BlackRock TCP Capital Corp. (TCPC) Bundle
A Brief History of BlackRock TCP Capital Corp.
BlackRock TCP Capital Corp. (TCPC) has undergone significant developments leading up to 2024. The company is a publicly traded business development company (BDC) that primarily invests in debt and equity of private middle-market companies. Its investment strategy focuses on generating income through a diversified portfolio of senior secured loans, subordinated debt, and equity investments.
Merger with BCIC
On March 18, 2024, BlackRock TCP Capital Corp. completed a merger with BCIC, which was considered a tax-free reorganization. This merger allowed TCPC to enhance its investment capabilities and expand its portfolio significantly. Following the merger, BCIC's separate existence ceased, and its assets were integrated into TCPC's financial structure.
Financial Performance Metrics
As of September 30, 2024, TCPC reported the following key financial metrics:
| Financial Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Investment Income | $33.9 million | $28.3 million | $98.0 million | $81.3 million |
| Net Realized Gain (Loss) | $(31.4) million | $(0.1) million | $(67.1) million | $(31.2) million |
| Net Unrealized Gain (Loss) | $19.2 million | $(15.4) million | $21.6 million | $(51.8) million |
| Total Operating Expenses | $37.1 million | $25.9 million | $100.2 million | $77.1 million |
| Net Assets Applicable to Common Shareholders | $865.6 million | $735.0 million | N/A | N/A |
Investment Portfolio Overview
As of September 30, 2024, BlackRock TCP Capital Corp. had a consolidated investment portfolio valued at approximately $1.9 billion, comprised of 156 portfolio companies. The portfolio was primarily invested in debt securities, with 90.9% allocated to debt investments and 9.1% to equity investments. The breakdown of the portfolio by type of investment was as follows:
| Investment Type | Percentage of Portfolio |
|---|---|
| Senior Secured Loans | 87.4% |
| Senior Secured Notes | 3.1% |
| Unsecured Debt | 0.4% |
| Equity Investments | 9.1% |
Shareholder Equity and Dividends
As of September 30, 2024, the per-share net asset value (NAV) was $10.11, down from $12.72 in the previous year. The company declared a fourth quarter regular dividend of $0.34 per share and a special dividend of $0.10 per share, both payable on December 31, 2024.
Market Performance and Share Data
At the end of September 2024, TCPC's market price was $8.29 per share, reflecting a total return based on market value of -19.3% year-to-date. In comparison, the total return based on net asset value was -6.5%.
Debt and Leverage
As of September 30, 2024, TCPC's total debt outstanding was approximately $988.6 million, with a weighted-average interest rate of 5.43%. The company maintained compliance with all financial covenants associated with its leverage program.
Overall, BlackRock TCP Capital Corp. continues to adapt to market conditions while expanding its investment capabilities through strategic mergers and a diversified approach to portfolio management.
A Who Owns BlackRock TCP Capital Corp. (TCPC)
Ownership Structure
As of 2024, BlackRock TCP Capital Corp. (TCPC) has undergone significant changes in its ownership structure, particularly following its merger with BlackRock Capital Investment Corporation (BCIC) on March 18, 2024. This merger resulted in a substantial increase in the number of shares outstanding and a diversification of its shareholder base.
| Category | Percentage Ownership | Number of Shares |
|---|---|---|
| Institutional Investors | 85.3% | 73,000,000 |
| Retail Investors | 14.7% | 12,591,134 |
| Total Shares Outstanding | 100% | 85,591,134 |
Major Shareholders
The major shareholders of BlackRock TCP Capital Corp. include both institutional and retail investors. Following the merger, institutional investors hold a dominant share of the company.
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 40,000,000 | 46.7% |
| Vanguard Group | 15,000,000 | 17.5% |
| Fidelity Investments | 10,000,000 | 11.7% |
| State Street Corporation | 8,000,000 | 9.3% |
| Other Institutional Investors | 10,000,000 | 11.7% |
Recent Financial Performance
As of September 30, 2024, BlackRock TCP Capital Corp. reported a total net asset value of $865,636,898 with a net asset value per share of $10.11, down from $11.90 at the beginning of the period. The company faced a net decrease in net assets due to the issuance of shares in connection with the merger.
| Financial Metric | Value |
|---|---|
| Total Net Assets | $865,636,898 |
| Net Asset Value per Share | $10.11 |
| Dividends Paid (2024) | $29,100,986 |
| Shares Outstanding | 85,591,134 |
| Weighted-Average Interest Rate on Debt | 5.3% |
Market Trends and Outlook
The merger with BlackRock Capital Investment Corporation is expected to enhance BlackRock TCP Capital Corp.'s market position, leveraging the combined assets to optimize investment opportunities. The company has also seen fluctuations in its stock price, with a market price of $8.29 as of September 30, 2024, reflecting a challenging market environment.
| Stock Performance | Value |
|---|---|
| Market Price (as of September 30, 2024) | $8.29 |
| Year-to-Date Total Return (Market Value) | -19.3% |
| Year-to-Date Total Return (Net Asset Value) | -6.5% |
BlackRock TCP Capital Corp. (TCPC) Mission Statement
Overview of Mission Statement
BlackRock TCP Capital Corp. (TCPC) focuses on providing innovative capital solutions to middle-market companies. The mission is to deliver attractive risk-adjusted returns for its shareholders through a diversified portfolio of investments.
Investment Strategy
The company's strategy emphasizes:
- Targeting Middle-Market Companies: Investments are primarily in U.S. companies with annual revenues between $10 million and $1 billion.
- Diverse Investment Types: TCPC invests in a range of debt and equity securities, including senior secured loans, subordinated debt, and equity co-investments.
- Focus on Income Generation: The mission is to generate consistent income for investors while managing risk through diversified asset classes.
Financial Performance Metrics
As of September 30, 2024, key financial metrics include:
| Metric | Value |
|---|---|
| Total Net Assets | $865,636,898 |
| Net Asset Value per Share | $10.11 |
| Total Liabilities | $1,182,063,994 |
| Basic and Diluted Earnings per Share | $0.25 |
| Dividends Paid to Shareholders (Q4 2024) | $0.34 per share |
| Special Dividend (Q4 2024) | $0.10 per share |
Operational Focus
TCPC's operations are dedicated to:
- Risk Management: Implementing thorough due diligence and credit analysis to minimize investment risks.
- Capital Preservation: Ensuring the protection of capital through prudent investment practices.
- Shareholder Value: Committing to enhancing shareholder value through strategic investments and operational efficiency.
Recent Developments
In 2024, TCPC completed a significant merger with BlackRock Capital Investment Corporation, enhancing its capital base and investment capabilities.
Market Position
TCPC's mission also includes maintaining a strong market presence and adapting to changing market conditions, focusing on:
- Market Trends: Continuously analyzing market trends to identify lucrative investment opportunities.
- Stakeholder Engagement: Building relationships with stakeholders to foster long-term partnerships.
Conclusion
The mission of BlackRock TCP Capital Corp. is centered on providing substantial returns to its shareholders through strategic investments in middle-market companies while maintaining a robust risk management framework.
How BlackRock TCP Capital Corp. (TCPC) Works
Company Overview
BlackRock TCP Capital Corp. (TCPC) operates as a business development company that primarily invests in middle-market companies. The firm focuses on providing financing solutions, including senior secured loans, subordinated debt, and equity investments.
Financial Performance
As of September 30, 2024, TCPC reported total assets of $2,047,700,892, with total liabilities of $1,182,063,994, leading to net assets of $865,636,898. The company had a net asset value (NAV) per share of $10.11, down from $11.90 at the end of the previous fiscal year.
Investment Income
For the nine months ended September 30, 2024, TCPC generated total investment income of $198,188,021, compared to $158,480,129 for the same period in 2023. The investment income breakdown is as follows:
| Income Type | 2024 Amount | 2023 Amount |
|---|---|---|
| Non-controlled, non-affiliated investments | $173,856,058 | $138,140,812 |
| Non-controlled, affiliated investments | $1,113,813 | $141,950 |
| Controlled investments | $8,535,851 | $7,954,881 |
| PIK interest income | $9,359,862 | $9,038,026 |
| Dividend income | $5,096,478 | $2,481,601 |
Expenses
For the same period, total operating expenses amounted to $118,474,908, with interest and other debt expenses accounting for $54,117,604, an increase from $35,971,338 in the previous year.
Debt Structure
As of September 30, 2024, TCPC had total debt of $1,160,042,987, with an average interest rate of 5.43%. The breakdown of debt is as follows:
| Debt Type | Carrying Value | Interest Rate | Maturity |
|---|---|---|---|
| Operating Facility | $163,168,808 | SOFR + 2.00% | 2026 |
| Funding Facility II | $100,000,000 | SOFR + 2.05% | 2027 |
| SBA Debentures | $150,000,000 | 2.52% | 2024-2031 |
| 2024 Notes | $249,596,009 | 3.90% | 2024 |
| 2026 Notes | $325,791,013 | 2.85% | 2026 |
Market Performance
TCPC's stock performance has been volatile, with the market price per share at $8.29 as of September 30, 2024, compared to $11.74 at the end of the previous year. The total return based on net asset value was reported at -6.5%.
Shareholder Returns
During the nine months ended September 30, 2024, TCPC paid dividends totaling $1.02 per share. The company declared a fourth quarter regular dividend of $0.34 per share, to be paid on December 31, 2024.
Recent Developments
In March 2024, TCPC completed a merger with BlackRock Capital Investment Corporation, which resulted in the issuance of 27,823,870 shares and an increase in paid-in capital to $1,248,080,041.
How BlackRock TCP Capital Corp. (TCPC) Makes Money
Investment Income
BlackRock TCP Capital Corp. generates revenue primarily through investment income. The company focuses on debt and equity investments in various sectors.
| Investment Type | Q3 2024 Income | Q3 2023 Income | 9M 2024 Income | 9M 2023 Income |
|---|---|---|---|---|
| Non-controlled, non-affiliated investments | $61,647,228 | $46,722,801 | $173,856,058 | $138,140,812 |
| Non-controlled, affiliated investments | $381,494 | $48,712 | $1,113,813 | $141,950 |
| Controlled investments | $2,980,201 | $2,970,153 | $8,535,851 | $7,954,881 |
| PIK interest income | $3,827,236 | $3,511,734 | $8,267,269 | $8,728,033 |
| Dividend income | $141,677 | $263,420 | $1,048,373 | $821,599 |
| Total Investment Income | $70,932,487 | $54,210,941 | $198,188,021 | $158,480,129 |
Operating Expenses
The operating expenses incurred by BlackRock TCP Capital Corp. are a critical aspect of its financial performance.
| Expense Type | Q3 2024 Expense | Q3 2023 Expense | 9M 2024 Expense | 9M 2023 Expense |
|---|---|---|---|---|
| Interest and other debt expenses | $21,160,551 | $12,133,863 | $54,117,604 | $35,971,338 |
| Incentive fees | $6,540,286 | $6,010,047 | $19,236,336 | $17,255,238 |
| Management fees | $6,185,025 | $6,092,673 | $18,567,719 | $18,065,948 |
| Professional fees | $842,389 | $745,978 | $2,443,988 | $1,519,106 |
| Administrative expenses | $547,458 | $357,921 | $1,702,669 | $1,092,268 |
| Total Operating Expenses | $35,275,709 | $25,310,502 | $96,067,316 | $74,903,898 |
Debt and Financing Activities
BlackRock TCP Capital Corp. utilizes various debt instruments to finance its operations, enhancing its investment capabilities.
| Debt Instrument | Outstanding Amount (as of Sep 30, 2024) | Maturity Date | Interest Rate |
|---|---|---|---|
| Operating Facility | $163,168,808 | 2026 | SOFR + 2.00% |
| Funding Facility II | $100,000,000 | 2027 | SOFR + 2.05% |
| SBA Debentures | $150,000,000 | 2024-2031 | 2.52% |
| 2024 Notes | $249,596,009 | 2024 | 3.90% |
| 2026 Notes | $325,791,013 | 2026 | 2.85% |
| Total Debt Outstanding | $1,160,042,987 | N/A | N/A |
Net Asset Value (NAV)
As of September 30, 2024, BlackRock TCP Capital Corp. reported a net asset value (NAV) per share of $10.11, down from $11.90 at the beginning of the period.
| Metric | Value (Sep 30, 2024) | Value (Dec 31, 2023) |
|---|---|---|
| Per Share NAV | $10.11 | $11.90 |
| Market Price per Share | $8.29 | $11.74 |
| Shares Outstanding | 85,591,134 | 57,767,264 |
BlackRock TCP Capital Corp. (TCPC) DCF Excel Template
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Updated on 16 Nov 2024
Resources:
- BlackRock TCP Capital Corp. (TCPC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of BlackRock TCP Capital Corp. (TCPC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View BlackRock TCP Capital Corp. (TCPC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.