BlackRock TCP Capital (TCPC) Q2 2024 earnings summary

Executive summary

• Adjusted net investment income was $0.38 per share in Q2 2024, exceeding the $0.34 dividend, with an annualized return on average equity of 14%.

• Net asset value per share declined to $10.20 at June 30, 2024, primarily due to higher non-accruals and realized/unrealized losses.

• Completed merger with BlackRock Capital Investment Corporation (BCIC) in March 2024, expanding the portfolio to $2.0 billion across 158 companies.

• Portfolio is 91% senior secured debt, with 81% in first lien assets and a weighted average yield of 13.7%.

• Board declared a Q3 2024 dividend of $0.34 per share, maintaining consistent dividend coverage.

Financial highlights

• Q2 2024 adjusted net investment income was $0.38 per share; total investment income was $71.5 million ($0.84 per share).

• Net realized losses were $35.5 million and net unrealized losses were $52 million, mainly from SellerX, Pluralsight, and Lithium.

• Net decrease in net assets from operations was $(51.3) million or $(0.60) per share in Q2 2024.

• Net investment income for Q2 2024 was $35.8 million, up from $27.6 million in Q2 2023.

• Net asset value per share declined to $10.20 at June 30, 2024, from $11.90 at December 31, 2023.

Outlook and guidance

• Management remains focused on disciplined capital deployment, maintaining a credit-first approach and supporting existing portfolio companies.

• Dividend support from the advisor remains for two more quarters, covering NII below $0.32 per share.

• Strong capital position and robust pipeline expected for the second half of 2024.

• Portfolio remains focused on less-cyclical businesses with robust downside analysis and strong covenants.

• Asset coverage ratio remains above the 150% regulatory minimum, supporting ongoing leverage and investment activity.