Main Street Capital CORP - Quarter Report: 2021 March (Form 10-Q)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


(Mark One)
⌧	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2021
OR
◻	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)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class		Trading Symbol		Name of Each Exchange on Which Registered
Common Stock, par value $0.01 per share		MAIN		New York Stock Exchange

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 ⌧ No ◻

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ◻ No ◻

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer ⌧	Accelerated filer ◻	Non-accelerated filer ◻	Smaller reporting company ◻ Emerging growth company ◻

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. ◻

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ◻ No ⌧

The number of shares outstanding of the issuer’s common stock as of May 7, 2021 was 68,226,733.

Table of Contents

TABLE OF CONTENTS


	PART I
	FINANCIAL INFORMATION
Item 1.	Consolidated Financial Statements
	Consolidated Balance Sheets—March 31, 2021 (unaudited) and December 31, 2020	1
	Consolidated Statements of Operations (unaudited)—Three months ended March 31, 2021 and 2020	2
	Consolidated Statements of Changes in Net Assets (unaudited)—Three months ended March 31, 2021 and 2020	3
	Consolidated Statements of Cash Flows (unaudited)—Three months ended March 31, 2021 and 2020	4
	Consolidated Schedule of Investments (unaudited)—March 31, 2021	5
	Consolidated Schedule of Investments—December 31, 2020	30
	Notes to Consolidated Financial Statements (unaudited)	53
	Consolidated Schedules of Investments in and Advances to Affiliates (unaudited)—Three months ended March 31, 2021 and 2020	88
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	97
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	111
Item 4.	Controls and Procedures	112
	PART II
	OTHER INFORMATION
Item 1.	Legal Proceedings	113
Item 1A.	Risk Factors	113
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	113
Item 5.	Other Information	113
Item 6.	Exhibits	115
	Signatures	116

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Balance Sheets

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


	March 31,		December 31,
	2021		2020
	(Unaudited)
ASSETS
Investments at fair value:
Control investments (cost: $896,464 and $831,490 as of March 31, 2021 and December 31, 2020, respectively)	$	1,192,964	$	1,113,725
Affiliate investments (cost: $419,487 and $416,479 as of March 31, 2021 and December 31, 2020, respectively)		375,723		366,301
Non‑Control/Non‑Affiliate investments (cost: $1,281,784 and $1,268,740 as of March 31, 2021 and December 31, 2020, respectively)		1,231,444		1,204,840
Total investments (cost: $2,597,735 and $2,516,709 as of March 31, 2021 and December 31, 2020, respectively)		2,800,131		2,684,866
Cash and cash equivalents		65,001		31,919
Interest receivable and other assets		45,012		49,761
Deferred financing costs (net of accumulated amortization of $8,734 and $8,477 as of March 31, 2021 and December 31, 2020, respectively)		2,561		2,818
Total assets	$	2,912,705	$	2,769,364
LIABILITIES
Credit facility	$	87,000	$	269,000
SBIC debentures (par: $290,000 and $309,800 as of March 31, 2021 and December 31, 2020, respectively)		283,948		303,972
5.20% Notes due 2024 (par: $450,000 as of both March 31, 2021 and December 31, 2020)		451,681		451,817
4.50% Notes due 2022 (par: $185,000 as of both March 31, 2021 and December 31, 2020)		183,988		183,836
3.00% Notes due 2026 (par: $300,000 as of March 31, 2021)		294,948		—
Accounts payable and other liabilities		20,134		20,833
Payable for securities purchased		18,992		—
Interest payable		15,268		8,658
Dividend payable		13,942		13,889
Deferred tax liability, net		2,640		2,592
Total liabilities		1,372,541		1,254,597
Commitments and contingencies (Note K)
NET ASSETS
Common stock, $0.01 par value per share (150,000,000 shares authorized; 68,000,898 and 67,674,853 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively)		680		677
Additional paid‑in capital		1,625,881		1,615,940
Total undistributed (overdistributed) earnings		(86,397)		(101,850)
Total net assets		1,540,164		1,514,767
Total liabilities and net assets	$	2,912,705	$	2,769,364
NET ASSET VALUE PER SHARE	$	22.65	$	22.35

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

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Statements of Operations

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

(Unaudited)


	Three Months Ended
	March 31,
	2021		2020
INVESTMENT INCOME:
Interest, fee and dividend income:
Control investments	$	24,025	$	19,474
Affiliate investments		11,505		8,164
Non‑Control/Non‑Affiliate investments		27,277		28,512
Total investment income		62,807		56,150
EXPENSES:
Interest		(13,804)		(12,441)
Compensation		(6,318)		(2,498)
General and administrative		(2,975)		(3,473)
Share‑based compensation		(2,333)		(2,837)
Expenses allocated to the External Investment Manager		2,380		1,644
Total expenses		(23,050)		(19,605)
NET INVESTMENT INCOME		39,757		36,545
NET REALIZED GAIN (LOSS):
Control investments		(10,925)		(21,472)
Affiliate investments		(4,803)		(235)
Non‑Control/Non‑Affiliate investments		(2)		(158)
Realized loss on extinguishment of debt		—		(534)
Total net realized loss		(15,730)		(22,399)
NET UNREALIZED APPRECIATION (DEPRECIATION):
Control investments		14,261		(35,410)
Affiliate investments		6,417		(21,166)
Non‑Control/Non‑Affiliate investments		13,323		(137,732)
SBIC debentures		—		460
Total net unrealized appreciation (depreciation)		34,001		(193,848)
INCOME TAXES:
Federal and state income, excise and other taxes		(634)		294
Deferred taxes		(48)		7,970
Income tax benefit (provision)		(682)		8,264
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	57,346	$	(171,438)
NET INVESTMENT INCOME PER SHARE—BASIC AND DILUTED	$	0.58	$	0.57
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS PER SHARE—BASIC AND DILUTED	$	0.84	$	(2.66)
WEIGHTED AVERAGE SHARES OUTSTANDING—BASIC AND DILUTED		68,126,576		64,536,471

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)


						Total
	Common Stock			Additional		Undistributed
	Number of	Par		Paid‑In		(Overdistributed)		Total Net
	Shares	Value		Capital		Earnings		Asset Value
Balances at December 31, 2019	64,252,937	$	643	$	1,512,435	$	23,312	$	1,536,390
Public offering of common stock, net of offering costs	91,458		1		3,854		—		3,855
Share‑based compensation	—		—		2,837		—		2,837
Purchase of vested stock for employee payroll tax withholding	(851)		—		(29)		—		(29)
Dividend reinvestment	108,722		1		3,929		—		3,930
Amortization of directors’ deferred compensation	—		—		238		—		238
Issuance of restricted stock	10,383		—		—		—		—
Dividends to stockholders	—		—		93		(39,706)		(39,613)
Net decrease resulting from operations	—		—		—		(171,438)		(171,438)
Balances at March 31, 2020	64,462,649	$	645	$	1,523,357	$	(187,832)	$	1,336,170

Balances at December 31, 2020	67,762,032	$	677	$	1,615,940	$	(101,850)	$	1,514,767
Public offering of common stock, net of offering costs	117,388		2		3,626		—		3,628
Share‑based compensation	—		—		2,333		—		2,333
Purchase of vested stock for employee payroll tax withholding	(180)		—		(7)		—		(7)
Dividend reinvestment	106,651		1		3,698		—		3,699
Amortization of directors’ deferred compensation	—		—		195		—		195
Issuance of restricted stock	15,007		—		—		—		—
Dividends to stockholders	—		—		96		(41,893)		(41,797)
Net increase resulting from operations	—		—		-		57,346		57,346
Balances at March 31, 2021	68,000,898	$	680	$	1,625,881	$	(86,397)	$	1,540,164

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

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Statements of Cash Flows

(dollars in thousands)

(Unaudited)


	Three Months Ended
	March 31,
	2021		2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net increase (decrease) in net assets resulting from operations	$	57,346	$	(171,438)
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:
Investments in portfolio companies		(208,186)		(138,608)
Proceeds from sales and repayments of debt investments in portfolio companies		121,027		157,027
Proceeds from sales and return of capital of equity investments in portfolio companies		13,920		3,180
Net unrealized (appreciation) depreciation		(34,001)		193,848
Net realized loss		15,730		22,399
Accretion of unearned income		(2,468)		(3,583)
Payment-in-kind interest		(2,389)		(591)
Cumulative dividends		(425)		(542)
Share-based compensation expense		2,333		2,837
Amortization of deferred financing costs		740		663
Deferred tax (benefit) provision		48		(7,970)
Changes in other assets and liabilities:
Interest receivable and other assets		4,096		5,914
Interest payable		6,610		4,019
Accounts payable and other liabilities		(504)		(6,990)
Deferred fees and other		1,172		1,198
Net cash provided by (used in) operating activities		(24,951)		61,363

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from public offering of common stock, net of offering costs		3,628		3,855
Proceeds from public offering of 3.00% Notes due 2026		300,000		-
Dividends paid		(38,045)		(35,639)
Proceeds from issuance of SBIC debentures		20,200		15,000
Repayments of SBIC debentures		(40,000)		(22,000)
Proceeds from credit facility		125,000		94,000
Repayments on credit facility		(307,000)		(117,000)
Debt issuance costs, net		(5,743)		(608)
Purchases of vested stock for employee payroll tax withholding		(7)		(29)
Net cash provided by (used in) financing activities		58,033		(62,421)

Net increase (decrease) in cash and cash equivalents		33,082		(1,058)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		31,919		55,246
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	65,001	$	54,188

Supplemental cash flow disclosures:
Interest paid	$	6,424	$	7,729
Taxes paid	$	(487)	$	1,466
Operating non-cash activities:
Right-of-use assets obtained in exchange for operating lease liabilities	$	-	$	5,240
Non-cash financing activities:
Shares issued pursuant to the DRIP	$	3,699	$	3,930

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

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments

March 31, 2021

(dollars in thousands)

(Unaudited)


Portfolio Company (1) (20)		Investment Date (24)	Business Description	Type of Investment (2) (3) (15)	Shares/Units	Rate	Maturity Date	Principal (4)		Cost (4)		Fair Value (18)

Control Investments (5)

ASC Interests, LLC		August 1, 2013	Recreational and Educational Shooting Facility
				Secured Debt		13.00%	7/31/2022		1,750		1,720		1,720
				Member Units	1,500						1,500		1,170
											3,220		2,890

Analytical Systems Keco, LLC		August 16, 2019	Manufacturer of Liquid and Gas Analyzers
				Secured Debt		12.00% (L+10.00%, Floor 2.00%)	8/16/2024		5,155		4,889		4,889	(9)
				Preferred Member Units	3,200						3,200		2,730
				Warrants	420		8/16/2029				316		-	(27)
											8,405		7,619

ATS Workholding, LLC	(10)	March 10, 2014	Manufacturer of Machine Cutting Tools and Accessories
				Secured Debt		5.00%	11/16/2021		4,942		4,784		3,184	(14)
				Preferred Member Units	3,725,862						3,726		-
											8,510		3,184

Project BarFly, LLC	(10)	August 31, 2015	Casual Restaurant Group
				Secured Debt		7.00%	10/31/2024		711		711		711
				Member Units	37						1,584		1,584
											2,295		2,295

Bolder Panther Group, LLC		December 31, 2020	Consumer Goods and Fuel Retailer
				Secured Debt		9.50% (L+8.00%, Floor 1.50%)	12/31/2025		500		500		500	(9)
				Secured Debt		10.50% (L+9.00%, Floor 1.50%)	12/31/2025		27,500		27,239		27,239	(9)
				Class A Preferred Member Units		14.00%					10,194		10,194	(8) (30)
				Class B Preferred Member Units	140,000	8.00%					14,000		14,000	(8) (30)
											51,933		51,933

Bond-Coat, Inc.			Casing and Tubing Coating Services
				Common Stock	57,508						6,350		2,480

Brewer Crane Holdings, LLC		January 9, 2018	Provider of Crane Rental and Operating Services
				Secured Debt		11.00% (L+10.00%, Floor 1.00%)	1/9/2023		8,432		8,394		8,394	(9)
				Preferred Member Units	2,950						4,280		5,490	(8)
											12,674		13,884

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, 2021

(dollars in thousands)

(Unaudited)


Portfolio Company (1) (20)	Investment Date (24)	Business Description	Type of Investment (2) (3) (15)	Shares/Units	Rate	Maturity Date	Principal (4)		Cost (4)		Fair Value (18)
Bridge Capital Solutions Corporation	April 18, 2012	Financial Services and Cash Flow Solutions Provider
			Secured Debt		13.00%	12/11/2024		8,813		8,573		8,573
			Warrants	82		7/25/2026				2,132		3,340	(27)
			Secured Debt		13.00%	12/11/2024		1,000		999		999	(30)
			Preferred Member Units	17,742						1,000		1,000	(8) (30)
										12,704		13,912

Café Brazil, LLC	April 20, 2004	Casual Restaurant Group
			Member Units	1,233						1,742		2,260

California Splendor Holdings LLC	March 30, 2018	Processor of Frozen Fruits
			Secured Debt		9.00% (L+8.00%, Floor 1.00%)	3/30/2023		2,500		2,423		2,423	(9)
			Secured Debt		11.00% (L+10.00%, Floor 1.00%)	3/30/2023		28,000		27,869		27,869	(9)
			Preferred Member Units	6,725						8,565		8,565	(8)
			Preferred Member Units	6,157						10,775		6,872	(8)
										49,632		45,729

CBT Nuggets, LLC	June 1, 2006	Produces and Sells IT Training Certification Videos
			Member Units	416						1,300		46,080	(8)

Centre Technologies Holdings, LLC	January 4, 2019	Provider of IT Hardware Services and Software Solutions
			Secured Debt		12.00% (L+10.00%, Floor 2.00%)	1/4/2024		9,875		9,813		9,813	(9)
			Preferred Member Units	12,696						5,840		6,160
										15,653		15,973

Chamberlin Holding LLC	February 26, 2018	Roofing and Waterproofing Specialty Contractor
			Secured Debt		9.00% (L+8.00%, Floor 1.00%)	2/26/2023		15,212		15,144		15,212	(9)
			Member Units	4,347						11,440		28,280	(8)
			Member Units	1,047,146						1,322		1,330	(8) (30)
										27,906		44,822

Charps, LLC	February 3, 2017	Pipeline Maintenance and Construction
			Unsecured Debt		10.00% (8.67% Cash, 1.33% PIK)	1/31/2024		8,978		7,364		7,718	(19)
			Preferred Member Units	1,600						400		11,320	(8)
										7,764		19,038

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, 2021

(dollars in thousands)

(Unaudited)


Portfolio Company (1) (20)		Investment Date (24)	Business Description	Type of Investment (2) (3) (15)	Shares/Units	Rate	Maturity Date	Principal (4)		Cost (4)		Fair Value (18)
Clad-Rex Steel, LLC		December 20, 2016	Specialty Manufacturer of Vinyl-Clad Metal
				Secured Debt		10.50% (L+9.50%, Floor 1.00%)	1/15/2024		10,880		10,773		10,773	(9)
				Member Units	717						7,280		8,610	(8)
				Secured Debt		10.00%	12/20/2036		1,103		1,093		1,093	(30)
				Member Units	800						210		530	(30)
											19,356		21,006

CMS Minerals Investments		January 30, 2015	Oil & Gas Exploration & Production											(8)
				Member Units	100						2,142		1,767	(30)

Cody Pools, Inc.		March 6, 2020	Designer of Residential and Commercial Pools
				Secured Debt		12.25% (L+10.50%, Floor 1.75%)	3/6/2025		14,016		13,899		14,016	(9)
				Preferred Member Units	587						8,317		18,870
											22,216		32,886

Colonial Electric Company LLC		March 31, 2021	Provider of Electrical Contracting Services
				Secured Debt		12.00%	3/31/2026		25,200		24,948		24,948
				Preferred Member Units	17,280						7,680		7,680
											32,628		32,628

CompareNetworks Topco, LLC		January 29, 2019	Internet Publishing and Web Search Portals
				Secured Debt		11.00% (L+10.00%, Floor 1.00%)	1/29/2024		7,954		7,913		7,954	(9)
				Preferred Member Units	1,975						1,975		8,310	(8)
											9,888		16,264

Copper Trail Fund Investments	(12) (13)	July 17, 2017	Investment Partnership
				LP Interests (CTMH, LP)	39%						710		710	(31)

Datacom, LLC		May 30, 2014	Technology and Telecommunications Provider
				Secured Debt		5.00%	12/31/2025		8,973		8,037		8,037
				Preferred Member Units	9,000						2,610		2,610
											10,647		10,647

Digital Products Holdings LLC		April 1, 2018	Designer and Distributor of Consumer Electronics
				Secured Debt		11.00% (L+10.00%, Floor 1.00%)	4/1/2023		17,843		17,758		17,758	(9)
				Preferred Member Units	3,857						9,501		9,835	(8)
											27,259		27,593

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, 2021

(dollars in thousands)

(Unaudited)


Portfolio Company (1) (20)		Investment Date (24)	Business Description	Type of Investment (2) (3) (15)	Shares/Units	Rate	Maturity Date	Principal (4)		Cost (4)		Fair Value (18)
Direct Marketing Solutions, Inc.		February 13, 2018	Provider of Omni-Channel Direct Marketing Services
				Secured Debt		12.00% (L+11.00%, Floor 1.00%)	2/13/2023		15,090		15,015		15,015	(9)
				Preferred Stock	8,400						8,400		17,820
											23,415		32,835

Gamber-Johnson Holdings, LLC ("GJH")		June 24, 2016	Manufacturer of Ruggedized Computer Mounting Systems
				Secured Debt		9.00% (L+7.00%, Floor 2.00%)	6/24/2021		20,638		20,623		20,638	(9)
				Member Units	9,042						17,692		55,250	(8)
											38,315		75,888

Garreco, LLC		July 15, 2013	Manufacturer and Supplier of Dental Products
				Secured Debt		9.00% (L+8.00%, Floor 1.00%, Ceiling 1.50%)	7/31/2022		4,519		4,519		4,519	(9)
				Member Units	1,200						1,200		1,670
											5,719		6,189

GRT Rubber Technologies LLC ("GRT")		December 19, 2014	Manufacturer of Engineered Rubber Products
				Secured Debt		7.12% (L+7.00%)	12/31/2023		16,775		16,775		16,775
				Member Units	5,879						13,065		44,900	(8)
											29,840		61,675

Gulf Manufacturing, LLC		August 31, 2007	Manufacturer of Specialty Fabricated Industrial Piping Products
				Member Units	438						2,980		4,650	(8)

Gulf Publishing Holdings, LLC		April 29, 2016	Energy Industry Focused Media and Publishing
				Secured Debt		10.50% (5.25% Cash, 5.25% PIK) (L+9.50%, Floor 1.00%)	9/30/2020		253		253		253	(9) (17) (19)
				Secured Debt		12.50% (6.25% Cash, 6.25% PIK)	4/29/2021		13,353		13,350		12,259	(19)
				Member Units	3,681						3,681		-
											17,284		12,512

Harris Preston Fund Investments	(12) (13)	October 1, 2017	Investment Partnership
				LP Interests (2717 MH, L.P.)	49%						2,646		2,684	(31)
				LP Interests (2717 HPP-MS, L.P.)	49%						250		250	(31)
											2,896		2,934

Harrison Hydra-Gen, Ltd.		June 4, 2010	Manufacturer of Hydraulic Generators
				Common Stock	107,456						718		5,320

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, 2021

(dollars in thousands)

(Unaudited)


Portfolio Company (1) (20)		Investment Date (24)	Business Description	Type of Investment (2) (3) (15)	Shares/Units	Rate	Maturity Date	Principal (4)		Cost (4)		Fair Value (18)
Jensen Jewelers of Idaho, LLC		November 14, 2006	Retail Jewelry Store
				Secured Debt		10.00% (Prime+6.75%, Floor 2.00%)	11/14/2023		3,250		3,227		3,250	(9)
				Member Units	627						811		8,320	(8)
											4,038		11,570

J&J Services, Inc.		October 31, 2019	Provider of Dumpster and Portable Toilet Rental Services
				Secured Debt		11.50%	10/31/2024		12,800		12,702		12,800
				Preferred Stock	2,814						7,085		12,680
											19,787		25,480

KBK Industries, LLC		January 23, 2006	Manufacturer of Specialty Oilfield and Industrial Products
				Member Units	325						783		13,200	(8)

Kickhaefer Manufacturing Company, LLC		October 31, 2018	Precision Metal Parts Manufacturing
				Secured Debt		11.50%	10/31/2023		22,415		22,280		22,280
				Member Units	581						12,240		12,240
				Secured Debt		9.00%	10/31/2048		3,940		3,901		3,901
				Member Units	800						992		1,160	(8) (30)
											39,413		39,581

Market Force Information, LLC		July 28, 2017	Provider of Customer Experience Management Services
				Secured Debt		12.00% (L+11.00%, Floor 1.00%)	7/28/2023		3,150		3,150		3,150	(9)
				Secured Debt		12.00% PIK	7/28/2023		26,079		25,952		13,268	(14) (19)
				Member Units	743,921						16,642		-
											45,744		16,418

MH Corbin Holding LLC		August 31, 2015	Manufacturer and Distributor of Traffic Safety Products
				Secured Debt		13.00% (10.00% Cash, 3.00% PIK)	3/31/2022		8,490		8,456		8,208	(19)
				Preferred Member Units	66,000						4,400		1,200
				Preferred Member Units	4,000						6,000		-
											18,856		9,408

MSC Adviser I, LLC	(16)	November 22, 2013	Third Party Investment Advisory Services
				Member Units	100%						29,500		117,220	(8) (31)

MS Private Loan Fund I, LP	(12)	January 26, 2021	Investment Partnership
				Unsecured Debt		5.00%	6/30/2022		8,422		8,422		8,422
				LP Interests	11.6%						142		142
											8,564		8,564

MSC Income Fund Inc.	(12) (13)	January 28, 2021	Non-listed Business Development Company
				Unsecured Debt		5.00%	1/28/2026		40,000		39,612		39,822

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, 2021

(dollars in thousands)

(Unaudited)


Portfolio Company (1) (20)	Investment Date (24)	Business Description	Type of Investment (2) (3) (15)	Shares/Units	Rate	Maturity Date	Principal (4)		Cost (4)		Fair Value (18)
Mystic Logistics Holdings, LLC	August 18, 2014	Logistics and Distribution Services Provider for Large Volume Mailers
			Secured Debt		12.00%	1/17/2022		6,733		6,725		6,725
			Common Stock	5,873						2,720		7,280	(8)
										9,445		14,005

NAPCO Precast, LLC	January 31, 2008	Precast Concrete Manufacturing
			Member Units	2,955						2,975		15,570	(8)

Nebraska Vet AcquireCo, LLC (NVS)	December 31, 2020	Mixed-Animal Veterinary and Animal Health Product Provider
			Secured Debt		12.00%	12/31/2025		10,500		10,400		10,400
			Preferred Member Units	6,500						6,500		6,500
										16,900		16,900

NexRev LLC	February 28, 2018	Provider of Energy Efficiency Products & Services
			Secured Debt		11.00%	2/28/2023		16,879		16,807		16,696
			Preferred Member Units	86,400,000						6,880		3,280	(8)
										23,687		19,976

NRI Clinical Research, LLC	September 8, 2011	Clinical Research Service Provider
			Secured Debt		9.00%	6/8/2022		5,620		5,580		5,620
			Warrants	251,723		6/8/2027				252		1,530	(27)
			Member Units	1,454,167						765		5,750	(8)
										6,597		12,900

NRP Jones, LLC	December 22, 2011	Manufacturer of Hoses, Fittings and Assemblies
			Secured Debt		12.00%	3/20/2023		2,080		2,080		2,080
			Member Units	65,962						3,717		3,240	(8)
										5,797		5,320

NuStep, LLC	January 31, 2017	Designer, Manufacturer and Distributor of Fitness Equipment
			Secured Debt		12.00%	1/31/2022		17,240		17,203		17,203
			Preferred Member Units	406						10,200		11,390
										27,403		28,593

OMi Holdings, Inc.	April 1, 2008	Manufacturer of Overhead Cranes
			Common Stock	1,500						1,080		18,830	(8)

Pearl Meyer Topco LLC	April 27, 2020	Provider of Executive Compensation Consulting Services
			Secured Debt		12.00%	4/27/2025		36,013		35,715		35,715
			Member Units	13,800						13,000		15,940	(8)
										48,715		51,655

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, 2021

(dollars in thousands)

(Unaudited)


Portfolio Company (1) (20)		Investment Date (24)	Business Description	Type of Investment (2) (3) (15)	Shares/Units	Rate	Maturity Date	Principal (4)		Cost (4)		Fair Value (18)
Pegasus Research Group, LLC		January 6, 2011	Provider of Telemarketing and Data Services
				Member Units	460						1,290		8,270	(8)

PPL RVs, Inc.		June 10, 2010	Recreational Vehicle Dealer
				Secured Debt		7.50% (L+7.00%, Floor 0.50%)	11/15/2022		11,655		11,594		11,612	(9)
				Common Stock	2,000						2,150		12,330	(8)
											13,744		23,942

Principle Environmental, LLC (d/b/a TruHorizon Environmental Solutions)		February 1, 2011	Noise Abatement Service Provider
				Secured Debt		13.00%	4/30/2023		6,397		6,340		6,340
				Preferred Member Units	19,631						4,600		10,380	(8)
				Common Stock	1,037						1,200		840
											12,140		17,560

Quality Lease Service, LLC		June 8, 2015	Provider of Rigsite Accommodation Unit Rentals and Related Services
				Member Units	1,000						10,663		3,882

River Aggregates, LLC		March 30, 2011	Processor of Construction Aggregates
				Member Units	1,500						369		3,240	(30)

Tedder Industries, LLC		August 31, 2018	Manufacturer of Firearm Holsters and Accessories
				Secured Debt		12.00%	8/31/2023		14,800		14,718		14,718
				Preferred Member Units	479						8,136		8,136
											22,854		22,854

Trantech Radiator Topco, LLC		May 31, 2019	Transformer Cooling Products and Services
				Secured Debt		12.00%	5/31/2024		8,720		8,649		8,649
				Common Stock	615						4,655		5,690	(8)
											13,304		14,339

UnionRock Energy Fund II, LP	(12) (13)	June 15, 2020	Oil & Gas Exploration & Production
				LP Interests	49.6%						4,267		4,788	(31)

Vision Interests, Inc.		June 5, 2007	Manufacturer / Installer of Commercial Signage
				Secured Debt		13.00%	9/30/2019		2,028		2,028		2,028	(17)
				Series A Preferred Stock	3,000,000						3,000		3,000
											5,028		5,028

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, 2021

(dollars in thousands)

(Unaudited)


Portfolio Company (1) (20)	Investment Date (24)	Business Description	Type of Investment (2) (3) (15)	Shares/Units	Rate	Maturity Date	Principal (4)		Cost (4)		Fair Value (18)
Ziegler's NYPD, LLC	October 1, 2008	Casual Restaurant Group
			Secured Debt		6.50%	10/1/2022		1,000		1,000		1,000
			Secured Debt		12.00%	10/1/2022		625		625		625
			Secured Debt		14.00%	10/1/2022		2,750		2,750		2,750
			Warrants	587		10/1/2025				600		-	(27)
			Preferred Member Units	10,072						2,833		2,071
										7,808		6,446

Subtotal Control Investments (77.4% of net assets at fair value)									$	896,464	$	1,192,964

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, 2021

(dollars in thousands)

(Unaudited)


Portfolio Company (1) (20)		Investment Date (24)	Business Description	Type of Investment (2) (3) (15)	Shares/Units	Rate	Maturity Date	Principal (4)		Cost (4)		Fair Value (18)

Affiliate Investments (6)

AAC Holdings, Inc.	(11)	June 30, 2017	Substance Abuse Treatment Service Provider
				Secured Debt		18.00% (10.00% Cash, 8.00% PIK)	6/25/2025		9,596		9,386		9,548	(19)
				Common Stock	593,928						3,148		1,930
				Warrants	554,353		12/11/2025				-		1,802	(27)
											12,534		13,280

AFG Capital Group, LLC		November 7, 2014	Provider of Rent-to-Own Financing Solutions and Services
				Secured Debt		10.00%	5/25/2022		404		404		404
				Preferred Member Units	186						1,200		6,320
											1,604		6,724

American Trailer Rental Group LLC		June 7, 2017	Provider of Short-term Trailer and Container Rental
				Member Units	73,493						8,596		17,880	(30)

BBB Tank Services, LLC		April 8, 2016	Maintenance, Repair and Construction Services to the Above-Ground Storage Tank Market
				Unsecured Debt		12.00% (L+11.00%, Floor 1.00%)	4/8/2021		4,800		4,793		4,742	(9)
				Preferred Stock (non-voting)		15.00% PIK					157		157	(8) (19)
				Member Units	800,000						800		280
											5,750		5,179

Boccella Precast Products LLC		June 30, 2017	Manufacturer of Precast Hollow Core Concrete
				Member Units	2,160,000						2,256		5,750	(8)

Buca C, LLC		June 30, 2015	Casual Restaurant Group
				Secured Debt		10.25% (2.56% Cash, 7.69% PIK) (L+9.25%, Floor 1.00%)	6/30/2020		19,004		19,004		13,883	(9) (17) (19)
				Preferred Member Units	6	6.00% PIK					4,770		-	(19)
											23,774		13,883

CAI Software LLC		October 10, 2014	Provider of Specialized Enterprise Resource Planning Software
				Secured Debt		12.50%	12/7/2023		44,121		43,827		44,121
				Member Units	77,960						2,095		7,600
											45,922		51,721

Chandler Signs Holdings, LLC	(10)	January 4, 2016	Sign Manufacturer
				Class A Units	1,500,000						1,500		1,040

Charlotte Russe, Inc	(11)	May 28, 2013	Fast-Fashion Retailer to Young Women
				Common Stock	19,041						3,141		-

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, 2021

(dollars in thousands)

(Unaudited)


Portfolio Company (1) (20)		Investment Date (24)	Business Description	Type of Investment (2) (3) (15)	Shares/Units	Rate	Maturity Date	Principal (4)		Cost (4)		Fair Value (18)
Classic H&G Holdings, LLC		March 12, 2020	Provider of Engineered Packaging Solutions
				Secured Debt		12.00%	3/12/2025		24,800		24,593		24,800
				Preferred Member Units	154						5,760		11,180	(8)
											30,353		35,980

Congruent Credit Opportunities Funds	(12) (13)	January 24, 2012	Investment Partnership
				LP Interests (Congruent Credit Opportunities Fund III, LP)	17.4%						11,741		11,540	(8) (31)

Copper Trail Fund Investments	(12) (13)	July 17, 2017	Investment Partnership
				LP Interests (Copper Trail Energy Fund I, LP)	12.4%						2,161		1,843	(8) (31)

Dos Rios Partners	(12) (13)	April 25, 2013	Investment Partnership
				LP Interests (Dos Rios Partners, LP)	20.2%						6,605		5,101	(31)
				LP Interests (Dos Rios Partners - A, LP)	6.4%						2,097		1,620	(31)
											8,702		6,721

East Teak Fine Hardwoods, Inc.		April 13, 2006	Distributor of Hardwood Products
				Common Stock	6,250						480		300

EIG Fund Investments	(12) (13)	November 6, 2015	Investment Partnership
				LP Interests (EIG Global Private Debt Fund-A, L.P.)	11.1%						659		446	(8) (31)

Freeport Financial Funds	(12) (13)	June 13, 2013	Investment Partnership
				LP Interests (Freeport Financial SBIC Fund LP)	9.3%						5,974		5,264	(31)
				LP Interests (Freeport First Lien Loan Fund III LP)	6.0%						9,387		8,923	(8) (31)
											15,361		14,187

GFG Group, LLC.		March 31, 2021	Grower and Distributor of a Variety of Plants and Products to Other Wholesalers, Retailers and Garden Centers
				Secured Debt		12.00%	3/31/2026		15,745		15,588		15,588
				Preferred Member Units	226						4,900		4,900
											20,488		20,488

Harris Preston Fund Investments	(12) (13)	August 9, 2017	Investment Partnership
				LP Interests (HPEP 3, L.P.)	8.2%						3,445		3,632	(31)

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, 2021

(dollars in thousands)

(Unaudited)


Portfolio Company (1) (20)		Investment Date (24)	Business Description	Type of Investment (2) (3) (15)	Shares/Units	Rate	Maturity Date	Principal (4)		Cost (4)		Fair Value (18)
Hawk Ridge Systems, LLC	(13)	December 2, 2016	Value-Added Reseller of Engineering Design and Manufacturing Solutions
				Secured Debt		10.00%	12/2/2023		18,400		18,374		18,400
				Preferred Member Units	226						2,850		9,320	(8)
				Preferred Member Units	226						150		490	(30)
											21,374		28,210

Houston Plating and Coatings, LLC		January 8, 2003	Provider of Plating and Industrial Coating Services
				Unsecured Convertible Debt		8.00%	5/1/2022		3,000		3,000		2,900
				Member Units	322,297						2,352		4,250	(8)
											5,352		7,150

I-45 SLF LLC	(12) (13)	October 20, 2015	Investment Partnership
				Member Units (Fully diluted 20.0%; 24.40% profits interest) (8)	20.00% Fully Diluted, 24.40% Profits Interest						18,200		14,428	(8) (31)

L.F. Manufacturing Holdings, LLC	(10)	December 23, 2013	Manufacturer of Fiberglass Products
				Preferred Member Units (non-voting)		14.00% PIK					96		96	(8) (19)
				Member Units	2,179,001						2,019		2,050
											2,115		2,146

OnAsset Intelligence, Inc.		April 18, 2011	Provider of Transportation Monitoring / Tracking Products and Services
				Secured Debt		12.00% PIK	6/30/2021		7,520		7,520		7,520	(19)
				Unsecured Debt		10.00% PIK	6/30/2021		66		66		66	(19)
				Preferred Stock	912						1,981		-
				Warrants	5,333		4/18/2021				1,919		-	(27)
											11,486		7,586

Rocaceia, LLC (Quality Lease and Rental Holdings, LLC)		January 8, 2013	Provider of Rigsite Accommodation Unit Rentals and Related Services
				Secured Debt		12.00%	1/8/2018		30,369		29,865		-	(14) (32)
				Preferred Member Units	250						2,500		-
											32,365		-

Salado Stone Holdings, LLC	(10)	June 27, 2016	Limestone and Sandstone Dimension Cut Stone Mining Quarries
				Class A Preferred Units	2,000,000						2,000		1,020	(30)

Slick Innovations, LLC		September 13, 2018	Text Message Marketing Platform
				Secured Debt		12.00%	9/13/2023		5,560		5,457		5,560
				Common Stock	70,000						700		1,510
				Warrants	18,084		9/13/2028				181		400	(27)
											6,338		7,470

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, 2021

(dollars in thousands)

(Unaudited)


Portfolio Company (1) (20)		Investment Date (24)	Business Description	Type of Investment (2) (3) (15)	Shares/Units	Rate	Maturity Date	Principal (4)		Cost (4)		Fair Value (18)
SI East, LLC		August 31, 2018	Rigid Industrial Packaging Manufacturing
				Secured Debt		9.50%	8/31/2023		29,213		29,050		29,213
				Preferred Member Units	157						6,000		10,160	(8)
											35,050		39,373

Superior Rigging & Erecting Co.		August 31, 2020	Provider of Steel Erecting, Crane Rental & Rigging Services
				Secured Debt		12.00%	8/31/2025		21,500		21,306		21,306
				Preferred Member Units	1,571						4,500		4,500
											25,806		25,806

UniTek Global Services, Inc.	(11)	April 15, 2011	Provider of Outsourced Infrastructure Services
				Secured Debt		7.50% (L+6.50% Floor 1.00%)	8/20/2024		2,315		2,298		2,098	(9)
				Secured Debt		15.00% PIK	2/20/2025		1,092		1,092		1,091	(19)
				Preferred Stock	1,133,102	20.00% PIK					1,513		2,833	(8) (19)
				Preferred Stock	1,521,122	20.00% PIK					2,188		395	(8) (19)
				Preferred Stock	2,281,682	19.00% PIK					3,667		-	(19)
				Preferred Stock	4,336,866	13.50% PIK					7,924		-	(19)
				Common Stock	945,507						-		-
											18,682		6,417

Universal Wellhead Services Holdings, LLC	(10)	October 30, 2014	Provider of Wellhead Equipment, Designs, and Personnel to the Oil & Gas Industry
				Preferred Member Units	716,949	14.00% PIK					1,032		-	(19) (30)
				Member Units	4,000,000						4,000		-	(30)
											5,032		-

Volusion, LLC		January 26, 2015	Provider of Online Software-as-a-Service eCommerce Solutions
				Secured Debt		11.50%	1/26/2020		20,234		20,234		19,243	(17)
				Unsecured Convertible Debt		8.00%	11/16/2023		409		410		291
				Preferred Member Units	4,876,670						14,000		5,989
				Warrants	1,831,355		1/26/2025				2,576		-	(27)
											37,220		25,523

Subtotal Affiliate Investments (24.4% of net assets at fair value)										$	419,487	$	375,723

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, 2021

(dollars in thousands)

(Unaudited)


Portfolio Company (1) (20)		Investment Date (24)	Business Description	Type of Investment (2) (3) (15)	Shares/Units	Rate	Maturity Date	Principal (4)		Cost (4)		Fair Value (18)

Non-Control/Non-Affiliate Investments (7)

Acousti Engineering Company of Florida, Inc.	(10)	November 2, 2020	Interior Subcontractor Providing Acoustical Walls and Ceilings
				Secured Debt		10.00% (L+8.50%, Floor 1.50%)	10/31/2025		11,743		11,620		11,620	(9)

Adams Publishing Group, LLC	(10)	November 19, 2015	Local Newspaper Operator
				Secured Debt		8.75% (L+7.00%, Floor 1.75%)	7/3/2023		5,644		5,538		5,599	(9)

ADS Tactical, Inc.	(11)	March 7, 2017	Value-Added Logistics and Supply Chain Provider to the Defense Industry
				Secured Debt		6.75% (L+5.75%, Floor 1.00%)	3/19/2026		6,538		6,408		6,506

Affordable Care Holding Corp.	(10)	May 9, 2019	Dental Support Organization
				Secured Debt		5.75% (L+4.75%, Floor 1.00%)	10/22/2022		14,209		14,052		13,995	(9)

American Nuts, LLC	(10)	April 10, 2018	Roaster, Mixer and Packager of Bulk Nuts and Seeds
				Secured Debt		9.00% (L+8.00%, Floor 1.00%)	4/10/2023		12,102		11,943		12,102	(9)

American Teleconferencing Services, Ltd.	(11)	May 19, 2016	Provider of Audio Conferencing and Video Collaboration Solutions
				Secured Debt		7.50% (L+6.50%, Floor 1.00%)	6/8/2023		17,358		16,695		9,221	(9)

Arcus Hunting LLC	(10)	January 6, 2015	Manufacturer of Bowhunting and Archery Products and Accessories
				Secured Debt		11.00% (L+10.00%, Floor 1.00%)	3/31/2022		11,009		10,879		11,009	(9)

Arrow International, Inc	(10)	December 21, 2020	Manufacturer and Distributor of Charitable Gaming Supplies
				Secured Debt		9.23% (L+7.98%, Floor 1.25%)	12/21/2025		9,000		8,914		8,914	(9) (23)


ATX Networks Corp.	(11) (13) (21)	June 30, 2015	Provider of Radio Frequency Management Equipment
				Secured Debt		8.75% (7.25% Cash, 1.50% PIK) (1.50% PIK + L+6.25%, Floor 1.00%)	12/31/2023		13,453		13,422		12,309	(9) (19)

ASC Ortho Management Company, LLC	(10)	August 31, 2018	Provider of Orthopedic Services
				Secured Debt		8.50% (L+7.50%, Floor 1.00%)	8/31/2023		5,177		5,123		5,125	(9)
				Secured Debt		13.25% PIK	12/1/2023		2,186		2,164		2,186	(19)
											7,287		7,311

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, 2021

(dollars in thousands)

(Unaudited)


Portfolio Company (1) (20)		Investment Date (24)	Business Description	Type of Investment (2) (3) (15)	Shares/Units	Rate	Maturity Date	Principal (4)		Cost (4)		Fair Value (18)
Berry Aviation, Inc.	(10)	July 6, 2018	Charter Airline Services
				Secured Debt		12.00% (10.50% Cash, 1.5% PIK)	1/6/2024		4,641		4,614		4,641	(19)
				Preferred Member Units	122,416	16.00% PIK					151		151	(8) (19) (30)
				Preferred Member Units	1,548,387	8.00% PIK					1,671		1,438	(19) (30)
											6,436		6,230

BLST Operating Company, LLC.	(11)	December 19, 2013	Multi-Channel Retailer of General Merchandise
				Secured Debt		10.00% (L+8.50%, Floor 1.50%)	8/28/2025		5,879		5,879		5,408	(9)
				Common Stock	653,184						-		297
				Warrants	70,000		8/28/2030				-		32	(27)
											5,879		5,737

BigName Commerce, LLC	(10)	May 11, 2017	Provider of Envelopes and Complimentary Stationery Products
				Secured Debt		8.25% (L+7.25%, Floor 1.00%)	5/11/2022		1,993		1,986		1,993	(9)

Binswanger Enterprises, LLC	(10)	March 10, 2017	Glass Repair and Installation Service Provider
				Secured Debt		9.50% (L+8.50%, Floor 1.00%)	3/9/2022		12,958		12,831		12,958	(9)
				Member Units	1,050,000						1,050		730
											13,881		13,688

Brainworks Software, LLC	(10)	August 12, 2014	Advertising Sales and Newspaper Circulation Software
				Secured Debt		12.50% (Prime+9.25%, Floor 3.25%)	7/22/2019		7,817		7,817		5,542	(9) (14) (17)

Brightwood Capital Fund Investments	(12) (13)	July 21, 2014	Investment Partnership
				LP Interests (Brightwood Capital Fund III, LP)	1.6%						9,000		6,200	(8) (31)
				LP Interests (Brightwood Capital Fund IV, LP)	0.6%						4,500		4,500	(8) (31)
											13,500		10,700

Cadence Aerospace LLC	(10)	November 14, 2017	Aerostructure Manufacturing
				Secured Debt		9.50% (4.25% Cash, 5.25% PIK) (5.25% PIK + L+3.25%, Floor 1.00%)	11/14/2023		28,061		27,858		25,761	(9) (19)

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, 2021

(dollars in thousands)

(Unaudited)


Portfolio Company (1) (20)		Investment Date (24)	Business Description	Type of Investment (2) (3) (15)	Shares/Units	Rate	Maturity Date	Principal (4)		Cost (4)		Fair Value (18)
California Pizza Kitchen, Inc.	(11)	August 29, 2016	Casual Restaurant Group
				Secured Debt		11.50% (L+10.00%, Floor 1.50%)	11/23/2024		7,700		7,314		7,690	(9)
				Secured Debt		13.50% (1.00% Cash, 12.50% PIK) (1.00% Cash, L+11.00% PIK, Floor 1.50%)	11/23/2024		2,770		2,708		2,756	(9) (19)
				Secured Debt		15.00% (1.00% Cash, 14.00% PIK) (1.00% Cash, L+12.50% PIK, Floor 1.50%)	5/23/2025		2,371		2,371		2,318	(9) (19)
				Common Stock	169,088						949		3,847
											13,342		16,611

Central Security Group, Inc.	(11)	December 4, 2017	Security Alarm Monitoring Service Provider
				Secured Debt		7.00% (L+6.00%, Floor 1.00%)	10/16/2025		6,874		6,874		6,370	(9)
				Common Stock	329,084						1,481		1,399
											8,355		7,769

Cenveo Corporation	(11)	September 4, 2015	Provider of Digital Marketing Agency Services
				Secured Debt		10.50% (L+9.50%, Floor 1.00%)	6/7/2023		5,250		5,141		5,200	(9)
				Common Stock	177,130						5,309		2,362
											10,450		7,562

Chisholm Energy Holdings, LLC	(10)	May 15, 2019	Oil & Gas Exploration & Production
				Secured Debt		7.75% (L+6.25%, Floor 1.50%)	5/15/2026		2,857		2,797		2,573	(9)

Clarius BIGS, LLC	(10)	September 23, 2014	Prints & Advertising Film Financing
				Secured Debt		15.00% PIK	1/5/2015		2,832		2,832		31	(14) (17) (19)

Clickbooth.com, LLC	(10)	December 5, 2017	Provider of Digital Advertising Performance Marketing Solutions
				Secured Debt		9.50% (L+8.50%, Floor 1.00%)	1/31/2025		7,800		7,712		7,800	(9)

Copper Trail Fund Investments	(12) (13)	July 17, 2017	Investment Partnership
				LP Interests (CTEF I, LP)	375						-		67

Corel Corporation	(11) (13) (21)	July 24, 2019	Publisher of Desktop and Cloud-based Software
				Secured Debt		5.19% (L+5.00%)	7/2/2026		23,191		22,364		23,121

Darr Equipment LP	(10)	April 15, 2014	Heavy Equipment Dealer
				Secured Debt		12.50% (11.50% Cash, 1.00% PIK)	6/22/2023		5,974		5,974		5,974	(19)
				Warrants	915,734		12/23/2023				474		-	(29)
											6,448		5,974

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, 2021

(dollars in thousands)

(Unaudited)


Portfolio Company (1) (20)		Investment Date (24)	Business Description	Type of Investment (2) (3) (15)	Shares/Units	Rate	Maturity Date	Principal (4)		Cost (4)		Fair Value (18)
Digital River, Inc.	(11)	February 24, 2015	Provider of Outsourced e-Commerce Solutions and Services
				Secured Debt		8.00% (L+7.00%, Floor 1.00%)	2/12/2023		13,628		13,308		13,560	(9)

DTE Enterprises, LLC	(10)	April 13, 2018	Industrial Powertrain Repair and Services
				Secured Debt		10.00% (L+8.50%, Floor 1.50%)	4/13/2023		9,324		9,224		8,928	(9)
				Class AA Preferred Member Units (non-voting)		10.00% PIK					974		974	(8) (19)
				Class A Preferred Member Units	776,316						776		800
											10,974		10,702

Dynamic Communities, LLC	(10)	July 17, 2018	Developer of Business Events and Online Community Groups
				Secured Debt		12.50% (6.25% Cash, 6.25% PIK) (L+11.50%, Floor 1.00%)	7/17/2023		5,530		5,472		5,221	(9) (19)

Eastern Wholesale Fence LLC	(10)	November 19, 2020	Manufacturer and Distributor of Residential and Commercial Fencing Solutions
				Secured Debt		7.50%, (L+6.50%, Floor 1.00%)	10/30/2025		12,911		12,628		12,628	(9)

Echo US Holdings, LLC.	(10)	November 12, 2019	Developer and Manufacturer of PVC and Polypropylene Materials
				Secured Debt		7.88% (L+6.25%, Floor 1.63%)	10/25/2024		22,190		22,096		22,190	(9)

Electronic Transaction Consultants, LLC	(10)	July 24, 2020	Technology Service Provider for Toll Road and Infrastructure Operators
				Secured Debt		8.50% (L+7.50%, Floor 1.00%)	7/24/2025		10,000		9,837		9,992	(9)

EnCap Energy Fund Investments	(12) (13)	December 28, 2010	Investment Partnership
				LP Interests (EnCap Energy Capital Fund VIII, L.P.)	0.1%						3,813		1,107	(31)
				LP Interests (EnCap Energy Capital Fund VIII Co- Investors, L.P.)	0.4%						2,097		528	(31)
				LP Interests (EnCap Energy Capital Fund IX, L.P.)	0.1%						4,336		1,624	(8) (31)
				LP Interests (EnCap Energy	0.1%						8,773		6,778	(8) (31)

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, 2021

(dollars in thousands)

(Unaudited)


Portfolio Company (1) (20)		Investment Date (24)	Business Description	Type of Investment (2) (3) (15)	Shares/Units	Rate	Maturity Date	Principal (4)		Cost (4)		Fair Value (18)
				Capital Fund X, L.P.)
				LP Interests (EnCap Flatrock Midstream Fund II, L.P.)	0.8%						6,712		2,552	(8) (31)
				LP Interests (EnCap Flatrock Midstream Fund III, L.P.)	0.2%						6,949		6,019	(8) (31)
											32,680		18,608

Encino Acquisition Partners Holdings, Inc.	(11)	November 16, 2018	Oil & Gas Exploration & Production
				Secured Debt		7.75% (L+6.75%, Floor 1.00%)	10/29/2025		9,000		8,935		8,411	(9)

EPIC Y-Grade Services, LP	(11)	June 22, 2018	NGL Transportation & Storage
				Secured Debt		7.00% (L+6.00%, Floor 1.00%)	6/30/2027		6,944		6,858		6,042	(9)

Flip Electronics LLC	(10)	January 4, 2021	Distributor of Hard-to-Find and Obsolete Electronic Components
				Secured Debt		9.17% (L+8.09%, Floor 1.00%)	1/5/2026		5,400		5,287		5,287	(33)

Fortna, Inc.	(10)	July 23, 2019	Process, Physical Distribution and Logistics Consulting Services
				Secured Debt		5.11% (L+5.00%)	4/8/2025		7,654		7,547		7,564

Fuse, LLC	(11)	June 30, 2019	Cable Networks Operator
				Secured Debt		0.12	6/28/2024		1,810		1,810		1,472
				Common Stock	10,429						256		-
											2,066		1,472

GeoStabilization International (GSI)	(11)	December 31, 2018	Geohazard Engineering Services & Maintenance
				Secured Debt		5.36% (L+5.25%)	12/19/2025		11,195		11,112		11,167

Gexpro Services	(10)	February 24, 2020	Distributor of Industrial and Specialty Parts
				Secured Debt		8.00% (L+6.50%, Floor 1.50%)	2/24/2025		29,106		28,649		28,910	(9)

GoWireless Holdings, Inc.	(11)	December 31, 2017	Provider of Wireless Telecommunications Carrier Services
				Secured Debt		7.50% (L+6.50%, Floor 1.00%)	12/22/2024		16,862		16,744		16,841	(9)

Grupo Hima San Pablo, Inc.	(11)	March 7, 2013	Tertiary Care Hospitals
				Secured Debt		9.25% (L+7.00%, Floor 1.50%)	4/30/2019		4,504		4,504		2,730	(9) (17)
				Secured Debt		0.1375	10/15/2018		2,055		2,040		49	(17)
											6,544		2,779

GS HVAM Intermediate, LLC	(10)	October 18, 2019	Specialized Food Distributor
				Secured Debt		6.75% (L+5.75%, Floor 1.00%)	10/2/2024		11,889		11,794		11,849	(9)

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, 2021

(dollars in thousands)

(Unaudited)


Portfolio Company (1) (20)		Investment Date (24)	Business Description	Type of Investment (2) (3) (15)	Shares/Units	Rate	Maturity Date	Principal (4)		Cost (4)		Fair Value (18)
HDC/HW Intermediate Holdings	(10)	December 21, 2018	Managed Services and Hosting Provider
				Secured Debt		8.50% (L+7.50%, Floor 1.00%)	12/21/2023		3,466		3,424		3,355	(9)

Heartland Dental, LLC	(10)	September 9, 2020	Dental Support Organization
				Secured Debt		7.50% (L+6.50%, Floor 1.00%)	4/30/2025		14,925		14,523		15,037	(9)

Hunter Defense Technologies, Inc.	(10)	March 29, 2018	Provider of Military and Commercial Shelters and Systems
				Secured Debt		7.00% (L+6.00%, Floor 1.00%)	3/29/2023		34,739		34,362		34,739	(9)

HW Temps LLC		July 2, 2015	Temporary Staffing Solutions
				Secured Debt		8.00%	3/29/2023		9,681		9,590		8,886

Hyperion Materials & Technologies, Inc.	(11) (13)	September 12, 2019	Manufacturer of Cutting and Machine Tools & Specialty Polishing Compounds
				Secured Debt		6.50% (L+5.50%, Floor 1.00%)	8/28/2026		22,219		21,852		22,163	(9)

Ian, Evan & Alexander Corporation (EverWatch)	(10)	July 31, 2020	Cybersecurity, Software and Data Analytics provider to the Intelligence Community
				Secured Debt		9.50% (L+8.50%, Floor 1.00%)	7/31/2025		16,113		15,765		16,055	(9)

Implus Footcare, LLC	(10)	June 1, 2017	Provider of Footwear and Related Accessories
				Secured Debt		8.75% (L+7.75%, Floor 1.00%)	4/30/2024		18,843		18,545		17,283	(9)

Independent Pet Partners Intermediate Holdings, LLC	(10)	November 20, 2018	Omnichannel Retailer of Specialty Pet Products
				Secured Debt		6.20% PIK (L+6.00% PIK)	12/22/2022		6,306		6,306		6,306	(19)
				Secured Debt		6.00% PIK	11/20/2023		17,099		15,651		15,651	(19)
				Preferred Stock (non-voting)							3,235		3,235
				Preferred Stock (non-voting)							-		-
				Member Units	1,558,333						1,558		-
											26,750		25,192

Industrial Services Acquisition, LLC	(10)	June 17, 2016	Industrial Cleaning Services
				Unsecured Debt		13.00% (6.00% Cash, 7.00% PIK)	12/17/2022		5,722		5,683		5,722	(19)
				Preferred Member Units	144	10.00% PIK					114		147	(8) (19) (30)
				Preferred Member Units	80	20.00% PIK					73		85	(8) (19) (30)
				Member Units	900						900		690	(30)
											6,770		6,644

Inn of the Mountain Gods Resort and Casino	(11)	October 30, 2013	Hotel & Casino Owner & Operator
				Secured Debt		0.0925	11/30/2023		6,677		6,677		6,577

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, 2021

(dollars in thousands)

(Unaudited)


Portfolio Company (1) (20)		Investment Date (24)	Business Description	Type of Investment (2) (3) (15)	Shares/Units	Rate	Maturity Date	Principal (4)		Cost (4)		Fair Value (18)
Interface Security Systems, L.L.C	(10)	August 7, 2019	Commercial Security & Alarm Services
				Secured Debt		9.75% (8.75% Cash, 1.00% PIK) (1.00% PIK + L+7.00%, Floor 1.75%)	8/7/2023		7,276		7,184		7,276	(9) (19)

Intermedia Holdings, Inc.	(11)	August 3, 2018	Unified Communications as a Service
				Secured Debt		7.00% (L+6.00%, Floor 1.00%)	7/19/2025		20,839		20,759		20,885	(9)

Invincible Boat Company, LLC.	(10)	August 28, 2019	Manufacturer of Sport Fishing Boats
				Secured Debt		8.00% (L+6.50%, Floor 1.50%)	8/28/2025		8,661		8,581		8,661	(9)

Isagenix International, LLC	(11)	June 21, 2018	Direct Marketer of Health & Wellness Products
				Secured Debt		6.75% (L+5.75%, Floor 1.00%)	6/14/2025		5,469		5,440		4,127	(9)

Jackmont Hospitality, Inc.	(10)	May 26, 2015	Franchisee of Casual Dining Restaurants
				Secured Debt		7.75% (L+6.75%, Floor 1.00%)	5/26/2021		3,954		3,953		3,158	(9)

Joerns Healthcare, LLC	(11)	April 3, 2013	Manufacturer and Distributor of Health Care Equipment & Supplies
				Secured Debt		7.00% (L+6.00%, Floor 1.00%)	8/21/2024		4,016		3,959		3,884	(9)
				Common Stock	472,579						4,429		2,240
											8,388		6,124

Kemp Technologies Inc.	(10)	June 27, 2019	Provider of Application Delivery Controllers
				Secured Debt		7.50% (L+6.50%, Floor 1.00%)	3/29/2024		16,347		16,084		16,347	(9)
				Common Stock	903,225						1,395		1,395
											17,479		17,742

Klein Hersh, LLC	(10)	November 13, 2020	Executive and C-Suite Placement for the Life Sciences and Healthcare Industries
				Secured Debt		8.75% (L+8.00%, Floor 0.75%)	11/13/2025		32,094		31,299		31,299	(9)

Kore Wireless Group Inc.	(11)	December 31, 2018	Mission Critical Software Platform
				Secured Debt		5.70% (L+5.50%)	12/20/2024		19,041		18,959		19,018

Larchmont Resources, LLC	(11)	August 13, 2013	Oil & Gas Exploration & Production
				Secured Debt		9.00% (L+8.00%, Floor 1.00%)	8/9/2021		2,231		2,231		1,015	(9)
				Member Units	2,828						353		113	(30)
											2,584		1,128

Laredo Energy VI, LP	(10)	January 15, 2019	Oil & Gas Exploration & Production
				Member Units	1,155,952						11,560		10,118

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, 2021

(dollars in thousands)

(Unaudited)


Portfolio Company (1) (20)		Investment Date (24)	Business Description	Type of Investment (2) (3) (15)	Shares/Units	Rate	Maturity Date	Principal (4)		Cost (4)		Fair Value (18)
Lightbox Holdings, L.P.	(11)	May 23, 2019	Provider of Commercial Real Estate Software
				Secured Debt		5.20% (L+5.00%)	5/9/2026		14,738		14,554		14,590

LKCM Headwater Investments I, L.P.	(12) (13)	January 25, 2013	Investment Partnership
				LP Interests	2.3%						1,746		3,214	(31)

LL Management, Inc.	(10)	May 2, 2019	Medical Transportation Service Provider
				Secured Debt		8.25% (L+7.25%, Floor 1.00%)	9/25/2023		17,525		17,349		17,525	(9)

Logix Acquisition Company, LLC	(10)	June 24, 2016	Competitive Local Exchange Carrier
				Secured Debt		6.75% (L+5.75%, Floor 1.00%)	12/22/2024		26,061		24,559		25,149	(9)


Looking Glass Investments, LLC	(12) (13)	July 1, 2015	Specialty Consumer Finance
				Member Units	3						125		25

Lulu's Fashion Lounge, LLC	(10)	August 31, 2017	Fast Fashion E-Commerce Retailer
				Secured Debt		10.50% (8.00% Cash, 2.50% PIK) (2.50% PIK + L+7.00%, Floor 1.00%)	8/28/2022		11,023		10,879		9,425	(9) (19)

Lynx FBO Operating LLC	(10)	September 30, 2019	Fixed Based Operator in the General Aviation Industry
				Secured Debt		7.25% (L+5.75%, Floor 1.50%)	9/30/2024		13,589		13,360		13,589	(9)
				Member Units	4,872						687		780
											14,047		14,369

Mac Lean-Fogg Company	(10)	April 22, 2019	Manufacturer and Supplier for Auto and Power Markets
				Secured Debt		5.63% (L+5.00%, Floor 0.625%)	12/22/2025		17,167		17,070		17,167	(9)
				Preferred Stock		13.75% (4.50% Cash, 9.25% PIK)			1,863		1,863		1,863	(8) (19)
											18,933		19,030

Mako Steel, LP	(10)	March 15, 2021	Self-Storage Design & Construction
				Secured Debt		8.00% (L+7.25%, Floor 0.75%)	3/15/2026		16,977		16,596		16,596

MB2 Dental Solutions, LLC	(11)	January 28, 2021	Dental Partnership Organization
				Secured Debt		7.00% (L+6.00%, Floor 1.00%)	1/29/2027		8,322		8,167		8,167

Mills Fleet Farm Group, LLC	(10)	October 24, 2018	Omnichannel Retailer of Work, Farm and Lifestyle Merchandise
				Secured Debt		7.00% (L+6.00%, Floor 1.00%)	10/24/2024		15,079		14,826		14,839	(9)

NBG Acquisition Inc	(11)	April 28, 2017	Wholesaler of Home Décor Products
				Secured Debt		6.50% (L+5.50%, Floor 1.00%)	4/26/2024		4,070		4,036		3,670	(9)

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, 2021

(dollars in thousands)

(Unaudited)


Portfolio Company (1) (20)		Investment Date (24)	Business Description	Type of Investment (2) (3) (15)	Shares/Units	Rate	Maturity Date	Principal (4)		Cost (4)		Fair Value (18)
NinjaTrader, LLC	(10)	December 18, 2019	Operator of Futures Trading Platform
				Secured Debt		8.25% (L+6.75%, Floor 1.50%)	12/18/2024		16,875		16,560		16,849	(9)

NNE Partners, LLC	(10)	March 2, 2017	Oil & Gas Exploration & Production
				Secured Debt		9.44% (4.94% Cash, 4.50% PIK) (4.50% PIK + L+4.75%)	12/31/2023		23,946		23,844		21,769	(19)

Novetta Solutions, LLC	(11)	June 21, 2017	Provider of Advanced Analytics Solutions for Defense Agencies
				Secured Debt		6.00% (L+5.00%, Floor 1.00%)	10/17/2022		22,851		22,605		22,809	(9)
				Secured Debt		9.50% (L+8.50%, Floor 1.00%)	10/16/2023		1,069		1,069		1,070
											23,674		23,879


NTM Acquisition Corp.	(11)	July 12, 2016	Provider of B2B Travel Information Content
				Secured Debt		8.25% (7.25% Cash, 1.00% PIK) (1.00%PIK + L+6.25%, Floor 1.00%)	6/7/2024		4,706		4,706		4,588	(9) (19)

Ospemifene Royalty Sub LLC (QuatRx)	(10)	July 8, 2013	Estrogen-Deficiency Drug Manufacturer and Distributor
				Secured Debt		0.115	11/15/2026		4,736		4,736		91	(14)

Project Eagle Holdings, LLC	(10)	July 6, 2020	Provider of Secure Business Collaboration Software
				Secured Debt		9.25% (L+8.25%, Floor 1.00%)	7/6/2026		14,925		14,559		14,898	(9)


PaySimple, Inc.	(10)	September 9, 2019	Leading Technology Services Commerce Platform
				Secured Debt		5.64% (L+5.50%)	8/23/2025		27,857		27,627		27,787

PT Network, LLC	(10)	November 1, 2013	Provider of Outpatient Physical Therapy and Sports Medicine Services
				Secured Debt		8.50% (6.50% Cash, 2.00% PIK) (2.00% PIK + L+5.50%, Floor 1.00%)	11/30/2023		8,623		8,623		8,623	(9) (19)

Research Now Group, Inc. and Survey Sampling International, LLC	(11)	December 31, 2017	Provider of Outsourced Online Surveying
				Secured Debt		6.50% (L+5.50%, Floor 1.00%)	12/20/2024		20,283		19,873		20,175	(9)

RM Bidder, LLC	(10)	November 12, 2015	Scripted and Unscripted TV and Digital Programming Provider
				Warrants	187,161		10/20/2025				425		-	(26)
				Member Units	2,779						46		35
											471		35

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, 2021

(dollars in thousands)

(Unaudited)


Portfolio Company (1) (20)		Investment Date (24)	Business Description	Type of Investment (2) (3) (15)	Shares/Units	Rate	Maturity Date	Principal (4)		Cost (4)		Fair Value (18)
RTIC Subsidiary Holdings, LLC	(10)	September 1, 2020	Direct-To-Consumer eCommerce Provider of Outdoor Products
				Secured Debt		9.00% (L+7.75%, Floor 1.25%)	9/1/2025		18,659		18,428		18,629	(9)



SAFETY Investment Holdings, LLC		April 29, 2016	Provider of Intelligent Driver Record Monitoring Software and Services
				Member Units	2,000,000						2,000		2,730

Salient Partners L.P.	(11)	June 25, 2015	Provider of Asset Management Services
				Secured Debt		7.00% (L+6.00%, Floor 1.00%)	8/31/2021		6,251		6,246		3,374	(9)

Staples Canada ULC	(10) (13) (21)	September 14, 2017	Office Supplies Retailer
				Secured Debt		8.00% (L+7.00%, Floor 1.00%)	9/12/2024		18,058		17,938		17,651	(9) (22)

Team Public Choices, LLC	(11)	October 28, 2019	Home-Based Care Employment Service Provider
				Secured Debt		6.00% (L+5.00%, Floor 1.00%)	12/18/2027		12,500		12,137		12,469

Tectonic Financial, Inc.		May 15, 2017	Financial Services Organization
				Common Stock	200,000						2,000		3,070

TGP Holdings III LLC	(11)	September 30, 2017	Outdoor Cooking & Accessories
				Secured Debt		9.50% (L+8.50%, Floor 1.00%)	9/25/2025		5,500		5,451		5,462	(9)

Time Manufacturing Acquisition LLC	(11)	February 24, 2021	Manufacturer and Distributor of Utility Equipment
				Secured Debt		6.00% (L+5.00%, Floor 1.00%)	2/3/2023		1,500		1,497		1,506

The Pasha Group	(11)	February 2, 2018	Diversified Logistics and Transportation Provided
				Secured Debt		9.00% (L+8.00%, Floor 1.00%)	1/26/2023		10,638		10,147		10,558	(9)

U.S. TelePacific Corp.	(11)	September 14, 2016	Provider of Communications and Managed Services
				Secured Debt		6.50% (L+5.50%, Floor 1.00%)	5/2/2023		17,088		16,930		15,868	(9)

USA DeBusk LLC	(10)	October 22, 2019	Provider of Industrial Cleaning Services
				Secured Debt		6.75% (L+5.75%, Floor 1.00%)	10/22/2024		24,885		24,523		24,625	(9)

Veregy Consolidated, Inc.	(11)	November 9, 2020	Energy Service Company
				Secured Debt		7.00% (L+6.00%, Floor 1.00%)	11/3/2027		14,963		14,561		15,056	(9)

Vida Capital, Inc	(11)	October 10, 2019	Alternative Asset Manager
				Secured Debt		6.11% (L+6.00%)	10/1/2026		17,598		17,382		16,982

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, 2021

(dollars in thousands)

(Unaudited)


Portfolio Company (1) (20)		Investment Date (24)	Business Description	Type of Investment (2) (3) (15)	Shares/Units	Rate	Maturity Date	Principal (4)		Cost (4)		Fair Value (18)
Vistar Media, Inc.	(10)	February 17, 2017	Operator of Digital Out-of-Home Advertising Platform
				Secured Debt		13.00% (9.50% Cash, 3.50% PIK) (3.50% PIK + L+7.50%, Floor 2.00%)	4/3/2023		4,697		4,584		4,697	(9) (19)
				Preferred Stock	70,207						767		910
				Warrants	69,675		4/3/2029				-		920	(25)
											5,350		6,527

White Cap Parent, LLC	(10)	December 29, 2016	Distribution Platform of Specialty Construction Materials to Professional Concrete and Masonry Contractors											(8)
				Member Units							3,334		6,050

YS Garments, LLC	(11)	August 22, 2018	Designer and Provider of Branded Activewear
				Secured Debt		7.00% (L+6.00%, Floor 1.00%)	8/9/2024		13,997		13,907		12,947	(9)

Zilliant Incorporated		June 15, 2012	Price Optimization and Margin Management Solutions
				Preferred Stock	186,777						153		259
				Warrants	952,500		6/15/2022				1,071		1,190	(28)
											1,224		1,449

Short-term portfolio investments	(34) (35)								52,904		52,848		52,763

Subtotal Non-Control/Non-Affiliate Investments (79.9% of net assets at fair value)										$	1,281,784	$	1,231,444

Total Portfolio Investments, March 31, 2021 (181.7% of net assets at fair value)										$	2,597,735	$	2,800,131


(1)	All investments are Lower Middle Market portfolio investments, unless otherwise noted. See Note C 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 Facility 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 and Schedule 12-14 for a summary of geographic location of portfolio companies.
(4)	Principal is net of repayments. Cost is net of repayments and accumulated unearned income.
(5)	Control investments are defined by the 1940 Act, as investments in which more than 25% of the voting securities are owned or where the ability to nominate greater than 50% of the board representation is maintained.
(6)	Affiliate investments are defined by the 1940 Act as investments in which between 5% and 25% (inclusive) of the voting securities are owned and the investments are not classified as Control investments.
(7)	Non-Control/Non-Affiliate investments are defined by the 1940 Act as investments that are neither Control investments nor Affiliate investments.
(8)	Income producing through dividends or distributions.

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, 2021

(dollars in thousands)

(Unaudited)

(9)	Index based floating interest rate is subject to contractual minimum interest rate. A majority of the variable rate loans in the Company’s investment portfolio bear interest at a rate that may be determined by reference to either LIBOR or an alternate Base Rate (commonly based on the Federal Funds Rate or the Prime Rate), which typically resets semi-annually, quarterly, or monthly at the borrower’s option. The borrower may also elect to have multiple interest reset periods for each loan. For each such loan, the Company has provided the weighted average annual stated interest rate in effect at March 31, 2021. As noted in this schedule, 58% of the loans (based on the par amount) contain LIBOR floors which range between 0.50% and 2.00%, with a weighted-average LIBOR floor of approximately 1.11%.
(10)	Private Loan portfolio investment. See Note C for a description of Private Loan portfolio investments.
(11)	Middle Market portfolio investment. See Note C for a description of Middle Market portfolio investments.
(12)	Other Portfolio investment. See Note C 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)	All of the Company’s portfolio investments are generally subject to restrictions on resale as “restricted securities.”
(16)	External Investment Manager. Investment is not encumbered as security for the Company's Credit Facility or in support of the SBA-guaranteed debentures issued by the Funds.
(17)	Maturity date is under on-going negotiations with the portfolio company and other lenders, if applicable.
(18)	Investment fair value was determined using significant unobservable inputs, unless otherwise noted. See Note C for further discussion.
(19)	PIK interest income and cumulative dividend income represent income not paid currently in cash.
(20)	All portfolio company headquarters are based in the United States, unless otherwise noted.
(21)	Portfolio company headquarters are located outside of the United States.
(22)	In connection with the Company's debt investment in Staples Canada ULC and in an attempt to mitigate any potential adverse change in foreign exchange rates during the term of the Company's investment, the Company maintains a forward foreign currency contract with Cadence Bank to lend $24.4 million Canadian Dollars and receive $17.0 million U.S. Dollars with a settlement date of September 14, 2021. The unrealized depreciation on the forward foreign currency contract is $0.6 million as of December 31, 2020.
(23)	The Company has entered into an intercreditor agreement that entitles the Company to the "last out" tranche of the first lien secured loans, whereby the "first out" tranche will receive priority as to the "last out" tranche with respect to payments of principal, interest, and any other amounts due thereunder. Therefore, the Company receives a higher interest rate than the contractual stated interest rate of LIBOR plus 7.25% (Floor 1.25%) per the credit agreement and the Consolidated Schedule of Investments above reflects such higher rate.
(24)	Investment date represents the date of initial investment in the portfolio company.
(25)	Warrants are presented in equivalent shares with a strike price of $10.92 per share.
(26)	Warrants are presented in equivalent units with a strike price of $14.28 per unit.
(27)	Warrants are presented in equivalent shares/units with a strike price of $0.01 per share/unit.
(28)	Warrants are presented in equivalent shares with a strike price of $0.001 per share.
(29)	Warrants are presented in equivalent units with a strike price of $1.50 per unit.
(30)	Shares/Units represent ownership in an underlying Real Estate or HoldCo entity.
(31)	Investment is not unitized. Presentation is made in percent of fully diluted ownership unless otherwise indicated.
(32)	Portfolio company is in a bankruptcy process and, as such, the maturity date of our debt investment in this portfolio company will not be finally determined until such process is complete. As noted in footnote (14), our debt investment in this portfolio company is on non-accrual status.
(33)	The Company has entered into an intercreditor agreement that entitles the Company to the "last out" tranche of the first lien secured loans, whereby the "first out" tranche will receive priority as to the "last out" tranche with respect to payments of principal, interest, and any other amounts due

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

March 31, 2021

(dollars in thousands)

(Unaudited)

	thereunder. Therefore, the Company receives a higher interest rate than the contractual stated interest rate of LIBOR plus 7.50% (Floor 1.00%) per the credit agreement and the Consolidated Schedule of Investments above reflects such higher rate.
(34)	Short-term portfolio investments. See Note C for a description of short-term portfolio investments.
(35)	Short-term portfolio investments bear interest at index based floating interest rates which range from LIBOR plus 2.75% to LIBOR plus 4.75%, with LIBOR floors which range from 0% to 0.75% (with a weighted average LIBOR floor of approximately 0.14%), and with resulting interest rates which range from of 2.86% to 4.85% as of March 31, 2021.

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments

December 31, 2020

(dollars in thousands)


Portfolio Company (1) (20)		Investment Date (24)	Business Description	Type of Investment (2) (3) (15)	Shares/Units	Rate	Maturity Date	Principal (4)		Cost (4)		Fair Value (18)

Control Investments (5)

ASC Interests, LLC		August 1, 2013	Recreational and Educational Shooting Facility
				Secured Debt		13.00%	7/31/2022	$	1,750	$	1,715	$	1,715
				Member Units	1,500						1,500		1,120
											3,215		2,835

Analytical Systems Keco, LLC		August 16, 2019	Manufacturer of Liquid and Gas Analyzers
				Secured Debt		12.00% (L+10.00%, Floor 2.00%)	8/16/2024		5,155		4,874		4,874	(9)
				Preferred Member Units	3,200						3,200		3,200
				Warrants	420		8/16/2029				316		10	(27)
											8,390		8,084

ATS Workholding, LLC	(10)	March 10, 2014	Manufacturer of Machine Cutting Tools and Accessories
				Secured Debt		5.00%	11/16/2021		4,982		4,824		3,347	(14)
				Preferred Member Units	3,725,862						3,726		-
											8,550		3,347

Project BarFly, LLC	(10)	August 31, 2015	Casual Restaurant Group
				Secured Debt		7.00%	10/31/2024		343		343		343
				Member Units	37						1,584		1,584
											1,927		1,927

Bolder Panther Group, LLC		December 31, 2020	Consumer Goods and Fuel Retailer
				Secured Debt		10.50% (L+9.00%, Floor 1.50%)	12/31/2025		27,500		27,225		27,225	(9)
				Class A Preferred Member Units		14.00%					10,194		10,194	(30)
				Class B Preferred Member Units	140,000	8.00%					14,000		14,000	(30)
											51,419		51,419

Bond-Coat, Inc.		December 28, 2012	Casing and Tubing Coating Services
				Common Stock	57,508						6,350		2,040

Brewer Crane Holdings, LLC		January 9, 2018	Provider of Crane Rental and Operating Services
				Secured Debt		11.00% (L+10.00%, Floor 1.00%)	1/9/2023		8,556		8,513		8,513	(9)
				Preferred Member Units	2,950						4,280		5,850	(8)
											12,793		14,363

Bridge Capital Solutions Corporation		April 18, 2012	Financial Services and Cash Flow Solutions Provider
				Secured Debt		13.00%	12/11/2024		8,813		8,403		8,403
				Warrants	82		7/25/2026				2,132		3,220	(27)
				Secured Debt		13.00%	12/11/2024		1,000		998		998	(30)
				Preferred Member Units	17,742						1,000		1,000	(8) (30)
											12,533		13,621

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, 2020

(dollars in thousands)


Portfolio Company (1) (20)	Investment Date (24)	Business Description	Type of Investment (2) (3) (15)	Shares/Units	Rate	Maturity Date	Principal (4)		Cost (4)		Fair Value (18)
Café Brazil, LLC	April 20, 2004	Casual Restaurant Group
			Member Units	1,233						1,742		2,030	(8)

California Splendor Holdings LLC	March 30, 2018	Processor of Frozen Fruits
			Secured Debt		9.00% (L+8.00%, Floor 1.00%)	3/30/2023		8,100		8,014		8,043	(9)
			Secured Debt		11.00% (L+10.00%, Floor 1.00%)	3/30/2023		28,000		27,854		27,789	(9)
			Preferred Member Units	6,725						8,255		8,255	(8)
			Preferred Member Units	6,157						10,775		6,241	(8)
										54,898		50,328

CBT Nuggets, LLC	June 1, 2006	Produces and Sells IT Training Certification Videos
			Member Units	416						1,300		46,080	(8)

Centre Technologies Holdings, LLC	January 4, 2019	Provider of IT Hardware Services and Software Solutions
			Secured Debt		12.00% (L+10.00%, Floor 2.00%)	1/4/2024		11,628		11,549		11,549	(9)
			Preferred Member Units	12,696						5,840		6,160
										17,389		17,709

Chamberlin Holding LLC	February 26, 2018	Roofing and Waterproofing Specialty Contractor
			Secured Debt		9.00% (L+8.00%, Floor 1.00%)	2/26/2023		15,212		15,136		15,212	(9)
			Member Units	4,347						11,440		28,070	(8)
			Member Units	1,047,146						1,322		1,270	(8) (30)
										27,898		44,552

Charps, LLC	February 3, 2017	Pipeline Maintenance and Construction
			Unsecured Debt		10.00% (8.67% Cash, 1.33% PIK)	1/31/2024		9,388		7,641		8,475	(19)
			Secured Debt		15.00%	6/5/2022		669		669		669
			Preferred Member Units	1,600						400		10,520	(8)
										8,710		19,664

Clad-Rex Steel, LLC	December 20, 2016	Specialty Manufacturer of Vinyl-Clad Metal
			Secured Debt		10.50% (L+9.50%, Floor 1.00%)	12/20/2021		10,880		10,853		10,853	(9)
			Member Units	717						7,280		8,610	(8)
			Secured Debt		10.00%	12/20/2036		1,111		1,100		1,100	(30)
			Member Units	800						210		530	(30)
										19,443		21,093

CMS Minerals Investments	January 30, 2015	Oil & Gas Exploration & Production
			Member Units	100						2,179		1,624	(30)

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, 2020

(dollars in thousands)


Portfolio Company (1) (20)		Investment Date (24)	Business Description	Type of Investment (2) (3) (15)	Shares/Units	Rate	Maturity Date	Principal (4)		Cost (4)		Fair Value (18)
Cody Pools, Inc.		March 6, 2020	Designer of Residential and Commercial Pools
				Secured Debt		12.25% (L+10.50%, Floor 1.75%)	3/6/2025		14,216		14,092		14,216	(9)
				Preferred Member Units	587						8,317		14,940
											22,409		29,156

CompareNetworks Topco, LLC		January 29, 2019	Internet Publishing and Web Search Portals
				Secured Debt		12.00% (L+11.00%, Floor 1.00%)	1/29/2024		7,954		7,910		7,953	(9)
				Preferred Member Units	1,975						1,975		6,780	(8)
											9,885		14,733

Copper Trail Fund Investments	(12) (13)	July 17, 2017	Investment Partnership
				LP Interests (CTMH, LP)	38.8%						747		747	(31)

Datacom, LLC		May 30, 2014	Technology and Telecommunications Provider
				Secured Debt		8.00%	5/31/2021		1,800		1,800		1,615	(14)
				Secured Debt		10.50% PIK	5/31/2021		12,507		12,475		10,531	(14) (19)
				Class A Preferred Member Units	-						1,294		-
				Class B Preferred Member Units	6,453						6,030		-
											21,599		12,146

Digital Products Holdings LLC		April 1, 2018	Designer and Distributor of Consumer Electronics
				Secured Debt		11.00% (L+10.00%, Floor 1.00%)	4/1/2023		18,173		18,077		18,077	(9)
				Preferred Member Units	3,857						9,501		9,835	(8)
											27,578		27,912

Direct Marketing Solutions, Inc.		February 13, 2018	Provider of Omni-Channel Direct Marketing Services
				Secured Debt		12.00% (L+11.00%, Floor 1.00%)	2/13/2023		15,090		15,007		15,007	(9)
				Preferred Stock	8,400						8,400		19,380
											23,407		34,387

Gamber-Johnson Holdings, LLC ("GJH")		June 24, 2016	Manufacturer of Ruggedized Computer Mounting Systems
				Secured Debt		9.00% (L+7.00%, Floor 2.00%)	6/24/2021		19,838		19,807		19,838	(9)
				Member Units	8,619						14,844		52,490	(8)
											34,651		72,328

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, 2020

(dollars in thousands)


Portfolio Company (1) (20)		Investment Date (24)	Business Description	Type of Investment (2) (3) (15)	Shares/Units	Rate	Maturity Date	Principal (4)		Cost (4)		Fair Value (18)
Garreco, LLC		July 15, 2013	Manufacturer and Supplier of Dental Products
				Secured Debt		9.00% (L+8.00%, Floor 1.00%, Ceiling 1.50%)	1/31/2021		4,519		4,519		4,519	(9)
				Member Units	1,200						1,200		1,410
											5,719		5,929

GRT Rubber Technologies LLC ("GRT")		December 19, 2014	Manufacturer of Engineered Rubber Products
				Secured Debt		7.15% (L+7.00%)	12/31/2023		16,775		16,775		16,775
				Member Units	5,879						13,065		44,900	(8)
											29,840		61,675

Gulf Manufacturing, LLC		August 31, 2007	Manufacturer of Specialty Fabricated Industrial Piping Products
				Member Units	438						2,980		4,510	(8)

Gulf Publishing Holdings, LLC		April 29, 2016	Energy Industry Focused Media and Publishing
				Secured Debt		10.50% (5.25% Cash, 5.25% PIK) (L+9.50%, Floor 1.00%)	9/30/2020		250		250		250	(9) (17) (19)
				Secured Debt		12.50% (6.25% Cash, 6.25% PIK)	4/29/2021		13,147		13,135		12,044	(19)
				Member Units	3,681						3,681		-
											17,066		12,294

Harris Preston Fund Investments	(12) (13)	October 1, 2017	Investment Partnership
				LP Interests (2717 MH, L.P.)	49.3%						2,599		2,702	(31)
				LP Interests (2717 HPP-MS, L.P.)	49.3%						250		250	(31)
											2,849		2,952

Harrison Hydra-Gen, Ltd.		June 4, 2010	Manufacturer of Hydraulic Generators
				Common Stock	107,456						718		5,450	(8)

Jensen Jewelers of Idaho, LLC		November 14, 2006	Retail Jewelry Store
				Secured Debt		10.00% (Prime+6.75%, Floor 2.00%)	11/14/2023		3,400		3,374		3,400	(9)
				Member Units	627						811		7,620	(8)
											4,185		11,020

J&J Services, Inc.		October 31, 2019	Provider of Dumpster and Portable Toilet Rental Services
				Secured Debt		11.50%	10/31/2024		12,800		12,697		12,800
				Preferred Stock	2,814						7,085		12,680
											19,782		25,480

KBK Industries, LLC		January 23, 2006	Manufacturer of Specialty Oilfield and Industrial Products
				Member Units	325						783		13,200	(8)

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, 2020

(dollars in thousands)


Portfolio Company (1) (20)		Investment Date (24)	Business Description	Type of Investment (2) (3) (15)	Shares/Units	Rate	Maturity Date	Principal (4)		Cost (4)		Fair Value (18)
Kickhaefer Manufacturing Company, LLC		October 31, 2018	Precision Metal Parts Manufacturing
				Secured Debt		11.50%	10/31/2023		22,415		22,269		22,269
				Member Units	581						12,240		12,240
				Secured Debt		9.00%	10/31/2048		3,948		3,909		3,909
				Member Units	800						992		1,160	(8) (30)
											39,410		39,578

Market Force Information, LLC		July 28, 2017	Provider of Customer Experience Management Services
				Secured Debt		12.00% (L+11.00%, Floor 1.00%)	7/28/2023		1,600		1,600		1,600	(9)
				Secured Debt		12.00% PIK	7/28/2023		26,079		25,952		13,562	(14) (19)
				Member Units	743,921						16,642		-
											44,194		15,162

MH Corbin Holding LLC		August 31, 2015	Manufacturer and Distributor of Traffic Safety Products
				Secured Debt		13.00% (10.00% Cash, 3.00% PIK)	3/31/2022		8,570		8,527		8,280	(19)
				Preferred Member Units	66,000						4,400		2,370
				Preferred Member Units	4,000						6,000		-
											18,927		10,650

MSC Adviser I, LLC	(16)	November 22, 2013	Third Party Investment Advisory Services
				Member Units							29,500		116,760	(8) (31)

Mystic Logistics Holdings, LLC		August 18, 2014	Logistics and Distribution Services Provider for Large Volume Mailers
				Secured Debt		12.00%	1/17/2022		6,733		6,723		6,723
				Common Stock	5,873						2,720		8,990	(8)
											9,443		15,713

NAPCO Precast, LLC		January 31, 2008	Precast Concrete Manufacturing
				Member Units	2,955						2,975		16,100	(8)

Nebraska Vet AcquireCo, LLC (NVS)		December 31, 2020	Mixed-Animal Veterinary and Animal Health Product Provider
				Secured Debt		12.00%	12/31/2025		10,500		10,395		10,395
				Preferred Member Units	6,500						6,500		6,500
											16,895		16,895

NexRev LLC		February 28, 2018	Provider of Energy Efficiency Products & Services
				Secured Debt		11.00%	2/28/2023		17,097		17,016		16,726
				Preferred Member Units	86,400,000						6,880		1,470	(8)
											23,896		18,196

NRI Clinical Research, LLC		September 8, 2011	Clinical Research Service Provider
				Secured Debt		9.00%	6/8/2022		5,620		5,572		5,620
				Warrants	251,723		6/8/2027				252		1,490	(27)
				Member Units	1,454,167						765		5,600	(8)
											6,589		12,710

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, 2020

(dollars in thousands)


Portfolio Company (1) (20)	Investment Date (24)	Business Description	Type of Investment (2) (3) (15)	Shares/Units	Rate	Maturity Date	Principal (4)		Cost (4)		Fair Value (18)
NRP Jones, LLC	December 22, 2011	Manufacturer of Hoses, Fittings and Assemblies
			Secured Debt		12.00%	3/20/2023		2,080		2,080		2,080
			Member Units	65,962						3,717		2,821	(8)
										5,797		4,901

NuStep, LLC	January 31, 2017	Designer, Manufacturer and Distributor of Fitness Equipment
			Secured Debt		12.00%	1/31/2022		17,240		17,193		17,193
			Preferred Member Units	406						10,200		10,780
										27,393		27,973

OMi Holdings, Inc.	April 1, 2008	Manufacturer of Overhead Cranes
			Common Stock	1,500						1,080		20,380	(8)

Pearl Meyer Topco LLC	April 27, 2020	Provider of Executive Compensation Consulting Services
			Secured Debt		12.00%	4/27/2025		37,513		37,202		37,202
			Member Units	13,800						13,000		15,940	(8)
										50,202		53,142

Pegasus Research Group, LLC	January 6, 2011	Provider of Telemarketing and Data Services
			Member Units	460						1,290		8,830	(8)

PPL RVs, Inc.	June 10, 2010	Recreational Vehicle Dealer
			Secured Debt		7.50% (L+7.00%, Floor 0.50%)	11/15/2022		11,855		11,781		11,806	(9)
			Common Stock	2,000						2,150		11,500	(8)
										13,931		23,306

Principle Environmental, LLC (d/b/a TruHorizon Environmental Solutions)	February 1, 2011	Noise Abatement Service Provider
			Secured Debt		13.00%	4/30/2023		6,397		6,335		6,397
			Preferred Member Units	19,631						4,600		10,500	(8)
			Warrants	1,018		1/31/2021				1,200		870	(27)
										12,135		17,767

Quality Lease Service, LLC	June 8, 2015	Provider of Rigsite Accommodation Unit Rentals and Related Services
			Member Units	1,000						11,063		4,460

River Aggregates, LLC	March 30, 2011	Processor of Construction Aggregates
			Member Units	1,500						369		3,240	(30)

Tedder Industries, LLC	August 31, 2018	Manufacturer of Firearm Holsters and Accessories
			Secured Debt		12.00%	8/31/2023		16,400		16,301		16,301
			Preferred Member Units	479						8,136		8,136
										24,437		24,437

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, 2020

(dollars in thousands)


Portfolio Company (1) (20)		Investment Date (24)	Business Description	Type of Investment (2) (3) (15)	Shares/Units	Rate	Maturity Date	Principal (4)		Cost (4)		Fair Value (18)
Trantech Radiator Topco, LLC		May 31, 2019	Transformer Cooling Products and Services
				Secured Debt		12.00%	5/31/2024		8,720		8,644		8,644
				Common Stock	615						4,655		6,030	(8)
											13,299		14,674

UnionRock Energy Fund II, LP	(12) (13)	June 15, 2020	Oil & Gas Exploration & Production
				LP Interests	49.6%						2,894		2,894	(31)

Vision Interests, Inc.		June 5, 2007	Manufacturer / Installer of Commercial Signage
				Secured Debt		13.00%	9/30/2019		2,028		2,028		2,028	(17)
				Series A Preferred Stock	3,000,000						3,000		3,160
											5,028		5,188

Ziegler's NYPD, LLC		October 1, 2008	Casual Restaurant Group
				Secured Debt		6.50%	10/1/2022		1,000		1,000		979
				Secured Debt		12.00%	10/1/2022		625		625		625
				Secured Debt		14.00%	10/1/2022		2,750		2,750		2,750
				Warrants	587		10/1/2025				600		-	(27)
				Preferred Member Units	10,072						2,834		1,780
											7,809		6,134

Subtotal Control Investments (73.5% of net assets at fair value)										$	831,490	$	1,113,725

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, 2020

(dollars in thousands)


Portfolio Company (1) (20)		Investment Date (24)	Business Description	Type of Investment (2) (3) (15)	Shares/Units	Rate	Maturity Date	Principal (4)		Cost (4)		Fair Value (18)

Affiliate Investments (6)

AAC Holdings, Inc.	(11)	June 30, 2017	Substance Abuse Treatment Service Provider
				Secured Debt		18.00% (10.00% Cash, 8.00% PIK)	6/25/2025		9,406		9,187		9,187	(19)
				Common Stock	593,928						3,148		3,148
				Warrants	554,353		12/11/2025				-		2,938	(27)
											12,335		15,273

AFG Capital Group, LLC		November 7, 2014	Provider of Rent-to-Own Financing Solutions and Services
				Secured Debt		10.00%	5/25/2022		491		491		491
				Preferred Member Units	186						1,200		5,810
											1,691		6,301

American Trailer Rental Group LLC		June 7, 2017	Provider of Short-term Trailer and Container Rental
				Member Units	73,493						8,596		16,010	(30)

BBB Tank Services, LLC		April 8, 2016	Maintenance, Repair and Construction Services to the Above-Ground Storage Tank Market
				Unsecured Debt		12.00% (L+11.00%, Floor 1.00%)	4/8/2021		4,800		4,773		4,722	(9)
				Preferred Stock (non-voting)		15.00% PIK					151		151	(8) (19)
				Member Units	800,000						800		280
											5,724		5,153

Boccella Precast Products LLC		June 30, 2017	Manufacturer of Precast Hollow Core Concrete
				Member Units	2,160,000						2,256		6,040	(8)

Buca C, LLC		June 30, 2015	Casual Restaurant Group
				Secured Debt		10.25% (L+9.25%, Floor 1.00%)	6/30/2020		19,004		19,004		14,256	(9) (17)
				Preferred Member Units	6	6.00% PIK					4,770		-	(8) (19)
											23,774		14,256

CAI Software LLC		October 10, 2014	Provider of Specialized Enterprise Resource Planning Software
				Secured Debt		12.50%	12/7/2023		47,474		47,133		47,474
				Member Units	77,960						2,095		7,190	(8)
											49,228		54,664

Chandler Signs Holdings, LLC	(10)	January 4, 2016	Sign Manufacturer
				Class A Units	1,500,000						1,500		1,460

Charlotte Russe, Inc	(11)	May 28, 2013	Fast-Fashion Retailer to Young Women
				Common Stock	19,041						3,141		-

Classic H&G Holdings, LLC		March 12, 2020	Provider of Engineered Packaging Solutions
				Secured Debt		12.00%	3/12/2025		24,800		24,583		24,800
				Preferred Member Units	154						5,760		9,510	(8)
											30,343		34,310

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, 2020

(dollars in thousands)


Portfolio Company (1) (20)		Investment Date (24)	Business Description	Type of Investment (2) (3) (15)	Shares/Units	Rate	Maturity Date	Principal (4)		Cost (4)		Fair Value (18)
Congruent Credit Opportunities Funds	(12) (13)	January 24, 2012	Investment Partnership
				LP Interests (Congruent Credit Opportunities Fund II, LP)	19.8%						4,449		94	(31)
				LP Interests (Congruent Credit Opportunities Fund III, LP)	17.4%						11,741		11,540	(8) (31)
											16,190		11,634

Copper Trail Fund Investments	(12) (13)	July 17, 2017	Investment Partnership
				LP Interests (Copper Trail Energy Fund I, LP)	12.4%						2,161		1,782	(8) (31)

Dos Rios Partners	(12) (13)	April 25, 2013	Investment Partnership
				LP Interests (Dos Rios Partners, LP)	20.2%						6,605		5,417	(31)
				LP Interests (Dos Rios Partners - A, LP)	6.4%						2,097		1,720	(31)
											8,702		7,137

East Teak Fine Hardwoods, Inc.		April 13, 2006	Distributor of Hardwood Products
				Common Stock	6,250						480		300

EIG Fund Investments	(12) (13)	November 6, 2015	Investment Partnership
				LP Interests (EIG Global Private Debt Fund-A, L.P.)	11.1%						739		526	(8) (31)

Freeport Financial Funds	(12) (13)	June 13, 2013	Investment Partnership
				LP Interests (Freeport Financial SBIC Fund LP)	9.3%						5,974		5,264	(31)
				LP Interests (Freeport First Lien Loan Fund III LP)	6.0%						10,785		10,321	(8) (31)
											16,759		15,585

Harris Preston Fund Investments	(12) (13)	August 9, 2017	Investment Partnership
				LP Interests (HPEP 3, L.P.)	8.2%						3,071		3,258	(31)

Hawk Ridge Systems, LLC	(13)	December 2, 2016	Value-Added Reseller of Engineering Design and Manufacturing Solutions
				Secured Debt		11.00%	12/2/2023		18,400		18,366		18,400
				Preferred Member Units	226						2,850		8,030	(8)
				Preferred Member Units	226						150		420	(30)
											21,366		26,850

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, 2020

(dollars in thousands)


Portfolio Company (1) (20)		Investment Date (24)	Business Description	Type of Investment (2) (3) (15)	Shares/Units	Rate	Maturity Date	Principal (4)		Cost (4)		Fair Value (18)
Houston Plating and Coatings, LLC		January 8, 2003	Provider of Plating and Industrial Coating Services
				Unsecured Convertible Debt		8.00%	5/1/2022		3,000		3,000		2,900
				Member Units	322,297						2,352		5,080	(8)
											5,352		7,980

I-45 SLF LLC	(12) (13)	October 20, 2015	Investment Partnership
				Member Units (Fully diluted 20.0%; 24.40% profits interest) (8)	20.00% Fully Diluted, 24.40% Profits Interest						20,200		15,789	(8) (31)

L.F. Manufacturing Holdings, LLC	(10)	December 23, 2013	Manufacturer of Fiberglass Products
				Preferred Member Units (non-voting)		14.00% PIK					93		93	(8) (19)
				Member Units	2,179,001						2,019		2,050
											2,112		2,143

OnAsset Intelligence, Inc.		April 18, 2011	Provider of Transportation Monitoring / Tracking Products and Services
				Secured Debt		12.00% PIK	6/30/2021		7,301		7,301		7,301	(19)
				Unsecured Debt		10.00% PIK	6/30/2021		64		64		64	(19)
				Preferred Stock	912						1,981		-
				Warrants	5,333		4/18/2021				1,919		-	(27)
											11,265		7,365

PCI Holding Company, Inc.		December 18, 2012	Manufacturer of Industrial Gas Generating Systems
				Preferred Stock	1,500,000						3,927		4,130

Rocaceia, LLC (Quality Lease and Rental Holdings, LLC)		January 8, 2013	Provider of Rigsite Accommodation Unit Rentals and Related Services
				Secured Debt		12.00%	1/8/2018		30,369		29,865		-	(14) (32)
				Preferred Member Units	250						2,500		-
											32,365		-

Salado Stone Holdings, LLC	(10)	June 27, 2016	Limestone and Sandstone Dimension Cut Stone Mining Quarries
				Class A Preferred Units	2,000,000						2,000		1,250	(30)

Slick Innovations, LLC		September 13, 2018	Text Message Marketing Platform
				Secured Debt		13.00%	9/13/2023		5,720		5,605		5,719
				Common Stock	70,000						700		1,330
				Warrants	18,084		9/13/2028				181		360	(27)
											6,486		7,409

SI East, LLC		August 31, 2018	Rigid Industrial Packaging Manufacturing
				Secured Debt		9.50%	8/31/2023		32,963		32,760		32,962
				Preferred Member Units	157						6,000		9,780	(8)
											38,760		42,742

Superior Rigging & Erecting Co.		August 31, 2020	Provider of Steel Erection, Crane Rental & Rigging Services
				Secured Debt		12.00%	8/31/2025		21,500		21,298		21,298
				Preferred Member Units	1,473						4,500		4,500
											25,798		25,798

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, 2020

(dollars in thousands)


Portfolio Company (1) (20)		Investment Date (24)	Business Description	Type of Investment (2) (3) (15)	Shares/Units	Rate	Maturity Date	Principal (4)		Cost (4)		Fair Value (18)
UniTek Global Services, Inc.	(11)	April 15, 2011	Provider of Outsourced Infrastructure Services
				Secured Debt		7.50% (L+6.50% Floor 1.00%)	8/20/2024		2,708		2,687		2,426	(9)
				Preferred Stock	1,133,102	20.00% PIK					1,441		2,832	(8) (19)
				Preferred Stock	1,521,122	20.00% PIK					2,188		375	(8) (19)
				Preferred Stock	2,281,682	19.00% PIK					3,667		-	(19)
				Preferred Stock	4,336,866	13.50% PIK					7,924		-	(19)
				Common Stock	945,507						-		-
											17,907		5,633

Universal Wellhead Services Holdings, LLC	(10)	October 30, 2014	Provider of Wellhead Equipment, Designs, and Personnel to the Oil & Gas Industry
				Preferred Member Units	716,949	14.00% PIK					1,032		-	(19) (30)
				Member Units	4,000,000						4,000		-	(30)
											5,032		-

Volusion, LLC		January 26, 2015	Provider of Online Software-as-a-Service eCommerce Solutions
				Secured Debt		11.50%	1/26/2020		20,234		20,234		19,242	(17)
				Unsecured Convertible Debt		8.00%	11/16/2023		409		409		291
				Preferred Member Units	4,876,670						14,000		5,990
				Warrants	1,831,355		1/26/2025				2,576		-	(27)
											37,219		25,523

Subtotal Affiliate Investments (24.2% of net assets at fair value)										$	416,479	$	366,301

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, 2020

(dollars in thousands)


Portfolio Company (1) (20)		Investment Date (24)	Business Description	Type of Investment (2) (3) (15)	Shares/Units	Rate	Maturity Date	Principal (4)		Cost (4)		Fair Value (18)

Non-Control/Non-Affiliate Investments (7)

Acousti Engineering Company of Florida, Inc.	(10)	November 2, 2020	Interior Subcontractor Providing Acoustical Walls and Ceilings
				Secured Debt		10.00% (L+8.50%, Floor 1.50%)	10/31/2025		13,000		12,858		12,858	(9)

Adams Publishing Group, LLC	(10)	November 19, 2015	Local Newspaper Operator
				Secured Debt		8.75% (L+7.00%, Floor 1.75%)	7/3/2023		5,863		5,745		5,813	(9)

ADS Tactical, Inc.	(10)	March 7, 2017	Value-Added Logistics and Supply Chain Provider to the Defense Industry
				Secured Debt		7.00% (L+6.25%, Floor 0.75%)	7/26/2023		19,633		19,529		19,633	(9)

Aethon United BR LP	(10)	September 8, 2017	Oil & Gas Exploration & Production
				Secured Debt		7.75% (L+6.75%, Floor 1.00%)	9/8/2023		9,750		9,659		9,544	(9)

Affordable Care Holding Corp.	(10)	May 9, 2019	Dental Support Organization
				Secured Debt		5.75% (L+4.75%, Floor 1.00%)	10/22/2022		14,246		14,066		14,044	(9)

ALKU, LLC.	(11)	October 18, 2019	Specialty National Staffing Operator
				Secured Debt		5.75% (L+5.50%)	7/29/2026		9,466		9,385		9,478

American Nuts, LLC	(10)	April 10, 2018	Roaster, Mixer and Packager of Bulk Nuts and Seeds
				Secured Debt		9.00% (L+8.00%, Floor 1.00%)	4/10/2023		12,130		11,954		12,111	(9)

American Teleconferencing Services, Ltd.	(11)	May 19, 2016	Provider of Audio Conferencing and Video Collaboration Solutions
				Secured Debt		7.50% (L+6.50%, Floor 1.00%)	6/8/2023		17,358		16,634		8,071	(9)

APTIM Corp.	(11)	August 17, 2018	Engineering, Construction & Procurement
				Secured Debt		7.75%	6/15/2025		12,452		11,063		9,734

Arcus Hunting LLC	(10)	January 6, 2015	Manufacturer of Bowhunting and Archery Products and Accessories
				Secured Debt		11.00% (L+10.00%, Floor 1.00%)	3/31/2021		11,009		11,009		11,009	(9)

Arrow International, Inc	(10)	December 21, 2020	Manufacturer and Distributor of Charitable Gaming Supplies
				Secured Debt		9.23% (L+7.98%, Floor 1.25%)	12/21/2025		10,000		9,901		9,901	(9) (23)

ASC Ortho Management Company, LLC	(10)	August 31, 2018	Provider of Orthopedic Services
				Secured Debt		8.50% (L+7.50%, Floor 1.00%)	8/31/2023		5,206		5,148		5,149	(9)
				Secured Debt		13.25% PIK	12/1/2023		2,116		2,091		2,116	(19)
											7,239		7,265

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, 2020

(dollars in thousands)


Portfolio Company (1) (20)		Investment Date (24)	Business Description	Type of Investment (2) (3) (15)	Shares/Units	Rate	Maturity Date	Principal (4)		Cost (4)		Fair Value (18)
ATX Networks Corp.	(11) (13) (21)	June 30, 2015	Provider of Radio Frequency Management Equipment
				Secured Debt		8.75% (7.25% Cash, 1.50% PIK) (1.50% PIK + L+6.25%, Floor 1.00%)	12/31/2023		13,402		13,342		12,263	(9) (19)

Berry Aviation, Inc.	(10)	July 6, 2018	Charter Airline Services
				Secured Debt		12.00% (10.50% Cash, 1.5% PIK)	1/6/2024		4,624		4,595		4,624	(19)
				Preferred Member Units	122,416	16.00% PIK					145		145	(8) (19) (30)
				Preferred Member Units	1,548,387	8.00% PIK					1,671		904	(19) (30)
											6,411		5,673

BigName Commerce, LLC	(10)	May 11, 2017	Provider of Envelopes and Complimentary Stationery Products
				Secured Debt		8.25% (L+7.25%, Floor 1.00%)	5/11/2022		2,044		2,037		2,011	(9)

Binswanger Enterprises, LLC	(10)	March 10, 2017	Glass Repair and Installation Service Provider
				Secured Debt		9.50% (L+8.50%, Floor 1.00%)	3/9/2022		12,958		12,798		12,958	(9)
				Member Units	1,050,000						1,050		670
											13,848		13,628

BLST Operating Company, LLC.	(11)	December 19, 2013	Multi-Channel Retailer of General Merchandise
				Secured Debt		10.00% (L+8.50%, Floor 1.50%)	8/28/2025		5,879		5,879		5,879	(9)
				Common Stock	653						-		-
				Warrants	70		8/28/2030				-		-	(27)
											5,879		5,879

Brainworks Software, LLC	(10)	August 12, 2014	Advertising Sales and Newspaper Circulation Software
				Secured Debt		12.50% (Prime+9.25%, Floor 3.25%)	7/22/2019		7,817		7,817		5,332	(9) (14) (17)

Brightwood Capital Fund Investments	(12) (13)	July 21, 2014	Investment Partnership
				LP Interests (Brightwood Capital Fund III, LP)	1.6%						10,800		8,459	(8) (31)
				LP Interests (Brightwood Capital Fund IV, LP)	0.6%						5,000		4,745	(8) (31)
											15,800		13,204

Cadence Aerospace LLC	(10)	November 14, 2017	Aerostructure Manufacturing
				Secured Debt		9.50% (4.25% Cash, 5.25% PIK) (5.25% PIK + L+3.25%, Floor 1.00%)	11/14/2023		27,703		27,484		26,359	(9) (19)

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, 2020

(dollars in thousands)


Portfolio Company (1) (20)		Investment Date (24)	Business Description	Type of Investment (2) (3) (15)	Shares/Units	Rate	Maturity Date	Principal (4)		Cost (4)		Fair Value (18)
California Pizza Kitchen, Inc.	(11)	August 29, 2016	Casual Restaurant Group
				Secured Debt		11.50% (L+10.00%, Floor 1.50%)	11/23/2024		7,700		7,288		7,315	(9)
				Secured Debt		13.50% (1.00% Cash, 12.50% PIK) (1.00% Cash, L+11.00% PIK, Floor 1.50%)	11/23/2024		2,657		2,590		2,524	(9) (19)
				Secured Debt		15.00% (1.00% Cash, 14.00% PIK) (1.00% Cash, L+12.50% PIK, Floor 1.50%)	5/23/2025		2,291		2,291		1,833	(9) (19)
				Common Stock	169,088						949		1,860
											13,118		13,532

Central Security Group, Inc.	(11)	December 4, 2017	Security Alarm Monitoring Service Provider
				Secured Debt		7.00% (L+6.00%, Floor 1.00%)	10/16/2025		6,891		6,891		5,823	(9)
				Common Stock	329,084						1,481		1,645
											8,372		7,468

Cenveo Corporation	(11)	September 4, 2015	Provider of Digital Marketing Agency Services
				Secured Debt		10.50% (L+9.50%, Floor 1.00%)	6/7/2023		5,250		5,129		4,909	(9)
				Common Stock	177,130						5,309		2,613
											10,438		7,522

Chisholm Energy Holdings, LLC	(10)	May 15, 2019	Oil & Gas Exploration & Production
				Secured Debt		7.75% (L+6.25%, Floor 1.50%)	5/15/2026		3,571		3,498		3,274	(9)

Clarius BIGS, LLC	(10)	September 23, 2014	Prints & Advertising Film Financing
				Secured Debt		15.00% PIK	1/5/2015		2,832		2,832		31	(14) (17) (19)

Clickbooth.com, LLC	(10)	December 5, 2017	Provider of Digital Advertising Performance Marketing Solutions
				Secured Debt		9.50% (L+8.50%, Floor 1.00%)	1/31/2025		7,850		7,750		7,850	(9)

Construction Supply Investments, LLC	(10)	December 29, 2016	Distribution Platform of Specialty Construction Materials to Professional Concrete and Masonry Contractors
				Member Units							5,637		8,617

Copper Trail Fund Investments	(12) (13)	July 17, 2017	Investment Partnership
				LP Interests (CTEF I, LP)	375						-		67

Corel Corporation	(11) (13) (21)	July 24, 2019	Publisher of Desktop and Cloud-based Software
				Secured Debt		5.23% (L+5.00%)	7/2/2026		19,403		18,580		19,124

Darr Equipment LP	(10)	April 15, 2014	Heavy Equipment Dealer
				Secured Debt		12.50% (11.50% Cash, 1.00% PIK)	6/22/2023		5,959		5,959		5,959	(19)
				Warrants	915,734		12/23/2023				474		-	(29)
											6,433		5,959

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, 2020

(dollars in thousands)


Portfolio Company (1) (20)		Investment Date (24)	Business Description	Type of Investment (2) (3) (15)	Shares/Units	Rate	Maturity Date	Principal (4)		Cost (4)		Fair Value (18)
Digital River, Inc.	(11)	February 24, 2015	Provider of Outsourced e-Commerce Solutions and Services
				Secured Debt		8.00% (L+7.00%, Floor 1.00%)	2/12/2023		13,628		13,422		13,560	(9)

DTE Enterprises, LLC	(10)	April 13, 2018	Industrial Powertrain Repair and Services
				Secured Debt		10.00% (L+8.50%, Floor 1.50%)	4/13/2023		9,324		9,213		9,004	(9)
				Class AA Preferred Member Units (non-voting)		10.00% PIK					951		951	(8) (19)
				Class A Preferred Member Units	776,316						776		880
											10,940		10,835

Dynamic Communities, LLC	(10)	July 17, 2018	Developer of Business Events and Online Community Groups
				Secured Debt		12.50% (6.25% Cash, 6.25% PIK) (L+11.50%, Floor 1.00%)	7/17/2023		5,320		5,256		4,921	(9) (19)

Eastern Wholesale Fence LLC	(10)	November 19, 2020	Manufacturer and Distributor of Residential and Commercial Fencing Solutions
				Secured Debt		7.50%, (L+6.50%, Floor 1.00%)	10/30/2025		11,857		11,523		11,523	(9)

Echo US Holdings, LLC.	(10)	November 12, 2019	Developer and Manufacturer of PVC and Polypropylene Materials
				Secured Debt		7.88% (L+6.25%, Floor 1.63%)	10/25/2024		22,190		22,090		22,190	(9)

Electronic Transaction Consultants, LLC	(10)	July 24, 2020	Technology Service Provider for Toll Road and Infrastructure Operators
				Secured Debt		8.50% (L+7.50%, Floor 1.00%)	7/24/2025		10,000		9,829		9,829	(9)

EnCap Energy Fund Investments	(12) (13)	December 28, 2010	Investment Partnership
				LP Interests (EnCap Energy Capital Fund VIII, L.P.)	0.1%						3,813		959	(31)
				LP Interests (EnCap Energy Capital Fund VIII Co- Investors, L.P.)	0.4%						2,097		465	(31)
				LP Interests (EnCap Energy Capital Fund IX, L.P.)	0.1%						4,366		1,291	(8) (31)
				LP Interests (EnCap Energy Capital Fund X, L.P.)	0.1%						8,720		6,426	(8) (31)
				LP Interests (EnCap Flatrock	0.8%						6,706		2,546	(8) (31)

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, 2020

(dollars in thousands)


Portfolio Company (1) (20)		Investment Date (24)	Business Description	Type of Investment (2) (3) (15)	Shares/Units	Rate	Maturity Date	Principal (4)		Cost (4)		Fair Value (18)
				Midstream Fund II, L.P.)
				LP Interests (EnCap Flatrock Midstream Fund III, L.P.)	0.2%						6,982		5,793	(8) (31)
											32,684		17,480

Encino Acquisition Partners Holdings, Inc.	(11)	November 16, 2018	Oil & Gas Exploration & Production
				Secured Debt		7.75% (L+6.75%, Floor 1.00%)	10/29/2025		9,000		8,932		8,297	(9)

EPIC Y-Grade Services, LP	(11)	June 22, 2018	NGL Transportation & Storage
				Secured Debt		7.00% (L+6.00%, Floor 1.00%)	6/30/2027		6,944		6,854		5,799	(9)

Fortna, Inc.	(10)	July 23, 2019	Process, Physical Distribution and Logistics Consulting Services
				Secured Debt		5.15% (L+5.00%)	4/8/2025		7,673		7,553		7,486

Fuse, LLC	(11)	June 30, 2019	Cable Networks Operator
				Secured Debt		12.00%	6/28/2024		1,810		1,810		1,472
				Common Stock	10,429						256		-
											2,066		1,472

GeoStabilization International (GSI)	(11)	December 31, 2018	Geohazard Engineering Services & Maintenance
				Secured Debt		5.40% (L+5.25%)	12/19/2025		11,224		11,137		11,196

GoWireless Holdings, Inc.	(11)	December 31, 2017	Provider of Wireless Telecommunications Carrier Services
				Secured Debt		7.50% (L+6.50%, Floor 1.00%)	12/22/2024		17,113		16,988		16,976	(9)

Grupo Hima San Pablo, Inc.	(11)	March 7, 2013	Tertiary Care Hospitals
				Secured Debt		9.25% (L+7.00%, Floor 1.50%)	4/30/2019		4,504		4,504		3,375	(9) (17)
				Secured Debt		13.75%	10/15/2018		2,055		2,040		49	(17)
											6,544		3,424

GS HVAM Intermediate, LLC	(10)	October 18, 2019	Specialized Food Distributor
				Secured Debt		6.75% (L+5.75%, Floor 1.00%)	10/2/2024		11,053		10,952		11,007	(9)

Gexpro Services	(10)	February 24, 2020	Distributor of Industrial and Specialty Parts
				Secured Debt		8.00% (L+6.50%, Floor 1.50%)	2/24/2025		29,180		28,692		28,953	(9)

HDC/HW Intermediate Holdings	(10)	December 21, 2018	Managed Services and Hosting Provider
				Secured Debt		8.50% (L+7.50%, Floor 1.00%)	12/21/2023		3,474		3,429		3,351	(9)

Heartland Dental, LLC	(10)	September 9, 2020	Dental Support Organization
				Secured Debt		7.50% (L+6.50%, Floor 1.00%)	4/30/2025		14,925		14,501		14,501	(9)

Hunter Defense Technologies, Inc.	(10)	March 29, 2018	Provider of Military and Commercial Shelters and Systems
				Secured Debt		8.00% (L+7.00%, Floor 1.00%)	3/29/2023		35,246		34,820		35,246	(9)

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, 2020

(dollars in thousands)


Portfolio Company (1) (20)		Investment Date (24)	Business Description	Type of Investment (2) (3) (15)	Shares/Units	Rate	Maturity Date	Principal (4)		Cost (4)		Fair Value (18)
HW Temps LLC		July 2, 2015	Temporary Staffing Solutions
				Secured Debt		12.00%	3/29/2023		9,801		9,698		8,994

Hyperion Materials & Technologies, Inc.	(11) (13)	September 12, 2019	Manufacturer of Cutting and Machine Tools & Specialty Polishing Compounds
				Secured Debt		6.50% (L+5.50%, Floor 1.00%)	8/28/2026		22,275		21,894		20,813	(9)

Ian, Evan & Alexander Corporation (EverWatch)	(10)	July 31, 2020	Cybersecurity, Software and Data Analytics provider to the Intelligence Community
				Secured Debt		9.50% (L+8.50%, Floor 1.00%)	7/31/2025		16,529		16,158		16,158	(9)

Implus Footcare, LLC	(10)	June 1, 2017	Provider of Footwear and Related Accessories
				Secured Debt		8.75% (L+7.75%, Floor 1.00%)	4/30/2024		18,890		18,566		17,172	(9)

Independent Pet Partners Intermediate Holdings, LLC	(10)	November 20, 2018	Omnichannel Retailer of Specialty Pet Products
				Secured Debt		6.31% PIK (L+6.00% PIK)	12/22/2022		6,111		6,111		6,111	(19)
				Secured Debt		6.00% PIK	11/20/2023		16,670		15,086		15,086	(19)
				Preferred Stock (non-voting)							3,235		3,235
				Preferred Stock (non-voting)							-		-
				Member Units	1,558,333						1,558		-
											25,990		24,432

Industrial Services Acquisition, LLC	(10)	June 17, 2016	Industrial Cleaning Services
				Unsecured Debt		13.00% (6.00% Cash, 7.00% PIK)	12/17/2022		5,624		5,579		5,624	(19)
				Preferred Member Units	144	10.00% PIK					112		112	(8) (19) (30)
				Preferred Member Units	80	20.00% PIK					71		71	(8) (19) (30)
				Member Units	900						900		530	(30)
											6,662		6,337

Inn of the Mountain Gods Resort and Casino	(11)	October 30, 2013	Hotel & Casino Owner & Operator
				Secured Debt		9.25%	11/30/2023		6,677		6,677		6,677

Interface Security Systems, L.L.C	(10)	August 7, 2019	Commercial Security & Alarm Services
				Secured Debt		11.75% (8.75% Cash, 3.00% PIK) (3.00% PIK + L+7.00%, Floor 1.75%)	8/7/2023		7,245		7,145		7,245	(9) (19)

Intermedia Holdings, Inc.	(11)	August 3, 2018	Unified Communications as a Service
				Secured Debt		7.00% (L+6.00%, Floor 1.00%)	7/19/2025		20,839		20,755		20,823	(9)

Invincible Boat Company, LLC.	(10)	August 28, 2019	Manufacturer of Sport Fishing Boats
				Secured Debt		8.00% (L+6.50%, Floor 1.50%)	8/28/2025		8,876		8,793		8,876	(9)

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, 2020

(dollars in thousands)


Portfolio Company (1) (20)		Investment Date (24)	Business Description	Type of Investment (2) (3) (15)	Shares/Units	Rate	Maturity Date	Principal (4)		Cost (4)		Fair Value (18)
Isagenix International, LLC	(11)	June 21, 2018	Direct Marketer of Health & Wellness Products
				Secured Debt		6.75% (L+5.75%, Floor 1.00%)	6/14/2025		5,572		5,541		3,130	(9)

Jackmont Hospitality, Inc.	(10)	May 26, 2015	Franchisee of Casual Dining Restaurants
				Secured Debt		7.75% (L+6.75%, Floor 1.00%)	5/26/2021		3,954		3,953		3,157	(9)

Joerns Healthcare, LLC	(11)	April 3, 2013	Manufacturer and Distributor of Health Care Equipment & Supplies
				Secured Debt		7.00% (L+6.00%, Floor 1.00%)	8/21/2024		4,016		3,955		4,016	(9)
				Common Stock	472,579						4,429		2,795
											8,384		6,811

Kemp Technologies Inc.	(10)	June 27, 2019	Provider of Application Delivery Controllers
				Secured Debt		7.50% (L+6.50%, Floor 1.00%)	3/29/2024		17,387		17,088		17,387	(9)
				Common Stock	1,000,000						1,550		1,550
											18,638		18,937

Klein Hersh, LLC	(10)	November 13, 2020	Executive and C-Suite Placement for the Life Sciences and Healthcare Industries
				Secured Debt		8.75% (L+8.00%, Floor 0.75%)	11/13/2025		35,000		34,098		34,098	(9)

Kore Wireless Group Inc.	(11)	December 31, 2018	Mission Critical Software Platform
				Secured Debt		5.75% (L+5.50%)	12/20/2024		19,090		19,003		18,828

Larchmont Resources, LLC	(11)	August 13, 2013	Oil & Gas Exploration & Production
				Secured Debt		11.00% PIK (L+10.00% PIK, Floor 1.00%)	8/9/2021		2,185		2,185		983	(9) (19)
				Member Units	2,828						353		113	(30)
											2,538		1,096

Laredo Energy VI, LP	(10)	January 15, 2019	Oil & Gas Exploration & Production
				Member Units	1,155,952						11,560		10,238

Lightbox Holdings, L.P.	(11)	May 23, 2019	Provider of Commercial Real Estate Software
				Secured Debt		5.15% (L+5.00%)	5/9/2026		14,813		14,623		14,368

LKCM Headwater Investments I, L.P.	(12) (13)	January 25, 2013	Investment Partnership
				LP Interests	2.3%						1,746		3,524	(31)

LL Management, Inc.	(10)	May 2, 2019	Medical Transportation Service Provider
				Secured Debt		8.25% (L+7.25%, Floor 1.00%)	9/25/2023		16,504		16,337		16,504	(9)

Logix Acquisition Company, LLC	(10)	June 24, 2016	Competitive Local Exchange Carrier
				Secured Debt		6.75% (L+5.75%, Floor 1.00%)	12/22/2024		26,131		24,550		24,171	(9)

Looking Glass Investments, LLC	(12) (13)	July 1, 2015	Specialty Consumer Finance
				Member Units	3						125		25

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, 2020

(dollars in thousands)


Portfolio Company (1) (20)		Investment Date (24)	Business Description	Type of Investment (2) (3) (15)	Shares/Units	Rate	Maturity Date	Principal (4)		Cost (4)		Fair Value (18)
LSF9 Atlantis Holdings, LLC	(11)	May 17, 2017	Provider of Wireless Telecommunications Carrier Services
				Secured Debt		7.00% (L+6.00%, Floor 1.00%)	5/1/2023		9,206		9,206		9,177	(9)

Lulu's Fashion Lounge, LLC	(10)	August 31, 2017	Fast Fashion E-Commerce Retailer
				Secured Debt		10.50% (8.00% Cash, 2.50% PIK) (2.50% PIK + L+7.00%, Floor 1.00%)	8/28/2022		11,152		10,983		9,535	(9) (19)

Lynx FBO Operating LLC	(10)	September 30, 2019	Fixed Based Operator in the General Aviation Industry
				Secured Debt		7.25% (L+5.75%, Floor 1.50%)	9/30/2024		13,613		13,369		13,521	(9)
				Member Units	4,872						687		780
											14,056		14,301

Mac Lean-Fogg Company	(10)	April 22, 2019	Manufacturer and Supplier for Auto and Power Markets
				Secured Debt		5.63% (L+5.00%, Floor 0.625%)	12/22/2025		17,251		17,149		17,251	(9)
				Preferred Stock		13.75% (4.50% Cash, 9.25% PIK)			1,870		1,870		1,841	(8) (19)
											19,019		19,092

MHVC Acquisition Corp.	(11)	May 8, 2017	Provider of Differentiated Information Solutions, Systems Engineering, and Analytics
				Secured Debt		6.25% (L+5.25%, Floor 1.00%)	4/29/2024		19,797		19,716		19,846	(9)

Mills Fleet Farm Group, LLC	(10)	October 24, 2018	Omnichannel Retailer of Work, Farm and Lifestyle Merchandise
				Secured Debt		7.00% (L+6.00%, Floor 1.00%)	10/24/2024		13,860		13,595		13,609	(9)

NBG Acquisition Inc	(11)	April 28, 2017	Wholesaler of Home Décor Products
				Secured Debt		6.50% (L+5.50%, Floor 1.00%)	4/26/2024		4,070		4,034		3,399	(9)

NinjaTrader, LLC	(10)	December 18, 2019	Operator of Futures Trading Platform
				Secured Debt		8.25% (L+6.75%, Floor 1.50%)	12/18/2024		16,875		16,543		16,849	(9)

NNE Partners, LLC	(10)	March 2, 2017	Oil & Gas Exploration & Production
				Secured Debt		9.48% (4.75% Cash, 4.50% PIK) (4.50% PIK + L+4.75%)	12/31/2023		23,683		23,572		21,025	(19)

Project Eagle Holdings, LLC	(10)	July 6, 2020	Provider of Secure Business Collaboration Software
				Secured Debt		9.25% (L+8.25%, Floor 1.00%)	7/6/2026		14,963		14,583		14,583	(9)

Novetta Solutions, LLC	(11)	June 21, 2017	Provider of Advanced Analytics Solutions for Defense Agencies
				Secured Debt		6.00% (L+5.00%, Floor 1.00%)	10/17/2022		22,912		22,629		22,864	(9)

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, 2020

(dollars in thousands)


Portfolio Company (1) (20)		Investment Date (24)	Business Description	Type of Investment (2) (3) (15)	Shares/Units	Rate	Maturity Date	Principal (4)		Cost (4)		Fair Value (18)
NTM Acquisition Corp.	(11)	July 12, 2016	Provider of B2B Travel Information Content
				Secured Debt		8.25% (7.25% Cash, 1.00% PIK) (1.00%PIK + L+6.25%, Floor 1.00%)	6/7/2024		4,694		4,694		4,224	(9) (19)

Ospemifene Royalty Sub LLC (QuatRx)	(10)	July 8, 2013	Estrogen-Deficiency Drug Manufacturer and Distributor
				Secured Debt		11.50%	11/15/2026		4,765		4,765		121	(14)

PaySimple, Inc.	(10)	September 9, 2019	Leading Technology Services Commerce Platform
				Secured Debt		5.65% (L+5.50%)	8/23/2025		24,448		24,225		23,959

PricewaterhouseCoopers Public Sector LLP	(11)	May 24, 2018	Provider of Consulting Services to Governments
				Secured Debt		8.15% (L+8.00%)	5/1/2026		9,000		8,969		9,000

PT Network, LLC	(10)	November 1, 2013	Provider of Outpatient Physical Therapy and Sports Medicine Services
				Secured Debt		8.73% (6.73% Cash, 2.00% PIK) (2.00% PIK + L+5.50%, Floor 1.00%)	11/30/2023		8,601		8,601		8,601	(9) (19)

Research Now Group, Inc. and Survey Sampling International, LLC	(11)	December 31, 2017	Provider of Outsourced Online Surveying
				Secured Debt		6.50% (L+5.50%, Floor 1.00%)	12/20/2024		17,930		17,497		17,715	(9)

RM Bidder, LLC	(10)	November 12, 2015	Scripted and Unscripted TV and Digital Programming Provider
				Warrants	187,161		10/20/2025				425		-	(26)
				Member Units	2,779						46		26
											471		26

RTIC Subsidiary Holdings, LLC	(10)	September 1, 2020	Direct-To-Consumer eCommerce Provider of Outdoor Products
				Secured Debt		9.00% (L+7.75%, Floor 1.25%)	9/1/2025		17,260		17,026		17,026	(9)

SAFETY Investment Holdings, LLC		April 29, 2016	Provider of Intelligent Driver Record Monitoring Software and Services
				Member Units	2,000,000						2,000		2,350

Salient Partners L.P.	(11)	June 25, 2015	Provider of Asset Management Services
				Secured Debt		7.00% (L+6.00%, Floor 1.00%)	8/31/2021		6,450		6,443		4,542	(9)

Staples Canada ULC	(10) (13) (21)	September 14, 2017	Office Supplies Retailer
				Secured Debt		8.00% (L+7.00%, Floor 1.00%)	9/12/2024		13,032		12,896		12,382	(9) (22)

TEAM Public Choices, LLC	(10)	October 28, 2019	Home-Based Care Employment Service Provider
				Secured Debt		6.00% (L+5.00%, Floor 1.00%)	12/18/2027		12,500		12,126		12,406	(9)

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, 2020

(dollars in thousands)


Portfolio Company (1) (20)		Investment Date (24)	Business Description	Type of Investment (2) (3) (15)	Shares/Units	Rate	Maturity Date	Principal (4)		Cost (4)		Fair Value (18)
Tectonic Financial, Inc.		May 15, 2017	Financial Services Organization
				Common Stock	200,000						2,000		2,800

TGP Holdings III LLC	(11)	September 30, 2017	Outdoor Cooking & Accessories
				Secured Debt		9.50% (L+8.50%, Floor 1.00%)	9/25/2025		5,500		5,448		5,307	(9)

The Pasha Group	(11)	February 2, 2018	Diversified Logistics and Transportation Provided
				Secured Debt		9.00% (L+8.00%, Floor 1.00%)	1/26/2023		10,162		9,585		9,323	(9)

USA DeBusk LLC	(10)	October 22, 2019	Provider of Industrial Cleaning Services
				Secured Debt		6.75% (L+5.75%, Floor 1.00%)	10/22/2024		24,948		24,561		24,591	(9)

U.S. TelePacific Corp.	(11)	September 14, 2016	Provider of Communications and Managed Services
				Secured Debt		6.50% (L+5.50%, Floor 1.00%)	5/2/2023		17,088		16,913		15,486	(9)

Veregy Consolidated, Inc.	(11)	November 9, 2020	Energy Service Company
				Secured Debt		7.00% (L+6.00%, Floor 1.00%)	11/3/2027		15,000		14,587		14,888	(9)

Vida Capital, Inc	(11)	October 10, 2019	Alternative Asset Manager
				Secured Debt		6.15% (L+6.00%)	10/1/2026		17,853		17,626		17,272

Vistar Media, Inc.	(10)	February 17, 2017	Operator of Digital Out-of-Home Advertising Platform
				Secured Debt		12.00% (8.50% Cash, 3.50% PIK) (3.50% PIK + L+7.50%, Floor 1.00%)	4/3/2023		4,636		4,513		4,636	(9) (19)
				Preferred Stock	70,207						767		910
				Warrants	69,675		4/3/2029				-		920	(25)
											5,280		6,466

YS Garments, LLC	(11)	August 22, 2018	Designer and Provider of Branded Activewear
				Secured Debt		7.00% (L+6.00%, Floor 1.00%)	8/9/2024		13,997		13,902		12,911	(9)

Zilliant Incorporated		June 15, 2012	Price Optimization and Margin Management Solutions
				Preferred Stock	186,777						154		260
				Warrants	952,500		6/15/2022				1,071		1,190	(28)
											1,225		1,450

Subtotal Non-Control/Non-Affiliate Investments (79.5% of net assets at fair value)											1,268,740		1,204,840

Total Portfolio Investments, December 31, 2020 (177.2% of net assets at fair value)										$	2,516,709	$	2,684,866


(1)	All investments are Lower Middle Market portfolio investments, unless otherwise noted. See Note C 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 Facility or in support of the SBA-guaranteed debentures issued by the Funds.

Table of Contents

MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, 2020

(dollars in thousands)

(2)	Debt investments are income producing, unless otherwise noted. Equity and warrants are non-income producing, unless otherwise noted.
(3)	See Note C and Schedule 12-14 for a summary of geographic location of portfolio companies.
(4)	Principal is net of repayments. Cost is net of repayments and accumulated unearned income.
(5)	Control investments are defined by the 1940 Act, as investments in which more than 25% of the voting securities are owned or where the ability to nominate greater than 50% of the board representation is maintained.
(6)	Affiliate investments are defined by the 1940 Act as investments in which between 5% and 25% (inclusive) of the voting securities are owned and the investments are not classified as Control investments.
(7)	Non-Control/Non-Affiliate investments are defined by the 1940 Act as investments that are neither Control investments nor Affiliate investments.
(8)	Income producing through dividends or distributions.
(9)	Index based floating interest rate is subject to contractual minimum interest rate. 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, 2020. As noted in this schedule, 61% of the loans (based on the par amount) contain LIBOR floors which range between 0.50% and 2.00%, with a weighted-average LIBOR floor of approximately 1.11%.
(10)	Private Loan portfolio investment. See Note C for a description of Private Loan portfolio investments.
(11)	Middle Market portfolio investment. See Note C for a description of Middle Market portfolio investments.
(12)	Other Portfolio investment. See Note C 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)	All of the Company’s portfolio investments are generally subject to restrictions on resale as “restricted securities.”
(16)	External Investment Manager. Investment is not encumbered as security for the Company's Credit Facility or in support of the SBA-guaranteed debentures issued by the Funds.
(17)	Maturity date is under on-going negotiations with the portfolio company and other lenders, if applicable.
(18)	Investment fair value was determined using significant unobservable inputs, unless otherwise noted. See Note C for further discussion.
(19)	PIK interest income and cumulative dividend income represent income not paid currently in cash.
(20)	All portfolio company headquarters are based in the United States, unless otherwise noted.
(21)	Portfolio company headquarters are located outside of the United States.
(22)	In connection with the Company's debt investment in Staples Canada ULC and in an attempt to mitigate any potential adverse change in foreign exchange rates during the term of the Company's investment, the Company maintains a forward foreign currency contract with Cadence Bank to lend $15.8 million Canadian Dollars and receive $12.0 million U.S. Dollars with a settlement date of September 14, 2021. The unrealized appreciation on the forward foreign currency contract is $0.4 million as of December 31, 2020.
(23)	The Company has entered into an intercreditor agreement that entitles the Company to the "last out" tranche of the first lien secured loans, whereby the "first out" tranche will receive priority as to the "last out" tranche with respect to payments of principal, interest, and any other amounts due thereunder. Therefore, the Company receives a higher interest rate than the contractual stated interest rate of LIBOR plus 7.25% (Floor 1.25%) per the credit agreement and the Consolidated Schedule of Investments above reflects such higher rate.
(24)	Investment date represents the date of initial investment in the portfolio company.
(25)	Warrants are presented in equivalent shares with a strike price of $10.92 per share.
(26)	Warrants are presented in equivalent units with a strike price of $14.28 per unit.
(27)	Warrants are presented in equivalent shares/units with a strike price of $0.01 per share/unit.
(28)	Warrants are presented in equivalent shares with a strike price of $0.001 per share.
(29)	Warrants are presented in equivalent units with a strike price of $1.50 per unit.

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MAIN STREET CAPITAL CORPORATION

Consolidated Schedule of Investments (Continued)

December 31, 2020

(dollars in thousands)

(30)	Shares/Units represent ownership in an underlying Real Estate or HoldCo entity.
(31)	Investment is not unitized. Presentation is made in percent of fully diluted ownership unless otherwise indicated.
(32)	Portfolio company is in a bankruptcy process and, as such, the maturity date of our debt investment in this portfolio company will not be finally determined until such process is complete. As noted in footnote (14), our debt investment in this portfolio company is on non-accrual status.

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MAIN STREET CAPITAL CORPORATION

Notes to Consolidated Financial Statements

(Unaudited)

NOTE A—ORGANIZATION AND BASIS OF PRESENTATION

1. Organization

Main Street Capital Corporation (“MSCC”) is a principal investment firm primarily focused on providing customized debt and equity financing to lower middle market (“LMM”) companies and debt capital to middle market (“Middle Market”) companies. The portfolio investments of MSCC and its consolidated subsidiaries are typically made to support management buyouts, recapitalizations, growth financings, refinancings and acquisitions of companies that operate in a variety of industry sectors. MSCC seeks to partner with entrepreneurs, business owners and management teams and generally provides “one stop” financing alternatives within its LMM portfolio. MSCC and its consolidated subsidiaries invest primarily in secured debt investments, equity investments, warrants and other securities of LMM companies based in the United States and in secured debt investments of Middle Market companies generally headquartered in the United States.

MSCC was formed in March 2007 to operate as an internally managed business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). MSCC wholly owns several investment funds, including Main Street Mezzanine Fund, LP (“MSMF”) and Main Street Capital III, LP (“MSC III” and, together with MSMF, the “Funds”), and each of their general partners. The Funds are each licensed as a Small Business Investment Company (“SBIC”) by the United States Small Business Administration (“SBA”). 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 fee income for such services. MSCC has been granted no-action relief by the Securities and Exchange Commission (“SEC”) to allow the External Investment Manager to register as a registered investment adviser under the Investment Advisers Act of 1940, as amended. Since the External Investment Manager conducts all of its investment management activities for External Parties, it is accounted for as a portfolio investment of MSCC and is not included as a consolidated subsidiary of MSCC in MSCC’s consolidated financial statements.

MSCC has elected to be treated for U.S. federal income tax purposes as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). As a result, MSCC generally will not pay corporate-level U.S. federal income taxes on any net ordinary taxable income or capital gains that it distributes to its stockholders.

MSCC has certain direct and indirect wholly owned subsidiaries that have elected to be taxable entities (the “Taxable Subsidiaries”). The primary purpose of the Taxable Subsidiaries is to permit MSCC to hold equity investments in portfolio companies which are “pass-through” entities for tax purposes.

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 Companies (“ASC 946”). For each of the periods presented

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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 (as defined in Note C) investments, Other Portfolio (as defined in Note C) investments and the investment in the External Investment Manager (see “Note C—Fair Value Hierarchy for Investments and Debentures—Portfolio Composition—Investment Portfolio Composition” for additional discussion of Main Street’s Investment Portfolio). Main Street’s results of operations and cash flows for the three months ended March 31, 2021 and 2020, and financial position as of March 31, 2021 and December 31, 2020, 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 Articles 6, 10 and 12 of Regulation S-X. Accordingly, certain disclosures accompanying annual financial statements prepared in accordance with U.S. GAAP are omitted. In the opinion of management, the unaudited consolidated financial results included herein contain all adjustments, consisting solely of normal recurring accruals, considered necessary for the fair presentation of financial statements for the interim periods included herein. The results of operations for the three months ended March 31, 2021 and 2020 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, 2020. 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.

Principles of Consolidation

Under ASC 946, Main Street is precluded from consolidating other entities in which Main Street has equity investments, including those in which it has a controlling interest, unless the other entity is another investment company. An exception to this general principle in ASC 946 occurs if Main Street holds a controlling interest in an operating company that provides all or substantially all of its services directly to Main Street or to its portfolio companies. Accordingly, as noted above, MSCC’s consolidated financial statements include the financial position and operating results for the Funds and the Taxable Subsidiaries. Main Street has determined that none of its portfolio investments qualify for this exception, including the investment in the External Investment Manager. Therefore, Main Street’s Investment Portfolio is carried on the consolidated balance sheet at fair value, as discussed further in Note B.1., with any adjustments to fair value recognized as “Net Unrealized Appreciation (Depreciation)” on the consolidated statements of operations until the investment is realized, usually upon exit, resulting in any gain or loss being recognized as a “Net Realized Gain (Loss).”

Portfolio Investment Classification

Main Street classifies its Investment Portfolio in accordance with the requirements of the 1940 Act. Under the 1940 Act, (a) “Control Investments” are defined as investments in which Main Street owns more than 25% of the voting securities or has rights to maintain greater than 50% of the board representation, (b) “Affiliate Investments” are defined as investments in which Main Street owns between 5% and 25% (inclusive) of the voting securities and does not have rights to maintain greater than 50% of the board representation, and (c) “Non-Control/Non-Affiliate Investments” are defined as investments that are neither Control Investments nor Affiliate Investments. For purposes of determining the classification of its Investment Portfolio, Main Street has excluded consideration of any voting securities or board appointment rights held by third-party investment funds advised by the External Investment Manager.

NOTE B—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

1. Valuation of the Investment Portfolio

Main Street accounts for its Investment Portfolio at fair value. As a result, Main Street follows the provisions of ASC 820, Fair Value Measurements and Disclosures (“ASC 820”). ASC 820 defines fair value, establishes a framework for measuring fair value, establishes a fair value hierarchy based on the quality of inputs used to measure fair value and enhances disclosure requirements for fair value measurements. ASC 820 requires Main Street to assume that the

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portfolio investment is to be sold in the principal market to independent market participants, which may be a hypothetical market. Market participants are defined as buyers and sellers in the principal market that are independent, knowledgeable and willing and able to transact.

Main Street’s portfolio strategy calls for it to invest primarily in illiquid debt and equity securities issued by privately held, LMM companies and more liquid debt securities issued by Middle Market companies that are generally larger in size than the LMM companies. Main Street categorizes some of its investments in LMM companies and Middle Market companies as Private Loan portfolio investments, which are primarily debt securities in privately held companies that 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 may also include short-term portfolio investments that are atypical of Main Street’s LMM, Middle Market and Private Loan portfolio investments in that they are intended to be a short-term deployment of capital and are more liquid than investments within the other portfolios. Main Street’s portfolio investments may be subject to restrictions on resale.

LMM investments and Other Portfolio investments generally have no established trading market while Middle Market and short-term portfolio investments 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 by its Board of Directors and in accordance with the 1940 Act. Main Street’s valuation policies and processes are intended to provide a consistent basis for determining the fair value of Main Street’s Investment Portfolio.

For LMM portfolio investments, Main Street generally reviews external events, including private mergers, sales and acquisitions involving comparable companies, and includes these events in the valuation process by using an enterprise value waterfall methodology (“Waterfall”) for its LMM equity investments and an income approach using a yield-to-maturity model (“Yield-to-Maturity”) for its LMM debt investments. For Middle Market and short-term 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 deemed relevant that would affect the fair value of the investment. All of the valuation approaches for Main Street’s portfolio investments estimate the value of the investment as if Main Street were to sell, or exit, the investment as of the measurement date.

These valuation approaches consider the value associated with Main Street’s ability to control the capital structure of the portfolio company, as well as the timing of a potential exit. For valuation purposes, “control” portfolio investments are composed of debt and equity securities in companies for which Main Street has a controlling interest in the equity ownership of the portfolio company or the ability to nominate a majority of the portfolio company’s board of directors. For valuation purposes, “non-control” portfolio investments are generally composed of debt and equity securities in companies for which Main Street does not have a controlling interest in the equity ownership of the portfolio company or the ability to nominate a majority of the portfolio company’s board of directors.

Under the Waterfall valuation method, Main Street estimates the enterprise value of a portfolio company using a combination of market and income approaches or other appropriate valuation methods, such as considering recent transactions in the equity securities of the portfolio company or third-party valuations of the portfolio company, and then performs a waterfall calculation by allocating the enterprise value over the portfolio company’s securities in order of

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their preference relative to one another. The enterprise value is the fair value at which an enterprise could be sold in a transaction between two willing parties, other than through a forced or liquidation sale. Typically, privately held companies are bought and sold based on multiples of earnings before interest, taxes, depreciation and amortization (“EBITDA”), cash flows, net income, revenues, or in limited cases, book value. There is no single methodology for estimating enterprise value. For any one portfolio company, enterprise value is generally described as a range of values from which a single estimate of enterprise value is derived. In estimating the enterprise value of a portfolio company, Main Street analyzes various factors including the portfolio company’s historical and projected financial results. Due to SEC deadlines for Main Street’s quarterly and annual financial reporting, the operating results of a portfolio company used in the current period valuation are generally the results from the period ended three months prior to such valuation date and may include unaudited, projected, budgeted or pro forma financial information and may require adjustments for non-recurring items or to normalize the operating results that may require significant judgment in determining. In addition, projecting future financial results requires significant judgment regarding future growth assumptions. In evaluating the operating results, 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 Company’s determinations of the fair value of its LMM portfolio company investments. The nationally recognized independent financial advisory services firm is generally consulted relative to Main Street’s investments in each LMM portfolio company at least once every calendar year, and for Main Street’s investments in new LMM portfolio companies, at least once in the twelve-month period subsequent to the initial investment. In certain instances, Main Street may determine that it is not cost-effective, and as a result is not in its stockholders’ best interest, to consult with the nationally recognized independent financial advisory services firm on its investments in one or more

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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 16 LMM portfolio companies for the three months ended March 31, 2021, representing approximately 26% of the total LMM portfolio at fair value as of March 31, 2021, and on a total of 15 LMM portfolio companies for the three months ended March 31, 2020, representing approximately 26% of the total LMM portfolio at fair value as of March 31, 2020. Excluding its investments in LMM portfolio companies that, as of March 31, 2021 and 2020, as applicable, had not been in the Investment Portfolio for at least twelve months subsequent to the initial investment or whose primary purpose is to own real estate for which a third-party appraisal is obtained on at least an annual basis, the percentage of the LMM portfolio reviewed and certified by Main Street’s independent financial advisory services firm for the three months ended March 31, 2021 and 2020 was 29% of the total LMM portfolio at fair value as of both March 31, 2021 and 2020.

For valuation purposes, all of Main Street’s Middle Market portfolio investments are non-control investments. To the extent sufficient observable inputs are available to determine fair value, Main Street uses observable inputs to determine the fair value of these investments through obtaining third-party quotes or other independent pricing. For Middle Market portfolio investments for which it has determined that third-party quotes or other independent pricing are not available or appropriate, Main Street generally estimates the fair value based on the assumptions that it believes hypothetical market participants would use to value such Middle Market debt investments in a current hypothetical sale using the Yield-to-Maturity valuation method and such Middle Market equity investments in a current hypothetical sale using the Waterfall valuation method. Because the vast majority of the Middle Market portfolio investments are typically valued using third-party quotes or other independent pricing services (including 93% and 90% of the Middle Market portfolio investments as of March 31, 2021 and December 31, 2020, respectively), Main Street generally does not 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 financial advisory services firm analyzes and provides observations and recommendations and an assurance certification regarding the Company’s determinations of the fair value of its Private Loan portfolio company investments. The nationally recognized independent financial advisory services firm is generally consulted relative to Main Street’s investments in each Private Loan portfolio company at least once every calendar year, and for Main Street’s investments in new Private Loan portfolio 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 11 Private Loan portfolio companies for the three months ended March 31, 2021, representing approximately 22% of the total Private Loan portfolio at fair value as of March 31, 2021, and on a total of 10 Private Loan portfolio companies for the three months ended March 31, 2020, representing approximately 17% of the total Private Loan portfolio at fair value as of March 31, 2020. Excluding its investments in Private Loan portfolio companies that, as of March 31, 2021 and 2020, as applicable, had not been in the Investment Portfolio for at least twelve months subsequent to the initial investment and its investments in Private Loan portfolio companies that were not reviewed because the investment is valued based upon third-party quotes or other independent pricing, the percentage of the Private Loan portfolio reviewed and certified by Main Street’s independent financial advisory services firm for the three months ended March 31, 2021 and 2020 was 29% and 25% of the total Private Loan portfolio at fair value as of March 31, 2021 and 2020, respectively.

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For valuation purposes, all of Main Street’s short-term portfolio investments are non-control investments. To the extent sufficient observable inputs are available to determine fair value, Main Street uses observable inputs to determine the fair value of these investments through obtaining third-party quotes or other independent pricing. Because all of the short-term portfolio investments are typically valued using third-party quotes or other independent pricing services, Main Street generally does not consult with any financial advisory services firms in connection with determining the fair value of its short-term portfolio investments.

For valuation purposes, all of Main Street’s Other Portfolio investments are non-control investments. Main Street’s Other Portfolio investments comprised 5.1% and 3.6% of Main Street’s Investment Portfolio at fair value as of March 31, 2021 and December 31, 2020, respectively. Similar to the LMM investment portfolio, market quotations for Other Portfolio equity investments are generally not readily available. For its Other Portfolio equity investments, Main Street generally determines the fair value of these investments using the NAV valuation method.

For valuation purposes, Main Street’s investment in the External Investment Manager is a control investment. Market quotations are not readily available for this investment, and as a result, Main Street determines the fair value of the External Investment Manager using the Waterfall valuation method under the market approach. In estimating the enterprise value, Main Street analyzes various factors, including the entity’s historical and projected financial results, as well as its size, marketability and performance relative to the population of market comparables. This valuation approach estimates the value of the investment as if Main Street were to sell, or exit, the investment. In addition, Main Street considers its ability to control the capital structure of the company, as well as the timing of a potential exit, in connection with determining the fair value of the External Investment Manager.

Due to the inherent uncertainty in the valuation process, Main Street’s determination of fair value for its Investment Portfolio may differ materially from the values that would have been determined had a ready market for the securities existed. In addition, changes in the market environment, portfolio company performance and other events that may occur over the lives of the investments may cause the gains or losses ultimately realized on these investments to be materially different than the valuations currently assigned. Main Street determines the fair value of each individual investment and records changes in fair value as unrealized appreciation or depreciation.

Main Street uses an internally developed portfolio investment rating system in connection with its investment oversight, portfolio management and analysis and investment valuation procedures for its LMM portfolio companies. This system takes into account both quantitative and qualitative factors of the LMM portfolio company and the investments held therein.

The Board of Directors of Main Street has the final responsibility for overseeing, reviewing and approving, in good faith, Main Street’s determination of the fair value for its Investment Portfolio, as well as its valuation procedures, consistent with 1940 Act requirements. Main Street believes its Investment Portfolio as of March 31, 2021 and December 31, 2020 approximates fair value as of those dates based on the markets in which Main Street operates and other conditions in existence on those reporting dates.

2. Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the period. Actual results may differ from these estimates under different conditions or assumptions. Additionally, as explained in Note B.1., the consolidated financial statements include investments in the Investment Portfolio whose values have been estimated by Main Street with the oversight, review and approval by Main Street’s Board of Directors in the absence of readily ascertainable market values. Because of the inherent uncertainty of the Investment Portfolio valuations, those estimated values may differ materially from the values that would have been determined had a ready market for the securities existed.

The COVID-19 pandemic, and the related effect on the U.S. and global economies, has impacted, and threatens to continue to impact, the businesses and operating results of certain of Main Street’s portfolio companies, as well as market interest rate spreads. As a result of these and other current effects of the COVID-19 pandemic, as well as the

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uncertainty regarding the extent and duration of its impact, the valuation of Main Street’s Investment Portfolio has been experiencing increased volatility since the beginning of the COVID-19 pandemic.

3. Cash and Cash Equivalents

Cash and cash equivalents consist of cash and highly liquid investments with an original maturity of three months or less at the date of purchase. Cash and cash equivalents are carried at cost, which approximates fair value.

At March 31, 2021, cash balances totaling $62.1 million exceeded Federal Deposit Insurance Corporation insurance protection levels, subjecting the Company to risk related to the uninsured balance. All of the Company’s cash deposits are held at large established high credit quality financial institutions and management believes that the risk of loss associated with any uninsured balances is remote.

4. Interest, Dividend and Fee Income

Main Street records interest and dividend income on the accrual basis to the extent amounts are expected to be collected. Dividend income is recorded as dividends are declared by the portfolio company or at the point an obligation exists for the portfolio company to make a distribution. In accordance with Main Street’s valuation policies, Main Street evaluates accrued interest and dividend income periodically for collectability. When a loan or debt security becomes 90 days or more past due, and if Main Street otherwise does not expect the debtor to be able to service all of its debt or other obligations, Main Street will generally place the loan or debt security on non-accrual status and cease recognizing interest income on that loan or debt security until the borrower has demonstrated the ability and intent to pay contractual amounts due. If a loan or debt security’s status significantly improves regarding the debtor’s ability to service the debt or other obligations, or if a loan or debt security is sold or written off, Main Street removes it from non-accrual status.

As of March 31, 2021, Main Street’s total Investment Portfolio had six investments on non-accrual status, which comprised approximately 0.8% of its fair value and 2.9% of its cost. As of December 31, 2020, Main Street’s total Investment Portfolio had seven investments on non-accrual status, which comprised approximately 1.3% of its fair value and 3.6% 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. For the three months ended March 31, 2021 and 2020, (i) approximately 3.8% and 1.1%, respectively, of Main Street’s total investment income was attributable to PIK interest income not paid currently in cash and (ii) approximately 0.7% and 1.0%, respectively, of Main Street’s total investment income was attributable to cumulative dividend income not paid currently 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.

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 total investment income Main Street received from its Investment Portfolio in each of the periods presented is as follows:


	Three Months Ended
	March 31,
	2021		2020

	(dollars in thousands)
Interest, fee and dividend income:
Interest income	$	43,471	$	44,877
Dividend income		17,697		8,041
Fee income		1,639		3,232
Total interest, fee and dividend income	$	62,807	$	56,150

5. Deferred Financing Costs

Deferred financing costs include commitment fees and other costs related to Main Street’s multi-year revolving credit facility (the “Credit Facility”) and its unsecured notes, 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. See further discussion of Main Street’s debt in Note E. Deferred financing costs in connection with the Credit Facility are capitalized as an asset. Deferred financing costs in connection with all other debt arrangements are a direct deduction from the related debt liability.

6. Equity Offering Costs

The Company’s offering costs are charged against the proceeds from equity offerings when the proceeds are received.

7. Unearned Income—Debt Origination Fees and Original Issue Discount and Discounts / Premiums to Par Value

Main Street capitalizes debt origination fees received in connection with financings and reflects such fees as unearned income netted against the applicable debt investments. The unearned income from the fees is accreted into income based on the effective interest method over the life of the financing.

In connection with its portfolio debt investments, Main Street sometimes receives nominal cost warrants or warrants with an exercise price below the fair value of the underlying equity (together, “nominal cost equity”) that are valued as part of the negotiation process with the particular portfolio company. When Main Street receives nominal cost equity, Main Street allocates its cost basis in its investment between its debt security and its nominal cost equity at the time of origination based on amounts negotiated with the particular portfolio company. The allocated amounts are based upon the fair value of the nominal cost equity, which is then used to determine the allocation of cost to the debt security. Any discount recorded on a debt investment resulting from this allocation is reflected as unearned income, which is netted against the applicable debt investment, and accreted into interest income based on the effective interest method over the life of the debt investment. The actual collection of this interest is deferred until the time of debt principal repayment.

Main Street may also purchase debt securities at a discount or at a premium to the par value of the debt security. In the case of a purchase at a discount, Main Street records the investment at the par value of the debt security net of the discount, and the discount is accreted into interest income based on the effective interest method over the life of the debt investment. In the case of a purchase at a premium, Main Street records the investment at the par value of the debt security plus the premium, and the premium is amortized as a reduction to interest income based on the effective interest method over the life of the debt investment.

To maintain RIC tax treatment (as discussed in Note B.9. below), these non-cash sources of income may need to be paid out to stockholders in the form of distributions, even though Main Street may not have collected the interest income. For the three months ended March 31, 2021 and 2020, approximately 2.4% and 2.6%, respectively, of Main

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Street’s total investment income was attributable to interest income 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.

Main Street has also adopted Accounting Standards Update (“ASU”) 2016-09, Compensation—Stock Compensation: Improvements to Employee Share-Based Payment Accounting, which requires that all excess tax benefits and tax deficiencies (including tax benefits of dividends on share-based payment awards) be recognized as income tax expense or benefit in the income statement and not delay recognition of a tax benefit until the tax benefit is realized through a reduction to taxes payable. Accordingly, the tax effects of exercised or vested awards are treated as discrete items in the reporting period in which they occur. Additionally, Main Street has elected to account for forfeitures as they occur.

9. Income Taxes

MSCC has elected to be treated for U.S. federal income tax purposes as a RIC. MSCC’s taxable income includes the taxable income generated by MSCC and certain of its subsidiaries, including the Funds, which are treated as disregarded entities for tax purposes. As a RIC, MSCC generally will not pay corporate-level U.S. federal income taxes on any net ordinary taxable income or capital gains that MSCC distributes to its stockholders. MSCC must generally distribute at least 90% of its “investment company taxable income” (which is generally its net ordinary taxable income and realized net short-term capital gains in excess of realized net long-term capital losses) and 90% of its tax-exempt income to maintain its RIC status (pass-through tax treatment for amounts distributed). As part of maintaining RIC status, undistributed taxable income (subject to a 4% non-deductible U.S. federal excise tax) pertaining to a given fiscal year may be distributed up to 12 months subsequent to the end of that fiscal year, provided such dividends are declared on or prior to the later of (i) the filing of the U.S. federal income tax return for the applicable fiscal year or (ii) the fifteenth day of the ninth month following the close of the year in which such taxable income was generated.

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-of-income” requirements contained in the RIC tax provisions of the Code. The Taxable Subsidiaries are consolidated with Main Street for U.S. GAAP financial reporting purposes, and the portfolio investments held by the Taxable Subsidiaries are included in Main Street’s consolidated financial statements as portfolio investments and recorded at fair value. The Taxable Subsidiaries are not consolidated with MSCC for income tax purposes and may generate income tax expense, or benefit, and tax assets and liabilities, as a result of their ownership of certain portfolio investments. The taxable income, or loss, of the Taxable Subsidiaries may differ from their book income, or loss, due to temporary book and tax timing differences and permanent differences. The Taxable Subsidiaries are each taxed at their normal corporate tax rates based on their taxable income. The income tax expense, or benefit, if any, and the related tax assets and liabilities, of the Taxable Subsidiaries are reflected in Main Street’s consolidated financial statements.

The External Investment Manager is an indirect wholly owned subsidiary of MSCC owned through a Taxable Subsidiary and is a disregarded entity for tax purposes. The External Investment Manager has entered into a tax sharing agreement with its Taxable Subsidiary owner. Since the External Investment Manager is accounted for as a portfolio investment of MSCC and is not included as a consolidated subsidiary of MSCC in MSCC’s consolidated financial statements, and as a result of the tax sharing agreement with its Taxable Subsidiary owner, for its stand-alone financial reporting purposes the External Investment Manager is treated as if it is taxed at normal corporate tax rates based on its taxable income and, as a result of its activities, may generate income tax expense or benefit. The income tax expense, or benefit, if any, and the related tax assets and liabilities, of the External Investment Manager are reflected in the External Investment Manager’s separate financial statements.

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The Taxable Subsidiaries and the External Investment Manager use the liability method in accounting for income taxes. Deferred tax assets and liabilities are recorded for temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements, using statutory tax rates in effect for the year in which the temporary differences are expected to reverse. A valuation allowance is provided, if necessary, against deferred tax assets when it is more likely than not that some portion or all of the deferred tax asset will not be realized.

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.

10. Net Realized Gains or Losses and Net Unrealized Appreciation or Depreciation

Realized gains or losses are measured by the difference between the net proceeds from the sale or redemption of an investment or a financial instrument and the cost basis of the investment or financial instrument, without regard to unrealized appreciation or depreciation previously recognized, and includes investments written-off during the period net of recoveries and realized gains or losses from in-kind redemptions. Net unrealized appreciation or depreciation reflects the net change in the fair value of the Investment Portfolio and financial instruments and the reclassification of any prior period unrealized appreciation or depreciation on exited investments and financial instruments to realized gains or losses.

11. Fair Value of Financial Instruments

Fair value estimates are made at discrete points in time based on relevant information. These estimates may be subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Main Street believes that the carrying amounts of its financial instruments, consisting of cash and cash equivalents, receivables, payables and other liabilities approximate the fair values of such items due to the short-term nature of these instruments.

To estimate the fair value of Main Street’s multiple tranches of unsecured debt instruments as disclosed in Note E – Debt, Main Street uses quoted market prices. For the estimated fair value of Main Street’s SBIC debentures, Main Street uses the Yield-to-Maturity valuation method based on projections of the discounted future free cash flows that the debt security will likely generate, including both the discounted cash flows of the associated interest and principal amounts for the debt security.

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 March 2020, the FASB issued ASU 2020-04, “Reference rate reform (Topic 848)—Facilitation of the effects of reference rate reform on financial reporting.” The amendments in this update provide optional expedients and exceptions for applying U.S. GAAP to certain contracts and hedging relationships that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform and became effective upon issuance for all entities. The Company has agreements that have LIBOR as a reference rate with certain portfolio companies and also with certain lenders. Many of these agreements include language for choosing an alternative successor rate if LIBOR reference is no longer considered to be appropriate. Contract modifications are required to be evaluated in determining whether the modifications result in the establishment of new contracts or the continuation of existing contracts. The Company adopted this amendment in March 2020 and plans to apply the amendments in this update to account for contract modifications due to changes in reference rates. The Company continues to evaluate the impact that the amendments in this update will have on its consolidated financial statements and disclosures when applied.

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In May 2020, the SEC published Release No. 33-10786 (the “May 2020 Release”), Amendments to Financial Disclosures about Acquired and Disposed Businesses, announcing its adoption of rules amending Rule 1-02(w)(2) under Regulation S-X used in the determination of a significant subsidiary specific to investment companies, including BDCs. In part, the rules adopted pursuant to the May 2020 Release eliminated the use of the asset test, and amended the income and investment tests for determining whether an unconsolidated subsidiary requires additional disclosure in the footnotes of the financial statements. Main Street adopted the rules pursuant to the May 2020 Release during the quarter ended June 30, 2020. The impact of the adoption of these rules on Main Street’s consolidated financial statements was not material.

In December 2020, the SEC published Release No. IC-34084 (the “December 2020 Release”) Use of Derivatives by Registered Investment Companies and Business Development Companies, announcing its adoption of Rule 18f-4 and amendment of Rule 6c-11 under the 1940 Act to provide an updated, comprehensive approach to the regulation of registered investment companies’, including BDCs’, use of derivatives and address investor protection concerns. In part, the rules adopted pursuant to the December 2020 Release require that funds using derivatives generally will have to adopt a derivatives risk management program that a derivatives risk manager administers and that the fund’s board of directors oversees, and comply with an outer limit on fund leverage. Funds that use derivatives only in a limited manner will not be subject to these requirements, but they will have to adopt and implement policies and procedures reasonably designed to manage the fund’s derivatives risks. Funds also will be subject to reporting and recordkeeping requirements regarding their derivatives use. Main Street adopted the rules pursuant to the December 2020 Release during the quarter ended March 31, 2021. As Main Street is a limited user of derivatives, the impact of the adoption of these rules on the consolidated financial statements was not 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).

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:

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Quoted prices for similar assets in active markets (for example, investments in restricted stock);

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Quoted prices for identical or similar assets in non-active markets (for example, investments in thinly traded public companies);

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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 privately held companies). These inputs reflect management’s own assumptions about the assumptions a market participant would use in pricing the investment.

As required by ASC 820, when the inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement in its entirety. For example, a Level 3 fair value measurement may include inputs that are observable (Levels 1 and 2) and unobservable (Level 3). Therefore, unrealized appreciation and depreciation related to such investments categorized within the Level 3 tables below may include changes in fair value that are attributable to both observable inputs (Levels 1 and 2) and unobservable inputs (Level 3).

As of March 31, 2021 and December 31, 2020, all of Main Street’s LMM portfolio investments consisted of illiquid securities issued by privately held companies and the fair value determination for these investments primarily consisted of unobservable inputs. As a result, all of Main Street’s LMM portfolio investments were categorized as Level 3 as of March 31, 2021 and December 31, 2020.

As of March 31, 2021 and December 31, 2020, Main Street’s Middle Market portfolio investments consisted primarily of investments in secured and unsecured debt investments and independently rated debt investments. The fair value determination for these investments consisted of a combination of observable inputs in non-active markets for which sufficient observable inputs were not available to determine the fair value of these investments and unobservable inputs. As a result, all of Main Street’s Middle Market portfolio investments were categorized as Level 3 as of March 31, 2021 and December 31, 2020.

As of March 31, 2021 and December 31, 2020, Main Street’s private loan (“Private Loan”) portfolio investments primarily consisted of investments in interest-bearing secured debt investments. The fair value determination for these investments consisted of a combination of observable inputs in non-active markets for which sufficient observable inputs were not available to determine the fair value of these investments and unobservable inputs. As a result, all of Main Street’s Private Loan portfolio investments were categorized as Level 3 as of March 31, 2021 and December 31, 2020.

As of March 31, 2021 and December 31, 2020, Main Street’s Other Portfolio investments consisted of illiquid securities issued by privately held companies and the fair value determination for these investments primarily consisted of unobservable inputs. As a result, all of Main Street’s Other Portfolio investments were categorized as Level 3 as of March 31, 2021 and December 31, 2020.

As of March 31, 2021, Main Street held several short-term portfolio investments consisting primarily of investments in secured debt investments and independently rated debt investments. The fair value determination for these investments consisted of available observable inputs in non-active markets sufficient to determine the fair value of these investments. As a result, all of Main Street’s short-term portfolio investments were categorized as Level 2 as of March 31, 2021. Main Street did not hold any short-term portfolio investments as of December 31, 2020.

The fair value determination of each portfolio investment categorized as Level 3 required one or more of the following unobservable inputs:

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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;

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Current and projected financial condition of the portfolio company;