Blackrock Tcp Capital Corp. · NASDAQ:TCPC
Blackrock Tcp Capital — Q1 2023 Earnings Presentation
21 slides from Blackrock Tcp Capital's earnings presentation, May 4, 2023
Slide 1: BlackRock TCP Capital Corp. Investor Presentation
BlackRock TCP Capital Corp. Investor Presentation March 31, 2023
Slide 2: Forward Looking Statements
Forward Looking Statements 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
Slide 3: First Quarter 2023 Financial Highlights and Portfolio Overview
First Quarter 2023 Financial Highlights and Portfolio Overview As of March 31, 2023 ▪ Record net investment income of $0.44 per share, exceeded the fourth quarter dividend of $0.32 per Continued share paid on March 31 Strong ▪ Loans on non-accrual limited to 2 portfolio companies; 0.3% of total inve
Slide 4: Middle Market Lending – A Large and Stable Opportunity
Middle Market Lending – A Large and Stable Opportunity Market Size Continued Growth Strong Credit Performance Middle Market companies on ~200,000 U.S. Middle Market Middle Market loans have historically average posted 12.2% revenue companies representing over $10 experienced lower loss rates than gr
Slide 5: Diversified Portfolio: Emphasis on Less-Cyclical Businesses
Diversified Portfolio: Emphasis on Less-Cyclical Businesses Substantially all investments subject to independent 3rd party valuation process every quarter As of March 31, 2023 Emphasis on Less-Cyclical Businesses Industry Diversification(1) ▪ Robust downside analysis performed at underwriting, with
Slide 6: Diversified Portfolio: Conservatively Positioned
Diversified Portfolio: Conservatively Positioned As of March 31, 2023 Diversified Income Contribution $1.7 billion portfolio fair value 111 # of portfolio companies 88% of portfolio is senior secured debt contributing (2) 24 13.1% weighted 4 4 average effective yield on debt portfolio(1) <1% 1% - 2%
Slide 7: Strategically Positioned Balance Sheet
Strategically Positioned Balance Sheet As of March 31, 2023 Predominantly First Lien, Diverse Capital Structure(3) Floating Rate Asset Portfolio Seniority(1) SBA First Lien 76% Debentures 9% Second Lien 12% Credit Facilities Junior 0% Equity 42% 17% Equity 12% Fixed / Floating(2) Unsecured Floating
Slide 8: Well Positioned for a Rising Rate Environment
Well Positioned for a Rising Rate Environment Rates have risen significantly ▪ Interest rates have risen significantly over the last twelve months to the highest levels in several years, and 2022 saw the most significant increase in a single year in several decades ▪ Given the majority of our outsta
Slide 9: Well-Covered Dividend
Well-Covered Dividend Net investment income of $0.44 per share Declared Q2 2023 dividend of $0.34 per share in Q1 2023 Payable on June 30, 2023 to holders of record as of June 16, Out-earned quarterly dividend of $0.32 per share paid 2023 on March 31, 2023 Consistent coverage of the regular dividend
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 Expertise Information Edge One Stop Shop ▪ $152 billion(1) in AUM acros
Slide 11: Breadth and Depth of BlackRock's Global Credit Platform
Breadth and Depth of BlackRock’s Global Credit Platform Global Credit AUM: $152 billion(1) Leveraged Finance Multi-Strategy Credit Private Credit ▪ High Yield ▪ Pan-Credit Solutions ▪ Direct Lending ▪ Bank Loans ▪ Hedge Fund Strategies ▪ Opportunistic Credit ▪ CLOs ▪ Specialty Finance BlackRock Inve
Slide 12: Well Positioned to Manage Through the Cycle
Well Positioned to Manage Through the Cycle Late Cycle Downturn Early Cycle Mid Cycle Tight Financing Easy Financing Excess Capacity Excess Demand Strategy attributes are well-positioned to withstand a downturn ✓ Senior secured, top of the capital structure ✓ Significant cushion below investment (ge
Slide 13: Net Asset Value ("NAV") Bridge – First Quarter 2023
Net Asset Value (“NAV”) Bridge – First Quarter 2023 Quarter over quarter NAV increased 0.5%, primarily driven by NII in excess of the dividend Past performance does not guarantee future returns. 13
Slide 14: Strong Track Record
Strong Track Record Book Value per Share and Dividends Paid As of Annualized return on invested assets(1): 10.3% 3/31/2023: $28.12 Annualized cash return(2): 9.3% Annualized total return on equity(3): 8.5% (1) Annualized return on assets calculated as total investment income (gross of expenses) plus
Slide 15: Diversified Sources of Funding
Diversified Sources of Funding TCPC is investment grade rated by Fitch and Moody’s As of March 31, 2023, $ in millions Source Capacity Drawn Amount Available Pricing Maturity Operating Facility $ 300.0 (1) $ 202.0 $ 98.0 L + 1.75% (2) May-26 Funding Facility II 200.0 (3) 100.0 100.0 S + 2.00% (4) Au
Slide 16: Investor Friendly Advisory Fee Structure
Investor Friendly Advisory Fee Structure BlackRock TCP Capital Corp. Average Externally Managed BDC(1) ◼ 1.5% up to 1.0x debt to equity; 1.0% above ◼ 1.00% - 1.75% on gross assets (up to 1.0x Base 1.0x debt to equity. Based on gross assets debt to equity; 1.0% above 1.0x debt to (less cash and cash
Slide 17: Quarterly Operating Results
Quarterly Operating Results 2023 2022 Unaudited ($ in thousands, except per share amounts) Q1 Q4 Q3 Q2 Q1 Investment income Interest income $ 48,992 $ 45,139 $ 46,098 $ 41,080 $ 40,454 Dividend income 937 1,243 1,731 2,656 1,538 Other income 379 307 377 219 159 Total investment income 50,308 46,689
Slide 18: Financial Highlights
Financial Highlights 2023 2022 Unaudited Unaudited ($ per share) Q1 Q4 Q3 Q2 Q1 Net investment income 0.44 0.40 0.42 0.37 0.34 Net realized & unrealized gains (losses) (0.05) (1.22) 0.03 (0.37) (0.12) Net increase (decrease) in net assets from operations 0.39 (0.83) 0.45 (0.00) 0.22 Dividend paid (0
Slide 19: Portfolio Highlights
Portfolio Highlights 2023 2022 Asset Mix of the Investment Portfolio Q1 Q4 Q3 Q2 Q1 (in thousands) Senior secured debt $ 1,470,731 $ 1,420,428 $ 1,458,080 $ 1,591,445 $ 1,584,366 Junior debt - - 3,508 3,483 3,162 Equity(1) 194,999 189,160 217,287 201,950 208,223 Total investments $ 1,665,730 $ 1,609
Slide 20: Quarterly Balance Sheets
Quarterly Balance Sheets 2023 2022 2021 (in thousands, except per share data) Unaudited Audited ASSETS Q1 Q4 Q3 Q2 Q1 Q4 Investments at fair value $ 1,665,730 $ 1,609,588 $ 1,678,875 $ 1,796,878 $ 1,795,751 $ 1,841,138 Cash and cash equivalents 98,789 82,435 105,795 49,427 43,651 19,552 Accrued inte
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 ▪ Bank of America Merrill Lynch ▪ JMP Securities Corporate Headquarters ▪ Keefe, Bruyette & Woods ▪
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