Blackrock Tcp Capital Corp. · NASDAQ:TCPC

Blackrock Tcp Capital — TCP Capital — Wells Fargo Middle Market Forum 2015

27 slides from Blackrock Tcp Capital's conference presentation, Nov 17, 2015

  1. Slide 1: Wells Fargo Middle Market Forum

    Wells Fargo Middle Market Forum November 2015 © 2015 Tennenbaum Capital Partners, LLC. All Rights Reserved.

  2. Slide 2: Presenter

    Presenter Chairman & CEO, TCP Capital Corp. Howard Levkowitz Managing Partner & Co-Founder, Tennenbaum Capital Partners 2

  3. Slide 3: Disclosure

    Disclosure Prospective investors considering an investment in TCP Capital Corp. should consider the investment objectives, risks and expenses of the Company carefully before investing. This information and other information about the Company are available in the Company's filings with the Securities

  4. Slide 4: Overview

    Overview

  5. Slide 5: External Manager – Tennenbaum Capital Partners

    External Manager – Tennenbaum Capital Partners (“Tennenbaum”) Externally Managed by Tennenbaum Experienced Team with Diverse Skills Over $6 billion in capital under 19 industry-focused verticals with management by a leading alternative senior experienced professionals investing investment manager ac

  6. Slide 6: Overview of TCPC Investment Manager

    Overview of TCPC Investment Manager Tennenbaum Over $6 billion of committed capital under management(1) TCP Capital Corp. Private Institutional Registered Fund (NASDAQ: TCPC) Vehicles Publicly-traded BDC (1) As of September 30, 2015. 6

  7. Slide 7: TCP Capital Corp. ("TCPC") Highlights

    TCP Capital Corp. (“TCPC”) Highlights Low Cost Leverage & Leading Non-Bank Direct Consistent Dividends with Shareholder Friendly Lender Strong Dividend Coverage Structure Leading specialty finance Dividends covered every Best-in-class fee structure company focused on senior quarter since inception s

  8. Slide 8: Best-In-Class Advisory Fee Structure

    Best-In-Class Advisory Fee Structure Typical Externally Managed BDCs(1) TCP Capital Corp.  1.5% - 2.0% on gross assets  1.5% on gross assets (less cash and Base Management Fee cash equivalents)  2.00% quarterly return on NAV  2.00% quarterly return on NAV Incentive Fee Hurdle  Capital Gains: 20

  9. Slide 9: Diversified Sources of Funding

    Diversified Sources of Funding As of September 30, 2015 Source Capacity Drawn Amount Pricing Maturity Current leverage: (1) ■ TCPC Funding I Credit Facility $350mm $221mm L + 2.50% Mar-20 ■ SVCP Credit Facility $116mm $109mm L + 1.75% Jul-18 ■ Term Loan $101mm $101mm L + 1.75% Jul-18 (2) (3) ■ SBA L

  10. Slide 10: Dividend Stability

    Dividend Stability  Net investment income(1) of $0.40 per share, out-earning dividend by $0.04  Quarterly dividend of $0.36 per share paid on September 30, 2015  Declared Q4 2015 regular quarterly dividend of $0.36 per share  Payable on December 31, 2015 to holders of record as of December 17, 2

  11. Slide 11: Strong Track Record of Positive Performance

    Strong Track Record of Positive Performance Book Value per Share and Dividends Paid $21.00 $20.34 $19.98 $20.00 $19.55 $19.18 $19.17 $18.70 $19.00 $18.30 $17.80 $18.00 $5.24 $17.27 $4.88 $16.79 $3.75 $4.52 $17.00 $3.39 $4.16 $16.40 $2.98 $2.62 $15.80 $2.21 $16.00 $15.48 $1.85 $1.49 $15.04 $1.09 $0.6

  12. Slide 12: Investment Strategy & Focus

    Investment Strategy & Focus  Primarily current cash income with additional return from origination and structuring fees Return Focus  Potential capital appreciation  Potential upside through equity participation  Directly originated and newly originated leveraged loans and, to a lesser extent, s

  13. Slide 13: Extensive Sourcing Capabilities

    Extensive Sourcing Capabilities  Capabilities allow us to source across all channels, which serves to enhance risk/return  Benefit from a wide and deep sourcing network built over 19 years  Sourcing reflects strategy, differing from many of the ‘bank-like’ models  Over 30 investment professional

  14. Slide 14: Middle-Market Credit Overview

    Middle-Market Credit Overview  Middle-market lending is increasingly dominated by non-traditional lenders as banks continue a secular shift away from the market Why have banks retreated from the market? Regulatory Changes Consequences for the Banks • Dodd Frank / Volcker Rule • Increased regulatory

  15. Slide 15: Case Studies: Aircraft Financings

    Case Studies* Aircraft Financings * Case studies provide examples of investments made by TCPC and its investment process and approach. Not all investments following this process and approach have been profitable and there can be no guarantee that the investments profiled will be profitable. Addition

  16. Slide 16: Case Studies: Diversity of Portfolio

    Case Studies* Diversity of Portfolio * Case studies provide examples of investments made by TCPC and its investment process and approach. Not all investments following this process and approach have been profitable and there can be no guarantee that the investments profiled will be profitable. Addit

  17. Slide 17: Portfolio and Financial Review

    Portfolio and Financial Review

  18. Slide 18: Portfolio Highlights as of September 30, 2015

    Portfolio Highlights as of September 30, 2015  $1.3 billion portfolio fair value  97% of portfolio is senior secured debt Investment by Industry  10.9% weighted average effective yield on  78% of debt portfolio is floating rate debt portfolio Electrical Equipment Mfg 1.0% Other Telecom 1.0% Rest

  19. Slide 19: Portfolio Growth Since IPO

    Portfolio Growth Since IPO Portfolio Growth Since IPO $1,400 $1.3 billion $1,200 $1,000 Dollars in millions $800 $600 $400 $200 $ Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Equity Fixed rate debt Floating rate debt 19

  20. Slide 20: Conservatively Positioned Portfolio

    Conservatively Positioned Portfolio As of September 30, 2015 Portfolio by Asset Type Debt Portfolio by Interest Type Liabilities by Interest Type Mezzanine / Junior Equity 3% Debt <1% Fixed Rate 22% Fixed 25% Floating Rate 78% Floating 75% Senior Secured Debt 97% Positive annual impact on net income

  21. Slide 21: 2015 Highlights and Recent Achievements

    2015 Highlights and Recent Achievements  Received investment grade rating from S&P  Expanded existing credit facilities:  In August 2015, TCPC Funding Facility commitment increased to $350 million; accordion feature expanded to $400 million  Extended leverage facilities:  $116 million SVCP revo

  22. Slide 22: Conclusion

    Conclusion

  23. Slide 23: Key Highlights

    Key Highlights  Founded in 1996, inclusive of predecessor entity; Registered Investment Advisor Established Direct since 2001 Origination Platform  More than $15.5 billion invested in over 400 companies  Approximately $1.3 billion portfolio with a 10.9% effective yield  Portfolio composed of 97%

  24. Slide 24: Appendix

    Appendix

  25. Slide 25: Key Financial Highlights

    Key Financial Highlights ($ per share) Q3 2015 Q2 2015 Q1 2015 Q4 2014 Q3 2014 (1) Net investment income before taxes $ 0.50 $ 0.55 $ 0.46 $ 0.50 $ 0.47 Excise taxes - - - (0.02) - Incentive compensation on NII (0.10) (0.11) (0.09) (0.10) (0.09) Net investment income, after incentive(1) 0.40 0.44 0.

  26. Slide 26: Portfolio Highlights

    Portfolio Highlights Asset Mix of the Investment Portfolio (in thousands) Q3 2015 Q2 2015 Q1 2015 Q4 2014 Q3 2014 Senior secured debt $ 1,227,621 $ 1,170,828 $ 1,168,613 $ 1,113,537 $ 1,041,130 Mezzanine/subordinated debt 57 57 57 56 15 Equity 41,483 41,090 34,675 32,943 33,652 Total investments 1,2

  27. Slide 27: Corporate Information

    Corporate Information Securities Listing Transfer Agent NASDAQ: TCPC Wells Fargo Shareholder Services (800) 468-9716 (from U.S.) Research Coverage (651) 450-4064 (from outside U.S.) www.shareowneronline.com  Wells Fargo  Cantor Fitzgerald  Citigroup Global Markets Corporate Headquarters  Crowell

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