Blackrock Tcp Capital Corp. · NASDAQ:TCPC
Blackrock Tcp Capital — Q1 2024 Earnings Presentation
23 slides from Blackrock Tcp Capital's earnings presentation, May 1, 2024
Slide 1: BlackRock TCP Capital Corp. Investor presentation
BlackRock TCP Capital Corp. Investor presentation March 31, 2024
Slide 2: First Quarter 2024 Financial Highlights and Portfolio Overview
First Quarter 2024 Financial Highlights and Portfolio Overview Adjusted NII1 of $0.45 per share, exceeded the first quarter dividend per share of $0.34 paid on March 29; Annualized NII ROE of 14.7% for the first quarter Continued Declared a second quarter dividend of $0.34 per share, payable on
Slide 3: Completion of BCIC Merger Transaction
Completion of BCIC Merger Transaction On March 18, 2024, TCPC acquired 100% of BCIC assets and liabilities in a stock-for-stock transaction Merger Structure Shares of BCIC common stock were exchanged for shares of TCPC common stock on a NAV-for-NAV basis resulting in issuance of 0.3834 shares of
Slide 4: Middle market lending ― an enduring opportunity
Middle market lending ― an enduring opportunity Market Continued Strong credit size growth performance ~200,000 U.S. Middle Market Middle Market companies on Middle Market loans have businesses representing one-third average posted 12.4% revenue historically experienced of private sector GDP.1 growt
Slide 5: Diversified portfolio: emphasis on less-cyclical businesses
Diversified portfolio: emphasis on less-cyclical businesses Robust downside Portfolio emphasis Each portfolio analysis on less-cyclical company investment performed at companies subject to rigorous underwriting, with an emphasis on companies with strong covenants; quarterly review investments in cyc
Slide 6: Diversified portfolio: industry diversification
Diversified portfolio: emphasis on less-cyclical businesses Industry diversification1 13.3% Diversified Financial Services 13.3% Internet Software and Services 11.3% Software 8.8% Diversified Consumer Services 6.2% Professional Services 4.7% Health Care Technology 3.2% Hotels, Restaurants and Leisur
Slide 7: Diversified portfolio: conservatively positioned
Diversified portfolio: conservatively positioned Diversified income contribution 104 $2.1 billion portfolio fair value # of portfolio companies contributing2 91% of portfolio is senior secured debt 14.1% weighted average effective yield on debt portfolio1 17 7 6 More than 75% of our portfolio compan
Slide 8: Strategically positioned balance sheet post merger
Strategically positioned balance sheet post merger Predominantly first lien, Diverse capital structure7 floating rate asset portfolio: 12/31/20232 3/31/20241 First lien 78% 80% 12/31/2023 3/31/2024 Second lien 11% 11% Junior 0% 1% 9% 7% Equity 11% 8% 16% 22% 41% 42% 12/31/20234 3/31/20243 Floating r
Slide 9: Well-covered dividend
Well-covered dividend Adjusted net investment income of $0.45 Declared Q2 2024 dividend of $0.34 per share per share in Q1 20241. Payable on June 28, 2024, to shareholders of record as of Out-earned quarterly dividend of $0.34 per share June 14, 2024. paid on March 29, 2024. Consistent coverage of t
Slide 10: Competitive advantages of BlackRock
Competitive advantages of BlackRock BlackRock’s investment platform creates substantial scale and scope that provides insight, access and expertise in sourcing, underwriting and managing differentiated investments. Global credit Information edge One stop shop expertise Broad access to Full range of
Slide 11: Well-positioned to manage through the cycle
Well-positioned to manage through the cycle Late cycle Downturn Early cycle Mid cycle Tight financing Excess demand Excess capacity Easy financing Strategy attributes are well-positioned to withstand a downturn. • Senior secured, top of the • Diverse portfolio by issuer, • Depth of workout and capit
Slide 12: Net asset value (NAV) bridge ― first quarter 2024
Net asset value (“NAV”) bridge ― first quarter 2024 Quarter over quarter NAV decreased, primarily driven by net unrealized mark to market on the portfolio. 1 1 2 1 Amounts shown reflect the impact of the purchase discount recorded in connection with the Merger and were computed based on the actual a
Slide 13: Strong track record
Strong track record Book value per share Annualized return on Annualized cash Annualized total invested assets:1 return:2 return on equity:3 and dividends paid 10.0% 9.7% 7.7% $35.00 As of 3/31/2024: $28.32 $30.00 $25.00 $20.00 $15.00 $10.00 $5.00 $0.00 At IPO Q3-12 Q1-13 Q3-13 Q1-14 Q3-14 Q1-15 Q3-
Slide 14: Diversified sources of funding
Diversified sources of funding TCPC is investment grade rated by Fitch and Moody’s Source Capacity Drawn Amount Available Pricing (%) Maturity (in millions) (in millions) (in millions) Operating facility $300.01 $168.0 $132.0 S+2.00%2 May-26 Funding facility II $200.03 $100.0 $100.0 S+2.05%4 August-
Slide 15: Investor friendly advisory fee structure
Investor friendly advisory fee structure BlackRock TCP Capital Corp. Typical externally managed BDC1 1.25% on assets up to 200% of the net 1.00%-1.75% on gross assets (up to 1.0x Base asset value of TCPC; 1.0% on assets that debt to equity; 1.0% above 1.0x debt to management exceed 200% of the net a
Slide 16: Quarterly operating results
Quarterly operating results 2023 2024 Unaudited ($ in thousands, except per share amounts) Q1 Q2 Q3 Q4 Q1 Investment income Interest and PIK income 48,992 53,031 53,254 49,843 54,702 Dividend income 937 909 936 1,005 1,026 Other income 379 21 21 1 1 Total investment income 50,308 53,961 54,211 50,84
Slide 17: Financial highlights
Financial highlights 2023 2024 Unaudited Unaudited Unaudited ($ per share) Q1 Q2 Q3 Q4 Q1 Net investment income 0.44 0.48 0.49 0.44 0.46 Adjusted net investment income1 0.44 0.48 0.49 0.44 0.45 Net realized and unrealized gain (loss) (0.05) (0.20) (0.27) (0.67) (0.37) Adjusted net realized and unrea
Slide 18: Portfolio highlights
Portfolio highlights 2023 2024 Asset mix of the investment portfolio Q1 Q2 Q3 Q4 Q1 (in thousands) Senior secured debt $1,470,731 $1,450,244 $1,413,070 $ 1,389,190 $1,935,144 Junior debt - - - - $19,223 Equity1 $194,999 $190,314 $180,251 $165,751 $162,052 Total investments $ 1,665,730 $ 1,640,558 $1
Slide 19: Quarterly balance sheets
Quarterly balance sheets 2023 2024 (in thousands, except per share data) Unaudited Audited Unaudited Assets Q1 Q2 Q3 Q4 Q1 Investments at fair value $1,665,730 $1,640,558 $1,593,321 $1,554,941 $2,116,419 Cash and cash equivalents 98,789 $123,129 $91,653 112,242 120,573 Accrued interest income 22,389
Slide 20: Endnotes – Non-GAAP Financial Measures
Endnotes – Non-GAAP Financial Measures On March 18, 2024, BlackRock TCP Capital Corp. (“the Company”) completed its previously announced Merger with BlackRock Capital Investment Corporation (“BCIC”) . The Merger has been accounted for as an asset acquisition of BCIC by the Company in accordance with
Slide 21: Endnotes – Internal Investment Rating System Overview
Endnotes – Internal Investment Rating System Overview TCPC’s Advisor employs a grading system for its entire portfolio in which all loans are rated on a scale of 1 to 4. This system is intended to reflect the performance of the borrower’s business, the collateral coverage of the loans and other fact
Slide 22: Corporate information
Corporate information Securities listing Transfer agent NASDAQ: TCPC Computershare Inc. (866) 333-6433 (from U.S.) Research coverage (201) 680-6578 (from outside U.S.) wwww.computershare.com/investor • JMP Securities • Keefe, Bruyette & Woods Corporate headquarters • Ladenburg Thalmann • Oppenheimer
Slide 23: Important notes
Important notes Prospective investors considering an investment in BlackRock TCP Capital Corp. (“we”, “us”, “our”, “TCPC” or the “Company”) should consider the investment objectives, risks and expenses of the Company carefully before investing. This information and other information about the Compan
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