apollo investment corporation investor presentation/media/files/a/apollo-ic... · this presentation...

Unless otherwise noted, information as of September 30, 2018

It should not be assumed that investments made in the future will be profitable or will equal the performance of the investments shown in this document.

A P O L L O I N V E S T M E N T C O R P O R A T I O N

Investor Presentation

November 2018

Disclaimers, Definitions, and Important Notes

2

Forward-Looking StatementsWe make forward-looking statements in this presentation and other filings we make with the Securities and Exchange Commission (“SEC”) within the meaning of Section 27A of the Securities Act of1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are subject to substantial risks and uncertainties, many of which are difficult topredict and are generally beyond our control. These forward-looking statements include information about possible or assumed future results of our business, financial condition, liquidity, results ofoperations, plans and objectives, including information about our ability to generate attractive returns while attempting to mitigate risk. Words such as “believe,” “expect,” “anticipate,” “estimate,”“plan,” “continue,” “intend,” “should,” “may” or similar expressions, are intended to identify forward-looking statements. Statements regarding the following subjects, among others, may be forward-looking: the return on equity; the yield on investments; the ability to borrow to finance assets; and other risks associated with investing including changes in business conditions and the general economy.

The forward-looking statements are based on our beliefs, assumptions and expectations of our future performance, taking into account all information currently available to us. Forward-lookingstatements are not predictions of future events. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to us. Some of thesefactors are described in the company’s filings with the SEC. If a change occurs, our business, financial condition, liquidity and results of operations may vary materially from those expressed in ourforward-looking statements. Any forward-looking statement speaks only as of the date on which it is made. New risks and uncertainties arise over time, and it is not possible for us to predict thoseevents or how they may affect us. Except as required by law, we are not obligated to, and do not intend to, update or revise any forward-looking statements, whether as a result of new information,future events or otherwise. This presentation may contain statistics and other data that in some cases has been obtained from or compiled from information made available by third-party serviceproviders.

Past PerformancePast performance is not indicative nor a guarantee of future returns, the realization of which is dependent on many factors, many of which are beyond the control of Apollo Global Management, LLC(“AGM”); Apollo Investment Management, L.P.; and Apollo Investment Corporation (collectively “Apollo”). There can be no assurances that future dividends will match or exceed historic ones, or thatthey will be made at all. Net returns give effect to all fees and expenses. Unless otherwise noted, information included herein is presented as of the date indicated on the cover page and may change atany time without notice. Apollo Investment Corporation (the “Company”) is subject to certain significant risks relating to our business and investment objective. For more detailed information on risksrelating to the Company, see the latest Form 10-K and subsequent quarterly reports filed on Form 10-Q. This presentation does not constitute a prospectus and should under no circumstances beunderstood as an offer to sell or the solicitation of an offer to buy any securities of the Company.

Financial DataFinancial data used in this presentation for the periods shown is from the Company’s Form 10-K and Form 10-Q filings with the SEC during such periods. Unless otherwise indicated, the numbersshown herein are rounded and unaudited. Quarterly and annual financial information for the Company refers to fiscal periods.

AUM DefinitionAssets Under Management (“AUM”) refers to the investments AGM manages or with respect to which it has control, including capital it has the right to call from its investors pursuant to their capitalcommitments to various funds. AGM’s AUM equals the sum of: (i) the fair value of its private equity investments plus the capital that it is entitled to call from its investors pursuant to the terms of theircapital commitments plus non-recallable capital to the extent a fund is within the commitment period in which management fees are calculated based on total commitments to the fund; (ii) the net assetvalue of AGM’s capital markets funds, other than certain senior credit funds, which are structured as collateralized loan obligations or certain collateralized loan obligation and collateralized debtobligation credit funds that have a fee generating basis other than mark-to-market asset values, plus used or available leverage and/or capital commitments; (iii) the gross asset values or net asset valuesof AGM’s real estate entities and the structured portfolio vehicle investments included within the funds AGM manages, which includes the leverage used by such structured portfolio vehicles; (iv) theincremental value associated with the reinsurance investments of the portfolio company assets that AGM manages; and (v) the fair value of any other investments that AGM manages plus unused creditfacilities, including capital commitments for investments that may require pre-qualification before investment plus any other capital commitments available for investment that are not otherwise includedin the clauses above. AGM’s AUM measure includes AUM for which it charges either no or nominal fees. AGM’s definition of AUM is not based on any definition of AUM contained in its operatingagreement or in any of its Apollo fund management agreements. AGM considers multiple factors for determining what should be included in its definition of AUM. Such factors include but are notlimited to (1) its ability to influence the investment decisions for existing and available assets; (2) its ability to generate income from the underlying assets in its funds; and (3) the AUM measures that ituses internally or believes are used by other investment managers. Given the differences in the investment strategies and structures among other alternative investment managers, AGM’s calculation ofAUM may differ from the calculations employed by other investment managers and, as a result, this measure may not be directly comparable to similar measures presented by other investmentmanagers.

• Overview of Apollo Investment Corporation (“AINV”) & Apollo’s Direct Origination Platform

• AINV Investment Strategy & Portfolio Repositioning• AINV Portfolio Review• Conclusion • Appendices

Agenda

3

Overview of AINV & Apollo’s Direct Origination Platform

4

Overview of Apollo Investment Corporation (“AINV”)

5

1 On a fair value basis. 2 As of September 30, 2018 3 Apollo Investment Management, L.P. 4 See definition of AUM at beginning of presentation. 5 MidCap Financial refers to MidCap FinCo Designated Activity Company, a private limited company domiciled in Ireland, and its subsidiaries, including MidCap Financial Services, LLC. MidCap Financial is managed by Apollo Capital Management, L.P., a subsidiary of Apollo Global Management, LLC, pursuant to an investment management agreement between Apollo Capital Management, L.P. and MidCap FinCo Designated Activity Company. 6 The Company announced that on April 4, 2018, its Board of Directors approved the application of the modified asset coverage requirements set forth in new Section 61(a)(2) of the Investment Company Act of 1940, as amended by The Small Business Credit Availability Act (“SBCAA”). As a result, the asset coverage ratio test applicable to the Company will be decreased from 200% to 150%, effective April 4, 2019. 7 On March 29, 2016, the Company received an exemptive order from the SEC permitting greater flexibility to participate in co-investment transactions with certain of its affiliates where terms other than price and quantity are negotiated, subject to the conditions included therein. 8 As of October 31, 2018. 9 Most recent quarterly dividend annualized divided by share price. There can be no assurances that AINV’s dividend will remain at the current level. 10 Most recent quarterly dividend annualized divided by net asset value per share. There can be no assurances that AINV’s dividend will remain at the current level.

Specialty Finance Company Focused on Lending to US Middle Market Companies

• Publicly traded (NASDAQ: AINV) business development company (“BDC”) treated for federal income tax purposes as a regulated investment company (“RIC”)

• Primarily provides debt solutions to U.S. middle market companies with a focus on direct origination• Since IPO in April 2004 and through September 30, 2018, invested $18.8 billion in 452 portfolio companies• $2.32 billion investment portfolio across 98 companies and 25 different industries, spanning a broad range of asset types

1,2

Externally Managed by Apollo Global Management

• Externally managed by an affiliate 3 of Apollo Global Management, LLC (“AGM”), a leading alternative asset manager with approximately $270 billion of AUM 2,4 with expertise in private equity, credit and real estate

• Apollo Global Management, LLC was founded in 1990• AINV operates as part of AGM’s Direct Origination Business

Competitive Advantages

Apollo Affiliation

• Apollo affiliation provides significant benefits

• Experienced management team• Broad product offering• Large and diverse direct origination

team with joint front engine across AINV and MidCap Financial (“MidCap”) 5

Well Positioned to Benefit from Increase in Regulatory Leverage 6

• Robust volume of senior floating rate assets from existing Apollo Direct Origination platform

• Well positioned to participate in large commitments while maintaining relatively small hold sizes given AINV’s receipt of exemptive relief to co-invest 7

Exemptive Relief to Co-Invest 7

• Expected to improve AINV’s competitive positioning

• Expected to increase deal flow

Current Market Information 8

Market capitalization $1.09 billion

Dividend yield at market price 911.6%

Dividend yield at NAV 10

9.3%

Investment Approach

Value-Oriented

Contrarian

Integrated Investment Platform

Opportunistic Across Market Cycles and Capital Structures

Focus on 9 Core Industries

Founded: 1990

AUM: $270 billion

Employees: 1,118

Inv. Professionals: 408

Global Offices: 13

1 As of September 30, 2018. See definition of AUM at beginning of presentation Note: AUM components may not sum due to rounding.

Global Footprint

Credit$183 bn AUM

• Opportunistic buyouts• Distressed buyouts and debt

investments• Corporate carve-outs

• Drawdown• Liquid / Performing• Permanent Capital Vehicles:

-Athene -MidCap -BDCs -Closed-End Funds

• Advisory

• Commercial real estate• Global private equity and debt

investments• Performing fixed income

(CMBS, CRE Loans)

Firm Profile1 Business Segments

Toronto

Bethesda

Chicago

AINV Benefits from a Strong External Manager

Private Equity$72 bn AUM

Real Assets$15 bn AUM

6

New YorkBethesda

Houston

Los AngelesLondon

Madrid

Frankfurt

LuxembourgDelhi

Mumbai

Shanghai

Hong Kong

Singapore

Apollo’s Extensive Credit Platform

Apollo Credit$183 billion in AUM & 243 Investment Professionals 1

Corporate Credit Structured Credit

Apollo AdvisedAssets

Performing Credit

Liquid Opportunistic

Credit

Illiquid Opportunistic

Credit

Structured Credit

Athene AssetManagement

&Other Advised

Assets

DirectOrigination

~$20 billionin AUM incl.

sidecars

European Principal Finance

Drawdown Funds

$27 billion in AUM(includes Opportunistic, European and Structured

Credit Funds, and SMAs)

Permanent Capital

$106 billion in AUM(includes Athene, MidCap, publicly traded funds

and other permanent capital vehicles)

Liquid / Performing Alternative Funds$50 billion in AUM

(includes Performing and Hedge Funds, Managed CLOs, and SMAs)

Encompasses MidCap, Apollo Investment

Corporation (AINV) and CION

Additional capacity in certain Opportunistic funds for off-the-run, directly

sourced corporate loans

7

1 As of September 30, 2018. Please refer to the definition of AUM at the beginning of this presentation.

Apollo’s Dedicated Direct Origination Vehicles

8

1 As of September 30, 2018. 2 Apollo Investment Management, L.P. (AIM), the investment adviser to Apollo Investment Corporation, is a non-controlling member of CION Investment Management, LLC (CIM), the investment adviser to CION Investment Corporation (CION). AIM performs sourcing services for CIM, which include, among other services, (i) assistance with identifying and providing information about potential investment opportunities for approval by CIM’s investment committee; (ii) providing (a) trade and settlement support; (b) portfolio and cash reconciliation; (c) market pipeline information regarding syndicated deals, in each case, as reasonably requested by CIM; and (d) monthly valuation reports and support for all broker-quoted investments. AIM has a limited role as a member of CIM and does not provide advice, evaluation, or recommendation with respect to the CION’s investments. All of CION’s investment decisions are the sole responsibility of, and are made at the sole discretion of, CIM. 3 As of June 30, 2018.

Apollo Investment Corporation MidCap CION Investment Corporation 2

• Business development company (BDC) under the Investment Company Act of 1940 that has elected to be treated as a regulated investment company (RIC) for federal income tax purposes

• Focused on providing senior debt solutions to US middle market companies

• Publicly-listed on NASDAQ Global Select Market

• $2.32 billion investment portfolio across 98 companies 1

• Established 2004

• Full-service finance company focused on directly sourced middle market senior debt

• Business lines in asset-back loans, leveraged loans, real estate and venture lending

• Privately-held including by investors affiliated with Apollo Global

• $8.1 billion in funded assets across 483 distinct positions 1


• BDC under the Investment Company Act of 1940 that has elected to be treated as a RIC for federal income tax purposes

• Focused on providing senior debt solutions to US middle market companies

• Non-traded

• $1.8 billion assets across 157 companies 3


Additional capacity in select opportunistic credit accounts

Apollo’s Direct and Specialty Origination Platform

9

Encompasses an array of origination verticals and a comprehensive suite of products

Origination Channels Product Capabilities

Leveraged Lending

• Financial Sponsors- Unified calling effort across Apollo - Ability to offer full suite of products increase relevancy

• Wall Street- Leverage Apollo’s deep relationship with Wall Street

intermediaries- Apollo buying power provides good access- Potential source of liquidity that may be used to fund

core investments• Non-Sponsor

Niche Markets

- Life Sciences Lending- Lender Finance- Aircraft Leasing

• Revolving Loans• Senior First Lien Term Loans• Senior Stretch Loans / Unitranche Loans• Second Lien Term Loans• Delayed Draw Term Loans• Asset Based Debt• DIP Financing

Apollo Direct Origination Platform Competitive Advantages

10

Extensive origination team on par with any peer in the market

Full-service product suite

Significant expertise in niche verticals with flexible product set

Significant scale with permanent capital AUM

Well positioned to participate in large commitments (AINV able to maintain relatively small hold sizes given AINV’s receipt of exemptive relief to co-invest in 2016 1)

Note: Reflects the view of Apollo. 1 On March 29, 2016, the Company received an exemptive order from the SEC permitting greater flexibility to participate in co-investment transactions with certain of its affiliates where terms other than price and quantity are negotiated, subject to the conditions included therein. 2. Recent examples selected because they are among the largest commitments made by the Apollo Direct Origination platform in which AINV participated in calendar year 2018. 3. Excludes equity co-investment. 4. $27 million funded as of September 30, 2018. 5. $29 million funded as of September 30, 2018. 6. $60 million funded as of September 30, 2018. 6. Includes CION .

($ in millions) Product Total Facility Size Final Hold Size

AINV Other Apollo 6 Third Parties

Analogic Corporation Life Sciences $575 3 $30 4 $500 $45

Reddy Ice Leveraged Lending $420 $35 5 $242 $143

Genesis Healthcare Asset Based $555 $95 6 $460 $0

Recent Examples of Large Commitments 2

AINV Investment Strategy & Portfolio Repositioning

11

Key Elements of Our Plan 1

Incremental investment capacity will be used to significantly increase AINV’s exposure to senior first lien floating leveraged loans sourced by Apollo’s Direct Origination platform with the following characteristics:

– Leverage range of 4.0x to 5.5x– Floating rate spreads ~500 to 700 basis points– ~ 1 to 1.5% position sizes

Prudently increase leverage over the next 18 to 24 months with a target debt-to-equity range of 1.25x – 1.40x

Reduce exposure to remaining non-core assets

Tangible improvements to the quality of AINV’s assets

Base management fee decreases to 1% on assets financed with leverage over 1.0x debt-to-equity

Plan for Reduction in Asset Coverage Requirement

1 Subject to change at any notice.

On April 4, 2018, AINV’s Board approved the increase in allowable leverage as permitted under SBCAA which will go into effect on April 4, 2019

12

We believe that the ability to increase our leverage provides a unique opportunity for AINV given the robust volume of senior floating rate assets already originated by the Apollo Direct Origination platform

` September 30, 2018 Original Target Revised Target

Leverage and Portfolio Size

AINV Debt-to-Equity Ratio 0.69x 0.65x – 0.70x 1.25x – 1.40x

Portfolio Size (in billions) $2.3 $2.3 - $2.4 $3.2 - $3.4

Asset Mix (%) at fair value

First Lien Corporate Loans 1 29 50-55 ~ 80-85

Second Lien Corporate Loans 26 30-35 < 10

Merx Aviation 20 15 ~10 – 15

Unsecured Corporate Loans 2 4 0 0

Non-Core and Legacy 22 < 10 < 5

Other Key Metrics

Portfolio Asset Yield 3 ~10.7% 10.0-10.5% 9.0-9.5%

Weighted Average Spread ~770 bps 4 ~750 to 800 bps ~600 to 650 bps

Weighted Average Net Leverage 5.52x 5 5.25x 4.2x

Net Leverage Range of Incremental Assets n/a 4.5x – 5.5x 4.0x – 5.5x

Projected Loss Rate n/a 65-70 bps 35-40 bps

% of Investments Per Co-Investment Order 6 29% 50%-60% 70%-80%

Majority of incremental assets expected to be first lien floating rate loans with leverage of 4.0 ‒ 5.5x at L+500 ‒ 700 basis points

Plan Focuses on Lower Risk Assets

13

1 Excludes Merx Aviation and non-core and legacy assets 2 For 9/30/18, includes preferred, common equity and warrants. 3 On total debt portfolio. At amortized cost, exclusive of investment on non-accrual status. 4 For corporate lending portfolio. 5 Source: Company data. Includes all portfolio company investments except structured products, common equities, warrants and investments on non-accrual status. Also excludes select investments where debt-to-EBITDA is not a relevant or appropriate metric, or data is not available. Current. 6 On March 29, 2016, the Company received an exemptive order from the SEC permitting greater flexibility to participate in co-investment transactions with certain of its affiliates where terms other than price and quantity are negotiated, subject to the conditions included therein.

Incremental leverage will come from increased usage of the revolving credit facility and, to the extent necessary, bilateral secured credit facilities

Current and Pro Forma Capital Structure

14

September 30, 2018Actual

Revised Target

Leverage and Portfolio Size

AINV Debt-to-Equity Ratio 0.69x 1.25x – 1.40x

Portfolio Size (in billions) $2.3 $3.2 - $3.4

Funding Structure ($ in billions)

Senior Secured Revolving Credit Facility (drawn) $0.4 ~$1.3 1

Bilateral Secured Credit Facilities 0.0 Up to $0.2

Unsecured Term Debt 0.5 0.5

Total Debt Outstanding $ 0.9 $1.8 -$2.0

Stockholders’ Equity 1.4 1.4

Total Capital $2.3 $3.2 – $3.4

Capitalization

Senior Secured Revolving Credit Facility / Total Capital 20% 39% 2

Bilateral Secured Credit Facilities / Total Capital 0% 0% - 5%

Unsecured Term Debt / Total Capital 21% 15% 2

Stockholders’ Equity/ Total Capital 59% 43% 2

1 Based on $1.59 billion facility. 2. Based on the mid-point of the total capital range.

Based on facility size of $1.59 billion

Senior Secured Revolver Credit Facility Potential Utilization

$441 $16

$843

$1,300

Drawn at9/30/18 at 0.69

net leverage

Maturity ofSenior Secured

Notes

EstimatedAdditionalUtilization

Potential CreditFacility

Utilization

Up to

Up to

Based on facility size of $1.59 billion

Debt Maturity Profile 1

$16

$441

$749

$350

$150

$1,190

2018 2019 2023 2025 2043

Senior Secured Notes Amended RCF (drawn)

Amended RCF (undrawn) 2025 Unsecured Notes

Retail Unsecured Notes

Funding Sources

15

1 As of September 30, 2018. On September 29, 2018, the Series B Notes, which had an outstanding principal balance of $16 million matured and were repaid in full on October 1, 2018. Based on the expected maturity date of the amended senior secured revolver 2. Based on $1.590 billion facility. AINV may elect to supplement the senior secured revolving credit facility with bilateral secured credit facilities to ensure that there is a cushion of senior secured revolving credit facility availability

$ in millions $ in millions

~3.0x

Increased utilization expected over the next 12 to 18 months

2

Shareholder Alignment

16

1 Effective April 1, 2018. 2 The Company announced that on April 4, 2018, its Board of Directors approved the application of the modified asset coverage requirements set forth in new Section 61(a)(2) of the Investment Company Act of 1940, as amended by the SBCAA. As a result, the asset coverage ratio test applicable to the Company will be decreased from 200% to 150%, effective April 4, 2019. 3 The calculation of the incentive fee with the total return requirement will begin on January 1, 2019. The incentive fee rate and performance threshold remain 20% and 7% respectively. There is no change to the catch-up provision. For the period between April 1, 2018 through December 31, 2018, the incentive fee rate will be waived to 15%, subject to the 7% annualized performance threshold. 4 Since the inception of the share repurchase program and through October 29, 2018. Inclusive of commissions. 5 As of October 29, 2018.

Fee Structure Closely Aligns the Incentives of the Manager with the Interests of the Shareholders• The base management fee has been permanently reduced 1 from an annual rate of 2.0% of the Company’s

gross assets to - 1.5% of gross assets up to 1.0x debt-to-equity- 1.0% of gross assets in excess of 1.0x debt-to-equity 2

• The incentive fee on income has been revised to include a total return requirement - Rolling twelve quarter look-back beginning from April 1, 2018 3

Active Share Repurchase Program • Board of Directors has authorized $200 million of share repurchases of which the Company has repurchased

$146.7 million (25,166,757 shares at a weighted average price per share of $5.83) 4

• The Company has approximately $53.3 million available for stock repurchases 5

The combination of AINV’s new fee structure and active stock repurchase program demonstrateour commitment to creating value for our shareholders

Portfolio Exposure to Core vs. Non-Core and Legacy Strategies 3

59%

41%

As of June 30, 2016

Core Strategies Non-Core and Legacy Strategies

78%

22%

As of September 30, 2018

Significant Progress Repositioning Portfolio

17

Deployed significant capital into core strategies 1 and meaningfully reduced exposure to non-core strategies 2

1 Core strategies include corporate lending, aviation, life sciences, asset based and lender finance. 2 Non-core strategies include oil & gas, structured credit, renewables, shipping and commodities 3. On a fair value basis.

Non-Core Assets ($ in millions)

$304$182

$232

$64

$133

$155

$238

$25

$907

$426

0

100

200

300

400

500

600

700

800

900

1,000

6/30/2016 9/30/2018

Oil & Gas Renewables Shipping Structured Credit

or 35% of portfolio

or 18% of portfolio

(12%)

(9%)

(5%)

(9%)(1%)

(7%)

(3%)

(8%)

Significant Progress Reducing Non-Core Assets 1

18

1 Non-core strategies include oil & gas, structured credit, renewables, shipping and commodities. On a fair value basis.

Over the past 9 quarters, reduced exposure to non-core strategies by $481 million 4

-53%

Portfolio Exposure to First Lien Debt 1

40%

60%

As of June 30, 2016

First Lien Secured Debt

Second Lien Secured Debt, Unsecured Debt, Structured Products and Other, Preferred Equity, Common Equity / Interests and Warrants

57%

43%


Emphasis on First Lien Debt

19

1. On a fair value basis.

77%

23%

As of June 30, 2016

Floating Rate Debt Fixed Rate Debt

Portfolio Exposure to Floating Rate Debt 1 2

Emphasis on Floating Rate Debt

20

94%

6%


1. On a fair value basis. 2 The interest type information is calculated using the Company’s corporate debt portfolio and excludes aviation, oil and gas, structured credit, renewables, shipping, commodities and investments on non-accrual status.

31%

6%

13%1%

49%

51% of total deployment has been in investments made pursuant to co-

investment order

Leveraged Loans Life SciencesAsset Based Lender FinanceNon Co-investment

Co-Investment Deployment Over Past 9 Quarters 2

Investments Made Pursuant to Co-Investment Order 1

21

We believe our ability to co-invest with other Apollo managed capital makes us one of the largest market participants that is well positioned to make large commitments

1. On March 29, 2016, the Company received an exemptive order from the SEC permitting greater flexibility to participate in co-investment transactions with certain of its affiliates where terms other than price and quantity are negotiated, subject to the conditions included therein. 2. From July 1, 2016 through September 30, 2018. 3. As of September 30, 2018. On a fair value basis.

29%

71%

29% of the portfolio is in investments made pursuant to co-investment order

Order Co-Investments Non-Order Co-Investments

Co-Investments Outstanding 3

AINV Portfolio Review

22

19.7%

15.8%

13.8%8.7%7.8%

7.1%

3.2%2.9%

2.5%2.2%

16.3%

Aviation and Consumer Transport

Business Services

Healthcare & Pharmaceuticals

High Tech Industries

Energy – Oil & Gas

Transportation – Cargo, Distribution

Aerospace & Defense

Chemicals, Plastics & Rubber

Diversified Investment Vehicles, Banking, Finance, Real EstateEnergy – Electricity

Other

Portfolio Snapshot

23

1 As of September 30, 2018. 2 On a fair basis. 3 On total debt portfolio. At amortized cost, exclusive of investment on non-accrual status. 4 The interest type information is calculated using the Company’s corporate debt portfolio and excludes aviation, oil and gas, structured credit, renewables, shipping, commodities and investments on non-accrual status. 5 The sponsored/non-sponsored percentages are calculated using the Company’s corporate debt portfolio and excludes aviation, oil and gas, structured credit, renewables, shipping and commodities. 6 Current. 7 Other consists of: Consumer Goods – Non-durable; Beverage, Food & Tobacco; Food & Grocery; Advertising, Printing & Publishing; Consumer Goods – Durable; Automotive; Consumer Services; Utilities – Electric; Telecommunications; Insurance; Containers, Packaging & Glass; Manufacturing, Capital Equipment; Media – Diversified & Production; Hotel, Gaming, Leisure, Restaurants; and Metals & Mining. 8 Non-core strategies include oil & gas, structured credit, renewables, shipping and commodities

Investment Portfolio 2 $2.32bn

# of Portfolio Companies 98

Weighted Average Yield 3 10.7%

% Floating Rate 2,4 94%

% Sponsored 2,5 82%

Average Company Exposure 2 $23.7 mn

Median Company Exposure 2 $14.6 mn

Median EBITDA 6 $73 mn

Net Leverage Through AINV Position 6 5.5 x

Interest Coverage 6 2.3 x

1

Portfolio Key Statistics1 Portfolio by Security Type1,2

57%27%

3%3%1%

9%

First Lien Debt Second Lien DebtUnsecured Debt Structured Products and OtherPreferred Equity Common Equity and Warrants

Portfolio by Strategy1,2,8

47%

20%

18%

11%3%

Corporate Lending Aircraft Leasing Non-Core Life Sciences, Asset Based and Lender Finance Legacy

Portfolio by Industry1,2

7

Merx Aviation is Well-Diversified

24

Represents 19.7% of AINV’s investment portfolio 1, 2

96 aircraft

13 aircraft types

46 lessees in 26 countries

Weighted average age of aircraft~8.1 years

Weighted average lease maturity ~5.2 years

Merx Portfolio1 Aircraft by Type1,3 Aircraft by Region1,3

Staggered Lease Maturity1 Aircraft Value by Lessee1,2 Revenue by Lessee1,4

38%

29%

7%

5%4%4%

3%3%2%2% 1%

1%1%

B737-800 A320-200 A321-200 A321neoB777-200F B787-8 B737-700 A319-100E-195 A330-200 E-190 B737-900ERE-170

36%

28%

20%

9%3%2%

2%

Asia Europe North AmericaLatin America Africa AustraliaMiddle East

2

5

14 14

7

14 13

8

11

3

1

4

0

2

4

6

8

10

12

14

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

# of leases maturing by year

8%8%

6%

5%4%

4%4%

4%4%3%2%

2%2%

2%2%2%

2%

2%2%

30%

27 Lessees Each < 2% 7.6%

7.2%

7.2%

4.7%

4.4%

4.3%

3.8%3.7%

3.6%3.2%3.0%2.9%2.9%2.8%

2.4%2.4%

2.1%1.8%

1.7%1.7%1.7%1.6%1.5%1.5%1.5%1.4%1.3%1.3%1.3%1.2%1.1%

1.1%1.1%

1.0%

0.9%0.9%

0.8%

0.8%0.8%0.8%

0.7%

0.7%

0.7%0.5%0.5% 0.0%

0.0%

1 As of September 30, 2018 2 On a fair value basis. 3 Based on base value. 4 Revenue for next four quarters. For more information about Merx, please visit www.merxaviation.com.

Portfolio Concentration

25

1 Top ten portfolio companies and top ten industries based on market value as of September 30 2018.

Top Ten Portfolio Companies1 ($ in millions) Top Ten Industries1 ($ in millions)

Average Position Size, at fair value ($ in millions)

$27.1 $27.4$25.0 $26.0

$23.7

0.0

7.0

14.0

21.0

28.0

35.0

Sep-17 Dec-17 Mar-18 Jun-18 Sep-18

Rank Industry Fair Value% of

Portfolio1 Aviation and Consumer Transport 457$ 19.7%2 Business Services 368$ 15.8%3 Healthcare & Pharmaceuticals 320$ 13.8%4 High Tech Industries 202$ 8.7%5 Energy – Oil & Gas 182$ 7.8%6 Transportation – Cargo, Distribution 165$ 7.1%7 Aerospace & Defense 75$ 3.2%8 Chemicals, Plastics & Rubber 67$ 2.9%9

, g, , Real Estate 58$ 2.5%

10 Energy – Electricity 51$ 2.2%Top Ten Total 1,944$ 83.6%Other 380$ 16.4%Total Portfolio 2,325$ 100.0%

Rank Portfolio Company Fair Value% of

Portfolio1 Merx Aviation Finance, LLC 457$ 19.7%2 Spotted Hawk 114$ 4.9%3 Dynamic Product Tankers (Prime), LLC 81$ 3.5%4 U.S. Security Associates Holdings, Inc. 80$ 3.4%5 MSEA Tankers LLC 74$ 3.2%

6 Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.) 61$ 2.6%

7 Genesis Healthcare, Inc. 60$ 2.6%

8 Carbonfree Chemicals SPE I LLC (f/k/a Maxus Capital Carbon SPE I LLC) 47$ 2.0%

9 PSI Services, LLC 42$ 1.8%10 RA Outdoors, LLC (Active Outdoors) 41$ 1.7%

Top Ten Total 1,057$ 45.5%Other 1,268$ 54.5%Total Portfolio 2,325$ 100.0%

Portfolio Company Credit Quality

26

Source: Company data. Includes all portfolio company investments except structured products, common equities, warrants and investments on non-accrual status. Also excludes select investments where debt-to-EBITDA is not a relevant or appropriate metric, or data is not available.

Median LTM EBITDA Net Leverage through AINV Position(weighted average by cost)

Total Cash Interest Coverage(weighted average by cost)

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

$100


At Close Current

2.00x

3.00x

4.00x

5.00x

6.00x

7.00x

8.00x


At Close Current

0.00x

0.50x

1.00x

1.50x

2.00x

2.50x

3.00x

3.50x

4.00x


At Close Current

Conclusion

27

Reasons to Own AINV

28

Notes: Reflects the views of Apollo. For detailed information on risks relating to AINV, see the latest 10-K and subsequent quarterly reports on Form 10-Q, filed with the SEC.1 The Company announced that on April 4, 2018, its Board of Directors approved the application of the modified asset coverage requirements set forth in new Section 61(a)(2) of the Investment Company Act of 1940, as amended by the SBCAA. As a result, the asset coverage ratio test applicable to the Company will be decreased from 200% to 150%, effective April 4, 2019. 2 On March 29, 2016, the Company received an exemptive order from the SEC permitting greater flexibility to participate in co-investment transactions with certain of its affiliates where terms other than price and quantity are negotiated, subject to the conditions included therein.

1 Origination platform is highly differentiated versus other market participants

2 Uniquely positioned to benefit from increase in regulatory leverage 1

3 Receipt of exemptive relief to co-invest enhances competitive positioning 2

4 Plan for reduction in asset coverage requirement expected to deliver consistent shareholder returns and a stable NAV

5 Well-positioned to benefit from rising interest rates

6 Strong balance sheet and diverse funding sources

7 Fee structure closely aligns the incentives of the manager with the interests of shareholders

8 Active share repurchase program

Appendices

29

Specialty Niches

30

Asset Based

• Secured loans to manufacturing, distribution, retail and services companies

• Core product consists of revolvers advancing against accounts receivable and inventory; will selectively include term loans against fixed assets or as supported by cash flow

• High-touch asset class requiring liquidity for daily revolver fundings, collateral evaluation and diligence expertise, borrowing base monitoring capabilities and complex cash dominion structures

• Leverages MidCap’s in-place portfolio and collateral monitoring infrastructure

Life Sciences

• Low loan-to-value loans, covered by material asset values and cash on hand, made to borrowers in product development (e.g., biotech companies) or early commercialization

• Enterprise value loans

• Niche market with what we believe to be disproportionate risk reward

• Typically have multiple sources of exit including strong equity support, well funded balance sheets, and liquidation value

• No underwriting of science – only of cash support and development timeline

Lender Finance

• Senior secured facilities made to lenders in various industries (consumer and commercial) secured by their underlying collateral

• Typically benefit from multiple levels of credit support and protection in addition to support of underlying borrowers

• Defined eligibility criteria or loan-by-loan approval, borrowing base structure with ability to remove specific assets, and corporate and/or personal recourse with various restrictive covenants

• Highly structured transactions skewing towards larger commitments ($25+ million) to provide diversification of underlying collateral

• We believe significant opportunities exist to fill the capital void left by large banks exiting and descaling in this asset class

A P O L L O I N V E S T M E N T C O R P O R A T I O N

Second Quarter Fiscal Year 2019 Earnings Three Months Ended September 30, 2018October 30, 2018

Second quarter of fiscal year 2019 (Three months ended September 30, 2018) and other recent highlights

1 The Company’s net leverage ratio is defined as debt outstanding plus payable for investments purchased, less receivable for investments sold, less cash and cash equivalents, less foreign currencies, divided by net assets. 2 Core strategies include corporate lending, aviation, life sciences, asset based and lender finance. 3 On a fair value basis. 4 The interest type information is calculated using the Company’s corporate debt portfolio and excludes aviation, oil and gas, structured credit, renewables, shipping, commodities and investments on non-accrual status. 5 On March 29, 2016, the Company received an exemptive order from the SEC permitting greater flexibility to participate in co-investment transactions with certain of its affiliates where terms other than price and quantity are negotiated, subject to the conditions included therein.

Summary of Quarterly Results

32

Fiscal Second Quarter Results and Other Recent Highlights• Net investment income for the quarter ended September 30, 2018 was $32.2 million, or $0.15 per share, compared to $31.5 million, or $0.15 per share for the

quarter ended June 30, 2018• Net realized and change in unrealized losses for the quarter ended September 30, 2018 were ($4.1) million, or ($0.02) per share, compared to ($18.3) million, or

($0.08) per share for the quarter ended June 30, 2018• Net asset value per share as of September 30, 2018 was $6.47 compared to $6.47 as of June 30, 2018• Net leverage1 as of September 30, 2018 was 0.68 x compared to 0.78 x as of June 30, 2018• Continued to successfully execute our portfolio repositioning strategy, with core2 strategies representing 78% of the portfolio3 as of September 30, 2018• Invested $364 million across 9 new and 16 existing portfolio companies during the quarter

- 100% of investments made were in core strategies2

- 100% of investments made were in floating rate debt4

- 97% of investments made were in first lien debt - 96% of investments made were pursuant to our co-investment order5

• Investments sold totaled $163 million and investments repaid totaled $372 million• Net investment activity before repaid investments was $200 million, and net investment activity after repayments was ($172) million for the quarter• Repurchased 2,868,300 shares of common stock at a weighted average price per share of $5.61, inclusive of commissions, for an aggregate cost of $16.1 million

during the quarter• During the period from October 1, 2018 through October 29, 2018, the Company repurchased 482,400 shares of common stock at a weighted average price per

share of $5.49, inclusive of commissions, for a total cost of $2.6 million• On October 30, 2018, the Board of Directors (the “Board”) approved a new stock repurchase plan (the “Repurchase Plan”) to acquire up to $50 million of the

Company’s common stock. The new Repurchase Plan is in addition to the Company's existing share repurchase authorization, of which approximately $3.3 million of repurchase capacity remains. Accordingly, the Company now has approximately $53.3 million available for stock repurchases under its repurchase program

• On October 30, 2018, the Board approved a one-for-three reverse stock split of the Company’s common stock which will be effective as of the close of business as of November 30, 2018 (the “Effective Time”). The Company's common stock is expected to begin trading on a split-adjusted basis at the market open on December 3, 2018

• On October 30, 2018, the Board declared a distribution of $0.15 per share (or $0.45 per share adjusted for the one-for-three reverse stock split) payable on January 4, 2019 to shareholders of record as of December 20, 2018

• Received $1.59 billion of commitments for an amendment to the Senior Secured Facility which is expected to close in early November. The amendment reduces the asset coverage covenant from 200% to 150%, increases the size of the facility by $400 million, and extends the maturity from December 2021 to November 2023

1 Numbers may not sum due to rounding. 2 The Company’s net leverage ratio is defined as debt outstanding plus payable for investments purchased, less receivable for investments sold, less cash and cash equivalents, less foreign currencies, divided by net assets. 3 On a cost basis. Exclusive of investments on non-accrual status. 4 On a cost basis. Inclusive of all income generating investments, non-income generating investments and investments on non-accrual status.

Financial Highlights

33

($ in thousands, except per share data) 2Q'19 1Q'19 4Q'18 3Q'18 2Q'18

Sep-18 Jun-18 Mar-18 Dec-17 Sep-17

Operating Results1

Net investment income $32,163 $31,547 $31,943 $33,966 $34,157

Net realized and change in unrealized gains (losses) from investments and foreign currencies (4,134) (18,297) (11,316) (22,342) (2,370)

Net realized loss on extinguishment of debt – – – (5,790) –

Net increase in net assets resulting from operations $28,029 $13,250 $20,627 $5,834 $31,787

Net investment income per share $0.15 $0.15 $0.15 $0.16 $0.16

Net realized and change in unrealized gains (losses) from investments and foreign currencies p/s ($0.02) ($0.08) ($0.05) ($0.10) ($0.01)

Net realized loss on extinguishment of debt per share – – – ($0.03) –

Earnings per share $0.13 $0.06 $0.10 $0.03 $0.14

Distribution recorded per common share $0.15 $0.15 $0.15 $0.15 $0.15

Select Balance Sheet and Other Data

Investment portfolio (at fair value) $2,324,741 $2,495,459 $2,248,047 $2,352,562 $2,360,290

Debt outstanding $946,236 $1,102,679 $789,846 $875,165 $864,906

Net assets $1,371,152 $1,391,166 $1,418,086 $1,441,050 $1,472,600

Net asset value per share $6.47 $6.47 $6.56 $6.60 $6.72

Debt-to-equity ratio 0.69 x 0.79 x 0.56 x 0.61 x 0.59 x

Net leverage ratio2 0.68 x 0.78 x 0.57 x 0.62 x 0.59 x

Weighted average shares outstanding 214,099,477 215,914,717 216,700,552 218,550,180 219,519,803

Shares outstanding 212,056,994 214,925,294 216,312,096 218,255,954 219,034,354

Number of portfolio companies, at period end 98 96 90 86 87

Weighted Average Yields, at period end

Secured debt3 10.7% 10.7% 10.7% 10.5% 10.3%

Unsecured debt3 11.0% 11.4% 11.3% 11.2% 11.2%

Total debt portfolio3 10.7% 10.7% 10.7% 10.5% 10.3%

Total portfolio4 9.7% 9.7% 9.6% 9.6% 9.7%

1 Numbers may not sum due to rounding. 2 Yield on activity is for debt investments and excludes select short-term trades and investments on non-accrual status.

Summary Investment Activity

34

($ in thousands) 2Q'19 1Q'19 4Q'18 3Q'18 2Q'18


Portfolio Activity1

Investments made $363,565 $358,950 $243,329 $198,355 $265,439

Investments sold (163,249) (14,832) (119,302) (48,084) (11,703)

Net investment activity before repayments $200,316 $344,117 $124,027 $150,271 $253,737

Investments repaid (372,056) (93,786) (238,131) (156,716) (328,096)

Net investment activity ($171,740) $250,331 ($114,104) ($6,445) ($74,359)

Number of portfolio companies, at beginning of period 96 90 86 87 84

Number of new portfolio companies 9 7 8 8 12

Number of exited portfolio companies (7) (1) (4) (9) (9)

Number of portfolio companies, at period end 98 96 90 86 87

Number of investments in existing portfolio companies 16 20 19 12 11

Yield on Activity2

Yield on investments made 9.5% 9.4% 9.7% 9.9% 10.0%

Yield on debt sales and repayments 10.1% 9.4% 9.6% 10.2% 10.3%

Quarterly Investment Activity

35

1 Weighted average yield on total debt portfolio on a cost basis at period end, exclusive of investments on non-accrual status. 2 Change in terms on investments may impact the weighted average yield of the total debt portfolio but are not reflected in new, sold or repaid investments. 3 Yield on activity is for debt investments and excludes select short-term trades and investments on non-accrual status.

Investment Activity ($ in millions) Total Debt Portfolio Yield1,2

Net Investment Activity ($ in millions) Yield on Investment Activity2,3

$265$198 $243

$359 $364

($12) ($48) ($119) ($15)($163)

($328)

($157)

($238)

($94)

($372)


New Investments Sales Repayments

($74)($6)

($114)

$250

($172)Sep-17 Dec-17 Mar-18 Jun-18 Sep-18

10.3% 10.5% 10.7% 10.7% 10.7%


10.0% 9.9%9.7%

9.4%9.5%

9.3%

10.2%

7.6%

11.2%

10.1%

10.3% 10.2%

10.8%

9.1%

10.1%


New Investments Sales Repayments

1 Numbers may not sum due to rounding. 2 First lien purchases include revolver drawdowns; first lien sales and repayments includes revolver repayments. 3 Yield on activity is for debt investments and excludes select short-term trades and investments on non-accrual status.

Detailed Quarterly Investment Activity

36



Purchases1

First lien2 $351,623 $319,224 $186,265 $108,008 $111,229

Second lien 9,339 39,323 49,426 89,544 152,972

Total secured debt 360,962 358,547 235,691 197,552 264,201

Unsecured debt 0 0 0 – –

Structured products and other 47 43 47 – –

Preferred equity 1,500 0 333 – –

Common equity/interests and warrants 1,056 360 7,258 803 1,238

Total Purchases $363,565 $358,950 $243,329 $198,355 $265,439

Yield at Cost on Debt Purchases3

First lien 9.5% 9.3% 9.5% 9.3% 9.3%

Second lien 11.0% 10.4% 10.3% 10.7% 10.4%

Total secured debt 9.5% 9.4% 9.7% 9.9% 10.0%

Unsecured debt N/A N/A N/A N/A N/A

Preferred equity N/A N/A N/A N/A N/A

Yield at Cost on Debt Purchases 9.5% 9.4% 9.7% 9.9% 10.0%

Sales and Repayments1

First lien2 $400,720 $93,006 $228,989 $79,659 $128,848

Second lien 119,450 8,728 91,255 90,981 140,034

Total secured debt 520,170 101,735 320,243 170,639 268,882

Unsecured debt 10,681 2,453 2,060 55 55,000

Structured products and other 129 92 27,349 27,292 8,961

Preferred equity 0 (30) 0 0 0

Common equity/interests and warrants 4,326 4,369 7,780 6,814 6,956

Total Sales and Repayments $535,305 $108,618 $357,433 $204,800 $339,799

Yield at Cost on Debt Sales and Repayments3

First lien 9.6% 9.3% 9.0% 10.0% 10.4%

Second lien 11.3% 10.0% 11.2% 10.5% 9.9%

Total secured debt 10.0% 9.3% 9.6% 10.2% 10.1%

Unsecured debt 15.0% 10.8% 10.2% 13.0% 11.0%

Preferred equity N/A N/A N/A N/A N/A

Yield at Cost on Debt Sales and Repayments 10.1% 9.4% 9.6% 10.2% 10.3%

Yield at Cost on Sales 10.1% 11.2% 7.6% 10.2% 9.3%

Yield at Cost on Debt Repayments 10.1% 9.1% 10.8% 10.2% 10.3%

Detailed Quarterly Investment Activity (Continued)

37

Note: Numbers may not sum due to rounding.



Investment Activity, excluding Merx Aviation and Revolver Activity

Deployment $265,874 $199,714 $157,985 $165,066 $234,414

Sales ($154,776) ($14,832) ($119,302) ($48,084) ($11,703)

Repayments ($248,107) ($13,464) ($157,061) ($119,070) ($272,397)

Net Investment Activity ($137,008) $171,418 ($118,378) ($2,087) ($49,686)

Merx Aviation

Deployment - $91,000 $18,500 $5,800 $10,000

Repayments (47,250) - ($25,000) ($26,000) ($41,538)

Net funding into Merx Aviation ($47,250) $91,000 ($6,500) ($20,200) ($31,538)

Revolvers, excluding Merx Aviation

Deployment $97,691 $68,236 $66,844 $27,489 $21,025

Sales ($8,473) - - - -

Repayments ($76,700) ($80,322) ($56,070) ($11,646) ($14,161)

Net funding on revolvers $12,518 ($12,086) $10,774 $15,843 $6,864

Total

Deployment $363,565 $358,950 $243,329 $198,355 $265,439

Sales ($163,249) ($14,832) ($119,302) ($48,084) ($11,703)

Repayments ($372,056) ($93,786) ($238,131) ($156,716) ($328,096)

Net Investment Activity ($171,740) $250,331 ($114,104) ($6,445) ($74,359)

Note: Numbers may not sum due to rounding.

Net Asset Value

38

Net Asset Value Per Share

$6.47 $6.47 $6.56 $6.60 $6.72

Sep-18Jun-18Mar-18Dec-17Sep-17

($ in thousands, except per share data) 2Q'19 1Q'19 4Q'18 3Q'18 2Q'18


Per Share

NAV, beginning of period $6.47 $6.56 $6.60 $6.72 $6.73

Net investment income 0.15 0.15 0.15 0.16 0.16

Net realized and change in unrealized gain (loss) (0.02) (0.08) (0.05) (0.10) (0.01)

Net realized loss on extinguishment of debt – – – (0.03) –

Net increase (decrease) in net assets resulting from operations 0.13 0.06 0.10 0.03 0.14

Repurchase of common stock 0.01 0.01 0.01 0.00 0.00

Distribution recorded (0.15) (0.15) (0.15) (0.15) (0.15)

NAV, end of period $6.47 $6.47 $6.56 $6.60 $6.72

Total

NAV, beginning of period $1,391,166 $1,418,086 $1,441,050 $1,472,600 $1,477,624

Net investment income 32,163 31,547 31,943 33,966 34,157

Net realized and change in unrealized gains (losses) (4,134) (18,297) (11,316) (22,342) (2,370)

Net realized loss on extinguishment of debt – – – (5,790) –

Net increase (decrease) in net assets resulting from operations 28,029 13,251 20,627 5,834 31,787

Repurchase of common stock (16,105) (7,877) (11,145) (4,645) (3,956)

Distributions recorded (31,938) (32,293) (32,447) (32,738) (32,855)

NAV, end of period $1,371,152 $1,391,166 $1,418,086 $1,441,050 $1,472,600

Portfolio as of September 30, 2018

By Asset Class1 Fixed Rate vs. Floating Rate1,2

Note: Numbers may not sum due to rounding. 1 On a fair value basis. 2 The interest type information is calculated using the Company’s corporate debt portfolio and excludes aviation, oil and gas, structured credit, renewables, shipping, commodities and investments on non-accrual status. 3 Other consists of: Consumer Goods – Non-durable; Beverage, Food & Tobacco; Food & Grocery; Advertising, Printing & Publishing; Consumer Goods – Durable; Automotive; Consumer Services; Utilities – Electric; Telecommunications; Insurance; Containers, Packaging & Glass; Manufacturing, Capital Equipment; Media – Diversified & Production; Hotel, Gaming, Leisure, Restaurants; and Metals & Mining.

By Industry1,3 Sponsored vs. Non-sponsored1,4

39

57%27%

3%3%

10%First lien debt

Second lien debt

Unsecured debt

Structured products and other

Preferrred equity, commonequity/interests and warrants

6%

94%

Fixed Rate Assets Floating Rate Assets

82%

18%

Sponsored Non-sponsored

19.7%

15.8%

13.8%8.7%

7.8%

7.1%

3.2%2.9%2.5%2.2%

16.3%

Aviation and Consumer Transport Business ServicesHealthcare & Pharmaceuticals High Tech IndustriesEnergy – Oil & Gas Transportation – Cargo, DistributionAerospace & Defense Chemicals, Plastics & RubberDiversified Investment Vehicles, Banking, Finance, Real Estate Energy – ElectricityOther

$1,09781%

$26519%

Core Corporate Lending Portfolio Originated After 7/1/16

Core Corporate Lending Portfolio Originated Before 7/1/16

$1,097

$265

$457

$506

Core Corporate Lending Portfolio Originated After 7/1/16

Core Corporate Lending Portfolio Originated Before 7/1/16

Merx Aviation

Non-Core and Legacy

53% first lien (81% of deployment over the past 12 months has been first lien)

100% floating rate

62% pursuant to co-investment order1

$15.7 million average borrower exposure

5.3x weighted average net leverage2

– 4.5x weighted average net leverage for first lien

– 5.8x weighted average net leverage for second lien

~755 weighted average spread

– ~670 weighted average spread for first lien

– ~855 weighted average spread for second lien

Metrics for $1.1 Billion Corporate Lending Portfolio

Originated After 7/1/16Corporate Lending Portfolio

Total Investment Portfolio (Corporate Lending, Merx,& Non-Core and Legacy)

Corporate Lending Portfolio Metrics as of September 30, 2018

Notes: All data as of September 30, 2018. On a fair value basis. July 1, 2016 is the approximate date of the appointment of the current Chief Executive Officer and President / Chief Investment Officer. 1 On March 29, 2016, the Company received an exemptive order from the SEC permitting greater flexibility to participate in co-investment transactions with certain of its affiliates where terms other than price and quantity are negotiated, subject to the conditions included therein. 2 Source: Company data. Excludes select investments where debt-to-EBITDA is not a relevant or appropriate metric, or data is not available. Weighted average by cost. Current.

$2.32 billion

$1.36 billion

40

$ in millions, unless indicated otherwise $ in millions, unless indicated otherwise

Portfolio Composition

Note: Numbers may not sum due to rounding. 1 Core strategies include corporate lending, aviation, life sciences, asset based and lender finance. 2 Non-core strategies include oil & gas, structured credit, renewables, shipping and commodities. 3 The interest type information is calculated using the Company’s corporate debt portfolio and excludes aviation, oil and gas, structured credit, renewables, shipping, commodities and investments on non-accrual status. 4 The sponsored/non-sponsored percentages are calculated using the Company’s corporate debt portfolio and excludes aviation, oil and gas, structured credit, renewables, shipping and commodities.

41



Portfolio Composition, measured at fair value ($)

First lien $1,313,114 $1,363,867 $1,131,942 $1,169,317 $1,142,148

Second lien 631,551 737,124 706,011 743,299 750,710

Total secured debt $1,944,665 $2,100,991 $1,837,953 $1,912,616 $1,892,857

Unsecured debt 80,000 90,599 103,166 107,678 107,558

Structured products and other 67,131 67,373 67,968 97,884 124,269

Preferred equity 32,524 31,401 31,053 25,690 25,780

Common equity/interests and warrants 200,421 205,095 207,908 208,694 209,826

Total investment portfolio $2,324,741 $2,495,459 $2,248,047 $2,352,562 $2,360,290

Portfolio Composition, measured at fair value (%)

First lien 57% 55% 50% 50% 48%

Second lien 27% 30% 31% 32% 32%

Total secured debt 84% 84% 82% 81% 80%

Unsecured debt 3% 4% 5% 5% 5%

Structured products and other 3% 3% 3% 4% 5%

Preferred equity 1% 1% 1% 1% 1%

Common equity/interests and warrants 9% 8% 9% 9% 9%

Portfolio Composition by Strategy, measured at fair value (%)

Core strategies1 78% 80% 77% 74% 73%

Non-core strategies2 18% 17% 19% 22% 23%

Legacy & Other 3% 3% 4% 4% 4%

Interest Rate Type, measured at fair value3

Fixed rate % 6% 6% 8% 8% 9%

Floating rate % 94% 94% 92% 92% 91%

Sponsored / Non-sponsored, measured at fair value4

Sponsored % 82% 81% 81% 82% 81%

Non-sponsored % 18% 19% 19% 18% 19%

As of September 30, 2018, 3.2% of total investments at amortized cost, or 2.6% of total investments at fair value, were on non-accrual status.

Credit Quality

Note: Numbers may not sum due to rounding. 1 Source: Company data. Includes all portfolio company investments except structured products, common equities, warrants and investments on non-accrual status. Also excludes select investments where debt-to-EBITDA is not a relevant or appropriate metric, or data is not available. Weighted average by cost.

42



Investments on Non-Accrual Status

Non-accrual investments at amortized cost $75,671 $75,671 $75,671 $57,928 $46,199

Non-accrual investments/total portfolio, at amortized cost 3.2% 3.0% 3.3% 2.4% 1.9%

Non-accrual investments at fair value $61,580 $57,646 $51,426 $35,175 $30,204

Non-accrual investments/total portfolio, at fair value 2.6% 2.3% 2.3% 1.5% 1.3%

Portfolio Company Credit Metrics1

Net Leverage (Close) 5.4 x 5.5 x 5.5 x 5.4 x 5.5 x

Net Leverage (Current) 5.5 x 5.6 x 5.5 x 5.5 x 5.5 x

Interest Coverage (Close) 2.4 x 2.4 x 2.5 x 2.7 x 2.7 x

Interest Coverage (Current) 2.3 x 2.3 x 2.5 x 2.7 x 2.7 x

Cost Fair Value

Investments on Non-Accrual Status as of September 30, 2018

Elements Behavioral Health, Inc. $11,911 $0

Magnetation, LLC $1,273 $157

Spotted Hawk $44,380 $47,788

Sprint Industrial Holdings, LLC. $18,107 $13,636

Total $75,671 $61,580

Industry

Healthcare & Pharmaceuticals

Metals & Mining

Energy – Oil & Gas

Containers, Packaging & Glass

Diversified Funding Sources as of September 30, 2018

1 On September 29, 2018, the Series B Notes, which had an outstanding principal balance of $16,000, matured and were repaid in full on October 1, 2018. 2 Includes the stated interest expense and commitment fees on the unused portion of the Senior Secured Facility. Excludes amortized debt issuance costs. For the three months ended September 30, 2018. Based on average debt obligations outstanding.

43

Debt Facilities Debt Issued/Amended

Final Maturity Date

Interest Rate

Principal Amount Outstanding

(in thousands)Senior Secured Facility ($1.19 billion) 12/22/2016 12/22/2021 L + 200 bps $441,016

Senior Secured Notes (Series B)1 9/29/2011 9/29/2018 6.250% 16,000

2043 Notes (redeemable on or after 7/15/18) 6/17/2013 7/15/2043 6.875% 150,000

2025 Notes 3/3/2015 3/3/2025 5.250% 350,000

Weighted Average Annualized Interest Cost2 & Total Debt Obligations 5.103% 957,016

Deferred Financing Cost and Debt Discount (10,780)

Total Debt Obligations,Net of Deferred Financing Cost and Debt Discount $946,236

Interest Rate Exposure as of September 30, 2018

Investment Portfolio1,2 Funding Sources3

1 On a fair value basis. 2 The interest type information is calculated using the Company’s corporate debt portfolio and excludes aviation, oil and gas, structured credit, renewables, shipping, commodities and investments on non-accrual status. 3 Based on total debt obligations before deferred financing cost and debt discount. 4 The table shows the estimated annual impact on net investment income of base rate changes in interest rates (considering interest rate floors for floating rate instruments) to our loan portfolio and outstanding debt as of September 30, 2018, assuming no changes in our investment and borrowing structure.

Floating Rate Asset Floor Net Investment Income Interest Rate Sensitivity4

44

6%

94%

Fixed Rate Assets Floating Rate Assets

22%

19%59%

Fixed Rate Debt Floating Rate Debt Common Equity

($ in millions) Par or Cost % of Floating Rate Portfolio

Interest Rate Floors

No Floor $256 18%

< 1.00% 109 8%

1.00% to 1.24% 991 70%

1.25% to 1.49% 27 2%

1.50% to 1.74% 35 2%

> =1.75% 0 0%

Total $1,419 100%

Annual Net Investment Income

(in millions)

Annual Net Investment Income

Per Share

Basis Point Change

Up 400 basis points $30.4 $0.143




Down 100 basis points ($7.6) ($0.036)

Select Data Pro Forma for 1-for-3 Reverse Stock Split

Note: Figures “adjusted for 1-for-3 reverse stock split” may not be precisely three times the “as reported” figures due to rounding. 1 On October 30, 2018, the Company announced that its Board of Directors approved a 1-for-3 reverse stock split of the Company’s common stock which will be effective as of the close of business on November 30, 2018. The Company's common stock is expected to begin trading on a split-adjusted basis at the market open on December 3, 2018.

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2Q'19 1Q'19 4Q'18 3Q'18 2Q'18


Net Investment Income Per Share

As reported $0.15 $0.15 $0.15 $0.16 $0.16

Adjusted for 1-for-3 reverse stock split 1 $0.45 $0.44 $0.44 $0.47 $0.47

Earnings Per Share

As reported $0.13 $0.06 $0.10 $0.03 $0.14


Net Asset Value Per Share

As reported $6.47 $6.47 $6.56 $6.60 $6.72


Shares Outstanding

As reported 212,056,994 214,925,294 216,312,096 218,255,954 219,034,354

Adjusted for 1-for-3 reverse stock split 1 70,685,665 71,641,765 72,104,032 72,751,985 73,011,451

For more information, please contact:

Elizabeth Besen

Investor Relations Manager

Phone: (212) 822-0625

Email: [email protected]

Gregory W. Hunt

Chief Financial Officer and Treasurer

Phone: (212) 822-0655

Email: [email protected]

Contact Information

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