investor presentation for the quarter ended december 31, 2013

www.tcap.com NYSE:TCAP ©2014 Triangle Capital Corporation

Investor Presentation

For the Quarter Ended December 31, 2013

A good partner understands your strengths. A great partner becomes one of them.®

“Safe Harbor”

This presentation may contain certain statements that are forward-looking statements with

respect to the financial condition, results of operations, businesses and other non-historical

facts of Triangle Capital Corporation (“TCAP”) which are subject to the safe harbor

provisions of the Private Securities Litigation Reform Act of 1995. All forward-looking

statements included in this presentation are made only as of the date of this presentation

and are subject to change without notice. Certain factors that could cause actual results to

differ materially from those contained in the forward-looking statements are included in our

annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-

K, each as filed with the SEC. Copies are available on the SEC’s website at www.sec.gov.

Actual outcomes and results could differ materially from those forecast due to the impact of

many factors beyond the control of TCAP and its management team. Factors that may

cause actual results to differ materially from those contemplated by such forward-looking

statements include, among others, the following: (1) general economic or business

conditions, either nationally or regionally, may be less favorable than expected, resulting in,

among other things, a deterioration in credit quality and/or a reduced demand for credit; (2)

changes in the interest rate environment may reduce net interest margins and/or the

volumes and values of certain investments made or held as well as the value of other

financial assets held; (3) legislative or regulatory changes, including changes in accounting

standards, may adversely affect the business in which TCAP is engaged; (4) adverse

changes may occur in the securities markets; and (5) competitors of TCAP may have greater

financial resources that enable them to compete more successfully than TCAP. TCAP

cautions that the foregoing list of factors is not exclusive. TCAP does not undertake any

obligation to update any forward-looking statement, whether written or oral. Historical results

discussed in this presentation are not indicative of future results. This presentation contains

non-GAAP measures.

2

A good partner understands your strengths. A great partner becomes one of them.® 3

Company Overview


Who We Are

4

• Leading principal investor in private debt and equity securities

with ~$1 billion of assets under management

• Oversee and manage portfolio of 83 investments across 31

industries

• Operate as an internally managed Business Development

Company (“BDC”)

• Small Business Investment Company (“SBIC”) with two licenses

• Publicly traded with ~$800 million equity market capitalization /

~$320 million available liquidity

• Traded on NYSE (common stock “TCAP”; senior notes “TCC” and

“TCCA”)


What We Do

5

• Provide flexible financing solutions to lower middle-market

companies ($3 million - $35 million EBITDA)

• Transaction types include buyouts, acquisitions, growth

capital, debt and dividend recapitalizations, and MBOs

• Structures include subordinated debt with warrants or equity

co-investments, first and second lien debt, and unitranche

financings (typical investment size is $5 million - $35 million)

• Partner with sponsors, fundless sponsors, and management

teams (unsponsored)

• Do not invest in start-up companies, distressed situations, or

real estate

We seek to combine current income from our debt investments

and capital appreciation from our equity and equity-linked securities


Investment Highlights

6

• Focused investment strategy

• Lower middle-market mezzanine investments with equity upside

• Disciplined investment approval process

• Experienced investment committee, rigorous multi-step review

process, industry leading credit results

• Diversified investment profile

• Industry, geography, size

• Conservative financial policies

• Leverage, liquidity, asset/liability matching, dividend coverage

• Consistent, industry leading results

• NII and dividend growth, efficiency ratio, total shareholder return


Our Core Operating Principles

7

• Operational:

– Attract and retain quality people

– Establish long-term relationships

• Financial:

– Maintain conservative balance sheet and sufficient liquidity

– NII should cover dividend 100%+ on a long-term basis

• Structure investments that balance creditor rights with equity upside

• Keep G&A low (every ~$275,000 = $0.01/share)

• Pursue growth in a prudent, disciplined manner

• Be prepared to take advantage of unexpected market opportunities

Strength

Profitability

Growth


Our History

8

$ = dividend increase

$ = special distribution

2007 2008 2009 2010

IPO

$71.6MM

Feb. 2007

NASDAQ

Listing

Equity

Offering

$13.8MM

April 2009

2nd SBIC

License

May 2010

Equity

Offering

$15.6MM

Aug. 2009

Equity

Offering

$21.5MM

Dec. 2009

Equity

Offering

$43.6MM

Sept. 2010

Equity

Offering

$66.4MM

Feb. 2011

Russell

2000

Listing

June 2009

NYSE

Listing

Dec. 2010

Senior

Credit

Facility

$75.0MM

May 2011

$ $ $ $ $ $ $ $ $

2011

$

9 New

Investments

totaling

$62.2MM

12 New

Investments

totaling

$91.0MM

16 New

Investments

totaling

$140.7MM

7 New

Investments

totaling

$43.0MM

21 New

Investments

totaling

$200.2MM

Equity

Offering

$69.0MM

Aug. 2011

$

Equity

Offering

$80.8MM

Feb. 2012

2012

Senior

Unsecured

Notes

Offering

$69.0MM

Mar. 2012

26 New

Investments

totaling

$340.5MM

$ $

Senior

Credit

Facility

$165.0MM

Sept. 2012

Senior

Unsecured

Notes

Offering

$80.5MM

Oct. 2012

$

2013

$

11 New

Investments

totaling

$137.6MM

Senior Credit

Facility

Amendment

$165.0MM

June 2013

2014

YTD - 4 New

Investments

totaling

$50.3MM

$ $ $


$136.2

$213.7$261.1

$388.0

$583.2

$794.5 $814.9

$0.95

$1.54

$1.63 $1.62

$2.07$2.16

$2.23

$0.98

$1.44

$1.67 $1.65

$1.77

$2.02

$2.16

$0.00

$0.40

$0.80

$1.20

$1.60

$2.00

$2.40

$0.0

$100.0

$200.0

$300.0

$400.0

$500.0

$600.0

$700.0

$800.0

$900.0

2007 2008 2009 2010 2011 2012 2013

Per

Sh

are

AU

M

Assets NII/Share DPS

(1)

Assets Under Management, NII and Dividends Per Share

9

While assets under management have grown since our inception, our focus remains profitability on a per share basis

(1) Includes investments at fair value, cash on hand, and other assets; does not include additional debt availability

(2) 2009 includes a one-time special distribution of $0.05 per share

$ in millions, except per share data

(2)


2007 – 2013 Total Value to Shareholders

10

Reflects total return for $15.00 purchase on 2/21/07 (TCAP’s IPO date)

Stock prices as of 3/12/14

Cumulative dividends for the period 1Q 07 – 1Q 14 (KCAP includes dividends through 4Q13)

MAIN, BKCC, and PNNT IPOs occurred on 10/4/07, 6/26/07, and 4/19/07, respectively – data assumes $15.00 share price

0.4x

0.5x

0.8x

0.8x

0.9x

0.9x

1.2x

1.2x

1.2x

1.4x

1.6x

2.6x

3.1x

$- $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 $40.00 $45.00 $50.00

MCGC

ACAS

GLAD

AINV

GAIN

KCAP

PSEC

BKCC

PNNT

ARCC

HTGC

TCAP

MAIN

Stock Value Dividends Paid


Investment Overview


Why We Target the Lower Middle-Market

12

• Over 65,000 lower middle-market companies in the United

States with revenues between $20 million and $200 million

– More than 90% are privately held

– Significant financing needs

• Highly fragmented market underserved by commercial and

investment banks

– Offers superior risk-adjusted returns

– Attractive niche for disciplined investors

• Less competitive pricing environment

– Relationships matter

– Certainty of closing is extremely important


Industry Diversification Is Important...

13

No single investment accounts for more than 5.0% of TCAP’s total revenue Investments at fair value as of 12/31/13 plus recently announced transactions

TCAP‘s investments total ~$715MM across 83 companies and 31 industries Agricultural / Garden

Products6.6%

Automotive Products2.4%

Business Services7.7%

Commercial Printing 0.3%

Construction0.0%

Consumer Products / Recreation

9.1%

Facilities Maintenance / Landscape Services

5.1%

Food & Beverage Manufacturing and

Packaging9.7%

Food Products / Equipment Distribution

2.2%

Food Service Contracting0.1%

Health Care2.8%

Home Furnishings / Hardware Distribution

1.1%

Industrial Products Manufacturing

4.4%

Industrial Recycling Services3.9%

Information / Technology6.9%

Marketing / Advertising Services

2.5%

Medical Supplies Manufacturing

3.2%

Nutritional Supplements2.2%

Oil & Gas - Downstream1.8%

Oil & Gas - Midstream2.8%

Oil & Gas - Upstream4.7%

Other Manufacturing2.2%

Power Generation Products Distribution

0.1%

Professional, Scientific, and Technical Services

5.4%

Residential and Commercial Security Systems

1.7%

Restaurants0.3% Retirement Plan

Administration1.9%

Specialty Chemicals Manufacturing

6.0%

Transportation Services1.4%

Waste Management Services

1.6%


...as Is Geographic Diversification...

14

Our disciplined style of investing hinges on the relationships

of our management team

Reflects number of portfolio companies as of 12/31/13 plus recently announced transactions

16%

39%

24%

20%

1% Canada


0.7% 0.8%

1.0%1.2%

1.3%

1.6%1.6%

1.9% 1.9%

2.5% 2.5% 2.6% 2.6% 2.7%2.7% 2.7%

3.2%3.4%

3.9%

5.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

...and Keeping Investments Small as a Percentage of Equity

15

Average Investment Size

as Percentage of Equity

Data based on most recent publicly available information as of 3/12/14

Average investment size is calculated as investments at FV divided by total number of portfolio investments


Lower Middle-Market Offers Favorable Risk-Adjusted Returns

16

Total Transaction Value

$70.0MM

EBITDA

Multiple Capital

Structure

Equity

Mezzanine

Debt

Bank

Debt

7.0x

3.0x – 4.0x

2.5x – 3.0x

$30MM –

$35MM

$10MM

12%-17%

pricing with

equity

upside

$25MM –

$30MM

Libor +

400bps

pricing

Typical Portfolio Company Transaction

7.0x EBITDA

(assumes EBITDA = $10.0MM)


Investment Structures Combine Current Yield with Equity Upside

17

Reflects number of portfolio companies as of 12/31/13 plus recently announced transactions

~80% of our investments have potential equity upside

Senior Debt Only, 1.6%

Senior Debt, Equity, 9.5%

Sub Debt Only, 20.6%

Sub Debt, Equity, 49.2%

Sub Debt, Equity, Royalty, 1.6%

Sub Debt, Equity, Warrant, 6.3%

Sub Debt, Royalty, 1.6%

Sub Debt, Warrant, 9.5%


Our Portfolio Companies Have Significant Management Ownership

18

37% of our portfolio management teams own 20% or more of their company, while 68% own 10% or more of their company

As of 12/31/13

24%

13%

31%

16%

11%5%

> 30%

20% - 30%

10% - 20%

5% - 10%

0% - 5%

= 0%


Financial Results


Our Financial Goals

20

• Maintain solid dividend reputation

– Allow NII to cover dividends on a long-term basis

– Harvest capital gains when possible

• Maintain disciplined cost controls

– Take advantage of fixed-cost operational structure

– Enable asset growth to outpace G&A growth

• Maintain prudent credit profile

– Opportunistic use of leverage to enhance shareholder returns

– Use long-term debt to increase NII (low-cost SBA debt / public bonds)


Quarter and Year Ended December 31, 2013

4Q 2013 FY 2013

Total Investment Income

$21,991 $101,028

Interest & Debt Financing Fees $ 5,136 $20,234

G&A Expenses $ 3,611 $19,265

Net Investment Income (“NII”) $13,244 $61,529

NII Per Share (1) $0.48 $2.23

Dividends Per Share $0.54 $2.16

Financial Results

21

$ in thousands, except NII and dividend per share

(1) Based on 27.7MM weighted average shares outstanding for 4Q 2013 and 27.6MM weighted average shares outstanding for FY 2013


Capitalization December 31, 2013

Cash and Cash Equivalents $133,304

SBA Debentures $193,285

Borrowings Under Credit Facility $ 11,221

Senior Notes $149,500

Total Borrowings $354,006

Total Stockholders’ Equity $445,792

Total Capitalization $799,798

Liquidity Position December 31, 2013

Cash $133,304

SBA Debentures Available $ 31,310

Credit Facility Available $153,779

Total Liquidity $318,393

Capitalization and Liquidity Position

22

$ in thousands


14.0% 14.2%13.8% 13.9% 13.7%

14.0% 14.2% 14.4% 14.3% 14.3% 14.4%14.7% 14.7%

15.4%15.1% 15.1% 15.2% 15.1% 15.1% 15.0% 15.1% 15.0%

14.7% 14.6% 14.8% 14.8%14.3% 14.1%

13.2%12.9%

12.4% 12.6% 12.5%13.0% 13.0% 13.2% 13.1% 13.1% 13.3% 13.5% 13.4%

14.0%13.7% 13.7% 13.9% 14.0% 14.0% 13.9% 14.0% 13.8%

13.4% 13.3% 13.4% 13.3%12.8% 12.8%

5.8% 5.8% 5.8% 5.8% 5.7%

4.8%

6.2%5.8% 6.0% 6.0% 6.0%

5.8% 6.0%

5.0%5.3%

4.0%

4.8% 4.6% 4.8% 4.8%5.3% 5.3%

5.0% 5.1% 5.2% 5.2% 5.2% 5.2%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

1Q2007

2Q 2007

3Q 2007

4Q 2007

1Q 2008

2Q2008

3Q2008

4Q2008

1Q 2009

2Q2009

3Q 2009

4Q2009

1Q 2010

2Q2010

3Q 2010

4Q 2010

1Q2011

2Q2011

3Q2011

4Q 2011

1Q2012

2Q2012

3Q2012

4Q2012

1Q2013

2Q2013

3Q2013

4Q2013

WAY - Debt WAY - Total Investments WACD

764bps

891bps

Our Fixed Funding Spread Creates Earnings Visibility

23

Balancing a conservative capital structure with fixed-rate investments

leads to significant earnings visibility WAY = weighted average yield WACD = weighted average cost of debt

Average Fixed Funding Spread

of 796 bps


Low Cost Structures Offer Greater Shareholder Returns

24

Internally

Managed

Externally

Managed

Includes dividend paying BDCs with increases in revenue, interest and G&A expenses from 2010 - 2013

Distribution of Incremental Revenue (2010 - 2013)

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

SLRC

GBDC

FDUS

NMFC

MCC

FSC

TCRD

PSEC

PNNT

GAIN

ARCC

MAIN

HTGC

TCAP

Shareholders Debtholders G&A


Equity Gains Help Protect Shareholder Capital

25

Minority equity investments provide TCAP an additional method of

protecting our asset base and sustaining our financial advantage

4 Inv.

5 Inv.4 Inv.

7 Inv.

7 Inv.

11 Inv.

21 Inv.

$31.8MM

-$10

-$5

$0

$5

$10

$15

$20

$25

$30

$35

2007 2008 2009 2010 2011 2012 2013 CumulativeNet Realized

Gain

$ m

illio

ns

Realized Events

Total Net

Realized Gains

Since IPO =

$31.8 Million


Cumulative Realized Gains/Losses Since 2007 as Percentage

of Total Investment Portfolio at Fair Value

26

Data based on most recent publicly available information as of 3/12/14

Gains/Losses FYE 2007– FYE 2013; Fair Value FYE 2013

4.8%

-38.5%-32.9%

2.9%

-32.7%

-4.9%

-19.3%

-3.4%

-15.6%

1.7%

-102.7%

-4.2% -1.9%

-120.0%

-100.0%

-80.0%

-60.0%

-40.0%

-20.0%

0.0%

20.0%

TCAP ACAS AINV ARCC BKCC GAIN GLAD HTGC KCAP MAIN MCGC PNNT PSEC


Current Annualized Dividend

27

Our disciplined investment strategy and attractive capital structure have enabled an industry-leading dividend

Data based on most recent publicly available information as of 3/12/14 Excludes special dividends declared (TCAP- $0.30; ARCC - $0.05; and expected to be declared by MAIN - $0.50-$0.55)

$2.16

$0.00

$0.80

$1.52

$1.04

$1.52

$1.00

$0.72

$1.28

$0.84

$1.24

$1.00

$1.98

$1.48

$0.50

$1.36

$1.12

$1.33

$1.43

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

TCAP ACAS AINV ARCC BKCC FDUS FSC GAIN GBDC GLAD HTGC KCAP MAIN MCC MCGC NMFC PNNT PSEC TCRD


Predictable, Recurring Dividend

28

(1) Includes $0.40 dividend and a $0.05 special distribution

All amounts on a per share basis

(2) Includes $0.54 dividend and a $0.15 special distribution; additional $0.15 special distribution to occur in 2Q 2014

$0.15

$0.26 $0.27$0.30 $0.31

$0.35$0.38

$0.40

$0.45

$0.40 $0.41 $0.41 $0.41 $0.41 $0.41$0.42 $0.42 $0.44 $0.44

$0.47 $0.47$0.50

$0.52 $0.53 $0.54 $0.54 $0.54 $0.54

$0.69

1Q2007

2Q2007

3Q2007

4Q2007

1Q2008

2Q2008

3Q2008

4Q2008

1Q2009(1)

2Q2009

3Q2009

4Q2009

1Q2010

2Q2010

3Q2010

4Q2010

1Q2011

2Q2011

3Q2011

4Q2011

1Q2012

2Q2012

3Q2012

4Q2012

1Q2013

2Q2013

3Q2013

4Q2013

1Q2014(2)


Corporate Information

29

Executive Officers Independent Directors Research Coverage Garland S. Tucker, III W. McComb Dunwoody BB&T Capital Markets Chairman & Chief Executive Officer Mark M. Gambill Vernon C. Plack, CFA 919-719-4779 Benjamin S. Goldstein 804-780-3257 Simon B. Rich, Jr. Keefe, Bruyette & Woods E. Ashton Poole Sherwood H. Smith, Jr. Greg M. Mason, CFA President & Chief Operating Officer 314-342-2194 919-747-8618 Corporate Officers Janney Montgomery Scott J. T. Rogers, CFA Brent P.W. Burgess C. Robert Knox, Jr., CPA 202-955-4316 Chief Investment Officer Principal Accounting Officer JMP Securities 919-719-4788 919-719-4786 Christopher York 415-835-8965 Steven C. Lilly Sheri Blair Colquitt Ladenburg Thalmann Chief Financial Officer & Secretary Vice President - Investor Relations Mickey M. Schleien, CFA 919-719-4789 919-719-4784 305-572-4131 National Securities Investment Professionals Thomas F. Moses Boris Pialloux, CFA Vice President & Treasurer 212-417-8272 Jeffrey A. Dombcik 919-747-8615 Raymond James Managing Director Robert J. Dodd, PhD 919-719-4785 Securities Listings - NYSE 901-579-4560 Robert W. Baird & Co. Cary B. Nordan, CFA Common Stock: “TCAP” Bryce Rowe, CFA Managing Director 804-447-8019 919-719-4778 2019 Senior Notes: “TCC” Stephens, Inc. John Hecht Douglas A. Vaughn, CFA 2022 Senior Notes: “TCCA” 415-655-6719 Managing Director Sterne Agee 919-719-4774 Kenneth James 615-760-1474 James J. Burke Transfer Agent - Computershare Wells Fargo Principal Jonathan Bock, CFA 919-719-4783 Trustee - BNY Mellon 443-263-6410 Matthew A. Young Auditors - Ernst & Young LLP Corporate Headquarters Principal 919-719-4787 Counsel - Bass, Berry & Sims PLC 3700 Glenwood Ave., Suite 530 Raleigh, NC 27612 www.tcap.com

investor presentation for the quarter ended december 31, 2013

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