BlackRock TCP Capital Corp. Files 2023 Annual Report

TL;DR

<b>BlackRock TCP Capital Corp. has filed its 2023 10-K report, detailing its financial position and investment portfolio, including significant debt investments.</b>

AI Summary

BlackRock TCP Capital Corp. (TCPC) filed a Annual Report (10-K) with the SEC on February 29, 2024. Filed 10-K for the fiscal year ending December 31, 2023. Company formerly known as TCP Capital Corp. and Special Value Continuation Fund, LLC. Key debt investments include those in IT Parent, LLC, Grey Orange Incorporated, Worldremit Group Limited, and Zilliant Incorporated. Specific debt investment details provided, including interest rates, maturity dates, and loan types (e.g., Sr Secured Revolver, First Lien Term Loan). Mentions use of Level 3 Fair Value Inputs and Valuation Technique Market Approach.

Why It Matters

For investors and stakeholders tracking BlackRock TCP Capital Corp., this filing contains several important signals. Provides a comprehensive overview of the company's financial performance and investment strategy for the fiscal year 2023. Offers detailed information on specific debt investments, which are crucial for understanding the company's asset base and risk exposure.

Risk Assessment

Risk Level: medium — BlackRock TCP Capital Corp. shows moderate risk based on this filing. The company's financial health is tied to the performance of its debt investments, which carry inherent market and credit risks. Specific details on interest rates and maturities indicate exposure to fluctuating economic conditions.

Analyst Insight

Investors should review the detailed breakdown of debt investments and associated risks in the 10-K to assess the company's portfolio performance and future outlook.

Key Numbers

• 2023-12-31 — Fiscal Year End (Report period.)
• 2024-02-29 — Filing Date (Date the 10-K was filed.)
• 11.21% — Total Coupon (IT Parent, LLC) (Debt investment detail.)
• 11.55% — Total Coupon (Grey Orange Inc.) (Debt investment detail.)
• 13.91% — Total Coupon (Worldremit Group Ltd.) (Debt investment detail.)
• 10.85% — Total Coupon (Zilliant Inc.) (Debt investment detail.)

Key Players & Entities

• BlackRock TCP Capital Corp. (company) — Filer of the 10-K report.
• TCP Capital Corp. (company) — Former company name.
• Special Value Continuation Fund, LLC (company) — Former company name.
• IT Parent, LLC (company) — Company with a debt investment.
• Grey Orange Incorporated (company) — Company with a debt investment.
• Worldremit Group Limited (company) — Company with a debt investment.
• Zilliant Incorporated (company) — Company with a debt investment.
• 2023-12-31 (date) — Fiscal year end date.

FAQ

Risk Factors

• Fair Value of Investments [medium — financial]: The company's financial results are significantly impacted by the fair value of its investments, which are subject to market fluctuations and valuation methodologies.
• Debt Investment Performance [medium — financial]: The performance of the company's debt investments, including interest income and potential credit losses, directly affects its profitability and financial condition.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-02-29: 10-K Filing Date — Date the annual report was officially submitted to the SEC.

Key Financial Figures

• $0.001 — ) of the Act: Common Stock, par value $0.001 per share TCPC NASDAQ Global Select
• $100 million — as those with enterprise values between $100 million and $1.5 billion. While we intend to pr
• $1.5 billion — erprise values between $100 million and $1.5 billion. While we intend to primarily focus on
• $14.75 — mon stock at a public offering price of $14.75 per share. 4 On September 6, 2023,
• $10.0 — lackRock's assets under management were $10.0 trillion. BlackRock helps clients meet
• $46.9 billion — ether, they have invested approximately $46.9 billion in 929 companies since the Advisor's in
• $34.7 billion — executed across its funds approximately $34.7 billion in direct origination leveraged loans p
• $6.2 billion — arket companies, of which approximately $6.2 billion was for our account. There can be no as
• $38.4 billion — e original syndication of approximately $38.4 billion of leveraged loans to 704 companies sin
• $6.8 billion — s since 1999, of which we invested over $6.8 billion in 392 companies. For the purposes of t
• $10 million — r. Our investments generally range from $10 million to $50 million per company, the size of
• $50 million — nts generally range from $10 million to $50 million per company, the size of which may grow
• $1,554.9 million — r 31, 2023, our investment portfolio of $1,554.9 million (at fair value) consisted of 142 portfo
• $11.0 million — estment at fair value was approximately $11.0 million. Our largest portfolio company investme
• $22.8 billion — t investment manager with approximately $22.8 billion in committed capital as of December 31,

Filing Documents

• tcpc-20231231.htm (10-K) — 14077KB
• tcpc-ex19_1.htm (EX-19.1) — 46KB
• tcpc-ex21_1.htm (EX-21.1) — 7KB
• tcpc-ex23_1.htm (EX-23.1) — 5KB
• tcpc-ex31_1.htm (EX-31.1) — 15KB
• tcpc-ex31_2.htm (EX-31.2) — 15KB
• tcpc-ex32_1.htm (EX-32.1) — 13KB
• tcpc-ex97.htm (EX-97) — 13KB
• tcpc-ex99_1.htm (EX-99.1) — 914KB
• tcpc-ex99_2.htm (EX-99.2) — 814KB
• img95591759_0.jpg (GRAPHIC) — 6KB
• img116146825_0.jpg (GRAPHIC) — 438KB
• img116146825_1.jpg (GRAPHIC) — 15KB
• img116146825_2.jpg (GRAPHIC) — 5KB
• img116146825_3.jpg (GRAPHIC) — 382KB
• img230920067_0.jpg (GRAPHIC) — 9KB
• img230920067_1.jpg (GRAPHIC) — 5KB
• img230920067_2.jpg (GRAPHIC) — 3KB
• img247081099_0.jpg (GRAPHIC) — 3KB
• img247081099_1.jpg (GRAPHIC) — 3KB
• 0000950170-24-022655.txt (&nbsp;) — 62827KB
• tcpc-20231231.xsd (EX-101.SCH) — 2249KB
• tcpc-20231231_htm.xml (XML) — 13191KB

Business

Business 4 Item 1A.

Risk Factors

Risk Factors 26 Item 1B. Unresolved Staff Comments 68 Item 1C. Cybersecurity 68 Item 2.

Properties

Properties 70 Item 3.

Legal Proceedings

Legal Proceedings 70 Item 4. Mine Safety Disclosures. 70 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 71 Item 6. [Reserved] 75 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 76 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 89 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 90 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 154 Item 9A.

Controls and Procedures

Controls and Procedures 154 Item 9B. Other Information 155 Item 9C. Disclosure Regarding Foreign Jurisdictions That Prevent Inspections 155 PART III Item 10. Directors, Executive Officers and Corporate Governance 156 Item 11.

Executive Compensation

Executive Compensation 156 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 156 Item 13. Certain Relationships and Related Transactions, and Director Independence 156 Item 14. Principal Accountant Fees and Services 156 PART IV Item 15. Exhibits and Financial Statement Schedules 156

Signatures

Signatures 160 1 Part I Summary of Risk Factors The risk factors described below are a summary of the principal risk factors associated with an investment in us. These are not the only risks we face. You should carefully consider these risk factors, together with the risk factors set forth in Item 1A of this Annual Report on Form 10-K and the other reports and documents filed by us with the SEC. Risks related to our business Market disruptions and other geopolitical or macroeconomic events could create market volatility that negatively impacts our business, financial condition and earnings. Economic recessions or downturns could impair our portfolio companies and harm our operating results. We are subject to risks related to inflation. Changes in legal, tax and regulatory regimes could negatively impact our business, financial condition and earnings. Rising interest rates or changes in interest rates may adversely affect the value of our portfolio investments which could have an adverse effect on our business, financial condition and results of operations. We may not replicate the historical performance of other investment companies and funds with which our investment professionals have been affiliated. We may suffer credit losses. Our use of borrowed funds, including under our leverage program, to make investments exposes us to risks typically associated with leverage. Incurring additional indebtedness could increase the risk in investing in shares of our common stock. The lack of liquidity in our investments may adversely affect our business. A substantial portion of our portfolio investments are recorded at fair value as determined using a consistently applied valuation process in accordance with our documented valuation policy that has been reviewed and approved by our Board of Directors and, as a result, there may be uncertainty regarding the value of our portfolio investments. Our use of borrowed funds to make investments ex

Business

Item 1. Business General In this annual report in Form 10-K, except as otherwise indicated, the terms: "Company," "we," "us" and "our" refer to Special Value Continuation Fund, LLC, a Delaware limited liability company, for the periods prior to the consummation of the Conversion described elsewhere in this report and to BlackRock TCP Capital Corp., formerly known as TCP Capital Corp., for the periods after the consummation of the Conversion; "SVCP" refers to Special Value Continuation Partners LLC, a Delaware limited liability company; "TCPC Funding" refers to TCPC Funding I, LLC, a Delaware limited liability company; "TCPC Funding II" refers to TCPC Funding II, LLC, a Delaware limited liability company; The "SBIC" refers to TCPC SBIC, LP, a Delaware limited partnership; The "Advisor" refers to Tennenbaum Capital Partners, LLC, a Delaware limited liability company and the investment manager; and "Administrator" refers to Series H of SVOF/MM, LLC, a series of a Delaware limited liability company, an affiliate of the Advisor and administrator of the Company. The Company is a Delaware corporation formed on April 2, 2012 and is an externally managed, closed-end, non-diversified management investment company. We have elected to be regulated as a business development company ("BDC") under the Investment Company Act of 1940, as amended (the "1940 Act"). Our investment objective is to achieve high total returns through current income and capital appreciation, with an emphasis on principal protection. We seek to achieve our investment objective primarily through investments in debt securities of middle-market companies, which we typically define as those with enterprise values between $100 million and $1.5 billion. While we intend to primarily focus on privately negotiated investments in debt of middle-market companies, we may make investments of all kinds and at all levels of the capital structure, including in equity interests such as preferred or commo

View Full Filing

View this 10-K filing on SEC EDGAR