BlackRock TCP Capital Corp. Investor presentation Q4 2025 Experienced and tenured investment team Senior Leadership & Executive Team | Philip Tseng (27)* Chairman, Chief Executive Officer and Co-CIO | | | | | | --- | --- | --- | --- | --- | | Senior Leadership & Executive Team | | | | | | Jason Mehring (31) | | Erik Cuellar (28) | Diana Huffman (15) | | | President | | CFO | General Counsel and Secretary | | | Dan Worrell (34) * | | Patrick Wolfe (19) | Charles Park (17) | | | Co-CIO | | COO | CCO | | | Ori ...

Core Viewpoint - Provident Bank has appointed Joseph A. Tammaro, Jr. as Executive Vice President, Head of Middle Market Lending, aiming to enhance its middle market lending platform and customer relationships [1][3][4]. Company Overview - Provident Bank, founded in 1839, is New Jersey's oldest community-focused financial institution, with assets totaling $24.98 billion as of December 31, 2025 [7]. - The bank operates over 140 branches across New Jersey and parts of New York and Pennsylvania, offering a variety of financial solutions, including lending, wealth management, and insurance services [7]. Leadership Appointment - Joseph A. Tammaro, Jr. will report to Bill Fink, Chief Lending Officer, and will oversee the Middle Market Lending Group, focusing on business development, customer relationship management, and risk management [3][4]. - Tammaro has over two decades of experience in commercial banking, previously serving as Senior Vice President at TD Bank, where he managed teams serving commercial customers with revenues up to $2 billion [4][5]. Strategic Focus - Tammaro aims to leverage his leadership experience to drive growth in Provident's middle market platform, emphasizing the importance of building customer relationships and delivering integrated financial solutions [4][6]. - The transition will ensure continuity of service as Tammaro replaces Wm. J. Ruckert, III, who is set to retire on April 1 [6].

Financial Results - Prospect Capital Corporation reported a net investment income (NII) of $90,888,000 for the quarter ended December 31, 2025, an increase from $79,350,000 in the previous quarter and $86,431,000 in the same quarter last year [2] - The NII per common share was $0.19, compared to $0.17 in the previous quarter and $0.20 a year ago [2] - The company experienced a net loss applicable to common shareholders of $(6,576,000), a decrease from a profit of $48,087,000 in the previous quarter and a loss of $(30,993,000) in the same quarter last year [2] - Total assets decreased to $6,534,578,000 from $6,641,870,000 in the previous quarter and $7,234,855,000 a year ago [2] - The net asset value (NAV) per common share was $6.21, down from $6.45 in the previous quarter and $7.84 a year ago [2] Investment Activity - The company has invested over $22 billion across more than 450 investments since its initial public offering in July 2004, exiting over 350 of these investments [6] - The gross internal rate of return (IRR) on exited investments is approximately 12%, with total proceeds from exited investments amounting to approximately $16.7 billion against $13.1 billion invested [7] - In the middle market lending sector, the exited investments yielded a gross IRR of approximately 14.5%, with an annualized realized loss rate of 0.2% [8] - For companies with less than $50 million in EBITDA, the gross IRR reached approximately 17.2%, with an annualized net realized loss rate of 0.1% [9] Portfolio Composition - As of December 31, 2025, the portfolio included 91 companies across 32 industries, with total investments valued at $6,441,536,000 [18] - The first lien debt represented 71.4% of the total investments, while second lien debt accounted for 12.7% [19] - The company’s real estate property portfolio at National Property REIT Corp. constituted 14.1% of investments, yielding an income of 5.4% for the quarter [16] Capital and Liquidity - The company has a diversified funding profile, including a $2.1 billion revolving credit facility and various debt instruments [21] - As of December 31, 2025, the weighted average cost of unsecured debt financing was 4.68% [25] - The balance sheet cash and undrawn revolving credit facility commitments totaled $1,647,216,000 [24] Dividend Information - Prospect Capital Corporation declared monthly cash distributions of $0.045 per share for February, March, and April 2026 [4][5] - Cumulative distributions to common shareholders since inception amount to approximately $4.7 billion, equating to $21.93 per share [5]

BlackRock TCP Capital Corp. Investor presentation Q3 2025 Key investment highlights | 1 | Established platform with decades of experience lending throughout market cycles | | --- | --- | | 2 | Strategically-positioned, diverse portfolio with access to the core middle market | | 3 | Extensive network and channel-agnostic approach to deal sourcing | | 4 | Diversified, flexible funding sources | | 5 | Strong shareholder alignment | | 6 | Access to reach and resources of world's largest asset manager | Experien ...

Core Insights - Capital Southwest Corporation reported strong financial results for the second fiscal quarter ended September 30, 2025, with significant origination activity and a solid increase in undistributable taxable income [3][4]. Financial Highlights - The company originated approximately $245 million in new commitments, including $165.8 million in seven new portfolio companies and $79.7 million in ten existing portfolio companies [3][4]. - The Board declared a regular monthly dividend of $0.1934 for October, November, and December 2025, along with a quarterly supplemental dividend of $0.06 to be paid in December 2025 [3][23]. - Capital Southwest successfully raised $350 million at a 5.950% interest rate through its inaugural index-eligible unsecured bond transaction [3][17]. - The total investment portfolio reached $1.9 billion, with a credit portfolio of $1.7 billion, primarily consisting of 99% first lien senior secured debt [6][29]. Investment Activities - The company generated net realized gains of $3.5 million from the exit of one equity investment, contributing to an estimated undistributed taxable income of $1.13 per share [5][6]. - The weighted average yield on debt investments was reported at 11.5% [6]. Operating Results - Total investment income for the quarter was $56.9 million, an increase from $55.9 million in the prior quarter, driven by higher cash interest income and fees [7]. - Total operating expenses (excluding interest) decreased to $6.9 million from $8.0 million in the previous quarter, mainly due to reduced employee compensation [8]. - Pre-tax net investment income was $34.0 million, compared to $32.7 million in the prior quarter [9]. Balance Sheet and Liquidity - As of September 30, 2025, the company had $87.4 million in cash and cash equivalents and $632.2 million of unused capacity under its credit facilities [13]. - The regulatory debt to equity ratio was 0.91 to 1, indicating a strong capital structure [13]. Shareholder Returns - Total dividends for the quarter ended September 30, 2025, amounted to $0.6402 per share, with a regular monthly dividend coverage of 104% based on pre-tax net investment income [6][24]. - The company did not repurchase any shares under its share repurchase program during the quarter [22]. Future Outlook - Capital Southwest has scheduled a conference call to discuss the second quarter 2026 financial results, indicating ongoing transparency and engagement with investors [26].

Financial Performance - Adjusted Net Investment Income (NII) was $0.31 per share, exceeding the regular dividend of $0.25 per share[9] - The company declared a regular dividend of $0.25 per share and a special dividend of $0.04 per share for Q2 2025[9] - The regular dividend coverage ratio in Q2 2025 was 124%[9] - The annualized adjusted NII Return on Equity (ROE) was 13.6% for the second quarter[9] Portfolio Composition - The total portfolio fair value is $1.8 billion, diversified across 153 portfolio companies[9] - 89.4% of the portfolio is invested in senior secured debt, with 82.4% in 1st lien[9] - The weighted average yield of the performing debt portfolio is 12.0%[9] - Non-accruals declined to 3.7% of the portfolio at fair value in Q2 2025[52] Leverage and Liquidity - The company has a diverse leverage program totaling $1.6 billion[9] - 63% of the outstanding leverage is unsecured as of June 30, 2025[9] - Available liquidity is $565.5 million, including $455 million of available borrowing capacity[9]

Financial Data and Key Metrics Changes - Adjusted net investment income for Q4 2024 was $6,200,000 or $0.29 per share, a slight decrease from $6,600,000 or $0.31 per share in the previous quarter [4][17] - NAV as of 12/31/2024 was $191,800,000 or $8.85 per share, down from $198,900,000 or $9.18 per share as of 09/30/2024, representing a 3.6% decline [4][18] - The weighted average effective yield on the portfolio's debt and preferred equity was 10.2%, down from 11% in the previous quarter [18] Business Line Data and Key Metrics Changes - The investment portfolio totaled $457,000,000 at year-end, a decrease from $474,300,000 at the end of the previous quarter, consisting of debt and equity investments in 91 portfolio companies, down from 94 [12] - In 2024, the company invested $30,400,000 in seven new portfolio companies and $57,600,000 in existing portfolio companies [14] - Total investment income for Q4 2024 was $14,000,000, down from $15,700,000 in Q3 2024, primarily due to a decline in interest rates [20] Market Data and Key Metrics Changes - Middle market direct lending M&A volumes in Q4 2024 were the strongest since Q4 2021, leading to an 85% year-over-year increase in sponsored direct lending volumes for 2024 [12][13] - Private credit middle market deal issuance was 2.9 times greater than syndicated deal lending in 2024, with delayed draw term loan fundings 2.4 times greater than in 2023 [13] Company Strategy and Development Direction - The company plans to focus on growing the portfolio and addressing legacy portfolio issues, indicating a shift towards more offensive strategies in 2025 [30][31] - The strategic partnership with the Wendell Group is expected to close in Q1 2025, with Wendell committing $1,000,000,000 of new seed capital to support investment strategies [9][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the favorable market outlook and the potential for a sustainable deal environment throughout 2025, driven by lower interest rates and increased M&A activity [8][9] - The company is committed to maintaining a predominantly first lien portfolio and leveraging its credit experience and rigorous underwriting standards [26] Other Important Information - The company reported a net loss on the portfolio for Q4 2024 of $7,700,000, primarily due to unrealized mark-to-market losses [23] - Total expenses for Q4 2024 were $8,000,000, down from $9,200,000 in Q3 2024, mainly due to lower interest and debt financing expenses [22] Q&A Session Summary Question: Strategy to grow earnings and portfolio given recent contractions - Management indicated plans to clean up legacy portfolio issues and is hopeful for growth in 2025 [30][31] Question: Resolution of long-standing non-accrual investments - Management is actively working on non-accrual investments and hopes to make progress in 2025 [33][34] Question: Consideration of swapping bank credit facilities for other debt structures - Management acknowledged the consideration but emphasized strong interest from financial institutions in providing capital for diversified middle market portfolios [36][40]

Core Viewpoint - Prospect Capital Corporation is adjusting its common shareholder distribution rate while focusing on its long-term income and total return strategy, emphasizing first lien senior secured middle market loans over structured credit CLO equity and real estate investments [2]. Financial Results - For the fiscal quarter ended September 30, 2024, the net investment income (NII) was $89,877,000, down from $125,612,000 in the same quarter of the previous year [12]. - NII per common share decreased to $0.21 from $0.31 year-over-year [12]. - Interest income as a percentage of total investment income increased to 94% from 85.7% year-over-year [12]. - The net income applicable to common shareholders was a loss of $165,069,000 compared to a profit of $94,011,000 in the same quarter last year [12]. Investment Strategy - The company is shifting its focus from CLO equity and real estate investments, which have shown higher variability, to more stable middle-market corporate investments [4]. - First lien senior secured loans now represent 65% of total investments, an increase of over 700 basis points year-over-year [5]. - The company expects to continue generating attractive risk-adjusted returns from its core business, with targeted unlevered total returns of 12-15%+ from current investments [8]. Portfolio and Asset Management - As of September 30, 2024, total investments at fair value were $7,476,641,000, with 117 portfolio companies [18]. - The weighted average EBITDA of middle-market loan portfolio companies was $104,682,000, with a weighted average net leverage ratio of 5.7x [18]. - The company has exited 15 subordinated structured note investments with an unlevered investment-level gross cash IRR of 12.0% [24]. Capital and Liquidity - The company has a diversified funding profile, including a $2.1 billion revolving credit facility with no debt maturing in 2024 [25][26]. - As of November 6, 2024, the balance sheet cash and undrawn revolving credit facility commitments totaled approximately $1.5 billion [25]. - The weighted average cost of unsecured debt financing was 4.42%, reflecting an increase from previous periods [30]. Shareholder Distributions - The company declared monthly cash distributions of $0.0450 per share for November 2024, December 2024, and January 2025 [14]. - Cumulative distributions to common shareholders since inception will total $21.25 per share, representing 2.6 times the September 2024 common NAV per share [15].