Blackrock Tcp Capital Corp. · NASDAQ:TCPC
Blackrock Tcp Capital — Q3 2022 Earnings Presentation
21 slides from Blackrock Tcp Capital's earnings presentation, Nov 3, 2022
Slide 1: BlackRock TCP Capital Corp. Investor Presentation
BlackRock TCP Capital Corp. Investor Presentation September 30, 2022
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: Third Quarter 2022 Financial Highlights and Portfolio Overview
Third Quarter 2022 Financial Highlights and Portfolio Overview As of September 30, 2022 ▪ Net investment income of $0.42 per share, exceeded the second quarter dividend of $0.30 Continued per share paid on September 30 Strong ▪ No new non-accruals; non-accrual loans limited to just 0.3% of total inv
Slide 4: Middle Market Lending – A Large and Growing Opportunity
Middle Market Lending – A Large and Growing Opportunity Market Size Historical Growth Strong Credit Performance ~200,000 U.S. Middle Market Year-over-year revenue growth in Middle Market loans have historically companies representing over $10 the middle market of 12.2% vs experienced lower loss rate
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 September 30, 2022 Emphasis on Less-Cyclical Businesses Industry Diversification(1) ▪ Robust downside analysis performed at underwriting, w
Slide 6: Diversified Portfolio: Conservatively Positioned
Diversified Portfolio: Conservatively Positioned As of September 30, 2022 Diversified Income Contribution $1.7 billion portfolio fair value 90 # of portfolio companies 87% of portfolio is senior secured debt contributing (2) 23 11.3% weighted 4 6 average effective yield on debt portfolio(1) <1% 1% -
Slide 7: Strategically Positioned Balance Sheet
Strategically Positioned Balance Sheet As of September 30, 2022 Predominantly First Lien, Diverse Capital Structure(3) Floating Rate Asset Portfolio Seniority(1) SBA First Lien 73% Debentures 8% Second Lien 14% Credit Facilities Junior 0% 15% Equity 45% Equity 13% Fixed / Floating(2) Unsecured Float
Slide 8: Well Positioned for a Rising Rate Environment
Well Positioned for a Rising Rate Environment Rising Rate Environment SOFR ▪ Interest rates have risen significantly year to date to the highest levels in several years, and the most significant increase in a single year in several decades ▪ Given the majority of our outstanding liabilities are fixe
Slide 9: Well-Covered Dividend
Well-Covered Dividend Net investment income of $0.42 per share Declared Q4 2022 dividend of $0.32 per share in Q3 2022 Dividend increase of $0.02 per share, payable on December Out-earned quarterly dividend of $0.30 per share paid 30, 2022 to holders of record as of December 16, 2022 on September 30
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 ▪ $147 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: $147 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 – Third Quarter 2022
Net Asset Value (“NAV”) Bridge – Third Quarter 2022 Quarter over quarter NAV increased 1.1%, primarily driven by portfolio performance and 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 $35.00 Annualized return on invested assets(1): 10.7% As of 9/30/2022: Annualized cash return(2): 9.4% $28.60 $30.00 Annualized total return on equity(3): 8.9% $25.00 $20.00 $15.00 $10.00 $5.00 $0.00 At IPO Q3-12 Q1-13 Q3-13 Q1-14 Q3-14 Q1-
Slide 15: Diversified Sources of Funding
Diversified Sources of Funding TCPC is investment grade rated by Fitch and Moody’s As of September 30, 2022, $ in millions Source Capacity Drawn Amount Available Pricing Maturity Operating Facility $ 300.0 (1) $ 164.2 $ 135.8 L + 1.75% (2) May-26 Funding Facility II 200.0 (3) 100.0 100.0 L + 2.00% (
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 2022 2021 Unaudited ($ in thousands, except per share amounts) Q3 Q2 Q1 Q4 Q3 Investment income Interest income $46,098 $ 41,080 $ 40,454 $ 38,506 $ 40,542 Dividend income 1,731 2,656 1,538 959 1,915 Other income 377 219 159 116 259 Total investment income 48,206 43,955 4
Slide 18: Financial Highlights
Financial Highlights 2022 2021 Unaudited Unaudited ($ per share) Q3 Q2 Q1 Q4 Q3 Net investment income 0.42 0.37 0.34 0.31 0.32 Net realized & unrealized gains (losses) 0.03 (0.37) (0.12) 0.26 (0.02) Loss on extinguishment of debt - - - - (0.11) Net increase (decrease) in net assets from operations 0
Slide 19: Portfolio Highlights
Portfolio Highlights 2022 2021 Asset Mix of the Investment Portfolio Q3 Q2 Q1 Q4 Q3 (in thousands) Senior secured debt $ 1,458,080 $ 1,591,445 $ 1,584,366 $ 1,631,602 $ 1,576,117 Junior debt 3,508 3,483 3,162 3,156 6,350 Equity(1) 217,287 201,950 208,223 206,380 174,912 Total investments $ 1,678,875
Slide 20: Quarterly Balance Sheets
Quarterly Balance Sheets 2022 2021 (in thousands, except per share data) Unaudited Audited Unaudited ASSETS Q3 Q2 Q1 Q4 Q3 Investments at fair value $ 1,678,875 $ 1,796,878 $ 1,795,751 $ 1,841,138 $ 1,757,378 Cash and cash equivalents 105,795 49,427 43,651 19,552 36,588 Accrued interest income 19,30
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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