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Here are 1-3 brief analogies to describe Bain Capital Specialty Finance (BCSF):

• It's like a Real Estate Investment Trust (REIT), but instead of owning properties, it invests in a diversified portfolio of loans to private, middle-market companies.
• Imagine a publicly traded private equity firm, but one that primarily lends money to mid-sized private businesses rather than buying them.
• Think of it as a specialized commercial bank that focuses exclusively on making loans to private, middle-market companies that often can't get funding from larger banks.

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• First Lien Senior Secured Loans: These are debt instruments secured by a first-priority lien on the borrower's assets, representing the least risky position in the capital structure.
• Unitranche Loans: A type of loan that combines senior and junior debt into a single debt facility, simplifying the borrower's capital structure and administration.
• Second Lien Senior Secured Loans and Mezzanine Debt: These are debt instruments that are subordinate to first lien loans but senior to equity, typically carrying higher interest rates due to increased risk.
• Equity and Equity-Related Investments: Minority investments in the common or preferred stock of portfolio companies, often alongside debt, including warrants or options to acquire equity.

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Bain Capital Specialty Finance (BCSF) is a Business Development Company (BDC) that primarily provides debt and equity financing to other companies. Its "customers" are the companies to which it lends money or in which it invests. BCSF primarily focuses on originating and investing in the senior secured debt of private, U.S. middle-market companies.

Therefore, BCSF's major customers are the private companies within its investment portfolio. While BCSF has a diversified portfolio of investments across numerous companies, its major customers can be identified as the companies representing its largest investment exposures by fair value. Most of these companies are private entities. Below are examples of some of BCSF's major portfolio companies (as of December 31, 2023, based on fair value):

• Prime Therapeutics, LLC (Private Company)
• Connecture, Inc. (Private Company)
• Brightspeed (Private Company)
• Allied Universal Holdco LLC (Private Company)
• New Fortress Energy LLC (Public Company, Symbol: NFE) - BCSF holds debt investments in specific entities or projects related to this company.

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• KeyCorp (KEY)
• Truist Financial Corporation (TFC)
• Bank of America Corporation (BAC)
• JPMorgan Chase & Co. (JPM)
• Wells Fargo & Company (WFC)
• State Street Corporation (STT)
• Computershare Limited (CPU.AX)

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Michael A. Ewald, Chief Executive Officer

Mr. Ewald has served as the Chief Executive Officer for Bain Capital Specialty Finance since 2021. He joined Bain Capital Credit in 1998 and is a Managing Director, Global Head of the Private Credit Group, and a Portfolio Manager for the Middle Market Credit and Senior Direct Lending strategies, as well as a Credit Committee member for Bain Capital Credit. Before joining Bain Capital, he was an Associate Consultant at Bain & Company for three years, focusing on strategy consulting, and prior to that, an analyst at Credit Suisse First Boston in the Regulated Industries group. His extensive tenure at Bain Capital, a prominent private equity firm, reflects a pattern of managing companies within a private equity-backed environment.

Michael J. Boyle, President

Mr. Boyle is the President for Bain Capital Specialty Finance. He joined Bain Capital Credit in 2007 and is a Managing Director and Portfolio Manager in the Private Credit Group. He is responsible for Bain Capital Credit's Senior Direct Lending strategy and Bain Capital Specialty Finance, Inc. Mr. Boyle started his career at Bain Capital Credit, where he was a member of the portfolio analytics team, the Industry Research team, and the Liquid Credit portfolio management team. His career trajectory within Bain Capital Credit demonstrates a consistent engagement with firms operating under a private equity model.

Amit Joshi, Chief Financial Officer

Mr. Joshi was appointed Chief Financial Officer of Bain Capital Specialty Finance effective January 1, 2024. He joined Bain Capital Credit in September 2023 and previously served as Treasurer for Bain Capital Specialty Finance. Prior to joining Bain Capital, Mr. Joshi worked at Apollo Global Management since 2013, serving as a Managing Director and Chief Financial Officer for Apollo Debt Solutions BDC. He also held roles as Chief Accounting Officer, Assistant Treasurer, and Vice President of Midcap Financial Investment Corporation (NASDAQ: MFIC), a registered business development company, and several private funds, including CLOs, private drawdown funds, and operating companies. Before Apollo, he was a Senior Manager at Ernst & Young from 2008 to 2013. Mr. Joshi's background indicates a pattern of managing financial operations for business development companies and private funds, which often operate in a private equity-backed or alternative credit framework.

Sabrina Rusnak-Carlson, General Counsel

Ms. Rusnak-Carlson was appointed General Counsel of Bain Capital Specialty Finance, Inc. effective November 5, 2025. She joined Bain Capital in 2025 and also serves as General Counsel of Credit and Public Equity. Before joining Bain Capital, she was General Counsel of First Eagle Alternative Credit (formerly THL Credit) and a partner in the Private Credit Group at Proskauer Rose LLP. Her experience demonstrates expertise in credit law and working with alternative credit investment firms.

James Goldman, Chief Compliance Officer

Mr. Goldman is the Chief Compliance Officer for Bain Capital Specialty Finance. He joined Bain Capital Credit in 2014 and serves as a Senior Counsel and Vice President in compliance. Prior to Bain Capital Credit, Mr. Goldman served as Senior Counsel in the SEC's Division of Enforcement and as an attorney at the law firm of WilmerHale.

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The key risks to Bain Capital Specialty Finance (BCSF) primarily revolve around its lending activities to middle-market companies and the broader financial environment.

1. Risk related to the credit quality of its loan portfolio and general economic and market conditions

   As a specialty finance company, BCSF's performance is highly dependent on the ability of its middle-market portfolio companies to repay their debts. Economic downturns, unfavorable changes in economic and political conditions, or rising interest rates can lead to an increase in loan defaults, non-accruals, and a deterioration of asset values within its investment portfolio. Although BCSF currently maintains strong portfolio credit quality with low non-accruals, this remains a fundamental and significant risk for any lending institution.

2. Legal and Regulatory Risk

   BCSF operates within a complex and evolving legal and regulatory framework that governs business development companies (BDCs) and financial institutions. TipRanks identifies "Legal & Regulatory" as a top risk category for BCSF. Changes in these regulations, increased compliance costs, or the inability to comply with applicable laws could have a material adverse effect on its operations and financial performance.

3. Risks related to leverage, funding, and illiquidity of investments

   Bain Capital Specialty Finance utilizes leverage to meet its investment objectives, which can amplify both gains and losses. This exposes the company to risks associated with debt, funding, financing, and fluctuating interest rates. While BCSF diversifies its funding sources, adverse movements in interest rates can impact its cost of debt, and challenges in accessing capital markets could affect its liquidity. Furthermore, the direct loans to middle-market companies that comprise BCSF's portfolio are often highly illiquid, which can make it difficult to sell these investments quickly or at favorable prices, particularly during periods of market stress.

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The main products and services of Bain Capital Specialty Finance (BCSF) involve direct originations of secured debt, including first lien, unitranche, and second lien debt, primarily to middle-market companies. BCSF also makes investments in strategic joint ventures, equity investments, and corporate bonds on an opportunistic basis. BCSF specifically targets middle-market companies with EBITDA between $10 million and $150 million.

The addressable market for BCSF's main products and services falls within the broader private credit market, with a focus on middle-market direct lending.

For the global market, the private credit market was valued at approximately $2.1 trillion in 2023. This market is estimated to be around $1.67 trillion in 2025. Projections indicate significant growth, with the global private credit market potentially reaching $2.6 trillion by 2029, $2.9 trillion by 2030, or even $5 trillion by 2029.

For the U.S. market, which constitutes a substantial portion of the global private credit market (approximately 70% to 75%), the market size can be estimated based on the global figures. For instance, if the global market was $2.1 trillion in 2023, the U.S. portion would be approximately $1.575 trillion. The addressable market for private credit in the United States alone could exceed $30 trillion, indicating a vast potential for expansion across various financing solutions.

The middle market segment, where BCSF primarily operates, consists of approximately 200,000 companies in the U.S. The lower middle market, which includes companies with annual revenues between $10 million and $150 million or EBITDA of $7.5 million to $30 million, accounts for about 90% of these middle-market companies. The global direct lending market, a key component of private credit, is a $1 trillion non-investment grade market.

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1. Growth in Investment Portfolio through Direct Originations: Bain Capital Specialty Finance's revenue is primarily driven by interest income from its debt investments in middle-market companies. The company has demonstrated its ability to significantly increase its investment originations, such as originating $1.7 billion in investments in Q4 2024, doubling the prior year's volume, and $530 million in Q2 2025, a 73% increase year-over-year. Continued strong origination volumes, particularly in its core middle-market segment, are expected to expand the company's asset base and, consequently, its interest income.
2. Favorable Interest Rate Environment and Higher Portfolio Yields: BCSF benefits from a portfolio predominantly composed of floating-rate securities. Reports have cited "higher effective yields on the existing debt portfolio" as a driver of increased investment income. A sustained or improving interest rate environment would likely lead to higher income generated from its substantial floating-rate debt investments, boosting overall revenue.
3. Diversification and Expansion of Investment Strategies: BCSF's investment objective extends beyond direct originations of secured debt to include "investments in strategic joint ventures, equity investments and, to a lesser extent, corporate bonds." Further successful deployment of capital into these diversified investment types could provide additional avenues for revenue generation and growth.
4. Maintaining Strong Credit Quality: While not a direct growth driver in terms of new business, maintaining stable credit quality across its investment portfolio is crucial for BCSF's sustained revenue growth. High-quality credit performance minimizes non-accruals and credit losses, ensuring a consistent stream of interest income and protecting the capital base available for new investments. As of June 30, 2025, investments on non-accrual status represented a low percentage of the total investment portfolio at fair value (0.6%).

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Share Repurchases

• Bain Capital Specialty Finance (BCSF) has an existing share buyback program, but it has not been actively utilized recently.
• The company evaluates its share buyback program against alternative uses of equity capital.

Share Issuance

• In June 2020, BCSF completed a transferable rights offering, selling 12,912,453 shares of its common stock for aggregate gross proceeds of approximately $131.9 million.
• The company has an At-the-Market (ATM) program which was tapped opportunistically in Q1 2025, though not extensively utilized due to market trading conditions.
• BCSF's shares outstanding increased from 64.56 million in 2020 to 64.86 million as of September 2025.

Outbound Investments

• As of June 30, 2025, BCSF had invested approximately $9,497.4 million in aggregate principal amount of debt and equity investments since commencing operations on October 13, 2016.
• In the first quarter of 2025, new fundings totaled $277 million across 89 portfolio companies, with net investment fundings of $31 million after sales and repayments.
• On February 9, 2021, BCSF formed a strategic partnership with Pantheon to create International Senior Loan Program, LLC (ISLP), a joint venture focused on direct lending in Europe and Australia, with BCSF agreeing to contribute up to approximately $180 million to ISLP.

Capital Expenditures

• Bain Capital Specialty Finance reported capital expenditures of $0 in the last 12 months.