Compounds encapsulated with octenylsuccinic anhydride modified starch and methods of forming the encapsulated compounds are provided. Poorly water-soluble compounds, especially pharmaceuticals, are solubilized within an oil phase, which is then formed into an emulsion with an aqueous phase comprising the OSA modified starch. The resulting emulsion can be dried, such as through spray drying, for form a powder comprising the encapsulated compound.