1.0%
Auto Components			0.3%	1.9%
Real Estate Management & Development	1.0%	0.7%	0.3%	1.0%
Distributors	0.9%	1.1%
Road & Rail	0.0%	1.5%
Other(1)	9.2%	9.3%	5.7%	6.4%

	100.0%	100.0%	100.0%	100.0%

(1): Includes various industries with each industry individually less than 1.0% of the total combined LMM portfolio investments, Middle Market portfolio investments and Private Loan portfolio investments at each date.

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MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements (Continued)

(Unaudited)

~~NOTE C—FAIR VALUE HIERARCHY FOR INVESTMENTS AND DEBENTURES—PORTFOLIO COMPOSITION (Continued)~~

Fair Value:

Construction & Engineering			7.8%	6.3%
Energy Equipment & Services			6.4%	6.2%
Machinery	7.0%	6.7%	6.3%	6.4%
Specialty Retail			5.2%	5.3%
Diversified Consumer Services			5.1%	5.9%
Hotels, Restaurants & Leisure	6.8%	6.5%	4.9%	5.9%
Construction & Engineering	6.5%	5.6%
Diversified Consumer Services	6.4%	5.5%
Energy Equipment & Services	6.1%	5.8%
Commercial Services & Supplies			4.7%	4.1%
Media	5.6%	5.2%	4.7%	3.8%
Commercial Services & Supplies	4.8%	5.0%
Specialty Retail	4.1%	4.6%
IT Services			3.8%	4.0%
Aerospace & Defense			3.8%	3.1%
Health Care Providers & Services			3.7%	2.8%
Food Products			3.7%	1.8%
Diversified Telecommunication Services			3.5%	3.4%
Professional Services			3.2%	3.5%
Internet Software & Services			3.2%	3.2%
Computers & Peripherals			2.9%	3.0%
Leisure Equipment & Products			2.6%	2.9%
Software			2.5%	2.5%
Electronic Equipment, Instruments & Components	4.0%	3.9%	2.3%	2.8%
IT Services	3.1%	3.7%
Leisure Equipment & Products	3.0%	0.9%
Internet Software & Services	2.9%	3.5%
Auto Components	2.7%	2.9%
Health Care Providers & Services	2.6%	2.9%
Diversified Telecommunication Services	2.6%	2.5%
Communications Equipment			2.1%	2.2%
Construction Materials			1.9%	1.9%
Distributors			1.7%	1.8%
Building Products			1.6%	1.8%
Diversified Financial Services	2.5%	2.3%	1.5%	1.6%
Computers & Peripherals	2.5%	2.3%
Oil, Gas & Consumable Fuels			1.5%	1.5%
Health Care Equipment & Supplies	2.4%	2.4%	1.2%	2.1%
Software	2.3%	2.6%
Food Products	2.0%	2.4%
Building Products	2.0%	1.9%
Communications Equipment	1.7%	2.3%
Aerospace & Defense	1.5%	0.8%
Oil, Gas & Consumable Fuels	1.4%	1.1%
Professional Services	1.3%	1.3%
Road & Rail			1.1%	1.0%
Internet & Catalog Retail			1.0%	1.1%
Air Freight & Logistics	1.2%	1.1%	0.7%	1.0%
Real Estate Management & Development	1.2%	0.7%	0.4%	1.1%
Construction Materials	1.0%	1.0%
Consumer Finance	0.9%	1.3%
Distributors	0.9%	1.1%
Road & Rail	0.0%	2.5%
Auto Components			0.3%	1.6%
Other(1)	7.0%	7.7%	4.7%	4.4%

	100.0%	100.0%	100.0%	100.0%

(1): Includes various industries with each industry individually less than 1.0% of the total combined LMM portfolio investments, Middle Market portfolio investments and Private Loan portfolio investments at each date.

At March 31, ~~2017~~2018 and December 31, ~~2016,~~2017, Main Street had no portfolio investment that was greater than 10% of the Investment Portfolio at fair value.

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MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements (Continued)

(Unaudited)

~~NOTE C—FAIR VALUE HIERARCHY FOR INVESTMENTS AND DEBENTURES—PORTFOLIO COMPOSITION (Continued)~~

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 these unconsolidated controlled portfolio companies, there are three tests utilized to determine if any of Main Street's Control Investments (as defined in Note A, including those unconsolidated ~~controlled~~ portfolio companies defined as Control Investments in which Main Street does not own greater than 50% of the voting securities) are considered significant subsidiaries: the investment test, the asset test and the income test. Rule 3-09 of Regulation S-X, as interpreted by the SEC, requires Main Street to include 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 if any of the three tests exceed 20% of Main Street's total investments at fair value, total assets or total income, respectively. Rule 4-08(g) of Regulation S-X requires summarized financial information of a Control Investment in an annual report if any of the three tests exceeds 10% of Main Street's annual total amounts and Rule 10-01(b)(1) of Regulation S-X requires summarized financial information in a quarterly report if any of the three tests exceeds 20% of Main Street's year-to-date total amounts.

As of March 31, ~~2017~~2018 and December 31, ~~2016,~~2017, Main Street had no single investment that represented greater than 20% of its total Investment Portfolio at fair value and no single investment whose total assets represented greater than 20% of its total assets. The income test is measured by dividing the absolute value of the combined total of total investment income, net realized gain (loss) and net unrealized appreciation (depreciation) of each Control Investment for the period being tested by the absolute value of Main Street's pre-tax income for the same period. After performing the income test for the three months ended March 31, 2018, Main Street determined that the absolute value of its income from two of its Control Investments individually generated more than 20% of its total income, primarily due to the unrealized appreciation that was recognized on one of the investments and to the unrealized depreciation that was recognized on the other investment. As such, the External Investment Manager was considered a significant subsidiary. The summarized financial information for the External Investment Manager is included in Note D. CBT Nuggets, LLC, an unconsolidated portfolio company that was a Control Investment, but for which Main Street was not the majority owner and did not have rights to maintain greater than 50% of the board representation, was also considered a significant subsidiary at the 20% income level as of March 31, 2018. After performing the income test for the three months ended March 31, 2017, Main Street determined that the income from no single investment generated more than 20% of Main Street's total income. After performing the income test for the three months ended March 31, 2016, excluding investments which were fully exited after March 31, 2016, Main Street determined that its income from two of its Control Investments individually generated more than 20% of Main Street's total income, primarily due to the unrealized appreciation that was recognized on the investments during the three months ended March 31, 2016. As such, GRT Rubber Technologies, LLC was considered a significant subsidiary at the 20% level as of March 31, 2016. Additionally, CBT Nuggets, LLC, an unconsolidated portfolio company that was a Control Investment, but which was not majority-owned by Main Street, was also considered a significant subsidiary at the 20% level as of March 31, 2016.

The following table shows the summarized financial information for CBT Nuggets, LLC:

	As of March 31,		As of December 31,		As of March 31,		As of December 31,

	2017		2016		2018		2017
	(dollars in thousands)				(dollars in thousands)
Balance Sheet Data
Current Assets	$	10,789	$	7,275	$	11,174	$	14,585
Noncurrent Assets		12,266		13,610		11,601		11,769
Current Liabilities		18,201		17,883		16,853		17,570
Noncurrent Liabilities		—		—		—		—

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MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements (Continued)

(Unaudited)

~~NOTE C—FAIR VALUE HIERARCHY FOR INVESTMENTS AND DEBENTURES—PORTFOLIO COMPOSITION (Continued)~~

Three Months
Ended
March 31,

2017 2016

(dollars in
thousands)

Summary of Operations

Total Revenue
$ 10,356 $ 9,080
Gross Profit
9,218 7,882
Income from Operations
3,524 3,135
Net Income
3,853 3,264

~~The following table shows the summarized financial information for GRT Rubber Technologies LLC:~~

As of
March 31, As of
December 31,

2017 2016

(dollars in
thousands)

Balance Sheet Data

Current Assets
$ 9,308 $ 8,326
Noncurrent Assets
31,209 32,106
Current Liabilities
4,408 2,941
Noncurrent Liabilities
18,250 18,562

	Three Months Ended March 31,						Three Months Ended March 31,

	2017			2016			2018		2017
	(dollars in thousands)						(dollars in thousands)
Summary of Operations
Total Revenue	$	6,931		$	7,000		$	9,903	$	10,356
Gross Profit		1,553			1,694			8,951		9,218
Income from Operations		402			613			1,820		3,524
Net Income		(211	)		(61	)		2,741		3,853

NOTE D—EXTERNAL INVESTMENT MANAGER

As discussed further in Note A.1., 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.

During May 2012, Main Street entered into an investment sub-advisory agreement with HMS Adviser, LP ("HMS Adviser"), which is the investment advisor to HMS Income, a non-listed BDC, to

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~~MAIN STREET CAPITAL CORPORATION~~

~~Notes to Consolidated Financial Statements (Continued)~~

~~(Unaudited)~~

~~NOTE D—EXTERNAL INVESTMENT MANAGER (Continued)~~

provide certain investment advisory services to HMS Adviser. In December 2013, after obtaining required no-action relief from the SEC to allow it to own a registered investment adviser, Main Street assigned the sub-advisory agreement to the External Investment Manager since the fees received from such arrangement could otherwise have negative consequences on MSCC's ability to meet the source-of-income requirement necessary for it to maintain its RIC tax treatment. Under the investment sub-advisory agreement, the External Investment Manager is entitled to 50% of the base management fee and the incentive fees earned by HMS Adviser under its advisory agreement with HMS Income. Based upon several fee waiver agreements with HMS Income and HMS Adviser, the External Investment Manager did not begin accruing the base management fee and incentive fees, if any, until January 1, 2014. The External Investment Manager has conditionally agreed to waive a limited amount of the historical incentive fees otherwise earned. During the three months ended March 31, ~~2017~~2018 and ~~2016,~~2017, the External Investment Manager earned ~~$2.6~~$2.8 million and ~~$2.3~~$2.6 million, respectively, of management fees (net of fees waived, if any) under the sub-advisory agreement with HMS Adviser.

The investment in the External Investment Manager is accounted for using fair value accounting, with the fair value determined by Main Street and approved, in good faith, by Main Street's Board of Directors. 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.). Any change in fair value of the investment in the External Investment Manager is recognized on Main Street's consolidated ~~statement~~statements of operations in "Net ~~Change in~~ Unrealized Appreciation (Depreciation)—Portfolio investments."

The External Investment Manager ~~has elected,~~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 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 financial reporting purposes ~~to be~~the External Investment Manager is treated as ~~a taxable entity, is not consolidated with Main Street for income tax purposes and~~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~~Main Street owns the External Investment Manager ~~has elected to be treated as a taxable entity to enable it to receive fee income and~~through the Taxable Subsidiary to allow MSCC to continue to comply with the ~~"source-income"~~

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MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements (Continued)

(Unaudited)

"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. ~~The~~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. For the three months ended March 31, ~~2017~~2018 and ~~2016,~~2017, Main Street allocated ~~$1.5~~$2.1 million and ~~$1.2~~$1.5 million of total expenses, respectively, to the External Investment Manager. 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 received from the External Investment Manager. For the three months ended March 31, ~~2017~~2018 and ~~2016,~~2017, the total contribution to Main Street's net investment income was $2.6 million and $2.2 million, respectively.

Summarized financial information from the separate financial statements of the External Investment Manager as of March 31, 2018 and ~~$1.9 million, respectively.~~December 31, 2017 and for the three months ended March 31, 2018 and 2017 is as follows:

	As of March 31,		As of December 31,

	2018		2017
	(dollars in thousands)
Cash	$	—	$	—
Accounts receivable—HMS Income		2,838		2,863

Total assets	$	2,838	$	2,863



Accounts payable to MSCC and its subsidiaries	$	2,265	$	1,963
Dividend payable to MSCC and its subsidiaries		573		900
Equity		—		—

Total liabilities and equity	$	2,838	$	2,863

	Three Months Ended March 31,

	2018			2017
Management fee income	$	2,816		$	2,620
Expenses allocated from MSCC or its subsidiaries:
Salaries, share-based compensation and other personnel costs		(1,353	)		(919	)
Other G&A expenses		(713	)		(605	)

Total allocated expenses		(2,066	)		(1,524	)

Pre-tax income		750			1,096
Tax expense		(177	)		(402	)

Net income	$	573		$	694

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MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements (Continued)

(Unaudited)

NOTE ~~D—EXTERNAL INVESTMENT MANAGER (Continued)~~

Summarized financial information from the separate financial statements of the External Investment Manager as of March 31, 2017 and December 31, 2016 and for the three months ended March 31, 2017 and 2016 is as follows:

As of
March 31, As of
December 31,

2017 2016

(dollars in thousands)

Cash
$ — $ —
Accounts receivable—HMS Income
2,588 2,496

Total assets
$ 2,588 $ 2,496

Accounts payable to MSCC and its subsidiaries
$ 1,350 $ 1,635
Dividend payable to MSCC
694 719
Taxes payable
544 142
Equity
— —

Total liabilities and equity
$ 2,588 $ 2,496

Three Months
Ended
March 31,

2017 2016
Management fee income
$ 2,620 $ 2,251
Expenses allocated from MSCC or its subsidiaries:

Salaries, share-based compensation and other personnel costs
(919 ) (728 )
Other G&A expenses
(605 ) (426 )

Total allocated expenses
(1,524 ) (1,154 )

Pre-tax income
1,096 1,097
Tax expense

(402
)
(399
)

Net income
$ 694 $ 698

~~NOTE~~ E—SBIC DEBENTURES

~~Due to each of the Funds' status as a licensed~~Under existing SBIC ~~Main Street has~~regulations, SBA approved SBICs under common control have the ability to issue ~~through the Funds,~~ debentures guaranteed by the SBA up to a regulatory maximum amount of $350.0 million. Main Street, through the funds, has an effective maximum amount of $346.0 million ~~through its three~~following the prepayment of $4.0 million of existing SBIC ~~licenses.~~debentures as discussed below. SBIC debentures payable were ~~$240.2~~$313.8 million and ~~$240.0~~$295.8 million at March 31, ~~2017~~2018 and December 31, ~~2016,~~2017, respectively. SBIC debentures provide for interest to be paid semiannually, with principal due at the applicable 10-year maturity date of each debenture. During the three months ended March 31, ~~2017,~~2018, Main Street issued ~~$25.4~~$22.0 million of SBIC debentures and opportunistically prepaid ~~$25.2~~$4.0 million of existing SBIC debentures as part of an effort to manage the maturity dates of the oldest SBIC debentures, leaving ~~$109.8~~$32.2 million of ~~additional~~remaining capacity under Main Street's SBIC ~~licenses as of March 31, 2017.~~licenses. As a result of this prepayment, Main Street recognized a realized loss of ~~$5.2~~$1.4 million due to the previously recognized gain recorded as a result of recording the

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Notes to Consolidated Financial Statements (Continued)~~

~~(Unaudited)~~

~~NOTE E—SBIC DEBENTURES (Continued)~~

MSC II debentures at fair value on the date of the acquisition of the majority interests of MSC II. The effect of the realized loss is offset by the reversal of all previously recognized unrealized depreciation due to fair value adjustments since the date of the acquisition. Main Street expects to issue new SBIC debentures under the SBIC program in the future in an amount up to the regulatory maximum amount ~~of $350.0 million~~ for affiliated SBIC funds. The weighted-average annual interest rate on the SBIC debentures was ~~3.8%~~3.7% and ~~4.1%~~3.6% as of March 31, ~~2017~~2018 and December 31, ~~2016,~~2017, respectively. The first principal maturity due under the existing SBIC debentures is in 2019, and the weighted-average remaining duration as of March 31, ~~2017~~2018 was approximately ~~5.7~~5.9 years. For ~~each of~~ the three months ended March 31, ~~2017~~2018 and ~~2016,~~2017, Main Street recognized interest expense attributable to the SBIC debentures of $2.9 million and $2.5 ~~million.~~million, respectively. Main Street has incurred upfront leverage and other miscellaneous fees of approximately 3.4% of the debenture principal amount. In accordance with SBA regulations, the Funds are precluded from incurring additional non-SBIC debt without the prior approval of the SBA.

As of March 31, ~~2017,~~2018, the recorded value of the SBIC debentures was ~~$239.4~~$306.2 million which consisted of (i) ~~$49.2~~$44.6 million recorded at fair value, or ~~$0.8~~$1.4 million less than the ~~$50.0~~$46.0 million par value of the SBIC debentures issued in MSC II, (ii) $149.8 million ~~recorded at~~ par value ~~and~~of SBIC debentures outstanding held in MSMF, with a recorded value of $147.6 million that was net of unamortized debt issuance costs of $2.2 million and (iii) ~~$40.4~~$118.0 million ~~recorded at~~ par value ~~and~~of SBIC debentures held in MSC ~~III.~~III with a recorded value of $113.9 million that was net of unamortized debt issuance costs of $4.1 million. As of March 31, ~~2017,~~2018, if Main Street had adopted the fair value option under ASC 825 for all of its SBIC debentures, Main Street estimates the fair value of its SBIC debentures would be approximately ~~$228.4~~$281.6 million, or ~~$11.8~~$32.2 million less than the ~~$240.2~~$313.8 million face value of the SBIC debentures.

NOTE F—CREDIT FACILITY

Main Street maintains the Credit Facility to provide additional liquidity to support its investment and operational activities. The Credit Facility includes total commitments of ~~$555.0~~$585.0 million from a diversified group of ~~fourteen lenders and~~fifteen lenders. The Credit Facility matures in September ~~2021. The Credit Facility also~~2021 and contains an accordion feature which allows Main Street to increase the total commitments under the facility to up to $750.0 million from new and existing lenders on the same terms and conditions as the existing commitments.

Borrowings under the Credit Facility bear interest, subject to Main Street's election, on a per annum basis at a rate equal to the applicable LIBOR rate ~~(0.98%~~(1.88% as of March 31, ~~2017)~~2018) plus

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MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements (Continued)

(Unaudited)

(i) 1.875% (or the applicable base rate (Prime Rate of ~~4.00%~~4.75% as of March 31, ~~2017)~~2018) plus 0.875%) as long as Main Street maintains an investment grade rating and meets certain agreed upon excess collateral and maximum leverage requirements, (ii) 2.0% (or the applicable base rate plus 1.0%) if Main Street maintains an investment grade rating but does not meet certain excess collateral and maximum leverage requirements or (iii) 2.25% (or the applicable base rate plus 1.25%) if Main Street does not maintain an investment grade rating. Main Street pays unused commitment fees of 0.25% per annum on the unused lender commitments under the Credit Facility. The Credit 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. The Credit Facility contains certain affirmative and negative covenants, including but not limited to: (i) maintaining a minimum availability of at least 10% of the borrowing base, (ii) maintaining an interest coverage ratio of at least 2.0 to 1.0, (iii) maintaining an asset coverage ratio of at least 1.5 to 1.0 and (iv) maintaining a minimum tangible net worth. The Credit Facility is provided on a revolving basis through its final maturity date in September 2021, and

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Notes to Consolidated Financial Statements (Continued)~~

~~(Unaudited)~~

~~NOTE F—CREDIT FACILITY (Continued)~~

contains two, one-year extension options which could extend the final maturity by up to two years, subject to certain conditions, including lender approval.

At March 31, ~~2017,~~2018, Main Street had ~~$288.0~~$188.0 million in borrowings outstanding under the Credit Facility. As of March 31, ~~2017,~~2018, if Main Street had adopted the fair value option under ASC 825 for its Credit Facility, Main Street estimates its fair value would approximate its recorded value. Main Street recognized interest expense related to the Credit Facility, including unused commitment fees and amortization of deferred ~~loan~~issuance costs, of ~~$2.5~~$1.5 million and ~~$2.1~~$2.5 million, respectively, for the three months ended March 31, ~~2017~~2018 and ~~2016.~~2017. As of March 31, ~~2017,~~2018, the interest rate on the Credit Facility was ~~2.7%~~3.5%. The average interest rate for the three months ended March 31, ~~2017~~2018 was ~~2.7%~~3.5%. As of March 31, ~~2017,~~2018, Main Street was in compliance with all financial covenants of the Credit Facility.

NOTE G—NOTES

6.125% Notes

In April 2013, Main Street issued $92.0 million, including the underwriters full exercise of their option to purchase additional principal amounts to cover over-allotments, in aggregate principal amount of 6.125% Notes due 2023 (the "6.125% Notes"). The 6.125% Notes are unsecured obligations and rank pari passu with Main Street's current and future unsecured indebtedness; senior to any of its future indebtedness that expressly provides it is subordinated to the 6.125% Notes; effectively subordinated to all of its existing and future secured indebtedness, to the extent of the value of the assets securing such indebtedness, including borrowings under its Credit Facility; and structurally subordinated to all existing and future indebtedness and other obligations of any of its subsidiaries, including without limitation, the indebtedness of the Funds. The 6.125% Notes mature on April 1, 2023, and may be redeemed in whole or in part at any time or from time to time at Main Street's option on or after April 1, 2018. On March 1, 2018, Main Street announced its intent to redeem the 6.125% Notes on April 1, 2018. The 6.125% Notes bear interest at a rate of 6.125% per year payable quarterly on January 1, April 1, July 1 and October 1 of each year. The total net proceeds to Main Street from the 6.125% Notes, after underwriting discounts and estimated offering expenses payable, ~~by Main Street,~~ were approximately $89.0 million. Main Street ~~has~~ listed the 6.125% Notes on the New York Stock Exchange under the trading symbol "MSCA." Main Street ~~may~~maintained the right from time to time repurchase the 6.125% Notes in accordance with the 1940 Act and the rules promulgated thereunder. As of March 31, ~~2017,~~2018, the outstanding balance of the 6.125% Notes was $90.7 million and the recorded value of $89.1 million was net of unamortized debt issuance costs of $1.5 million. As of March 31, ~~2017,~~

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MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements (Continued)

(Unaudited)

2018, if Main Street had adopted the fair value option under ASC 825 for the 6.125% Notes, Main Street estimates the fair value would be approximately ~~$94.3~~$91.5 million. Main Street recognized interest expense related to the 6.125% Notes, including amortization of unamortized deferred ~~loan~~issuance costs, of $1.5 million for each of the three months ended March 31, ~~2017~~2018 and ~~2016.~~2017.

The indenture governing the 6.125% Notes (the "6.125% Notes Indenture") contains certain covenants, including covenants requiring Main Street's compliance with (regardless of whether Main Street is subject to) the asset coverage requirements set forth in Section 18(a)(1)(A) as modified by Section 61(a)(1) of the 1940 Act, as well as covenants requiring Main Street to provide financial information to the holders of the 6.125% Notes and the Trustee if Main Street ceases to be subject to the reporting requirements of the Securities Exchange Act of 1934. These covenants are subject to limitations and exceptions that are described in the 6.125% Notes Indenture. As of March 31, ~~2017,~~2018, Main Street was in compliance with these covenants.

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~~MAIN STREET CAPITAL CORPORATION~~

~~Notes to Consolidated Financial Statements (Continued)~~

~~(Unaudited)~~

~~NOTE G—NOTES (Continued)~~

4.50% Notes due 2019

In November 2014, Main Street issued $175.0 million in aggregate principal amount of 4.50% unsecured notes due 2019 (the "4.50% ~~Notes"~~Notes due 2019") at an issue price of 99.53%. The 4.50% Notes due 2019 are unsecured obligations and rank pari passu with Main Street's current and future unsecured indebtedness; senior to any of its future indebtedness that expressly provides it is subordinated to the 4.50% ~~Notes;~~Notes due 2019; effectively subordinated to all of its existing and future secured indebtedness, to the extent of the value of the assets securing such indebtedness, including borrowings under its Credit Facility; and structurally subordinated to all existing and future indebtedness and other obligations of any of its subsidiaries, including without limitation, the indebtedness of the Funds. The 4.50% Notes due 2019 mature on December 1, 2019, and may be redeemed in whole or in part at any time at Main Street's option subject to certain make-whole provisions. The 4.50% Notes due 2019 bear interest at a rate of 4.50% per year payable semiannually on June 1 and December 1 of each year. The total net proceeds from the 4.50% Notes due 2019, resulting from the issue price and after underwriting discounts and estimated offering expenses payable, ~~by us,~~ were approximately $171.2 million. Main Street may from time to time repurchase the 4.50% Notes due 2019 in accordance with the 1940 Act and the rules promulgated thereunder. As of March 31, ~~2017,~~2018, the outstanding balance of the 4.50% Notes due 2019 was $175.0 million and the recorded value of $173.8 million was net of unamortized debt issuance costs of $1.2 million. As of March 31, ~~2017,~~2018, if Main Street had adopted the fair value option under ASC 825 for the 4.50% Notes due 2019, Main Street estimates its fair value would be approximately ~~$176.1~~$176.6 million. Main Street recognized interest expense related to the 4.50% Notes due 2019, including amortization of unamortized deferred ~~loan~~issuance costs, of $2.1 million for each of the three months ended March 31, ~~2017~~2018 and ~~2016.~~2017.

The indenture governing the 4.50% Notes due 2019 (the "4.50% Notes due 2019 Indenture") contains certain covenants, including covenants requiring Main Street's compliance with (regardless of whether Main Street is subject to) the asset coverage requirements set forth in Section 18(a)(1)(A) as modified by Section 61(a)(1) of the 1940 Act, as well as covenants requiring Main Street to provide financial information to the holders of the 4.50% Notes due 2019 and the Trustee if Main Street ceases to be subject to the reporting requirements of the Securities Exchange Act of 1934. These covenants are subject to limitations and exceptions that are described in the 4.50% Notes due 2019 Indenture. As of March 31, 2018, Main Street was in compliance with these covenants.

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MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements (Continued)

(Unaudited)

4.50% Notes due 2022

In November 2017, Main Street issued $185.0 million in aggregate principal amount of 4.50% unsecured notes due 2022 (the "4.50% Notes due 2022") at an issue price of 99.16%. The 4.50% Notes due 2022 are unsecured obligations and rank pari passu with Main Street's current and future unsecured indebtedness; senior to any of its future indebtedness that expressly provides it is subordinated to the 4.50% Notes due 2022; effectively subordinated to all of its existing and future secured indebtedness, to the extent of the value of the assets securing such indebtedness, including borrowings under its Credit Facility; and structurally subordinated to all existing and future indebtedness and other obligations of any of its subsidiaries, including without limitation, the indebtedness of the Funds. The 4.50% Notes due 2022 mature on December 1, 2022, and may be redeemed in whole or in part at any time at Main Street's option subject to certain make-whole provisions. The 4.50% Notes due 2022 bear interest at a rate of 4.50% per year payable semiannually on June 1 and December 1 of each year. The total net proceeds from the 4.50% Notes due 2022, resulting from the issue price and after underwriting discounts and estimated offering expenses payable, were approximately $182.2 million. Main Street may from time to time repurchase the 4.50% Notes due 2022 in accordance with the 1940 Act and the rules promulgated thereunder. As of March 31, 2018, the outstanding balance of the 4.50% Notes due 2022 was $185.0 million and the recorded value of $182.2 million was net of unamortized debt issuance costs of $2.8 million. As of March 31, 2018, if Main Street had adopted the fair value option under ASC 825 for the 4.50% Notes due 2022, Main Street estimates its fair value would be approximately $184.1 million. Main Street recognized interest expense related to the 4.50% Notes due 2022, including amortization of unamortized deferred issuance costs, of $2.2 million for the three months ended March 31, 2018.

The indenture governing the 4.50% Notes due 2022 (the "4.50% Notes due 2022 Indenture") contains certain covenants, including covenants requiring Main Street's compliance with (regardless of whether Main Street is subject to) the asset coverage requirements set forth in Section 18(a)(1)(A) as modified by Section 61(a)(1) of the 1940 Act, as well as covenants requiring Main Street to provide financial information to the holders of the 4.50% Notes due 2022 and the Trustee if Main Street ceases to be subject to the reporting requirements of the Securities Exchange Act of 1934. These covenants are subject to limitations and exceptions that are described in the 4.50% Notes due 2022 Indenture. As of March 31, 2018, Main Street was in compliance with these covenants.

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MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements (Continued)

(Unaudited)

NOTE H—FINANCIAL HIGHLIGHTS

	Three Months Ended March 31,						Three Months Ended March 31,

	2017			2016			2018			2017
Per Share Data:
NAV at the beginning of the period	$	22.10		$	21.24		$	23.53		$	22.10
Net investment income(1)		0.57			0.54			0.63			0.57
Net realized gain (loss)(1)(2)		0.41			0.27
Net change in net unrealized depreciation(1)(2)		(0.30	)		(0.52	)
Net realized gain(1)(2)								0.10			0.41
Net unrealized depreciation(1)(2)								(0.16	)		(0.30	)
Income tax benefit (provision)(1)(2)		(0.11	)		0.04			0.02			(0.11	)

Net increase in net assets resulting from operations(1)		0.57			0.33			0.59			0.57
Dividends paid from net investment income		(0.21	)		(0.54	)		(0.57	)		(0.21	)
Distributions from capital gains		(0.35	)		—			—			(0.35	)

Total dividends paid		(0.56	)		(0.54	)		(0.57	)		(0.56	)
Accretive effect of stock offerings (issuing shares above NAV per share)		0.26			0.06			0.07			0.26
Accretive effect of DRIP issuance (issuing shares above NAV per share)		0.01			0.02			0.01			0.01
Other(3)		0.06			0.07			0.04			0.06

NAV at the end of the period	$	22.44		$	21.18		$	23.67		$	22.44



Market value at the end of the period	$	38.27		$	31.35		$	36.90		$	38.27
Shares outstanding at the end of the period		55,423,375			50,846,000			59,007,730			55,423,375

(1): Based on weighted-average number of common shares outstanding for the period.
(2): Net realized gains or losses, net ~~change in~~ unrealized appreciation or depreciation, and income taxes 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

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MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements (Continued)

(Unaudited)

~~NOTE H—FINANCIAL HIGHLIGHTS (Continued)~~

certain per share data based on the shares outstanding as of a period end or transaction date.

	Three Months Ended March 31,				Three Months Ended March 31,

	2017		2016		2018		2017
	(dollars in thousands)				(dollars in thousands)
NAV at end of period	$	1,243,934	$	1,076,998	$	1,396,600	$	1,243,934
Average NAV	$	1,222,708	$	1,073,946	$	1,388,484	$	1,222,708
Average outstanding debt	$	825,155	$	772,183	$	871,205	$	825,155
Ratio of total expenses, including income tax expense, to average NAV(1)(2)		1.83%		1.17%		1.30%		1.83%
Ratio of operating expenses to average NAV(2)(3)		1.37%		1.38%		1.37%		1.37%
Ratio of operating expenses, excluding interest expense, to average NAV(2)(3)		0.66%		0.62%		0.63%		0.66%
Ratio of net investment income to average NAV(2)		2.55%		2.53%		2.66%		2.55%
Portfolio turnover ratio(2)		8.97%		5.03%		7.11%		8.97%
Total investment return(2)(4)		5.64%		9.85%		–5.70%		5.64%
Total return based on change in NAV(2)(5)		2.62%		1.57%		2.50%		2.62%

(1): Total expenses are the sum of operating expenses and net income tax provision/benefit. Net income tax provision/benefit includes the accrual of net deferred tax provision/benefit relating to the net unrealized appreciation/depreciation on portfolio investments held in Taxable Subsidiaries and due to the change in the loss 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/benefit in calculating its total expenses even though these net deferred taxes are not currently payable/receivable.
(2): Not annualized.
(3): 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.
(4): 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.
(5): Total return is based on change in net asset value was calculated using the sum of ending net asset value plus dividends to stockholders and other non-operating changes during the period, as divided by the beginning net asset value. Non-operating changes include any items that affect net asset value 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.

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MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements (Continued)

(Unaudited)

NOTE I—DIVIDENDS, DISTRIBUTIONS AND TAXABLE INCOME

Main Street paid regular monthly dividends of ~~$0.185~~$0.19 per share for each month of January through March ~~2017,~~2018, totaling $33.5 million, or $0.57 per share, for the three months ended March 31, 2018. The first quarter 2018 regular monthly dividends represent a 2.7% increase from the regular monthly dividends paid for the first quarter of 2017. The regular monthly dividends equaled a total of approximately $30.4 million, or $0.555 per share, for the three months ended March 31, 2017. The first quarter 2017 regular monthly dividends represent a 2.8% increase from the regular monthly dividends paid per share for the first quarter of 2016. For the three months ended March 31, 2016, Main Street paid total regular monthly dividends of $27.2 million, or $0.540 per share.

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, 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 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.

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 capital gains, but may also include qualified dividends or return of capital.

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MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements (Continued)

(Unaudited)

~~NOTE I—DIVIDENDS, DISTRIBUTIONS AND TAXABLE INCOME (Continued)~~

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 three months ended March 31, ~~2017~~2018 and ~~2016.~~2017.

	Three Months Ended March 31,						Three Months Ended March 31,

	2017			2016			2018			2017
	(estimated, dollars in thousands)						(estimated, dollars in thousands)
Net increase in net assets resulting from operations	$	31,450		$	16,812		$	34,517		$	31,450
Book tax difference from share-based compensation expense		1,265			1,589			1,819			1,265
Net change in net unrealized depreciation		16,426			26,218
Net unrealized depreciation								9,523			16,426
Income tax provision (benefit)		5,638			(2,263	)		(979	)		5,638
Pre-tax book (income) loss not consolidated for tax purposes		(6,468	)		(12,365	)
Book income and tax income differences, including debt origination, structuring fees, dividends, realized gains (losses) and changes in estimates		4,373			(561	)
Pre-tax book income not consolidated for tax purposes								(13,350	)		(6,468	)
Book income and tax income differences, including debt origination, structuring fees, dividends, realized gains and changes in estimates								12,367			4,373

Estimated taxable income(1)		52,684			29,430			43,897			52,684
Taxable income earned in prior year and carried forward for distribution in current year		42,362			29,683			42,357			42,362
Taxable income earned prior to period end and carried forward for distribution next period		(74,695	)		(40,942	)		(63,938	)		(74,695	)
Dividend payable as of period end and paid in the following period		10,252			9,113			11,191			10,252

Total distributions accrued or paid to common stockholders	$	30,603		$	27,284		$	33,507		$	30,603

(1): Main Street's taxable income for each period is an estimate and will not be finally determined until the company 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 portfolio 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-income"~~"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 its book income, or loss, due to temporary book and tax timing differences and permanent differences. ~~This~~The Taxable Subsidiaries are each taxed at their normal corporate 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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MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements (Continued)

(Unaudited)

~~NOTE I—DIVIDENDS, DISTRIBUTIONS AND TAXABLE INCOME (Continued)~~

~~The~~ For the three months ended March 31, 2018, Main Street recognized a net income tax ~~expense, or~~ benefit ~~and~~of $1.0 million, principally consisting of a deferred tax benefit of $1.9 million, which is primarily the ~~related tax assets and liabilities generated by~~result of the net activity relating to the portfolio investments held in the Taxable Subsidiaries, ~~if any, are reflected~~including changes in the loss carryforwards, changes in net unrealized appreciation or depreciation and other temporary book-tax differences, and a $0.9 million current tax expense, which is primarily related to a $0.4 million accrual for excise tax on Main Street's ~~consolidated statement of operations.~~estimated undistributed taxable income and $0.5 million provision for current U.S. federal income and state taxes. For the three months ended March 31, 2017, Main Street recognized a net income tax provision of $5.6 million, principally consisting of a deferred tax provision of $4.4 million, which is primarily the result of the net activity relating to the portfolio investments held in the Taxable Subsidiaries, including changes in the loss carryforwards, changes in net unrealized appreciation or depreciation and other temporary book-tax differences, ~~as well as~~and a $1.3 million current tax expense, which is primarily related to a $0.9 million accrual for excise tax on Main Street's estimated undistributed taxable income, and $0.4 million provision for current U.S. federal income and state taxes. 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 financial statements. For the three months ended March 31, 2016, Main Street recognized a net income tax benefit of $2.3 million, principally consisting of a deferred tax benefit of $2.6 million which is primarily the result of the net activity relating to the portfolio investments held in the Taxable Subsidiaries including changes in net operating loss carryforwards, changes in net unrealized appreciation or depreciation and other temporary book-tax differences, partially offset by a $0.4 million provision for other current taxes which is primarily related to a $0.3 million provision for current U.S. federal income and state taxes, and a $0.1 million accrual for excise tax on Main Street's estimated spillover taxable income.

The net deferred tax ~~asset~~liability at March 31, ~~2017 and~~2018 was $8.7 million compared to $10.6 million at December 31, ~~2016 was $4.7 million and $9.1 million, respectively,~~2017, primarily related to loss carryforwards, timing differences in net unrealized appreciation or depreciation and other temporary book-tax differences relating to portfolio investments held by the Taxable Subsidiaries. ~~In addition, during the three months ended March 31, 2016, Main Street recorded a one-time $1.8 million increase to~~The net deferred tax ~~assets for previously unrecognized excess~~liability as of December 31, 2017 equal to $10.6 million reflects a reduction of $2.8 million resulting from the decrease in the U.S. federal corporate income tax ~~benefits associated with share-based compensation due~~rate from 35% to 21% as enacted by the ~~early adoption of the new accounting standard ASU 2016-09~~Tax Cuts and Jobs Act (See further discussion in Note ~~B.7.~~B.9.). During the quarter ended March 31, 2017, the Taxable Subsidiaries utilized capital loss carryforwards totaling approximately $8.0 million. As of March 31, 2017, for U.S. federal income tax purposes, the Taxable Subsidiaries had a capital loss carryforward of $6.6 million which, if unused, will expire in taxable year 2021. At March 31, ~~2017,~~2018, 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 2029 through 2037. Under the Tax Cuts and Jobs Act, any net operating losses generated in 2018 and future periods will have an indefinite carryforward. The timing and manner in which Main Street will utilize any loss carryforwards ~~in any year, or in total,~~generated before December 31, 2017 may be limited in the future under the provisions of the Code.

NOTE J—COMMON STOCK

~~During November 2015,~~ Main Street ~~commenced~~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 three months ended March 31, ~~2017,~~2018, Main Street sold ~~1,035,286~~308,678 shares of its common stock at a weighted-average price of ~~$36.86~~$37.27 per share and raised ~~$38.2~~$11.5 million of gross proceeds under the ATM Program. Net proceeds were ~~$37.7~~$11.3 million after commissions to the selling agents on shares sold and offering costs. As of March 31, ~~2017, 499,500 shares were available for sale under the ATM Program.~~

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Notes to Consolidated Financial Statements (Continued)~~

~~(Unaudited)~~

~~NOTE J—COMMON STOCK (Continued)~~

During the year ended December 31, 2016, Main Street sold 3,324,646 shares of our common stock at a weighted-average price of $34.17 per share and raised $113.6 million of gross proceeds under the ATM Program. Net proceeds were $112.0 million after commissions to the selling agents on shares sold and offering costs. As of December 31, 2016,2018, sales transactions representing ~~42,413~~20,400 shares had not settled and ~~were~~are not included in shares issued and outstanding on the face of the consolidated balance sheet, but ~~were~~are included in the weighted-average shares outstanding in the consolidated statement of operations and in the shares used to calculate net asset value per share. As of March 31, 2018, there were 1,602,678 shares available for sale under the ATM Program.

During the year ended December 31, 2017, Main Street sold 3,944,972 shares of its common stock at a weighted-average price of $38.72 per share and raised $152.8 million of gross proceeds under the ATM Program. Net proceeds were $150.9 million after commissions to the selling agents on shares sold and offering costs. As of December 31, 2017, 1,911,356 shares remained available for sale under the ATM Program.

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MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements (Continued)

(Unaudited)

NOTE K—DIVIDEND REINVESTMENT PLAN ("DRIP")

Main Street's 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, the company's 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. 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.

For the three months ended March 31, 2018, $1.6 million of the total $33.5 million in dividends paid to stockholders represented DRIP participation. During this period, the DRIP participation requirements were satisfied with the issuance of 42,423 newly issued shares. For the three months ended March 31, 2017, $1.8 million of the total $30.4 million in dividends paid to stockholders represented DRIP participation. During this period, the DRIP participation requirements were satisfied with the issuance of 48,675 newly issued shares. For the three months ended March 31, 2016, $3.3 million of the total $27.2 million in dividends paid to stockholders represented DRIP participation. During this period, the DRIP participation requirements were satisfied with the issuance of 113,631 newly issued shares. The shares disclosed above relate only to Main Street's DRIP and exclude any activity related to broker-managed dividend reinvestment plans.

NOTE L—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 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 2015 Equity and Incentive Plan (the "Equity and Incentive Plan"). These shares generally vest over a three-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

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Notes to Consolidated Financial Statements (Continued)~~

~~(Unaudited)~~

~~NOTE L—SHARE-BASED COMPENSATION (Continued)~~

Equity and Incentive Plan, net of shares forfeited, if any, and the remaining shares of restricted stock available for issuance as of March 31, ~~2017.~~2018.


Restricted stock authorized under the plan	3,000,000
Less net restricted stock granted ~~net of forfeited shares,~~ during:
Year ended December 31, 2015	(900	)
Year ended December 31, 2016	(260,514	)
~~Three months~~Year ended ~~March~~December 31, 2017	~~2,771~~(223,812	)

Restricted stock available for issuance as of March 31, ~~2017~~2018	~~2,741,357~~2,514,774

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MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements (Continued)

(Unaudited)

As of March 31, ~~2017,~~2018, 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 2015 Non-Employee Director Restricted Stock Plan. These shares are granted upon appointment or election to 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 plan	300,000
Less net restricted stock granted during:
Year ended December 31, 2015	(6,806	)
Year ended December 31, 2016	(6,748	)
Year ended December 31, 2017	(5,948	)

Restricted stock available for issuance as of March 31, ~~2017~~2018	~~286,446~~280,498

For each of the three months ended March 31, ~~2017~~2018 and ~~2016,~~2017, Main Street recognized total share-based compensation expense of $2.3 million, ~~and $1.6 million, respectively,~~ related to the restricted stock issued to Main Street employees and non-employee directors.

As of March 31, ~~2017,~~2018, there was ~~$9.7~~$8.5 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 approximately ~~1.5~~1.6 years as of March 31, ~~2017.~~2018.

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MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements (Continued)

(Unaudited)

NOTE M—COMMITMENTS AND CONTINGENCIES

At March 31, ~~2017,~~2018, Main Street had the following outstanding commitments (in thousands):

Investments with equity capital commitments that have not yet funded:
Amount
Congruent Credit Opportunities Funds

Congruent Credit Opportunities Fund II, LP
$ 8,488
Congruent Credit Opportunities Fund III, LP
12,131

$ 20,619
Encap Energy Fund Investments

EnCap Energy Capital Fund VIII, L.P.
$ 510
EnCap Energy Capital Fund VIII Co-Investors, L.P.
27
EnCap Energy Capital Fund IX, L.P.
1,093
EnCap Energy Capital Fund X, L.P.
6,789
EnCap Flatrock Midstream Fund II, L.P.
5,502
EnCap Flatrock Midstream Fund III, L.P.
4,785

$ 18,706
Freeport Fund Investments

Freeport First Lien Loan Fund III LP
$ 6,539
Freeport Financial SBIC Fund LP
1,375

$ 7,914
Brightwood Capital Fund Investments

Brightwood Capital Fund III, LP
$ 3,000
Brightwood Capital Fund IV, LP
4,500

$ 7,500
I-45 SLF LLC

$
1,800
EIG Fund Investments

$
3,595
LKCM Headwater Investments I, L.P.

$
2,500
Dos Rios Partners

Dos Rios Partners, LP
$ 1,594
Dos Rios Partners - A, LP
506

$ 2,100

Total equity commitments
$ 64,734

	Amount

Investments with equity capital commitments that have not yet funded:
Congruent Credit Opportunities Funds
Congruent Credit Opportunities Fund II, LP	$	8,488
Congruent Credit Opportunities Fund III, LP		12,131

	$	20,619
Encap Energy Fund Investments
EnCap Energy Capital Fund VIII, L.P.	$	469
EnCap Energy Capital Fund IX, L.P.		556
EnCap Energy Capital Fund X, L.P.		3,254
EnCap Flatrock Midstream Fund II, L.P.		6,470
EnCap Flatrock Midstream Fund III, L.P.		4,516

	$	15,265
Brightwood Capital Fund Investments
Brightwood Capital Fund III, LP	$	3,000
Brightwood Capital Fund IV, LP		4,000

	$	7,000
Freeport Fund Investments
Freeport First Lien Loan Fund III LP	$	3,942
Freeport Financial SBIC Fund LP		1,375

	$	5,317
EIG Fund Investments	$	4,649
Harris Preston Fund Investments
HPEP 3, L.P.	$	3,967
LKCM Headwater Investments I, L.P.	$	2,931
Copper Trail Energy Fund I, LP	$	2,500
Dos Rios Partners
Dos Rios Partners, LP	$	1,594
Dos Rios Partners—A, LP		506

	$	2,100
I-45 SLF LLC	$	800
Access Media Holdings, LLC	$	675

Total equity commitments	$	65,823

Table of Contents

MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements (Continued)

(Unaudited)

~~NOTE M—COMMITMENTS AND CONTINGENCIES (Continued)~~


			Amount
Investments with commitments to fund revolving loans that have not been fully drawn or term loans with additional commitments not yet funded:
NNE Partners, LLC	$	10,208
California Splendor Holdings LLC			$	8,270
Resolute Industrial, LLC				5,750
Hunter Defense Technologies, Inc.				5,168
Radiology Partners, Inc.				5,254
NexRev LLC				4,000
PT Network, LLC		8,775		3,618
Hojeij Branded Foods, LLC				3,422
Arcus Hunting LLC		4,336		3,132
CDHA Management, LLC		3,523		2,343
Charps, LLC		3,200
Strike, LLC		2,500
Mid-Columbia Lumber Products, LLC		2,000
Hojeij Branded Foods, LLC		1,643
CapFusion, LLC		1,600
Wireless Vision Holdings, LLC				2,068
NNE Partners, LLC				2,042
Barfly Ventures, LLC				1,838
Felix Investments Holdings II				1,667
Hawk Ridge Systems, LLC		1,600		1,600
Subsea Global Solutions, LLC		1,428
Meisler Operating LLC				1,600
Market Force Information, LLC				1,600
Chamberlin Holding LLC				1,600
Direct Marketing Solutions, Inc.				1,600
Aethon United BR LP				1,563
IDX Broker, LLC				1,500
Lamb Ventures, LLC				1,500
Messenger, LLC		1,417		1,417
LaMi Products, LLC		1,397
TGP Holdings III LLC				1,255
Gamber-Johnson Holdings, LLC		1,200		1,200
NuStep, LLC		1,200		1,200
Barfly Ventures, LLC		919
Apex Linen Service, Inc.		800
Mystic Logistics Holdings, LLC		800
Grace Hill, LLC		776
Lamb Ventures, LLC		695
Pardus Oil and Gas, LLC		663
Boccella Precast Products LLC				1,142
KBK Industries, LLC				925
CTVSH, PLLC				800
NRI Clinical Research, LLC		600		600
Jackmont Hospitality, Inc.		593
ATS Workholding, LLC				523
PPC/SHIFT LLC		500		500
UniTek Global Services, Inc.				483
Clad-Rex Steel, LLC				400
Gulf Publishing Holdings, LLC				400
Jensen Jewelers of Idaho, LLC		500		350
UniTek Global Services, Inc.		483
Permian Holdco 2, Inc.		116
OnAsset Intelligence, Inc.				225
BigName Commerce, LLC				101
BBB Tank Services, LLC				80

Total loan commitments	$	53,472	$	72,736

Total commitments	$	118,206	$	138,559

Table of Contents

MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements (Continued)

(Unaudited)

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 Facility). 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 total unrealized depreciation of $0.1 million on the outstanding unfunded commitments as of March 31, ~~2017.~~2018.

Main Street has an operating lease for ~~its~~ office ~~space in Houston, Texas.~~space. Total rent expense incurred by Main Street for ~~each of~~ the three months ended March 31, 2018 and 2017 was $0.2 million and ~~2016 was~~ $0.1 ~~million.~~

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Notes to Consolidated Financial Statements (Continued)~~

~~(Unaudited)~~

~~NOTE M—COMMITMENTS AND CONTINGENCIES (Continued)~~million, respectively.

The following table shows future minimum payments under Main Street's operating lease as of March 31, ~~2017:~~2018:

For the Years Ended December 31,	Amount		Amount

2017	$	46
2018		683	$	346
2019		749		749
2020		763		763
2021		777		777
2022				791
Thereafter		4,959		4,239

Total	$	7,977	$	7,665

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.

NOTE N—RELATED PARTY TRANSACTIONS

As discussed further in Note D, the External Investment Manager is treated as a wholly owned portfolio company of MSCC and is included as part of Main Street's Investment Portfolio. At March 31, ~~2017,~~2018, Main Street had a receivable of approximately ~~$2.0~~$2.8 million due from the External Investment Manager which included (i) approximately ~~$1.3~~$2.3 million related primarily to operating expenses incurred by MSCC or its subsidiaries 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) and (ii) approximately ~~$0.7~~$0.6 million of dividends declared but not paid by the External Investment Manager.

In November 2015, Main Street's Board of Directors approved and adopted the Main Street Capital Corporation Deferred Compensation Plan (the "2015 Deferred Compensation Plan"). The 2015 Deferred Compensation Plan became effective on January 1, 2016 and replaced the Deferred Compensation Plan for Non-Employee Directors previously adopted by the Board of Directors in June 2013 (the "2013 Deferred Compensation Plan"). Under the 2015 Deferred Compensation Plan, 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. Individuals participating in the 2015

Table of Contents

MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements (Continued)

(Unaudited)

Deferred Compensation Plan receive distributions of their respective balances based on predetermined payout schedules or other events as defined by the plan and are also able to direct investments made on their behalf among investment alternatives permitted from time to time under the plan, including phantom Main Street stock units. As of March 31, ~~2017, $2.8~~2018, $4.8 million of compensation and directors' fees had been deferred under the 2015 Deferred Compensation Plan (including amounts previously deferred under the 2013 Deferred Compensation Plan). Of this amount, ~~$1.7~~$2.5 million was deferred into phantom Main Street stock units, representing ~~55,938~~74,503 shares of Main Street's common stock. Including phantom stock units issued through dividend reinvestment, the phantom stock units outstanding as of

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Notes to Consolidated Financial Statements (Continued)~~

~~(Unaudited)~~

~~NOTE N—RELATED PARTY TRANSACTIONS (Continued)~~

March 31, ~~2017~~2018 represented ~~65,882~~90,411 shares of Main Street's common stock. Any amounts deferred under the plan represented by phantom Main Street stock units will not be issued or included as outstanding on the consolidated ~~statement~~statements of changes in net assets until such shares are actually distributed to the participant in accordance with the plan, but are included in operating expenses and weighted-average shares outstanding in Main Street's consolidated ~~statement~~statements of operations as earned.

NOTE O—SUBSEQUENT EVENTS

In April 2018, Main Street made a new portfolio investment to facilitate the minority recapitalization of DPI, Inc. ("DPI"), a leading designer, developer, and distributor of a broad assortment of consumer electronics to national retailers under several proprietary brands. Main Street, along with a co-investor, partnered with DPI's management team to facilitate the transaction, with Main Street funding $35.2 million in a combination of first-lien, senior secured term debt and a direct equity investment. Headquartered in St. Louis, Missouri, DPI offers consumer electronics products designed for value-conscious consumers.

In April 2018, Main Street redeemed the entire principal amount of the issued and outstanding 6.125% Notes effective April 1, 2018 (the "Redemption Date"). The 6.125% Notes were redeemed at par value, plus the accrued and unpaid interest thereon from January 1, 2018, through, but excluding, the Redemption Date. As part of the redemption, Main Street recognized a realized loss of $1.5 million in the second quarter related to the write-off of any remaining unamortized deferred financing costs.

During April ~~2017,~~2018, Main Street declared a semi-annual supplemental cash dividend of $0.275 per share payable in June ~~2017.~~2018. This supplemental cash dividend is in addition to the previously announced regular monthly cash dividends that Main Street declared for the second quarter of ~~2017~~2018 of ~~$0.185~~$0.19 per share for each of April, May and June ~~2017.~~2018.

InDuring May ~~2017,~~2018, Main Street declared regular monthly dividends of ~~$0.185~~$0.19 per share for each month of July, August and September of ~~2017.~~2018. These regular monthly dividends equal a total of ~~$0.555~~$0.57 per share for the third quarter of ~~2017~~2018 and represent a ~~2.8%~~2.7% increase from the regular monthly dividends declared for the third quarter of ~~2016.~~2017. Including the semi-annual supplemental dividend declared for June ~~2017~~2018 and the regular monthly dividends declared for the second and third quarters of ~~2017,~~2018, Main Street will have paid ~~$20.545~~$23.375 per share in cumulative dividends since its October 2007 initial public offering.

Table of Contents

Schedule 12-14

~~Schedule 12-14~~

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments in and Advances to Affiliates
~~Three Months Ended~~ March 31, ~~2017~~2018
(dollars in thousands)
(unaudited)

Company	Investment(1)	Amount of Interest, Fees or Dividends Credited to Income(2)		December 31, 2016 Fair Value		Gross Additions(3)		Gross Reductions(4)		March 31, 2017 Fair Value		Investment(1)(5)	Amount of Realized Gain/(Loss)		Amount of Unrealized Gain/(Loss)			Amount of Interest, Fees or Dividends Credited to Income(2)		December 31, 2017 Fair Value		Gross Additions(3)		Gross Reductions(4)		March 31, 2018 Fair Value

Majority-owned investments
Café Brazil, LLC	Member Units	$	52	$	6,040	$	—	$	140	$	5,900	Member Units	$	—	$	—		$	87	$	4,900	$	—	$	—	$	4,900

California Splendor Holdings LLC												LIBOR Plus 8.00% (Floor 1.00%)		—		—			122		—		3,610		—		3,610
												LIBOR Plus 10.00% (Floor 1.00%)		—		—			303		—		27,723		—		27,723
												Preferred Member Units		—		—			—		—		12,500		—		12,500

Clad-Rex Steel, LLC	LIBOR Plus 9.50% (Floor 1.00%)		11		396		1		—		397	LIBOR Plus 9.50% (Floor 1.00)		—		(6	)		375		13,280		6		6		13,280
	LIBOR Plus 9.50% (Floor 1.00%)		375		13,941		5		—		13,946
	Member Units		—		7,280		—		—		7,280	Member Units		—		280			94		9,500		280		—		9,780
	10% Secured Debt		30		1,190		—		4		1,186	10% Secured Debt		—		—			30		1,183		—		5		1,178
	Member Units		—		210		—		—		210	Member Units		—		—			—		280		—		—		280

CMS Minerals Investments	Preferred Member Units		51		3,682		—		411		3,271	Member Units		—		139			9		2,392		139		146		2,385

Direct Marketing Solutions, Inc.												LIBOR Plus 11.00% (Floor 1.00%)		—		—			624		—		18,602		79		18,523
	Member Units		63		3,381		—		261		3,120	Preferred Stock		—		—			—		—		8,400		—		8,400

Gamber-Johnson Holdings, LLC	LIBOR Plus 11.00% (Floor 1.00%)		735		23,846		234		—		24,080	LIBOR Plus 11.00% (Floor 1.00%)		—		(15	)		744		23,400		15		505		22,910
	Member Units		170		18,920		3,160		—		22,080	Member Units		—		3,160			292		23,370		3,160		—		26,530

GRT Rubber Technologies LLC	LIBOR Plus 9.00% (Floor 1.00%)		334		13,274		8		217		13,065	LIBOR Plus 9.00% (Floor 1.00%)		—		(7	)		309		11,603		7		217		11,393
	Member Units		127		20,310		—		—		20,310	Member Units		—		1,450			308		21,970		1,450		—		23,420

Harborside Holdings, LLC	Member Units		—		—		9,400		—		9,400	Member Units		—		—			—		9,400		100		—		9,500

Harris Preston Fund Investments												LP Interests		—		—			—		536		—		—		536

Hydratec, Inc.	Common Stock		480		15,640		—		—		15,640	Common Stock		7,922		(7,905	)		332		15,000		160		15,160		—

IDX Broker, LLC	12.5% Secured Debt		344		10,950		7		307		10,650	11.5% Secured Debt		—		(12	)		446		15,250		12		312		14,950
	Member Units		68		7,040		1,160		—		8,200	Preferred Member Units		—		(110	)		68		11,660		—		110		11,550

Jensen Jewelers of Idaho, LLC	Prime Plus 6.75% (Floor 2.00%)		108		4,055		4		154		3,905	Prime Plus 6.75% (Floor 2.00%)		—		(4	)		50		3,955		4		154		3,805
	Member Units		37		4,460		—		—		4,460	Member Units		—		—			113		5,100		—		—		5,100

Lamb Ventures, LLC	LIBOR Plus 5.75%		7		—		350		45		305	11% Secured Debt		—		(10	)		267		9,942		210		1,813		8,339
	11% Secured Debt		209		7,657		—		78		7,579	Preferred Equity		—		—			—		400		—		—		400
	Preferred Equity		—		400		—		—		400
	Member Units		40		5,990		200		—		6,190
	9.5% Secured Debt		32		1,170		428		1,170		428
	Member Units		407		1,340		—		380		960

Lighting Unlimited, LLC	8% Secured Debt		29		1,514		—		1,514		—
	Preferred Equity		—		410		24		434		—	Member Units		—		(60	)		—		6,790		—		60		6,730
	Warrants		—		—		54		54		—	9.5% Secured Debt		—		—			10		432		—		—		432
	Member Units		—		—		100		100		—	Member Units		—		—			—		520		—		—		520

Mid-Columbia Lumber Products, LLC	10% Secured Debt		44		1,750		—		—		1,750	10% Secured Debt		—		—			46		1,390		353		—		1,743
	12% Secured Debt		117		3,900		—		—		3,900	12% Secured Debt		—		—			121		3,863		4		—		3,867
	Member Units		2		2,480		—		500		1,980	Member Units		—		—			2		1,575		596		—		2,171
	9.5% Secured Debt		20		836		—		11		825	9.5% Secured Debt		—		—			19		791		—		11		780
	Member Units		9		600		620		—		1,220	Member Units		—		—			15		1,290		—		—		1,290

MSC Adviser I, LLC	Member Units		695		30,617		2,855		—		33,472	Member Units		—		6,954			573		41,768		6,954		—		48,722

Mystic Logistics Holdings, LLC	12% Secured Debt		286		9,176		11		23		9,164	12% Secured Debt		—		—			241		7,696		11		206		7,501
	Common Stock		—		5,780		390		—		6,170	Common Stock		—		(770	)		2		6,820		—		770		6,050

NexRev LLC												11% Secured Debt		—		—			387		—		17,268		—		17,268
												Preferred Equity		—		—			—		—		6,880		—		6,880

NRP Jones, LLC	8% Current / 4% PIK Secured Debt		419		13,915		139		—		14,054	12% Secured Debt		—		—			191		6,376		—		—		6,376
	Warrants		—		130		—		—		130
	Member Units		—		410		—		—		410	Member Units		—		880			—		3,250		880		—		4,130

PPL RVs, Inc.	LIBOR Plus 7.00% (Floor 0.50%)		370		17,826		8		—		17,834	LIBOR Plus 7.00% (Floor 0.50%)		—		(7	)		357		16,100		7		7		16,100
	Common Stock		100		11,780		—		—		11,780	Common Stock		—		(780	)		28		12,440		—		780		11,660

Principle Environmental, LLC (d/b.a												13% Secured Debt		—		(13	)		256		7,477		13		13		7,477
TruHorizon Environmental Solutions)												Preferred Member Units		—		1,600			746		11,490		1,600		—		13,090
												Warrants		—		130			—		650		130		—		780
Quality Lease Service, LLC												Zero Coupon Secured Debt		—		—			—		6,950		—		—		6,950
												Member Units		—		—			—		4,938		425		—		5,363

The MPI Group, LLC												9% Secured Debt		—		(900	)		66		2,410		—		900		1,510
												Series A Preferred Units		—		—			—		—		—		—		—
												Warrants		—		—			—		—		—		—		—
												Member Units		—		90			11		2,389		91		—		2,480

Uvalco Supply, LLC												9% Secured Debt		—		—			5		348		—		164		184
												Member Units		—		—			80		3,880		—		—		3,880

Table of Contents

Company	Investment(1)						Investment(1)(5)

Principle Environmental, LLC	12% Secured Debt	122	4,060	—	—	4,060
	12% Current / 2% PIK Secured Debt	118	3,378	16	—	3,394
	Preferred Member Units	—	5,370	953	63	6,260
	Warrants	—	270	50	—	320

Quality Lease Service, LLC	8% PIK Secured Debt	136	7,068	136	—	7,204
	Member Units	—	3,188	1,051	—	4,239

The MPI Group, LLC	9% Secured Debt	66	2,922	—	—	2,922
	Series A Preferred Units	—	—	—	—	—
	Warrants	—	—	—	—	—
	Member Units	35	2,300	90	—	2,390

Uvalco Supply, LLC	9% Secured Debt	18	872	—	116	756
	Member Units	8	4,640	—	333	4,307

Vision Interests, Inc.	13% Secured Debt	91	2,814	—	—	2,814	13% Secured Debt	—	—		95	2,797	4	—	2,801
	Series A Preferred Stock	—	3,000	—	—	3,000	Series A Preferred Stock	—	—		—	3,000	—	—	3,000
	Common Stock	—	—	—	—	—	Common Stock	—	—		—	—	—	—	—

Ziegler's NYPD, LLC	6.5% Secured Debt	17	994	—	—	994	6.5% Secured Debt	—	—		17	996	1	—	997
	12% Secured Debt	9	300	—	—	300	12% Secured Debt	—	—		9	300	—	—	300
	14% Secured Debt	96	2,750	—	—	2,750	14% Secured Debt	—	—		96	2,750	—	—	2,750
	Warrants	—	240	—	—	240	Warrants	—	—		—	—	—	—	—
	Preferred Member Units	—	4,100	—	—	4,100	Preferred Member Units	—	—		—	3,220	1	—	3,221

Other controlled investments
Access Media Holdings, LLC	5% Current / 5% PIK Secured Debt	563	19,700	282	512	19,470	10% PIK Secured Debt	—	(2,030	)	—	17,150	—	2,030	15,120
	Preferred Member Units	—	240	169	189	220	Preferred Member Units	—	(302	)	—	—	302	302	—
	Member Units	—	—	—	—	—	Member Units	—	—		—	—	—	—	—

Ameritech College Operations, LLC	10% Secured Debt	13	514	—	—	514
	13% Secured Debt	16	489	—	—	489
	13% Secured Debt	98	3,025	—	—	3,025
ASC Interests, LLC							11% Secured Debt	—	(160	)	51	1,795	3	151	1,647
	Preferred Member Units	—	2,291	3,900	3,381	2,810	Member Units	—	—		—	1,530	—	160	1,370

ASC Interests, LLC	11% Secured Debt	60	2,100	3	53	2,050
ATS Workholding, LLC							5% Secured Debt	—	—		75	3,249	486	—	3,735
	Member Units	—	2,680	60	—	2,740	Preferred Member Units	—	—		—	3,726	—	—	3,726

Bond-Coat, Inc.	12% Secured Debt	357	11,596	9	9	11,596	12% Secured Debt	—	—		348	11,596	—	—	11,596
	Common Stock	—	6,660	940	—	7,600	Common Stock	—	—		—	9,370	—	—	9,370

Brewer Crane Holdings, LLC							LIBOR Plus 10.00% (Floor 1.00%)	—	—		366	—	9,825	—	9,825
							Preferred Member Units	—	—		30	—	4,280	—	4,280

CBT Nuggets, LLC	Member Units	1,000	55,480	5,140	—	60,620	Member Units	—	(22,219	)	6,042	89,560	—	22,220	67,340

Chamberlin Holding LLC							LIBOR Plus 10.00% (Floor 1.00%)	—	—		577	—	21,389	—	21,389
							Member Units	—	—		—	—	11,440	—	11,440

Charps, LLC	LIBOR Plus 7.00% (Floor 1.00%)	14	—	781	—	781	12% Secured Debt	—	—		550	18,225	22	1,601	16,646
	12% Secured Debt	630	—	18,220	—	18,220	Preferred Member Units	—	540		—	650	540	—	1,190
	Preferred Member Units	—	—	400	—	400

Copper Trail Energy Fund I, LP							LP Interests	—	—		33	2,500	—	—	2,500

Datacom, LLC	8% Secured Debt	20	900	180	—	1,080	8% Secured Debt	—	—		33	1,575	180	—	1,755
	5.25% Current / 5.25% PIK Secured Debt	313	11,049	441	—	11,490	5.25% Current / 5.25% PIK Secured Debt	—	—		330	11,110	168	498	10,780
	Class A Preferred Member Units	—	1,368	51	—	1,419	Class A Preferred Member Units	—	(510	)	—	730	—	510	220
	Class B Preferred Member Units	—	1,529	332	—	1,861	Class B Preferred Member Units	—	(498	)	—	—	—	—	—

Garreco, LLC	LIBOR Plus 12.00% (Floor 1.00%)	189	5,219	975	225	5,969	LIBOR Plus 10.00% (Floor 1.00%)	—	—		162	5,443	5	121	5,327
	Member Units	—	1,150	320	—	1,470	Member Units	—	—		—	1,940	—	—	1,940

Gulf Manufacturing, LLC	9% PIK Secured Debt	17	777	—	—	777	Member Units	—	770		414	10,060	770	—	10,830
	Member Units	139	8,770	420	—	9,190

Gulf Publishing Holdings, LLC	12.5% Secured Debt	316	9,911	4	—	9,915	LIBOR Plus 9.50% (Floor 1.00%)	—	—		1	80	—	80	—
	Member Units	—	3,124	336	—	3,460	12.5% Secured Debt	—	—		405	12,703	7	102	12,608

							Member Units	—	—		—	4,840	—	—	4,840
Harrison Hydra-Gen, Ltd.	Common Stock	—	3,120	—	320	2,800	Common Stock	—	1,400		—	3,580	1,400	—	4,980

Hawthorne Customs and Dispatch Services, LLC	Member Units	—	280	—	—	280
	Member Units	48	2,040	—	—	2,040

HW Temps LLC	LIBOR Plus 13.00% (Floor 1.00%)	368	10,500	4	600	9,904	LIBOR Plus 11.00% (Floor 1.00%)	—	—		320	9,918	4	—	9,922
	Preferred Member Units	35	3,940	—	—	3,940	Preferred Member Units	—	—		35	3,940	—	—	3,940

KBK Industries, LLC							10% Secured Debt	—	—		7	375	—	300	75
							12.5% Secured Debt	—	(3	)	187	5,900	3	3	5,900
							Member Units	—	320		153	4,420	320	—	4,740

Marine Shelters Holdings, LLC							12% PIK Secured Debt	—	—		—	—	—	—	—
							Preferred Member Units	—	—		—	—	—	—	—

Market Force Information, LLC							LIBOR Plus 11.00% (Floor 1.00%)	—	—		757	23,143	13	480	22,676
							Member Units	—	—		2	14,700	—	—	14,700

MH Corbin Holding LLC							10% Secured Debt	—	—		357	12,526	—	288	12,238
							Preferred Member Units	—	—		35	6,000	—	—	6,000

NAPCO Precast, LLC							LIBOR Plus 8.50%	—	(6	)	302	11,475	6	6	11,475
							Member Units	—	510		293	11,670	510	—	12,180

NRI Clinical Research, LLC							LIBOR Plus 6.50% (Floor 1.50%)	—	—		9	400	—	—	400
							14% Secured Debt	—	30		141	3,865	—	—	3,865
							Warrants	—	—		—	500	—	—	500
							Member Units	—	—		—	2,500	—	—	2,500

NuStep, LLC							12% Secured Debt	—	—		628	20,420	9	—	20,429
							Preferred Member Units	—	—		—	10,200	—	—	10,200

OMi Holdings, Inc.							Common Stock	—	180		360	14,110	180	—	14,290

Pegasus Research Group, LLC							Member Units	—	—		—	10,310	—	—	10,310

River Aggregates, LLC							Zero Coupon Secured Debt	—	—		21	707	21	—	728
							Member Units	—	—		—	4,610	—	—	4,610
							Member Units	—	110		—	2,559	111	—	2,670

Table of Contents

Company	Investment(1)	Amount of Interest, Fees or Dividends Credited to Income(2)		December 31, 2016 Fair Value		Gross Additions(3)		Gross Reductions(4)		March 31, 2017 Fair Value		Investment(1)(5)	Amount of Realized Gain/(Loss)		Amount of Unrealized Gain/(Loss)			Amount of Interest, Fees or Dividends Credited to Income(2)		December 31, 2017 Fair Value		Gross Additions(3)		Gross Reductions(4)		March 31, 2018 Fair Value

Indianapolis Aviation Partners, LLC	15% Secured Debt		156		3,100		—		—		3,100
	Warrants		—		2,649		61		—		2,710

Marine Shelters Holdings, LLC	12% PIK Secured Debt		—		9,387		—		9,387		—
	Preferred Member Units		—		—		100		100		—

MH Corbin Holding LLC	10% Secured Debt		335		13,197		8		175		13,030
	Preferred Member Units		35		6,000		—		—		6,000

NAPCO Precast, LLC	Prime Plus 2.00% (Floor 7.00%)		63		2,713		2		2		2,713
	18% Secured Debt		181		3,952		3		3		3,952
	Member Units		29		10,920		—		—		10,920

NRI Clinical Research, LLC	LIBOR Plus 6.50% (Floor 1.50%)		10		200		200		—		400
	14% Secured Debt		160		4,261		11		11		4,261
	Warrants		—		680		—		—		680
	Member Units		—		2,462		—		—		2,462

NuStep, LLC	12% Secured Debt		728		—		20,394		—		20,394
	Preferred Member Units		—		—		10,200		—		10,200

OMi Holdings, Inc.	Common Stock		192		13,080		—		—		13,080

Pegasus Research Group, LLC	Member Units		60		8,620		—		180		8,440

River Aggregates, LLC	Zero Coupon Secured Debt		19		627		19		—		646
	Member Units		—		4,600		—		—		4,600
	Member Units		—		2,510		—		—		2,510

SoftTouch Medical Holdings LLC	LIBOR Plus 9.00% (Floor 1.00%)		182		7,140		4		4		7,140	LIBOR Plus 9.00% (Floor 1.00%)		—		(30	)		120		7,140		30		7,170		—
	Member Units		155		9,170		—		—		9,170	Member Units		5,172		(5,160	)		865		10,089		1,262		11,351		—

Other
Amounts related to investments transferred to or from other 1940 Act classification during the period			—		—		—		—		—			—		—			—		—		—		—		—

		$	12,988	$	594,282	$	85,423	$	21,466	$	658,239
Total Control investments													$	13,094	$	(22,974	)	$	21,955	$	750,706	$	164,882	$	68,791	$	846,797



Affiliate Investments
AFG Capital Group, LLC	Warrants	$	—	$	670	$	20	$	—	$	690	Warrants	$	—	$	40		$	—	$	860	$	40	$	—	$	900
	Member Units		7		2,750		100		—		2,850	Preferred Member Units		—		170			10		3,590		170		—		3,760

Barfly Ventures, LLC	12% Secured Debt		235		5,827		1,808		—		7,635	12% Secured Debt		—		(4	)		267		8,715		4		4		8,715
	Options		—		490		—		—		490	Options		—		—			—		920		—		—		920
	Warrants		—		280		—		—		280	Warrants		—		—			—		520		—		—		520

BBB Tank Services, LLC	LIBOR Plus 9.50% (Floor 1.00%)		21		797		—		—		797	LIBOR Plus 8.00% (Floor 1.00%)		—		—			20		778		414		492		700
	15% Secured Debt		152		3,991		1		—		3,992	15% Secured Debt		—		—			157		3,876		7		—		3,883
	Member Units		—		800		—		—		800	Member Units		—		50			—		500		50		—		550

Boccella Precast Products LLC												LIBOR Plus 10.0% (Floor 1.00%)		—		(13	)		496		16,400		1,213		1,031		16,582
												Member Units		—		1,419			463		3,440		1,420		—		4,860

Boss Industries, LLC	Preferred Member Units		89		2,800		120		—		2,920	Preferred Member Units		—		770			90		3,930		810		—		4,740

Bridge Capital Solutions Corporation	13% Secured Debt		307		5,610		63		—		5,673	13% Secured Debt		—		—			347		5,884		78		—		5,962
	Warrants		—		3,370		—		—		3,370	Warrants		—		500			—		3,520		500		—		4,020
	13% Secured Debt		33		1,000		—		—		1,000	13% Secured Debt		—		—			33		1,000		—		—		1,000
	Preferred Member Units		25		1,000		—		—		1,000	Preferred Member Units		—		—			33		1,000		—		—		1,000

Buca C, LLC	LIBOR Plus 7.25% (Floor 1.00%)		494		22,671		21		1,634		21,058	LIBOR Plus 9.25% (Floor 1.00%)		—		—			560		20,193		11		300		19,904
	Preferred Member Units		57		4,660		58		728		3,990	Preferred Member Units		—		—			61		4,172		61		—		4,233

CAI Software LLC	12% Secured Debt		110		3,683		3		203		3,483	12% Secured Debt		—		(3	)		125		4,083		3		3		4,083
	Member Units		30		2,480		100		—		2,580	Member Units		—		—			10		3,230		—		—		3,230

CapFusion, LLC	13% Secured Debt		518		13,202		50		—		13,252
	Warrants		—		1,200		—		—		1,200

Chandler Signs Holdings, LLC	12% Secured Debt		137		4,500		2		2		4,500	12% Secured Debt		—		(2	)		137		4,500		2		2		4,500
	Class A Units		63		3,240		—		—		3,240	Class A Units		—		(470	)		—		2,650		—		470		2,180

Charlotte Russe, Inc												8.50% Secured Debt		—		(80	)		113		7,807		16,658		16,553		7,912
												Common Stock		—		—			—		—		3,141		—		3,141

Condit Exhibits, LLC												Member Units		—		—			66		1,950		—		—		1,950

Congruent Credit Opportunities Funds												LP Interests (Fund II)		—		(515	)		—		1,515		—		1,035		480
												LP Interests (Fund III)		—		122			361		18,632		122		—		18,754

Dos Rios Partners												LP Interests (Dos Rios Partners, LP)		—		81			—		7,165		81		—		7,246
												LP Interests (Dos Rios Partners—A, LP)		—		293			—		1,889		293		—		2,182

Dos Rios Stone Products LLC												Class A Preferred Units		—		(440	)		23		1,790		—		440		1,350

East Teak Fine Hardwoods, Inc.												Common Stock		—		—			4		630		—		—		630

EIG Fund Investments												LP Interests (EIG Global Private Debt fund-A, L.P.)		—		—			—		1,055		377		1,029		403

Freeport Financial Funds												LP Interests (Freeport Financial SBIC Fund LP)		—		(60	)		102		5,614		—		60		5,554
												LP Interests (Freeport First Lien Loan Fund III LP)		—		—			248		8,506		—		—		8,506

Gault Financial, LLC (RMB												8% Current Secured Debt		—		—			243		11,532		—		—		11,532
Capital, LLC)												Warrants		—		—			—		—		—		—		—

Guerdon Modular Holdings, Inc.												LIBOR Plus 8.50% (Floor 1.00%)		—		—			2		—		394		—		394
												13% Secured Debt		—		—			363		10,632		294		—		10,926
												Preferred Stock		—		—			—		—		—		—		—
												Common Stock		—		—			—		—		—		—		—

Harris Preston Fund Investments												LP Interests	$	—	$	—		$	—	$	943	$	90	$	—	$	1,033

Hawk Ridge Systems, LLC												10.5% Secured Debt		—		(6	)		389		14,300		6		6		14,300
												Preferred Member Units		—		2,422			55		3,800		2,423		—		6,223
												Preferred Member Units		—		128			—		200		128		—		328

Houston Plating and Coatings, LLC												8% Unsecured Convertible Debt		—		—			60		3,200		—		—		3,200
												Member Units		—		520			48		6,140		520		—		6,660
I-45 SLF LLC												Member Units		—		—			705		16,841		—		—		16,841

L.F. Manufacturing Holdings, LLC												Member Units		—		—			—		2,000		—		—		2,000

Meisler Operating LLC												LIBOR Plus 8.50% (Floor 1.00%)		—		—			472		16,633		2,146		—		18,779
												Member Units		—		525			—		3,390		2,180		—		5,570

Table of Contents

Company	Investment(1)						Investment(1)(5)	Amount of Realized Gain/(Loss)		Amount of Unrealized Gain/(Loss)			Amount of Interest, Fees or Dividends Credited to Income(2)		December 31, 2017 Fair Value			Gross Additions(3)		Gross Reductions(4)		March 31, 2018 Fair Value

Condit Exhibits, LLC	Member Units	11	1,840	—	—	1,840

Congruent Credit Opportunities Funds	LP Interests (Fund II)	—	1,518	—	141	1,377
	LP Interests (Fund III)	320	16,181	2,396	—	18,577

Daseke, Inc.	12% Current / 2.5% PIK Secured Debt	676	21,799	255	22,054	—
	Common Stock	—	24,063	—	24,063	—

Dos Rios Partners	LP Interests (Dos Rios Partners, LP)	—	4,925	704	—	5,629
	LP Interests (Dos Rios Partners—A, LP)	—	1,444	207	—	1,651

Dos Rios Stone Products LLC	Class A Units	—	2,070	—	—	2,070

East Teak Fine Hardwoods, Inc.	Common Stock	29	860	—	110	750

East West Copolymer & Rubber, LLC	12% Current / 2% PIK Secured Debt	—	8,630	—	6,390	2,240
	Warrants	—	—	—	—	—

EIG Fund Investments	LP Interests (EIG Global Private Debt fund-A, L.P.)	45	2,804	352	1,690	1,466
	LP Interests (EIG Traverse Co-Investment, L.P.)	263	9,905	68	—	9,973

Freeport Financial Fund Investments	LP Interests (Freeport Financial SBIC	102	5,620	55	—	5,675
OnAsset Intelligence, Inc.							12% PIK Secured Debt		—		—			153		5,094			153		—		5,247
	Fund LP)						10% PIK Secured Debt		—		—			1		48			1		—		49
	LP Interests (Freeport First Lien Loan	195	4,763	2,796	52	7,507	Preferred Stock		—		—			—		—			—		—		—
	Fund III LP)						Warrants		—		—			—		—			—		—		—

Gault Financial, LLC (RMB Capital, LLC)	10.5% Secured Debt	326	11,079	1,017	146	11,950
	Warrants	—	—	—	—	—
OPI International Ltd.							Common Stock		—		—			—		—			—		—		—

Glowpoint, Inc.	12% Secured Debt	274	3,997	9	996	3,010
	Common Stock	—	2,080	190	—	2,270

Guerdon Modular Holdings, Inc.	13% Secured Debt	357	10,594	9	—	10,603
PCI Holding Company, Inc.							12% Current/3% PIK Secured Debt		—		—			685		12,593			304		326		12,571
	Preferred Stock	—	1,140	—	—	1,140	Preferred Stock		—		(600	)		—		890			—		600		290
	Common Stock	—	80	—	—	80	Preferred Stock		—		870			—		2,610			870		—		3,480

Hawk Ridge Systems, LLC	10% Secured Debt	255	9,901	4	—	9,905
Rocaceia, LLC (Quality Lease and Rental							12% Secured Debt		—		—			—		250			—		—		250
Holdings, LLC)							Preferred Member Units		—		—			—		—			—		—		—

Tin Roof Acquisition Company							12% Secured Debt		—		—			393		12,722			17		224		12,515
							Class C Preferred Stock		—		—			76		3,027			75		—		3,102

UniTek Global Services, Inc.							LIBOR Plus 8.50% (Floor 1.00%)		—		(1	)		220		8,535			1		1		8,535
	Preferred Member Units	150	2,850	—	—	2,850	LIBOR Plus 7.50% (Floor 1.00%)/1.00% PIK		—		—			4		137			1		—		138
	Preferred Member Units	—	150	—	—	150	15% PIK Unsecured Debt		—		—			34		865			32		—		897

Houston Plating and Coatings, LLC	Member Units	1	4,000	230	—	4,230

I-45 SLF LLC	Member Units	691	14,586	1,321	—	15,907

Indianhead Pipeline Services, LLC	12% Secured Debt	727	5,079	563	225	5,417
	Preferred Member Units	98	2,677	98	—	2,775	Preferred Stock		—		(8	)		248		7,320			248		8		7,560
	Warrants	—	—	—	—	—	Preferred Stock		—		(6	)		136		2,850			136		6		2,980
	Member Units	—	—	—	—	—	Common Stock		—		190			—		2,490			190		—		2,680

KBK Industries, LLC	10% Secured Debt	31	1,250	100	175	1,175
Universal Wellhead Services							Preferred Member Units		—		30			—		830			30		—		860
Holdings, LLC							Member Units		—		120			—		1,910			120		—		2,030

Valley Healthcare Group, LLC							LIBOR Plus 12.50% (Floor 0.50%)		—		—			419		11,685			6		120		11,571
							Preferred Member Units		—		140			—		1,600			140		—		1,740

Volusion, LLC							11.5% Secured Debt		—		—			639		15,200			158		—		15,358
	12.5% Secured Debt	188	5,889	3	—	5,892	Preferred Member Units		—		—			—		14,000			—		—		14,000
	Member Units	—	2,780	—	—	2,780	Warrants		—		(610	)		—		2,080			—		609		1,471

L.F. Manufacturing Holdings, LLC	Member Units	—	1,380	—	—	1,380
Other
Amounts related to investments
transferred to or from other 1940 Act
classification during the period									—		8,666			—		(7,807	)		—		—		—

OnAsset Intelligence, Inc.	12% PIK Secured Debt	136	4,519	135	—	4,654
	Preferred Stock	—	—	—	—	—
	Warrants	—	—	—	—	—
Total Affiliate investments								$	—	$	14,238		$	9,071	$	338,854		$	36,118	$	23,319	$	359,460

OPI International Ltd.	10% Unsecured Debt	12	473	—	—	473
	Common Stock	—	1,600	—	1,220	380

PCI Holding Company, Inc.	12% Secured Debt	400	13,000	10	10	13,000
	Preferred Stock	172	5,370	170	—	5,540

~~Table of Contents~~

Company

Investment(1)
Amount of
Interest,
Fees or
Dividends
Credited to
Income(2) December 31,
2016 Fair
Value Gross
Additions(3) Gross
Reductions(4) March 31,
2017 Fair
Value
Rocaceia, LLC (Quality Lease and Rental Holdings, LLC)
12% Secured Debt — 250 — — 250
Preferred Member Units — — — — —

Tin Roof Acquisition Company
12% Secured Debt 417 13,385 16 169 13,232
Class C Preferred Stock 68 2,738 69 — 2,807

UniTek Global Services, Inc.
LIBOR Plus 7.50% (Floor 1.00%) 113 5,021 1 1 5,021
LIBOR Plus 8.50% (Floor 1.00%) 22 824 2 — 826
15% PIK Unsecured Debt 30 745 28 — 773
Preferred Stock 434 6,410 434 224 6,620
Common Stock — 3,010 — 200 2,810

Universal Wellhead Services Holdings, LLC
Preferred Member Units — 720 — — 720
Member Units — 610 — — 610

Valley Healthcare Group, LLC
LIBOR Plus 12.50% (Floor 0.50%) 433 12,844 6 100 12,750
Preferred Member Units — 1,600 — — 1,600

Volusion, LLC
11.5% Secured Debt 645 15,298 141 — 15,439
Preferred Member Units — 14,000 — — 14,000
Warrants — 2,576 — 126 2,450

Other

Amounts related to investments transferred to or from other 1940 Act classification during the period
— — — — —

$ 9,899 $ 375,948 $ 13,735 $ 60,659 $ 329,024

~~This schedule should be read in conjunction with Main Street's consolidated financial statements, including the consolidated schedule of investments and notes to the consolidated financial statements.~~

(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.
(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): This schedule should be read in conjunction with the consolidated schedule of investments and notes to the consolidated financial statements. Supplemental information can located within the 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.

Table of Contents

Schedule 12-14

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments In and Advances to Affiliates
March 31, 2017
(dollars in thousands)
(unaudited)

Company	Investment(1)(5)	Amount of Realized Gain/(Loss)			Amount of Unrealized Gain/(Loss)			Amount of Interest, Fees or Dividends Credited to Income(2)		December 31, 2016 Fair Value		Gross Additions(3)		Gross Reductions(4)		March 31, 2017 Fair Value

*Majority-owned investments*
Café Brazil, LLC	Member Units	$	—		$	(140	)	$	52	$	6,040	$	—	$	140	$	5,900

Clad-Rex Steel, LLC	LIBOR Plus 9.50% (Floor 1.00%)		—			—			11		396		1		—		397
	LIBOR Plus 9.50% (Floor 1.00%)		—			—			375		13,941		5		—		13,946
	Member Units		—			—			—		7,280		—		—		7,280
	10% Secured Debt		—			—			30		1,190		—		4		1,186
	Member Units		—			—			—		210		—		—		210

CMS Minerals	Preferred Member Units		—			(316	)		51		3,682		—		411		3,271
Investments	Member Units		—			(148	)		63		3,381		—		261		3,120

Gamber-Johnson	LIBOR Plus 11.00% (Floor 1.00%)		—			224			735		23,846		234		—		24,080
Holdings, LLC	Member Units		—			3,160			170		18,920		3,160		—		22,080

GRT Rubber	LIBOR Plus 9.00% (Floor 1.00%)		—			(8	)		334		13,274		8		217		13,065
Technologies LLC	Member Units		—			—			127		20,310		—		—		20,310

Harborside Holdings, LLC	Member Units		—			3,344			—		—		9,400		—		9,400

Hydratec, Inc.	Common Stock		—			—			480		15,640		—		—		15,640

IDX Broker, LLC	12.5% Secured Debt		—			(7	)		344		10,950		7		307		10,650
	Member Units		—			1,160			68		7,040		1,160		—		8,200

Jensen Jewelers of	Prime Plus 6.75% (Floor 2.00%)		—			(4	)		108		4,055		4		154		3,905
Idaho, LLC	Member Units		—			—			37		4,460		—		—		4,460

Lamb Ventures, LLC	LIBOR Plus 5.75%		—			—			7		—		350		45		305
	11% Secured Debt		—			—			209		7,657		—		78		7,579
	Preferred Equity		—			—			—		400		—		—		400
	Member Units		—			200			40		5,990		200		—		6,190
	9.5% Secured Debt		—			—			32		1,170		428		1,170		428
	Member Units		—			(380	)		407		1,340		—		380		960

Lighting	8% Secured Debt		—			—			29		1,514		—		1,514		—
Unlimited, LLC	Preferred Equity		(434	)		24			—		410		24		434		—
	Warrants		(54	)		54			—		—		54		54		—
	Member Units		(100	)		100			—		—		100		100		—

Mid-Columbia Lumber	10% Secured Debt		—			—			44		1,750		—		—		1,750
Products, LLC	12% Secured Debt		—			—			117		3,900		—		—		3,900
	Member Units		—			(500	)		2		2,480		—		500		1,980
	9.5% Secured Debt		—			—			20		836		—		11		825
	Member Units		—			80			9		600		620		—		1,220

MSC Adviser I, LLC	Member Units		—			2,855			695		30,617		2,855		—		33,472

Mystic Logistics	12% Secured Debt		—			(10	)		286		9,176		11		23		9,164
Holdings, LLC	Common Stock		—			390			—		5,780		390		—		6,170

NRP Jones, LLC	8% Current / 4% PIK Secured Debt		—			—			419		13,915		139		—		14,054
	Warrants		—			—			—		130		—		—		130
	Member Units		—			—			—		410		—		—		410

PPL RVs, Inc.	LIBOR Plus 7.00% (Floor 0.50%)		—			—			370		17,826		8		—		17,834
	Common Stock		—			—			100		11,780		—		—		11,780

Principle	12% Secured Debt		—			—			122		4,060		—		—		4,060
Environmental, LLC	12% Current / 2% PIK Secured Debt		—			—			118		3,378		16		—		3,394
	Preferred Member Units		(63	)		953			—		5,370		953		63		6,260
	Warrants		—			50			—		270		50		—		320

Quality Lease	8% PIK Secured Debt		—			—			136		7,068		136		—		7,204
Service, LLC	Member Units		—			—			—		3,188		1,051		—		4,239

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Company	Investment(1)(5)

The MPI Group, LLC	9% Secured Debt	—		—		66	2,922	—	—	2,922
	Series A Preferred Units	—		—		—	—	—	—	—
	Warrants	—		—		—	—	—	—	—
	Member Units	—		90		35	2,300	90	—	2,390

Uvalco Supply, LLC	9% Secured Debt	—		—		18	872	—	116	756
	Member Units	69		(69	)	8	4,640	—	333	4,307

Vision Interests, Inc.	13% Secured Debt	—		—		91	2,814	—	—	2,814
	Series A Preferred Stock	—		—		—	3,000	—	—	3,000
	Common Stock	—		—		—	—	—	—	—

Ziegler's NYPD, LLC	6.5% Secured Debt	—		—		17	994	—	—	994
	12% Secured Debt	—		—		9	300	—	—	300
	14% Secured Debt	—		—		96	2,750	—	—	2,750
	Warrants	—		—		—	240	—	—	240
	Preferred Member Units	—		—		—	4,100	—	—	4,100

*Other controlled investments*
Access Media	5% Current / 5% PIK Secured Debt	—		(512	)	563	19,700	282	512	19,470
Holdings, LLC	Preferred Member Units	—		(189	)	—	240	169	189	220
	Member Units	—		—		—	—	—	—	—

Ameritech College	10% Secured Debt	—		—		13	514	—	—	514
Operations, LLC	13% Secured Debt	—		—		16	489	—	—	489
	13% Secured Debt	—		—		98	3,025	—	—	3,025
	Preferred Member Units	—		(3,381	)	—	2,291	3,900	3,381	2,810

ASC Interests, LLC	11% Secured Debt	—		(3	)	60	2,100	3	53	2,050
	Member Units	—		60		—	2,680	60	—	2,740

Bond-Coat, Inc.	12% Secured Debt	—		(9	)	357	11,596	9	9	11,596
	Common Stock	—		940		—	6,660	940	—	7,600

CBT Nuggets, LLC	Member Units	—		5,141		1,000	55,480	5,140	—	60,620

Charps, LLC	LIBOR Plus 7.00% (Floor 1.00%)	—		—		14	—	781	—	781
	12% Secured Debt	—		—		630	—	18,220	—	18,220
	Preferred Member Units	—		—		—	—	400	—	400

Datacom, LLC	8% Secured Debt	—		—		20	900	180	—	1,080
	5.25% Current / 5.25% PIK Secured Debt	—		282		313	11,049	441	—	11,490
	Class A Preferred Member Units	—		51		—	1,368	51	—	1,419
	Class B Preferred Member Units	—		332		—	1,529	332	—	1,861

Garreco, LLC	LIBOR Plus 12.00% (Floor 1.00%)	—		—		189	5,219	975	225	5,969
	Member Units	—		320		—	1,150	320	—	1,470

Gulf	9% PIK Secured Debt	—		—		17	777	—	—	777
Manufacturing, LLC	Member Units	—		420		139	8,770	420	—	9,190

Gulf Publishing	12.5% Secured Debt	—		—		316	9,911	4	—	9,915
Holdings, LLC	Member Units	—		336		—	3,124	336	—	3,460

Harrison Hydra-Gen, Ltd.	Common Stock	—		(320	)	—	3,120	—	320	2,800

Hawthorne Customs
and Dispatch	Member Units	—		—		—	280	—	—	280
Services, LLC	Member Units	—		—		48	2,040	—	—	2,040

HW Temps LLC	LIBOR Plus 13.00% (Floor 1.00%)	—		—		368	10,500	4	600	9,904
	Preferred Member Units	—		—		35	3,940	—	—	3,940

Indianapolis Aviation	15% Secured Debt	—		—		156	3,100	—	—	3,100
Partners, LLC	Warrants	—		61		—	2,649	61	—	2,710

Marine Shelters	12% PIK Secured Debt	—		(2,551	)	—	9,387	—	9,387	—
Holdings, LLC	Preferred Member Units	(100	)	—		—	—	100	100	—

MH Corbin	10% Secured Debt	—		—		335	13,197	8	175	13,030
Holding LLC	Preferred Member Units	—		—		35	6,000	—	—	6,000

NAPCO Precast, LLC	Prime Plus 2.00% (Floor 7.00%)	—		(2	)	63	2,713	2	2	2,713
	18% Secured Debt	—		(3	)	181	3,952	3	3	3,952
	Member Units	—		—		29	10,920	—	—	10,920

NRI Clinical	LIBOR Plus 6.50% (Floor 1.50%)	—		—		10	200	200	—	400
Research, LLC	14% Secured Debt	—		(11	)	160	4,261	11	11	4,261
	Warrants	—		—		—	680	—	—	680
	Member Units	—		—		—	2,462	—	—	2,462

NuStep, LLC	12% Secured Debt	—		—		728	—	20,394	—	20,394
	Preferred Member Units	—		—		—	—	10,200	—	10,200

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Company	Investment(1)(5)	Amount of Realized Gain/(Loss)			Amount of Unrealized Gain/(Loss)			Amount of Interest, Fees or Dividends Credited to Income(2)		December 31, 2016 Fair Value		Gross Additions(3)		Gross Reductions(4)		March 31, 2017 Fair Value

OMi Holdings, Inc.	Common Stock		—			—			192		13,080		—		—		13,080

Pegasus Research Group, LLC	Member Units		—			(180	)		60		8,620		—		180		8,440

River Aggregates, LLC	Zero Coupon Secured Debt		—			—			19		627		19		—		646
	Member Units		—			—			—		4,600		—		—		4,600
	Member Units		—			—			—		2,510		—		—		2,510

SoftTouch Medical	LIBOR Plus 9.00% (Floor 1.00%)		—			(4	)		182		7,140		4		4		7,140
Holdings LLC	Member Units		—			—			155		9,170		—		—		9,170

Other
Amounts related to investments transferred to or from other 1940 Act classification during the period			—			—			—		—		—		—		—

Total Control investments		$	(682	)	$	11,880		$	12,988	$	594,282	$	85,423	$	21,466	$	658,239



*Affiliate Investments*
AFG Capital	Warrants	$	—		$	20		$	—	$	670	$	20	$	—	$	690
Group, LLC	Preferred Member Units		—			100			7		2,750		100		—		2,850

Barfly Ventures, LLC	12% Secured Debt		—			—			235		5,827		1,808		—		7,635
	Options		—			—			—		490		—		—		490
	Warrants		—			—			—		280		—		—		280

BBB Tank	LIBOR Plus 9.50% (Floor 1.00%)		—			—			21		797		—		—		797
Services, LLC	15% Secured Debt		—			—			152		3,991		1		—		3,992
	Member Units		—			—			—		800		—		—		800

Boss Industries, LLC	Preferred Member Units		—			73			89		2,800		120		—		2,920

Bridge Capital	13% Secured Debt		—			—			307		5,610		63		—		5,673
Solutions	Warrants		—			—			—		3,370		—		—		3,370
Corporation	13% Secured Debt		—			—			33		1,000		—		—		1,000
	Preferred Member Units		—			—			25		1,000		—		—		1,000

Buca C, LLC	LIBOR Plus 7.25% (Floor 1.00%)		—			(167	)		494		22,671		21		1,634		21,058
	Preferred Member Units		—			(728	)		57		4,660		58		728		3,990

CAI Software LLC	12% Secured Debt		—			(3	)		110		3,683		3		203		3,483
	Member Units		—			100			30		2,480		100		—		2,580

CapFusion, LLC	13% Secured Debt		—			—			518		13,202		50		—		13,252
	Warrants		—			—			—		1,200		—		—		1,200

Chandler Signs	12% Secured Debt		—			(2	)		137		4,500		2		2		4,500
Holdings, LLC	Class A Units		—			—			63		3,240		—		—		3,240

Condit Exhibits, LLC	Member Units		—			—			11		1,840		—		—		1,840

Congruent Credit	LP Interests (Fund II)		—			(141	)		—		1,518		—		141		1,377
Opportunities Funds	LP Interests (Fund III)		—			281			320		16,181		2,396		—		18,577

Daseke, Inc.	12% Current / 2.5% PIK Secured Debt		—			(167	)		676		21,799		255		22,054		—
	Common Stock		22,859			(18,849	)		—		24,063		—		24,063		—

Dos Rios Partners	LP Interests (Dos Rios Partners, LP)		—			704			—		4,925		704		—		5,629
	LP Interests (Dos Rios Partners—A, LP)		—			207			—		1,444		207		—		1,651

Dos Rios Stone Products LLC	Class A Preferred Units		—			—			—		2,070		—		—		2,070

East Teak Fine Hardwoods, Inc.	Common Stock		—			(110	)		29		860		—		110		750

East West
Copolymer &	12% Current / 2% PIK Secured Debt		—			(6,390	)		—		8,630		—		6,390		2,240
Rubber, LLC	Warrants		—			—			—		—		—		—		—

EIG Fund Investments	LP Interests (EIG Global Private Debt fund-A, L.P.)		71			(99	)		45		2,804		352		1,690		1,466
	LP Interests (EIG Traverse Co-Investment, L.P.)		—			68			263		9,905		68		—		9,973

Freeport Financial	LP Interests (Freeport Financial
Fund Investments	SBIC Fund LP)		—			55			102		5,620		55		—		5,675
	LP Interests (Freeport First Lien Loan Fund III LP)		—			(52	)		195		4,763		2,796		52		7,507

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Company	Investment(1)(5)	Amount of Realized Gain/(Loss)		Amount of Unrealized Gain/(Loss)			Amount of Interest, Fees or Dividends Credited to Income(2)		December 31, 2016 Fair Value		Gross Additions(3)		Gross Reductions(4)		March 31, 2017 Fair Value

Gault Financial, LLC	10.5% Secured Debt		—		1,016			326		11,079		1,017		146		11,950
(RMB Capital, LLC)	Warrants		—		—			—		—		—		—		—

Glowpoint, Inc.	12% Secured Debt		—		(996	)		274		3,997		9		996		3,010
	Common Stock		—		190			—		2,080		190		—		2,270

Guerdon Modular	13% Secured Debt		—		—			357		10,594		9		—		10,603
Holdings, Inc.	Preferred Stock		—		—		��	—		1,140		—		—		1,140
	Common Stock		—		—			—		80		—		—		80

Hawk Ridge	10% Secured Debt		—		—			255		9,901		4		—		9,905
Systems, LLC	Preferred Member Units		—		—			150		2,850		—		—		2,850
	Preferred Member Units		—		—			—		150		—		—		150

Houston Plating and Coatings, LLC	Member Units		—		230			1		4,000		230		—		4,230

I-45 SLF LLC	Member Units		—		321			691		14,586		1,321		—		15,907

Indianhead Pipeline	12% Secured Debt		—		—			727		5,079		563		225		5,417
Services, LLC	Preferred Member Units		—		—			98		2,677		98		—		2,775
	Warrants		—		—			—		—		—		—		—
	Member Units		—		—			—		—		—		—		—

KBK Industries, LLC	10% Secured Debt		—		—			31		1,250		100		175		1,175
	12.5% Secured Debt		—		—			188		5,889		3		—		5,892
	Member Units		—		—			—		2,780		—		—		2,780

L.F. Manufacturing Holdings, LLC	Member Units		—		—			—		1,380		—		—		1,380

OnAsset	12% PIK Secured Debt		—		—			136		4,519		135		—		4,654
Intelligence, Inc.	Preferred Stock		—		—			—		—		—		—		—
	Warrants		—		—			—		—		—		—		—

OPI International Ltd.	10% Unsecured Debt		—		—			12		473		—		—		473
	Common Stock		—		(1,220	)		—		1,600		—		1,220		380

PCI Holding	12% Secured Debt		—		(10	)		400		13,000		10		10		13,000
Company, Inc.	Preferred Stock		—		—			172		5,370		170		—		5,540

Rocaceia, LLC
(Quality Lease and
Rental	12% Secured Debt		—		—			—		250		—		—		250
Holdings, LLC)	Preferred Member Units		—		—			—		—		—		—		—

Tin Roof Acquisition	12% Secured Debt		—		—			417		13,385		16		169		13,232
Company	Class C Preferred Stock		—		—			68		2,738		69		—		2,807

UniTek Global	LIBOR Plus 7.50% (Floor 1.00%)		—		(1	)		113		5,021		1		1		5,021
Services, Inc.	LIBOR Plus 8.50% (Floor 1.00%)		—		—			22		824		2		—		826
	15% PIK Unsecured Debt		—		—			30		745		28		—		773
	Preferred Stock		—		(224	)		434		6,410		434		224		6,620
	Common Stock		—		(200	)		—		3,010		—		200		2,810

Universal Wellhead
Services	Preferred Member Units		—		—			—		720		—		—		720
Holdings, LLC	Member Units		—		—			—		610		—		—		610

Valley Healthcare	LIBOR Plus 12.50% (Floor 0.50%)		—		—			433		12,844		6		100		12,750
Group, LLC	Preferred Member Units		—		—			—		1,600		—		—		1,600

Volusion, LLC	11.5% Secured Debt		—		—			645		15,298		141		—		15,439
	Preferred Member Units		—		—			—		14,000		—		—		14,000
	Warrants		—		(127	)		—		2,576		—		126		2,450

Other
Amounts related to investments transferred to or from other 1940 Act classification during the period			—		—			—		—		—		—		—

Total Affiliate investments		$	22,930	$	(26,121	)	$	9,899	$	375,948	$	13,735	$	60,659	$	329,024

(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.
(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.

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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): This schedule should be read in conjunction with the consolidated schedule of investments and notes to the consolidated financial statements. Supplemental information can located within the 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.

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Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The information in this section contains forward-looking statements that involve risks and uncertainties. Please see "Risk Factors" and "Cautionary Statement Concerning Forward-Looking Statements" in our Annual Report on Form 10-K for the year ended December 31, ~~2016,~~2017, filed with the Securities and Exchange Commission (the "SEC") on February ~~24, 2017,~~23, 2018, for a discussion of the uncertainties, risks and assumptions associated with these statements. You should read the following discussion in conjunction with the consolidated financial statements and related notes and other financial information included elsewhere in this Quarterly Report and in the Annual Report on Form 10-K for the year ended December 31, ~~2016.~~2017.

ORGANIZATION

MSC Adviser I, LLC (the "External Investment Manager") was formed in November 2013 as a wholly owned subsidiary of MSCC to provide investment management and other services to parties other than MSCC and its subsidiaries or their portfolio companies ("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 MSCC and is not included as a consolidated subsidiary of MSCC in MSCC's consolidated financial statements.

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. ~~The External Investment Manager is also a direct wholly owned subsidiary that has elected to~~

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~~be a taxable entity. The Taxable Subsidiaries and the External Investment Manager are each taxed at their normal corporate tax rates based on their taxable income.~~

OVERVIEW

Our principal investment objective is to maximize our portfolio's total return by generating current income from our debt investments 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. Our LMM companies generally have annual revenues between $10 million and $150 million, and our LMM portfolio investments generally range in size from $5 million to $50 million. Our Middle Market investments are made in businesses that are generally larger in size than our LMM portfolio 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 ~~$15~~$20 million. Our private loan ("Private Loan") portfolio investments are primarily debt securities in privately held companies which have been originated through strategic relationships with other investment funds on a collaborative basis. Private Loan investments are typically similar in size, structure, terms and conditions to investments we hold in our LMM portfolio and Middle Market portfolio.

We seek to fill the financing gap for LMM businesses, which, historically, have had ~~more~~ 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 participations. 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, "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.

Our Middle Market portfolio investments primarily consist of direct investments in or secondary purchases of interest-bearing debt securities in privately held companies that are generally larger in size than the companies included in our LMM portfolio. Our Middle Market portfolio debt investments are generally secured by either a first or second 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 Private Loan portfolio investments are primarily debt securities in privately held companies which have been originated through strategic relationships with other investment funds on a collaborative basis, and are often referred to in the debt markets as "club deals." 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 either a first or second 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.

Our other portfolio ("Other Portfolio") investments primarily consist of investments which are not consistent with the typical profiles for our LMM, Middle Market or Private Loan 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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employees in connection with its asset management business generally, and specifically for its relationship with HMS Income Fund, Inc. ("HMS Income"). Through this agreement, we share employees with the External Investment Manager, including their related infrastructure, business relationships, management expertise and capital raising capabilities.

The following tables provide a summary of our investments in the LMM, Middle Market and Private Loan portfolios as of March 31, ~~2017~~2018 and December 31, ~~2016~~2017 (this information excludes the Other Portfolio investments and the External Investment Manager which are discussed further below):

	As of March 31, 2017						As of March 31, 2018

	LMM(a)		Middle Market		Private Loan		LMM(a)		Middle Market		Private Loan
	(dollars in millions)						(dollars in millions)
Number of portfolio companies		73		69		49		73		59		55
Fair value	$	886.6	$	568.8	$	384.2	$	1,049.8	$	617.9	$	496.5
Cost	$	772.1	$	588.9	$	403.7	$	898.9	$	629.9	$	521.6
% of portfolio at cost—debt		67.6%		96.9%		94.0%		67.7%		96.7%		93.7%
% of portfolio at cost—equity		32.4%		3.1%		6.0%		32.3%		3.3%		6.3%
% of debt investments at cost secured by first priority lien		96.1%		88.8%		90.2%		98.4%		91.0%		94.3%
Weighted-average annual effective yield(b)		12.2%		8.6%		9.6%		12.1%		9.2%		9.4%
Average EBITDA(c)	$	4.6	$	95.5	$	24.8	$	4.8	$	86.3	$	43.0

(a): At March 31, ~~2017,~~2018, we had equity ownership in approximately ~~99%~~97% of our LMM portfolio companies, and the average fully diluted equity ownership in those portfolio companies was approximately ~~37%~~38%.
(b): The weighted-average annual effective yields were computed using the effective interest rates for all debt investments at cost as of March 31, 2018, 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. Weighted-average annual effective yield is higher than what an investor in shares of our common stock will realize on its investment because it does not reflect 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 Middle Market and Private Loan portfolios. These calculations exclude certain portfolio companies, including six LMM portfolio companies and three Private Loan portfolio companies, as EBITDA is not a meaningful valuation metric for

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our investments in these portfolio companies, and those portfolio companies whose primary purpose is to own real estate.

	As of December 31, 2017

	LMM(a)		Middle Market		Private Loan
	(dollars in millions)
Number of portfolio companies		70		62		54
Fair value	$	948.2	$	609.3	$	467.5
Cost	$	776.5	$	629.7	$	489.2
% of portfolio at cost—debt		67.1%		97.3%		93.6%
% of portfolio at cost—equity		32.9%		2.7%		6.4%
% of debt investments at cost secured by first priority lien		98.1%		90.5%		94.5%
Weighted-average annual effective yield(b)		12.0%		9.0%		9.2%
Average EBITDA(c)	$	4.4	$	78.3	$	39.6

(a): At December 31, 2017, we had equity ownership in approximately 97% of our LMM portfolio companies, and the average fully diluted equity ownership in those portfolio companies was approximately 39%.
(b): The weighted-average annual effective yields were computed using the effective interest rates for all debt investments at cost as of December 31, 2017, 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. Weighted-average annual effective yield is higher than what an investor in shares of our common stock will realize on its investment because it does not reflect 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 Middle Market and Private Loan portfolios. These calculations exclude certain portfolio companies, including ~~five~~six LMM portfolio companies, one Middle Market portfolio company and three 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, 2016

LMM(a) Middle Market Private Loan

(dollars in millions)

Number of portfolio companies
73 78 46
Fair value
$ 892.6 $ 630.6 $ 342.9
Cost
$ 760.3 $ 646.8 $ 357.7
% of portfolio at cost—debt
69.1% 97.2% 93.5%
% of portfolio at cost—equity
30.9% 2.8% 6.5%
% of debt investments at cost secured by first priority lien
92.1% 89.1% 89.0%
Weighted-average annual effective yield(b)
12.5% 8.5% 9.6%
Average EBITDA(c)
$ 5.9 $ 98.6 $ 22.7

~~(a)~~: ~~At December 31, 2016, we had equity ownership in approximately 99% of our LMM portfolio companies, and the average fully diluted equity ownership in those portfolio companies was approximately 36%.~~
~~(b)~~: The weighted-average annual effective yields were computed using the effective interest rates for all debt investments at cost as of December 31, 2016, 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. Weighted-average annual effective yield is higher than what an investor in shares of our common stock will realize on its investment because it does not reflect 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 Middle Market and Private Loan portfolios. These calculations exclude certain portfolio companies, including five LMM portfolio companies, one Middle Market portfolio company and three Private Loan portfolio companies, as EBITDA is not a meaningful valuation metric for our investments in these portfolio companies.

As of March 31, ~~2017,~~2018, we had Other Portfolio investments in ~~ten~~eleven companies, collectively totaling approximately ~~$106.3~~$101.1 million in fair value and approximately ~~$111.8~~$107.1 million in cost basis and which comprised approximately ~~5.4%~~4.4% of our Investment Portfolio (as defined in "—Critical Accounting Policies—Basis of Presentation" below) at fair value. As of December 31, ~~2016,~~2017, we had Other Portfolio investments in ~~ten~~eleven companies, collectively totaling approximately ~~$100.3~~$104.6 million in fair value and approximately ~~$107.1~~$109.4 million in cost basis and which comprised approximately ~~5.0%~~4.8% of our Investment Portfolio at fair value.

As previously discussed, the External Investment Manager is a wholly owned subsidiary that is treated as a portfolio investment. As of March 31, 2018, there was no cost basis in this investment and the investment had a fair value of approximately $48.7 million, which comprised approximately 2.1% of our Investment Portfolio at fair value. As of December 31, 2017, there was no cost basis in this investment and the investment had a fair value of approximately ~~$33.5~~$41.8 million, which comprised approximately 1.7% of our Investment Portfolio at fair value. As of December 31, 2016, there was no cost basis in this investment and the investment had a fair value of approximately $30.6 million, which comprised approximately 1.5%1.9% of our Investment Portfolio at fair value.

Our portfolio investments are generally made through MSCC and the Funds. MSCC and the Funds share the same investment strategies and criteria, although they are subject to different

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regulatory regimes. An investor's return in MSCC will depend, in part, on the Funds' 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

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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.

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 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. For the three months ended March 31, ~~2017~~2018 and ~~2016,~~2017, the ratio of our total operating expenses, excluding interest expense, as a percentage of our quarterly average total assets was ~~1.6%~~1.5% and ~~1.4%~~1.6%, respectively, on an annualized ~~basis.~~basis and 1.5% for the year ended December 31, 2017, excluding certain non-recurring professional fees and other expenses. Including those expenses, the ratio for the year ended December 31, 2017 was 1.6%.

During May 2012, we entered into an investment sub-advisory agreement with HMS Adviser, LP ("HMS Adviser"), which is the investment advisor to HMS Income, a non-listed BDC, to provide certain investment advisory services to HMS Adviser. In December 2013, after obtaining required no-action relief from the SEC to allow us to own a registered investment adviser, we assigned the sub-advisory agreement to the External Investment Manager since the fees received from such arrangement could otherwise have negative consequences on our ability to meet the source-of-income requirement necessary for us to maintain our RIC tax treatment. Under the investment sub-advisory agreement, the External Investment Manager is entitled to 50% of the base management fee and the incentive fees earned by HMS Adviser under its advisory agreement with HMS Income. Based upon several fee waiver agreements with HMS Income and HMS Adviser, the External Investment Manager did not begin accruing the base management fee and incentive fees, if any, until January 1, 2014. The External Investment Manager has conditionally agreed to waive a limited amount of the historical incentive fees otherwise earned. During the three months ended March 31, ~~2017~~2018 and ~~2016,~~2017, the External Investment Manager earned ~~$2.6~~$2.8 million and ~~$2.3~~$2.6 million, respectively, of management fees (net of fees waived, if any) under the sub-advisory agreement with HMS Adviser.

During April 2014, we received an exemptive order from the SEC permitting co-investments by us and HMS Income in certain negotiated transactions where co-investing would otherwise be prohibited under the 1940 Act. We have made, and in the future intend to continue to make, such co-investments with HMS Income 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 HMS Income and, if it is appropriate, to propose an allocation of the investment opportunity between us and HMS Income. Because the External Investment Manager may receive performance-based fee compensation from HMS Income, this may provide it an incentive to allocate opportunities to HMS Income instead of us. However, both we and the External Investment Manager have policies and procedures in place to manage this conflict.

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CRITICAL ACCOUNTING POLICIES

Basis of Presentation

Our consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP"). For each of the periods presented herein, our consolidated financial statements include the accounts of MSCC and its

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consolidated subsidiaries. The Investment Portfolio, as used herein, refers to all of our investments in LMM portfolio companies, investments in Middle Market portfolio companies, Private Loan portfolio investments, Other Portfolio investments, and the investment in the External Investment Manager. Our results of operations and cash flows for the three months ended March 31, ~~2017~~2018 and ~~2016,~~2017 and financial position as of March 31, ~~2017~~2018 and December 31, ~~2016,~~2017, are presented on a consolidated basis. The effects of all intercompany transactions between us and our consolidated subsidiaries have been eliminated in consolidation. Certain reclassifications have been made to prior period balances to conform with the current presentation.

Our accompanying unaudited consolidated financial statements are presented in conformity with U.S. GAAP for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain disclosures accompanying annual financial statements prepared in accordance with U.S. GAAP are omitted. In the opinion of management, the unaudited consolidated financial results included herein contain all adjustments, consisting solely of normal recurring accruals, considered necessary for the fair presentation of financial statements for the interim periods included herein. The results of operations for the three months ended March 31, ~~2017~~2018 and ~~2016~~2017 are not necessarily indicative of the operating results to be expected for the full year. Also, the unaudited financial statements and notes should be read in conjunction with the audited financial statements and notes thereto for the year ended December 31, ~~2016.~~2017. Financial statements prepared on a U.S. GAAP basis require management to make estimates and assumptions that affect the amounts and disclosures reported in the financial statements and accompanying notes. Such estimates and assumptions could change in the future as more information becomes known, which could impact the amounts reported and disclosed herein.

~~Under regulations pursuant to Article 6 of Regulation S-X applicable to BDCs~~We are an investment company following the accounting and reporting guidance in Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 946,Financial Services—Investment Companies ("ASC 946"),. Under regulations pursuant to Article 6 of Regulation S-X applicable to BDCs and ASC 946, we are precluded from consolidating other entities in which we have equity investments, including those in which we have a controlling interest, unless the other entity is another investment company. An exception to this general principle in ASC 946 occurs if we hold a controlling interest in an operating company that provides all or substantially all of its services directly to us or to any of our portfolio companies. Accordingly, as noted above, our consolidated financial statements include the financial position and operating results for the Funds and the Taxable Subsidiaries. We have determined that all of our portfolio investments do not qualify for this exception, including the investment in the External Investment Manager. Therefore, our Investment Portfolio is carried on the consolidated balance sheet at fair value with any adjustments to fair value recognized as "Net ~~Change in~~ Unrealized Appreciation (Depreciation)" on the consolidated statements of operations until the investment is realized, usually upon exit, resulting in any gain or loss being recognized as a "Net Realized Gain (Loss)."

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. As of both March 31, ~~2017~~2018 and December 31, ~~2016,~~2017, our Investment Portfolio valued at fair value represented approximately ~~95% and~~ 96% of our total ~~assets, respectively.~~assets. We are required to

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report our investments at fair value. We follow the provisions of Financial Accounting Standards Board ("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.—Valuation of the Investment Portfolio"

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in the notes to consolidated financial statements 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.

Our Board of Directors has the final responsibility for overseeing, reviewing and approving, in good faith, our determination of the fair value for our Investment Portfolio and our valuation procedures, consistent with 1940 Act requirements. We believe our Investment Portfolio as of March 31, ~~2017~~2018 and December 31, ~~2016~~2017 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. In accordance with our valuation policies, 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 all of its debt or other obligations, 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 or other obligations, 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 connection with debt financing transactions for services that do not meet these criteria are treated as debt origination fees and are 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

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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 below), 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

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PIK interest and dividends in arrears are no longer collectible. For the three months ended March 31, ~~2017~~2018 and ~~2016,~~2017, (i) approximately ~~3.4%~~1.0% and ~~3.1%~~3.4%, respectively, of our total investment income was attributable to PIK interest income not paid currently in cash and (ii) approximately ~~1.8%~~1.0% and ~~0.8%~~1.8%, respectively, of our total investment income was attributable to cumulative dividend income not paid currently in cash.

Share-Based Compensation

We account for our share-based compensation plans using the fair value method, as prescribed by ASC 718,Compensation—Stock Compensation. Accordingly, for restricted stock awards, we measure the grant date fair value based upon the market price of our common stock on the date of the grant and amortize the fair value of the awards as share-based compensation expense over the requisite service period, which is generally the vesting term.

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, 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 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.

The Taxable Subsidiaries primarily hold certain portfolio investments for us. The Taxable Subsidiaries permit us to hold equity investments in portfolio companies which are "pass-through" entities for tax purposes and to continue to comply with the ~~"source-income"~~"source-of-income" requirements contained in the RIC tax provisions of the Code. The Taxable Subsidiaries are consolidated with us for U.S. GAAP financial reporting purposes, and the portfolio investments held by the Taxable Subsidiaries are included in our 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. ~~This~~The Taxable Subsidiaries are each taxed at their normal corporate 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 our consolidated financial statements.

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In December 2017, the "Tax Cuts and Jobs Act" legislation was enacted. The Tax Cuts and Jobs Act includes significant changes to the U.S. corporate tax system, including a U.S. Federal corporate income tax rate reduction from 35% to 21% and other changes. ASC 740,Income Taxes, requires the effects of changes in tax rates and laws on deferred tax balances to be recognized in the period in which the legislation was enacted. As such, we have accounted for the tax effects as a result of the enactment of the Tax Cuts and Jobs Act beginning with the period ended December 31, 2017.

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

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generally excludes net unrealized appreciation or depreciation, as investment gains or losses are not included in taxable income until they are realized.

INVESTMENT PORTFOLIO COMPOSITION

Our LMM portfolio investments primarily consist of secured debt, equity warrants and direct equity investments in privately held, LMM companies based in the United States. Our LMM portfolio companies generally have annual revenues between $10 million and $150 million, and our LMM investments generally range in size from $5 million to $50 million. The LMM debt investments are typically secured by either a first or second priority lien on the assets of the portfolio company, generally bear interest at fixed rates, and generally have a term of between five and seven years from the original investment date. In most LMM portfolio companies, we receive nominally priced equity warrants and/or make direct equity investments in connection with a debt investment.

Our Middle Market portfolio investments primarily consist of direct investments in or secondary purchases of interest-bearing debt securities 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 companies generally have annual revenues between $150 million and $1.5 billion, and our Middle Market investments generally range in size from $3 million to ~~$15~~$20 million. Our Middle Market portfolio debt investments are generally secured by either a first or second 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.

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LMM portfolio and Middle Market portfolio. Our Private Loan portfolio debt investments are generally secured by either a first or second 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.

Our Other Portfolio investments primarily consist of investments which are not consistent with the typical profiles for LMM, Middle Market and Private Loan portfolio investments, including investments which may be managed by third parties. In the 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.

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. 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 HMS Income. Through this agreement, we share employees with the External Investment Manager, including their related infrastructure, business relationships, management expertise and capital raising ~~capabilities. In~~capabilities, and we allocate the ~~first quarter of 2014, we began allocating costs~~related expenses to the External Investment Manager pursuant to the sharing agreement. Our total expenses for the three months ended March 31, ~~2017~~2018 and ~~2016~~2017 are net of expenses allocated to the External Investment Manager of ~~$1.5~~$2.1 million and ~~$1.2~~$1.5 million, respectively. 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. 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 received from the External Investment

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Manager. For the three months ended March 31, ~~2017~~2018 and ~~2016,~~2017, the total contribution to our net investment income was ~~$2.2~~$2.6 million and ~~$1.9~~$2.2 million, respectively.

The following tables summarize the composition of our total combined LMM portfolio investments, Middle Market portfolio investments and Private Loan portfolio investments at cost and fair value by type of investment as a percentage of the total combined LMM portfolio investments, Middle Market portfolio investments and Private Loan portfolio investments as of March 31, ~~2017~~2018 and December 31, ~~2016~~2017 (this information excludes the Other Portfolio investments and the External Investment Manager).

Cost:

First lien debt	76.6%	76.1%	78.7%	79.0%
Equity	15.6%	14.5%	16.1%	15.3%
Second lien debt	6.2%	7.7%	4.1%	4.5%
Equity warrants	1.0%	1.1%	0.7%	0.7%
Other	0.6%	0.6%	0.4%	0.5%

	100.0%	100.0%	100.0%	100.0%

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Fair Value:

First lien debt	69.6%	68.7%	71.5%	70.5%
Equity	23.2%	22.6%	23.7%	24.4%
Second lien debt	5.8%	7.2%	3.8%	4.1%
Equity warrants	0.8%	0.9%	0.6%	0.6%
Other	0.6%	0.6%	0.4%	0.4%

	100.0%	100.0%	100.0%	100.0%

Our LMM portfolio investments, Middle Market portfolio investments and Private Loan 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 "Risk Factors—Risks Related to Our Investments" contained in our Form 10-K for the fiscal year ended December 31, ~~2016~~2017 and "Risk Factors" below for a more complete discussion of the risks involved with investing in our Investment Portfolio.

PORTFOLIO ASSET QUALITY

We utilize an internally developed investment rating system to rate the performance of each LMM portfolio company and to monitor our expected level of returns on each of our LMM 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.

•: ~~Investment Rating 1 represents a LMM portfolio company that is performing in a manner which significantly exceeds expectations.~~

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•: ~~Investment Rating 2 represents a LMM portfolio company that, in general, is performing above expectations.~~
•: ~~Investment Rating 3 represents a LMM portfolio company that is generally performing in accordance with expectations.~~
•: ~~Investment Rating 4 represents a LMM portfolio company that is underperforming expectations. Investments with such a rating require increased monitoring and scrutiny by us.~~
•: Investment Rating 5 represents a LMM portfolio company that is significantly underperforming. Investments with such a rating require heightened levels of monitoring and scrutiny by us and involve the recognition of significant unrealized depreciation on such investment.

~~All new LMM portfolio investments receive an initial Investment Rating of 3.~~

~~The following table shows the distribution of our LMM portfolio investments on the 1 to 5 investment rating scale at fair value as~~As of March 31, ~~2017~~2018, our total Investment Portfolio had six investments on non-accrual status, which comprised approximately 0.8% of its fair value and ~~December 31, 2016:~~

As of March 31, 2017 As of December 31, 2016
Investment Rating
Investments at
Fair Value Percentage of
Total Portfolio Investments at
Fair Value Percentage of
Total Portfolio

(dollars in thousands)

1
$ 241,988 27.3% $ 253,420 28.4%
2
195,294 22.0% 258,085 28.9%
3
354,367 40.0% 294,807 33.0%
4
82,485 9.3% 75,433 8.5%
5
12,425 1.4% 10,847 1.2%

Total
$ 886,559 100.0% $ 892,592 100.0%

~~Based upon our investment rating system, the weighted-average rating~~3.3% of ~~our LMM portfolio was approximately 2.4 and 2.3 as of March 31, 2017 and December 31, 2016, respectively.~~

its cost. As of ~~March~~December 31, 2017, our total Investment Portfolio had five investments on non-accrual status, which comprised approximately 0.2% of its fair value and ~~2.7% of its cost. As of December 31, 2016, our total Investment Portfolio had four investments on non-accrual status, which comprised approximately 0.6% of its fair value and 3.0%~~2.3% of its cost.

The operating results of our portfolio companies are impacted by changes in the broader fundamentals of the United States economy. In the event that 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 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

Comparison of the three months ended March 31, ~~2017~~2018 and March 31, ~~2016~~2017

	Three Months Ended March 31,						Net Change					Three Months Ended March 31,						Net Change

	2017			2016			Amount			%		2018			2017			Amount			%
	(dollars in thousands)											(dollars in thousands)
Total investment income	$	47,889		$	42,006		$	5,883			14%	$	55,942		$	47,889		$	8,053			17%
Total expenses		(16,723	)		(14,842	)		(1,881	)		13%		(18,967	)		(16,723	)		(2,244	)		13%

Net investment income		31,166			27,164			4,002			15%		36,975			31,166			5,809			19%
Net realized gain from investments		27,565			13,603			13,962					7,460			27,565			(20,105	)
Net realized loss from SBIC debentures		(5,217	)		—			(5,217	)				(1,374	)		(5,217	)		3,843
Net change in net unrealized appreciation (depreciation) from:
Net unrealized appreciation (depreciation) from:
Portfolio investments		(22,091	)		(27,529	)		5,438					(10,882	)		(22,091	)		11,209
SBIC debentures and marketable securities and idle funds		5,665			1,311			4,354
SBIC debentures													1,359			5,665			(4,306	)

Total net change in net unrealized depreciation		(16,426	)		(26,218	)		9,792
Total net unrealized appreciation (depreciation)													(9,523	)		(16,426	)		6,903
Income tax benefit (provision)		(5,638	)		2,263			(7,901	)				979			(5,638	)		6,617

Net increase in net assets resulting from operations	$	31,450		$	16,812		$	14,638			87%	$	34,517		$	31,450		$	3,067			10%

	Three Months Ended March 31,				Net Change				Three Months Ended March 31,				Net Change

	2017		2016		Amount		%		2018		2017		Amount		%
	(dollars in thousands, except per share amounts)								(dollars in thousands, except per share amounts)
Net investment income	$	31,166	$	27,164	$	4,002		15%	$	36,975	$	31,166	$	5,809		19%
Share-based compensation expense		2,269		1,589		680		43%		2,303		2,269		34		1%

Distributable net investment income(a)	$	33,435	$	28,753	$	4,682		16%	$	39,278	$	33,435	$	5,843		17%



Net investment income per share—Basic and diluted	$	0.57	$	0.54	$	0.03		6%	$	0.63	$	0.57	$	0.06		11%



Distributable net investment income per share—Basic and diluted(a)	$	0.61	$	0.57	$	0.04		7%	$	0.67	$	0.61	$	0.06		10%

(a): Distributable net investment income is net investment income as determined in accordance with U.S. GAAP, excluding the impact of share-based compensation expense which is non-cash in nature. We believe presenting distributable net investment income and related per share amounts is useful and appropriate supplemental disclosure of information for analyzing our financial performance since share-based compensation does not require settlement in cash. However, distributable net investment income is a non-U.S. GAAP measure and should not be considered as a replacement to net investment income and other earnings measures presented in accordance with U.S. GAAP. Instead, distributable net investment income 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 presented in the table above.

Investment Income

For the three months ended March 31, ~~2017,~~2018, total investment income was ~~$47.9~~$55.9 million, a ~~14%~~17% increase over the ~~$42.0~~$47.9 million of total investment income for the corresponding period of ~~2016.~~2017. This comparable period increase was principally attributable to ~~(i)~~ a ~~$6.3~~$6.8 million increase in dividend income from Investment Portfolio equity investments and $1.1 million net increase in interest income primarily ~~related to higher average levels of portfolio debt investments and increased activities involving~~

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related to higher average levels of Investment Portfolio debt investments, partially offset by a decrease in interest income associated with decreased repricing and other activities involving existing Investment Portfolio debt investments ~~and (ii) a $0.4 million increase in fee income, partially offset by a $0.6 million decrease in dividend income from Investment Portfolio equity investments.~~when compared to prior year. The ~~$5.9~~$8.1 million increase in total investment income in the three months ended March 31, ~~2017~~2018 includes ~~an increase~~elevated levels of ~~$2.7~~dividend income activity from certain Investment Portfolio equity investments, partially offset by a decrease of $1.8 million related to ~~higher~~lower accelerated prepayment, repricing and other activity for certain Investment Portfolio debt investments when compared to the same period in ~~2016.~~2017.

Expenses

For the three months ended March 31, ~~2017,~~2018, total expenses increased to ~~$16.7~~$19.0 million from ~~$14.8~~$16.7 million for the corresponding period of ~~2016.~~2017. This comparable period increase in operating expenses was principally attributable to (i) a ~~$0.7~~$1.7 million increase in ~~share-based compensation~~interest expense, primarily due to (a) a $2.2 million increase as a result of the issuance of our 4.50% Notes due 2022 in November 2017 and (b) a $0.4 million increase from the SBIC debentures due to the higher average balance as compared to the same period in 2017, with these increases partially offset by a decrease of $1.0 million related to the Credit Facility due to the lower average balance during 2018 and (ii) a ~~$0.6~~$1.1 million increase in compensation expense related to increases in the number of personnel, base compensation levels and incentive compensation accruals, (iii) a $0.5 million increase in general and administrative expenses, primarily related to non-recurring professional fees and other expenses incurred on certain potential new portfolio investment opportunities which were terminated during the due diligence and legal documentation processes, and (iv) a $0.4 million increase in interest expense, primarily due to the higher average interest rate and balance outstanding on our Credit Facility in the three months ended March 31, 2017, with these increases partially offset by a ~~$0.4~~$0.5 million increase in the expenses allocated to the External Investment Manager as a result of elevated non-recurring strategic activities at the External Investment Manager during the three months ended March 31, 2018, in each case when compared to the same period in the prior year. ~~For the three months ended March 31, 2017, the~~The ratio of our total operating expenses, excluding interest expense, as a percentage of our quarterly average total assets ~~was 1.6% on an annualized basis, compared to 1.4% on an annualized basis~~ for the three months ended March 31, ~~2016~~2018 was 1.5% on an annualized basis compared to 1.6% for the three months ended March 31, 2017 and 1.5% for the year ended December 31, ~~2016.~~2017, excluding certain non-recurring professional fees and other expenses incurred in 2017. Including the effect of those non-recurring expenses, the ratio for the year ended December 31, 2017 was 1.6%.

Net Investment Income

Net investment income for the three months ended March 31, ~~2017~~2018 was ~~$31.2~~$37.0 million, or a ~~15%~~19% increase, compared to net investment income of ~~$27.2~~$31.2 million for the corresponding period of ~~2016.~~2017. 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.

Distributable Net Investment Income

For the three months ended March 31, ~~2017,~~2018, distributable net investment income increased ~~16%~~17% to $39.3 million, or $0.67 per share, compared with $33.4 million, or $0.61 ~~per share, compared with $28.8 million, or $0.57~~ per share in the corresponding period of ~~2016.~~2017. The increase in distributable net investment income was primarily due to the higher level of total investment income, partially offset by higher operating expenses both as discussed above. Distributable net investment income on a per share basis for the three months ended March 31, ~~2017~~2018 reflects (i) ~~an increase~~elevated levels of dividend income activity from certain Investment Portfolio equity investments, (ii) a decrease of approximately ~~$0.05~~$0.03 per share from the comparable period in ~~2016~~2017 attributable to the net ~~increase~~decrease in the comparable levels of accelerated prepayment, repricing and other unusual activity for certain Investment Portfolio debt investments and ~~(ii)~~(iii) a greater number of average shares outstanding compared to the corresponding period in ~~2016~~2017 primarily due to shares issued through the ATM Program (as defined in "—Liquidity and Capital Resources—Capital Resources" below)., shares issued pursuant to our equity incentive plans and shares issued pursuant to our dividend reinvestment plan.

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Net Increase in Net Assets Resulting from Operations

The net increase in net assets resulting from operations during the three months ended March 31, ~~2017~~2018 was $34.5 million, or $0.59 per share, compared with $31.5 million, or $0.57 ~~per share, compared with $16.8 million, or $0.33~~ per share, during the three months ended March 31, ~~2016.~~2017. This ~~$14.6~~$3.1 million ~~increase~~improvement from ~~the same period in~~ the prior year was primarily the result of (i) a ~~$14.0 million increase in the net realized gain (loss) from investments, (ii) a $9.8~~$6.9 million improvement in net ~~change in~~ unrealized appreciation (depreciation) from portfolio investments and SBIC debentures, including the impact of accounting reversals relating to realized ~~gains~~gains/income (losses), (ii) a $6.6 million change in the income tax benefit (provision) from ~~net unrealized depreciation~~an income tax provision of ~~$26.2 million for the three months ended March 31, 2016 to a net~~

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~~unrealized depreciation of $16.4~~$5.6 million for the three months ended March 31, 2017 ~~and~~to an income tax benefit of $1.0 million for the three months ended March 31, 2018, (iii) a ~~$4.0~~$5.8 million increase in net investment income as discussed above ~~partially offset by (i)~~and (iv) a ~~$5.2~~$3.8 million improvement in the net realized loss ~~on the repayment of~~from SBIC debentures outstanding at MSC II which had previously been accounted for on the fair value method of accounting, ~~and (ii)~~with these increases partially offset by a ~~$7.9~~$20.1 million ~~increase~~decrease in the ~~income tax provision~~net realized gain from ~~an income tax benefit~~investments to a total net realized gain from investments of ~~$2.3~~$7.5 million for the three months ended March 31, ~~2016 to an income tax provision~~2018. The net realized gain from investments of ~~$5.6~~$7.5 million for the three months ended March 31, ~~2017. The net realized gain from investments of $27.6 million for the three months ended March 31, 2017~~2018 was primarily the result of (i) the ~~net~~ realized gain of ~~$22.3~~$13.1 million resulting from gains on the ~~exit~~exits of two LMM investments and (ii) ~~the~~ realized ~~gain~~gains of ~~$2.6 million on the exit of one Private Loan investment and (iii) the net realized gain of $2.5~~$3.2 million due to activity in our Other ~~Portfolio.~~Portfolio, with these gains partially offset by the net realized loss of $8.6 million in our Middle Market portfolio, which is primarily the result of (a) the realized loss of $3.3 million on the exit of a Middle Market investment and (b) the realized loss of $5.3 million on the restructure of a Middle Market investment. The realized loss of ~~$5.2~~$1.4 million on the repayment of SBIC debentures is related to the previously recognized bargain purchase gain resulting from recording the MSC II debentures at fair value on the date of the acquisition of the majority of the equity interests of MSC II in 2010. The effect of the realized loss is offset by the reversal of all previously recognized unrealized depreciation on these SBIC debentures due to fair value adjustments since the date of the ~~acquisition.~~acquisition in 2010.

The following table provides a summary of the total net unrealized depreciation of ~~$16.4~~$9.5 million for the three months ended March 31, ~~2017:~~2018:

	Three Months Ended March 31, 2017															Three Months Ended March 31, 2018

	LMM(a)			Middle Market			Private Loan			Other(b)			Total			LMM(a)			Middle Market			Private Loan			Other(b)			Total
	(dollars in millions)															(dollars in millions)
Accounting reversals of net unrealized appreciation recognized in prior periods due to net realized gains recognized during period	$	(20.0	)	$	(1.8	)	$	(1.4	)	$	(1.1	)	$	(24.3	)
Accounting reversals of net unrealized (appreciation) depreciation recognized in prior periods due to net realized (gains)/(income) losses recognized during the current period																$	(18.8	)	$	8.8		$	(0.3	)	$	(0.4	)	$	(10.7	)
Net unrealized appreciation (depreciation) relating to portfolio investments		2.2			(2.0	)		(3.3	)		5.3			2.2			(3.3	)		(0.3	)		(2.6	)		6.0			(0.2	)

Total net change in unrealized appreciation (depreciation) relating to portfolio investments	$	(17.8	)	$	(3.8	)	$	(4.7	)	$	4.2		$	(22.1	)
Total net unrealized appreciation (depreciation) relating to portfolio investments																$	(22.1	)	$	8.5		$	(2.9	)	$	5.6		$	(10.9	)



Net unrealized appreciation relating to SBIC debentures(c)														5.7
Unrealized appreciation relating to SBIC debentures(c)																													1.4

Total net change in unrealized depreciation													$	(16.4	)
Total net unrealized depreciation																												$	(9.5	)

(a): LMM includes unrealized appreciation on 2226 LMM portfolio investments and unrealized depreciation on 159 LMM portfolio investments.
(b): Other includes ~~$2.9~~$7.0 million of unrealized appreciation relating to the External Investment Manager, ~~and $2.4~~partially offset by $1.0 million of net unrealized ~~appreciation~~depreciation relating to the Other Portfolio.

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(c): ~~Relates to~~The $1.4 million of unrealized appreciation on the SBIC debentures held by MSC II which are accounted for on a fair value basis ~~and includes $6.0 million of~~is due to the accounting reversals ~~resulting from the reversal~~ of previously recognized unrealized depreciation recorded due to fair value adjustments since the date of acquisition of MSC II on the debentures ~~repaid due to fair value adjustments since such date, partially offset by $0.3 million of current period unrealized depreciation on the remaining SBIC debentures.~~repaid.

The income tax ~~provision~~benefit for the three months ended March 31, ~~2017~~2018 of ~~$5.6~~$1.0 million principally consisted of a deferred tax ~~provision~~benefit of ~~$4.4~~$1.9 million, which is primarily the result of the net activity relating to our portfolio investments held in our Taxable Subsidiaries, including changes in ~~net operating~~ loss carryforwards, changes in net unrealized appreciation/depreciation and other temporary book-tax differences, ~~as well as~~and other current tax expense of ~~$1.3~~$0.9 million related to (i) a ~~$0.9~~$0.4 million

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accrual for excise tax on our estimated undistributed taxable income and (ii) ~~other~~ current tax expense of ~~$0.4~~$0.5 million related to accruals for U.S. federal and state income taxes.

Liquidity and Capital Resources

Cash Flows

For the three months ended March 31, ~~2017,~~2018, we experienced a net ~~increase~~decrease in cash and cash equivalents in the amount of approximately ~~$9.1~~$22.4 million, which is the net result of approximately ~~$55.8~~$143.2 million of cash used in our operating activities and approximately $120.7 million of cash provided by our ~~operating activities and approximately $46.6 million of cash used by~~ financing activities.

During the period, ~~we generated $55.8~~$143.2 million of cash ~~from~~was used in our operating activities, which resulted primarily from (i) cash flows we generated from the operating profits earned through our operating activities totaling ~~$26.9~~$35.8 million, which is our ~~$33.4~~$39.3 million of distributable net investment income, excluding the non-cash effects of the accretion of unearned income of ~~$4.7~~$3.2 million, payment-in-kind interest income of ~~$1.6~~$0.6 million, cumulative dividends of ~~$0.9~~$0.6 million and the amortization expense for deferred financing costs of ~~$0.7~~$0.9 million, (ii) cash uses totaling ~~$192.6~~$345.0 million consisting of (a) ~~$186.9~~$340.4 million ~~from~~for the funding of new portfolio company investments and settlement of accruals for portfolio investments existing as of December 31, ~~2016,~~2017, (b) ~~$4.1~~$2.5 million related to increases in other assets and (c) $2.1 million related to decreases in payables and accruals and ~~(c) $1.6 million related to increases in other assets and~~ (iii) cash proceeds totaling ~~$221.5~~$166.1 million which resulted from the sales and repayments of debt investments and sales of and return on capital of equity investments.

During the three months ended March 31, ~~2017, $46.6~~2018, $120.7 million in cash was ~~used in~~provided by our financing activities, which principally consisted of (i) ~~$28.6~~$11.3 million in net cash proceeds from the ATM Program (described below), (ii) $124.0 million in cash proceeds from the Credit Facility and (iii) $22.0 million in cash proceeds from issuance of SBIC debentures, partially offset by (i) $31.9 million in cash dividends paid to stockholders, (ii) ~~$55.0 million in net repayments on the Credit Facility, (iii) $25.2~~$4.0 million in repayment of SBIC debentures, ~~(iv) $0.6 million for payment of deferred loan costs, SBIC debenture fees and other costs and (v) $0.3~~(iii) $0.2 million for purchases of vested restricted stock from employees to satisfy their tax withholding requirements upon the vesting of such restricted stock ~~partially offset by (i) $37.7~~and (iv) $0.5 million ~~in net cash proceeds from the ATM Program (described below)~~for payment of deferred debt issuance costs, SBIC debenture fees and ~~(ii) $25.4 million in cash proceeds from issuance of SBIC debentures.~~other costs.

Capital Resources

As of March 31, ~~2017,~~2018, we had ~~$33.6~~$29.1 million in cash and cash equivalents and ~~$267.0~~$397.0 million of unused capacity under the Credit Facility, which we maintain to support our investment and operating activities. As of March 31, ~~2017,~~2018, our net asset value totaled ~~$1,243.9~~$1,396.6 million, or ~~$22.44~~$23.67 per share.

The Credit Facility, which provides additional liquidity to support our investment and operational activities, provides for total commitments of ~~$555.0~~$585.0 million from a diversified group of ~~fourteen lenders and~~fifteen lenders. The Credit Facility matures in September ~~2021. The Credit Facility also~~2021 and contains an accordion feature which allows us to increase the total commitments under the facility to up to $750.0 million from new and existing lenders on the same terms and conditions as the existing commitments.

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Borrowings under the Credit Facility bear interest, subject to our election, on a per annum basis at a rate equal to the applicable LIBOR rate ~~(0.98%~~(1.88% as of March 31, ~~2017)~~2018) plus (i) 1.875% (or the applicable base rate (Prime Rate of ~~4.00%~~4.75% as of March 31, ~~2017)~~2018) plus 0.875%) as long as we maintain an investment grade rating and meet certain agreed upon excess collateral and maximum leverage requirements, (ii) 2.0% (or the applicable base rate plus 1.0%) if we maintain an investment grade rating but do not meet certain excess collateral and maximum leverage requirements or (iii) 2.25% (or the applicable base rate plus 1.25%) if we do not maintain an investment grade rating. We pay unused commitment fees of 0.25% per annum on the unused lender commitments under the Credit Facility. The Credit Facility is secured by a first lien on the assets of MSCC and its subsidiaries, excluding the

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equity ownership or assets of the Funds and the External Investment Manager. The Credit Facility contains certain affirmative and negative covenants, including but not limited to: (i) maintaining a minimum availability of at least 10% of the borrowing base, (ii) maintaining an interest coverage ratio of at least 2.0 to 1.0, (iii) maintaining an asset coverage ratio of at least 1.5 to 1.0 and (iv) maintaining a minimum tangible net worth. The Credit Facility is provided on a revolving basis through its final maturity date in September 2021, and contains two, one-year extension options which could extend the final maturity by up to two years, subject to certain conditions, including lender approval. As of March 31, ~~2017,~~2018, we had ~~$288.0~~$188.0 million in borrowings outstanding under the Credit Facility, the interest rate on the Credit Facility was ~~2.7%~~3.5% and we were in compliance with all financial covenants of the Credit Facility.

~~Due to each of~~Through the ~~Funds' status as a licensed SBIC,~~Funds, we have the ability to issue ~~through the Funds,~~SBIC debentures guaranteed by the SBA at favorable interest rates and favorable terms and ~~conditions~~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. Through the Funds, we have an effective maximum amount of $346.0 million ~~through our three~~following the prepayment of $4.0 million of existing SBIC ~~licenses.~~debentures as discussed below. During the three months ended March 31, ~~2017,~~2018, we issued ~~$25.4~~$22.0 million of SBIC debentures and opportunistically prepaid ~~$25.2~~$4.0 million of our existing SBIC debentures as part of an effort to manage the maturity dates of our oldest SBIC debentures, leaving ~~$109.8~~$32.2 million of remaining capacity under our SBIC licenses. 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. ~~Main Street expects~~We expect to issue new SBIC debentures under the SBIC program in the future in an amount up to the regulatory maximum amount ~~of $350.0 million~~ for affiliated SBIC funds. OnAs of March 31, ~~2017,~~2018, through our three wholly owned SBICs, we had ~~$240.2~~$313.8 million of outstanding SBIC debentures guaranteed by the SBA, which bear a weighted-average annual fixed interest rate of approximately ~~3.8%~~3.7%, paid semiannually, and mature ten years from issuance. The first maturity related to our SBIC debentures occurs in 2019, and the weighted-average remaining duration is approximately ~~5.7~~5.9 years as of March 31, ~~2017.~~2018.

In April 2013, we issued $92.0 million, including the underwriters' full exercise of their over-allotment option, in aggregate principal amount of the 6.125% Notes (the "6.125% Notes"). The 6.125% Notes are unsecured obligations and rank pari passu with our current and future unsecured indebtedness; senior to any of our future indebtedness that expressly provides it is subordinated to the 6.125% Notes; effectively subordinated to all of our existing and future secured indebtedness, to the extent of the value of the assets securing such indebtedness, including borrowings under our Credit Facility; and structurally subordinated to all existing and future indebtedness and other obligations of any of our subsidiaries, including without limitation, the indebtedness of the Funds. The 6.125% Notes mature on April 1, 2023, and may be redeemed in whole or in part at any time or from time to time at our option on or after April 1, 2018. We ~~may~~maintained the right from time to time repurchase 6.125% Notes in accordance with the 1940 Act and the rules promulgated thereunder. On March 1, 2018, we announced our intent to redeem the 6.125% Notes on April 1, 2018. As of March 31, ~~2017,~~2018, the outstanding balance of the 6.125% Notes was $90.7 million.

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The indenture governing the 6.125% Notes (the "6.125% Notes Indenture") contains certain covenants, including covenants requiring our compliance with (regardless of whether we are subject to) the asset coverage requirements set forth in Section 18(a)(1)(A) as modified by Section 61(a)(1) of the 1940 Act, as well as covenants requiring us to provide financial information to the holders of the 6.125% Notes and the Trustee if we cease to be subject to the reporting requirements of the Securities Exchange Act of 1934. These covenants are subject to limitations and exceptions that are described in the 6.125% Notes Indenture.

In November 2014, we issued $175.0 million in aggregate principal amount of ~~the~~ 4.50% Notes (the "4.50% ~~Notes"~~Notes due 2019") at an issue price of 99.53%. The 4.50% Notes due 2019 are unsecured obligations and rank pari passu with our current and future unsecured indebtedness; senior to any of our future indebtedness that expressly provides it is subordinated to the 4.50% ~~Notes;~~Notes due 2019; effectively subordinated to

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all of our existing and future secured indebtedness, to the extent of the value of the assets securing such indebtedness, including borrowings under our Credit Facility; and structurally subordinated to all existing and future indebtedness and other obligations of any of our subsidiaries, including without limitation, the indebtedness of the Funds. The 4.50% Notes due 2019 mature on December 1, 2019, and may be redeemed in whole or in part at any time at our option subject to certain make-whole provisions. The 4.50% Notes due 2019 bear interest at a rate of 4.50% per year payable semiannually on June 1 and December 1 of each year, beginning June 1, 2015. We may from time to time repurchase 4.50% Notes due 2019 in accordance with the 1940 Act and the rules promulgated thereunder. As of March 31, ~~2017,~~2018, the outstanding balance of the 4.50% Notes due 2019 was $175.0 million.

The indenture governing the 4.50% Notes due 2019 (the "4.50% Notes due 2019 Indenture") contains certain covenants, including covenants requiring our compliance with (regardless of whether we are subject to) the asset coverage requirements set forth in Section 18(a)(1)(A) as modified by Section 61(a)(1) of the 1940 Act, as well as covenants requiring us to provide financial information to the holders of the 4.50% Notes due 2019 and the Trustee if we cease to be subject to the reporting requirements of the Securities Exchange Act of 1934. These covenants are subject to limitations and exceptions that are described in the 4.50% Notes due 2019 Indenture.

~~During~~In November ~~2015,~~2017, we ~~commenced~~issued $185.0 million in aggregate principal amount of 4.50% Notes (the "4.50% Notes due 2022") at an issue price of 99.16%. The 4.50% Notes due 2022 are unsecured obligations and rank pari passu with our current and future unsecured indebtedness; senior to any of our future indebtedness that expressly provides it is subordinated to the 4.50% Notes due 2022; effectively subordinated to all of our existing and future secured indebtedness, to the extent of the value of the assets securing such indebtedness, including borrowings under our Credit Facility; and structurally subordinated to all existing and future indebtedness and other obligations of any of our subsidiaries, including without limitation, the indebtedness of the Funds. The 4.50% Notes due 2022 mature on December 1, 2022, and may be redeemed in whole or in part at any time at our option subject to certain make-whole provisions. The 4.50% Notes due 2022 bear interest at a rate of 4.50% per year payable semiannually on June 1 and December 1 of each year, beginning June 1, 2018. We may from time to time repurchase 4.50% Notes due 2022 in accordance with the 1940 Act and the rules promulgated thereunder. As of March 31, 2018, the outstanding balance of the 4.50% Notes due 2022 was $185.0 million.

The indenture governing the 4.50% Notes due 2022 (the "4.50% Notes due 2022 Indenture") contains certain covenants, including covenants requiring our compliance with (regardless of whether we are subject to) the asset coverage requirements set forth in Section 18(a)(1)(A) as modified by Section 61(a)(1) of the 1940 Act, as well as covenants requiring us to provide financial information to the holders of the 4.50% Notes due 2022 and the Trustee if we cease to be subject to the reporting requirements of the Securities Exchange Act of 1934. These covenants are subject to limitations and exceptions that are described in the 4.50% Notes due 2022 Indenture.

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We maintain a 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 (the "ATM Program"). During the three months ended March 31, ~~2017,~~2018, we sold ~~1,035,286~~308,678 shares of our common stock at a weighted-average price of ~~$36.86~~$37.27 per share and raised ~~$38.2~~$11.5 million of gross proceeds under the ATM Program. Net proceeds were ~~$37.7~~$11.3 million after commissions to the selling agents on shares sold and offering costs. As of March 31, ~~2017, 499,500 shares were available for sale under the ATM Program.~~

During the year ended December 31, 2016, we sold 3,324,646 shares of our common stock at a weighted-average price of $34.17 per share and raised $113.6 million of gross proceeds under the ATM Program. Net proceeds were $112.0 million after commissions to the selling agents on shares sold and offering costs. As of December 31, 2016,2018, sales transactions representing ~~42,413~~20,400 shares had not settled and ~~were~~are not included in shares issued and outstanding on the face of the consolidated balance sheet, but ~~were~~are included in the weighted-average shares outstanding in the consolidated statement of operations and in the shares used to calculate ~~our~~ net asset value per share. As of March 31, 2018, there were 1,602,678 shares available for sale under the ATM Program.

During the year ended December 31, 2017, we sold 3,944,972 shares of our common stock at a weighted-average price of $38.72 per share and raised $152.8 million of gross proceeds under the ATM Program. Net proceeds were $150.9 million after commissions to the selling agents on shares sold and offering costs. As of December 31, 2017, 1,911,356 shares remained available for sale under the ATM Program.

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 Facility, and a combination of future issuances of debt and equity capital. Our primary uses of funds will be investments in portfolio companies, operating expenses and cash distributions to holders of our common stock.

We periodically invest excess cash balances into ~~"Marketable~~marketable securities and idle funds ~~investments".~~investments. The primary investment objective of ~~Marketable~~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, Middle Market and Private Loan portfolio investments. Marketable securities and idle funds investments generally consist of debt investments, independently rated debt investments, certificates of deposit with financial institutions, diversified bond funds and publicly traded debt and equity investments. The composition of Marketable securities and idle funds investments will vary in a given period based upon, among other things, changes in market conditions, the underlying fundamentals in our Marketable securities and idle funds investments, our outlook regarding future LMM, Middle Market and Private Loan portfolio investment needs, and any regulatory requirements applicable to us.

If our common stock trades below our net asset value 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

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shares of our common stock below the then current net asset value per share of our common stock at our ~~2017~~2018 annual meeting of stockholders because our common stock price per share had been trading significantly above the ~~current~~ net asset value per share of our common stock since 2011. We would therefore need future approval from our stockholders to issue shares below the then current net asset value 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 of total assets to total senior securities, which include borrowings and any preferred stock we may issue in the future, of at least 200%. This requirement limits the amount that we may borrow. In January 2008, we received an exemptive order from the SEC to exclude SBA-guaranteed debt securities issued by MSMF and any other wholly owned subsidiaries of ours which operate as SBICs from the asset coverage requirements of the 1940 Act as applicable to us, which, in turn, enables us to fund more investments with debt capital.

Although we have been able to secure access to additional liquidity, including through the Credit Facility, public debt issuances, leverage available through the SBIC program and equity offerings, there

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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

In May 2014, the FASB issued Accounting Standards Update ("ASU") 2014-09,Revenue from Contracts with Customers (Topic 606). ASU 2014-09 supersedes the revenue recognition requirements under ASC 605,Revenue Recognition, and most industry-specific guidance throughout the Industry Topics of the ASC. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. Under the new guidance, an entity is required to perform the following five steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the ~~contract,~~contract; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. The new guidance will significantly enhance comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets. Additionally, the guidance requires improved disclosures as to the nature, amount, timing and uncertainty of revenue that is recognized. In March 2016, the FASB issued ASU 2016-08,Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which clarified the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU 2016-10,Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, which clarified the implementation guidance regarding performance obligations and licensing arrangements. In May 2016, the FASB issued ASU No. 2016-12,Revenue from Contracts with Customers (Topic 606)—Narrow-Scope Improvements and Practical Expedients, which clarified guidance on assessing collectability, presenting sales tax, measuring noncash consideration, and certain transition matters. In December 2016, the FASB issued ASU No. 2016-20,Revenue from Contracts with Customers (Topic 606)—Technical Corrections and Improvements, which provided disclosure relief, and clarified the scope and application of the new revenue standard and related cost guidance. The ~~new~~ guidance ~~will be~~is effective for the annual reporting period beginning after December 15, 2017, including interim periods within that reporting period. ~~Early adoption would be permitted for annual reporting periods beginning after December 15, 2016. We expect to identify~~Substantially all of our income is not within the scope of ASU 2014-09. For those income items that are within the scope (primarily fee income), we have similar performance obligations ~~under ASC 606~~ as compared

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with deliverables and separate units of account previously identified. As a result, ~~we expect~~our timing of ~~our revenue~~income recognition ~~to remain~~remains the ~~same.~~

~~In May 2015, the FASB issued ASU 2015-07,~~~~Fair Value Measurements—Disclosures for Certain Entities that Calculate Net Asset Value per Share~~. This amendment updates guidance intended to eliminate the diversity in practice surrounding how investments measured at net asset value under the practical expedient with future redemption dates have been categorized in the fair value hierarchy. Under the updated guidance, investments for which fair value is measured at net asset value per share using the practical expedient should no longer be categorized in the fair value hierarchy, while investments for which fair value is measured at net asset value per share but the practical expedient is not applied should continue to be categorized in the fair value hierarchy. The updated guidance requires retrospective adoption for all periods presentedsame and is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted. The Company adopted this standard during the three months ended March 31, 2016. There was no impact of the adoption of ~~this new accounting~~the standard ~~on our consolidated financial statements as none of our investments are measured through the use of the practical expedient.~~was not material.

In February 2016, the FASB issued ASU 2016-02, Leases, which requires lessees to recognize on the balance sheet a right-of-use asset, representing its right to use the underlying asset for the lease term, and a lease liability for all leases with terms greater than 12 months. The guidance also requires qualitative and quantitative disclosures designed to assess the amount, timing, and uncertainty of cash flows arising from leases. The standard requires the use of a modified retrospective transition approach, which includes a number of optional practical expedients that entities may elect to apply. The new guidance is effective for annual periods beginning after December 15, 2018, and interim periods therein. Early application is permitted. While we continue to assess the effect of adoption, we currently believe the most significant change relates to the recognition of a new right-of-use asset and lease liability on our consolidated balance sheet for our office space operating lease. We currently have one operating lease for office space and do not expect a significant change in our leasing activity between now and adoption. See further discussion of our operating lease obligation in "Note M—Commitments and Contingences" in the notes to the consolidated financial statements.

In ~~March 2016, the FASB issued ASU 2016-09,~~~~Compensation—Stock Compensation: Improvements to Employee Share-Based Payment Accounting~~, which is intended to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The guidance is effective for annual periods beginning after December 15, 2016, and interim periods therein. Early application is permitted. The Company elected to early adopt this standard during the three months ended March 31, 2016. See further discussion of the impact of the adoption of this standard in "Note B.7.—Summary of Significant Accounting Policies—Share-based Compensation" in the notes to consolidated financial statements.

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beginning after December 15, 2017, and interim periods therein. Early application is permitted. The impact of the adoption of this new accounting standard on our consolidated financial statements iswas not ~~expected to be~~ material.

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.

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Inflation

Inflation has not had a significant effect on our results of operations in any of the reporting periods presented herein. However, our portfolio companies have experienced, and may in the future experience, the 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.

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 capital and involve, to varying degrees, elements of liquidity and credit risk in excess of the amount recognized in the balance sheet. At March 31, ~~2017,~~2018, we had a total of ~~$118.2~~$138.6 million in outstanding commitments comprised of (i) 2737 investments with commitments to fund revolving loans that had not been fully drawn or term loans with additional commitments not yet funded and (ii) ~~eight~~11 investments with equity capital commitments that had not been fully called.

Contractual Obligations

As of March 31, ~~2017,~~2018, the future fixed commitments for cash payments in connection with our SBIC debentures, the 4.50% Notes due 2019, the 4.50% Notes due 2022 and the 6.125% Notes and rent obligations under our office lease for each of the next five years and thereafter are as follows:

	2017		2018		2019		2020		2021		Thereafter		Total		2018		2019		2020		2021		2022		Thereafter		Total

SBIC debentures	$	—	$	—	$	20,000	$	55,000	$	40,000	$	125,200	$	240,200	$	—	$	16,000	$	55,000	$	40,000	$	5,000	$	197,800	$	313,800
Interest due on SBIC debentures		5,014		9,228		9,228		8,033		5,484		14,388		51,375		5,862		11,798		10,610		8,054		7,042		23,939		67,305
Notes 6.125%		—		—		—		—		—		90,655		90,655
6.125% Notes																—		—		—		—		—		90,655		90,655
Interest due on 6.125% Notes		4,165		5,553		5,553		5,553		5,553		6,939		33,316		5,553		5,553		5,553		5,553		5,553		1,386		29,151
4.50% Notes		—		—		175,000		—		—		—		175,000
Interest due on 4.50% Notes		7,875		7,875		7,875		—		—		—		23,625
4.50% Notes due 2019																—		175,000		—		—		—		—		175,000
Interest due on 4.50% Notes due 2019																7,875		7,875		—		—		—		—		15,750
4.50% Notes due 2022																—		—		—		—		185,000		—		185,000
Interest due on 4.50% Notes due 2022																8,533		8,325		8,325		8,325		8,325		—		41,833
Operating Lease Obligation(1)		46		683		749		763		777		4,959		7,977		346		749		763		777		791		4,239		7,665

Total	$	17,100	$	23,339	$	218,405	$	69,349	$	51,814	$	242,141	$	622,148	$	28,169	$	225,300	$	80,251	$	62,709	$	211,711	$	318,019	$	926,159

(1): Operating Lease Obligation means a rent payment obligation under a lease classified as an operating lease and disclosed pursuant to FASB ASC 840, as may be modified or supplemented.

As of March 31, ~~2017,~~2018, we had ~~$288.0~~$188.0 million in borrowings outstanding under our Credit Facility, and the Credit Facility is currently scheduled to mature in September 2021. The Credit Facility contains

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two, one-year extension options which could extend the maturity to September 2023, subject to lender approval. See further discussion of the Credit Facility terms in "—Liquidity and Capital Resources—Capital Resources."

Related Party Transactions

As discussed further above, the External Investment Manager is treated as a wholly owned portfolio company of MSCC and is included as part of our Investment Portfolio. At March 31, ~~2017,~~2018, we had a receivable of approximately ~~$2.0~~$2.8 million due from the External Investment Manager which included approximately ~~$1.3~~$2.3 million primarily related to operating expenses incurred by us 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 above in "—Critical Accounting Policies—Income Taxes") and approximately ~~$0.7~~$0.6 million of dividends declared but not paid by the External Investment Manager.

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In November 2015, our Board of Directors approved and adopted the Main Street Capital Corporation Deferred Compensation Plan (the "2015 Deferred Compensation Plan"). The 2015 Deferred Compensation Plan became effective on January 1, 2016 and replaced the Deferred Compensation Plan for Non-Employee Directors previously adopted by the Board of Directors in June 2013 (the "2013 Deferred Compensation Plan"). Under the 2015 Deferred Compensation Plan, 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. Individuals participating in the 2015 Deferred Compensation Plan receive distributions of their respective balances based on predetermined payout schedules or other events as defined by the plan and are also able to direct investments made on their behalf among investment alternatives permitted from time to time under the plan, including phantom Main Street stock units. As of March 31, ~~2017, $2.8~~2018, $4.8 million of compensation and directors' fees had been deferred under the 2015 Deferred Compensation Plan (including amounts previously deferred under the 2013 Deferred Compensation Plan). Of this amount, ~~$1.7~~$2.5 million was deferred into phantom Main Street stock units, representing ~~55,938~~74,503 shares of our common stock. Including phantom stock units issued through dividend reinvestment, the phantom stock units outstanding as of March 31, ~~2017~~2018 represented ~~65,882~~90,411 shares of our common stock. Any amounts deferred under the plan represented by phantom Main Street stock units will not be issued or included as outstanding on the consolidated ~~statement~~statements of changes in net assets until such shares are actually distributed to the participant in accordance with the plan, but are included in operating expenses and weighted-average shares outstanding in our consolidated ~~statement~~statements of operations as earned.

Recent Developments

In April 2018, we made a new portfolio investment to facilitate the minority recapitalization of DPI, Inc. ("DPI"), a leading designer, developer, and distributor of a broad assortment of consumer electronics to national retailers under several proprietary brands. We, along with a co-investor, partnered with DPI's management team to facilitate the transaction, with us funding $35.2 million in a combination of first-lien, senior secured term debt and a direct equity investment. Headquartered in St. Louis, Missouri, DPI offers consumer electronics products designed for value-conscious consumers.

In April 2018, we redeemed the entire principal amount of the issued and outstanding 6.125% Notes effective April 1, 2018 (the "Redemption Date"). The 6.125% Notes were redeemed at par value, plus the accrued and unpaid interest thereon from January 1, 2018, through, but excluding, the Redemption Date. As part of the redemption, we recognized a realized loss of $1.5 million in the second quarter related to the write-off of any remaining unamortized deferred financing costs.

During April ~~2017,~~2018, we declared a semi-annual supplemental cash dividend of $0.275 per share payable in June ~~2017.~~2018. This supplemental cash dividend is in addition to the previously announced

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regular monthly cash dividends that we declared for the second quarter of ~~2017~~2018 of ~~$0.185~~$0.19 per share for each of April, May and June ~~2017.~~2018.

InDuring May ~~2017,~~2018, we declared regular monthly dividends of ~~$0.185~~$0.19 per share for each month of July, August and September of ~~2017.~~2018. These regular monthly dividends equal a total of ~~$0.555~~$0.57 per share for the third quarter of ~~2017~~2018 and represent a ~~2.8%~~2.7% increase from the regular monthly dividends declared for the third quarter of ~~2016.~~2017. Including the semi-annual supplemental dividend declared for June ~~2017~~2018 and the regular monthly dividends declared for the second and third quarters of ~~2017,~~2018, we will have paid ~~$20.545~~$23.375 per share in cumulative dividends since our October 2007 initial public offering.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

We are subject to financial market risks, including changes in interest rates. Changes in interest rates may affect both our cost of funding 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 rates, including LIBOR and prime rates, to the extent that any debt investments include floating interest rates. 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 March 31, ~~2017,~~2018, approximately ~~65%~~73% of our debt investment portfolio (at cost) bore interest at floating rates, ~~98%~~95% of which were subject to contractual minimum interest rates. Our interest expense will be affected by changes in the published LIBOR rate in connection with our Credit Facility; however, the interest rates on our outstanding SBIC debentures, 4.50% Notes due 2019, 4.50% Notes due 2022 and 6.125% Notes, which comprise the majority of our outstanding debt, are fixed for the life of such debt. As of March 31, ~~2017,~~2018, we had not entered into any interest rate hedging arrangements. The following table shows the approximate annualized increase or decrease in the components of net investment income

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due to hypothetical base rate changes in interest rates, assuming no changes in our investments and borrowings as of March 31, ~~2017.~~2018.

Basis Point Change	Increase in Interest Income		Increase in Interest Expense			Increase (Decrease) in Net Investment Income		Increase (Decrease) in Net Investment Income per Share		Increase (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)									(dollars in thousands)
(50)										$	(6,312	)	$	940		$	(5,372	)	$	(0.09	)
(25)											(3,156	)		470			(2,686	)		(0.05	)
25	$	2,207	$	(720	)	$	1,487	$	0.03		3,156			(470	)		2,686			0.05
50		4,556		(1,440	)		3,116		0.06		6,312			(940	)		5,372			0.09
100		9,333		(2,880	)		6,453		0.12		12,625			(1,880	)		10,745			0.18
150		14,163		(4,320	)		9,843		0.18
200		19,006		(5,760	)		13,246		0.24		25,250			(3,760	)		21,490			0.36
300		28,692		(8,640	)		20,052		0.36		37,874			(5,640	)		32,234			0.55
400		38,406		(11,520	)		26,886		0.49		50,499			(7,520	)		42,979			0.73

The hypothetical results would also be impacted by the changes in the amount of debt outstanding under our Credit Facility (with an increase (decrease) in the debt outstanding under the Credit Facility resulting in an (increase) decrease in the hypothetical interest expense).

Item 4. Controls and Procedures

As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our management, including our Chairman and Chief Executive Officer, our President, our Chief Financial Officer, our Chief Compliance Officer and our Chief Accounting Officer, of the effectiveness of the design and operation of our disclosure controls and

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procedures (as defined in Rule 13a-15 of the Securities Exchange Act of 1934). Based on that evaluation, our Chairman and Chief Executive Officer, our President, our Chief Financial Officer, our Chief Compliance Officer and our 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 Securities Exchange Act of 1934. There have been no changes in our internal control over financial reporting that occurred during the quarter ended March 31, ~~2017~~2018 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II—OTHER INFORMATION

Item 1. 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 1A. Risk Factors

There have been no material changes to the risk factors as previously disclosed in our Annual Report on Form 10-K for the year ended December 31, ~~2016~~2017 that we filed with the SEC on February ~~24, 2017,~~23, 2018, and as updated in our registration statement on Form N-2 filed on April ~~26, 2017.~~24, 2018.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

During the three months ended March 31, ~~2017,~~2018, we issued ~~48,675~~42,423 shares of our common stock under our dividend reinvestment plan. These issuances were not subject to the registration requirements of the Securities Act of 1933, as amended. The aggregate value of the shares of common stock issued during the three months ended March 31, ~~2017~~2018 under the dividend reinvestment plan was approximately ~~$1.8~~$1.6 million.

Item 6. 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 Number			Description of Exhibit

	31.1		Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.
	31.2		Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.
	32.1		Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).
	32.2		Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).

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SIGNATURES

Pursuant to the requirements 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
Date: May ~~5, 2017~~4, 2018		/s/ VINCENT D. FOSTER Vincent D. Foster Chairman and Chief Executive Officer (principal executive officer)
Date: May ~~5, 2017~~4, 2018		/s/ BRENT D. SMITH Brent D. Smith Chief Financial Officer and Treasurer (principal financial officer)
Date: May ~~5, 2017~~4, 2018		/s/ SHANNON D. MARTIN Shannon D. Martin Vice President and Chief Accounting Officer (principal accounting officer)

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~~EXHIBIT INDEX~~

~~Exhibit~~ ~~Number~~			~~Description of Exhibit~~

	~~31.1~~		~~Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.~~
	~~31.2~~		~~Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.~~
	~~32.1~~		~~Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).~~
	~~32.2~~		~~Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).~~

Portfolio Company(1)	Business Description	Type of Investment(2)(3)


Infinity Acquisition Finance Corp.(11)	Application Software for Capital Markets
		7.25% Unsecured Debt (Maturity—August 1, 2022)	5,700	5,378	5,216

Inn of the Mountain Gods Resort and Casino(11)	Hotel & Casino Owner & Operator
		9.25% Secured Debt (Maturity—November 30, 2020)	6,249	5,941	5,624

Intertain Group Limited(11)(13)	Business-to-Consumer Online Gaming Operator
		LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—April 8, 2022)(9)	4,301	4,243	4,344

iPayment, Inc.(11)	Provider of Merchant Acquisition
		LIBOR Plus 5.25% (Floor 1.50%), Current Coupon 6.75%, Secured Debt (Maturity—May 8, 2017)(9)	16,918	16,909	16,833

iQor US Inc.(11)	Business Process Outsourcing Services Provider
		LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.00%, Secured Debt (Maturity—April 1, 2021)(9)	9,787	9,653	9,566

irth Solutions, LLC	Provider of Damage Prevention Information Technology Services
		Member Units (27,893 units)		1,441	1,920

Jackmont Hospitality, Inc.(10)	Franchisee of Casual Dining Restaurants
		LIBOR Plus 4.25% (Floor 1.00%), Current Coupon 5.25% / 2.50% PIK, Current Coupon Plus PIK 7.75%, Secured Debt (Maturity—May 26, 2021)(9)	4,473	4,457	4,473

Joerns Healthcare, LLC(11)	Manufacturer and Distributor of Health Care Equipment & Supplies
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.05% / 0.50% PIK, Current Coupon Plus PIK 7.55%, Secured Debt (Maturity—May 9, 2020)(9)	14,617	14,493	13,156

Portfolio Company(1)	Business Description	Type of Investment(2)(3)


Keypoint Government Solutions, Inc.(11)	Provider of Pre-Employment Screening Services
		LIBOR Plus 6.50% (Floor 1.25%), Current Coupon 7.75%, Secured Debt (Maturity—November 13, 2017)(9)	5,248	5,236	5,221

LaMi Products, LLC(10)	General Merchandise Distribution
		LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.62%, Secured Debt (Maturity—September 16, 2020)(9)	11,044	10,971	11,044

Larchmont Resources, LLC(11)	Oil & Gas Exploration & Production
		LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.00%, PIK Secured Debt (Maturity—August 7, 2020)(9)	2,316	2,316	2,308
		Member Units (Larchmont Intermediate Holdco, LLC) (2,828 units)		353	954

				2,669	3,262

LKCM Headwater Investments I, L.P.(12)(13)	Investment Partnership
		LP Interests (Fully diluted 2.3%)		2,500	3,967

Logix Acquisition Company, LLC(10)	Competitive Local Exchange Carrier
		LIBOR Plus 8.28% (Floor 1.00%), Current Coupon 9.28%, Secured Debt (Maturity—June 24, 2021)(9)	8,515	8,386	8,515

Looking Glass Investments, LLC(12)(13)	Specialty Consumer Finance
		9% Unsecured Debt (Maturity—June 30, 2020)	188	188	188
		Member Units (2.5 units)		125	125
		Member Units (LGI Predictive Analytics LLC) (190,712 units)(8)		132	132

				445	445

Messenger, LLC(10)	Supplier of Specialty Stationery and Related Products to the Funeral Industry
		LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.25%, Secured Debt (Maturity—September 9, 2020)(9)	14,403	14,331	14,403

Portfolio Company(1)	Business Description	Type of Investment(2)(3)


Minute Key, Inc.	Operator of Automated Key Duplication Kiosks
		10% Current / 2% PIK Secured Debt (Maturity—September 19, 2019)	15,778	15,505	15,505
		Warrants (1,437,409 equivalent units)		280	800

				15,785	16,305

Mood Media Corporation(11)(13)	Provider of Electronic Equipment
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.15%, Secured Debt (Maturity—May 1, 2019)(9)	14,767	14,623	14,700

New Media Holdings II LLC(11)(13)	Local Newspaper Operator
		LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.25%, Secured Debt (Maturity—June 4, 2020)(9)	14,850	14,610	14,775

NNE Partners, LLC(10)	Oil & Gas Exploration & Production
		LIBOR Plus 8.00%, Current Coupon 9.07%, Secured Debt (Maturity—March 2, 2022)	7,292	7,220	7,220

North American Lifting Holdings, Inc.(11)	Crane Service Provider
		LIBOR Plus 4.50% (Floor 1.00%), Current Coupon 5.65%, Secured Debt (Maturity—November 27, 2020)(9)	7,805	6,792	7,370

NTM Acquisition Corp.(11)	Provider of B2B Travel Information Content
		LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.25%, Secured Debt (Maturity—June 7, 2022)(9)	4,091	4,035	4,070

Ospemifene Royalty Sub LLC (QuatRx)(10)	Estrogen-Deficiency Drug Manufacturer and Distributor
		11.5% Secured Debt (Maturity—November 15, 2026)(14)	5,071	5,071	1,779

Pardus Oil and Gas, LLC(11)	Oil & Gas Exploration & Production
		13% PIK Secured Debt (Maturity—November 12, 2021)	1,928	1,928	1,809
		5% PIK Secured Debt (Maturity—May 13, 2022)	1,004	1,004	489
		Member Units (2,472 units)		2,472	—

				5,404	2,298

Paris Presents Incorporated(11)	Branded Cosmetic and Bath Accessories
		LIBOR Plus 8.75% (Floor 1.00%), Current Coupon 9.75%, Secured Debt (Maturity—December 31, 2021)(9)	2,000	1,970	1,960

Portfolio Company(1)	Business Description	Type of Investment(2)(3)


Targus International, LLC(11)	Distributor of Protective Cases for Mobile Devices
		15% PIK Secured Debt (Maturity—December 31, 2019)	1,182	1,182	1,182
		Common Stock (Targus Cayman HoldCo Limited) (249,614 shares)(13)		2,555	440

				3,737	1,622

TE Holdings, LLC(11)	Oil & Gas Exploration & Production
		Member Units (97,048 units)		970	691

TeleGuam Holdings, LLC(11)	Cable and Telecom Services Provider
		LIBOR Plus 4.00% (Floor 1.25%), Current Coupon 5.25%, Secured Debt (Maturity—December 10, 2018)(9)	7,602	7,594	7,607
		LIBOR Plus 7.50% (Floor 1.25%), Current Coupon 8.75%, Secured Debt (Maturity—June 10, 2019)(9)	10,500	10,447	10,526

				18,041	18,133

TMC Merger Sub Corp.(11)	Refractory & Maintenance Services Provider
		LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.25%, Secured Debt (Maturity—October 31, 2022)(9)	14,922	14,778	14,922

TOMS Shoes, LLC(11)	Global Designer, Distributor, and Retailer of Casual Footwear
		LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 6.55%, Secured Debt (Maturity—October 30, 2020)(9)	4,900	4,573	3,315

Truck Bodies and Equipment International, Inc.(10)	Manufacturer of Dump Truck Bodies and Dump Trailers
		LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity—March 31, 2021)(9)	20,564	20,201	20,564

Turning Point Brands, Inc.(10)(13)	Marketer/Distributor of Tobacco Products
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.15%, Secured Debt (Maturity—May 17, 2022)(9)	8,500	8,417	8,479

Portfolio Company(1)	Business Description	Type of Investment(2)(3)


Industrial Container Services, LLC(10)	Steel Drum Reconditioner
		LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 6.75%, Secured Debt (Maturity—December 31, 2018)(9)	8,949	8,932	8,949

Industrial Services Acquisition, LLC(10)	Industrial Cleaning Services
		11.25% Current / 0.75% PIK Unsecured Debt (Maturity—December 17, 2022)	4,519	4,433	4,433
		Member Units (Industrial Services Investments, LLC) (900,000 units)		900	900

				5,333	5,333

Infinity Acquisition Finance Corp.(11)	Application Software for Capital Markets
		7.25% Unsecured Debt (Maturity—August 1, 2022)	5,700	5,366	4,802

Inn of the Mountain Gods Resort and Casino(11)	Hotel & Casino Owner & Operator
		9.25% Secured Debt (Maturity—November 30, 2020)	6,249	5,924	5,687

Intertain Group Limited(11)(13)	Business-to-Consumer Online Gaming Operator
		LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—April 8, 2022)(9)	4,426	4,364	4,465

iPayment, Inc.(11)	Provider of Merchant Acquisition
		LIBOR Plus 5.25% (Floor 1.50%), Current Coupon 6.75%, Secured Debt (Maturity—May 8, 2017)(9)	14,918	14,907	14,395

iQor US Inc.(11)	Business Process Outsourcing Services Provider
		LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.00%, Secured Debt (Maturity—April 1, 2021)(9)	9,812	9,671	9,413

irth Solutions, LLC	Provider of Damage Prevention Information Technology Services
		Member Units (27,893 units)		1,441	1,790

Jackmont Hospitality, Inc.(10)	Franchisee of Casual Dining Restaurants
		LIBOR Plus 4.25% (Floor 1.00%), Current Coupon 5.25% / 2.50% PIK, Current Coupon Plus PIK 7.75%, Secured Debt (Maturity—May 26, 2021)(9)	4,445	4,429	4,445

Portfolio Company(1)	Business Description	Type of Investment(2)(3)


Pike Corporation(11)	Construction and Maintenance Services for Electric Transmission and Distribution Infrastructure
		LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity—June 22, 2022)(9)	14,000	13,720	14,082

Point.360(10)	Fully Integrated Provider of Digital Media Services
		Warrants (65,463 equivalent shares)		69	—
		Common Stock (163,658 shares)		273	63

				342	63

Polycom, Inc.(11)	Provider of Audio and Video Communication Solutions
		LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—September 27, 2023)(9)	12,089	11,617	12,194

PPC/SHIFT LLC(10)	Provider of Digital Solutions to Automotive Industry
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—June 6, 2022)(9)	7,000	6,852	6,852

Prowler Acquisition Corp.(11)	Specialty Distributor to the Energy Sector
		LIBOR Plus 4.50% (Floor 1.00%), Current Coupon 5.50%, Secured Debt (Maturity—January 28, 2020)(9)	9,519	7,904	7,044

PT Network, LLC(10)	Provider of Outpatient Physical Therapy and Sports Medicine Services
		LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—November 30, 2021)(9)	16,225	15,979	15,979

QBS Parent, Inc.(11)	Provider of Software and Services to the Oil & Gas Industry
		LIBOR Plus 4.75% (Floor 1.00%), Current Coupon 5.75%, Secured Debt (Maturity—August 7, 2021)(9)	11,274	11,201	11,161

Raley's(11)	Family-Owned Supermarket Chain
		LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.25%, Secured Debt (Maturity—May 18, 2022)(9)	4,195	4,125	4,242

Portfolio Company(1)	Business Description	Type of Investment(2)(3)


Redbox Automated Retail, LLC(11)	Operator of Home Media Entertainment Kiosks
		LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity—September 27, 2021)(9)	15,000	14,581	14,629

Renaissance Learning, Inc.(11)	Technology-based K-12 Learning Solutions
		LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.00%, Secured Debt (Maturity—April 11, 2022)(9)	3,000	2,978	2,987

RGL Reservoir Operations Inc.(11)(13)	Oil & Gas Equipment and Services
		LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.00%, Secured Debt (Maturity—August 13, 2021)(9)	3,910	3,826	880

RM Bidder, LLC(10)	Scripted and Unscripted TV and Digital Programming Provider
		Warrants (327,532 equivalent units)		425	300
		Member Units (2,779 units)		46	44

				471	344

SAExploration, Inc.(10)(13)	Geophysical Services Provider
		Common Stock (50 shares)		65	3

SAFETY Investment Holdings, LLC	Provider of Intelligent Driver Record Monitoring Software and Services
		Member Units (2,000,000 units)		2,000	2,000

Salient Partners L.P.(11)	Provider of Asset Management Services
		LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity—June 9, 2021)(9)	10,812	10,538	10,352

School Specialty, Inc.(11)	Distributor of Education Supplies and Furniture
		LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity—June 11, 2019)(9)	5,712	5,632	5,784

Sigma Electric Manufacturing Corporation(10)(13)	Manufacturer and Distributor of Electrical Fittings and Parts
		LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.25%, Secured Debt (Maturity—October 13, 2021)(9)	12,500	12,200	12,200

Portfolio Company(1)	Business Description	Type of Investment(2)(3)


U.S. TelePacific Corp.(10)	Provider of Communications and Managed Services
		LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity—February 24, 2021)(9)	7,500	7,377	7,377

VCVH Holding Corp. (Verisk)(11)	Healthcare Technology Services Focused on Revenue Maximization
		LIBOR Plus 9.25% (Floor 1.00%), Current Coupon 10.25%, Secured Debt (Maturity—June 1, 2024)(9)	1,500	1,464	1,488

Virtex Enterprises, LP(10)	Specialty, Full-Service Provider of Complex Electronic Manufacturing Services
		12% Secured Debt (Maturity—December 27, 2018)	1,667	1,559	1,559
		Preferred Class A Units (14 units; 5% cumulative)(8)		333	612
		Warrants (11 equivalent units)		186	220

				2,078	2,391

Wellnext, LLC(10)	Manufacturer of Supplements and Vitamins
		LIBOR Plus 9.00% (Floor 0.50%), Current Coupon 9.85%, Secured Debt (Maturity—May 23, 2021)(9)	10,058	9,968	10,058

Western Dental Services, Inc.(11)	Dental Care Services
		LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—November 1, 2018)(9)	4,904	4,902	4,885

Wilton Brands LLC(11)	Specialty Housewares Retailer
		LIBOR Plus 7.25% (Floor 1.25%), Current Coupon 8.50%, Secured Debt (Maturity—August 30, 2018)(9)	1,153	1,147	1,093

Worley Claims Services, LLC(10)	Insurance Adjustment Management and Services Provider
		LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.00%, Secured Debt (Maturity—October 31, 2020)(9)	6,386	6,342	6,386

YP Holdings LLC(11)	Online and Offline Advertising Operator
		LIBOR Plus 11.00% (Floor 1.25%), Current Coupon 12.25%, Secured Debt (Maturity—June 4, 2018)(9)	11,428	10,969	11,398

Investments with equity capital commitments that have not yet funded:	Amount

Congruent Credit Opportunities Funds
Congruent Credit Opportunities Fund II, LP	$	8,488
Congruent Credit Opportunities Fund III, LP		12,131

	$	20,619
Encap Energy Fund Investments
EnCap Energy Capital Fund VIII, L.P.	$	510
EnCap Energy Capital Fund VIII Co-Investors, L.P.		27
EnCap Energy Capital Fund IX, L.P.		1,093
EnCap Energy Capital Fund X, L.P.		6,789
EnCap Flatrock Midstream Fund II, L.P.		5,502
EnCap Flatrock Midstream Fund III, L.P.		4,785

	$	18,706
Freeport Fund Investments
Freeport First Lien Loan Fund III LP	$	6,539
Freeport Financial SBIC Fund LP		1,375

	$	7,914
Brightwood Capital Fund Investments
Brightwood Capital Fund III, LP	$	3,000
Brightwood Capital Fund IV, LP		4,500

	$	7,500
I-45 SLF LLC	$	1,800
EIG Fund Investments	$	3,595
LKCM Headwater Investments I, L.P.	$	2,500
Dos Rios Partners
Dos Rios Partners, LP	$	1,594
Dos Rios Partners - A, LP		506

	$	2,100

Total equity commitments	$	64,734

	As of March 31, 2017				As of December 31, 2016

Investment Rating	Investments at Fair Value		Percentage of Total Portfolio		Investments at Fair Value		Percentage of Total Portfolio
	(dollars in thousands)
1	$	241,988		27.3%	$	253,420		28.4%
2		195,294		22.0%		258,085		28.9%
3		354,367		40.0%		294,807		33.0%
4		82,485		9.3%		75,433		8.5%
5		12,425		1.4%		10,847		1.2%

Total	$	886,559		100.0%	$	892,592		100.0%