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• A specialized public bank for private, middle-market companies.
• Like the credit arm of Blackstone or Apollo Global Management, but packaged as a publicly traded investment.

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• Senior Secured Loans: These are debt facilities secured by a first or second lien on a borrower's assets, offering a senior position in the capital structure.
• Stretch Senior Loans: A form of senior debt that often combines features of traditional senior and unitranche loans, typically involving higher leverage and an extended maturity.
• Unitranche Debt: A single debt instrument that blends senior and subordinated debt into one facility, simplifying the capital structure for middle-market borrowers.
• Mezzanine Debt: Subordinated debt that ranks below senior debt but above equity, often including an equity component like warrants or options.
• Junior Investments: Debt or equity instruments that are lower in priority within a company's capital structure compared to senior and mezzanine debt.
• Secondary Debt Purchases: The acquisition of existing middle-market corporate debt or portfolios of such debt from other investors in the secondary market.

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Bain Capital Specialty Finance (BCSF) operates as a business development company (BDC) that specializes in providing direct loans to middle-market companies. Therefore, its "customers" are the companies it lends money to.

BCSF does not sell products or services in the traditional sense but rather provides financing. Its investment strategy focuses on private middle-market companies with EBITDA between $10 million and $150 million. Due to the private nature of these companies and BCSF's diversified investment approach across numerous borrowers, it is not feasible to identify specific "major customers" that are publicly traded companies with symbols. BCSF's portfolio consists of a broad range of private companies across various industries to which it provides debt financing.

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• Bain Capital Credit, LP
• State Street Corporation (STT)
• Deloitte & Touche LLP
• Ropes & Gray LLP

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Michael A. Ewald, Chief Executive Officer

Michael A. Ewald serves as the Chief Executive Officer and a Director for Bain Capital Specialty Finance. He joined Bain Capital Credit in 1998 and is a Managing Director, Global Head of the Private Credit Group, Portfolio Manager for the Middle Market Credit and Senior Direct Lending strategies, and a Credit Committee member for Bain Capital Credit. Prior to his time at Bain Capital, Mr. Ewald was an Associate Consultant at Bain & Company for three years, focusing on strategy consulting to the Financial Services, Manufacturing, and Consumer Products industries. He also worked as an analyst at Credit Suisse First Boston in the Regulated Industries group.

Michael J. Boyle, President

Michael J. Boyle is the President and a Director for Bain Capital Specialty Finance. He joined Bain Capital Credit in 2007 and is a Partner and Portfolio Manager in the Private Credit Group. In this role, he is responsible for Bain Capital Credit's Senior Direct Lending strategy and Bain Capital Specialty Finance, Inc. Mr. Boyle previously held the positions of Vice President and Treasurer for Bain Capital Specialty Finance. His career at Bain Capital Credit has included being a member of the portfolio analytics team, the Industry Research team, and the Liquid Credit portfolio management team.

Amit Joshi, Chief Financial Officer & Treasurer

Amit Joshi serves as the Chief Financial Officer and Treasurer for Bain Capital Specialty Finance. He plays a key role in the company's financial management and has commented on the company's strategies for managing tax and RIC distribution requirements.

Katherine Schneider, Secretary

Katherine Schneider was appointed as the Secretary of Bain Capital Specialty Finance, Inc. effective April 28, 2025. She joined Bain Capital in 2020 and is a Managing Director on the Investor Relations team. Prior to joining Bain Capital, Ms. Schneider was a Vice President at Goldman Sachs Asset Management.

James Goldman, Chief Compliance Officer

James Goldman is the Chief Compliance Officer for Bain Capital Specialty Finance. He also holds the position of Head of Compliance, Capital Markets for Bain Capital.

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Key Risks to Bain Capital Specialty Finance (BCSF)

The primary risks for Bain Capital Specialty Finance (BCSF), a business development company (BDC) specializing in direct loans to middle-market companies, are predominantly linked to the credit quality of its borrowers, interest rate fluctuations, and the inherent illiquidity and valuation challenges of its private investments.

1. Credit Risk and Economic Downturns: As a direct lender to middle-market companies, BCSF is highly susceptible to the credit risk of its portfolio companies. Middle-market companies often possess less financial resilience than larger corporations, making them more vulnerable during economic downturns. A prolonged period of economic uncertainty or recession could lead to increased default rates on the loans BCSF holds, negatively impacting its portfolio quality, investment income, and overall profitability. This risk is amplified by the fact that BDCs often lend to companies that are considered below investment grade and may struggle to obtain financing from traditional banks.
2. Interest Rate Risk: BCSF's business model is significantly exposed to interest rate fluctuations. While a substantial portion of its debt investments (93%) bear floating interest rates, positioning it favorably in a rising rate environment, changes in interest rates can still pose significant risks. Specifically, rising interest rates can increase BCSF's own borrowing costs, thereby reducing its net investment income. Conversely, a future shift to a lower interest rate environment could also impact investment income if liability costs rise or existing fixed-rate debt structures mature. Furthermore, rising rates can make it more challenging for BCSF's portfolio companies to service their debt obligations, increasing the risk of default.
3. Liquidity and Valuation Risk of Private Investments: BCSF invests primarily in privately held, non-publicly traded companies. These direct loans are inherently illiquid, meaning they cannot be easily traded or liquidated quickly. This illiquidity makes it difficult to accurately assess the true value of these investments and poses challenges if BCSF needs to sell assets rapidly, potentially leading to significantly less than their recorded value. The lack of transparency in private companies also makes it harder to assess a BDC's true risk-reward profile.

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1. Growth in Investment Portfolio through New Originations: Bain Capital Specialty Finance is positioned to grow its investment portfolio through increased new deal activity, particularly in the middle market. The company has recently observed a pickup in new leveraged buyout (LBO) and add-on activities, which are constructive indicators for new investment opportunities. For instance, gross originations saw a significant year-over-year increase of 73% in Q2 2025.

2. Strategic Focus on First Lien Senior Secured Loans with Attractive Spreads: BCSF consistently emphasizes investing in first lien senior secured loans, which form a substantial portion of its portfolio and new fundings (e.g., 90% of Q1 2025 fundings). This disciplined investment approach aims to generate stable contractual cash income. The company has demonstrated its ability to originate new first lien deals at attractive weighted average spreads, such as 535 basis points in Q4 2025, which is favorable compared to the broader market average.

3. Reinvestment of Strong Net Investment Income and Spillover Income: The company's robust net investment income (NII) and significant spillover income are key levers for future NII enhancement. For example, as of Q4 2025, BCSF had spillover income of $1.29 per share, which is more than three times its regular dividend level. The strategic deployment and reinvestment of this available capital are expected to fuel further portfolio growth and generate additional interest income.

4. Favorable Middle-Market Lending Environment: BCSF expects to benefit from a constructive broader market environment for middle-market lending. The company believes its platform and focus are well-suited to navigate the current market and capitalize on future opportunities, driven by underlying economic indicators that support new investments. While acknowledging potential headwinds from a lower interest rate environment, BCSF's largely floating-rate debt portfolio (93% of debt investments) also positions it favorably if interest rates remain stable or rise.

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Share Repurchases

• Bain Capital Specialty Finance, Inc. has an existing share buyback program in place but has not actively utilized it recently.
• The company intends to implement a share repurchase program, though only a limited number of shares would be eligible, and repurchases would be subject to available liquidity and other restrictions.

Share Issuance

• In 2025, Bain Capital Specialty Finance, Inc. issued and sold common stock through 'at the market' offerings, raising approximately $4.6 million.

Outbound Investments

• For the three months ended December 31, 2025, Bain Capital Specialty Finance, Inc. invested $167.9 million across 93 portfolio companies, including $68.3 million in 11 new companies and $99.6 million in 82 existing companies.
• As of September 30, 2025, the company had invested approximately $9,688.5 million in aggregate principal amount of debt and equity investments since its operations began in October 2016.
• The company's investment strategy primarily focuses on originating and investing in senior secured loans, including first or second lien on collateral, to middle-market companies with EBITDA typically between $10 million and $150 million.