Blackrock Tcp Capital Corp. · NASDAQ:TCPC
Blackrock Tcp Capital — Q1 2025 Earnings Presentation
27 slides from Blackrock Tcp Capital's earnings presentation, May 8, 2025
Slide 1: BlackRock TCP Capital Corp. Investor presentation Q1 2025
BlackRock TCP Capital Corp. Investor presentation Q1 2025
Slide 2: Leadership team & resources
Leadership team & resources Senior Leadership & Executive Team Philip Tseng (26) * Managing Director, Chairman, Chief Executive Officer and Co-CIO Senior Leadership & Executive Team Erik Cuellar (28) CFO Diana Huffman (15) Jason Mehring (30) Patrick Wolfe (18) General Counsel President COO Laurence
Slide 3: Global platform with a leading alternatives business
Global platform with a leading alternatives business BlackRock Portfolio Management Group Private Debt Fundamental Systematic Multi-asset Fixed income strategies & solutions equities investments BlackRock Private Debt $63 billion in client assets1; 170+ investment professionals Direct Lending Privat
Slide 4: Leveraging BlackRock's global platform
Leveraging BlackRock’s global platform BlackRock’s Private Debt 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
Slide 5: Key investment highlights
Key investment highlights Established platform with decades of experience lending 1 throughout market cycles Strategically-positioned, diverse portfolio with access to the core 2 middle market Extensive network and channel-agnostic approach to deal 3 sourcing 4 Diversified, flexible funding sources
Slide 6: Track record of attractive shareholder returns
Track record of attractive shareholder returns Book value per share Annualized return on Annualized cash Annualized total invested assets:1 return:2 return on equity:3 and dividends paid 9.5% 9.7% 6.6% $35.00 As of 3/31/2025: $27.77 $30.00 $25.00 $20.00 $15.00 $10.00 $5.00 $0.00 Book Value per Share
Slide 7: Long history of ample dividend coverage
Long history of ample dividend coverage Adjusted net investment income of $0.36 Declared Q2 2025 regular dividend of $0.25 per share per share in Q1 20251. and special dividend of $0.04 per share Out-earned quarterly regular dividend of $0.25 per Payable on June 30, 2025, to stockholders of record a
Slide 8: Strategically-positioned, diverse portfolio
Strategically-positioned, diverse portfolio Composition by Industry1 14.0% Internet Software and Services 12.9% Software 146 companies 11.2% Diversified Financial Services Invested across 20+ industry sectors 7.0% Professional Services 6.7% Diversified Consumer Services 4.1% Health Care Technology 9
Slide 9: Investments include access to core middle market
Investments include access to core middle market Considerable addressable market for middle market lenders1 ~200,000 U.S. Represents Employs middle market 1/3rd private ~48 million businesses sector GDP people • Offers attractive spread opportunities • Large, differentiated opportunity set compared
Slide 10: Investment strategy & focus
Investment strategy & focus Top of capital structure positioning centered on first lien, floating rate loans primarily to middle market borrowers with $25 million to $75 million of EBITDA Seek to be lender of influence in structuring transactions and terms with attractive risk adjusted returns and d
Slide 11: Disciplined investment process
Disciplined investment process Industry deal teams are involved in every phase of a transaction, providing specialized resources as needed Rigorous due Investment Portfolio Realizations / diligence & committee management liquidity structuring ▪ Experienced credit ▪ Thorough review of due ▪ Holistic
Slide 12: Case Study: AlphaSense
Case Study: AlphaSense An enterprise SaaS company that offers financial services and corporate clients an AI-based search engine for market intelligence. The platform aggregates information from over 10,000 public and premium sources including brokerage research, regulatory content, company filings,
Slide 13: Case Study: Wave Hill Partners ("WHP")
Case Study: Wave Hill Partners (“WHP”) WHP is a leading brand management firm that acquires and licenses the IP of leading names in clothing, footwear, and toys. Its portfolio of 14 brands collectively generate $7bn+ in annual global retail sales. Growth Financing Investment overview Investment thes
Slide 14: Diversified and flexible sources of funding
Diversified and flexible sources of funding TCPC is investment grade rated by Fitch Capacity Drawn Amount Available Source Pricing % Maturity (in millions) (in millions) (in millions) Operating Facility1 $ 300.0 $ 120.0 $ 180.0 S+2.00%2 August-29 3 4 Funding Facility II $ 200.0 $ 100.0 $ 100.0 S+2.0
Slide 15: Strategically positioned balance sheet
Strategically positioned balance sheet Predominantly first lien, Diverse capital structure3 floating rate asset portfolio: 3/31/20251 First lien 82.5% 3/31/2025 Second lien 7.5% Junior 0.1% 6% 13% Equity 9.9% 42% 3/31/20252 Floating rate 94.0% Fixed rate 6.0% 39% Loans on non-accrual: 3/31/2025 % of
Slide 16: Net asset value stabilized in first quarter 2025
Net asset value (“NAV”) stabilized in first quarter 2025 $12.00 $11.50 $11.14 $11.00 $10.50 $10.20 $10.11 $10.00 $0.36 $9.50 $0.39 $9.23 $- $9.18 $9.00 $(0.51) $(0.29) $8.50 $8.00 $7.50 $7.00 3/31/2024 6/30/2024 9/30/2024 12/31/2024 Adjusted net Adjusted net Adjusted net Distribution Repurchases 3/3
Slide 17: Significant progress in repositioning our portfolio
Significant progress in repositioning our portfolio Non-accruals declined to 4.4% of the portfolio at fair value in Q1 2025, down from peak of 5.6% in Q4 2024, following successful exit of four non-accrual loans Pro-forma non-accruals decreased to 4.1% of portfolio post-quarter end, reflecting the r
Slide 18: First Quarter 2025 Financial Highlights and Portfolio Overview
First Quarter 2025 Financial Highlights and Portfolio Overview ▪ Adjusted NII1 of $0.36 per share, exceeded the regular first quarter dividend per share of $0.25 paid on March 31; Annualized adjusted NII ROE of 15.4% for the first quarter ▪ Declared a second quarter regular dividend of $0.25 per sha
Slide 19: Strong shareholder alignment
Strong shareholder alignment BlackRock TCP Capital Corp. Typical externally managed BDC1 1.25% on assets up to 200% of the net 1.00%-1.75% on gross assets (up to 1.0x Base asset value of TCPC; 1.0% on assets that debt to equity; 1.0% above 1.0x debt to management exceed 200% of the net asset value o
Slide 20: Appendix
Appendix
Slide 21: Quarterly operating results
Quarterly operating results 2024 2025 Unaudited ($ in thousands, except per share amounts) Q1 Q2 Q3 Q4 Q1 Investment income Interest and PIK interest income $ 54,702 $ 69,032 $ 69,225 $ 58,452 $ 52,574 Dividend income 1,026 2,491 1,580 2,785 3,314 Other income 1 3 127 12 1 Total investment income 55
Slide 22: Financial highlights
Financial highlights 2024 2025 Unaudited Audited Unaudited ($ per share) Q1 Q2 Q3 Q4 Q1 Net investment income 0.46 0.42 0.40 0.40 0.38 Adjusted net investment income 1 0.45 0.38 0.36 0.36 0.36 Net realized and unrealized gain (loss) (0.37) (1.02) (0.14) (0.85) (0.13) Adjusted net realized and unreal
Slide 23: Portfolio highlights
Portfolio highlights 2024 2025 Asset mix of the investment portfolio Q1 Q2 Q3 Q4 Q1 (in thousands) Senior secured debt $ 1,935,144 $ 1,804,749 $ 1,729,172 $ 1,637,557 $ 1,591,927 Junior debt 19,223 13,918 5,946 5,016 2,353 Equity1 162,052 162,243 173,971 152,185 174,994 Total investments $ 2,116,419
Slide 24: Quarterly balance sheets
Quarterly balance sheets 2024 2025 (in thousands, except per share data) Unaudited Audited Unaudited Assets Q1 Q2 Q3 Q4 Q1 Investments at fair value $ 2,116,419 $ 1,980,909 $ 1,909,089 $ 1,794,758 $ 1,769,274 Cash and cash equivalents 120,573 194,669 104,182 91,590 99,115 Accrued interest income 35,
Slide 25: 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 26: 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
Slide 27: 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 • Keefe, Bruyette & Woods • Ladenburg Thalmann Corporate headquarters • Oppenheimer • Raymond James
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