Blackrock Tcp Capital Corp. · NASDAQ:TCPC
Blackrock Tcp Capital — Q4 2021 Earnings Presentation
24 slides from Blackrock Tcp Capital's earnings presentation, Feb 24, 2022
Slide 1: BlackRock TCP Capital Corp. Investor Presentation
BlackRock TCP Capital Corp. Investor Presentation December 31, 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”) should consider the investment objectives, risks and expenses of the Company carefully before investing. This information and other information about
Slide 3: Fourth Quarter and Full Year 2021 Highlights
Fourth Quarter and Full Year 2021 Highlights As of December 31, 2021 ▪ 1.9% increase in NAV per share in the fourth quarter; Year-over-year NAV per share increased 8.5% Portfolio ▪ FY2021 income ROE of 9.5%, and GAAP ROE (inclusive of gains and losses) of 17.5% Performance ▪ The credit quality of TC
Slide 4: Fourth Quarter 2021 Financial and Portfolio Overview
Fourth Quarter 2021 Financial and Portfolio Overview As of December 31, 2021 ▪ Total portfolio fair value of $1.8 billion diversified across 115 portfolio companies Diversified Portfolio with an ▪ 89% invested in senior secured debt; 75% of the total portfolio is 1st lien Emphasis on ▪ Weighted aver
Slide 5: 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 6.5% annual revenue growth since Middle Market loans have historically companies representing over $10 2010, outpacing large companies experienced lower loss ra
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, 2021 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, 2021 Diversified Income Contribution $1.8 billion portfolio fair value 66 # of portfolio companies 89% of portfolio is senior secured debt contributing (2) 25 8 9.2% weighted 3 average effective yield on debt portfolio(1) <1% 1% - 2
Slide 8: Strategically Positioned Balance Sheet
Strategically Positioned Balance Sheet As of December 31, 2021 Predominantly First Lien, Diverse Capital Structure(3) Floating Rate Asset Portfolio Seniority(1) SBA First Lien 75% Debentures 8% Credit Second Lien 14% Facilities Junior 0% 8% Equity 45% Equity 11% Fixed / Floating(2) Unsecured Debt Fl
Slide 9: Well Positioned for a Rising Rate Environment
Well Positioned for a Rising Rate Environment Decrease in LIBOR 3-Month LIBOR ▪ 3-month LIBOR declined 260 basis points since 3.00 12/31/2018 (from 2.81% to 0.21% as of 12/31/2021) 2.50 2.00 ▪ 92% of our floating rate debt investments had interest 1.50 rate floors as of 12/31/2021, limiting exposure
Slide 10: Well-Covered Dividend
Well-Covered Dividend Net investment income of $0.31 per share Declared Q1 2022 dividend of $0.30 per share in Q4 2021 Payable on March 31, 2022 to holders of record Out-earned quarterly dividend of $0.30 per share paid as of March 17, 2022 on December 31, 2021 Consistent coverage of the regular div
Slide 11: 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 ▪ $169 billion(1) in AUM acros
Slide 12: Breadth and Depth of BlackRock's Global Credit Platform
Breadth and Depth of BlackRock’s Global Credit Platform Global Credit AUM: $169 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 13: 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 14: Net Asset Value (“NAV”) Bridge – Fourth Quarter
Net Asset Value (“NAV”) Bridge – Fourth Quarter Quarter over quarter NAV increased 1.9%, driven by net unrealized gains on the portfolio Past performance does not guarantee future returns. 14
Slide 15: Net Asset Value (“NAV”) Bridge – 2021
Net Asset Value (“NAV”) Bridge – 2021 NAV increased 8.5% in 2021, driven by strong credit performance across the portfolio Past performance does not guarantee future returns. 15
Slide 16: Strong Track Record
Strong Track Record Book Value per Share and Dividends Paid As of 12/31/2021: $30.00 Annualized return on invested assets(1): 10.9% $28.24 Annualized cash return(2): 9.7% $25.00 Annualized total return on equity(3): 9.4% $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-
Slide 17: Diversified Sources of Funding
Diversified Sources of Funding TCPC is investment grade rated by Fitch and Moody’s As of December 31, 2021, $ in millions Source Capacity Drawn Amount Available Pricing Maturity Operating Facility $ 300.0 (1) $ 154.5 $ 145.5 L + 1.75% (2) May-26 Funding Facility II 200.0 (3) - 200.0 L + 2.00% (4) Au
Slide 18: 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 19: BlackRock TCP Capital Corp - Response to COVID-19
BlackRock TCP Capital Corp - Response to COVID-19 As of December 31, 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 port
Slide 20: Quarterly Operating Results
Quarterly Operating Results 2021 2020 Unaudited ($ in thousands, except per share amounts) Q4 Q3 Q2 Q1 Q4 Investment income Interest income $ 38,506 $ 40,542 $ 39,769 $ 36,834 $ 40,872 Dividend income 959 1,915 1,560 3,408 473 Other income 116 259 316 922 1,546 Total investment income 39,581 42,716
Slide 21: Financial Highlights
Financial Highlights 2021 2020 Unaudited Unaudited ($ per share) Q4 Q3 Q2 Q1 Q4 Net investment income 0.31 0.32 0.31 0.32 0.35 Net realized & unrealized gains (losses) 0.26 (0.02) 0.64 0.30 0.48 Loss on extinguishment of debt - (0.11) - - - Net increase (decrease) in net assets from operations 0.56
Slide 22: Portfolio Highlights
Portfolio Highlights 2021 2020 Asset Mix of the Investment Portfolio Q4 Q3 Q2 Q1 Q4 (in thousands) Senior secured debt $ 1,631,602 $ 1,576,117 $ 1,601,722 $ 1,548,844 $ 1,444,804 Junior debt 3,156 6,350 6,228 6,157 - Equity(1) 206,380 174,912 218,107 180,390 184,760 Total investments $ 1,841,138 $ 1
Slide 23: Quarterly Balance Sheets
Quarterly Balance Sheets 2021 2020 (in thousands, except per share data) Audited Unaudited Audited ASSETS Q4 Q3 Q2 Q1 Q4 Investments at fair value $ 1,841,138 $ 1,757,378 $ 1,826,057 $ 1,735,391 $ 1,629,564 Cash and cash equivalents 19,552 36,588 17,881 14,255 20,007 Accrued interest income 20,061 2
Slide 24: 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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