Apollo Investment Corporation Investor Presentation

Transcription

1 Apollo Investment Corporation Investor Presentation March 8, 2017 Information is as of December 31, 2016 except as otherwise noted. It should not be assumed that investments made in the future will be profitable or will equal the performance of investments in this document.

2 Disclaimers, Definitions, and Important Notes Forward-Looking Statements We 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 of 1933, 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 to predict 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 of operations, plans and objectives, including information about our ability to generate attractive returns while attempting to mitigate risk. When used in this release, the words believe, expect, anticipate, estimate, plan, continue, intend, should, may or similar expressions, are intended to identify forwardlooking 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 risks associated with investing in real estate assets, 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. Forwardlooking statements 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 these factors 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 our forward-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 those events 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 forwardlooking 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 service providers. Past Performance Past 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 that they 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 at any time without notice. Apollo Investment Corporation (the Corporation or AINV or the Fund ) is subject to certain significant risks relating to our business and investment objective. For more detailed information on risks relating to the Corporation, see the latest Form 10-K and subsequent quarterly reports filed on Form 10-Q. Financial Data Financial data used in this presentation for the periods shown is from the Corporation s Form 10-K and Form 10-Q filings with the SEC during such periods. Unless otherwise indicated, the numbers shown herein are rounded and unaudited. Quarterly financial information about the Company refers to fiscal quarters. The Company s fiscal year 2017 ends March 31,

3 Disclaimers, Definitions, and Important Notes (cont.) AUM Definition Assets 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 capital commitments 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 their capital 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 asset value 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 debt obligation 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 values of 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) the incremental 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 credit facilities, including capital commitments for investments that may require pre-qualification before investment plus any other capital commitments available for investment that are not otherwise included in 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 operating agreement 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 not limited 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 it uses 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 of AUM 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 investment managers. 2

4 Agenda Overview of Apollo Investment Corporation Market Opportunity Investment Strategy Portfolio Review Conclusion Appendices 3

5 Overview of Apollo Investment Corporation 4

6 Introduction to Apollo Investment Corporation ( AINV ) Middle Market Lender Publicly traded (NASDAQ: AINV) business development company ( BDC ) treated as a regulated investment company ( RIC ) for tax purposes Primarily provides debt solutions to U.S. middle market companies with a focus on direct origination Since IPO in April 2004 and through December 31, 2016, invested $16.9 billion in 391 portfolio companies $2.53 billion portfolio across 85 companies (average portfolio company investment $29.7 million) 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, a leading alternative asset manager with approximately $192 billion of AUM (2) (4) with expertise in private equity, credit and real estate Apollo Global Management, LLC was founded in 1990 Competitive Advantages Apollo Affiliation Apollo affiliation provides significant benefits Large and diverse direct origination team with joint front engine across AINV & MidCap Financial ( MidCap ) (5) Flexible Mandate Generally able to invest in all levels of the capital structure flexible mandate Broad product offering Experienced management team Exemptive Relief to Co-Invest (7) Expected to improve AINV s competitive positioning Expected to increase deal flow (1) On a fair value basis. (2) As of December 31, (3) Apollo Investment Management, L.P. (4) See definition of AUM at beginning of presentation. (5) MidCap Financial refers to MidCap FinCo Limited, 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) 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. 5

7 AINV Key Differentiators Strong External Manager Large and Diverse Direct Origination Team Broad Product Offering Significant Scale Ongoing Commitment To Repurchase Stock Co-investment Exemptive Relief Active Investor 6

8 Strong External Manager Apollo Global Management, LLC (NYSE: APO) AGM is a leading global alternative investment manager with approximately $192 billion of AUM (1) Firm Profile (1) Business Segments (1) Founded: 1990 AUM: $192bn Private Equity $44bn AUM Credit $137bn AUM Real Estate $11bn AUM Employees: 986 Inv. Professionals: 376 Global Offices: 15 Opportunistic buyouts Distressed buyouts and debt investments Corporate carve-outs Drawdown Liquid / Performing Permanent Capital Vehicles: -Athene -MidCap -AINV -Closed-End Funds Advisory Commercial real estate Global private equity and debt investments Performing fixed income (CMBS, CRE Loans) Investment Approach Global Footprint (1) Value-oriented Contrarian Integrated investment platform Toronto Chicago Chicago Los Angeles Houston Toronto New York Bethesda London Madrid Frankfurt Luxembourg Delhi Shanghai Opportunistic across market cycles and capital structures Bethesda Mumbai Hong Kong Singapore Focus on nine core industries (2) (1) As of December 31, See definition of AUM at the beginning of the presentation. AUM components may not sum due to rounding. (2) Apollo s core industry sectors include chemicals, natural resources, consumer and retail, distribution and transportation, financial and business services, manufacturing and industrial, media and cable and leisure, packaging and materials and the satellite and wireless industries. 7

9 Portfolio Snapshot Selected Financial Data (1) Investment Portfolio (2) $2.53 bn # of Portfolio Companies 85 Debt Outstanding $1.03 bn Net Assets $1.51 bn Net Leverage Ratio (3) 0.66x Net Asset Value Per Share $6.86 Common Equity and Warrants 11% Structured Products and Other 9% Unsecured 10% Portfolio by Security Type (1) (2) 2nd Lien 27% Preferred Equity 1% 1st Lien 42% Most Recent Quarterly Dividend (4) $0.15 Market Information (5) Portfolio by Strategy (1) (2) Market Capitalization $1.43 bn Share Price $6.51 Price-to-Book 0.95x Dividend Yield at Share Price (6) 9.2% Dividend Yield at NAV (7) 8.7% Life Sciences & Asset Based 1% (8) Existing Specialty Verticals 30% Other 5% Aircraft Leasing 19% Corporate Lending 46% (1) As of December 31, (2) On a fair value basis. (3) Net leverage ratio is defined as debt outstanding plus payable for investments purchased, less receivable for investments sold, less cash, less foreign currencies at fair value, divided by net assets.. (4) On February 3, 2017, the Board of Directors declared a dividend of $0.15 per common share to shareholders of record as of March 21, 2017 payable on April 6, (5) As of March 6, (6) Most recent quarterly dividend annualized divided by share price. There can be no assurances that AINV s dividend will remain at the current level. (7) 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. (8) Existing specialty verticals includes oil & gas, renewables, shipping and structured credit. 8

10 Apollo Direct Origination Capabilities Premier U.S. Private Debt Platform AGM is a Leading Alternative Credit Manager with Permanent Capital Vehicles Focused on Direct Origination + AINV is a business development company or BDC focused on middle market debt $2.5 Billion Portfolio (1) MidCap is a full service finance company focused on middle market senior debt ~ $6.9 Billion Portfolio (1) Best-in-Class Middle Market Loan Originator (1) As of December 31,

11 Key Investment Professionals Providing Services to AINV Direct Origination Investment Committee Name Jim Zelter Howard Widra Tanner Powell Pat Ryan Underwriting Team Title Managing Partner and Chief Investment Officer, Credit Chief Executive Officer of Apollo Investment Corporation Global Head of Direct Origination President of Apollo Investment Corporation Chief Investment Officer, Apollo Investment Management, L.P. Chief Credit Officer, Credit Chief Credit Officer, Apollo Investment Management, L.P. Years of Work Experience Years at Apollo By Title Average Years of Work Experience Average Years at Apollo 3 Managing Directors Principals Junior Staff Origination / Sourcing Team 35+ people focused on direct origination / sourcing 10

12 Co-Investment Opportunities AINV received exemptive relief from the SEC permitting it to enter into previously prohibited negotiated joint transactions with other funds / entities managed by AGM, including MidCap, (1) We believe exemptive relief to co-invest should improve AINV s competitive positioning Allows AINV to compete more on the basis of size / scale and certainty of execution, rather than simply on price Enhances ability to originate larger transactions with the ability to hold and / or syndicate loans Expected to increase deal flow number and variety of deals Ability to partner with MidCap which provides AINV with access to MidCap s expertise in niche markets with high barriers to entry Already seeing a strong pipeline of co-investment opportunities with MidCap AINV does not lend to portfolio companies owned by AGM s private equity funds We believe that the scale of AINV, MidCap and other Apollo managed capital, on a combined basis, makes us one of the largest market participants uniquely 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. 11

13 Recent Accomplishments & Future Objectives We believe that we have already made good progress executing on our strategy, and we will endeavor to continue to do so Recent Accomplishments Resolved certain legacy positions Reduced exposure to CLO s (1) and structured credit Reduced oil & gas exposure Received co-investment exemptive relief (2) Actively repurchased stock below NAV Reduced leverage Realigned dividend Future Objectives Originate assets consistent with strategy Transition away from certain existing specialty verticals Maximize benefits of unified direct origination platform Maximize benefits of co-investment exemptive relief (2) (1) Collateralized loan obligation. (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. 12

14 Market Opportunity 13

15 Compelling Market Opportunity If the middle market were a stand-alone country, it would be the 3rd largest economy in the world (1) There are nearly 200,000 U.S. middle market businesses that represent onethird of private sector GDP, employing ~47.9 million people. 25% Middle Market Businesses Require Capital to Support Growth (1) (2) 5% Capital Expenditure 35% Information Technology Acquisitions United States China U.S. Middle Market Japan Germany 14% 21% Human Resources Other $ in billions Significant need for refinancing of existing loans made to middle market companies; Bulk of deals come due in 2020 and 2021 (3) Middle Market Institutional Loan Maturities $36 $30 $24 $25 $16 $19 $9 Significant un-invested private equity capital should translate into strong loan demand (4) $ in billions $534 $ Un-invested U.S. private equity capital Implied potential loan demand (assuming 40% capitalization rate) (1) Source: National Center for the Middle Market 4Q 2016 Middle Market Indicator. (2) Chart represents capital investment allocation of U.S. middle market companies willing to invest. 65% expressed a desire to invest. (3) Middle market institutional estimated maturities. Source: Thomson Reuters LPC. (4) Source: PitchBook Private Equity 2H 15 Fundraising and Capital Overhang Report. 14

16 Bank Regulation and Related Impact Banks Cautious Approach Total Number of U.S. Banks Continues to Decline (1) Post the Global Financial Crisis, there has been a significant impact on traditional financing sources and the global capital markets Banks have markedly decreased their underwriting exposure Regulatory scrutiny has continued to intensify and is particularly noticeable with the Office of the Comptroller of the Currency ( OCC ) leveraged lending guidance. Originally introduced in 2013, but has recently been more broadly enforced to reduce banks exposure to certain types of loans. 12,000 10,000 8,000 6,000 4,000 2,000 40% Decline since 2000 Impacting significant portion of high yield and loan markets Leveraged Lending Guidance Banks Reduced Participation in Loan Market (2) Main requirements for financial institutions underwriting leveraged transactions include: Leverage: cannot exceed 4x EBITDA for senior debt or 6x for total debt (including all committed capital and assuming revolvers are drawn) Repayment: senior debt must fully amortize or total debt must be reduced by half using free cash flow within 5-7 years Covenants: adequate covenant protections, including financial maintenance covenants Collateral: protection against dilution, sale or exchange of collateral or cash flow producing assets 100% 80% 60% 40% 20% 0% Banks & Securities Firms Non-banks (3) 88% 12% Banks are participating in fewer junior capital transactions or syndicating increasing portions of their exposure Source: (1) FDIC as of September 30, 2016 Commercial banks and savings institutions. (2) S&P Global Market Intelligence as of December 31, (3) Non-banks includes institutional investors and finance companies. 15

17 Middle Market Lending Offers Better Risk-Adjusted Returns Control of origination for middle market loans is designed to result in better economics and risk-adjusted returns Benefits Broadly Syndicated Loans Middle Market Loans 1 2 Control Over Credit Documentation Due Diligence Access Partial Full 3 Credit Performance Enhanced Relationship With Borrower Limited Comprehensive Hold Size Flexibility / Control Origination Economics Premium Asset Spreads Syndication Control Middle market loans historically have had lower default rates and higher recovery rates than broadly syndicated loans 16

18 Investment Strategy 17

19 Investment Strategy We intend to reposition our portfolio in such a way that we believe will have a lower risk profile and less volatility Specifically, we will endeavor to: Increase exposure to senior secured loans sourced by Apollo s direct origination platform Focus on floating rate loans Transition away from certain existing specialty verticals Add exposure in first lien loans in life sciences, asset-based lending, and lender finance Improve credit quality of portfolio Emphasize portfolio diversification and avoid outsized single name or industry concentrations With the successful execution of this repositioning plan, we believe that AINV should generate consistent and sustainable ROEs 18

20 Target Portfolio We intend to increase our exposure to senior secured loan sourced by Apollo s direct origination team, while adding exposure in first lien loans in life sciences, asset-based lending, and lender finance areas with significant barriers to entry and areas in which MidCap has expertise Current Portfolio Asset Mix (1) Life Sciences & Asset Based Other 1% 5% Target Portfolio Asset Mix Life Sciences, Asset-Based Lending and Lender Finance ~20% to 25% Existing Specialty Verticals 30% (2) Corporate Lending 46% Existing Specialty Verticals and Other ~7% Corporate Lending ~ 50% 60% Aircraft Leasing 19% Aircraft Leasing ~15% (1) As of December 31, On a fair value basis. (2) Existing specialty verticals includes oil & gas, renewables, shipping and structured credit. 19

21 Comprehensive Approach to Originations We believe that Apollo has one of the largest and most diverse origination teams in the marketplace covering a diverse array of end markets Origination Channels Direct Origination Financial Sponsors AINV has completed transactions with 100+ different sponsors AINV and MidCap unified calling effort into financial sponsors Ability to offer full suite of products increases relevancy Corporate Lending Niche Markets Specialized industry expertise in areas with high barriers to entry AINV and MidCap specialized teams AINV has access to all MidCap specialized teams Life Sciences, ABL, Lender Finance and Aviation 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 Combined with the recent receipt of exemptive relief to co-invest, we believe that the Apollo platform is one that very few alternative asset managers can compete against 20

22 Apollo s Direct Lending Suite We believe the Apollo platform has one of the broadest suites of direct lending products in the marketplace Origination Channel Asset Yield AINV MidCap 1 Corporate Lending Senior 4% 6% Stretch Senior 6% 8% Junior 8% 11% Real Estate Lending 4.5% 7.5% Life Sciences Lending 9% 12% Asset Based Lending 5% 11% Lender Finance 5.5% 11.5% Aviation (1) 11% 14% Occasional opportunities within certain asset classes will be suitable for both AINV and MidCap (3) Total Investments (in billions) $2.5 (2) $6.9 (2) Primary Mandate Senior and subordinated debt yielding ~ 8% to 12% Senior debt yielding ~ 5% to 8% (1) Investment in aviation made via Merx Aviation Finance, LLC, a wholly owned portfolio company. (2) As of December 31, (3) Co-investments that are subject to the exemptive order are to be pari-passu 21

23 Portfolio Review 22

24 Portfolio Snapshot Portfolio Key Statistics (1) Investment Portfolio (2) $2.53 bn # of Portfolio Companies 85 Weighted Average Yield 10.9% % Floating Rate (3) 57% Average Company Exposure (2) $29.7 mn Median Company Exposure (2) $16.9 mn Common Equity and Warrants 11% Structured Products and Other 9% Unsecured 10% Portfolio by Security Type (1) (2) 2nd Lien 27% Preferred Equity 1% 1st Lien 42% Median EBITDA (at close) Net Leverage Through AINV Position At Close Current Interest Coverage At Close Current $68 mn 5.62 x 5.69 x 2.42 x 2.45 x Portfolio by Strategy (1) (2) Life Sciences & Asset Based 1% (4) Existing Specialty Verticals 30% Other 5% Aircraft Leasing 19% Corporate Lending 46% (1) As of December 31, (2) On a fair value basis. (3) Based on income-bearing portfolio.(4) Existing specialty verticals includes oil & gas, renewables, shipping and structured credit. 23

25 Portfolio Snapshot Portfolio by Industry (1) (2) Fixed Rate vs. Floating Rate (1) (2) (4) Sponsored vs. Non-Sponsored (1) (2) Manufacturing, Capital Equipment 3% Corporate and other core assets are predominantly floating rate Insurance 3% Healthcare & Pharmaceuticals 4% Other 14% (3) Aviation and Consumer Transport 19% Fixed Rate Assets 17% Sponsored 44% High Tech Industries 6% Transportation Cargo, Distribution 7% Business Services 19% Floating Rate Assets 83% Non-Sponsored 56% Energy Electricity 7% Energy Oil & Gas 9% Diversified Investment Vehicles, Banking, Finance, Real Estate 9% Corporate lending represents ~46% of portfolio ~90% of corporate lending is sponsored (1) On a fair value basis. (2) As of December 31, (3) Other consists of: Telecommunications; Chemicals, Plastics & Rubber; Hotel, Gaming, Leisure, Restaurants; Consumer Services; Utilities Electric; Automotive; Food & Grocery; Aerospace & Defense; Containers, Packaging & Glass; Advertising, Printing & Publishing; Consumer Goods Durable; Environmental Industries; Broadcasting & Subscription ; Education; and Metals & Mining. (4) Based on income-bearing portfolio within the following strategies: corporate, asset based and life sciences which in total represent approximately $1.2 billion of assets. Excludes the following strategies: aviation, commodities, renewables, shipping, structured credit and legacy. See p. 46 for fixed vs. floating mix for entire income-bearing portfolio. 24

26 Portfolio Concentration Top Ten Portfolio Companies (1) Top Ten Industries (1) Rank Portfolio Company Fair Value % of Portfolio 1 Merx Aviation Finance, LLC $ 481, % 2 Solarplicity Group Limited (f/k/a AMP Solar UK) 152, % 3 U.S. Security Associates Holdings, Inc. 135, % 4 MSEA Tankers LLC 82, % 5 Spotted Hawk 75, % 6 Canacol Energy Ltd. 73, % 7 Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.) 61, % 8 Skyline Data, News and Analytics LLC (Dodge) 55, % 9 UniTek Global Services Inc. 52, % 10 Maxus Capital Carbon SPE I, LLC (Skyonic) 51, % Top Ten Total $ 1,221, % Other 1,304, % Total Portfolio $ 2,526, % Rank Industry Fair Value % of Portfolio 1 Aviation and Consumer Transport $ 481, % 2 Business Services 469, % 3 Energy Oil & Gas 237, % 4 Diversified Investment Vehicles, Banking, Finance, Real Estate 220, % 5 Energy Electricity 188, % 6 Transportation Cargo, Distribution 175, % 7 High Tech Industries 159, % 8 Healthcare & Pharmaceuticals 90, % 9 Manufacturing, Capital Equipment 70, % 10 Insurance 66, % Top Ten Total $ 2,161, % Other 365, % Total Portfolio $ 2,526, % Average Position Size, at fair value $32,305 $32,773 $32,317 $31,080 $29,722 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Top ten companies and top ten industries based on market value as of December 31,

27 Portfolio Company Credit Quality Median LTM EBITDA Net Leverage through AINV Position (weighted average by cost) Total Cash Interest Coverage (weighted average by cost) $80 $70 $66 $ x 5.48x 5.62 x 5.69x 2.52x 2.70x 2.42x 2.45x Dec-15 Dec-16 Dec-15 Dec-16 Dec-15 Dec-16 At Close Current At Close Current At Close Current 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. 26

28 AINV / MidCap Product Overlap 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 almost no historical losses across market 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 Significant opportunities exist to fill the capital void left by large banks exiting and descaling in this asset class 27

29 AINV Investment Process Deal Sourcing Underwriting & Due Diligence Structuring, Pricing & Approval Portfolio Monitoring Multi-Channel Sourcing Engine Focus on Risk-Adjusted Returns Protect Downside Risk Comprehensive and Regular Review and Dialogue Experienced investment team Ability to execute direct / non-sponsor transactions with a focus on specialty verticals Financial sponsors Long-term relationships Transactions with > 100 sponsors 44% of portfolio is sponsor-backed (1) (2) Limited origination restrictions Apollo affiliation Coverage and experience Market insights Proprietary research Apollo s credit segment AUM ~$137 billion (3) Risk-adjusted investment philosophy Preservation of capital Strong asset coverage Extensive due diligence Knowledge sharing across Apollo platform Access to management teams of private equity portfolio companies Draft term sheet Investment Committee review Iterative process Negotiate transaction Structuring and terms Typical forms include: strong covenants, collateral package, prepayment protection, Board seat or observation rights Seek Investment Committee approval Weekly meetings to discuss and vote on new deals Comprised of senior personnel from across Apollo Extensive quarterly portfolio reviews Internal risk rating system Covenant compliance Board observation rights Independent third party valuation for non-quoted investments Offer to provide managerial assistance Increased monitoring of problem investments Dedicated professionals for managing problem investments Watch list committee Weekly review of watch list (1) On a fair value basis. (2) As of December 31, (3) See definition of AUM at beginning of presentation. 28

30 Aircraft Leasing AINV established a wholly owned portfolio company Merx Aviation Finance, LLC ( Merx ) to participate in aircraft leasing Favorable Industry Fundamentals Healthy global passenger traffic expected to continue Since the 1970 s, air traffic has roughly doubled every 15 years (1) During the past 20 years global passenger traffic has expanded at an average annual growth rate of 5.1%, while global GDP grew by an average annual rate of 3.7% over the same period. (2) Global fleet growth Strong demand for leased aircraft driven by movement of aircraft off of airlines balance sheets to lessor balance sheets Rational OEM supply Long technology cycles Investment Thesis / Strategy Focus on the most liquid and in-demand aircraft Generally targeting used current generation Boeing and Airbus commercial aircraft Older aircraft transactions expected to be protected by the underlying metal value of the aircraft Deploying an opportunistic, transaction driven strategy while leveraging strong relationships and specialized knowledge creates attractive investment opportunities Continually optimize portfolio through aircraft acquisitions and dispositions Maintain a highly diversified portfolio in terms of aircraft type, lessee, geography Airlines prospering Traditional capital providers to the space (other than new deliveries) have been pulling back Lack of central clearinghouse for aircraft trading causes market to be inefficient High barriers to entry (1) Source: Airbus. (2) Source: IATA 29

31 Merx is Well-Diversified Merx Portfolio (1) Aircraft by Type (1) (2) Aircraft by Region (1) (2) 70 aircraft 11 aircraft types 37 lessees in 18 countries Weighted average age of aircraft ~7.5 years Weighted average lease maturity ~4.5 years B % E-195 3% A % A % LRF 6% A % E-190 2% B ER 2% A % E-170 1% B % Australia 8% Africa 5% LATAM 16% Middle East 3% North America 20% Asia 28% Europe 20% Staggered Lease Maturity (1) Aircraft Value by Lessee (1) (2) Revenue by Lessee (1) (3) 10 # of leases maturing by year Lessees Each < 2% 2% 37 Lessees 9% 23% 7% 6% 37 Lessees 9.6% 8.1% 4.9% % 2% 3% 5% 5% 4% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% (1) As of December 31, (2) Based on base value. (3) Revenue for next four quarters. 30

32 Conclusion 31

33 Reasons to Own AINV In our view, AINV is an attractive investment for the following reasons: Strong balance sheet and diverse funding sources Scale of Apollo platform provides deal sourcing advantage Origination platform is highly differentiated versus all other market participants Recent receipt of exemptive relief to co-invest should enhance competitive positioning Strategy designed to deliver consistent shareholder returns and a stable NAV Apollo affiliation provides significant benefits 32

34 Appendices 33

35 Net Leverage Ratio AINV has managed down its net leverage ratio over the last several quarters while also repurchasing stock over the same period 1.00 x 0.90 x 0.80 x 0.70 x 0.76 x Upper Target ~ 0.70x 0.75 x 0.66 x 0.63 x Previous Upper Target ~ 0.75x 0.66 x 0.60 x Lower Target ~ 0.60x 0.50 x 0.40 x 0.30 x 0.20 x 0.10 x 0.00 x Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Net Leverage Ratio Target Range Previous Upper Target (1) Net leverage ratio is defined as debt outstanding plus payable for investments purchased, less receivable for investments sold, less cash, less foreign currencies at fair value, divided by net assets. 34

36 Oil & Gas Portfolio $ in millions Oil & Gas Represents 9.4% of Portfolio (1) (2) Energy Oil & Gas $ % Security Position of Oil & Gas Portfolio (1) (2) Unsecured 31% Preferred Equity, Common Equity and Warrants 15% Secured 54% $ in millions Oil & Gas Companies (1) Company Cost Fair Value FV / Cost Geography Oil Gas Play 1 Canacol Energy Ltd. $ 73.7 $ % Colombia Conventional 2 Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.) % Alaska Cook Inlet 3 Pelican Energy, LLC % Diversified SPV rights to Chesapeake Energy drilled wells 4 SHD Oil & Gas, LLC % North Dakota Bakken 5 Venoco, Inc % California California Total $ $ % (1) As of Deceember31, (2) On a fair value basis. 35

37 Regulatory Reform is Changing the Lending Landscape KEY DATES DESCRIPTION IMPACT Risk-based Capital Ratios Basel III Phase-in Higher risk weightings on non-investment grade securities Capital surcharge for 8 U.S. global systemically important banks ( G-SIBs ) and their U.S. insured depository institutions ( IDI ) Minimum common equity, Tier 1 and Total Capital ratios are 7.0%, 8.5% and 10.5%, respectively, inclusive of 2.5% capital conservation buffer Common equity capital surcharge between 1% to 2.5% for G-SIBs Supplementary Leverage Ratio Implementation January 2018 Supplementary leverage ratio captures many off balance sheet exposures including unfunded commitments At least 5% for G-SIBs and 6% for IDI subsidiaries vs. 3% for others Leveraged Lending Guidance Guidance Effective May 2013 More Specific Guidance December 2013 and November 2014 Reviews Began May 2014 Increases universe of what is considered a leveraged loan Establishes minimum lending standards Changes in criticized loan rules may make underwriting higher leverage transactions (i.e., LBOs) more difficult for the largest banks No exceptions policy on new issuance Expected to comply whether originating loans to hold or distribute, even if entire deal is syndicated Leveraged lending presumed at: Senior Debt-to-EBITDA > 3:1 Total Debt-to-EBITDA > 4:1 Loans levered > 6x raises concerns 50% repayment standard over 5 to 7 year period Regulators monitoring covenant-lite and PIK-toggle structures Heighted Scrutiny September 2014 Shifted to a deal-by-deal review and collecting data monthly Risk Retention Rules Final Rules Approved October 2014 Implementation 2016 Requires CLO managers to retain an economic interest without selling or hedging for the life of the securitization CLO managers must retain a 5% interest in all CLOs they sponsor The Volcker Rule Finalized December 2013 Implementation July 2015 Prohibits banks from sponsoring a covered fund (e.g., hedge fund, private equity fund), subject to limited exceptions Limits banks fund ownership interest, subject to limited exceptions Banks may not invest more than 3% of Tier 1 capital in covered funds they are permitted to sponsor Banks cannot represent more than 3% of the total capital of a given sponsored covered fund We believe the evolving bank regulatory environment will limit banks willingness and / or ability to make leveraged loans, which is expected to result in new opportunities for non-bank capital providers, such as BDCs 36

38 Financial Highlights ($ in thousands, except per share data) 3Q'17 2Q'17 1Q'17 4Q'16 3Q'16 Operating Results (1) Dec-16 Sep-16 Jun-16 Mar-16 Dec-15 Net investment income $ 36,352 $ 39,537 $ 36,064 $ 44,618 $ 48,091 Net realized and change in unrealized gains (losses) (25,062) 1,577 (78,149) (68,015) (73,863) Net increase (decrease) in net assets resulting from operations $ 11,290 $ 41,114 $ (42,086) $ (23,397) $ (25,772) Net investment income per share $ 0.17 $ 0.18 $ 0.16 $ 0.20 $ 0.21 Net realized and change in unrealized gain (loss) per share (0.12) 0.00 (0.35) (0.30) (0.32) Earnings (Loss) per share - basic $ 0.05 $ 0.18 $ (0.19) $ (0.10) $ (0.11) Earnings (Loss) per share - diluted (2) N/A N/A N/A $ (0.10) $ (0.11) Distribution recorded per common share $ 0.15 $ 0.15 $ 0.20 $ 0.20 $ 0.20 Select Balance Sheet and Other Data Investment portfolio (at fair value) $ 2,526,333 $ 2,548,568 $ 2,617,714 $ 2,916,829 $ 3,068,993 Debt outstanding (3) $ 1,033,958 $ 1,014,794 $ 1,098,977 $ 1,312,960 $ 1,384,719 Net assets $ 1,506,699 $ 1,541,938 $ 1,552,409 $ 1,645,581 $ 1,724,209 Net asset value per share $ 6.86 $ 6.95 $ 6.90 $ 7.28 $ 7.56 Debt-to-equity ratio (3) 0.69 x 0.66 x 0.71 x 0.80 x 0.80 x Net leverage ratio (3) (4) 0.66 x 0.63 x 0.66 x 0.75 x 0.76 x Weighted average shares outstanding 220,168, ,835, ,940, ,474, ,537,374 Shares outstanding 219,694, ,994, ,067, ,156, ,168,622 Number of portfolio companies, at period end Weighted Average Yields, at period end (5) Secured debt 10.9% 11.0% 11.0% 11.0% 11.4% Unsecured debt 10.7% 10.8% 10.8% 10.7% 11.2% Total debt portfolio 10.9% 11.0% 11.0% 11.0% 11.4% (1) Numbers may not sum due to rounding. (2) In applying the if-converted method, conversion shall not be assumed for purposes of computing diluted EPS if the effect would be anti-dilutive. For the three months ended December 31, 2016, September 30, 2016, and June 30, 2016, the Company did not have any convertible notes. As such, diluted EPS was not applicable. (3) Numbers for March 31, 2016 were updated due to the retrospective application of the new accounting pronouncements (ASU and ASU ) adopted as of April 1, (4) The Company s net leverage ratio is defined as debt outstanding plus payable for investments purchased, less receivable for investments sold, less cash, less foreign currencies, divided by net assets. (5) On a cost basis. Exclusive of securities on non-accrual status. 37

39 Summary Investment Activity ($ in thousands) 3Q'17 2Q'17 1Q'17 4Q'16 3Q'16 Portfolio Activity (1) Dec-16 Sep-16 Jun-16 Mar-16 Dec-15 Investments made $ 201,309 $ 127,629 $ 122,718 $ 178,507 $ 197,085 Investments sold (17,114) (17,924) (146,040) (189,911) (135,378) Net investment activity before repayments $ 184,195 $ 109,705 $ (23,322) $ (11,404) $ 61,707 Investments repaid (178,208) (197,130) (193,376) (75,380) (126,216) Net investment activity $ 5,987 $ (87,425) $ (216,698) $ (86,784) $ (64,509) Number of portfolio companies, at beginning of period Number of new portfolio companies Number of exited portfolio companies (10) (5) (13) (10) (7) Number of portfolio companies, at period end Number of investments in existing portfolio companies Yield on Activity (2) Yield on investments made 10.1% 10.3% 10.8% 11.2% 11.0% Yield on sales and repayments 10.5% 10.7% 10.5% 10.2% 11.2% (1) Numbers may not sum due to rounding. (2) Yield on activity is for debt investments and excludes select short-term trades and securities on non-accrual status. 38

40 Quarterly Investment Activity Investment Activity ($ in millions) Portfolio Yield (1) (2) $197 $179 $123 $128 $ % 11.0% 11.0% 11.0% 10.9% ($135) ($126) ($190) ($146) ($75) ($193) ($18) ($17) ($197) ($178) Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 New Investments Sales Repayments Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Net Investment Activity ($ in millions) Yield on Investment Activity (2) (3) 13.1% $6 11.7% 11.9% ($65) ($87) ($87) 11.2% 11.0% 11.2% 10.5% 9.6% 10.8% 9.9% 10.4% 10.7% 10.3% 10.1% ($217) Dec-15 Mar-16 Jun-16 Sep-16 Dec % Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 New Investments Sales Repayments (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 securities on non-accrual status.. 39

41 Detailed Quarterly Investment Activity ($ in thousands) 3Q'17 2Q'17 1Q'17 4Q'16 3Q'16 Dec-16 Sep-16 Jun-16 Mar-16 Dec-15 Purchases (1) First lien (2) $ 34,174 $ 55,021 $ 58,225 $ 104,393 $ 66,279 Second lien 153,657 51,154 46,476 31,510 44,827 Total secured debt 187, , , , ,105 Unsecured debt 12,713 5,154-18,798 23,003 Structured products and other ,301 11,270 14,035 12,444 Preferred equity ,529 Common equity/interests and warrants 560-6,748 9,350 20,004 Total Purchases $ 201,309 $ 127,629 $ 122,718 $ 178,507 $ 197,085 Yield at Cost on Debt Purchases (3) First lien 10.0% 10.5% 11.2% 11.7% 10.8% Second lien 10.3% 10.0% 10.3% 9.7% 9.8% Total secured debt 10.2% 10.3% 10.8% 11.2% 10.4% Unsecured debt 8.5% 10.2% N/A N/A 10.2% Preferred equity N/A N/A N/A N/A 14.4% Yield at Cost on Debt Purchases 10.1% 10.3% 10.8% 11.2% 11.0% Sales and Repayments (1) First lien (2) $ 22,904 $ 26,172 $ 89,874 $ 115,085 $ 70,708 Second lien 35, , ,586 80,701 57,943 Total secured debt 58, , , , ,651 Unsecured debt - 4,461 13,473 40,722 25,997 Structured products and other 96,647 48,239 31,561 10,751 87,389 Preferred equity 36, , Common equity/interests and warrants 3,016 7,298 62,907 17,874 18,831 Total Sales and Repayments $ 195,322 $ 215,054 $ 339,416 $ 265,291 $ 261,594 Yield at Cost on Debt Sales and Repayments (3) First lien 10.5% 10.3% 12.1% 10.9% 12.2% Second lien 9.6% 10.8% 9.8% 9.4% 9.8% Total secured debt 9.9% 10.7% 10.6% 10.2% 11.1% Unsecured debt N/A 12.0% 9.4% 9.7% 10.9% Preferred equity 11.5% 4.0% 4.0% 4.0% 8.0% Yield at Cost on Debt Sales and Repayments 10.5% 10.7% 10.5% 10.2% 11.2% Yield at Cost on Sales 8.8% 13.1% 11.9% 10.5% 11.2% Yield at Cost on Debt Repayments 10.7% 10.4% 9.9% 9.6% 11.7% (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 securities on non-accrual status. 40

42 Net Asset Value ($ in thousands, except per share data) 3Q'17 2Q'17 1Q'17 4Q'16 3Q'16 Dec-16 Sep-16 Jun-16 Mar-16 Dec-15 Per Share NAV, beginning of period $ 6.95 $ 6.90 $ 7.28 $ 7.56 $ 7.83 Net investment income Unrealized loss on derivativies (0.02) Net realized and change in unrealized gain (loss) * (0.10) 0.00 (0.35) (0.30) (0.32) Net increase (decrease) in net assets resulting from operations (0.19) (0.10) (0.11) Repurchase of common stock Distribution recorded (0.15) (0.15) (0.20) (0.20) (0.20) NAV, end of period $ 6.86 $ 6.95 $ 6.90 $ 7.28 $ 7.56 Total NAV, beginning of period $ 1,541,938 $ 1,552,409 $ 1,645,581 $ 1,724,209 $ 1,826,860 Net investment income 36,352 39,537 36,064 44,618 48,091 Unrealized loss on derivativies (4,046) Net realized and change in unrealized gains (losses) * (21,016) 1,577 (78,150) (68,015) (73,863) Net increase (decrease) in net assets resulting from operations 11,290 41,114 (42,086) (23,397) (25,772) Repurchase of common stock (13,575) (18,270) (6,073) (10,000) (31,244) Distributions recorded (32,954) (33,315) (45,013) (45,231) (45,634) NAV, end of period $ 1,506,699 $ 1,541,938 $ 1,552,409 $ 1,645,581 $ 1,724,209 * Excludes unrealized loss on derivatives. Net Asset Value Per Share $7.56 $7.28 $6.90 $6.95 $6.86 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Numbers may not sum due to rounding. 41

43 Portfolio as of December 31, 2016 By Asset Class (1) Fixed Rate vs. Floating Rate (1) (2) Preferrred equity, common equity/interests and w arrants 12% Structured products and other 9% Unsecured debt 10% Secured debt 69% Floating Rate Assets 57% Fixed Rate Assets 43% By Industry (1) (3) Sponsored vs. Non-sponsored (1) Manufacturing, Capital Equipment 2.8% Healthcare & Pharmaceuticals 3.6% Transportation Cargo, Distribution 7.0% Energy Electricity 7.4% Insurance 2.6% High Tech Industries 6.3% Diversified Investment Vehicles, Banking, Finance, Real Estate 8.7% Other 14.5% Aviation and Consumer Transport 19.1% Business Services 18.6% Energy Oil & Gas 9.4% Nonsponsored 56% Sponsored 44% (1)On a fair value basis. (2) Based on income-bearing portfolio. (3) Other consists of: Telecommunications; Chemicals, Plastics & Rubber; Hotel, Gaming, Leisure, Restaurants; Consumer Services; Utilities Electric; Automotive; Food & Grocery; Aerospace & Defense; Containers, Packaging & Glass; Advertising, Printing & Publishing; Consumer Goods Durable; Environmental Industries; Broadcasting & Subscription; Education; and Metals & Mining. 42

44 Portfolio Composition ($ in thousands) 3Q'17 2Q'17 1Q'17 4Q'16 3Q'16 Portfolio Composition, measured at fair value ($) Dec-16 Sep-16 Jun-16 Mar-16 Dec-15 First lien $ 1,052,890 $ 1,060,606 $ 1,055,120 $ 1,106,150 $ 1,134,542 Second lien 683, , , , ,318 Total secured debt $ 1,736,748 $ 1,620,388 $ 1,702,323 $ 1,905,903 $ 2,044,860 Unsecured debt 249, , , , ,889 Structured products and other 217, , , , ,752 Preferred equity 30,785 67,602 67,538 68,562 83,153 Common equity/interests and warrants 291, , , , ,339 Total investment portfolio $ 2,526,333 $ 2,548,568 $ 2,617,714 $ 2,916,829 $ 3,068,993 Portfolio Composition, measured at fair value (%) First lien 42% 42% 40% 38% 37% Second lien 27% 22% 25% 27% 30% Total secured debt 69% 64% 65% 65% 67% Unsecured debt 10% 9% 9% 9% 9% Structured products and other 9% 12% 12% 11% 11% Preferred equity 1% 3% 3% 2% 3% Common equity/interests and warrants 11% 12% 11% 13% 10% Income-bearing investment portfolio composition, measured at fair value Fixed rate % 43% 48% 48% 47% 48% Floating rate % 57% 52% 52% 53% 52% Sponsored vs. Non-sponsored, measured at fair value Sponsored 44% 39% 41% 44% 46% Non-sponsored 56% 61% 59% 56% 54% 43

45 Credit Quality As of December 31, 2016, 8.2% of total investments at amortized cost, or 2.6% of total investments at fair value, were on non-accrual status. ($ in thousands) 3Q'17 2Q'17 1Q'17 4Q'16 3Q'16 Dec-16 Sep-16 Jun-16 Mar-16 Dec-15 Investments on Non-Accrual Status Non-accrual investments at amortized cost $ 236,453 $ 312,955 $ 339,970 $ 259,166 $ 194,358 Non-accrual investments / total portfolio, at amortized cost 8.2% 11.1% 11.8% 8.4% 6.0% Non-accrual investments at fair value $ 65,587 $ 99,521 $ 118,292 $ 121,508 $ 76,664 Non-accrual investments / total portfolio, at fair value 2.6% 3.9% 4.5% 4.2% 2.5% Portfolio Company Credit Metrics (1) Net Leverage (Close) 5.6 x 5.6 x 5.6 x 5.5 x 5.5 x Net Leverage (Current) 5.7 x 5.5 x 5.4 x 5.4 x 5.5 x Interest Coverage (Close) 2.4 x 2.5 x 2.5 x 2.5 x 2.5 x Interest Coverage (Current) 2.5 x 2.6 x 2.8 x 2.7 x 2.7 x ($ in thousands) Industry Cost Fair Value Investments on Non-Accrual Status as of December 31, 2016 Garden Fresh Hotel, Gaming, Leisure, Restaurants $ 53,649 $ - Gryphon Colleges Corporation / (Delta Educational Systems) Education 34,549 - Magnetation, LLC Metals & Mining 12,427 - Pelican Energy Oil & Gas 26,665 15,155 Spotted Hawk Energy Oil & Gas 44,380 28,937 SquareTwo (CA Holdings, Collect America, Ltd.) (2) Diversified Investment Vehicles, Banking, 64,783 21,495 Finance, Real Estate Total $ 236,453 $ 65,587 (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. (2) The investments in SquareTwo Financial Corporation are included in AIC SPV Holdings I, LLC. 44

46 Diversified Funding Sources as of December 31, 2016 Debt Facilities Debt Issued / Amended Final Maturity Date Interest Rate Principal Amount Outstanding (in thousands) Senior Secured Facility ($1.14 billion) 12/22/ /22/2021 L bps $ 386,778 Senior Secured Notes (Series B) 9/29/2011 9/29/ % 16, Notes 10/9/ /15/ % 150, Notes 6/17/2013 7/15/ % 150, Notes 3/3/2015 3/3/ % $ 350,000 Weighted Average Annualized Interest Cost (1) & Total Debt Obligations 5.213% $ 1,052,778 Deferred Financing Cost and Debt Discount (18,820) Total Debt Obligations,Net of Deferred Financing Cost and Debt Discount $ 1,033,958 (1) 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 December 31, Based on average debt obligations outstanding. 45

47 Interest Rate Exposure as of December 31, 2016 Apollo Investment Corporation has taken several steps to prepare for higher interest rates including: increasing the floating rate portion of the portfolio and issuing fixed rate debt. Investment Portfolio (1) (2) Funding Sources (3) Floating Rate Assets 57% Fixed Rate Assets 43% Common Equity 60% Fixed Rate Debt 25% Floating Rate Debt 15% Floating Rate Debt Floor Net Investment Income Interest Rate Sensitivity (4) ($ in millions) Par or Cost % of Floating Rate Portfolio Interest Rate Floors No Floor $ % < 1.00% $ 28 2% 1.00% to 1.24% $ % 1.25% to 1.49% $ 63 5% 1.50% to 1.74% $ 3 0% > =1.75% $ - 0% Total $ 1, % ($ in millions, except per share data) Annual Net Investment Income Annual Net Investment Income Per Share Basis Point Change Up 400 basis points $ 27,172 $ Up 300 basis points $ 20,295 $ Up 200 basis points $ 13,418 $ Up 100 basis points $ 6,541 $ (1) On a fair value basis. (2) Income-bearing investment portfolio. (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 variable rate instruments) to our loan portfolio and outstanding debt as of December 31, 2016, assuming no changes in our investment and borrowing structure. 46