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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 ~~September~~June 30, ~~2016~~2017
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 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, or a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated ~~filer"~~filer," "smaller reporting company" and ~~"smaller reporting~~"emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):


Large accelerated filerý		Accelerated filero		Non-accelerated filero (do not check if smaller reporting company)		Smaller reporting companyo 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 ~~November~~August 3, ~~2016~~2017 was ~~53,036,148.~~56,810,793.

Table of Contents

TABLE OF CONTENTS

PART I
FINANCIAL INFORMATION


Item 1.	Consolidated Financial Statements
	Consolidated Balance Sheets—~~September~~June 30, ~~2016~~2017 (unaudited) and December 31, ~~2015~~2016		1
	Consolidated Statements of Operations (unaudited)—Three and ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 and ~~2015~~2016		2
	Consolidated Statements of Changes in Net Assets (unaudited)—~~Nine~~Six months ended ~~September~~June 30, ~~2016~~2017 and ~~2015~~2016		3
	Consolidated Statements of Cash Flows (unaudited)—~~Nine~~Six months ended ~~September~~June 30, ~~2016~~2017 and ~~2015~~2016		4
	Consolidated Schedule of Investments (unaudited)—~~September~~June 30, ~~2016~~2017		5
	Consolidated Schedule of Investments—December 31, ~~2015~~2016		3336
	Notes to Consolidated Financial Statements (unaudited)		6067
	~~Consolidated Financial Statement Schedule~~
	Consolidated Financial Statement Schedule	112
	Consolidated Schedules of Investments in and Advances to Affiliates ~~for the Nine Months Ended September~~(unaudited)—Six months ended June 30, 2017 and 2016		~~104~~112
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations		~~109~~122
Item 3.	Quantitative and Qualitative Disclosures about Market Risk		~~133~~146
Item 4.	Controls and Procedures		~~134~~147

PART II
OTHER INFORMATION


Item 1.	Legal Proceedings	~~135~~148
Item 1A.	Risk Factors	~~135~~148
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	~~135~~148
Item 6.	Exhibits	~~135~~148
	Signatures	~~136~~149

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Balance Sheets

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

	September 30, 2016			December 31, 2015			June 30, 2017			December 31, 2016

	(Unaudited)						(Unaudited)
ASSETS

Portfolio investments at fair value:
Control investments (cost: $401,190 and $387,727 as of September 30, 2016 and December 31, 2015, respectively)	$	547,651		$	555,011
Affiliate investments (cost: $368,553 and $333,728 as of September 30, 2016 and December 31, 2015, respectively)		352,873			350,519
Non-Control/Non-Affiliate investments (cost: $1,046,923 and $945,187 as of September 30, 2016 and December 31, 2015, respectively)		1,019,743			894,466
Control investments (cost: $497,623 and $439,674 as of June 30, 2017 and December 31, 2016, respectively)							$	671,713		$	594,282
Affiliate investments (cost: $415,997 and $394,699 as of June 30, 2017 and December 31, 2016, respectively)								368,488			375,948
Non-Control/Non-Affiliate investments (cost: $1,058,628 and $1,037,510 as of June 30, 2017 and December 31, 2016, respectively)								1,036,745			1,026,676

Total portfolio investments (cost: $1,816,666 and $1,666,642 as of September 30, 2016 and December 31, 2015, respectively)		1,920,267			1,799,996
Marketable securities and idle funds investments (cost: $0 and $5,407 as of September 30, 2016 and December 31, 2015, respectively)		—			3,693

Total investments (cost: $1,816,666 and $1,672,049 as of September 30, 2016 and December 31, 2015, respectively)		1,920,267			1,803,689
Total investments (cost: $1,972,248 and $1,871,883 as of June 30, 2017 and December 31, 2016, respectively)								2,076,946			1,996,906

Cash and cash equivalents		31,782			20,331			21,799			24,480
Interest receivable and other assets		33,500			27,737			34,897			35,133
Receivable for securities sold		503			9,901			23,851			1,990
Deferred financing costs (net of accumulated amortization of $10,896 and $8,965 as of September 30, 2016 and December 31, 2015, respectively)		12,259			13,267
Deferred financing costs (net of accumulated amortization of $5,094 and $4,598 as of June 30, 2017 and December 31, 2016, respectively)								4,222			4,718
Deferred tax asset, net		9,199			4,003			3,003			9,125

Total assets	$	2,007,510		$	1,878,928		$	2,164,718		$	2,072,352



LIABILITIES
Credit facility	$	313,000		$	291,000		$	303,000		$	343,000
SBIC debentures (par: $231,000 ($15,000 due within one year) and $225,000 as of September 30, 2016 and December 31, 2015, respectively. Par of $75,200 is recorded at a fair value of $74,680 and $73,860 as of September 30, 2016 and December 31, 2015, respectively)		230,480			223,660
4.50% Notes		175,000			175,000
6.125% Notes		90,655			90,738
SBIC debentures (par: $261,200 and $240,000 as of June 30, 2017 and December 31, 2016, respectively)								255,663			235,686
4.50% Notes (par: $175,000 as of both June 30, 2017 and December 31, 2016)								173,254			172,893
6.125% Notes (par: $90,655 as of both June 30, 2017 and December 31, 2016)								88,905			88,752
Accounts payable and other liabilities		11,581			12,292			10,821			14,205
Payable for securities purchased		29,100			2,311			36,032			2,184
Interest payable		3,561			3,959			3,814			4,103
Dividend payable		9,783			9,074			10,484			10,048

Total liabilities		863,160			808,034			881,973			870,871

Commitments and contingencies (Note M)
NET ASSETS
Common stock, $0.01 par value per share (150,000,000 shares authorized; 52,901,113 and 50,413,744 shares issued and outstanding as of September 30, 2016 and December 31, 2015, respectively)		529			504

Common stock, $0.01 par value per share (150,000,000 shares authorized; 56,672,496 and 54,312,444 shares issued and outstanding as of June 30, 2017 and December 31, 2016, respectively)								567			543
Additional paid-in capital		1,090,197			1,011,467			1,228,185			1,143,883
Accumulated net investment income, net of cumulative dividends of $471,478 and $417,347 as of September 30, 2016 and December 31, 2015, respectively		38,421			7,181
Accumulated net realized gain from investments (accumulated net realized gain from investments of $52,352 before cumulative dividends of $112,539 as of September 30, 2016 and accumulated net realized gain from investments of $19,005 before cumulative dividends of $68,658 as of December 31, 2015)		(60,187	)		(49,653	)
Accumulated net investment income, net of cumulative dividends of $576,222 and $521,297 as of June 30, 2017 and December 31, 2016, respectively								22,751			19,033
Accumulated net realized gain from investments (accumulated net realized gain from investments of $86,943 before cumulative dividends of $129,701 as of June 30, 2017 and accumulated net realized gain from investments of $48,394 before cumulative dividends of $107,281 as of December 31, 2016)								(42,758	)		(58,887	)
Net unrealized appreciation, net of income taxes		75,390			101,395			74,000			96,909

Total net assets		1,144,350			1,070,894			1,282,745			1,201,481

Total liabilities and net assets	$	2,007,510		$	1,878,928		$	2,164,718		$	2,072,352



NET ASSET VALUE PER SHARE	$	21.62		$	21.24		$	22.62		$	22.10

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 September 30,						Nine Months Ended September 30,						Three Months Ended June 30,						Six Months Ended June 30,

	2016			2015			2016			2015			2017			2016			2017			2016
INVESTMENT INCOME:
Interest, fee and dividend income:
Control investments	$	14,826		$	13,437		$	40,398		$	36,264		$	14,590		$	12,957		$	27,576		$	25,572
Affiliate investments		9,619			6,852			27,095			19,862			9,568			8,952			19,468			17,476
Non-Control/Non-Affiliate investments		22,149			22,090			63,841			64,124			26,113			20,956			51,116			41,693

Interest, fee and dividend income		46,594			42,379			131,334			120,250			50,271			42,865			98,160			84,741
Interest, fee and dividend income from marketable securities and idle funds investments		5			229			174			846			—			37			—			168

Total investment income		46,599			42,608			131,508			121,096			50,271			42,902			98,160			84,909
EXPENSES:
Interest		(8,573	)		(8,302	)		(25,010	)		(23,755	)		(8,793	)		(8,255	)		(17,400	)		(16,437	)
Compensation		(4,309	)		(3,727	)		(12,081	)		(11,055	)		(4,555	)		(3,952	)		(8,985	)		(7,772	)
General and administrative		(2,247	)		(2,212	)		(6,808	)		(6,271	)		(3,060	)		(2,157	)		(6,000	)		(4,562	)
Share-based compensation		(2,137	)		(1,651	)		(5,977	)		(4,592	)		(2,798	)		(2,251	)		(5,067	)		(3,840	)
Expenses allocated to the External Investment Manager		1,224			1,145			3,739			3,133			1,628			1,361			3,152			2,515

Total expenses		(16,042	)		(14,747	)		(46,137	)		(42,540	)		(17,578	)		(15,254	)		(34,300	)		(30,096	)

NET INVESTMENT INCOME		30,557			27,861			85,371			78,556			32,693			27,648			63,860			54,813
NET REALIZED GAIN (LOSS):
Control investments		17,862			—			32,220			3,324			3,789			—			3,108			14,358
Affiliate investments		(3,447	)		5,964			25,260			5,827			(115	)		28,707			22,816			28,707
Non-Control/Non-Affiliate investments		(10,033	)		(6,195	)		(22,452	)		(16,836	)		7,307			(13,237	)		12,625			(12,419	)
Marketable securities and idle funds investments		(96	)		(1,112	)		(1,681	)		(1,352	)		—			(13	)		—			(1,586	)
SBIC debentures														—			—			(5,217	)		—

Total net realized gain (loss)		4,286			(1,343	)		33,347			(9,037	)
Total net realized gain														10,981			15,457			33,332			29,060

NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION):
Portfolio investments		8,376			(8,389	)		(29,738	)		21,716			1,365			(10,585	)		(20,726	)		(38,114	)
Marketable securities and idle funds investments		235			(648	)		1,729			(521	)		—			37			—			1,494
SBIC debentures		(801	)		(50	)		(820	)		(823	)		(36	)		127			5,629			(19	)

Total net change in unrealized appreciation (depreciation)		7,810			(9,087	)		(28,829	)		20,372			1,329			(10,421	)		(15,097	)		(36,639	)

INCOME TAXES:
Federal and state income, excise and other taxes		(904	)		495			(2,372	)		(1,547	)		(438	)		(1,098	)		(1,690	)		(1,468	)
Deferred taxes		1,432			2,742			3,390			8,551			(1,736	)		(675	)		(6,122	)		1,958

Income tax benefit		528			3,237			1,018			7,004
Income tax benefit (provision)														(2,174	)		(1,773	)		(7,812	)		490

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	43,181		$	20,668		$	90,907		$	96,895		$	42,829		$	30,911		$	74,283		$	47,724



NET INVESTMENT INCOME PER SHARE—BASIC AND DILUTED	$	0.58		$	0.56		$	1.66		$	1.61		$	0.58		$	0.54		$	1.15		$	1.07



NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS PER SHARE—BASIC AND DILUTED	$	0.82		$	0.41		$	1.76		$	1.99		$	0.76		$	0.60		$	1.33		$	0.94



DIVIDENDS PAID PER SHARE:
Regular monthly dividends	$	0.540		$	0.525		$	1.620		$	1.560		$	0.555		$	0.540		$	1.110		$	1.080
Supplemental dividends		—			—			0.275			0.275			0.275			0.275			0.275			0.275

Total dividends	$	0.540		$	0.525		$	1.895		$	1.835		$	0.830		$	0.815		$	1.385		$	1.355



WEIGHTED AVERAGE SHARES OUTSTANDING—BASIC AND DILUTED		52,613,277			50,036,776			51,538,745			48,681,260			56,166,782			51,441,371			55,648,854			50,995,575

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, 2014		45,079,150		$	451		$	853,606		$	23,665		$	(20,456	)	$	82,716
Public offering of common stock, net of offering costs		4,370,000			44			127,720			—			—			—
Share-based compensation		—			—			4,592			—			—			—			4,592
Purchase of vested stock for employee payroll tax withholding		(54,840	)		(1	)		(1,739	)		—			—			—			(1,740	)
Dividend reinvestment		444,957			4			13,654			—			—			—			13,658
Amortization of directors' deferred compensation		—			—			292			—			—			—			292
Issuance of restricted stock, net of forfeited shares		239,911			2			(2	)		—			—			—			—
Dividends to stockholders		—			—			—			(88,294	)		(2,168	)		—			(90,462	)
Net increase (loss) resulting from operations		—			—			—			78,556			(9,037	)		27,376			96,895

Balances at September 30, 2015		50,079,178		$	500		$	998,123		$	13,927		$	(31,661	)	$	110,092		$	1,090,981



Balances at December 31, 2015		50,413,744		$	504		$	1,011,467		$	7,181		$	(49,653	)	$	101,395		$	1,070,894			50,413,744		$	504		$	1,011,467		$	7,181		$	(49,653	)	$	101,395			$	1,070,894
Public offering of common stock, net of offering costs		1,996,793			20			64,239			—			—			—			64,259			1,225,757			12			38,642			—			—			—				38,654
Share-based compensation		—			—			5,977			—			—			—			5,977			—			—			3,840			—			—			—			3,840
Purchase of vested stock for employee payroll tax withholding		(80,750	)		(1	)		(2,592	)		—			—			—			(2,593	)		(80,750	)		(1	)		(2,592	)		—			—			—			(2,593	)
Dividend reinvestment		339,544			3			10,645			—			—			—			10,648			255,391			3			7,811			—			—			—			7,814
Amortization of directors' deferred compensation		—			—			464			—			—			—			464			—			—			301			—			—			—			301
Issuance of restricted stock, net of forfeited shares		262,586			3			(3	)		—			—			—			—			260,668			3			(3	)		—			—			—			—
Dividends to stockholders		—			—			—			(54,131	)		(43,881	)		—			(98,012	)		—			—			—			(39,883	)		(29,445	)		—			(69,328	)
Cumulative-effect to retained earnings for excess tax benefit		—			—			—			—			—			1,806			1,806			—			—			—			—			—			1,806			1,806
Net increase (loss) resulting from operations		—			—			—			85,371			33,347			(27,811	)		90,907
Net increase (decrease) resulting from operations																							—			—			—			54,813			29,060			(36,149	)		47,724

Balances at September 30, 2016		52,931,917		$	529		$	1,090,197		$	38,421		$	(60,187	)	$	75,390		$	1,144,350
Balances at June 30, 2016																							52,074,810		$	521		$	1,059,466		$	22,111		$	(50,038	)	$	67,052		$	1,099,112



Balances at December 31, 2016																							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																							2,104,424			22			78,412			—			—			—			78,434
Share-based compensation																							—			—			5,067			—			—			—			5,067
Purchase of vested stock for employee payroll tax withholding																							(113,371	)		(1	)		(4,346	)		—			—			—			(4,347	)
Investment through issuance of unregistered shares																							11,464			—			442			—			—			—			442
Dividend reinvestment																							115,807			1			4,403			—			—			—			4,404
Amortization of directors' deferred compensation																							—			—			326			—			—			—			326
Issuance of restricted stock, net of forfeited shares																							225,152			2			(2	)		—			—			—			—
Dividends to stockholders																							—			—			—			(54,925	)		(22,420	)		—			(77,345	)
Net increase (decrease) resulting from operations																							—			—			—			58,643			38,549			(22,909	)		74,283

Balances at June 30, 2017																							56,698,333		$	567		$	1,228,185		$	22,751		$	(42,758	)	$	74,000		$	1,282,745

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)

	Nine Months Ended September 30,						Six Months Ended June 30,

	2016			2015			2017			2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net increase in net assets resulting from operations	$	90,907		$	96,895		$	74,283		$	47,724
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used in) operating activities:
Investments in portfolio companies		(420,036	)		(727,099	)		(471,548	)		(303,049	)
Proceeds from sales and repayments of debt investments in portfolio companies		274,907			421,933			380,005			167,809
Proceeds from sales and return of capital of equity investments in portfolio companies		73,017			29,289			54,352			48,952
Investments in marketable securities and idle funds investments		(523	)		(4,483	)
Proceeds from sales and repayments of marketable securities and idle funds investments		4,316			7,094			—			2,129
Net change in net unrealized (appreciation) depreciation		28,829			(20,372	)
Net realized (gain) loss		(33,347	)		9,037
Net change in net unrealized depreciation								15,097			36,639
Net realized gain								(33,332	)		(29,060	)
Accretion of unearned income		(7,073	)		(6,474	)		(9,091	)		(4,189	)
Payment-in-kind interest		(4,911	)		(2,485	)		(3,125	)		(3,042	)
Cumulative dividends		(1,470	)		(1,242	)		(1,789	)		(638	)
Share-based compensation expense		5,977			4,592			5,067			3,840
Amortization of deferred financing costs		1,931			1,899			1,324			1,288
Deferred tax benefit		(3,390	)		(8,551	)
Deferred tax (benefit) provision								6,122			(1,958	)
Changes in other assets and liabilities:
Interest receivable and other assets		(685	)		(3,493	)		420			(1,825	)
Interest payable		(398	)		147			(289	)		1,432
Accounts payable and other liabilities		(247	)		(1,618	)		(3,058	)		(2,774	)
Deferred fees and other		1,644			1,438			1,224			1,362

Net cash provided by (used in) operating activities		9,448			(203,493	)		15,662			(35,360	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from public offering of common stock, net of offering costs		64,259			127,764			78,434			38,654
Dividends paid		(86,655	)		(75,453	)		(72,505	)		(61,225	)
Proceeds from issuance of SBIC debentures		6,000			—			46,400			—
Repayments of SBIC debentures								(25,200	)		—
Proceeds from credit facility		254,000			473,000			251,000			203,000
Repayments on credit facility		(232,000	)		(345,000	)		(291,000	)		(144,000	)
Payment of deferred loan costs and SBIC debenture fees		(925	)		(132	)		(1,125	)		(30	)
Purchases of vested stock for employee payroll tax withholding		(2,593	)		(1,740	)		(4,347	)		(2,593	)
Other		(83	)		(83	)		—			(83	)

Net cash provided by financing activities		2,003			178,356
Net cash provided by (used in) financing activities								(18,343	)		33,723

Net increase (decrease) in cash and cash equivalents		11,451			(25,137	)
Net decrease in cash and cash equivalents								(2,681	)		(1,637	)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		20,331			60,432			24,480			20,331

CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	31,782		$	35,295		$	21,799		$	18,694



Supplemental cash flow disclosures:
Interest paid	$	23,368		$	21,708		$	16,304		$	13,646
Taxes paid	$	1,762		$	2,504		$	2,785		$	1,575
Non-cash financing activities:
Shares issued pursuant to the DRIP	$	10,648		$	13,658		$	4,404		$	7,814

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

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments

~~September~~

June 30, ~~2016~~

2017

(dollars in thousands)

(Unaudited)

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


Control Investments(5)

Access Media Holdings, LLC(10)	Private Cable Operator								Private Cable Operator
		5% Current / 5% PIK Secured Debt (Maturity—July 22, 2020)	$	22,380	$	22,380	$	19,720		5% Current / 5% PIK Secured Debt (Maturity—July 22, 2020)	$	23,234	$	23,234	$	19,450
		Preferred Member Units (6,232,500 units; 12% cumulative)				6,126		250		Preferred Member Units (7,339,500 units; 12% cumulative)				7,233		270
		Member Units (45 units)				1		—		Member Units (45 units)				1		—

						28,507		19,970						30,468		19,720

AmeriTech College, LLC	For-Profit Nursing and Healthcare College
Ameritech College Operations, LLC									For-Profit Nursing and Healthcare College
		10% Secured Debt (Maturity—November 30, 2019)		1,004		1,004		1,004		13% Secured Debt (Maturity—November 30, 2019)		1,004		1,004		1,004
		10% Secured Debt (Maturity—January 31, 2020)		3,025		3,025		3,025		13% Secured Debt (Maturity—January 31, 2020)		3,025		3,025		3,025
		Preferred Member Units (294 units; 5%)(8)				2,291		2,291		Preferred Member Units (2,936 units)				6,191		2,910

						6,320		6,320						10,220		6,939

ASC Interests, LLC	Recreational and Educational Shooting Facility								Recreational and Educational Shooting Facility
		11% Secured Debt (Maturity—July 31, 2018)		2,250		2,230		2,250		11% Secured Debt (Maturity—July 31, 2018)		2,000		1,989		2,000
		Member Units (1,500 units)(8)				1,500		2,680		Member Units (1,500 units)(8)				1,500		2,320

						3,730		4,930						3,489		4,320

Bond-Coat, Inc.	Casing and Tubing Coating Services								Casing and Tubing Coating Services
		12% Secured Debt (Maturity—December 28, 2017)		11,596		11,547		11,596		12% Secured Debt (Maturity—December 28, 2017)		11,596		11,576		11,596
		Common Stock (57,508 shares)				6,350		5,090		Common Stock (57,508 shares)				6,350		7,830

						17,897		16,686						17,926		19,426

Café Brazil, LLC	Casual Restaurant Group								Casual Restaurant Group
		Member Units (1,233 units)(8)				1,742		6,570		Member Units (1,233 units)(8)				1,742		5,390

CBT Nuggets, LLC	Produces and Sells IT Training Certification Videos								Produces and Sells IT Training Certification Videos
		Member Units (416 units)(8)				1,300		52,800		Member Units (416 units)(8)				1,300		65,910

CMS Minerals Investments	Oil & Gas Exploration & Production
Charps, LLC									Pipeline Maintenance and Construction
		Preferred Member Units (CMS Minerals LLC) (458 units)(8)				2,207		3,371		12% Secured Debt (Maturity—February 3, 2022)		18,400		18,209		18,209
		Member Units (CMS Minerals II, LLC) (100 units)(8)				3,955		3,893		Preferred Member Units (1,600 units)				400		400

						6,162		7,264						18,609		18,609

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

~~September~~June 30, ~~2016~~2017

(dollars in thousands)

(Unaudited)

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


Clad-Rex Steel, LLC						Specialty Manufacturer of Vinyl-Clad Metal
							LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.55%, Secured Debt (Maturity—December 20, 2021)(9)	14,080	13,949	13,949
							Member Units (717 units)(8)		7,280	7,830
							10% Secured Debt (Clad-Rex Steel RE Investor, LLC) (Maturity—December 20, 2036)	1,193	1,181	1,181
							Member Units (Clad-Rex Steel RE Investor, LLC) (800 units)		210	210

									22,620	23,170

CMS Minerals Investments						Oil & Gas Exploration & Production
							Member Units (CMS Minerals II, LLC) (100 units)(8)		3,641	2,628

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)	1,080	1,080	1,080
		5.25% Current / 5.25% PIK Secured Debt (Maturity—May 30, 2019)	11,558	11,491	10,888		5.25% Current / 5.25% PIK Secured Debt (Maturity—May 30, 2019)	12,024	11,974	11,653
		Class A Preferred Member Units (15% cumulative)(8)		1,181	1,318		Class A Preferred Member Units (15% cumulative)		1,181	1,472
		Class B Preferred Member Units (6,453 units)		6,030	1,769		Class B Preferred Member Units (6,453 units)		6,030	211

				19,602	14,875				20,265	14,416

Gamber-Johnson Holdings, LLC	Manufacturer of Ruggedized Computer Mounting Systems					Manufacturer of Ruggedized Computer Mounting Systems
		LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 12.00%, Secured Debt (Maturity—June 24, 2021)(9)	20,000	19,798	19,798		LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 12.05%, Secured Debt (Maturity—June 24, 2021)(9)	23,880	23,668	23,880
		Member Units (7,040 units)		12,124	12,124		Member Units (8,619 units)(8)		14,844	22,080

				31,922	31,922				38,512	45,960

Garreco, LLC	Manufacturer and Supplier of Dental Products					Manufacturer and Supplier of Dental Products
		14% Secured Debt (Maturity—January 12, 2018)	5,550	5,511	5,511		LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 11.15%, Secured Debt (Maturity—March 31, 2020)(9)	5,844	5,794	5,794
		Member Units (1,200 units)(8)		1,200	1,150		Member Units (1,200 units)		1,200	1,830

				6,711	6,661				6,994	7,624

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)	13,484	13,390	13,484		LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.05%, Secured Debt (Maturity—December 19, 2019)(9)	12,409	12,340	12,409
		Member Units (5,879 units)(8)		13,065	18,030		Member Units (5,879 units)(8)		13,065	20,680

				26,455	31,514				25,405	33,089

Gulf Manufacturing, LLC	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)		2,980	8,770

				3,757	9,547

Gulf Publishing Holdings, LLC	Energy Focused Media and Publishing
		12.5% Secured Debt (Maturity—April 29, 2021)	10,000	9,907	9,907
		Member Units (3,124 units)		3,124	3,124

				13,031	13,031

Harrison Hydra-Gen, Ltd.	Manufacturer of Hydraulic Generators
		Common Stock (107,456 shares)(8)		718	3,340

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

~~September~~June 30, ~~2016~~2017

(dollars in thousands)

(Unaudited)

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


Gulf Manufacturing, LLC						Manufacturer of Specialty Fabricated Industrial Piping Products
							9% PIK Secured Debt (Ashland Capital IX, LLC) (Maturity—June 30, 2017)(17)	777	777	777
							Member Units (438 units)(8)		2,980	10,470

									3,757	11,247

Gulf Publishing Holdings, LLC						Energy Industry Focused Media and Publishing
							12.5% Secured Debt (Maturity—April 29, 2021)	12,800	12,692	12,692
							Member Units (3,681 units)		3,681	4,330

									16,373	17,022

Harborside Holdings, LLC						Real Estate Holding Company
							Member units (100 units)		6,206	9,400

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

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

				1,804	2,320				1,804	2,320

HW Temps LLC	Temporary Staffing Solutions					Temporary Staffing Solutions
		LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.50%, Secured Debt (Maturity July 2, 2020)(9)	10,376	10,296	10,296		LIBOR Plus 13.00% (Floor 1.00%), Current Coupon 14.05%, Secured Debt (Maturity July 2, 2020)(9)	9,976	9,909	9,909
		Preferred Member Units (3,200 units)(8)		3,942	4,360		Preferred Member Units (3,200 units)		3,942	3,940

				14,238	14,656				13,851	13,849

Hydratec, Inc.	Designer and Installer of Micro-Irrigation Systems					Designer and Installer of Micro-Irrigation Systems
		Common Stock (7,095 shares)(8)		7,095	15,760		Common Stock (7,095 shares)(8)		7,095	15,640

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)	11,250	11,197	11,250		11.5% Secured Debt (Maturity—November 15, 2018)	10,350	10,317	10,350
		Member Units (5,400 units)(8)		5,606	6,690		Member Units (5,400 units)(8)		5,606	8,630

				16,803	17,940				15,923	18,980

Indianapolis Aviation Partners, LLC	Fixed Base Operator
		15% Secured Debt (Maturity—January 15, 2017)	3,100	3,100	3,100
		Warrants (1,046 equivalent units)		1,129	2,649

				4,229	5,749

Jensen Jewelers of Idaho, LLC	Retail Jewelry Store
		Prime Plus 6.75% (Floor 2.00%), Current Coupon 10.25%, Secured Debt (Maturity—November 14, 2016)(9)	4,205	4,200	4,205
		Member Units (627 units)(8)		811	4,650

				5,011	8,855

Lamb Ventures, LLC	Aftermarket Automotive Services Chain
		LIBOR Plus 5.75%, Current Coupon 6.27%, Secured Debt (Maturity—March 3, 2017)	139	139	139
		11% Secured Debt (Maturity—May 31, 2018)	7,735	7,735	7,735
		Preferred Equity (non-voting)		400	400
		Member Units (742 units)(8)		5,273	5,880
		9.5% Secured Debt (Lamb's Real Estate Investment I, LLC) (Maturity—October 1, 2025)	882	882	882
		Member Units (Lamb's Real Estate Investment I, LLC) (1,000 units)(8)		625	1,620

				15,054	16,656

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

~~September~~June 30, ~~2016~~2017

(dollars in thousands)

(Unaudited)

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

Lighting Unlimited, LLC	Commercial and Residential Lighting Products and Design Services

Jensen Jewelers of Idaho, LLC						Retail Jewelry Store
							Prime Plus 6.75% (Floor 2.00%), Current Coupon 10.75%, Secured Debt (Maturity—November 14, 2019)(9)	3,755	3,707	3,755
							Member Units (627 units)(8)		811	4,460

									4,518	8,215

KBK Industries, LLC						Manufacturer of Specialty Oilfield and Industrial Products
							10% Secured Debt (Maturity—September 28, 2017)	940	940	940
							12.5% Secured Debt (Maturity—September 28, 2017)	5,900	5,896	5,900
							Member Units (325 units)		783	3,990

									7,619	10,830

Lamb Ventures, LLC						Aftermarket Automotive Services Chain
							LIBOR Plus 5.75%, Current Coupon 6.83%, Secured Debt (Maturity May 30, 2018)	190	190	190
							11% Secured Debt (Maturity—May 31, 2018)	7,579	7,579	7,579
		8% Secured Debt (Maturity—August 22, 2017)	1,514	1,514	1,514		Preferred Equity (non-voting)		400	400
		Preferred Equity (non-voting)		434	430		Member Units (742 units)(8)		5,273	6,330
		Warrants (71 equivalent units)		54	10		9.5% Secured Debt (Lamb's Real Estate Investment I, LLC) (Maturity—March 31, 2027)	432	428	432
		Member Units (700 units)		100	80		Member Units (Lamb's Real Estate Investment I, LLC) (1,000 units)(8)		625	590

				2,102	2,034				14,495	15,521

Marine Shelters Holdings, LLC	Fabricator of Marine and Industrial Shelters					Fabricator of Marine and Industrial Shelters
		12% PIK Secured Debt (Maturity—December 28, 2017)	9,967	9,905	9,379		12% PIK Secured Debt (Maturity—December 28, 2017)(14)	3,131	3,078	—
		Preferred Member Units (3,810 units)		5,352	906		Preferred Member Units (3,810 units)		5,352	—

				15,257	10,285				8,430	—

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)	13,475	13,365	13,365		10% Secured Debt (Maturity—August 31, 2020)	12,950	12,862	12,862
		Preferred Member Units (4,000 shares)		6,000	6,000		Preferred Member Units (4,000 shares)		6,000	6,000

				19,365	19,365				18,862	18,862

Mid-Columbia Lumber Products, LLC	Manufacturer of Finger-Jointed Lumber Products
		10% Secured Debt (Maturity—December 18, 2017)	1,750	1,750	1,750
		12% Secured Debt (Maturity—December 18, 2017)	3,900	3,900	3,900
		Member Units (3,554 units)		1,244	2,300
		9.5% Secured Debt (Mid—Columbia Real Estate, LLC) (Maturity—May 13, 2025)	847	847	847
		Member Units (Mid—Columbia Real Estate, LLC) (250 units)(8)		250	600

				7,991	9,397

MSC Adviser I, LLC(16)	Third Party Investment Advisory Services
		Member Units (Fully diluted 100.0%)(8)		—	30,133

Mystic Logistics Holdings, LLC	Logistics and Distribution Services Provider for Large Volume Mailers
		12% Secured Debt (Maturity—August 15, 2019)	9,176	9,043	9,176
		Common Stock (5,873 shares)		2,720	5,150

				11,763	14,326

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

~~September~~June 30, ~~2016~~2017

(dollars in thousands)

(Unaudited)

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

NAPCO Precast, LLC	Precast Concrete Manufacturing

Mid-Columbia Lumber Products, LLC						Manufacturer of Finger-Jointed Lumber Products
							10% Secured Debt (Maturity—December 18, 2017)	1,750	1,750	1,750
							12% Secured Debt (Maturity—December 18, 2017)	3,900	3,900	3,900
		Prime Plus 2.00% (Floor 7.00%), Current Coupon 9.00%, Secured Debt (Maturity—February 1, 2019)(9)	2,713	2,690	2,713		Member Units (3,554 units)		1,810	980
		18% Secured Debt (Maturity—February 1, 2019)	3,952	3,919	3,952		9.5% Secured Debt (Mid-Columbia Real Estate, LLC) (Maturity—May 13, 2025)	814	814	814
		Member Units (2,955 units)(8)		2,975	10,670		Member Units (Mid-Columbia Real Estate, LLC) (500 units)(8)		790	1,290

				9,584	17,335				9,064	8,734

MSC Adviser I, LLC(16)						Third Party Investment Advisory Services
							Member Units (Fully diluted 100.0%)(8)		—	37,104

Mystic Logistics Holdings, LLC						Logistics and Distribution Services Provider for Large Volume Mailers
							12% Secured Debt (Maturity—August 15, 2019)	8,032	7,938	8,032
							Common Stock (5,873 shares)		2,720	6,590

									10,658	14,622

NAPCO Precast, LLC						Precast Concrete Manufacturing
							LIBOR Plus 8.50%, Current Coupon 9.70%, Secured Debt (Maturity—May 31, 2019)	10,475	10,438	10,438
							Member Units (2,955 units)(8)		2,975	11,100

									13,413	21,538

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)	400	400	400
		14% Secured Debt (Maturity—September 8, 2017)	4,510	4,464	4,510		14% Secured Debt (Maturity—September 8, 2017)	4,205	4,194	4,205
		Warrants (251,723 equivalent units)		252	650		Warrants (251,723 equivalent units; Expiration—September 8, 2021; Strike price—$0.01 per unit)		252	680
		Member Units (1,454,167 units)		765	2,321		Member Units (500,000 units)		765	2,461

				5,481	7,481				5,611	7,746

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)	13,703	13,631	13,631		8% Current / 4% PIK Secured Debt (Maturity—December 22, 2016)(17)	14,197	14,197	14,197
		Warrants (14,331 equivalent units)		817	130		Warrants (14,331 equivalent units; Expiration—December 22, 2022; Strike price—$0.01 per unit)		817	130
		Member Units (50,877 units)		2,900	410		Member Units (50,877 units)		2,900	410

				17,348	14,171				17,914	14,737

OMi Holdings, Inc.	Manufacturer of Overhead Cranes
		Common Stock (1,500 shares)		1,080	14,390

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

PPL RVs, Inc.	Recreational Vehicle Dealer
		11.1% Secured Debt (Maturity—December 31, 2016)	9,710	9,710	9,710
		Common Stock (1,962 shares)(8)		2,150	11,780

				11,860	21,490

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)	3,361	3,361	3,361
		Preferred Member Units (19,631 units)		4,663	4,600
		Warrants (1,036 equivalent units)		1,200	20

				13,284	12,041

Quality Lease Service, LLC	Provider of Rigsite Accommodation Unit Rentals and Related Services
		8% PIK Secured Debt (Maturity—June 8, 2020)	6,929	6,929	6,929
		Member Units (1,000 units)		818	2,888

				7,747	9,817

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

~~September~~June 30, ~~2016~~2017

(dollars in thousands)

(Unaudited)

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


NuStep, LLC								Designer, Manufacturer and Distributor of Fitness Equipment
									12% Secured Debt (Maturity—January 31, 2022)	20,600	20,402	20,402
									Preferred Member Units (406 units)		10,200	10,200

											30,602	30,602

OMi Holdings, Inc.								Manufacturer of Overhead Cranes
									Common Stock (1,500 shares)(8)		1,080	12,740

Pegasus Research Group, LLC								Provider of Telemarketing and Data Services
									Member Units (460 units)		1,290	8,230

PPL RVs, Inc.								Recreational Vehicle Dealer
									LIBOR Plus 7.00% (Floor 0.50%), Current Coupon 8.15%, Secured Debt (Maturity—November 15, 2021)(9)	18,000	17,841	18,000
									Common Stock (1,962 shares)(8)		2,150	11,780

											19,991	29,780

Principle Environmental, LLC								Noise Abatement Service Provider
									12% Secured Debt (Maturity—April 30, 2017)(17)	4,060	4,060	4,060
									12% Current / 2% PIK Secured Debt (Maturity—April 30, 2017)(17)	3,412	3,412	3,412
									Preferred Member Units (19,631 units)		4,600	6,610
									Warrants (1,018 equivalent units; Expiration—January 31, 2021; Strike price—$0.01 per unit)		1,200	340

											13,272	14,422

Quality Lease Service, LLC								Provider of Rigsite Accommodation Unit Rentals and Related Services
									8% PIK Secured Debt (Maturity—June 8, 2020)	7,341	7,341	7,341
									Member Units (1,000 units)		2,318	4,387

											9,659	11,728

River Aggregates, LLC	Processor of Construction Aggregates							Processor of Construction Aggregates
		Zero Coupon Secured Debt (Maturity—June 30, 2018)	750		609		609		Zero Coupon Secured Debt (Maturity—June 30, 2018)	750	666	666
		Member Units (1,150 units)(8)			1,150		4,600		Member Units (1,150 units)(8)		1,150	4,410
		Member Units (RA Properties, LLC) (1,500 units)			369		2,510		Member Units (RA Properties, LLC) (1,500 units)		369	2,510

					2,128		7,719				2,185	7,586

SoftTouch Medical Holdings LLC	Home Provider of Pediatric Durable Medical Equipment
		LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.00%, Secured Debt (Maturity—October 31, 2019)(9)	7,225		7,177		7,225
		Member Units (4,450 units)(8)			4,930		8,670

					12,107		15,895

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
		Series A Preferred Units (2,500 units; 10% Cumulative)			2,500		360
		Warrants (1,424 equivalent units)			1,096		—
		Member Units (MPI Real Estate Holdings, LLC) (100% Fully diluted)(8)			2,300		2,300

					8,818		5,582

Uvalco Supply, LLC	Farm and Ranch Supply Store
		9% Secured Debt (Maturity—January 1, 2019)	986		986		986
		Member Units (2,011 units)(8)			3,843		4,860

					4,829		5,846

Vision Interests, Inc.	Manufacturer / Installer of Commercial Signage
		13% Secured Debt (Maturity—December 23, 2016)	2,889		2,885		2,885
		Series A Preferred Stock (3,000,000 shares)			3,000		3,370
		Common Stock (1,126,242 shares)			3,706		140

					9,591		6,395

Ziegler's NYPD, LLC	Casual Restaurant Group
		6.5% Secured Debt (Maturity—October 1, 2019)	1,000		993		993
		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		220
		Preferred Member Units (10,072 units)			2,834		3,700

					7,477		7,963


Subtotal Control Investments (28.5% of total investments at fair value)				$	401,190	$	547,651

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

~~September~~June 30, ~~2016~~2017

(dollars in thousands)

(Unaudited)

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

AFG Capital Group, LLC

Provider of Rent-to-Own Financing Solutions and Services

Warrants (42 equivalent units)
$ 259 $ 620

Member Units (186 units)
1,200 2,530

1,459 3,150

Barfly Ventures, LLC(10)

Casual Restaurant Group

12% Secured Debt (Maturity—August 31, 2020)
5,958 5,854 5,761

Options (2 equivalent units)
397 420

Warrant (1 equivalent unit)
473 240

6,724 6,421

BBB Tank Services, LLC

Maintenance, Repair and Construction Services to the Above-Ground Storage Tank Market

LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity—April 8, 2021)(9)
336 332 332

12% Current / 1% PIK Secured Debt (Maturity—April 8, 2021)
4,020 3,982 3,982

Member Units (800,000 units)
800 800

5,114 5,114

Boss Industries, LLC

Manufacturer and Distributor of Air, Power and Other Industrial Equipment

Preferred Member Units (2,242 units)(8)
2,379 2,606

Bridge Capital Solutions Corporation

Financial Services and Cash Flow Solutions Provider

13% Secured Debt (Maturity—July 25, 2021)
7,500 5,550 5,550

Warrants (63 equivalent shares)
2,132 3,312

13% Secured Debt (Mercury Service Group, LLC) (Maturity—July 25, 2021)
1,000 990 990

Preferred Member Units (Mercury Service Group, LLC) (17,742 units)(8)
1,000 1,000

9,672 10,852

Buca C, LLC

Casual Restaurant Group

LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.25%, Secured Debt (Maturity—June 30, 2020)(9)
22,371 22,197 22,371

Preferred Member Units (6 units; 6% cumulative)(8)
3,879 5,599

26,076 27,970

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


SoftTouch Medical Holdings LLC	Provider of In-Home Pediatric Durable Medical Equipment
		LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.05%, Secured Debt (Maturity—October 31, 2019)(9)	7,140		7,103		7,140
		Member Units (4,450 units)(8)			4,930		9,540

					12,033		16,680

The MPI Group, LLC	Manufacturer of Custom Hollow Metal Doors, Frames and Accessories
		9% Secured Debt (Maturity—October 2, 2018)	2,924		2,923		2,620
		Series A Preferred Units (2,500 units; 10% Cumulative)			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		2,390

					8,819		5,010

Uvalco Supply, LLC	Farm and Ranch Supply Store
		9% Secured Debt (Maturity—January 1, 2019)	636		636		636
		Member Units (1,867 units)(8)			3,579		4,306

					4,215		4,942

Vision Interests, Inc.	Manufacturer / Installer of Commercial Signage
		13% Secured Debt (Maturity—December 23, 2018)	2,814		2,790		2,790
		Series A Preferred Stock (3,000,000 shares)			3,000		3,000
		Common Stock (1,126,242 shares)			3,706		—

					9,496		5,790

Ziegler's NYPD, LLC	Casual Restaurant Group
		6.5% Secured Debt (Maturity—October 1, 2019)	1,000		995		995
		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		210
		Preferred Member Units (10,072 units)			2,834		3,580

					7,479		7,835

Subtotal Control Investments (32.3% of total investments at fair value)				$	497,623	$	671,713

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

June 30, 2017

(dollars in thousands)

(Unaudited)

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


Affiliate Investments(6)

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

					1,459		3,540

BBB Tank Services, LLC	Maintenance, Repair and Construction Services to the Above-Ground Storage Tank Market
		LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.55%, Secured Debt (Maturity—April 8, 2021)(9)	800		797		797
		15% Secured Debt (Maturity—April 8, 2021)	4,027		3,994		3,994
		Member Units (800,000 units)			800		800

					5,591		5,591

Barfly Ventures, LLC(10)	Casual Restaurant Group
		12% Secured Debt (Maturity—August 31, 2020)	7,796		7,675		7,796
		Options (2 equivalent units)			397		590
		Warrant (1 equivalent unit; Expiration—August 31, 2025; Strike price—$1.00 per unit)			473		330

					8,545		8,716

Boccella Precast Products LLC	Manufacturer of Precast Hollow Core Concrete
		LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 11.30%, Secured Debt (Maturity—June 30, 2022)(9)	16,400		16,216		16,216
		Member Units (2,160,000 units)			2,160		2,160

					18,376		18,376

Boss Industries, LLC	Manufacturer and Distributor of Air, Power and Other Industrial Equipment
		Preferred Member Units (2,242 units)(8)			2,519		3,320

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

~~September~~June 30, ~~2016~~2017

(dollars in thousands)

(Unaudited)

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


Bridge Capital Solutions Corporation						Financial Services and Cash Flow Solutions Provider
							13% Secured Debt (Maturity—July 25, 2021)	7,500	5,740	5,740
							Warrants (63 equivalent shares; Expiration—April 18, 2022; Strike price—$0.01 per share)		2,132	3,370
							13% Secured Debt (Mercury Service Group, LLC) (Maturity—July 25, 2021)	1,000	991	1,000
							Preferred Member Units (Mercury Service Group, LLC) (17,742 units)(8)		1,000	1,000

									9,863	11,110

Buca C, LLC						Casual Restaurant Group
							LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.33%, Secured Debt (Maturity—June 30, 2020)(9)	21,204	21,068	21,068
							Preferred Member Units (6 units; 6% cumulative)(8)		4,053	4,048

									25,121	25,116

CAI Software LLC	Provider of Specialized Enterprise Resource Planning Software					Provider of Specialized Enterprise Resource Planning Software
		12% Secured Debt (Maturity—October 10, 2019)	3,780	3,754	3,780		12% Secured Debt (Maturity—October 10, 2019)	3,483	3,464	3,483
		Member Units (65,356 units)(8)		654	2,150		Member Units (65,356 units)(8)		654	2,820

				4,408	5,930				4,118	6,303

CapFusion, LLC(13)	Non-Bank Lender to Small Businesses					Non-Bank Lender to Small Businesses
		13% Secured Debt (Maturity—March 25, 2021)	12,800	11,566	11,566		13% Secured Debt (Maturity—March 25, 2021)	14,400	13,304	13,304
		Warrants (1,600 equivalent units)		1,200	1,200		Warrants (1,600 equivalent units; Expiration—March 24, 2026; Strike price—$0.01 per unit)		1,200	1,200

				12,766	12,766				14,504	14,504

Chandler Signs Holdings, LLC(10)	Sign Manufacturer					Sign Manufacturer
		12% Secured Debt (Maturity—July 4, 2021)	4,500	4,459	4,500		12% Secured Debt (Maturity—July 4, 2021)	4,500	4,464	4,500
		Class A Units (1,500,000 units)(8)		1,500	2,950		Class A Units (1,500,000 units)(8)		1,500	2,910

				5,959	7,450				5,964	7,410

Condit Exhibits, LLC	Tradeshow Exhibits / Custom Displays Provider					Tradeshow Exhibits / Custom Displays Provider
		Member Units (3,936 units)(8)		100	1,780		Member Units (3,936 units)(8)		100	1,840

Congruent Credit Opportunities Funds(12)(13)	Investment Partnership
		LP Interests (Congruent Credit Opportunities Fund II, LP) (Fully diluted 19.8%)(8)		5,778	1,439
		LP Interests (Congruent Credit Opportunities Fund III, LP) (Fully diluted 17.4%)(8)		15,754	15,976

				21,532	17,415

Daseke, Inc.	Specialty Transportation Provider
		12% Current / 2.5% PIK Secured Debt (Maturity—July 31, 2018)	21,660	21,471	21,660
		Common Stock (19,467 shares)		5,213	21,640

				26,684	43,300

Dos Rios Partners(12)(13)	Investment Partnership
		LP Interests (Dos Rios Partners, LP) (Fully diluted 20.2%)		5,237	4,121
		LP Interests (Dos Rios Partners—A, LP) (Fully diluted 6.4%)		1,663	1,191

				6,900	5,312

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

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 Ofof Investments (Continued)

~~September~~June 30, ~~2016~~2017

(dollars in thousands)

(Unaudited)

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


Congruent Credit Opportunities Funds(12)(13)						Investment Partnership
							LP Interests (Congruent Credit Opportunities Fund II, LP) (Fully diluted 19.8%)		5,730	1,377
							LP Interests (Congruent Credit Opportunities Fund III, LP) (Fully diluted 17.4%)(8)		17,869	18,577

									23,599	19,954

Dos Rios Partners(12)(13)						Investment Partnership
							LP Interests (Dos Rios Partners, LP) (Fully diluted 20.2%)		5,996	5,369
							LP Interests (Dos Rios Partners—A, LP) (Fully diluted 6.4%)		1,904	1,573

									7,900	6,942

Dos Rios Stone Products LLC(10)						Limestone and Sandstone Dimension Cut Stone Mining Quarries
							Class A Units (2,000,000 units)(8)		2,000	1,870

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

East West Copolymer & Rubber, LLC	Manufacturer of Synthetic Rubbers					Manufacturer of Synthetic Rubbers
		12% Current / 2% PIK Secured Debt (Maturity—October 17, 2019)	9,650	9,534	9,534		12% Current / 2% PIK Secured Debt (Maturity—October 17, 2019)(14)(15)	9,699	9,591	3,000
		Warrants (2,510,790 equivalent units)		50	50		Warrants (2,510,790 equivalent units; Expiration—October 15, 2024; Strike price—$0.01 per unit)		50	—

				9,584	9,584				9,641	3,000

EIG Fund Investments(12)(13)	Investment Partnership					Investment Partnership
		LP Interests (EIG Global Private Debt fund-A, L.P.) (Fully diluted 11.1%)(8)		2,788	2,788		LP Interests (EIG Global Private Debt Fund—A, L.P.) (Fully diluted 11.1%)(8)		793	694
							LP Interests (EIG Traverse Co-Investment, L.P.) (Fully diluted 22.2%)(8)		9,805	10,409
EIG Traverse Co-Investment, L.P.(12)(13)	Investment Partnership

		LP Interests (Fully diluted 22.2%)(8)		9,805	10,027				10,598	11,103

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	5,519
		LP Interests (Freeport First Lien Loan Fund III LP) (Fully diluted 6.0%)(8)		3,564	3,564		LP Interests (Freeport First Lien Loan Fund III LP) (Fully diluted 6.0%)(8)		7,559	7,507

				9,538	9,184				13,533	13,026

Gault Financial, LLC (RMB Capital, LLC)	Purchases and Manages Liquidation of Distressed Assets
		10% Current Secured Debt (Maturity—November 21, 2016)	13,046	13,018	11,053
		Warrants (29,025 equivalent units)		400	—

				13,418	11,053

Glowpoint, Inc.	Provider of Cloud Managed Video Collaboration Services
		12% Secured Debt (Maturity—October 18, 2018)	9,000	8,943	6,639
		Common Stock (7,711,517 shares)		3,958	2,160

				12,901	8,799

Guerdon Modular Holdings, Inc.	Multi-Family and Commercial Modular Construction Company
		9% Current / 4% PIK Secured Debt (Maturity—August 13, 2019)	10,599	10,476	10,476
		Preferred Stock (404,998 shares)		1,140	1,140
		Common Stock (212,033 shares)		2,983	80

				14,599	11,696

Houston Plating and Coatings, LLC	Provider of Plating and Industrial Coating Services
		Member Units (265,756 units)		1,429	4,380

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

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

~~September~~June 30, ~~2016~~2017

(dollars in thousands)

(Unaudited)

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

Indianhead Pipeline Services, LLC	Provider of Pipeline Support Services
		12% Secured Debt (Maturity—February 6, 2017)	5,325	5,273	5,273
Gault Financial, LLC (RMB Capital, LLC)						Purchases and Manages Collection of Healthcare and other Business Receivables
							10.5% Secured Debt (Maturity—January 1, 2019)	12,720	12,720	11,770
							Warrants (29,032 equivalent units; Expiration—February 9, 2022; Strike price—$0.01 per unit)		400	—

									13,120	11,770

Glowpoint, Inc.						Provider of Cloud Managed Video Collaboration Services
							12% Secured Debt (Maturity—October 18, 2018)	9,000	8,963	2,700
							Common Stock (7,711,517 shares)		3,958	2,170

									12,921	4,870

Guerdon Modular Holdings, Inc.						Multi-Family and Commercial Modular Construction Company
		Preferred Member Units (33,819 units; 8% cumulative)(8)		2,332	2,670		13% Secured Debt (Maturity—August 13, 2019)	10,708	10,612	10,612
		Warrants (31,928 equivalent units)		459	—		Preferred Stock (404,998 shares)		1,140	1,140
		Member Units (14,732 units)		1	—		Common Stock (212,033 shares)		2,983	80

				8,065	7,943				14,735	11,832

KBK Industries, LLC	Manufacturer of Specialty Oilfield and Industrial Products
Hawk Ridge Systems, LLC(13)						Value-Added Reseller of Engineering Design and Manufacturing Solutions
		10% Secured Debt (Maturity—September 28, 2017)	700	700	700		10% Secured Debt (Maturity—December 2, 2021)	10,000	9,909	9,909
		12.5% Secured Debt (Maturity—September 28, 2017)	5,900	5,886	5,886		Preferred Member Units (226 units)(8)		2,850	2,850
		Member Units (250 units)		341	3,090		Preferred Member Units (HRS Services, ULC) (226 units)(8)		150	150

				6,927	9,676				12,909	12,909

L.F. Manufacturing Holdings, LLC(10)	Manufacturer of Fiberglass Products
		Member Units (2,179,001 units)(8)		2,019	1,380

OnAsset Intelligence, Inc.	Provider of Transportation Monitoring / Tracking Products and Services
		12% PIK Secured Debt (Maturity—December 31, 2015)(17)	4,384	4,384	4,384
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	3,000
		Warrants (5,333 equivalent shares)		1,919	—		Member Units (315,756 units)		2,179	4,980

				8,284	4,384				5,179	7,980

OPI International Ltd.(13)	Provider of Man Camp and Industrial Storage Services
I-45 SLF LLC(12)(13)						Investment Partnership
		10% Unsecured Debt (Maturity—April 8, 2018)	473	473	473		Member Units (Fully diluted 20.0%; 24.4% profits interest)(8)		16,200	17,165
		Common Stock (20,766,317 shares)		1,371	3,200

				1,844	3,673

PCI Holding Company, Inc.	Manufacturer of Industrial Gas Generating Systems
		12% Secured Debt (Maturity—March 31, 2019)	13,000	12,888	13,000
		Preferred Stock (1,500,000 shares; 20% cumulative)(8)		3,212	5,040

				16,100	18,040

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)(18)	30,785	30,281	250
		Preferred Member Units (250 units)		2,500	—

				32,781	250

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

~~September~~June 30, ~~2016~~2017

(dollars in thousands)

(Unaudited)

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

Casual Restaurant Group

12% Secured Debt (Maturity—November 13, 2018)
13,682 13,539 13,539

Class C Preferred Stock (Fully diluted 10.0%; 10% cumulative)(8)
2,670 2,670

16,209 16,209

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)
2,826 2,826 2,813

LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity—January 13, 2019)(9)
822 822 815

15% PIK Unsecured Debt (Maturity—July 13, 2019)
718 718 714

Preferred Stock (4,935,377 shares; 13.5% cumulative)(8)
5,430 6,200

Common Stock (705,054 shares)
— 2,580

9,796 13,122

Universal Wellhead Services Holdings, LLC(10)

Provider of Wellhead Equipment, Designs, and Personnel to the Oil & Gas Industry

Class A Preferred Units (4,000,000 units; 4.5% cumulative)(8)
4,000 1,160

Valley Healthcare Group, LLC

Provider of Durable Medical Equipment

LIBOR Plus 12.50% (Floor 0.50%), Current Coupon 13.02%, Secured Debt (Maturity—December 29, 2020)(9)
10,716 10,622 10,622

Preferred Member Units (Valley Healthcare Holding, LLC) (1,600 units)
1,600 1,600

12,222 12,222

Volusion, LLC

Provider of Online Software-as-a-Service eCommerce Solutions

10.5% Secured Debt (Maturity—January 26, 2020)
17,500 16,391 16,391

Preferred Member Units (4,876,670 units)
14,000 14,000

Warrants (950,618 equivalent units)
1,400 1,400

31,791 31,791

Subtotal Affiliate Investments (18.4% of total investments at fair value)
$ 368,553 $ 352,873

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Consolidated Schedule Of Investments (Continued)~~

~~September 30, 2016~~

~~(dollars in thousands)~~

~~(Unaudited)~~

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

AccuMED Corp.(10)

Medical Device Contract Manufacturer

LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—October 29, 2020)(9)
$ 10,306 $ 10,218 $ 10,306

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)
7,955 7,826 7,753

Ahead, LLC(10)

IT Infrastructure Value Added Reseller

LIBOR Plus 6.50%, Current Coupon 7.34%, Secured Debt (Maturity—November 2, 2020)
14,438 14,070 14,401

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 14,701 14,869

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)
7,406 7,300 7,369

American Seafoods Group, LLC(11)

Catcher-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 9,610

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)
12,309 11,122 12,016

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)
2,283 2,283 2,111

Member Units (440,620 units)
4,928 3,084

7,211 5,195

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


Indianhead Pipeline Services, LLC	Provider of Pipeline Support Services
		12% Secured Debt (Maturity—February 6, 2018)	5,192	5,192	5,192
		Preferred Member Units (33,819 units; 8% cumulative)(8)		2,537	2,875
		Warrants (31,928 equivalent units; Expiration—August 6, 2022; Strike price—$0.001 per unit)		459	—
		Member Units (14,732 units)		1	—

				8,189	8,067

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

Meisler Operating LLC	Provider of Short-term Trailer and Container Rental
		LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.72%, Secured Debt (Maturity—June 7, 2022)(9)	16,800	16,618	16,618
		Member Units (Milton Meisler Holdings LLC) (32,000 units)		3,200	3,200

				19,818	19,818

OnAsset Intelligence, Inc.	Provider of Transportation Monitoring / Tracking Products and Services
		12% PIK Secured Debt (Maturity—June 30, 2021)	4,796	4,796	4,796
		10% PIK Unsecured Debt (Maturity—June 30, 2021)	45	45	45
		Preferred Stock (912 shares; 7% cumulative)		1,981	—
		Warrants (5,333 equivalent shares; Expiration—April 18, 2021; Strike price—$0.01 per share)		1,919	—

				8,741	4,841

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% Secured Debt (Maturity—March 31, 2019)	13,300	13,218	13,300
		Preferred Stock (1,740,000 shares)		1,740	2,610
		Preferred Stock (1,500,000 shares; 20% cumulative)(8)		3,733	4,870

				18,691	20,780

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

~~September~~June 30, ~~2016~~2017

(dollars in thousands)

(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)
11,256 11,076 10,813

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 14,335 14,335

16,735 16,735

Applied Products, Inc.(10)

Adhesives Distributor

LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—September 30, 2019)(9)
3,927 3,895 3,818

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)
16,922 16,760 16,760

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)
7,252 7,085 6,237

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)
9,750 9,560 9,726

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)
6,253 6,223 6,000

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)
11,850 11,654 11,613

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


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
		12% Secured Debt (Maturity—November 13, 2018)	13,175	13,081	13,081
		Class C Preferred Stock (Fully diluted 10.0%; 10% cumulative)(8)		2,878	2,878

				15,959	15,959

UniTek Global Services, Inc.(11)	Provider of Outsourced Infrastructure Services
		LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.65%, Secured Debt (Maturity—January 13, 2019)(9)	8,535	8,527	8,535
		LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.65% / 1.00% PIK, Current Coupon Plus PIK 10.65%, Secured Debt (Maturity—January 13, 2019)(9)	137	137	137
		15% PIK Unsecured Debt (Maturity—July 13, 2019)	802	802	802
		Preferred Stock (2,596,567 shares; 19% cumulative)(8)		2,597	2,597
		Preferred Stock (4,935,377 shares; 13.5% cumulative)(8)		6,702	6,840
		Common Stock (1,075,992 shares)		—	2,520

				18,765	21,431

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 13.55%, Secured Debt (Maturity—December 29, 2020)(9)	12,686	12,587	12,587
		Preferred Member Units (Valley Healthcare Holding, LLC) (1,600 units)		1,600	1,600

				14,187	14,187

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

~~September~~June 30, ~~2016~~2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)
Business Description Type of Investment(2)(3) Principal(4) Cost(4) Fair Value
Berry Aviation, Inc.(10)

Airline Charter Service Operator

12.00% Current / 1.75% PIK Secured Debt (Maturity—January 30, 2020)
5,627 5,585 5,585

Common Stock (553 shares)
400 760

5,985 6,345

Bioventus LLC(10)

Production of Orthopedic Healing Products

LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 11.00%, Secured Debt (Maturity—April 10, 2020)(9)
5,000 4,929 5,013

Blackhawk Specialty Tools LLC(11)

Oilfield Equipment & Services

LIBOR Plus 5.25% (Floor 1.25%), Current Coupon 6.50%, Secured Debt (Maturity—August 1, 2019)(9)
5,643 5,622 4,233

Blue Bird Body Company(11)(13)

School Bus Manufacturer

LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 6.50%, Secured Debt (Maturity—June 26, 2020)(9)
1,716 1,705 1,722

Bluestem Brands, Inc.(11)

Multi-Channel Retailer of General Merchandise

LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity—November 6, 2020)(9)
13,068 12,808 11,451

Brainworks Software, LLC(10)

Advertising Sales and Newspaper Circulation Software

Prime Plus 7.25% (Floor 3.25%), Current Coupon 10.75%, Secured Debt (Maturity—July 22, 2019)(9)
626 621 621

Prime Plus 7.25% (Floor 3.25%), Current Coupon 10.75%, Secured Debt (Maturity—July 22, 2019)(9)
6,107 6,059 5,981

6,680 6,602

Brightwood Capital Fund III, LP(12)(13)

Investment Partnership

LP Interests (Fully diluted 1.6%)(8)
11,250 10,596

Brundage-Bone Concrete Pumping, Inc.(11)

Construction Services Provider

10.375% Secured Debt (Maturity—September 1, 2021)
3,000 2,984 3,210

California Pizza Kitchen, Inc.(11)

Casual Restaurant Group

LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—August 23, 2022)(9)
5,000 4,951 4,985

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


Volusion, LLC	Provider of Online Software-as-a-Service eCommerce Solutions
		11.5% Secured Debt (Maturity—January 26, 2020)	17,077		15,208		15,208
		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		2,360

					31,784		31,568

Subtotal Affiliate Investments (17.7% of total investments at fair value)				$	415,997	$	368,488

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

June 30, 2017

(dollars in thousands)

(Unaudited)

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


Non-Control/Non-Affiliate Investments(7)

AAC Holdings, Inc.(11)	Substance Abuse Treatment Service Provider
		LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 7.75%, Secured Debt (Maturity—June 30, 2023)(9)	$	11,900	$	11,603	$	11,751

Adams Publishing Group, LLC(10)	Local Newspaper Operator
		LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.15%, Secured Debt (Maturity—November 3, 2020)(9)		9,018		8,774		8,849

ADS Tactical, Inc.(10)	Value-Added Logistics and Supply Chain Provider to the Defense Industry
		LIBOR Plus 7.50% (Floor 0.75%), Current Coupon 8.54%, Secured Debt (Maturity—December 31, 2022)(9)		11,443		11,210		11,210

Ahead, LLC(10)	IT Infrastructure Value Added Reseller
		LIBOR Plus 6.50%, Current Coupon 7.81%, Secured Debt (Maturity—November 2, 2020)		13,875		13,577		13,840

Allflex Holdings III Inc.(11)	Manufacturer of Livestock Identification Products
		LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.16%, Secured Debt (Maturity—July 19, 2021)(9)		14,795		14,715		14,958

American Scaffold Holdings, Inc.(10)	Marine Scaffolding Service Provider
		LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.80%, Secured Debt (Maturity—March 31, 2022)(9)		7,219		7,127		7,183

American Teleconferencing Services, Ltd.(11)	Provider of Audio Conferencing and Video Collaboration Solutions
		LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.72%, Secured Debt (Maturity—December 8, 2021)(9)		10,873		10,138		10,866
		LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.59%, Secured Debt (Maturity—June 6, 2022)(9)		3,714		3,578		3,679

						13,716		14,545

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

~~September~~June 30, ~~2016~~2017

(dollars in thousands)

(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)
13,130 10,935 11,653

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 14,122 7,101

Clarius BIGS, LLC(10)

Prints & Advertising Film Financing

15% PIK Secured Debt (Maturity—January 5, 2015)(14)(17)
2,999 2,999 159

Compact Power Equipment, Inc.

Equipment / Tool Rental

12% Secured Debt (Maturity—October 1, 2017)
4,100 4,094 4,100

Series A Preferred Stock (4,298,435 shares)
1,079 3,830

5,173 7,930

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)
12,011 11,766 12,056

Covenant Surgical Partners, Inc.(11)

Ambulatory Surgical Centers

8.75% Secured Debt (Maturity—August 1, 2019)
800 800 768

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)
6,903 6,810 6,920

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)
9,727 9,696 9,727

Darr Equipment LP(10)

Heavy Equipment Dealer

12% Current / 2% PIK Secured Debt (Maturity—April 15, 2020)
21,023 20,565 20,312

Warrants (915,734 equivalent units)
474 10

21,039 20,322

Digital River, Inc.(11)

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 15,081 15,156

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


Anchor Hocking, LLC(11)	Household Products Manufacturer
		LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.23%, Secured Debt (Maturity—June 4, 2018)(9)	2,265		2,265	2,305
		Member Units (440,620 units)			4,928	3,305

					7,193	5,610

Apex Linen Service, Inc.	Industrial Launderers
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.05%, Secured Debt (Maturity—October 30, 2022)(9)	2,400		2,400	2,400
		13% Secured Debt (Maturity—October 30, 2022)	14,416		14,342	14,342

					16,742	16,742

Arcus Hunting LLC.(10)	Manufacturer of Bowhunting and Archery Products and Accessories
		LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.15%, Secured Debt (Maturity—November 13, 2019)(9)	15,824		15,704	15,824

ATI Investment Sub, Inc.(11)	Manufacturer of Solar Tracking Systems
		LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.48%, Secured Debt (Maturity—June 22, 2021)(9)	9,000		8,833	8,978

ATS Workholding, Inc.(10)	Manufacturer of Machine Cutting Tools and Accessories
		LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.59%, Secured Debt (Maturity—March 10, 2019)(9)	6,173		6,152	5,662

ATX Networks Corp.(11)(13)	Provider of Radio Frequency Management Equipment
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.30%, Secured Debt (Maturity—June 11, 2021)(9)	9,716		9,581	9,618
				��
Berry Aviation, Inc.(10)	Airline Charter Service Operator
		12.00% Current / 1.75% PIK Secured Debt (Maturity—January 30, 2020)	5,627		5,593	5,627
		Common Stock (553 shares)			400	820

					5,993	6,447

BigName Commerce, LLC(10)	Provider of Envelopes and Complimentary Stationery Products
		LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.43%, Secured Debt (Maturity—May 11, 2022)(9)	2,500		2,470	2,470

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

~~September~~June 30, ~~2016~~2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)
Business Description Type of Investment(2)(3) Principal(4) Cost(4) Fair Value
Drilling Info Holdings, Inc.

Information Services for the Oil and Gas Industry

Common Stock (3,788,865 shares)
1,335 10,410

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 5,587 5,590

EnCap Energy Fund Investments(12)(13)

Investment Partnership

LP Interests (EnCap Energy Capital Fund VIII, L.P.) (Fully diluted 0.1%)(8)
3,915 2,054

LP Interests (EnCap Energy Capital Fund VIII Co- Investors, L.P.) (Fully diluted 0.4%)
2,258 1,283

LP Interests (EnCap Energy Capital Fund IX, L.P.) (Fully diluted 0.1%)(8)
4,007 4,044

LP Interests (Encap Energy Capital Fund X, L.P.) (Fully diluted 0.1%)
2,654 2,654

LP Interests (EnCap Flatrock Midstream Fund II, L.P.) (Fully diluted 0.8%)(8)
8,937 9,677

LP Interests (EnCap Flatrock Midstream Fund III, L.P.) (Fully diluted 0.2%)(8)
2,474 2,496

24,245 22,208

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 6,852 4,253

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)
12,659 12,228 10,760

Fram Group Holdings, Inc.(11)

Manufacturer of Automotive Maintenance Products

LIBOR Plus 5.50% (Floor 1.50%), Current Coupon 7.00%, Secured Debt (Maturity—July 29, 2017)(9)
9,267 9,213 8,947

LIBOR Plus 9.50% (Floor 1.50%), Current Coupon 11.00%, Secured Debt (Maturity—January 29, 2018)(9)
700 699 608

9,912 9,555

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


Binswanger Enterprises, LLC(10)	Glass Repair and Installation Service Provider
		LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.15%, Secured Debt (Maturity—March 9, 2022)(9)	15,460	15,167	15,167
		Member Units (1,050,000 units)		1,050	1,050

				16,217	16,217

Bluestem Brands, Inc.(11)	Multi-Channel Retailer of General Merchandise
		LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.70%, Secured Debt (Maturity—November 6, 2020)(9)	12,503	12,293	8,893

Brainworks Software, LLC(10)	Advertising Sales and Newspaper Circulation Software
		Prime Plus 9.25% (Floor 3.25%), Current Coupon 13.50%, Secured Debt (Maturity—July 22, 2019)(9)	6,733	6,692	6,495
Brightwood Capital Fund Investments(12)(13)	Investment Partnership
		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

				12,500	10,828

Brundage-Bone Concrete Pumping, Inc.(11)	Construction Services Provider
		10.375% Secured Debt (Maturity—September 1, 2021)	3,000	2,986	3,150
California Pizza Kitchen, Inc.(11)	Casual Restaurant Group
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.30%, Secured Debt (Maturity—August 23, 2022)(9)	12,935	12,891	12,954
CDHA Management, LLC(10)	Dental Services
		LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.68%, Secured Debt (Maturity—December 5, 2021)(9)	4,356	4,287	4,356
Cengage Learning Acquisitions, Inc.(11)	Provider of Educational Print and Digital Services
		LIBOR Plus 4.25% (Floor 1.00%), Current Coupon 5.34%, Secured Debt (Maturity—June 7, 2023)(9)	9,304	9,074	8,815

Cenveo Corporation(11)	Provider of Commercial Printing, Envelopes, Labels, and Printed Office Products
		6% Secured Debt (Maturity—August 1, 2019)	19,130	16,575	16,165

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

~~September~~June 30, ~~2016~~2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)
Business Description Type of Investment(2)(3) Principal(4) Cost(4) Fair Value
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 3,849 3,764

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

4,636 4,524

Grace Hill, LLC(10)

Online Training Tools for the Multi-Family Housing Industry

Prime Plus 5.25% (Floor 1.00%), Current Coupon 8.75%, Secured Debt (Maturity—August 15, 2019)(9)
634 622 634

LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.25%, Secured Debt (Maturity—August 15, 2019)(9)
11,580 11,494 11,580

12,116 12,214

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)
7,698 7,644 7,698

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)
4,825 4,794 3,860

13.75% Secured Debt (Maturity—July 31, 2018)
2,000 1,957 1,200

6,751 5,060

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 13,209 13,067

Guitar Center, Inc.(11)

Musical Instruments Retailer

6.5% Secured Debt (Maturity—April 15, 2019)
14,625 13,820 12,870

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)
5,446 5,401 5,401

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


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)	16,873	15,461	8,366

Clarius BIGS, LLC(10)	Prints & Advertising Film Financing
		15% PIK Secured Debt (Maturity—January 5, 2015)(14)(17)	2,924	2,924	88
Compact Power Equipment, Inc.	Equipment / Tool Rental
		12% Secured Debt (Maturity—October 1, 2017)	4,100	4,098	4,100
		Series A Preferred Stock (4,298,435 shares)		1,079	4,580

				5,177	8,680

Construction Supply Investments, LLC(10)	Distribution Platform of Specialty Construction Materials to Professional Concrete and Masonry Contractors
		Member Units (28,000 units)		3,723	3,723

ContextMedia Health, LLC(11)	Provider of Healthcare Media Content
		LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.73%, Secured Debt (Maturity—December 23, 2021)(9)	5,825	5,287	5,884

Covenant Surgical Partners, Inc.(11)	Ambulatory Surgical Centers
		8.75% Secured Debt (Maturity—August 1, 2019)	2,800	2,749	2,744
CST Industries Inc.(11)	Storage Tank Manufacturer
		PRIME Plus 5.25% (Floor 2.50%), Current Coupon 9.50%, Secured Debt (Maturity—May 22, 2017)(9)(17)	9,102	9,039	7,901
Darr Equipment LP(10)	Heavy Equipment Dealer
		12% Current / 2% PIK Secured Debt (Maturity—April 15, 2020)	21,343	20,963	21,013
		Warrants (915,734 equivalent units; Expiration—April 15, 2024; Strike price—$1.50 per unit)		474	10

				21,437	21,023

Digital River, Inc.(11)	Provider of Outsourced e-Commerce Solutions and Services
		LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.75%, Secured Debt (Maturity—February 12, 2021)(9)	15,184	15,097	15,260

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

~~September~~June 30, ~~2016~~2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)
Business Description Type of Investment(2)(3) Principal(4) Cost(4) Fair Value
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)
12,375 12,200 12,499

Hostway Corporation(11)

Managed Services and Hosting Provider

LIBOR Plus 4.75% (Floor 1.25%), Current Coupon 6.00%, Secured Debt (Maturity—December 13, 2019)(9)
10,727 10,661 10,328

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)
9,812 9,279 8,585

Hygea Holdings, Corp.(10)

Provider of Physician Services

LIBOR Plus 9.25%, Current Coupon 10.08%, Secured Debt (Maturity—February 24, 2019)
7,938 7,390 7,513

Warrants (4,880,735 equivalent shares)
369 490

7,759 8,003

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 9,413 9,522

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)
6,844 6,558 6,861

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)
8,962 8,942 8,942

Industrial Services Acquisition, LLC(10)

Industrial Cleaning Services

11.25% Current / 0.75% PIK Unsecured Debt (Maturity—December 17, 2022)
4,510 4,423 4,423

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

5,323 5,323

Infinity Acquisition Finance Corp.(11)

Application Software for Capital Markets

7.25% Unsecured Debt (Maturity—August 1, 2022)
5,700 5,355 4,959

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


Digital Room LLC(11)	Pure-Play e-Commerce Print Business
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.23%, Secured Debt (Maturity—November 21, 2022)(9)	7,434	7,296	7,397
Drilling Info Holdings, Inc.	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 10.15%, Secured Debt (Maturity—November 26, 2019)(9)	5,625	5,595	5,625
EnCap Energy Fund Investments(12)(13)	Investment Partnership
		LP Interests (EnCap Energy Capital Fund VIII, L.P.) (Fully diluted 0.1%)(8)		3,881	2,315
		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)		3,976	3,565
		LP Interests (EnCap Energy Capital Fund X, L.P.) (Fully diluted 0.1%)(8)		4,720	4,620
		LP Interests (EnCap Flatrock Midstream Fund II, L.P.) (Fully diluted 0.8%)(8)		6,274	5,518
		LP Interests (EnCap Flatrock Midstream Fund III, L.P.) (Fully diluted 0.2%)(8)		3,090	3,091

				24,168	20,658

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 9.48%, Secured Debt (Maturity—April 28, 2022)(9)	6,999	6,867	5,825
Flavors Holdings Inc.(11)	Global Provider of Flavoring and Sweetening Products and Solutions
		LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 7.05%, Secured Debt (Maturity—April 3, 2020)(9)	13,466	12,909	12,725

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

~~September~~June 30, ~~2016~~2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)
Business Description Type of Investment(2)(3) Principal(4) Cost(4) Fair Value
Inn of the Mountain Gods Resort and Casino(11)

Hotel & Casino Owner & Operator

9.25% Secured Debt (Maturity—November 30, 2020)
3,851 3,726 3,504

Insurance Technologies, LLC(10)

Illustration and Sales-automation Platforms

LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.00%, Secured Debt (Maturity—December 1, 2019)(9)
3,965 3,934 3,934

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 4,359 4,421

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)
15,026 15,007 14,274

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)
9,837 9,688 8,533

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)
4,444 4,426 4,278

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)
14,692 14,591 13,958

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)
13,000 12,717 12,935

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


GI KBS Merger Sub LLC(11)	Outsourced Janitorial Services to Retail/Grocery Customers
		LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.23%, Secured Debt (Maturity—October 29, 2021)(9)	6,825	6,742	6,689
		LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.73%, Secured Debt (Maturity—April 29, 2022)(9)	3,800	3,647	3,657

				10,389	10,346

Grace Hill, LLC(10)	Online Training Tools for the Multi-Family Housing Industry
		Prime Plus 5.25% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity—August 15, 2019)(9)	1,215	1,205	1,215
		LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.47%, Secured Debt (Maturity—August 15, 2019)(9)	11,465	11,399	11,465

				12,604	12,680

Great Circle Family Foods, LLC(10)	Quick Service Restaurant Franchise
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.15%, Secured Debt (Maturity—October 28, 2019)(9)	7,421	7,380	7,421

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)	4,783	4,769	3,564
		13.75% Secured Debt (Maturity—July 31, 2018)	2,000	1,973	400

				6,742	3,964
GST Autoleather, Inc.(11)	Automotive Leather Manufacturer
		LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 6.80%, Secured Debt (Maturity—July 10, 2020)(9)	19,409	18,874	19,021

Guitar Center, Inc.(11)	Musical Instruments Retailer
		6.5% Secured Debt (Maturity—April 15, 2019)	16,625	15,797	14,444

Hojeij Branded Foods, LLC(10)	Multi-Airport, Multi-Concept Restaurant Operator
		LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.67%, Secured Debt (Maturity—July 27, 2021)(9)	5,905	5,862	5,905

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

~~September~~June 30, ~~2016~~2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)
Business Description Type of Investment(2)(3) Principal(4) Cost(4) Fair Value
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)
5,652 5,607 5,624

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)
5,670 5,649 5,641

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 10,653 10,735

Lansing Trade Group LLC(11)

Commodity Merchandiser

9.25% Unsecured Debt (Maturity—February 15, 2019)
6,000 6,000 6,000

Larchmont Resources, LLC(11)

Oil & Gas Exploration & Production

LIBOR Plus 8.75% (Floor 1.00%), Current Coupon 9.75%, Secured Debt (Maturity—August 7, 2019)(9)(14)
7,784 7,496 2,491

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

Investment Partnership

LP Interests (Fully diluted 2.3%)
2,500 4,150

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)
8,672 8,528 8,528

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)
183 183

496 496

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)
14,497 14,416 14,497

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


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 8.42%, Secured Debt (Maturity—January 28, 2021)(9)	8,503	7,981	7,823

Hostway Corporation(11)	Managed Services and Hosting Provider
		LIBOR Plus 6.75% (Floor 1.25%), Current Coupon 8.05%, Secured Debt (Maturity—December 13, 2019)(9)	20,366	19,938	19,831
		LIBOR Plus 6.75% (Floor 1.25%), Current Coupon 8.05%, Secured Debt (Maturity—December 13, 2018)(9)	2,433	2,308	2,293

				22,246	22,124
Hunter Defense Technologies, Inc.(11)	Provider of Military and Commercial Shelters and Systems
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.16%, Secured Debt (Maturity—August 5, 2019)(9)	9,194	8,801	8,654

Hydrofarm Holdings LLC(10)	Wholesaler of Horticultural Products
		LIBOR Plus 7.00%, Current Coupon 8.18%, Secured Debt (Maturity—May 12, 2022)	6,750	6,619	6,619
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)	12,174	11,832	12,143

Implus Footcare, LLC(10)	Provider of Footwear and Other Accessories
		LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 8.05%, Secured Debt (Maturity—September 15, 2021)(9)	19,949	19,655	19,655

Indivior Finance LLC(11)(13)	Specialty Pharmaceutical Company Treating Opioid Dependence
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.17%, Secured Debt (Maturity—December 19, 2019)(9)	3,387	3,252	3,420

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

~~September~~June 30, ~~2016~~2017

(dollars in thousands)

(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)
15,620 15,302 15,302

Warrants (1,437,409 equivalent units)
280 370

15,582 15,672

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)
14,843 14,746 14,131

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)
14,926 14,653 14,832

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)
2,539 2,036 2,069

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)
9,422 9,365 9,357

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)
8,526 8,388 8,014

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)
4,197 4,135 4,176

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 3,324

Pardus Oil and Gas, LLC(11)

Oil & Gas Exploration & Production

13% PIK Secured Debt (Maturity—November 12, 2021)
1,826 1,826 1,826

5% PIK Secured Debt (Maturity—May 13, 2022)
980 980 980

Member Units (2,472 units)
2,472 2,472

5,278 5,278

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


Industrial Services Acquisition, LLC(10)	Industrial Cleaning Services
		11.25% Current / 0.75% PIK Unsecured Debt (Maturity—December 17, 2022)	4,536	4,455	4,536
		Member Units (Industrial Services Investments, LLC) (900,000 units)		900	810

				5,355	5,346

Infinity Acquisition Finance Corp.(11)	Application Software for Capital Markets
		7.25% Unsecured Debt (Maturity—August 1, 2022)	2,700	2,552	2,599

Inn of the Mountain Gods Resort and Casino(11)	Hotel & Casino Owner & Operator
		9.25% Secured Debt (Maturity—November 30, 2020)	6,249	5,958	5,624

Intertain Group Limited(11)(13)	Business-to-Consumer Online Gaming Operator
		LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.80%, Secured Debt (Maturity—April 8, 2022)(9)	4,175	4,123	4,227

iPayment, Inc.(11)	Provider of Merchant Acquisition
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.16%, Secured Debt (Maturity—April 11, 2023)(9)	12,000	11,883	12,120

iQor US Inc.(11)	Business Process Outsourcing Services Provider
		LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.22%, Secured Debt (Maturity—April 1, 2021)(9)	2,008	1,994	1,998

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 5.29% / 2.50% PIK, Current Coupon Plus PIK 7.79%, Secured Debt (Maturity—May 26, 2021)(9)	4,447	4,432	4,447

Jacuzzi Brands LLC(11)	Manufacturer of Bath and Spa Products
		LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.00%, Secured Debt (Maturity—June 28, 2023)(9)	6,000	5,880	5,925

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

~~September~~June 30, ~~2016~~2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)
Business Description Type of Investment(2)(3) Principal(4) Cost(4) Fair Value
Paris Presents Incorporated(11)

Branded Cosmetic and Bath Accessories

LIBOR Plus 8.25% (Floor 1.00%), Current Coupon 9.25%, Secured Debt (Maturity—December 31, 2021)(9)
2,000 1,967 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 7,388 7,163

Permian Holdings, Inc.(11)

Storage Tank Manufacturer

10.5% Secured Debt (Maturity—January 15, 2018)(14)
2,755 2,740 785

Pernix Therapeutics Holdings, Inc.(10)

Pharmaceutical Royalty

12% Secured Debt (Maturity—August 1, 2020)
3,447 3,447 3,322

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)
2,500 2,476 2,506

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 13,711 14,008

Point.360(10)

Fully Integrated Provider of Digital Media Services

Warrants (65,463 equivalent shares)
69 —

Common Stock (163,658 shares)
273 105

342 105

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)
5,500 5,294 5,308

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)
9,543 7,821 7,301

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


Joerns Healthcare, LLC(11)	Manufacturer and Distributor of Health Care Equipment & Supplies
		LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.66% Secured Debt (Maturity—May 9, 2020)(9)	13,387	13,281	12,472

Keypoint Government Solutions, Inc.(10)	Provider of Pre-Employment Screening Services
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.16%, Secured Debt (Maturity—April 18, 2024)(9)	12,500	12,378	12,378

LaMi Products, LLC(10)	General Merchandise Distribution
		LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.72%, Secured Debt (Maturity—September 16, 2020)(9)	11,368	11,300	11,368

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)	2,375	2,375	2,363
		Member Units (Larchmont Intermediate Holdco, LLC) (2,828 units)		353	976

				2,728	3,339

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 9.45%, Secured Debt (Maturity—June 24, 2021)(9)	8,436	8,315	8,436

Looking Glass Investments, LLC(12)(13)	Specialty Consumer Finance
		Member Units (2.5 units)		125	125
		Member Units (LGI Predictive Analytics LLC) (190,712 units)(8)		128	128

				253	253

LSF9 Atlantis Holdings, LLC(11)	Provider of Wireless Telecommunications Carrier Services
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.14%, Secured Debt (Maturity—May 1, 2023)(9)	7,000	6,944	7,080

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

~~September~~June 30, ~~2016~~2017

(dollars in thousands)

(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 7.75% (Floor 1.50%), Current Coupon 9.25%, Secured Debt (Maturity—November 1, 2018)(9)
16,335 16,128 16,090

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)
11,302 11,227 11,189

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)
4,230 4,157 4,238

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 14,550 14,700

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 2,977 2,957

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)
3,920 3,832 882

RLJ Entertainment, Inc.(10)

Movie and TV Programming Licensee and Distributor

LIBOR Plus 8.75% (Floor 0.25%), Current Coupon 9.54%, Secured Debt (Maturity—September 11, 2019)(9)
9,009 9,009 9,009

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 27

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


Messenger, LLC(10)	Supplier of Specialty Stationery and Related Products to the Funeral Industry
		LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.47%, Secured Debt (Maturity—September 9, 2020)(9)	14,403	14,335	14,403

MHVC Acquisition Corp.(11)	Provider of Differentiated Information Solutions, Systems Engineering, and Analytics
		LIBOR Plus 5.25% (Floor 1.00%), Current Coupon 6.48%, Secured Debt (Maturity—April 29, 2024)(9)	10,500	10,448	10,631

NBG Acquisition Inc(11)	Wholesaler of Home Décor Products
		LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 6.91%, Secured Debt (Maturity—April 26, 2024)(9)	4,430	4,359	4,408

Minute Key, Inc.	Operator of Automated Key Duplication Kiosks
		12% Secured Debt (Maturity—September 19, 2019)	15,782	15,533	15,533
		Warrants (1,437,409 equivalent shares; Expiration—May 20, 2025; Strike price—$0.01 per share)		280	930

				15,813	16,463

New Media Holdings II LLC(11)(13)	Local Newspaper Operator
		LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.48%, Secured Debt (Maturity—June 4, 2020)(9)	17,804	17,582	17,760

NNE Partners, LLC(10)	Oil & Gas Exploration & Production
		LIBOR Plus 8.00%, Current Coupon 9.21%, Secured Debt (Maturity—March 2, 2022)	9,042	8,955	8,955

North American Lifting Holdings, Inc.(11)	Crane Service Provider
		LIBOR Plus 4.50% (Floor 1.00%), Current Coupon 5.80%, Secured Debt (Maturity—November 27, 2020)(9)	7,785	6,830	7,308

Novetta Solutions, LLC(11)	Provider of Advanced Analytics Solutions for Defense Agencies
		LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.30%, Secured Debt (Maturity—October 17, 2022)(9)	6,761	6,476	6,546

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

~~September~~June 30, ~~2016~~2017

(dollars in thousands)

(Unaudited)

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

Provider of Intelligent Driver Record Monitoring Software and Services

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

Sage Automotive Interiors, Inc(11)

Automotive Textiles Manufacturer

LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.00%, Secured Debt (Maturity—October 8, 2021)(9)
8,138 8,095 8,056

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)
11,038 10,751 10,568

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 5,624 5,655

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—May 13, 2019)(9)
9,328 9,328 9,328

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)
13,405 13,311 13,405

Sotera Defense Solutions, Inc.(11)

Defense Industry Intelligence Services

LIBOR Plus 7.50% (Floor 1.50%), Current Coupon 9.00%, Secured Debt (Maturity—April 21, 2017)(9)
9,436 9,339 9,059

Stardust Finance Holdings, Inc.(11)

Manufacturer of Diversified Building Products

LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 6.50%, Secured Debt (Maturity—March 13, 2022)(9)
12,854 12,722 12,814

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 5,586 5,512

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


NTM Acquisition Corp.(11)	Provider of B2B Travel Information Content
		LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.34%, Secured Debt (Maturity—June 7, 2022)(9)	6,349	6,280	6,318

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	1,539

Pardus Oil and Gas, LLC(11)	Oil & Gas Exploration & Production
		13% PIK Secured Debt (Maturity—November 12, 2021)	1,989	1,989	1,729
		5% PIK Secured Debt (Maturity—May 13, 2022)	1,016	1,016	270
		Member Units (2,472 units)		2,472	—

				5,477	1,999

Paris Presents Incorporated(11)	Branded Cosmetic and Bath Accessories
		LIBOR Plus 8.75% (Floor 1.00%), Current Coupon 9.98%, Secured Debt (Maturity—December 31, 2021)(9)	4,500	4,468	4,455

Parq Holdings Limited Partnership(11)(13)	Hotel & Casino Operator
		LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.71%, Secured Debt (Maturity—December 17, 2020)(9)	7,500	7,405	7,481

Permian Holdco 2, Inc.(11)	Storage Tank Manufacturer
		14% PIK Unsecured Debt (Maturity—October 15, 2021)	212	212	212
		Preferred Stock (Permian Holdco 1, Inc.) (154,558 units)		799	799
		Common Stock (Permian Holdco 1, Inc.) (154,558 units)		—	—

				1,011	1,011

Pernix Therapeutics Holdings, Inc.(10)	Pharmaceutical Royalty
		12% Secured Debt (Maturity—August 1, 2020)	3,214	3,214	1,896

Pike Corporation(11)	Construction and Maintenance Services for Electric Transmission and Distribution Infrastructure
		LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.23%, Secured Debt (Maturity—September 10, 2024)(9)	3,000	2,971	3,053

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

~~September~~June 30, ~~2016~~2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)
Business Description Type of Investment(2)(3) Principal(4) Cost(4) Fair Value
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 4,655 3,971

Targus International, LLC(11)

Distributor of Protective Cases for Mobile Devices

15% PIK Secured Debt (Maturity—December 31, 2019)
1,099 1,099 1,099

Common Stock (Targus Cayman HoldCo Limited) (249,614 shares)(13)
2,555 2,260

3,654 3,359

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)
7,642 7,632 7,603

LIBOR Plus 7.50% (Floor 1.25%), Current Coupon 8.75%, Secured Debt (Maturity—June 10, 2019)(9)
10,500 10,436 10,448

18,068 18,051

Templar Energy LLC(11)

Oil & Gas Exploration & Production

Member Units (97,048 units)
970 704

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)
2,224 2,214 2,216

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)
4,925 4,560 3,644

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)
11,155 11,091 11,114

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 15,595 15,595

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


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	20

				342	20

PPC/SHIFT LLC(10)	Provider of Digital Solutions to Automotive Industry
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.04%, Secured Debt (Maturity—December 22, 2021)(9)	6,913	6,778	6,912

Prowler Acquisition Corp.(11)	Specialty Distributor to the Energy Sector
		LIBOR Plus 4.50% (Floor 1.00%), Current Coupon 5.80%, Secured Debt (Maturity—January 28, 2020)(9)	11,200	9,491	9,352

PT Network, LLC(10)	Provider of Outpatient Physical Therapy and Sports Medicine Services
		LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.70%, Secured Debt (Maturity—November 30, 2021)(9)	17,619	17,396	17,501

QBS Parent, Inc.(11)	Provider of Software and Services to the Oil & Gas Industry
		LIBOR Plus 4.75% (Floor 1.00%), Current Coupon 5.92%, Secured Debt (Maturity—August 7, 2021)(9)	14,272	14,095	13,737

Redbox Automated Retail, LLC(11)	Operator of Home Media Entertainment Kiosks
		LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.79%, Secured Debt (Maturity—September 27, 2021)(9)	11,156	10,852	11,221

RGL Reservoir Operations Inc.(11)(13)	Oil & Gas Equipment and Services
		LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.27%, Secured Debt (Maturity—August 13, 2021)(9)	3,890	3,814	671

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

~~September~~June 30, ~~2016~~2017

(dollars in thousands)

(Unaudited)

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

Provider of Prepaid Debit Card Solutions

12% Secured Debt (Maturity—February 1, 2019)
12,000 10,880 10,880

Warrants (444,725 equivalent units)
1,250 1,250

12,130 12,130

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 7,371 7,371

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)
9,600 9,535 9,552

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 1,463 1,493

Virtex Enterprises, LP(10)

Specialty, Full-Service Provider of Complex Electronic Manufacturing Services

12% Secured Debt (Maturity—December 27, 2018)
1,667 1,548 1,548

Preferred Class A Units (14 units; 5% cumulative)(8)
333 581

Warrants (11 equivalent units)
186 198

2,067 2,327

Vivid Seats LLC(11)

Provider of Online Secondary Ticket Marketplace

LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—March 1, 2022)(9)
4,938 4,619 4,956

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)
10,122 10,027 10,027

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 4,898

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


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	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	1,670

Salient Partners L.P.(11)	Provider of Asset Management Services
		LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.66%, Secured Debt (Maturity—June 9, 2021)(9)	10,514	10,271	10,198

Sigma Electric Manufacturing Corporation(10)(13)	Manufacturer and Distributor of Electrical Fittings and Parts
		LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.40%, Secured Debt (Maturity—October 13, 2021)(9)	12,500	12,225	12,500

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)	13,302	13,226	13,394
		9% Secured Debt (Maturity—October 31, 2020)	3,666	3,470	3,630

				16,696	17,024

Strike, LLC(11)	Pipeline Construction and Maintenance Services
		LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.30%, Secured Debt (Maturity—November 30, 2022)(9)	9,750	9,476	9,994
		LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.30%, Secured Debt (Maturity—May 30, 2019)(9)	500	471	511

				9,947	10,505

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)	7,581	7,523	7,581

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

~~September~~June 30, ~~2016~~2017

(dollars in thousands)

(Unaudited)

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

Wilton Brands LLC(11)	Specialty Housewares Retailer

Synagro Infrastructure Company, Inc(11)								Waste Management Services
		LIBOR Plus 7.25% (Floor 1.25%), Current Coupon 8.50%, Secured Debt (Maturity—August 30, 2018)(9)	1,358		1,349		1,134		LIBOR Plus 5.25% (Floor 1.00%), Current Coupon 6.55%, Secured Debt (Maturity—August 22, 2020)(9)	9,161	8,895	8,749

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		6,340		6,169

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)	11,182		10,621		10,847

Zilliant Incorporated	Price Optimization and Margin Management Solutions
Targus International, LLC(11)								Distributor of Protective Cases for Mobile Devices
		Preferred Stock (186,777 shares)			154		260		15% PIK Secured Debt (Maturity—December 31, 2019)	1,227	1,227	1,227
		Warrants (952,500 equivalent shares)			1,071		1,190		Common Stock (Targus Cayman HoldCo Limited) (249,614 shares)(13)		2,555	230

					1,225		1,450				3,782	1,457

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

TE Holdings, LLC(11)								Oil & Gas Exploration & Production
									Member Units (97,048 units)		970	463

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)	7,255	7,249	7,255
									LIBOR Plus 7.50% (Floor 1.25%), Current Coupon 8.75%, Secured Debt (Maturity—June 10, 2019)(9)	10,500	10,453	10,500

Subtotal Non-Control/Non-Affiliate Investments (53.1% of total investments at fair value)				$	1,046,923	$	1,019,743

Total Portfolio Investments, September 30, 2016				$	1,816,666	$	1,920,267



											17,702	17,755

TMC Merger Sub Corp.(11)								Refractory & Maintenance Services Provider
									LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—October 31, 2022)(9)	14,828	14,690	14,902

TOMS Shoes, LLC(11)								Global Designer, Distributor, and Retailer of Casual Footwear
									LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 6.70%, Secured Debt (Maturity—October 30, 2020)(9)	4,888	4,581	2,729

Turning Point Brands, Inc.(10)(13)								Marketer/Distributor of Tobacco Products
									LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.27%, Secured Debt (Maturity—May 17, 2022)(9)	8,479	8,399	8,458

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

~~September~~June 30, ~~2016~~2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)
Business Description Type of Investment(2)(3) Principal(4) Cost(4) Fair Value
Marketable Securities and Idle Funds Investments

Other Marketable Securities and Idle Funds Investments(13)(15)

Investments in Marketable Securities and Diversified, Registered Bond Funds

$ — $ —

Subtotal Marketable Securities and Idle Funds Investments (0.0% of total investments at fair value)
$ — $ —

Total Investments, September 30, 2016
$ 1,816,666 $ 1,920,267

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


TVG-I-E CMN ACQUISITION, LLC(10)	Organic Lead Generation for Online Postsecondary Schools
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.04%, Secured Debt (Maturity—November 3, 2021)(9)	6,378	6,265	6,378

Tweddle Group, Inc.(11)	Provider of Technical Information Services to Automotive OEMs
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.17%, Secured Debt (Maturity—October 21, 2022)(9)	6,275	6,160	6,322

U.S. TelePacific Corp.(11)	Provider of Communications and Managed Services
		LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.23%, Secured Debt (Maturity—May 2, 2023)(9)	18,000	17,879	17,822

UOS, LLC(11)	Specialty Equipment Sales and Rentals
		LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 6.80%, Secured Debt (Maturity—April 18, 2023)(9)	3,750	3,713	3,820

US Joiner Holding Company(11)	Marine Interior Design and Installation
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.30%, Secured Debt (Maturity—April 16, 2020)(9)	13,826	13,705	13,861

VCVH Holding Corp. (Verisk)(11)	Healthcare Technology Services Focused on Revenue Maximization
		LIBOR Plus 9.25% (Floor 1.00%), Current Coupon 10.55%, Secured Debt (Maturity—June 1, 2024)(9)	1,500	1,466	1,504
		LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.30%, Secured Debt (Maturity—June 1, 2023)(9)	11,172	11,167	11,179

				12,633	12,683

VIP Cinema Holdings, Inc.(11)	Supplier of Luxury Seating to the Cinema Industry
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.30%, Secured Debt (Maturity—March 1, 2023)(9)	7,900	7,862	7,993

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

June 30, 2017

(dollars in thousands)

(Unaudited)

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


Virtex Enterprises, LP(10)	Specialty, Full-Service Provider of Complex Electronic Manufacturing Services
		12% Secured Debt (Maturity—December 27, 2018)	1,667		1,583		1,583
		Preferred Class A Units (14 units; 5% cumulative)(8)			333		920
		Warrants (11 equivalent units; Expiration—December 27, 2023; Strike price—$0.001 per unit)			186		484

					2,102		2,987

Vistar Media, Inc.(10)	Operator of Digital Out-of-Home Advertising Platform
		LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 11.15%, Secured Debt (Maturity—February 16, 2022)(9)	3,375		3,078		3,078
		Warrants (70,207 equivalent shares; Expiration—February 17, 2027; Strike price—$0.01 per share)			331		331

					3,409		3,409

Wellnext, LLC(10)	Manufacturer of Supplements and Vitamins
		LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 11.00%, Secured Debt (Maturity—July 21, 2022)(9)	9,930		9,849		9,930

Worley Claims Services, LLC(10)	Insurance Adjustment Management and Services Provider
		LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.21%, Secured Debt (Maturity—October 31, 2020)(9)	5,794		5,759		5,794

YP Holdings LLC(11)	Online and Offline Advertising Operator
		LIBOR Plus 11.00% (Floor 1.25%), Current Coupon 12.30%, Secured Debt (Maturity—June 4, 2018)(9)	19,355		19,067		19,355

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 (50.0% of total investments at fair value)				$	1,058,628	$	1,036,745

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

June 30, 2017

(dollars in thousands)

(Unaudited)

Portfolio Company(1)	Cost(4)		Fair Value


Total Portfolio Investments, June 30, 2017	$	1,972,248	$	2,076,946

(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 ~~September~~June 30, ~~2016.~~2017. As noted in this schedule, ~~62%~~63% (based on the par amount of the loans) of the loans contain LIBOR floors which range between ~~0.25%~~0.50% and 2.25%, with a weighted-average LIBOR floor of approximately 1.05%.
(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.
(15): ~~Marketable securities and idle fund investments.~~
~~(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)~~: 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.

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments

December 31, ~~2015~~

2016

(dollars in thousands)

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


Control Investments(5)	Control Investments(5)

Access Media Holdings, LLC(10)		Private Cable Operator								Private Cable Operator
			5.00% Current / 5.00% PIK Secured Debt (Maturity—July 22, 2020)	$	21,554	$	21,554	$	20,380		5% Current / 5% PIK Secured Debt (Maturity—July 22, 2020)	$	22,664	$	22,664	$	19,700
			Preferred Member Units (4,500,000 units; 12% cumulative)				4,394		2,000		Preferred Member Units (6,581,250 units; 12% cumulative)				6,475		240
			Member Units (45 units)				1		—		Member Units (45 units)				1		—

							25,949		22,380						29,140		19,940

AmeriTech College, LLC		For-Profit Nursing and Healthcare College
Ameritech College Operations, LLC										For-Profit Nursing and Healthcare College
			10% Secured Debt (Maturity—May 15, 2016)		514		514		514		10% Secured Debt (Maturity—November 30, 2019)		514		514		514
			10% Secured Debt (Maturity—November 30, 2019)		489		489		489		13% Secured Debt (Maturity—November 30, 2019)		489		489		489
			10% Secured Debt (Maturity—January 31, 2020)		3,025		3,025		3,025		13% Secured Debt (Maturity—January 31, 2020)		3,025		3,025		3,025
			Preferred Member Units (294 units; 5%)(8)				2,291		2,291		Preferred Member Units (294 units)				2,291		2,291

							6,319		6,319						6,319		6,319

ASC Interests, LLC		Recreational and Educational Shooting Facility								Recreational and Educational Shooting Facility
			11% Secured Debt (Maturity—July 31, 2018)		2,500		2,470		2,500		11% Secured Debt (Maturity—July 31, 2018)		2,100		2,084		2,100
			Member Units (1,500 units)(8)				1,500		2,230		Member Units (1,500 units)(8)				1,500		2,680

							3,970		4,730						3,584		4,780

Bond-Coat, Inc.		Casing and Tubing Coating Services								Casing and Tubing Coating Services
			12% Secured Debt (Maturity—December 28, 2017)		11,596		11,521		11,596		12% Secured Debt (Maturity—December 28, 2017)		11,596		11,556		11,596
			Common Stock (57,508 shares)				6,350		9,140		Common Stock (57,508 shares)				6,350		6,660

							17,871		20,736						17,906		18,256

Café Brazil, LLC		Casual Restaurant Group								Casual Restaurant Group
			Member Units (1,233 units)(8)				1,742		7,330		Member Units (1,233 units)(8)				1,742		6,040

CBT Nuggets, LLC		Produces and Sells IT Training Certification Videos								Produces and Sells IT Training Certification Videos
			Member Units (416 units)(8)				1,300		42,120		Member Units (416 units)(8)				1,300		55,480

CMS Minerals LLC		Oil & Gas Exploration & Production
Clad-Rex Steel, LLC										Specialty Manufacturer of Vinyl-Clad Metal
			Preferred Member Units (458 units)(8)				2,967		6,914		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
Datacom, LLC		Technology and Telecommunications Provider
			10.5% Secured Debt (Maturity—May 31, 2019)		11,205		11,122		10,970		Member Units (717 units)				7,280		7,280
			Class A Preferred Member Units (15% cumulative)(8)				1,181		1,181		10% Secured Debt (Clad-Rex Steel RE Investor, LLC) (Maturity—December 20, 2036)		1,202		1,190		1,190
			Class B Preferred Member Units (6,453 units)				6,030		5,079		Member Units (Clad-Rex Steel RE Investor, LLC) (800 units)				210		210

							18,333		17,230						23,017		23,017

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

December 31, ~~2015~~2016

(dollars in thousands)

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


CMS Minerals Investments						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)		3,829	3,381

									5,933	7,063

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

									19,762	14,846

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	23,846	23,846
							Member Units (8,619 units)		14,844	18,920

									38,690	42,766

Garreco, LLC	Manufacturer and Supplier of Dental Products					Manufacturer and Supplier of Dental Products
		14% Secured Debt (Maturity—January 12, 2018)	5,800	5,739	5,739		14% Secured Debt (Maturity—January 12, 2018)	5,250	5,219	5,219
		Member Units (1,200 units)		1,200	1,270		Member Units (1,200 units)		1,200	1,150

				6,939	7,009				6,419	6,369

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)	16,122	15,988	15,988		LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.00%, Secured Debt (Maturity—December 19, 2019)(9)	13,274	13,188	13,274
		Member Units (5,879 units)		13,065	15,580		Member Units (5,879 units)(8)		13,065	20,310

				29,053	31,568				26,253	33,584

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		9% PIK Secured Debt (Ashland Capital IX, LLC) (Maturity—June 30, 2017)	777	777	777
		Member Units (438 units)(8)		2,980	13,770		Member Units (438 units)(8)		2,980	8,770

				3,757	14,547				3,757	9,547

Harrison Hydra-Gen, Ltd.	Manufacturer of Hydraulic Generators
		9% Secured Debt (Maturity—January 8, 2016)	5,010	5,010	5,010
		Preferred Stock (8% cumulative)(8)		1,361	1,361
		Common Stock (107,456 shares)		718	2,600

				7,089	8,971

Hawthorne Customs and Dispatch Services, LLC	Facilitator of Import Logistics, Brokerage, and Warehousing
		Member Units (500 units)(8)		589	460
		Member Units (Wallisville Real Estate, LLC) (588,210 units)(8)		1,215	2,220

				1,804	2,680

HW Temps LLC	Temporary Staffing Solutions
		LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.50%, Secured Debt (Maturity July 2, 2020)(9)	9,976	9,884	9,884
		Preferred Member Units (3,200 units)(8)		3,942	3,942

				13,826	13,826

Hydratec, Inc.	Designer and Installer of Micro-Irrigation Systems
		Common Stock (7,095 shares)(8)		7,095	14,950

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

December 31, ~~2015~~2016

(dollars in thousands)

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


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

									13,035	13,035

Harrison Hydra-Gen, Ltd.						Manufacturer of Hydraulic Generators
							Common Stock (107,456 shares)(8)		718	3,120

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)	10,576	10,500	10,500
							Preferred Member Units (3,200 units)(8)		3,942	3,940

									14,442	14,440

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

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)	11,350	11,281	11,350		12.5% Secured Debt (Maturity—November 15, 2018)	10,950	10,904	10,950
		Member Units (5,400 units)		5,606	6,440		Member Units (5,400 units)(8)		5,606	7,040

				16,887	17,790				16,510	17,990

Indianapolis Aviation Partners, LLC	Fixed Base Operator					Fixed Base Operator
		15% Secured Debt (Maturity—January 15, 2016)	3,100	3,095	3,100		15% Secured Debt (Maturity—January 15, 2017)	3,100	3,100	3,100
		Warrants (1,046 equivalent units)		1,129	2,540		Warrants (1,046 equivalent units; Expiration—September 15, 2019; Strike price—$0.01 per unit)		1,129	2,649

				4,224	5,640				4,229	5,749

Jensen Jewelers of Idaho, LLC	Retail Jewelry Store					Retail Jewelry Store
		Prime Plus 6.75% (Floor 2.00%), Current Coupon 10.25%, Secured Debt (Maturity—November 14, 2016)(9)	4,055	4,028	4,055		Prime Plus 6.75% (Floor 2.00%), Current Coupon 10.25%, Secured Debt (Maturity—November 14, 2019)(9)	4,055	3,996	4,055
		Member Units (627 units)(8)		811	4,750		Member Units (627 units)(8)		811	4,460

				4,839	8,805				4,807	8,515

Lamb's Venture, LLC	Aftermarket Automotive Services Chain
		11% Secured Debt (Maturity—May 31, 2018)	7,962	7,961	7,962
		Preferred Equity (non-voting)		328	328
		Member Units (742 units)		5,273	4,690
		9.5% Secured Debt (Lamb's Real Estate Investment I, LLC) (Maturity—October 1, 2025)	919	919	919
		Member Units (Lamb's Real Estate Investment I, LLC) (1,000 units)(8)		625	1,240

				15,106	15,139

Lighting Unlimited, LLC	Commercial and Residential Lighting Products and Design Services
		8% Secured Debt (Maturity—August 22, 2016)	1,514	1,514	1,514
		Preferred Equity (non-voting)		434	430
		Warrants (71 equivalent units)		54	40
		Member Units (700 units)(8)		100	350

				2,102	2,334

Marine Shelters Holdings, LLC (LoneStar Marine Shelters)	Fabricator of Marine and Industrial Shelters
		12% PIK Secured Debt (Maturity—December 28, 2017)	9,053	8,967	8,870
		Preferred Member Units (3,810 units)		5,352	4,881

				14,319	13,751

MH Corbin Holding LLC	Manufacturer and distributor of traffic safety products
		10% Secured Debt (Maturity—August 31, 2020)	14,000	13,869	13,869
		Preferred Member Units (4,000 shares)		6,000	6,000

				19,869	19,869

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

December 31, ~~2015~~2016

(dollars in thousands)

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


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

										15,125	16,557

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
								Warrants (71 equivalent units; Expiration—June 14, 2021; Strike price—$0.01 per unit)		54	—
								Member Units (700 units)		100	—

										2,102	1,924

Marine Shelters Holdings, LLC							Fabricator of Marine and Industrial Shelters
								12% PIK Secured Debt (Maturity—December 28, 2017)(14)	9,967	9,914	9,387
								Preferred Member Units (3,810 units)		5,352	—

										15,266	9,387

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

										19,197	19,197

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—December 18, 2017)	1,750	1,750	1,750
		12% Secured Debt (Maturity—December 18, 2017)	3,900		3,900	3,900		12% Secured Debt (Maturity—December 18, 2017)	3,900	3,900	3,900
		Member Units (2,829 units)			1,244	2,580		Member Units (3,554 units)		1,810	2,480
		9.5% Secured Debt (Mid—Columbia Real Estate, LLC) (Maturity—May 13, 2025)	881		881	881		9.5% Secured Debt (Mid-Columbia Real Estate, LLC) (Maturity—May 13, 2025)	836	836	836
		Member Units (Mid—Columbia Real Estate, LLC) (250 units)(8)			250	550		Member Units (Mid-Columbia Real Estate, LLC) (250 units)(8)		250	600

					8,025	9,661				8,546	9,566

MSC Adviser I, LLC(16)	Third Party Investment Advisory Services
		Member Units (Fully diluted 100.0%)(8)			—	27,272

Mystic Logistics Holdings, LLC	Logistics and Distribution Services Provider for Large Volume Mailers
		12% Secured Debt (Maturity—August 15, 2019)	9,448		9,282	9,448
		Common Stock (5,873 shares)(8)			2,720	5,970

					12,002	15,418

NAPCO Precast, LLC	Precast Concrete Manufacturing
		Prime Plus 2.00% (Floor 7.00%), Current Coupon 9.00%, Secured Debt (Maturity—January 31, 2016)(9)	625		625	625
		Prime Plus 2.00% (Floor 7.00%), Current Coupon 9.00%, Secured Debt (Maturity—February 1, 2016)(9)	3,380		3,379	3,380
		18% Secured Debt (Maturity—February 1, 2016)	4,924		4,923	4,924
		Member Units (2,955 units)(8)			2,975	8,590

					11,902	17,519

NRI Clinical Research, LLC	Clinical Research Service Provider
		14% Secured Debt (Maturity—September 8, 2017)	4,617		4,539	4,539
		Warrants (251,723 equivalent units)			252	340
		Member Units (1,454,167 units)			765	1,342

					5,556	6,221

NRP Jones, LLC	Manufacturer of Hoses, Fittings and Assemblies			��
		12% Secured Debt (Maturity—December 22, 2016)	13,224		12,948	12,948
		Warrants (14,331 equivalent units)			817	450
		Member Units (50,877 units)			2,900	1,480

					16,665	14,878

OMi Holdings, Inc.	Manufacturer of Overhead Cranes
		Common Stock (1,500 shares)			1,080	13,640

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

December 31, ~~2015~~2016

(dollars in thousands)

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

Pegasus Research Group, LLC (Televerde)	Provider of Telemarketing and Data Services

MSC Adviser I, LLC(16)						Third Party Investment Advisory Services
		Member Units (460 units)(8)		1,290	6,840		Member Units (Fully diluted 100.0%)(8)		—	30,617

PPL RVs, Inc.	Recreational Vehicle Dealer
Mystic Logistics Holdings, LLC						Logistics and Distribution Services Provider for Large Volume Mailers
		11.1% Secured Debt (Maturity—July 1, 2016)	9,710	9,710	9,710		12% Secured Debt (Maturity—August 15, 2019)	9,176	9,053	9,176
		Common Stock (1,962 shares)		2,150	9,770		Common Stock (5,873 shares)		2,720	5,780

				11,860	19,480				11,773	14,956

Principle Environmental, LLC	Noise Abatement Service Provider
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	2,693	2,713
							18% Secured Debt (Maturity—February 1, 2019)	3,952	3,922	3,952
							Member Units (2,955 units)(8)		2,975	10,920

									9,590	17,585

NRI Clinical Research, LLC						Clinical Research Service Provider
		12% Secured Debt (Maturity—April 30, 2017)	4,060	4,039	4,060		LIBOR Plus 6.50% (Floor 1.50%), Current Coupon 8.00%, Secured Debt (Maturity—September 8, 2017)(9)	200	200	200
		12% Current / 2% PIK Secured Debt (Maturity—April 30, 2017)	3,310	3,309	3,310		14% Secured Debt (Maturity—September 8, 2017)	4,261	4,228	4,261
		Preferred Member Units (19,631 units)(8)		4,663	6,060		Warrants (251,723 equivalent units; Expiration—September 8, 2021; Strike price—$0.01 per unit)		252	680
		Warrants (1,036 equivalent units)		1,200	310		Member Units (1,454,167 units)		765	2,462

				13,211	13,740				5,445	7,603

Quality Lease Service, LLC	Provider of Rigsite Accommodation Unit Rentals and Related Services
		8% PIK Secured Debt (Maturity—June 8, 2020)	6,538	6,538	6,538
		Member Units (1,000 units)		568	2,638

				7,106	9,176

River Aggregates, LLC	Processor of Construction Aggregates
NRP Jones, LLC						Manufacturer of Hoses, Fittings and Assemblies
		Zero Coupon Secured Debt (Maturity—June 30, 2018)	750	556	556		6% Current / 6% PIK Secured Debt (Maturity—December 22, 2016)(17)	13,915	13,915	13,915
		Member Units (1,150 units)(8)		1,150	3,830		Warrants (14,331 equivalent units; Expiration—December 22, 2022; Strike price—$0.01 per unit)		817	130
		Member Units (RA Properties, LLC) (1,500 units)		369	2,360		Member Units (50,877 units)		2,900	410

				2,075	6,746				17,632	14,455

SoftTouch Medical Holdings LLC	Home Provider of Pediatric Durable Medical Equipment
OMi Holdings, Inc.						Manufacturer of Overhead Cranes
		LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.00%, Secured Debt (Maturity—October 31, 2019)(9)	8,075	8,010	8,010		Common Stock (1,500 shares)(8)		1,080	13,080
		Member Units (4,450 units)(8)		4,930	5,710

Pegasus Research Group, LLC						Provider of Telemarketing and Data Services
				12,940	13,720		Member Units (460 units)(8)		1,290	8,620

Southern RV, LLC	Recreational Vehicle Dealer
		13% Secured Debt (Maturity—August 8, 2018)	11,400	11,296	11,400
		Member Units (1,680 units)(8)		1,680	15,100
		13% Secured Debt (Southern RV Real Estate, LLC) (Maturity—August 8, 2018)	3,250	3,220	3,250
		Member Units (Southern RV Real Estate, LLC) (480 units)		480	1,200

				16,676	30,950

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

December 31, ~~2015~~2016

(dollars in thousands)

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


PPL RVs, Inc.								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
									Common Stock (1,962 shares)(8)		2,150	11,780

											19,976	29,606

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)	3,378	3,378	3,378
									Preferred Member Units (19,631 units)		4,663	5,370
									Warrants (1,036 equivalent units; Expiration—January 31, 2021; Strike price—$0.01 per unit)		1,200	270

											13,301	13,078

Quality Lease Service, LLC								Provider of Rigsite Accommodation Unit Rentals and Related Services
									8% PIK Secured Debt (Maturity—June 8, 2020)	7,068	7,068	7,068
									Member Units (1,000 units)		1,118	3,188

											8,186	10,256

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

											2,146	7,737

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

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		2,921		2,921		9% Secured Debt (Maturity—October 2, 2018)	2,924	2,922	2,922
		Series A Preferred Units (2,500 units; 10% Cumulative)			2,500		690		Series A Preferred Units (2,500 units; 10% Cumulative)		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% Fully diluted)(8)			2,300		2,230		Member Units (MPI Real Estate Holdings, LLC) (100 units)(8)		2,300	2,300

					8,817		5,841				8,818	5,222

Travis Acquisition LLC	Manufacturer of Aluminum Trailers
		12% Secured Debt (Maturity—August 30, 2018)	3,513		3,471		3,513
		Member Units (7,282 units)			7,100		14,480

					10,571		17,993

Uvalco Supply, LLC	Farm and Ranch Supply Store
		9% Secured Debt (Maturity—January 1, 2019)	1,314		1,314		1,314
		Member Units (2,011 units)(8)			3,843		5,460

					5,157		6,774

Vision Interests, Inc.	Manufacturer / Installer of Commercial Signage
		13% Secured Debt (Maturity—December 23, 2016)	3,071		3,052		3,052
		Series A Preferred Stock (3,000,000 shares)			3,000		3,550
		Common Stock (1,126,242 shares)			3,706		210

					9,758		6,812

Ziegler's NYPD, LLC	Casual Restaurant Group
		6.5% Secured Debt (Maturity—October 1, 2019)	1,000		992		992
		12% Secured Debt (Maturity—October 1, 2019)	500		500		500
		14% Secured Debt (Maturity—October 1, 2019)	2,750		2,750		2,750
		Warrants (587 equivalent units)			600		50
		Preferred Member Units (10,072 units)			2,834		3,400

					7,676		7,692


Subtotal Control Investments (30.8% of total investments at fair value)				$	387,727	$	555,011

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

December 31, ~~2015~~2016

(dollars in thousands)

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

AFG Capital Group, LLC

Provider of Rent-to-Own Financing Solutions and Services

11% Secured Debt (Maturity—November 7, 2019)
$ 12,960 $ 12,611 $ 12,790

Warrants (42 equivalent units)
259 490

Member Units (186 units)
1,200 2,020

14,070 15,300

Boss Industries, LLC

Manufacturer and Distributor of Air, Power and Other Industrial Equipment

Preferred Member Units (2,242 units)(8)
2,246 2,586

Bridge Capital Solutions Corporation

Financial Services and Cash Flow Solutions Provider

13% Secured Debt (Maturity—April 18, 2017)
7,000 6,890 6,890

Warrants (22 equivalent shares)
200 1,300

7,090 8,190

Buca C, LLC

Casual Restaurant Group

LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.25%, Secured Debt (Maturity—June 30, 2020)(9)
25,530 25,299 25,299

Preferred Member Units (6 units; 6% cumulative)(8)
3,711 3,711

29,010 29,010

CAI Software LLC

Provider of Specialized Enterprise Resource Planning Software

12% Secured Debt (Maturity—October 10, 2019)
4,661 4,624 4,661

Member Units (65,356 units)
654 1,000

5,278 5,661

Condit Exhibits, LLC

Tradeshow Exhibits / Custom Displays Provider

Member Units (3,936 units)(8)
100 1,010

Congruent Credit Opportunities Funds(12)(13)

Investment Partnership

LP Interests (Congruent Credit Opportunities Fund II, LP) (Fully diluted 19.8%)(8)
6,612 2,834

LP Interests (Congruent Credit Opportunities Fund III, LP) (Fully diluted 17.4%)(8)
12,020 12,024

18,632 14,858

Daseke, Inc.

Specialty Transportation Provider

12% Current / 2.5% PIK Secured Debt (Maturity—July 31, 2018)
21,253 21,003 21,253

Common Stock (19,467 shares)
5,213 22,660

26,216 43,913

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


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

					4,715		5,512

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

					9,520		5,814

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; Expiration—September 29, 2018; Strike price—$0.01 per unit)			600		240
		Preferred Member Units (10,072 units)			2,834		4,100

					7,478		8,384

Subtotal Control Investments (29.8% of total investments at fair value)				$	439,674	$	594,282

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)		Cost(4)		Fair Value


Affiliate Investments(6)

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

					1,459		3,420

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

					6,730		6,597

BBB Tank Services, LLC	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
		15% Current Secured Debt (Maturity—April 8, 2021)	4,027		3,991		3,991
		Member Units (800,000 units)			800		800

					5,588		5,588

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; Expiration—April 18, 2022; Strike price—$0.01 per share)			2,132		3,370
		13% Secured Debt (Mercury Service Group, LLC) (Maturity—July 25, 2021)	1,000		991		1,000
		Preferred Member Units (Mercury Service Group, LLC) (17,742 units)(8)			1,000		1,000

					9,733		10,980

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)


Buca C, LLC	Casual Restaurant Group
		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 (6 units; 6% cumulative)(8)		3,937	4,660

				26,441	27,331

CAI Software LLC	Provider of Specialized Enterprise Resource Planning Software
		12% Secured Debt (Maturity—October 10, 2019)	3,683	3,660	3,683
		Member Units (65,356 units)(8)		654	2,480

				4,314	6,163

CapFusion, LLC(13)	Non-Bank Lender to Small Businesses
		13% Secured Debt (Maturity—March 25, 2021)	14,400	13,202	13,202
		Warrants (1,600 equivalent units; Expiration—March 24, 2026; Strike price—$0.01 per unit)		1,200	1,200

				14,402	14,402

Chandler Signs Holdings, LLC(10)	Sign Manufacturer
		12% Secured Debt (Maturity—July 4, 2021)	4,500	4,461	4,500
		Class A Units (1,500,000 units)(8)		1,500	3,240

				5,961	7,740

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
		LP Interests (Congruent Credit Opportunities Fund II, LP) (Fully diluted 19.8%)(8)		5,730	1,518
		LP Interests (Congruent Credit Opportunities Fund III, LP) (Fully diluted 17.4%)(8)		15,754	16,181

				21,484	17,699

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

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)


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

East West Copolymer & Rubber, LLC	Manufacturer of Synthetic Rubbers
		12% Current / 2% PIK Secured Debt (Maturity—October 17, 2019)	9,699	9,591	8,630
		Warrants (2,510,790 equivalent units; Expiration—October 15, 2024; Strike price—$0.01 per unit)		50	—

				9,641	8,630

EIG Fund Investments(12)(13)	Investment Partnership
		LP Interests (EIG Global Private Debt fund-A, L.P.) (Fully diluted 11.1%)(8)		2,804	2,804

EIG Traverse Co-Investment, L.P.(12)(13)	Investment Partnership
		LP Interests (Fully diluted 22.2%)(8)		9,805	9,905

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

				10,737	10,383

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

				13,446	11,079

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)


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
		9% Current / 4% PIK Secured Debt (Maturity—August 13, 2019)	10,708	10,594	10,594
		Preferred Stock (404,998 shares)		1,140	1,140
		Common Stock (212,033 shares)		2,983	80

				14,717	11,814

Hawk Ridge Systems, LLC(13)	Value-Added Reseller of Engineering Design and Manufacturing Solutions
		10% Secured Debt (Maturity—December 2, 2021)	10,000	9,901	9,901
		Preferred Member Units (226 units)(8)		2,850	2,850
		Preferred Member Units (HRS Services, ULC) (226 units)		150	150

				12,901	12,901

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
		Preferred Member Units (33,819 units; 8% cumulative)(8)		2,339	2,677
		Warrants (31,928 equivalent units; Expiration—August 6, 2022; Strike price—$0.001 per unit)		459	—
		Member Units (14,732 units)		1	—

				7,878	7,756

KBK Industries, LLC	Manufacturer of Specialty Oilfield and Industrial Products
		10% Secured Debt (Maturity—September 28, 2017)	1,250	1,250	1,250
		12.5% Secured Debt (Maturity—September 28, 2017)	5,900	5,889	5,889
		Member Units (250 units)		341	2,780

				7,480	9,919

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)


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)	4,519	4,519	4,519
		Preferred Stock (912 shares; 7% cumulative)		1,981	—
		Warrants (5,333 equivalent shares; Expiration—April 18, 2021; Strike price—$0.01 per share)		1,919	—

				8,419	4,519

OPI International Ltd.(13)	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	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

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
		12% Secured Debt (Maturity—November 13, 2018)	13,511	13,385	13,385
		Class C Preferred Stock (Fully diluted 10.0%; 10% cumulative)(8)		2,738	2,738

				16,123	16,123

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)		Cost(4)		Fair Value


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		5,010		5,021
		LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity—January 13, 2019)(9)	824		824		824
		15% PIK Unsecured Debt (Maturity—July 13, 2019)	745		745		745
		Preferred Stock (4,935,377 shares; 13.5% cumulative)(8)			5,814		6,410
		Common Stock (705,054 shares)			—		3,010

					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

					4,717		1,330

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; Expiration—January 26, 2025; Strike price—$0.01 per unit)			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, 2016

(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

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

December 31, ~~2015~~2016

(dollars in thousands)

Portfolio Company(1)
Business Description Type of Investment(2)(3) Principal(4) Cost(4) Fair Value
Dos Rios Partners(12)(13)

Investment Partnership

LP Interests (Dos Rios Partners, LP) (Fully diluted 20.2%)
3,104 2,031

LP Interests (Dos Rios Partners—A, LP) (Fully diluted 6.4%)
986 648

4,090 2,679

East Teak Fine Hardwoods, Inc.

Distributor of Hardwood Products

Common Stock (6,250 shares)(8)
480 860

East West Copolymer & Rubber, LLC

Manufacturer of Synthetic Rubbers

12% Secured Debt (Maturity—October 17, 2019)
9,600 9,463 9,463

Warrants (2,510,790 equivalent units)
50 50

9,513 9,513

EIG Traverse Co-Investment, L.P.(12)(13)

Investment Partnership

LP Interests (Fully diluted 6.6%)(8)
4,755 4,755

Freeport Financial Funds(12)(13)

Investment Partnership

LP Interests (Freeport Financial SBIC Fund LP) (Fully diluted 9.9%)(8)
5,974 6,045

LP Interests (Freeport First Lien Loan Fund III LP) (Fully diluted 6.4%)
2,077 2,077

8,051 8,122

Gault Financial, LLC (RMB Capital, LLC)

Purchases and Manages Liquidation of Distressed Assets

10% Secured Debt (Maturity—November 21, 2016)
13,046 12,896 10,930

Warrants (29,025 equivalent units)
400 —

13,296 10,930

Glowpoint, Inc.

Provider of Cloud Managed Video Collaboration Services

8% Secured Debt (Maturity—October 18, 2018)
400 397 397

12% Secured Debt (Maturity—October 18, 2018)
9,000 8,929 8,929

Common Stock (7,711,517 shares)
3,958 3,840

13,284 13,166

Guerdon Modular Holdings, Inc.

Multi-Family and Commercial Modular Construction Company

13% Secured Debt (Maturity—August 13, 2019)
10,400 10,280 10,280

Common Stock (170,577 shares)
2,983 1,990

13,263 12,270

Houston Plating and Coatings, LLC

Provider of Plating and Industrial Coating Services

Member Units (248,082 units)(8)
996 8,440

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


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

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

December 31, ~~2015~~2016

(dollars in thousands)

Portfolio Company(1)
Business Description Type of Investment(2)(3) Principal(4) Cost(4) Fair Value
I-45 SLF LLC(12)(13)

Investment Partnership

Member units (Fully diluted 20.0%; 24.4% profits interest)
7,200 7,200

Indianhead Pipeline Services, LLC

Provider of Pipeline Support Services

12% Secured Debt (Maturity—February 6, 2017)
6,000 5,853 5,853

Preferred Member Units (33,819 units; 8% cumulative)
2,302 2,302

Warrants (31,928 equivalent units)
459 —

Member Units (14,732 units)
1 —

8,615 8,155

KBK Industries, LLC

Manufacturer of Specialty Oilfield and Industrial Products

12.5% Secured Debt (Maturity—September 28, 2017)
5,900 5,875 5,900

Member Units (250 units)(8)
341 3,680

6,216 9,580

L.F. Manufacturing Holdings, LLC(10)

Manufacturer of Fiberglass Products

Member Units (2,179,001 units)(8)
2,019 1,485

MPS Denver, LLC

Specialty Card Printing

Member Units (13,800 units)
1,130 1,130

OnAsset Intelligence, Inc.

Provider of Transportation Monitoring / Tracking Products and Services

12% PIK Secured Debt (Maturity—December 31, 2015)(17)
4,006 4,006 4,006

Preferred Stock (912 shares; 7% cumulative)(8)
1,981 1,380

Warrants (5,333 equivalent shares)
1,919 —

7,906 5,386

OPI International Ltd.(13)

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 3,200

1,844 3,673

PCI Holding Company, Inc.

Manufacturer of Industrial Gas Generating Systems

Preferred Stock (1,500,000 shares; 20% cumulative)(8)
2,762 4,887

Radial Drilling Services Inc.

Oil and Gas Lateral Drilling Technology Provider

12% Secured Debt (Maturity—November 22, 2016)(14)
4,200 3,941 1,500

Warrants (316 equivalent shares)
758 —

4,699 1,500

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


Berry Aviation, Inc.(10)	Airline Charter Service Operator
		12.00% Current / 1.75% PIK Secured Debt (Maturity—January 30, 2020)	5,627	5,588	5,627
		Common Stock (553 shares)		400	820

				5,988	6,447

Bluestem Brands, Inc.(11)	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

Brainworks Software, LLC(10)	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

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

				12,500	11,594

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

California Pizza Kitchen, Inc.(11)	Casual Restaurant Group
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—August 23, 2022)(9)	4,988	4,940	4,976

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

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

December 31, ~~2015~~2016

(dollars in thousands)

Portfolio Company(1)
Business Description Type of Investment(2)(3) Principal(4) Cost(4) Fair Value
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)(18)
30,785 30,281 250

Preferred Member Units (250 units)
2,500 —

32,781 250

Samba Holdings, Inc.

Provider of Intelligent Driver Record Monitoring Software and Services

12.5% Secured Debt (Maturity—November 17, 2016)
24,662 24,553 24,662

Common Stock (170,963 shares)
2,087 30,220

26,640 54,882

Tin Roof Acquisition Company

Casual Restaurant Group

12% Secured Debt (Maturity—November 13, 2018)
13,994 13,807 13,807

Class C Preferred Stock (Fully diluted 10.0%; 10% cumulative)(8)
2,477 2,477

16,284 16,284

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)
2,826 2,826 2,812

LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.50% / 1.00% PIK, Current Coupon Plus PIK 10.50%, Secured Debt (Maturity—January 13, 2019)(9)
1,261 1,261 1,255

15% PIK Unsecured Debt (Maturity—July 13, 2019)
641 641 638

Preferred Stock (4,935,377 shares)
4,935 5,540

Common Stock (705,054 shares)
— —

9,663 10,245

Universal Wellhead Services Holdings, LLC(10)

Provider of Wellhead Equipment, Designs, and Personnel to the Oil & Gas Industry

Class A Preferred Units (4,000,000 units; 4.5% cumulative)(8)
4,000 3,000

Volusion, LLC

Provider of Online Software-as-a-Service eCommerce Solutions

10.5% Secured Debt (Maturity—January 26, 2020)
17,500 16,199 16,199

Preferred Member Units (4,876,670 units)
14,000 14,000

Warrants (950,618 equivalent units)
1,400 1,400

31,599 31,599

Subtotal Affiliate Investments (19.4% of total investments at fair value)
$ 333,728 $ 350,519

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Consolidated Schedule Of Investments (Continued)~~

~~December 31, 2015~~

~~(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)

AccuMED, Corp.(10)

Medical Device Contract Manufacturer

LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—October 29, 2020)(9)
$ 9,750 $ 9,648 $ 9,648

Adams Publishing Group, LLC(10)

Local Newspaper Operator

LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 7.75%, Secured Debt (Maturity—November 3, 2020)(9)
9,506 9,329 9,328

Ahead, LLC(10)

IT Infrastructure Value Added Reseller

LIBOR Plus 6.50%, Current Coupon 6.76%, Secured Debt (Maturity—November 2, 2020)
15,000 14,562 14,625

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)
10,150 10,080 10,008

AM General LLC(11)

Specialty Vehicle Manufacturer

LIBOR Plus 9.00% (Floor 1.25%), Current Coupon 10.25%, Secured Debt (Maturity—March 22, 2018)(9)
2,256 2,221 1,867

AM3 Pinnacle Corporation(10)

Provider of Comprehensive Internet, TV and Voice Services for Multi- Dwelling Unit Properties

Common Stock (60,240 shares)
2,000 —

American Seafoods Group, LLC(11)

Catcher-Processor of Alaskan Pollock

LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.00%, Secured Debt (Maturity—August 19, 2021)(9)
9,975 9,963 9,892

AMF Bowling Centers, Inc.(11)

Bowling Alley Operator

LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.25%, Secured Debt (Maturity—September 18, 2021)(9)
7,907 7,802 7,835

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)
2,306 2,306 2,179

Member Units (440,620 units)
4,928 3,250

7,234 5,429

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


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

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

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

December 31, ~~2015~~2016

(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)
11,314 11,108 10,946

Apex Linen Service, Inc.

Industrial Launderers

LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—October 30, 2022)(9)
1,600 1,600 1,600

13% Secured Debt (Maturity—October 30, 2022)
12,000 11,926 11,926

13,526 13,526

Applied Products, Inc.(10)

Adhesives Distributor

LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—September 30, 2019)(9)
5,813 5,759 5,683

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)
9,540 9,429 9,429

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)
7,854 7,585 6,716

ATS Workholding, Inc.(10)

Manufacturer of Machine Cutting Tools and Accessories

LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity—March 10, 2019)(9)
6,492 6,452 6,230

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 14, 2021)(9)
14,925 14,647 14,701

Barfly Ventures, LLC(10)

Casual Restaurant Group

12% Secured Debt (Maturity—August 31, 2020)
4,121 4,042 4,042

Warrant (1 equivalent unit)
473 473

4,515 4,515

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


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

Darr Equipment LP(10)	Heavy Equipment Dealer
		12% Current / 2% PIK Secured Debt (Maturity—April 15, 2020)	21,130	20,697	20,748
		Warrants (915,734 equivalent units; Expiration—April 15, 2024; Strike price—$1.50 per unit)		474	10

				21,171	20,758

Digital River, Inc.(11)	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

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
		Common Stock (3,788,865 shares)		1,335	10,410

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

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

December 31, ~~2015~~2016

(dollars in thousands)

Portfolio Company(1)
Business Description Type of Investment(2)(3) Principal(4) Cost(4) Fair Value
Berry Aviation, Inc.(10)

Airline Charter Service Operator

12.00% Current / 1.75% PIK Secured Debt (Maturity—January 30, 2020)
5,627 5,578 5,578

Common Stock (553 shares)
400 400

5,978 5,978

Bioventus LLC(10)

Production of Orthopedic Healing Products

LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 11.00%, Secured Debt (Maturity—April 10, 2020)(9)
5,000 4,917 4,925

Blackbrush Oil and Gas LP(11)

Oil & Gas Exploration

LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—July 30, 2021)(9)
4,000 3,975 3,230

Blackhawk Specialty Tools LLC(11)

Oilfield Equipment & Services

LIBOR Plus 5.25% (Floor 1.25%), Current Coupon 6.50%, Secured Debt (Maturity—August 1, 2019)(9)
5,892 5,866 5,450

Blue Bird Body Company(11)

School Bus Manufacturer

LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 6.50%, Secured Debt (Maturity—June 26, 2020)(9)
4,702 4,646 4,669

Bluestem Brands, Inc.(11)(13)

Multi-Channel Retailer of General Merchandise

LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity—November 6, 2020)(9)
13,632 13,358 12,780

Brainworks Software, LLC(10)

Advertising Sales and Newspaper Circulation Software

Prime Plus 7.25% (Floor 3.25%), Current Coupon 10.75%, Secured Debt (Maturity—July 22, 2019)(9)
626 620 620

LIBOR Plus 8.25% (Floor 1.00%), Current Coupon 9.25%, Secured Debt (Maturity—July 22, 2019)(9)
6,185 6,126 6,012

6,746 6,632

Brightwood Capital Fund III, LP(12)(13)

Investment Partnership

LP Interests (Fully diluted 1.6%)(8)
11,250 11,125

Brundage-Bone Concrete Pumping, Inc.(11)

Construction Services Provider

10.375% Secured Debt (Maturity—September 1, 2021)
2,500 2,500 2,438

Calloway Laboratories, Inc.(10)

Health Care Testing Facilities

17% PIK Secured Debt (Maturity—September 30, 2016)(14)
7,324 7,275 —

Warrants (125,000 equivalent shares)
17 —

7,292 —

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


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

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

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

December 31, ~~2015~~2016

(dollars in thousands)

Portfolio Company(1)
Business Description Type of Investment(2)(3) Principal(4) Cost(4) Fair Value
Cengage Learning Acquisitions, Inc.(11)

Provider of Educational Print and Digital Services

LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—March 31, 2020)(9)
9,720 9,672 9,502

Cenveo Corporation(11)

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

6% Secured Debt (Maturity—August 1, 2019)
5,230 4,544 3,687

CGSC of Delaware Holdings Corp.(11)(13)

Insurance Brokerage Firm

LIBOR Plus 7.00% (Floor 1.25%), Current Coupon 8.25%, Secured Debt (Maturity—October 16, 2020)(9)
2,000 1,979 1,900

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 14,065 10,031

Clarius ASIG, LLC(10)

Prints & Advertising Film Financing

15% PIK Secured Debt (Maturity—September 14, 2014)(17)
620 620 620

Clarius BIGS, LLC(10)

Prints & Advertising Film Financing

15% PIK Secured Debt (Maturity—January 5, 2015)(14)(17)
3,386 3,386 563

Compact Power Equipment, Inc.

Equipment / Tool Rental

12% Secured Debt (Maturity—October 1, 2017)
4,100 4,090 4,100

Series A Preferred Stock (4,298,435 shares)
1,079 2,930

5,169 7,030

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)
14,751 14,395 13,998

Covenant Surgical Partners, Inc.(11)

Ambulatory Surgical Centers

8.75% Secured Debt (Maturity—August 1, 2019)
800 800 780

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)
10,168 10,009 10,118

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


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

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; Expiration—February 24, 2023; Strike price—$0.01 per share)		369	1,530

				7,750	9,145

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

December 31, ~~2015~~2016

(dollars in thousands)

Portfolio Company(1)
Business Description Type of Investment(2)(3) Principal(4) Cost(4) Fair Value
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)
8,227 8,197 8,145

Darr Equipment LP(10)

Heavy Equipment Dealer

11.75% Current / 2% PIK Secured Debt (Maturity—April 15, 2020)
20,706 20,178 19,688

Warrants (915,734 equivalent units)
474 410

20,652 20,098

Digital River, Inc.(11)

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)
8,667 8,588 8,580

Digity Media LLC(11)

Radio Station Operator

LIBOR Plus 4.75% (Floor 1.25%), Current Coupon 6.00%, Secured Debt (Maturity—February 8, 2019)(9)
6,588 6,539 6,506

Drilling Info Holdings, Inc.

Information Services for the Oil and Gas Industry

Common Stock (3,788,865 shares)
1,335 9,920

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 5,579 5,492

EIG Fund Investments(12)(13)

Investment Partnership

LP Interests (EIG Global Private Debt fund-A, L.P.) (Fully diluted 0.5%)
718 718

EnCap Energy Fund Investments(12)(13)

Investment Partnership

LP Interests (EnCap Energy Capital Fund VIII, L.P.) (Fully diluted 0.1%)(8)
3,762 2,765

LP Interests (EnCap Energy Capital Fund VIII Co- Investors, L.P.) (Fully diluted 0.4%)
2,194 1,056

LP Interests (EnCap Energy Capital Fund IX, L.P.) (Fully diluted 0.1%)(8)
3,075 3,826

LP Interests (Encap Energy Capital Fund X, L.P.) (Fully diluted 0.1%)
692 692

LP Interests (EnCap Flatrock Midstream Fund II, L.P.) (Fully diluted 0.8%)(8)
7,350 10,738

LP Interests (EnCap Flatrock Midstream Fund III, L.P.) (Fully diluted 0.2%)
464 892

17,537 19,969

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


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

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

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

December 31, ~~2015~~2016

(dollars in thousands)

Portfolio Company(1)
Business Description Type of Investment(2)(3) Principal(4) Cost(4) Fair Value
Energy and Exploration Partners, LLC(11)

Oil & Gas Exploration & Production

8.75% Secured Debt (Maturity—January 23, 2016)(14)
221 221 221

LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 7.75%, Secured Debt (Maturity—January 22, 2019)(9)(14)
9,390 9,048 2,371

9,269 2,592

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 6,838 4,673

Extreme Reach, Inc.(11)

Integrated TV and Video Advertising Platform

LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 6.75%, Secured Debt (Maturity—February 7, 2020)(9)
8,875 8,866 8,731

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)
11,333 11,004 10,086

Fram Group Holdings, Inc.(11)

Manufacturer of Automotive Maintenance Products

LIBOR Plus 5.50% (Floor 1.50%), Current Coupon 7.00%, Secured Debt (Maturity—July 29, 2017)(9)
9,652 9,547 7,275

LIBOR Plus 9.50% (Floor 1.50%), Current Coupon 11.00%, Secured Debt (Maturity—January 29, 2018)(9)
700 699 350

10,246 7,625

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)
3,960 3,901 3,742

LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity—April 29, 2022)(9)
800 786 792

4,687 4,534

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


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

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

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

December 31, ~~2015~~2016

(dollars in thousands)

Portfolio Company(1)
Business Description Type of Investment(2)(3) Principal(4) Cost(4) Fair Value
Grace Hill, LLC(10)

Online Training Tools for the Multi-Family Housing Industry

LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.25%, Secured Debt (Maturity—August 15, 2019)(9)
9,450 9,361 9,450

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)
7,849 7,783 7,783

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)
4,863 4,816 4,668

13.75% Secured Debt (Maturity—July 31, 2018)
2,000 1,942 1,860

6,758 6,528

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)
9,875 9,797 9,529

Guitar Center, Inc.(11)

Musical Instruments Retailer

6.5% Secured Debt (Maturity—April 15, 2019)
11,000 10,442 9,240

Halcon Resources Corporation(11)

Oil & Gas Exploration & Production

9.75% Unsecured Debt (Maturity—July 15, 2020)
6,925 6,382 2,008

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)
5,344 5,294 5,294

Horizon Global Corporation(11)

Auto Parts Manufacturer

LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—June 30, 2021)(9)
9,750 9,568 9,677

Hostway Corporation(11)

Managed Services and Hosting Provider

LIBOR Plus 4.75% (Floor 1.25%), Current Coupon 6.00%, Secured Debt (Maturity—December 13, 2019)(9)
11,179 11,105 11,067

Hunter Defense Technologies, Inc.(11)

Provider of Military and Commercial Shelters and Systems

LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 6.50%, Secured Debt (Maturity—August 5, 2019)(9)
6,414 6,366 6,350

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


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

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 shares; Expiration—May 20, 2025; Strike price—$0.01 per share)		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

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

December 31, ~~2015~~2016

(dollars in thousands)

Portfolio Company(1)
Business Description Type of Investment(2)(3) Principal(4) Cost(4) Fair Value
ICON Health & Fitness, Inc.(11)

Producer of Fitness Products

11.875% Secured Debt (Maturity—October 15, 2016)
6,956 6,907 6,608

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)
8,110 8,030 7,502

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)
7,125 6,759 6,697

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)
5,000 5,000 5,000

Infinity Acquisition Finance Corp.(11)

Application Software for Capital Markets

7.25% Unsecured Debt (Maturity—August 1, 2022)
4,000 4,000 3,440

Inn of the Mountain Gods Resort and Casino(11)

Hotel & Casino Owner & Operator

9.25% Secured Debt (Maturity—November 30, 2020)
3,851 3,708 3,562

Insurance Technologies, LLC(10)

Illustration and Sales-automation Platforms

LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.00%, Secured Debt (Maturity—December 1, 2019)(9)
4,804 4,759 4,759

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)
9,938 9,782 9,883

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)
15,026 14,986 14,446

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)
9,887 9,718 7,942

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


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

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

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

December 31, ~~2015~~2016

(dollars in thousands)

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

Provider of Damage Prevention Information Technology Services

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

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)
4,357 4,337 4,188

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)
14,805 14,711 14,703

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)
14,566 14,230 13,765

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)
5,875 5,821 5,831

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)
6,303 6,268 6,271

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)
4,729 4,699 4,699

Lansing Trade Group LLC(11)

Commodity Merchandiser

9.25% Unsecured Debt (Maturity—February 15, 2019)
6,000 6,000 5,625

Larchmont Resources, LLC(11)

Oil & Gas Exploration & Production

LIBOR Plus 8.75% (Floor 1.00%), Current Coupon 9.75%, Secured Debt (Maturity—August 7, 2019)(9)
7,807 7,508 5,543

Leadrock Properties, LLC

Real Estate Investment

10% Secured Debt (Maturity—May 4, 2026)
1,440 1,416 1,416

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


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

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; Expiration—July 7, 2020; Strike price—$0.75 per share)		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

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

December 31, ~~2015~~2016

(dollars in thousands)

Portfolio Company(1)
Business Description Type of Investment(2)(3) Principal(4) Cost(4) Fair Value
Legendary Pictures Funding, LLC(10)

Producer of TV, Film, and Comic Content

LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—April 22, 2020)(9)
7,500 7,372 7,425

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

Investment Partnership

LP Interests (Fully diluted 2.3%)
2,500 4,875

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)
188 188

501 501

MediMedia USA, Inc.(11)

Provider of Healthcare Media and Marketing

LIBOR Plus 6.75% (Floor 1.25%), Current Coupon 8.00%, Secured Debt (Maturity—November 20, 2018)(9)
7,772 7,714 7,422

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)
15,583 15,483 15,583

Milk Specialties Company(11)

Processor of Nutrition Products

LIBOR Plus 7.00% (Floor 1.25%), Current Coupon 8.25%, Secured Debt (Maturity—November 9, 2018)(9)
792 789 792

Minute Key, Inc.

Operator of Automated Key Duplication Kiosks

10% Current / 2% PIK Secured Debt (Maturity—September 19, 2019)
14,186 13,817 13,817

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

14,097 14,097

Miramax Film NY, LLC(11)

Motion Picture Producer and Distributor

Member Units (500,000 units)(8)
864 864

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)
14,957 14,827 14,266

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)
9,788 9,635 9,703

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


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

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

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

December 31, ~~2015~~2016

(dollars in thousands)

Portfolio Company(1)
Business Description Type of Investment(2)(3) Principal(4) Cost(4) Fair Value
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)
997 835 733

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)
9,676 9,607 9,603

Novitex Intermediate, LLC(11)

Provider of Document Management Services

LIBOR Plus 6.25% (Floor 1.25%), Current Coupon 7.50%, Secured Debt (Maturity—July 7, 2020)(9)
8,692 8,532 8,192

Ospemifene Royalty Sub LLC (QuatRx)(10)

Estrogen-Deficiency Drug Manufacturer and Distributor

11.5% Secured Debt (Maturity—November 15, 2026)
5,071 5,071 3,780

Panolam Industries International, Inc.(11)

Decorative Laminate Manufacturer

LIBOR Plus 6.00% (Floor 1.25%), Current Coupon 7.25%, Secured Debt (Maturity—August 23, 2017)(9)
9,472 9,429 9,424

Paris Presents Incorporated(11)

Branded Cosmetic and Bath Accessories

LIBOR Plus 8.25% (Floor 1.00%), Current Coupon 9.25%, Secured Debt (Maturity—December 31, 2021)(9)
2,000 1,965 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 7,369 7,200

Permian Holdings, Inc.(11)

Storage Tank Manufacturer

10.5% Secured Debt (Maturity—January 15, 2018)
2,755 2,738 1,047

Pernix Therapeutics Holdings, Inc.(10)

Pharmaceutical Royalty

12% Secured Debt (Maturity—August 1, 2020)
3,818 3,818 3,777

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


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	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

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

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

December 31, ~~2015~~2016

(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)
15,000 14,663 14,712

Point.360(10)

Fully Integrated Provider of Digital Media Services

Warrants (65,463 equivalent shares)
69 9

Common Stock (163,658 shares)
273 144

342 153

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)
4,411 3,734 3,749

PT Network, LLC(10)

Provider of Outpatient Physical Therapy and Sports Medicine Services

LIBOR Plus 7.75% (Floor 1.50%), Current Coupon 9.25%, Secured Debt (Maturity—November 1, 2018)(9)
12,047 11,954 11,771

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)
11,389 11,303 11,332

Raley's(11)

Family-owned supermarket chain in California

LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.25%, Secured Debt (Maturity—May 18, 2022)(9)
5,094 4,999 5,069

RCHP, Inc.(11)

Regional Non-Urban Hospital Owner/Operator

LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.00%, Secured Debt (Maturity—April 23, 2019)(9)
5,448 5,426 5,448

LIBOR Plus 10.25% (Floor 1.00%), Current Coupon 11.25%, Secured Debt (Maturity—October 23, 2019)(9)
4,000 3,954 3,953

9,380 9,401

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 2,975 2,835

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


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

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

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

December 31, ~~2015~~2016

(dollars in thousands)

Portfolio Company(1)
Business Description Type of Investment(2)(3) Principal(4) Cost(4) Fair Value
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)
3,950 3,851 1,534

RLJ Entertainment, Inc.(10)

Movie and TV Programming Licensee and Distributor

LIBOR Plus 8.75% (Floor 0.25%), Current Coupon 9.16%, Secured Debt (Maturity—September 11, 2019)(9)
9,354 9,353 9,203

RM Bidder, LLC(10)

Scripted and Unscripted TV and Digital Programming Provider

Warrants (327,532 equivalent units)
425 363

Member Units (2,779 units)
46 45

471 408

SAExploration, Inc.(10)(13)

Geophysical Services Provider

Common Stock (6,472 shares)
65 27

Sage Automotive Interiors, Inc(11)

Automotive Textiles Manufacturer

LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.00%, Secured Debt (Maturity—October 8, 2021)(9)
3,000 2,974 2,970

Salient Partners L.P.(11)

Provider of Asset Management Services

LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—June 9, 2021)(9)
7,388 7,251 7,240

Sotera Defense Solutions, Inc.(11)

Defense Industry Intelligence Services

LIBOR Plus 7.50% (Floor 1.50%), Current Coupon 9.00%, Secured Debt (Maturity—April 21, 2017)(9)
10,119 9,886 9,360

Stardust Finance Holdings, Inc.(11)

Manufacturer of Diversified Building Products

LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 6.50%, Secured Debt (Maturity—March 13, 2022)(9)
12,406 12,239 12,065

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)
4,887 4,836 4,762

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


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; Expiration—February 2, 2026; Strike price—$10.27 per unit)		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

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

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

December 31, ~~2015~~2016

(dollars in thousands)

Portfolio Company(1)
Business Description Type of Investment(2)(3) Principal(4) Cost(4) Fair Value
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 4,647 4,124

Targus Group International(11)

Distributor of Protective Cases for Mobile Devices

LIBOR Plus 9.50% (Floor 1.50%), Current Coupon 11.00% / 1.00% PIK, Current Coupon Plus PIK 12.00%, Secured Debt (Maturity—May 24, 2016)(9)(14)
4,258 4,263 3,119

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)
7,975 7,961 7,935

LIBOR Plus 7.50% (Floor 1.25%), Current Coupon 8.75%, Secured Debt (Maturity—June 10, 2019)(9)
2,500 2,484 2,487

10,445 10,422

Templar Energy LLC(11)

Oil & Gas Exploration & Production

LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity—November 25, 2020)(9)
4,000 3,962 485

The Tennis Channel, Inc.(10)

Television-Based Sports Broadcasting

Warrants (114,316 equivalent shares)
235 301

The Topps Company, Inc.(11)

Trading Cards & Confectionary

LIBOR Plus 6.00% (Floor 1.25%), Current Coupon 7.25%, Secured Debt (Maturity—October 2, 2018)(9)
1,960 1,948 1,923

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)
4,963 4,545 3,387

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)
8,700 8,638 8,613

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


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; Expiration—December 27, 2023; Strike price—$0.001 per unit)		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

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule Ofof Investments (Continued)

December 31, ~~2015~~2016

(dollars in thousands)

Portfolio Company(1)
Business Description Type of Investment(2)(3) Principal(4) Cost(4) Fair Value
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)
7,369 7,341 7,295

Valley Healthcare Group, LLC

Provider of Durable Medical Equipment

LIBOR Plus 12.50% (Floor 0.50%), Current Coupon 13.00%, Secured Debt (Maturity—December 29, 2020)(9)
10,400 10,297 10,297

Vantage Oncology, LLC(11)

Outpatient Radiation Oncology Treatment Centers

9.5% Secured Debt (Maturity—June 15, 2017)
12,050 11,938 10,182

Virtex Enterprises, LP(10)

Specialty, Full-Service Provider of Complex Electronic Manufacturing Services

12% Secured Debt (Maturity—December 27, 2018)
1,667 1,516 1,516

Preferred Class A Units (14 units; 5% cumulative)(8)
333 512

Warrants (11 equivalent units)
186 135

2,035 2,163

Vision Solutions, Inc.(11)

Provider of Information Availability Software

LIBOR Plus 8.00% (Floor 1.50%), Current Coupon 9.50%, Secured Debt (Maturity—July 23, 2017)(9)
5,000 4,987 4,750

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 4,901 4,303

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)
1,540 1,524 1,475

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)
6,435 6,381 6,210

YP Holdings LLC(11)

Online and Offline Advertising Operator

LIBOR Plus 6.75% (Floor 1.25%), Current Coupon 8.00%, Secured Debt (Maturity—June 4, 2018)(9)
2,455 2,435 2,382

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Consolidated Schedule Of Investments (Continued)~~

~~December 31, 2015~~

~~(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 (49.6% of total investments at fair value)
$ 945,187 $ 894,466

Total Portfolio Investments, December 31, 2015
$ 1,666,642 $ 1,799,996

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Consolidated Schedule Of Investments (Continued)~~

~~December 31, 2015~~

~~(dollars in thousands)~~

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

Marketable Securities and Idle Funds Investments

PennantPark Investment Corporation(13)(15)	Business Development Company
Zilliant Incorporated								Price Optimization and Margin Management Solutions
		Common Stock (343,149 shares)(8)	$	3,629	$	2,121			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
Other Marketable Securities and Idle Funds Investments(13)(15)	Investments in Marketable Securities and Diversified, Registered Bond Funds

				1,778		1,572					1,225		1,450

Subtotal Marketable Securities and Idle Funds Investments (0.2% of total investments at fair value)			$	5,407	$	3,693
Subtotal Non-Control/Non-Affiliate Investments (51.4% of total investments at fair value)							Subtotal Non-Control/Non-Affiliate Investments (51.4% of total investments at fair value)			$	1,037,510	$	1,026,676

Total Investments, December 31, 2015			$	1,672,049	$	1,803,689
Total Portfolio Investments, December 31, 2016							Total Portfolio Investments, December 31, 2016			$	1,871,883	$	1,996,906

(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, ~~2015.~~2016. As noted in this schedule, ~~59%~~64% (based on the par amount of the loans) of the loans contain LIBOR floors which range between ~~0.25%~~0.50% and ~~1.50%~~2.25%, with a weighted-average LIBOR floor of approximately 1.04%.
(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.
(15): ~~Marketable securities and idle fund investments.~~
~~(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)~~: 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.

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 ~~diverse~~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 ~~receives~~receive 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 ~~("RIA")~~ under the Investment Advisers Act of 1940, as ~~amended (the "Advisers Act").~~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)

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.

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 Company ("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 ~~but excludes all "Marketable securities and idle funds investments"~~ (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). "Marketable securities and idle funds investments" are classified as financial instruments and are reported separately on Main Street's consolidated balance sheets and consolidated schedules of investments due to the nature of such investments (see Note B.11.). Main Street's results of operations for the three and ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 and ~~2015,~~2016, cash flows for the ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 and ~~2015,~~2016, and financial position as of ~~September~~June 30, ~~2016~~2017 and December 31, ~~2015,~~2016, are presented on a consolidated basis. The effects of all intercompany transactions between Main Street and its consolidated subsidiaries have been eliminated in consolidation.

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 and ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 and ~~2015~~2016 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, ~~2015.~~2016. 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 ~~Accounting Standards Codification ("Codification" or "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. ~~MSCC's consolidated financial statements also include the financial position and operating results for MSCC's wholly owned operating subsidiary, Main Street Capital Partners, LLC ("MSCP"),~~

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Notes to Consolidated Financial Statements (Continued)~~

~~(Unaudited)~~

~~as MSCP provides all of its services directly or indirectly to Main Street or its portfolio companies.~~ Main Street has determined that all of its portfolio investments do not qualify for this exception, including the investment in the External Investment 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

Table of Contents

MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements (Continued)

(Unaudited)

(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)."

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 ~~the 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 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 ~~private,~~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 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

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Notes to Consolidated Financial Statements (Continued)~~

~~(Unaudited)~~

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.

Table of Contents

MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements (Continued)

(Unaudited)

For LMM portfolio investments, Main Street generally reviews external events, including private mergers, sales and acquisitions involving comparable companies, and includes these events in the valuation process by using an enterprise value waterfall methodology ("Waterfall") for its LMM equity investments and an income approach using a yield-to-maturity model ("Yield-to-Maturity") 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 companies are bought and sold based on multiples of earnings before interest, taxes, depreciation and amortization ("EBITDA"), cash flows, net income, revenues, or in limited cases, book value. There is no single methodology for estimating enterprise value. For any one portfolio company, enterprise value is generally described as a range of values from which a single estimate of enterprise value is derived. In estimating the enterprise value of a portfolio company, Main Street analyzes various factors including the portfolio company's historical and projected financial results. Due to SEC deadlines for Main Street's quarterly and annual financial reporting, the operating results of a portfolio company used in the current period valuation are generally the results from the period ended three months prior

~~Table of Contents~~

~~MAIN STREET CAPITAL CORPORATION~~

~~Notes to Consolidated Financial Statements (Continued)~~

~~(Unaudited)~~

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

Table of Contents

MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements (Continued)

(Unaudited)

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 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 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

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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

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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 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 4627 LMM portfolio companies for the ~~nine~~six months ended ~~September~~June 30, ~~2016,~~2017, representing approximately ~~75%~~39% of the total LMM portfolio at fair value as of ~~September~~June 30, ~~2016,~~2017, and on a total of 4429 LMM portfolio companies for the ~~nine~~six months ended ~~September~~June 30, ~~2015,~~2016, representing approximately ~~75%~~43% of the total LMM portfolio at fair value as of ~~September~~June 30, ~~2015.~~2016. 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 as of ~~September~~June 30, ~~2016~~2017 and ~~2015,~~2016, as applicable, and its investments in the LMM portfolio companies that were not reviewed because their equity is publicly traded 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 ~~the~~its independent financial advisory services firm for the ~~nine~~six months ended ~~September~~June 30, 2017 and 2016 was 45% and ~~2015 was 80% and 82%~~48% of the total LMM portfolio at fair value as of ~~September~~June 30, ~~2016~~2017 and ~~2015,~~2016, 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 ~~almost all~~the vast majority of the Middle Market portfolio investments are typically valued using ~~third party~~third-party quotes or other independent pricing services (including ~~97%~~96% and ~~99%~~94% of the Middle Market portfolio investments as of ~~September~~June 30, ~~2016~~2017 and December 31, ~~2015,~~2016, respectively), Main Street does not generally consult with any financial advisory services firms in connection with determining the fair value of its Middle Market investments.

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

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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

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is generally consulted relative to Main Street's investments in each Private Loan portfolio company at least once every calendar year, and for Main Street's investments in new Private Loan portfolio companies, at least once in the twelve-month period subsequent to the initial investment. In certain instances, Main Street may determine that it is not cost-effective, and as a result is not in its stockholders' best interest, to consult with the 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 2013 Private Loan portfolio companies for the ~~nine~~six months ended ~~September~~June 30, ~~2016,~~2017, representing approximately ~~56%~~39% of the total Private Loan portfolio at fair value as of ~~September~~June 30, ~~2016,~~2017, and on a total of 1114 Private Loan portfolio companies for the ~~nine~~six months ended ~~September~~June 30, ~~2015,~~2016, representing approximately ~~37%~~48% of the total Private Loan portfolio at fair value as of ~~September~~June 30, ~~2015.~~2016. 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 ~~September~~June 30, 2017 and 2016, as applicable, and ~~its~~ investments in ~~the~~its Private Loan portfolio companies that were not reviewed because the investment is ~~publicly traded~~valued based upon third-party quotes or ~~quoted by banks,~~other independent pricing, the percentage of the Private Loan portfolio reviewed and certified by its independent financial advisory services firm for the ~~nine~~six months ended ~~September~~June 30, 2017 and 2016 was 59% and ~~2015 was 80% and 84%~~65% of the total Private Loan portfolio at fair value as of ~~September~~June 30, ~~2016~~2017 and ~~2015,~~2016, respectively.

For valuation purposes, all of Main Street's Other Portfolio investments are non-control investments. Main Street's Other Portfolio investments comprised ~~4.9% and 4.2%, respectively,~~5.0% of Main Street's Investment Portfolio at fair value as of ~~September~~both June 30, ~~2016~~2017 and December 31, ~~2015.~~2016. 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 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 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~~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

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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 ~~September~~June 30, ~~2016~~2017 and December 31, ~~2015~~2016 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 ~~accounting principles generally accepted in the United States of America~~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, 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 ~~September~~June 30, ~~2016,~~2017, cash balances totaling ~~$29.0~~$18.1 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.

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4. ~~Marketable Securities and Idle Funds Investments~~

Marketable securities and idle funds investments include intermediate-term secured debt investments, independently rated debt investments and publicly traded debt and equity investments. See the consolidated schedule of investments for more information on Marketable securities and idle funds investments.

5. Interest, Dividend and Fee Income ~~(Structuring and Advisory Services)~~

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 ~~fully impaired,~~ sold or written off, Main Street removes it from non-accrual status.

As of June 30, 2017, Main Street's total Investment Portfolio had five investments on non-accrual status, which comprised approximately 0.2% of its fair value and 2.6% 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% 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.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 arrears are no longer collectible. For the three months ended ~~September~~June 30, ~~2016~~2017 and ~~2015,~~2016, (i) approximately ~~4.0%~~3.0% and ~~2.2%~~4.1%, respectively, of Main Street's total investment income was attributable to PIK interest income not paid currently in cash and (ii) approximately 1.8% and ~~1.2%~~0.7%, respectively, of Main Street's total investment income was attributable to cumulative dividend income not paid currently in cash. For the ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 and ~~2015,~~2016, (i) approximately ~~3.7%~~3.2% and ~~2.1%~~3.6%, respectively, of Main Street's total investment income was attributable to PIK interest income not paid currently in cash and (ii) approximately ~~1.1%~~1.8% and ~~1.0%~~0.8%, respectively, of Main Street's total investment income was attributable to cumulative dividend income not paid currently in cash.

As of September 30, 2016, Main Street's total Investment Portfolio had five investments on non-accrual status, which comprised approximately 0.4% of its fair value and 2.8% of its cost. As of December 31, 2015, Main Street's total Investment Portfolio had six investments on non-accrual status, which comprised approximately 0.4% of its fair value and 3.7% of its cost.

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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 September 30,				Nine Months Ended September 30,				Three Months Ended June 30,				Six Months Ended June 30,

	2016		2015		2016		2015		2017		2016		2017		2016
	(dollars in thousands)								(dollars in thousands)
Interest, fee and dividend income:
Interest income	$	35,580	$	34,167	$	101,181	$	97,010	$	39,065	$	33,419	$	77,528	$	65,601
Dividend income		9,730		6,939		25,094		17,353		8,128		7,735		15,110		15,364
Fee income		1,284		1,273		5,059		5,887		3,078		1,711		5,522		3,776

Total interest, fee and dividend income	$	46,594	$	42,379	$	131,334	$	120,250	$	50,271	$	42,865	$	98,160	$	84,741

6.5. Deferred Financing Costs

Deferred financing costs include ~~SBIC debenture~~ commitment fees and ~~SBIC debenture~~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), as well as the commitment fees and leverage fees (approximately 3.4% of the 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.). These fees are approximately 3.4% of the total commitment and drawn 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~~in connection with our 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 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 and are ~~amortized into interest expense over~~charged against the ~~term of~~proceeds from equity offerings when the ~~individual instrument.~~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 ~~interest~~ income based on the effective interest method over the life of the financing.

In connection with its portfolio debt investments, Main Street sometimes receives nominal cost warrants or warrants with an exercise price below the fair value of the underlying equity (together, "nominal cost equity") that are valued as part of the negotiation process with the particular portfolio company. When Main Street receives nominal cost equity, 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

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unearned income, which is netted against the applicable debt investment, and accreted into interest 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.

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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.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 ~~September~~June 30, 2017 and 2016, approximately 3.6% and ~~2015, approximately 3.2% and 2.3%~~3.0%, respectively, of Main Street's total investment income was attributable to interest income ~~for~~from the accretion of discounts associated with debt investments, net of any premium reduction. For the ~~nine~~six months ended ~~September~~June 30, 2017 and 2016, approximately 3.6% and ~~2015, approximately 3.0% and 2.7%~~2.8%, respectively, of Main Street's total investment income was attributable to interest income ~~for~~from the accretion of discounts associated with debt investments, net of any premium reduction.

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 ~~ASU~~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.13.). 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 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~~Main Street 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.

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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~~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~~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 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" 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 income tax expense, or benefit, if any, and the related tax assets and liabilities, are reflected in Main Street's consolidated financial statements.

MSCP is included in Main Street's consolidated financial statements for financial reporting purposes. For tax purposes, MSCP has elected to be treated as a taxable entity, and therefore is not consolidated with MSCC for income tax purposes and 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 taxable income, or loss, of MSCP may differ from its book income, or loss, due to temporary book and tax timing differences and permanent differences. This income tax expense, or benefit, if any, and the related tax assets and liabilities, are reflected in Main Street's consolidated financial statements.

The Taxable Subsidiaries ~~and MSCP~~ 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.

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.

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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

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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.

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~~short-term nature of these instruments. Marketable securities and idle funds investments may include investments in certificates of deposit, U.S. government agency securities, independently rated debt investments, diversified bond funds and publicly traded debt and equity investments, and the fair value determination for these investments under the provisions of ASC 820 generally consists of Level 1 and 2 observable inputs, similar in nature to those discussed further in Note C.

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 ~~(the "Acquired Debentures")~~ 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.

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.

13. 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 ~~2014-9~~2014-09 supersedes the revenue recognition requirements under ASC ~~Topic~~

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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

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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. This ASU~~Expedients, which clarified guidance on assessing collectability, presenting sales tax, measuring noncash consideration, and certain transition matters. ~~The~~In December 2016, the FASB ~~tentatively decided to defer~~issued ASU No. 2016-20,Revenue from Contracts with Customers (Topic 606)—Technical Corrections and Improvements, which provided disclosure relief, and clarified the ~~effective date~~scope and application of the new revenue standard ~~for public entities under U.S. GAAP for one year. If finalized, the~~and related cost guidance. The new guidance will be 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. Main Street ~~is currently evaluating~~expects to identify similar performance obligations under ASC 606 as compared with deliverables and separate units of account previously identified. As a result, Main Street expects timing of its revenue recognition to remain the ~~impact~~same.

In April 2015, the FASB issued ASU 2015-03,Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, which requires debt financing costs related to a recognized debt liability to be presented on the balance sheet as a direct deduction from the related debt liability, similar to the presentation of debt discounts. Additionally in August 2015, the FASB issued ASU 2015-15,Interest—Imputation of Interest: Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements, which provides further clarification on the same topic and states that the SEC would not object to the deferral and presentation of debt issuance costs as an asset and subsequent amortization of the deferred costs over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. Main Street adopted the guidance for debt arrangements that are not line-of-credit arrangements as of June 30, 2017. Comparative financial statements of prior interim and annual periods have been adjusted to apply the new method retrospectively. As a result of the adoption, Main Street reclassified $7.9 million of deferred financing costs assets to a direct deduction from the related debt liability on the consolidated balance sheet as of December 31, 2016. The adoption of this ~~new accounting standard will have~~guidance had no impact on ~~its financial statements.~~net assets, the consolidated statements of operations or the consolidated statements of cash flows.

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 presented and is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted. ~~The Company~~Main Street adopted this standard during the three months ended March 31, 2016. There was no impact of the adoption of this new accounting 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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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. ~~The impact~~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 ~~adoption of this new accounting standard on Main Street's consolidated financial statements is currently being evaluated.~~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

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guidance is effective for annual periods beginning after December 15, 2016, and interim periods therein. Early application is permitted. ~~The Company~~Main Street 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.8.

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 is 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.

Fair Value Hierarchy

In accordance with ASC 820, Main Street has categorized its investments based on the priority of the inputs to the valuation technique into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical investments (Level 1) and the lowest priority to unobservable inputs (Level 3).

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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

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•: 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 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.

As of ~~September~~June 30, ~~2016~~2017 and December 31, ~~2015,~~2016, all of Main Street's LMM portfolio investments except for the ~~debt and~~ equity ~~investments~~investment in one portfolio company consisted of illiquid securities issued by private companies. ~~Those investments~~The investment which ~~were~~was the ~~exceptions were~~exception was in a company with publicly traded equity. As a result, the fair value determination for the 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

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as Level 3 as of ~~September~~June 30, ~~2016~~2017 and December 31, ~~2015,~~2016, except for the one publicly traded equity security which was categorized as Level 2.

As of ~~September~~June 30, ~~2016~~2017 and December 31, ~~2015,~~2016, 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 ~~September~~June 30, ~~2016~~2017 and December 31, ~~2015.~~2016.

As of ~~September~~June 30, ~~2016~~2017 and December 31, ~~2015,~~2016, 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 ~~September~~June 30, ~~2016~~2017 and December 31, ~~2015.~~

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~~(Unaudited)~~2016.

As of ~~September~~June 30, ~~2016~~2017 and December 31, ~~2015,~~2016, Main Street's Other Portfolio investments consisted of illiquid securities issued by private 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 ~~September~~June 30, ~~2016~~2017 and December 31, ~~2015.~~

As of December 31, 2015, Main Street's Marketable securities and idle funds investments consisted primarily of investments in publicly traded debt and equity investments. The fair value determination for these investments consisted of a combination of observable inputs in active markets for which sufficient observable inputs were available to determine the fair value of these investments. As a result, all of Main Street's Marketable securities and idle funds investments were categorized as Level 1 as of December 31, 2015.2016.

The fair value determination of each portfolio investment categorized as Level 3 required one or more of the following unobservable inputs:

•: Financial information obtained from each portfolio company, including unaudited statements of operations and balance sheets for the most recent period available as compared to budgeted numbers;
•: Current and projected financial condition of the portfolio company;
•: Current and projected ability of the portfolio company to service its debt obligations;
•: Type and amount of collateral, if any, underlying the investment;
•: Current financial ratios (e.g., fixed charge coverage ratio, interest coverage ratio and net debt/EBITDA ratio) applicable to the investment;
•: Current liquidity of the investment and related financial ratios (e.g., current ratio and quick ratio);
•: Pending debt or capital restructuring of the portfolio company;
•: Projected operating results of the portfolio company;
•: Current information regarding any offers to purchase the investment;
•: Current ability of the portfolio company to raise any additional financing as needed;
•: Changes in the economic environment which may have a material impact on the operating results of the portfolio company;

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•: 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

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~~(Unaudited)~~

("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~~Note B.1.—Valuation of the Investment ~~Portfolio")~~Portfolio) and (ii) the percentage of expected principal recovery. Significant increases (decreases) in any of these discount rates in isolation would result in a significantly lower (higher) fair value measurement. Significant increases (decreases) in any of these expected principal recovery percentages in isolation would result in a significantly higher (lower) fair value measurement. However, due to the nature of certain investments, fair value measurements may be based on other criteria, such as third-party appraisals of collateral and fair values as determined by independent third parties, which are not presented in the tables below.

The following tables provide a summary of the significant unobservable inputs used to ~~measure the~~ fair value of Main Street's Level 3 portfolio investments as of ~~September~~June 30, ~~2016~~2017 and December 31, ~~2015:~~2016:

Type of Investment
Fair Value
as of
September 30,
2016
(in thousands) Valuation Technique Significant Unobservable Inputs Range(3) Weighted
Average(3) Median(3)
Equity investments
$ 531,672 Discounted cash flow Weighted-average cost of capital 10.2% - 22.6% 12.9% 13.6%
Market comparable / Enterprise Value EBITDA multiple(1) 4.5x - 8.0x(2) 6.9x 5.9x
Debt investments

$
734,110
Discounted cash flow

Risk adjusted discount factor

7.7% - 15.4%(2)

12.0%
11.0%
Expected principal recovery percentage 5.3% - 100.0% 100.0% 100.0%
Debt investments

$
652,325
Market approach

Third party quote

22.5 - 107.0

Total Level 3 investments
$ 1,918,107

~~(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 4.5x - 17.5x and the range for risk adjusted discount factor is 5.0% - 33.8%.

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~~(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, 2015 (in thousands)		Valuation Technique	Significant Unobservable Inputs	Range(3)			Fair Value as of June 30, 2017 (in thousands)		Valuation Technique	Significant Unobservable Inputs	Range(3)

Equity investments	$	530,612	Discounted cash flow	Weighted-average cost of capital	10.5% - 25.1%	13.4%	13.9%	$	595,462	Discounted cash flow	Weighted-average cost of capital	10.2% - 22.6%	12.5%	13.1%
			Market comparable / Enterprise Value	EBITDA multiple(1)	4.0x - 8.5x(2)	7.0x	5.5x			Market comparable / Enterprise Value	EBITDA multiple(1)	4.5x - 8.5x(2)	7.2x	6.0x
Debt investments	$	628,492	Discounted cash flow	Risk adjusted discount factor	8.1% - 15.3%(2)	11.9%	11.9%	$	839,680	Discounted cash flow	Risk adjusted discount factor	6.7% - 16.8%(2)	11.2%	11.3%
				Expected principal recovery percentage	16.6% - 100.0%	99.7%	100.0%				Expected principal recovery percentage	3.0% - 100.0%	99.7%	100.0%
Debt investments	$	637,052	Market approach	Third party quote	12.1 - 100.1			$	639,634	Market approach	Third-party quote	17.3 - 105.0

Total Level 3 investments	$	1,796,156						$	2,074,776

(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 4.0x - ~~18.8x~~17.5x and the range for risk adjusted discount factor is ~~6.7%~~4.4% - ~~29.6%~~49.0%.
(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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Type of Investment	Fair Value as of December 31, 2016 (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%
			Market comparable / Enterprise Value	EBITDA multiple(1)	4.5x - 8.5x(2)	7.1x	6.0x
Debt investments	$	808,895	Discounted cash flow	Risk adjusted discount factor	7.4% - 15.9%(2)	11.8%	11.6%
				Expected principal recovery percentage	3.0% - 100.0%	99.7%	100.0%
Debt investments	$	618,928	Market approach	Third-party quote	22.5 - 108.0

Total Level 3 investments	$	1,994,826

(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 - 17.5x and the range for risk adjusted discount factor is 4.8% - 38.0%.
(3): Does not include investments for which the valuation technique does not include the use of the applicable fair value input.

The following tables provide a summary of changes in fair value of Main Street's Level 3 portfolio investments for the ~~nine~~six month periods ended ~~September~~June 30, ~~2016~~2017 and ~~2015~~2016 (amounts in thousands)~~. Net unrealized appreciation (depreciation) is included in the net change in unrealized appreciation (depreciation)—portfolio investments on the consolidated statements of operations.~~:

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 June 30, 2017

Debt	1,265,544	—	(289,261	)	385,476	34,567		(3,893	)	(5,998	)	1,386,435	$	1,427,823	$	—	$	(401,100	)	$	463,717	$	4,917		$	(9,987	)	$	(6,056	)	$	1,479,314
Equity	519,966	—	(14,797	)	61,543	(59,681	)	3,821		5,998		516,850		549,453		—		(14,318	)		45,446		(27,523	)		23,578			6,056			582,692
Equity Warrant	10,646	—	(1,011	)	4,750	1,011		(574	)	—		14,822		17,550		—		(2,802	)		331		(2,688	)		379			—			12,770

	1,796,156	—	(305,069	)	451,769	(24,103	)	(646	)	—		1,918,107	$	1,994,826	$	—	$	(418,220	)	$	509,494	$	(25,294	)	$	13,970		$	—		$	2,074,776

(1): Includes the impact of non-cash conversions.

Type of Investment

Debt	1,147,281	—	(439,158	)	672,305	19,844		(32,804	)	(10,779	)	1,356,689	1,265,544	—	(193,590	)	273,126	19,795		(10,052	)	(5,028	)	1,349,795
Equity	391,933	—	(16,475	)	58,728	(8,250	)	55,865		10,376		492,177	519,966	—	(6,040	)	49,753	(45,501	)	496		5,028		523,702
Equity Warrant	15,636	—	(1,723	)	2,153	(1,687	)	(271	)	—		14,108	10,646	—	(235	)	2,819	235		(1,134	)	—		12,331

	1,554,850	—	(457,356	)	733,186	9,907		22,790		(403	)	1,862,974	1,796,156	—	(199,865	)	325,698	(25,471	)	(10,690	)	—		1,885,828

(1): Includes the impact of non-cash conversions.

As of ~~September~~June 30, ~~2016~~2017 and December 31, ~~2015,~~2016, 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

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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 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

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(decreases) in the ~~Yield-to-Maturity valuation inputs~~estimated market interest rates in isolation would result in a significantly lower (higher) fair value measurement.

The following tables provide a summary of the significant unobservable inputs used to fair value Main Street's Level 3 SBIC debentures as of ~~September~~June 30, ~~2016~~2017 and December 31, ~~2015~~2016 (amounts in thousands):

Type of Instrument		Fair Value as of September 30, 2016			Valuation Technique		Significant Unobservable Inputs		Range		Weighted Average				Fair Value as of June 30, 2017			Valuation Technique		Significant Unobservable Inputs		Range		Weighted Average

SBIC debentures		$	74,680		Discounted cash flow		Estimated market interest rates		3.8% - 5.3%			4.4	%		$	49,191		Discounted cash flow		Estimated market interest rates		4.2% - 5.0%			4.5%

Type of Instrument		Fair Value as of December 31, 2015			Valuation Technique		Significant Unobservable Inputs		Range		Weighted Average				Fair Value as of December 31, 2016			Valuation Technique		Significant Unobservable Inputs		Range			Weighted Average

SBIC debentures		$	73,860		Discounted cash flow		Estimated market interest rates		4.1% - 5.8%			4.9	%		$	74,803		Discounted cash flow		Estimated market interest rates			3.4% - 5.3%			4.2%

The following tables provide a summary of changes for the Level 3 SBIC debentures recorded at fair value for the ~~nine~~six month periods ended ~~September~~June 30, ~~2016~~2017 and ~~2015~~2016 (amounts in thousands):

Type of Instrument	Fair Value as of December 31, 2015		Repayments		New SBIC Debentures		Net Unrealized (Appreciation) Depreciation		Fair Value as of September 30, 2016		Fair Value as of December 31, 2016		Repayments			Net Realized Loss		New SBIC Debentures		Net Unrealized (Appreciation) Depreciation			Fair Value as of June 30, 2017

SBIC debentures at fair value	$	73,860	$	—	$	—	$	820	$	74,680	$	74,803	$	(25,200	)	$	5,217	$	—	$	(5,629	)	$	49,191

Type of Instrument	Fair Value as of December 31, 2014		Repayments		New SBIC Debentures		Net Unrealized (Appreciation) Depreciation		Fair Value as of September 30, 2015		Fair Value as of December 31, 2015		Repayments		Net Realized Loss		New SBIC Debentures		Net Unrealized (Appreciation) Depreciation		Fair Value as of June 30, 2016

SBIC debentures at fair value	$	72,981	$	—	$	—	$	823	$	73,804	$	73,860	$	—	$	—	$	—	$	19	$	73,879

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(Unaudited)

At ~~September~~June 30, ~~2016~~2017 and December 31, ~~2015,~~2016, 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 September 30, 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 June 30, 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	$	829,692	$	—	$	2,160	$	827,532	$	932,074	$	—	$	2,170	$	929,904
Middle Market portfolio investments		627,944		—		—		627,944		624,060		—		—		624,060
Private Loan portfolio investments		337,735		—		—		337,735		379,809		—		—		379,809
Other Portfolio investments		94,763		—		—		94,763		103,899		—		—		103,899
External Investment Manager		30,133		—		—		30,133		37,104		—		—		37,104

Total portfolio investments		1,920,267		—		2,160		1,918,107		2,076,946		—		2,170		2,074,776
Marketable securities and idle funds investments		—		—		—		—		—		—		—		—

Total investments	$	1,920,267	$	—	$	2,160	$	1,918,107	$	2,076,946	$	—	$	2,170	$	2,074,776



SBIC debentures at fair value	$	74,680	$	—	$	—	$	74,680	$	49,191	$	—	$	—	$	49,191

			Fair Value Measurements								Fair Value Measurements

			(in thousands)								(in thousands)
At December 31, 2015	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, 2016									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	$	862,710	$	—	$	3,840	$	858,870	$	892,592	$	—	$	2,080	$	890,512
Middle Market portfolio investments		586,900		—		—		586,900		630,578		—		—		630,578
Private Loan portfolio investments		248,313		—		—		248,313		342,867		—		—		342,867
Other Portfolio investments		74,801		—		—		74,801		100,252		—		—		100,252
External Investment Manager		27,272		—		—		27,272		30,617		—		—		30,617

Total portfolio investments		1,799,996		—		3,840		1,796,156		1,996,906		—		2,080		1,994,826
Marketable securities and idle funds investments		3,693		3,693		—		—		—		—		—		—

Total investments	$	1,803,689	$	3,693	$	3,840	$	1,796,156	$	1,996,906	$	—	$	2,080	$	1,994,826



SBIC debentures at fair value	$	73,860	$	—	$	—	$	73,860	$	74,803	$	—	$	—	$	74,803

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

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(Unaudited)

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 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 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 relationships, management expertise and capital raising capabilities. In the first quarter of 2014, Main Street began allocating cost to the External Investment Manager pursuant to the sharing agreement. Main Street's total expenses for the three months ended ~~September~~June 30, ~~2016~~2017 and ~~2015~~2016 are net of ~~the costs~~expenses allocated to the External Investment Manager of ~~$1.2~~$1.6 million and ~~$1.1~~$1.4 million, respectively. Main Street's total expenses for the ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 and ~~2015~~2016 are net of ~~the costs~~expenses allocated to the External Investment Manager of ~~$3.7~~$3.2 million and ~~$3.1~~$2.5 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 and ~~nine~~six months ended ~~September~~June 30, 2017 and 2016, ~~and 2015,~~ Main Street

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Notes to Consolidated Financial Statements (Continued)

(Unaudited)

~~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 ~~September~~June 30, ~~2016~~2017 and December 31, ~~2015~~2016 (this information excludes the Other Portfolio investments and the External Investment Manager which are discussed further below):

	As of September 30, 2016						As of June 30, 2017

	LMM(a)		Middle Market		Private Loan		LMM(a)		Middle Market		Private Loan
	(dollars in millions)						(dollars in millions)
Number of portfolio companies		71		81		45		75		68		49
Fair value	$	829.7	$	627.9	$	337.7	$	932.1	$	624.1	$	379.8
Cost	$	703.6	$	658.0	$	353.8	$	815.0	$	646.3	$	399.6
% of portfolio at cost—debt		68.8%		97.5%		94.3%		68.3%		96.7%		93.3%
% of portfolio at cost—equity		31.2%		2.5%		5.7%		31.7%		3.3%		6.7%
% of debt investments at cost secured by first priority lien		91.5%		87.6%		87.6%		95.9%		90.2%		90.1%
Weighted-average annual effective yield(b)		12.5%		8.4%		9.6%		12.0%		8.8%		9.5%
Average EBITDA(c)	$	6.2	$	101.6	$	21.1	$	4.8	$	92.9	$	22.3

(a): At ~~September~~June 30, 2017, Main Street had equity ownership in approximately 99% of its LMM portfolio companies, and the average fully diluted equity ownership in those portfolio companies was approximately 37%.
(b): The weighted-average annual effective yields were computed using the effective interest rates for all debt investments at cost as of June 30, 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 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 LMM portfolio companies, two Middle Market portfolio companies and three Private Loan portfolio companies, as EBITDA is

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Notes to Consolidated Financial Statements (Continued)

(Unaudited)

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

	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 total investments at cost—debt		69.1%		97.2%		93.5%
% of total investments 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, Main Street had equity ownership in approximately 99% of its 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 ~~September 30,~~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 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~~weighted-average for the Middle Market and Private Loan portfolios. These calculations exclude certain portfolio companies, including five LMM portfolio companies, ~~three~~one Middle Market portfolio ~~companies~~company and three Private Loan portfolio companies, as EBITDA is not a meaningful valuation metric for Main Street's investments in these portfolio companies.

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~~Notes to Consolidated Financial Statements (Continued)~~

~~(Unaudited)~~

As of December 31, 2015

LMM(a) Middle
Market Private
Loan

(dollars in millions)

Number of portfolio companies
71 86 40
Fair value
$ 862.7 $ 586.9 $ 248.3
Cost
$ 685.6 $ 637.2 $ 268.6
% of total investments at cost—debt
70.4% 98.3% 94.3%
% of total investments at cost—equity
29.6% 1.7% 5.7%
% of debt investments at cost secured by first priority lien
91.8% 86.6% 87.3%
Weighted-average annual effective yield(b)
12.2% 8.0% 9.5%
Average EBITDA(c)
$ 6.0 $ 98.8 $ 13.1

~~(a)~~: ~~At December 31, 2015,~~June 30, 2017, Main Street had ~~equity ownership~~Other Portfolio investments in ten companies, collectively totaling approximately ~~96%~~$103.9 million in fair value and approximately $111.3 million in cost basis and which comprised approximately 5.0% of ~~its 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~~Main Street's Investment Portfolio at ~~cost as~~fair value. As of December 31, 2015, 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 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 LMM portfolio companies, three Middle Market portfolio companies and six 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 September 30,~~ 2016, Main Street had Other Portfolio investments in ten companies, collectively totaling approximately ~~$94.8~~$100.3 million in fair value and approximately $101.3 million in cost basis and which comprised 4.9% of Main Street's Investment Portfolio at fair value. As of December 31, 2015, Main Street had Other Portfolio investments in ten companies, collectively totaling approximately $74.8 million in fair value and approximately $75.2$107.1 million in cost basis and which comprised approximately ~~4.2%~~5.0% 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 ~~September~~June 30, 2017, there was no cost basis in this investment and the investment had a fair value of approximately $37.1 million, which comprised approximately 1.8% 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 ~~$30.1~~approximately $30.6 million, which comprised ~~1.6% of Main Street's Investment Portfolio at fair value. As of December 31, 2015, there was no cost basis in this investment and the investment had a fair value of $27.3 million, which comprised~~approximately 1.5% of Main Street's Investment Portfolio at fair value.

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(Unaudited)

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

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~~Notes to Consolidated Financial Statements (Continued)~~

~~(Unaudited)~~

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 ~~September~~June 30, ~~2016~~2017 and December 31, ~~2015~~2016 (this information excludes the Other Portfolio investments and the External Investment Manager).

Cost:

First lien debt	75.6%	75.8%	77.0%	76.1%
Equity	13.9%	13.5%	15.6%	14.5%
Second lien debt	8.5%	8.7%	5.9%	7.7%
Equity warrants	1.0%	0.9%	0.9%	1.1%
Other	1.0%	1.1%	0.6%	0.6%

	100.0%	100.0%	100.0%	100.0%

Fair Value:

First lien debt	68.3%	66.1%	70.2%	68.7%
Equity	22.0%	24.9%	22.9%	22.6%
Second lien debt	8.0%	7.7%	5.6%	7.2%
Equity warrants	0.8%	0.6%	0.7%	0.9%
Other	0.9%	0.7%	0.6%	0.6%

	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 ~~September~~June 30, ~~2016~~2017 and December 31, ~~2015~~2016 (this information excludes the Other 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	29.5%	33.4%	26.2%	29.7%
Midwest	21.5%	16.7%	23.0%	23.0%
Northeast	15.4%	18.3%	17.2%	14.8%
West			16.2%	16.1%
Southeast	15.6%	13.5%	14.5%	13.1%
West	14.7%	14.6%
Canada	1.7%	2.2%	1.3%	1.7%
Other Non-United States	1.6%	1.3%	1.6%	1.6%

	100.0%	100.0%	100.0%	100.0%

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Notes to Consolidated Financial Statements (Continued)

(Unaudited)

Fair Value:

Southwest	30.4%	36.7%	26.5%	31.0%
Midwest	19.8%	15.1%	21.6%	21.2%
West	17.0%	16.1%	18.7%	18.3%
Northeast			16.5%	13.9%
Southeast	15.2%	12.6%	14.1%	12.7%
Northeast	14.6%	16.3%
Canada	1.5%	2.0%	1.1%	1.4%
Other Non-United States	1.5%	1.2%	1.5%	1.5%

	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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Notes to Consolidated Financial Statements (Continued)

(Unaudited)

as of ~~September~~June 30, ~~2016~~2017 and December 31, ~~2015~~2016 (this information excludes the Other Portfolio investments and the External Investment Manager).

Cost:

Energy Equipment & Services	7.6%	7.3%	7.7%	7.5%
Construction & Engineering			6.5%	5.3%
Hotels, Restaurants & Leisure	6.8%	7.9%	6.2%	6.5%
Media	5.8%	5.6%	6.1%	5.7%
Machinery	5.7%	5.7%	5.6%	5.6%
Construction & Engineering	4.7%	4.6%
Commercial Services & Supplies			4.7%	5.0%
Specialty Retail			3.8%	4.4%
Diversified Telecommunication Services			3.6%	3.3%
Electronic Equipment, Instruments & Components	4.5%	4.3%	3.5%	4.5%
Diversified Consumer Services			3.3%	2.8%
Leisure Equipment & Products			3.2%	0.9%
Health Care Providers & Services			3.0%	3.0%
IT Services	4.2%	5.1%	2.9%	3.9%
Specialty Retail	4.1%	5.1%
Commercial Services & Supplies	4.0%	3.3%
Internet Software & Services	3.6%	3.1%	2.9%	3.6%
Diversified Telecommunication Services	3.4%	2.9%
Software			2.3%	2.6%
Distributors			2.2%	1.1%
Diversified Financial Services			2.1%	2.3%
Health Care Equipment & Supplies			2.1%	2.3%
Computers & Peripherals			2.1%	2.2%
Communications Equipment			2.1%	2.3%
Food Products			2.0%	2.6%
Building Products			2.0%	2.1%
Aerospace & Defense			2.0%	0.9%
Auto Components	3.4%	2.7%	1.7%	3.0%
Food Products	3.1%	2.4%
Diversified Consumer Services	2.9%	3.7%
Health Care Equipment & Supplies	2.9%	3.1%
Health Care Providers & Services	2.8%	4.1%
Diversified Financial Services	2.3%	2.3%
Software	2.2%	4.5%
Computers & Peripherals	1.9%	0.0%
Professional Services	1.9%	1.9%	1.7%	1.4%
Communications Equipment	1.9%	0.0%
Pharmaceuticals	1.7%	1.9%
Oil, Gas & Consumable Fuels			1.5%	1.2%
Construction Materials			1.3%	0.7%
Road & Rail	1.6%	1.6%	1.1%	1.5%
Building Products	1.6%	1.9%
Oil, Gas & Consumable Fuels	1.5%	2.1%
Real Estate Management & Development			1.0%	0.7%
Health Care Technology			1.0%	0.5%
Air Freight & Logistics			0.9%	1.0%
Consumer Finance	1.5%	0.8%	0.7%	1.5%
Distributors	1.2%	0.7%
Leisure Equipment & Products	1.1%	1.1%
Air Freight & Logistics	1.0%	1.1%
Aerospace & Defense	1.0%	1.0%
Other(1)	8.1%	8.2%	7.2%	8.1%

	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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Notes to Consolidated Financial Statements (Continued)

(Unaudited)

Fair Value:

Machinery			6.9%	6.7%
Construction & Engineering			6.7%	5.6%
Hotels, Restaurants & Leisure	6.9%	7.8%	6.3%	6.5%
Machinery	6.8%	7.0%
Diversified Consumer Services			6.3%	5.5%
Energy Equipment & Services	5.8%	6.0%	6.3%	5.8%
Diversified Consumer Services	5.5%	5.7%
Media	5.4%	5.1%	5.6%	5.2%
Construction & Engineering	5.2%	5.1%
Commercial Services & Supplies			4.7%	5.0%
Specialty Retail	4.3%	6.0%	3.9%	4.6%
Leisure Equipment & Products			3.1%	0.9%
Electronic Equipment, Instruments & Components			3.0%	3.9%
IT Services	4.0%	4.6%	3.0%	3.7%
Commercial Services & Supplies	4.0%	3.1%
Electronic Equipment, Instruments & Components	3.9%	3.7%
Health Care Providers & Services			2.9%	2.9%
Internet Software & Services	3.5%	2.9%	2.7%	3.5%
Diversified Telecommunication Services			2.7%	2.5%
Computers & Peripherals			2.4%	2.3%
Software			2.3%	2.6%
Diversified Financial Services			2.2%	2.3%
Health Care Equipment & Supplies			2.2%	2.4%
Communications Equipment			2.1%	2.3%
Distributors			2.1%	1.1%
Food Products			1.9%	2.4%
Aerospace & Defense			1.9%	0.8%
Building Products			1.8%	1.9%
Auto Components	3.3%	2.8%	1.7%	2.9%
Health Care Equipment & Supplies	2.9%	2.9%
Food Products	2.9%	2.1%
Diversified Telecommunication Services	2.7%	2.7%
Health Care Providers & Services	2.7%	3.3%
Road & Rail	2.4%	2.6%
Diversified Financial Services	2.3%	2.2%
Software	2.2%	5.9%
Professional Services	1.9%	1.7%	1.7%	1.3%
Communications Equipment	1.9%	0.0%
Computers & Peripherals	1.8%	0.0%
Pharmaceuticals	1.5%	1.7%
Building Products	1.4%	1.6%
Consumer Finance	1.3%	0.6%
Construction Materials			1.5%	1.0%
Oil, Gas & Consumable Fuels	1.2%	1.2%	1.2%	1.1%
Air Freight & Logistics	1.2%	1.3%	1.1%	1.1%
Leisure Equipment & Products	1.1%	1.1%
Distributors	1.1%	0.6%
Real Estate Management & Development			1.1%	0.7%
Health Care Technology			1.0%	0.5%
Road & Rail			1.0%	2.5%
Consumer Finance			0.6%	1.3%
Other(1)	8.9%	8.7%	6.1%	7.2%

	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 ~~September~~June 30, ~~2016~~2017 and December 31, ~~2015,~~2016, 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)

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".~~subsidiaries." In evaluating these unconsolidated controlled portfolio companies, there are three tests utilized to

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~~MAIN STREET CAPITAL CORPORATION~~

~~Notes to Consolidated Financial Statements (Continued)~~

~~(Unaudited)~~

determine if any of Main Street's Control Investments (as defined in Note A, including those unconsolidated controlled portfolio companies 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 ~~September~~June 30, ~~2016~~2017 and December 31, ~~2015,~~2016, Main Street had no single ~~Control Investment~~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. ~~For each of~~After performing the ~~nine~~income test for the six months ended ~~September~~June 30, 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 six months ended June 30, 2016, ~~and 2015,~~ Main Street ~~had no single~~determined that its income from one of its Control ~~Investment whose income represented greater~~Investments individually generated more than 20% of its total income, ~~except for~~primarily due to the ~~External Investment Manager for~~unrealized appreciation that was recognized on the ~~nine~~investment during the six months ended ~~September~~June 30, ~~2015.~~2016. As such, CBT Nuggets, LLC, an unconsolidated portfolio company that was a Control Investment, but which was not majority-owned by Main Street, was considered a significant subsidiary as of June 30, 2016.

The following table shows the summarized financial information for ~~the External Investment Manager is included in Note D.~~CBT Nuggets, LLC:

	As of June 30, 2017		As of December 31, 2016

	(dollars in thousands)
Balance Sheet Data
Current Assets	$	9,840	$	7,275
Noncurrent Assets		12,428		13,610
Current Liabilities		18,264		17,883
Noncurrent Liabilities		—		—

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Notes to Consolidated Financial Statements (Continued)

(Unaudited)

	Six Months Ended June 30,

	2017		2016
	(dollars in thousands)
Summary of Operations
Total Revenue	$	20,563	$	18,283
Gross Profit		17,262		15,819
Income from Operations		5,464		6,275
Net Income		6,605		5,953

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-publicly traded~~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 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 incentive fees otherwise earned. During the three months ended ~~September~~June 30, ~~2016~~2017 and ~~2015,~~2016, the External Investment Manager earned ~~$2.5~~$2.7 million and ~~$2.1~~$2.3 million, respectively, of management fees (net of fees waived, if any) under the sub-advisory agreement with HMS Adviser. During the ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 and ~~2015,~~2016, the External Investment Manager earned ~~$7.1~~$5.3 million and ~~$5.5~~$4.6 million, respectively, of management fees (net of fees waived, if any) under the sub-advisory agreement with HMS Adviser.

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~~Notes to Consolidated Financial Statements (Continued)~~

~~(Unaudited)~~

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".~~investments."

The External Investment Manager has elected, for tax purposes, to be treated as a taxable entity, is not consolidated with Main Street for income tax purposes and 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 External Investment Manager has elected to be treated as a taxable entity to enable it to

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Notes to Consolidated Financial Statements (Continued)

(Unaudited)

receive fee income and to allow MSCC to continue to comply with the "source-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 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 ~~September~~June 30, ~~2016~~2017 and ~~2015,~~2016, Main Street allocated ~~$1.2~~$1.6 million and ~~$1.1~~$1.4 million of total expenses, respectively, to the External Investment Manager. For the ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 and ~~2015,~~2016, Main Street allocated ~~$3.7~~$3.2 million and ~~$3.1~~$2.5 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 dividend income from the External Investment Manager. For the three months ended ~~September~~June 30, ~~2016~~2017 and ~~2015,~~2016, the total contribution to Main Street's net investment income was ~~$2.0~~$2.4 million and ~~$1.8~~$2.0 million, respectively. For the ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 and ~~2015,~~2016, the total contribution to Main Street's net investment income was ~~$5.8~~$4.6 million and ~~$4.7~~$3.8 million, respectively.

Summarized financial information from the separate financial statements of the External Investment Manager as of June 30, 2017 and December 31, 2016 and for the three and six months ended June 30, 2017 and 2016 is as follows:

	As of June 30, 2017		As of December 31, 2016

	(dollars in thousands)
Cash	$	84	$	—
Accounts receivable—HMS Income		2,687		2,496

Total assets	$	2,771	$	2,496



Accounts payable to MSCC and its subsidiaries	$	1,922	$	1,635
Dividend payable to MSCC		726		719
Taxes payable		123		142
Equity		—		—

Total liabilities and equity	$	2,771	$	2,496

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Notes to Consolidated Financial Statements (Continued)

(Unaudited)

Summarized financial information from the separate financial statements of the External Investment Manager as of September 30, 2016 and December 31, 2015 and for the three and nine months ended September 30, 2016 and 2015 is as follows:

As of
September 30, As of
December 31,

2016 2015

(dollars in thousands)

Cash
$ 30 $ 31
Accounts receivable—HMS Income
2,466 2,262

Total assets
$ 2,496 $ 2,293

Accounts payable to MSCC and its subsidiaries
$ 1,424 $ 1,333
Dividend payable to MSCC
793 677
Taxes payable
279 283
Equity
— —

Total liabilities and equity
$ 2,496 $ 2,293

	Three Months Ended September 30						Nine Months Ended September 30,						Three Months Ended June 30,						Six Months Ended June 30,

	2016			2015			2016			2015			2017			2016			2017			2016
	(dollars in thousands)																		(dollars in thousands)
Management fee income	$	2,471		$	2,105		$	7,058		$	5,500		$	2,674		$	2,336		$	5,294		$	4,587
Expenses allocated from MSCC or its subsidiaries:
Salaries, share-based compensation and other personnel costs		(833	)		(764	)		(2,522	)		(2,146	)		(1,026	)		(961	)		(1,945	)		(1,689	)
Other G&A expenses		(391	)		(381	)		(1,217	)		(987	)		(602	)		(400	)		(1,207	)		(826	)

Total allocated expenses		(1,224	)		(1,145	)		(3,739	)		(3,133	)		(1,628	)		(1,361	)		(3,152	)		(2,515	)

Pre-tax income		1,247			960			3,319			2,367			1,046			975			2,142			2,072
Tax expense		(454	)		(350	)		(1,210	)		(847	)		(320	)		(357	)		(722	)		(756	)

Net income	$	793		$	610		$	2,109		$	1,520		$	726		$	618		$	1,420		$	1,316

NOTE E—SBIC DEBENTURES

Due to each of the Funds' status as a licensed SBIC, Main Street has the ability to issue, through the Funds, debentures guaranteed by the SBA up to a maximum amount of $350.0 million through its three existing SBIC licenses. SBIC debentures payable were ~~$231.0~~$261.2 million and ~~$225.0~~$240.0 million at ~~September~~June 30, ~~2016~~2017 and December 31, ~~2015,~~2016, respectively. SBIC debentures provide for interest to be paid ~~semi-annually,~~semiannually, with principal due at the applicable 10-year maturity date of each debenture. ~~In August 2016, Main Street received a license from~~During the SBA to operate a third SBIC, which at the time provided Main Street with up to $125.0 million of additional long-term, fixed interest rate debt capital through the issuance of SBA-guaranteed debentures. During September 2016,six months ended June 30, 2017, Main Street issued ~~$6.0~~$46.4 million of SBIC debentures and opportunistically prepaid $25.2 million of existing SBIC debentures as part of an effort to manage the maturity dates of the oldest SBIC debentures, leaving ~~$119.0~~$88.8 million of additional ~~capacity.~~capacity under Main Street's SBIC licenses as of June 30, 2017. As a result of this prepayment, Main Street recognized a realized loss of $5.2 million due to the previously recognized gain recorded as a result of recording the MSC II debentures at fair value on the date of the acquisition 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 3.7% and 4.1% as of ~~September~~June 30, ~~2016~~2017 and ~~4.2% as of~~ December 31, ~~2015.~~2016, respectively. The first principal maturity due under the existing SBIC debentures is in ~~2017,~~2019 and the weighted-average remaining duration as of ~~September~~June 30, ~~2016~~2017 was approximately ~~5.0~~5.8 years. For each of the three months ended ~~September~~June 30, ~~2016~~2017 and ~~2015,~~2016, Main Street recognized interest expense attributable to the SBIC debentures of $2.5 ~~million in each period.~~million. For the ~~nine~~six months ended ~~September~~June 30, 2017 and 2016, ~~and 2015,~~

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~~Notes to Consolidated Financial Statements (Continued)~~

~~(Unaudited)~~

Main Street recognized interest expense attributable to the SBIC debentures of ~~$7.5~~$4.9 million and ~~$7.4~~$5.0 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. ~~The Funds are subject to annual compliance examinations by the SBA. There have been no historical findings resulting from these examinations.~~

As of ~~September~~June 30, ~~2016,~~2017, the recorded value of the SBIC debentures was ~~$230.5~~$255.7 million which consisted of (i) ~~$74.7~~$49.2 million recorded at fair value or ~~$0.5~~$0.8 million less than the ~~$75.2~~$50.0 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 $147.2 million that was net of unamortized debt issuance costs

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Notes to Consolidated Financial Statements (Continued)

(Unaudited)

of $2.6 million and (iii) ~~$6.0~~$61.4 million ~~recorded at~~ par value ~~and~~of SBIC debentures outstanding held in MSC ~~III.~~III with a recorded value of $59.2 million that was net of unamortized debt issuance costs of $2.2 million. As of ~~September~~June 30, ~~2016,~~2017, 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 ~~$223.8~~$244.8 million or ~~$7.2~~$16.4 million less than the ~~$231.0~~$261.2 million ~~face~~par 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 million from a diversified group of fourteen lenders and matures in September ~~2020.~~2021. The Credit Facility also 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 ~~(0.53%~~(1.22% as of ~~September~~June 30, ~~2016)~~2017) plus (i) 1.875% (or the applicable base rate (Prime Rate of ~~3.50%~~4.25% as of ~~September~~June 30, ~~2016)~~2017) 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 ~~2020,~~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.

At ~~September~~June 30, ~~2016,~~2017, Main Street had ~~$313.0~~$303.0 million in borrowings outstanding under the Credit Facility. As of ~~September~~June 30, ~~2016,~~2017, 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~~$2.7 million and $2.2 million for the three months ended ~~September~~June 30, ~~2016~~2017 and ~~2015,~~2016, respectively, and ~~$6.7~~$5.2 million and ~~$5.5~~$4.3 million for the ~~nine~~six month

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~~Notes to Consolidated Financial Statements (Continued)~~

~~(Unaudited)~~

periods ended ~~September~~June 30, ~~2016~~2017 and ~~2015,~~2016, respectively. As of ~~September~~June 30, ~~2016,~~2017, the interest rate on the Credit Facility was ~~2.4%~~2.9%. The average interest rate was ~~2.4%~~2.9% and ~~2.3%~~2.8% for the three and ~~nine~~six months ended ~~September~~June 30, ~~2016, respectively.~~2017. As of ~~September~~June 30, ~~2016,~~2017, 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

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Notes to Consolidated Financial Statements (Continued)

(Unaudited)

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. 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".~~"MSCA." Main Street may from time to time repurchase the 6.125% Notes in accordance with the 1940 Act and the rules promulgated thereunder. As of ~~September~~June 30, ~~2016,~~2017, the outstanding balance of the 6.125% Notes was $90.7 million and the recorded value of $88.9 million was net of unamortized debt issuance costs of $1.8 million. As of ~~September~~June 30, ~~2016,~~2017, 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 ~~$94.1~~$93.2 million. Main Street recognized interest expense related to the 6.125% Notes, including amortization of deferred ~~loan~~issuance costs, of $1.5 million for each of the three months ended ~~September~~June 30, 2017 and 2016, and ~~2015, and $4.4~~$2.9 million for each of the ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 and ~~2015.~~2016.

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 ~~September~~June 30, ~~2016,~~2017, Main Street was in compliance with these covenants.

4.50% Notes

In November 2014, Main Street issued $175.0 million in aggregate principal amount of 4.50% unsecured notes due 2019 (the "4.50% Notes") at an issue price of 99.53%. The 4.50% 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 4.50% Notes; effectively subordinated to all of its existing and future secured indebtedness, to the

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~~MAIN STREET CAPITAL CORPORATION~~

~~Notes to Consolidated Financial Statements (Continued)~~

~~(Unaudited)~~

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 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 bear interest at a rate of 4.50% per year payable ~~semi-annually~~semiannually on June 1 and December 1 of each year. The total net proceeds from the 4.50% Notes, 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 in accordance with the 1940 Act and the rules promulgated thereunder. As

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Notes to Consolidated Financial Statements (Continued)

(Unaudited)

of June 30, ~~2016,~~2017, the outstanding balance of the 4.50% Notes was $175.0 million and the recorded value of $173.3 million was net of unamortized debt issuance costs of $1.7 million. As of ~~September~~June 30, ~~2016,~~2017, if Main Street had adopted the fair value option under ASC 825 for the 4.50% Notes, Main Street estimates its fair value would be approximately ~~$179.9~~$176.4 million. Main Street recognized interest expense related to the 4.50% Notes, including amortization of unamortized deferred ~~loan~~issuance costs, of $2.1 million for each of the three months ended ~~September~~June 30, 2017 and 2016, and ~~2015, and $6.4~~$4.3 million for each of the ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 and ~~2015.~~2016.

The indenture governing the 4.50% Notes (the "4.50% 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 4.50% 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 4.50% Notes Indenture. As of ~~September~~June 30, ~~2016,~~2017, Main Street was in compliance with these covenants.

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~~Notes to Consolidated Financial Statements (Continued)~~

~~(Unaudited)~~

NOTE H—FINANCIAL HIGHLIGHTS

	Nine Months Ended September 30,						Six Months Ended June 30,

	2016			2015			2017			2016
Per Share Data:
NAV at the beginning of the period	$	21.24		$	20.85		$	22.10		$	21.24
Net investment income(1)		1.66			1.61			1.15			1.07
Net realized gain (loss)(1)(2)		0.65			(0.19	)
Net change in net unrealized appreciation (depreciation)(1)(2)		(0.56	)		0.42
Income tax benefit(1)(2)		0.01			0.15
Net realized gain(1)(2)								0.60			0.57
Net change in net unrealized depreciation(1)(2)								(0.27	)		(0.72	)
Income tax benefit (provision)(1)(2)								(0.15	)		0.02

Net increase in net assets resulting from operations(1)		1.76			1.99			1.33			0.94
Dividends paid from net investment income		(1.06	)		(1.79	)		(0.98	)		(0.79	)
Distributions from capital gains		(0.84	)		(0.05	)		(0.41	)		(0.57	)

Total dividends paid		(1.90	)		(1.84	)		(1.39	)		(1.36	)
Impact of the net change in monthly dividends declared prior to the end of the period and paid in the subsequent period		(0.01	)		(0.01	)
Accretive effect of stock offerings (issuing shares above NAV per share)		0.42			0.71			0.55			0.25
Accretive effect of DRIP issuance (issuing shares above NAV per share)		0.06			0.08			0.03			0.05
Other(3)		0.05			0.01			(0.00	)		(0.01	)

NAV at the end of the period	$	21.62		$	21.79		$	22.62		$	21.11



Market value at the end of the period	$	34.33		$	26.66		$	38.46		$	32.85
Shares outstanding at the end of the period		52,931,917			50,079,178			56,698,333			52,074,810

(1): Based on ~~weighted average~~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 certain per share data based on the shares outstanding as of a period end or transaction date and the impact of the early adoption of the accounting standard ASU 2016-09 in the three months ended March 31, 2016 relating to the accounting for share-based payment transactions (see further discussion in Note B.8.).

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Notes to Consolidated Financial Statements (Continued)

(Unaudited)

(3): Includes the impact of the different share amounts as a result of calculating certain per share data based on the weighted-average basic shares outstanding during the period and certain per share data based on the shares outstanding as of a period end or transaction date.

	Nine Months Ended September 30,				Six Months Ended June 30,

	2016		2015		2017		2016
	(dollars in thousands)				(dollars in thousands)
NAV at end of period	$	1,144,350	$	1,090,981	$	1,282,745	$	1,099,112
Average NAV	$	1,097,839	$	1,051,418	$	1,242,720	$	1,082,335
Average outstanding debt	$	792,966	$	742,993	$	826,169	$	781,243
Ratio of total expenses, including income tax expense, to average NAV(1)(2)		4.11%		3.38%		3.39%		2.74%
Ratio of operating expenses to average NAV(2)(3)		4.20%		4.05%		2.76%		2.78%
Ratio of operating expenses, excluding interest expense, to average NAV(2)(3)		1.92%		1.79%		1.36%		1.26%
Ratio of net investment income to average NAV(2)		7.78%		7.47%		5.14%		5.06%
Portfolio turnover ratio(2)		18.11%		16.68%		20.26%		11.29%
Total investment return(2)(4)		25.35%		–6.74%		8.46%		18.05%
Total return based on change in NAV(2)(5)		8.49%		10.31%		6.18%		4.46%

(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): ~~Operating~~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 based on 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 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 our DRIP and equity incentive plans and other miscellaneous items.

~~NOTE I—DIVIDENDS, DISTRIBUTIONS AND TAXABLE INCOME~~

Main Street paid regular monthly dividends of $0.180 per share for each month of January through September 2016, totaling approximately $28.3 million, or $0.540 per share, for the three months ended September 30, 2016, and $83.1 million, or $1.620 per share, for the nine months ended September 30,

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Notes to Consolidated Financial Statements (Continued)

(Unaudited)

~~2016.~~NOTE I—DIVIDENDS, DISTRIBUTIONS AND TAXABLE INCOME

Main Street paid regular monthly dividends of $0.185 per share for each month of January through June 2017, totaling $31.0 million, or $0.555 per share, for the three months ended June 30, 2017, and $61.4 million, or $1.110 per share, for the six months ended June 30, 2017. The ~~third~~second quarter ~~2016~~2017 regular monthly dividends represent a ~~2.9%~~2.8% increase from the regular monthly dividends paid for the ~~third~~second quarter of ~~2015.~~2016. Additionally, Main Street paid a $0.275 per share semi-annual supplemental ~~semi-annual~~ dividend, totaling ~~$14.2~~$15.6 million, in June ~~2016~~2017 compared to ~~a $13.7~~$14.2 million, or $0.275 per share, paid in June ~~2015.~~2016. The regular monthly dividends equaled a total of approximately ~~$26.2~~$27.6 million, or ~~$0.525~~$0.540 per share, for the three months ended ~~September~~June 30, ~~2015,~~2016, and ~~$75.4~~$54.8 million, or ~~$1.560~~$1.080 per share, for the ~~nine~~six months ended ~~September~~June 30, ~~2015.~~2016.

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~~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~~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~~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~~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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Notes to Consolidated Financial Statements (Continued)

(Unaudited)

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 ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 and ~~2015.~~2016.

	Nine Months Ended September 30,						Six Months Ended June 30,

	2016			2015			2017			2016
	(estimated, dollars in thousands)						(estimated, dollars in thousands)
Net increase in net assets resulting from operations	$	90,907		$	96,895		$	74,283		$	47,724
Book tax difference from share-based compensation expense		(708	)		(662	)		(5,880	)		(2,845	)
Net change in net unrealized (appreciation) depreciation		28,829			(20,372	)
Income tax benefit		(1,018	)		(7,004	)
Pre-tax book loss not consolidated for tax purposes		16,771			15,240
Net change in net unrealized depreciation								15,097			36,639
Income tax provision (benefit)								7,812			(490	)
Pre-tax book (income) loss not consolidated for tax purposes								(13,316	)		2,564
Book income and tax income differences, including debt origination, structuring fees, dividends, realized gains (losses) and changes in estimates		(4,141	)		992			2,941			(4,224	)

Estimated taxable income(1)		130,640			85,089			80,937			79,368
Taxable income earned in prior year and carried forward for distribution in current year		29,683			38,638			42,362			29,683
Taxable income earned prior to period end and carried forward for distribution next period		(72,094	)		(42,279	)		(56,438	)		(49,087	)
Dividend payable as of period end and paid in the following period		9,783			9,014			10,484			9,364

Total distributions accrued or paid to common stockholders	$	98,012		$	90,462		$	77,345		$	69,328

(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.

~~MSCC's wholly owned subsidiary MSCP is included in Main Street's consolidated financial statements for financial reporting purposes. For tax purposes, MSCP has elected to be treated as a~~

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Notes to Consolidated Financial Statements (Continued)

(Unaudited)

taxable entity, and therefore is not consolidated with MSCC for income tax purposes and 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 taxable income, or loss, of MSCP may differ from its book income, or loss, due to temporary book and tax timing differences and permanent differences. This income tax expense, or benefit, if any, and the related tax assets and liabilities, are reflected in Main Street's consolidated financial statements.

The income tax expense, or benefit, and the related tax assets and liabilities generated by the Taxable Subsidiaries, ~~and MSCP,~~ if any, are reflected in Main Street's consolidated financial statements. For the three months ended ~~September~~June 30, ~~2016,~~2017, Main Street recognized a net income tax ~~benefit~~provision of ~~$0.5~~$2.2 million, principally consisting of a deferred tax ~~benefit~~provision of ~~$1.4~~$1.7 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, ~~partially offset by~~and a ~~$0.9~~$0.4 million current tax expense, which is primarily related to a ~~$1.0~~$0.2 million accrual for excise tax on Main Street's estimated undistributed taxable ~~income.~~income and $0.2 million provision for current U.S. federal income and state taxes. For the ~~nine~~six months ended ~~September~~June 30, ~~2016,~~2017, Main Street recognized a net income tax ~~benefit~~provision of ~~$1.0~~$7.8 million, principally consisting of a deferred tax ~~benefit~~provision of ~~$3.4~~$6.1 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, ~~partially offset by $2.4~~and $1.7 million in current tax expense, which is ~~composed of~~primarily related to a ~~(i) $2.1~~$1.1 million accrual for excise tax on ~~its~~Main Street's estimated undistributed taxable income and ~~(ii) $0.3~~$0.6 million ~~of accruals~~provision for current U.S. federal income and state taxes. For the three months ended ~~September~~June 30, ~~2015,~~2016, Main Street recognized a net income tax ~~benefit~~provision of ~~$3.2~~$1.8 million, ~~which~~ principally ~~consisted~~consisting of a $1.0 million accrual for excise tax on our estimated undistributed taxable income, a deferred tax ~~benefit~~provision of ~~$2.7~~$0.7 million, which ~~was~~is primarily the result of the net activity relating to the portfolio investments held in the Taxable Subsidiaries, including changes in ~~the~~net operating loss carryforwards, changes in net unrealized appreciation or depreciation and other temporary book tax differences, and a ~~$0.5~~$0.1 million ~~benefit for other current taxes, which was primarily related to a $0.7 million benefit~~provision for current U.S. federal income and state ~~taxes, partially offset by $0.2 million accrual for excise tax on its estimated undistributed taxable income.~~taxes. For the ~~nine~~six months ended ~~September~~June 30, ~~2015,~~2016, Main Street recognized a net income tax benefit of ~~$7.0~~$0.5 million, which principally consisted of a deferred tax benefit of ~~$8.5~~$2.0 million, primarily the result of the net activity relating to the portfolio investments held in the Taxable Subsidiaries, including changes in ~~the~~net operating loss carryforwards, changes in net unrealized appreciation or depreciation and temporary book tax differences, partially offset by ~~$1.5~~a $1.1 million ~~in other current taxes, which principally consisted of $0.8~~accrual for excise tax and $0.4 million of accruals for current U.S. federal income and state ~~taxes, and a $0.7 million accrual for excise tax on its estimated undistributed taxable income.~~taxes.

The net deferred tax asset at ~~September~~June 30, ~~2016~~2017 and December 31, ~~2015~~2016 was ~~$9.2~~$3.0 million and ~~$4.0~~$9.1 million, respectively, 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 deferred tax assets for previously unrecognized excess tax benefits associated with share-based compensation due to the early adoption of the ~~new~~ accounting standard ASU 2016-09 (See further discussion in Note B.8.). ~~As of September~~For the six months ended June 30, ~~2016,~~2017, the Taxable Subsidiaries fully utilized capital loss carryforwards totaling approximately $14.6 million. At June 30, 2017, for U.S. federal income tax purposes, the Taxable Subsidiaries had a ~~capital~~net operating loss carryforward ~~of $15.6 million. For federal income tax purposes, the capital loss carryforward~~which, if unused, will expire in various taxable years ~~2020 and 2021.~~from 2029 through 2037. The timing and manner in which Main Street will utilize any ~~net~~ loss carryforwards in any year, or in total, may be limited in the future under the provisions of the Code.

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~~MAIN STREET CAPITAL CORPORATION~~

~~Notes to Consolidated Financial Statements (Continued)~~

~~(Unaudited)~~

NOTE J—COMMON STOCK

During November 2015, Main Street commenced 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 ~~nine~~six months ended ~~September~~June 30, ~~2016,~~2017, Main Street sold ~~1,996,793~~2,104,424 shares of its common stock at a weighted-average price of ~~$32.67~~$37.72 per share and raised ~~$65.2~~$79.4 million of gross

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Notes to Consolidated Financial Statements (Continued)

(Unaudited)

proceeds under the ATM Program. Net proceeds were ~~$64.3~~$78.4 million after commissions to the selling agents on shares sold and offering costs. As of ~~September~~June 30, ~~2016,~~2017, sales transactions representing ~~30,804~~25,837 shares had not settled and are not included in shares issued and outstanding on the face of the consolidated balance sheet, but are included in the ~~weighted average~~weighted-average shares outstanding onin the consolidated statement of operations and in the shares used to calculate net asset value per share. As of ~~September~~June 30, ~~2016, 362,639~~2017, there were 3,751,904 shares were available for sale under the ATM Program.

During ~~November and~~the year ended December ~~2015,~~31, 2016, Main Street sold ~~140,568~~3,324,646 shares of its common stock at a weighted-average price of ~~$31.98~~$34.17 per share and raised ~~$4.5~~$113.6 million of gross proceeds under the ATM Program. Net proceeds were ~~$4.3~~$112.0 million after commissions to the selling agents on shares sold and offering costs.

~~During March 2015, Main Street completed a follow-on public equity offering~~ As of ~~4,370,000~~December 31, 2016, sales transactions representing 42,413 shares ~~of common stock, including~~had not settled and were not included in shares issued and outstanding on the ~~underwriters' full exercise of their option to purchase 570,000 additional shares, resulting in total net proceeds, including exercise~~face of the ~~underwriters' option~~consolidated balance sheet, but were included in the weighted-average shares outstanding in the consolidated statements of operations and in the shares used to ~~purchase additional shares and after deducting underwriting discounts and estimated offering expenses payable by Main Street, of approximately $127.8 million.~~calculate net asset value per share.

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 ~~nine~~six months ended ~~September~~June 30, ~~2016, $10.6~~2017, $4.4 million of the total ~~$97.3~~$76.9 million in dividends paid to stockholders represented DRIP participation. During this period, the DRIP participation requirements were satisfied with the issuance of ~~339,544~~115,807 newly issued shares. For the ~~nine~~six months ended ~~September~~June 30, ~~2015, $13.7~~2016, $7.8 million of the total ~~$89.1~~$69.0 million in dividends paid to stockholders represented DRIP participation. During this period, the DRIP participation requirements were satisfied with the issuance of ~~444,957~~255,391 newly issued ~~shares and with the purchase of 3,131 shares of common stock in the open market.~~shares. The shares disclosed above relate only to Main Street's DRIP and exclude any activity related to broker-managed dividend reinvestment plans.

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~~MAIN STREET CAPITAL CORPORATION~~

~~Notes to Consolidated Financial Statements (Continued)~~

~~(Unaudited)~~

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~~

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Notes to Consolidated Financial Statements (Continued)

(Unaudited)

"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 Equity and Incentive Plan, net of shares forfeited, if any, and the remaining shares of restricted stock available for issuance as of ~~September~~June 30, ~~2016.~~2017.


Restricted stock authorized under the plan	3,000,000
Less net restricted stock granted during:
Year ended December 31, 2015	(900	)
~~Nine months~~Year ended ~~September 30,~~December 31, 2016	(260,514	)
Six months ended June 30, 2017	(223,659	)

Restricted stock available for issuance as of ~~September~~June 30, ~~2016~~2017	~~2,738,586~~2,514,927

As of ~~September~~June 30, ~~2016,~~2017, 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	)
~~Nine months~~Year ended ~~September 30,~~December 31, 2016	(6,748	)
Six months ended June 30, 2017	(5,201	)

Restricted stock available for issuance as of ~~September~~June 30, ~~2016~~2017	~~286,446~~281,245

For the three months ended ~~September~~June 30, ~~2016~~2017 and ~~2015,~~2016, Main Street recognized total share-based compensation expense of ~~$2.1~~$2.8 million and ~~$1.7~~$2.3 million, respectively, related to the restricted stock issued to Main Street employees and non-employee directors, and, for the ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 and ~~2015,~~2016, Main Street recognized total share-based compensation expense of ~~$6.0~~$5.1 million and ~~$4.6~~$3.8 million, respectively, related to the restricted stock issued to Main Street employees and non-employee directors.

As of ~~September~~June 30, ~~2016,~~2017, there was ~~$14.4~~$15.7 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 2.0 years as of ~~September~~June 30, ~~2016.~~2017.

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Notes to Consolidated Financial Statements (Continued)

(Unaudited)

NOTE M—COMMITMENTS AND CONTINGENCIES

At ~~September~~June 30, ~~2016,~~2017, Main Street had the following outstanding commitments (in thousands):


Category / Company	Amount
			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.	$	686	$	419
EnCap Energy Capital Fund VIII Co-Investors, L.P.		96
EnCap Energy Capital Fund IX, L.P.		958		929
EnCap Energy Capital Fund X, L.P.		7,346		5,403
EnCap Flatrock Midstream Fund II, L.P.		5,589		7,383
EnCap Flatrock Midstream Fund III, L.P.		5,026		4,410

	$	19,701	$	18,544
Congruent Credit Opportunities Funds
Congruent Credit Opportunities Fund II, LP	$	8,488
Congruent Credit Opportunities Fund III, LP		14,246
Brightwood Capital Fund Investments
Brightwood Capital Fund III, LP			$	3,000
Brightwood Capital Fund IV, LP				4,500

	$	22,734	$	7,500
Freeport Fund Investments
Freeport First Lien Loan Fund III LP	$	8,936	$	4,941
Freeport Financial SBIC Fund LP		1,375		1,375

	$	10,311	$	6,316
I-45 SLF LLC	$	4,800
EIG Fund Investments			$	4,352
LKCM Headwater Investments I, L.P.			$	2,500
Dos Rios Partners
Dos Rios Partners, LP	$	2,353	$	1,594
Dos Rios Partners—A, LP		747		506

	$	3,100	$	2,100
Brightwood Capital Fund III, LP	$	3,750
EIG Fund Investments	$	2,334
LKCM Headwater Investments I, L.P.	$	2,500
Access Media Holdings, LLC	$	518	$	1,211
I-45 SLF LLC			$	800

Total equity commitments	$	69,748	$	63,942
Investments with commitments to fund revolving loans that have not been fully drawn or term loans with additional commitments not yet funded:
UniRush, LLC	$	4,000
CapFusion, LLC		3,200
Barfly Ventures, LLC		2,756
Buca C, LLC		2,670
PT Network, LLC		2,621
Truck Bodies and Equipment International, Inc.		2,208

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Notes to Consolidated Financial Statements (Continued)

(Unaudited)


Category / Company	Amount
			Amount
Investments with commitments to fund revolving loans that have not been fully drawn or term loans with additional commitments not yet funded:
Minute Key, Inc.			$	8,800
NNE Partners, LLC				8,458
PT Network, LLC				7,300
Charps, LLC				4,000
CST Industries Inc.				3,577
CDHA Management, LLC				3,373
Strike, LLC				2,000
Boccella Precast Products LLC				2,000
Mid-Columbia Lumber Products, LLC				2,000
CapFusion, LLC				1,600
Hawk Ridge Systems, LLC				1,600
Meisler Operating LLC				1,600
Arcus Hunting LLC				1,590
Hojeij Branded Foods, LLC		2,028		1,500
Applied Products, Inc.		2,000
Mid-Columbia Lumber Products, LLC		2,000
Messenger, LLC				1,417
Subsea Global Solutions, LLC				1,257
Gamber-Johnson Holdings, LLC				1,200
NuStep, LLC				1,200
LaMi Products, LLC		1,765		1,030
Arcus Hunting LLC		1,396
Messenger, LLC		1,323
Gamber-Johnson Holdings, LLC		1,200
Barfly Ventures, LLC				919
Lamb Ventures, LLC				811
Apex Linen Service, Inc.				800
Mystic Logistics Holdings, LLC				800
Pardus Oil and Gas, LLC				663
NRI Clinical Research, LLC				600
PPC/SHIFT LLC				500
Jensen Jewelers of Idaho, LLC				500
UniTek Global Services, Inc.				483
Grace Hill, LLC		1,025		444
NRI Clinical Research, LLC		1,000
Lamb's Venture, LLC		861
Apex Linen Service, Inc.		800
Minute Key, Inc.		800
Mystic Logistics, Inc.		800
Energy & Exploration Partners, LLC		663
Jackmont Hospitality, Inc.		593
Vision Interests, Inc.		525
Insurance Technologies, LLC		522
UniTek Global Services, Inc.		483
BBB Tank Services, LLC		464
HW Temps LLC		400
Subsea Global Solutions, LLC		285
AccuMED Corp.		250
Garreco, LLC		200
Jensen Jewelers of Idaho, LLC		200
Clad-Rex Steel, LLC				400
OnAsset Intelligence, Inc.				225
BigName Commerce, LLC				120
Permian Holdco 2, Inc.				116

Total loan commitments	$	39,038	$	62,883

Total commitments	$	108,786	$	126,825

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 ~~liquidation of Marketable securities and idle funds investments, and a combination of future debt and equity capital)~~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 ~~September~~June 30, ~~2016.~~2017.

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Notes to Consolidated Financial Statements (Continued)

(Unaudited)

Main Street has an operating lease for its office space in Houston, Texas. Total rent expense incurred by Main Street for the three months ended June 30, 2017 and 2016 was $0.2 million and $0.1 million, respectively. Total rent expense incurred by Main Street for each of the six months ended June 30, 2017 and 2016 was $0.3 million.

The following table shows future minimum payments under Main Street's operating lease as of June 30, 2017:

For the Years Ended December 31,	Amount

2017	$	—
2018	$	373
2019	$	749
2020	$	763
2021	$	777
Thereafter		5,031

Total	$	7,693

Main Street may, from time to time, be involved in litigation arising out of its operations in the normal course of business or otherwise. Furthermore, third parties may try to impose liability on Main Street in connection with the activities of its portfolio companies. While the outcome of any current legal proceedings cannot at this time be predicted with certainty, Main Street does not expect any current matters will materially affect its financial condition or results of operations; however, there can be no assurance whether any pending legal proceedings will have a material adverse effect on Main Street's financial condition or results of operations in any future reporting period.

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~~MAIN STREET CAPITAL CORPORATION~~

~~Notes to Consolidated Financial Statements (Continued)~~

~~(Unaudited)~~

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 ~~September~~June 30, ~~2016,~~2017, Main Street had a receivable of approximately ~~$2.2~~$2.6 million due from the External Investment Manager which included approximately ~~$1.4~~$1.9 million related primarily to operating expenses incurred by MSCC or its subsidiaries required to support the External Investment Manager's business ~~along with~~and approximately $0.7 million of dividends declared but not paid by the External Investment ~~Manager of approximately $0.8 million.~~Manager.

In November 2015, Main Street's ~~board~~Board of ~~directors~~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~~Board of ~~directors~~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 ~~September~~June 30, ~~2016, $2.0~~2017, $3.6 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~~$2.4 million was deferred into phantom

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Notes to Consolidated Financial Statements (Continued)

(Unaudited)

Main Street stock units, representing ~~55,753~~72,182 shares of Main Street's common stock. Including phantom stock units issued through dividend reinvestment, the phantom stock units outstanding as of ~~September~~June 30, ~~2016~~2017 represented ~~63,257~~83,739 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~~weighted-average shares outstanding onin Main Street's consolidated ~~statement~~statements of operations as earned.

NOTE O—SUBSEQUENT EVENTS

In ~~October 2016,~~July 2017, Main Street ~~declared~~fully exited its debt and equity investments in Compact Power Equipment, Inc. ("CPEC"), a ~~semi-annual supplemental cash dividend~~light to medium duty equipment rental operation that owns and operates outdoor equipment rental locations. CPEC provides its customers a wide range of ~~$0.275 per share payable in December 2016. This supplemental cash dividend is in addition to the previously announced regular monthly cash dividends that~~landscape and construction equipment available on both a long-term rental basis and an hourly rental basis. Main Street ~~declared for~~realized a gain of approximately $3.7 million on the ~~fourth quarter~~exit of ~~2016 of $0.185 per share for each of October, November and December 2016.~~its equity investments in CPEC.

In ~~November 2016,~~July 2017, Main Street made a new portfolio investment to facilitate the management-led buyout of Market Force Information, LLC ("Market Force"), a leading global provider of customer experience management software and services. Main Street, along with a co-investor, partnered with Market Force's management team to facilitate the transaction, with Main Street funding $38.2 million in a combination of first-lien, senior secured term debt and a direct equity investment. In addition, Main Street and its co-investor are providing Market Force an undrawn credit facility to support its growth initiatives and working capital needs. Headquartered in Louisville, Colorado, and founded in 2005, Market Force is a global provider of customer experience management software and services, which capture customer experience data through multiple channels and provide location-based measurement and analytics. Market Force integrates this data into a cloud-based platform where clients can view, track, and analyze data in real time.

In August 2017, Main Street declared regular monthly dividends of ~~$0.185~~$0.190 per share for each month of ~~January, February~~October, November and ~~March~~December of 2017. These regular monthly dividends equal a total of ~~$0.555~~$0.570 per share for the ~~first~~fourth quarter of 2017 and represent a ~~2.8%~~2.7% increase from the regular monthly dividends declared for the ~~first~~fourth quarter of 2016. Including ~~the semi-annual supplemental dividend declared for December 2016 and~~ the regular monthly dividends declared for the ~~first quarter~~third and fourth quarters of 2017, Main Street will have paid ~~$19.160~~$21.115 per share in cumulative dividends since its October 2007 initial public offering.

In October 2016, Main Street amended its Credit Facility to extend the maturity by one year to September 2021. The Credit Facility includes total commitments of $555.0 million from a diversified group of fourteen lenders and also 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.

Table of Contents

Schedule 12-14

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments In and Advances to Affiliates
~~Nine Months Ended September~~June 30, ~~2016~~2017
(dollars in thousands)
~~(Unaudited)~~

Company	Investment(1)							Investment(1)	Amount of Interest, Fees or Dividends Credited to Income(2)		December 31, 2016 Fair Value		Gross Additions(3)		Gross Reductions(4)		June 30, 2017 Fair Value

Control Investments
*Majority-owned investments*
Café Brazil, LLC	Member Units	416		7,330	—	760	6,570	Member Units	$	110	$	6,040	$	—	$	650	$	5,390

CMS Minerals LLC	Member Units	101		—	4,083	190	3,893
Clad-Rex Steel, LLC								LIBOR Plus 9.50% (Floor 1.00)		772		14,337		12		400		13,949
								Member Units		177		7,280		550		—		7,830
								10% Secured Debt		60		1,190		—		9		1,181
	Preferred Member Units	1,172		6,914	—	3,543	3,371	Member Units		—		210		—		—		210

Gamber-Johnson Holdings, LLC	LIBOR Plus 11.00% (Floor 1.00%)	884		—	19,798	—	19,798
CMS Minerals Investments								Preferred Member Units		96		3,682		—		3,682		—
	Member Units	354		—	12,124	—	12,124	Member Units		103		3,381		—		753		2,628

GRT Rubber Technologies LLC	LIBOR Plus 9.00% (Floor 1.00%)	1,118		15,988	134	2,638	13,484
	Member Units	335		15,580	2,450	—	18,030
Gamber-Johnson								LIBOR Plus 11.00% (Floor 1.00%)		1,477		23,846		235		201		23,880
Holdings, LLC								Member Units		300		18,920		3,160		—		22,080

GRT Rubber								LIBOR Plus 9.00% (Floor 1.00%)		668		13,274		18		883		12,409
Technologies LLC								Member Units		430		20,310		370		—		20,680

Harborside Holdings, LLC								Member Units		—		—		9,400		—		9,400

Hydratec, Inc.	Common Stock	1,270		14,950	810	—	15,760	Common Stock		911		15,640		—		—		15,640

IDX Broker, LLC	12.5% Secured Debt	1,099		11,350	16	116	11,250	11.5% Secured Debt		665		10,950		13		613		10,350
	Member Units	68		6,440	250	—	6,690	Member Units		136		7,040		1,590		—		8,630

Jensen Jewelers of Idaho, LLC	Prime Plus 6.75% (Floor 2.00%)	359		4,055	522	372	4,205
	Member Units	159		4,750	—	100	4,650
Jensen Jewelers of								Prime Plus 6.75% (Floor 2.00%)		218		4,055		11		311		3,755
Idaho, LLC								Member Units		82		4,460		—		—		4,460

Lamb's Venture, LLC	LIBOR Plus 5.75%	7		—	352	213	139
Lamb Ventures, LLC								LIBOR Plus 5.75%		11		—		350		160		190
	11% Secured Debt	653		7,962	—	227	7,735	11% Secured Debt		420		7,657		—		78		7,579
	Preferred Equity	—		328	72	—	400	Preferred Equity		—		400		—		—		400
	Member Units	50		4,690	1,190	—	5,880	Member Units		40		5,990		340		—		6,330
	9.5% Secured Debt	65		919	—	37	882	9.5% Secured Debt		43		1,170		432		1,170		432
	Member Units	45		1,240	380	—	1,620	Member Units		835		1,340		—		750		590

Lighting Unlimited, LLC	8% Secured Debt	92		1,514	—	—	1,514	8% Secured Debt		29		1,514		—		1,514		—
	Preferred Equity	—		430	—	—	430	Preferred Equity		—		410		24		434		—
	Warrants	—		40	—	30	10	Warrants		—		—		54		54		—
	Member Units	(81	)	350	—	270	80	Member Units		—		—		100		100		—

Mid-Columbia Lumber	10% Secured Debt	133		1,750	—	—	1,750	10% Secured Debt		88		1,750		—		—		1,750
Products, LLC	12% Secured Debt	356		3,900	—	—	3,900	12% Secured Debt		235		3,900		—		—		3,900
	Member Units	4		2,580	—	280	2,300	Member Units		3		2,480		—		1,500		980
	9.5% Secured Debt	62		881	—	34	847	9.5% Secured Debt		39		836		—		22		814
	Member Units	16		550	50	—	600	Member Units		28		600		690		—		1,290

MSC Adviser I, LLC	Member Units	2,110		27,272	2,861	—	30,133	Member Units		1,420		30,617		6,487		—		37,104

Mystic Logistics Holdings, LLC	12% Secured Debt	892		9,448	32	304	9,176
	Common Stock	—		5,970	—	820	5,150
Mystic Logistics								12% Secured Debt		568		9,176		29		1,173		8,032
Holdings, LLC								Common Stock		—		5,780		810		—		6,590

NRP Jones, LLC	6% Current / 6% PIK Secured Debt	1,426		12,948	683	—	13,631	8% Current / 4% PIK Secured Debt		846		13,915		282		—		14,197
	Warrants	—		450	—	320	130	Warrants		—		130		—		—		130
	Member Units	—		1,480	—	1,070	410	Member Units		—		410		—		—		410

PPL RVs, Inc.	11.1% Secured Debt	820		9,710	—	—	9,710	LIBOR Plus 7.00% (Floor 0.50%)		748		17,826		174		—		18,000
	Common Stock	261		9,770	2,010	—	11,780	Common Stock		100		11,780		—		—		11,780

Principle Environmental, LLC	12% Secured Debt	392		4,060	21	21	4,060
	12% Current / 2% PIK Secured Debt	354		3,310	52	1	3,361
Principle								12% Secured Debt		245		4,060		—		—		4,060
Environmental, LLC								12% Current / 2% PIK Secured Debt		238		3,378		34		—		3,412
	Preferred Member Units	—		6,060	—	1,460	4,600	Preferred Member Units		—		5,370		1,303		63		6,610
	Warrants	—		310	—	290	20	Warrants		—		270		70		—		340

Quality Lease Service, LLC	8% PIK Secured Debt	392		6,538	391	—	6,929	8% PIK Secured Debt		273		7,068		273		—		7,341
	Member Units	—		2,638	250	—	2,888	Member Units		—		3,188		1,199		—		4,387

Southern RV, LLC	13% Secured Debt	157		11,400	104	11,504	—
	Member Units	957		15,100	—	15,100	—
	13% Secured Debt	45		3,250	30	3,280	—
	Member Units	—		1,200	—	1,200	—

Table of Contents

Company	Investment(1)	Amount of Interest, Fees or Dividends Credited to Income(2)			Gross Additions(3)		Gross Reductions(4)		September 30, 2016 Fair Value		Investment(1)

The MPI Group, LLC	9% Secured Debt		202	2,921		1		—		2,922	9% Secured Debt	133	2,922	1	303	2,620
	Series A Preferred Units		—	690		—		330		360	Series A Preferred Units	—	—	—	—	—
	Warrants		—	—		—		—		—	Warrants	—	—	—	—	—
	Member Units		95	2,230		70		—		2,300

Travis Acquisition LLC	12% Secured Debt		340	3,513		43		3,556		—
	Member Units		2,812	14,480		—		14,480		—	Member Units	58	2,300	90	—	2,390

Uvalco Supply, LLC	9% Secured Debt		77	1,314		—		328		986	9% Secured Debt	33	872	—	236	636
	Member Units		140	5,460		—		600		4,860	Member Units	67	4,640	—	334	4,306

Vision Interests, Inc.	13% Secured Debt		312	3,052		15		182		2,885	13% Secured Debt	188	2,814	—	24	2,790
	Series A Preferred Stock		—	3,550		—		180		3,370	Series A Preferred Stock	—	3,000	—	—	3,000
	Common Stock		—	210		—		70		140	Common Stock	—	—	—	—	—

Ziegler's NYPD, LLC	6.5% Secured Debt		51	992		1		—		993	6.5% Secured Debt	34	994	1	—	995
	12% Secured Debt		37	500		—		200		300	12% Secured Debt	18	300	—	—	300
	14% Secured Debt		293	2,750		—		—		2,750	14% Secured Debt	194	2,750	—	—	2,750
	Warrants		—	50		170		—		220	Warrants	—	240	—	30	210
	Preferred Member Units		—	3,400		300		—		3,700	Preferred Member Units	—	4,100	—	520	3,580

*Other controlled investments*
Access Media Holdings, LLC	5.00% Current / 5.00% PIK Secured Debt	$	1,689	20,380	$	826	$	1,486	$	19,720	5% Current / 5% PIK Secured Debt	1,165	19,700	570	820	19,450
	Preferred Member Units		—	2,000		1,732		3,482		250	Preferred Member Units	—	240	759	729	270
	Member Units		—	—		—		—		—	Member Units	—	—	—	—	—

AmeriTech College, LLC	10% Secured Debt		76	1,003		1		—		1,004
	10% Secured Debt		230	3,025		—		—		3,025
Ameritech College											13% Secured Debt	67	1,003	1	—	1,004
Operations, LLC											13% Secured Debt	198	3,025	—	—	3,025
	Preferred Member Units		86	2,291		—		—		2,291	Preferred Member Units	—	2,291	3,900	3,281	2,910

ASC Interests, LLC	11% Secured Debt		205	2,500		10		260		2,250	11% Secured Debt	118	2,100	5	105	2,000
	Member Units		65	2,230		450		—		2,680	Member Units	0	2,680	—	360	2,320

Bond-Coat, Inc.	12% Secured Debt		1,085	11,596		17		17		11,596	12% Secured Debt	719	11,596	19	19	11,596
	Common Stock		—	9,140		—		4,050		5,090	Common Stock	—	6,660	1,170	—	7,830

CBT Nuggets, LLC	Member Units		6,225	42,120		10,680		—		52,800	Member Units	2,693	55,480	10,430	—	65,910

Charps, LLC											12% Secured Debt	1,218	—	19,009	800	18,209
											Preferred Member Units	—	—	400	—	400

Datacom, LLC	8% Secured Debt		33	—		900		—		900	8% Secured Debt	43	900	450	270	1,080
	5.25% Current / 5.25% PIK Secured Debt		878	10,970		369		451		10,888	5.25% Current / 5.25% PIK Secured Debt	634	11,049	604	—	11,653
	Class A Preferred Member Units		—	1,181		137		—		1,318	Class A Preferred Member Units	—	1,368	104	—	1,472
	Class B Preferred Member Units		—	5,079		—		3,310		1,769	Class B Preferred Member Units	—	1,529	—	1,318	211

Garreco, LLC	14% Secured Debt		636	5,739		22		250		5,511	LIBOR Plus 10.00% (Floor 1.00%)	362	5,219	981	406	5,794
	Member Units		5	1,270		—		120		1,150	Member Units	—	1,150	680	—	1,830

Gulf Manufacturing, LLC	9% PIK Secured Debt		53	777		—		—		777	9% PIK Secured Debt	35	777	—	—	777
	Member Units		—	13,770		—		5,000		8,770	Member Units	217	8,770	1,700	—	10,470

Gulf Publishing Holdings, LLC	12.5% Secured Debt		645	—		9,907		—		9,907
	Member Units		62	—		3,124		—		3,124
Gulf Publishing											12.5% Secured Debt	728	9,911	2,781	—	12,692
Holdings, LLC											Member Units	40	3,124	1,206	—	4,330

Harrison Hydra-Gen, Ltd.	9% Secured Debt		9	5,010		—		5,010		—	Common Stock	—	3,120	—	320	2,800
	Preferred Stock		2	1,361		2		1,363		—
	Common Stock		137	2,600		740		—		3,340

Hawthorne Customs and	Member Units		—	460		—		180		280	Member Units	—	280	—	—	280
Dispatch Services, LLC	Member Units		141	2,220		—		180		2,040	Member Units	95	2,040	—	—	2,040

HW Temps LLC	LIBOR Plus 9.50% (Floor 1.00%)		814	9,884		412		—		10,296	LIBOR Plus 13.00% (Floor 1.00%)	726	10,500	9	600	9,909
	Preferred Member Units		354	3,942		418		—		4,360	Preferred Member Units	70	3,940	—	—	3,940

Indianapolis Aviation	15% Secured Debt		417	3,100		5		5		3,100	15% Secured Debt	292	3,100	—	3,100	—
Partners, LLC	Warrants		—	2,540		109		—		2,649	Warrants	—	2,649	—	2,649	—

Marine Shelters Holdings, LLC	12% PIK Secured Debt		886	8,870		939		430		9,379
(LoneStar Marine Shelters)	Preferred Member Units		—	4,881		—		3,975		906
KBK Industries, LLC											10% Secured Debt	59	1,250	100	410	940
											12.5% Secured Debt	378	5,889	11	—	5,900
											Member Units	—	2,780	1,210	—	3,990

Marine Shelters											12% PIK Secured Debt	—	9,387	—	9,387	—
Holdings, LLC											Preferred Member Units	—	—	100	100	—

MH Corbin Holding LLC	10% Secured Debt		1,062	13,869		21		525		13,365	10% Secured Debt	670	13,197	15	350	12,862
	Preferred Member Units		105	6,000		—		—		6,000	Preferred Member Units	70	6,000	—	—	6,000

NAPCO Precast, LLC	Prime Plus 2.00% (Floor 7.00%)		219	4,005		—		1,292		2,713	LIBOR Plus 8.50%	327	—	10,438	—	10,438
	18% Secured Debt		609	4,924		—		972		3,952	Prime Plus 2.00% (Floor 7.00%)	122	2,713	20	2,733	—
	Member Units		645	8,590		2,080		—		10,670	18% Secured Debt	327	3,952	31	3,983	—
											Member Units	210	10,920	180	—	11,100

Table of Contents

Company	Investment(1)	Amount of Interest, Fees or Dividends Credited to Income(2)		December 31, 2015 Fair Value		Gross Additions(3)		Gross Reductions(4)		September 30, 2016 Fair Value		Investment(1)	Amount of Interest, Fees or Dividends Credited to Income(2)			December 31, 2016 Fair Value			Gross Additions(3)		Gross Reductions(4)		June 30, 2017 Fair Value

NRI Clinical Research, LLC	14% Secured Debt		519		4,539		79		108		4,510	LIBOR Plus 6.50% (Floor 1.50%)		19			200			200		—		400
	Warrants		—		340		310		—		650	14% Secured Debt		321			4,261			22		78		4,205
	Member Units		—		1,342		979		—		2,321	Warrants		—			680			—		—		680
												Member Units		—			2,462			—		1		2,461

NuStep, LLC												12% Secured Debt		1,362			—			20,402		—		20,402
												Preferred Member Units		—			—			10,200		—		10,200

OMi Holdings, Inc.	Common Stock		—		13,640		750		—		14,390	Common Stock		432			13,080			—		340		12,740

Pegasus Research Group, LLC (Televerde)	Member Units		339		6,840		1,780		—		8,620
Pegasus Research Group, LLC												Member Units		—			8,620			—		390		8,230

River Aggregates, LLC	Zero Coupon Secured Debt		52		556		53		—		609	Zero Coupon Secured Debt		39			627			39		—		666
	Member Units		345		3,830		770		—		4,600	Member Units		—			4,600			—		190		4,410
	Member Units		—		2,360		150		—		2,510	Member Units		—			2,510			—		—		2,510

SoftTouch Medical	LIBOR Plus 9.00% (Floor 1.00%)		606		8,010		65		850		7,225	LIBOR Plus 9.00% (Floor 1.00%)		366			7,140			7		7		7,140
Holdings LLC	Member Units		262		5,710		2,960		—		8,670	Member Units		535			9,170			370		—		9,540

Other
Amounts related to investments transferred to or from other 1940 Act classification during the period			—		—		—		—		—			(220	)		(9,919	)		—		—		—

		$	40,398		555,011	$	90,062	$	97,422	$	547,651		$	27,576		$	594,282		$	116,225	$	48,713	$	671,713



Affiliate Investments
AFG Capital Group, LLC	11% Secured Debt	$	1,313	$	12,790	$	349	$	13,139	$	—	Warrants	$	—		$	670		$	20	$	—	$	690
	Warrants		—		490		130		—		620	Member Units		16			2,750			100		—		2,850
	Member Units		—		2,020		510		—		2,530

Barfly Ventures, LLC	12% Secured Debt		862		4,042		1,813		94		5,761	12% Secured Debt		480			5,827			1,969		—		7,796
	Options		—		—		420		—		420	Options		—			490			100		—		590
	Warrants		—		473		—		233		240	Warrants		—			280			50		—		330

BBB Tank Services, LLC	LIBOR Plus 7.50% (Floor 1.00%)		6		—		332		—		332	LIBOR Plus 9.50% (Floor 1.00%)		43			797			—		—		797
	12% Current / 1% PIK Secured Debt		298		—		3,982		—		3,982	15% Secured Debt		307			3,991			3		—		3,994
	Member Units		—		—		800		—		800	Member Units		—			800			—		—		800

Boccella Precast												LIBOR Plus 10.0% (Floor 1.00%)		235			—			16,216		—		16,216
Products LLC												Member Units		—			—			2,160		—		2,160

Boss Industries, LLC	Preferred Member Units		199		2,586		133		113		2,606	Preferred Member Units		175			2,800			520		—		3,320

Bridge Capital Solutions	13% Secured Debt		984		6,890		5,660		7,000		5,550	13% Secured Debt		620			5,610			130		—		5,740
Corporation	Warrants		—		1,300		2,012		—		3,312	Warrants		—			3,370			—		—		3,370
	13% Secured Debt		40		—		990		—		990	13% Secured Debt		66			1,000			1		1		1,000
	Preferred Member Units		19		—		1,000		—		1,000	Preferred Member Units		50			1,000			—		—		1,000

Buca C, LLC	LIBOR Plus 7.25% (Floor 1.00%)		1,595		25,299		231		3,159		22,371	LIBOR Plus 7.25% (Floor 1.00%)		951			22,671			30		1,633		21,068
	Preferred Member Units		168		3,711		1,888		—		5,599	Preferred Member Units		115			4,660			116		728		4,048

CAI Software LLC	12% Secured Debt		391		4,661		12		893		3,780	12% Secured Debt		217			3,683			5		205		3,483
	Member Units		69		1,000		1,150		—		2,150	Member Units		49			2,480			340		—		2,820

CapFusion, LLC	13% Secured Debt		1,003		—		11,566		—		11,566	13% Secured Debt		1,043			13,202			102		—		13,304
	Warrants		—		—		1,200		—		1,200	Warrants		—			1,200			—		—		1,200

Chandler Signs Holdings, LLC	12% Secured Debt		456		—		4,500		—		4,500
	Class A Units		82		—		2,950		—		2,950
Chandler Signs												12% Secured Debt		275			4,500			3		3		4,500
Holdings, LLC												Class A Units		63			3,240			—		330		2,910

Condit Exhibits, LLC	Member Units		130		1,010		770		—		1,780	Member Units		36			1,840			—		—		1,840

Congruent Credit Opportunities	LP Interests (Fund II)		400		2,834		—		1,395		1,439
Funds	LP Interests (Fund III)		730		12,024		3,952		—		15,976
Congruent Credit												LP Interests (Fund II)		—			1,518			—		141		1,377
Opportunities Funds												LP Interests (Fund III)		768			16,181			2,396		—		18,577

Daseke, Inc.	12% Current / 2.5% PIK Secured Debt		2,427		21,253		468		61		21,660	12% Current / 2.5% PIK Secured Debt		676			21,799			255		22,054		—
	Common Stock		—		22,660		—		1,020		21,640	Common Stock		—			24,063			—		24,063		—

Dos Rios Partners	LP Interests (Fund)		—		2,031		2,133		43		4,121	LP Interests (Dos Rios Partners, LP)		—			4,925			444		—		5,369
	LP Interests (Fund A)		—		648		677		134		1,191	LP Interests (Dos Rios Partners—A, LP)		—			1,444			129		—		1,573

Dos Rios Stone Products LLC	Class A Units		51		—		2,000		—		2,000	Class A Units		—			2,070			—		200		1,870

East Teak Fine Hardwoods, Inc.	Common Stock		37		860		—		—		860

East West Copolymer &	12% Secured Debt		949		9,463		71		—		9,534
Rubber, LLC	Warrants		—		50		—		—		50

EIG Fund Investments	LP Interests		225		718		2,070		—		2,788

EIG Traverse Co-Investment, L.P.	LP Interests		895		4,755		5,272		—		10,027

Freeport Financial Funds	LP Interests (Fund)		296		6,045		—		425		5,620
	LP Interests (Fund III)		357		2,077		1,487		—		3,564

Table of Contents

Company	Investment(1)								Investment(1)

East Teak Fine Hardwoods, Inc.									Common Stock	33	860	—	230	630

East West Copolymer &									12% Current / 2% PIK Secured Debt	—	8,630	—	5,630	3,000
Rubber, LLC									Warrants	—	—	—	—	—

EIG Fund Investments									LP Interests (EIG Global Private Debt fund—A, L.P.)	90	2,804	352	2,462	694
									LP Interests (EIG Traverse Co-Investment, L.P.)	543	9,905	504	—	10,409

Freeport Financial Fund Investments									LP Interests (Freeport Financial SBIC Fund LP)	204	5,620	—	101	5,519
									LP Interests (Freeport First Lien Loan Fund III LP)	289	4,763	2,796	52	7,507

Gault Financial, LLC (RMB	10% Secured Debt	1,156		10,930		123	—	11,053	10.5% Current Secured Debt	649	11,079	1,018	327	11,770
Capital, LLC)	Warrants	—		—		—	—	—	Warrants	—	—	—	—	—

Glowpoint, Inc.	8% Secured Debt	17		397		1	398	—	12% Secured Debt	555	3,997	14	1,311	2,700
	12% Secured Debt	843		8,929		17	2,307	6,639	Common Stock	—	2,080	90	—	2,170

Guerdon Modular									13% Secured Debt	719	10,594	18	—	10,612
Holdings, Inc.									Preferred Stock	—	1,140	—	—	1,140
	Common Stock	—		3,840		—	1,680	2,160	Common Stock	—	80	—	—	80

Guerdon Modular Holdings, Inc.	LIBOR Plus 8.50% (Floor 1.00%)	20		(15	)	975	960	—
	9% Current / 4% PIK Secured Debt	1,080		10,295		181	—	10,476
Hawk Ridge Systems, LLC									10% Secured Debt	513	9,901	8	—	9,909
	Preferred Stock	—		—		1,140	—	1,140	Preferred Member Units	221	2,850	—	—	2,850
	Common Stock	—		1,990		—	1,910	80	Preferred Member Units	6	150	—	—	150

Houston Plating and Coatings, LLC	Member Units	(23	)	8,440		433	4,493	4,380
Houston Plating and									8% Unsecured Convertible Debt	42	—	3,000	—	3,000
Coatings, LLC									Member Units	3	4,000	980	—	4,980

I-45 SLF LLC	Member units	1,196		7,200		5,386	—	12,586	Member Units	1,435	14,586	2,579	—	17,165

Indianhead Pipeline	12% Secured Debt	609		5,853		95	675	5,273	12% Secured Debt	887	5,079	562	449	5,192
Services, LLC	Preferred Member Units	31		2,302		368	—	2,670	Preferred Member Units	198	2,677	198	—	2,875
	Warrants	—		—		—	—	—	Warrants	—	—	—	—	—
	Member Units	—		—		—	—	—	Member Units	—	—	—	—	—

KBK Industries, LLC	10% Secured Debt	23		—		1,000	300	700
	12.5% Secured Debt	572		5,900		11	25	5,886
L.F. Manufacturing Holdings, LLC									Member Units	—	1,380	—	—	1,380

Meisler Operating LLC									LIBOR Plus 8.50% (Floor 1.00%)	388	—	16,618	—	16,618
	Member Units	(8	)	3,680		—	590	3,090	Member Units	—	—	3,200	—	3,200

L.F. Manufacturing Holdings, LLC	Member Units	—		1,485		—	105	1,380

MPS Denver, LLC	Member Units	—		1,130		124	1,254	—

OnAsset Intelligence, Inc.	12% PIK Secured Debt	378		4,006		378	—	4,384	12% PIK Secured Debt	277	4,519	277	—	4,796
									10% PIK Secured Debt	—	—	45	—	45
	Preferred Stock	—		1,380		—	1,380	—	Preferred Stock	—	—	—	—	—
	Warrants	—		—		—	—	—	Warrants	—	—	—	—	—

OPI International Ltd.	10% Unsecured Debt	36		473		—	—	473	10% Unsecured Debt	16	473	—	473	—
	Common Stock	—		3,200		—	—	3,200	Common Stock	—	1,600	—	1,600	—

PCI Holding Company, Inc.	12% Secured Debt	946		—		13,000	—	13,000	12% Secured Debt	1,112	13,000	320	20	13,300
	Preferred Stock	450		4,887		450	297	5,040	Preferred Stock	354	5,370	354	854	4,870

Radial Drilling Services Inc.	12% Secured Debt	20		1,500		2,461	3,961	—
	Warrants	—		—		758	758	—	Preferred Stock	—	—	2,610	—	2,610

Rocaceia, LLC (Quality Lease	12% Secured Debt	—		250		—	—	250
and Rental Holdings, LLC)	Preferred Member Units	—		—		—	—	—

Samba Holdings, Inc.	12.5% Secured Debt	1,100		24,662		110	24,772	—
	Common Stock	—		30,220		—	30,220	—
Rocaceia, LLC (Quality
Lease and Rental									12% Secured Debt	—	250	—	—	250
Holdings, LLC)									Preferred Member Units	—	—	—	—	—

Tin Roof Acquisition Company	12% Secured Debt	1,304		13,807		45	313	13,539	12% Secured Debt	832	13,385	32	336	13,081
	Class C Preferred Stock	193		2,477		193	—	2,670	Class C Preferred Stock	139	2,738	140	—	2,878

UniTek Global Services, Inc.	LIBOR Plus 7.50% (Floor 1.00%)	192		2,812		1	—	2,813	LIBOR Plus 8.50% (Floor 1.00%)	290	5,021	3,517	3	8,535
	LIBOR Plus 8.50% (Floor 1.00%)	86		1,255		7	447	815	LIBOR Plus 8.50% (Floor 1.00%)	29	824	3	690	137
	15% PIK Unsecured Debt	82		638		76	—	714	15% PIK Unsecured Debt	62	745	57	—	802
	Preferred Stock	495		5,540		660	—	6,200	Preferred Stock	889	6,410	888	458	6,840
	Common Stock	—		—		2,580	—	2,580	Preferred Stock	78	—	2,597	—	2,597

Universal Wellhead Services Holdings, LLC	Class A Preferred Units	—		3,000		—	1,840	1,160

Valley Healthcare Group, LLC	LIBOR Plus 12.50% (Floor 0.50%)	1,069		10,297		425	100	10,622
	Preferred Member Units	—		—		1,600	—	1,600	Common Stock	—	3,010	—	490	2,520

Volusion, LLC	10.5% Secured Debt	1,591		16,199		192	—	16,391
	Preferred Member Units	—		14,000		—	—	14,000
	Warrants	—		1,400		—	—	1,400
Universal Wellhead Services									Preferred Member Units	—	720	—	—	720
Holdings, LLC									Member Units	—	610	—	—	610

Valley Healthcare									LIBOR Plus 12.50% (Floor 0.50%)	873	12,844	13	270	12,587
Group, LLC									Preferred Member Units	—	1,600	—	—	1,600

Table of Contents

Company

Investment(1)
Amount of
Interest, Fees or
Dividends
Credited to
Income(2) December 31,
2015
Fair Value Gross
Additions(3) Gross
Reductions(4) September 30,
2016
Fair Value
Other

Amounts related to investments transferred to or from other 1940 Act classification during the period
(345 ) (15,530 ) — — —

$ 27,095 $ 350,519 $ 93,318 $ 106,494 $ 352,873

Company	Investment(1)	Amount of Interest, Fees or Dividends Credited to Income(2)		December 31, 2016 Fair Value		Gross Additions(3)		Gross Reductions(4)		June 30, 2017 Fair Value

Volusion, LLC	11.5% Secured Debt		1,337		15,298		333		423		15,208
	Preferred Member Units		—		14,000		—		—		14,000
	Warrants		—		2,576		—		216		2,360

Other
Amounts related to investments transferred to or from other 1940 Act classification during the period			220		9,919		—		—		—

		$	19,468	$	375,948	$	68,212	$	65,753	$	368,488

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~~period end is included in "Amounts from investments transferred from other 1940 Act classifications during the ~~period".~~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.

Table of Contents

Schedule 12-14

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments In and Advances to Affiliates
June 30, 2016
(dollars in thousands)
(Unaudited)

Company	Investment(1)

Control Investments
*Majority-owned investments*
Café Brazil, LLC	Member Units	312		7,330	—		760	6,570

CMS Minerals LLC	Member Units	62		—	4,083		95	3,988
	Preferred Member Units	1,117		6,914	—		2,866	4,048

Gamber-Johnson	LIBOR Plus 11.00% (Floor 1.00%)	261		—	19,791		—	19,791
Holdings, LLC	Member Units	304		—	12,124		—	12,124

GRT Rubber	LIBOR Plus 9.00% (Floor 1.00%)	766		15,988	134		2,429	13,693
Technologies LLC	Member Units	223		15,580	2,450		—	18,030

Hydratec, Inc.	Common Stock	911		14,950	810		—	15,760

IDX Broker, LLC	12.5% Secured Debt	730		11,350	10		10	11,350
	Member Units	—		6,440	—		—	6,440

Jensen Jewelers of	Prime Plus 6.75% (Floor 2.00%)	240		4,055	515		215	4,355
Idaho, LLC	Member Units	139		4,750	450		—	5,200

Lamb's Venture, LLC	LIBOR Plus 5.75%	3		—	351		1	350
	11% Secured Debt	435		7,962	—		227	7,735
	Preferred Equity	—		328	72		—	400
	Member Units	10		4,690	1,050		—	5,740
	9.5% Secured Debt	43		919	—		25	894
	Member Units	27		1,240	380		—	1,620

Lighting Unlimited, LLC	8% Secured Debt	61		1,514	—		—	1,514
	Preferred Equity	—		430	—		—	430
	Warrants	—		40	—		10	30
	Member Units	(81	)	350	—		90	260

Mid-Columbia Lumber	10% Secured Debt	88		1,750	—		—	1,750
Products, LLC	12% Secured Debt	237		3,900	—		—	3,900
	Member Units	40		2,580	—		160	2,420
	9.5% Secured Debt	42		881	—		22	859
	Member Units	10		550	—		—	550

MSC Adviser I, LLC	Member Units	1,316		27,272	—		360	26,912

Mystic Logistics	12% Secured Debt	593		9,448	20		108	9,360
Holdings, LLC	Common Stock	16		5,970	—		580	5,390

NRP Jones, LLC	6% Current / 6% PIK Secured Debt	940		12,948	405		—	13,353
	Warrants	—		450	—		320	130
	Member Units	—		1,480	—		1,070	410

PPL RVs, Inc.	11.1% Secured Debt	545		9,710	—		—	9,710
	Common Stock	—		9,770	1,420		—	11,190

Principle	12% Secured Debt	267		4,060	21		21	4,060
Environmental, LLC	12% Current / 2% PIK Secured Debt	236		3,310	35		1	3,344
	Preferred Member Units	—		6,060	—		1,460	4,600
	Warrants	—		310	—		290	20

Quality Lease Service, LLC	8% PIK Secured Debt	253		6,538	252		—	6,790
	Member Units	—		2,638	—		—	2,638

Southern RV, LLC	13% Secured Debt	157		11,400	104		11,504	—
	Member Units	957		15,100	(1,417	)	13,683	—
	13% Secured Debt	45		3,250	30		3,280	—
	Member Units	—		1,200	—		1,200	—

Table of Contents

Company	Investment(1)	Amount of Interest, Fees or Dividends Credited to Income(2)		December 31, 2015 Fair Value		Gross Additions(3)		Gross Reductions(4)		June 30, 2016 Fair Value

The MPI Group, LLC	9% Secured Debt		134		2,921		—		—		2,921
	Series A Preferred Units		—		690		—		190		500
	Warrants		—		—		—		—		—
	Member Units		63		2,230		70		—		2,300

Travis Acquisition LLC	12% Secured Debt		212		3,513		10		278		3,245
	Member Units		50		14,480		5,890		—		20,370

Uvalco Supply, LLC	9% Secured Debt		53		1,314		—		216		1,098
	Member Units		90		5,460		250		—		5,710

Vision Interests, Inc.	13% Secured Debt		209		3,052		10		107		2,955
	Series A Preferred Stock		—		3,550		—		180		3,370
	Common Stock		—		210		—		70		140

Ziegler's NYPD, LLC	6.5% Secured Debt		34		992		1		—		993
	12% Secured Debt		28		500		—		200		300
	14% Secured Debt		198		2,750		—		—		2,750
	Warrants		—		50		160		—		210
	Preferred Member Units		—		3,400		130		—		3,530

*Other controlled investments*
Access Media Holdings, LLC	5.00% Current / 5.00% PIK Secured Debt	$	1,115	$	20,380	$	545	$	485	$	20,440
	Preferred Member Units		—		2,000		1,305		2,525		780
	Member Units		—		—		—		—		—

AmeriTech College, LLC	10% Secured Debt		51		1,003		1		—		1,004
	10% Secured Debt		153		3,025		—		—		3,025
	Preferred Member Units		57		2,291		—		—		2,291

ASC Interests, LLC	11% Secured Debt		140		2,500		8		258		2,250
	Member Units		35		2,230		450		—		2,680

Bond-Coat, Inc.	12% Secured Debt		720		11,596		17		17		11,596
	Common Stock		—		9,140		—		4,050		5,090

CBT Nuggets, LLC	Member Units		4,425		42,120		7,980		—		50,100

Datacom, LLC	8% Secured Debt		17		—		450		—		450
	5.25% Current / 5.25% PIK Secured Debt		566		10,970		210		450		10,730
	Class A Preferred Member Units		—		1,181		89		—		1,270
	Class B Preferred Member Units		—		5,079		—		2,485		2,594

Garreco, LLC	14% Secured Debt		424		5,739		13		—		5,752
	Member Units		5		1,270		—		180		1,090

Gulf Manufacturing, LLC	9% PIK Secured Debt		35		777		—		—		777
	Member Units		—		13,770		—		5,000		8,770

Gulf Publishing	12.5% Secured Debt		322		—		9,904		—		9,904
Holdings, LLC	Member Units		62		—		3,124		—		3,124

Harrison Hydra-Gen, Ltd.	9% Secured Debt		9		5,010		—		5,010		—
	Preferred Stock		2		1,361		2		1,363		—
	Common Stock		79		2,600		430		—		3,030

Hawthorne Customs and	Member Units		12		460		—		180		280
Dispatch Services, LLC	Member Units		81		2,220		—		—		2,220

HW Temps LLC	LIBOR Plus 9.50% (Floor 1.00%)		540		9,884		8		—		9,892
	Preferred Member Units		362		3,942		1,008		—		4,950

Indianapolis Aviation	15% Secured Debt		240		3,100		5		5		3,100
Partners, LLC	Warrants		—		2,540		—		—		2,540

Marine Shelters
Holdings, LLC (LoneStar	12% PIK Secured Debt		578		8,870		630		431		9,069
Marine Shelters)	Preferred Member Units		—		4,881		—		1,781		3,100

MH Corbin Holding LLC	10% Secured Debt		710		13,869		14		350		13,533
	Preferred Member Units		70		6,000		—		—		6,000

NAPCO Precast, LLC	Prime Plus 2.00% (Floor 7.00%)		154		4,005		—		1,292		2,713
	18% Secured Debt		425		4,924		—		972		3,952
	Member Units		357		8,590		1,180		—		9,770

Table of Contents

Company	Investment(1)	Amount of Interest, Fees or Dividends Credited to Income(2)		December 31, 2015 Fair Value		Gross Additions(3)		Gross Reductions(4)		June 30, 2016 Fair Value

NRI Clinical Research, LLC	14% Secured Debt		347		4,539		79		108		4,510
	Warrants		—		340		60		—		400
	Member Units		—		1,342		140		—		1,482

OMi Holdings, Inc.	Common Stock		—		13,640		1,940		—		15,580

Pegasus Research Group, LLC (Televerde)	Member Units		314		6,840		1,780		—		8,620

River Aggregates, LLC	Zero Coupon Secured Debt		34		556		35		—		591
	Member Units		230		3,830		770		—		4,600
	Member Units		—		2,360		80		—		2,440

SoftTouch Medical	LIBOR Plus 9.00% (Floor 1.00%)		410		8,010		65		425		7,650
Holdings LLC	Member Units		115		5,710		2,860		—		8,570

Other
Amounts related to investments transferred to or from other 1940 Act classification during the period			—		—		—		—		—

		$	25,572	$	555,011	$	84,793	$	69,395	$	570,409



Affiliate Investments
AFG Capital Group, LLC	11% Secured Debt	$	765	$	12,790	$	36	$	—	$	12,826
	Warrants		—		490		80		—		570
	Member Units		—		2,020		310		—		2,330

Barfly Ventures, LLC	12% Secured Debt		678		4,042		908		94		4,856
	Options		—		—		470		—		470
	Warrants		—		473		—		233		240

BBB Tank Services, LLC	12% Current / 1% PIK Secured Debt		164		—		3,967		—		3,967
	Member Units		—		—		800		—		800

Boss Industries, LLC	Preferred Member Units		111		2,586		86		112		2,560

Bridge Capital Solutions	13% Secured Debt		499		6,890		110		—		7,000
Corporation	Warrants		—		1,300		80		—		1,380

Buca C, LLC	LIBOR Plus 7.25% (Floor 1.00%)		1,094		25,299		231		2,319		23,211
	Preferred Member Units		109		3,711		1,829		—		5,540

CAI Software LLC	12% Secured Debt		269		4,661		9		650		4,020
	Member Units		22		1,000		740		—		1,740

CapFusion, LLC	13% Secured Debt		529		—		9,933		—		9,933
	Warrants		—		—		1,200		—		1,200

Chandler Signs	12% Secured Debt		316		—		4,458		—		4,458
Holdings, LLC	Class A Units		78		—		1,500		—		1,500

Condit Exhibits, LLC	Member Units		85		1,010		450		—		1,460

Congruent Credit	LP Interests (Fund II)		400		2,834		—		1,519		1,315
Opportunities Funds	LP Interests (Fund III)		459		12,024		2,616		—		14,640

Daseke, Inc.	12% Current / 2.5% PIK Secured Debt		1,608		21,253		310		40		21,523
	Common Stock		—		22,660		—		—		22,660

Dos Rios Partners	LP Interests (Fund)		—		2,031		1,070		619		2,482
	LP Interests (Fund A)		—		648		340		317		671

Dos Rios Stone Products LLC	Class A Units		—		—		2,000		—		2,000

East Teak Fine Hardwoods, Inc.	Common Stock		21		860		—		—		860

East West Copolymer &	12% Secured Debt		597		9,463		14		—		9,477
Rubber, LLC	Warrants		—		50		—		—		50

EIG Fund Investments	LP Interests		99		718		2,062		—		2,780

EIG Traverse Co-Investment, L.P.	LP Interests		616		4,755		5,175		—		9,930

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Company	Investment(1)

Freeport Financial Funds	LP Interests (Fund)	202		6,045		—	346	5,699
	LP Interests (Fund III)	231		2,077		1,487	—	3,564

Gault Financial, LLC (RMB	10% Secured Debt	767		10,930		80	—	11,010
Capital, LLC)	Warrants	—		—		—	—	—

Glowpoint, Inc.	8% Secured Debt	14		397		1	398	—
	12% Secured Debt	560		8,929		11	1,303	7,637
	Common Stock	—		3,840		—	1,530	2,310

Guerdon Modular	LIBOR Plus 8.50% (Floor 1.00%)	19		(15	)	962	947	—
Holdings, Inc.	9% Current / 4% PIK Secured Debt	723		10,295		78	13	10,360
	Preferred Stock	—		—		1,140	—	1,140
	Common Stock	—		1,990		—	1,910	80

Houston Plating and Coatings, LLC	Member Units	(23	)	8,440		433	3,543	5,330

I-45 SLF LLC	Member units	778		7,200		3,106	—	10,306

Indianhead Pipeline	12% Secured Debt	411		5,853		63	449	5,467
Services, LLC	Preferred Member Units	24		2,302		273	—	2,575
	Warrants	—		—		—	—	—
	Member Units	—		—		—	—	—

KBK Industries, LLC	10% Secured Debt	8		—		600	—	600
	12.5% Secured Debt	379		5,900		7	7	5,900
	Member Units	(8	)	3,680		—	450	3,230

L.F. Manufacturing Holdings, LLC	Member Units	—		1,485		185	—	1,670

MPS Denver, LLC	Member Units	—		1,130		—	290	840

OnAsset Intelligence, Inc.	12% PIK Secured Debt	248		4,006		248	—	4,254
	Preferred Stock	—		1,380		—	—	1,380
	Warrants	—		—		—	—	—

OPI International Ltd.	10% Unsecured Debt	24		473		—	—	473
	Common Stock	—		3,200		—	—	3,200

PCI Holding Company, Inc.	12% Secured Debt	538		—		13,000	—	13,000
	Preferred Stock	291		4,887		291	939	4,239

Radial Drilling Services Inc.	12% Secured Debt	10		1,500		10	—	1,510
	Warrants	—		—		—	—	—

Rocaceia, LLC (Quality
Lease and Rental	12% Secured Debt	—		250		—	—	250
Holdings, LLC)	Preferred Member Units	—		—		—	—	—

Samba Holdings, Inc.	12.5% Secured Debt	1,100		24,662		110	24,772	—
	Common Stock	—		30,220		—	30,220	—

Tin Roof Acquisition	12% Secured Debt	869		13,807		30	209	13,628
Company	Class C Preferred Stock	127		2,477		126	—	2,603

UniTek Global Services, Inc.	LIBOR Plus 7.50% (Floor 1.00%)	131		2,812		—	1	2,811
	LIBOR Plus 8.50% (Floor 1.00%)	62		1,255		6	273	988
	15% PIK Unsecured Debt	54		638		50	—	688
	Preferred Stock	—		5,540		450	—	5,990
	Common Stock	—		—		2,100	—	2,100

Universal Wellhead Services Holdings, LLC	Class A Preferred Units	—		3,000		—	1,840	1,160

Valley Healthcare	LIBOR Plus 12.50% (Floor 0.50%)	707		10,297		420	—	10,717
Group, LLC	Preferred Member Units	—		—		1,600	—	1,600

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Company	Investment(1)	Amount of Interest, Fees or Dividends Credited to Income(2)			December 31, 2015 Fair Value			Gross Additions(3)		Gross Reductions(4)		June 30, 2016 Fair Value

Volusion, LLC	10.5% Secured Debt		1,056			16,199			126		—		16,325
	Preferred Member Units		��			14,000			—		—		14,000
	Warrants		—			1,400			—		—		1,400

Other
Amounts related to investments transferred to or from other 1940 Act classification during the period			(345	)		(15,530	)		—		—		—

		$	17,476		$	350,519		$	67,777	$	75,343	$	358,483

(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.

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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, ~~2015,~~2016, filed with the Securities and Exchange Commission (the "SEC") on February ~~26, 2016,~~24, 2017, 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 in the Annual Report on Form 10-K for the year ended December 31, ~~2015.~~2016.

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 ~~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 ~~("RIA")~~ under the Investment Advisers Act of 1940, as ~~amended (the "Advisers Act").~~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.

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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~~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 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~~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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The following tables provide a summary of our investments in the LMM, Middle Market and Private Loan portfolios as of ~~September~~June 30, ~~2016~~2017 and December 31, ~~2015~~2016 (this information excludes the Other Portfolio investments and the External Investment Manager which are discussed further below):

	As of September 30, 2016						As of June 30, 2017

	LMM(a)		Middle Market		Private Loan		LMM(a)		Middle Market		Private Loan
	(dollars in millions)						(dollars in millions)
Number of portfolio companies		71		81		45		75		68		49
Fair value	$	829.7	$	627.9	$	337.7	$	932.1	$	624.1	$	379.8
Cost	$	703.6	$	658.0	$	353.8	$	815.0	$	646.3	$	399.6
% of portfolio at cost—debt		68.8%		97.5%		94.3%		68.3%		96.7%		93.3%
% of portfolio at cost—equity		31.2%		2.5%		5.7%		31.7%		3.3%		6.7%
% of debt investments at cost secured by first priority lien		91.5%		87.6%		87.6%		95.9%		90.2%		90.1%
Weighted-average annual effective yield(b)		12.5%		8.4%		9.6%		12.0%		8.8%		9.5%
Average EBITDA(c)	$	6.2	$	101.6	$	21.1	$	4.8	$	92.9	$	22.3

(a): At ~~September~~June 30, 2017, 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 37%.
(b): The weighted-average annual effective yields were computed using the effective interest rates for all debt investments at cost as of June 30, 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 LMM portfolio companies, two Middle Market portfolio companies and three Private Loan portfolio companies, as EBITDA is

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not a meaningful valuation metric for our investments in these portfolio companies, and those portfolio companies whose primary purpose is to own real estate.

	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 ~~September 30,~~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~~weighted-average for the Middle Market and Private Loan portfolios. These calculations exclude certain portfolio companies, including five LMM portfolio companies, ~~three~~one Middle Market portfolio ~~companies~~company and three Private Loan portfolio companies, as EBITDA is not a meaningful valuation metric for our investments in these portfolio companies.

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~~(a)~~: ~~At December 31, 2015, we had equity ownership in approximately 96% 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, 2015, 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, three Middle Market portfolio companies and six 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.

As of ~~September~~June 30, ~~2016,~~2017, we had Other Portfolio investments in ten companies, collectively totaling approximately ~~$94.8~~$103.9 million in fair value and approximately ~~$101.3~~$111.3 million in cost basis and which comprised ~~4.9%~~approximately 5.0% of our Investment Portfolio (as defined in "—Critical Accounting Policies—Basis of Presentation" below) at fair value. As of December 31, ~~2015,~~2016, we had Other Portfolio investments in ten companies, collectively totaling approximately ~~$74.8~~$100.3 million in fair value and approximately ~~$75.2~~$107.1 million in cost basis and which comprised approximately ~~4.2%~~5.0% 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 ~~September~~June 30, 2017, there was no cost basis in this investment and the investment had a fair value of approximately $37.1 million, which comprised approximately 1.8% 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 ~~$30.1~~approximately $30.6 million, which comprised ~~1.6% of our Investment Portfolio at fair value. As of December 31, 2015, there was no cost basis in this investment and the investment had a fair value of $27.3 million, which comprised~~approximately 1.5% 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 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.

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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

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meet our investment criteria, and our ability to consummate the identified opportunities. The level of new investment activity, and associated interest and fee income, will directly impact future investment income. In addition, the level of dividends paid by portfolio companies and the portion of our portfolio debt investments on non-accrual status will directly impact future investment income. While we intend to grow our portfolio and our investment income over the long term, our growth and our operating results may be more limited during depressed economic periods. However, we intend to appropriately manage our cost structure and liquidity position based on applicable economic conditions and our investment outlook. The level of realized gains or losses and unrealized appreciation or depreciation on our investments will also fluctuate depending upon portfolio activity, economic conditions and the performance of our individual portfolio companies. The changes in realized gains and losses and unrealized appreciation or depreciation could have a material impact on our operating results.

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 ~~September~~June 30, ~~2016,~~2017, the ratio of our total operating expenses, excluding interest expense and the effect of certain non-recurring professional fees and other expenses as discussed further below in "Discussion and analysis of results of operations—Comparison of the three months ended June 30, 2017 and June 30, 2016", 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 June 30, 2016. For the six months ended June 30, 2017, the ratio of our total operating expenses, excluding interest expense and these non-recurring expenses, as a percentage of our quarterly average total assets was 1.5% on an annualized basis, compared to ~~1.3%~~1.4% on an annualized basis for the ~~three~~six months ended ~~September 30, 2015. For the nine months ended September~~June 30, 2016, the ratio of our total operating expenses, excluding interest expense, as a percentage of our quarterly average total assets was 1.4% on an annualized basis, which is consistent with the ratio on an annualized basis for the nine months ended September 30, 2015 and 1.5% for the year ended December 31, ~~2015.~~2016. Including the effect of these non-recurring expenses, the ratio for the three and six months ended June 30, 2017 would have been 1.7% and 1.6%, respectively, on an annualized basis.

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-publicly traded~~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 incentive fees otherwise earned. During the three months ended ~~September~~June 30, ~~2016~~2017 and ~~2015,~~2016, the External Investment Manager earned ~~$2.5~~$2.7 million and ~~$2.1~~$2.3 million, respectively, of management fees (net of fees waived, if any) under the sub-advisory agreement with HMS Adviser. During the ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 and ~~2015,~~2016, the External Investment Manager earned ~~$7.1~~$5.3 million and ~~$5.5~~$4.6 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

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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

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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.

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 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, but excludes all "Marketable securities and idle funds investments". "Marketable securities and idle funds investments" are classified as financial instruments and are reported separately on our consolidated balance sheets and consolidated schedules of investments due to the nature of such investments.Manager. Our results of operations for the three and ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 and ~~2015,~~2016, cash flows for the ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 and ~~2015,~~2016, and financial position as of ~~September~~June 30, ~~2016~~2017 and December 31, ~~2015,~~2016, are presented on a consolidated basis. The effects of all intercompany transactions between us and our consolidated subsidiaries have been eliminated in consolidation.

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 and ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 and ~~2015~~2016 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, ~~2015.~~2016. 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.

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 Company ("ASC 946"). Under regulations pursuant to Article 6 of Regulation S-X applicable to BDCs and ~~Accounting Standards Codification ("Codification" or "ASC")~~ASC 946,~~Financial Services—Investment Companies~~ ~~("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. Our consolidated financial statements also include the financial position and operating results for our wholly owned operating subsidiary, Main Street Capital Partners, LLC, ("MSCP"), as the wholly owned subsidiary provides all of its services directly or indirectly to Main Street or our portfolio companies. 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~~

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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 ~~September~~June 30, ~~2016~~2017 and December 31, ~~2015,~~2016, our Investment Portfolio valued at fair value represented approximately 96% of our total assets. We are required to report our investments at fair value. We follow the provisions of ~~FASB~~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" 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 ~~September~~June 30, ~~2016~~2017 and December 31, ~~2015~~2016 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 ~~fully impaired,~~ 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

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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 ~~interest~~ income over the life of the financing.

Payment-in-Kind ("PIK") Interest and Cumulative Dividends

We hold certain debt and preferred equity instruments in our Investment Portfolio that contain PIK interest and cumulative dividend provisions. The PIK interest, computed at the contractual rate specified in each debt agreement, is periodically added to the principal balance of the debt and is recorded as interest income. Thus, the actual collection of this interest may be deferred until the time of debt principal repayment. Cumulative dividends are recorded as dividend income, and any dividends in arrears are added to the balance of the preferred equity investment. The actual collection of these dividends in arrears may be deferred until such time as the preferred equity is redeemed or sold. To maintain RIC tax treatment (as discussed 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 PIK interest and dividends in arrears are no longer collectible. For the three months ended ~~September~~June 30, ~~2016~~2017 and ~~2015,~~2016, (i) approximately ~~4.0%~~3.0% and ~~2.2%~~4.1%, respectively, of our total investment income was attributable to PIK interest income not paid currently in cash and (ii) approximately 1.8% and ~~1.2%~~0.7%, respectively, of our total investment income was attributable to cumulative dividend income not paid currently in cash. For the ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 and ~~2015,~~2016, (i) approximately ~~3.7%~~3.2% and ~~2.1%~~3.6%, respectively, of our total investment income was attributable to PIK interest income not paid currently in cash and (ii) approximately ~~1.1%~~1.8% and ~~1.0%~~0.8%, 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~~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~~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~~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" requirements contained ~~in the RIC tax provisions~~

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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 income tax expense, or benefit, if any, and the related tax assets and liabilities, are reflected in our consolidated financial statements.

MSCP is included in our consolidated financial statements for financial reporting purposes. For tax purposes, MSCP has elected to be treated as a taxable entity, and therefore is not consolidated with MSCC for income tax purposes and 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 taxable income, or loss, of MSCP may differ from its book income, or loss, due to temporary book and tax timing differences and permanent differences. This income tax expense, or benefit, if any, and the related tax assets and liabilities, are reflected in our consolidated financial statements.

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 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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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.

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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 the first quarter of 2014, we began allocating costs to the External Investment Manager pursuant to the sharing agreement. Our total expenses for the three months ended ~~September~~June 30, ~~2016~~2017 and ~~2015~~2016 are net of expenses allocated to the External Investment Manager of ~~$1.2~~$1.6 million and ~~$1.1~~$1.4 million, respectively. Our total expenses for the ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 and ~~2015~~2016 are net of expenses allocated to the External Investment Manager of ~~$3.7~~$3.2 million and ~~$3.1~~$2.5 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 dividend income from the External Investment Manager. For the three months ended ~~September~~June 30, ~~2016~~2017 and ~~2015,~~2016, the total contribution to our net investment income was ~~$2.0~~$2.4 million and ~~$1.8~~$2.0 million, respectively. For the ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 and ~~2015,~~2016, the total contribution to our net investment income was ~~$5.8~~$4.6 million and ~~$4.7~~$3.8 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 ~~September~~June 30, ~~2016~~2017 and December 31, ~~2015~~2016 (this information excludes the Other Portfolio investments and the External Investment Manager).

Cost:

First lien debt	75.6%	75.8%	77.0%	76.1%
Equity	13.9%	13.5%	15.6%	14.5%
Second lien debt	8.5%	8.7%	5.9%	7.7%
Equity warrants	1.0%	0.9%	0.9%	1.1%
Other	1.0%	1.1%	0.6%	0.6%

	100.0%	100.0%	100.0%	100.0%

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Fair Value:

First lien debt	68.3%	66.1%	70.2%	68.7%
Equity	22.0%	24.9%	22.9%	22.6%
Second lien debt	8.0%	7.7%	5.6%	7.2%
Equity warrants	0.8%	0.6%	0.7%	0.9%
Other	0.9%	0.7%	0.6%	0.6%

	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

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see "Risk Factors—Risks Related to Our Investments" contained in our Form 10-K for the fiscal year ended December 31, ~~2015~~2016 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.
•: 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.

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The following table shows the distribution of our LMM portfolio investments on the 1 to 5 investment rating scale at fair value as of ~~September~~June 30, ~~2016~~2017 and December 31, ~~2015:~~2016:

	As of September 30, 2016				As of December 31, 2015				As of June 30, 2017				As of December 31, 2016

Investment Rating	Investments at Fair Value		Percentage of Total Portfolio		Investments at Fair Value		Percentage of Total Portfolio		Investments at Fair Value		Percentage of Total Portfolio		Investments at Fair Value		Percentage of Total Portfolio
			(dollars in thousands)								(dollars in thousands)
1	$	247,888		29.8%	$	332,606		38.6%	$	244,920		26.3%	$	253,420		28.4%
2		192,089		23.2%		143,268		16.6%		205,710		22.0%		258,085		28.9%
3		294,020		35.4%		277,160		32.1%		389,454		41.8%		294,807		33.0%
4		91,061		11.0%		107,926		12.5%		79,028		8.5%		75,433		8.5%
5		4,634		0.6%		1,750		0.2%		12,962		1.4%		10,847		1.2%

Total	$	829,692		100.0%	$	862,710		100.0%	$	932,074		100.0%	$	892,592		100.0%

Based upon our investment rating system, the weighted-average rating of our LMM portfolio was approximately 2.4 and 2.3 as of ~~September~~June 30, ~~2016~~2017 and ~~2.2 as of~~ December 31, ~~2015.~~2016, respectively.

As of ~~September~~June 30, ~~2016,~~2017, our total Investment Portfolio had five investments on non-accrual status, which comprised approximately ~~0.4%~~0.2% of its fair value and ~~2.8%~~2.6% of its cost. As of December 31, ~~2015,~~2016, our total Investment Portfolio had ~~six~~four investments on non-accrual status, which comprised approximately ~~0.4%~~0.6% of its fair value and ~~3.7%~~3.0% 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

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is likely that the financial results of ~~small-to~~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, ~~and~~ to an increase in defaults on our debt 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.

DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS

Comparison of the three months ended ~~September~~June 30, ~~2016~~2017 and ~~September~~June 30, ~~2015~~2016

	Three Months Ended September 30,						Net Change					Three Months Ended June 30,						Net Change

	2016			2015			Amount			%		2017			2016			Amount			%
	(dollars in thousands)											(dollars in thousands)
Total investment income	$	46,599		$	42,608		$	3,991			9%	$	50,271		$	42,902		$	7,369			17	%
Total expenses		(16,042	)		(14,747	)		(1,295	)		9%		(17,578	)		(15,254	)		(2,324	)		15	%

Net investment income		30,557			27,861			2,696			10%		32,693			27,648			5,045			18	%
Net realized gain (loss) from investments		4,286			(1,343	)		5,629
Net realized gain from investments													10,981			15,457			(4,476	)
Net change in net unrealized appreciation (depreciation) from:
Portfolio investments		8,376			(8,389	)		16,765					1,365			(10,585	)		11,950
SBIC debentures and marketable securities and idle funds		(566	)		(698	)		132					(36	)		164			(200	)

Total net change in net unrealized appreciation (depreciation)		7,810			(9,087	)		16,897					1,329			(10,421	)		11,750
Income tax benefit		528			3,237			(2,709	)
Income tax provision													(2,174	)		(1,773	)		(401	)

Net increase in net assets resulting from operations	$	43,181		$	20,668		$	22,513			109%	$	42,829		$	30,911		$	11,918			39	%

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	Three Months Ended September 30,				Net Change				Three Months Ended June 30,				Net Change

	2016		2015		Amount		%		2017		2016		Amount		%
	(dollars in thousands, except per share amounts)								(dollars in thousands, except per share amounts)
Net investment income	$	30,557	$	27,861	$	2,696		10%	$	32,693	$	27,648	$	5,045		18	%
Share-based compensation expense		2,137		1,651		486		29%		2,798		2,251		547		24	%

Distributable net investment income(a)	$	32,694	$	29,512	$	3,182		11%	$	35,491	$	29,899	$	5,592		19	%



Distributable net investment income per share—Basic and diluted(a)	$	0.62	$	0.59	$	0.03		5%
Net investment income per share—
Basic and diluted									$	0.58	$	0.54	$	0.04		7	%



Distributable net investment income per share—
Basic and diluted(a)									$	0.63	$	0.58	$	0.05		9	%

(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.

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Investment Income

For the three months ended ~~September~~June 30, ~~2016,~~2017, total investment income was ~~$46.6~~$50.3 million, a 9%17% increase over the ~~$42.6~~$42.9 million of total investment income for the corresponding period of ~~2015.~~2016. This comparable period increase was principally attributable to (i) a ~~$1.4~~$5.6 million increase in interest income primarily related to higher average levels of portfolio debt investments and increased activities involving existing Investment Portfolio debt investments, (ii) a ~~$2.8~~$1.4 million increase in fee income, and (iii) a $0.4 million increase in dividend income from Investment Portfolio equity investments. The ~~$4.0~~$7.4 million increase in total investment income in the three months ended ~~September~~June 30, ~~2016~~2017 includes ~~the impact of~~ an increase of ~~$0.3~~$2.5 million ~~primarily~~ related to higher accelerated prepayment, repricing and ~~repricing~~other activity for certain Middle Market and Private Loan Investment Portfolio debt investments when compared to the same period in 2015 and an increase of $1.7 million related to dividend income activity from portfolio companies that is considered to be less consistent on a recurring basis or non-recurring during the period when compared to the same period in 2015.2016.

Expenses

For the three months ended ~~September~~June 30, ~~2016,~~2017, total expenses increased to ~~$16.0~~$17.6 million from ~~$14.7~~$15.3 million for the corresponding period of ~~2015.~~2016. This comparable period increase in operating expenses was principally attributable to (i) a $0.9 million increase in general and administrative expenses, including approximately $0.3 million 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, (ii) a $0.6 million increase in compensation expense related to increases in the number of personnel, base compensation levels and incentive compensation accruals, ~~(ii)~~(iii) a $0.5 million increase in share-based compensation expense and ~~(iii)~~(iv) a ~~$0.3~~$0.5 million increase in interest expense, primarily due to ~~an increase in~~the higher average interest ~~expense~~rate and balance outstanding on ~~the~~our Credit Facility in the three months ended ~~September~~June 30, ~~2016,~~2017, with these increases partially offset by a ~~$0.1~~$0.3 million increase in the expenses allocated to the External Investment Manager, ~~(see further discussion in "Overview"),~~ in each case when compared to the same period in the prior year. For the three months ended ~~September~~June 30, ~~2016,~~2017, the ratio of our total operating expenses, excluding interest expense and the effect of the non-recurring professional fees and other expenses discussed above, as a percentage of our quarterly average total assets was ~~1.5%~~1.6% on an annualized basis, compared to ~~1.3%~~1.4% on an annualized basis for the three months ended ~~September~~June 30, ~~2015~~2016 and ~~1.4%~~1.5% for the year ended December 31, ~~2015.~~

~~Table~~2016. Including the effect of ~~Contents~~the non-recurring expenses, the ratio for the three months ended June 30, 2017 was 1.7% on an annualized basis.

Net Investment Income

Net investment income for the three months ended ~~September~~June 30, ~~2016~~2017 was ~~$30.6~~$32.7 million, or ~~a 10%~~an 18% increase, compared to net investment income of ~~$27.9~~$27.6 million for the corresponding period of ~~2015.~~2016. The increase in net investment income was principally attributable to the increase in total investment income, partially offset by higher operating expenses as discussed above.

Distributable Net Investment Income

For the three months ended ~~September~~June 30, ~~2016,~~2017, distributable net investment income increased ~~11%~~19% to ~~$32.7~~$35.5 million, or ~~$0.62~~$0.63 per share, compared with ~~$29.5~~$29.9 million, or ~~$0.59~~$0.58 per share, in the corresponding period of ~~2015.~~2016. 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 ~~September~~June 30, ~~2016~~2017 reflects (i) an increase of approximately ~~$0.01~~$0.04 per share from the comparable period in ~~2015~~2016 attributable to the net increase in the comparable levels of accelerated prepayment, repricing and ~~repricing~~other activity for certain Investment Portfolio debt investments (ii) an increase of approximately $0.03 per share from the comparable period in 2015 attributable to the increase in dividend income that is considered to be less consistent on a recurring basis or non-recurring and ~~(iii)~~(ii) a greater number of average shares outstanding compared to the corresponding period in ~~2015~~2016 primarily due to shares issued through the ATM Program (as defined in "—Liquidity and Capital Resources—Capital Resources" below), shares

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issued pursuant to our equity incentive plans and shares issued pursuant to our ~~restricted stock plan and~~ dividend reinvestment plan.

Net Increase in Net Assets Resulting from Operations

The net increase in net assets resulting from operations during the three months ended ~~September~~June 30, ~~2016~~2017 was ~~$43.2~~$42.8 million, or ~~$0.82~~$0.76 per share, compared with ~~$20.7~~$30.9 million, or ~~$0.41~~$0.60 per share, during the three months ended ~~September~~June 30, ~~2015.~~2016. This ~~$22.5~~$11.9 million increase from the same period in the prior year ~~period~~ was primarily the result of (i) ~~a $16.9~~an $11.9 million ~~increase~~improvement in net change in unrealized appreciation (depreciation) from portfolio investments, including the impact of accounting reversals relating to realized gains/income (losses), from net unrealized depreciation of ~~$9.1~~$10.6 million for the three months ended ~~September~~June 30, ~~2015~~2016 to net unrealized appreciation of ~~$7.8~~$1.3 million for the three months ended ~~September~~June 30, ~~2016,~~2017 and (ii) a $5.6 million increase in the net realized gain (loss) from investments from a net realized loss of $1.3 million during the three months ended September 30, 2015 to a net realized gain of $4.3 million for the three months ended September 30, 2016 and (iii) a $2.7$5.0 million increase in net investment income as discussed above, with these increases partially offset by (i) a ~~$2.7~~$4.5 million decrease in the ~~income tax benefit for the three months ended September 30, 2016. The~~net realized gain from investments to a total net realized gain of ~~$4.3~~$11.0 million for the three months ended ~~September~~June 30, ~~2016~~2017 and (ii) a $0.4 million increase in the income tax provision. The net realized gain from investments of $11.0 million for the three months ended June 30, 2017 was primarily the result of (i) ~~the net~~ realized ~~gain on the exit~~gains of ~~three LMM investments totaling $13.2 million and (ii) the net realized gain of $1.2~~$6.8 million due to activity in our Other Portfolio, ~~partially offset by (i)~~(ii) the realized ~~loss~~gain of ~~$7.3~~$2.4 million on the exit of a ~~Private Loan~~LMM investment, (iii) the realized gain of $1.4 million on the partial exit of a LMM investment and ~~(ii) the~~(iv) realized ~~loss~~gains of ~~$2.6~~$0.6 million ~~related~~due to ~~the restructuring of a~~activity in our Middle Market ~~investment.~~

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The following table provides a summary of the total net unrealized appreciation of ~~$7.8~~$1.3 million for the three months ended ~~September~~June 30, ~~2016:~~2017:

	Three Months Ended September 30, 2016													Three Months Ended June 30, 2017

	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) depreciation recognized in prior periods due to net realized (gains)/losses recognized during period	$	(10.2	)	$	2.6	$	7.3	$	(1.2	)	$	(1.5	)
Accounting reversals of net unrealized appreciation recognized in prior periods due to net realized gains/income (losses) recognized during the current period														$	(3.0	)	$	(0.5	)	$	(0.7	)	$	(6.4	)	$	(10.6	)
Net unrealized appreciation (depreciation) relating to portfolio investments		(3.3	)		6.7		0.5		6.0			9.9			5.0			(1.7	)		0.4			8.2			11.9

Total net change in unrealized appreciation (depreciation) relating to portfolio investments	$	(13.5	)	$	9.3	$	7.8	$	4.8		$	8.4		$	2.0		$	(2.2	)	$	(0.3	)	$	1.8		$	1.3



Net unrealized appreciation relating to marketable securities												0.2
Unrealized depreciation relating to SBIC debentures(c)												(0.8	)														—

Total net change in unrealized appreciation (depreciation)											$	7.8
Total net change in unrealized appreciation																										$	1.3

(a): LMM includes unrealized appreciation on 20 LMM portfolio investments and unrealized depreciation on 1817 LMM portfolio investments.
(b): Other includes ~~$3.2~~$4.6 million of net unrealized appreciation relating to the Other Portfolio and $3.6 million of unrealized appreciation relating to the External Investment ~~Manager and $2.8 million of net unrealized appreciation relating to the Other Portfolio.~~Manager.
(c): Relates to unrealized ~~appreciation~~depreciation on the SBIC debentures ~~issued~~held by ~~our wholly-owned subsidiary~~ MSC II which are accounted for on a fair value basis.

The income tax ~~benefit~~provision for the three months ended ~~September~~June 30, ~~2016~~2017 of ~~$0.5~~$2.2 million principally consisted of a deferred tax ~~benefit~~provision of ~~$1.4~~$1.7 million, which is primarily the result of the net activity relating to our portfolio investments held in our Taxable Subsidiaries, including changes in net

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operating loss carryforwards, changes in net unrealized appreciation/depreciation and other temporary book-tax differences, ~~partially offset by $0.9 million of~~and other current tax expense ~~primarily~~of $0.4 million related to an(i) a $0.2 million accrual for excise tax on our estimated undistributed taxable ~~income.~~

~~Table~~income and (ii) other current tax expense of ~~Contents~~$0.2 million related to accruals for U.S. federal and state income taxes.

Comparison of the ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 and ~~September~~June 30, ~~2015~~2016

	Nine Months Ended September 30,						Net Change						Six Months Ended June 30,						Net Change

	2016			2015			Amount			%			2017			2016			Amount			%
	(dollars in thousands)												(dollars in thousands)
Total investment income	$	131,508		$	121,096		$	10,412			9%		$	98,160		$	84,909		$	13,251			16	%
Total expenses		(46,137	)		(42,540	)		(3,597	)		8%			(34,300	)		(30,096	)		(4,204	)		14	%

Net investment income		85,371			78,556			6,815			9%			63,860			54,813			9,047			17	%
Net realized gain (loss) from investments		33,347			(9,037	)		42,384
Net realized gain from investments														38,549			29,060			9,489
Net realized loss from SBIC debentures														(5,217	)		—			(5,217	)
Net change in net unrealized appreciation (depreciation) from:
Portfolio investments		(29,738	)		21,716			(51,454	)					(20,726	)		(38,114	)		17,388
SBIC debentures and marketable securities and idle funds		909			(1,344	)		2,253						5,629			1,475			4,154

Total net change in net unrealized appreciation (depreciation)		(28,829	)		20,372			(49,201	)
Income tax benefit		1,018			7,004			(5,986	)
Total net change in net unrealized depreciation														(15,097	)		(36,639	)		21,542
Income tax benefit (provision)														(7,812	)		490			(8,302	)

Net increase in net assets resulting from operations	$	90,907		$	96,895		$	(5,988	)		(6	)%	$	74,283		$	47,724		$	26,559			56	%

	Nine Months Ended September 30,				Net Change				Six Months Ended June 30,				Net Change

	2016		2015		Amount		%		2017		2016		Amount		%
	(dollars in thousands, except per share amounts)								(dollars in thousands, except per share amounts)
Net investment income	$	85,371	$	78,556	$	6,815		9%	$	63,860	$	54,813	$	9,047		17	%
Share-based compensation expense		5,977		4,592		1,385		30%		5,067		3,840		1,227		32	%

Distributable net investment income(a)	$	91,348	$	83,148	$	8,200		10%	$	68,927	$	58,653	$	10,274		18	%



Distributable net investment income per share—Basic and diluted(a)	$	1.77	$	1.71	$	0.06		4%
Net investment income per share—
Basic and diluted									$	1.15	$	1.07	$	0.08		7	%



Distributable net investment income per share—
Basic and diluted(a)									$	1.24	$	1.15	$	0.09		8	%

(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.

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Investment Income

For the ~~nine~~six months ended ~~September~~June 30, ~~2016,~~2017, total investment income was ~~$131.5~~$98.2 million, a 9%16% increase over the ~~$121.1~~$84.9 million of total investment income for the corresponding period of ~~2015.~~2016. This comparable period increase was principally attributable to (i) ~~a $4.2~~an $11.9 million increase in interest income primarily related to higher average levels of portfolio debt investments and increased activities involving existing Investment Portfolio debt investments and (ii) a ~~$7.7~~$1.7 million increase in fee income, partially offset by a $0.3 million decrease in dividend income from Investment Portfolio equity ~~investments, partially offset by (i) a $0.8 million decrease in fee income and (ii) a $0.7 million decrease in investment income from Marketable securities and idle funds~~ investments. The ~~$10.4~~$13.3 million increase in total investment income in the ~~nine~~

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six months ended ~~September~~June 30, ~~2016~~2017 includes an increase of ~~$1.7~~$5.2 million related to dividend income activity from portfolio companies that is considered to be less consistent on a recurring basis or non-recurring during the period when compared to the same period in 2015 and the impact of a decrease of $0.9 million primarily related to lowerhigher accelerated prepayment, repricing and ~~repricing~~other activity for certain Investment Portfolio debt investments when compared to the same period in ~~2015.~~2016.

Expenses

For the ~~nine~~six months ended ~~September~~June 30, ~~2016,~~2017, total expenses increased to ~~$46.1~~$34.3 million from ~~$42.5~~$30.1 million for the corresponding period of ~~2015.~~2016. This comparable period increase in operating expenses was principally attributable to (i) a $1.4 million increase in general and administrative expenses, including approximately $0.6 million 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, (ii) a $1.2 million increase in share-based compensation expense, (ii) a $1.3 million increase in interest expense, primarily due to an increase in interest expense on the Credit Facility generally due to the higher average balance outstanding in the nine months ended September 30, 2016, (iii) a ~~$1.0~~$1.2 million increase in compensation expense related to increases in the number of personnel, base compensation levels and incentive compensation accruals and (iv) a ~~$0.5~~$1.0 million increase in ~~general~~interest expense, primarily due to the higher average interest rate and ~~administrative expenses,~~balance outstanding on our Credit Facility in the six months ended June 30, 2017, with these increases partially offset by a $0.6 million increase in the expenses allocated to the External Investment Manager, in each case when compared to the same period in the prior year. For the ~~nine~~six months ended ~~September~~June 30, ~~2016,~~2017, the ratio of our total operating expenses, excluding interest expense and the non-recurring professional fees and other expenses discussed above, as a percentage of our quarterly average total assets was ~~1.4%~~1.5% on an annualized basis, ~~which is consistent with the ratio~~compared to 1.4% on an annualized basis for the ~~nine~~six months ended ~~September~~June 30, ~~2015~~2016, and 1.5% for the year ended December 31, ~~2015.~~2016. Including the effect of the non-recurring expenses, the ratio for the six months ended June 30, 2017 was 1.6% on an annualized basis.

Net Investment Income

Net investment income for the ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 was ~~$85.4~~$63.9 million, or a 9%17% increase, compared to net investment income of ~~$78.6~~$54.8 million for the corresponding period of ~~2015.~~2016. The increase in net investment income was principally attributable to the increase in total investment income, partially offset by higher operating expenses as discussed above.

Distributable Net Investment Income

For the ~~nine~~six months ended ~~September~~June 30, ~~2016,~~2017, distributable net investment income increased ~~10%~~18% to ~~$91.3~~$68.9 million, or ~~$1.77~~$1.24 per share, compared with ~~$83.1~~$58.7 million, or ~~$1.71~~$1.15 per share, in the corresponding period of ~~2015.~~2016. 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 ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 reflects (i) ~~a decrease~~an increase of approximately ~~$0.02~~$0.09 per share from the comparable period in ~~2015~~2016 attributable to the net ~~decrease~~increase in the comparable levels of accelerated prepayment, repricing and ~~repricing~~other activity for certain Investment Portfolio debt investments (ii) an increase of approximately $0.03 per share from the comparable period in 2015 attributable to the increase in dividend income that is considered to be less consistent on a recurring basis or non-recurring and ~~(iii)~~(ii) a greater number of average shares outstanding compared to the corresponding period in ~~2015~~2016 primarily due to ~~the March 2015 equity offering,~~ shares issued through the ATM Program, shares issued pursuant to our equity incentive plans and shares issued pursuant to our ~~restricted stock plan and~~ 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 ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 was ~~$90.9~~$74.3 million, or ~~$1.76~~$1.33 per share, compared with ~~$96.9~~$47.7 million, or ~~$1.99~~$0.94 per share, during the ~~nine~~six months ended ~~September~~June 30, ~~2015.~~2016. This ~~$6.0~~$26.6 million ~~decrease~~increase from the same period in the prior year ~~period~~ was primarily the result of (i) a ~~$49.2~~$21.5 million ~~decrease~~improvement in net change in unrealized appreciation (depreciation) from portfolio investments and SBIC debentures, including the impact of accounting reversals relating to realized gains/income (losses), from net unrealized ~~appreciation~~depreciation of ~~$20.4~~$36.6 million for the ~~nine~~

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six months ended ~~September~~June 30, ~~2015~~2016 to net unrealized depreciation of ~~$28.8~~$15.1 million for the ~~nine~~six months ended ~~September~~June 30, ~~2016 and~~2017, (ii) a ~~$6.0~~$9.5 million ~~decrease~~increase in the ~~income tax benefit~~net realized gain from investments to a total net realized gain from investments of $38.5 million for the ~~same period in the prior year, partially offset by (i)~~six months ended June 30, 2017 and (iii) a ~~$6.8~~$9.0 million increase in net investment income as discussed above, ~~and (ii) a $42.4~~with these increases partially offset by (i) an $8.3 million increase in the ~~net realized gain (loss)~~income tax provision from ~~investments from a net realized loss~~an income tax benefit of ~~$9.0 million during the nine months ended September 30, 2015 to a net realized gain of $33.3~~$0.5 million for the ~~nine~~six months ended ~~September~~June 30, ~~2016.~~2016 to an income tax provision of $7.8 million for the six months ended June 30, 2017 and (ii) a $5.2 million realized loss on the repayment of SBIC debentures outstanding at MSC II which had previously been accounted for on the fair value method of accounting. The net realized gain from investments of ~~$33.3~~$38.5 million for the ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 was primarily the result of (i) the net realized gain of ~~$56.3~~$24.7 million on the exit ~~five~~of three LMM investments, ~~and~~ (ii) ~~the net~~ realized ~~gain~~gains of ~~$2.8~~$9.3 million due to activity in our Other Portfolio, ~~partially offset by (i)~~(iii) the ~~net~~ realized ~~loss~~gain of ~~$9.6~~$2.6 million on the exit of ~~three~~one Private Loan ~~investments, (ii)~~investment, (iv) the ~~net~~realized gain of $1.4 million on the partial exit of one LMM investment and (v) realized gains of $0.9 million due to activity in our Middle Market portfolio. The realized loss of ~~$10.0~~$5.2 million on the repayment of SBIC debentures is related to the ~~restructuring~~previously recognized bargain purchase gain resulting from recording the MSC II debentures at fair value on the date of ~~three Middle Market investments, (iii)~~ the ~~net~~acquisition of MSC II in 2010. The effect of the realized loss is offset by the reversal of ~~$4.7 million~~all previously recognized unrealized depreciation on these SBIC debentures due to fair value adjustments since the ~~exit~~date of ~~two Middle Market investments and (iv)~~ the ~~net realized loss of $1.6 million on the exit of a Marketable securities and idle funds investment.~~acquisition.

The following table provides a summary of the total net unrealized depreciation of ~~$28.8~~$15.1 million for the ~~nine~~six months ended ~~September~~June 30, ~~2016:~~2017:

	Nine Months Ended September 30, 2016															Six Months Ended June 30, 2017

	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) depreciation recognized in prior periods due to net realized (gains)/losses recognized during period	$	(52.9	)	$	18.7		$	9.5		$	(2.7	)	$	(27.4	)
Accounting reversals of net unrealized appreciation recognized in prior periods due to net realized gains/income (losses) recognized during the current period																$	(23.0	)	$	(2.3	)	$	(2.1	)	$	(7.6	)	$	(35.0	)
Net change in unrealized appreciation (depreciation) relating to portfolio investments		1.9			1.5			(5.3	)		(0.4	)		(2.3	)		7.3			(3.6	)		(3.0	)		13.5			14.2

Total net change in unrealized appreciation (depreciation) relating to portfolio investments	$	(51.0	)	$	20.2		$	4.2		$	(3.1	)	$	(29.7	)	$	(15.7	)	$	(5.9	)	$	(5.1	)	$	5.9		$	(20.8	)



Net change in unrealized appreciation relating to marketable securities														1.7
Unrealized depreciation relating to SBIC debentures(c)						��								(0.8	)
Unrealized appreciation relating to SBIC debentures (c)																													5.7

Total net change in unrealized appreciation (depreciation)													$	(28.8	)
Total net change in unrealized depreciation																												$	(15.1	)

(a): LMM includes unrealized appreciation on 2926 LMM portfolio investments and unrealized depreciation on 2622 LMM portfolio investments.

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(b): Other includes ~~$3.3~~$7.0 million of net unrealized ~~depreciation~~appreciation relating to the Other Portfolio ~~offset by $2.9~~and $6.5 million of unrealized appreciation relating to the External Investment Manager.
(c): Relates to unrealized ~~depreciation~~appreciation on the SBIC debentures held by MSC II which are accounted for on a fair value ~~basis.~~basis and includes $6.0 million of accounting reversals resulting from the reversal of previously recognized unrealized depreciation recorded 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.

The income tax ~~benefit~~provision for the ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 of ~~$1.0~~$7.8 million principally consisted of a deferred tax ~~benefit~~provision of ~~$3.4~~$6.1 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, ~~partially offset by~~and other current tax expense of $1.7 million related to (i) a ~~$2.1~~$1.1 million accrual for excise

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tax on our estimated undistributed taxable income and (ii) other current tax expense of ~~$0.3~~$0.6 million related to accruals for U.S. federal and state income taxes.

Liquidity and Capital Resources

Cash Flows

For the ~~nine~~six months ended ~~September~~June 30, ~~2016,~~2017, we experienced a net ~~increase~~decrease in cash and cash equivalents in the amount of ~~$11.5~~approximately $2.7 million, which is the result of ~~$9.4~~approximately $15.7 million of cash provided by our operating activities and ~~$2.0~~approximately $18.3 million of cash ~~provided~~used by financing activities.

During the period, we generated ~~$9.4~~$15.7 million of cash from our operating activities, which resulted primarily from (i) cash flows we generated from the operating profits earned through our operating activities totaling ~~$79.7~~$56.2 million, which is our ~~$91.3~~$68.9 million of distributable net investment income, excluding the non-cash effects of the accretion of unearned income of ~~$7.1~~$9.1 million, payment-in-kind interest income of ~~$4.9~~$3.1 million, cumulative dividends of ~~$1.5~~$1.8 million and the amortization expense for deferred financing costs of ~~$1.9~~$1.3 million, (ii) cash uses totaling ~~$423.5~~$476.5 million ~~which primarily resulted from~~consisting of (a) $471.5 million for the funding of new portfolio company investments and settlement of accruals for portfolio investments existing as of December 31, ~~2015, which collectively total $420.0 million,~~2016, (b) ~~$3.0~~$5.0 million related to decreases in payables and accruals and ~~(c) $0.5 million from the purchase of Marketable securities and idle funds investments and~~ (iii) cash proceeds totaling ~~$353.2~~$436.0 million from (a) ~~$347.9 million~~$434.4 in cash proceeds from the sales and repayments of debt investments and sales of and return on capital of equity investments and (b) ~~$4.3~~$1.6 million ~~of cash proceeds from the sale of Marketable securities and idle funds investments and (c)~~related to decreases in other ~~assets of $1.0 million.~~assets.

During the ~~nine~~six months ended ~~September~~June 30, ~~2016, $2.0~~2017, $18.3 million in cash was ~~provided by~~used in financing activities, which principally consisted of (i) $64.3 million in net cash proceeds from the ATM Program (described below), (ii) $22.0 million in net cash proceeds from the Credit Facility and (iii) $6.0 million in cash proceeds from issuance of SBIC debentures, partially offset by (i) $86.7$72.5 million in cash dividends paid to stockholders, (ii) ~~$2.6~~$40.0 million in net repayments on the Credit Facility, (iii) $25.2 million in repayment of SBIC debentures, (iv) $4.3 million for purchases of vested restricted stock from employees to satisfy their tax withholding requirements upon the vesting of such restricted stock and ~~(iii) $1.0~~(v) $1.1 million for payment of deferred ~~loan~~issuance costs, SBIC debenture fees and other ~~costs.~~costs, partially offset by (i) $78.4 million in net cash proceeds from the ATM Program (described below) and (ii) $46.4 million in cash proceeds from issuance of SBIC debentures.

Capital Resources

As of ~~September~~June 30, ~~2016,~~2017, we had ~~$31.8~~$21.8 million in cash and cash equivalents and ~~$242.0~~$252.0 million of unused capacity under the Credit Facility, which we maintain to support our investment and operating activities. As of ~~September~~June 30, ~~2016,~~2017, our net asset value totaled ~~$1,144.4~~$1,282.7 million, or ~~$21.62~~$22.62 per share.

The Credit Facility, which provides additional liquidity to support our investment and operational activities, ~~includes total~~provides for commitments of $555.0 million from a diversified group of fourteen lenders and

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matures in September ~~2020.~~2021. The Credit Facility also 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.

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 ~~(0.53%~~(1.22% as of ~~September~~June 30, ~~2016)~~2017) plus (i) 1.875% (or the applicable base rate (Prime Rate of ~~3.50%~~4.25% as of ~~September~~June 30, ~~2016)~~2017) 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,

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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 ~~2020,~~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 ~~September~~June 30, ~~2016,~~2017, we had ~~$313.0~~$303.0 million in borrowings outstanding under the Credit Facility, the interest rate on the Credit Facility was ~~2.4%~~2.9% and we were in compliance with all financial covenants of the Credit Facility.

Due to each of the Funds' status as a licensed SBIC, we have the ability to issue, through the Funds, debentures guaranteed by the SBA at favorable interest rates and favorable terms and ~~conditions. In addition, in December 2015, the 2016 omnibus spending bill approved by Congress and signed into law by the President increased the~~conditions up to a maximum amount of ~~SBA-guaranteed debentures that affiliated~~$350.0 million through our three existing SBIC ~~funds can have outstanding from $225.0 million to $350.0 million. This new legislation allows us to issue additional SBIC debentures, subject to SBA approval, above~~licenses. During the $225.0 million that we had outstanding prior to the legislation. In August 2016, we received a license from the SBA to form and operate a third SBIC, which at the time provided us with up to an additional $125.0 million of additional long-term, fixed interest rate debt capital through the issuance of SBA-guaranteed debentures. During September 2016,six months ended June 30, 2017, we issued ~~$6.0~~$46.4 million of SBIC debentures and opportunistically prepaid $25.2 million of our existing SBIC debentures as part of an effort to manage the maturity dates of our oldest SBIC debentures, leaving ~~$119.0~~$88.8 million of remaining ~~capacity.~~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 ~~semi-annually.~~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 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. On ~~September~~June 30, ~~2016,~~2017, through our three wholly owned SBICs, we had ~~$231.0~~$261.2 million of outstanding SBIC debentures guaranteed by the SBA, which bear a weighted-average annual fixed interest rate of approximately ~~4.1%~~3.7%, paid ~~semi-annually,~~semiannually, and mature ten years from issuance. The first maturity related to our SBIC debentures ~~does not occur until 2017,~~occurs in 2019, and the weighted-average remaining duration is approximately ~~5.0~~5.8 years as of ~~September~~June 30, ~~2016.~~2017.

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.~~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 from time to time repurchase 6.125% Notes in

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accordance with the 1940 Act and the rules promulgated thereunder. As of ~~September~~June 30, ~~2016,~~2017, the outstanding balance of the 6.125% Notes was $90.7 million.

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.

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In November 2014, we issued $175.0 million in aggregate principal amount of the 4.50% Notes (the "4.50% Notes") at an issue price of 99.53%. The 4.50% 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 4.50% 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 4.50% Notes 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 bear interest at a rate of 4.50% per year payable ~~semi-annually~~semiannually on June 1 and December 1 of each year, beginning June 1, 2015. We may from time to time repurchase 4.50% Notes in accordance with the 1940 Act and the rules promulgated thereunder. As of ~~September~~June 30, ~~2016,~~2017, the outstanding balance of the 4.50% Notes was $175.0 million.

The indenture governing the 4.50% Notes (the "4.50% 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 4.50% 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 4.50% Notes Indenture.

During March 2015, we completed a follow-on public equity offering of 4,370,000 shares of common stock, including the underwriters' full exercise of their option to purchase 570,000 additional shares, resulting in total net proceeds, including exercise of the underwriters' option to purchase additional shares and after deducting underwriting discounts and estimated offering expenses payable by us, of approximately $127.8 million.

~~During~~ November 2015, we commenced 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~~six months ended ~~December 31, 2015,~~June 30, 2017, we sold ~~140,568~~2,104,424 shares of our common stock at a weighted-average price of ~~$31.98~~$37.72 per share and raised ~~$4.5~~$79.4 million of gross proceeds under the ATM Program. Net proceeds were ~~$4.3 million after commissions to the selling agents on shares sold and offering costs.~~

During the nine months ended September 30, 2016, we sold 1,996,793 shares of our common stock at a weighted-average price of $32.67 per share and raised $65.2 million of gross proceeds under the ATM Program. Net proceeds were $64.3$78.4 million after commissions to the selling agents on shares sold and offering costs. As of ~~September~~June 30, ~~2016,~~2017, sales transactions representing ~~30,804~~25,837 shares had not settled and are not included in shares issued and outstanding on the face of the consolidated balance sheet, but are included in the ~~weighted average~~weighted-average shares outstanding onin the consolidated statement of operations and in the shares used to calculate ~~our~~ net asset value per share. As of ~~September~~June 30, ~~2016, 362,639~~2017, there were 3,751,904 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, sales transactions representing 42,413 shares had not settled and were not included in shares issued and outstanding on the face of the consolidated balance sheet, but were included in the weighted-average shares outstanding in the consolidated statements of operations and in the shares used to calculate net asset value per share.

We anticipate that we will continue to fund our investment activities through existing cash and cash equivalents, ~~the liquidation~~cash flows generated through our ongoing operating activities, utilization of ~~Marketable securities and idle funds investments,~~available

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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 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

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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 shares of our common stock below the then current net asset value per share of our common stock at our ~~2016~~2017 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~~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 ~~recent public equity and historical debt offerings, our $555.0 million~~through the Credit Facility, ~~and the~~public debt issuances, leverage available ~~leverage~~ through the SBIC program and equity offerings, there is no assurance that debt or equity capital will be available to us in the future on favorable terms, or at all.

Recently Issued or Adopted Accounting Standards

In May 2014, the FASB issued ~~ASU~~Accounting Standards Update ("ASU") 2014-09,Revenue from Contracts with Customers (Topic 606). ASU ~~2014-9~~2014-09 supersedes the revenue recognition requirements under ASC ~~Topic~~ 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

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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~~. This ASU~~, which clarified guidance on assessing collectability, presenting sales tax, measuring noncash consideration, and certain transition matters. ~~The~~In December 2016, the FASB ~~tentatively decided to defer~~issued ASU No. 2016-20,Revenue from Contracts with Customers (Topic 606)—Technical Corrections and Improvements, which provided disclosure relief, and clarified the ~~effective date~~scope and application of the new revenue standard ~~for public entities under U.S. GAAP for one year. If finalized, the~~and related cost guidance. The new guidance will be 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

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after December 15, 2016. We expect to identify similar performance obligations under ASC 606 as compared with deliverables and separate units of account previously identified. As a result, we expect timing of our revenue recognition to remain the same.

In April 2015, the FASB issued ASU 2015-03,Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, which requires debt financing costs related to a recognized debt liability to be presented on the balance sheet as a direct deduction from the related debt liability, similar to the presentation of debt discounts. Additionally in August 2015, the FASB issued ASU 2015-15,Interest—Imputation of Interest: Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements, which provides further clarification on the same topic and states that the SEC would not object to the deferral and presentation of debt issuance costs as an asset and subsequent amortization of the deferred costs over the term of the line-of-credit arrangement, regardless of whether there are ~~currently evaluating~~any outstanding borrowings on the ~~impact~~line-of-credit arrangement. The Company adopted the guidance for debt arrangements that are not line-of-credit arrangements for the three months ended June 30, 2017. Comparative financial statements of prior interim and annual periods have been adjusted to apply the new method retrospectively. As a result of the adoption, the Company reclassified $7.9 million of deferred financing costs assets to a direct deduction from the related debt liability on the consolidated balance sheet as of December 31, 2016. The adoption of this ~~new accounting standard will have~~guidance had no impact on ~~our~~net assets, the consolidated ~~financial statements.~~statements of operations or the consolidated statements of cash flows.

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 presented 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 standard on our consolidated financial statements as none of our investments are measured through the use of the practical expedient.

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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. ~~The impact~~While we continue to assess the effect of adoption, we currently believe the ~~adoption~~most significant change relates to the recognition of ~~this~~a new ~~accounting standard~~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 is currently being evaluated.~~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.8.—Summary of Significant Accounting Policies—Share-based Compensation" in the notes to consolidated financial ~~statements~~statements.

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 our consolidated financial statements is 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.

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

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experience, the impacts of inflation on their operating results, including periodic escalations in their costs for labor, raw materials and ~~third party~~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 ~~September~~June 30, ~~2016,~~2017, we had a total of ~~$108.8~~$126.8 million in outstanding commitments comprised of (i) 3033 investments with commitments to fund revolving loans that had not been fully drawn or term loans with additional commitments not yet funded and (ii) nine investments with equity capital commitments that had not been fully called.

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Contractual Obligations

As of ~~September~~June 30, ~~2016,~~2017, the future fixed commitments for cash payments in connection with our SBIC debentures, the 4.50% Notes, ~~and~~ the 6.125% Notes and rent obligations under our office lease for each of the next five years and thereafter are as follows:

	2016		2017		2018		2019		2020		2021 and thereafter		Total		2017		2018		2019		2020		2021		Thereafter		Total

SBIC debentures	$	—	$	15,000	$	10,200	$	20,000	$	55,000	$	130,800	$	231,000	$	—	$	—	$	20,000	$	55,000	$	40,000	$	146,200	$	261,200
Interest due on SBIC debentures~~(1)~~		—		9,569		8,293		7,970		6,772		11,155		43,759		5,330		9,967		9,967		8,774		6,223		18,452		58,713
Notes 6.125%		—		—		—		—		—		90,655		90,655		—		—		—		—		—		90,655		90,655
Interest due on 6.125% Notes		1,388		5,553		5,553		5,553		5,553		12,492		36,092		2,776		5,553		5,553		5,553		5,553		6,939		31,927
4.50% Notes		—		—		—		175,000		—		—		175,000		—		—		175,000		—		—		—		175,000
Interest due on 4.50% Notes		3,938		7,875		7,875		7,875		—		—		27,563		3,938		7,875		7,875		—		—		—		19,688
Operating Lease Obligation(1)																—		373		749		763		777		5,031		7,693

Total	$	5,326	$	37,997	$	31,921	$	216,398	$	67,325	$	245,102	$	604,069	$	12,044	$	23,768	$	219,144	$	70,090	$	52,553	$	267,277	$	644,876

(1): ~~The interest due on the $6.0 million of SBIC debentures drawn in September 2016 does not have~~Operating Lease Obligation means a ~~final rate that has been fixed by the SBA~~rent payment obligation under a lease classified as ~~of September 30, 2016. In March 2017, the final rate for this tranche of SBIC debentures will~~an operating lease and disclosed pursuant to FASB ASC 840, as may be determined and, thereafter, the rate will be fixed for the ensuing 10 years. The table above assumes that the interim rate being charged as of September 30, 2016 will be used until the final maturity. This rate will be adjusted once the final rate is determined.modified or supplemented.

As of ~~September~~June 30, ~~2016,~~2017, we had ~~$313.0~~$303.0 million in borrowings outstanding under our Credit Facility, and the Credit Facility is currently scheduled to mature in September ~~2020.~~2021. The Credit Facility contains two, one-year extension options which could extend the maturity to September ~~2022.~~2023, subject to lender approval. See further discussion of the Credit Facility terms in "—Liquidity and Capital Resources—Capital ~~Resources".~~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 ~~September~~June 30, ~~2016,~~2017, we had a receivable of ~~$2.2~~approximately $2.6 million due from the External Investment Manager which included approximately ~~$1.4~~$1.9 million primarily related to operating expenses incurred by us required to support the External Investment Manager's business ~~along with~~and approximately $0.7 million of dividends declared but not paid by the External Investment ~~Manager of approximately $0.8 million.~~

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In November 2015, our ~~board~~Board of ~~directors~~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~~Board of ~~directors~~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 ~~September~~June 30, ~~2016, $2.0~~2017, $3.6 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~~$2.4 million was deferred into phantom Main Street stock units, representing ~~55,753~~72,182 shares of our common stock. Including phantom stock units issued through dividend reinvestment, the phantom stock units outstanding as of ~~September~~June 30, ~~2016~~2017 represented ~~63,257~~83,739 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

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accordance with the plan, but are included in operating expenses and ~~weighted average~~weighted-average shares outstanding onin our consolidated ~~statement~~statements of operations as earned.

Recent Developments

~~During October 2016,~~In July 2017, we ~~declared~~fully exited our debt and equity investments in Compact Power Equipment, Inc. ("CPEC"), a ~~semi-annual supplemental cash dividend~~light to medium duty equipment rental operation that owns and operates outdoor equipment rental locations. CPEC provides its customers a wide range of ~~$0.275 per share payable~~landscape and construction equipment available on both a long-term rental basis and an hourly rental basis. We realized a gain of approximately $3.7 million on the exit of our equity investments in December 2016. This supplemental cash dividend is in addition to the previously announced regular monthly cash dividends that we declared for the fourth quarter of 2016 of $0.185 per share for each of October, November and December 2016.CPEC.

In ~~November 2016,~~July 2017, we made a new portfolio investment to facilitate the management-led buyout of Market Force Information, LLC ("Market Force"), a leading global provider of customer experience management software and services. We, along with a co-investor, partnered with Market Force's management team to facilitate the transaction, with us funding $38.2 million in a combination of first-lien, senior secured term debt and a direct equity investment. In addition, we and our co-investor are providing Market Force an undrawn credit facility to support its growth initiatives and working capital needs. Headquartered in Louisville, Colorado, and founded in 2005, Market Force is a global provider of customer experience management software and services, which capture customer experience data through multiple channels and provide location-based measurement and analytics. Market Force integrates this data into a cloud-based platform where clients can view, track, and analyze data in real time.

In August 2017, we declared regular monthly dividends of ~~$0.185~~$0.190 per share for each month of ~~January, February~~October, November and ~~March~~December of 2017. These regular monthly dividends equal a total of ~~$0.555~~$0.570 per share for the ~~first~~fourth quarter of 2017 and represent a ~~2.8%~~2.7% increase from the regular monthly dividends declared for the ~~first~~fourth quarter of 2016. Including ~~the semi-annual supplemental dividend declared for December 2016 and~~ the regular monthly dividends declared for the ~~first quarter~~third and fourth quarters of 2017, we will have paid ~~$19.160~~$21.115 per share in cumulative dividends since ~~its~~our October 2007 initial public offering.

In October 2016, we amended our Credit Facility to extend the maturity by one year to September 2021. The Credit Facility includes total commitments of $555.0 million from a diversified group of fourteen lenders and also 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.

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 and Marketable securities and idle funds~~ 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 ~~September~~June 30, ~~2016,~~2017, approximately ~~64%~~67% of our debt investment portfolio (at cost) bore interest at floating rates, ~~98%~~96% of which were subject to contractual minimum interest rates. Our interest expense

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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 and 6.125% Notes, which comprise the majority of our outstanding debt, are fixed for the life of such debt. As of ~~September~~June 30, ~~2016,~~2017, 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 ~~September~~June 30, ~~2016.~~2017.

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)
(25)										$	(2,397	)	$	758		$	(1,639	)	$	(0.03	)
25											2,581			(758	)		1,824			0.03
50	$	2,905	$	(1,565	)	$	1,340	$	0.03		5,189			(1,515	)		3,674			0.06
100		7,501		(3,130	)		4,371		0.08		10,409			(3,030	)		7,379			0.13
150		12,214		(4,695	)		7,519		0.14		15,690			(4,545	)		11,145			0.20
200		16,980		(6,260	)		10,720		0.20		20,971			(6,060	)		14,911			0.26
300		26,512		(9,390	)		17,122		0.32		31,532			(9,090	)		22,442			0.40
400		36,058		(12,520	)		23,538		0.44		42,093			(12,120	)		29,973			0.53
500		45,617		(15,650	)		29,967		0.57

~~Basis Point Change~~

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 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 ~~September~~June 30, ~~2016~~2017 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 ~~try to~~ 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, ~~2015~~2016 that we filed with the SEC on February ~~26, 2016,~~24, 2017, and as updated in our registration statement on Form N-2 filed on ~~May 16, 2016.~~April 26, 2017.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

During the three months ended ~~September~~June 30, ~~2016,~~2017, we issued ~~84,153~~67,132 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 ~~September~~June 30, ~~2016~~2017 under the dividend reinvestment plan was approximately ~~$2.8~~$2.6 million.

During the three months ended June 30, 2017, we issued 11,464 shares of our common stock in exchange for additional equity securities in one of our existing portfolio companies. We issued these shares in reliance on exemptions from registration under Section 4(2) of the Securities Act of 1933, as amended. The value of the shares of common stock issued in connection with this transaction was approximately $0.4 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

	10.1		~~Sixth Amendment to Second Amended and Restated Credit~~Supplement Agreement dated ~~October 31, 2016~~July 14, 2017.
	10.2		Dividend Reinvestment and Direct Stock Purchase Plan (previously filed as Exhibit ~~10.1~~(e) to Main Street Capital Corporation's ~~Current Report~~Post-Effective Amendment No. 12 to the Registration Statement on Form ~~8-K~~N-2 filed on ~~November 1, 2016 (File~~July 18, 2017 (Reg. No. ~~1-33723)~~333-183555)).
	~~14.1~~10.3		~~Code~~Form of ~~Business Conduct and Ethics.~~Equity Distribution Agreement dated May 10, 2017 (previously filed as Exhibit (h)(3) to Main Street Capital Corporation's Post-Effective Amendment No. 11 to the Registration Statement on Form N-2 filed on May 10, 2017 (Reg. No. 333-183555)).
	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: ~~November~~August 4, ~~2016~~2017		/s/ VINCENT D. FOSTER Vincent D. Foster Chairman and Chief Executive Officer (principal executive officer)
Date: ~~November~~August 4, ~~2016~~2017		/s/ BRENT D. SMITH Brent D. Smith Chief Financial Officer and Treasurer (principal financial officer)
Date: ~~November~~August 4, ~~2016~~2017		/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

	~~14.1~~10.1		~~Code of Business Conduct and Ethics.~~Supplement Agreement dated July 14, 2017.
	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)	Principal(4)		Cost(4)		Fair Value

Non-Control/Non-Affiliate Investments(7)

AccuMED Corp.(10)	Medical Device Contract Manufacturer
		LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—October 29, 2020)(9)	$	10,306	$	10,218	$	10,306

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)		7,955		7,826		7,753

Ahead, LLC(10)	IT Infrastructure Value Added Reseller
		LIBOR Plus 6.50%, Current Coupon 7.34%, Secured Debt (Maturity—November 2, 2020)		14,438		14,070		14,401

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		14,701		14,869

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)		7,406		7,300		7,369

American Seafoods Group, LLC(11)	Catcher-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		9,610

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)		12,309		11,122		12,016

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)		2,283		2,283		2,111
		Member Units (440,620 units)				4,928		3,084

						7,211		5,195

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

PT Network, LLC(10)	Provider of Outpatient Physical Therapy and Sports Medicine Services
		LIBOR Plus 7.75% (Floor 1.50%), Current Coupon 9.25%, Secured Debt (Maturity—November 1, 2018)(9)	16,335	16,128	16,090

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)	11,302	11,227	11,189

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)	4,230	4,157	4,238

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	14,550	14,700

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	2,977	2,957

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)	3,920	3,832	882

RLJ Entertainment, Inc.(10)	Movie and TV Programming Licensee and Distributor
		LIBOR Plus 8.75% (Floor 0.25%), Current Coupon 9.54%, Secured Debt (Maturity—September 11, 2019)(9)	9,009	9,009	9,009

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	27

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

Non-Control/Non-Affiliate Investments(7)

AccuMED, Corp.(10)	Medical Device Contract Manufacturer
		LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity—October 29, 2020)(9)	$	9,750	$	9,648	$	9,648

Adams Publishing Group, LLC(10)	Local Newspaper Operator
		LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 7.75%, Secured Debt (Maturity—November 3, 2020)(9)		9,506		9,329		9,328

Ahead, LLC(10)	IT Infrastructure Value Added Reseller
		LIBOR Plus 6.50%, Current Coupon 6.76%, Secured Debt (Maturity—November 2, 2020)		15,000		14,562		14,625

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)		10,150		10,080		10,008

AM General LLC(11)	Specialty Vehicle Manufacturer
		LIBOR Plus 9.00% (Floor 1.25%), Current Coupon 10.25%, Secured Debt (Maturity—March 22, 2018)(9)		2,256		2,221		1,867

AM3 Pinnacle Corporation(10)	Provider of Comprehensive Internet, TV and Voice Services for Multi- Dwelling Unit Properties
		Common Stock (60,240 shares)				2,000		—

American Seafoods Group, LLC(11)	Catcher-Processor of Alaskan Pollock
		LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.00%, Secured Debt (Maturity—August 19, 2021)(9)		9,975		9,963		9,892

AMF Bowling Centers, Inc.(11)	Bowling Alley Operator
		LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.25%, Secured Debt (Maturity—September 18, 2021)(9)		7,907		7,802		7,835

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)		2,306		2,306		2,179
		Member Units (440,620 units)				4,928		3,250

						7,234		5,429

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

Energy and Exploration Partners, LLC(11)	Oil & Gas Exploration & Production
		8.75% Secured Debt (Maturity—January 23, 2016)(14)	221	221	221
		LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 7.75%, Secured Debt (Maturity—January 22, 2019)(9)(14)	9,390	9,048	2,371

				9,269	2,592

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	6,838	4,673

Extreme Reach, Inc.(11)	Integrated TV and Video Advertising Platform
		LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 6.75%, Secured Debt (Maturity—February 7, 2020)(9)	8,875	8,866	8,731

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)	11,333	11,004	10,086

Fram Group Holdings, Inc.(11)	Manufacturer of Automotive Maintenance Products
		LIBOR Plus 5.50% (Floor 1.50%), Current Coupon 7.00%, Secured Debt (Maturity—July 29, 2017)(9)	9,652	9,547	7,275
		LIBOR Plus 9.50% (Floor 1.50%), Current Coupon 11.00%, Secured Debt (Maturity—January 29, 2018)(9)	700	699	350

				10,246	7,625

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)	3,960	3,901	3,742
		LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity—April 29, 2022)(9)	800	786	792

				4,687	4,534

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

ICON Health & Fitness, Inc.(11)	Producer of Fitness Products
		11.875% Secured Debt (Maturity—October 15, 2016)	6,956	6,907	6,608

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)	8,110	8,030	7,502

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)	7,125	6,759	6,697

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)	5,000	5,000	5,000

Infinity Acquisition Finance Corp.(11)	Application Software for Capital Markets
		7.25% Unsecured Debt (Maturity—August 1, 2022)	4,000	4,000	3,440

Inn of the Mountain Gods Resort and Casino(11)	Hotel & Casino Owner & Operator
		9.25% Secured Debt (Maturity—November 30, 2020)	3,851	3,708	3,562

Insurance Technologies, LLC(10)	Illustration and Sales-automation Platforms
		LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.00%, Secured Debt (Maturity—December 1, 2019)(9)	4,804	4,759	4,759

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)	9,938	9,782	9,883

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)	15,026	14,986	14,446

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)	9,887	9,718	7,942

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

Legendary Pictures Funding, LLC(10)	Producer of TV, Film, and Comic Content
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity—April 22, 2020)(9)	7,500	7,372	7,425

LKCM Headwater Investments I, L.P.(12)(13)	Investment Partnership
		LP Interests (Fully diluted 2.3%)		2,500	4,875

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)		188	188

				501	501

MediMedia USA, Inc.(11)	Provider of Healthcare Media and Marketing
		LIBOR Plus 6.75% (Floor 1.25%), Current Coupon 8.00%, Secured Debt (Maturity—November 20, 2018)(9)	7,772	7,714	7,422

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)	15,583	15,483	15,583

Milk Specialties Company(11)	Processor of Nutrition Products
		LIBOR Plus 7.00% (Floor 1.25%), Current Coupon 8.25%, Secured Debt (Maturity—November 9, 2018)(9)	792	789	792

Minute Key, Inc.	Operator of Automated Key Duplication Kiosks
		10% Current / 2% PIK Secured Debt (Maturity—September 19, 2019)	14,186	13,817	13,817
		Warrants (1,437,409 equivalent units)		280	280

				14,097	14,097

Miramax Film NY, LLC(11)	Motion Picture Producer and Distributor
		Member Units (500,000 units)(8)		864	864

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)	14,957	14,827	14,266

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)	9,788	9,635	9,703

Type of Investment	Fair Value as of September 30, 2016 (in thousands)		Valuation Technique	Significant Unobservable Inputs	Range(3)

Equity investments	$	531,672	Discounted cash flow	Weighted-average cost of capital	10.2% - 22.6%	12.9%	13.6%
			Market comparable / Enterprise Value	EBITDA multiple(1)	4.5x - 8.0x(2)	6.9x	5.9x
Debt investments	$	734,110	Discounted cash flow	Risk adjusted discount factor	7.7% - 15.4%(2)	12.0%	11.0%
				Expected principal recovery percentage	5.3% - 100.0%	100.0%	100.0%
Debt investments	$	652,325	Market approach	Third party quote	22.5 - 107.0

Total Level 3 investments	$	1,918,107