Blackrock Tcp Capital Corp. · NASDAQ:TCPC

Blackrock Tcp Capital — Q3 2023 Earnings Presentation

21 slides from Blackrock Tcp Capital's earnings presentation, Nov 2, 2023

  1. Slide 1: BlackRock TCP Capital Corp. Investor Presentation

    BlackRock TCP Capital Corp. Investor Presentation September 30, 2023 ALTM1123U/S-3207383-1/21

  2. 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

  3. 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

  4. Slide 4: Third Quarter 2023 Financial Highlights and Portfolio Overview

    Third Quarter 2023 Financial Highlights and Portfolio Overview As of September 30, 2023  Net investment income of $0.49 per share, exceeded the second quarter dividend of $0.34 per share paid on Continued September 30 Strong Financial  Loans on non-accrual limited to 3 portfolio companies; 1.1% of

  5. 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 12.2% revenue companies representing over $10 experienced lower loss rates than growth in

  6. 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 September 30, 2023 Emphasis on Less-Cyclical Businesses Industry Diversification(1)  Robust downside analysis performed at underwriting, w

  7. Slide 7: Diversified Portfolio: Conservatively Positioned

    Diversified Portfolio: Conservatively Positioned As of September 30, 2023 Diversified Income Contribution $1.6 billion portfolio fair value 100 # of portfolio companies 89% of portfolio is senior secured debt contributing (2) 21 14.1% weighted 9 average effective yield 1 on debt portfolio(1) <1% 1%

  8. Slide 8: Strategically Positioned Balance Sheet

    Strategically Positioned Balance Sheet As of September 30, 2023 Predominantly First Lien, Diverse Capital Structure(3) Floating Rate Asset Portfolio Seniority(1) SBA First Lien 76% Debentures 9% Second Lien 13% Credit Facilities Junior 0% Equity 43% 14% Equity 11% Fixed / Floating(2) Unsecured Float

  9. Slide 9: 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 eighteen 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 outs

  10. Slide 10: Well-Covered Dividend

    Well-Covered Dividend Net investment income of $0.49 per share Declared Q4 2023 dividend of $0.34 per share in Q3 2023 Announced Q4 special dividend of $0.25 per share Out-earned quarterly dividend of $0.34 per share paid Payable on December 29, 2023 to holders of record as of on September 30, 2023

  11. 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  $84 billion(1) in AUM across

  12. 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

  13. Slide 13: Net Asset Value ("NAV") Bridge – Third Quarter 2023

    Net Asset Value (“NAV”) Bridge – Third 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. 13 ALTM1123U/S-3207383-13/21

  14. Slide 14: 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% 9/30/2023: $28.97 $30.00 Annualized cash return(2): 9.6% 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

  15. Slide 15: Diversified Sources of Funding

    Diversified Sources of Funding TCPC is investment grade rated by Fitch and Moody’s As of September 30, 2023, $ in millions Source Capacity Drawn Amount Available Pricing Maturity Operating Facility $ 300.0 (1) $ 148.8 $ 151.1 S + 1.75% (2) May-26 Funding Facility II 200.0 (3) 100.0 100.0 S + 2.05% (

  16. Slide 16: Investor Friendly Advisory Fee Structure

    Investor Friendly Advisory Fee Structure BlackRock TCP Capital Corp. Typical Externally Managed BDC(2) (Proposed) (1)  1.25% on assets up to 200% of the net  1.00% - 1.75% on gross assets (up to 1.0x asset value of TCPC ; 1.0% on assets that debt to equity; 1.0% above 1.0x debt to Base exceed 200%

  17. Slide 17: Quarterly Operating Results

    Quarterly Operating Results 2023 2022 Unaudited ($ in thousands, except per share amounts) Q3 Q2 Q1 Q4 Q3 Investment income Interest income $53,254 $ 53,031 $ 48,992 $ 45,139 $ 46,098 Dividend income 936 909 937 1,243 1,731 Other income 21 21 379 307 377 Total investment income 54,211 53,961 50,308

  18. Slide 18: Financial Highlights

    Financial Highlights 2023 2022 Q3 Unaudited Unaudited ($ per share) Q2 Q1 Q4 Q3 Net investment income 0.49 0.48 0.44 0.40 0.42 Net realized & unrealized gains (losses) (0.27) (0.20) (0.05) (1.22) 0.03 Net increase (decrease) in net assets from operations 0.22 0.28 0.39 (0.83) 0.45 Dividend paid (0.4

  19. Slide 19: Portfolio Highlights

    Portfolio Highlights 2023 2022 Asset Mix of the Investment Portfolio Q2 Q1 Q4 Q3 (in thousands) Senior secured debt $ 1,413,070 $ 1,450,244 $ 1,470,731 $ 1,420,428 $ 1,458,080 Junior debt - - - - 3,508 Equity(1) 180,251 190,314 194,999 189,160 217,287 Total investments 1,593,321 $ 1,640,558 $ 1,665,

  20. Slide 20: Quarterly Balance Sheets

    Quarterly Balance Sheets 2023 2022 (in thousands, except per share data) Unaudited ASSETS Q3 Q2 Q1 Q4 Q3 Q2 Investments at fair value $ 1,593,321 $ 1,640,558 $ 1,665,730 $ 1,609,588 $ 1,678,875 $ 1,796,878 Cash and cash equivalents 91,653 123,129 98,789 82,435 105,795 49,427 Accrued interest income

  21. 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  JMP Securities  Keefe, Bruyette & Woods Corporate Headquarters  Ladenburg Thalmann  Oppenheimer

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