Nik Singhal

212.810.5427

GAAP net investment income of $0.19 per share providing distribution coverage of 106%

Net asset value (NAV) increased 1.3% or $0.11 per share from $8.22 to $8.33 per share on a quarter-over-quarter basis

Net leverage of 0.47x and liquidity at over $400 million, subject to leverage and borrowing base restrictions

Actively managed liabilities in the second quarter having issued approximately $144 million of 5.00% unsecured convertible notes, redeemed $17 million of 6.60% senior secured notes, repaid $15 million of L+3.25% term loan, and received a maturity extension on our revolving credit facility to 2022

($’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

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 no longer have 6.60% Notes outstanding as of such date.

On June 5, 2017, we entered into a Second Amendment to the Second Amended and Restated Senior Secured Revolving Credit Facility which extended the maturity date from February 19, 2021 to June 5, 2022.

On June 13, 2017, we issued $143.8 million in aggregate principal amount of 5.00% convertible notes due 2022 (the “2022 Convertible Notes”) under an indenture, dated as of June 13, 2017, as supplemented by a supplemental indenture, dated as of June 13, 2017. This amount includes the overallotment option which was fully exercised. The proceeds were used to repay indebtedness under our revolving credit facility and for certain fees and expenses related to the issuance. The 2022 Convertible Notes will mature on June 15, 2022, unless previously converted, repurchased or redeemed in accordance with their terms. Upon conversion of a note, we will pay or deliver, as the case may be, cash, shares of our common stock or a combination of cash and shares of our common stock, at our election.

On June 22, 2017, we repaid our entire $15.0 million aggregate principal amount of L+3.25% senior secured term loan due 2019 (the “Term Loan”), using proceeds from our senior secured revolving credit facility. The Term Loan was prepaid at 100% of the principal amount, plus accrued and unpaid interest through the prepayment date, as well as a $0.2 million make-whole premium.

Our equity investment in Senior Loan Partners is now generating a yield of approximately 11%. Senior Loan Partners made investments into seven new portfolio companies and three existing portfolio companies totaling $81.6 million of new capital deployments during the quarter, bringing committed and outstanding amounts to $177.1 million and $170.3 million, respectively, and a total of 17 borrowers. The seven new investments at par are (i) a $10.0 million first lien term loan to Highline Aftermarket Acquisition, LLC, a distributor of branded and private label automotive aftermarket consumables, (ii) a $12.5 million first lien term loan to Pretium Packaging, LLC, a leading manufacturer and supplier of custom, high performance rigid plastic containers used in a diverse range of end markets, (iii) an $11.5 million first lien term loan, a $2.5 million revolving loan and a $1.0 million delayed draw term loan to Entertainment Partners, LLC (“EP”), a leading provider of highly-specialized payroll processing and production accounting services and software, (iv) a $10.0 million first lien

Non-GAAP basis financial measure. See Supplemental Information on page 8.

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

term loan to Edgewood Partners Insurance Center, a broker of commercial property and casualty, specialty program, and employee benefits insurance, (v) a $13.8 million first lien term loan to AP Exhaust Acquisition, LLC, a leading supplier of exhaust, brake and chassis products in the US automotive aftermarket industry, (vi) a $10.0 million first lien term loan to National Spine and Pain Centers, LLC, a large group of interventional pain management practices in the US and (vii) a $10.0 million first lien term loan to AP Gaming I, LLC, a designer and supplier of Class II and Class III electronic gaming machines, table products and ancillary gaming equipment.

As previously disclosed, last quarter we provided a $3.0 million revolver and a $52.0 million first lien term loan, priced at L+5.50%, to partially finance the sale of Bankruptcy Management Solutions, Inc. (“BMS”) to its new private equity owner. Pursuant to our plan to bring in other partners to the financing, during the current quarter we sold $35 million of the term loan at par. We continue to act as the agent on this facility.

Since the inception of our share repurchase program through June 30, 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 half of 2017. The cumulative repurchases since BlackRock Advisors, LLC 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 June 30, 2017, the Company had approximately 2.0 million additional shares authorized for repurchase. In May 2017, our Board of Directors approved an increase to the remaining amount of shares authorized to be repurchased to a total of 2.5 million shares effective July 1, 2017, and an extension to the plan until the earlier of June 30, 2018 or such time that all of the authorized shares have been repurchased.

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 $22.8 million during the quarter while sales, repayments and other exits of investments totaled $72.0 million, resulting in a $49.2 million net decrease in our portfolio due to investment activity. Approximately 73% of our deployments during the quarter were represented by two portfolio companies: (i) $10.7 million of incremental equity to Senior Loan Partners and (ii) $5.9 million of incremental L+11.00% unsecured debt to Gordon Brothers Finance Company. Nearly 80% of proceeds from exits during the quarter were also represented by two transactions: (i) selling $35.0 million of the BMS first lien term loan to a 3^rd party at par and (ii) a par repayment of our $20.0 million second lien investment in U.S. Anesthesia Partners, Inc. (“USAP”).

As of June 30, 2017, we continued to have no investments on non-accrual, as compared with non-accruals at 0.7% of our total debt investments at fair market value, and 5.4% at amortized cost at year end. Our average internal investment rating at fair market value at June 30, 2017 was 1.34 as compared to 1.31 as of the prior quarter-end.

Net unrealized depreciation decreased $3.1 million during the current quarter, bringing total balance sheet unrealized depreciation to $37.8 million. During the quarter, gross unrealized appreciation of $8.6 million was partially offset by $4.6 million of gross unrealized depreciation, for a net $4.0 million of appreciation due to portfolio valuations. Additionally, there was $0.9 million of unrealized depreciation during the quarter due primarily to the reversal of previously recognized unrealized appreciation on the USAP repayment.

GAAP net investment income (“NII”) was $13.9 million, or $0.19 per share, for the three months ended June 30, 2017. Relative to distributions declared of $0.18 per share, our NII distribution coverage was 106% for the quarter. Excluding $1.1 million of net one-time expenses related to our debt facilities (including make-whole premiums, unamortized debt issuance costs and registration statement costs) net of an insurance reimbursement related to a previously disclosed legal settlement, NII for the second quarter would have been $0.21 per share (rounded up), implying a 114% distribution coverage.

Fee income earned on capital structuring, prepayments and administration during the current quarter totaled $0.1 million, as compared to $0.6 million earned during the preceding quarter, and $4.1 million earned during the prior year quarter. Excluding fee income and the abovementioned insurance reimbursement, total investment income increased approximately 1% compared to the prior quarter, and decreased approximately 16% as compared to this quarter one year ago.

In accounting for the 2022 Convertible Notes at the time of issuance, the Company follows accounting guidance that requires separately accounting for the debt and equity components of such an instrument in a manner that reflects the borrowing rate for a similar non-convertible debt instrument. An equity component of $4.3 million represents the fair value of the conversion feature, and an original issue discount equal to the equity component was recorded as additional paid in capital in the accompanying Consolidated Statement of Assets and Liabilities. The accounting resulted in an increase to net asset value per share of $0.06 at the time of issuance, and the corresponding original issue discount will be amortized through net asset value over the life of the note.

As previously disclosed, our base management fee rate was reduced from an annual rate of 2.00% of total assets to 1.75% effective March 7, 2017. For the three months ended June 30, 2017, $2.8 million of incentive management fees based on income were earned, however, as previously disclosed, any such fees earned until December 31, 2018 have been waived. The cumulative amount of such incentive management fees waived since March 7, 2017 is $3.6 million. During the quarter, there was no accrual for incentive management fees based on gains. 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 June 30, 2017.

As compared to the comparable 2016 period weighted average, our six month 2017 weighted average cost of debt increased 113 bps to 5.36%. This was primarily driven by (i) make-whole interest incurred in connection with the early repayment of our $17.0 million 6.60% Notes and $15.0 million Term Loan, (ii) lower average debt balances outstanding on our revolving credit facility as a percentage of total debt and (iii) higher Libor rates for the current period. Excluding make-whole and other costs incurred in connection with the two early debt repayments, the weighted average cost of debt for the six month period of 2017 was 4.75%.

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 June 30, 2017, we had total liquidity of $409.7 million, consisting of $15.7 million in cash and cash equivalents and $394.0 million of availability under our credit facility, subject to leverage and borrowing base restrictions, resulting in approximately $300 million of availability for portfolio company investments.

Net leverage, adjusted for available cash, receivables for investments sold, payables for investments purchased and unamortized debt issuance costs, stood at 0.47x at quarter-end, and our 300% asset coverage ratio provided the Company with available debt capacity under its asset coverage requirements of $304.3 million. Further, as of quarter-end, 84% 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 $459,980,587 and $586,176,755)

Non-controlled, affiliated investments (cost of $166,118,461 and $112,640,458)

Controlled investments (cost of $303,366,055 and $322,768,014)

Total investments at fair value (cost of $929,465,103 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, 77,484,048 and 77,228,207 issued and 72,932,083 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: prepayment fees

Non-controlled, non-affiliated investments: other

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

Other 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 Per Share

Basic

Diluted

Earnings (Loss) Per Share

Basic

Diluted

Average Shares Outstanding

Basic

Diluted

Distributions Declared Per Share

GAAP Basis:

Net Investment Income

Net Investment Income 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

Net Investment Income per share

Less: Incremental incentive management fee expense based on Income

As Adjusted²:

Net Investment Income

Net Investment Income 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. Until March 6, 2017, 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. After March 6, 2017, incentive management fee expense based on income is calculated for each calendar quarter and may be paid on a quarterly basis if certain thresholds are met. Amounts reflect the Company’s ongoing operating results and reflect the Company’s financial performance over time.