BlackRock TCP Capital Corp. Q4 FY2025 earnings call

Phil Tseng provided an overview of financial results. Jason Mehring discussed portfolio composition, including that at year end the portfolio had a fair market value of $1.5 billion invested across 141 companies in over 20 industry sectors, with 92.4% in senior secured loans and 7.5% in equity. Eric Cuellar reviewed financial results, balance sheet, and liquidity. Focus on improving credit quality of the investment portfolio, executing investment strategy including deploying capital selectively into senior secured first lien loans, building diversified portfolio to reduce concentration risk, and leveraging BlackRock's platform

Full year 2025 adjusted NAI was $1.22 per share compared to $1.52 in 2024. Annualized NAI ROE for the year was 12.3% compared to 14.5% in 2024. Adjusted NAI was $0.25 per share in the fourth quarter. NAV declined 19% to $7.07 per share as of December 31st, 2025, from $8.71 as of September 30th. 92.4% of the portfolio was invested in senior secured loans (all floating rate) and 7.5% in equity investments

Board declared first quarter dividend of 17 cents per share payable on March 31st, 2026. Repurchased 515,869 shares of TCPC stock during the fourth quarter and an additional 233,541 shares after quarter end. Continue to focus on improving credit quality of the portfolio and executing the investment strategy

Portfolio markdowns, non-accrual debt investments represented 4% of the portfolio at fair market value and 9.7% at cost as of December 31st, 2025, lower base rates and tighter spreads, concentration risk in certain investments that benefited from pandemic-era demand but have since softened

Q: At what point does it make sense to take more aggressive overall strategic adjustments to the BDC?

A: Continually evaluate ways to optimize returns, currently believe best path is to focus on improving credit quality of the portfolio and executing the investment strategy.

Q: How should investors take restructurings sticking less often?

A: Restructuring road to recovery is rarely linear, have robust process in place using BlackRock platform to actively manage challenge investments.

Q: Is there more to the story behind the 8K?

A: Unique collection of factors led to material markdown in the quarter, process is consistent and will continue to consider need to disclose on 8K basis if and when arise