BlackRock TCP Capital Corp. · NASDAQ:TCPC
BlackRock TCP Capital — Investor Presentation (August 2021)
23 slides from BlackRock TCP Capital's investor presentation, August 2021
Slide 1: BlackRock TCP Capital Corp. Investor Presentation August 2021
BlackRock TCP Capital Corp. Investor Presentation August 2021
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”) s hould consider the investment objectives, risks and expenses of the Company carefully before investing. This information and other information abou
Slide 3: BlackRock TCP Capital Corp – Key Highlights
BlackRock TCP Capital Corp – Key Highlights As of June 30, 2021 Who we are What we do How we do it $1.8 billion diversified portfolio Advisor is a wholly-owned subsidiary Value-oriented investing primarily composed of directly of BlackRock, Inc. (NYSE: BLK), and focused on middle-market originated s
Slide 4: Multi-Channel Deal Sourcing
Multi-Channel Deal Sourcing Extensive and diverse network, and channel agnostic approach to sourcing designed to generate attractive investments across market cycles BlackRock Capital Markets Industry / Sector Networks (BCM) Investor Relationships Reciprocal Credit Firm Network of Industry Advisors
Slide 5: Disciplined Investment Process
Disciplined Investment Process Industry deal teams are involved in every phase of a transaction from sourcing to eventual liquidity Rigorous Due Investment Portfolio Realizations / Diligence & Structuring Committee Management Liquidity ▪ Time-tested credit ▪ Thorough review of due ▪ Holistic approac
Slide 6: Differentiated focus within U.S. leveraged lending market
Differentiated focus within U.S. leveraged lending market Lower Yield Higher Yield Less Downside Management More Downside Management Broadly Middle Market Middle Market Syndicated Loans Syndicated Loans Private Loans Typical Tranche Sizes $300 million+ $200 – $300 million $25 – $200 million Typical
Slide 7: 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 8: 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 9: 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 10: Strong Track Record
Strong Track Record Book Value per Share and Dividends Paid As of $30.00 6/30/2021: Annualized return on invested assets(1): 10.9% $27.49 Annualized cash return(2): 9.7% $25.00 Annualized total return on equity(3): 9.3% $20.00 $15.00 $10.00 $5.00 $0.00 At IPO Q3-12 Q1-13 Q3-13 Q1-14 Q3-14 Q1-15 Q3-1
Slide 11: Diversified Portfolio: Conservatively Positioned
Diversified Portfolio: Conservatively Positioned As of June 30, 2021 Diversified Income Contribution $1.8 billion portfolio fair value 60 88% of portfolio # of portfolio companies is senior secured debt contributing (2) 31 9.3% weighted average effective yield on debt portfolio(1) 5 3 More than half
Slide 12: 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 June 30, 2021 Emphasis on Less-Cyclical Businesses Industry Diversification (1) ▪ Robust downside analysis performed at underwriting, with
Slide 13: Limited Exposure to Further Interest Rate Declines
Limited Exposure to Further Interest Rate Declines Decrease in LIBOR 3-Month LIBOR ▪ 3-month LIBOR declined 265 basis points since 3.00 12/31/2018 (from 2.80% to 0.15% as of 6/30/2021) 2.50 2.00 ▪ The cumulative decline in LIBOR over this period has 1.50 resulted in a total impact to net investment
Slide 14: Diversified Sources of Funding
Diversified Sources of Funding TCPC is investment grade rated by Fitch and Moody’s As of June 30, 2021, $ in millions Source Capacity Drawn Amount Available Pricing Maturity Operating Facility $ 300.0 (1) $ 79.2 $ 220.8 L + 1.75% (2) May-26 Funding Facility II 200.0 (3) 32.0 168.0 L + 2.00% (4) Aug-
Slide 15: Well-Covered Dividend
Well-Covered Dividend Net investment income of $0.31 per share Declared Q3 2021 dividend of $0.30 per share in Q2 2021 Payable on September 30, 2021 to holders of record Out-earned quarterly dividend of $0.30 per share paid as of September 16, 2021 on June 30, 2021 Consistent coverage of the regular
Slide 16: Financial and Portfolio Overview
Financial and Portfolio Overview As of June 30, 2021 Diversified ▪ Total portfolio fair value of $1.8 billion diversified across 108 portfolio companies Portfolio with an Emphasis on ▪ 88% invested in senior secured debt; 87% of the debt portfolio is 1 st lien Less-Cyclical Businesses ▪ Weighted ave
Slide 17: Appendix
Appendix BLACKROCK’ v TCP a
Slide 18: Second Quarter 2021 Highlights
Second Quarter 2021 Highlights As of June 30, 2021 ▪ Quarter-over-quarter NAV increased 4.8% to $14.21 per share as of June 30, primarily reflecting net portfolio appreciation Portfolio ▪ The credit quality of TCPC’s diversified portfolio remains strong, with non-accrual loans limited Performance to
Slide 19: BlackRock TCP Capital Corp - Response to COVID-19
BlackRock TCP Capital Corp - Response to COVID-19 As of June 30, 2021 Our Team Our Portfolio Our Firm Business continuity procedures Leveraging our team’s more than 20 Thorough and ongoing analysis of continue to be fully operational – years’ experience investing across every company in our portfoli
Slide 20: Investor Friendly Advisory Fee Structure
Investor Friendly Advisory Fee Structure BlackRock TCP Capital Corp. Average Externally Managed BDC(1) ◼ 1.5% up to 1.0x debt to equity; 1.0% above ◼ 1.50% - 1.75% on gross assets (up to 1.0x Base 1.0x debt to equity. Based on gross assets debt to equity; 1.0% above 1.0x debt to (less cash and cash
Slide 21: Financial Highlights
Financial Highlights 2021 For the Year Ended Unaudited Audited ($ per share) Q2 Q1 2020 2019 2018 2017 2016 2015 Net investment income 0.31 0.32 1.43 1.61 1.59 1.59 1.50 1.63 Net realized & unrealized gains (losses)(1) 0.64 0.30 (0.20) (1.09) (0.82) (0.40) 0.00 (0.42) Net increase in net assets from
Slide 22: Portfolio Highlights
Portfolio Highlights 2021 For the Year Ended Asset Mix of the Investment Portfolio Q2 Q1 2020 2019 2018 2017 2016 2015 (in thousands) Senior secured debt $1,601,722 $ 1,548,844$ 1,444,804$ 1,513,909$ 1,471,583 $ 1,404,729$ 1,248,888$ 1,129,571 Junior debt 6,228 6,157 - 21,285 43,526 41,008 - 965 Equ
Slide 23: 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.) web.queries@computershare.com ▪ Bank of America Merrill Lynch www.computershare.com/investor ▪ JMP Securities ▪ Keefe, Bruyette & W
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