Fiscal Q4 2016 Investor Presentation March 2017 NASDAQ: ABDC€¦ · Fiscal Q4 2016 Investor...

Alcentra Capital Corporation

FiscalQ42016InvestorPresentationMarch2017NASDAQ:ABDC


Forward‐LookingStatementsThispresentationhasbeenpreparedforinformationalpurposesonlyfrominformationsuppliedbyAlcentra CapitalCorporation(“ABDC”orthe“Company”)andfromthird‐partysourcesindicatedherein.Suchthird‐partyinformationhasnotbeenindependentlyverified.TheCompanymakesnorepresentationorwarranty,expressedorimplied,astotheaccuracyorcompletenessofsuchinformation.Thispresentationcontainsforward‐lookingstatementswhicharebasedoncurrentexpectationsandassumptionsaboutfutureevents.Forward‐lookingstatementsdescribefuturefinancialorbusinessperformance,strategies,orexpectations,andaregenerallyidentifiedbywordsorphrasessuchas“trend,”“opportunity,”“pipeline,”“believe,”“comfortable,”“expect,”“anticipate,”“current,”“intention,”“estimate,”“position,”“assume,”“plan,”“potential,”“project,”“outlook,”“continue,”“remain,”“maintain,”“sustain,”“seek,”“achieve,”andsimilarexpressions,orfutureofconditionalverbssuchas“will,”“would,”“could,”“should,”“may,”orsimilarexpressions.Youarecautionedthatsuchstatementsaresubjecttoamultitudeofrisksanduncertainties.Actualresultscoulddiffermateriallyfromthoseexpressedorimpliedintheforward‐lookingstatements,andfutureresultscoulddiffermateriallyfromhistoricalperformance.Theseforward‐lookingstatementsaresubjecttorisksthatinclude,butarenotlimitedto,thefollowing:

―Futureoperatingresults,includingtheperformanceofourexistingloansandwarrants;―Businessprospectsandtheprospectsofourportfoliocompanies;―Theeffectofinvestmentsthatweexpecttomake;―Contractualarrangementsandrelationshipswiththirdparties;―Actualandpotentialcon lictsofinterestwithourinvestmentadviser,Alcentra NY,LLC(the“Adviser”);―Thedependenceofourfuturesuccessonthegeneraleconomyanditseffectontheindustriesinwhichweinvest;―Theabilityofourportfoliocompaniestoachievetheirobjectives;―Theuseofborrowedmoneyto inanceaportionofourinvestments;―Theadequacyofour inancingsourcesandworkingcapital;―Thetimingofcash lows,ifany,fromtheoperationsofourportfoliocompanies;―TheabilityoftheAdvisertolocatesuitableinvestmentsforusandtomonitorandadministerourinvestments;―TheabilityoftheAdvisertoattractandretainhighlytalentedprofessionals;―Theabilitytoqualifyandmaintainourquali icationasaregulatedinvestmentcompanyandabusinessdevelopmentcompany;and

―OtherrisksanduncertaintiesdescribedinourSEC ilings.Youshouldconsiderthesefactorsinevaluatingtheforward‐lookingstatementsincludedherein,andnotplaceunduerelianceonsuchstatements.Theforwardlookingstatementsspeakonlyasofthedatetheyaremade,andweundertakenoobligationtoupdatesuchstatements.


4thquarterNetInvestmentIncomeof$10.8million,or$0.45pershare 2016fiscalyearNetInvestmentIncomepershareof$1.66,up16%over

$1.43in2015 Paidregularquarterlydividendof$0.34pershareonJanuary5,2017 Declaredregulardividendof$0.34pershareand$0.03persharespecial

dividendtoshareholdersofrecordonMarch31,2017;payableApril6,2017

NetAssetValue(“NAV”)of$13.72pershareasofDecember31,2016 TheCompanyrepurchasedatotalof65,133sharesduringthe2016fiscal

yearatanaveragesharepriceof$11.91foratotaldollaramountof$775,622

Alcentra CapitalCorporation– 4Q2016Snapshot


Investedin3newportfoliocompanies($21.9millionofcapitalinvested)

Lugano Diamonds Lugano Diamonds(“Lugano”)isaleadingluxurybrandofjewelrytoultra‐highnetworth

individuals. Invested$6.0millionin10.75%SeniorSecuredNotes.

SafeSecurity SAFESecurity(“SAFE”)isafullservicenationwidesecurityalarmcompanythatservicesand

monitorssecurityalarmcontracts. Invested$10.0millionin14.0%SeniorSubordinatedNotes.

PalmettoMoon PalmettoMoon,LLC(“PalmettoMoon”)isaspecialtyretailerofoutdoor,collegelifestyle,andstate

&localthemedapparel Invested$5.5millionin11.5%SeniorSecuredNotesand$434,000inpreferredequityfor1.7%

ownershipinterest

4Q2016Snapshot‐ PortfolioActivity


Incrementalinvestments($1.1mmofcapitalinvested) Black Diamond

Additional funding of $0.804 million as part of tranche C super senior notes XGS

Additional funding of $0.333 million as part of senior secured interim note

Realizations ($29.6mmofcapitalreturned) Aphena Pharma Solutions

Company repaid $1.1 million of senior secured debt on 10/28 Bioventus

Company repaid 2nd lien notes of $12.0 million on 11/15 Triton Technologies, Inc.

Company repaid $1.2 million due under the Note Purchase Agreement on 12/12 Limbach

Company repaid subordinated notes of $15.3 million on 12/21

4Q2016Snapshot‐ PortfolioActivity(cont’d)


Fromendof3rd quartertoDecember31,2016,fairvalueoftheportfoliodecreasedfrom~$306millionto~$276millionduetosecondarysaleofportfolioequityinvestmentsandearlyrepaymentof$15.3millionofLimbach debtonDecember21.

Snapshot‐ ABDCPortfolio

March31,2016 June30,2016 September30,2016

December31,2016

Portfolio FairValue $282.4million $293.6million $305.9million $276.3million

WeightedAverageYield 12.0% 11.7% 11.8% 11.7%

WeightedAverageLeverage1 3.64x 3.65x 3.69x 3.93x

1AllweightedaverageleveragefiguresexcludeMyAlarm,BlackDiamond,andXGS.


Snapshot‐ ABDCPortfolio

30% 27% 31% 37%

28% 32%31%

29%

25% 24%27%

26%

17% 17% 11% 8%

Asof3/31/16

Asof6/30/16

Asof9/30/16

Asof12/31/16

Equity

SubordinatedDebt2ndLienDebt

1stLienDebt

Metstrategicobjectiveofrebalancingportfolioto90%debt

Continuedtoincrease1st liendebtaspercentageofportfolio

Asof12/31/2016,58%ofdebtwasfloatingrateinvestments


AdjustedNetInvestmentIncome1 &DividendsPaidPerShare2

Notes:(1)Adjustednetinvestmentincome,whichisanon‐GAAPmeasure,representsnetinvestmentincomeexcludinganycapitalgainsincentivefeeexpenseor(reversal)attributabletorealizedandunrealizedgainsandlosses.Seepage10forareconciliationofthesenon‐GAAPmeasures.(2)Persharedatabasedonsharesoutstandingattheendofeachperiod.

0.18

0.340.37 0.38

0.35 0.34

0.410.44

0.35

0.45

0.18

0.34 0.34 0.34 0.34 0.34 0.34 0.34 0.34 0.34

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

0.45

0.50

Q22014 Q42014 Q12015 Q22015 Q32015 Q42015 Q12016 Q22016 Q32016 Q42016

AdjustedNetInvestmentIncome/Share Dividends


NetAssetValuePerShareandDividendsPaid

14.87 14.90 15.03 14.92 14.43 14.41 14.16 13.69 13.72

0.86 1.20 1.54 1.88 2.22 2.56 2.90 3.24 3.5815.73 16.10 16.57 16.80 16.65 16.97 17.06 16.93 17.30

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

20.00

Q42014 Q12015 Q22015 Q32015 Q42015 Q12016 Q22016 Q32016 Q42016

NetAssetValueperShare CumulativeDividendPerShare


PortfolioSize:

21

24

28 2829 29

3231

3335

32

0

5

10

15

20

25

30

35

40

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

Q22014 Q32014 Q42014 Q12015 Q22015 Q32015 Q42015 Q12016 Q22016 Q32016 Q42016

Num

berofPortfolioCom

panies

$Millions

Cost FairMarketValue #ofPortfolioCompanies


21portfolioinvestmentsrealizedsinceIPO– GrossUnleveredReturnsABDCRealizationsSinceInception

Tableexcludessecondarysaleofequity

RealizedInvestments&ExpectedRealizations

SecurityType

Repayment($000)

RepaymentDate

GrossIRR

GrossMOIC

GTTCommunications Debt 6,324 8/6/2014 47.50% 1.10x

WholesomeSweeteners Debt 8,846 9/2/2014 19.78% 1.06x

AcisOffshore Warrants 953 12/23/2014 34.30% 1.20x

AmericanAddictionCenters Debt 8,248 2/25/2015 19.13% 1.14x

ChoiceCable Debt 7,575 6/3/2015 12.95% 1.12x

WellBizBrands Debt 7,830 6/16/2015 15.34% 1.16x

Datascan Debt 3,050 8/5/2015 12.67% 1.15x

NARLMarketing Debt 15,337 8/6/2015 16.87% 1.10x

NetAccessCorporation Debt&Equity 14,684 11/19/2015 19.98% 1.23x

HealthFusion Debt&Warrants 8,038 1/4/2016 30.86% 1.51x

DentistryforChildren Debt 14,880 3/28/2016 14.19% 1.26x

ACTLighting Debt&Warrants 13,804 4/4/2016 31.04% 1.49x

RadiantLogistics Debt 10,300 4/22/2016 17.58% 1.17x

CityCarting PreferredEquity 12,504 5/27/2016 8.87% 1.18x

DBI Debt&Warrants 27,340 7/31/2016 39.13% 2.02x

AphenaPharmaSolutions Debt 1,100 10/28/2016 11.65% 1.24x

Bioventus Debt 12,000 11/15/2016 13.73% 1.27x

TritonTechnologies,Inc. Debt 1,200 12/12/2016 12.53% 1.24x

Limbach Debt 15,340 12/21/2016 64.53% 1.23x

WeatherRealtedInvestments:DRC Debt&Equity 1,695 1/19/2016 ‐56.09% 0.55x

ResponseTeam1 Debt&Equity 10,368 3/21/2016 1.58% 1.03x


Weightedaverageyieldof11.7%onBDCdebtportfolioasofDecember31,2016

AssetQuality– RiskAdjustedReturn,FirstDollarofAttachmentonABDCPortfolio

$88,413 $91,646 $100,967$127,733

$152,316 $128,036$133,277 $82,560

$18,510 $52,383 $28,815

$24,626

$18,140$14,587 $39,571

$38,104

March31,2016 June30,2016 September30,2016 December31,2016

CumulativeInvestment

($inthousands)

0.0x‐1.0x 1.0x‐3.0x 3.0z‐4.0x 4.0x‐4.5x 4.5x+

13%

0%10%

44%

33%

7%0%7%

55%

32%

14%

1%9%

30%

46%

5%1%

18%

44%

32%


AsofDecember31,2016,portfolioconsistedof32companiesrepresenting20industrysectors

ABDCPortfolio– IndustryConcentration

16%

15%

5%

7%

7%4%6%

5%

4%

8%

4%

4%

3%2%2%2%

1%1%1%2%

HealthcareServicesTechnology&TelecomWasteServicesHighTechIndustriesAutomotiveEnergyServicesIndustrialManufacturingEducationRetailSecurityMedia:Advertising,Printing&PublishingOil&GasServicesIndustrialServicesEnvironmentalServicesMedia&EntertainmentWholesaleTechnology&ITFood&BeverageAerospaceTransportationandLogistics


AsofDecember31,2016,portfolioconsistedof32companieslocatedinallregionsofthecountry

ABDCPortfolio– InvestmentsDiversifiedGeographically

Midwest18%

Northeast19%

South42%

West21%


AsofDecember31,2016,exposuretotheoil&gasindustrywas4.0%(ofportfolioFMV)throughinvestmentinBlackDiamond $10.078millionincombinedFMVasof

December31,2016 Ownedbyafamilyofficeandinstitutional

investorwithdeepresourcesandextensiveexperienceintheindustry.

AtyearendtotalrigcountinNorthAmericawasalmost63%higher thanattheendofMay2016

TexasandOklahomasawrigincreases overthesameperiod,twostateswhereBlackDiamondhassignificantoperations

ABDCPortfolio– Oil&GasExposure

0

100

200

300

400

500

600

700

Oklahoma

Texas

Total


Appendix


Notes:(1)InformationonthispagesummarizesthefinancialstatementsofAlcentraCapitalCorporationcontainedintheQuarterlyReports(10‐Q)filed onNovember10,2015,May5,2016,August4,2016,andNovember3,2016andtheAnnualReport(10‐K)filedonMarch9,2016andMarch?, 2017AllquarterlyandannualreportsarefiledwiththeSECandcanbeaccessedontheSECwebsite, www.sec.gov.(2)Onasupplementalbasis,weprovideinformationrelatingtoadjustednetinvestmentincome,whichisanon‐GAAPmeasure.Thismeasureisprovidedinadditionto,butnotasasubstitutefor,netinvestmentincome.Adjustednetinvestmentincomerepresentsnetinvestmentincomeexcludinganycapitalgainsincentivefeeexpenseor(reversal)attributabletorealizedandunrealizedgainsandlosses.

Quarter ended December 31, 2014

Quarter ended March 31,

2015

Quarter ended June 30, 2015

Quarter ended September 30, 2015


Quarter endedMarch 31,

2016

Quarter endedJune 30, 2016

Quarter endedSeptember 30, 2016


Total Investment Income 6,670,403 8,224,653 8,507,540 8,507,142 8,676,914 9,946,391 10,639,969 9,116,468 10,899,771

Management Fee 1,056,912 1,148,005 1,219,963 1,273,705 1,302,213 1,289,036 1,283,763 1,335,294 1,301,591

Incentive Fee ‐ Ordinary Income 806,100 397,028 546,027 521,295 790,727 926,158 607,739 930,543

Incentive Fee ‐ Capital Gains 1,001,467 434,217 (434,217) ‐ ‐ ‐ ‐ ‐

Incentive Fee 202,509 1,807,567 831,245 111,810 521,295 790,727 926,158 607,739 989,864

Other Expenses 1,503,328 1,293,374 1,806,983 1,979,583 2,323,804 2,261,736 2,531,702 2,386,642 2,489,161

Total Expenses 2,762,749 4,248,946 3,858,191 3,365,098 4,147,312 4,341,499 4,741,623 4,329,675 4,780,616

Management Fee Waiver (441,243) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

Incentive Fee Waiver (202,509) (1,001,467) ‐ ‐ ‐ ‐ ‐ ‐ ‐

Waiver of management and incentive fees (643,752) (1,001,467) ‐ ‐ ‐ ‐ ‐ ‐ ‐

Net Expenses 2,118,997 3,247,479 3,858,191 3,365,098 4,147,312 4,341,499 4,741,623 4,329,675 6,119,155

Net Investment Income 4,551,406 4,977,174 4,649,349 5,142,044 4,529,602 5,604,892 5,898,346 4,786,793 6,119,155

NII per share 0.34 0.37 0.34 0.38 0.34 0.41 0.44 0.35 0.45

Capital Gains Incentive Fee (Reversal) Expense ‐ ‐ 434,217 (434,217) ‐ ‐ ‐ ‐ ‐

Adjusted Net Investment Income2 4,551,406 4,977,174 5,083,566 4,707,827 4,529,602 5,604,892 5,898,346 4,786,793 6,119,155

Adjusted NII per share2 0.34 0.37 0.38 0.35 0.34 0.41 0.44 0.35 0.45


Notes:(1)InformationonthispagesummarizesthefinancialstatementsofAlcentraCapitalCorporationcontainedintheQuarterlyReports(10‐Q)filedonNovember10,2015,May5,2016,August4,2016,andNovember3,2016andtheAnnualReport(10‐K)filedonMarch9,2016.AllquarterlyandannualreportsarefiledwiththeSECandcanbeaccessedontheSECwebsite,www.sec.gov.

As of December 31,

2014

As of March 31, 2015

As of June 30, 2015

As of September 30, 2015

As of December 31, 2015

As of March 31, 2016

As of June 30, 2016

As of September 30, 2016

As of December 31, 2016

Portfolio investments, at fair valueNon‐controlled / non‐affiliated investments 167,325,100 173,433,992 189,074,441 194,281,248 221,349,073 205,364,448 228,320,326 269,067,466 239,722,117 Non‐controlled / affiliated investments 61,253,192 63,435,406 66,136,367 67,237,740 59,243,999 62,734,755 50,927,904 23,066,462 22,094,203

Controlled / affiliated investments 30,055,562 30,158,773 30,078,391 27,417,562 15,748,539 14,291,727 14,390,754 13,814,627 14,456,630

Total Portfolio Investments 258,633,854 267,028,171 285,289,199 288,936,550 296,341,611 282,390,930 293,638,984 305,948,555 276,272,950

Cash 10,022,617 3,962,318 3,806,606 11,472,602 4,866,972 3,831,847 5,038,752 6,708,245 3,891,606

Other Assets 3,562,904 2,866,260 4,045,943 5,593,200 6,287,224 6,031,457 5,860,596 10,608,526 8,033,491

Total Assets 272,219,375 273,856,749 293,141,748 306,002,352 307,495,807 292,254,234 304,538,332 323,265,326 288,198,047

Credit facility payable 62,499,154 56,954,490 38,054,738 52,654,738 63,504,738 42,709,057 51,685,846 70,872,238 39,133,273 Notes payable (net of deferred offering costs) ‐ ‐ 40,000,000 40,000,000 40,000,000 44,120,163 50,130,063 53,451,176 53,504,938

Other Liabilities 8,730,913 15,547,928 11,955,953 11,613,942 8,958,858 10,856,828 11,634,887 14,283,719 11,035,245

Total Liabilities 71,230,067 72,502,418 90,010,691 104,268,680 112,463,596 97,686,048 113,450,796 138,607,133 103,673,456

Net Assets 200,989,308 201,354,331 203,131,057 201,733,672 195,032,211 194,568,186 191,087,536 184,658,193 184,524,591

Shares Outstanding 13,516,766 13,516,766 13,516,766 13,516,766 13,516,766 13,506,257 13,490,636 13,490,636 13,451,633

NAV per Share 14.87 14.90 15.03 14.92 14.43 14.41 14.16 13.69 13.72


Portfolio Company Industry Security Type Maturity Fixed/ Floating

Coupon Structure Cost Basis Market Value

Country

A2Z Wireless Technology & Telecom Term Note 1/15/2021 Floating L + 9% (100bps floor) Cash 10,637 10,744 USAA2Z Wireless Technology & Telecom Delayed Draw Term Note 1/15/2021 Floating L + 9% (100bps floor) Cash 3,656 3,693 Alpine Waste Waste Services 2nd Lien Debt 12/30/2020 Floating L + 9% (100bps floor) Cash /

0.5% PIK 11,132 11,132 USA

Battery Solutions Environmental Services Senior Subordinated Notes 11/6/2021 Fixed 6% Cash / 8% PIK 2,218 2,218 USABattery Solutions Environmental Services Preferred Equity 11/6/2021 Fixed 8% PIK 3,817 3,817 Battery Solutions Environmental Services Common Equity & Warrants - - - 1,058 482 Black Diamond Oil & Gas Services Senior Secured 7/9/2018 Fixed - 5,938 5,565 USABlack Diamond Oil & Gas Services Senior Subordinated Notes 7/9/2018 Fixed - 8,009 3,709 Black Diamond Oil & Gas Services Senior Secured 7/9/2018 Fixed 4.0% Cash / 10% PIK 804 804 Conisus Media: Advertising, Printing &

Publishing2nd Lien Debt 6/23/2021 Floating L + 8.75% (100bps floor) Cash 11,750 10,870 USA

FST Technical Services Technology & Telecom 1st Lien Debt 11/18/2018 Fixed 12% Cash / 5% PIK 13,316 13,316 USAFST Technical Services Technology & Telecom Equity 11/18/2018 Fixed 9% PIK 1,807 1,141 USAGraco Supply Aerospace 2nd Lien Debt 3/17/2021 Fixed 12% Cash 4,000 3,877 GST AutoLeather Automotive Senior Subordinated Notes 1/11/2021 Fixed 11% Cash / 2% PIK 8,369 8,369 USAHCAT Healthcare Services 2nd Lien Debt 4/30/2022 Fixed 12.25% Cash 8,500 8,500 USAHCAT Healthcare Services Delayed Draw Notes 4/30/2022 Fixed - - - IGT Industrial Services 1st Lien Debt 12/10/2019 Floating L + 8.75% (100bps floor) Cash /

1.5% PIK 8,005 8,064 USA

IGT Industrial Services Class AA preferred 12/10/2019 Fixed 15% Preferred Dividend 292 292 IGT Industrial Services Preferred Equity - Fixed 11% Preferred Dividend 1,111 - IGT Industrial Services Common Equity - - - 44 - LRI Energy Services 1st Lien Debt Floating L + 9.75% (50bps floor) Cash 9,907 10,000 USALRI equtiy Energy Services Equity 9/28/2021 - - 1,000 1,084 Lugano Retail Equity Floating L + 10.0% (75bps floor) Cash 667 667 USALugano Retail Senior Secured Term Note Floating L + 10.0% (75bps floor) Cash 5,235 5,356 Lugano Retail Delayed Draw Notes 10/24/2021 Floating L + 10.0% (75bps floor) Cash - - Media Storm Media & Entertainment Senior Subordinated Notes 8/28/2019 Fixed 10% Cash 2,455 2,455 USAMedsurant Healthcare Services 2nd Lien Debt 6/18/2021 Fixed 12.25% Cash 6,138 6,200 USA

PortfolioInvestmentsasofDecember31,2016

($inthousands)Notes:TotalUnrealizedInvestmentsinAlcentra CapitalCorporation(ABDC)asofDecember31,2016.


PortfolioInvestmentsasofDecember31,2016Portfolio Company Industry Security Type Maturity Fixed/

FloatingCoupon Structure Cost Basis Market

ValueCountry

Metal Powder Products Industrial Manufacturing Senior Subordinated Notes 11/5/2021 Floating L + 12.25% (75bps floor) Cash 8,250 8,250 USAMetal Powder Products Industrial Manufacturing Common Equity - - 500 659 My Alarm Center Security Equity - - - 285 USAMy Alarm Center Security 2nd Lien Debt 7/9/2019 Floating L + 11% (100bps floor) Cash 12,625 12,625 Nation Safe Drivers Automotive 2nd Lien Debt 9/29/2020 Floating L + 8% (200bps floor) Cash 11,721 11,838 USANextCare Healthcare Services Senior Subordinated Notes 12/31/2018 Fixed 10% Cash/4% PIK 14,860 15,050 USANTI Technology & Telecom Unitranche Debt 3/30/2021 Floating L + 8% (100bps floor) Cash 11,636 11,636 USANTI Technology & Telecom Common Equity - - - 403 779 NTI Technology & Telecom Warrant 1/0/1900 - - 225 445 NWN Technology & IT 1st Lien Debt 10/16/2020 Floating L + 9% Cash (100bps floor) 3,841 3,919 USAPalmetto Moon Retail Common Equity - - 434 434 Palmetto Moon Retail 1st Lien Debt 10/31/2021 Fixed 11.5% Cash 5,541 5,566 USAPharmalogic Healthcare Services Subordinated Debt 9/1/2021 Fixed 12% Cash 14,000 14,000 USAQRC High Tech Industries Subordinated Debt 11/20/2021 Fixed 12.25% Cash 10,000 10,000 USASafe Security Security Subordinated Debt 6/19/2020 Floating L + 13% Cash (100bps floor) 9,800 10,000 USAShow Media Media & Entertainment Senior Secured 8/10/2017 Fixed 5.50% Cash / 5.50% PIK 4,057 2,077 USAShow Media Media & Entertainment Series A Preferred 1/31/2019 0 - 3,747 - Show Media Media & Entertainment Warrant - - - - - Southern Technical Education 2nd Lien Debt 12/2/2020 Floating L + 8.00% (100bps floor) Cash /

4% PIK 8,156 8,156 USA

Southern Technical Education Class SP-1 Units - Fixed 15.75% Preferred Dividend 4,293 4,404 Southern Technical Education Equity 10/15/2022 - - 2,167 796 Southern Technical Education Warrant - - - 110 - Southern Technical Education Penny Warrants - - - 111 144 Stancor Wholesale Unitranche Debt 8/19/2019 Floating L + 9% (100bps floor) Cash 4,900 4,900 USASuperior Controls High Tech Industries Senior Secured Notes 3/22/2021 Floating L + 8.75% (100bps floor) Cash 10,000 10,000 USASuperior Controls High Tech Industries Preferred Equity - - - 400 516 Tunnel Hill Waste Services Common Equity - - - 2,454 2,029 USATunnel Hill Waste Services Common Equity - - - - - Vectra Industrial Manufacturing 2nd Lien Debt 10/28/2022 Floating L + 9.75% (100bps floor) Cash 6,723 7,350 USAWholesome Sweeteners Food & Beverage Equity - - - 5,000 3,700 USAXGS Transportation and Logistics 2nd Lien Debt 4/10/2020 Fixed 10% PIK 5,061 2,352 USAXGS Transportation and Logistics Warrant 4/10/2020 - - 489 - XGS Transportation and Logistics 2nd Lien Debt 4/10/2020 Fixed 12% Cash 1,926 1,965 Total Investments $293,291 $276,228

($inthousands)Notes:TotalUnrealizedInvestmentsinAlcentra CapitalCorporation(ABDC)asofDecember31,2016.


PaulHatfield,ChairmanoftheBoardofDirectorsofABDCPauljoinedAlcentra in2003andwastheseniorportfoliomanagerfortheEuropeanCLOsatAlcentra Ltd.,untilmovingtoheadAlcentra NY’sU.S.businessinJuly2008.InFebruary2010,PaulbecameGlobalChiefInvestmentOfficerofAlcentra,Ltd.FromApril2002toMarch2003,PaulwasasenioranalystfortheCDOoperationsofIntermediateCapitalGroup,wherehecoveredbuildingproductsandconstruction,aerospaceandconsumercredits.Between1995and2001,PaulworkedatDeutscheBankinLondonfortheLeveragedFinanceGroup.In1998,whileatDeutscheBank,PaulworkedinNewYorkwherehesupervisedLeveragedFinanceandthetelecomdivision.BeforejoiningDeutscheBank,PauloriginatedaportfolioofmezzanineanddevelopmentcapitalloansatFennoScandia Bank.HeoriginallytrainedasacharteredaccountantintheauditdivisionofArthurAndersen.PaulreceivedaB.A.(Honors)inEconomicsfromCambridgeUniversity.

PaulEchausse,ChiefExecutiveOfficer&PresidentofABDCPaulisresponsiblefortheoverallmanagementanddirectionoffundinvesting,includingtransactionsourcing,dealexecutionandthemonitoringofportfoliocompanies.Paulisamemberoftheinvestmentcommittee,servesastheChairmanoftheboardofdirectorsofGrindmaster Cecilware CorporationandisamemberoftheboardofdirectorsofEmeraldWasteServices,EBBrands,BatterySolutions,DRCandFSTTechnicalServices.Paulbringsmorethan20yearsofleveragedfinanceexperiencetotheoriginationandmanagementofthePartnership’sinvestmentportfolios.PriortojoiningAlcentra,PaulwasPresidentofKisco CapitalCorporation,thegrowthcapitalSmallBusinessInvestmentCompanyaffiliateoftheKohlbergfamilyoffice.PreviouslyhewasChiefOperatingOfficerofIBJSCapitalCorporation,thejuniorcapitalinvestmentaffiliateofIBJSchroderBank.PriortoIBJS,PaulwastheAssistantDivisionHeadofSoutheastBankingfortheBank ofNewYork.PaulhasservedasPresidentoftheNortheastRegionalAssociationofSmallBusinessInvestmentCompaniesandonthenationalboardoftheNationalAssociationofSmallBusinessInvestmentCompanies.PaulreceivedaB.S.fromFordhamUniversity,magna cumlaude,PhiBetaKappa,anM.B.A.fromNewYorkUniversityandaJ.D.fromFordhamLawSchool,andisamemberoftheNewYorkStateBar.

EllidaMcMillan,ChiefAccountingOfficerofABDCEllidajoinedAlcentra in2013andistheChiefAccountingOfficer.PriortojoiningAlcentra in2013,EllidaconsultedwithTatumPartners,thelargestexecutiveservicesfirmintheUSofferingCFOservices.Previously,shewasacorporatecontrolleratKBCFinancialHoldings,asubsidiaryofKBCFinancialProductsUKLtd,whichengagedinthesales,structuringandriskmanagementofequitylinkedandequityderivativesinstruments.PriortoKBC,EllidawasanassociateddirectorofFixedIncomeDerivatives at BearStearns.EllidabeganhercareerasanauditoratArthurAnderseninthefinancialservicesector.EllidaholdsaB.S.fromFairfieldUniversityandisalicensedC.P.A.

TeamOverview


David Scopelliti, Managing Director of ABDC and the AdviserDavid joined Alcentra in 2014. Most recently, David was a Principal at GarMark where he focused on investing subordinated debt and equity in middle market companies. Prior to joining GarMark in 2007, David was a Managing Director with Pacific Corporate Group, an alternative asset investment firm, responsible for discretionary and non‐discretionary private investment programs forcorporate and governmental entities. Prior to that, David served as Head of Private Equity for the State of Connecticut, where he restructured and rebuilt its $4.0 billion private equity program. David’s prior experience also includes having been a Managing Director with CIBC World Markets in its leveraged finance group investing capital alongside financial sponsors. David received his B.B.A. in Finance/Accounting from Pace University, Lubin School of Business.

Branko Krmpotic, Managing Director of the AdviserBranko rejoined Alcentra in 2013. Prior to Alcentra, Branko was a senior analyst at Raven Asset Management, a credit hedge fund focused on a wide variety of credit investments. Prior to Raven, he structured private investments and loans at GSO Capital Partners (now owned by Blackstone) and before that at Technology Investment Capital Corp. (NASDAQ:TICC). Branko worked with Paul Echausse at the Bank of New York in the formation of the Mezzanine Group at its inception. Branko received his M.B.A. from Baruch College – CUNY where he received the Vincent De Lorenzo award for scholastic excellence. He received undergraduate degrees from New York University and University of Belgrade, Serbia.

Karin Kovacic, Vice President, Business Development & Marketing of the AdviserKarin joined Alcentra in 2013. Prior to Alcentra, Karin developed and implemented CBIZ MHM LLC’s growth, marketing and business development strategies in the New York Metropolitan area. Prior to CBIZ, Karin spent four years as Vice President atFifth Street Capital, where she was responsible for North East deal origination, as well as coordinating their business development and marketing efforts. She also spent four years with UBS Financial as a Registered Associate where she was actively involved in institutional sales of equity related products and relationship management. Karin began her career at SmithBarney as a Registered Sales Associate. Karin graduated magna cum laude from SUNY Purchase with a B.A. in Liberal Arts. She is on the board of the New York Chapter of the Alliance of Merger & Acquisitions Advisors (AM&AA) and is the President of the Connecticut Chapter of the Association for Corporate Growth (ACG).

TeamOverview


DanteDeRogatis,Associate,FinanceProfessionaloftheAdvisorDanteisresponsiblefortransactionexecution,duediligence,andthemonitoringofportfoliocompanies.PriortojoiningAlcentra,DantewasasenioranalystintheCorporateandProjectWorkoutsGroupatPrudentialCapitalGroupandinternedatImperialCapitalandUBSpreviously.WhileatPrudentialCapital,Danteworkedonvariousdistressedinvestmentsandrestructurings.DantegraduatedfromUniversityofMaryland,CollegePark,withaBAinEconomics.

AlfredMinahan,Associate,FinanceProfessionaloftheAdvisorAlisresponsiblefortransactionexecution,duediligence,andthemonitoringofportfoliocompanies.PriortojoiningAlcentra,AlwasananalystintheLeveragedFinancegroupatJefferiesinNewYork,andbeforethatworkedatErnst&YounginBoston.WhileatJefferies,Alworkedonavarietyofleveragedfinancetransactionsincludingacquisitions,mergers,recapitalizations,andrestructuringsacrossmultipleindustries.AlgraduatedfromBostonCollege,CarrollSchoolofManagementwithaB.S.inFinanceandAccounting.

CaitlinParrella,FinancialAnalystofABDCJoinedAlcentra inFebruary2017.PriortojoiningAlcentra,CaitlinwasaseniorconsultantintheSecuritizationgroupatDeloitte.WhileatDeloittesheworkedonavarietyofcommercialmortgagebackedsecuritytransactionsincludingconduits,singleassets,agency,andseasonedloans.CaitlingraduatedfromtheUniversityofFlorida,HeavenerSchoolofBusinesswithaBachelorofScienceinBusinessAdministrationwithaMajorinFinance.

StevenLevinson,ChiefComplianceOfficerofABDCandtheAdvisorStevenjoinedAlcentra inOctober2011.PriortojoiningAlcentra,StevenspentfouryearsatStoneTowerCapitalwhereheservedasDirectorofCompliance.FromMarch2003toDecember2006,StevenwastheChiefAuditExecutiveatIDTCorporation.HebeganhiscareeratPriceWaterhouseandspentfourteenyearsintheInternalAuditdepartmentsofmajorfinancialinstitutions.Steven receivedaB.A.inAccountingandEconomicsfromQueensCollegeoftheCityUniversityofNewYorkandanM.B.A.withaconcentrationinFinancialManagementfromPaceUniversity.

PrumiysDulger,DeputyChiefComplianceOfficeroftheAdvisorPrumiysjoinedAlcentra inJuly2014.PriortojoiningAlcentra,PrumiysspenttwoyearsastheChiefComplianceOfficerforDaiwaAssetManagementAmerica,aLatinAmericansecurityfocusedregisteredinvestmentadvisor.Previously,Prumiysspent8yearsworkingatKeefe,Bruyette &Woods,Inc.whereshewasaVicePresidentintheComplianceDepartment.PriortojoiningKeefe,Bruyette &Woods,Inc.,PrumiyswasanAssistantVicePresidentintheAssetManagementComplianceDepartmentatCitigroupcoveringtheNorthAmericanFixedIncomeGroupatCitigroupAssetManagement.PriortoCitigroup,PrumiysspenttwoyearsatNomuraHoldingsAmerica,Inc.whereshewasresponsiblefortwofixedincomeregisteredinvestmentadvisorswithfocusesindistresseddebt,emergingmarketandmortgagebackedsecurities.PrumiysholdsaB.A.inEconomicsfromBarnardCollege,ColumbiaUniversityandaJ.D.fromNewYorkLawSchool.

TeamOverview

Fiscal Q4 2016 Investor Presentation March 2017 NASDAQ: ABDC€¦ · Fiscal Q4 2016 Investor...

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