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Brian Beades

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GAAP net investment income of $0.20 per share providing distribution coverage of 111%

Net leverage and total liquidity relatively unchanged quarter-over-quarter, at 0.56x and $253 million, respectively

No investments on non-accrual status as of March 31, 2017, a decline from 5.4% of our debt investments at amortized cost and 0.7% at fair market value at December 31, 2016

Increase of $0.01 in NAV per share on a quarter-over-quarter basis

Monetization of nearly $30 million of non-interest bearing legacy equity investments

($’s in millions, except per share data)

Net Investment Income/(loss)

Net realized and unrealized gains/(losses)

Basic earnings/(loss)

Distributions declared

Net Investment Income/(loss), as adjusted¹

Basic earnings/(loss), as adjusted¹

($’s in millions, except per share data)

Total assets

Investment portfolio, at fair market value

Debt outstanding

Total net assets

Net asset value per share

Net leverage ratio²

Advanced Lighting Technologies, Inc. (“Advanced Lighting”) and Shoreline Energy LLC (“Shoreline”) were both removed from non-accrual status during the quarter, leaving no investments on non-accrual status as of March 31, 2017. With respect to Advanced Lighting, an amendment was completed which resulted in a lower, more achievable cash pay rate for the borrower. Regarding Shoreline, all assets of value have been sold in a bankruptcy court approved sale process leaving remaining assets in a liquidating trust. As we do not anticipate any recovery from the liquidating trust, we wrote-off the investment during the quarter with no incremental net realized or unrealized loss as this investment was previously marked at zero.

As previously disclosed, a comprehensive restructuring of U.S. Well Services, LLC (“USWS”) was completed during the quarter which provided the borrower with liquidity and added financial flexibility through a PIK feature on the reinstated debt. Post restructuring, we hold (i) $7.2 million of revolving loan commitment at L + 600 ($4.5 million drawn as of March 31, 2017), (ii) $29.9 million of first lien term loan at L + 900 cash (or L + 1100 PIK at borrower’s option), and (iii) a portion of the restructured equity. Additionally, we have the right to appoint one member to USWS’s board of directors.

Bankruptcy Management Solutions, Inc. (“BMS”) was sold during the quarter at an enterprise value that resulted in a $0.5 million incremental gain above the prior quarter mark on the various securities previously held. We provided a $3.0 million funded revolver and a $52.0 million first lien term loan, initially priced at L + 550, to partially finance the transaction for the new private equity owner.

Senior Loan Partners made investments into four new portfolio companies during the quarter, bringing committed and outstanding amounts to $92.7 million and $89.2 million, respectively. The four new investments at par are (i) a $10.0 million first lien term loan B to Q Holding Company, a leading manufacturer of low-cost, precision molded silicone rubber components used in a diverse array of end markets, (ii) a $10.0 million first lien term loan to ENC Holding Corporation, a leading asset-light logistics platform which provides business process outsourcing services, (iii) a $3.0 million and $5.0 million first lien term loan A-1 and A-2, respectively, to Alaska Communications Systems Holdings, Inc., a provider of internet connectivity, voice and managed IT services and (iv) a $6.4 million first lien term loan and a $0.3 million delayed draw term loan to MHE Intermediate Holdings, LLC (“MHE”), a leading provider of material handling equipment and facility services. Additionally, Senior Loan Partners had remaining unfunded commitments of approximately $1.9 million under the MHE delayed draw term loan.

Non-GAAP basis financial measure. See Supplemental Information on page 7.

Calculated less available cash and receivable for investments sold, plus payable for investments purchased and unamortized debt issuance costs.

Since the inception of our share repurchase program through March 31, 2017, we have purchased 4.6 million shares at an average price of $7.98 per share, including brokerage commissions, for a total of $36.3 million. There were no share repurchases during the first quarter of 2017. The cumulative repurchases since BlackRock entered into the investment management agreement with the Company totaled approximately 2.8 million shares for $24.0 million, representing 66% of total share repurchase activity, on a dollar basis, since inception. As of March 31, 2017, the Company had approximately 2.0 million additional shares authorized for repurchase.

On April 17, 2017, we redeemed $17.0 million aggregate principal amount of 6.60% senior secured notes due 2018 (“6.60% Notes”), using proceeds from our senior secured revolving credit facility. The notes were prepaid at 100% of the principal amount, plus accrued and unpaid interest through the prepayment date, as well as a $0.7 million make-whole premium. Pursuant to this redemption, we have no more 6.60% Notes outstanding as of such date.

Commitments

Investment exits

Number of portfolio company investments at the end of period

Weighted average yield of debt and income producing equity securities, at fair market value

% of Portfolio invested in Secured debt, at fair market value

% of Portfolio invested in Unsecured debt, at fair market value

% of Portfolio invested in Equity, at fair market value

Average investment by portfolio company, at amortized cost (excluding investments below $5.0 million)

balance sheet amounts above are as of period end

We invested $122.3 million during the quarter, while sales, repayments and other exits of investments totaled $114.4 million, resulting in $8.0 million of net capital deployed. Excluding the impact of non-cash transactions relating to the USWS restructuring and the Advanced Lighting amendment, commitments and exits were $71.6 million and $63.6 million, respectively. Approximately 77% of our deployments during the quarter were represented by our $55.0 million of debt provided to partially finance the BMS acquisition. Approximately 93% of proceeds from exits during the quarter were represented by three transactions: (i) $32.2 million of total proceeds on our debt and equity investments in BMS, (ii) a repayment at par of our $18.9 million investment in Accriva Diagnostics, Inc. and (iii) a repayment of our $7.8 million preferred equity interest in USI Senior Holdings, Inc.

As of March 31, 2017, our non-accrual rate declined to zero at both fair market value and amortized cost as compared with non-accruals at 0.7% of our total debt investments at fair market value, and 5.4% at amortized cost, as of the prior quarter-end. Our average internal investment rating at fair market value at March 31, 2017 was 1.31 as compared to 1.35 as of the prior quarter-end.

During the quarter, gross unrealized depreciation of $9.2 million was partially offset by $7.8 million of gross unrealized appreciation due to portfolio valuations. Further, there was $52.8 million of unrealized appreciation during the quarter due primarily to the reversal of previously recognized unrealized depreciation on Shoreline, USWS and Advanced Lighting.

Fee income earned on capital structuring, prepayments and administration during the current quarter totaled $0.6 million, as compared to $2.6 million earned during the preceding quarter, and $0.8 million earned during the prior year quarter. Excluding fee income, investment income decreased approximately 4% compared to the prior quarter, and 16% as compared to this quarter one year ago.

GAAP net investment income (“NII”) was $14.6 million, or $0.20 per share, for the three months ended March 31, 2017. Relative to distributions declared of $0.18 per share, our NII distribution coverage was 111% for the quarter.

As previously disclosed, our base management fee rate went down from an annual rate of 2.00% of total assets to 1.75% effective March 7, 2017. No incentive management fees based on income were earned and payable for the pro-rated period until March 6, 2017, as the distributable income amount was reduced below the hurdle by the net realized and unrealized losses in the portfolio for the trailing four quarter period. After March 6, 2017, $0.8 million of incentive management fees based on income were earned for the partial quarter, however, as previously disclosed, any such fees earned until December 31, 2018 have been waived. During the quarter, there was no accrual for incentive management fees based on gains due largely to the net unrealized depreciation in the portfolio as of March 31, 2017. A hypothetical liquidation is performed each quarter end resulting in an additional accrual if the amount is positive or a reversal to the existing accrual if the amount is negative. However, the resulting fee accrual is not due and payable until June 30, if at all. There is currently no balance accrued for incentive management fees based on gains as of the measurement period ending March 31, 2017.

As compared to full fiscal year 2016, our weighted average cost of debt increased 26 basis points to 4.63% during Q1 2017. This was primarily driven by higher Libor rates.

Tax characteristics of all 2016 distributions were reported to stockholders on Form 1099 after the end of the calendar year. Our 2016 tax distributions of $0.73 per share were comprised of ordinary income. Our return of capital distributions since inception totaled $1.96 per share. At our discretion, we may carry forward taxable income in excess of calendar year distributions and pay a 4% excise tax on this income. We will accrue excise tax on estimated undistributed taxable income as required. There was no undistributed taxable income carried forward from 2016. For more information on our GAAP distributions, please refer to the Section 19 Notice that may be posted within the Distribution History section of our website.

At March 31, 2017, we had total liquidity of $253.5 million, consisting of $38.5 million in cash and cash equivalents and $215.0 million of availability under our credit facility, subject to leverage and borrowing base restrictions.

Net leverage, adjusted for available cash, receivables for investments sold, payables for investments purchased and unamortized debt issuance costs, stood at 0.56x at year-end, and our 260% asset coverage ratio provided the Company with available debt capacity under its asset coverage requirements of $225.2 million. Further, as of quarter-end, 87% of our portfolio was invested in qualifying assets, exceeding the 70% regulatory requirement of a business development company.

Assets

Investments at fair value:

Non-controlled, non-affiliated investments (cost of $516,840,220 and $586,176,755)

Non-controlled, affiliated investments (cost of $163,687,457 and $112,640,458)

Controlled investments (cost of $297,471,394 and $322,768,014)

Total investments at fair value (cost of $977,999,071 and $1,021,585,227)

Cash and cash equivalents

Receivable for investments sold

Interest, dividends and fees receivable

Prepaid expenses and other assets

Total Assets

Liabilities

Debt

Interest payable

Distributions payable

Base management fees payable

Accrued administrative services

Other accrued expenses and payables

Total Liabilities

Net Assets

Common stock, par value $.001 per share, 200,000,000 common shares authorized, 77,359,512 and 77,228,207 issued and 72,807,547 and 72,676,242 outstanding

Paid-in capital in excess of par

Undistributed / (Distributions in excess of) net investment income

Accumulated net realized loss

Net unrealized (depreciation)

Treasury stock at cost, 4,551,965 and 4,551,965 shares held

Total Net Assets

Total Liabilities and Net Assets

Net Asset Value Per Share

BlackRock Capital Investment Corporation

Consolidated Statements of Operations (Unaudited)

Investment Income:

Interest income:

Non-controlled, non-affiliated investments

Non-controlled, affiliated investments

Controlled investments

Total interest income

Fee income:

Non-controlled, non-affiliated investments

Non-controlled, affiliated investments

Controlled investments

Total fee income

Dividend income:

Non-controlled, non-affiliated investments

Non-controlled, affiliated investments

Controlled investments

Total dividend income

Total investment income

Expenses:

Base management fees

Interest and credit facility fees

Incentive management fees (See Note 3)

Professional fees

Administrative services

Director fees

Investment advisor expenses

Other

Total expenses, before incentive management fee waiver

Incentive management fee waiver (See Note 3)

Total expenses, net of incentive management fee waiver

Net Investment Income

Realized and Unrealized Gain (Loss):

Net realized gain (loss):

Non-controlled, non-affiliated investments

Non-controlled, affiliated investments

Controlled investments

Net realized gain (loss)

Net change in unrealized appreciation (depreciation) on:

Non-controlled, non-affiliated investments

Non-controlled, affiliated investments

Controlled investments

Foreign currency translation

Net change in unrealized appreciation (depreciation)

Net realized and unrealized gain (loss)

Net Increase (Decrease) in Net Assets Resulting from Operations

Net Investment Income (Loss) Per Share

Basic

Diluted

Earnings (Loss) Per Share

Basic

Diluted

Average Shares Outstanding

Basic

Diluted

Distributions Declared Per Share

GAAP Basis:

Net Investment Income/(Loss)

Net Investment Income/(Loss) per share

Addback: GAAP incentive management fee expense based on Gains

Addback: GAAP incentive management fee expense based on Income

Pre-Incentive Fee¹:

Net Investment Income/(Loss)

Net Investment Income/(Loss) per share

Less: Incremental incentive management fee expense based on Income

As Adjusted²:

Net Investment Income/(Loss)

Net Investment Income/(Loss) per share

Pre-Incentive Fee: Amounts are adjusted to remove all incentive management fees. Such fees are calculated but not necessarily due and payable at this time.

As Adjusted: Amounts are adjusted to remove the incentive management fee expense based on gains, as required by GAAP, and to include only the incremental incentive management fee expense based on Income. The incremental incentive management fee is calculated based on the current quarter’s incremental earnings, and without any reduction for incentive management fees paid during the prior calendar quarters. Amounts reflect the Company’s ongoing operating results and reflect the Company’s financial performance over time.