[First Quarter 2025 Announcement](index=1&type=section&id=First%20Quarter%202025%20Announcement) [Key Financial Results and Dividends Declared](index=1&type=section&id=Key%20Financial%20Results%20and%20Dividends%20Declared) The company reported Q1 2025 net investment income and declared Q2 regular and special dividends Q1 2025 Financial Results and Q2 2025 Declared Dividends | Metric | Q1 2025 | Q2 2025 (Declared) | | :----- | :------ | :----------------- | | Net Investment Income (GAAP) per share | $0.38 | - | | Adjusted Net Investment Income per share | $0.36 | - | | Regular Dividend per share | - | $0.25 | | Special Dividend per share | - | $0.04 | - BlackRock TCP Capital Corp announced its financial results for the first quarter ended March 31, 2025, and declared a second quarter **regular dividend of $0.25 per share** and a **special dividend of $0.04 per share**, both payable on June 30, 2025[1](index=1&type=chunk)[4](index=4&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management noted portfolio strengthening, stable income and NAV, and a disciplined investment approach amid uncertainty - Investments on **non-accrual loans declined to 4.4%** from 5.6% of the portfolio at fair value, reflecting the exit of four non-accrual investments, indicating portfolio stabilization[3](index=3&type=chunk) - Adjusted net investment income and net asset value were stable with last quarter's levels at **$0.36 per share** and **$9.18 per share**, respectively[3](index=3&type=chunk) - Management believes the company has a disciplined plan to position the portfolio to perform well in all market environments, despite uncertain global macroeconomic factors[4](index=4&type=chunk) [Financial Highlights](index=1&type=section&id=FINANCIAL%20HIGHLIGHTS) [Summary of Key Financial Metrics](index=1&type=section&id=Summary%20of%20Key%20Financial%20Metrics) Q1 2025 saw stable net investment income, a slight NAV decrease, and improved portfolio quality with fewer non-accrual loans Key Financial Metrics Comparison | Metric | March 31, 2025 | December 31, 2024 | Change | | :----------------------------------- | :------------- | :---------------- | :----- | | Net Asset Value per share | $9.18 | $9.23 | -$0.05 | | Net Increase (Decrease) in Net Assets from Operations (per share) | $0.25 | -$0.45 | +$0.70 | | Net Leverage | 1.13x | 1.14x | -0.01x | | Debt Investments on Non-Accrual (Fair Value) | 4.4% | 5.6% | -1.2% | | Debt Investments on Non-Accrual (Cost) | 12.6% | 14.4% | -1.8% | Q1 2025 Investment Activity | Investment Activity (Q1 2025) | Amount (approx.) | | :---------------------------- | :--------------- | | Total Investment Acquisitions | $66.0 million | | Total Investment Dispositions | $84.9 million | [Non-GAAP Financial Measures Explanation](index=2&type=section&id=Non-GAAP%20Financial%20Measures%20Explanation) The company uses adjusted non-GAAP metrics to exclude merger-related purchase accounting effects for better performance comparability - The company provides non-GAAP financial measures to enhance investors' understanding of its business and performance, particularly regarding the impact of purchase discount accounting from the Merger[6](index=6&type=chunk)[7](index=7&type=chunk) - **Adjusted net investment income:** Excludes the amortization of purchase accounting discount from GAAP net investment income[6](index=6&type=chunk) - **Adjusted net realized and unrealized gain (loss):** Excludes unrealized appreciation resulting from the purchase discount and its corresponding reversal from GAAP net realized and unrealized gain (loss)[8](index=8&type=chunk) - **Adjusted net increase (decrease) in net assets resulting from operations:** Calculates net increase (decrease) in net assets resulting from operations based on Adjusted net investment income and Adjusted net realized and unrealized gain (loss)[8](index=8&type=chunk) [Portfolio and Investment Activity](index=4&type=section&id=PORTFOLIO%20AND%20INVESTMENT%20ACTIVITY) [Portfolio Composition](index=4&type=section&id=Portfolio%20Composition) The ~$1.8 billion portfolio is concentrated in senior secured debt, primarily first lien and floating rate investments Portfolio Composition as of March 31, 2025 | Metric | As of March 31, 2025 | | :-------------------------------- | :------------------- | | Total Fair Value of Portfolio | ~$1.8 billion | | Number of Portfolio Companies | 146 | | Senior Secured Debt | 90.0% | | First Lien Debt | 82.5% | | Equity Positions | 9.9% | | Floating Rate Debt Investments | 94.0% | | Floating Rate Debt with Interest Rate Floors | 97.9% | [Investment Activity and Yields](index=4&type=section&id=Investment%20Activity%20and%20Yields) Q1 2025 featured net dispositions of $18.9 million, with a total debt portfolio yield of 12.2% Q1 2025 Investment Activity Breakdown | Investment Activity (Q1 2025) | Amount (approx.) | Percentage of Total Acquisitions | | :---------------------------- | :--------------- | :------------------------------- | | Total Investments Acquired | $66.0 million | - | | New Investments (2 companies) | - | - | | Existing Investments (9 companies) | - | - | | Senior Secured Loans Acquired | $60.5 million | 91.7% | | Equity Investments Acquired | $5.5 million | 8.3% | | Proceeds from Sales/Repayments | $84.9 million | - | Weighted Average Effective Yields | Yield Metric | March 31, 2025 | December 31, 2024 | Change | | :------------------------------------ | :------------- | :---------------- | :----- | | Weighted Average Annual Effective Yield (Debt Portfolio) | 12.2% | 12.4% | -0.2% | | Weighted Average Annual Effective Yield (Total Portfolio) | 10.8% | 11.1% | -0.3% | | Weighted Average Effective Yield (New Investments Q1 2025) | 11.4% | - | - | | Weighted Average Effective Yield (Exited Investments Q1 2025) | 11.2% | - | - | [Non-Accrual Status](index=4&type=section&id=Non-Accrual%20Status) Non-accrual loans decreased as a percentage of the portfolio at both fair value and cost, indicating improved credit quality Non-Accrual Debt Investments | Non-Accrual Status | March 31, 2025 | December 31, 2024 | Change | | :--------------------------------- | :------------- | :---------------- | :----- | | Debt Investments on Non-Accrual (Fair Value) | 4.4% | 5.6% | -1.2% | | Debt Investments on Non-Accrual (Cost) | 12.6% | 14.4% | -1.8% | | Number of Portfolio Companies on Non-Accrual | 8 | - | - | [Consolidated Results of Operations](index=5&type=section&id=CONSOLIDATED%20RESULTS%20OF%20OPERATIONS) [Investment Income](index=5&type=section&id=Investment%20Income) Total investment income for Q1 2025 was approximately $55.9 million, or $0.66 per share Q1 2025 Total Investment Income | Metric | Q1 2025 (Amount) | Q1 2025 (Per Share) | | :------------------------------------------------ | :--------------- | :------------------ | | Total Investment Income | ~$55.9 million | $0.66 | - Investment income included **$0.03 per share** from prepayment premiums and related accelerated original issue discount and exit fee amortization[14](index=14&type=chunk) - Included **$0.05 per share** from recurring portfolio investment original issue discount and exit fee amortization[14](index=14&type=chunk) - Included **$0.08 per share** from interest income paid in kind (PIK) and **$0.04 per share** in dividend income[14](index=14&type=chunk) [Operating Expenses](index=5&type=section&id=Operating%20Expenses) Total operating expenses were approximately $23.7 million, or $0.28 per share, after a $1.8 million management fee waiver Q1 2025 Operating Expenses | Metric | Q1 2025 (Amount) | Q1 2025 (Per Share) | | :-------------------------------- | :--------------- | :------------------ | | Total Operating Expenses (after waiver) | ~$23.7 million | $0.28 | | Interest and Other Debt Expenses | $17.1 million | $0.20 | | Base Management Fees | $5.5 million | $0.06 | | Management Fee Waiver | $1.8 million | $0.02 | - No incentive compensation was accrued for Q1 2025 as the company's cumulative total return did not exceed the total return hurdle[15](index=15&type=chunk) [Net Investment Income and Realized/Unrealized Gains (Losses)](index=5&type=section&id=Net%20Investment%20Income%20and%20Realized%2FUnrealized%20Gains%20(Losses)) Net investment income was $32.2 million, while a net realized loss was partially offset by a net unrealized gain Q1 2025 Net Investment Income and Gains/Losses | Metric | Q1 2025 (Amount) | Q1 2025 (Per Share) | Q4 2024 (Per Share) | | :------------------------------------------------ | :--------------- | :------------------ | :------------------ | | Net Investment Income | ~$32.2 million | $0.38 | $0.38 (Adjusted) | | Net Realized Loss | $40.9 million | $0.48 | - | | Net Unrealized Gain | $29.6 million | $0.35 | - | | Net Increase in Net Assets from Operations | $20.9 million | $0.25 | -$0.45 | - Net realized loss primarily comprised of **$24.5 million from Securus**, **$7.6 million from CIBT**, and **$6.7 million from McAfee** dispositions[16](index=16&type=chunk) - Net unrealized gain primarily reflects **$23.9 million reversal from Securus**, **$7.5 million from CIBT**, and **$5.3 million from McAfee** dispositions, along with **$10.8 million gain on Job and Talent** and **$5.3 million gain on AutoAlert**, partially offset by other unrealized losses[16](index=16&type=chunk) [Liquidity and Capital Resources](index=6&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) [Liquidity and Debt Structure](index=6&type=section&id=Liquidity%20and%20Debt%20Structure) Available liquidity was approximately $628.9 million, with total debt outstanding of $1.106 billion Available Liquidity as of March 31, 2025 | Liquidity Component (March 31, 2025) | Amount (approx.) | | :----------------------------------- | :--------------- | | Available Capacity under Leverage Program | $530.0 million | | Cash and Cash Equivalents | $99.1 million | | Payable for Investments Purchased | -$0.2 million | | **Total Available Liquidity** | **$628.9 million** | Debt Metrics as of March 31, 2025 | Debt Metric (March 31, 2025) | Amount | | :--------------------------- | :------------- | | Total Debt Outstanding | $1,106,203,300 | | Weighted-Average Interest Rate | 5.17% | Debt Facilities and Notes Outstanding | Debt Facility | Maturity | Rate | Carrying Value | Available Capacity | Total Capacity | | :-------------------- | :------- | :--------- | :------------- | :----------------- | :------------- | | Operating Facility | 2029 | SOFR+2.00% | $120,000,000 | $180,000,000 | $300,000,000 | | Funding Facility II | 2027 | SOFR+2.05% | $100,000,000 | $100,000,000 | $200,000,000 | | Merger Sub Facility | 2028 | SOFR+2.00% | $25,000,000 | $240,000,000 | $265,000,000 | | SBA Debentures | 2025-2031 | 2.45% | $122,000,000 | $10,000,000 | $132,000,000 | | 2025 Notes ($92M par) | 2025 | Fixed/Variable | $92,000,000 | — | $92,000,000 | | 2026 Notes ($325M par) | 2026 | 2.85% | $325,298,791 | — | $325,298,791 | | 2029 Notes ($325M par) | 2029 | 6.95% | $321,904,509 | — | $321,904,509 | [Shareholder Return Programs (DRIP & Repurchase Plan)](index=6&type=section&id=Shareholder%20Return%20Programs%20(DRIP%20%26%20Repurchase%20Plan)) The company utilized its dividend reinvestment plan and share repurchase program during the quarter - The new dividend reinvestment plan (DRIP), effective March 18, 2024, allows shareholders to opt-in for reinvestment of cash distributions; approximately **$1.4 million was reinvested in Q1 2025**[19](index=19&type=chunk) Q1 2025 Share Repurchase Plan Activity | Share Repurchase Plan (Q1 2025) | Value | | :------------------------------ | :------ | | Shares Repurchased | 3,150 | | Price Per Share (Weighted Avg.) | $8.54 | | Total Cost (including broker fees) | $26,915 | [Recent Developments](index=7&type=section&id=RECENT%20DEVELOPMENTS) [Post-Quarter Investment and Share Repurchase Activity](index=7&type=section&id=Post-Quarter%20Investment%20and%20Share%20Repurchase%20Activity) Subsequent to quarter-end, the company invested $43.6 million and repurchased 39,500 shares Post-Quarter Investment Activity (April 1 - May 7, 2025) | Post-Quarter Investment Activity (Apr 1 - May 7, 2025) | Value | | :--------------------------------------------------- | :------------ | | Investments Made (primarily two senior secured loans) | ~$43.6 million | | Combined Effective Yield | ~10.0% | - The Company Repurchase Plan was re-approved on April 29, 2025, to be in effect through April 30, 2026, for an approved **$50.0 million repurchase amount**[23](index=23&type=chunk) Post-Quarter Share Repurchase Activity (April 1 - May 7, 2025) | Post-Quarter Share Repurchase Activity (Apr 1 - May 7, 2025) | Value | | :--------------------------------------------------------- | :---------- | | Shares Repurchased | 39,500 | | Weighted Average Price | $6.70 | | Total Cost | $264,706 | [Operating Facility Amendment and Q2 Dividend Declaration](index=7&type=section&id=Operating%20Facility%20Amendment%20and%20Q2%20Dividend%20Declaration) The company amended its operating facility and the Board declared Q2 regular and special dividends - On May 2, 2025, an amendment to the Operating Facility clarified that "control" does not include "negative" control or "blocking" rights and waived a default related to a subsidiary guarantor[24](index=24&type=chunk) Q2 2025 Dividend Declaration (May 8, 2025) | Q2 2025 Dividend Declaration (May 8, 2025) | Per Share Amount | | :--------------------------------------- | :--------------- | | Regular Dividend | $0.25 | | Special Dividend | $0.04 | | Payable Date | June 30, 2025 | | Record Date | June 16, 2025 | [Conference Call and Webcast Information](index=7&type=section&id=CONFERENCE%20CALL%20AND%20WEBCAST) [Details for Q1 2025 Earnings Call](index=7&type=section&id=Details%20for%20Q1%202025%20Earnings%20Call) The company hosted its Q1 2025 earnings call on May 8, 2025, providing dial-in and webcast details - Conference call held on **Thursday, May 8, 2025, at 12:00 p.m. Eastern Time** (9:00 a.m. Pacific Time)[26](index=26&type=chunk) - Dial-in: (833) 470-1428 (US) / (404) 975-4839 (International), Access Code: 912158[26](index=26&type=chunk) - Webcast available in the investor relations section of www.tcpcapital.com, with an archived replay available until May 15, 2025[26](index=26&type=chunk) [Consolidated Financial Statements](index=8&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statements of Assets and Liabilities](index=8&type=section&id=Consolidated%20Statements%20of%20Assets%20and%20Liabilities) The company's total assets decreased slightly to $1.899 billion, with net assets per share at $9.18 Consolidated Statements of Assets and Liabilities Summary | Metric | March 31, 2025 | December 31, 2024 | | :---------------------- | :--------------- | :---------------- | | Total Investments (at fair value) | $1,769,273,768 | $1,794,758,336 | | Cash and Cash Equivalents | $99,114,852 | $91,589,702 | | Total Assets | $1,898,903,559 | $1,923,031,363 | | Total Liabilities | $1,117,584,635 | $1,137,907,696 | | Net Assets | $781,318,924 | $785,123,667 | | Net Assets per Share | $9.18 | $9.23 | [Consolidated Statements of Operations](index=9&type=section&id=Consolidated%20Statements%20of%20Operations) The company reported a net increase in net assets from operations of $20.9 million, or $0.25 per share Consolidated Statements of Operations Summary | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------------------------------------------ | :-------------------------------- | :-------------------------------- | | Total Investment Income | $55,888,915 | $55,729,309 | | Total Operating Expenses (after waiver) | $23,686,246 | $27,468,036 | | Net Investment Income | $32,202,669 | $28,261,273 | | Net Realized Gain (Loss) | $(40,917,338) | $(168,077) | | Net Change in Unrealized Appreciation (Depreciation) | $29,609,257 | $(23,036,055) | | Net Realized and Unrealized Gain (Loss) | $(11,308,081) | $(23,204,132) | | Net Increase (Decrease) in Net Assets from Operations | $20,894,588 | $5,057,141 | | Basic and Diluted Earnings (Loss) per Share | $0.25 | $0.08 | [About the Company and Disclaimers](index=10&type=section&id=About%20the%20Company%20and%20Disclaimers) [About BlackRock TCP Capital Corp.](index=10&type=section&id=ABOUT%20BLACKROCK%20TCP%20CAPITAL%20CORP.) BlackRock TCP Capital Corp is a BDC focused on direct lending to middle-market companies to achieve high total returns - BlackRock TCP Capital Corp (NASDAQ: TCPC) is a specialty finance company and Business Development Company (BDC) focused on direct lending to middle-market and small businesses[31](index=31&type=chunk) - The company's investment objective is to achieve **high total returns** through current income and capital appreciation, with an emphasis on principal protection[31](index=31&type=chunk) [Forward-Looking Statements](index=10&type=section&id=FORWARD-LOOKING%20STATEMENTS) This report contains forward-looking statements that involve risks and uncertainties, and actual results may differ materially - This press release contains forward-looking statements based on estimates, projections, beliefs, and assumptions of management, which are not guarantees of future performance and involve risks and uncertainties[33](index=33&type=chunk) - Actual results could differ materially due to factors such as changes in general economic conditions, financing terms, interest rates, availability of transactions, and regulatory changes[33](index=33&type=chunk) - Investors should review the 'Risk Factors' section of the company's Form 10-K for the year ended December 31, 2024, and subsequent periodic filings with the SEC for detailed information[33](index=33&type=chunk) [Contact Information](index=11&type=section&id=CONTACT) Provides contact details for investor relations inquiries for BlackRock TCP Capital Corp - For investor relations inquiries, contact Michaela Murray at (310) 566-1094 or investor.relations@tcpcapital.com[35](index=35&type=chunk)

Financial Performance - Adjusted Net Investment Income (NII) was $0.36 per share in Q1 2025, exceeding the regular dividend of $0.25 per share[6] - The annualized adjusted NII Return on Equity (ROE) for Q1 2025 was 15.4%[6] - A Q2 2025 regular dividend of $0.25 per share and a special dividend of $0.04 per share were declared[6] - The dividend coverage ratio in Q1 2025 was 144%[6] Portfolio Composition and Activity - The total portfolio fair value was $1.8 billion, diversified across 146 companies[6] - 90% of the portfolio was invested in senior secured debt, with 83% being 1st lien[6] - The weighted average yield of the performing debt portfolio was 12.2%[6] - Q1 2025 saw total acquisitions of $66 million and dispositions of $85 million[6] Leverage and Liquidity - The company has a diverse leverage program totaling $1.6 billion, with well-laddered maturities[6] - 67% of the outstanding leverage was unsecured as of March 31, 2025[6] - Available liquidity was $629 million, including $530 million of available borrowing capacity[6] - The net regulatory leverage ratio was 1.13x, within the target range of 0.9x - 1.20x[6]

Part I. Financial Information [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The consolidated financial statements present BlackRock TCP Capital Corp.'s financial position as of March 31, 2025, and December 31, 2024, along with its operational results and cash flows for the first quarters of 2025 and 2024 [Consolidated Statements of Assets and Liabilities](index=3&type=section&id=Consolidated%20Statements%20of%20Assets%20and%20Liabilities) As of March 31, 2025, total assets decreased slightly to $1.90 billion from $1.92 billion at year-end 2024, primarily due to a decrease in the fair value of investments Consolidated Balance Sheet Summary | Metric | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Investments, at fair value** | $1,769,273,768 | $1,794,758,336 | | **Total Assets** | $1,898,903,559 | $1,923,031,363 | | **Total Liabilities** | $1,117,584,635 | $1,137,907,696 | | **Total Net Assets** | $781,318,924 | $785,123,667 | | **Net Assets Per Share** | $9.18 | $9.23 | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) For the three months ended March 31, 2025, total investment income was $55.9 million, nearly flat year-over-year, with net income from operations surging to $20.9 million due to lower expenses and reduced losses Quarterly Operating Results Summary | Metric | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | **Total Investment Income** | $55,888,915 | $55,729,309 | | **Total Operating Expenses** | $23,686,246 | $27,468,036 | | **Net Investment Income** | $32,202,669 | $28,261,273 | | **Net Realized and Unrealized Gain (Loss)** | $(11,308,081) | $(23,204,132) | | **Net Increase in Net Assets** | $20,894,588 | $5,057,141 | | **Earnings Per Share (Basic and Diluted)** | $0.25 | $0.08 | - Operating expenses in Q1 2025 were reduced by a management fee waiver of **$1,827,948** and the absence of incentive fees, which were **$5,880,378** in Q1 2024[10](index=10&type=chunk) [Consolidated Statements of Changes in Net Assets](index=5&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Net%20Assets) Net assets decreased by $3.8 million from $785.1 million to $781.3 million, primarily due to dividends paid to shareholders partially offset by net income from operations Reconciliation of Net Assets (Q1 2025) | Description | Amount | | :--- | :--- | | **Balance at December 31, 2024** | **$785,123,667** | | Repurchase of common stock | $(26,915) | | Net investment income | $32,202,669 | | Net realized and unrealized loss | $(11,308,081) | | Dividends paid to shareholders | $(24,672,416) | | **Balance at March 31, 2025** | **$781,318,924** | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The company generated $52.5 million in cash from operating activities, a significant increase from the prior year, while cash used in financing activities was $45.0 million, ending the period with $99.1 million in cash Quarterly Cash Flow Summary | Cash Flow Activity | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $52,504,101 | $33,412,598 | | **Net Cash from Financing Activities** | $(44,978,951) | $(25,081,834) | | **Net Increase in Cash** | $7,525,150 | $8,330,764 | | **Cash at End of Period** | $99,114,852 | $120,572,710 | [Consolidated Schedule of Investments](index=8&type=section&id=Consolidated%20Schedule%20of%20Investments) The total investment portfolio had a fair value of $1.77 billion, primarily concentrated in debt investments (90.1%), diversified across 146 companies, with a weighted average effective yield of 12.2% Portfolio Composition as of March 31, 2025 | Investment Type | Fair Value | % of Total Investments | | :--- | :--- | :--- | | Debt Investments | $1,594,279,600 | 90.1% | | Equity Securities | $174,994,168 | 9.9% | | **Total Investments** | **$1,769,273,768** | **100.0%** | - The portfolio is invested across **146 companies** with an average investment size of approximately **$12.1 million** at fair value[302](index=302&type=chunk) - Debt and preferred equity investments in eight portfolio companies were on non-accrual status, representing **4.4%** of the portfolio at fair value and **12.6%** at cost[305](index=305&type=chunk) [Notes to Consolidated Financial Statements](index=37&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section details accounting policies, the BCIC merger's treatment as an asset acquisition, debt facilities, management fees, and related-party transactions - The March 18, 2024 merger with BCIC was accounted for as an asset acquisition under ASC 805, with consideration allocated to acquired assets and liabilities based on their relative fair values[230](index=230&type=chunk)[233](index=233&type=chunk) - Effective upon the merger closing, the base management fee was reduced from **1.50% to 1.25%** on assets up to 200% of NAV, and the Advisor voluntarily waived one-third of its management fee for the first three quarters of 2025[144](index=144&type=chunk) - As of March 31, 2025, the company had total debt outstanding of **$1.11 billion** with an additional **$530.0 million** available under its various credit facilities[154](index=154&type=chunk) - The company has unfunded commitments to portfolio companies totaling **$134.7 million** as of March 31, 2025[193](index=193&type=chunk)[195](index=195&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=81&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion provides an overview of Q1 2025 financial results, highlighting stable investment income, increased net investment income due to lower expenses, and strong liquidity, while detailing the impact of the BCIC merger and non-GAAP adjustments [Portfolio and Investment Activity](index=92&type=section&id=Portfolio%20and%20Investment%20Activity) In Q1 2025, the company invested $66.0 million and received $84.9 million from sales and repayments, maintaining a portfolio fair value of $1.77 billion primarily in senior secured loans with a 12.2% effective yield Q1 2025 Investment Activity | Activity | Amount | | :--- | :--- | | **Investments Made** | $66.0 million | | **Proceeds from Sales/Repayments** | $84.9 million | - As of March 31, 2025, **82.6%** of total assets were invested in qualifying assets, satisfying the BDC requirement of at least **70%**[276](index=276&type=chunk) - The portfolio's largest industry concentration was Internet Software and Services (**14.0%**), followed by Software (**12.9%**) and Diversified Financial Services (**11.2%**)[305](index=305&type=chunk) [Results of Operations](index=93&type=section&id=Results%20of%20Operations) For Q1 2025, net investment income rose to $32.2 million due to decreased operating expenses, including no incentive fees and a management fee waiver, leading to a net increase in net assets of $20.9 million despite realized and unrealized losses - The increase in net investment income was primarily driven by a decrease in incentive fee expense and a management fee waiver, partially offset by higher interest expense from debt assumed in the Merger[309](index=309&type=chunk)[310](index=310&type=chunk) - Net realized loss of **$(40.9) million** was primarily from the dispositions of investments in Securus, CIBT, and McAfee[311](index=311&type=chunk) - Net change in unrealized appreciation was **$29.6 million**, largely due to the reversal of previously recognized unrealized losses on dispositions and unrealized gains on investments like Job and Talent and AutoAlert[312](index=312&type=chunk) [Liquidity and Capital Resources](index=98&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, the company had $99.1 million in cash, $1.1 billion in total debt, and $530.0 million available for borrowing, maintaining a strong asset coverage ratio of 179.0% - The company's asset coverage ratio was **179.0%** as of March 31, 2025, exceeding the **150%** regulatory minimum[331](index=331&type=chunk) - The company has exemptive relief from the SEC to exclude SBA Debentures from its asset coverage test, providing increased borrowing flexibility[332](index=332&type=chunk) - During Q1 2025, the company repurchased **3,150 shares** for a total cost of **$26,915** under its share repurchase plan[326](index=326&type=chunk) [Supplemental Non-GAAP Information](index=97&type=section&id=Supplemental%20Non-GAAP%20Information) The company provides non-GAAP financial measures, such as 'Adjusted net investment income,' to exclude purchase discount accounting effects from the BCIC merger, with GAAP NII at $32.2 million ($0.38/share) and Adjusted NII at $30.7 million ($0.36/share) for Q1 2025 GAAP vs. Non-GAAP Results (Q1 2025) | Metric | GAAP Amount | GAAP Per Share | Adjusted Amount | Adjusted Per Share | | :--- | :--- | :--- | :--- | :--- | | **Net Investment Income** | $32,202,669 | $0.38 | $30,700,296 | $0.36 | | **Net Realized/Unrealized Gain (Loss)** | $(11,308,081) | $(0.13) | $(9,805,708) | $(0.11) | - These non-GAAP measures are provided to enhance investors' understanding of performance by excluding the non-cash accounting impacts of the BCIC merger[321](index=321&type=chunk)[322](index=322&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=107&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is primarily exposed to interest rate risk, with 94.0% of debt investments being floating-rate, where a 100 basis point increase in base rates would increase annual net investment income by approximately $13.1 million - As of March 31, 2025, **94.0%** of the company's debt investments bore interest at floating rates, making net investment income sensitive to changes in market interest rates[359](index=359&type=chunk) Interest Rate Sensitivity Analysis (Annual Impact) | Basis Point Change | Change in Net Investment Income | Change in NII Per Share | | :--- | :--- | :--- | | +300 bps | $39,391,880 | $0.46 | | +200 bps | $26,261,253 | $0.31 | | +100 bps | $13,130,627 | $0.15 | | -100 bps | $(13,130,627) | $(0.15) | | -200 bps | $(26,014,014) | $(0.31) | | -300 bps | $(37,600,879) | $(0.44) | [Controls and Procedures](index=108&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of the reporting period, with no material changes to internal control over financial reporting identified during the quarter - Based on an evaluation as of the end of the period covered by the report, the CEO and CFO concluded that the company's disclosure controls and procedures were effective[363](index=363&type=chunk) - There were no changes in internal controls over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, such controls[364](index=364&type=chunk) Part II. Other Information [Legal Proceedings](index=109&type=section&id=Item%201.%20Legal%20Proceedings) The company is a defendant in a lawsuit filed in September 2023 related to a third-party sponsored collateralized loan obligation, seeking approximately $15 million plus interest and fees, with the outcome uncertain - The company was named as a defendant in a lawsuit filed on September 13, 2023, concerning a third-party sponsored collateralized loan obligation[366](index=366&type=chunk) - The suit seeks to recover approximately **$15 million** from the Company, plus interest and fees, and the company intends to vigorously defend against these claims, but the outcome is uncertain[366](index=366&type=chunk) [Risk Factors](index=109&type=section&id=Item%201A.%20Risk%20Factors) This section highlights key risks including potential adverse effects of tariffs, economic recessions, and the impact of covenants in credit facilities, which could lead to increased non-performing assets or accelerated debt repayment - The company and its portfolio companies face risks from potential tariffs, which could increase production costs or reduce demand for products[368](index=368&type=chunk) - Economic recessions or downturns could impair portfolio companies' ability to repay loans, potentially increasing non-performing assets and decreasing the value of the company's portfolio[369](index=369&type=chunk) - The company's Leverage Program contains various financial and operational covenants, and failure to comply could result in default and acceleration of debt repayment, materially impacting liquidity[373](index=373&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=113&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's share repurchase activity, with 3,150 shares repurchased for a total cost of $26,915 during the three months ended March 31, 2025 Share Repurchases (Q1 2025) | Period | Shares Repurchased | Weighted Avg. Price Per Share | Total Cost | | :--- | :--- | :--- | :--- | | **Q1 2025** | 3,150 | $8.54 | $26,915 | [Defaults upon Senior Securities](index=113&type=section&id=Item%203.%20Defaults%20upon%20Senior%20Securities) Not applicable [Mine Safety Disclosures](index=113&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) None [Other Information](index=113&type=section&id=Item%205.%20Other%20Information) No director or Section 16 officer adopted or terminated a Rule 10b5-1 trading arrangement during Q1 2025, and the stock traded at a high of $9.45 and a low of $7.72 per share relative to its NAV - No director or Section 16 officer adopted or terminated a Rule 10b5-1 trading arrangement during the quarter[381](index=381&type=chunk) Q1 2025 Stock Price and NAV Data | Metric | Value | | :--- | :--- | | **NAV per Share (End of Q1)** | $9.18 | | **High Stock Price** | $9.45 | | **Low Stock Price** | $7.72 | | **Premium/(Discount) to NAV** | +2.9% to -15.9% | [Exhibits](index=116&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the 10-Q, including the merger agreement, corporate governance documents, an amendment to the senior secured revolving credit agreement, and various certifications - Key exhibits filed include an amendment to the Amended & Restated Senior Secured Revolving Credit Agreement and certifications from the CEO and CFO pursuant to Rule 13a-14(a) and Section 906 of the Sarbanes-Oxley Act[386](index=386&type=chunk)

Financial Performance - For the year ended December 31, 2024, adjusted net investment income was $121.5 million, or $1.52 per share, compared to $106.6 million, or $1.84 per share in 2023[7]. - Total investment income for the year ended December 31, 2024, was $259,437,390, an increase of 24% compared to $209,328,883 in 2023[30]. - Net investment income before taxes for the year ended December 31, 2024, was $132,280,424, up from $106,804,073 in 2023, representing a 24% increase[30]. - Basic and diluted earnings per share for the year ended December 31, 2024, were $(0.79), compared to $0.67 in 2023[30]. - The company reported a net realized loss of $(67,110,946) for the year ended December 31, 2024, compared to a loss of $(31,648,232) in 2023[30]. - The net change in unrealized appreciation (depreciation) for the year ended December 31, 2024, was $(127,784,096), compared to $(36,434,094) in 2023[30]. - The net increase in net assets resulting from operations for the year ended December 31, 2024, was a loss of $63,137,172, compared to a gain of $38,474,432 in 2023[30]. Assets and Investments - Total assets as of December 31, 2024, were $1.9 billion, with net assets of $785.1 million and net asset value per share of $9.23, down from $2.0 billion, $865.6 million, and $10.11 per share as of September 30, 2024[13]. - Total assets as of December 31, 2024, amounted to $1,923,031,363, an increase from $1,698,772,353 as of December 31, 2023, representing a growth of approximately 13.2%[28]. - Total investments at fair value reached $1,794,758,336, up from $1,554,941,110, indicating a year-over-year increase of about 15.4%[28]. - The company reported net assets of $785,123,667 as of December 31, 2024, compared to $687,601,546 in the previous year, reflecting a growth of approximately 14.2%[28]. Debt and Liquidity - The company’s total debt, net of deferred issuance costs, was $1,118,340,225 as of December 31, 2024, an increase from $985,200,609 in the prior year, representing a rise of approximately 13.5%[28]. - The combined weighted-average interest rate on debt outstanding was 5.19% as of December 31, 2024[19]. - Available liquidity as of December 31, 2024, was approximately $615.3 million, including $519.3 million in available capacity under the leverage program[18]. - The company has a total leverage of $1,126,314,826, with a weighted-average interest rate of approximately 2.00%[21]. - Cash and cash equivalents decreased to $91,589,702 from $112,241,946, a decline of about 18.4% year-over-year[28]. Dividends - The company declared a first quarter dividend of $0.25 per share and a special dividend of $0.04 per share, both payable on March 31, 2025[6]. - A first quarter regular dividend of $0.25 per share and a special dividend of $0.04 per share were declared, payable on March 31, 2025[25]. - The company intends to declare a special dividend of at least $0.02 per share in each of the second and third quarters of 2025, subject to Board approval[25]. Operations and Management - The company experienced a net decrease in net assets from operations of $38.6 million, or $0.45 per share, for the fourth quarter of 2024[17]. - The Adviser agreed to waive one-third of its base management fee for three quarters starting January 1, 2025, which may impact future expenses[24]. - The company is focused on direct lending to middle-market companies and small businesses, aiming for high total returns through current income and capital appreciation[32]. - The company is externally managed by a wholly-owned, indirect subsidiary of BlackRock, Inc.[32]. Portfolio Performance - Debt investments on non-accrual status represented 5.6% of the portfolio at fair value and 14.4% at cost as of December 31, 2024, compared to 3.8% and 9.3% respectively at the end of the previous quarter[4]. - The weighted average annual effective yield of the debt portfolio was approximately 12.4% as of December 31, 2024, down from 13.4% as of September 30, 2024[11]. - Total acquisitions during the fourth quarter of 2024 were approximately $120.7 million, while total investment dispositions were $168.6 million[4].

Financial Data and Key Metrics Changes - Full year 2024 adjusted net investment income was $1.52 per share, down from $1.84 per share in 2023, with an annualized net investment income ROE of 14.5% [10] - Fourth quarter adjusted net investment income per share was flat at $0.36 compared to the previous quarter, with NAV per share decreasing to $9.23 from $10.11 [11][10] - Non-accruals represented 5.6% of the portfolio at fair market value, up from 3.8% in the previous quarter [11] Business Line Data and Key Metrics Changes - The portfolio had a fair market value of approximately $1.8 billion invested across 154 companies, with 91.2% in senior secured loans [30] - The weighted average effective yield of the portfolio decreased to 12.4% from 13.4% in the previous quarter [31] - New investments had a weighted average yield of 10.8%, while exited investments had a yield of 14% [32] Market Data and Key Metrics Changes - The overall M&A volumes remained below expectations, but there was a healthy flow of new investment opportunities [33][39] - The weighted average interest rate on debt outstanding decreased to 5.2% from 5.4% in the prior quarter [50] Company Strategy and Development Direction - The company plans to focus on the core middle market with a proactive approach to sourcing and underwriting, while also opportunistically investing in lower and upper middle market companies [24] - A highly diversified portfolio will be maintained, limiting exposure to specific industry subsectors [26] - The company will prioritize investing in first lien loans and deepen connections with the broader BlackRock platform for competitive advantage [27][28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future and confidence in their strategic plan to navigate challenges in 2024 [10] - The company acknowledged the impact of lower base rates and increased non-accruals on performance, emphasizing a focus on resolving credit issues [12][10] - Management highlighted the importance of thoughtful solutions for resolving credit issues, which may take time [13] Other Important Information - The Board decided to reduce the regular dividend to $0.25 per share for the first quarter, while also declaring a $0.04 special dividend [20][21] - The advisor agreed to waive one-third of the base management fee for three quarters beginning January 1, 2025 [22] Q&A Session Summary Question: Can you provide details on the spillover and target level for dividends? - The company has about $0.10 of carryover from the prior quarter and aims for a sustainable regular dividend level based on current earnings power [54][55] Question: Will there be any strategic changes due to the BlackRock HPS acquisition? - Management does not expect meaningful changes and emphasizes a focus on business as usual, while highlighting expanded resources from the acquisition [58][60] Question: What level of confidence is there regarding future markdowns? - Management is focused on managing existing non-accruals and believes most markdowns have been centered around known assets [67][70] Question: What are the risks associated with new non-accruals like Renovo? - Management believes Renovo's issues are primarily operational and less exposed to external factors like tariffs due to its focus on smaller projects [74][76] Question: Is the management fee waiver related to the HPS acquisition? - Management clarified that the fee waiver is a thoughtful approach to acknowledge NAV decline and is not specifically timed with the HPS acquisition [79] Question: What steps are being taken to maintain investment grade rating? - The company is focused on maintaining its investment grade rating and plans to access capital markets closer to the maturity date of its notes [85][88] Question: What has changed regarding NAV per share? - The decrease in NAV is attributed to broader factors including rapid rate increases and a slower growth environment impacting borrowers [90][92]

Financial Data and Key Metrics Changes - Full year 2024 adjusted net investment income was $1.52 per share, down from $1.84 per share in 2023, with an annualized net investment income ROE of 14.5% [10] - Fourth quarter adjusted net investment income per share was flat at $0.36 compared to the previous quarter [11] - NAV per share decreased to $9.23 from $10.11, reflecting markdowns in the investment portfolio [11][12] - Non-accruals represented 5.6% of the portfolio at fair market value, up from 3.8% in the previous quarter [11] Business Line Data and Key Metrics Changes - The portfolio had a fair market value of approximately $1.8 billion invested across 154 companies, with 91.2% in senior secured loans [30] - The weighted average effective yield of the portfolio decreased to 12.4% from 13.4% in the previous quarter [31] - New investments had a weighted average yield of 10.8%, while exited investments had a yield of 14% [32] Market Data and Key Metrics Changes - The overall M&A volumes remained below expectations, but there was a healthy flow of new investment opportunities [33][39] - The market is experiencing tighter spreads due to increased competition between private credit and traditional lending sources [41] Company Strategy and Development Direction - The company plans to focus on the core middle market with a proactive approach to sourcing and underwriting [24] - A highly diversified portfolio will be maintained, limiting exposure to specific industry subsectors [26] - The company will prioritize investing in first lien loans and deepen connections with the broader BlackRock platform for competitive advantage [27][28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about navigating challenges in 2024 and returning to historical above-market returns [10] - The company is focused on resolving credit issues with borrowers and sponsors, emphasizing that quick resolutions may not always yield the best results for shareholders [12][13] - The management team is confident in their ability to work through current challenges and return the portfolio to historical performance levels [29] Other Important Information - The Board decided to reduce the regular dividend to $0.25 per share for the first quarter, while also declaring a $0.04 special dividend [20][21] - The advisor agreed to waive one-third of the base management fee for three quarters beginning January 1, 2025 [22] Q&A Session Summary Question: Can you provide details on the spillover and target level for dividends? - The company has about $0.10 of carryover from the prior quarter and aims for a sustainable regular dividend level based on current earnings power [54][55] Question: Will there be any strategic changes due to the BlackRock HPS acquisition? - Management does not expect meaningful changes and emphasizes a focus on business as usual, while highlighting expanded resources from the acquisition [58][60] Question: What level of confidence is there regarding write-downs in the portfolio? - Management is focused on managing existing non-accruals and acknowledges that while there may be ongoing markdowns, they are largely centered around known assets [67][70] Question: What are the risks associated with the new non-accrual, Renovo? - The underlying issues are related to inflation and consumer appetite, but operational execution issues are also present, which are considered easier to address [74][75] Question: Is the management fee waiver related to the HPS acquisition timing? - Management clarified that the fee waiver is a thoughtful approach to acknowledge NAV decline and is not specifically timed with the HPS acquisition [79] Question: What steps are being taken to maintain investment grade rating ahead of the 2026 debt maturity? - The company is focused on maintaining its investment grade rating and plans to access capital markets closer to the maturity date [85][88]

Core Viewpoint - BlackRock TCP reported quarterly earnings of $0.38 per share, exceeding the Zacks Consensus Estimate of $0.36 per share, but down from $0.44 per share a year ago, indicating a 5.56% earnings surprise [1][2] Financial Performance - The company posted revenues of $61.25 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 6.61%, compared to $50.85 million in the same quarter last year [2] - Over the last four quarters, BlackRock TCP has surpassed consensus EPS estimates just once and topped consensus revenue estimates three times [2] Stock Performance - BlackRock TCP shares have increased approximately 7.2% since the beginning of the year, outperforming the S&P 500's gain of 1.3% [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.37 on revenues of $62.56 million, and for the current fiscal year, it is $1.42 on revenues of $247.11 million [7] - The estimate revisions trend for BlackRock TCP is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] Industry Context - The Financial - SBIC & Commercial Industry, to which BlackRock TCP belongs, is currently in the top 22% of over 250 Zacks industries, suggesting a favorable industry outlook [8]

Financial Structure and Leverage - The Company has a leverage program consisting of $300.0 million in available debt under a revolving credit facility, $200.0 million under a senior secured revolving credit facility, and $325.0 million in senior unsecured notes maturing in 2026 and 2029[442]. - Total leverage outstanding as of December 31, 2024, was $1.13 billion, with available capacity of $519.33 million[497]. - As of December 31, 2024, the Company's asset coverage ratio was 178.9%, above the required 150%[501]. Investment Strategy and Portfolio - The Company’s investment strategy focuses on achieving high total returns through current income and capital appreciation, primarily investing in the debt of middle-market companies[441]. - As of December 31, 2024, the consolidated investment portfolio was valued at $1,794.8 million, with 91.5% invested in debt investments, primarily in senior secured debt[473]. - The average portfolio company investment at fair value was approximately $11.7 million as of December 31, 2024[473]. - As of December 31, 2024, 98.3% of investments were categorized as Level 3, indicating significant reliance on unobservable inputs for valuation[464]. - The largest portfolio company investment based on fair value was approximately 6.2% of the total portfolio as of December 31, 2024[473]. Revenue and Income - The Company generates revenues primarily from interest on debt investments, with expected maturities generally between three to five years[449]. - Investment income for the year ended December 31, 2024, totaled $259.4 million, an increase from $209.3 million in 2023 and $181.0 million in 2022, primarily driven by higher interest income due to increased SOFR rates and investments from the Merger[478]. - Net investment income for the year ended December 31, 2024, was $131.8 million, compared to $106.6 million in 2023 and $88.4 million in 2022, reflecting higher total investment income despite increased expenses[480]. - For the year ended December 31, 2024, net investment income was $131.76 million, a 23.6% increase from $106.56 million in 2023[492]. - Adjusted net investment income for 2024 was $121.45 million, compared to $106.56 million in 2023, reflecting a 14% increase[492]. Expenses and Losses - Total operating expenses for the year ended December 31, 2024, were $127.2 million, up from $102.5 million in 2023 and $92.6 million in 2022, largely due to increased interest expenses from higher debt levels following the Merger[479]. - The net realized loss for the year ended December 31, 2024, was $(67.1) million, worsening from $(31.6) million in 2023 and $(18.2) million in 2022, primarily due to losses from restructuring investments in several companies[481]. - The change in net unrealized depreciation for the year ended December 31, 2024, was $(127.8) million, compared to $(36.4) million in 2023 and $(79.4) million in 2022, with significant losses attributed to investments in Razor and Edmentum[482]. Dividends and Distributions - The Company must distribute at least 90% of its ordinary income and short-term capital gains to maintain its qualification as a RIC[508]. - For the year ended December 31, 2024, the total dividends declared amounted to $115,280,670, with a per share distribution of $1.46[511]. - The company declared a first quarter regular dividend of $0.25 per share and a special dividend of $0.04 per share for the first quarter of 2025[520]. - Approximately $2.3 million of cash distributions were reinvested through the new dividend reinvestment plan (DRIP) in 2024[494]. - The company has the ability to declare a large portion of a dividend in shares instead of cash to satisfy annual distribution requirements[516]. Tax and Regulatory Considerations - The Company has elected to be treated as a RIC for U.S. federal income tax purposes, allowing it to avoid corporate level taxes on distributed income[443]. - The company may face adverse tax consequences if it does not distribute a certain percentage of its income annually[515]. Mergers and Acquisitions - The Company entered into a Merger Agreement on September 6, 2023, with BCIC, resulting in BCIC ceasing to exist as a separate entity[444]. - The Company completed a Merger with BCIC on March 18, 2024, which was treated as a tax-free reorganization, allowing the Company to carry forward the historical cost basis of the acquired investments[487]. - The Company issued 27,823,870 shares of its common stock to former BCIC shareholders as a result of the Merger, with an exchange ratio of 0.3834 shares[445]. - The company paid $7.3 million in dividends payable assumed in the merger for former BCIC shareholders[513]. Management and Advisory Fees - The base management fee for the Company was reduced from 1.50% to 1.25% on assets equal to or below 200% of the net asset value following the Merger[453]. - The Company’s investment management agreement allows for incentive compensation based on achieving a cumulative total return of at least 7% on contributed common equity[454]. - Incentive fees included in operating expenses for the year ended December 31, 2024, were $19.2 million, a decrease from $22.6 million in 2023, due to not accruing incentive fees in the last quarter of 2024[484]. - The advisor voluntarily agreed to waive one-third of its base management fee for three calendar quarters starting January 1, 2025[520]. - The advisor and its affiliates may manage other funds, leading to potential conflicts in investment opportunities allocation[519].

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for BlackRock TCP despite higher revenues, with a focus on how actual results will compare to estimates to influence stock price [1][2]. Earnings Expectations - BlackRock TCP is expected to report earnings of $0.36 per share, reflecting an 18.2% decrease year-over-year, while revenues are projected to be $65.59 million, a 29% increase from the previous year [3]. - The earnings report is scheduled for release on February 27, 2025, and could lead to stock price movement depending on whether results exceed or fall short of expectations [2]. Estimate Revisions - The consensus EPS estimate has been revised 2.78% higher in the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for BlackRock TCP is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -5.56%, suggesting a bearish outlook from analysts [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict deviations from consensus estimates, with a positive reading being a strong indicator of an earnings beat [7][8]. - BlackRock TCP's current Zacks Rank is 4, which complicates the prediction of an earnings beat [11]. Historical Performance - In the last reported quarter, BlackRock TCP was expected to earn $0.40 per share but only achieved $0.36, resulting in a -10% surprise [12]. - The company has not surpassed consensus EPS estimates in the last four quarters [13]. Industry Comparison - Carlyle Secured Lending, another player in the Zacks Financial - SBIC & Commercial Industry, is expected to report earnings of $0.44 per share, a 21.4% decline year-over-year, with revenues projected at $36.31 million, down 18.1% [17]. - Carlyle Secured Lending has an Earnings ESP of 0.57% and a Zacks Rank of 3, indicating a higher likelihood of beating consensus EPS estimates [18].

Financial Data and Key Metrics Changes - Adjusted net income for Q3 2024 was $0.36 per share, with an annualized net investment income (NII) return on average equity at approximately 14%, at the high end of historical levels [10][42] - The Board declared a fourth quarter dividend of $0.34 per share, implying a dividend coverage of 106% based on Q3 adjusted NII [10][11] - Net realized losses for the quarter were $31.4 million, primarily due to restructurings of investments in Pluralsight and McAfee [44][25] - Net unrealized gains totaled $19.2 million, reflecting reversals of previously unrealized losses from the same restructurings [45][25] Business Line Data and Key Metrics Changes - Loans on non-accrual status decreased from 4.9% to 3.8% of portfolio fair value, indicating a positive trend despite remaining higher than historical levels [14][13] - The weighted average annual effective yield of the performing debt portfolio was 13.4%, down from 13.7% in the previous quarter [40] - The portfolio comprised investments in 156 companies, with a total fair market value of approximately $1.9 billion [41] Market Data and Key Metrics Changes - The weighted average interest rate on debt outstanding at the end of the quarter was 5.4% [46] - Unfunded loan commitments to portfolio companies were approximately $100 million, representing 5% of total investments [46] Company Strategy and Development Direction - The company continues to focus on the core middle market, emphasizing less competition and attractive pricing [49] - A disciplined approach to capital deployment is maintained, with a focus on credit-first downside protection [48] - The company is optimistic about the potential for M&A activity to increase, which could provide opportunities for investment and refinancing [33][30] Management's Comments on Operating Environment and Future Outlook - Management noted that the recent rate cut provides relief to borrowers and may improve key indicators of portfolio health [32] - The company is actively monitoring portfolio companies regarding their performance in the context of higher rates and inflation [26] - Management expressed confidence in the long-term success of the company despite current challenges, emphasizing a strong capital position and robust investment pipeline [48][49] Other Important Information - The company has authorized a share repurchase program of up to $50 million [12] - Management changes were announced, with Phil Tseng succeeding Raj Vig as CEO and Chairman [9][28] Q&A Session Summary Question: Insights on NII return and its components - Management indicated that the NII return is at the higher end of historical levels, benefiting from elevated base rates, but expects some reversal [51] Question: Impact of management changes on strategy - Management clarified that the consolidation of the direct lending group aims to enhance collaboration and does not indicate a shift towards upper middle market investments [55] Question: Update on spillover position and special dividend rationale - Management explained that the decision for the special dividend was influenced by the need to manage excise tax implications while ensuring adequate capital allocation [64][65] Question: Expectations for prepayment activity - Management noted that prepayment activity can be episodic and difficult to predict, but conditions may favor an increase in prepayments moving forward [68][70] Question: Status of Amazon aggregator investments - Management reported that loans to Amazon aggregators comprise about 5.9% of the portfolio and expressed optimism about their long-term performance despite current challenges [75] Question: Challenges facing TCPC and future changes - Management emphasized a focus on managing non-accruals and restructurings, leveraging their historical experience to optimize outcomes [81] Question: Stock price concerns and stability of the company - Management reassured stakeholders about the stability of the team and the consistency of dividend payments, highlighting a long track record of meeting or exceeding dividend expectations [87][88]