TCPC · BlackRock TCP Capital Corp.

BlackRock TCP Capital Corp. announced first quarter 2026 results showing GAAP net investment income of $18.5 million or $0.22 per diluted share, surpassing the $0.17 per share dividend paid on March 31, 2026. Adjusted NII, excluding purchase discount amortization from the 2024 Merger with BlackRock Capital Investment Corporation, was $17.6 million or $0.21 per share. Total investment income reached $42.6 million or $0.51 per share, driven by interest income adjusted for premiums/discounts, prepayment premiums ($0.03/share), PIK interest ($0.04/share), and dividends ($0.02/share). Operating expenses totaled $24.1 million or $0.29 per share, including $16.0 million in interest and debt expenses ($0.19/share) and $4.7 million in base management fees ($0.06/share), with no incentive fees accrued as total return did not exceed the hurdle.

The quarter reflected a net decrease in net assets from operations of $16.3 million or $0.19 per share, primarily due to a $32.7 million net realized loss ($0.39/share) from restructurings in Alpine ($19.1M loss), Fishbowl ($11.5M), and Suited Connector ($4.6M), and a $2.0 million net unrealized loss ($0.02/share) on positions like Job and Talent ($11.1M) and Pluralsight ($2.8M), offset by reversals from restructurings. NAV fell 4.9% to $6.72 per share from $7.07, linked to $35 million net portfolio markdowns.

Portfolio quality improved with non-accruals dropping to 2.8% at fair value (7.6% at cost) from 4.0% and 9.7%, aided by two restructurings and one sale. Net leverage eased to 1.29x from 1.41x via $135.3 million in exits/paydowns against $22.5 million new investments (80% senior secured). The $1.4 billion portfolio was 91.8% senior secured debt (88.7% first lien), 94.4% floating rate, with debt yield at 10.9%. Management highlighted progress in credit quality, portfolio repositioning, and balance sheet strength, with available liquidity at $358.6 million. The Board declared a Q2 dividend of $0.17 per share, payable June 30 to June 16 record holders, signaling continuity in capital return amid repositioning efforts.