Blackrock Tcp Capital Corp. · NASDAQ:TCPC
Blackrock Tcp Capital — Q4 2024 Earnings Presentation
22 slides from Blackrock Tcp Capital's earnings presentation, Feb 27, 2025
Slide 1: BlackRock TCP Capital Corp. Investor presentation
BlackRock TCP Capital Corp. Investor presentation December 31, 2024
Slide 2: Fourth Quarter and Full Year 2024 Financial Highlights and Portfolio Overview
Fourth Quarter and Full Year 2024 Financial Highlights and Portfolio Overview Adjusted NII1 of $0.36 per share, exceeded the regular fourth quarter dividend per share of $0.34 paid on December 31; Annualized adjusted NII ROE of 14.5% for the fourth quarter Declared a first quarter regular divide
Slide 3: 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 85% of middle market companies Middle Market loans have businesses representing one-third reported year-over-year revenue historically experienced of private sector GDP,
Slide 4: 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 5: Diversified portfolio: industry diversification
Diversified portfolio: emphasis on less-cyclical businesses Industry diversification1 14.6% Internet Software and Services 13.8% Software 11.2% Diversified Financial Services 6.8% Diversified Consumer Services 5.9% Professional Services 4.0% Health Care Technology 3.2% Healthcare Providers and Servi
Slide 6: Diversified portfolio: conservatively positioned
Diversified portfolio: conservatively positioned Diversified income contribution 106 $1.8 billion portfolio fair value # of portfolio companies contributing2 91% of portfolio is senior secured debt 12.4% weighted average effective yield on debt portfolio1 25 5 More than 77% 2 of our portfolio compan
Slide 7: Strategically positioned balance sheet
Strategically positioned balance sheet Predominantly first lien, Diverse capital structure3 floating rate asset portfolio: 12/31/20241 First lien 83.6% 12/31/2024 Second lien 7.6% Junior 0.3% 7% 13% Equity 8.5% 41% 12/31/20242 Floating rate 95% Fixed rate 5% 39% Loans on non-accrual: 12/31/2024 % of
Slide 8: Well-covered dividend
Well-covered dividend Adjusted net investment income of $0.36 Declared Q1 2025 regular dividend of $0.25 per share per share in Q4 20241. and special dividend of $0.04 per share5 Out-earned quarterly regular dividend of $0.34 per Payable on March 31, 2025 to stockholders of record as of the share pa
Slide 9: 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 10: 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 11: Net asset value (NAV) bridge ― fourth quarter 2024
Net asset value (“NAV”) bridge ― fourth quarter 2024 Quarter over quarter NAV decreased, primarily driven by net realized and unrealized losses, offset by NII during the quarter $11.00 $10.80 $10.60 $0.36 $10.40 $(0.02) $10.20 $10.11 $10.00 $9.80 $9.60 $(0.79) $9.40 $0.01 $9.23 $9.20 $(0.44) $9.00 A
Slide 12: 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 9.6% 9.7% 6.5% $35.00 As of 12/31/2024: $27.53 $30.00 $25.00 $20.00 $15.00 $10.00 $5.00 $0.00 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-1
Slide 13: Diversified sources of funding
Diversified sources of funding TCPC is investment grade rated by Fitch and Moody’s Capacity Draw n Am ount Available Source Pricing % Maturity (in millions) (in millions) (in millions) Operating Facility 1 $ 300.0 $ 120.7 $ 179.3 S+2.00%2 August-29 3 4 Funding Facility II $ 200.0 $ 75.0 $ 125.0 S+2.
Slide 14: 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 15: Quarterly operating results
Quarterly operating results 2023 2024 Unaudited ($ in thousands, except per share amounts) Q4 Q1 Q2 Q3 Q4 Investment income Interest and PIK interest income $ 49,843 $ 54,702 $ 69,032 $ 69,225 $ 58,452 Dividend income 1,005 1,026 2,491 1,580 2,785 Other income 1 1 3 127 12 Total investment income 50
Slide 16: Financial highlights
Financial highlights 1. See slide 20 for further description of non-GAAP financial measures. 2. Excludes SBIC debt, which is exempt from regulatory asset coverage requirements. 3. Net of trades pending settlement. 16
Slide 17: Portfolio highlights
Portfolio highlights 2023 2024 Asset mix of the investment portfolio Q4 Q1 Q2 Q3 Q4 (in thousands) Senior secured debt $ 1,389,190 $ 1,935,144 $ 1,804,749 $ 1,729,172 $ 1,637,557 Junior debt - 19,223 13,918 5,946 5,016 1 Equity 165,751 162,052 162,243 173,971 152,185 Total investments $ 1,554,941 $
Slide 18: Quarterly balance sheets
Quarterly balance sheets 2023 2024 (in thousands, except per share data) Audited Unaudited Audited Investments at fair value $ 1,554,941 $ 2,116419 $ 1,980,909 $ 1,909,089 $ 1,794,758 Cash and cash equivalents 112,242 120,573 194,669 104,182 91,590 Accrued interest income 25,651 35,011 33,557 25,787
Slide 19: 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 20: 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 Advisor’s assessment of the performance of the borrower’s business, the collateral coverage
Slide 21: 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
Slide 22: 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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