Blackrock Tcp Capital Corp. · NASDAQ:TCPC
Blackrock Tcp Capital — Q2 2023 Earnings Presentation
20 slides from Blackrock Tcp Capital's earnings presentation, Aug 3, 2023
Slide 1: BlackRock TCP Capital Corp. Investor Presentation
BlackRock TCP Capital Corp. Investor Presentation June 30, 2023
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: Second Quarter 2023 Financial Highlights and Portfolio Overview
Second Quarter 2023 Financial Highlights and Portfolio Overview As of June 30, 2023 Net investment income of $0.48 per share, exceeded the second quarter dividend of $0.34 per share paid on June 30 Continued Loans on non-accrual limited to 2 portfolio companies; 0.3% of total investments at fair
Slide 4: 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 12.2% revenue companies representing over $10 experienced lower loss rates than growth in
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 June 30, 2023 Emphasis on Less-Cyclical Businesses Industry Diversification(1) Robust downside analysis performed at underwriting, with a
Slide 6: Diversified Portfolio: Conservatively Positioned
Diversified Portfolio: Conservatively Positioned As of June 30, 2023 Diversified Income Contribution $1.6 billion portfolio fair value 95 # of portfolio companies 88% of portfolio is senior secured debt contributing (2) 24 13.8% weighted 4 5 average effective yield on debt portfolio(1) <1% 1% - 2% 2
Slide 7: Strategically Positioned Balance Sheet
Strategically Positioned Balance Sheet As of June 30, 2023 Predominantly First Lien, Diverse Capital Structure(3) Floating Rate Asset Portfolio Seniority(1) SBA First Lien 76% Debentures 9% Second Lien 12% Credit Facilities Junior 0% Equity 42% 17% Equity 12% Fixed / Floating(2) Unsecured Floating R
Slide 8: Well Positioned for a Rising Rate Environment
Well Positioned for a Rising Rate Environment Rates have risen significantly Interest rates have risen significantly over the last twelve months to the highest levels in several years, and 2022 saw the most significant increase in a single year in several decades Given the majority of our outsta
Slide 9: Well-Covered Dividend
Well-Covered Dividend Net investment income of $0.48 per share Declared Q3 2023 dividend of $0.34 per share in Q2 2023 Announced Q3 special dividend of $0.10 per share Out-earned quarterly dividend of $0.34 per share paid Payable on September 29, 2023 to holders of record as of on June 30, 2023 Sept
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 $76 billion(1) in AUM across
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 Strategy attributes are well-positioned to withstand a downturn Senior secured, top of the capital structure Significant cushion below investment (ge
Slide 12: Net Asset Value (“NAV”) Bridge – Second Quarter 2023
Net Asset Value (“NAV”) Bridge – Second 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): 10.3% 6/30/2023: $28.75 $30.00 Annualized cash return(2): 9.5% Annualized total return on equity(3): 8.4% $25.00 $20.00 $15.00 $10.00 $5.00 $0.00 Book Value per Share Cumulative Dividend
Slide 14: Diversified Sources of Funding
Diversified Sources of Funding TCPC is investment grade rated by Fitch and Moody’s As of June 30, 2023, $ in millions Source Capacity Drawn Amount Available Pricing Maturity Operating Facility $ 300.0 (1) $ 200.0 $ 99.9 S + 1.75% (2) May-26 Funding Facility II 200.0 (3) 100.0 100.0 S + 2.00% (4) Aug
Slide 15: 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 16: Quarterly Operating Results
Quarterly Operating Results 2023 2022 Unaudited ($ in thousands, except per share amounts) Q2 Q1 Q4 Q3 Q2 Investment income Interest income $ 53,031 $ 48,992 $ 45,139 $ 46,098 $ 41,080 Dividend income 909 937 1,243 1,731 2,656 Other income 21 379 307 377 219 Total investment income 53,961 50,308 46,
Slide 17: Financial Highlights
Financial Highlights 2023 2022 Unaudited Unaudited ($ per share) Q2 Q1 Q4 Q3 Q2 Net investment income 0.48 0.44 0.40 0.42 0.37 Net realized & unrealized gains (losses) (0.20) (0.05) (1.22) 0.03 (0.37) Net increase (decrease) in net assets from operations 0.28 0.39 (0.83) 0.45 (0.00) Dividend paid (0
Slide 18: Portfolio Highlights
Portfolio Highlights 2023 2022 Asset Mix of the Investment Portfolio Q2 Q1 Q4 Q3 Q2 (in thousands) Senior secured debt $ 1,450,244 $ 1,470,731 $ 1,420,428 $ 1,458,080 $ 1,591,445 Junior debt - - - 3,508 3,483 Equity(1) 190,314 194,999 189,160 217,287 201,950 Total investments $ 1,640,558 $ 1,665,730
Slide 19: Quarterly Balance Sheets
Quarterly Balance Sheets 2023 2022 (in thousands, except per share data) Unaudited ASSETS Q2 Q1 Q4 Q3 Q2 Q1 Investments at fair value $ 1,640,558 $ 1,665,730 $ 1,609,588 $ 1,678,875 $ 1,796,878 $ 1,795,751 Cash and cash equivalents 123,129 98,789 82,435 105,795 49,427 43,651 Accrued interest income
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 Bank of America Merrill Lynch JMP Securities Corporate Headquarters Keefe, Bruyette & Woods
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