BlackRock TCP Capital (TCPC)2024-11-06 13:01Financial Performance - Total assets as of September 30, 2024, increased to $2,047,700,892 from $1,698,772,353 as of December 31, 2023, representing a growth of approximately 20.6%[5] - Total investments at fair value reached $1,909,089,361, up from $1,554,941,110, indicating an increase of about 22.7%[5] - Net assets applicable to common shareholders rose to $865,636,898, compared to $687,601,546 at the end of 2023, reflecting a growth of approximately 26%[5] - The company reported a net asset per share of $10.11 as of September 30, 2024, down from $11.90 at the end of 2023[5] - Distributable earnings showed a loss of $382,528,734, worsening from a loss of $280,099,476 in the previous period[5] - Basic and diluted earnings per share for the three months ended September 30, 2024, were $0.25, compared to $0.22 for the same period in 2023, indicating an increase of 13.6%[7] - The company reported a net increase in net assets from operations of $21,632,960 for the three months ended September 30, 2024, compared to $12,822,932 in the prior year, marking a growth of 68.5%[7] - Net increase in net assets resulting from operations for the nine months ended September 30, 2024, was $(24,586,416), compared to $51,787,497 for the same period in 2023[4] Debt and Liabilities - Debt increased to $1,160,042,987 from $985,200,609, marking an increase of about 17.7%[5] - Interest payments increased to $49,362,618 from $38,487,722 year-over-year[4] - Total liabilities assumed in the merger amounted to $331,975,868[4] - Total debt investments amount to $1,867,740,000, representing 200.4% of Net Assets[21] - Total debt outstanding as of September 30, 2024, was $1,167,841,603, with total available capacity of $1,645,587,807[121] - The combined weighted-average interest rate on total debt increased from 4.29% as of December 31, 2023, to 5.43% as of September 30, 2024[123] Cash and Cash Equivalents - Cash and cash equivalents decreased to $104,181,765 from $112,241,946, a decline of approximately 7.5%[5] - Total cash and cash equivalents at the end of the period were $104,181,765, up from $91,653,006 at the end of the previous year[4] Investment Income - Total investment income for the three months ended September 30, 2024, was $70,932,487, an increase of 30.9% compared to $54,210,941 for the same period in 2023[7] - Net investment income before taxes for the three months ended September 30, 2024, was $33,877,641, up from $28,333,076 in the prior year, representing a growth of 19.0%[7] Shareholder Returns - Dividends paid to shareholders for the three months ended September 30, 2024, totaled $29,100,986, consistent with the previous quarter[8] - Dividends paid to shareholders increased to $85,100,033 from $66,432,353 year-over-year[4] Mergers and Acquisitions - The company issued common stock in connection with a merger, resulting in an increase of $280,464,610 in total net assets[8] - The company acquired net assets in connection with the merger valued at $603,136,276, including $586,983,708 of investments[4][10] Investment Portfolio - The company has a total of 37 debt investments listed, indicating a diversified investment portfolio[12] - The company is actively managing its debt portfolio with a focus on high-yield investments[12] - The company has a significant investment in the construction and engineering sector, totaling $1,081,667[12] - The company has diversified its portfolio with investments in various sectors, including software and technology, to mitigate risks[19] Market Strategy and Outlook - The company is exploring new strategies for market expansion and product development, particularly in technology and healthcare sectors[15] - Future outlook includes potential market expansions and new product developments in the sectors represented by the debt investments[18] Valuation and Fair Value - The total fair value of Level 3 investments was $1,879,087,978, with significant unrealized losses of $(139,090,785) during the period[78] - The fair value of Equity Securities was $172,419,745, with a range of implied volatility between 45.0% and 75.0%[74] - The company’s investments are valued at least quarterly based on independent third-party sources, with less than 5% priced directly by the Valuation Designee[66] Regulatory and Compliance - The Company has elected to be treated as a regulated investment company (RIC) for U.S. federal income tax purposes, allowing it to avoid taxation on distributed income[58] - Approximately 16.9% of BlackRock TCP Capital Corp.'s total assets were classified as non-qualifying assets under Section 55(a) of the 1940 Act[33]