Blackrock Tcp Capital Corp. · NASDAQ:TCPC
Blackrock Tcp Capital — Q4 2023 Earnings Presentation
20 slides from Blackrock Tcp Capital's earnings presentation, Feb 29, 2024
Slide 1: BlackRock TCP Capital Corp. Investor Presentation
BlackRock TCP Capital Corp. Investor Presentation December 31, 2023
Slide 2: Forward-Looking Statements & Legal Disclaimers
Forward-Looking Statements & Legal Disclaimers 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 oth
Slide 3: Forward-Looking Statements & Legal Disclaimers
Forward-Looking Statements & Legal Disclaimers No Offer or Solicitation This Presentation is not, and under no circumstances is it to be construed as, a prospectus or an advertisement and this Presentation is not, and under no circumstances is it to be construed as, an offer to sell or a solicitatio
Slide 4: Fourth Quarter and Full Year 2023 Financial Highlights and Portfolio Overview
Fourth Quarter and Full Year 2023 Financial Highlights and Portfolio Overview As of December 31, 2023 ▪ FY2023 Net investment income of $1.84 per share increased 20% over FY2022, primarily as a result of higher Continued base rates and marginally wider spreads in 2023 Strong ▪ Declared a first quart
Slide 5: Middle Market Lending – An Enduring Opportunity
Middle Market Lending – An Enduring 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 12.4% revenue businesses representing one-third experienced lower loss rates than growth
Slide 6: 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 December 31, 2023 Emphasis on Less-Cyclical Businesses Industry Diversification(1) ▪ Robust downside analysis performed at underwriting, wi
Slide 7: Diversified Portfolio: Conservatively Positioned
Diversified Portfolio: Conservatively Positioned As of December 31, 2023 Diversified Income Contribution $1.6 billion portfolio fair value 103 # of portfolio companies 89% of portfolio is senior secured debt contributing (2) 18 14.1% weighted 6 5 average effective yield on debt portfolio(1) <1% 1% -
Slide 8: Strategically Positioned Balance Sheet
Strategically Positioned Balance Sheet As of December 31, 2023 Predominantly First Lien, Diverse Capital Structure(3) Floating Rate Asset Portfolio Seniority(1) SBA First Lien 78% Debentures 9% Second Lien 11% Credit Facilities Junior 0% Equity 41% 16% Equity 11% Fixed / Floating(2) Unsecured Floati
Slide 9: Well-Covered Dividend
Well-Covered Dividend Net investment income of $0.44 per share Declared Q1 2024 dividend of $0.34 per share in Q4 2023 Payable on March 29, 2024, to shareholders of record as of Out-earned regular quarterly dividend of $0.34 per share March 14, 2024 paid on December 31, 2023 Consistent coverage of t
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 Private Debt Information Edge One Stop Shop Expertise ▪ Broad access to manage
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 Easy Financing Excess Capacity Excess Demand Direct lending strategy attributes are well-positioned to withstand a downturn ✓ Senior secured, top of the capital structure ✓ Significant cushion below
Slide 12: Net Asset Value ("NAV") Bridge – Fourth Quarter 2023
Net Asset Value (“NAV”) Bridge – Fourth Quarter 2023 Quarter over quarter NAV decreased, primarily driven by net unrealized mark to market on the portfolio Past performance does not guarantee future returns. 12
Slide 13: Strong Track Record
Strong Track Record Book Value per Share and Dividends Paid $35.00 As of Annualized return on invested assets(1): 10.1% 12/31/2023: $28.74 $30.00 Annualized cash return(2): 9.7% Annualized total return on equity(3): 8.1% $25.00 $20.00 $15.00 $10.00 $5.00 $0.00 Book Value per Share Cumulative Dividen
Slide 14: Diversified Sources of Funding
Diversified Sources of Funding TCPC is investment grade rated by Fitch and Moody’s As of December 31, 2023, $ in millions Source Capacity Drawn Amount Available Pricing Maturity Operating Facility $ 300.0 (1) $ 163.2 $ 136.8 S + 2.00% (2) May-26 Funding Facility II 200.0 (3) 100.0 100.0 S + 2.05% (4
Slide 15: Investor Friendly Advisory Fee Structure
Investor Friendly Advisory Fee Structure BlackRock TCP Capital Corp. Typical Externally Managed BDC(2) ◼ 1.5% on assets up to 200% of the net asset ◼ 1.00% - 1.75% on gross assets (up to 1.0x value of TCPC ; 1.0% on assets that exceed debt to equity; 1.0% above 1.0x debt to 200% of the net asset val
Slide 16: Quarterly Operating Results
Quarterly Operating Results 2023 2022 Unaudited ($ in thousands, except per share amounts) Q4 Q3 Q2 Q1 Q4 Investment income Interest income $ 49,843 $53,254 $ 53,031 $ 48,992 $ 45,139 Dividend income 1,005 936 909 937 1,243 Other income 1 21 21 379 307 Total investment income 50,849 54,211 53,961 50
Slide 17: Financial Highlights
Financial Highlights 2023 2022 Unaudited Unaudited ($ per share) Q4 Q3 Q2 Q1 Q4 Net investment income 0.44 0.49 0.48 0.44 0.40 Net realized & unrealized gains (losses) (0.67) (0.27) (0.20) (0.05) (1.22) Net increase (decrease) in net assets from operations (0.23) 0.22 0.28 0.39 (0.83) Dividend paid
Slide 18: Portfolio Highlights
Portfolio Highlights 2023 2022 Asset Mix of the Investment Portfolio Q4 Q3 Q2 Q1 Q4 (in thousands) Senior secured debt $ 1,389,190 $ 1,413,070 $ 1,450,244 $ 1,470,731 $ 1,420,427 Junior debt - - - - - Equity(1) 165,751 180,251 190,314 194,999 189,159 Total investments $ 1,554,941 1,593,321 $ 1,640,5
Slide 19: Quarterly Balance Sheets
Quarterly Balance Sheets 2023 2022 (in thousands, except per share data) Unaudited Audited ASSETS Q4 Q3 Q2 Q1 Q4 Investments at fair value $1,554,941 $ 1,593,321 $ 1,640,558 $ 1,665,730 $1,609,588 Cash and cash equivalents 112,242 91,653 123,129 98,789 82,435 Accrued interest income 25,651 26,660 24
Slide 20: 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 ▪ JMP Securities ▪ Keefe, Bruyette & Woods Corporate Headquarters ▪ Ladenburg Thalmann ▪ Oppenheimer
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