Download PDF

1. Company Snapshot

1.a. Company Description

BlackRock TCP Capital Corp.is a business development company specializing in direct equity and debt investments in middle-market, debt securities, senior secured loans, junior loans, originated loans, mezzanine, senior debt instruments, bonds, and secondary-market investments.It typically invests in communication services, public relations services, television, wireless telecommunication services, apparel, textile mills, restaurants, retailing, energy, oil and gas extraction, Patent owners and Lessors, Federal and Federally- Sponsored Credit agencies, insurance, hospital and healthcare centers, Biotechnology, engineering services, heavy electrical equipment, tax accounting, scientific and related consulting services, charter freight air transportation, Information technology consulting, application hosting services, software diagram and design, computer aided design, communication equipment, electronics manufacturing equipment, computer components, chemicals.


It seeks to invest in the United States.The fund typically invests between $10 million and $35 million in companies with enterprise values between $100 million and $1500 million including complex situations.It prefers to make equity investments in companies for an ownership stake.

Show Full description

1.b. Last Insights on TCPC

BlackRock TCP Capital Corp.'s recent performance was negatively impacted by weaker-than-expected Q3 earnings, with quarterly earnings of $0.32 per share, missing estimates. The company's earnings have been under pressure, with a year-over-year decline from $0.36 per share. Additionally, the business development company (BDC) sector is facing challenges, with 16 BDCs having dividend coverage levels below 100%, indicating potential dividend cuts. The company's upcoming financial results and conference call may provide further insights into its strategy and outlook.

1.c. Company Highlights

2. BlackRock TCP Capital Corp. Posts Steady Q3 Earnings Amidst Challenging Credit Environment

BlackRock TCP Capital Corp.'s third-quarter earnings report revealed a net asset value (NAV) of $8.71 per share, unchanged from the previous quarter. The company's adjusted net investment income came in at $0.30 per share, with gross investment income of $0.59 per share. Actual EPS was $0.32, slightly below estimates of $0.33. Operating expenses for the quarter were $0.27 per share, including $0.20 per share of interest and other debt expenses. Net unrealized gains were $94.1 million or $1.11 per share, primarily driven by the markup of NEP.

Publication Date: Nov -18

📋 Highlights
  • Non-Accruals Decline:: Portfolio non-accruals dropped to 3.5% (from 5.6% in 2024), reflecting improved credit quality.
  • Stable NAV:: Q3 net asset value remained unchanged at $8.71 per share, maintaining prior quarter levels.
  • Consistent Dividend:: $0.25 per share dividend declared, aligning with the base level since Q1 2025 amid Fed rate cuts.
  • Net Unrealized Gains:: $94.1M ($1.11/share) gains, primarily driven by valuation markup of NEP (Net Operating Income).
  • Liquidity Strength:: Total liquidity of $528M, with $466.1M in available leverage and 1.2x net regulatory leverage ratio.

Credit Quality and Portfolio Performance

The company's credit quality showed signs of improvement, with non-accruals decreasing to 3.5% of the portfolio at fair market value, down from 5.6% at the end of 2024. Chairman Philip Tseng noted that there is no commonality amongst the restructurings that have come back on non-accrual status, indicating a diverse range of credit risks. The company's investment portfolio stood at $1.7 billion, with unfunded loan commitments representing 9.0% of the total.

Balance Sheet Strength and Liquidity

BlackRock TCP Capital Corp.'s balance sheet remains strong, with total liquidity of approximately $528 million, including $466.1 million of available leverage and $61 million in cash. Net regulatory leverage was 1.2x at quarter end, indicating a relatively conservative use of debt. The company's dividend yield stands at 23.19%, making it an attractive option for income-seeking investors.

Valuation and Outlook

Analysts estimate next year's revenue growth at -13.4%, indicating a challenging environment for the company. The current P/B Ratio of 0.65 suggests that the stock may be undervalued relative to its book value. With a dividend yield of 23.19%, the stock may be attractive to investors seeking income. As Philip Tseng noted, the company is focused on credit risks in its portfolio and is working hard to manage the portfolio, which should help navigate the challenging credit environment.

3. NewsRoom

Card image cap

BlackRock TCP Capital Corp (TCPC) Q3 2025 Earnings Call Transcript

Nov -06

Source: seekingalpha.com

Card image cap

BlackRock TCP (TCPC) Lags Q3 Earnings and Revenue Estimates

Nov -06

Source: zacks.com

Card image cap

Blackrock Tcp Capital (NASDAQ:TCPC) and Palmer Square Capital BDC (NYSE:PSBD) Head-To-Head Contrast

Oct -26

Source: defenseworld.net

Card image cap

BlackRock TCP Capital Corp. to Report Third Quarter Ended September 30, 2025 Financial Results on November 6, 2025

Oct -14

Source: businesswire.com

Card image cap

What Will It Take To Halt BDC Dividend Cuts? 1 Catalyst On The Horizon

Sep -21

Source: seekingalpha.com

Card image cap

6 Small Cap Dividends With Super-Sized Yields Of Up To 19%

Sep -07

Source: forbes.com

Card image cap

Wall Street Can't Stand This 12%-Yielding Bear Portfolio

Aug -24

Source: forbes.com

Card image cap

BlackRock TCP Capital Corp (TCPC) Q2 2025 Earnings Call Transcript

Aug -07

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.00%)

6. Segments

Investment and Related Activities

Expected Growth: 9%

BlackRock TCP Capital Corp.'s 9% growth in Investment and Related Activities is driven by increasing demand for alternative credit, expansion into new markets, and a strong pipeline of investment opportunities. Additionally, the company's disciplined underwriting approach, diversified portfolio, and strategic partnerships have contributed to its growth momentum.

7. Detailed Products

Senior Loans

BlackRock TCP Capital Corp. provides senior loans to middle-market companies, offering a flexible and customized financing solution to meet their unique needs.

Unitranche Loans

BlackRock TCP Capital Corp. offers unitranche loans, which combine senior and subordinated debt into a single loan facility, providing a simplified and efficient financing solution.

Second Lien Loans

BlackRock TCP Capital Corp. provides second lien loans, which offer a subordinated debt solution for companies seeking additional capital without diluting equity.

Equity Co-Investments

BlackRock TCP Capital Corp. makes equity co-investments alongside its debt investments, providing a comprehensive financing solution for companies.

Structured Products

BlackRock TCP Capital Corp. offers structured products, such as collateralized loan obligations (CLOs), to provide investors with diversified exposure to middle-market loans.

8. BlackRock TCP Capital Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

TCP Capital Corp. operates in a niche market, providing middle-market lending solutions. While there are substitutes available, the company's specialized services and strong relationships with clients mitigate the threat of substitutes.

Bargaining Power Of Customers

TCP Capital Corp.'s customers are primarily middle-market companies, which have limited bargaining power due to their smaller size and reliance on the company's specialized lending services.

Bargaining Power Of Suppliers

TCP Capital Corp. has a diversified funding base, which reduces its reliance on any single supplier. Additionally, the company's strong relationships with its suppliers further reduce the bargaining power of suppliers.

Threat Of New Entrants

The middle-market lending industry has high barriers to entry, including regulatory hurdles and the need for specialized expertise. This limits the threat of new entrants and allows TCP Capital Corp. to maintain its market position.

Intensity Of Rivalry

While there are several competitors in the middle-market lending industry, TCP Capital Corp.'s specialized services and strong relationships with clients help to differentiate it from its rivals. However, the company still faces some competition from other lenders and private equity firms.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 58.90%
Debt Cost 4.88%
Equity Weight 41.10%
Equity Cost 11.15%
WACC 7.46%
Leverage 143.28%

11. Quality Control: BlackRock TCP Capital Corp. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Saratoga Investment

A-Score: 7.0/10

Value: 6.0

Growth: 5.1

Quality: 6.2

Yield: 10.0

Momentum: 5.0

Volatility: 9.7

1-Year Total Return ->

View Full Report
Stock-Card
TriplePoint Venture Growth BDC

A-Score: 6.7/10

Value: 7.8

Growth: 4.0

Quality: 8.1

Yield: 10.0

Momentum: 3.0

Volatility: 7.0

1-Year Total Return ->

View Full Report
Stock-Card
WisdomTree

A-Score: 5.9/10

Value: 3.5

Growth: 6.3

Quality: 7.4

Yield: 3.0

Momentum: 8.0

Volatility: 7.3

1-Year Total Return ->

View Full Report
Stock-Card
BlackRock TCP Capital

A-Score: 5.9/10

Value: 8.4

Growth: 3.3

Quality: 3.8

Yield: 10.0

Momentum: 2.0

Volatility: 8.0

1-Year Total Return ->

View Full Report
Stock-Card
Virtus Investment Partners

A-Score: 5.9/10

Value: 5.6

Growth: 5.1

Quality: 7.2

Yield: 7.0

Momentum: 3.5

Volatility: 6.7

1-Year Total Return ->

View Full Report
Stock-Card
PhenixFIN

A-Score: 5.7/10

Value: 7.3

Growth: 4.2

Quality: 7.0

Yield: 3.0

Momentum: 4.5

Volatility: 8.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

6.1$

Current Price

6.1$

Potential

-0.00%

Expected Cash-Flows