Blackrock Tcp Capital Corp. · NASDAQ:TCPC
Blackrock Tcp Capital — Q3 2024 Earnings Presentation
23 slides from Blackrock Tcp Capital's earnings presentation, Nov 6, 2024
Slide 1: BlackRock TCP Capital Corp. Investor presentation
BlackRock TCP Capital Corp. Investor presentation September 30, 2024
Slide 2: Third Quarter 2024 Financial Highlights and Portfolio Overview
Third Quarter 2024 Financial Highlights and Portfolio Overview Adjusted NII1 of $0.36 per share, exceeded the third quarter dividend per share of $0.34 paid on September 30; Annualized adjusted NII ROE of 14.0% for the third quarter Continued Declared a fourth quarter dividend of $0.34 per share
Slide 3: Overview of BCIC Merger Transaction
Overview 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 T
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 Through the first half of 2024, Middle Market loans have businesses representing one-third year-over-year revenue growth for historically experienced of private sector G
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 14.0% Internet Software and Services 13.7% Software 12.7% Diversified Financial Services 8.0% Diversified Consumer Services 5.9% Professional Services 3.7% Health Care Technology 3.2% IT Services 3.0% Healthcare Pr
Slide 7: Diversified portfolio: conservatively positioned
Diversified portfolio: conservatively positioned Diversified income contribution $1.9 billion 101 portfolio fair value # of portfolio companies contributing2 91% of portfolio is senior secured debt 13.4% weighted average effective yield 30 on debt portfolio1 4 More than 70% 3 of our portfolio compan
Slide 8: Strategically positioned balance sheet
Strategically positioned balance sheet Predominantly first lien, Diverse capital structure3 floating rate asset portfolio: 9/30/20241 First lien 81.3% 9/30/2024 Second lien 9.3% Junior 0.3% 6% 15% Equity 9.1% 43% 9/30/20242 Floating rate 93% Fixed rate 7% 36% Loans on non-accrual: 9/30/2024 % of FV
Slide 9: Well-covered dividend
Well-covered dividend Adjusted net investment income of $0.36 Declared Q4 2024 regular dividend of $0.34 per share per share in Q3 20241. and special dividend of $0.10 per share Out-earned quarterly dividend of $0.34 per share Payable on December 31, 2024, to shareholders of record as of paid on Sep
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 ― third quarter 2024
Net asset value (“NAV”) bridge ― third quarter 2024 Quarter over quarter NAV decreased, primarily driven by net realized losses, offset by net unrealized gains in the portfolio $11.00 $10.90 $10.80 $10.70 $10.60 $0.36 $10.50 $0.29 $10.40 $10.30 $10.20 $10.20 $(0.40) $10.11 $10.10 $(0.34) $10.00 6/30
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 9.8% 9.7% 7.2% $35.00 As of 9/30/2024: $27.97 $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 Q1-14
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 $121.2 $178.8 S+2.00%2 May-26 Funding Facility II $200.03 $51.0 $149.0 S+2.05%4 August-2
Slide 15: Investor friendly advisory fee structure
Investor friendly advisory fee structure BlackRock TCP Capital Corp. Typical externally managed BDC1 1.25% on assets up to 200% of the net 1.00%-1.75% on gross assets (up to 1.0x Base asset value of TCPC; 1.0% on assets that debt to equity; 1.0% above 1.0x debt to management exceed 200% of the net a
Slide 16: Quarterly operating results
Quarterly operating results 2023 2024 Unaudited ($ in thousands, except per share amounts) Q3 Q4 Q1 Q2 Q3 Investment income Interest and PIK interest income $ 53,254 $ 49,843 $ 54,702 $ 69,032 $ 69,225 Dividend income 936 1,005 1,026 2,491 1,580 Other income 21 1 1 3 127 Total investment income 54,2
Slide 17: Financial highlights
Financial highlights 2023 2024 Unaudited ($ per share) Q3 Q4 Q1 Q2 Q3 Net investment income 0.49 0.44 0.46 0.42 0.40 Adjusted net investment income1 0.49 0.44 0.45 0.38 0.36 Net realized and unrealized gain (loss) (0.27) (0.67) (0.37) (1.02) (0.14) Adjusted net realized and unrealized gain (loss)1 (
Slide 18: Portfolio highlights
Portfolio highlights 2023 2024 Asset mix of the investment portfolio Q3 Q4 Q1 Q2 Q3 (in thousands) Senior secured debt $1,413,070 $ 1,389,190 $1,935,144 $1,804,749 $1,729,172 Junior debt - - 19,223 13,918 $5,946 Equity1 180,251 165,751 162,052 162,243 173,971 Total investments $1,593,321 $ 1,554,941
Slide 19: Quarterly balance sheets
Quarterly balance sheets 2023 2024 (in thousands, except per share data) Unaudited Audited Unaudited Assets Q3 Q4 Q1 Q2 Q3 Investments at fair value $1,593,321 $1,554,941 $2,116,419 $1,980,909 $1,909,089 Cash and cash equivalents 91,653 112,242 120,573 194,669 104,182 Accrued interest income 26,660
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 Advisor’s assessment of the performance of the borrower’s business, the collateral coverage
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 • Keefe, Bruyette & Woods • Ladenburg Thalmann Corporate headquarters • Oppenheimer • Raymond James
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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