Blackrock Tcp Capital Corp. · NASDAQ:TCPC
Blackrock Tcp Capital — Investor Presentation (March 2021)
24 slides from Blackrock Tcp Capital's investor presentation, March 2021
Slide 1: BlackRock TCP Capital Corp. Investor Presentation March 2021
BlackRock TCP Capital Corp. Investor Presentation March 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 December 31, 2020 Who we are What we do How we do it $1.6 billion diversified portfolio Advised by Tennenbaum Capital Value-oriented investing primarily composed of directly Partners (“TCP”) with a history of focused on middle-market originated senio
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 (gene
Slide 8: Competitive Advantages of BlackRock
Competitive Advantages of BlackRock BlackRock’s $8.68 trillion(1) 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 ▪ $142 billi
Slide 9: Breadth and Depth of BlackRock’s Global Credit Platform
Breadth and Depth of BlackRock’s Global Credit Platform Global Credit AUM: $142 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 $30.00 Annualized return on invested assets(1): 10.5% As of 12/31/2020: Annualized cash return(2): 9.8% $25.92 $25.00 Annualized total return on equity(3): 8.6% $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 11: Diversified Portfolio: Conservatively Positioned
Diversified Portfolio: Conservatively Positioned As of December 31, 2020 Diversified Income Contribution $1.6 billion portfolio fair value 45 35 89% of portfolio # of portfolio companies is senior secured debt contributing (2) 9.6% weighted average effective yield on debt portfolio(1) 3 4 More than
Slide 12: Diversified Portfolio: Emphasis on Non-Cyclical Businesses
Diversified Portfolio: Emphasis on Non-Cyclical Businesses Substantially all investments subject to independent 3 rd party valuation process every quarter As of December 31, 2020 Emphasis on Non-Cyclical Businesses Industry Diversification(1) ▪ Robust downside analysis performed at underwriting, wit
Slide 13: Strategically Positioned Balance Sheet
Strategically Positioned Balance Sheet As of December 31, 2020 Predominantly First Lien, Diverse Capital Structure(2),(3) Floating Rate Asset Portfolio Seniority(1) SBA Debentures First Lien 88% 8% Credit Second Lien 12% Facilities Equity 47% 10% Junior 0% Unsecured Fixed / Floating(1) Debt 35% Floa
Slide 14: Limited Exposure to Further Interest Rate Declines
Limited Exposure to Further Interest Rate Declines Decrease in LIBOR 3-Month LIBOR 3.00 ▪ 3-month LIBOR declined 256 basis points since 2.50 12/31/2018 (from 2.80% to 0.24% as of 12/31/2020) 2.00 ▪ The cumulative decline in LIBOR over this period has 1.50 resulted in a total impact to net investment
Slide 15: Diversified Sources of Funding
Diversified Sources of Funding TCPC is investment grade rated by Fitch and Moody’s As of December 31, 2020, $ in millions Source Capacity Drawn Amount Available Pricing Maturity Operating Facility $ 300.0 (1) $ 120.4 $ 179.5 L + 2.00% (2) May-24 (2) Funding Facility II 200.0 (3) 36.0 164.0 L + 2.00%
Slide 16: Well-Covered and Consistent Dividend
Well-Covered and Consistent Dividend Net investment income of $0.35 per share Declared Q1 2021 dividend of $0.30 per share in Q4 2020 Payable on March 31, 2021 to holders of record Out-earned quarterly dividend of $0.30 per share paid as of March 17, 2021 on December 31, 2020 Consistent coverage of
Slide 17: Financial and Portfolio Overview
Financial and Portfolio Overview As of December 31, 2020 ▪ Total portfolio fair value of $1.6 billion diversified across 96 portfolio companies Diversified Portfolio with an ▪ Top five portfolio companies collectively represent just 18% of the total portfolio Emphasis on Non-Cyclical ▪ 89% invested
Slide 18: Appendix
Appendix BLACKROCK’ 18 TCP cour
Slide 19: Fourth Quarter and Full Year 2020 Highlights
Fourth Quarter and Full Year 2020 Highlights As of December 31, 2020, unless otherwise noted ▪ 4Q 2020 NAV increased 4.2%; NAV per share increased year over year Strong Portfolio Performance ▪ Credit quality of TCPC’s diversified portfolio remains strong, with non-accrual loans limited to just 0.5%
Slide 20: BlackRock TCP Capital Corp - Response to COVID-19
BlackRock TCP Capital Corp - Response to COVID-19 As of December 31, 2020 Our Team Our Portfolio Our Firm Business continuity procedures Leveraging our team’s more than 20 Thorough and ongoing analysis of continue to be fully operational – years’ experience investing across every company in our port
Slide 21: Investor Friendly Advisory Fee Structure
Investor Friendly Advisory Fee Structure BlackRock TCP Capital Corp. Average Externally Managed BDC(1) ◼ 1.5% up to 1.0x debt to equity; 1.0% above ◼ 1.50% - 1.75% on gross assets (up to 1.0x Base 1.0x debt to equity. Based on gross assets debt to equity; 1.0% above 1.0x debt to (less cash and cash
Slide 22: Financial Highlights
Financial Highlights For the Year Ended Audited ($ per share) 2020 2019 2018 2017 2016 2015 Net investment income 1.43 1.61 1.59 1.59 1.50 1.63 Net realized & unrealized gains (losses)(1) (0.20) (1.09) (0.82) (0.40) 0.00 (0.42) Net increase in net assets from operations 1.23 0.52 0.77 1.19 1.50 1.21
Slide 23: Portfolio Highlights
Portfolio Highlights For the Year Ended Asset Mix of the Investment Portfolio 2020 2019 2018 2017 2016 2015 (in thousands) Senior secured debt $ 1,444,804 $ 1,513,909 $ 1,471,583 $ 1,404,729 $ 1,248,888 $ 1,129,571 Junior debt - 21,285 43,526 41,008 - 965 Equity 184,760 114,313 82,177 68,796 66,082
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.) web.queries@computershare.com ▪ Bank of America Merrill Lynch www.computershare.com/investor ▪ JMP ▪ Keefe, Bruyette & Woods Corpor
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