Slide 1: The Benefits of TICC's Fee Structure: Explaining the Catch-Up Provision
The Benefits of TICC’s Fee Structure: Explaining the Catch-Up Provision October 2015
Slide 2: Additional Information and Where to Find It
Additional Information and Where to Find It In connection with the approval of the proposed new investment advisory agreement with Benefit Street Partners L.L.C. (“BSP”), TICC Capital Corp. ("TICC", "TICC Capital", the "Company", "us", "we" or "our") has filed relevant materials with the SEC, includ
Slide 3: TICC Capital/BSP Agreement & Special Meeting Vote
TICC Capital/BSP Agreement & Special Meeting Vote Vote Now ¡V What a ¡§FOR¡¨ vote means for TICC stockholders: „Ï Best in class asset manager ¡V Benefit Street Partners (¡§BSP¡¨) to become TICC¡¦s new investment advisor „Ï Permanent and meaningful decline in fees paid by TICC „Ï No immediate reducti
Slide 4: TICC vs. TPG BDC: Incentive Fee Comparison
TICC vs. TPG BDC: Incentive Fee Comparison Question: TPG BDC has a 17.5% incentive fee above a hurdle rate; is that more stockholder friendly than TICC’s 20% incentive fee? Answer: No. Let us explain why: TPG BDC TICC / BSP Hurdle Rate Level Fixed vs. Floating Rate Hurdle Catch-up Provision „Î Fixed
Slide 5: Incentive Fee Teach-In: TICC's Fee Structure is Better for Stockholders
Incentive Fee Teach-In: TICC's Fee Structure is Better for Stockholders than TPG BDC’s Structure Net Investment Income (“NII”): What Portion Goes to Stockholders vs. Managers (1) TICC: Earned on return above 6.7% hurdle (7.9% of total) $17.5 $7.9 Illustrative Total Incentive Fees BDC Pays to Manager
Slide 6: In a Rising Rate Environment TICC's Incentive Fee Structure Would Provide Even More Value
In a Rising Rate Environment TICC’s Incentive Fee Structure Would Provide Even More Value to Stockholders NII: What Portion Goes to Stockholders vs. Managers (1) TICC: In a rising rate environment, earned on retur n above 7.9%(1) hurdle (5.6% of total) TPG fees magnified when hurdle exceeded: receiv
Slide 7: Under the BSP Agreement, TICC will Have One of the Lowest Expense Structures in the BDC Sector
Under the BSP Agreement, TICC will Have One of the Lowest Expense Structures in the BDC Sector „X The lower the expense ratio, the more net investment income available to pay distributions to stockholders „X TICC had a ratio of expenses to average net assets of 8.6% for the six months ended June 30,
Slide 8: Vote Now - What a FOR vote means for TICC stockholders
Vote Now ¡V What a ¡§FOR¡¨ vote means for TICC stockholders: „Ï Best in class asset manager ¡V Benefit Street Partners (¡§BSP¡¨) to become TICC¡¦s new investment advisor „Ï Permanent and meaningful decline in fees paid by TICC „Ï No immediate reduction to TICC¡¦s current distribution and no dilution