BlackRock TCP Capital (TCPC) - 2024 Q2 - Quarterly Results

Financial Performance - Net investment income for Q2 2024 was $35.8 million, or $0.42 per share, exceeding the regular dividend of $0.34 per share[2] - Adjusted net investment income for Q2 2024 was $32.1 million, or $0.38 per share, compared to $27.6 million, or $0.48 per share in Q2 2023[4] - Total investment income for Q2 2024 was approximately $71.5 million, or $0.84 per share[10] - Net decrease in net assets resulting from operations for Q2 2024 was $51.3 million, or $0.60 per share[12] - Basic and diluted earnings (loss) per share for the three months ended June 30, 2024, was $(0.60), compared to $0.28 for the same period in 2023, indicating a decline in earnings per share[22] Assets and Liabilities - Net asset value per share decreased to $10.20 as of June 30, 2024, down from $11.14 at March 31, 2024[2] - Total assets increased to $2,218.7 million as of June 30, 2024, compared to $1,698.8 million as of December 31, 2023[20] - Net assets applicable to common shareholders rose to $873.1 million as of June 30, 2024, from $687.6 million at the end of 2023[20] - Total debt outstanding as of June 30, 2024, was $1,320.3 million, an increase from $985.2 million as of December 31, 2023[20] - The weighted-average interest rate on debt outstanding was 5.00% as of June 30, 2024[14] Investment Activity - Total acquisitions in Q2 2024 were approximately $129.7 million, while total investment dispositions were $185.0 million[2] - The weighted average annual effective yield of the debt portfolio was approximately 13.7% as of June 30, 2024[7] - The company reported a change in unrealized appreciation of $21.3 million for the six months ended June 30, 2024, due to merger accounting[21] - Total investment income for the three months ended June 30, 2024, was $71,526,225, an increase from $53,960,838 for the same period in 2023, representing a growth of approximately 32.6%[22] - Net investment income before taxes for the three months ended June 30, 2024, was $35,825,532, compared to $27,604,479 for the same period in 2023, reflecting a year-over-year increase of about 29.5%[22] Operating Expenses - Total operating expenses for Q2 2024 were approximately $35.7 million, or $0.42 per share[11] - Total operating expenses for the three months ended June 30, 2024, were $35,700,693, up from $26,356,359 in the same period of 2023, indicating a rise of approximately 35.5%[22] Dividends and Shareholder Returns - The company declared a third quarter dividend of $0.34 per share, payable on September 30, 2024[2] - For the three months ended June 30, 2024, approximately $0.8 million of cash distributions were reinvested under the new dividend reinvestment plan[14] - The company has a stock repurchase plan to acquire up to $50.0 million of its common stock, although no shares were repurchased during the three months ended June 30, 2024[17] Risk Management and Strategy - The company focuses on direct lending to middle-market companies and small businesses, aiming for high total returns through current income and capital appreciation[23] - The company emphasizes principal protection in its investment strategy, aiming to mitigate risks associated with its lending activities[23] - Forward-looking statements highlight potential risks including changes in economic conditions, interest rates, and regulatory changes that could impact future performance[24] Management and Regulation - BlackRock TCP Capital Corp. is externally managed by a wholly-owned, indirect subsidiary of BlackRock, Inc., ensuring professional management of its investment portfolio[23] - The company is regulated under the Investment Company Act of 1940, which provides a framework for its operations and investment strategies[23] Portfolio Quality - Debt investments on non-accrual status represented 4.9% of the portfolio at fair value and 10.5% at cost as of June 30, 2024[7] - The net change in unrealized appreciation (depreciation) for the three months ended June 30, 2024, was $(51,588,119), compared to $(10,959,165) for the same period in 2023, showing a significant increase in depreciation[22]