STELLUS CAPITAL

INVESTMENT CORPORATION

Investor Presentation

Quarter ended March 31, 2023

HOUSTON, TX

WASHINGTON D.C.

CHARLOTTE, NC

Disclaimer

THIS PRESENTATION IS FOR INFORMATIONAL PURPOSES ONLY. THE INFORMATION CONTAINED HEREIN IS NOT INTENDED TO PROVIDE, AND SHOULD NOT BE RELIED UPON FOR, ACCOUNTING, LEGAL OR TAX ADVICE OR INVESTMENT RECOMMENDATIONS. THIS PRESENTATION IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY STELLUS CAPITAL INVESTMENT CORPORATION ("SCM") SECURITIES. AN OFFERING IS ONLY MADE BY AN APPLICABLE PROSPECTUS. THIS PRESENTATION MUST BE READ IN CONJUNCTION WITH A PROSPECTUS IN ORDER TO FULLY UNDERSTAND ALL OF THE IMPLICATIONS AND RISKS OF THE OFFERING OF SECURITIES TO WHICH THE PROSPECTUS RELATES INCLUDING THOSE LISTED IN THE "RISK FACTORS" SECTION OF OUR FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION ("SEC"), INCLUDING THE IMPACT OF THE COVID-19 PANDEMIC ON SCM, ITS PORTFOLIO COMPANIES, AND THE GLOBAL AND UNITED STATES ECONOMY. A COPY OF SUCH A PROSPECTUS MUST BE MADE AVAILABLE TO YOU IN CONNECTION WITH ANY OFFERING. BEFORE MAKING AN INVESTMENT DECISION WITH RESPECT TO SCM, INVESTORS ARE ADVISED TO CAREFULLY REVIEW AN APPLICABLE PROSPECTUS TO REVIEW THE RISK FACTORS DESCRIBED THEREIN, AND TO CONSULT WITH THEIR TAX, FINANCIAL, INVESTMENT AND LEGAL ADVISORS. THESE MATERIALS DO NOT PURPORT TO BE COMPLETE, AND ARE QUALIFIED IN THEIR ENTIRETY BY REFERENCE TO THE MORE DETAILED DISCLOSURES CONTAINED IN AN APPLICABLE PROSPECTUS AND SCM'S RELATED DOCUMENTATION INCLUDING SEC FILINGS.

STATEMENTS INCLUDED HEREIN MAY CONTAIN "FORWARD-LOOKING STATEMENTS" WHICH RELATE TO FUTURE PERFORMANCE OR FINANCIAL CONDITION. STATEMENTS OTHER THAN STATEMENTS OF HISTORICAL FACTS INCLUDED IN THIS PRESENTATION MAY CONSTITUTE FORWARD-LOOKING STATEMENTS AND ARE NOT GUARANTEES OF FUTURE PERFORMANCE OR RESULTS AND INVOLVE A NUMBER OF ASSUMPTIONS, RISKS AND UNCERTAINTIES, INCLUDING RISKS AND UNCERTAINTIES ASSOCIATED WITH THE COVID-19 PANDEMIC ON SCM, ITS PORTFOLIO COMPANIES, AND THE GLOBAL AND UNITED STATES ECONOMY, WHICH CHANGE OVER TIME. ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE ANTICIPATED IN ANY FORWARD-LOOKING STATEMENTS AS A RESULT OF A NUMBER OF FACTORS, INCLUDING THOSE DESCRIBED FROM TIME TO TIME IN FILINGS BY SCM WITH THE SECURITIES AND EXCHANGE COMMISSION. SCM UNDERTAKES NO DUTY TO UPDATE ANY FORWARD-LOOKING STATEMENT MADE HEREIN. ALL OF THE INFORMATION IN THIS PRESENTATION, INCLUDING ANY FORWARD-LOOKING STATEMENTS, IS PRESENTED AS OF THE TIME PERIOD ON THE COVER OF THIS PRESENTATION (EXCEPT AS OTHERWISE SPECIFIED), IS SUBJECT TO CHANGE WITHOUT NOTICE, AND MAY HAVE CHANGED (POSSIBLY MATERIALLY) SINCE THE DATE ON THE COVER OF THIS PRESENTATION. SCM UNDERTAKES NO OBLIGATION TO UPDATE THE INFORMATION CONTAINED IN THIS PRESENTATION TO ACCOUNT FOR CHANGES SUBSEQUENT TO ANY DATE AS OF WHICH SUCH INFORMATION IS GIVEN, EXCEPT AS REQUIRED BY APPLICABLE SECURITIES LAWS AND REGULATIONS.

NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, IS MADE AS TO THE ACCURACY OR COMPLETENESS OF THE INFORMATION CONTAINED HEREIN, AND NOTHING SHALL BE RELIED UPON AS A PROMISE OR REPRESENTATION AS TO THE FUTURE PERFORMANCE OF SCM.

  • All daily trading information/multiples in this presentation as of May 12, 2023, unless otherwise noted
  • All other financial information as of March 31, 2023

2

Contents

Stellus Capital Investment Corp. (NYSE: "SCM")

Page 4 Stellus Capital Management's Competitive Advantage

Page 5 Company Overview

Page 11

Portfolio Overview

4520 East West Highway,

WASHINGTON D.C. AREA

Suite 605

Page 16

Performance and Dividends

Bethesda, MD 20814

301.634.3000

CHARLOTTE, NC

Page 20

Valuation

5605 Carnegie Boulevard,

Charlotte, NC 28209

Suite 410

704.409.3335

Page 23 Corporate Information and Financial Supplements

HOUSTON, TX

4400 Post Oak Parkway, Suite 2200

Houston, TX 77027

713.292.5400

3

There are 48 Publicly-Traded BDCs ~ What is our Competitive Advantage?

Strong Historical Portfolio Performance and Consistent Returns to Shareholders

Strong History of Underwriting Credit

  • Fair Value of investment portfolio of $877 million as of March 31, 2023
    • Grown at a 3-year CAGR of 13%
  • Achieving loan growth while practicing conservative lending
  • Diversified portfolio by size of investment, industry and geography

Stable and Growing Dividend

  • Quarterly aggregate dividend of $0.40
  • Monthly dividend of $0.1333
  • Annualized indicated dividend yield of 10.9%
  • LTD dividends of $13.75 paid to an IPO investor through March 31, 2023
  • We have covered dividends from earnings since inception

Favorable Performance Over Time

  • 5-yearROE of 9.1%*
  • ROE since IPO of 9.3%*
  • Stable portfolio performance over 10 years

Performance and Stability / Trading at a Discount to NAV

  • Net asset value per share was $13.87 at March 31, 2023
  • Trading at approximately 1.06x the March 31, 2023 per share NAV

* Source: Company Filings

All daily trading information/multiples in this presentation as of May 12, 2023 unless otherwise noted

4

COMPANY OVERVIEW:

Navigating Lower Middle Market Capital Solutions

5

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Disclaimer

Stellus Capital Investment Corporation published this content on 15 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 June 2023 21:02:06 UTC.